Federal Register / Vol. 80, No. 65 / Monday, April 6, 2015 / Notices 18473 

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

2 17 CFR 240.19b–4. 

3See Mary Jo White, Chair, Commission, Speech 

at the Sandler O’Neill & Partners, L.P. Global 

Exchange and Brokerage Conference (June 5, 2014), 

available at http://www.sec.gov/News/Speech/

Detail/Speech/1370542004312. 

and, in the case of issuers that are 

mutual funds, providing to each 

investor who consents to householding 

an annual explanation of the right to 

revoke consent to the delivery of a 

single prospectus to multiple investors 

sharing an address. The purpose of the 

notice and annual explanation 

requirements of the rule is to ensure that 

investors who wish to receive 

individual copies of prospectuses are 

able to do so. 

Although rule 154 is not limited to 

mutual funds, the Commission believes 

that it is used mainly by mutual funds 

and by broker-dealers that deliver 

prospectuses for mutual funds. The 

Commission is unable to estimate the 

number of issuers other than mutual 

funds that rely on the rule. 

The Commission estimates that, as of 

March 2015, there are approximately 

1,640 mutual funds, approximately 410 

of which engage in direct marketing and 

therefore deliver their own 

prospectuses. Of the approximately 410 

mutual funds that engage in direct 

marketing, the Commission estimates 

that approximately half of these mutual 

funds (205) (i) do not send the implied 

consent notice requirement because 

they obtain affirmative written consent 

to household prospectuses in the fund’s 

account opening documentation; or (ii) 

do not take advantage of the 

householding provision because of 

electronic delivery options which lessen 

the economic and operational benefits 

of rule 154 when compared with the 

costs of compliance. Therefore, the 

Commission estimates that each directmarketed fund will spend an average of 

20 hours per year complying with the 

notice requirement of the rule, for a total 

of 4,100 hours. Of the 410 mutual funds 

that engage in direct marketing, the 

Commission estimates that 

approximately seventy-five percent 

(308) of these funds will each spend 1 

hour complying with the annual 

explanation of the right to revoke 

requirement of the rule, for a total of 308 

hours. The Commission estimates that 

there are approximately 200 brokerdealers that carry customer accounts 

and, therefore, may be required to 

deliver mutual fund prospectuses. The 

Commission estimates that each affected 

broker-dealer will spend, on average, 

approximately 20 hours complying with 

the notice requirement of the rule, for a 

total of 4,000 hours. Each broker-dealer 

will also spend 1 hour complying with 

the annual explanation of the right to 

revoke requirement, for a total of 200 

hours. Therefore, the total number of 

respondents for rule 154 is 507 (307 

mutual funds plus 200 broker-dealers), 

and the estimated total hour burden is 

approximately 8,608 hours (4,408 hours 

for mutual funds plus 4,200 hours for 

broker-dealers). 

The estimate of average burden hours 

is made solely for the purposes of the 

Paperwork Reduction Act, and is not 

derived from a comprehensive or even 

a representative survey or study of the 

costs of Commission rules and forms. 

Written comments are invited on: (a) 

Whether the collections of information 

are necessary for the proper 

performance of the functions of the 

Commission, including whether the 

information has practical utility; (b) the 

accuracy of the Commission’s estimate 

of the burden of the collections of 

information; (c) ways to enhance the 

quality, utility, and clarity of the 

information collected; and (d) ways to 

minimize the burden of the collections 

of information on respondents, 

including through the use of automated 

collection techniques or other forms of 

information technology. Consideration 

will be given to comments and 

suggestions submitted in writing within 

60 days of this publication. 

Please direct your written comments 

to Pamela Dyson, Director/Chief 

Information Officer, Securities and 

Exchange Commission, C/O Remi 

Pavlik-Simon, 100 F Street NE., 

Washington, DC 20549; or send an email 

to: PRA_Mailbox@sec.gov. 

Dated: March 31, 2015. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–07752 Filed 4–3–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74617; File No. SR–BX– 

2015–015] 

Self-Regulatory Organizations; 

NASDAQ OMX BX Inc.; Notice of 

Proposed Rule Change To Amend and 

Restate Certain Rules That Govern the 

NASDAQ OMX BX Equities Market 

March 31, 2015. 

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

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 2 thereunder, 

notice is hereby given that on March 20, 

2015, NASDAQ OMX BX, Inc. 

(‘‘Exchange’’ or ‘‘BX’’) filed with the 

Securities and Exchange Commission 

(the ‘‘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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

BX proposes to amend and restate 

certain BX rules that govern the 

NASDAQ OMX BX Equities Market in 

order to provide a clearer and more 

detailed description of certain aspects of 

its functionality. The text of the 

proposed rule change is available at 

nasdaq.cchwallstreet.com, at the 

Exchange’s principal office, 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, BX 

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. BX 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 certain Exchange rules that 

govern the NASDAQ OMX BX Equities 

Market in order to provide a clearer and 

more detailed description of certain 

aspects of its functionality. The 

proposed rule change is responsive to 

the request of Commission Chair White 

that each self-regulatory organization 

(‘‘SRO’’) conduct a comprehensive 

review of each order type offered to 

members, and how it operates in 

practice.3 The Exchange believes that its 

current rules and other public 

disclosures provide a comprehensive 

description of the operation of the 

NASDAQ OMX BX Equities Market, so 

that members and the investing public 

have an accurate understanding of its 

market structure. Nevertheless, the 

Exchange has concluded that a 

restatement of certain rules will further 

enhance their clarity. In particular, the 

Exchange believes that providing 


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18474 Federal Register / Vol. 80, No. 65 / Monday, April 6, 2015 / Notices 

4Other definitions in current Rule 4751 are being 

superseded by descriptions of Order Types and 

Order Attributes in Rules 4702 and 4703, or are 

being eliminated because they are no longer used. 

In addition, Rule 4755 (Order Entry Parameters) is 

being deleted because the material contained 

therein is superseded by proposed Rules 4702 and 

4703. 

5 17 CFR 242.600. 

6The modified definitions of ‘‘Quotes’’ and 

‘‘Orders’’ are described below. The term 

‘‘Participant’’, which is being amended only to add 

a clarifying reference to Regulation NMS and to 

Market Makers, means an entity that fulfills the 

obligations contained in Rule 4611 regarding 

participation in the System, and includes Equities 

ECNs, Market Makers, and Order Entry Firms. 

7As provided in proposed Rule 4703, a Displayed 

Order is an Order with a Display Order Attribute 

that allows its price and size to be disseminated to 

Participants. 

8The definition of a ‘‘System Security,’’ which is 

not being modified, includes ‘‘any NMS stock, as 

defined in SEC Rule 600 except securities 

specifically excluded from trading via a list of 

excluded securities posted on 

www.nasdaqtrader.com.’’ 

9The proposed definition further notes that in 

certain contexts, times cited in the Exchange Rules 

may be approximate. 

additional examples of order type 

operation in the rule text will promote 

greater understanding of the Exchange’s 

market structure. In addition, the 

Exchange notes that certain 

functionality added to its market in past 

years has been described as an ‘‘order 

type’’ but would be more precisely 

described as an attribute that may be 

added to a particular order. 

Accordingly, the restated rules will 

distinguish between ‘‘Order Types’’ and 

‘‘Order Attributes,’’ while providing a 

full description of the Order Attributes 

that may be attached to particular Order 

Types. Except where specifically stated 

otherwise, all proposed rules are 

restatements of existing rules and 

therefore do not reflect substantive 

changes in the rule text or in the 

operation of the Exchange. 

General Framework for Rule 

Restatement 

At present, most of the rules 

governing Order Types and Order 

Attributes are found in Rule 4751 

(Definitions). The Exchange is 

proposing to restate Rule 4751 as Rule 

4701, which is currently not in use, 

with certain amended definitions being 

adopted therein. The Exchange is also 

proposing to remove definitions 

pertaining to Order Types and Order 

Attributes and adopt them as separate 

new Rules 4702 (Order Types) and 4703 

(Order Attributes). While the Exchange 

is also proposing certain conforming 

changes to other rules, in subsequent 

proposed rule changes the Exchange 

plans to restate the remainder of the 

rules numbered 4752 through 4780 so 

that they appear sequentially following 

Rule 4703. 

Definitions 

New Rule 4701 will adopt revised 

definitions applicable to the Rule 4000 

Series of the Exchange rules: 4

• The terms ‘‘Best Bid’’, ‘‘Best Offer’’, 

‘‘National Best Bid and National Best 

Offer’’, ‘‘Protected Bid’’, ‘‘Protected 

Offer’’, ‘‘Protected Quotation’’, and 

‘‘Intermarket Sweep Order’’ shall have 

the meanings assigned to them under 

Rule 600 under SEC Regulation NMS; 5

provided, however, that the terms ‘‘Best 

Bid’’, ‘‘Best Offer’’, ‘‘Protected Bid’’, 

‘‘Protected Offer’’, and ‘‘Protected 

Quotation’’ shall, unless otherwise 

stated, refer to the bid, offer, or 

quotation of a market center other than 

the Exchange. The term ‘‘NBBO’’ shall 

mean the ‘‘National Best Bid and 

National Best Offer’’. 

• The term ‘‘NASDAQ OMX BX 

Equities Market,’’ or ‘‘System’’, which 

defines the components of the securities 

execution and trade reporting system 

owned and operated by the Exchange, is 

being modified to state that the System 

includes a montage for ‘‘Quotes’’ and 

‘‘Orders’’, referred to as the ‘‘Exchange 

Book’’, that collects and ranks all 

Quotes and Orders submitted by 

‘‘Participants’’.6 The definition is 

further being modified to make it clear 

that data feeds made available with 

respect to the System disseminate 

depth-of-book data regarding Quotes 

and ‘‘Displayed’’ Orders 7 and also such 

additional information about Quotes, 

Orders, and transactions within the 

System as shall be reflected in the 

Exchange Rules. 

• The term ‘‘Quote’’ is being modified 

to make it clear that a Quote is an Order 

with Attribution (as defined in Rule 

4703) entered by a Market Maker or 

Equities ECN for display (price and size) 

next to the Participant’s MPID in the 

Exchange Book. Accordingly, all Quotes 

are also Orders. 

• The definition of the term ‘‘Order’’ 

is being amended to mean an 

instruction to trade a specified number 

of shares in a specified System 

Security 8 submitted to the System by a 

Participant. An ‘‘Order Type’’ is a 

standardized set of instructions 

associated with an Order that define 

how it will behave with respect to 

pricing, execution, and/or posting to the 

Exchange Book when submitted to the 

System. An ‘‘Order Attribute’’ is a 

further set of variable instructions that 

may be associated with an Order to 

further define how it will behave with 

respect to pricing, execution, and/or 

posting to the Exchange Book when 

submitted to the System. The available 

Order Types and Order Attributes, and 

the Order Attributes that may be 

associated with particular Order Types, 

are described in Rules 4702 and 4703. 

• The term ‘‘ET’’ means Eastern 

Standard Time or Eastern Daylight 

Time, as applicable. 

• The term ‘‘Market Hours’’ is being 

defined to mean the period of time 

beginning at 9:30 a.m. ET and ending at 

4 p.m. ET (or such earlier time as may 

be designated by the Exchange on a day 

when the Exchange closes early). The 

term ‘‘System Hours’’ means the period 

of time beginning at 7 a.m. ET and 

ending at 7 p.m. ET (or such earlier time 

as may be designated by the Exchange 

on a day when the Exchange closes 

early). The term ‘‘Pre-Market Hours’’ 

means the period of time beginning at 

7 a.m. ET and ending immediately prior 

to the commencement of Market Hours. 

The term ‘‘Post-Market Hours’’ means 

the period of time beginning 

immediately after the end of Market 

Hours and ending at 7 p.m. ET.9

• The term ‘‘marketable’’ with respect 

to an Order to buy (sell) means that, at 

the time it is entered into the System, 

the Order is priced at the current Best 

Offer or higher (at the current Best Bid 

or lower). 

• The term ‘‘market participant 

identifier’’ or ‘‘MPID’’ means a unique 

four-letter mnemonic assigned to each 

Participant in the System. A Participant 

may have one or more than one MPID. 

• The term ‘‘minimum price 

increment’’ means $0.01 in the case of 

a System Security priced at $1 or more 

per share, and $0.0001 in the case of a 

System Security priced at less than $1 

per share. 

• The definition of the term ‘‘System 

Book Feed’’, which means a data feed 

for System Securities, is being amended 

to clarify that it is the data feed 

generally known as the BX TotalView 

ITCH feed. 

Order Types 

Proposed Rule 4702 provides that 

Participants may express their trading 

interest in the NASDAQ OMX BX 

Equities Market by entering Orders. The 

NASDAQ OMX BX Equities Market 

offers a range of Order Types that 

behave in the manner specified for each 

particular Order Type. Each Order Type 

may be assigned certain Order 

Attributes that further define its 

behavior. All Order Types and Order 

Attributes operate in a manner that is 

reasonably designed to comply with the 

requirements of Rules 610 and 611 

under Regulation NMS. Specifically, 

Orders are reasonably designed to 


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Federal Register / Vol. 80, No. 65 / Monday, April 6, 2015 / Notices 18475 

10 It should be noted that Rule 4613(e), the 

Exchange’s rule with respect to locked and crossed 

markets, as adopted pursuant to Rule 610(d) under 

Regulation NMS and approved by the Commission, 

applies only during Market Hours (approved in 

Securities Exchange Act Release No. 59154 

(December 23, 2008), 73 FR 80468 (December 31, 

2008) (SR–BSE–2008–48)). Note also that Rule 600 

under Regulation NMS defines a ‘‘trade-through’’ as 

‘‘the purchase or sale of an NMS stock during 

regular trading hours, either as principal or agent, 

at a price that is lower than a protected bid or 

higher than a protected offer.’’ ‘‘Regular trading 

hours’’ are defined, in pertinent part, as ‘‘the time 

between 9:30 a.m. and 4:00 p.m. Eastern Time.’’ 17 

CFR 242.600. 

11Under Rule 4757, the order in which Orders on 

the Exchange Book are presented for execution 

against incoming Orders is determined first by price 

(with better priced Orders presented first). As 

among equally priced Orders, priority is determined 

by Display characteristics and timestamps. Thus, 

Displayed Orders at a given price are processed first 

based on their timestamps, with earlier Orders 

processed first. Finally, Orders with a Non-Display 

Attribute (including the Non-Displayed portion of 

an Order with Reserve Size) are processed based on 

their respective timestamps. The Exchange is 

amending Rule 4757 to make wording changes to 

improve the clarity of the rule. 

12These Order Types are described below and in 

proposed Rule 4702. 

13The Routing Order Attribute is described 

below, in proposed Rule 4703, and in current Rule 

4758. 

14Available Times-in-Force are described below 

and in proposed Rule 4703. 

15Accordingly, there are no circumstances in 

which an Order that was previously entered but not 

displayed on the Exchange Book would be 

displayed without also receiving a new timestamp, 

and thus no possibility for a Participant to ‘‘jump 

the queue’’ with respect to other Orders. 

