Notice2021-11693
Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of Proposed Rule Change, as Modified by Amendment No. 1, To Amend Equity 4, Rule 4754 Relating to the Limit Up-Limit Down Closing Cross
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 3, 2021
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 86 Issue 105 (Thursday, June 3, 2021)</title>
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[Federal Register Volume 86, Number 105 (Thursday, June 3, 2021)]
[Notices]
[Pages 29864-29868]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-11693]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-92068; File No. SR-NASDAQ-2021-009]
Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing of Amendment No. 1 and Order Granting Accelerated
Approval of Proposed Rule Change, as Modified by Amendment No. 1, To
Amend Equity 4, Rule 4754 Relating to the Limit Up-Limit Down Closing
Cross
May 28, 2021.
I. Introduction
On February 11, 2021, The Nasdaq Stock Market LLC (``Exchange'' or
``Nasdaq'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to amend Equity 4, Rule (``Rule'') 4754 relating
to the Limit Up-Limit Down (``LULD'') closing cross. The proposed rule
change was published for comment in the Federal Register on March 3,
2021.\3\ On April 9, 2021, the Exchange filed Amendment No. 1 to the
proposed rule change, which amended and superseded the proposed rule
change as originally filed.\4\ On April 15, 2021, pursuant to Section
19(b)(2) of the Act,\5\ the Commission designated a longer period
within which to approve the proposed rule change, disapprove the
proposed rule change, or institute proceedings to determine whether to
disapprove the proposed rule change.\6\ The Commission has not received
any comment letters on the proposed rule change. The Commission is
publishing this notice to solicit comments on Amendment No. 1 from
interested persons, and is approving the proposed rule change, as
modified by Amendment No. 1, on an accelerated basis.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 91208 (February 25,
2021), 86 FR 12503.
\4\ In Amendment No. 1, the Exchange amended the proposal to:
(1) Specify the dissemination of certain imbalance information
before the LULD closing cross; (2) clarify the process for
calculating the LULD closing cross price and the benchmark prices
for the LULD closing cross; (3) specify the treatment of imbalance
only orders for purposes of LULD closing cross price selection; (4)
provide additional explanation to support the proposal; (5) specify
the implementation date for the proposal; and (6) make other
clarifying, technical, and conforming changes. Amendment No. 1 is
available on the Commission's website at: <a href="https://www.sec.gov/comments/sr-nasdaq-2021-009/srnasdaq2021009-8670132-235426.pdf">https://www.sec.gov/comments/sr-nasdaq-2021-009/srnasdaq2021009-8670132-235426.pdf</a>.
\5\ 15 U.S.C. 78s(b)(2).
\6\ See Securities Exchange Act Release No. 91581, 86 FR 20759
(April 21, 2021). The Commission designated June 1, 2021, as the
date by which the Commission shall approve or disapprove, or
institute proceedings to determine whether to disapprove, the
proposed rule change, as modified by Amendment No. 1.
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II. Description of the Proposed Rule Change, as Modified by Amendment
No. 1
The Nasdaq closing cross is the Exchange's process for determining
the price at which orders will be executed at the close and for
executing those orders, and the price determined by the Nasdaq closing
cross is the Nasdaq official closing price for securities that
participate in the cross.\7\ The Nasdaq closing cross begins at 4:00
p.m.,\8\ and the Exchange applies a price range within which the Nasdaq
closing cross must occur.\9\ Currently, the Exchange applies a
threshold amount that is the greater of $0.50 or 10% of the midpoint of
the Nasdaq best bid and offer, and that amount is then added to the
Nasdaq best offer and subtracted from the Nasdaq best bid to establish
the price range.\10\
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\7\ See Rule 4754(a)(6) and (b)(4). See also Rule 4754(b)(2)
(describing the methodology for determining the Nasdaq closing cross
price).
\8\ All times referenced are in Eastern Time.
\9\ See Rule 4754(b). If the Nasdaq closing cross price
established pursuant to Rule 4754(b)(2)(A)-(D) is outside the
benchmarks established by the Exchange by a threshold amount, the
Nasdaq closing cross will occur at a price within the threshold
amounts that best satisfies the conditions of Rule 4754(b)(2)(A)-
(D). See Rule 4754(b)(2)(E).
\10\ See Amendment No. 1, supra note 4, at 6. Nasdaq management
may set and modify the benchmarks and thresholds from time to time
upon prior notice to market participants. See Rule 4754(b)(2)(E).
