41138 Federal Register / Vol. 86, No. 144 / Friday, July 30, 2021 / Notices 

31 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Exchange may designated a shorter time 

provided it is disseminated to membership on the 

Exchange’s website. 

4 In the case of index options, the timing is within 

two minutes of the receipt of the opening price in 

the underlying index or within two minutes of 

market opening for the underlying security in the 

case of U.S. dollar-settled foreign currency options. 

In both cases the Exchange may designated a 

shorter time provided it is disseminated to 

membership on the Exchange’s website. 

5The Exchange proposes an amendment within 

Options 3, Section 8(c)(1)(B) as described below. 

6 In the case of index options, a Primary Market 

Maker must enter a Valid Width Quote in 90% of 

their assigned series, not later than one minute 

following the receipt of the opening price in the 

underlying index. The Primary Market Maker 

assigned in a particular U.S. dollar-settled foreign 

currency option must enter a Valid Width Quote, 

in 90% of their assigned series, not later than one 

minute after the announced market opening. See 

Options 3, Section 8(c)(3). The Exchange proposes 

to make a technical amendment to Options 3, 

Section 8(c)(3) which is described below. 

7 In the case of index options, Primary Market 

Makers must promptly enter a Valid Width Quote 

in the remainder of their assigned series, which did 

not open following the receipt of the opening price 

in the underlying index or, with respect to U.S. 

dollar-settled foreign currency options, following 

the announced market opening. See Options 3, 

Section 8(c)(3). 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 

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

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–Phlx–2021–42 and should 

be submitted on or before August 20, 

2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.31

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–16231 Filed 7–29–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92491; File No. SR–MRX– 

2021–09] 

Self-Regulatory Organizations; Nasdaq 

MRX, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend the Opening 

Process 

July 26, 2021. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on July 19, 

2021, Nasdaq MRX, LLC (‘‘MRX’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘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 

The Exchange proposes to amend 

MRX Options 3, Section 8, ‘‘Options 

Opening Process.’’ 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/mrx/rules, at the principal 

office of the Exchange, and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

MRX proposes to amend Options 3, 

Section 8, ‘‘Options Opening Process.’’ 

Specifically, the Exchange proposes to 

amend the definition of Valid Width 

Quote at Options 3, Section 8(a)(8). 

MRX’s Opening Process for an option 

series is conducted pursuant to Options 

3, Section 8 paragraphs (f)–(j), on or 

after 9:30 a.m. Eastern the ABBO, if any, 

is not crossed and the System has 

received, within two minutes 3 of the 

opening trade or quote on the market for 

the underlying security,4 a Valid Width 

Quote. The System will accept a 

Primary Market Maker’s Valid Width 

Quote or the Valid Width Quote of at 

least one Competitive Market Maker.5

Today, MRX requires a Primary Market 

Maker to enter a Valid Width Quote in 

90% of their assigned series, not later 

than one minute following the 

dissemination of a quote or trade by the 

market for the underlying security.6

Primary Market Makers must promptly 

enter a Valid Width Quote in the 

remainder of their assigned series, 

which did not open within one minute 

following the dissemination of a quote 

or trade by the market for the 

underlying security.7 In either case, the 

Primary Market Maker or Competitive 

Market Maker must enter a Valid Width 

Quote to open an options series. MRX 

Options 3, Section 8(a)(8) defines a 

Valid Width Quote as follows: 

A ‘‘Valid Width Quote’’ is a two-sided 

electronic quotation submitted by a 

Market Maker that meets the following 

requirements: Differentials shall be no 

more than $.25 between the bid and 

offer for each options contract for which 

the bid is less than $2, no more than 

$.40 where the bid is at least $2 but does 

not exceed $5, no more than $.50 where 

the bid is more than $5 but does not 

exceed $10, no more than $.80 where 

the bid is more than $10 but does not 

exceed $20, and no more than $1 where 

the bid is $20 or greater, provided that, 

in the case of equity options, the bid/ask 

differentials stated above shall not apply 

to in-the-money series where the market 

for the underlying security is wider than 

the differentials set forth above. The 

bid/ask differentials for in-the-money 

options series may be as wide as the 

quotation for the underlying security on 

the primary market, or its decimal 

equivalent rounded down to the nearest 

minimum increment. The Exchange 

may establish differences other than the 

above for one or more series or classes 

of options. 

