Notice2023-14910
Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend NOM Options 3 Rules
Primary source
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Published
July 14, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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[Federal Register Volume 88, Number 134 (Friday, July 14, 2023)]
[Notices]
[Pages 45248-45253]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-14910]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-97870; File No. SR-NASDAQ-2023-018]
Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend NOM Options 3 Rules
July 10, 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 June 27, 2023, The Nasdaq Stock Market LLC (``Nasdaq'' 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend The Nasdaq Options Market LLC
(``NOM'') Rules at Options 3, Options Trading Rules, at: Section 4
Entry and Display of Quotes; Section 5, Entry and Display of Orders;
Section 7, Types of Orders and Order and Quote Protocols; and Section
15, Risk Protections. The Exchange also
[[Page 45249]]
proposes to amend Options 5, Section 4, Order Routing.
The text of the proposed rule change is available on the Exchange's
website at <a href="https://listingcenter.nasdaq.com/rulebook/nasdaq/rules">https://listingcenter.nasdaq.com/rulebook/nasdaq/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
NOM proposes to amend Options 3, Options Trading Rules, at: Section
4 Entry and Display of Quotes; Section 5, Entry and Display of Orders;
Section 7, Types of Orders and Order and Quote Protocols; and Section
15, Risk Protections. The Exchange also proposes to amend Options 5,
Section 4, Order Routing. Each change will be discussed below. The
amendments proposed herein seek to codify the current System
functionality. The proposed amendments will not result in System
changes.
Option 3, Sections 4 and 5
The Exchange proposes to codify existing functionality that allows
Market Makers to submit their quotes to the Exchange in block
quantities as a single bulk message. In other words, a Market Maker may
submit a single message to the Exchange, which may contain bids and
offers in multiple series. The Exchange's current rules do not specify
bulk messaging for orders. The Exchange has historically provided
Market Makers with information regarding bulk messaging in its publicly
available technical specifications.\3\ To promote greater transparency,
the Exchange is seeking to codify this functionality in its Rulebook.
Specifically, the Exchange proposes to amend NOM Options 3, Section
4(b)(3) to memorialize that quotes may be submitted as a bulk message.
The Exchange also proposes to add a definition of ``bulk message'' in
new subparagraph (i) of Options 3, Section 4(b)(3), which will provide
that a bulk message means a single electronic message submitted by a
Market Maker to the Exchange which may contain a specified number of
quotations as designated by the Exchange.\4\ The bulk message,
submitted via SQF,\5\ may enter, modify, or cancel quotes. Bulk
messages are handled by the System in the same manner as it handles a
single quote message. MRX recently added bulk messages to MRX Options
3, Section 4(b)(3).\6\ The proposed amendment to the Rulebook to add
NOM Options 3, Section 4(b)(3) will not result in a System change.
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\3\ See <a href="https://www.nasdaq.com/docs/2023/01/12/0054-Q23_SQF_8.2b%20akg_NAM.pdf">https://www.nasdaq.com/docs/2023/01/12/0054-Q23_SQF_8.2b%20akg_NAM.pdf</a> (specifying for bulk quoting of up to 200
quotes per quote block message). The specifications note in other
places the manner in which a Participant can send such quote block
messages.
\4\ Id. As noted above, quote bulk messages can presently
contain up to 200 quotes per message. This is the maximum amount
that is permitted in a bulk message. The Exchange would announce any
change to these specifications in an Options Technical Update
distributed to all Participants.
\5\ ``Specialized Quote Feed'' or ``SQF'' is an interface that
allows Market Makers to connect, send, and receive messages related
to quotes and Immediate-or-Cancel Orders into and from the Exchange.
Features include the following: (1) options symbol directory
messages (e.g., underlying instruments); (2) system event messages
(e.g., start of trading hours messages and start of opening); (3)
trading action messages (e.g., halts and resumes); (4) execution
messages; (5) quote messages; (6) Immediate-or-Cancel Order
messages; (7) risk protection triggers and purge notifications; and
(8) opening imbalance messages. The SQF Purge Interface only
receives and notifies of purge requests from the Market Maker.
Market Makers may only enter interest into SQF in their assigned
options series. See Options 3, Section 7(e)(1)(B).
