[Federal Register Volume 85, Number 78 (Wednesday, April 22, 2020)]
[Notices]
[Pages 22466-22470]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08489]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-88668; File No. SR-NASDAQ-2020-016]


Self-Regulatory Organizations; The Nasdaq Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Adopt a New Rule Titled Transfer of Positions Within Options 6, Section 
5

April 16, 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 April 14, 2020, The Nasdaq Stock Market LLC (``Nasdaq'' 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to adopt a new rule of The Nasdaq Stock 
Market LLC (``NOM'') titled ``Transfer of Positions'' within NOM 
Options 6, Section 5.
    The text of the proposed rule change is available on the Exchange's 
website at http://nasdaq.cchwallstreet.com, 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 adopt a new rule titled, ``Transfer of 
Positions'' within NOM Options 6, Section 5, which is currently 
reserved. Today, NOM does not permit transfers. This proposed rule 
specifies the specific limited circumstances under which a Participant 
may effect transfers of positions. This rule would permit market 
participants to move positions from one account to another without 
first exposure of the transaction on the NOM. This rule would permit 
transfers upon the occurrence of significant, non-recurring events. The 
proposed rule change is similar to Cboe Rule 6.7.\3\
---------------------------------------------------------------------------

    \3\ See Securities and Exchange Act Release No. 88424 (March 19, 
2020), 85 FR 16981 (March 25, 2020) (SR-Cboe-2019-035) (Notice of 
Filing of Amendment Nos. 1 and 2 and Order Granting Accelerated 
Approval of a Proposed Rule Change, as Modified by Amendment Nos. 1 
and 2, Regarding Off-Floor Position Transfers).
---------------------------------------------------------------------------

Permissible Transfers
    The Exchange proposes to adopt new Options 6, Section 5 titled 
``Transfer of Positions'' to provide for the circumstances pursuant to 
which Participants may transfer their options positions without first 
exposing the order. This rule states that a Participant must be on at 
least one side of the transfer. This rule is similar to CBOE Rule 6.7. 
Currently, NOM has no rule that specifically addresses transfers.
    The Exchange proposes to provide at proposed Options 6, Section 
5(a), ``Permissible Transfers. Existing positions in options listed on 
the Exchange of a Participant or non-Participant that are to be 
transferred on, from, or to the books of a Clearing Participant may be 
transferred off the if the transfer involves one or more of the 
following events:
    (1) Pursuant to General 9, Section 1, an adjustment or transfer in 
connection with the correction of a bona fide error in the recording of 
a transaction or the transferring of a position to another account, 
provided that the original trade documentation confirms the error;
    (2) the transfer of positions from one account to another account 
where no change in ownership is involved (i.e., accounts of the same 
Person, provided the accounts are not in separate aggregation units or 
otherwise subject to information barrier or account segregation 
requirements;

[[Page 22467]]

    (3) the consolidation of accounts where no change in ownership is 
involved;
    (4) a merger, acquisition, consolidation, or similar non-recurring 
transaction for a Person;
    (5) the dissolution of a joint account in which the remaining 
Participant assumes the positions of the joint account;
    (6) the dissolution of a corporation or partnership in which a 
former nominee of the corporation or partnership assumes the positions;
    (7) positions transferred as part of a Participant's capital 
contribution to a new joint account, partnership, or corporation;
    (8) the donation of positions to a not-for-profit corporation;
    (9) the transfer of positions to a minor under the Uniform Gifts to 
Minors Act; or
    (10) the transfer of positions through operation of law from death, 
bankruptcy, or otherwise.\4\
---------------------------------------------------------------------------

    \4\ See Cboe Rule 6.7(a).
---------------------------------------------------------------------------

    The Exchange proposes to define ``Person'' as ``an individual, 
partnership (general or limited), joint stock company, corporation, 
limited liability company, trust or unincorporated organization, or any 
governmental entity or agency or political subdivision thereof.'' \5\ 
The proposed rule change makes clear that the transferred positions 
must be on, from, or to the books of a Clearing Member. The proposed 
rule change states that existing positions of a Participant or a non-
Participant may be subject to a transfer, except under specified 
circumstances in which a transfer may only be effected for positions of 
a Participant.\6\ The Exchange notes transfers of positions in 
Exchange-listed options may also be subject to applicable laws, rules, 
and regulations, including rules of other self-regulatory 
organizations.\7\ Except as explicitly provided in the proposed rule 
text, the proposed rule change is not intended to exempt position 
transfers from any other applicable rules or regulations, and proposed 
paragraph (h) makes this clear in the rule.
---------------------------------------------------------------------------

