Federal Register / Vol. 80, No. 19 / Thursday, January 29, 2015 / Notices 4953 

12See NYSE Arca Integrated Feed, http://

www.nyxdata.com/page/1084 (last visited January 

5, 2015)(data feed that provides a unified view of 

events, in sequence as they appear on the NYSE 

Arca matching engine, including depth of book, 

trades, order imbalance data, and security status 

messages). 

13See Nasdaq TotalView–ITCH, http://

www.nasdaqtrader.com/Trader.aspx?id=Totalview2 

(last visited January 5, 2015)(displays the full order 

book depth for Nasdaq market participants and also 

disseminates the Net Order Imbalance Indicator 

(NOII) for the Nasdaq Opening and Closing Crosses 

and Nasdaq IPO/Halt Cross). 

14See BATS Multicast PITCH, http://

www.batstrading.com/market_data/products/ (last 

visited January 5, 2015)(real-time depth of book 

quotations and execution information). 

15See Regulation NMS Adopting Release, supra, 

at 37503. 

16 15 U.S.C. 78s(b)(3)(A)(iii). 

17 17 CFR 240.19b–4(f)(6). 

18The Exchange has satisfied this requirement. 19 15 U.S.C. 78s(b)(2)(B). 

20 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 73736 

(December 4, 2014), 79 FR 73354. 

4 15 U.S.C. 78s(b)(2). 

Feed,12 offered by the Exchange’s 

affiliate, NYSE Arca, Inc. (‘‘NYSE 

Arca’’), Nasdaq TotalView–Itch,13

offered by The Nasdaq Stock Market, 

Inc., and BATS Multicast Pitch,14

offered by BATS Global Markets. This 

proposed new data feed provides 

investors with new options for receiving 

market data, which was a primary goal 

of the market data amendments adopted 

by Regulation NMS.15

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 16 and Rule 

19b–4(f)(6) thereunder.17 Because the 

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 

prior to 30 days from the date on which 

it was filed, or such shorter time as the 

Commission may designate, if 

consistent with the protection of 

investors and the public interest, 

provided that the self-regulatory 

organization has given 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,18 the proposed rule 

change has become effective pursuant to 

Section 19(b)(3)(A) of the Act and Rule 

19b–4(f)(6)(iii) thereunder. 

At any time within 60 days of the 

filing of such 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 

under Section 19(b)(2)(B) 19 of the Act 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 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NYSE–2015–03 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSE–2015–03. 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 Web site (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 Web site viewing and 

printing in the Commission’s Public 

Reference Section, 100 F Street NE., 

Washington, DC 20549–1090, on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing will also be available for Web site 

viewing and printing at the NYSE’s 

principal office and on its Internet Web 

site at www.nyse.com. All comments 

received will be posted without change; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–NYSE– 

2015–03 and should be submitted on or 

before February 19, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.20

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–01647 Filed 1–28–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74126; File No. SR–ISE– 

2014–24] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Designation of Longer 

Period for Commission Action on 

Proposed Rule Change To Modify the 

Opening Process 

January 23, 2015. 

On November 19, 2014, International 

Securities Exchange, LLC (‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

to Section 19(b)(1) of the Securities 

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to modify the manner in which 

the Exchange’s trading system opens 

trading at the beginning of the day and 

after trading halts and to codify certain 

existing functionality within the trading 

system regarding opening and reopening 

of options classes traded on the 

Exchange. The proposed rule change 

was published for comment in the 

Federal Register on December 10, 

2014.3 The Commission has received no 

comment letters on the proposal. 

Section 19(b)(2) of the Act 4 provides 

that within 45 days of the publication of 

notice of the filing of a proposed rule 

change, or within such longer period up 

to 90 days as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or as to which the 

self-regulatory organization consents, 

the Commission shall either approve the 

mstockstill on DSK4VPTVN1PROD with NOTICES

4954 Federal Register / Vol. 80, No. 19 / Thursday, January 29, 2015 / Notices 

5 15 U.S.C. 78s(b)(2)(A)(ii)(I). 

6 17 CFR 200.30–3(a)(31). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 73784 

(December 8, 2014), 79 FR 73930 (‘‘Notice’’). 

4See Email from Anonymous, to Secretary, 

Commission, dated January 2, 2015 (‘‘Comment 

Letter’’). 

5See Notice, supra note 3 at 73930. 

6Proposed BX Chapter VI, Section 1(e)(1). 

7Proposed BX Chapter VI, Section 6(a)(1) and (2). 

8Proposed BX Chapter VI, Section 10(1)(C)(1)(c) 

and Section 10(1)(C)(2)(ii). 

9Proposed BX Chapter VII, Section 15(ii). 

10Proposed BX Chapter VII, Section 15(iii). 

Pursuant to BX Ch. VII, Section 6(d), BX market 

makers must quote 60% of the trading day (as a 

percentage of the total number of minutes in such 

trading day) or such higher percentage as BX may 

announce in advance. 

11Proposed BX Chapter VII, Section 15(iii). While 

the Market Maker’s quoting requirement is a daily 

obligation, the Exchange will determine compliance 

with these obligations on a monthly basis. BX 

Regulation may consider exceptions to the 

requirement to quote 90% (or higher) of the trading 

day based on demonstrated legal or regulatory 

requirements or other mitigating circumstances. 

If a technical failure or limitation of a system of 

the Exchange prevents a DMM from maintaining, or 

prevents a DMM from communicating to the 

Exchange, timely and accurate electronic quotes in 

an issue, the duration of such failure shall not be 

considered in determining whether the DMM has 

satisfied the 90% quoting standard with respect to 

that option issue. Id. 

