Notice2023-05445
Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Delay the Implementation of Certain Trading Functionality
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
March 17, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 88 Issue 52 (Friday, March 17, 2023)</title>
</head>
<body><pre>
[Federal Register Volume 88, Number 52 (Friday, March 17, 2023)]
[Notices]
[Pages 16485-16486]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-05445]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-97126; File No. SR-GEMX-2023-04]
Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Delay the
Implementation of Certain Trading Functionality
March 13, 2023.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on February 28, 2023, Nasdaq GEMX, LLC (``GEMX'' or ``Exchange'') filed
with the Securities and Exchange Commission (``SEC'' or ``Commission'')
the proposed rule change as described in Items I, II, and III below,
which Items have been prepared by the Exchange. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to delay the implementation of certain
trading functionality rule changes.
The text of the proposed rule change is available on the Exchange's
website at <a href="https://listingcenter.nasdaq.com/rulebook/gemx/rules">https://listingcenter.nasdaq.com/rulebook/gemx/rules</a>, at the
principal office of the Exchange, and at the Commission's Public
Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
In connection with a technology migration to an enhanced Nasdaq,
Inc. (``Nasdaq'') functionality, the Exchange filed various rule
changes to adopt certain trading functionality currently utilized at
Nasdaq affiliate exchanges. At this time, the Exchange proposes to
delay the implementation of the various rule changes. Each impacted
rule change and the new implementation date is described below.
Impacted Rule Filings
The Exchange filed the following rule changes in connection with
its technology migration:
[ssquf] SR-ISE-2022-11 which impacts GEMX routing; \3\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 94897 (May 12,
2022), 87 FR 30294 (May 18, 2022) (SR-ISE-2022-11) (Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Routing
Functionality in Connection With a Technology Migration). GEMX
Options 5 Rules incorporate ISE Options 5 by reference.
---------------------------------------------------------------------------
[ssquf] SR-GEMX-2022-10 which amended ATR and Repricing Rules; \4\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 96363 (November 18,
2022), 87 FR 72556 (November 25, 2022) (SR-GEMX-2022-10) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
ATR and Re-Pricing Rules in Connection With a Technology Migration
to Enhanced Nasdaq Functionality).
---------------------------------------------------------------------------
[ssquf] SR-GEMX-2022-13 which amended PIM; \5\ and
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 96519 (December 16,
2022), 87 FR 78717 (December 22, 2022) (SR-GEMX-2022-13) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Certain Functionality in Connection With a Technology Migration).
---------------------------------------------------------------------------
[ssquf] SR-GEMX-2023-02 a rule change amending multiple
functionalities.\6\
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 96817 (February 6,
2023), 88 FR 8922 (February 10, 2023) (SR-GEMX-2023-02) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Rules in Connection with the Technology Migration to Enhanced Nasdaq
Functionality).
---------------------------------------------------------------------------
Each of the aforementioned rule changes (collectively ``Impacted
Rule Changes'') indicated that the technology migration for GEMX would
commence prior to September 1, 2023 or Q3.
New Implementation
At this time, the Exchange proposes to delay the implementation of
the Impacted Rule Changes, which all relate to GEMX's upcoming
technology migration, to a date prior to December 29, 2023. The
Exchange will announce the initial migration date and symbol rollout
schedule to Members in an Options Trader Alert.
The Exchange proposes to delay the migration to allow the Exchange
and its Members additional time to test the new functionality.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\7\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\8\ in particular, in that it is designed to promote
just and equitable principles of trade and to protect investors and the
public interest for the reasons discussed below. The Exchange proposes
to delay the implementation of the Impacted Rule Changes, which all
relate to GEMX's upcoming technology migration, a few months to allow
the Exchange and its Members additional time to test the new
functionality. The Exchange believes that the delay is consistent with
the Act because the additional time will allow the Exchange to ensure a
successful migration while protecting investors and the public interest
by allowing the Exchange and Members more time to test.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange notes that the substance of the impacted rules is not
changing, only the implementation timeline is changing with this
proposal.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange's proposal to
delay the implementation of the Impacted Rule
[[Page 16486]]
Changes for a few months does not impose an undue burden on
competition. The proposed delay will allow the Exchange and its Members
additional time to test the new functionality.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \9\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\10\
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A)(iii).
\10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change 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#3745425b521a54585a5a525943447744525419505841"><span class="__cf_email__" data-cfemail="6c1e190009410f0301010902181f2c1f090f420b031a">[email protected]</span></a>. Please include
File Number SR-GEMX-2023-04 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-GEMX-2023-04. 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 such 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-GEMX-2023-04 and should be submitted on
or before April 7, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-05445 Filed 3-16-23; 8:45 am]
BILLING CODE 8011-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on March 17, 2023.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.