Document ID: SEC-2022-1575-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Nasdaq MRX, LLC
Posted Date: 2022-12-06T05:00Z

[Federal Register Volume 87, Number 233 (Tuesday, December 6, 2022)]
[Notices]
[Pages 74693-74695]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-26440]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-96410; File No. SR-MRX-2022-25]

Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend the 
Definition of Short Term Option Series

November 30, 2022.
    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 November 18, 2022, Nasdaq MRX, LLC (``MRX'' 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 Options 1, General Provisions. The 
Exchange also proposes amendments within Options 7, Pricing Schedule 
and General 2, Organization and Administration.
    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
    The Exchange proposes to amend the description of the term ``Short 
Term Option Series'' within Options 1, Section 1, Definitions, to 
conform the term to Nasdaq ISE, LLC's (``ISE'') term of Short Term 
Option Series which was recently amended.\3\ The Exchange also proposes 
certain non-substantive amendments. Each change is described below.
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    \3\ See Securities Exchange Act Release No. 96281 (November 9, 
2022), 87 FR 68769 (November 16, 2022) (SR-ISE-2022-18) (Order 
Granting Approval of a Proposed Rule Change to Amend the Short Term 
Option Series Program).
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Short Term Option Series
    Options 1, Section 1(a)(48) describes the term ``Short Term Option 
Series'' as follows:

    The term ``Short Term Option Series'' means a series in an 
option class that is approved for listing and trading on the 
Exchange in which the series is opened for trading on any Monday, 
Tuesday, Wednesday, Thursday, or Friday that is a business day and 
that expires on the Monday, Wednesday or Friday of the following 
business week that is a business day, or, in the case of a series 
that is listed on a Friday and expires on a Monday, is listed one 
business week and one business day prior to that expiration. If a 
Tuesday, Wednesday, Thursday or Friday is not a business day, the 
series may be opened (or shall expire) on the first business day 
immediately prior to that Tuesday, Wednesday, Thursday or Friday. 
For a series listed pursuant to this section for Monday expiration, 
if a Monday is not a business day, the series shall expire on the 
first business day immediately following that Monday.

    ISE's Options 4 rules were recently amended to expand the Short 
Term Option Series program to permit the listing and trading of options 
series with Tuesday and Thursday expirations for options on SPY and QQQ 
listed pursuant to the Short Term Option Series Program.\4\ In 
conjunction with that change, ISE amended its definition of Short Term 
Option Series, within Options 1, Section 1(a)(49), to accommodate the 
listing of options series that expire on Tuesdays and Thursdays. 
Specifically, the Exchange added Tuesday and Thursday to the permitted 
expiration days, which currently include Monday, Wednesday, and Friday, 
that it may open for trading.
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    \4\ See note 3 above. MRX's Options 4 Rules are incorporated by 
reference to ISE's Options 4 Rules.
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    At this time, the Exchange proposes to amend the term ``Short Term 
Option Series'' at Options 1, Section 1(a)(48) to provide,

    The term ``Short Term Option Series' means a series in an option 
class that is approved for listing and trading on the Exchange in 
which the series is opened for trading on any Monday, Tuesday, 
Wednesday, Thursday, or Friday that is a business day and that 
expires on the Monday, Tuesday, Wednesday, Thursday, or Friday of 
the following business week that is a business day, or, in the case 
of a series that is listed on a Friday and expires on a Monday, is 
listed one business week and one business day prior to that 
expiration. If a Tuesday, Wednesday, Thursday or Friday is not a 
business day, the series may be opened (or shall expire) on the 
first business day immediately prior to that Tuesday, Wednesday, 
Thursday or Friday. For a series listed pursuant to this section for 
Monday expiration, if a Monday is not a business day, the series 
shall expire on the first business day immediately following that 
Monday.

    Today, MRX's listing rules permit the listing and trading of 
options series with Tuesday and Thursday expirations for options on SPY 
and QQQ listed pursuant to the Short Term Option Series Program.\5\
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    \5\ MRX's Options 4 Rules are incorporated by reference to ISE's 
Options 4 Rules and therefore the approval of ISE's Options 4 rules 
permit the listing and trading of options series with Tuesday and 
Thursday expirations for options on SPY and QQQ on MRX.