The Exchange is amending Rule 4756 to make it 

clear that the redesignation of a sell Order as a long 

sale, short sale, or exempt short sale can be done 

only with respect to Orders entered through OUCH 

or FLITE; Orders entered through RASH or FIX 

would have to be cancelled and reentered to change 

their designation. Similarly, Rule 4756 is being 

amended to clarify that modification of an Order by 

the Participant to decrease its size is not possible 

with respect to a Pegged Order (including a 

Discretionary Order that is Pegged). Such an Order 

would have to be cancelled and reentered by the 

Participant to reduce its size. 

16The Pegging Order Attribute adjusts the price 

of the Order based on changes in the NBBO and is 

described below and in proposed Rule 4703. 

17The Reserve Size Order Attribute is described 

below and in Rule 4703. 

18This is the case because when Orders are 

repriced, multiple instructions to reprice are sent 

simultaneously through multiple System gateways 

in order to modify the Orders as quickly as possible 

and thereby minimize the possibility that they will 

be disadvantaged vis-a`-vis newly entered Orders. 

19 Governing handling of Price to Comply and 

Post-Only Orders when formerly unavailable price 

levels become available. 

prevent trade-throughs of Protected 

Quotations to the extent required by 

Rule 611 under Regulation NMS, and to 

prevent the display of quotations that 

lock or cross Protected Quotations to the 

extent required by Rule 610 under 

Regulation NMS.10 Each Order must 

designate whether it is to effect a buy, 

a long sale, a short sale, or an exempt 

short sale. 

Proposed Rule 4702 further provides 

that the Exchange maintains several 

communications protocols for 

Participants to use in entering Orders 

and sending other messages to the 

System: 

• OUCH is an Exchange proprietary 

protocol. 

• RASH is an Exchange proprietary 

protocol. 

• FLITE is an Exchange proprietary 

protocol. 

• FIX is a non-proprietary protocol. 

Except where otherwise stated, all 

protocols are available for all Order 

Types and Order Attributes. 

Upon entry, an Order is processed to 

determine whether it may execute 

against any contra-side Orders on the 

Exchange Book in accordance with the 

parameters applicable to the Order Type 

and Order Attributes selected by the 

Participant and in accordance with the 

priority for Orders on the Exchange 

Book provided in Rule 4757.11 Thus, for 

example, a ‘‘Price to Comply Order’’ 

would be evaluated for potential 

execution in accordance with different 

criteria than a ‘‘Post-Only Order.’’ 12 In 

addition, the Order may have its price 

adjusted in accordance with applicable 

parameters and may be routed to other 

market centers for potential execution if 

designated as ‘‘Routable.’’ 13 The Order 

may then be posted to the Exchange 

Book if consistent with the parameters 

of the Order Type and Order Attributes 

selected by the Participant. For 

example, an Order with a ‘‘Time-inForce’’ of ‘‘Immediate or Cancel’’ would 

not be posted.14

Thereafter, as detailed in proposed 

Rules 4702 and 4703, and current Rule 

4758 (Order Routing), there are 

numerous circumstances in which the 

Order on the Exchange Book may be 

modified and receive a new timestamp. 

The sole instances in which the 

modification of an Order on the 

Exchange Book will not result in a new 

timestamp are: (i) A decrease in the size 

of the Order due to execution or 

modification by the Participant or by the 

System, and (ii) a redesignation of a sell 

Order as a long sale, a short sale, or an 

exempt short sale.15 Whenever an Order 

receives a new timestamp for any 

reason, it is processed by the System as 

a new Order with respect to potential 

execution against Orders on the 

Exchange Book, price adjustment, 

routing, reposting to the Exchange Book, 

and subsequent execution against 

incoming Orders, except where 

otherwise stated. Thus, for example, if 

an Order with a ‘‘Pegging’’ Order 

Attribute had its price changed due to 

a change in the NBBO,16 it would be 

processed by the System as a new Order 

with respect to potential execution, 

price adjustment, routing, reposting to 

the Exchange Book, and subsequent 

execution against incoming Orders. An 

exception to the general rule is noted in 

Rule 4703(h) with respect to Orders 

with ‘‘Reserve Size’’ 17 that have a 

Routing Order Attribute; such Orders 

are not routed if reentered due to a 

replenishment of the Order’s Displayed 

Size. 

In addition, the proposed rule notes 

that all Orders are also subject to 

cancellation and/or repricing and 

reentry onto the Exchange Book in the 

circumstances described in Rule 

4120(a)(13) (providing for compliance 

with Plan to Address Extraordinary 

Market Volatility) and Rule 4763 

(providing for compliance with 

Regulation SHO). In all circumstances 

where an Order is repriced pursuant to 

those provisions, it is processed by the 

System as a new Order with respect to 

potential execution against Orders on 

the Exchange Book, price adjustment, 

routing, reposting to the Exchange Book, 

and subsequent execution against 

incoming Orders. If multiple Orders at 

a given price are repriced, the Order in 

which they are reentered is random, 

based on the respective processing time 

for each such Order; 18 provided, 

however, that in the case of Price to 

Comply Orders and Post-Only Orders 

that have their prices adjusted upon 

entry because they lock a Protected 

Quotation but that are subsequently 

displayed at their original entered limit 

price as provided in Rules 4702(b)(1)(B) 

and (4)(B),19 they are processed in 

accordance with the time priority under 

which they were previously ranked on 

the Exchange Book. If an Order is 

repriced and/or reentered 10,000 times 

for any reason, the Order will be 

cancelled. This restriction is designed to 

conserve System resources by limiting 

the persistence of Orders that update 

repeatedly without any reasonable 

prospect of execution. 

Proposed Rule 4702 further describes 

the behavior of each Order Type. Except 

where otherwise stated, each Order 

Type is available to all Participants, 

although certain Order Types and Order 

Attributes may require the use of a 

specific protocol. As a result, a 

Participant would be required to use 

that protocol in order to use Order 

Types and Order Attributes available 

through it. Moreover, a small number of 

Order Types and Order Attributes are 

available only to registered Market 

Makers in the security for which they 

are registered. 


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20See Rule 4703(f) and 4758. 

21Unless the incoming Order was an Order Type 

that was not immediately executable, in which case 

the incoming Order would behave in the manner 

specified for that Order Type. For example, in some 

circumstances discussed below, a Post-Only Order 

would be repriced and posted rather than 

executing. 

22See supra n. 10. 

23This means that, in general, the price of the 

Price to Comply Order will move toward, but not 

away from, its original entered limit price. Because 

a Price to Comply Order is removed from the 

Exchange Book while it is being repriced, however, 

it is possible that the Order’s price will move away 

from its original entered limit price in the case of 

a ‘‘race condition’’ where the NBBO changes again 

while the Order is not on the Exchange Book. 

24Thus, the price of the Order will not move 

beyond its limit price. 

Price To Comply Order 

The Price to Comply Order is an 

Order Type designed to comply with 

Rule 610(d) under Regulation NMS by 

having its price and display 

characteristics adjusted to avoid the 

display of quotations that lock or cross 

any Protected Quotation in a System 

Security during Market Hours. The Price 

to Comply Order is also designed to 

provide potential price improvement. 

The Exchange does not have a ‘‘plain 

vanilla’’ limit order that attempts to 

execute at its limit price and is then 

posted at its price or rejected if it cannot 

be posted; rather, the Price to Comply 

Order, with its price and display 

adjustment features, is one of the 

primary Order Types used by 

Participants to access and display 

liquidity in the System. The price and 

display adjustment features of the Order 

Type enhance efficiency and investor 

protection by offering an Order Type 

that first attempts to access available 

liquidity and then to post the remainder 

of the Order at prices that are designed 

to maximize their opportunities for 

execution. 

When a Price to Comply Order is 

entered, the Price to Comply Order will 

be executed against previously posted 

Orders on the Exchange Book that are 

priced equal to or better than the price 

of the Price to Comply Order, up to the 

full amount of such previously posted 

Orders, unless such executions would 

trade through a Protected Quotation. 

Any portion of the Order that cannot be 

executed in this manner will be posted 

on the Exchange Book (and/or routed if 

it has been designated as Routable).20

During Market Hours, the price at 

which a Price to Comply Order is posted 

is determined in the following manner. 

If the entered limit price of the Price to 

Comply Order would lock or cross a 

Protected Quotation and the Price to 

Comply Order could not execute against 

an Order on the Exchange Book at a 

price equal to or better than the price of 

the Protected Quotation, the Price to 

Comply Order will be displayed on the 

Exchange Book at a price one minimum 

price increment lower than the current 

Best Offer (for a Price to Comply Order 

to buy) or higher than the current Best 

Bid (for a Price to Comply Order to sell) 

but will also be ranked on the Exchange 

Book with a non-displayed price equal 

to the current Best Offer (for a Price to 

Comply Order to buy) or to the current 

Best Bid (for a Price to Comply Order to 

sell). The posted Order will then be 

available for execution at its nondisplayed price, thus providing 

opportunities for price improvement to 

incoming Orders. 

For example, if a Price to Comply 

Order to buy at $11 would lock a 

Protected Offer of $11, the Price to 

Comply Order will be ranked at a nondisplayed price of $11 but will be 

displayed at $10.99. An incoming Order 

to sell at a price of $11 or lower would 

execute against the Price to Comply 

Order at $11.21

During Pre-Market Hours and PostMarket Hours, a Price to Comply Order 

will be ranked and displayed at its 

entered limit price without adjustment. 

This is the case because the Exchange’s 

rule with respect to locked and crossed 

markets, as adopted pursuant to Rule 

610(d) under Regulation NMS and 

approved by the Commission, applies 

only during Market Hours.22

Depending on the protocol used to 

enter a Price to Comply Order, 

Participants have different options with 

respect to adjustment of the Price to 

Comply Order following its initial entry 

and posting to the Exchange Book. 

Specifically, if a Price to Comply Order 

is entered through RASH or FIX, during 

Market Hours the price of the Price to 

Comply Order will be adjusted in the 

following manner after initial entry and 

posting to the Exchange Book (unless 

the Order is assigned a Routing Order 

Attribute that would cause it to be 

routed to another market center rather 

than remaining on the Exchange Book): 

• If the entered limit price of the 

Price to Comply Order locked or crossed 

a Protected Quotation and the NBBO 

changes, the displayed and nondisplayed price of the Price to Comply 

Order will be adjusted repeatedly in 

accordance with changes to the NBBO; 

provided, however, that if the quotation 

of another market center moves in a 

manner that would lock or cross the 

displayed price of a Price to Comply 

Order, the prices of the Price to Comply 

Order will not be adjusted. For example, 

if a Price to Comply Order to buy at 

$11.02 would cross a Protected Offer of 

$11, the Order will be ranked at a nondisplayed price of $11 but will be 

displayed at $10.99. If the Best Offer 

then moves to $11.01, the displayed 

price will be changed to $11 and the 

Order will be ranked at a non-displayed 

price of $11.01. However, if another 

market center then displays an offer of 

$11 (thereby locking the previously 

displayed price of the Price to Comply 

Order, notwithstanding Rule 610(d) 

under Regulation NMS), the price of the 

Price to Comply Order will not be 

changed.23 The Order may be repriced 

repeatedly until such time as the Price 

to Comply Order is able to be ranked 

and displayed at its original entered 

limit price ($11.02 in the example). The 

Price to Comply Order receives a new 

timestamp each time its price is 

changed. 

• If the original entered limit price of 

the Price to Comply Order would no 

longer lock or cross a Protected 

Quotation, the Price to Comply Order 

will be ranked and displayed at that 

price and will receive a new timestamp, 

and will not thereafter be adjusted 

under this provision.24

If a Price to Comply Order is entered 

through OUCH or FLITE, during Market 

Hours the price of the Price to Comply 

Order may be adjusted in the following 

manner after initial entry and posting to 

the Exchange Book: 

• If the entered limit price of the 

Price to Comply Order crossed a 

Protected Quotation and the NBBO 

changes so that the Price to Comply 

Order could be displayed at a price at 

or closer to its entered limit price 

without locking or crossing a Protected 

Quotation, the Price to Comply Order 

may either remain on the Exchange 

Book unchanged or may be cancelled 

back to the Participant, depending on its 

choice. For example, if a Price to 

Comply Order to buy at $11.02 would 

cross a Protected Offer of $11, the Order 

will be ranked at a non-displayed price 

of $11 but will be displayed at $10.99. 

If the Best Offer changes to $11.01, the 

Order will not be repriced, but rather 

will either remain with a displayed 

price of $10.99 but ranked at a nondisplayed price of $11 or be cancelled 

back to the Participant, depending on its 

choice. A Participant’s choice with 

regard to maintaining the Price to 

Comply Order or cancelling it is set in 

advance for each port through which the 

Participant enters Orders. 

• If the entered limit price of the 

Price to Comply Order locked a 

Protected Quotation, the price of the 

Price to Comply Order will be adjusted 

after initial entry only as follows. If the 

entered limit price would no longer lock 


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25Thus, the price of the Order will not move 

beyond its limit price. 

26As a result, it is possible that a new Order that 

is entered while previously booked Orders are being 

repriced may be placed on the Exchange Book 

ahead of them. 

27As discussed below, IOC is a Time-in-Force 

under which an Order is evaluated to determine if 

it is marketable, with unexecuted shares cancelled. 

A Price to Comply Order entered with a Time-inForce of IOC would be accepted but would be 

processed as a Non-Displayed Order with a Timein-Force of IOC. 

28Primary Pegging, Market Pegging, and 

Discretion are discussed below and in proposed 

Rule 4703. 

29As described below and in proposed Rule 4703, 

Attribution is an Order Attribute that allows for 

display of the price and size of an Order next to 

a Market Maker’s MPID. In the current rule, the 

Price to Display Order is referred to as the ‘‘Price 

to Comply Post Order.’’ The fact that this Order 

Type is Attributable and available only to registered 

Market Makers reflects a substantive clarification to 

the language of the existing rule. 

30See Rules 4703(f) and 4758. 

31These adjustments reflect a substantive 

clarification to the language of the existing rule. 

32This means that, in general, the price of the 

Price to Display Order will move toward, but not 

away from, its original entered limit price. Because 

a Price to Display Order is removed from the 

Exchange Book while it is being repriced, however, 

it is possible that the Order’s price will move away 

Continued 

a Protected Quotation, the Price to 

Comply Order may either remain on the 

Exchange Book unchanged, may be 

cancelled back to the Participant, or 

may be ranked and displayed at its 

original entered limit price, depending 

on the Participant’s choice. For 

example, if a Price to Comply Order to 

buy at $11 would lock a Protected Offer 

of $11, the Price to Comply Order will 

be ranked at a non-displayed price of 

$11 but will be displayed at $10.99. If 

the Best Offer changes to $11.01, the 

Price to Comply Order may either 

remain with a displayed price of $10.99 

but ranked at a non-displayed price of 

$11, be cancelled back to the 

Participant, or be ranked and displayed 

at $11, depending on the Participant’s 

choice. A Participant’s choice with 

regard to maintaining the Price to 

Comply Order, cancelling it, or allowing 

it to be displayed is set in advance for 

each port through which the Participant 

enters Orders. If the Price to Comply 

Order is ranked and displayed at its 

original entered limit price, it will 

receive a new timestamp, and will not 

thereafter be adjusted under this 

provision.25

With regard to the foregoing options, 

it is important to emphasize that the 

Price to Comply Order receives a new 

timestamp whenever its price is 

changed, and also receives a new 

timestamp if the Price to Comply Order 

would no longer lock a Protected 

Quotation and is therefore displayed at 

its original entered limit price. Thus, 

there are no circumstances under which 

a Price to Comply Order that originally 

locked or crossed a Protected Quotation 

would ‘‘jump the queue’’ and be 

displayed at its original entered limit 

price while retaining its original time 

priority. In fact, as discussed throughout 

this filing, the Exchange does not offer 

any functionality that enables a 

Participant to ‘‘jump the queue’’ by 

displaying a previously entered nondisplayed Orders without also receiving 

a new timestamp.26

The following Order Attributes may 

be assigned to a Price to Comply Order. 

