83 FR 15439 - Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Chapter IV of the Exchange's Schedule of Fees
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 69 (April 10, 2018)
Federal Register Volume 83, Issue 69 (April 10, 2018)
| Page Range | 15439-15441 | |
| FR Document | 2018-07239 |
[Federal Register Volume 83, Number 69 (Tuesday, April 10, 2018)] [Notices] [Pages 15439-15441] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-07239] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82988; File No. SR-GEMX-2018-11] Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Chapter IV of the Exchange's Schedule of Fees April 4, 2018. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 [[Page 15440]] (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on March 22, 2018, Nasdaq GEMX, LLC (``GEMX'' 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 amend Chapter IV of the Exchange's Schedule of Fees, as described below. The text of the proposed rule change is available on the Exchange's website at http://nasdaqgemx.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 amend Chapter IV of its Schedule of Fees to harmonize it with the rules of Nasdaq BX, Inc. (``BX''). The amendments eliminate or replace certain obsolete language in the Schedule of Fees. Specifically, the Exchange proposes to amend Chapter IV.F.2, under the heading ``Market Data Connectivity,'' to re- categorize and to update references to the CBOE/Bats/Direct Edge data feeds to reflect their current names. Similarly, the Exchange proposes to delete a $1,000 installation fee that presently applies to the Direct Edge feeds because the Direct Edge feeds are now offerings of CBOE, along with the BZX and BYX feeds. Going forward, a single, one- time $1,000 installation fee will apply to subscribers to any or all of the CBOE data feeds. The Exchange notes that this proposal will render this paragraph of Chapter IV.F.2 consistent with BX Rule 7034. The Exchange also proposes to correct a typographical error in the name of the TSXV Level 2 Feed. The proposal adds a footnote to the first line of Chapter IV.F, which was mistakenly omitted from the Schedule of Fees, which states that the co-location services described therein are provided by Nasdaq Technology Services LLC. The Exchange also proposes to correct a typographical error in the numbering of the subsection of Chapter IV entitled ``Exchange Testing Facilities.'' The proposal changes the lettering of this subsection from ``I.'' to ``J.'' 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\3\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\4\ 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. The Exchange believes that its proposal to update Chapter IV.F.2 will serve the interests of the public and investors by ensuring that the Exchange's Rules are accurate and current with respect to the names of the third party data feeds to which it offers connectivity. Furthermore, the Exchange believes that it is in the public interest to correct typographical errors that could otherwise lead to confusion. These proposals will not impact competition or limit access to or availability of the Exchange or its systems. The Exchange notes the proposal is noncontroversial because BX has made the same changes to its rules. --------------------------------------------------------------------------- \3\ 15 U.S.C. 78f(b). \4\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange's proposal to eliminate the $1,000 installation fee that presently applies to the Direct Edge feeds is consistent with Section 6(b) of the Act,\5\ in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\6\ in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using any facility, and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. The proposal is reasonable because the Direct Edge feeds are now offerings of CBOE, along with the BZX and BYX feeds. The Exchange believes it is equitable, going forward, to charge a single, one-time $1,000 installation fee to subscribers to any or all of the CBOE data feeds, including the BZX Depth, BYX Depth, EDGA Depth, and EDGX Depth feeds. This proposal is not unfairly discriminatory because it will apply to all similarly situated customers of the CBOE data feeds. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b). \6\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- 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 not necessary or appropriate in furtherance of the purposes of the Act. In this instance, the proposed changes merely replace obsolete text, update references to data feeds, and correct typographical errors. The Exchange does not intend for or expect that such changes will have any impact on competition. 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) of the Act \7\ and Rule 19b- 4(f)(6) thereunder.\8\ --------------------------------------------------------------------------- \7\ 15 U.S.C. 78s(b)(3)(A). \8\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) requires a self-regulatory organization to give the Commission written notice of its intent to file the proposed rule change, along with a brief description and text of 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 pursuant to Rule 19b-4(f)(6) under the Act \9\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \10\ permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the [[Page 15441]] public interest. The Exchange has requested that the Commission waive the 30-day operative delay so that the proposed rule change may become operative upon filing. Waiver of the operative delay would allow the Exchange to update its rules without delay to reflect current and accurate information with respect to the third party data feeds to which it offers connectivity and to correct typographical errors. The Commission also notes that BX recently made similar changes to its rules.\11\ Therefore, 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 hereby waives the operative delay and designates the proposed rule change operative upon filing.\12\ --------------------------------------------------------------------------- \9\ 17 CFR 240.19b-4(f)(6). \10\ 17 CFR 240.19b-4(f)(6)(iii). \11\ See Securities Exchange Act Release No. 82628 (February 5, 2018), 83 FR 5818 (February 9, 2018) (SR-BX-2018-006). \12\ For purposes only of waiving the 30-day operative delay, the Commission also has 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 change 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 CommentsUse 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-GEMX-2018-11 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-GEMX-2018-11. 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-GEMX-2018-11, and should be submitted on or before May 1, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-07239 Filed 4-9-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 69 / Tuesday, April 10, 2018 / Notices 15439
and requires greater expenditure of address any competitive issues but Commission, 100 F Street NE,
human and technical resources than rather to provide more clarity and Washington, DC 20549–1090.
