Document ID: SEC-2018-0619-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Nasdaq MRX, LLC
Posted Date: 2018-04-19T04:00Z

[Federal Register Volume 83, Number 76 (Thursday, April 19, 2018)]
[Notices]
[Pages 17459-17461]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-08156]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83049; File No. SR-MRX-2018-11]

Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Adopt Data Feeds 
Offered to MRX Members

April 13, 2018.
    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 April 4, 2018, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to adopt data feeds offered to MRX Members.
    The text of the proposed rule change is available on the Exchange's 
website at http://nasdaqmrx.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
    The purpose of the proposed rule change is to adopt data feeds for 
MRX. The Exchange proposes to amend Rule 718, which is currently 
reserved, to rename the rule ``Data Feeds'' and include a description 
of each data feed within the rule. The data feed offerings are as 
follows: Nasdaq MRX Depth of Market Data Feed (``Depth of Market 
Feed''), the Nasdaq MRX Order Feed (``Order Feed''), the Nasdaq MRX Top 
Quote Feed (``Top Quote Feed'') and the Nasdaq MRX Trades Feed 
(``Trades Feed''). A description of each data offering follows below.
Depth of Market Feed
    The Depth of Market Data Feed provides aggregate quotes and orders 
at the top five price levels on MRX, and provides subscribers with a 
consolidated view of tradable prices beyond the BBO, showing additional 
liquidity and enhancing transparency for MRX traded options. The data 
provided for each option series includes the symbols (series and 
underlying security), put or call indicator, expiration date, the 
strike price of the series, and whether the option series is available 
for trading on ISE and identifies if the series is available for 
closing transactions only. In addition, subscribers are provided with 
total aggregate quantity, Public Customer aggregate quantity, Priority 
Customer aggregate quantity, price, and side (i.e., bid/ask). This 
information is provided for each of the top five price levels on the 
Depth Feed. The feed also provides order imbalances on opening/
reopening.
Order Feed
    The Order feed provides information on new orders resting on the 
book (e.g. price, quantity and market participant

[[Page 17460]]

capacity). In addition, the feed also announces all auctions. The data 
provided for each option series includes the symbols (series and 
underlying security), put or call indicator, expiration date, the 
strike price of the series, and whether the option series is available 
for trading on MRX and identifies if the series is available for 
closing transactions only. The feed also provides order imbalances on 
opening/reopening.
Top Quote Feed
    The Top Quote Feed calculates and disseminates MRX's best bid and 
offer position, with aggregated size (including total size in 
aggregate, Public Customer size in the aggregate and Priority Customer 
size in the aggregate), based on displayable order and quote interest 
in the System. The feed also provides last trade information along with 
opening price, daily trading volume, high and low prices for the day. 
The data provided for each option series includes the symbols (series 
and underlying security), put or call indicator, expiration date, the 
strike price of the series, and whether the option series is available 
for trading on MRX and identifies if the series is available for 
closing transactions only. The feed also provides order imbalances on 
opening/reopening.
Trades Feed
    The Trades Feed displays last trade information along with opening 
price, daily trading volume, high and low prices for the day. The data 
provided for each option series includes the symbols (series and 
underlying security), put or call indicator, expiration date, the 
strike price of the series, and whether the option series is available 
for trading on MRX and identifies if the series is available for 
closing transactions only.
    These data offerings are currently being offered at no cost to any 
market participant. The Exchange believes that adopting these data 
feeds and codifying them within the Exchange's Rulebook will bring 
greater transparency to its Rules as well as the data which is 
available on the Exchange.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Securities Exchange Act of 1934 (the ``Act''), 
in general, and furthers the objectives of Section 6(b)(5) of the Act, 
in particular, in that it is designed to promote just and equitable 
principles of trade, to remove impediments to and perfect the mechanism 
for a free and open market and a national market system, and, in 
general, to protect investors and the public interest by adopting MRX's 
data feed offerings and codifying them into a Rule for the benefit of 
all investors. The Exchange permits any market participant to receive 
these data offerings at no cost. The Exchange believes that the 
proposed rule change is consistent with the protection of investors and 
the public interest as it describes information relating to the data 
available on the Exchange for the benefit of its members and adds 
greater transparency to these offerings.
    Adopting Regulation NMS, the Commission granted self-regulatory 
organizations and broker-dealers increased authority and flexibility to 
offer new and unique market data to the public. It was believed that 
this authority would expand the amount of data available to consumers, 
and also spur innovation and competition for the provision of market 
data. The Exchange believes that this proposal is in keeping with those 
principles by promoting increased transparency through the 
dissemination of more useful proprietary data and also by clarifying 
its availability to market participants. The Exchange is making a 
voluntary decision to make this data available as it is not required to 
furnish this data under the Act. The Exchange chooses to make the data 
available as proposed in order to improve market quality, to attract 
order flow, and to increase transparency. The Exchange notes that the 
data provided on each of these feeds is the same as data provided by 
Nasdaq GEMX, LLC. The Exchange believes that is in the public interest 
to make similar information available with respect to options traded on 
MRX. The data offerings are designed to promote just and equitable 
principles of trade by providing all subscribers with data that should 
enable them to make informed decisions by using the data to assess 
current market conditions that directly affect such decisions. The 
market data provided by each of these feeds removes impediments to, and 
is designed to further perfect, the mechanisms of a free and open 
market and a national market system by making the market more 
transparent and accessible to market participants making routing 
decisions concerning their options orders.
    The market data products are also designed to protect investors and 
the public interest by providing data to subscribers that is already 
currently available on other exchanges and will enable MRX to compete 
with such other exchanges, thereby offering market participants with 
additional data in order to seek the market center with the best price 
and the most liquidity on which to execute their transactions, all to 
the benefit of investors and the public interest, and to the 
marketplace as a whole.

B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act, the Exchange does 
not believe that the proposed rule change will impose any burden on 
intermarket or intra-market competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. The data feed 
offerings are available to any market participant at no cost. The 
Exchange's proposal seeks to adopt and codify the data offerings in a 
Rule for ease of reference and transparency. The Exchange believes that 
the proposed market data products will enhance competition in the U.S. 
options markets by providing similar data to that which is currently 
provided on other options exchanges.

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 \3\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\4\
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    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 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.
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    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: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) 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.

[[Page 17461]]

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 [email protected]. Please include 
File Number SR-MRX-2018-11 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-2018-11. 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-2018-11and should be submitted on or 
before May 10, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-08156 Filed 4-18-18; 8:45 am]
 BILLING CODE 8011-01-P