The effect of each Order Attribute is 

discussed in detail below with respect 

to proposed new Rule 4703. 

• Price. As described above, the price 

of the Order may be adjusted to avoid 

locking or crossing a Protected 

Quotation, and may include a displayed 

price as well as a non-displayed price. 

• Size. 

• Reserve Size (available through 

RASH and FIX only). 

• A Time-in-Force other than 

‘‘Immediate or Cancel’’ (‘‘IOC’’).27

• Designation as an ‘‘ISO’’. In 

accordance with Regulation NMS, a 

Price to Comply Order designated as an 

ISO would be processed at its entered 

limit price, since such a designation 

reflects a representation by the 

Participant that it has simultaneously 

routed one or more additional limit 

orders, as necessary, to execute against 

the full displayed size of any Protected 

Quotations that the Price to Comply 

Order would lock or cross. 

• Routing (available through RASH 

and FIX only). 

• ‘‘Primary Pegging’’ and ‘‘Market 

Pegging’’ (available through RASH and 

FIX only). 

• ‘‘Discretion’’ (available through 

RASH and FIX only).28

• Display. A Price to Comply Order is 

always displayed, although, as provided 

above, it may also have a non-displayed 

price and/or Reserve Size. 

Price to Display Order 

A ‘‘Price to Display Order’’ is an 

Order Type designed to comply with 

Rule 610(d) under Regulation NMS by 

avoiding the display of quotations that 

lock or cross any Protected Quotation in 

a System Security during Market Hours. 

Price to Display Orders are available 

solely to Participants that are Market 

Makers and are always Attributable.29

Like a Price to Comply Order, a Price to 

Display Order is another form of priced 

Order that first accesses available 

liquidity and then posts remaining 

shares, with price adjustment features 

similar to those of the Price to Comply 

Order that provide a means to post 

displayed Orders at prices that are 

designed to maximize their 

opportunities for execution. 

When a Price to Display Order is 

entered, if its entered limit price would 

lock or cross a Protected Quotation, the 

Price to Display Order will be repriced 

to one minimum price increment lower 

than the current Best Offer (for a Price 

to Display Order to buy) or higher than 

the current Best Bid (for a Price to 

Display Order to sell). For example, if a 

Price to Display Order to buy at $11 

would cross a Protected Offer of $10.99, 

the Price to Display Order will be 

repriced to $10.98. The Price to Display 

Order (whether repriced or not repriced) 

will then be executed against previously 

posted Orders on the Exchange Book 

that are priced equal to or better than 

the adjusted price of the Price to Display 

Order, up to the full amount of such 

previously posted Orders, unless such 

executions would trade through a 

Protected Quotation. Any portion of the 

Order that cannot be executed in this 

manner will be posted on the Exchange 

Book (and/or routed if it has been 

designated as Routable).30

During Market Hours, the price at 

which a Price to Display Order is 

displayed and ranked on the Exchange 

Book will be its entered limit price if the 

Price to Display Order was not repriced 

upon entry, or the adjusted price if the 

Price to Comply Order was repriced 

upon entry, such that the price will not 

lock or cross a Protected Quotation. 

During Pre-Market Hours and PostMarket Hours, a Price to Display Order 

will be displayed and ranked at its 

entered limit price without adjustment. 

As is the case with a Price to Comply 

Order, a Price to Display Order may be 

adjusted after initial entry.31

Specifically, if a Price to Display Order 

is entered through RASH or FIX, during 

Market Hours the Price to Display Order 

may be adjusted in the following 

manner after initial entry and posting to 

the Exchange Book (unless the Order is 

assigned a Routing Order Attribute that 

would cause it to be routed to another 

market center rather than remaining on 

the Exchange Book): 

• If the entered limit price of the 

Price to Display Order locked or crossed 

a Protected Quotation and the NBBO 

changes, the price of the Order will be 

adjusted repeatedly in accordance with 

changes to the NBBO; provided, 

however, that if the quotation of another 

market center moves in a manner that 

would lock or cross the price of a Price 

to Display Order, the price of the Price 

to Display Order will not be adjusted.32


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from its original entered limit price in the case of 

a ‘‘race condition’’ where the NBBO changes again 

while the Order is not on the Exchange Book. 33Thus, the price of the Order will not move 

beyond its limit price. 

34A Price to Display Order entered with a Timein-Force of IOC would be processed as a NonDisplayed Order with a Time-in-Force of IOC. 

35The availability of routing for Price to Display 

Orders reflects a substantive clarification to the 

language of the existing rule. 

36Rule 611 requires exchanges to adopt rules that 

‘‘require . . . members reasonably to avoid . . . 

[d]isplaying quotations that lock or cross any 

protected quotations’’ (emphasis added). Similarly, 

under Rule 600, a Non-Displayed Order is not a 

Protected Quotation because it is not displayed. 

Accordingly, the definition of trade-through does 

not apply to a transaction at a price that is worse 

than the price of a Non-Displayed Order. Thus, in 

opting to use a Non-Displayed Order, a Participant 

must balance the benefits of not disclosing its 

trading intentions against the loss of trade-through 

protection. However, because a Non-Displayed 

Order may not itself trade-through a Protected 

Quotation, as described below, the System protects 

against such trade-throughs by repricing and/or 

cancelling Non-Displayed Orders that cross or are 

crossed by a Protected Quotation. 

37See Rules 4703(f) and 4758. 

38Repricing the crossing Non-Displayed Order 

helps ensure that the Non-Displayed Order will not 

trade-through the Protected Quotation. 

39These adjustments reflect a substantive 

clarification to the language of the existing rule. 

For example, if a Price to Display Order 

to buy at $11.02 would cross a Protected 

Offer of $11, the Order will be displayed 

and ranked at $10.99. If the Best Offer 

then moves to $11.01, the displayed/

ranked price will be changed to $11. 

However, if another market center then 

displays an offer of $11 (thereby locking 

the previously displayed price of the 

Price to Display Order, notwithstanding 

Rule 610(d) under Regulation NMS), the 

price of the Price to Display Order will 

not be changed. The Order may be 

repriced repeatedly until such time as 

the Price to Display Order is able to be 

displayed and ranked at its original 

entered limit price ($11.02 in the 

example). The Price to Display Order 

receives a new timestamp each time its 

price is changed. 

• If the original entered limit price of 

the Price to Display Order would no 

longer lock or cross a Protected 

Quotation, the Price to Display Order 

will be displayed and ranked at that 

price and will receive a new timestamp, 

and will not thereafter be adjusted 

under this provision.33

If a Price to Display Order is entered 

through OUCH or FLITE, during Market 

Hours the Price to Display Order may be 

adjusted in the following manner after 

initial entry and posting to the Exchange 

Book: 

• If the entered limit price of the 

Price to Display Order locked or crossed 

a Protected Quotation and the NBBO 

changes so that the Price to Display 

Order could be ranked and displayed at 

a price at or closer to its original entered 

limit price without locking or crossing 

a Protected Quotation, the Price to 

Display Order may either remain on the 

Exchange Book unchanged or may be 

cancelled back to the Participant, 

depending on the Participant’s choice. 

For example, if a Price to Display Order 

to buy at $11.02 would cross a Protected 

Offer of $11, the Order will be ranked 

and displayed at $10.99. If the Best 

Offer changes to $11.01, the Price to 

Display Order will not be repriced, but 

rather will either remain at its current 

price or be cancelled back to the 

Participant, depending on its choice. A 

Participant’s choice with regard to 

maintaining the Price to Display Order 

or cancelling it is set in advance for 

each port through which the Participant 

enters Orders. 

The following Order Attributes may 

be assigned to a Price to Display Order: 

• Price. As described above, the price 

of the Order may be adjusted to avoid 

locking or crossing a Protected 

Quotation. 

• Size. 

• Reserve Size (available through 

RASH and FIX only). 

• A Time-in-Force other than IOC.34

• Designation as an ISO. In 

accordance with Regulation NMS, a 

Price to Display Order designated as an 

ISO would be processed at its entered 

limit price, since such a designation 

reflects a representation by the 

Participant that it has simultaneously 

routed one or more additional limit 

orders, as necessary, to execute against 

the full displayed size of any Protected 

Quotations that the Price to Display 

Order would lock or cross. 

• Routing (available through RASH 

and FIX only).35

• Primary Pegging and Market 

Pegging (available through RASH and 

FIX only). 

• Discretion (available through RASH 

and FIX only). 

• Attribution. All Price to Display 

Orders are Attributable Orders. 

• Display. A Price to Display Order is 

always displayed (but may also have 

Reserve Size). 

Non-Displayed Order 

A ‘‘Non-Displayed Order’’ is an Order 

Type that is not displayed to other 

Participants, but nevertheless remains 

available for potential execution against 

incoming Orders until executed in full 

or cancelled. Thus, the Order Type 

provides a means by which Participants 

may access and/or offer liquidity 

without signaling to other Participants 

the extent of their trading interest. The 

Order may also serve to provide price 

improvement vis-a`-vis the NBBO. Under 

Regulation NMS, a Non-Displayed 

Order may lock a Protected Quotation 

and may be traded-through by other 

market centers.36 In addition to the NonDisplayed Order Type, there are other 

Order Types that are not displayed on 

the Exchange Book. Thus, ‘‘NonDisplay’’ is both a specific Order Type 

and an Order Attribute of certain other 

Order Types. 

When a Non-Displayed Order is 

entered, the Non-Displayed Order will 

be executed against previously posted 

Orders on the Exchange Book that are 

priced equal to or better than the price 

of the Non-Displayed Order, up to the 

full amount of such previously posted 

Orders, unless such executions would 

trade through a Protected Quotation. 

Any portion of the Non-Displayed Order 

that cannot be executed in this manner 

will be posted to the Exchange Book 

(unless the Non-Displayed Order has a 

Time-in-Force of IOC) and/or routed if 

it has been designated as Routable.37

During Market Hours, the price at 

which a Non-Displayed Order is posted 

is determined in the following manner. 

If the entered limit price of the NonDisplayed Order would lock a Protected 

Quotation, the Non-Displayed Order 

will be placed on the Exchange Book at 

the locking price. If the Non-Displayed 

Order would cross a Protected 

Quotation, the Non-Displayed Order 

will be repriced to a price that would 

lock the Protected Quotation and will be 

placed on the Exchange Book at that 

price.38 For example, if a Non-Displayed 

Order to buy at $11 would cross a 

Protected Offer of $10.99, the NonDisplayed Order will be repriced and 

posted at $10.99. A Non-Displayed 

Order to buy at $10.99 would also be 

posted at $10.99. During Pre-Market 

Hours and Post-Market Hours, a NonDisplayed Order will be posted at its 

entered limit price without adjustment. 

As is the case with a Price to Comply 

Order, a Non-Displayed Order may be 

adjusted after initial entry.39

Specifically, if a Non-Displayed Order is 

entered through RASH or FIX, during 

Market Hours the Non-Displayed Order 

may be adjusted in the following 

manner after initial entry and posting to 

the Exchange Book (unless the Order is 

assigned a Routing Order Attribute that 

would cause it to be routed to another 

market center rather than remaining on 

the Exchange Book): 

• If the original entered limit price of 

a Non-Displayed Order is higher than 

the Best Offer (for an Order to buy) or 

lower than the Best Bid (for an Order to 

sell) and the NBBO moves toward the 

original entered limit price of the NonVerDate Sep<11>2014 18:14 Apr 03, 2015 Jkt 235001 PO 00000 Frm 00127 Fmt 4703 Sfmt 4703 E:\FR\FM\06APN1.SGM 06APN1

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40Note that because the Order receives a new 

timestamp, it is processed like a new Order when 

it is repriced. 

41 Id. As noted above, the cancellation of a NonDisplayed Order in this circumstance helps ensure 

that the Non-Displayed Order will not trade through 

a Protected Quotation. 

42Midpoint Pegging is described below and in 

proposed Rule 4703. Specifically, an Order with the 

Midpoint Pegging Attribute that is entered through 

OUCH or FLITE is priced upon entry but is not 

repriced based on changes to the NBBO. 

Accordingly, the Order is cancelled if it is no longer 

at the midpoint between the NBBO. 

43The Minimum Quantity Order Attribute is 

described below and in proposed Rule 4703. 

44For example, if a Non-Displayed Order to buy 

at $11 would lock the price of a Protected Offer at 

$11, the Non-Displayed Order could be posted at 

$11 regardless of whether it was marked as an ISO. 

Accordingly, even if the Non-Displayed Order was 

marked as an ISO, the System would not accept a 

Displayed Order priced at $11 unless (i) the 

Displayed Order was itself marked as an ISO, or (ii) 

market data received by the System demonstrated 

that the Protected Offer had been removed. 

45Pegging to the Midpoint is described below and 

in proposed Rule 4703. The full functionality of 

Midpoint Pegging is available through RASH and 

FIX, and more limited functionality is available 

through OUCH and FLITE. 

46Securities Exchange Act Release No. 73333 

(October 9, 2014), 79 FR 62223 (October 16, 2014) 

(SR–NYSE–2014–32 and SR–NYSEMKT–2014–56) 

(hereinafter ‘‘SR–NYSE–2014–32 Approval Order’’) 

(approving ‘‘Add Liquidity Only’’ modifier that 

operates in a manner similar to Post-Only Order). 

Displayed Order, the price of the NonDisplayed Order will be adjusted 

repeatedly in accordance with changes 

to the NBBO. For example, if a NonDisplayed Order to buy at $11.02 would 

cross a Protected Offer of $11, the NonDisplayed Order will be priced and 

posted at $11. If the Best Offer then 

changes to $11.01, the price of the NonDisplayed Order will be changed to 

$11.01. The Order may be repriced 

repeatedly in this manner, receiving a 

new timestamp each time its price is 

changed, until the Non-Displayed Order 

is posted at its original entered limit 

price.40 The Non-Displayed Order will 

not thereafter be repriced under this 

provision, except as provided below 

with respect to crossing a Protected 

Quotation. 

• If, after being posted to the 

Exchange Book, the NBBO changes so 

that the Non-Displayed Order would 

cross a Protected Quotation, the NonDisplayed Order will be repriced at a 

price that would lock the new NBBO 

and receive a new timestamp.41 For 

example, if a Non-Displayed Order to 

buy at $11 would lock a Protected Offer 

of $11, the Non-Displayed Order will be 

posted at $11. If the Best Offer then 

changes to $10.99, the Non-Displayed 

Order will be repriced at $10.99, 

receiving a new timestamp. The NonDisplayed Order may be repriced and 

receive a new timestamp repeatedly. 