\6\ See Securities Exchange Act, Release No. 95982 (October 4,
2022), 87 FR 61391 (October 11, 2022) (SR-MRX-2022-18) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Its Rules in Connection With a Technology Migration to Enhanced
Nasdaq Functionality) (``SR-MRX-2022-18'').
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The Exchange also proposes to amend NOM Options 3, Section 4(b)(6)
to provide the following,
A quote will not be executed at a price that trades through
another market or displayed at a price that would lock or cross
another market. If, at the time of entry, a quote would cause a
locked or crossed market violation or would cause a trade-through,
violation, it will be re-priced to the current national best offer
(for bids) or the current national best bid (for offers) as non-
displayed, and displayed at one minimum price variance above (for
offers) or below (for bids) the national best price.
Where a quote is re-priced to avoid a locked or crossed market, the
best bid or offer will be non-displayed and the re-priced order will be
displayed at a price that is one minimum trading increment inferior to
the ABBO. A similar change is proposed for Options 3, Section 5(d). MRX
recently amended Options 3, Section 4(b)(6) and Options 3, Section 5(d)
to include this language.\7\ At this time, the Exchange proposes to
amend NOM's rule text to reflect that the actual price remains non-
displayed in this scenario. The proposed amendment to the Rulebook to
add NOM Options 3, Section 4(b)(6) will not result in a System change.
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\7\ See Securities Exchange Act, Release No. 95807 (September
16, 2022), 87 FR 57933 (September 22, 2022) (SR-MRX-2022-16) (Notice
of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Certain Rules in Connection With a Technology Migration to
Enhanced Nasdaq Functionality) (``SR-MRX-2022-16'').
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Similarly, the Exchange proposes to add a new NOM Options 3,
Section 4(b)(7) to clarify that, today, NOM's System will automatically
execute eligible quotes using the Exchange's displayed best bid and
offer (``BBO'') or the Exchange's non-displayed order book (``internal
BBO'') \8\ if the best bid and/or offer on the Exchange has been
repriced pursuant to Options 3, Section 5(d) and Options 3, Section
4(b)(6). This rule text seeks to codify the current System function and
make clear that the internal BBO is comprised of both orders and
quotes.\9\ MRX recently amended Options 3, Section 4(b)(7) to include
the same language.\10\ At this time, the Exchange proposes to align
NOM's rule text in Options 3, Section 4(b)(7) to MRX's rule text in
Options 3, Section 4(b)(7). The proposed amendment to the Rulebook to
add NOM Options 3, Section 4(b)(7) will not result in a System change.
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\8\ The internal BBO refers to the Exchange's non-displayed
book.
\9\ The Exchange also proposes to re-number current Options 3,
Section 4(b)(7) as (8).
\10\ See SR-MRX-2022-16.
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Finally, the Exchange proposes to amend NOM Options 3, Section 5(c)
to include a citation to Options 3, Section 4(b)(6) as the internal BBO
is comprised of both orders and quotes, similar to MRX.\11\
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\11\ Id.
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The amendments proposed to Options 3, Sections 4 and 5 do not
change the current System functionality.
Options 3, Section 7
The Exchange proposes to amend the ``Post-Only Order type at
Options 3, Section 7(a)(9) to rename the order type ``Add Liquidity
Order''. The Exchange believes the name better describes this order
type. This is also the name of a similar order type on MRX.\12\ The
Exchange also proposes to capitalize the
[[Page 45250]]
term ``Opening Process'' which refers to NOM Options 3, Section 8.
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\12\ See MRX Options 7, Section 7(n).
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The Exchange proposes to amend the description of Specialized Quote
Feed or ``SQF'' within NOM Options 3, Section 7(e)(1)(B) to add rule
text which states, ``Immediate-or-Cancel Orders entered into SQF are
not subject to the Order Price Protection, Market Order Spread
Protection, or Size Limitation Protection in Options 3, Section
15(a)(1), (a)(2), and (b)(2) respectively.'' This rule text is
currently noted within Options 3, Section 7(b)(2) above. The Exchange
is adding the same language into the description of SQF to provide a
more complete description. The addition of this information would align
the level of information of NOM's rule text to NOM's rule text at
Supplementary Material .03(c) to Options 3, Section 7. The Exchange is
proposing a similar amendment to Options 3, Section 7(e)(1)(D)
regarding Quote Using Orders or ``QUO'' \13\ to state that, ``Orders
entered into QUO are not subject to the Order Price Protection or Size
Limitation in Options 3, Section 15(a)(1) and (b)(2), respectively.''