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The LULD closing cross is the Exchange's process for executing
closing trades in Nasdaq-listed securities when an LULD trading pause
pursuant to Rule 4120(a)(12) exists at or after 3:50 p.m.
[[Page 29865]]
and before 4:00 p.m.\11\ The Exchange proposes to make certain changes
to the LULD closing cross in order to further align that process with
the regular Nasdaq closing cross process.\12\
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\11\ See Rule 4754(b)(6).
\12\ See Amendment No. 1, supra note 4, at 4. The Exchange
proposes to implement the proposed changes by the end of Q3 2021,
and will provide prior notice in an Equity Trader Alert. See id.
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A. LULD Closing Cross Time and Benchmark Prices
Currently, unlike the regular Nasdaq closing cross, the LULD
closing cross occurs at 4:00 p.m. unless an order imbalance exists, in
which case the Exchange will extend the time of the cross by one minute
until the order imbalance no longer exists.\13\ If this condition
persists until 5:00 p.m., the Exchange will not conduct an LULD closing
cross in the security and will instead use the last sale on the
Exchange as the Nasdaq official closing price for that security.\14\ In
addition, currently, unlike the regular Nasdaq closing cross, the
Exchange does not apply a price range within which the LULD closing
cross must occur. The Exchange now proposes to eliminate extensions of
the LULD closing cross beyond 4:00 p.m.\15\ and to require that the
LULD closing cross occur within certain benchmark prices.
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\13\ See Rule 4754(b)(6)(A)(i) and (iii).
\14\ See Rule 4754(b)(6)(A)(iii).
\15\ In connection with eliminating extensions of the LULD
closing cross, the Exchange proposes to remove Rule
4754(b)(6)(A)(iii), which currently describes extensions of the LULD
closing cross, and parts of Rule 4754(b)(6)(C)(iii), which currently
describe the handling of certain orders after 4:00 p.m. for purposes
of the LULD closing cross.
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As proposed, for any security that entered a trading pause that was
extended prior to 3:50 p.m., the upper (lower) benchmark price would be
established by adding (subtracting) a threshold amount to the upper
(from the lower) auction collar \16\ that was last updated with the
extension of the trading pause, rounded to the nearest minimum price
increment (with midpoint prices being rounded up), and the lower
(upper) benchmark price would be the lower (upper) auction collar that
was last updated with the upper (lower) auction collar used to
calculate the upper (lower) benchmark price.\17\ For any security that
entered a trading pause that was not extended prior to 3:50 p.m., the
upper (lower) benchmark price would be established by adding
(subtracting) a threshold amount to the upper auction collar for a
Limit Up triggered pause (from the lower auction collar for a Limit
Down triggered pause), rounded to the nearest minimum price increment
(with midpoint prices being rounded up), and the lower (upper)
benchmark price would be the lower (upper) auction collar disseminated
with the upper (lower) auction collar used to calculate the upper
(lower) benchmark price.\18\ For any security that entered a trading
pause at or after 3:50 p.m., the upper (lower) benchmark price would be
established by adding (subtracting) a threshold amount to the upper
band for a Limit Up triggered pause (from the lower band for a Limit
Down triggered pause), rounded to the nearest minimum price increment
(with midpoint prices being rounded up), and the lower (upper)
benchmark price would be the lower (upper) band in place at the time
the trading pause was triggered.\19\ The benchmark prices would be
published via the Nasdaq UTP SIP and Exchange proprietary data
feeds.\20\
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\16\ See Rule 4120(c)(10) (describing the auction collars for
reopening following an LULD trading pause).
\17\ See proposed Rule 4754(b)(6)(E)(i). The Exchange states
that it would use the last widened auction collar in this scenario
because a security that entered a trading pause prior to 3:50 p.m.
would be subject to the Exchange's reopening process in Rule
4120(c)(10), where the Exchange would halt the security for an
initial five-minute period and extend the halt in five-minute
increments if the specified reopening criteria are not met, widening
the relevant auction collar at the start of each five-minute
extension. See Amendment No. 1, supra note 4, at 9 n.18.
\18\ See proposed Rule 4754(b)(6)(E)(ii). The Exchange states
that this scenario would cover securities that entered a trading
pause between 3:45 p.m. and 3:50 p.m., and because the Exchange does
not extend the reopening process in Rule 4120(c)(10) or widen
auction collars past 3:50 p.m., it would use the initial reopening
auction collar. See Amendment No. 1, supra note 4, at 9-10 n.19.