    \5\ See Cboe Rule 1.1.
    \6\ See proposed Options 6, Section 5(a)(5) and (7).
    \7\ See proposed Options 6, Section 5(h).
---------------------------------------------------------------------------

    Proposed Options 6, Section (b) codifies Exchange guidance 
regarding certain restrictions on permissible transfers related to 
netting of open positions and to margin and haircut treatment, unless 
otherwise permitted by proposed paragraph (f). No position may net 
against another position (``netting''), and no position transfer may 
result in preferential margin or haircut treatment.\8\ Netting occurs 
when long positions and short positions in the same series ``offset'' 
against each other, leaving no or a reduced position. For example, if a 
Participant wanted to transfer 100 long calls to another account that 
contained short calls of the same options series as well as other 
positions, even if the transfer is permitted pursuant to one of the 10 
permissible events listed in the proposed Rule, the Participant could 
not transfer the offsetting series, as they would net against each 
other and close the positions.\9\
---------------------------------------------------------------------------

    \8\ For example, positions may not transfer from a customer, 
joint back office, or firm account to a Market Maker account. 
However, positions may transfer from a Market Maker account to a 
customer, joint back office, or firm account (assuming no netting of 
positions occurs).
    \9\ See Cboe Rule 6.7(b).
---------------------------------------------------------------------------

    However, netting is permitted for transfers on behalf of a Market 
Maker account for transactions in multiply listed options series on 
different options exchanges, but only if the Market Maker nominees are 
trading for the same Participant, and the options transactions on the 
different options exchanges clear into separate exchange-specific 
accounts because they cannot easily clear into the same Market Maker 
account at the Clearing Corporation. In such instances, all Market 
Maker positions in the exchange-specific accounts for the multiply 
listed class would be automatically transferred on their trade date 
into one central Market Maker account (commonly referred to as a 
``universal account'') at the Clearing Corporation. Positions cleared 
into a universal account would automatically net against each other. 
Options exchanges permit different naming conventions with respect to 
Market Maker account acronyms (for example, lettering versus numbering 
and number of characters), which are used for accounts at the Clearing 
Corporation. A Market Maker may have a nominee with an appointment in 
class XYZ on Phlx, and have another nominee with an appointment in 
class XYZ on NOM, but due to account acronym naming conventions, those 
nominees may need to clear their transactions into separate accounts 
(one for Phlx Options transactions and another for NOM transactions) at 
the Clearing Corporation rather into a universal account (in which 
account the positions may net). The proposed rule change permits 
transfers from these separate exchange-specific accounts into the 
Market Maker's universal account in this circumstance to achieve this 
purpose.
Transfer Price
    Proposed Options 6, Section 5(c) states the transfer price, to the 
extent it is consistent with applicable laws, rules, and regulations, 
including rules of other self-regulatory organizations, and tax and 
accounting rules and regulations, at which an transfer is effected may 
be: (1) The original trade prices of the positions that appear on the 
books of the trading Clearing Participant, in which case the records of 
the transfer must indicate the original trade dates for the positions; 
provided, transfers to correct bona fide errors pursuant to proposed 
subparagraph (a)(1) must be transferred at the correct original trade 
prices; (2) mark-to-market prices of the positions at the close of 
trading on the transfer date; (3) mark-to-market prices of the 
positions at the close of trading on the trade date prior to the 
transfer date; \10\ or (4) the then-current market price of the 
positions at the time the transfer is effected.\11\
---------------------------------------------------------------------------

    \10\ For example, for a transfer that occurs on a Tuesday, the 
transfer price may be based on the closing market price on Monday.
    \11\ See Cboe Rule 6.7(c).
---------------------------------------------------------------------------

