Notice2023-16124
Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Equity 4, Rules 4752, 4753, and 4754
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
July 31, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 145 (Monday, July 31, 2023)</title>
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[Federal Register Volume 88, Number 145 (Monday, July 31, 2023)]
[Notices]
[Pages 49522-49526]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-16124]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-97973; File No. SR-NASDAQ-2023-024]
Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Equity 4, Rules 4752, 4753, and 4754
July 25, 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 July 19, 2023, The Nasdaq Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II 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 Equity 4, Rules 4752, 4753, and 4754
\3\ to clarify and restate the order in which Nasdaq prioritizes
executions of Orders in its Opening, Closing, and Halt Crosses.
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\3\ References herein to Nasdaq Rules in the 4000 Series shall
mean Rules in Nasdaq Equity 4.
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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
The Exchange proposes to amend and restate portions of its Rules
governing its Opening (Rule 4752) and Closing Crosses (Rule 4754)
(collectively, the ``Crosses'') to clarify the existing processes for
execution prioritization, including by correcting errors and omissions,
as well as to clarify the Exchange's intentions for those processes.
The Exchange also proposes to amend the Rule governing processing of
the Halt Cross (Rule 4753) to accurately reflect the relative execution
prioritization of Displayed and Non-Displayed Orders entered therein.
[[Page 49523]]
The Exchange's Rules governing its Crosses each include a
description of the priority in which the Exchange will execute Orders
eligible to execute in a Cross when fewer than all such orders can be
executed therein. The priority assignments are unique to each type of
Cross.
With respect to the Opening and Closing Crosses, the Exchange
generally assigns priority in buckets as follows, with orders executed
on a price-time basis within each bucket: (1) market orders designated
for the Crosses; (2) interest designated for the Crosses that is priced
more aggressively than the Opening/Closing Cross Price, as applicable;
(3) limit on Open/Close orders and displayed interest priced at the
Opening/Closing Cross Price; and (4) non-displayed interest. All orders
unexecuted in the Crosses are cancelled unless they are otherwise
designated to continue trading afterwards.
The Exchange proposes to restate its Opening and Closing Cross
procedures to clarify, simplify and, in certain cases, correct them so
that they fully reflect the Exchange's intentions and practices. The
Exchange believes that the existing Rule text is confusing in several
respects. First, the existing prioritization Rules expressly
differentiate between executions of certain Orders priced more
aggressively than the Cross prices from those that would be priced at
the Cross prices, even though the concept of price-time priority
necessarily provides that Orders priced more aggressively would execute
before Orders priced less aggressively. Second, the existing Rules
describe, but do not always state expressly, that they prioritize
execution of Displayed Orders and interest before Non-Displayed Orders.
Third, the Rules do not state clearly how the System prioritizes
certain Orders that are designated to either execute in the Crosses or
cancel, without rebooking unaltered into the continuous market.
The Exchange proposes to restate and clarify these existing Rules
for the Nasdaq Opening and Closing Crosses to address these issues, as
follows.
The Exchange proposes to retain the first order execution
prioritization bucket for the Nasdaq Opening Cross, at Rule
4752(d)(3)(A), which states that the System will first prioritize
execution of Market on Open Orders (``MOOs'') \4\ and Early Market
Hours market peg orders,\5\ with time as the secondary priority.
However, the Exchange proposes to consolidate the next two
prioritization buckets, at Rule 4752(d)(3)(B) and (C).
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\4\ A MOO is an Order Type entered without a price that may be
executed only during the Nasdaq Opening Cross at the price
determined by the Opening Cross. See Rule 4702(b)(8).
\5\ ``Early Market Hours Orders'' are those that, if entered
into the System prior to 9:28 a.m. shall be treated as MOO and LOO,
as appropriate, for the purposes of the Nasdaq Opening Cross. See
Rule 4752(a)(10).
