83 FR 16157 - Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Pricing Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 72 (April 13, 2018)
Federal Register Volume 83, Issue 72 (April 13, 2018)
| Page Range | 16157-16161 | |
| FR Document | 2018-07672 |
[Federal Register Volume 83, Number 72 (Friday, April 13, 2018)] [Notices] [Pages 16157-16161] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-07672] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83016; File No. SR-Phlx-2018-26] Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Pricing Schedule April 9, 2018. 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 March 27, 2018, Nasdaq PHLX LLC (``Phlx'' 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 Sections VIII, X, and XI of the Exchange's Pricing Schedule, as described below. The text of the proposed rule change is available on the Exchange's website at http://nasdaqphlx.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 several sections of its Pricing Schedule to harmonize its colocation, [[Page 16158]] connectivity, and direct connectivity services and fees with the rules of Nasdaq BX, Inc. (``BX''). The Exchange also proposes to update or eliminate certain obsolete or extraneous language from its Pricing Schedule. The Exchange, along with its sister exchanges, BX, The Nasdaq Stock Market LLC (``Nasdaq''), Nasdaq ISE, LLC (``Nasdaq ISE''), Nasdaq MRX, LLC (``Nasdaq MRX''), and Nasdaq GEMX, LLC (``Nasdaq GEMX'') (collectively, the ``Nasdaq, Inc. Exchanges''), offer certain colocation, connectivity, and direct connectivity services to their customers on a shared basis, meaning that a customer may utilize theses services to gain access to any or all of the Nasdaq, Inc. Exchanges. The Nasdaq, Inc. Exchanges only charge customers once for these shared services, even to the extent that customers use the services to connect to more than one of the Nasdaq, Inc. Exchanges. The amendments that the Exchange proposes herein are intended principally to ensure that the shared services that the Exchange offers, and the fees that it charges for such services, are uniform across the Nasdaq, Inc. Exchanges' rulebooks and reflect relevant changes that have been made already to the rules of BX. The amendments also update or remove certain language from the Exchange's Pricing Schedule that refers to obsolete terms or expired time-limited programs or that is otherwise extraneous. The first amendment that the Exchange proposes is to Section VIII of its Pricing Schedule, entitled ``NASDAQ PSX FEES.'' The Exchange proposes to amend the text under the heading ``Testing Facilities'' to eliminate extraneous provisions that were inadvertently and erroneously included in the Rule but have no intended meaning or purpose there. These provisions are subsections (b) and (c). Subsection (b) defines terms, specifically ``Active Connection,'' ``Idle Connection,'' and ``Period of Inactivity,'' that are not utilized elsewhere in the Rule. Subsection (c) lists exceptions to the testing fees and these exceptions are not applicable to the Exchange's Test Facility. The Exchange proposes that existing subsection (d) be renumbered as new subsection (b). The Exchange also proposes that new subsection (b) delete reference to an obsolete waiver of installation fees for installations ordered prior to March 2014. Furthermore, the Exchange proposes to remove obsolete references to the Exchange having two testing environments--one located in Carteret, New Jersey and another located in Ashburn, Virginia--because the Ashburn environment has been decommissioned. Lastly, the Exchange proposes to specify that connectivity to the Exchange's testing facility will also provide for connectivity to the testing facilities of any or all of the other Nasdaq, Inc. Exchanges, including those of not only Nasdaq and BX, but also Nasdaq ISE, Nasdaq MRX, and Nasdaq GEMX.\3\ --------------------------------------------------------------------------- \3\ The Exchange proposes to amend Section VII.E of the Pricing Schedule to make a similar change. --------------------------------------------------------------------------- Second, the Exchange proposes to amend Section X, which lists the schedule of fees that the Exchange charges for colocation services, to harmonize that schedule with BX Rule 7034. The proposed changes are as follows:The Exchange proposes to amend Section X(a), under the heading ``Cabinet with Power,'' to update the installation and monthly fees it charges to customers to rent powered cabinet space in its colocation facilities. The proposed changes are as follows: (i) For super high density cabinets, the Exchange proposes to decrease its installation fee from $7,000 to $4,500 and its monthly fee from $13,000 to $8,000; (ii) for high density cabinets, it proposes to decrease its monthly fee from $7,000 to $4,500; (iii) for medium-high density cabinets, it proposes to decrease its monthly fees from $6,000 to $3,500; (iv) for medium density cabinets, it proposes to decrease its monthly fees from $5,000 to $2,500; (v) for low density cabinets, it proposes to decrease its monthly fees from $4,000 to $2,000; and (vi) for half cabinets, it proposes to decrease its monthly fees from $3,000 to $2,000. These changes will render this subsection of the Pricing Schedule consistent with BX Rule 7034(a). The Exchange proposes to amend Section X(a) to remove the paragraph entitled ``Temporary Fee Reduction for Cabinets with Power,'' as this fee reduction program has expired. The Exchange proposes to amend Section X(a), under the heading ``Multi-Firm Cabinet Charge,'' to state that the additional charge is per cabinet, per firm, which will render this provision consistent with a corresponding provision in Nasdaq Rule 7034(a). The Exchange proposes to amend Section X(b), under the heading ``External Telco/Inter-Cabinet Connectivity,'' to update the monthly fees it charges for external telecommunications and inter- cabinet connectivity, as follows: (i) for a category 6 cable patch, a DS-3 connection, and a fiber connection, the Exchange proposes to increase its monthly fees from $300 to $350; and (ii) for a POTS Line, the Exchange proposes to increase the monthly fee from $0 to $50. These changes will render this paragraph of the Pricing Schedule consistent with a corresponding paragraph in BX Rule 7034(b). The Exchange proposes to amend Section X(b), under the heading ``Connectivity to Phlx,'' to update the fees it charges for fiber connectivity to the Exchange, as follows: (i) For a 10Gb fiber connection to the Exchange, the Exchange proposes to increase the monthly fee from $5,000 to $10,000; (ii) for a 40Gb fiber connection to the Exchange, it proposes to increase the monthly fee from $15,000 to $20,000; (iii) for a 1Gb fiber connection to the Exchange, it proposes to increase the monthly fee from $1,000 to $2,500; (iv) for a 1Gb copper connection to the Exchange, it proposes to increase the monthly fee from $1,000 to $2,500; (v) the Exchange proposes to add a 1Gb Ultra fiber connection to the Exchange for an installation fee of $1,500 and a monthly fee of $2,500; and (vi) the Exchange proposes to remove obsolete language regarding an expired fee waiver program. These changes will render this paragraph of the Pricing Schedule consistent with corresponding paragraphs in BX Rule 7034(b). The Exchange also proposes an amendment to this provision to specify that connectivity to the Exchange will also provide for connectivity to any or all of the other Nasdaq, Inc. Exchanges, including not only to Nasdaq and BX, but also to Nasdaq ISE, LLC, Nasdaq MRX, LLC, and Nasdaq GEMX, LLC. This proposal mirrors existing language in Rule BX Rule 7034(b). The Exchange proposes to amend Section X(b) to add a new paragraph under a heading entitled ``Connectivity to Third Party Services.'' This proposed paragraph will provide for connectivity via colocation to market data feeds from other markets and exchanges,\4\ Securities Information Processors (``SIPs'') \5\ data, and other non- exchange services. The proposed connectivity and associated fees are as follows: (i) For a 10Gb Ultra fiber connection, the Exchange proposes to charge a $1,500 [[Page 16159]] installation fee and an ongoing monthly fee of $5,000; (ii) for a 1Gb Ultra fiber connection, it proposes to charge a $1,500 installation fee and an ongoing monthly fee of $2,000; and (iii) for a 1Gb Ultra or a 10Gb Ultra connection for UTP only, it proposes to charge a $100 installation fee and an ongoing monthly fee of $100. All of the foregoing fees will be waived for two connections per client to UTP SIP feeds only (UQDF and UTDF). The Exchange notes that the proposed paragraph parallels BX Rule 7034(b). --------------------------------------------------------------------------- \4\ For example, Third Party Connectivity will support connectivity to the FINRA/Nasdaq Trade Reporting Facility, BZX and BYX Depth Feeds, and NYSE Feeds. A customer must separately subscribe to the third party services to which it connects with a Third Party Connectivity subscription. \5\ The SIPs link the U.S. markets by processing and consolidating all protected bid/ask quotes and trades from every registered exchange trading venue and FINRA into a single data feed, and they disseminate and calculate critical regulatory information, including the National Best Bid and Offer, Limit Up Limit Down price bands, short sale restrictions and regulatory halts. --------------------------------------------------------------------------- The Exchange proposes to amend Section X(b), under the heading ``Market Data Connectivity,'' to add prefatory language that exists in the analogous portion of BX Rule 7034(b). The language merely notes that the Market Data feeds listed in the provision are delivered to the Nasdaq Data Center via a fiber optic network. Additionally, the Exchange proposes to re-categorize and update the names of the certain CBOE/Bats/Direct Edge data feeds because the names listed in the current Pricing Schedule are obsolete. 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. Finally, the Exchange proposes to delete from the asterisked footnote to this paragraph the word ``telco'' from the phrase ``Pricing is for telco connectivity only.'' These proposals will render this paragraph consistent with corresponding text in BX and Nasdaq Rules 7034(b). The Exchange proposes to amend Section X(b) to add a new paragraph that will provide for multicast market data feeds from other markets to be delivered to the Nasdaq Data Center via wireless microwave or millimeter wave networks. The Exchange notes that Nasdaq already provides such data feeds to its customers. The proposed data feeds, and their corresponding installation and monthly fees, are as follows: (i) NYSE Equities (Arca Integrated), for an installation fee of $5,000 and a monthly fee of $10,000; (ii) NYSE Equities (NYSE Integrated), for an installation fee of $5,000 and a monthly fee of $10,000; (iii) BATS Multicast PITCH (BZX and BYZ), for an installation fee of $2,500 and a monthly fee of $7,500; (iv) Direct EDGE Depth of Book (EDGA, EDGX), for an installation fee of $2,500 and a monthly fee of $7,500; (v) CME Multicast Total (including CME Equities Futures Data, CME Fixed Income Futures Data, and CME Metal Futures Data), for an installation fee of $5,000 and a monthly fee of $23,500; (vi) CME Equities Futures Data Only, for a $5,000 installation fee and a monthly fee of $10,000; (vii) CME Fixed Income Futures Data Only, for a $5,000 installation fee and a monthly fee of $10,000; and (viii) CME Metals Futures Data Only, for a $5,000 installation fee and a monthly fee of $3,500.