12Proposed BX Chapter VII, Section 15(iii). 

13 Id. 

14BX Chapter VI, Section 10(1)(C)(1)(c). 

15BX Chapter VI, Section 10(1)(C)(1)(c). If this 

calculation results in a non-integer, the Exchange 

will round up or down to the nearest integer. Id. 

at Section 10(1)(C)(1)(b)(1). 

16Proposed BX Chapter VI, Section 

10(1)(C)(1)(c)(3). BX’s current Chapter VI, Section 

10(1)(C)(1)(b) provides that an LMM, upon receipt 

of an order will be afforded a participation 

entitlement, provided the LMM’s bid/offer is at the 

Exchange’s disseminated price. The LMM is not 

entitled to receive a number of contracts that is 

greater than the displayed size associated with such 

LMM. LMM participation entitlements are 

considered after the opening process. 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether these 

proposed rule changes should be 

disapproved. The 45th day for this filing 

is January 24, 2015. 

The Commission is extending the 45- 

day time period for Commission action 

on the proposed rule change. The 

Commission finds that it is appropriate 

to designate a longer period within 

which to take action on the proposed 

rule change so that it has sufficient time 

to consider and take action on the 

Exchange’s proposed rule change. 

Accordingly, pursuant to Section 

19(b)(2)(A)(ii)(I) of the Act 5 and for the 

reasons stated above, the Commission 

designates March 10, 2015, as the date 

by which the Commission should either 

approve or disapprove, or institute 

proceedings to determine whether to 

disapprove, the proposed rule change 

(File No. SR–ISE–2014–24). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–01645 Filed 1–28–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74129; File No. SR–BX– 

2014–049] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Order 

Approving Proposed Rule Change 

Relating to Directed Market Makers 

January 23, 2015. 

I. Introduction 

On November 25, 2014, NASDAQ 

OMX BX, Inc. (‘‘BX’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘Commission’’) 

a proposed rule change pursuant to 

Section 19(b)(1) of the Securities 

Exchange Act of 1934 (‘‘Act’’),1 and 

Rule 19b–4 thereunder,2 to establish a 

directed order process for orders 

submitted to the Exchange. The 

proposed rule change was published in 

the Federal Register on December 12, 

2014.3 The Commission received one 

comment letter on the proposal.4 This 

order approves the proposed rule 

change. 

II. Description of the Proposed Rule 

Change 

The Exchange proposes to establish a 

program that will permit BX Market 

Makers to act as Directed Market Makers 

(‘‘DMMs’’) in their appointed options 

classes, provided the BX Market Maker 

meets certain obligations and quoting 

requirements as described in more 

detail below.5 As proposed, DMMs will 

be permitted to receive ‘‘Directed 

Orders,’’ which will be defined as 

orders to buy or sell which have been 

directed (pursuant to the Exchange’s 

instructions on how to direct an order) 

to a particular market maker (the DMM 

with respect to that Directed Order).6

Limit Orders, Minimum Quantity 

Orders, Market Orders, Price Improving 

Orders, All-or-None Orders, Post-Only 

Orders, Immediate or Cancel, Good-tillCancelled Day or WAIT orders will be 

eligible to be designated as Directed 

Orders.7 Directed Orders will be 

available only in certain options. 

DMM Participation Entitlement 

BX proposes to permit a DMM to 

receive up to a 40% participation 

entitlement if a Directed Order is 

directed to that DMM when the 

Exchange’s disseminated price is the 

NBBO at the time of receipt of the 

Directed Order, and the DMM is quoting 

at or improving the Exchange’s 

disseminated price.8 If the DMM 

participation entitlement is not awarded 

at the time of receipt of the Directed 

Order, the DMM participation 

entitlement will not apply to the 

Directed Order and the Directed Order 

will be handled as though it were not a 

Directed Order.9

BX also proposes to require that 

DMMs provide continuous two-sided 

quotations throughout the trading day in 

all options issues in which the DMM is 

assigned for 90% of the time the 

Exchange is open for trading in each 

issue.10 Such quotations will be 

required to meet the legal quote width 

requirements of BX Rules Chapter VII, 

Section 6. These obligations will be 

applied collectively to all series in all of 

the issues, rather than on an issue-byissue basis once the market maker has 

indicated to the Exchange that the 

market maker will be receiving Directed 

Orders.11 However, these obligations 

will not apply to DMMs with respect to 

Quarterly Options Series, adjusted 

option series, or any series with a time 

to expiration of nine months or 

greater.12 Nevertheless, a DMM will 

remain eligible to receive a participation 

entitlement in such series if it elects to 

quote in such series and otherwise 

satisfies the requirements of BX Chapter 

VI, Section 10.13

DMM Price/Time and Size Pro-Rata 

Participation Entitlement 

If the Price/Time algorithm applies for 

the option and a Directed Order is sent 

to a DMM, BX proposes that the DMM 

will receive, the greater of: (1) After 

Public Customer orders are executed, 

the contracts the DMM would have 

received if the allocation was based on 

time priority; 14 (2) a DMM participation 

entitlement of 40% of the remaining 

interest after Public Customer orders are 

executed;15 or (3) the Lead Market 

Maker (‘‘LMM’’) participation 

entitlement, if the DMM is also the 

LMM.16

If the Size Pro-Rata algorithm applies 

for the option and a Directed Order is 

sent to a DMM, BX proposes that the 

DMM will receive the greater of: (1) 

After Public Customer orders are 

executed, the DMM’s Size Pro-Rata 

share; (2) a DMM participation 

entitlement of 40% of the remaining 

mstockstill on DSK4VPTVN1PROD with NOTICES