Document ID: SEC-2023-0309-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Nasdaq GEMX, LLC
Posted Date: 2023-03-17T04:00Z

[Federal Register Volume 88, Number 52 (Friday, March 17, 2023)]
[Notices]
[Pages 16485-16486]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-05445]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-97126; File No. SR-GEMX-2023-04]

Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Delay the 
Implementation of Certain Trading Functionality

March 13, 2023.
    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 February 28, 2023, Nasdaq GEMX, LLC (``GEMX'' or ``Exchange'') filed 
with the Securities and Exchange Commission (``SEC'' or ``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 delay the implementation of certain 
trading functionality rule changes.
    The text of the proposed rule change is available on the Exchange's 
website at https://listingcenter.nasdaq.com/rulebook/gemx/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
    In connection with a technology migration to an enhanced Nasdaq, 
Inc. (``Nasdaq'') functionality, the Exchange filed various rule 
changes to adopt certain trading functionality currently utilized at 
Nasdaq affiliate exchanges. At this time, the Exchange proposes to 
delay the implementation of the various rule changes. Each impacted 
rule change and the new implementation date is described below.
Impacted Rule Filings
    The Exchange filed the following rule changes in connection with 
its technology migration:
    [ssquf] SR-ISE-2022-11 which impacts GEMX routing; \3\
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    \3\ See Securities Exchange Act Release No. 94897 (May 12, 
2022), 87 FR 30294 (May 18, 2022) (SR-ISE-2022-11) (Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend Routing 
Functionality in Connection With a Technology Migration). GEMX 
Options 5 Rules incorporate ISE Options 5 by reference.
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    [ssquf] SR-GEMX-2022-10 which amended ATR and Repricing Rules; \4\
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    \4\ See Securities Exchange Act Release No. 96363 (November 18, 
2022), 87 FR 72556 (November 25, 2022) (SR-GEMX-2022-10) (Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend 
ATR and Re-Pricing Rules in Connection With a Technology Migration 
to Enhanced Nasdaq Functionality).
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    [ssquf] SR-GEMX-2022-13 which amended PIM; \5\ and
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    \5\ See Securities Exchange Act Release No. 96519 (December 16, 
2022), 87 FR 78717 (December 22, 2022) (SR-GEMX-2022-13) (Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend 
Certain Functionality in Connection With a Technology Migration).
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    [ssquf] SR-GEMX-2023-02 a rule change amending multiple 
functionalities.\6\
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    \6\ See Securities Exchange Act Release No. 96817 (February 6, 
2023), 88 FR 8922 (February 10, 2023) (SR-GEMX-2023-02) (Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend 
Rules in Connection with the Technology Migration to Enhanced Nasdaq 
Functionality).
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    Each of the aforementioned rule changes (collectively ``Impacted 
Rule Changes'') indicated that the technology migration for GEMX would 
commence prior to September 1, 2023 or Q3.
New Implementation
    At this time, the Exchange proposes to delay the implementation of 
the Impacted Rule Changes, which all relate to GEMX's upcoming 
technology migration, to a date prior to December 29, 2023. The 
Exchange will announce the initial migration date and symbol rollout 
schedule to Members in an Options Trader Alert.
    The Exchange proposes to delay the migration to allow the Exchange 
and its Members additional time to test the new functionality.
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 and to protect investors and the 
public interest for the reasons discussed below. The Exchange proposes 
to delay the implementation of the Impacted Rule Changes, which all 
relate to GEMX's upcoming technology migration, a few months to allow 
the Exchange and its Members additional time to test the new 
functionality. The Exchange believes that the delay is consistent with 
the Act because the additional time will allow the Exchange to ensure a 
successful migration while protecting investors and the public interest 
by allowing the Exchange and Members more time to test.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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    The Exchange notes that the substance of the impacted rules is not 
changing, only the implementation timeline is changing with this 
proposal.

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. The Exchange's proposal to 
delay the implementation of the Impacted Rule

[[Page 16486]]

Changes for a few months does not impose an undue burden on 
competition. The proposed delay will allow the Exchange and its Members 
additional time to test the new functionality.

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 \9\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\10\
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    \9\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \10\ 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 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 [email protected]. Please include 
File Number SR-GEMX-2023-04 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-2023-04. 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 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. 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-2023-04 and should be submitted on 
or before April 7, 2023.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-05445 Filed 3-16-23; 8:45 am]
BILLING CODE 8011-01-P