    This proposed rule change provides market participants that effect 
transactions with flexibility to select a transfer price based on 
circumstances of the transfer and their business. However, for 
corrections of bona fide errors, because those transfers are necessary 
to correct processing errors that occurred at the time of transaction, 
those transfers would occur at the original transaction price, as the 
purpose of the transfer is to create the originally intended result of 
the transaction.
Prior Written Notice
    Proposed Options 6, Section 5(d) requires a Participant and its 
Clearing Participant (to the extent that the Participant is not self-
clearing) to submit to the Exchange, in a manner determined by the 
Exchange, written notice prior to effecting an transfer from or to the 
account of a Participant(s).\12\ The notice must indicate: The 
Exchange-listed options positions to be transferred; the nature of the 
transaction; the enumerated provision(s) under proposed paragraph (a) 
pursuant to which the positions are being transferred; the name of the 
counterparty(ies); the anticipated transfer date; the method for 
determining the transfer price; and any

[[Page 22468]]

other information requested by the Exchange.\13\ The proposed notice 
will ensure the Exchange is aware of all transfers so that it can 
monitor and review them (including the records that must be retained 
pursuant to proposed paragraph (e)) to determine whether they are 
effected in accordance with the Rules.
---------------------------------------------------------------------------

    \12\ This notice provision applies only to transfers involving a 
Participant's positions and not to positions of non-Participant 
parties, as they are not subject to the Rules. In addition, no 
notice would be required to effect transfers to correct bona fide 
errors pursuant to proposed subparagraph (a)(1).
    \13\ See Cboe Rule 6.7(d).
---------------------------------------------------------------------------

    Additionally, requiring notice from the Participant(s) and its 
Clearing Participant(s) will ensure both parties are in agreement with 
respect to the terms of the transfer. As noted in proposed subparagraph 
(d)(2), receipt of notice of an transfer does not constitute a 
determination by the Exchange that the transfer was effected or 
reported in conformity with the requirements of proposed Section 10(b). 
Notwithstanding submission of written notice to the Exchange, 
Participants and Clearing Participants that effect transfers that do 
not conform to the requirements of proposed Section 10(b) will be 
subject to appropriate disciplinary action in accordance with the 
Rules.
Records
    Similarly, proposed Options 6, Section 5(e) requires each 
Participant and each Clearing Participant that is a party to a transfer 
must make and retain records of the information provided in the written 
notice to the Exchange pursuant to proposed subparagraph (e)(1), as 
well as information on the actual Exchange-listed options that are 
ultimately transferred, the actual transfer date, and the actual 
transfer price (and the original trade dates, if applicable), and any 
other information the Exchange may request the Participant or Clearing 
Participant provide.\14\
---------------------------------------------------------------------------

    \14\ See Cboe Rule 6.7(e).
---------------------------------------------------------------------------

Presidential Exemption
    Proposed paragraph (f) provides exemptions approved by the 
Exchange's Chief Executive Officer or President (or senior-level 
designee). Specifically, this provision is in addition to the 
exemptions set forth in proposed paragraph (a). The Exchange proposes 
that the Exchange Chief Executive Officer or President (or senior-level 
designee) may grant an exemption from the requirement of this proposed 
Rule, on his or her own motion or upon application of the Participant 
(with respect to the Participant's positions) or a Clearing Member 
(with respect to positions carried and cleared by the Clearing 
Members). The Chief Executive Officer, the President or his or her 
designee, may permit a transfer if necessary or appropriate for the 
maintenance of a fair and orderly market and the protection of 
investors and is in the public interest, including due to unusual or 
extraordinary circumstances. For example, an exemption may be granted 
if the market value of the Person's positions would be compromised by 
having to comply with the requirement to trade on the Exchange pursuant 
to the normal auction process or when, in the judgment of the Chief 
Executive Officer, President or his or her designee, market conditions 
make trading on the Exchange impractical.\15\
---------------------------------------------------------------------------

    \15\ See Cboe Rule 6.7(f).
---------------------------------------------------------------------------

Routine, Recurring Transfers
    The Exchange proposes within Options 6, Section 5(g) that the 
transfer procedure set forth in Options 6, Section 5 is intended to 
facilitate non-routine, nonrecurring movements of positions.\16\ The 
transfer procedure is not to be used repeatedly or routinely in 
circumvention of the normal auction market process.
---------------------------------------------------------------------------

    \16\ See Cboe Rule 6.7(g).
---------------------------------------------------------------------------