If a Non-Displayed Order is entered 

through OUCH or FLITE, during Market 

Hours the Non-Displayed Order may be 

adjusted in the following manner after 

initial entry and posting to the Exchange 

Book: 

• If the original entered limit price of 

the Non-Displayed Order locked or 

crossed a Protected Quotation and the 

NBBO changes so that the NonDisplayed Order could be posted at a 

price at or closer to its original entered 

limit price without crossing a Protected 

Quotation, the Non-Displayed Order 

may either remain on the Exchange 

Book unchanged or may be cancelled 

back to the Participant, depending on its 

choice. For example, if a Non-Displayed 

Order to buy at $11.02 would cross a 

Protected Offer of $11, the Order will be 

priced at $11. If the Best Offer changes 

to $11.01, the Order will not be 

repriced, but rather will either remain at 

its current $11 price or be cancelled 

back to the Participant, depending on its 

choice. A Participant’s choice with 

regard to maintaining the NonDisplayed Order or cancelling it is set in 

advance for each port through which the 

Participant enters Orders. 

• If, after a Non-Displayed Order is 

posted to the Exchange Book, the NBBO 

changes so that the Non-Displayed 

Order would cross a Protected 

Quotation, the Non-Displayed Order 

will be cancelled back to the 

Participant. For example, if a NonDisplayed Order to buy at $11 would 

lock a Protected Offer of $11, the NonDisplayed Order will be posted at $11. 

If the Best Offer then changes to $10.99, 

the Non-Displayed Order will be 

cancelled back to the Participant. 

• If a Non-Displayed Order entered 

through OUCH or FLITE is assigned a 

Midpoint Pegging Order Attribute,42

and if, after being posted to the 

Exchange Book, the NBBO changes so 

that the Non-Displayed Order is no 

longer at the Midpoint between the 

NBBO, the Non-Displayed Order will be 

cancelled back to the Participant. In 

addition, if a Non-Displayed Order 

entered through OUCH or FLITE is 

assigned a Midpoint Pegging Attribute 

and also has a limit price that is lower 

than the midpoint between the NBBO 

for an Order to buy (higher than the 

midpoint between the NBBO for an 

Order to sell), the Order will 

nevertheless be accepted at its limit 

price and will be cancelled if the 

midpoint between the NBBO moves 

lower than (higher than) the price of an 

Order to buy (sell). 

The following Order Attributes may 

be assigned to a Non-Displayed Order: 

• Price. As described above, the price 

of the Order may be adjusted to avoid 

crossing a Protected Quotation. 

• Size. 

• ‘‘Minimum Quantity’’.43

• Time-in-Force. 

• Designation as an ISO. In 

accordance with Regulation NMS, a 

Non-Displayed Order designated as an 

ISO would be processed at its entered 

limit price, since such a designation 

reflects a representation by the 

Participant that it has simultaneously 

routed one or more additional limit 

orders, as necessary, to execute against 

the full displayed size of any Protected 

Quotations that the Non-Displayed 

Order would cross. As discussed above, 

a Non-Displayed Order would be 

accepted at a price that locked a 

Protected Quotation, even if the Order 

was not designated as an ISO, because 

the non-displayed nature of the Order 

allows it to lock a Protected Quotation 

under Regulation NMS. Accordingly, 

the System would not interpret receipt 

of a Non-Displayed Order marked ISO 

that locked a Protected Quotation as the 

basis for determining that the Protected 

Quotation had been executed for 

purposes of accepting additional Orders 

at that price level.44

• Routing (available through RASH 

and FIX only). 

• Primary Pegging and Market 

Pegging (available through RASH and 

FIX only). 

• Pegging to the Midpoint.45

• Discretion (available through RASH 

and FIX only). 

Post-Only Orders 

A ‘‘Post-Only Order’’ is an Order Type 

designed to have its price adjusted as 

needed to post to the Exchange Book in 

compliance with Rule 610(d) under 

Regulation NMS by avoiding the display 

of quotations that lock or cross any 

Protected Quotation in a System 

Security during Market Hours, or to 

execute against locking or crossing 

quotations in circumstances where 

economically beneficial to the 

Participant entering the Post-Only 

Order. Post-Only Orders are always 

displayed, although as discussed below, 

they may also have a non-displayed 

price in circumstances similar to a Price 

to Comply Order. Post-Only Orders are 

thus designed to allow Participants to 

help control their trading costs, while 

also ‘‘provid[ing] displayed liquidity to 

the market and thereby contribut[ing] to 

public price discovery—an objective 

that is fully consistent with the Act.’’ 46

In addition, under some circumstances, 

Post-Only Orders provide price 

improvement. 

During Market Hours, a Post-Only 

Order is evaluated at the time of entry 


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47 Details regarding the processing of a Post-Only 

Order that locks or crosses both a Protected 

Quotation and an Order on the Exchange Book; the 

potential execution of a Post-Only Order priced at 

more than $1 per share; and the processing of a 

Post-Only Order with a Time-in-Force of IOC reflect 

substantive clarifications to the language of the 

existing rule. 

48This is the case because the Exchange’s fees for 

securities priced at $1 or more reflect a ‘‘taker/

maker’’ pricing structure in which Orders that 

access liquidity are paid a rebate. As a result, it is 

always economically beneficial for an Order to 

execute against posted liquidity and receive a 

rebate, even if the Order receives no price 

improvement. In the event that the Exchange 

modified its pricing structure so as to remove the 

applicable rebate, it would also amend the rules 

governing Post-Only Orders to provide that 

securities priced at $1 or more would execute 

against Orders on the Exchange Book only if they 

would receive price improvement of $0.01 or more 

per share. 

49 Id. 

50Thus, in circumstances where a Post-Only 

Order would lock or cross an Order on the 

Exchange Book, the Post-Only Order will either 

execute or post and offer displayed liquidity. A 

Post-Only Order is not cancelled back to the 

Participant that entered it if it cannot post at its 

original price. Thus, the Order Type does not 

provide a means to ascertain the existence of 

locking or crossing Orders on the Exchange Book 

without the Participant also committing to execute 

against such Orders or display and potentially 

provide liquidity at the Exchange’s best price. 

51This functionality reflects the overall purpose 

of the Post-Only Order, which is not to post to the 

Exchange Book in all circumstances, but rather to 

assist Participants in controlling execution costs by 

allowing consideration of price improvement, fees, 

and rebates in the handling of the Order. Thus, 

entering a Post-Only Order with a Time-in-Force of 

IOC allows a Participant to stipulate that an Order 

will execute only if it receives price improvement. 

52These adjustments reflect a substantive 

clarification to the language of the existing rule. 

53This means that, in general, the price of the 

Post-Only Order will move toward, but not away 

from, its original entered limit price. Because a 

Post-Only Order is removed from the Exchange 

with respect to locking or crossing other 

Orders on the Exchange Book, Protected 

Quotations, and potential execution as 

follows: 47

• If a Post-Only Order would lock or 

cross a Protected Quotation, the price of 

the Order will first be adjusted. If the 

Order is Attributable, its adjusted price 

will be one minimum price increment 

lower than the current Best Offer (for 

bids) or higher than the current Best Bid 

(for offers). If the Order is not 

Attributable, its adjusted price will be 

equal to the current Best Offer (for bids) 

or the current Best Bid (for offers). 

However, the Order will not post or 

execute until the Order, as adjusted, is 

evaluated with respect to Orders on the 

Exchange Book. 

Æ If the adjusted price of the PostOnly Order would not lock or cross an 

Order on the Exchange Book, the Order 

will be posted in the same manner as a 

Price to Comply Order (if it is not 

Attributable) or a Price to Display Order 

(if it is Attributable). Specifically, if the 

Post-Only Order is not Attributable, it 

will be displayed on the Exchange Book 

at a price one minimum price increment 

lower than the current Best Offer (for 

bids) or higher than the current Best Bid 

(for offers) but will be ranked on the 

Exchange Book with a non-displayed 

price equal to the current Best Offer (for 

bids) or to the current Best Bid (for 

offers). For example, if a Post-Only 

Order to buy at $11 would lock a 

Protected Offer of $11, the Order will be 

ranked at a non-displayed price of $11 

but will be displayed at $10.99. If the 

Post-Only Order is Attributable, it will 

be ranked and displayed on the 

Exchange Book at a price one minimum 

increment lower than the current Best 

Offer (for bids) or higher than the 

current Best Bid (for offers). Thus, in the 

preceding example, the Post-Only Order 

to buy would be ranked and displayed 

at $10.99. 

Æ If the adjusted price of the PostOnly Order would lock or cross an 

Order on the Exchange Book, the Post 

Only Order will be repriced, ranked, 

and displayed at one minimum price 

increment below the current best-priced 

Order to sell on the Exchange Book (for 

bids) or above the current best-priced 

Order to buy on the Exchange Book (for 

offers); provided, however, the PostOnly Order will execute if (i) it is priced 

at $1.00 or more,48 or (ii) it is priced 

below $1.00 and the value of price 

improvement associated with executing 

against an Order on the Exchange Book 

(as measured against the original limit 

price of the Order) equals or exceeds the 

sum of fees charged for such execution 

and the value of any rebate that would 

be provided if the Order posted to the 

Exchange Book and subsequently 

provided liquidity. For example, if a 

Participant entered a Non-Attributable 

Post-Only Order to buy at $11.01, 

another market center is displaying a 

Protected Offer at $11, and there is a 

Non-Displayed Order on the Exchange 

Book to sell at $11, the adjusted price 

of the Post-Only Order will be $11. 

However, because the Post-Only Order 

would be executable against the NonDisplayed Order on the Exchange Book, 

the Post-Only Order would execute. 

• If the Post-Only Order would not 

lock or cross a Protected Quotation but 

would lock or cross an Order on the 

Exchange Book, the Post Only Order 

will be repriced, ranked, and displayed 

at one minimum price increment below 

the current best-priced Order to sell on 

the Exchange Book (for bids) or above 

the current best-priced Order to buy on 

the Exchange Book (for offers); 

provided, however, the Post-Only Order 

will execute if (i) it is priced at $1.00 or 

more,49 or (ii) it is priced below $1.00 

and the value of price improvement 

associated with executing against an 

Order on the Exchange Book (as 

measured against the original limit price 

of the Order) equals or exceeds the sum 

of fees charged for such execution and 

the value of any rebate that would be 

provided if the Order posted to the 

Exchange Book and subsequently 

provided liquidity. For example, if a 

Participant entered a Post-Only Order to 

buy at $11.02, the Best Offer was $11.04, 

and there was a Non-Displayed Order 

on the Exchange Book to sell at $11.02, 

the Post-Only Order would execute.50

• If a Post-Only Order is entered with 

a Time-in-Force of IOC, the price of an 

Order to buy (sell) will be repriced to 

the lower of (higher of) (i) one minimum 

price increment below (above) the price 

of the Order or (ii) the current Best Offer 

(Best Bid). The Order will execute 

against any Order on the Exchange Book 

with a price equal to or better than the 

adjusted price of the Post-Only Order. If 

the Post-Only Order cannot execute, it 

will be cancelled. For example, if a PostOnly Order to buy at $11 with a Timein-Force of IOC was entered and the 

current Best Offer was $11.01, the Order 

would be repriced to $10.99; however, 

if the Best Offer was $10.98, the Order 

would be repriced to $10.98.51

• If a Post-Only Order would not lock 

or cross an Order on the Exchange Book 

or any Protected Quotation, it will be 

posted on the Exchange Book at its 

entered limit price. 

During Pre-Market and Post-Market 

Hours, a Post-Only Order will be 

processed in a manner identical to 

Market Hours with respect to locking or 

crossing Orders on the Exchange Book, 

but will not have its price adjusted with 

respect to locking or crossing the 

quotations of other market centers. 

If a Post-Only Order is entered 

through RASH or FIX, during System 

Hours the Post-Only Order may be 

adjusted in the following manner after 

initial entry and posting to the Exchange 

Book: 52

• If the original entered limit price of 

the Post-Only Order is not being 

displayed, the displayed (and nondisplayed price, if any) of the Order will 

be adjusted repeatedly in accordance 

with changes to the NBBO or the best 

price on the Exchange Book, as 

applicable; provided, however, that if 

the quotation of another market center 

moves in a manner that would lock or 

cross the displayed price of a Post-Only 

Order, the price(s) of the Post-Only 

Order will not be adjusted.53 For 


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Book while it is being repriced, however, it is 

possible that the Order’s price will move away from 

its original entered limit price in the case of a ‘‘race 

condition’’ where the NBBO changes again while 

the Order is not on the Exchange Book. 

54Thus, the price of the Order will not move 

beyond its limit price. 

55These adjustments reflect a substantive 

clarification to the language of the existing rule. 

56Thus, the price of the Order will not move 

beyond its limit price. 

example, if a Non-Attributable PostOnly Order to buy at $11.02 would cross 

a Protected Offer of $11, the Order will 

be ranked at a non-displayed price of 

$11 but will be displayed at $10.99. If 

the Best Offer then moves to $11.01, the 

displayed price will be changed to $11 

and the non-displayed price at which 

the Order is ranked will be changed to 

$11.01. However, if another market 

center then displays an offer of $11 

(thereby locking the previously 

displayed price of the Post-Only Order, 

notwithstanding Rule 610(d) under 

Regulation NMS), the price of the PostOnly Order will not be changed. The 

Order may be repriced repeatedly until 

such time as the Post-Only Order is able 

to be displayed at its original entered 

limit price ($11.02 in the example). The 

Post-Only Order receives a new 

timestamp each time its price is 

changed. If the original entered limit 

price of the Post-Only Order would no 

longer lock or cross a Protected 

Quotation or an Order on the Exchange 

Book, the Post-Only Order will be 

ranked displayed at that price and will 

receive a new timestamp, and will not 

thereafter be adjusted under this 

provision.54

If a Post-Only Order is entered 

through OUCH or FLITE, the Post-Only 

Order may be adjusted in the following 

manner after initial entry and posting to 

the Exchange Book: 55

• During Market Hours, if the original 

entered limit price of the Post-Only 

Order locked or crossed a Protected 

Quotation, the Post-Only Order may be 

adjusted after initial entry in the same 

manner as a Price to Comply Order (or 

a Price to Display Order, if it is 

Attributable). Thus, in the case of a 

Non-Attributable Post-Only Order that 

crossed a Protected Quotation, if the 

NBBO changed so that the Post-Only 

Order could be ranked and displayed at 

a price at or closer to its original entered 

limit price without locking or crossing 

a Protected Quotation, the Post-Only 

Order may either remain on the 

Exchange Book unchanged or may be 

cancelled back to the Participant, 

depending on its choice. In the case of 

a Non-Attributable Post-Only Order that 

locked a Protected Quotation, if the 

limit price would no longer lock a 

Protected Quotation, the Post-Only 

Order may either remain on the 

Exchange Book unchanged, may be 

cancelled back to the Participant, or 

may be ranked and displayed at its 

original entered limit price, depending 

on the Participant’s choice, and will not 

thereafter be adjusted under this 

provision.56 If the Post-Only Order is 

displayed at its original entered limit 

price, it will receive a new timestamp. 

Finally, in the case of an Attributable 

Post-Only Order that locked or crossed 

a Protected Quotation, if the NBBO 

changed so that the Post-Only Order 

could be ranked and displayed at a price 

at or closer to its original entered limit 

price without locking or crossing a 

Protected Quotation, the Post-Only 

Order may either remain on the 

Exchange Book unchanged or may be 

cancelled back to the Participant, 

depending on the Participant’s choice. 