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Under existing Rule 4752(d)(3)(B), the System prioritizes Limit on
Open Orders (``LOOs''),\6\ limit orders with a Time in Force (``TIF'')
of Early Market Hours,\7\ Opening Imbalance Only Orders (``OIOs''),\8\
SDAY limit orders, SGTC limit orders, GTMC limit orders, SHEX limit
orders, displayed \9\ quotes, and reserve interest priced more
aggressively than the Nasdaq Opening Cross price based on limit price
with time as the secondary priority. Under existing Rule 4752(d)(3)(C),
the System prioritizes execution of remaining LOOs and displayed
interest, i.e., LOO orders, OIO, Early Market Hours Orders and
displayed interest of quotes, SDAY limit orders, SGTC limit orders,
GTMC limit orders, and SHEX limit orders, at the Nasdaq Opening Cross
price with time as the secondary priority. Nasdaq proposes to
consolidate these two buckets into one, as they state essentially the
same thing--that the Exchange will prioritize as a group the execution
of Displayed Orders and interest, with price as the primary priority,
and then within each price level, time as the secondary priority. That
is, there is no reason to distinguish between Orders priced more
aggressively than the Opening Cross Price from those priced at the
Opening Cross Price, as the concept of price-time priority sufficiently
implies that the former category of Orders will execute prior to the
latter category of Orders.\10\ The proposed amended Rule text also
makes clear that all of the Orders in this new single prioritization
bucket are either Displayed Orders or, as discussed below, are neither
Displayed nor Non-Displayed Orders, but are currently treated like
Displayed Orders for purposes of execution priority.\11\ This includes
auction-only Orders with an Immediate-or-Cancel Order Attribute
(``IOC'' Orders) \12\ that do not rest on the Book after entry (and
thus are neither Displayed nor Non-Displayed, strictly speaking), and
are designated to either execute in the Opening Cross or cancel,
without rebooking unaltered into the continuous market afterwards.
(OIOs are another example of such an auction-only Order that is
assigned a TIF of IOC and is therefore treated as a Displayed Order for
purposes of priority.) The existing prioritization language does not
clearly account for such Orders, and the proposal codifies their
treatment. The proposed consolidated and restated
[[Page 49524]]
prioritization bucket would be as follows, at a new Rule 4752(d)(3)(B):
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\6\ A LOO is an Order Type entered with a price that may be
executed only in the Nasdaq Opening Cross, and only if the price
determined by the Nasdaq Opening Cross is equal to or better than
the price at which the LOO Order was entered. See Rule 4702(b)(9).
\7\ A TIF assigned to an Order means the period of time that the
Nasdaq Market Center will hold the Order for potential execution.
Participants specify an Order's Time-in-Force by designating a time
at which the Order will become active and a time at which the Order
will cease to be active. See Rule 4703(a). TIFs that would permit
trading on the Continuous Book during Regular Market Hours include
TIFs of ``Market Hours,'' ``Market Hours Day'' or ``MDAY,'' ``Market
Hours Good-til-Cancelled'' or ``MGTC,'' ``System Hours,'' ``System
Hours Good-til-Cancelled'' or ``SGTC,'' ``Good-til-Cancelled'' or
``GTC,'' and Extended Hours Trading or ``EXT.'' TIFs that would
permit trading on the Continuous Book after Regular Market Hours
include TIFs of ``System Hours,'' ``SDAY,'' ``GTC,'' and Closing
Cross/Extended Hours'' or ``EXT.'' See id.; see Rule 4702(b)(12)(B).
\8\ An OIO is an Order Type entered with a price that may be
executed only in the Nasdaq Opening Cross and only against MOO
Orders, LOO Orders, or Early Market Hours Orders. See Rule
4702(b)(10).
\9\ Display is an Order Attribute that allows the price and size
of an Order to be displayed to market participants via market data
feeds. All Orders that are Attributable are also displayed, but an
Order may be displayed without being Attributable. As discussed in
Rule 4702, a Non-Displayed Order is a specific Order Type, but other
Order Types may also be non-displayed if they are not assigned a
Display Order Attribute; however, depending on context, all Orders
that are not displayed may be referred to as ``Non-Displayed
Orders.'' An Order with a Display Order Attribute may be referred to
as a ``Displayed Order.'' See Rule 4703(k).
\10\ There is also no reason for the existing Rules to state the
different types of Displayed Limit Orders that this bucket contains,
as all such Limit Orders are included in it. Thus, the Exchange
proposes to refer to these orders collectively as ``Limit Orders.''
\11\ The proposed amended Rule also addresses an oversight in
the prioritization of Reserve Orders. Currently, Rule 4752(d)(3)(B)
expressly sets priority for ``displayed . . . reserve interest''--
which refers to the Displayed portion of Reserve Orders--priced more
aggressively than the Cross Price. However, Rule 4752(d)(3)(C) does
not expressly account for displayed reserve interest priced at the
Opening Cross Price. Instead, the Rule merely implies that such
Orders are included in (C) by referring to ``remaining . . .
displayed interest.'' Market participants may find such incongruous
language confusing, and the Exchange therefore the Exchange proposes
to delete references to ``reserve interest'' in existing Rule
4752(d)(3)(B) and the ``interest of quotes'' in existing Rule
4752(d)(3)(C) in favor of the phrase ``the Displayed size of Reserve
Orders.''