regulating OTP Holders’ non-customer transparency regarding how the All submissions should refer to File No.
trading activity. The Exchange believes Exchange assesses and collects the ORF. SR–NYSEArca–2018–19. This file
the ORF is designed to be fair by The Exchange believes any burden on number should be included on the
assessing fees to those OTP Holders that competition imposed by the proposed subject line if email is used. To help the
require more Exchange regulatory rule change is outweighed by the need Commission process and review your
services based on the amount of to help the Exchange adequately fund comments more efficiently, please use
customer options business they its regulatory activities to ensure only one method. The Commission will
conduct. compliance with the Exchange Act.
The Exchange believes it is post all comments on the Commission’s
reasonable, equitable and C. Self-Regulatory Organization’s internet website (http://www.sec.gov/
nondiscriminatory to not impose the Statement on Comments on the rules/sro.shtml). Copies of the
ORF on outbound linkage trades. Proposed Rule Change Received From submission, all subsequent
Linkage trades’’ are tagged in the Members, Participants, or Others amendments, all written statements
Exchange’s system, so the Exchange can with respect to the proposed rule
No written comments were solicited
distinguish them from other trades. A change that are filed with the
or received with respect to the proposed
customer order routed to another Commission, and all written
rule change.
exchange results in two customer trades, communications relating to the
one from the originating exchange and III. Date of Effectiveness of the proposed rule change between the
one from the recipient exchange. Proposed Rule Change and Timing for Commission and any person, other than
Charging ORF on both trades could Commission Action those that may be withheld from the
result in double-billing of ORF for a The foregoing rule change is effective public in accordance with the
single customer order, thus the upon filing pursuant to Section provisions of 5 U.S.C. 552, will be
Exchange will not assess ORF on 19(b)(3)(A) 15 of the Act and available for website viewing and
outbound linkage trades in a linkage subparagraph (f)(2) of Rule 19b–4 16 printing in the Commission’s Public
scenario. thereunder, because it establishes a due, Reference Room, 100 F Street NE,
The Exchange believes that the fee, or other charge imposed by the Washington, DC 20549, on official
proposal deleting outdated reference to Exchange. business days between the hours of
long-past effective dates and removing At any time within 60 days of the 10:00 a.m. and 3:00 p.m. Copies of the
the word ‘‘indirectly’’ is reasonable as it filing of such proposed rule change, the filing also will be available for
would streamline the Fee Schedule by Commission summarily may inspection and copying at the principal
removing superfluous language thereby temporarily suspend such rule change if office of the Exchange. All comments
making the Fee Schedule easier for it appears to the Commission that such received will be posted without change.
market participants to navigate. action is necessary or appropriate in the Persons submitting comments are
The ORF is designed to recover a public interest, for the protection of cautioned that we do not redact or edit
material portion of the costs to the investors, or otherwise in furtherance of personal identifying information from
Exchange of the supervision and the purposes of the Act. If the comment submissions. You should
regulation of OTP Holder customer Commission takes such action, the submit only information that you wish
options business, including performing Commission shall institute proceedings to make available publicly. All
routine surveillances and investigations, under Section 19(b)(2)(B) 17 of the Act to submissions should refer to File No.
as well as policy, rulemaking, determine whether the proposed rule SR–NYSEArca–2018–19, and should be
interpretive, and enforcement activities. change should be approved or submitted on or before May 1, 2018.
