82 FR 57627 - Self-Regulatory Organizations; Nasdaq BX, Inc.; Order Granting an Extension to Limited Exemption From Rule 612(c) of Regulation NMS in Connection With the Exchange's Retail Price Improvement Program Until June 30, 2018

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 233 (December 6, 2017)

[Federal Register Volume 82, Number 233 (Wednesday, December 6, 2017)]
[Notices]
[Page 57627]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-26285]


=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82198; File No. SR-BX-2014-048]


Self-Regulatory Organizations; Nasdaq BX, Inc.; Order Granting an 
Extension to Limited Exemption From Rule 612(c) of Regulation NMS in 
Connection With the Exchange's Retail Price Improvement Program Until 
June 30, 2018

December 1, 2017.
    On November 28, 2014, the Commission issued an order pursuant to 
its authority under Rule 612(c) of Regulation NMS \1\ (``Sub-Penny 
Rule'') that granted Nasdaq BX, Inc. (``BX'' or ``Exchange'') a limited 
exemption from the Sub-Penny Rule in connection with the operation of 
the Exchange's Retail Price Improvement Program (``RPI Program'').\2\ 
The limited exemption was granted concurrently with the Commission's 
approval of the Exchange's proposal to adopt the RPI Program on a one-
year pilot term.\3\ On November 20, 2015, the Commission extended the 
temporary exemption until December 2016 concurrently with an 
immediately effective filing that extended the operation of the RPI 
Program until December 1, 2016.\4\ On December 1, 2016, the Commission 
extended the temporary exemption until December 1, 2017 concurrently 
with an immediately effective filing that extended the operation of the 
RPI Program until December 1, 2017.\5\
---------------------------------------------------------------------------

    \1\ 17 CFR 242.612(c).
    \2\ See Securities Exchange Act Release No. 73702, 79 FR 72049 
(December 4, 2014) (SR-BX-2014-048) (``RPI Approval Order'').
    \3\ See id.
    \4\ See Securities Exchange Act Release No. 76490 (November 20, 
2015), 80 FR 74165 (November 27, 2015) (SR-BX-2015-073).
    \5\ See Securities Exchange Act Release No. 79446 (December 1, 
2016), 81 FR 88290 (December 7, 2016) (SR-BX-2016-065).
---------------------------------------------------------------------------

    The Exchange now seeks to extend the exemption until June 30, 
2018.\6\ The Exchange's request was made in conjunction with an 
immediately effectively filing that extends the operation of the RPI 
Program until June 30, 2018.\7\ In its request to extend the exemption, 
the Exchange notes that given the gradual implementation of the RPI 
Program and the preliminary participation and results, extending the 
exemption would provide additional opportunities for greater 
participation and assessment of the results.\8\ Accordingly, the 
Exchange has asked additional time to allow it and the Commission to 
analyze data concerning the RPI Program, which the Exchange committed 
to provide to the Commission.\9\ For this reason and the reasons stated 
in the RPI Approval Order originally granting the limited exemption, 
the Commission, pursuant to its authority under Rule 612(c) of 
Regulation NMS, finds that pursuant to its authority under Rule 612(c) 
of Regulation NMS, extending the exemption is appropriate in the public 
interest and consistent with the protection of investors.
---------------------------------------------------------------------------

    \6\ See SR-BX-2017-055; see also Letter from Jeffrey Davis, Vice 
President and Deputy General Counsel and Secretary, Nasdaq BX, Inc. 
to Eduardo A. Aleman, Assistant Secretary, Commission, dated 
November 28, 2017 (``BX Letter'').
    \7\ See SR-BX-2017-055.
    \8\ See, e.g., BX Letter at 3; RPI Approval Order, supra note 2.
    \9\ See, e.g., id.; RPI Approval Order, supra note 2.
---------------------------------------------------------------------------

    Therefore, it is hereby ordered that, pursuant to Rule 612(c) of 
Regulation NMS, the Exchange is granted an extension of the limited 
exemption from Rule 612 of Regulation NMS that allows the Exchange to 
accept and rank orders priced equal to or greater than $1.00 per share 
in increments of $0.001, in connection with the operation of its RPI 
Program, until June 30, 2018.
    The limited and temporary exemption extended by this Order is 
subject to modification or revocation if at any time the Commission 
determines that such action is necessary or appropriate in furtherance 
of the purposes of the Securities Exchange Act of 1934. Responsibility 
for compliance with any applicable provisions of the Federal securities 
laws must rest with the persons relying on the exemption that are the 
subject of this Order.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
Eduardo A. Aleman,
Assistant Secretary.
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(83).
---------------------------------------------------------------------------

[FR Doc. 2017-26285 Filed 12-5-17; 8:45 am]
 BILLING CODE 8011-01-P