May 24, 2019.
On April 12, 2019, Nasdaq MRX, LLC (“MRX” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”) 
and Rule 19b-4 thereunder,
a proposal to adopt rules to provide for the trading of Complex Orders. The proposed rule change was published for comment in the Federal Register on April 23, 2019.
The Commission received no comment letters regarding the proposed rule change. This order approves the proposed rule change.
II. Description of the Proposed Rule Change
MRX proposes to adopt rules governing the trading of Complex Orders.
The proposed rules address, among other things, the order types, auction and crossing mechanisms, trading increments, priority, execution, opening process, risk protections, obvious error provisions, and data feeds for Complex Orders. MRX states that the proposed Complex Order functionality is identical to the Complex Order functionality currently available on Nasdaq ISE, LLC (“ISE”), and that the proposed rules are identical to corresponding ISE rules.
As described more fully in the Notice,
MRX proposes to, among other things: (1) Start Printed Page 25333Adopt new MRX Rule 722 to describe the availability of certain order types for Complex Orders and the priority and execution of Complex Orders; 
(2) add a defined term, “Professional Customer,” in MRX Rule 100(a)(54A); 
(3) amend MRX Rule 714 to exclude Complex Order transactions from the anti-internalization protection; 
(4) amend MRX Rule 715 to define “legging orders” and “QCC with Stock Orders” and to revise the Ouch to Trade Options and Specialized Quote Feed protocols to include complex instruments; 
(5) add a Complex Facilitation Mechanism and Complex Solicited Order Mechanism to MRX Rule 716; 
(6) amend MRX Rule 718(a)(5) to adopt a new Nasdaq MRX Spread Feed that will provide information regarding Complex Orders; 
(7) amend MRX Rule 720, relating to the nullification of trades and obvious errors, to address transactions in Complex Orders; 
(8) revise MRX Rule 721 to provide for Complex Customer Cross Orders, Complex Qualified Contingent Cross Orders, and Qualified Contingent Cross Orders with Stock; 
(9) add a new Complex Price Improvement Mechanism to MRX Rule 723; 
and (10) adopt new MRX Rule 724 to establish various risk protections for Complex Orders.
The proposal also includes non-substantive and technical changes related to the adoption of the Complex Order functionality.
III. Discussion and Commission Findings
After careful review, the Commission finds that the proposed rule change is consistent with the requirements of the Act,
and the rules and regulations thereunder applicable to a national securities exchange.
In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act,
which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices, 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, and that the rules are not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. The Commission believes that the proposed rules are consistent with the Act because they are substantially identical to ISE's rules governing the trading of Complex Orders, which the Commission has reviewed previously. Because they are substantially identical to ISE's Complex Order rules, MRX's proposed rules do not raise new or novel regulatory issues. The Commission believes that the proposed rules could assist market participants in making informed decisions regarding the trading of Complex Orders on MRX, including the order types, priority, auction and crossing mechanisms, and risk protections available for Complex Orders traded on MRX.
It is therefore ordered, pursuant to Section 19(b)(2) of the Act,
that the proposed rule change (SR-MRX-2019-08) is approved.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Eduardo A. Aleman,
[FR Doc. 2019-11330 Filed 5-30-19; 8:45 am]
BILLING CODE 8011-01-P