All orders entered into QUO are not subject to the Order Price
Protection or Size Limitation protections, not Immediate-or-Cancel
Orders. Also, the Market Order Spread Protection is not applicable to
QUO because QUO cannot be utilized to send Market Orders to the
Exchange, only FIX may be utilized to send Market Orders. The proposed
amendment to NOM Options 3, Section 7(e)(1)(B) and (D) will not result
in System changes.
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\13\ ``Quote Using Orders'' or ``QUO'' is an interface that
allows Market Makers to connect, send, and receive messages related
to single-sided orders to and from the Exchange. Order Features
include the following: (1) options symbol directory messages (e.g.,
underlying); (2) system event messages (e.g., start of trading hours
messages and start of opening); (3) trading action messages (e.g.,
halts and resumes); (4) execution messages; (5) order messages; and
(6) risk protection triggers and cancel notifications. Orders
submitted by Market Makers over this interface are treated as
quotes. Market Makers may only enter interest into QUO in their
assigned options series.
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Options 3, Section 15
MRX recently amended its Order Price Protection (``OPP'') \14\
rule.\15\ MRX's OPP rule utilized different rule text to explain the
OPP functionality than is currently on NOM. At this time, the Exchange
proposes to amend NOM Options 3, Section 15(a)(1) to align NOM's rule
text to MRX's rule text within Options 3, Section 15(a)(1)(A).
Specifically, the Exchange proposes to remove the references to ``day
limit, good til cancelled, and immediate or cancel orders'' and,
instead, simply refer to ``Limit'' Orders as that order type accurately
captures the scope of the orders subject to OPP. Further, the Exchange
proposes to remove ``market orders'' from the next sentence since OPP
only applies to limit orders. The Exchange also proposes to capitalize
``Opening'' and add Process in Options 2, Section 15(a)(1)(A) to refer
to the Opening Process within Options 3, Section 8. The proposed
amendment to Options 3, Section 15(a)(1) will not result in a System
change.
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\14\ OPP prevents the execution of Limit Orders at prices
outside pre-set parameters.
\15\ See SR-MRX-2022-18.
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Additionally, the Exchange proposes to amend its Acceptable Trade
Range (``ATR'') Rule within NOM Options 3, Section 15(b)(1).\16\ MRX
recently amended its ATR rule.\17\ MRX's ATR rule utilized different
rule text to explain the ATR functionality. At this time, the Exchange
proposes to amend Options 3, Section 15(b)(1)(A) to add the word
``quote'' in that same sentence, where it was omitted and also add the
words ``after the Posting Period'' to explain when a new ATR would be
calculated to provide more context to the rule.\18\
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\16\ ATR is designed to guard against the System from
experiencing dramatic price swings by preventing the immediate
execution of quotes and orders beyond the thresholds set by the
protection.
\17\ See SR-MRX-2022-16.
\18\ The Exchange also proposes technical amendments to
capitalize ``the'' and add opening parentheses in two places.
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Additionally, similar to MRX Options 3, Section 15(a)(2)(A)(v) the
Exchange proposes to add the following rule text within NOM Options 3,
Section 15(b)(1)(C),
There will be three categories of options for Acceptable Trade
Range: (1) Penny Interval Program Options trading in one cent
increments for options trading at less than $3.00 and increments of
five cents for options trading at $3.00 or more, (2) Penny Interval
Program Options trading in one-cent increments for all prices, and
(3) Non-Penny Interval Program Options.
This is how NOM operates today. This rule text makes clear the
application of NOM Options 3, Section 3 to the ATR rule by explicitly
stating the Exchange's ability to set different ATR values by options
category. These ATR values are set forth in NOM's System Settings
document which is posted online.\19\ The Exchange believes this rule
text will add greater clarity to the ATR rule. The proposed amendment
to Options 3, Section 15(b)(1) will not result in a System change.