\12\ As stated in Rule 4703(a)(1), an IOC Order is one that is
designated to deactivate immediately after determining whether the
Order is marketable. Except as provided in Rule 4702 with respect to
Opening Cross/Market Hours Orders and Closing Cross/Extended Hours
Orders, MOO, LOO, OIO, MOC, LOC and OI Orders all have a Time in
Force of IOC, because they are designated for execution in the
Nasdaq Opening Cross or the Nasdaq Closing Cross, as applicable, and
are cancelled after determining whether they are executable in such
cross. Such an Order may also be referred to as having a Time-in-
Force of ``On Open'' or ``On Close'', respectively. An MOO, LOO,
OIO, MOC, LOC or IO Order, or any other Order with a Time-in-Force
of IOC entered between 9:30 a.m. ET and 4:00 p.m. ET, may be
referred to as having a Time-in-Force of ``Market Hours Immediate or
Cancel'' or ``MIOC.''
Displayed Orders, with price as the primary priority, and then
within each price level, with time as the secondary priority,
including the following: LOOs; OIOs; Limit Orders; the Displayed
size of Reserve Orders; other Displayed interests and all Orders
with TIFs designated to execute in the Opening Cross and not
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immediately rebook, unaltered, into the continuous market;
The Exchange proposes to restate and renumber current Rule
4752(d)(3)(D), which prioritizes the execution of the reserve interest
of quotes, SDAY limit orders, SGTC limit orders, GTMC limit orders, and
SHEX limit orders, at the Nasdaq Opening Cross price with time as the
secondary priority. Nasdaq proposes to amend this provision to state
expressly what this provision implies--that it encompasses the
prioritization of Non-Displayed Orders in price-time priority. Thus,
the Exchange proposes to replace Rule 4752(d)(3)(D) with a new Rule
4752(d)(3)(C), which would state as follows: ``Non-Displayed Orders,
including LOOs, Limit Orders, and the Non-Displayed size of Reserve
Orders, with price as the primary priority, and then within each price
level, time as the secondary priority.''
The Exchange proposes to move the last sentence of Rule
4752(d)(3)(B), which states that an Order to buy (sell) that is locked
or crossed at its non-displayed price by a Post-Only Order on the
Nasdaq Book in Early Market Hours, and which has been deemed to have a
price at one minimum price increment below (above) the price of the
Post-Only Order, shall be ranked in time priority behind all orders at
the price at which the Order was posted to the Nasdaq Book. The
Exchange proposes to move this provision to a new, unnumbered paragraph
in Rule 4752(d)(3) that follows the prioritization provisions at
(d)(3)(A)-(C). This Exchange proposes this change because this
provision is not part of the general prioritization of Displayed and
Non-Displayed Orders in the Cross; rather it provides for special
prioritization of an Order in a specific circumstance involving
interaction with a specific Order Type. The Exchange believes that
relocating this provision will avoid confusion.
The Exchange proposes to make similar amendments to Rule
4754(b)(3), which governs the execution priority of Orders and interest
in the Nasdaq Closing Cross when fewer than all MOC, Limit on Close
Orders (``LOCs''),\13\ IO, and Close Eligible Interest \14\ would be
executed therein. Similar to the Opening Cross Rules, the Exchange
proposes to retain current Rule 4754(b)(3)(A), which prioritizes
execution of Market on Close Orders (``MOCs''),\15\ with time as the
secondary priority. And again, the Exchange proposes to consolidate and
restate the second and third prioritization buckets.
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\13\ A LOC is an Order Type entered with a price that may be
executed only in the Nasdaq Closing Cross or the LULD Closing Cross
(except as provided herein), and only if the price determined by the
Nasdaq Closing Cross or the LULD Closing Cross (except as provided
herein) is equal to or better than the price at which the LOC Order
was entered. See Rule 4702(b)(12).
\14\ Close Eligible Interest means 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. See Rule 4754(a)(1).
\15\ A MOC is an Order Type entered without a price that may be
executed only during the Nasdaq Closing Cross at the price
determined by the Closing Cross. See Rule 4702(b)(11).