The Exchange monitors the amount of disapproved. For the Commission, by the Division of
revenue collected from the ORF to Trading and Markets, pursuant to delegated
ensure that this revenue, in combination IV. Solicitation of Comments authority.18
with other regulatory fees and fines, Interested persons are invited to Eduardo A. Aleman,
does not exceed regulatory costs. The submit written data, views, and Assistant Secretary.
Exchange has designed the ORF to arguments concerning the foregoing, [FR Doc. 2018–07244 Filed 4–9–18; 8:45 am]
generate revenues that, when combined including whether the proposed rule BILLING CODE 8011–01–P
with all of the Exchange’s other change is consistent with the Act.
regulatory fees, would be less than or Comments may be submitted by any of
equal to the Exchange’s regulatory costs, the following methods: SECURITIES AND EXCHANGE
which is consistent with the view of the COMMISSION
Securities and Exchange Commission Electronic Comments
(‘‘Commission’’) that regulatory fees be • Use the Commission’s internet [Release No. 34–82988; File No. SR–GEMX–
used for regulatory purposes and not to comment form (http://www.sec.gov/ 2018–11]
support the Exchange’s business side. In rules/sro.shtml); or
this regard, the Exchange believes that • Send an email to rule-comments@ Self-Regulatory Organizations; Nasdaq
the ORF is reasonable. sec.gov. Please include File No. SR– GEMX, LLC; Notice of Filing and
NYSEArca–2018–19 on the subject line. Immediate Effectiveness of Proposed
B. Self-Regulatory Organization’s
Rule Change To Amend Chapter IV of
daltland on DSKBBV9HB2PROD with NOTICES
Statement on Burden on Competition Paper Comments the Exchange’s Schedule of Fees
The Exchange does not believe that • Send paper comments in triplicate
the proposed rule change will impose April 4, 2018.
to Secretary, Securities and Exchange
any burden on competition that is not Pursuant to Section 19(b)(1) of the
necessary or appropriate in furtherance 15 15 U.S.C. 78s(b)(3)(A). Securities Exchange Act of 1934
of the purposes of the Act. The 16 17 CFR 240.19b–4(f)(2).
proposed rule change is not intended to 17 15 U.S.C. 78s(b)(2)(B). 18 17 CFR 200.30–3(a)(12).
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![Federal Register / Vol. 83, No. 69 / Tuesday, April 10, 2018 / Notices 15441
public interest. The Exchange has number should be included on the SECURITIES AND EXCHANGE
requested that the Commission waive subject line if email is used. To help the COMMISSION
the 30-day operative delay so that the Commission process and review your
proposed rule change may become [Release No. 34–82994; File No. SR–
comments more efficiently, please use
operative upon filing. Waiver of the NASDAQ–2018–008]
only one method. The Commission will
operative delay would allow the post all comments on the Commission’s Self-Regulatory Organizations; The
Exchange to update its rules without internet website (http://www.sec.gov/ Nasdaq Stock Market LLC; Notice of
delay to reflect current and accurate rules/sro.shtml). Copies of the Designation of Longer Period for
information with respect to the third submission, all subsequent Commission Action on a Proposed
party data feeds to which it offers amendments, all written statements Rule Change To Modify the Listing
connectivity and to correct with respect to the proposed rule Requirements Contained in Listing
typographical errors. The Commission change that are filed with the Rule 5635(d) To Change the Definition
also notes that BX recently made similar of Market Value for Purposes of the
Commission, and all written
changes to its rules.11 Therefore, the Shareholder Approval Rules and
communications relating to the
Commission believes that waiver of the Eliminate the Requirement for
30-day operative delay is consistent proposed rule change between the
Commission and any person, other than Shareholder Approval of Issuances at
with the protection of investors and the a Price Less Than Book Value but
public interest. Accordingly, the those that may be withheld from the
public in accordance with the Greater Than Market Value
Commission hereby waives the
operative delay and designates the provisions of 5 U.S.C. 552, will be April 4, 2018.