\19\ See proposed Rule 4754(b)(6)(E)(iii). The Exchange states
that it would use the LULD band that triggered the pause in this
scenario because the Exchange does not conduct the LULD reopening
process at or after 3:50 p.m. and therefore there are no reopening
auction collars in this scenario. See Amendment No. 1, supra note 4,
at 10 n.20.
\20\ See Amendment No. 1, supra note 4, at 8.
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The Exchange proposes to initially set the price threshold amounts
at the greater of $1.00 or 10% for securities with a reference price
greater than $1.00 (or $0.50 for securities with a reference price
equal to or less than $1.00).\21\ As proposed, Nasdaq management would
be able to set and modify these thresholds from time to time upon prior
notice to market participants.\22\
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\21\ See id. at 8-9.
\22\ See proposed Rule 4754(b)(6)(E). These threshold amounts,
like the threshold amounts currently used for the regular Nasdaq
closing cross, would be published on the Exchange's public website.
See Amendment No. 1, supra note 4, at 8.
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As proposed, at 4:00 p.m., the Exchange would conduct the LULD
closing cross, and if the cross price would fall outside of the
benchmark prices, the LULD closing cross would execute all available
orders at a price within or equal to the benchmark prices.\23\ Any
unexecuted orders intended for the LULD closing cross (i.e., market on
close (``MOC''),\24\ limit on close (``LOC''),\25\ and imbalance only
(``IO'') orders),\26\ including those that fall outside the benchmark
prices, would be cancelled.\27\ All other orders not executed in the
LULD closing cross would be processed according to the entering firm's
instructions.\28\
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\23\ See Amendment No. 1, supra note 4, at 12.
\24\ See Rule 4702(b)(11) (defining a MOC order as an order type
entered without a price that may be executed only during the Nasdaq
closing cross).
\25\ See Rule 4702(b)(12) (defining a LOC order as an order type
entered with a price that may be executed only in the Nasdaq closing
cross, and only if the price determined by the Nasdaq closing cross
is equal to or better than the price at which the LOC order was
entered).
\26\ See Rule 4702(b)(13) (defining an IO order as an order
entered with a price that may be executed only in the Nasdaq closing
cross and only against MOC orders or LOC orders).
\27\ See Amendment No. 1, supra note 4, at 12.
\28\ See id.
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B. LULD Closing Cross Price Determination
Currently, the LULD closing cross price is determined by the same
execution algorithm as the regular Nasdaq closing cross.\29\ The
Exchange now proposes to modify the methodology for determining the
LULD closing cross price.\30\ As proposed, the LULD closing cross would
occur at the price within the benchmark prices established pursuant to
proposed Rule 4754(b)(6)(E) that maximizes the number of shares of
eligible interest,\31\ MOC, LOC, and IO orders in the Nasdaq market
center to be executed.\32\ If more than one such price exists, the LULD
closing cross would occur at the price within the benchmark prices that
minimizes any imbalance.\33\ If more
[[Page 29866]]
than one such price exists, the LULD closing cross would occur at the
entered price within the benchmark prices at which shares will remain
unexecuted in the cross.\34\ If no price within the benchmark prices
would satisfy these conditions, then: (i) If an imbalance exists, the
LULD closing cross would occur at a price equal to the upper (lower)
benchmark price for a buy (sell) imbalance; and (ii) if no imbalance
exists, the LULD closing cross would occur at a price that minimizes
the distance from the last published upper band (lower band) for a
Limit Up (Limit Down) trading pause.\35\
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\29\ See id. at 16.
\30\ See proposed Rule 4754(b)(6)(D). See also Rule
4754(b)(2)(A)-(F) (describing the methodology for determining the
regular Nasdaq closing cross price).
\31\ For purposes of the LULD closing cross, the Exchange
proposes to define ``eligible interest'' to have the same meaning as
``close eligible interest'' in Rule 4754(a), with the addition of
any new orders with an eligible underlying order type and order
attribute entered during the trading pause. See proposed Rule
4754(b)(6)(A)(i). See also Rule 4754(a)(1) (defining ``close
eligible interest'' to mean any quotation or any order that may be
entered into the system and designated with a time-in-force of SDAY,
SGTC, MDAY, MGTC, SHEX, or GTMC).
