Document ID: SEC-2020-0444-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Nasdaq GEMX, LLC
Posted Date: 2020-03-26T04:00Z

[Federal Register Volume 85, Number 59 (Thursday, March 26, 2020)]
[Notices]
[Pages 17134-17136]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-06388]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-88457; File No. SR-GEMX-2020-07]

Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Related to the 
Removal of Obsolete Listing Rules

March 23, 2020.
    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 March 10, 2020, Nasdaq GEMX, LLC (``GEMX'' or ``Exchange'') filed 
with the Securities and Exchange Commission (``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.
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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 amend its Rules at Options 2, Options 
Market Participants; Options 3, Section 2, Units of Trading and Meaning 
of Premium Quotes and Orders; Options 3, Section 3, Minimum Trading 
Increments; and Options 3, Section 15, Simple Order Risk Protections. 
Additionally, the Exchange proposes to add new sections at General 9 
and Options 4B and reserve those sections.
    The text of the proposed rule change is available on the Exchange's 
website at http://nasdaqgemx.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.

[[Page 17135]]

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 GEMX Rules at Options 2, Options 
Market Participants; Options 3, Section 2, Units of Trading and Meaning 
of Premium Quotes and Orders; Options 3, Section 3, Minimum Trading 
Increments; and Options 3, Section 15, Simple Order Risk Protections. 
Additionally, the Exchange proposes to add new sections at General 9 
and Options 4B and reserve those sections. The various proposed changes 
will be discussed below.
Mini Options
    The Exchange has not listed Mini Options in several years and is 
proposing to delete Mini Options listing rules and other ancillary 
trading rules related to the listing of Mini Options. The Exchange 
notes that it has no open interest in Mini Options.
    Specifically, the Exchange proposes to amend the following GEMX 
Rules related to Mini Options by deleting references to Mini Options 
within these rules: Options 3, Section 2(c), Units of Trading and 
Meaning of Premium Quotes and Orders; and Options 3, Section 3, Minimum 
Trading Increments, at Supplementary Material .03. The Exchange also 
proposes to re-letter (b) as (c).
Foreign Currency Index
    The Exchange removed \3\ prior GEMX Section 22, which was titled 
``Rate-Modified Foreign Currency Options Rules'' and governed the 
listing and trading of foreign currency options on GEMX. At this time, 
the Exchange is removing a reference that is no longer necessary within 
Options 3, Section 3, Minimum Trading Increments, at Supplementary 
Material .02, because the product is not available to be listed on 
GEMX.
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    \3\ See Securities Exchange Act Release No. 84791 (December 11, 
2018), 83 FR 64611 (December 11, 2018) (SR-GEMX-2018-41) (Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Delete 
GEMX Section 22 of the Rulebook).
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Rulebook Harmonization
    The Exchange recently harmonized its Rulebook in connection with 
other Nasdaq affiliated markets. The Exchange proposes to reserve 
sections General 9 and Options 4B and certain other rules \4\ within 
the GEMX Rulebook to represent the presence of rules in similar 
locations in other Nasdaq affiliated Rulebooks (e.g. Nasdaq Phlx LLC) 
\5\. The addition of these reserved sections will align the various 
Nasdaq affiliated market Rulebooks.
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    \4\ The Exchange proposes to reserve Options 2, Sections 11-14 
and Options 6, Section 8-13.
    \5\ See Securities Exchange Act Release No. 88213 (February 14, 
2020), 85 FR 9859 (February 20, 2020) (SR-Phlx-2020-03) (``Phlx 
Rulebook Relocation Rule Change'').
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Other Non-Substantive Amendments
    The Exchange proposes to delete duplicative text within Options 3, 
Section 15, Simple Order Risk Protections. Current Options 3, Section 
15(c) appears in Section 15(a) and current Options 3, Section 15(d) 
appears in Options 3, Section 15(a)(1)(C).
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\6\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\7\ 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.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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Mini Options
    The Exchange's proposal to removal references to the listing and 
handling of Mini Options is consistent with the Act because Mini 
Options have not been listed in several years and thereby removing the 
references to the rules would render the rules more accurate and reduce 
potential investor confusion. Also, the Exchange notes that it has no 
open interest in Mini Options. In the event that the Exchange desires 
to list Mini Options in the future, it would file a rule change with 
the Commission to adopt rules to list Mini Options.
Foreign Currency Index
    The Exchange's proposal to remove rules and references to the 
listing and handling of Foreign Currency Indexes is consistent with the 
Act because the listing rules for these products have been removed. 
Also, the Exchange notes that it has no open interest in Foreign 
Currency Indexes. In the event that the Exchange desires to list 
Foreign Currency Indexes in the future, it would file a rule change 
with the Commission.
Rulebook Harmonization
    The Exchange's proposal to reserve new sections at General 9 and 
Options 4B within the Rulebook is a non-substantive amendment which 
aligns the numbering across Nasdaq affiliated Rulebooks to provide 
market participants with an ability to more readily locate rules.
Other Non-Substantive Amendments
    The Exchange's proposal to remove duplicative text within Options 
3, Section 15 is non-substantive and is intended to reduce investor 
confusion.

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.
Mini Options
    The Exchange's proposal to removal references to the listing and 
handling of Mini Options does not impose an undue burden on 
competition. Mini Options have not been listed in several years. Also, 
the Exchange notes that it has no open interest in Mini Options.
Foreign Currency Index
    The Exchange's proposal to removal references to the listing and 
handling of Foreign Currency Indexes does not impose an undue burden on 
competition. Foreign Currency Indexes have not been listed in several 
years. Also, the Exchange notes that it has no open interest in Foreign 
Currency Indexes.
Rulebook Harmonization
    The Exchange's proposal to add reserved sections General 9 and 
Options 4B to the Rulebook is a non-substantive amendment which aligns 
the numbering across Nasdaq affiliated Rulebooks to provide market 
participants with an ability to more readily locate rules.
Other Non-Substantive Amendments
    The Exchange's proposal to remove duplicative text within Options 
3, Section 15 is a non-substantive amendment.

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

[[Page 17136]]

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 \8\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\9\
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    \8\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \9\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires the Exchange to give the Commission written notice of its 
intent to file the proposed rule change, along with a brief 
description and 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. 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 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-GEMX-2020-07 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-GEMX-2020-07. 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-GEMX-2020-07 and should be submitted on 
or before April 16, 2020.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-06388 Filed 3-25-20; 8:45 am]
 BILLING CODE 8011-01-P