Federal Register / Vol. 82, No. 199 / Tuesday, October 17, 2017 / Notices 48301 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 81097 

(July 7, 2017), 82 FR 32386 (July 13, 2017) (SR– 

NASDAQ–2016–161) (approving the proposal as 

modified by Amendment No. 1). 

4Only Designated Retail Orders, as defined by 

Rule 7018, are available for ELO. 

5As defined by Rule 4701(a). 

6See Rule 4756(a)(2). 

7See Rule 4757. To implement ELO’s exception 

to the price/display/time algorithm the Exchange 

proposed amending Rule 4757. See supra note 3. 

8 Id. 

9The Exchange proposed to designate orders with 

the ELO attribute with a new, unique identifier or 

they may alternatively be entered through an order 

port that has been set to designate, by default, all 

orders with the new identifier. Orders marked with 

the new identifier—whether on an order-by-order 

basis or via a designated port—would be 

disseminated via Nasdaq’s TotalView ITCH data 

feed. 

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

11 15 U.S.C. 78f(b)(5). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81855; File No. SR– 

NASDAQ–2017–103] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change to Postpone 

Implementation of a New Attribute for 

Designated Retail Orders 

October 11, 2017. 

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 

September 29, 2017, The NASDAQ 

Stock Market LLC (‘‘Nasdaq’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of the Substance 

of the Proposed Rule Change 

The Exchange proposes to postpone 

implementation of a new attribute for 

designated retail orders 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://nasdaq.cchwallstreet.com/, at 

the principal office of the Exchange, and 

at the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

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

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

On July 7, 2017, the Commission 

approved the Exchange’s new Extended 

Life Priority Order Attribute (‘‘ELO’’).3

ELO will allow certain Displayed 

Orders 4 that are committed to a onesecond or longer resting period to 

receive higher priority than other 

Displayed Orders of the same price on 

the Nasdaq Book. Currently, Nasdaq’s 

System 5 places a time-stamp on each 

Order entered by a member, which 

determines the time ranking of the 

Order for purposes of processing the 

Order.6 The System presents resting 

Orders on the Nasdaq Book for 

execution against incoming Orders in 

accordance with a price/display/time 

algorithm.7 Price means that better 

priced Orders will be presented for 

execution first. The Exchange proposed 

ELO to promote Displayed Orders with 

longer time horizons, thereby enhancing 

the market so that it works for a wider 

array of market participants. 

Implementation of ELO requires the 

Exchange to make an exception to the 

general priority rules 8 so that Displayed 

Orders with an Extended Life Priority 

Attribute are allowed to earn queue 

priority on the Nasdaq Book at any 

given price level ahead of all other 

Displayed Orders without the Extended 

Life Priority Attribute.9

In proposing ELO, the Exchange 

anticipated a progressive rollout of the 

ELO functionality, beginning with a 

small set of symbols and gradually 

expanding further. The Exchange also 

committed to publish the symbols 

eligible for ELO on its Web site. The 

Exchange noted that it intended to 

implement the initial set of symbols for 

ELO in the third quarter of 2017, with 

the exact implementation date being 

reliant on several factors, such as the 

results of extensive testing and industry 

events and initiatives. 

The Exchange has encountered 

unforeseen issues in developing ELO, 

which have delayed its implementation. 

These issues concern the complexity of 

programming the System to account for 

ELO priority over other Orders on the 

Nasdaq Book. The issues will require 

additional thoughtful and methodical 

development efforts to ensure that risks 

are adequately addressed, and the 

System will accurately account for the 

new ELO priority. As a consequence, 

the Exchange is proposing to implement 

ELO in the second half of 2018. As it 

originally committed to do, the 

Exchange will notify market 

participants via an Equity Trader Alert 

once a specific date for the initial 

rollout is determined. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,10 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,11

in particular, in that it is designed to 

promote just and equitable principles of 

trade, to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general to protect 

investors and the public interest, 

because it will allow the Exchange to 

adequately address complex unforeseen 

issues that introduce risk to the 

development and functioning of ELO. 

The Exchange believes that, to address 

these issues in a thorough and 

thoughtful manner, additional time is 

needed for it to solve these issues before 

it can implement ELO. As a 

consequence, the proposed delay will 

serve to protect investors by decreasing 

the likelihood of potential disruption to 

the market caused by the 

implementation of ELO. 

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. Delaying the 

implementation of ELO will allow the 

Exchange to adequately analyze issues, 

as well as to further develop and test 

Nasdaq systems to ensure that ELO 

functions as proposed. Ensuring that the 

Exchange has adequate time to do so 

does not place a burden on competition 

whatsoever, since ELO has not been 

implemented and market participants 

have not yet begun to program their 

systems to accept ELO. Thus market 

participants will not be affected by the 

delay in its implementation. 


sradovich on DSK3GMQ082PROD with NOTICES
48302 Federal Register / Vol. 82, No. 199 / Tuesday, October 17, 2017 / Notices 

12 17 CFR 240.19b–4(f)(6). As required under Rule 

19b–4(f)(6)(iii), the Exchange provided the 

Commission with written notice of its intent to file 

the proposed rule change, along with a brief 

description and the text of the proposed rule 

change, at least five business days prior to the date 

of filing of the proposed rule change, or such 

shorter time as designated by the Commission. 

13 17 CFR 240.19b–4(f)(6). 

14 17 CFR 240.19b–4(f)(6)(iii). 

15The Exchange stated that, as it originally 

committed to do, it will notify market participants 

via an Equity Trader Alert once a specific date for 

the initial rollout is determined and will publish 

the symbols that are eligible for ELO on its Web 

site. 

16For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

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

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

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) of the Act and Rule 19b– 

4(f)(6) thereunder.12

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act 13 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6)(iii) 14

permits the Commission to designate a 

shorter time if such action is consistent 

with the protection of investors and the 

public interest. The Exchange has asked 

the Commission to waive the 30-day 

operative delay so that the Exchange 

may immediately extend the ELO 

implementation date. The Exchange 

stated that it will not be able to 

implement ELO by the end of the third 

quarter of 2017. According to the 

Exchange, it has encountered 

unforeseen issues in developing ELO, 

and these issues will require additional 

thoughtful and methodical development 

efforts to ensure that risks are 

adequately addressed and the System 

will accurately account for the new ELO 

priority. The Exchange also stated that 

waiving the operative delay will allow 

it to implement the proposed 

implementation delay and provide 

notice to market participants thereof.15

The Commission believes that waiving 

the 30-day operative delay is consistent 

with the protection of investors and the 

public interest. Therefore, the 

Commission hereby waives the 

operative delay and designates the 

proposed rule change operative upon 

filing.16

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 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NASDAQ–2017–103 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NASDAQ–2017–103. 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 also will 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– 

NASDAQ–2017–103, and should be 

submitted on or before November 7, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–22392 Filed 10–16–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81852; File No. SR–BOX– 

2017–32] 

Self-Regulatory Organizations; BOX 

Options Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change To Amend 

the Fee Schedule To Adopt a Strategy 

QOO Order Fee Cap 

October 11, 2017. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that on 

September 29, 2017, BOX Options 

Exchange LLC (the ‘‘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 Exchange filed the proposed rule 

change pursuant to Section 

19(b)(3)(A)(ii) of the Act,3 and Rule 

19b–4(f)(2) thereunder,4 which renders 

the proposal effective upon filing with 

the Commission. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 


sradovich on DSK3GMQ082PROD with NOTICES