582 Federal Register / Vol. 80, No. 3 / Tuesday, January 6, 2015 / Notices 

36 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 73266 

(September 30, 2014), 79 FR 60207 (‘‘Notice’’). 

4See Securities Exchange Act Release No. 73621, 

79 FR 69957 (November 24, 2014). 

5See letter to SEC from James J. Angel, Associate 

Professor of Finance, Georgetown University, dated 

November 26, 2014 (‘‘Angel Letter’’). 

participants, to the benefit of investors 

and the marketplace. As noted above, 

the Exchange has in place surveillance 

procedures relating to trading in the 

Shares and may obtain information via 

ISG from other exchanges that are 

members of ISG or with which the 

Exchange has entered into a 

comprehensive surveillance sharing 

agreement. In addition, as noted above, 

investors will have ready access to 

information regarding the Fund’s 

holdings, the IOPV, the Disclosed 

Portfolio, and quotation and last sale 

information for the Shares. 

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 purpose of the Act. The Exchange 

notes that the proposed rule change will 

facilitate the listing and trading of an 

additional type of actively-managed 

exchange-traded product that will invest 

in multiple asset classes and that will 

enhance competition among market 

participants, to the benefit of investors 

and the marketplace. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the self-regulatory organization 

consents, the Commission will: 

(A) By order approve or disapprove 

the 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– 

NYSEArca–2014–143 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–NYSEArca–2014–143. 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 

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

filing will also be available for 

inspection and copying at the principal 

office 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– 

NYSEArca–2014–143 and should be 

submitted on or before January 27, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.36

Brent J. Fields, 

Secretary. 

[FR Doc. 2014–30894 Filed 1–5–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73959; File No. SR– 

NASDAQ–2014–095] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Order 

Granting Approval of Proposed Rule 

Change To Provide a New Optional 

Functionality to Minimum Quantity 

Orders 

December 30, 2014. 

I. Introduction 

On September 18, 2014, The 

NASDAQ Stock Market LLC 

(‘‘NASDAQ’’ or ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

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

19b–4 thereunder,2 a proposed rule 

change to amend NASDAQ Rule 

(‘‘Rule’’) 4751(f)(5) to provide a new 

optional functionality for Minimum 

Quantity Orders. The proposed rule 

change was published for comment in 

the Federal Register on October 6, 

2014.3 On November 18, 2014, the 

Commission extended to January 4, 

2015, the time period in which to 

approve the proposed rule change, 

disapprove the proposed rule change, or 

institute proceedings to determine 

whether the proposed rule change 

should be disapproved.4 The 

Commission received one comment 

letter regarding the proposed rule 

change.5 This order approves the 

proposed rule change. 

II. Description of the Proposal 

A Minimum Quantity Order (‘‘MQO’’) 

allows a market participant to specify a 

minimum share amount at which it will 

execute. A MQO will not execute unless 

the volume of contra-side liquidity 

available to execute against the order 

meets or exceeds the designated 

minimum. A MQO received by the 

Exchange will execute immediately if 

there is sufficient liquidity available on 

the Exchange within the limit price of 

the order. In addition, multiple orders 

may be aggregated to meet the minimum 

quantity. For example, a MQO will 

execute if the sum of the shares of one 

or more orders is equal to or greater than 

its minimum quantity. If a MQO does 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 3 / Tuesday, January 6, 2015 / Notices 583 

6See Notice, 79 FR at 60209. 7See proposed Rule 4751(f)(5); see also Notice, 79 

FR at 60208. 8See proposed Rule 4751(f)(5); see also Notice, 79 

FR at 60209. The Exchange represents that the 

proposed functionality already exists on other 

trading venues. See Notice, 79 FR at 60208–09. 9 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

formation. See 15 U.S.C. 78c(f). 

10 15 U.S.C. 78f(b)(5). 

11See Notice, 79 FR at 60208, 60210. 

12 Id. at 60210. 

13See Angel Letter, supra note 5. 

14 Id. 

15 Id. 

16 15 U.S.C. 78s(b)(2). 

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 73261 

(September 30, 2014), 79 FR 60226 (‘‘Notice’’). 

4See Securities Exchange Act Release No. 73614 

(November 17, 2014), 79 FR 69547 (November 21, 

2014). 

5See Letter from John Kinahan, Chief Executive 

Officer, Group One Trading, L.P., dated October 27, 

2014 (‘‘Group One Letter’’). 

6See Letter from Michael J. Simon, Secretary and 

General Counsel, International Securities Exchange, 

LLC, dated November 14, 2014 (‘‘ISE Response 

Letter’’). 