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\19\ <a href="https://www.nasdaq.com/docs/BXOptionsSystemSettings">https://www.nasdaq.com/docs/BXOptionsSystemSettings</a>.
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The Exchange proposes to capitalize the words ``opening process''
at the end of Options 3, Section 15(c)(1) which refers to the Anti-
Internalization functionality. The term refers to the process within
Options 3, Section 8.
The Exchange proposes to and the words ``or quote'' to Options 3,
Section 15(c)(3) which refers to the Post-Only Quoting Protection. The
paragraph refers to order or quote throughout and was mistakenly
omitted in one sentence.
Options 5, Section 4
Options 5, Section 4 describes the manner in which NOM routes
orders. The Exchange proposes to amend NOM Options 5, Section 4(a) to
eliminate the following rule text,
The term ``System routing table'' refers to the proprietary
process for determining the specific trading venues to which the
System routes orders and the order in which it routes them. The
Exchange reserves the right to maintain a different System routing
table for different routing options and to modify the System routing
table at any time without notice.
When ISE filed to amend its routing rules, it did not include this
sentence.\20\ At this time, the Exchange proposes to remove this
unnecessary term that is not utilized elsewhere within Options 5,
Section 4. Removing this rule text will harmonize NOM's Options 5,
Section 4 rule with ISE's Options 5, Section 4(e). The proposed
amendment to Options 5, Section 4(a) will not result in a System
change.
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\20\ See Securities Exchange Act Release No. 94894 (May 18,
2022), 87 FR 30294 (May 12, 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).
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2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\21\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\22\ in particular, in that it is designed to
promote just and equitable principles of trade, 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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\21\ 15 U.S.C. 78f(b).
\22\ 15 U.S.C. 78f(b)(5).
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Option 3, Sections 4 and 5
The Exchange believes that its proposal to memorialize its bulk
message functionality within Options 3, Section 4(b)(3) is consistent
with the Act as it will codify existing functionality, thereby
promoting transparency in the Exchange's rules
[[Page 45251]]
and reducing any potential confusion.\23\ This functionality provides
Market Makers with an additional tool to meet their various quoting
obligations in a manner they deem appropriate, consistent with the
purpose of the bulk message functionality to facilitate Market Makers'
provision of liquidity. By providing Market Makers with additional
control over the quotes they use to provide liquidity to the Exchange,
this tool may benefit all investors through additional execution
opportunities at potentially improved prices. Today, MRX offers this
same functionality within Options 3, Section 4(b)(3). Further, the
Exchange does not believe that the offering the bulk message
functionality to only Market Makers would permit unfair discrimination.
Market Makers play a unique and critical role in the options market by
providing liquidity and active markets, and are subject to various
quoting obligations which other market participants are not, including
obligations to maintain active markets, update quotes in response to
changed market conditions, to compete with other Market Makers in its
appointed classes, and to provide intra-day quotes in its appointed
classes.\24\ Bulk message functionality provides Market Makers with a
means to help them satisfy these obligations. The proposed amendment to
the Rulebook to add NOM Options 3, Section 4(b)(3) will not result in a
System change.
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\23\ As discussed above, this existing functionality is
currently described in the Exchange's publicly available technical
specifications. See supra note 3.
\24\ See Options 2, Sections 4 and 5.
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The Exchange's proposal to amend Options 3, Section 4(b)(6) to make
clear that the actual price remains non-displayed during re-pricing is
consistent with the Act and removes impediments to and perfects the
mechanism of a free and open market and a national market system
because it displays a re-priced order that does not lock or cross an
away market. The rule text clearly explains that the best bid or offer
will be non-displayed and the re-priced order will be displayed. A
similar change is proposed for NOM Options 3, Section 5(d). MRX
recently amended Options 3, Section 4(b)(6) and Options 3, Section 5(d)
to include the same language.\25\ The proposed change aligns NOM's rule
text to MRX's rule text. The proposed amendment to the Rulebook to add
NOM Options 3, Section 4(b)(6) will not result in a System change.
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\25\ See SR-MRX-2022-16.