A Participant’s choice with regard to 

adjustment of Post-Only Orders is set in 

advance for each port through which the 

Participant enters Orders. 

• During System Hours, if the original 

entered limit price of the Post-Only 

Order locked or crossed an Order on the 

Exchange Book and did not execute, and 

the Exchange Book changes so that the 

original entered limit price would no 

longer lock or cross an Order on the 

Exchange Book, the Post-Only Order 

may either remain on the Exchange 

Book unchanged or may be cancelled 

back to the Participant, depending on 

the Participant’s choice. For example, if 

a Post-Only Order to buy at $0.98 would 

lock an Order on the Exchange Book 

priced at $0.98, the Post-Only Order 

will be ranked and displayed at $0.9799. 

If the Order at $0.98 is cancelled or 

executed, the Post-Only Order may 

either remain with a displayed price of 

$0.9799 or be cancelled back to the 

Participant, depending on the 

Participant’s choice. A Participant’s 

choice with regard to maintaining the 

Post-Only Order or cancelling it is set in 

advance for each port through which the 

Participant enters Orders. 

The following Order Attributes may 

be assigned to a Post-Only Order: 

• Price. As described above, the price 

of the Order may be adjusted to avoid 

locking or crossing a Protected 

Quotation, and may include a displayed 

price as well as a non-displayed price. 

• Size. 

• Time-in-Force. 

• Designation as an ISO. In 

accordance with Regulation NMS, a 

Post-Only Order designated as an ISO 

that locked or crossed a Protected 

Quotation would be processed at its 

entered limit price, since such a 

designation reflects a representation by 

the Participant that it has 

simultaneously routed one or more 

additional limit orders, as necessary, to 

execute against the full displayed size of 

any Protected Quotations that the PostOnly Order would lock or cross. 

However, as described above, a PostOnly Order designated as an ISO that 

locked or crossed an Order on the 

Exchange Book would either execute at 

time of entry or would have its price 

adjusted prior to posting. Accordingly, 

the System would not interpret receipt 

of a Post-Only Order marked ISO that 

had its price adjusted prior to posting as 

the basis for determining that any 

Protected Quotation at the Order’s 

original entered limit price level had 

been executed for purposes of accepting 

additional Orders at that price level. 

However, if the Post-Only Order is 

ranked and displayed at its adjusted 

price, the System would consider the 

adjusted price level to be open for 

purposes of accepting additional Orders 

at that price level. For example, assume 

that there is a Protected Offer at $0.98 

and a Participant enters a Post-Only 

Order marked ISO to buy at $0.98. If 

there are no Orders to sell at $0.98 on 

the Exchange Book, the Order to buy 

will be displayed and ranked at $0.98, 

since the designation of the Order as an 

ISO reflects the Participant’s 

representation that it has routed one or 

more additional limit orders, as 

necessary, to execute against the full 

displayed size of any Protected 

Quotations that the Post-Only Order 

would lock or cross. However, if there 

was also an Order to sell at $0.98 on the 

Exchange Book, the Post-Only Order 

may be repriced, ranked, and displayed 

at $0.9799. In that case, the mere fact 

that the Post-Only Order was designated 

as an ISO would not allow the Exchange 

to conclude that the $0.98 price level 

was ‘‘open’’ for receiving orders to buy 

at that price; the $0.98 price level would 

be considered open only if market data 

received by the System demonstrated 

that the Protected Offer at $0.98 had 

been removed or if a subsequent 

Displayed Order marked ISO was 

received and ranked at that price. 

• Attribution. 

• Display. A Post-Only Order is 

always displayed, although, as provided 

above, it may also have a non-displayed 

price. 


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57The definitions of Retail Price Improving Order 

and Retail Order are currently found in Rule 4780. 

Accordingly, conforming amendments are proposed 

to that rule to reflect the adoption of the proposed 

new definitions in Rule 4701. 

Retail Price Improving Order and Retail 

Order 57

A ‘‘Retail Price Improving Order’’ or 

‘‘RPI Order’’ is an Order Type with a 

Non-Display Order Attribute that is held 

on the Exchange Book in order to 

provide liquidity at a price at least 

$0.001 better than the NBBO through a 

special execution process described in 

Rule 4780. A Retail Price Improving 

Order may be entered in price 

increments of $0.001. RPI Orders 

collectively may be referred to as ‘‘RPI 

Interest.’’ 

An RPI Order will be posted to the 

Exchange Book regardless of its price, 

but an RPI Order may execute only 

against a Retail Order, and only if its 

price is at least $0.001 better than the 

NBBO. 

The following Order Attributes may 

be assigned to an RPI Order: 

• Price. The price of an RPI Order 

must be at least $0.001 better than the 

NBBO in order to execute. 

• Size. 

• A Time-in-Force other than IOC. 

• Primary Pegging (available through 

RASH and FIX only). 

• Midpoint Pegging (available 

through RASH and FIX only). 

• Non-Display. All RPI Orders are 

Non-Displayed. 

A ‘‘Retail Order’’ is an Order Type 

with a Non-Display Order Attribute 

submitted to the Exchange by a Retail 

Member Organization (as defined in 

Rule 4780). A Retail Order must be an 

agency Order, or riskless principal 

Order that satisfies the criteria of FINRA 

Rule 5320.03. The Retail Order must 

reflect trading interest of a natural 

person with no change made to the 

terms of the underlying order of the 

natural person with respect to price 

(except in the case of a market order that 

is changed to a marketable limit order) 

or side of market and that does not 

originate from a trading algorithm or 

any other computerized methodology. 

A Retail Order may be designated as 

either a Type-1 Retail Order or a Type2 Retail Order. Upon entry, a Type-1 

Retail Order will attempt to execute 

against RPI Orders and any other Orders 

on the Exchange Book with a price that 

is (i) equal to or better than the price of 

the Type-1 Retail Order and (ii) at least 

$0.001 better than the NBBO. A Type1 Retail Order is not Routable and will 

thereafter be cancelled. 

Upon entry, a Type-2 Retail Order 

will first attempt to execute against RPI 

Orders and any other Orders on the 

Exchange Book with a price that is (i) 

equal to or better than the price of the 

Type-2 Retail Order and (ii) at least 

$0.001 better than the NBBO and will 

then attempt to execute against any 

other Order on the Exchange Book with 

a price that is equal to or better than the 

price of the Type-2 Retail Order, unless 

such executions would trade through a 

Protected Quotation. A Type-2 Retail 

Order may be designated as Routable. 

The following Order Attributes may 

be assigned to a Retail Order: 

• Price. 

• Size. 

• A Time-in-Force of IOC. 

• Routing (available through RASH 

and FIX only). 

• Midpoint Pegging (available 

through RASH and FIX only). 

• Non-Display. All Retail Orders are 

Non-Displayed. 

Order Attributes 

Proposed Rule 4702 lists the Order 

Attributes that may be assigned to 

specific Order Types. Proposed Rule 

4703 details the parameters of each 

Order Attribute. 

Time-in-Force 

The ‘‘Time-in-Force’’ assigned to an 

Order means the period of time that the 

System 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. The available 

times for activating Orders are: 

• The time of the Order’s receipt by 

the System; 

• the beginning of Market Hours; 

• the end of Market Hours; 

• the resumption of trading, in the 

case of a security that is the subject of 

a trading halt. 

The available times for deactivating 

Orders are: 

• ‘‘Immediate’’ (i.e., immediately after 

determining whether the Order is 

marketable); 

• the end of Market Hours; 

• the end of System Hours; 

• one year after entry; or 

• a specific time identified by the 

Participant; provided, however, that an 

Order specifying an expire time beyond 

the current trading day will be cancelled 

at the end of the current trading day. 

Notwithstanding the Time-in-Force 

originally designated for an Order, a 

Participant may always cancel an Order 

after it is entered. 

The following Times in Force are 

referenced elsewhere in the Exchange’s 

Rules by the designations noted below: 

• An Order that is designated to 

deactivate immediately after 

determining whether the Order is 

marketable may be referred to as having 

a Time in Force of ‘‘Immediate or 

Cancel’’ or ‘‘IOC’’. Any Order with a 

Time-in-Force of IOC entered between 

9:30 a.m. ET and 4 p.m. ET may be 

referred to as having a Time-in-Force of 

‘‘Market Hours Immediate or Cancel’’ or 

‘‘MIOC’’. An Order with a Time-inForce of IOC that is entered at any time 

between 7 a.m. ET and 7 p.m. ET may 

be referred to as having a Time-in-Force 

of ‘‘System Hours Immediate or Cancel’’ 

or ‘‘SIOC’’. 

• An Order that is designated to 

deactivate at 7 p.m. may be referred to 

as having a Time in Force of ‘‘System 

Hours Day’’ or ‘‘SDAY’’. 

• An Order that is designated to 

deactivate one year after entry may be 

referred to as a ‘‘Good-till-Cancelled’’ or 

‘‘GTC’’ Order. If a GTC Order is 

designated as eligible for execution 

during Market Hours only, it may be 

referred to as having a Time in Force of 

‘‘Market Hours Good-till-Cancelled’’ or 

‘‘MGTC’’. If a GTC is designated as 

eligible for execution during System 

Hours, it may be referred to as having 

a Time in Force of ‘‘System Hours Goodtill-Cancelled’’ or ‘‘SGTC’’. 

• An Order that is designated to 

deactivate at the time specified in 

advance by the entering Participant may 

be referred to as having a Time-in-Force 

of ‘‘System Hours Expire Time’’ or 

‘‘SHEX’’. 

• An Order that is designated to 

activate at any time during Market 

Hours and deactivate at 4 p.m. ET may 

be referred to as having a Time-in-Force 

of ‘‘Market Hours Day’’ or ‘‘MDAY’’. An 

Order entered with a Time-in-Force of 

MDAY after 4 p.m. ET will be accepted 

but given a Time-in-Force of IOC. 

• An Order that is designated to 

activate when entered and deactivate at 

4 p.m. ET may be referred to as having 

a Time in Force of ‘‘Good-till-Market 

Close’’ or ‘‘GTMC’’. GTMC Orders 

entered after 4 p.m. ET will be treated 

as having a Time-in-Force of SIOC. 

Size 

Except as otherwise provided, an 

Order may be entered in any whole 

share size between one share and 

999,999 shares. Orders for fractional 

shares are not permitted. The following 

terms may be used to describe particular 

Order sizes: 

• ‘‘normal unit of trading’’ or ‘‘round 

lot’’ means the size generally employed 

by traders when trading a particular 

security, which is 100 shares in most 

instances; 

• ‘‘mixed lot’’ means a size of more 

than one normal unit of trading but not 

a multiple thereof; and 


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58This is the case because otherwise the Pegged 

Order would become pegged to itself if it set the 

NBBO. 

59For example, if an Order to buy with Primary 

Pegging is entered with a limit price of $11.05 at 

a time when the Inside Bid is $11, the initial price 

of the Order will be $11. If, thereafter, the Inside 

Bid changes to $11.05, $11.06, and $11.04, the price 

of the Order at such times will be $11.05, $11.05, 

and $11.04. 

• ‘‘odd lot’’ means a size of less than 

one normal unit of trading. 

Price 

With limited exceptions, all Orders 

must have a price, such that they will 

execute only if the price available is 

equal to or better than the price of the 

Order. The maximum price that the 

System will accept is $199,999.99. 

Certain Orders have a price that is 

determined by the System based on the 

NBBO or other reference prices, rather 

than by the Participant. As described 

below with respect to the Pegging Order 

Attribute, an Order may have a price 

that is pegged to the opposite side of the 

market, in which case the Order will 

behave like a ‘‘market order’’ or 

‘‘unpriced order’’ (i.e., an Order that 

executes against accessible liquidity on 

the opposite side of the market, 

regardless of its price). 

Pegging 

Pegging is an Order Attribute that 

allows an Order to have its price 

automatically set with reference to the 

NBBO; provided, however, that if the 

Exchange is the sole market center at the 

Best Bid or Best Offer (as applicable), 

then the price of any Displayed Order 

with Pegging will be set with reference 

to the highest bid or lowest offer 

disseminated by a market center other 

than the Exchange.58 An Order with a 

Pegging Order Attribute may be referred 

to as a ‘‘Pegged Order.’’ The price to 

which an Order is pegged is referred to 

as the Inside Quotation, the Inside Bid, 

or the Inside Offer, as appropriate. 

There are three varieties of Pegging: 

• Primary Pegging means Pegging 

with reference to the Inside Quotation 

on the same side of the market. For 

example, if the Inside Bid was $11, an 

Order to buy with Primary Pegging 

would be priced at $11. 

• Market Pegging means Pegging with 

reference to the Inside Quotation on the 

opposite side of the market. For 

example, if the Inside Offer was $11.06, 

an Order to buy with Market Pegging 

would be priced at $11.06. 

• Midpoint Pegging means Pegging 

with reference to the midpoint between 

the Inside Bid and the Inside Offer (the 

‘‘Midpoint’’). Thus, if the Inside Bid was 

$11 and the Inside Offer was $11.06, an 

Order with Midpoint Pegging would be 

priced at $11.03. An Order with 

Midpoint Pegging is not displayed. An 

Order with Midpoint Pegging may be 

executed in sub-pennies if necessary to 

obtain a midpoint price. 

Pegging is available only during 

Market Hours. An Order with Pegging 

may specify a limit price beyond which 

they Order may not be executed; 

provided, however, that if an Order has 

been assigned a Pegging Order Attribute 

and a Discretion Order Attribute, the 

Order may execute at any price within 

the discretionary price range, even if 

beyond the limit price specified with 

respect to the Pegging Order Attribute. 

If an Order with Pegging is priced at its 

limit price, the price of the Order may 

nevertheless be changed to a less 

aggressive price based on changes to the 

Inside Quotation.59 In addition, an 

Order with Primary Pegging or Market 

Pegging may specify an Offset Amount, 

such that the price of the Order will 

vary from the Inside Quotation by the 

selected Offset Amount. The Offset 

Amount may be either aggressive or 

passive. Thus, for example, if a 

Participant entered an Order to buy with 

Primary Pegging and a passive Offset 

Amount of $0.05 and the Inside Bid was 

$11, the Order would be priced at 

$10.95. If the Participant selected an 

aggressive Offset Amount of $0.02, 

however, the Order would be priced at 

$11.02. An Order with Primary Pegging 

and an Offset Amount will not be 

Displayed, unless the Order is 

Attributable. An Order with Midpoint 

Pegging will not be Displayed. An Order 

with Market Pegging and no Offset 

behaves as a ‘‘market order’’ with 

respect to any liquidity on the Exchange 

Book at the Inside Quotation on the 

opposite side of the market because it is 

immediately executable at that price. If, 

at the time of entry, there is no price to 

which a Pegged Order can be pegged, 

the Order will be rejected. In the case of 

an Order with Midpoint Pegging, if the 

Inside Bid and Inside Offer are locked, 

the Order will be priced at the locking 

price, if the Inside Bid and Inside Offer 

are crossed, the Order will nevertheless 

be priced at the midpoint between the 

Inside Bid and Inside Offer, and if there 

is no Inside Bid and/or Inside Offer, the 

Order will be rejected. 

