Document ID: SEC-2016-2152-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ BX, Inc.
Posted Date: 2016-12-07T05:00Z

[Federal Register Volume 81, Number 235 (Wednesday, December 7, 2016)]
[Notices]
[Pages 88290-88291]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-29293]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79448; File No. SR-BX-2014-048]

Self-Regulatory Organizations; NASDAQ BX, Inc.; Order Granting an 
Extension to Limited Exemption From Rule 612(c) of Regulation NMS in 
Connection With the Exchange's Retail Price Improvement Program Until 
December 1, 2017

December 1, 2016.
    On November 28, 2014, the Commission issued an order pursuant to 
its authority under Rule 612(c) of Regulation NMS \1\ (``Sub-Penny 
Rule'') that granted the NASDAQ BX, Inc. (``BX'' or ``Exchange'') a 
limited exemption from the Sub-Penny Rule in connection with the 
operation of the Exchange's Retail Price Improvement Program (``RPI 
Program'').\2\ The limited exemption was granted concurrently with the 
Commission's approval of the Exchange's proposal to adopt the RPI 
Program on a one-year pilot term.\3\ On November 20, 2015, the 
Commission extended the temporary exemption until December 2016 
concurrently with an immediately effective filing that extended the 
operation of the RPI Program until December 1, 2016.\4\
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    \1\ 17 CFR 242.612(c).
    \2\ See Securities Exchange Act Release No. 73702, 79 FR 72049 
(December 4, 2014), (SR-BX-2014-048) (``RPI Approval Order'').
    \3\ See id.
    \4\ See Securities Exchange Act Release No. 76495, 80 FR 74185 
(November 27, 2015), (SR-BX-2014-048).
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    The Exchange now seeks to extend the exemption until December 1, 
2017.\5\ The Exchange's request was made in conjunction with an 
immediately effective filing that extends the operation of the RPI 
Program until December 1, 2017.\6\ In its request to extend the 
exemption, the Exchange notes that given the gradual implementation of 
the RPI Program and the preliminary participation and results, 
extending the exemption would provide additional opportunities for 
greater participation and assessment of the results. Accordingly, the 
Exchange has asked for additional time to allow it and the Commission 
to analyze data concerning the RPI Program that the Exchange has 
committed to provide to the Commission.\7\
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    \5\ See SR-BX-2016-065; see also Letter from Jeffrey Davis, Vice 
President and Deputy General Counsel and Secretary, NASDAQ BX, Inc. 
to Brent J. Fields, Secretary, and Securities and Exchange 
Commission, dated November 22, 2016 (``BX Letter'').
    \6\ See SR-BX-2016-065.
    \7\ See e.g., BX Letter; SR-BX-2016-065; RPI Approval Order, 
supra note 2.
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    For this reason and the reasons stated in the RPI Approval Order 
originally granting the limited exemption, the Commission, pursuant to 
its authority under Rule 612(c) of Regulation NMS, finds that extending 
the exemption is appropriate in the public interest and consistent with 
the protection of investors.
    Therefore, it is hereby ordered that, pursuant to Rule 612(c) of 
Regulation NMS, the Exchange is granted an extension of the limited 
exemption from Rule 612 of Regulation NMS that allows the Exchange to 
accept and rank orders priced equal to or greater than $1.00 per share 
in increments of $0.001, in connection with the operation of its RPI 
Program, until December 1, 2017.

[[Page 88291]]

    The limited and temporary exemption extended by this Order is 
subject to modification or revocation if at any time the Commission 
determines that such action is necessary or appropriate in furtherance 
of the purposes of the Act. Responsibility for compliance with any 
applicable provisions of the Federal securities laws must rest with the 
persons relying on the exemption that are the subject of this Order.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(83).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-29293 Filed 12-6-16; 8:45 am]
 BILLING CODE 8011-01-P