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The Exchange's proposal to add a new Options 3, Section 4(b)(7) to
clarify that, today, NOM's System will automatically execute eligible
quotes using the Exchange's displayed best bid and offer (``BBO'') or
the Exchange's non-displayed order book (``internal BBO'') if the best
bid and/or offer on the Exchange has been repriced pursuant to Options
3, Section 5(d) and Options 3, Section 4(b)(6) is consistent with the
Act and protects investors and the public interest. This rule text
seeks to codify the current System function and make clear that the
internal BBO is comprised or both orders and quotes, both of which are
considered for price checks. MRX recently amended Options 3, Section
4(b)(7) to include this language.\26\ The proposed change aligns NOM's
rule text to MRX's rule text. The proposed amendment to the Rulebook to
add NOM Options 3, Section 4(b)(7) will not result in a System change.
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\26\ Id.
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Options 3, Section 7
The Exchange's proposal to amend the name of the ``Post-Only Order
type at Options 3, Section 7(a)(9) to rename the order type ``Add
Liquidity Order'' is a non-substantive technical amendment that will
align the name to that used on MRX.\27\
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\27\ See MRX Options 7, Section 7(n).
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The Exchange's proposal to amend the description of SQF within
Options 3, Section 7(e)(1)(B) and the description of QUO within Options
3, Section 7(e)(1)(D) is consistent with the Act as this rule text is
currently noted within Options 3, Section 7(b)(2) above. The addition
of this language into the description of SQF and QUO provides a more
complete description of this protocol. The addition of this information
also aligns the level of information with that offered on MRX for SQF
within Supplementary Material .03(c) to Options 3, Section 7 and
differentiates the information from QUO. All orders entered into QUO
are not subject to the Order Price Protection or Size Limitation
protections, not Immediate-or-Cancel Orders. Also, the Market Order
Spread Protection is not applicable to QUO because QUO cannot be
utilized to send Market Orders to the Exchange, only FIX may be
utilized to send Market Orders. The proposed amendment to NOM Options
3, Section 7(e)(1)(B) will not result in a System change.
Options 3, Section 15
The Exchange's proposal to amend NOM Options 3, Section 15(a)(1) to
align NOM's OPP rule text to MRX's OPP rule text within Options 3,
Section 15(a)(1)(A) is consistent with the Act \28\ because removing
the references to ``day limit, good til cancelled, and immediate or
cancel orders'' and, instead, referring to ``Limit'' Orders accurately
captures the scope of the orders subject to OPP. This change would also
make unnecessary the reference to market orders. The proposed amendment
to Options 3, Section 15(a)(1) will not result in a System change.
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\28\ MRX recently amended its Order Price Protection (``OPP'')
rule. See SR-MRX-2022-18.
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The Exchange's proposal to amend the ATR Rule within Options 3,
Section 15(b)(1) is consistent with the Act. MRX recently amended its
ATR rule.\29\ MRX's ATR rule utilized different rule text to explain
the ATR functionality. Amending NOM Section 15(b)(1) to add the words
``after the Posting Period'' to explain when a new ATR would be
calculated provides more context to the rule will provide greater
context to the sentence. Additionally, adding the word ``quote'' in the
one sentence where it is omitted will add clarity the sentence. The
proposed amendment to Options 3, Section 15(b)(1) will not result in a
System change. Also, adding rule text within NOM Options 3, Section
15(b)(1)(C) to make clear the Exchange's ability to set different ATR
values by options category is consistent with the Act because the ATR
risk protection limits the range of prices at which an order and quote
trades and would take into account the minimum increment. The ability
for the Exchange to set the ATR based on the increment allows the
Exchange to set appropriate limits. The Exchange believes this rule
text will add greater clarity to the ATR rule. The proposed amendment
to Options 3, Section 15(b)(1) will not result in a System change.
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\29\ See SR-MRX-2022-16.
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Options 5, Section 4
Eliminating an unnecessary term in Options 5, Section 4(a) that is
not utilized elsewhere within Options 5, Section 4 which is unnecessary
is consistent with the Act as it will remove confusion. The proposed
amendment to Options 5, Section 4(a) will not result in a System
change.
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.