Primary Pegging and Market Pegging 

are available through RASH and FIX 

only. An Order entered through OUCH 

or FLITE with Midpoint Pegging will 

have its price set upon initial entry to 

the Midpoint, unless the Order has a 

limit price that is lower than the 

Midpoint for an Order to buy (higher 

than the Midpoint for an Order to sell), 

in which case the Order will be ranked 

on the Exchange Book at its limit price. 

Thereafter, if the NBBO changes so that 

the Midpoint is lower than (higher than) 

the price of an Order to buy (sell), the 

Pegged Order will be cancelled back to 

the Participant. 

An Order entered through RASH or 

FIX with Pegging will have its price set 

upon initial entry and will thereafter 

have its price reset in accordance with 

changes to the relevant Inside 

Quotation. An Order with Pegging 

receives a new timestamp whenever its 

price is updated and therefore will be 

evaluated with respect to possible 

execution (and routing, if it has been 

assigned a Routing Order Attribute) in 

the same manner as a newly entered 

Order. If the price to which an Order is 

pegged is not available, the Order will 

be rejected. 

Pegging functionality allows a 

Participant to have the System adjust 

the price of the Order continually in 

order to keep the price within defined 

parameters. Thus, the System performs 

price adjustments that would otherwise 

be performed by the Participant through 

cancellation and reentry of Orders. The 

fact that a new timestamp is created for 

a Pegged Order whenever it has its price 

adjusted allows the Order to seek 

additional execution opportunities and 

ensures that the Order does not ‘‘jump 

the queue’’ with respect to any Orders 

that were previously at the Pegged 

Order’s new price level. 

If an Order with Primary Pegging is 

updated 1,000 times, it will be 

cancelled; if an Order with other forms 

of Pegging is updated 10,000 times, it 

will be cancelled. This restriction is 

designed to conserve System resources 

by limiting the persistence of Orders 

that update repeatedly without any 

reasonable prospect of execution. 

Minimum Quantity 

Minimum Quantity is an Order 

Attribute that allows a Participant to 

provide that an Order will not execute 

unless a specified minimum quantity of 

shares can be obtained. Thus, the 

functionality serves to allow a 

Participant that may wish to buy or sell 

a large amount of a security to avoid 

signaling its trading interest unless it 

can purchase a certain minimum 

amount. An Order with a Minimum 

Quantity Order Attribute may be 

referred to as a ‘‘Minimum Quantity 

Order.’’ For example, a Participant 

could enter an Order with a Size of 1000 

shares and specify a Minimum Quantity 

of 500 shares. In that case, upon entry, 

the System would determine whether 

there were posted Orders executable 

against the incoming Order with a size 


tkelley on DSK4VPTVN1PROD with NOTICES
18484 Federal Register / Vol. 80, No. 65 / Monday, April 6, 2015 / Notices 

60As reflected in the proposed rule, the System 

currently allows an incoming Order with a 

Minimum Quantity to execute if one or more Orders 

on the Exchange Book satisfy the Minimum 

Quantity condition. 

61The proposed rule text reflects a substantive 

clarification to the existing description of 

Discretionary Orders. 

62 It should be noted that a Discretionary IOC is 

deemed to be accessing liquidity for purposes of the 

Exchange’s schedule of fees and rebates, unless one 

Discretionary IOC executes against another 

Discretionary IOC, in which case the Order that had 

reached the Exchange Book first would be deemed 

to provide liquidity. Because the Exchange has a 

‘‘taker/maker’’ pricing model under which a 

Participant that accesses liquidity receives a rebate, 

a rebate would be paid with respect to a 

Discretionary IOC. 

of at least 500 shares.60 If there were 

not, the Order would post on the 

Exchange Book in accordance with the 

characteristics of its underlying Order 

Type. Once posted to the Exchange 

Book, the Minimum Quantity Order 

retains its Minimum Quantity Order 

Attribute, such that the Order may 

execute only against incoming Orders 

with a size of at least the minimum 

quantity condition. An Order that has a 

Minimum Quantity Order Attribute and 

that posts to the Exchange Book will not 

be displayed. 

Upon entry, an Order with a 

Minimum Quantity Order Attribute 

must have a size of at least one round 

lot. An Order entered through OUCH or 

FLITE may have a minimum quantity 

condition of any size of at least one 

round lot. An Order entered through 

RASH or FIX must have a minimum 

quantity of one round lot or any 

multiple thereof, and a mixed lot 

minimum quantity condition will be 

rounded down to the nearest round lot. 

In the event that the shares remaining in 

the size of an Order with a Minimum 

Quantity Order Attribute following a 

partial execution thereof are less than 

the minimum quantity specified by the 

Participant entering the Order, the 

minimum quantity value of the Order 

will be reduced to the number of shares 

remaining. An Order with a Minimum 

Quantity Order Attribute may not be 

displayed; if a Participant marks an 

Order with both a Minimum Quantity 

Order Attribute and a Display Order 

Attribute, the System will accept the 

Order but will give a Time-in-Force of 

IOC, regardless of the Time-in-Force 

marked by the Participant. An Order 

marked with a Minimum Quantity 

Order Attribute and a Routing Order 

Attribute will be rejected. 

Routing 

Routing is an Order Attribute that 

allows a Participant to designate an 

Order to employ one of several Routing 

Strategies offered by the Exchange, as 

described in Rule 4758; such an Order 

may be referred to as a ‘‘Routable 

Order.’’ Upon receipt of an Order with 

the Routing Order Attribute, the System 

will process the Order in accordance 

with the applicable Routing Strategy. In 

the case of a limited number of Routing 

Strategies, the Order will be sent 

directly to other market centers for 

potential execution. For most other 

Routing Strategies, the Order will 

attempt to access liquidity available on 

the Exchange in the manner specified 

for the underlying Order Type and will 

then be routed in accordance with the 

applicable Routing Strategy. Shares of 

the Order that cannot be executed are 

then returned to the Exchange, where 

they will (i) again attempt to access 

liquidity available on the Exchange and 

(ii) post to the Exchange Book or be 

cancelled, depending on the Time-inForce of the Order. Under certain 

Routing Strategies, the Order may be 

routed again if the System observes an 

accessible quotation of another market 

center, and returned to the Exchange 

again for potential execution and/or 

posting to the Exchange Book. 

In connection with the trading of 

securities governed by Regulation NMS, 

all Orders shall be routed for potential 

execution in compliance with 

Regulation NMS. Where appropriate, 

Routable Orders will be marked as 

Intermarket Sweep Orders. 

Discretion 

Discretion is an Order Attribute under 

which an Order has a non-displayed 

discretionary price range within which 

the entering Participant is willing to 

trade; such an Order may be referred to 

as a ‘‘Discretionary Order.’’ 61 Thus, an 

Order with Discretion has both a price 

(for example, buy at $11) and a 

discretionary price range (for example, 

buy up to $11.03). Depending on the 

Order Type used, the price may be 

displayed (for example, a Price to 

Display Order) or non-displayed (for 

example, a Non-Displayed Order). The 

discretionary price range is always nondisplayed. In addition, it should be 

noted that the Discretion Order 

Attribute may be combined with the 

Pegging Order Attribute, in which case 

either the price of the Order or the 

discretionary price range or both may be 

pegged in the ways described in Rule 

4702(d) with respect to the Pegging 

Order Attribute. For example, an Order 

with Discretion to buy might be pegged 

to the Best Bid with a $0.05 passive 

Offset and might have a discretionary 

price range pegged to the Best Bid with 

a $0.02 passive Offset. In that case, if the 

Best Bid was $11, the price of the Order 

would be $10.95, with a discretionary 

price range up to $10.98. If the Best Bid 

moved to $10.99, the price of the Order 

would then be $10.94, with a 

discretionary price range up to $10.97. 

Alternatively, if the price of the Order 

was pegged but the discretionary price 

range was not, the price of the Order 

would be $10.94, but the discretionary 

price range would continue to range up 

to $10.98. Likewise, if the discretionary 

price range was pegged but the price of 

the Order was not, the Order would 

remain priced at $10.95 but with a 

discretionary price range of up to 

$10.97. A Participant may also specify 

a limit price beyond which the 

discretionary price range may not 

extend. 

Under the circumstances described 

below, the System processes an Order 

with Discretion by generating a NonDisplayed Order with a Time-in-Force 

of IOC (a ‘‘Discretionary IOC’’) that will 

attempt to access liquidity available 

within the discretionary price range. 

The Discretionary IOC will not be 

permitted to execute, however, if the 

price of the execution would trade 

through a Protected Quotation. If more 

than one Order with Discretion satisfies 

conditions that would cause the 

generation of a Discretionary IOC 

simultaneously, the order in which such 

Discretionary IOCs are presented for 

execution is random, based on the 

respective processing time for each such 

Order. Whenever a Discretionary IOC is 

generated, the underlying Order with 

Discretion will be withheld or removed 

from the Exchange Book and will then 

be routed and/or placed on the 

Exchange Book if the Discretionary IOC 

does not exhaust the full size of the 

underlying Order with Discretion, with 

its price determined by the underlying 

Order Type and Order Attributes 

selected by the Participant.62 Because 

the circumstances under which a 

Discretionary IOC will be generated are 

dependent upon a range of factors, 

several specific scenarios are described 

below. 

• If an Order has been assigned a 

Discretion Order Attribute, but has not 

been assigned a Routing Order 

Attribute, upon entry of the Order, the 

System will automatically generate a 

Discretionary IOC with a price equal to 

the highest price for an Order with 

Discretion to buy (lowest price for an 

Order with Discretion to sell) within the 

discretionary price range and a size 

equal to the full size of the underlying 

Order to determine if there are any 

Orders within the discretionary price 

range on the Exchange Book. If the 

Discretionary IOC does not exhaust the 


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63The BSCN routing strategy is described in Rule 

4758. 

64The BSTG routing strategy is described in Rule 

4758. 

full size of the Order with Discretion, 

the remaining size of the Order with 

Discretion will post to the Exchange 

Book in accordance with the parameters 

that apply to the underlying Order 

Type. Thus, for example, if a Participant 

enters a Price to Display Order to buy 

at $11 with a discretionary price range 

of up to $11.03, upon entry the System 

will generate a Discretionary IOC to buy 

priced at $11.03. If there is an Order on 

the Exchange Book to sell priced at 

$11.02 and an execution at $11.02 

would not trade through a Protected 

Quotation, the Discretionary IOC will 

execute against the Order on the 

Exchange Book, up to the full size of 

each Order. Any remaining size of the 

Price to Display Order would post to the 

Exchange Book in accordance with its 

parameters. 

• After the Order posts to the 

Exchange Book, the System will 

examine whether at any time there is an 

Order on the Exchange Book with a 

price in the discretionary price range 

against which the Order with Discretion 

could execute. In doing so, the System 

will examine all Orders (including 

Orders that are not Displayed). If the 

System observes such an Order, it will 

generate a Discretionary IOC with a 

price equal to the highest price for an 

Order to buy (lowest price for an Order 

to sell) within the discretionary price 

range and a size equal to the full size of 

the Order. 

• If an Order that uses a passive 

routing strategy (i.e., a strategy such as 

BSCN 63 that does not seek routing 

opportunities after posting to the 

Exchange Book) has been assigned a 

Discretion Order Attribute but does not 

have a pegged discretionary price range, 

upon entry of the Order, the System will 

examine all Orders (including Orders 

that are not Displayed) on the Exchange 

Book to determine if there is an Order 

on the Exchange Book with a price in 

the discretionary price range against 

which the Order with Discretion could 

execute. If the System observes such an 

Order, it will generate a Discretionary 

IOC with a price equal to the price of 

the Order on the Exchange Book and a 

size equal to the applicable size of the 

Order on the Exchange Book. The 

System will also determine if there are 

any accessible quotations with prices 

that are within the discretionary price 

range at destinations on the applicable 

routing table for the selected routing 

strategy. If there are such quotations, the 

System will generate one or more 

Discretionary IOCs to route to such 

destinations, with a price and size that 

match the price and size of the market 

center’s quotation. If necessary to 

maximize execution opportunities and 

comply with Regulation NMS, the 

System’s routing broker may mark such 

Discretionary IOCs as Intermarket 

Sweep Orders. If the Discretionary 

IOC(s) do not exhaust the full size of the 

Order with Discretion, the remaining 

size of the Order with Discretion will 

post to the Exchange Book in 

accordance with the parameters that 

apply to the underlying Order Type. 

The System will then examine whether 

at any time there is an Order on the 

Exchange Book with a price in the 

discretionary price range against which 

the Order with Discretion could 

execute. In doing so, the System will 

examine all Orders (including Orders 

that are not Displayed). If the System 

observes such an Order, it will generate 

a Discretionary IOC with a price equal 

to the price of the Order on the 

Exchange Book and a size equal to the 

applicable size of the Order on the 

Exchange Book. 

• If an Order that uses a reactive 

routing strategy (i.e., a strategy such as 

BSTG 64 that seeks routing opportunities 

after posting to the Exchange Book) has 

been assigned a Discretion Order 

Attribute but does not have a pegged 

discretionary price range, upon entry of 

the Order, the System will examine all 

Orders (including Orders that are not 

Displayed) on the Exchange Book to 

determine if there is an Order on the 

Exchange Book with a price in the 

discretionary price range against which 

the Order with Discretion could 

execute. If the System observes such an 

Order, it will generate a Discretionary 

IOC with a price equal to the price of 

the Order on the Exchange Book and a 

size equal to the applicable size of the 

Order on the Exchange Book. The 

System will also determine if there are 

any accessible quotations with prices 

that are within the discretionary price 

range at destinations on the applicable 

routing table for the selected routing 

strategy. If there are such quotations, the 

System will generate one or more 

Discretionary IOCs to route to such 

destinations, with a price and size that 

match the price and size of the market 

center’s quotation. If necessary to 

maximize execution opportunities and 

comply with Regulation NMS, the 

System may mark such Discretionary 

IOCs as Intermarket Sweep Orders. If 

the Discretionary IOC(s) do not exhaust 

the full size of the Order with 

Discretion, the remaining size of the 

Order with Discretion will post to the 

Exchange Book in accordance with the 

parameters that apply to the underlying 

Order Type. The System will then 

examine whether at any time there is an 

Order on the Exchange Book or an 

accessible quotation at another trading 

venue with a price in the discretionary 

price range against which the Order 

with Discretion could execute. In 

examining the Exchange Book, the 

System will examine all Orders 

(including Orders that are not 

Displayed). If the System observes such 

an Order or quotation, it will generate 

a Discretionary IOC with a price equal 

to the price of such the Order or 

quotation and a size equal to the 

applicable size of the Order on the 

Exchange Book or the displayed size of 

the quotation. 

• If an Order that uses a passive 

routing strategy has been assigned a 

Discretion Order Attribute and does 

have a pegged discretionary price range, 

upon entry of the Order, the System will 

examine all Orders (including Orders 

that are not Displayed) on the Exchange 

Book to determine if there is an Order 

on the Exchange Book with a price in 

the discretionary price range against 

which the Order with Discretion could 

execute. If the System observes such an 

Order, it will generate a Discretionary 

IOC with a price equal to the price of 

the Order on the Exchange Book and a 

size equal to the applicable size of the 

Order on the Exchange Book. The 

System will also determine if there are 

any accessible quotations with prices 

that are within the discretionary price 

range at destinations on the applicable 

routing table for the selected routing 

strategy. If there are such quotations, the 

System will generate one or more 

Discretionary IOCs to route to such 

destinations, with a price and size that 

match the price and size of the market 

center’s quotation. If necessary to 

maximize execution opportunities and 

comply with Regulation NMS, the 

System may mark such Discretionary 

IOCs as Intermarket Sweep Orders. If 

the Discretionary IOC(s) do not exhaust 

the full size of the Order with 

Discretion, the remaining size of the 

Order with Discretion will post to the 

Exchange Book in accordance with the 

parameters that apply to the underlying 

Order Type. Thereafter, the Order will 

not generate further Discretionary IOCs 

unless the Order is updated in a manner 

that causes it to receive a new 

timestamp, in which case the Order will 

behave in the same manner as a newly 

entered Order. 