\32\ See proposed Rule 4754(b)(6)(D)(i). The Exchange states
that proposed Rule 4754(b)(6)(D)(i) is similar to Rule 4754(b)(2)(A)
(i.e., maximizing the number of shares executed in the cross). See
Amendment No. 1, supra note 4, at 16.
\33\ See proposed Rule 4754(b)(6)(D)(ii). For purposes of the
LULD closing cross, the Exchange proposes to define ``imbalance'' to
mean the number of shares of buy or sell MOC or LOC orders or
eligible interest that cannot be matched with other MOC, LOC, or IO
orders or eligible interest at a particular price at any given time.
See proposed Rule 4754(b)(6)(A)(ii). The Exchange states that
proposed Rule 4754(b)(6)(D)(ii) is based on the same principle as
Rule 4754(b)(2)(B) (i.e., minimizing the number of shares that
cannot be matched in the cross). See Amendment No. 1, supra note 4,
at 17.
\34\ See proposed Rule 4754(b)(6)(D)(iii). The Exchange states
that proposed Rule 4754(b)(6)(D)(iii) is similar to Rule
4754(b)(2)(C). See Amendment No. 1, supra note 4, at 18.
\35\ See proposed Rule 4754(b)(6)(D)(iv). The Exchange states
that Rule 4754(b)(2)(D) uses the midpoint of the Nasdaq best bid and
offer as the tiebreaker for the regular Nasdaq closing cross,
whereas there would be no continuous market prior to the execution
of the LULD closing cross and proposed Rule 4754(b)(6)(D)(iv) would
better reflect current market forces and conditions for an LULD
closing cross. See Amendment No. 1, supra note 4, at 18-19.
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Currently, Rule 4754(b)(6) provides that, in the event of an LULD
closing cross, MOC, LOC, and IO orders intended for the closing cross
entered into the system and place on the book prior to the trading
pause will remain on the book to participate in the LULD closing cross,
but these orders may not be modified or cancelled. Rule 4754(b)(6) also
provides that, during the pause and prior to 4:00 p.m., new orders
(other than MOC or LOC orders) may be entered, modified, and cancelled
and may participate in the LULD closing cross. The Exchange now
proposes to modify the handling of MOC, LOC, and IO orders such that
they could be entered, modified, and cancelled pursuant to Rules
4702(b)(11), 4702(b)(12), and 4702(b)(13), respectively.\36\ Therefore,
as proposed, MOC, LOC, and IO orders could be entered, modified, and
cancelled during the same time periods for an LULD closing cross as for
a regular Nasdaq closing cross. However, unlike the regular Nasdaq
closing cross where if the price of an IO order to buy (sell) is higher
than (lower than) the highest bid (lowest offer) on the Nasdaq book,
the price of the IO order will be modified repeatedly to equal the
highest bid (lowest offer) on the Nasdaq book,\37\ for purposes of LULD
closing cross price selection, buy (sell) IO orders would be re-priced
to one minimum price increment below (above) the LULD band that
triggered the trading pause.\38\
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\36\ See proposed Rule 4754(b)(6)(F)(ii).
\37\ See Rule 4702(b)(13)(A).
\38\ See proposed Rule 4754(b)(6)(F)(iii).
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C. Imbalance Information
Currently, Rule 4754(b)(6)(B) provides that, in the event of an
LULD closing cross, the Exchange continues disseminating the order
imbalance indicator (``NOII'') every second until after hours trading
begins. The Exchange proposes to amend this rule to also specify the
dissemination of the early order imbalance indicator (``EOII'') before
the LULD closing cross.\39\ As with the regular Nasdaq closing cross,
EOII would be disseminated every 10 seconds beginning at 3:50 p.m.
until the NOII begins to disseminate, and the NOII would be
disseminated every second beginning at 3:55 p.m. until market
close.\40\
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\39\ See proposed Rule 4754(b)(6)(C).
\40\ See id.; Amendment No. 1, supra note 4, at 21-22. See also
Rule 4754(b)(1) (describing EOII and NOII dissemination for the
regular Nasdaq closing cross).