7 15 U.S.C. 78s(b)(2)(B). 

not execute immediately due to lack of 

contra-side liquidity that is equal to or 

greater than the designated minimum, 

the order will post to the NASDAQ 

order book as a Non-Displayed Order. 

Once posted, a MQO will execute only 

if an incoming order is marketable 

against the resting MQO and is equal to 

or greater than the minimum quantity 

set on the resting MQO. Once posted, 

multiple orders cannot be aggregated to 

meet the minimum quantity 

requirement of the Minimum Quantity 

Order. If a MQO executes partially and 

the number of shares remaining is less 

than the minimum quantity of the order, 

the minimum quantity of the order is 

reduced to the remaining share size. If 

a MQO is received that is marketable 

against a resting contra-side order with 

size that does not meet the minimum 

quantity requirement, the MQO will be 

posted on the book as a Non-Displayed 

Order at the locking price. 

The Exchange proposes to offer an 

optional order handling functionality 

that would permit an incoming MQO to 

forego executions where multiple 

resting orders could otherwise be 

aggregated to satisfy the minimum 

quantity designation. Under the 

proposed functionality, a MQO would 

only execute against a single contra-side 

order that would equal or exceed the 

minimum quantity designation of the 

MQO.6 In addition, if the minimum 

quantity designation of an incoming 

MQO could not be satisfied by a resting 

contra-side order, the MQO would be repriced one minimum price increment 

away from the resting liquidity and 

posted to the NASDAQ order book as a 

Non-Displayed Order.7 If an incoming 

MQO receives a partial execution, the 

remainder of the order would be 

cancelled if it would lock resting contraside liquidity that does not meet the 

minimum quantity designation.8

III. Discussion and Commission 

Findings 

After careful review, the Commission 

finds that the proposed rule change is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 

securities exchange.9 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,10 which requires, 

among other things, that the rules of a 

national securities exchange be 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest; and 

are not designed to permit unfair 

discrimination between customers, 

issuers, brokers or dealers. 

The Exchange represents that some 

market participants have indicated that 

they currently avoid routing larger 

orders to NASDAQ due to the concern 

that such orders may interact against 

small orders entered by professional 

traders, potentially resulting in more 

expensive transactions. The Exchange 

represents that the optional minimum 

execution size functionality proposed 

for MQOs should enhance the utility of 

such orders for market participants and 

should facilitate the entry of larger 

MQOs on the Exchange.11 Specifically 

the Exchange believes that the proposed 

functionality would provide market 

participants, including institutional 

firms that ultimately represent 

individual retail investors in many 

cases, with better control over MQOs, 

thereby enhancing the potential to 

improve execution quality.12

The Commission notes that a 

commenter expressed strong support for 

the proposal.13 In particular, the 

commenter states that the proposed rule 

change would benefit institutional 

investors, such as mutual funds that 

invest on behalf of retail investors, by 

minimizing their transaction costs.14

For example, according to the 

commenter, the proposed functionality 

would improve large investors’ ability to 

manage their orders and thereby obtain 

better execution quality.15

The Commission believes that the 

proposal should provide market 

participants with enhanced capability to 

manage their order flow. For the reasons 

noted above, the Commission believes 

that the proposed rule change is 

consistent with the Act. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,16 that the 

proposed rule change (SR–NASDAQ– 

2014–095) be, and it hereby is, 

approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Brent J. Fields, 

Secretary. 

[FR Doc. 2014–30895 Filed 1–5–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Release No. 34–73973; File No. SR– 

ISE–2014–43] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Order Instituting Proceedings To 

Determine Whether To Approve or 

Disapprove a Proposed Rule Change 

Amending its Information Barrier Rules 

December 31, 2014. 

I. Introduction 

On September 15, 2014, International 

Securities Exchange, LLC (‘‘Exchange’’ 

or ‘‘ISE’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’), 

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

Securities Exchange Act of 1934 

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

proposed rule change amending its 

information barrier rules. The proposed 

rule change was published for comment 

in the Federal Register on October 6, 

2014.3 On November 17, 2014, the 

Commission extended the time period 

in which to either approve the Proposal, 

disapprove the Proposal, or institute 

proceedings to determine whether to 

approve or disapprove the proposed 

rule change to January 2, 2015.4 The 

Commission received one comment 

letter regarding the proposed rule 

change 5 and one response letter from 

ISE.6 This order institutes proceedings 

under Section 19(b)(2)(B) of the Act 7 to 

determine whether to approve or 

disapprove the proposed rule change. 


tkelley on DSK3SPTVN1PROD with NOTICES