The Exchange proposes to amend a 

Valid Width Quote to instead provide: 

A ‘‘Valid Width Quote’’ is a two-sided 

electronic quotation submitted by a 

Market Maker that meets the following 

requirements: Differentials shall be no 

more than $5, provided that, in the case 

of equity options, the bid/ask 

differential stated above shall not apply 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 86, No. 144 / Friday, July 30, 2021 / Notices 41139 

8BX Options 3, Section 8(a)(9) provides, ‘‘A 

‘Valid Width Quote’ is a two-sided electronic 

quotation, submitted by a Market Maker, quoted 

with a difference not to exceed $5 between the bid 

and offer regardless of the price of the bid. 

However, respecting in-the-money series where the 

market for the underlying security is wider than $5, 

the bid/ask differential may be as wide as the 

quotation for the underlying security on the 

primary market, or its decimal equivalent rounded 

down to the nearest minimum increment. The 

Exchange may establish differences other than the 

above for one or more series or classes of options.’’ 

See also Securities Exchange Act Release No. 89731 

(September 1, 2020), 85 FR 55524 (September 8, 

2020) (SR–BX–2020–016) (Order Approving 

Proposed Rule Change To Amend BX’s Opening 

Process in Connection With a Technology 

Migration). 

9MRX Options 2, Section 4(b)(4) provides, ‘‘. . . 

To price options contracts fairly by, among other 

things, bidding and offering so as to create 

differences of no more than $5 between the bid and 

offer following the opening rotation in an equity or 

index options contract. The Exchange may establish 

differences other than the above for one or more 

series or classes of options.’’ Intra-day, MRX also 

distinguishes in-the-money options series where the 

underlying securities market is wider than the 

differentials set forth above. For these series, the 

bid/ask differential may be as wide as the spread 

between the national best bid and offer in the 

underlying security. 

10See https://www.nasdaq.com/docs/2021/03/22/ 

MRXSystemSetting.pdf. 

11 Id. 

12See Securities Exchange Act Release No. 88660 

(April 16, 2020), 85 FR 22482 (April 22, 2020) (SR– 

MRX–2020–09) (Notice of Filing and Immediate 

Effectiveness of Proposed Rule Change To Amend 

Options 3, Section 8, Relating to the Options 

Opening Process). 

13 15 U.S.C. 78f(b). 

14 15 U.S.C. 78f(b)(5). 

15 Id. 

16See supra note 10. 

17Today, MRX, Nasdaq GEMX, LLC (‘‘GEMX’’), 

Nasdaq ISE, LLC (‘‘ISE’’), Nasdaq Phlx LLC 

(‘‘Phlx’’), Miami International Securities Exchange, 

LLC (‘‘MIAX’’) and MIAX Emerald, LLC 

(‘‘Emerald’’) and are the only options markets that 

require a Primary Market Maker, or Lead Market 

Maker in the case of Phlx, to submit a quote to open 

an options series. 

to in-the-money series where the market 

for the underlying security is wider than 

the differential set forth above. The bid/ 

ask differentials for in-the-money 

options series may be as wide as the 

quotation for the underlying security on 

the primary market, or its decimal 

equivalent rounded down to the nearest 

minimum increment. The Exchange 

may establish differences other than the 

above for one or more series or classes 

of options. Such differences will be 

posted by the Exchange on its website. 

This proposed language is similar to 

Nasdaq BX, Inc. (‘‘BX’’).8 The Exchange 

proposes to widen the current bid/ask 

differentials for several reasons. 

First, the proposal would conform the 

Valid Width Quote definition of MRX to 

that of BX. BX refers to a difference not 

to exceed $5 between the bid and offer 

within the description of a Valid Width 

Quote, similar to BX Options 2, Section 

4(f) and 5(d)(2) that describes intra-day 

quotes. By amending MRX’s Valid 

Width Quote, the Exchange notes that 

the $5 difference is akin to MRX’s intraday requirement within MRX Options 2, 

Section 4(b)(4).9

Second, the proposed differential 

would simplify the differential for 

Primary Market Makers, who would 

continue to be required to submit a 

Valid Width Quote during the Opening 

Process in their assigned options series. 

