[Federal Register Volume 85, Number 59 (Thursday, March 26, 2020)]
[Notices]
[Pages 17134-17136]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-06388]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-88457; File No. SR-GEMX-2020-07]
Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Related to the
Removal of Obsolete Listing Rules
March 23, 2020.
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 March 10, 2020, Nasdaq GEMX, LLC (``GEMX'' 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 its Rules at Options 2, Options
Market Participants; Options 3, Section 2, Units of Trading and Meaning
of Premium Quotes and Orders; Options 3, Section 3, Minimum Trading
Increments; and Options 3, Section 15, Simple Order Risk Protections.
Additionally, the Exchange proposes to add new sections at General 9
and Options 4B and reserve those sections.
The text of the proposed rule change is available on the Exchange's
website at http://nasdaqgemx.cchwallstreet.com/, 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.
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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 GEMX Rules at Options 2, Options
Market Participants; Options 3, Section 2, Units of Trading and Meaning
of Premium Quotes and Orders; Options 3, Section 3, Minimum Trading
Increments; and Options 3, Section 15, Simple Order Risk Protections.
Additionally, the Exchange proposes to add new sections at General 9
and Options 4B and reserve those sections. The various proposed changes
will be discussed below.
Mini Options
The Exchange has not listed Mini Options in several years and is
proposing to delete Mini Options listing rules and other ancillary
trading rules related to the listing of Mini Options. The Exchange
notes that it has no open interest in Mini Options.
Specifically, the Exchange proposes to amend the following GEMX
Rules related to Mini Options by deleting references to Mini Options
within these rules: Options 3, Section 2(c), Units of Trading and
Meaning of Premium Quotes and Orders; and Options 3, Section 3, Minimum
Trading Increments, at Supplementary Material .03. The Exchange also
proposes to re-letter (b) as (c).
Foreign Currency Index
The Exchange removed \3\ prior GEMX Section 22, which was titled
``Rate-Modified Foreign Currency Options Rules'' and governed the
listing and trading of foreign currency options on GEMX. At this time,
the Exchange is removing a reference that is no longer necessary within
Options 3, Section 3, Minimum Trading Increments, at Supplementary
Material .02, because the product is not available to be listed on
GEMX.
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\3\ See Securities Exchange Act Release No. 84791 (December 11,
2018), 83 FR 64611 (December 11, 2018) (SR-GEMX-2018-41) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Delete
GEMX Section 22 of the Rulebook).
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Rulebook Harmonization
The Exchange recently harmonized its Rulebook in connection with
other Nasdaq affiliated markets. The Exchange proposes to reserve
sections General 9 and Options 4B and certain other rules \4\ within
the GEMX Rulebook to represent the presence of rules in similar
locations in other Nasdaq affiliated Rulebooks (e.g. Nasdaq Phlx LLC)
\5\. The addition of these reserved sections will align the various
Nasdaq affiliated market Rulebooks.
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\4\ The Exchange proposes to reserve Options 2, Sections 11-14
and Options 6, Section 8-13.
\5\ See Securities Exchange Act Release No. 88213 (February 14,
2020), 85 FR 9859 (February 20, 2020) (SR-Phlx-2020-03) (``Phlx
Rulebook Relocation Rule Change'').
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Other Non-Substantive Amendments
The Exchange proposes to delete duplicative text within Options 3,
Section 15, Simple Order Risk Protections. Current Options 3, Section
15(c) appears in Section 15(a) and current Options 3, Section 15(d)
appears in Options 3, Section 15(a)(1)(C).
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\6\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\7\ 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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\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
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Mini Options
The Exchange's proposal to removal references to the listing and
handling of Mini Options is consistent with the Act because Mini
Options have not been listed in several years and thereby removing the
references to the rules would render the rules more accurate and reduce
potential investor confusion. Also, the Exchange notes that it has no
open interest in Mini Options. In the event that the Exchange desires
to list Mini Options in the future, it would file a rule change with
the Commission to adopt rules to list Mini Options.
Foreign Currency Index
The Exchange's proposal to remove rules and references to the
listing and handling of Foreign Currency Indexes is consistent with the
Act because the listing rules for these products have been removed.
Also, the Exchange notes that it has no open interest in Foreign
Currency Indexes. In the event that the Exchange desires to list
Foreign Currency Indexes in the future, it would file a rule change
with the Commission.
Rulebook Harmonization
The Exchange's proposal to reserve new sections at General 9 and
Options 4B within the Rulebook is a non-substantive amendment which
aligns the numbering across Nasdaq affiliated Rulebooks to provide
market participants with an ability to more readily locate rules.
Other Non-Substantive Amendments
The Exchange's proposal to remove duplicative text within Options
3, Section 15 is non-substantive and is intended to reduce investor
confusion.
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.
Mini Options
The Exchange's proposal to removal references to the listing and
handling of Mini Options does not impose an undue burden on
competition. Mini Options have not been listed in several years. Also,
the Exchange notes that it has no open interest in Mini Options.
Foreign Currency Index
The Exchange's proposal to removal references to the listing and
handling of Foreign Currency Indexes does not impose an undue burden on
competition. Foreign Currency Indexes have not been listed in several
years. Also, the Exchange notes that it has no open interest in Foreign
Currency Indexes.
Rulebook Harmonization
The Exchange's proposal to add reserved sections General 9 and
Options 4B to the Rulebook is a non-substantive amendment which aligns
the numbering across Nasdaq affiliated Rulebooks to provide market
participants with an ability to more readily locate rules.
Other Non-Substantive Amendments
The Exchange's proposal to remove duplicative text within Options
3, Section 15 is a non-substantive amendment.
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
[[Page 17136]]
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 \8\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\9\
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\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\9\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires the Exchange 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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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
Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-GEMX-2020-07 on the subject line.
Paper Comments
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-2020-07. 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 (http://www.sec.gov/rules/sro.shtml).
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-GEMX-2020-07 and should be submitted on
or before April 16, 2020.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-06388 Filed 3-25-20; 8:45 am]
BILLING CODE 8011-01-P