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Existing Rule 4754(b)(3)(B) prioritizes LOC, limit orders,
Imbalance Only Orders (``IOs''),\16\ Displayed quotes and reserve
interest priced more aggressively than the Nasdaq Closing Cross price
based on price with time as the secondary priority. Meanwhile, existing
Rule 4754(b)(3)(C) prioritizes LOCs, IOs, displayed interest of limit
orders, and displayed interest of quotes at the Nasdaq Closing Cross
price with time as the secondary priority. Again, Nasdaq proposes to
consolidate these two buckets into one to state more simply the concept
that, in the Closing Cross, the Exchange will prioritize as a group the
execution of Displayed Orders and interest, with price as the primary
priority, and then within each price level, with time as the secondary
priority. As with the Opening Cross, there is no reason to distinguish
in the Closing Cross between Orders priced more aggressively than the
Closing Cross Price from those priced at the Closing Cross Price, as
the concept of price-time priority sufficiently implies that the former
category of Orders will execute prior to the latter category of
Orders.\17\ The proposed amended Rule text also makes clear that all of
the Orders in this new single prioritization bucket are either
Displayed Orders or are currently treated like Displayed Orders for
purposes of execution priority, despite being neither Displayed nor
Non-Displayed.\18\ This includes auction-only IOC Orders that do not
rest on the Book after entry (and thus are neither Displayed nor Non-
Displayed, strictly speaking), and are designated to either execute in
the Closing Cross or cancel, without rebooking unaltered into the
continuous market afterwards. (IOs are another example of such an
auction-only Order that is assigned a TIF of IOC and is therefore
treated as a Displayed Order for purposes of priority.) The existing
prioritization language does not clearly account for such Orders, and
the proposal codifies their treatment. The proposed consolidated and
restated prioritization bucket would be as follows, at a new Rule
4754(b)(3)(B):
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\16\ An IO is an Order entered with a price that may be executed
only in the Nasdaq Closing Cross and only against MOC Orders or LOC
Orders. See Rule 4702(b)(13).
\17\ There is also no reason for the existing Rules to state the
different types of Displayed Limit Orders that this bucket contains,
as all such Limit Orders are included in it. Thus, the Exchange
proposes to refer to these orders collectively as ``Limit Orders.''
\18\ The proposed amended Rule also addresses an oversight in
the prioritization of Reserve Orders. Currently, Rule 4754(b)(3)(B)
expressly sets priority for ``displayed . . . reserve interest''--
which refers to the Displayed portion of Reserve Orders--priced more
aggressively than the Cross Price. However, Rule 4754(b)(3)(C) does
not expressly account for Displayed Reserve interest priced at the
Opening Cross Price. Instead, the Rule merely implies that such
Orders are included in (C) by referring to ``remaining . . .
displayed interest.'' Market participants may find such incongruous
language confusing, and the Exchange proposes to delete references
to ``reserve interest'' in existing Rule 4754(b)(3)(B) and the
``interest of quotes'' in existing Rule 4754(b)(3)(C) in favor of
the phrase ``Displayed size of Reserve Orders.''
Displayed Orders, with price as the primary priority, and then
within each price level, with time as the secondary priority,
including the following: LOCs; IOs; Limit orders; the Displayed size
of Reserve Orders; other Displayed interest; and all Orders with
TIFs designated to execute in the Nasdaq Closing Cross and not
immediately rebook, unaltered, into the continuous market after
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Regular Market Hours;
The Exchange proposes to restate and renumber current Rule
4754(b)(3)(D), which prioritizes the execution of reserve interest at
the Nasdaq Closing Cross price with time as the secondary priority.
Nasdaq proposes to amend this provision to state expressly what the
Exchange intends for this provision to imply--that it encompasses the
prioritization of the Non-Displayed portion of Reserve Orders and other
Non-Displayed Orders in price-time priority. Thus, the Exchange
proposes to replace Rule 4754(b)(3)(D) with a new Rule 4752(b)(3)(C),
which would state as follows: ``Non-Displayed Orders, including LOCs,
Limit Orders, and the Non-Displayed size of Reserve Orders, with price
as the primary priority, and then within each price level, time as the
secondary priority.''
The Exchange proposes to delete current Rule 4754(b)(3)(E), which
states that unexecuted MOC, LOC, and IO orders will be canceled. The
Exchange
[[Page 49525]]
proposes to delete this provision because it does not concern the
prioritization of execution and it is redundant of statements of the
cancellation conductions for these Order Types as set forth in Rule
4702. The Exchange also notes that a similar provision does not exist
in Rule 4752(d)(3) governing the Nasdaq Opening Cross, such that the
deletion of this provision will render both sets of Cross rules
consistent.