• If an Order that uses a reactive 

routing strategy has been assigned a 

Discretion Order Attribute and does 

have a pegged discretionary price range, 


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65Of course, if the Order uses a reactive routing 

strategy, such as BSTG, that routes out whenever 

the System observes a quotation against which the 

Order is marketable at another market center, the 

Order could be routed at any time. 

66Because the Displayed Order is reentered and 

the Non-Displayed Order is not, there are 

circumstances in which the Displayed Order may 

receive a different price than the Non-Displayed 

Order. For example, if, upon reentry, a Price to 

Display Order would lock or cross a newly posted 

Protected Quotation, the price of the Order will be 

adjusted but its associated Non-Displayed Order 

would not be adjusted. In that circumstance, it 

would be possible for the better priced NonDisplayed Order to execute prior to the Price to 

Display Order. 

67The ability to specify a random size reflects a 

substantive clarification of existing rules. 

upon entry of the Order, the System will 

examine all Orders (including Orders 

that are not Displayed) on the Exchange 

Book to determine if there is an Order 

on the Exchange Book with a price in 

the discretionary price range against 

which the Order with Discretion could 

execute. If the System observes such an 

Order, it will generate a Discretionary 

IOC with a price equal to the price of 

the Order on the Exchange Book and a 

size equal to the applicable size of the 

Order on the Exchange Book. The 

System will also determine if there are 

any accessible quotations with prices 

that are within the discretionary price 

range at destinations on the applicable 

routing table for the selected routing 

strategy. If there are such quotations, the 

System will generate one or more 

Discretionary IOCs to route to such 

destinations, with a price and size that 

match the price and size of the market 

center’s quotation. If necessary to 

maximize execution opportunities and 

comply with Regulation NMS, the 

System may mark such Discretionary 

IOCs as Intermarket Sweep Orders. If 

the Discretionary IOC(s) do not exhaust 

the full size of the Order with 

Discretion, the remaining size of the 

Order with Discretion will post to the 

Exchange Book in accordance with the 

parameters that apply to the underlying 

Order Type. The System will then 

examine whether at any time there is an 

Order on the Exchange Book or an 

accessible quotation at another trading 

venue with a price in the discretionary 

price range against which the Order 

with Discretion could execute. In 

examining the Exchange Book, the 

System will examine Displayed Orders 

but will not examine Non-Displayed 

Orders. If the System observes such an 

Order or quotation, it will generate a 

Discretionary IOC with a price equal to 

the price of such the Order or quotation 

and a size equal to the applicable size 

of the Order on the Exchange Book or 

the displayed size of the quotation. 

Reserve Size 

Reserve Size is an Order Attribute that 

permits a Participant to stipulate that an 

Order Type that is displayed may have 

its displayed size replenished from 

additional non-displayed size. An Order 

with Reserve Size may be referred to as 

a ‘‘Reserve Order.’’ At the time of entry, 

the displayed size of such an Order 

selected by the Participant must be one 

or more normal units of trading; an 

Order with a displayed size of a mixed 

lot will be rounded down to the nearest 

round lot. A Reserve Order with 

displayed size of an odd lot will be 

accepted but with the full size of the 

Order displayed. Reserve Size is not 

available for Orders that are not 

displayed; provided, however, that if a 

Participant enters Reserve Size for a 

Non-Displayed Order with a Time-inForce of IOC, the full size of the Order, 

including Reserve Size, will be 

processed as a Non-Displayed Order. 

Whenever a Participant enters an 

Order with Reserve Size, the System 

will process the Order as two Orders: A 

Displayed Order (with the 

characteristics of its selected Order 

Type) and a Non-Displayed Order. Upon 

entry, the full size of each such Order 

will be processed for potential 

execution in accordance with the 

parameters applicable to the Order 

Type. For example, a Participant might 

enter a Price to Display Order with 200 

shares displayed and an additional 

3,000 shares non-displayed. Upon entry, 

the Order would attempt to execute 

against available liquidity on the 

Exchange Book, up to 3,200 shares. 

Thereafter, unexecuted portions of the 

Order would post to the Exchange Book 

as a Displayed Price to Display Order 

and a Non-Displayed Order; provided, 

however, that if the remaining total size 

is less than the display size stipulated 

by the Participant, the Displayed Order 

will post without Reserve Size. Thus, if 

3,050 shares executed upon entry, the 

Price to Display Order would post with 

a size of 150 shares and no Reserve Size. 

When an Order with Reserve Size is 

posted, if there is an execution against 

the Displayed Order that causes its size 

to decrease below a normal unit of 

trading, another Displayed Order will be 

entered at the level stipulated by the 

Participant while the size of the NonDisplayed Order will be reduced by the 

same amount. Any remaining size of the 

original Displayed Order will remain on 

the Exchange Book. The new Displayed 

Order will receive a new timestamp, but 

the Non-Displayed Order (and the 

original Displayed Order, if any) will 

not; although the new Displayed Order 

will be processed by the System as a 

new Order in most respects at that time, 

if it was designated as Routable, the 

System will not automatically route it 

upon reentry.65 For example, if a Price 

to Comply Order with Reserve Size 

posted with a Displayed Size of 200 

shares, along with a Non-Displayed 

Order of 3,000 and the 150 shares of the 

Displayed Order was executed, the 

remaining 50 shares of the original Price 

to Comply Order would remain, a new 

Price to Comply Order would post with 

a size of 200 shares and a new 

timestamp, and the Non-Displayed 

Order would be decremented to 2,800 

shares.66

A Participant may stipulate that the 

Displayed Order should be replenished 

to its original size. Alternatively, the 

Participant may stipulate that the 

original and subsequent displayed size 

will be an amount randomly determined 

based on factors selected by the 

Participant.67 Specifically, the 

Participant would select both a 

theoretical displayed size and a range 

size, which may be any share amount 

less than the theoretical displayed size. 

The actual displayed size will then be 

determined by the System within a 

range in which the minimum size is the 

theoretical displayed size minus the 

range size, and the maximum size is (i) 

the minimum size plus (ii) an amount 

that is two times the range size minus 

one round lot. For example, if the 

theoretical displayed size is 600 shares 

and the range size is 500, the minimum 

displayed size will be 100 shares 

(600¥500), and the maximum size will 

be 1,000 shares ((600¥500) + ((2 × 

500)¥100)). 

When the Displayed Order with 

Reserve Size is executed and 

replenished, applicable market data 

disseminated by the Exchange will 

show the execution and decrementation 

of the Displayed Order, followed by 

replenishment of the Displayed Order. 

In all cases, if the remaining size of the 

Non-Displayed Order is less than the 

fixed or random amount stipulated by 

the Participant, the full remaining size 

of the Non-Displayed Order will be 

displayed and the Non-Displayed Order 

will be removed. 

Attribution 

Attribution is an Order Attribute that 

permits a Participant to designate that 

the price and size of the Order will be 

displayed next to the Participant’s MPID 

in market data disseminated by the 

Exchange. An Order with Attribution is 

referred to as an ‘‘Attributable Order’’ 

and an Order without attribution is 

referred to as a ‘‘Non-Attributable 

Order.’’ 


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68However, Orders that are assigned a Routing 

Order Attribute may be designated as ISOs by the 

Exchange when routed to other market centers to 

maximize their opportunities for execution. 

69Thus, for example, a Non-Displayed Order with 

a Time-in-Force of IOC marked ISO could execute 

against Orders on the Exchange Book. However, the 

price level of the Non-Displayed Order would be 

considered open for Orders to post only if 

applicable market data showed that the price level 

was available. 

70 Data about executions reflect both sides of a 

trade in instances where trades executed on the 

Exchange and one side of a trade in instances where 

a Routable Order executed at another market center. 

The data does not include information about Orders 

with a Time-in-Force of GTC to the extent that such 

Orders executed on a day after the day of their 

original entry. 

Intermarket Sweep Order 

Designation of an Order as an 

Intermarket Sweep Order, or ISO, is an 

Order Attribute that allows the Order to 

be executed within the System by 

Participants at multiple price levels 

without respect to Protected Quotations 

of other market centers within the 

meaning of Rule 600(b) under 

Regulation NMS. ISOs are immediately 

executable within the System against 

Orders against which they are 

marketable. An Order designated as an 

ISO may not be assigned a Routing 

Order Attribute.68 In connection with 

the trading of securities governed by 

Regulation NMS, Intermarket Sweep 

Orders shall be executed exclusively 

within the System and the entering 

Participant shall be responsible for 

compliance with Rules 610 and 611 

under Regulation NMS with respect to 

order protection and locked and crossed 

markets with respect to such Orders. 

Simultaneously with the routing of an 

ISO to the System, one or more 

additional limit orders, as necessary, are 

routed by the entering Participant to 

execute against the full displayed size of 

any Protected Quotation with a price 

that is superior to the price of the Order 

identified as an Intermarket Sweep 

Order (as defined in Rule 600(b) under 

Regulation NMS). These additional 

routed orders must be identified as 

Intermarket Sweep Orders. 

Upon receipt of an ISO, the System 

will consider the stated price of the ISO 

to be available for other Orders to be 

entered at that price, unless the ISO is 

not itself accepted at that price level (for 

example, a Post-Only Order that has its 

price adjusted to avoid executing 

against an Order on the Exchange Book) 

or the ISO is not Displayed.69

In addition, as described with respect 

to various Order Types, such as the 

Price to Comply Order, Orders on the 

Exchange Book that had their price 

adjusted may be eligible to be reentered 

at the stated price of the ISO. For 

example, if a Price to Comply Order to 

buy at $11 would lock a Protected Offer 

at $11, the Price to Comply Order will 

be posted with a non-displayed price of 

$11 and a displayed price of $10.99. If 

the System then receives an ISO to buy 

at $11, the ISO will be posted at $11 and 

the Price to Comply Order will be 

reentered at $11 (if the Participant opted 

to have its Orders reentered). The 

respective priority of such reentered 

Orders will be maintained among 

multiple repriced Orders; however, 

other new Orders may also be received 

after receipt of the ISO but before the 

repricing of the Price to Comply Order 

is complete; accordingly, the priority of 

an Order on the Exchange Book vis-a`-vis 

a newly entered Order is not 

guaranteed. 

Display 

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.’’ 

Statistics on Order Types Usage 

Although the Exchange, like many 

exchanges, offers a wide range of 

possible combinations of Order Types 

and Order Attributes in order to provide 

options that support of a range of 

legitimate trading strategies, the 

Exchange believes that an analysis of 

the extent of usage of particular Order 

Type permutations is important to 

promoting a deeper understanding of 

current market structure. Based on 

analysis of a month of data for the 

period from August 26, 2013 through 

September 29, 2013, the Exchange offers 

the following observations about the 

usage of different Order Types on its 

market: 

• 38.63% of entered Order volume 

was Price to Comply Orders with no 

Order Attributes other than price and 

size. Such Orders were involved in 

28.38% of execution volume.70

• 0.02% of entered Order volume was 

Post-Only Orders with no Order 

Attributes other than price and size. 

Such Orders were involved in 0.69% of 

execution volume. 

• Non-Displayed Orders with a Timein-Force of IOC and no special Order 

Attributes accounted for 9.84% of 

entered Order volume and 21.58% of 

execution volume. Non-Displayed 

Orders with a Time-in-Force of IOC 

marked as ISOs but with no other 

special Order Attributes accounted for 

1.44% of entered Order volume and 

25.02% of execution volume. 

• Non-Displayed Orders with a Timein-Force longer than IOC but no special 

Order Attributes accounted for 25.58% 

of entered Order volume and 3.25% of 

execution volume. 

• Use of Post-Only Orders marked 

ISO but with no other special Order 

Attributes accounted for less than 

0.01% of entered Order volume and 

execution volume. Price to Comply 

Orders marked ISO but with no other 

special Order Attributes accounted for 

17.8% of entered Order volume and 

13.42% of execution volume. 

• All other Order Type and Order 

Attribute combinations accounted for 

6.68% of entered Order volume and 

7.66% of execution volume. 

Thus, while a range of combinations 

of Order Types and Order Attributes can 

exist on the Exchange, the Exchange 

believes that these data support the 

conclusion that many of these possible 

combinations are not used to any 

appreciable extent. Rather, the vast 

majority of Order entry and Order 

execution volume is attributable to a 

small number of simple combinations: 

IOC Orders designed to access posted 

liquidity and various forms of priced 

limit Orders designed to access 

available liquidity and thereafter post to 

the Exchange Book to provide liquidity, 

which promote price discovery by 

offering displayed liquidity at a price 

that may narrow the bid/offer spread on 

the Exchange and/or provide price 

improvement to subsequent Orders. The 

inclusion of an ISO Order Attribute on 

Orders is done in full compliance with 

Regulation NMS and serves to provide 

notice to the Exchange that liquidity has 

been accessed liquidity on other 

markets at a given price level in order 

to allow it to post liquidity on the 

Exchange at that price. While the 

Exchange does not believe that its Order 

Type offerings are excessively complex, 

given the relatively limited usage of 

certain Order Types and Order 

Attributes, the Exchange is continuing 

to analyze whether changes may be 

made to eliminate any Order Types, 

Order Attributes, or permissible 

combinations in a manner that would 

further promote the goals of 

transparency and ease of use for 

Participants. 


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71 15 U.S.C. 78f. 

72 15 U.S.C. 78f(b)(5). 

73 15 U.S.C. 78k–1(a)(1). 

74SR–NYSE–2014–32 Approval Order. 

75 Due to BX’s current pricing structure, PostOnly Orders priced at $1 or more are executable 

against Orders on the Exchange Book. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the Act,71

in general, and with Section 6(b)(5) of 

the Act 72 in particular, in that the 

proposal is designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in regulating, clearing, settling, 

processing information with respect to, 

and facilitating transactions in 

securities, 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. The 

proposed rule change also is designed to 

support the principles of Section 

11A(a)(1) 73 of the Act in that it seeks to 

assure fair competition among brokers 

and dealers and among exchange 

markets. In particular, the Exchange 

believes that the reorganized and 

enhanced descriptions of its Order 

Types, Order Attributes, and related 

System functionality will promote just 

and equitable principles of trade and 

perfect the mechanisms of a free and 

open market and the national market 

system by providing greater clarity 

concerning certain aspects of the 

System’s operations. The Exchange 

further believes that the proposed rule 

change will contribute to the protection 

of investors and the public interest by 

making the Exchange’s rules easier to 

understand. The Exchange further 

believes that the proposed rules, 

together with the presented statistics 

regarding Order Type and Order 

Attribute usage, will promote the 

efficient execution of investor 

transactions and further enhance public 

understanding of the Exchange’s 

operations, and thereby strengthen 

investor confidence in the Exchange and 

in the national market system. In 

addition, the Exchange believes that 

additional specificity in its rules will 

promote a better understanding of the 

Exchange’s operation, thereby 

facilitating fair competition among 

brokers and dealers and among 

exchange markets. 