Widening the differentials would allow 

Primary Market Makers and Competitive 

Market Makers that elect to quote during 

the Opening Process, an ability to quote 

wider during the Opening Process when 

an underlying is volatile. Today, 

pursuant to Options 3, Section 8(a)(8), 

the Exchange may establish differences 

other than the established bid/ask 

differentials for one or more series or 

classes of options. With this proposal, 

the Exchange is not amending its ability 

to continue to establish differences for 

one or more series or classes of options, 

rather the Exchange may continue to set 

other requirements pursuant to current 

MRX Options 3, Section 8(a)(8). Today, 

the Exchange has established Valid 

Width Quote differentials which differ 

from those described within Options 3, 

Section 8(a)(8),10 they are: 

Bid price low 

end of 

Bid price high 

end of 

Maximum 

bid/ask 

differential 

$0.00 $1.99 $0.75 

2.00 4.99 1.20 

5.00 9.99 1.50 

10.00 19.99 2.40 

20.00 20.00+ 3.00 

Also, options with an expiration more 

than nine months away continue to be 

permitted a Valid Width Quote bid/ask 

differential of $5.00. The Exchange will 

continue to utilize the differentials 

currently posted on its website until 

such time as it provides notice to 

Members of a change. 

Third, the Exchange also proposes to 

add rule text to state that such 

differences will be posted by the 

Exchange on its website.11 Posting the 

current differentials on its website 

would allow Members to easily refer to 

the quoting obligations for the Opening 

Process. 

Technical Amendment 

The Exchange proposes to amend 

‘‘Quotes’’ to ‘‘Quote’’ within Options 3, 

Section 8(c)(1)(B). The Exchange also 

proposes to remove two incorrect 

citations to Options 3, Section 

8(c)(1)(iii). The ‘‘iii’’ was removed in a 

prior rule change.12

2. Statutory Basis 

The Exchange believes that its 

proposal to establish a $5 difference is 

consistent with Section 6(b) of the 

Act.13 Specifically, the Exchange 

believes the proposed rule change is 

consistent with the Section 6(b)(5) 14

requirements that the rules of an 

exchange be 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. 

Additionally, the Exchange believes the 

proposed rule change is consistent with 

the Section 6(b)(5) 15 requirement that 

the rules of an exchange not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

The Exchange believes that the 

proposed $5 difference for the Valid 

Width Quote is more appropriate 

because it reflects the Exchange’s 

experience in administering the rule 

and would continue to give Market 

Makers flexibility including during the 

Opening Process. The Exchange notes 

that the current standard is not being 

applied as the Exchange has established 

Valid Width Quote differentials which 

differ from those described within 

Options 3, Section 8(a)(8).16 Widening 

the Valid Width Quote requirement 

would provide Primary Market Makers, 

and Competitive Market Makers that 

elect to quote during the Opening 

Process, additional flexibility when 

submitting Valid Width Quotes during 

the Opening Process thereby allowing 

these Market Makers the ability to quote 

wider in instances where the Exchange 

has not established Valid Width Quote 

differentials which differ from those in 

the rule because volatile market 

conditions exist or there is news 

regarding an underlying security which 

may impact pricing. Primary Market 

Makers are integral to the Exchange’s 

Opening Process as MRX is dependent 

on receiving a Valid Width Quote to 

open an options series. With this 

proposal, Primary Market Makers would 

continue to be required to submit a 

Valid Width Quote during the Opening 

Process in their assigned options 

series.17

The proposal would conform the 

Valid Width Quote definition of MRX to 


lotter on DSK11XQN23PROD with NOTICES1
41140 Federal Register / Vol. 86, No. 144 / Friday, July 30, 2021 / Notices 

18See supra note 8. 

19See supra note 9. 

20MIAX and Emerald require Market Makers to 

submit a valid width NBBO in the opening where 

the bid and offer of the NBBO differ no more than 

differences outlined in MIAX and Emerald Rule 

603(b)(4)(i). MIAX and Emerald Rule 603(b)(4)(i) 

provides that bidding and offering so as to create 

differences of no more than $5 between the bid and 

offer. Rule 603(b)(4)(ii) provides MIAX and Emerald 

may establish differences other than the bid/ask 

differentials described in (i) above for one or more 

option series or classes, respectively. See MIAX and 

Emerald Rules 503. 