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[[Page 74694]]

Other Non-Substantive Amendments
    The Exchange proposes to make other amendments to reserve certain 
sections of the Rulebook. These sections contain content in other 
Nasdaq affiliated rulebooks. To harmonize the section numbers across 
the Nasdaq affiliated markets, the Exchange proposes to reserve General 
2, Sections 23 and 24. These amendments are non-substantive.
    The Exchange also proposes to update the name of various market 
data feeds to mirror the amendments that were recently made within 
Options 3, Section 28.\6\ Amending the names of the market data feeds 
within Options 7, Section 7 to align with the names within the 
Exchange's rules will make clear which products are being described 
within Options 7. These amendments are non-substantive.
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    \6\ See Securities and Exchange Release No. 95982 (October 4, 
2022), 87 FR 61391 (October 11, 2022) (SR-MRX-2022-18) (Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend 
Its Rules in Connection With a Technology Migration to Enhanced 
Nasdaq Functionality).
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\7\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\8\ 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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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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Short Term Option Series
    The Exchange's proposal to amend the term ``Short Term Option 
Series'' at Options 1, Section 1(a)(48) to reflect the recent change 
\9\ to MRX's listing rules to permit the listing and trading of options 
series with Tuesday and Thursday expirations for options on SPY and QQQ 
listed pursuant to the Short Term Option Series Program is consistent 
with the Exchange Act. This proposal will align the description of 
Short Term Option Series within Options 1, Section 1(a)(48) to the 
expirations permitted within the Short Term Option Series Program 
within Supplementary .03 to Options 4, Section 5.
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    \9\ See note 3 above.
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Other Non-Substantive Amendments
    The Exchange's proposal to reserve certain sections of the 
Rulebook, namely General 2, Sections 23 and 24, to harmonize section 
numbers across the Nasdaq affiliated markets is non-substantive. The 
Exchange's proposal to update the name of various market data feeds 
within Options 7, Section 7 to mirror the amendments that were recently 
made within Options 3, Section 28 \10\ are non-substantive.
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    \10\ See note 5 above.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The proposed rule change does not impose any burden on competition 
that is not necessary or appropriate in furtherance of the purposes of 
the Act.
Short Term Option Series
    The Exchange's proposal to amend the term ``Short Term Option 
Series'' at Options 1, Section 1(a)(48) to reflect the recent change 
\11\ to MRX's listing rules to permit the listing and trading of 
options series with Tuesday and Thursday expirations for options on SPY 
and QQQ listed pursuant to the Short Term Option Series Program does 
not impose an undue burden on competition, rather this proposal will 
align the description of Short Term Option Series within Options 1, 
Section 1(a)(48) to the expirations permitted within the Short Term 
Option Series Program within Supplementary .03 to Options 4, Section 5.
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    \11\ See note 3 above.
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Other Non-Substantive Amendments
    The Exchange's proposal to make other amendments to reserve certain 
sections of the Rulebook, namely General 2, Sections 23 and 24, to 
harmonize section numbers across the Nasdaq affiliated markets is non-
substantive. The Exchange's proposal to update the name of various 
market data feeds within Options 7, Section 7 to mirror the amendments 
that were recently made within Options 3, Section 28 \12\ are non-
substantive.
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    \12\ See note 5 above.
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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

    The Exchange has filed the proposed rule change pursuant to section 
19(b)(3)(A)(iii) of the Act \13\ and Rule 19b-4(f)(6) thereunder.\14\ 
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 \15\ and subparagraph (f)(6) of 
Rule 19b-4 thereunder.\16\ The Exchange has stated that the Options 4 
listing rules were recently amended to expand the Short Term Option 
Series program to permit the listing and trading of options series with 
Tuesday and Thursday expirations for options on SPY and QQQ listed 
pursuant to the Short Term Option Series Program,\17\ and that waiver 
of the 30-day operative delay will allow the Exchange to conform the 
definition of a Short Term Option Series to the Options 4 listing 
rules. The Commission believes that waiver of the 30-day operative 
delay is consistent with the protection of investors and the public 
interest because the proposed rule change does not raise any new or 
novel issues. Accordingly, the Commission hereby waives the operative 
delay and designates the proposed rule change operative upon 
filing.\18\
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    \13\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \14\ 17 CFR 240.19b-4(f)(6).
    \15\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \16\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires a self-regulatory organization 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.
    \17\ See supra note 4.
    \18\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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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:

[[Page 74695]]

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-2022-25 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-2022-25. 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-2022-25, and should be submitted on 
or before December 27, 2022.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(12), (59).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022-26440 Filed 12-5-22; 8:45 am]
BILLING CODE 8011-01-P