proposed rule change operative upon available for website viewing and On January 30, 2018, the Nasdaq
filing.12 printing in the Commission’s Public Stock Market LLC (‘‘Nasdaq’’ or the
At any time within 60 days of the Reference Room, 100 F Street NE, ‘‘Exchange’’) filed with the Securities
filing of the proposed rule change, the Washington, DC 20549 on official and Exchange Commission
Commission summarily may business days between the hours of (‘‘Commission’’), pursuant to Section
temporarily suspend such rule change if 10:00 a.m. and 3:00 p.m. Copies of the 19(b)(1) of the Securities Exchange Act
it appears to the Commission that such filing also will be available for of 1934 (‘‘Act’’) 1 and Rule 19b–4
action is necessary or appropriate in the inspection and copying at the principal thereunder,2 a proposed rule change to
public interest, for the protection of office of the Exchange. All comments modify the listing requirements
investors, or otherwise in furtherance of received will be posted without change. contained in Listing Rule 5635(d) to
the purposes of the Act. If the Persons submitting comments are change the definition of market value
Commission takes such action, the cautioned that we do not redact or edit for purposes of the shareholder approval
Commission shall institute proceedings personal identifying information from rules and eliminate the requirement for
to determine whether the proposed rule comment submissions. You should shareholder approval of issuances at a
change should be approved or submit only information that you wish price less than book value but greater
disapproved. to make available publicly. All than market value. The proposed rule
IV. Solicitation of Comments submissions should refer to File change was published for comment in
Number SR–GEMX–2018–11, and the Federal Register on February 20,
Interested persons are invited to 2018.3 The Commission received three
submit written data, views, and should be submitted on or before May
1, 2018. comments in response to the proposed
arguments concerning the foregoing, rule change.4
including whether the proposed rule For the Commission, by the Division of Section 19(b)(2) of the Act 5 provides
change is consistent with the Act. Trading and Markets, pursuant to delegated that, within 45 days of the publication
Comments may be submitted by any of authority.13 of the notice of the filing of a proposed
the following methods: Eduardo A. Aleman, rule change, or within such longer
Electronic Comments Assistant Secretary. period up to 90 days as the Commission
may designate if it finds such longer
• Use the Commission’s internet [FR Doc. 2018–07239 Filed 4–9–18; 8:45 am]
period to be appropriate and publishes
comment form (http://www.sec.gov/ BILLING CODE 8011–01–P
its reasons for so finding or as to which
rules/sro.shtml); or
the self-regulatory organization
• Send an email to rule-comments@
consents, the Commission shall approve
sec.gov. Please include File Number SR–
the proposed rule change, disapprove
GEMX–2018–11 on the subject line.
the proposed rule change, or institute
Paper Comments
1 15 U.S.C. 78s(b)(1).
• Send paper comments in triplicate 2 17 CFR 240.19b–4.
to Secretary, Securities and Exchange 3 See Securities Exchange Act Release No. 82702
Commission, 100 F Street NE, (February 13, 2018), 83 FR 7269 (February 20,
Washington, DC 20549–1090. 2018).
4 See Letters to Brent J. Fields, Secretary,
All submissions should refer to File
Commission, from Michael A. Adelstein, Partner,
Number SR–GEMX–2018–11. This file Kelley Drye & Warren LLP, dated February 28,
daltland on DSKBBV9HB2PROD with NOTICES
2018; Penny Somer-Grief, Chair, and Gregory T.
11 See Securities Exchange Act Release No. 82628 Lawrence, Vice-Chair, Committee on Securities Law
(February 5, 2018), 83 FR 5818 (February 9, 2018) of the Business Law Section of the Maryland State
(SR–BX–2018–006). Bar Association, dated March 13, 2018; and Greg
12 For purposes only of waiving the 30-day Rodgers, Latham Watkins, dated March 14, 2018.
operative delay, the Commission also has The comment letters are available at: https://
considered the proposed rule’s impact on www.sec.gov/comments/sr-nasdaq-2018-008/
efficiency, competition, and capital formation. See nasdaq2018008.htm.
15 U.S.C. 78c(f). 13 17 CFR 200.30–3(a)(12). 5 15 U.S.C. 78s(b)(2).
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Document Created: 2018-04-09 23:51:53
Document Modified: 2018-04-09 23:51:53
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 83 FR 15439 |
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