The Exchange proposes to move the last sentence of Rule
4754(b)(3)(B), which states that an Order to buy (sell) that is locked
or crossed at its non-displayed price by a Post-Only Order on the
Nasdaq Book, and which has been deemed to have a price at one minimum
price increment below (above) the price of the Post-Only Order, shall
be ranked in time priority behind all orders at the price at which the
Order was posted to the Nasdaq Book. The Exchange proposes to move this
provision to a new, unnumbered paragraph in Rule 4754(b)(3) that
follows the prioritization provisions at (b)(3)(A)-(C). This Exchange
proposes this change because this provision is not part of the general
prioritization of Displayed and Non-Displayed Orders in the Cross;
rather it provides for special prioritization of an Order in a specific
circumstance involving interaction with a specific Order Type. The
Exchange believes that relocating this provision will avoid confusion.
In addition to the above, the Exchange proposes to amend Rule 4753,
which governs the Exchange's procedures for conducting the Halt Cross
when fewer than all shares of Eligible Interest \19\ are executed at
the Nasdaq Halt Cross price. Currently, Rule 4753(b)(3) states that, if
the Nasdaq Halt Cross price is selected and fewer than all shares of
Eligible Interest that are available in the Nasdaq Market Center would
be executed, all Eligible Interest shall be executed at the Nasdaq Halt
Cross price in price-time priority.\20\ The Exchange proposes to amend
this Rule to account for the fact that it fails to distinguish between
how the System prioritizes Displayed (and IOCs and IOs treated as
Displayed Orders) vis-a-vis Non-Displayed Eligible Interest in a Halt
Cross. Specifically, the Exchange proposes to amend the reference to
``price/time'' priority to state instead ``price/display/time
priority.'' The Exchange also proposes to add a sentence which states
that Displayed Eligible Interest and Orders with IOC shall be ranked in
time priority ahead of Non-Displayed Eligible Interest with the same
prices.
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\19\ Eligible Interest is any quotation or any Order that has
been entered into the system and designated with a TIF that would
allow the order to be in force at the time of the Halt Cross. See
Rule 4753(a)(5).
\20\ Rule 4753(b)(3) also states that an Order to buy (sell)
that is locked or crossed at its non-displayed price by a Post-Only
Order on the Nasdaq Book, and which has been deemed to have a price
at one minimum price increment below (above) the price of the Post-
Only Order, shall be ranked in time priority ahead of all orders one
minimum price increment below (above) the price of the Post-Only
Order but behind all orders at the price at which the Order was
posted to the Nasdaq Book.
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This proposed amendment is intended to codify existing practice and
to render Halt Cross prioritization procedures roughly consistent with
those of the Opening and Closing Crosses.
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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It is consistent with the Act to for the Exchange to amend its
Rules governing its Crosses so that they account for how the System
prioritizes certain Orders in certain situations and so that they
accurately and clearly distinguish between how the System prioritizes
Displayed versus Non-Displayed variants of Orders in the Crosses, as
well as Orders with IOC that do not survive the Crosses. It is in the
best interests of investors and the public, and consistent with the
maintenance of an orderly market, to maintain comprehensive, accurate,
and specific rules governing the prioritization of order execution in
the Nasdaq Crosses. Doing so will avoid potential participant and
investor confusion and frustration as well as promote confidence and
participation in the Crosses.
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 proposed rule change will
clarify and correct the Exchange's Rules governing its prioritization
of order executions in the Cross. Such changes are neither intended to
nor will they adversely impact competition. If anything, the Exchange
expects that the proposed changes will promote competition by
increasing confidence in and the attractiveness of participating in the
Exchange's Crosses.
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) of the Act \23\ and Rule 19b-
4(f)(6) thereunder.\24\
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\23\ 15 U.S.C. 78s(b)(3)(A).
\24\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of 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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A proposed rule change filed under Rule 19b-4(f)(6) \25\ normally
does not become operative prior to 30 days after the date of the
filing. However, Rule 19b-4(f)(6)(iii) \26\ permits the Commission to
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing. The Commission believes
that waiver of the 30-day operative delay is consistent with the
protection of investors and the public interest because the proposed
rule change does not raise any new or novel issues. Accordingly, the
Commission hereby waives the 30-day operative delay and designates the
proposed rule change as operative upon filing.\27\
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\25\ 17 CFR 240.19b-4(f)(6).
\26\ 17 CFR 240.19b-4(f)(6)(iii).
\27\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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
[[Page 49526]]
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 change
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#3c4e495059115f5351515952484f7c4f595f125b534a"><span class="__cf_email__" data-cfemail="91e3e4fdf4bcf2fefcfcf4ffe5e2d1e2f4f2bff6fee7">[email protected]</span></a>. Please include
file number SR-NASDAQ-2023-024 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-2023-024. 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 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-2023-024 and
should be submitted on or before August 21, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\28\
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\28\ 17 CFR 200.30-3(a)(12), (59).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2023-16124 Filed 7-28-23; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on July 31, 2023.
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