Exchange-Listed Options
    The Exchange proposes within Options 6, Section 5(h) notes that the 
transfer procedure set forth in Options 6, Section 5 is only applicable 
to positions in options listed on the Exchange. Transfers of positions 
in Exchange-listed options may also be subject to applicable laws, 
rules, and regulations, including rules of other self-regulatory 
organizations. Transfers of non-Exchange listed options and other 
financial instruments are not governed by this Rule.\17\
---------------------------------------------------------------------------

    \17\ See Cboe Rule 6.7(h).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\18\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\19\ 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.
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78f(b).
    \19\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    Specifically, the Exchange believes the proposed transfer rule is 
consistent with the Section 6(b)(5) \20\ requirements that the rules of 
an exchange be 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. 
Additionally, the Exchange believes the proposed rule change is 
consistent with the Section 6(b)(5) \21\ requirement that the rules of 
an exchange not be designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \20\ 15 U.S.C. 78f(b)(5).
    \21\ Id.
---------------------------------------------------------------------------

    The Exchange believes that permitting transfers under new Options 
6, Section 5 in very limited circumstances is reasonable to allow a 
Member to accomplish certain goals efficiently. The proposed rule 
permits transfers in situations involving dissolutions of entities or 
accounts, for purposes of donations, mergers or by operation of law. 
For example, a Participant that is undergoing a structural change and a 
one-time movement of positions may require a transfer of positions or a 
Participant that is leaving a firm that will no longer be in business 
may require a transfer of positions to another firm. Also, a 
Participant may require a transfer of positions to make a capital 
contribution. The above-referenced circumstances are non-recurring 
situations where the transferor continues to maintain some ownership 
interest or manage the positions transferred. By contrast, repeated or 
routine transfers between entities or accounts--even if there is no 
change in beneficial ownership as a result of the transfer--is 
inconsistent with the purposes for which the proposed rule was adopted. 
Accordingly, the Exchange believes that such activity should not be 
permitted under the rules and thus, seeks to adopt language in proposed 
paragraph (f) to proposed Options 6, Section 5 that the transfer of 
positions procedures set forth the proposed rule are intended to 
facilitate non-recurring movements of positions.
    The proposed rule change will provide market participants that 
experience these limited, non-recurring events with an efficient and 
effective means to transfer positions in these situations. The Exchange 
believes the proposed rule change regarding permissible transfer prices 
provides market participants with flexibility to determine the price 
appropriate for their business, which maintain cost bases in accordance 
with normal accounting practices and removes impediments to a free and 
open market.

[[Page 22469]]

    The proposed rule change which requires notice and maintenance of 
records will ensure the Exchange is able to review transfers for 
compliance with the Rules, which prevents fraudulent and manipulative 
acts and practices. The requirement to retain records is consistent 
with the requirements of Rule 17a-3 and 17a-4 under the Act.
    Similar to Cboe Rule 6.7, the Exchange would permit a presidential 
exemption. The Exchange believes that this exemption is consistent with 
the Act because the Exchange's Chief Executive Officer or President (or 
senior-level designee) would consider an exemption in very limited 
circumstances. The transfer process is intended to facilitate non-
routine, nonrecurring movements of positions and, therefore, is not to 
be used repeatedly or routinely in circumvention of the normal auction 
market process. Proposed Options 6, Section 5(f) specifically provides 
within the rule text that the Exchange's Chief Executive Officer or 
President (or senior-level designee) may in his or her judgment allow a 
transfer if it is necessary or appropriate for the maintenance of a 
fair and orderly market and the protection of investors and is in the 
public interest, including due to unusual or extraordinary 
circumstances such as the market value of the Person's positions will 
be comprised by having to comply with the requirement to trade on the 
Exchange pursuant to the normal auction process or, when in the 
judgment of President or his or her designee, market conditions make 
trading on the Exchange impractical. These standards within proposed 
Options 6, Section 5(f) are intended to provide guidance concerning the 
use of this exemption which is intended to provide the Exchange with 
the ability to utilize the exemption for the maintenance of a fair and 
orderly market and the protection of investors and is in the public 
interest. The Exchange believes that the exemption is consistent with 
the Act because it would allow the Exchange's Chief Executive Officer 
or President (or senior-level designee) to act in certain situations 
which comply with the guidance within Options 6, Section 5(f) which are 
intended to protect investors and the general public. While Cboe grants 
an exemption to the President (or senior-level designee),\22\ the 
Exchange has elected to grant an exemption to Exchange's Chief 
Executive Officer or President (or senior-level designee), who are 
similarly situated with the organization as senior-level individuals.
---------------------------------------------------------------------------

