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Federal Register / Vol. 86, No. 121 / Monday, June 28, 2021 / Notices All submissions should refer to File Number SRBX2021028. 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 Commissions 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 Commissions 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 SRBX2021028 and should be submitted on or before July 19, 2021.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12
J. Matthew DeLesDernier, Assistant Secretary.
FR Doc. 202113657 Filed 62521; 8:45 am
SECURITIES AND EXCHANGE
COMMISSION
Release No. 3492229; File No. SRMRX
202107

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Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Options 2, Section 4
Obligations of Market Makers June 22, 2021.

Pursuant to Section 19b1 of the Securities Exchange Act of 1934
Act,1 and Rule 19b4 thereunder,2
notice is hereby given that on June 15, CFR 200.303a12.
U.S.C. 78sb1.
2 17 CFR 240.19b4.
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I. Self-Regulatory Organizations Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Options 2, Section 4, Obligations of Market Makers. The Exchange also proposes to add a new Options 4C.
The text of the proposed rule change is available on the Exchanges website at https listingcenter.nasdaq.com/
rulebook/MRX/rules, at the principal office of the Exchange, and at the Commissions Public Reference Room.
II. Self-Regulatory Organizations 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 Organizations Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend Options 2, Section 4, Obligations of Market Makers. The Exchange also proposes to add a new Options 4C.

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2021, Nasdaq MRX, LLC MRX or Exchange filed with the Securities and Exchange Commission 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.

Options 2, Section 4a The Exchange proposes to remove the following rule text from Options 2, Section 4a, which has been in place since MRXs inception: 3
. . . Ordinarily, Market Makers are expected to:
1 Refrain from purchasing a call option or a put option at a price more than $0.25 below parity, although a larger amount may be appropriate considering the particular market conditions. In the case of calls, parity is 3 See Securities Exchange Act Release No. 70050
July 26, 2013, 78 FR 46622 August 1, 2013
Application of Topaz Exchange, LLC for Registration as a National Securities Exchange;
Findings, Opinion, and Order of the Commission.

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measured by the bid in the underlying security, and in the case of puts, parity is measured by the offer in the underlying security.
2 The $0.25 amount above may be increased, or the provisions of this Rule may be waived, by the Exchange on a series-byseries basis.

This proposed rule text also previously existed on Cboe Exchange, Inc. within prior Rule 8.7 4 and was removed from Cboes Rulebook in 2019.5 The Exchange likewise desires to remove this restriction on Market Makers which does not exist on Cboe or other Nasdaq affiliated markets.6 The proposed rule text is currently waived on MRX pursuant to Options 2, Section 4a2. The Exchange proposes to remove this rule text from Options 2, Section 4 as the Exchange does not desire to enforce this provision in the future. The Exchange believes that this market maker provision is no longer necessary. Today, MRX incentivizes Market Makers through allocation 7 to quote tightly in their assigned options series. Primary Market Makers and Competitive Market Makers also have other obligations with respect to market making 8 in addition to other quoting 4 Prior Interpretation and Policy .02 to Rule 8.7
provided, Market-Makers are expected ordinarily to refrain from purchasing a call option or a put option at a price more than $0.25 below parity, although a larger amount may be appropriate considering the particular market conditions. In the case of calls, parity is measured by the bid in the underlying security, and in the case of puts, parity is measured by the offer in the underlying security.
The $0.25 amount above may be increased, or the provisions of this Interpretation may be waived, by the Exchange on a series-by-series basis.
5 Cboes rule change merely noted, with respect to the removal of Cboes parity rule, that the filing makes non-substantive changes to the rule governing a Market-Makers general obligations current Rule 8.7, in part, most of which remove redundant provisions that are already covered under the umbrella of a Market-Makers obligation to engage in dealing to maintain fair and orderly markets. No specific argument is provided with respect to removing this provision. See Securities Exchange Act 87024 September 19, 2019, 84 FR
50545 September 25, 2019 SRCBOE2019059
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Certain Rules Relating To Market-Makers Upon Migration to the Trading System Used by Cboe Affiliated Exchanges.
6 See Nasdaq Phlx LLC, The Nasdaq Options Market LLC and Nasdaq BX, Inc. at Options 2, Section 4 Obligations of Market Makers.
7 See Options 3, Section 10 Priority of Quotes and Orders. Primary Market Makers are offered an enhanced allocation provided the Primary Market Maker is quoting at same price as a nonPriority Customer Order or Market Maker quote.
8 See Options 2, Section 4. MRX Market Makers must for example: 1 Compete with other Market Makers to improve the market in all series of options classes to which the Market Maker is appointed; 2 make markets that, absent changed market conditions, will be honored for the number of contracts entered into the Exchanges System in all series of options classes to which the Market
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