Voglio sapere a riguardo di…

Federal Register / Vol. 86, No. 189 / Monday, October 4, 2021 / Notices Act,1 and Rule 19b4 thereunder,2
notice is hereby given that on September 22, 2021, Nasdaq BX, Inc.
BX 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.
I. Self-Regulatory Organizations Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to establish a new rule applicable to the Nasdaq BX
Equities Market the Equities Market that explicitly requires members to input accurate information into BX
systems.
The text of the proposed rule change is available on the Exchanges website at https listingcenter.nasdaq.com/
rulebook/bx/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 In 2009, The Nasdaq Stock Market LLC Nasdaq adopted provisions that required its members to input accurate information into the Nasdaq Market Center and Nasdaq Options Market.3
The Exchange proposes to adopt a rule identical to Nasdaq Equity 2, Section 3a6 4 that makes clear its members 1 15

U.S.C. 78sb1.
CFR 240.19b4.
3 Securities Exchange Act Release No. 59547
March 10, 2009, 74 FR 11386 March 17, 2009
SRNASDAQ2009014.
4 Nasdaq Equity 2, Section 3 was previously numbered Nasdaq Rule 4611; however, the rule was renumbered and relocated in 2020. See Securities Exchange Act Release No. 3490577 December 7, 2 17

VerDate Sep<11>2014

22:52 Oct 01, 2021

Jkt 256001

responsibility to input accurate quotation and order information into the Equities Market.5 The Equities Market requires entry of certain information to post a quote or to enter an order. Such information, among other things, identifies the member, the size and price of the order or quote, and the members capacity in placing an order.
Accurate trade and quote information is fundamental to the operation of an efficient and fair market.
Moreover, the information input by members when posting a quote or placing an order is used for purposes of policing the Equities Market. For instance, the Financial Industry Regulatory Authority, Inc. FINRA
conducts trade abuse surveillances of the Equities Market on the Exchanges behalf. The trade abuse surveillances use capacity information input by members. A members capacity in a trade concerns whether the member is acting as an agent, principal, or riskless principal in the transaction.
Accordingly, accurate input of capacity information is of fundamental regulatory importance. BX does not have a rule that makes an explicit statement regarding a members obligation to input accurate information into the Equities Market. That said, BX
believes that disciplinary cases against members entering inaccurate or incomplete information may be brought appropriately under BX General 9, Section 1a, which requires members to observe high standards of commercial honor and just and equitable principles of trade. BX General 9, Section 1a also protects the investing public and the securities industry from dishonest practices that are unfair to investors or hinder the functioning of a free and open market, even though those practices may not be illegal or violate a specific rule or regulation. Because of the regulatory importance of accurate information input into the Equities Market, the Exchange believes rules that directly address members obligation to provide accurate information are appropriate. The proposed rule makes clear the members obligation to input accurate information into the Equities Market, and that failure to do so would be considered a violation of BX rules.
The Exchange notes that FINRA has rules that require the accurate entry of certain trade information into its systems. For example, FINRA Rule 7330d requires FINRA members to report to the OTC Reporting Facility certain specific trade-related 2020, 85 FR 80202 December 11, 2020 SR
NASDAQ2020079.
5 As defined in BX Equity 1, Section 1a6.

PO 00000

Frm 00099

Fmt 4703

Sfmt 4703

54771

information. A failure to provide such information represents a violation of FINRA rules, and may result in disciplinary action. FINRA has substantially similar requirements for other trade reporting systems it operates.
2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6b of the Act,6 in general, and furthers the objectives of Section 6b5 of the Act,7
in particular, in that the proposal is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, 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. The proposed amendments will serve to promote the accuracy of information input into the Equities Market. Accurate information is necessary for the efficient and fair operation of the Equities Market, and will assist the Exchange in surveilling the markets for fraudulent activity.
The Exchange also believes that the creation of this rule will bring greater transparency and will harmonize its rules with those of its affiliated exchange, Nasdaq, by giving its members the ability to compare the rules in their respective rulebooks.
B. Self-Regulatory Organizations 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 believes that the proposed amendments do not impose an undue burden on competition because the proposed rule will make clear the members obligation to input accurate quotation and order information into the Equities Market. Moreover, the proposed rule will align the rules of the Exchange closer to the rules of The Nasdaq Stock Market, which previously adopted an identical provision.

6 15
7 15

E:FRFM04OCN1.SGM

U.S.C. 78fb.
U.S.C. 78fb5.

04OCN1