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Currently, Rule 4754(b)(6)(B) also provides that the near price,
far price, and reference prices contained in the NOII all represent the
price at which the LULD closing cross would execute should the cross
conclude at that time. As proposed, the near clearing price \41\ and
reference price contained in the EOII and NOII, as applicable, would
represent the price at which the LULD closing cross would execute
should the cross conclude at that time (i.e., bounded by the benchmark
prices),\42\ and the far clearing price would represent the price at
which eligible interest, MOC, LOC, and IO orders would execute (i.e.,
not bounded by the benchmark prices).\43\
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\41\ The Exchange proposes to replace all references to the
``near price'' and ``far price'' with the ``near clearing price''
and ``far clearing price'' respectively to align with terminology
used throughout Rule 4754. See Amendment No. 1, supra note 4, at 22.
\42\ See proposed Rule 4754(b)(6)(C); Amendment No. 1, supra
note 4, at 22.
\43\ See proposed Rule 4754(b)(6)(C); Amendment No. 1, supra
note 4, at 22. The far clearing price would be different from the
near clearing price and reference price to indicate that not all
marketable orders can be filled within the benchmark prices. See
Amendment No. 1, supra note 4, at 22.
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D. Other Changes
The Exchange proposes to specify in Rule 4754(b)(6) that the LULD
closing cross process only applies to Nasdaq-listed securities, rather
than all stocks. The Exchange also proposes a conforming change in Rule
4754(b)(6)(B)(i) to clarify that the LULD closing cross applies when a
trading pauses exists (rather than is triggered) at or after 3:50 p.m.
and before 4:00 p.m. Finally, the Exchange proposes to update obsolete
cross references in Rules 4756(c)(3)(B) and 4763(b) to Rule 4751.\44\
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\44\ See Amendment No. 1, supra note 4, at 23.
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III. Discussion and Commission Findings
After careful review, the Commission finds that the proposed rule
change, as modified by Amendment No. 1, is consistent with the
requirements of the Act and the rules and regulations thereunder
applicable to a national securities exchange.\45\ In particular, the
Commission finds that the proposed rule change, as modified by
Amendment No, 1, is consistent with Section 6(b)(5) of the Act,\46\
which requires, among other things, that the rules of a national
securities exchange be designed to prevent fraudulent and manipulative
acts and practices, to promote just and equitable principles of trade,
to foster cooperation and coordination with persons engaged in
facilitating transactions in securities, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general, to protect investors and the public interest.
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\45\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\46\ 15 U.S.C. 78f(b)(5).
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The Commission believes that the proposed benchmark prices and
other changes to the LULD closing cross would more closely align the
LULD closing cross process with the regular Nasdaq closing cross
process and would promote a more consistent experience for those that
participate in the crosses. The Commission also believes that the
differences between the proposed LULD closing cross process and the
regular Nasdaq closing cross process are reasonably designed to reflect
the differences in market conditions leading up to the crosses.
More specifically, the Commission believes that the proposed
benchmark prices for the LULD closing cross would help ensure that the
closing price of a security is reasonably related to current market
conditions. The Commission also believes that the addition of benchmark
prices would further harmonize the LULD closing cross process with the
regular Nasdaq closing cross process, while reflecting market
[[Page 29867]]
conditions for the security leading up to the LULD closing cross. In
particular, the Commission believes that the proposed methodology for
determining the benchmark prices would reflect that there is no
continuous trading in the security and no Nasdaq best bid and offer
based on continuous trading in the security during the pause leading up
to the cross,\47\ that the cross would occur following a period of
increased volatility in the security,\48\ and the direction of trading
that triggered the pause in the security and the existence of buy or
sell pressure in the security leading up to the cross.\49\
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\47\ As described above, the benchmark prices for the LULD
closing cross would be calculated based on the reopening auction
collars or the LULD bands, rather than the midpoint of the Nasdaq
best bid and offer as is the case with the regular Nasdaq closing
cross.
\48\ As described above, the initial threshold amounts for
determining the benchmark prices for the LULD closing cross (i.e.,
the greater of $1.00 or 10% for securities with a reference price
greater than $1.00, and $0.50 for securities with a reference price
equal to or less than $1.00) may be greater than the current
threshold amounts for determining the price range for the regular
Nasdaq closing cross (i.e., the greater of $0.50 or 10%). As with
the regular Nasdaq closing cross, Nasdaq management would be able to
set and modify these threshold amounts from time to time upon prior
notice to market participants.