[[Page 45252]]
Option 3, Sections 4 and 5
The Exchange believes that its proposal to memorialize its bulk
message functionality within Options 3, Section 4(b)(3) does not impose
an undue burden on intra-market competition. While the Exchange
currently offers this functionality to Market Makers only, bulk
messaging is intended to provide Market Makers with an additional tool
to meet their various quoting obligations in a manner they deem
appropriate. As such, the Exchange believes that this functionality may
facilitate Market Makers' provision of liquidity, thereby benefiting
all market participants through additional execution opportunities at
potentially improved prices. Furthermore, while the Exchange will offer
the proposed Post-Only Quote Configuration to Market Makers only, the
proposed risk protection will enhance the ability of Market Makers to
add liquidity and avoid removing liquidity from the Exchange's order
book in the manner described above. Greater liquidity benefits all
market participants by providing more trading opportunities and
attracting greater participation by Market Makers. The Exchange
believes that its proposal to memorialize its bulk message
functionality within Options 3, Section 4(b)(3) does not impose an
undue burden on inter-market competition as other options exchanges may
adopt this functionality.
The Exchange's proposal to amend NOM's rules at Options 3, Section
4(b)(6) and Options 3, Section 4(b)(7) do not impose an undue burden on
competition because all options markets must not trade-through other
orders on their markets as well as away markets. The proposed change
aligns NOM's rule text to MRX's rule text.
Options 3, Section 7
The Exchange's proposal to amend the name of the ``Post-Only Order
type at Options 3, Section 7(a)(9) to rename the order type ``Add
Liquidity Order'' is a non-substantive technical amendment that does
not impose an undue burden on competition.
Amending the description of SQF within Options 3, Section
7(e)(1)(B) and the description of QUO within Options 3, Section
7(e)(1)(D) does not impose an undue burden on competition The addition
of this language into the description of SQF and QUO provides a more
complete description of this protocol.
Options 3, Section 15
The Exchange's proposal to amend NOM Options 3, Section 15(a)(1) to
align NOM's OPP rule text to MRX's OPP rule text within Options 3,
Section 15(a)(1)(A) does not impose an undue burden on competition
because removing the references to ``day limit, good til cancelled, and
immediate or cancel orders'' and, instead, referring to ``Limit''
Orders accurately captures the scope of the orders subject to OPP. This
change would also make unnecessary the reference to market orders.
The Exchange's proposal to amend the ATR Rule within Options 3,
Section 15(b)(1) does not impose an undue burden on competition.
Amending NOM Section 15(b)(1) to add the words ``after the Posting
Period'' to explain when a new ATR would be calculated provides more
context to the rule will provide greater context to the sentence.
Additionally, adding the word ``quote'' in the one sentence where it is
omitted will add clarity the sentence. Adding rule text within NOM
Options 3, Section 15(b)(1)(C) to make clear the Exchange's ability to
set different ATR values by options category does not impose an undue
burden on competition because the ability for the Exchange to set the
ATR based on the increment allows the Exchange to set appropriate
limits. The Exchange believes this rule text will add greater clarity
to the ATR rule.
Options 5, Section 4
Eliminating an unnecessary reference within amend Options 5,
Section 4(a) does not impose an undue burden on competition because the
term is not utilized elsewhere within Options 5, Section 4.
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 \30\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\31\
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\30\ 15 U.S.C. 78s(b)(3)(A)(iii).
\31\ 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.
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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="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#394b4c555c145a5654545c574d4a794a5c5a175e564f"><span class="__cf_email__" data-cfemail="6a181f060f47090507070f041e192a190f09440d051c">[email protected]</span></a>. Please include
file number SR-NASDAQ-2023-018 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-2023-018. 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="https://www.sec.gov/rules/sro.shtml">https://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
a.m. and 3 p.m. Copies of the filing also
[[Page 45253]]
will be available for inspection and copying at the principal office of
the Exchange. Do not include personal identifiable information in
submissions; you should submit only information that you wish to make
available publicly. We may redact in part or withhold entirely from
publication submitted material that is obscene or subject to copyright
protection. All submissions should refer to file number SR-NASDAQ-2023-
018 and should be submitted on or before August 4, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\32\
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\32\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-14910 Filed 7-13-23; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on July 14, 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.