21See Securities Exchange Act Release No. 87024 

(September 19, 2019), 84 FR 50545 (September 25, 

2019) (SR–Cboe–2019–059) (‘‘2019 Rule Change’’). 

22 Id. 

23 Id. 

24See Options 3, Section 8(a)(8), the Exchange 

may establish differences other than the established 

bid/ask differentials for one or more series or 

classes of options. 

25See MIAX and Emerald Rules 503. 

26See supra note 17. 

27 Id. 

28See supra note 17 citing the options markets 

that require bid/ask differentials. 

29See SR–ISE–2021–17, SR–GEMX–2021–07 and 

SR-Phlx-2021–42. These rule changes are not yet 

noticed. 

30 15 U.S.C. 78s(b)(3)(A)(iii). 

that of BX.18 BX refers to a difference 

not to exceed $5 between the bid and 

offer within the description of a Valid 

Width Quote, similar to BX Options 2, 

Section 4(f) and 5(d)(2) that describes 

intra-day quotes. By amending MRX’s 

Valid Width Quote, the Exchange notes 

that the $5 difference is akin to MRX’s 

intra-day requirement within MRX 

Options 2, Section 4(b)(4).19 Also, 

today, MIAX and Emerald require 

market makers to enter a valid width 

NBBO with a difference of no more than 

$5 between the bid and offer.20

Not all options markets have bid/ask 

differentials. In 2019, Cboe removed its 

quote width requirements while citing 

corresponding rules of its affiliated 

exchanges.21 Cboe noted in the 2019 

Rule Change that the current quote 

width requirement at the time for 

generally all classes was $10, however, 

its Market-Makers consistently 

maintained two-sided quotes that were 

much tighter than the required width. 

Cboe opined that, even if markets 

experienced periods of stress or 

volatility, they remained obligated to 

maintain two sided markets and engage 

in a course of dealings that must be 

reasonably calculated to contribute to 

the maintenance of a fair and orderly 

market, which includes refraining from 

making bids or offers that are 

inconsistent with such course of 

dealings and updating quotations in 

response to changed market 

conditions.22 Cboe noted that it did not 

believe that continuing to provide for a 

quote width requirement was necessary 

nor would it impact the maintenance of 

fair and orderly markets because 

Market-Makers already quoted at a bid/ 

ask spread much narrower than the 

requirements and were required to 

continuously fulfill their obligations to 

engage in a course of dealings 

reasonably calculated to contribute to 

the maintenance of a fair and orderly 

market.23

Unlike Cboe, MRX does require its 

Market Makers to quote both during the 

Opening Process and intra-day within 

certain established bid/ask differentials. 

The Exchange notes that widening its 

Valid Width Quote differential during 

the Opening Process will not impact the 

maintenance of fair and orderly markets 

because Market Makers on MRX, unlike 

other markets that do not require 

quoting during the Opening Process, 

will continue to require that its Market 

Makers provide Valid Width Quotes 

during the Opening Process, thereby 

ensuring liquidity. Also, Market Makers 

may quote tighter than the defined Valid 

Width Quote differential. Finally, 

similar to Cboe’s argument in the 2019 

Rule Change, Market Makers are 

required to continuously fulfill their 

obligations to engage in a course of 

dealings reasonably calculated to 

contribute to the maintenance of a fair 

and orderly market. 

Today, the Exchange has discretion to 

set other differentials,24 similar to MIAX 

and Emerald.25 The Exchange currently 

is utilizing that discretion to set 

different bid/ask differentials based on 

its observation of market openings. 

Currently, the Exchange requires Market 

Makers to submit Valid Width Quotes 

which are tighter than the proposed $5 

difference. 

The Exchange’s robust Opening 

Process seeks to encourage quality 

markets. As noted herein, unlike a 

majority of options markets,26 it requires 

Primary Market Makers to quote during 

the Opening Process to ensure liquidity 

as well as an efficient Opening Process 

where options series are opened quickly 

and at fair prices. 

The proposal to add rule text to state 

that such differences will be posted by 

the Exchange on its website 27 would 

allow Members to easily refer to the 

quoting obligations for the Opening 

Process. 