\49\ As described above, the threshold amounts for the LULD
closing cross would be applied to the most recently expanded
reopening auction collar (if the trading pause was extended before
3:50 p.m.) or in the direction of trading that caused the trading
pause (if the trading pause was not extended before 3:50 p.m. or if
the trading pause occurred at or after 3:50 p.m.), whereas the
threshold amounts for the regular Nasdaq closing cross are applied
to both the Nasdaq best bid and Nasdaq best offer.
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The Commission also believes that the proposed methodology for
determining the LULD closing cross price would reflect the proposed
benchmark prices and allow for similar experiences for those that
participate in the regular Nasdaq closing cross and the LULD closing
cross. In addition, the Commission believes that the proposed
methodology, including the proposed definitions of eligible interest
and imbalance and the proposed treatment of IO orders, are reasonably
designed to reflect market conditions leading up to the LULD closing
cross, including that there is no continuous trading in the security
and no Nasdaq best bid and offer based on continuous trading in the
security leading up to the cross, and the existence of any buy or sell
imbalance in the security leading up to the cross.
Further, the Commission believes that the proposal to eliminate
extensions of the LULD closing cross past 4:00 p.m. would provide more
certainty regarding the timing of the LULD closing cross and align that
timing with the regular Nasdaq closing cross. The Commission also
believes that the proposed timing for entering, modifying, and
cancelling MOC, LOC, and IO orders for the LULD closing cross would
allow additional interest to participate in the cross and further align
the LULD closing cross process with the regular Nasdaq closing cross
process with respect to these orders.
Finally, the Commission believes that the proposal to specify the
dissemination of EOII would provide transparency regarding the
information that is disseminated in advance of the LULD closing
cross.\50\ Similarly, the Commission believes that the proposal to
specify that the LULD closing cross only applies to Nasdaq-listed
securities and clarify that the LULD closing cross applies when a
trading pause exists (rather than is triggered) at or after 3:50 p.m.
and before 4:00 p.m. would provide greater transparency regarding the
LULD closing cross process. The Commission also believes that updating
obsolete cross references in Rules 4756(c)(3)(B) and 4763(b) would
provide greater clarity in the Exchange's rules.
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\50\ The Commission also believes that the proposed differences
between the near clearing price and reference price, and the far
clearing price, would reflect the addition of benchmark prices to
the LULD closing cross.
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IV. Solicitation of Comments on Amendment No. 1 to the Proposed Rule
Change
Interested persons are invited to submit written data, views, and
arguments concerning whether Amendment No. 1 is consistent with the
Act. Comments may be submitted by any of the following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#daa8afb6bff7b9b5b7b7bfb4aea99aa9bfb9f4bdb5ac"><span class="__cf_email__" data-cfemail="691b1c050c440a0604040c071d1a291a0c0a470e061f">[email protected]</span></a>. Please include
File Number SR-NASDAQ-2021-009 on the subject line.
Paper Comments
<bullet> Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-NASDAQ-2021-009. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NASDAQ-2021-009, and should be submitted
on or before June 24, 2021.
V. Accelerated Approval of Proposed Rule Change, as Modified by
Amendment No. 1
The Commission finds good cause to approve the proposed rule
change, as modified by Amendment No. 1, prior to the thirtieth day
after the date of publication of notice of the filing of Amendment No.
1 in the Federal Register. As discussed above, in Amendment No. 1, the
Exchange specified the dissemination of certain imbalance information
before the LULD closing cross, clarified the process for calculating
the LULD closing cross price and the benchmark prices, specified the
treatment of IO orders for purposes of LULD closing cross price
selection, provided additional explanation to support the proposal,
specified the implementation date for the proposal, and made other
clarifying, technical, and conforming changes. The Commission believes
that the changes made in Amendment No. 1 do not raise any material or
novel regulatory issues and they provide further clarity to and
consistency within the proposal. Accordingly, the Commission finds good
cause, pursuant to Section 19(b)(2) of the Act,\51\ to approve the
proposed rule change, as modified by Amendment No. 1, on an accelerated
basis.
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\51\ 15 U.S.C. 78s(b)(2).
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[[Page 29868]]
VI. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\52\ that the proposed rule change (SR-NASDAQ-2021-009), as
modified by Amendment No. 1, be, and hereby is, approved on an
accelerated basis.
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\52\ Id.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\53\
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\53\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-11693 Filed 6-2-21; 8:45 am]
BILLING CODE 8011-01-P
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