Document ID: SEC-2020-1480-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Nasdaq BX, Inc.
Posted Date: 2020-09-16T04:00Z

[Federal Register Volume 85, Number 180 (Wednesday, September 16, 2020)]
[Notices]
[Pages 57893-57895]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-20359]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-89819; File No. SR-BX-2020-027]

Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Decommission 
TradeInfo

September 10, 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 September 9, 2020, Nasdaq BX, Inc. (``BX'' or ``Exchange'') filed 
with the Securities and Exchange Commission (``SEC'' or ``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 no longer offer TradeInfo, which interface 
is described within Options 3, Section 23(b)(2).
    The text of the proposed rule change is available on the Exchange's 
website at https://listingcenter.nasdaq.com/rulebook/bx/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 no longer offer TradeInfo, which interface 
is described within Options 3, Section

[[Page 57894]]

23(b)(2). TradeInfo is a user interface which permits a Participant to: 
(i) Search all orders submitted in a particular security or all orders 
of a particular type, regardless of their status (open, canceled, 
executed, etc.); (ii) cancellation of open orders at the order, port or 
firm mnemonic level; (iii) a view of orders and executions; and (iv) 
download of orders and executions for recordkeeping purposes.\3\ This 
interface is not utilized by BX Participants at this time \4\ and the 
Exchange desires to decommission the TradeInfo interface in connection 
with a technology migration to an enhanced Nasdaq, Inc. (``Nasdaq'') 
functionality which will result in higher performance, scalability, and 
more robust architecture.
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    \3\ See Options 3, Section 23(b)(2).
    \4\ No Participant logged into TradeInfo in 2020.
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    FIX,\5\ FIX DROP,\6\ and the Clearing Trade Interface,\7\ which are 
available to all Participants,\8\ can be utilized to obtain order 
information which is currently available within TradeInfo, and cancel 
orders. The Exchange intends to decommission TradeInfo on September 14, 
2020. The Exchange has issued an Options Trader Alert to provide notice 
of the decommission.\9\
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    \5\ ``Financial Information eXchange'' or ``FIX'' is an 
interface that allows Participants and their Sponsored Customers to 
connect, send, and receive messages related to orders and auction 
orders and responses to and from the Exchange. Features include the 
following: (1) Execution messages; (2) order messages; and (3) risk 
protection triggers and cancel notifications. See Options 3, Section 
7(d)(1)(A).
    \6\ FIX DROP is a real-time order and execution update message 
that is sent to a Participant after an order been received/modified 
or an execution has occurred and contains trade details specific to 
that Participant. The information includes, among other things, the 
following: (i) Executions; (ii) cancellations; (iii) modifications 
to an existing order and (iv) busts or post-trade corrections. See 
Options 3, Section 23(b)(3).
    \7\ The Clearing Trade Interface or ``CTI'' is a real-time 
clearing trade update message that is sent to a Participant after an 
execution has occurred and contains trade details specific to that 
Participant. The information includes, among other things, the 
following: (i) The Clearing Member Trade Agreement or ``CMTA'' or 
The Options Clearing Corporation or ``OCC'' number; (ii) Exchange 
badge or house number; (iii) the Exchange internal firm identifier; 
(iv) an indicator which will distinguish electronic and non-
electronically delivered orders; (v) liquidity indicators and 
transaction type for billing purposes; and (vi) capacity. See 
Options 3, Section 23(b)(1).
    \8\ Today, all Participants have at least FIX, FIX DROP, or CTI.
    \9\ See Options Trader Alert #2020-23. The Exchange contacted 
Participants that are currently subscribed to TradeInfo and informed 
them about the decommission date. As noted above, today, these 
Participants utilize FIX, FIX DROP, or CTI to obtain or download 
order information or to cancel orders. The Exchange did not receive 
any comments from market participants regarding the proposed 
decommission.
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    Today, Participants pay $95 per user, per month for the TradeInfo 
interface. The Exchange intends to separately file a proposed rule 
change to credit any fees paid by Participants for TradeInfo in 
September 2020.
    Finally, the Exchange proposes to add the word ``has'' to Options 
3, Section 23(b)(3) to correct a grammatical error.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\10\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\11\ 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, by decommissioning TradeInfo, which is currently not being 
utilized by BX Participants.
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    \10\ 15 U.S.C. 78f(b)
    \11\ 15 U.S.C. 78f(b)(5).
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    In connection with BX's upcoming technology migration, the Exchange 
proposes to no longer support TradeInfo as the interface is not 
utilized,\12\ and FIX, FIX DROP, and the CTI can be utilized to obtain 
order information which is currently available within TradeInfo, and 
cancel orders.
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    \12\ See note 4 above.
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    Today, Participants pay $95 per user, per month for the TradeInfo 
interface. The Exchange intends to separately file a proposed rule 
change to credit any fees paid by Participants for TradeInfo in 
September 2020.
    The Exchange's proposal to correct a grammatical error within 
Options 3, Section 23(b)(3) is non-substantive.

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. No BX Participant \13\ will be 
able to utilize TradeInfo after September 14, 2020. However, FIX, FIX 
DROP, and CTI can be utilized to obtain order information that is 
currently available within TradeInfo, or cancel orders.
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    \13\ Id.
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    The Exchange's proposal to correct a grammatical error within 
Options 3, Section 23(b)(3) is non-substantive.

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 \14\ and Rule 19b-4(f)(6) thereunder.\15\ 
Because the 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 prior to 
30 days from the date on which it was filed, or such shorter time as 
the Commission may designate, if consistent with the protection of 
investors and the public interest, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.\16\
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    \14\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \15\ 17 CFR 240.19b-4(f)(6).
    \16\ 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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    A proposed rule change filed under Rule 19b-4(f)(6) \17\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\18\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay so that the proposal 
may become operative immediately upon filing to permit the Exchange to 
decommission TradeInfo on September 14, 2020 in connection with BX's 
upcoming technology migration to an enhanced platform. The Commission 
believes that waiving the 30-day operative delay is consistent with the 
protection of investors and the public interest because the Exchange 
has stated that the TradeInfo interface is not utilized, and FIX, FIX 
DROP, and CTI can be utilized to obtain order information that is 
currently available within TradeInfo, or cancel orders. The Commission 
believes that waiver of the operative delay would allow the Exchange, 
before September 14, 2020, to avoid any additional testing and other 
technology efforts necessary to offer TradeInfo on the new platform. 
Accordingly, the Commission waives the 30-day operative delay and

[[Page 57895]]

designates the proposed rule change operative upon filing.\19\
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    \17\ 17 CFR 240.19b-4(f)(6).
    \18\ 17 CFR 240.19b-4(f)(6)(iii).
    \19\ For purposes only of waiving the 30-day operative delay, 
the Commission has 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 such 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 under 
Section 19(b)(2)(B) \20\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \20\ 15 U.S.C. 78s(b)(2)(B).
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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-BX-2020-027 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-BX-2020-027. 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-BX-2020-027 and 
should be submitted on or before October 7, 2020September 16, 2020.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\21\
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    \21\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-20359 Filed 9-15-20; 8:45 am]
BILLING CODE 8011-01-P