Most of the System functionality 

described in the proposed rule change 

has already been described in previous 

proposed rule changes by the Exchange 

and approved or permitted to take effect 

on an immediate basis by the 

Commission. However, the Exchange 

believes that the reiteration of several 

principles underlying its Order Types 

and Order Attributes might be helpful in 

promoting a fuller understanding of 

these rules’ operation and their 

consistency with the Act. 

The functionality underlying Price to 

Comply Orders and Price to Display 

Orders provides a means by which 

Participants may enter a displayed limit 

order in compliance with Regulation 

NMS without the Participant 

definitively ascertaining whether the 

price of the Order would lock or cross 

a Protected Quotation. In the absence of 

the repricing functionality associated 

with the Order, the Exchange would 

need to reject the Order if it locked or 

crossed a Protected Quotation. 

By accepting a Price to Comply Order 

with a locking, non-displayed price and 

displayed price that is one minimum 

increment inferior to the locking price, 

the Exchange allows this Order Type to 

achieve several purposes. First, the 

displayed price of the Order promotes 

price discovery by establishing a new 

NBBO or adding to liquidity available at 

the NBBO. Second, the non-displayed 

price of the Order allows the Order to 

provide price improvement when the 

Order is executed. A Price to Display 

Order similarly promotes price 

discovery by establishing a new NBBO 

or adding liquidity available at the 

NBBO. It also provides one of the Order 

Types through which a Market Maker 

may offer displayed liquidity that is 

Attributable to its MPID. Notably, given 

the price adjustment functionality of the 

Order, it allows a Market Maker to offer 

Attributable liquidity at the NBBO. 

In addition, the repricing 

functionality associated with Price to 

Comply Orders and Price to Display 

Orders, whereby an Order that has been 

repriced by the System upon entry may 

be cancelled or reentered if a previously 

unavailable price level becomes 

available, promotes price discovery and 

provision of greater liquidity by 

facilitating the display of an Order at its 

chosen limit price. Because a reentered 

Order always receives a new timestamp, 

moreover, the functionality does not 

present fairness concerns that might 

arise if an Order that was not displayed 

became displayed at a different price 

level while retaining the timestamp that 

it received when originally entered. 

The Non-Displayed Order provides a 

means by which Participants may access 

and/or offer liquidity without signaling 

to other Participants the extent of their 

trading interest. Moreover, because the 

Non-Displayed Order may lock a 

Protected Quotation, it provides a 

means by which a Participant may 

provide price improvement. For 

example, if the Best Bid was $11 and the 

Best Offer was $11.01, a Non-Displayed 

Order to buy at $11.01 would provide 

$0.01 price improvement to an 

incoming sell Order priced at the Best 

Bid. 

In addition, the repricing 

functionality associated with NonDisplayed Order promotes provision of 

greater liquidity and eventual price 

discovery (via reporting of Order 

executions) because it facilitates the 

posting of a Non-Displayed Order at its 

chosen limit price. In addition, the 

functionality that cancels NonDisplayed Orders when crossed by a 

Protected Quotation helps to prevent 

trade-throughs by ensuring that a NonDisplayed Order will not execute at a 

price inferior to the Price of a Protected 

Quotation. Because a reentered Order 

always receives a new timestamp, 

moreover, the functionality does not 

present fairness concerns that might 

arise if an Order was able to move price 

while retaining an earlier timestamp. 

The primary purpose of Post-Only 

Orders is to ‘‘provide displayed 

liquidity to the market and thereby 

contribute to public price discovery—an 

objective that is fully consistent with 

the Act.’’ 74 The Post-Only Order also 

allows a Participant to control its 

trading costs by giving consideration to 

such costs when determining if the 

Order may be executed. However, the 

manner in which the Post-Only Order 

operates ensures that a Post-Only Order 

that locks or crosses an Order on the 

Exchange Book will either execute upon 

entry or post at a displayed price that 

potentially provides liquidity.75

Moreover, because a Post-Only Order 

does not cancel back to the Participant 

if it cannot post or execute at its limit 

price, it does not provide a means to 

ascertain the existence of locking or 

crossing Orders without also reflecting a 

commitment to execute or post and 

display. Similarly, the functionality that 

allows a Post-Only Order to be marked 

IOC does not provide information 

regarding the existence of locking or 

crossing Orders on the Exchange Book 

since the Order has its price adjusted 

automatically, without reference to the 

price of any other Orders other than 

Orders at the NBBO. 

In addition, the processing of PostOnly Orders with respect to locking or 

crossing Protected Quotations serves the 

same purposes as the processing 

discussed above with respect to Price to 

Comply Orders and Price to Display 


tkelley on DSK4VPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 65 / Monday, April 6, 2015 / Notices 18489 

76See SR–NYSE–2014–32 Approval Order 

(affirming that exchanges may adopt rules allowing 

market participants to ‘‘ship and post’’). 

Orders. By accepting a Non-Attributable 

Post-Only Order that locks or crosses a 

Protected Quotation with a locking, 

non-displayed price and displayed price 

that is one minimum increment inferior 

to the locking price, the Exchange 

allows the displayed price of the Order 

to promote price discovery by 

establishing a new NBBO or adding to 

liquidity available at the NBBO, while 

also allowing the non-displayed price of 

the Order to provide price improvement 

when the Order is executed. An 

Attributable Post-Only Order similarly 

promotes price discovery by 

establishing a new NBBO or adding 

liquidity available at the NBBO. 

The repricing functionality associated 

with Post-Only Orders, whereby an 

Order that has been repriced by the 

System upon entry may be cancelled or 

reentered if a previously unavailable 

price level becomes available, promotes 

price discovery and provision of greater 

liquidity by facilitating the display of an 

Order at its chosen limit price. Because 

a reentered Order always receives a new 

timestamp, moreover, the functionality 

does not present fairness concerns that 

might arise if an Order that was not 

displayed became displayed at a 

different price level while retaining the 

timestamp that it received when 

originally entered. 

A Post-Only Order may be designated 

as an ISO and accepted at a price that 

locks or crosses a Protected Quotation, 

since such designation reflects a 

representation by the Participant that it 

has simultaneously routed one or more 

additional limit orders, as necessary, to 

execute against the full displayed size of 

any Protected Quotations that the PostOnly Order would lock or cross.76

Because the Exchange maintains an 

active regulatory surveillance and 

enforcement program to verify that 

Participants are not improperly 

designating Orders as ISOs, the 

possibility for a Participant to 

systematically use a Post-Only Order 

marked ISO to occupy a price level 

while locking Protected Quotations is 

mitigated. Moreover, the System does 

not interpret a Post-Only Order that is 

marked ISO but that has its price 

adjusted prior to posting as the basis for 

accepting additional Orders at the 

Order’s limit price level, thereby 

providing further assurance against the 

use of an ISO designation for an 

improper purpose. 

Retail Orders and RPI Order provide 

a mechanism for all Participants to offer, 

and Participants representing retail 

customers to receive, price 

improvement of at least $0.001. The 

Exchange believes that the Order Types 

may therefore reduce trading costs for 

such retail customers and encourage the 

interaction of their Orders in an 

exchange-trading environment. 

Several of the available Order 

Attributes merely provide means to 

designate the basic parameters of any 

Order: These include price, size, Timein-Force, Attribution, and Display. The 

proposed rules clearly state limitations 

applicable to each of these parameters, 

such as available Times-in-Force and 

limitations on the permissible prices 

and sizes of Orders. 

The Pegging Order Attribute allows a 

Participant to have the System adjust 

the price of the Order continually in 

order to keep the price within defined 

parameters. Thus, the System performs 

price adjustments that would otherwise 

be performed by the Participant through 

cancellation and reentry of Orders. The 

fact that a new timestamp is created for 

a Pegged Order whenever it has its price 

adjusted allows the Order to seek 

additional execution opportunities and 

ensures that the Order does not ‘‘jump 

the queue’’ with respect to any Orders 

that were previously at the Pegged 

Order’s new price level. Thus, while the 

Order Attribute may be seen as 

introducing additional complexity with 

respect to the operation of the Exchange, 

it is in effect merely a process for 

removing and entering Orders at new 

prices based on changed market 

conditions. 

The Minimum Quantity Order 

Attribute allows a Participant that may 

wish to buy or sell a large amount of a 

security to avoid signaling its trading 

interest unless it can purchase a certain 

minimum amount. Thus, the Order 

Attribute supports the interest of 

institutional investors and others in 

being able to minimize the impact of 

their trading on the price of securities. 

The Routing Order Attribute, which is 

thoroughly described in existing Rule 

4758, provides an optional means by 

which a Participant may direct the 

Exchange to seek opportunities to 

execute an Order at other market 

centers. The System is designed to 

pursue execution opportunities on 

behalf of Participants in an aggressive 

manner by, in most instances, first 

obtaining shares available on the 

Exchange Book, then routing to other 

market centers in accordance with the 

strategy designated by the Participant, 

then returning the Exchange Book as if 

a new Order before posting to the 

Exchange Book. In addition, to 

maximize execution opportunities, the 

System will, as appropriate and in 

accordance with Regulation NMS, 

designate a Routable Order as an 

Intermarket Sweep Order. 

The Discretion Order Attribute allows 

a Participant to expand opportunities 

for an Order to access liquidity by 

allowing it to execute at any price 

within a specified range. Thus, while 

there is some complexity associated 

with the processing of Discretionary 

Orders, the Order Attribute merely 

allows the System to ascertain whether, 

under the conditions provided for in the 

rule, the Participant could access 

liquidity at a price within the range that 

the Participant has designated. If so, the 

Order Attribute generates an IOC Order 

to access the liquidity. Moreover, it 

should be noted that although in some 

circumstances, the System will examine 

Orders on the Exchange Book that are 

not Displayed to ascertain the existence 

of execution opportunities, the System 

would convey information to the 

Participant regarding such Orders only 

by executing against them. Thus, the 

discretionary price range reflects an 

actionable commitment by the 

Participant to trade at prices in that 

range. As a result, the Order Attribute 

promotes price discovery through 

executions that occur in the price range. 

Finally, it should be noted that 

Discretionary IOCs access liquidity. 

Because the Exchange has a ‘‘taker/

maker’’ pricing structure under which 

liquidity accessing Orders receive a 

rebate, the Order Attribute does allow a 

Participant to obtain a rebate with 

respect to executions against previously 

posted Orders; however, this aspect of 

the Order Attribute is fully consistent 

with the Exchange’s overall pricing 

structure. 

The Reserve Size Order Attribute 

allows a Participant to display trading 

interest at a given price while also 

posting additional non-displayed 

trading interest. The functionality 

assists the Participant in managing this 

trading interest by eliminating the need 

for the Participant to enter additional 

size following the execution of the 

displayed trading interest. Thus, the 

functionality achieves a balance 

between promoting price discovery 

through displayed size and allowing a 

Participant to guard against price impact 

by hiding the full extent of its trading 

interest. The random reserve feature of 

the Order further assists a Participant in 

not revealing the extent of its trading 

interest because it diminishes the 

likelihood that other Participants will 

conclude that the Order is a Reserve 

Size Order if they repeatedly view it 

being replenished at the same size. 

Similarly, the manner in which the 

Exchange disseminates data regarding 


tkelley on DSK4VPTVN1PROD with NOTICES
18490 Federal Register / Vol. 80, No. 65 / Monday, April 6, 2015 / Notices 

77SR–NYSE–2014–32 Approval Order. 

78 Id. 79 17 CFR 200.30–3(a)(12). 

the execution and replenishment of a 

Reserve Size Order ensures that the 

process is indistinguishable to other 

Participants from the execution of an 

Order without Reserve Size followed by 

the entry of a new Order; this processing 

also ensures that only the displayed 

portion of the Reserve Size Order is 

treated as a Protected Quotation. 

The Intermarket Sweep Order 

attribute is a function of Regulation 

NMS, which provides for an Order to 

execute without respect to Protected 

Quotations if it is designated as an ISO 

and if one or more additional limit 

orders, as necessary, are routed to 

execute against the full displayed size of 

any Protected Quotation with a price 

that is superior to the price of the Order 

identified as an ISO. As recently 

reaffirmed by the Commission, 

Regulation NMS allows such additional 

orders to be routed by an exchange or 

by the Participant that enters the ISO.77

Accordingly, the exchange receiving an 

ISO may accept the receipt of the Order 

as a representation that the Participant 

entering it has satisfied its obligations; 

provided, however, that the exchange 

itself maintains a surveillance and 

enforcement program to verify that the 

Participant is not acting in violation of 

this requirement. For this reason, it is 

also consistent with the Act for a 

Participant to designate an Order with a 

Time-in-Force longer than IOC, or an 

Order with functionality such as the 

Post-Only Order, as an ISO.78

Specifically, attaching an ISO 

designation to such Order reflects a 

representation that the Participant has 

determined that Protected Quotations at 

the price of the Order have been 

eliminated, such that the Order is 

entitled to post and provide liquidity. In 

the case of a Post-Only Order, however, 

if the Order’s price is adjusted to avoid 

executing against an Order on the 

Exchange Book, the Exchange will not 

consider the ISO designation in 

determining whether the Post-Only 

Order’s limit price level is now open, 

since the Post-Only ISO itself is not 

actually posting at that price. 

Accordingly, in that circumstance the 

use of a Post-Only ISO cannot be used 

to open a price level to additional 

Orders unless the Exchange ascertains 

through market data provided by other 

exchanges that the price level actually is 

open. 

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 that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. As 

previously stated, the Exchange is not 

proposing substantively to modify the 

operation of any of its current Order 

Types or Order Attributes or the 

operation of the System; rather, the 

proposed rule change is intended to 

provide more detail regarding the 

System’s functionality. The proposed 

rule change is not designed to address 

any competitive issues, but rather to 

provide additional specificity and 

transparency to Participants and the 

investing public regarding the 

Exchange’s Order Types, Order 

Attributes, and System functionality. 

Since the Exchange does not proposed 

substantively to modify the operation of 

Order Types, Order Attributes, or 

System functionality, the proposed 

changes will not impose any burden on 

competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the Exchange consents, 

the Commission shall: (a) By order 

approve or disapprove such proposed 

rule change, or (b) institute proceedings 

to determine whether the proposed rule 

change should be 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– 

BX–2015–015 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–BX–2015–015. 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 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 such filing 

also will be available for inspection and 

copying at the principal offices of the 

Exchange. 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–BX– 

2015–015, and should be submitted on 

or before April 27, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.79

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–07750 Filed 4–3–15; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF STATE 

[Public Notice: 9080] 

Determination and Certification Under 

Section 490(b)(1)(A) of the Foreign 

Assistance Act Relating to the Largest 

Exporting and Importing Countries of 

Certain Precursor Chemicals 

Pursuant to Section 490(b)(1)(A) of 

the Foreign Assistance Act of 1961, as 

amended, I hereby determine and certify 

that the top five exporting and 

importing countries and economies of 

pseudoephedrine and ephedrine (China, 

Denmark, Egypt, Germany, India, 


tkelley on DSK4VPTVN1PROD with NOTICES