    \22\ See Cboe Rule 6.7(f).
---------------------------------------------------------------------------

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 that is not necessary or appropriate 
in furtherance of the purposes of the Act.
    The Exchange does not believe the proposed rule change will impose 
an undue burden on intra-market competition as the transfer procedure 
may be utilized by any Participant and the rule will apply uniformly to 
all Participants. Use of the transfer procedure is voluntary, and all 
Participants may use the procedure to transfer positions as long as the 
criteria in the proposed rule are satisfied. With this change, a 
Participant that experiences limited permissible, non-recurring events 
would have an efficient and effective means to transfer positions in 
these situations. The Exchange believes the proposed rule change 
regarding permissible transfer prices provides market participants with 
flexibility to determine the price appropriate for their business, 
which determine prices in accordance with normal accounting practices 
and removes impediments to a free and open market. The Exchange does 
not believe the proposed notice and record requirements are unduly 
burdensome to market participants. The Exchange believes the proposed 
requirements are reasonable and will ensure the Exchange is aware of 
transfers and would be able to monitor and review the transfers to 
ensure the transfer falls within the proposed rule.
    Adopting an exemption, similar to Cboe Rule 6.7, to permit the 
Exchange's Chief Executive Officer or President (or senior-level 
designee) to grant an exemption to Options 6, Section 5(a) prohibition 
if, in his or her judgment, does not impose an undue burden on 
competition. Circumstances where, due to unusual or extraordinary 
circumstances such as the market value of the Person's positions would 
be comprised by having to comply with the requirement to trade on the 
Exchange pursuant to the normal auction process or, would be taken into 
consideration in each case where, in the judgment of the Exchange's 
Chief Executive Officer or President (or senior-level designee), market 
conditions make trading on the Exchange impractical.
    The Exchange does not believe the proposed rule change will impose 
an undue burden on inter-market competition. The proposed position 
transfer procedure is not intended to be a competitive trading tool. 
The proposed rule change permits, in limited circumstances, a transfer 
to facilitate non-routine, nonrecurring movements of positions. As 
provided for in proposed Options 6, Section 5(g), it would not be used 
repeatedly or routinely in circumvention of the normal auction market 
process. Proposed Options 6, Section 5(a) specifically provides within 
the rule text that the Exchange's Chief Executive Officer or President 
(or senior-level designee) may in his or her judgment allow a transfer 
for the maintenance of a fair and orderly market and the protection of 
investors and is in the public interest. The Exchange believes that the 
exemption does not impose an undue burden on competition as the 
Exchange's Chief Executive Officer or President (or senior-level 
designee) would apply the exemption consistent with the guidance within 
Options 6, Section 5(f). Additionally, as discussed above, the proposed 
rule change is similar to Cboe Rule 6.7. The Exchange believes having 
similar rules related to transfer positions to those of other options 
exchanges will reduce the administrative burden on market participants 
of determining whether their transfers comply with multiple sets of 
rules.

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 \23\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\24\
---------------------------------------------------------------------------

    \23\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \24\ 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.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative for 30 days from the

[[Page 22470]]

date of filing. However, Rule 19b-4(f)(6)(iii) \25\ permits the 
Commission to 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. The 
Commission notes that waiver of the operative delay would provide 
Participants with the ability to request a transfer, for limited, non-
recurring types of transfers, without the need for exposing those 
orders on the Exchange, similar to Cboe.\26\ The Commission believes 
that waiver of the 30-day operative delay is consistent with the 
protection of investors and the public interest. Accordingly, the 
Commission waives the 30-day operative delay and designates the 
proposed rule change operative upon filing.\27\
---------------------------------------------------------------------------

    \25\ 17 CFR 240.19b-4(f)(6)(iii).
    \26\ See CBOE Rule 6.7.
    \27\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    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 rule-comments@sec.gov. Please include 
File Number SR-NASDAQ-2020-016 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-NASDAQ-2020-016. 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-NASDAQ-2020-016 and should be submitted 
on or before May 13, 2020.
---------------------------------------------------------------------------

    \28\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\28\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-08489 Filed 4-21-20; 8:45 am]
 BILLING CODE 8011-01-P