Technical Amendment 

The Exchange’s proposal to amend 

‘‘Quotes’’ to ‘‘Quote’’ within Options 3, 

Section 8(c)(1)(B) and remove two 

incorrect citations to Options 3, Section 

8(c)(1)(C) will bring greater clarity to the 

Exchange’s Rules. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange’s proposal to require Primary 

Market Makers and Competitive Market 

Makers to bid and/or offer an option 

series with differences of no more than 

$5 for options on equities and index 

options does not impose an undue 

burden on competition. All Primary 

Market Makers, and Competitive Market 

Makers who elect to quote during the 

Opening Process, would be subject to 

the same requirement to submit a Valid 

Width Quote when submitting quotes 

during the Opening Process. 

Differentials would be available on the 

Exchange’s website and therefore 

transparent, allowing Members to easily 

refer to the quoting obligations for the 

Opening Process. Finally, the proposal 

would also align quoting requirements 

more closely to intra-day requirements 

within MRX Options 2, Section 4(b)(4). 

With respect to inter-market 

competition, the Exchange notes that 

most options markets do not require 

market makers to quote during the 

opening.28 The Exchange notes that 

MIAX and Emerald have quoting 

requirements in the opening similar to 

the differential proposed herein. Also, 

ISE, GEMX and Phlx are filing similar 

rule changes to this proposal.29

Technical Amendment 

Exchange’s proposal to amend 

‘‘Quotes’’ to ‘‘Quote’’ within Options 3, 

Section 8(c)(1)(B) and remove two 

incorrect citations to Options 3, Section 

8(c)(1)(C) will bring greater clarity to the 

Exchange’s Rules. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A)(iii) of the Act 30 and 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 86, No. 144 / Friday, July 30, 2021 / Notices 41141 

31 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

the proposed rule change at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 

32 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Exchange may designated a shorter time 

provided it is disseminated to membership on the 

Exchange’s website. 

4 In the case of index options, the timing is within 

two minutes of the receipt of the opening price in 

the underlying index or within two minutes of 

market opening for the underlying security in the 

case of U.S. dollar-settled foreign currency options. 

In both cases the Exchange may designated a 

shorter time provided it is disseminated to 

membership on the Exchange’s website. 

5The Exchange proposes an amendment within 

Options 3, Section 8(c)(1)(B) as described below. 

6 In the case of index options, a Primary Market 

Maker must enter a Valid Width Quote in 90% of 

their assigned series, not later than one minute 

following the receipt of the opening price in the 

underlying index. The Primary Market Maker 

assigned in a particular U.S. dollar-settled foreign 

currency option must enter a Valid Width Quote, 

in 90% of their assigned series, not later than one 

Continued 

subparagraph (f)(6) of Rule 19b–4 

thereunder.31

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

MRX–2021–09 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–MRX–2021–09. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 

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

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–MRX–2021–09 and should 

be submitted on or before August 20, 

2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.32

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–16226 Filed 7–29–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92495; File No. SR–GEMX– 

2021–07] 

Self-Regulatory Organizations; Nasdaq 

GEMX, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend the Opening 

Process 

July 26, 2021. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on July 19, 

2021, Nasdaq GEMX, LLC (‘‘GEMX’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘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 

The Exchange proposes to amend 

GEMX Options 3, Section 8, ‘‘Options 

Opening Process.’’ 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/gemx/rules, at the principal 

office of the Exchange, and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

GEMX proposes to amend Options 3, 

Section 8, ‘‘Options Opening Process.’’ 

Specifically, the Exchange proposes to 

amend the definition of Valid Width 

Quote at Options 3, Section 8(a)(8). 

GEMX’s Opening Process for an 

option series is conducted pursuant to 

Options 3, Section 8 paragraphs (f)–(j), 

on or after 9:30 a.m. Eastern Time if the 

ABBO, if any, is not crossed and the 

System has received, within two 

minutes 3 of the opening trade or quote 

on the market for the underlying 

security,4 a Valid Width Quote. The 

System will accept a Primary Market 

Maker’s Valid Width Quote or the Valid 

Width Quote of at least one Competitive 

Market Maker.5 Today, GEMX requires 

a Primary Market Maker to enter a Valid 

Width Quote in 90% of their assigned 

series, not later than one minute 

following the dissemination of a quote 

or trade by the market for the 

underlying security.6 Primary Market 


lotter on DSK11XQN23PROD with NOTICES1