\6\ As to the monthly fee for these services, the proposal provides that subscribers will receive discounts based upon the number of subscriptions they maintain.\7\ The Exchange proposes to add this paragraph to render this paragraph of Section X(b) consistent with corresponding paragraphs in BX Rule 7034(b). --------------------------------------------------------------------------- \6\ The Exchange proposes to charge subscribers to any or all of the CME Data Feeds a single $5,000 installation fee. In other words, a subscriber to the CME Fixed Income Futures Data Feed and the CME Metals Futures Data Feed will only pay a single $5,000 installation fee for access to both feeds. \7\ The proposed Rule paragraph provides that subscribers with three to five microwave or millimeter wave wireless subscriptions under Section X(b) will receive a 5% discount on all such subscriptions. Meanwhile, subscribers with six to ten microwave or millimeter wave wireless subscriptions under Section X(b) will receive a 10% discount on all such subscriptions. Subscribers with eleven to fourteen microwave or millimeter wave wireless subscriptions under Section X(b) will receive a 15% discount on all such subscriptions. Finally, subscribers with fifteen or more microwave or millimeter wave wireless subscriptions under Section X(b) will receive a 20% discount on all such subscriptions. --------------------------------------------------------------------------- The Exchange proposes to amend Section X(d), under the heading ``Additional Charges/Services,'' to update the installation fee it charges for super high density cabinet kits. Specifically, the Exchange proposes to decrease the fee from $7,000 to $4,500. The Exchange also proposes to amend the installation fee for Copper Patch Cords that is set forth in this paragraph from $4.50 + ``$1.50'' per ``meter'' to $4.50 + ``$0.50'' per ``foot.'' These changes will render this paragraph of the Schedule of Fees consistent with the corresponding paragraph in BX Rule 7034(d). Third, the Exchange proposes to amend Section XI of the Exchange's Pricing Schedule, entitled ``Direct Connectivity to Phlx.'' This Section of the Pricing Schedule describes the means by which customers may connect directly to the Exchange's main or satellite data centers via a third party vendor's telecommunications circuit. The proposed changes to this Section are as follows: The Exchange proposes to update the structure of Chapter XI so that it will parallel the structure of BX Rule 7051. Specifically, the Exchange proposes to place the existing text of Section XI into a subsection (a), to be entitled ``Direct Circuit Connection to Phlx.'' It also proposes to add two additional subsections, as described below. The Exchange proposes to amend the text of Chapter XI (as reorganized in proposed subsection (a) and re-titled ``Direct Circuit Connection to Phlx'') so that it is fully consistent with BX Rule 7051(a) in terms of both the direct circuit connections that it offers to its customers as well as the associated fees that it charges for such connections. The proposed changes are as follows: (i) For 10Gb direct circuit connections to Phlx, the Exchange proposes to increase the installation fee from $1,000 to $1,500 and the monthly fee from $5,000 to $7,500; (ii) for 1Gb direct circuit connections to Phlx, the Exchange proposes to increase the installation fee from $1,000 to $1,500 and the monthly fee from $1,000 to $2,500; (iii) the Exchange proposes to add a 1Gb Ultra direct circuit connection for an installation fee of $1,500 and a monthly fee of $2,500; and (iv) the Exchange proposes to specify that direct circuit connectivity to the Exchange will also provide for direct circuit connectivity to any or all of the other Nasdaq, Inc. Exchanges, including not only Nasdaq and BX, but also Nasdaq ISE, Nasdaq MRX, and Nasdaq GEMX. The Exchange proposes to add a new subsection (b) to Section XI, entitled ``Direct Circuit Connection to Third Party Services.'' Through this subsection, which is an analogue to BX Rule 7051(b), the Exchange will offer its customers direct circuit connections to third party services, including the same third party services to which it proposes to connect customers through colocation, as set forth in proposed Section X(b) (described above). Specifically, the Exchange proposes to offer the following services and charge the following fees for them: (i) A 10Gb Ultra direct circuit connection for an installation fee of $1,500 and a monthly fee of $5,000; (ii) a 1Gb Ultra direct circuit connection for an installation fee of $1,500 and a monthly fee of $2,000; (iii) a 1Gb Ultra or 10Gb Ultra direct circuit connection (for UTP only) for an installation fee of $100 and a monthly fee of $100; (iv) an optional cable router for a $925 installation fee; and (v) a monthly fee of $150 per ``U'' of cabinet space rented.\8\ For direct circuit connectivity to UTP SIP feeds only, the installation and monthly fees will be [[Page 16160]] waived for the first two connections per client. --------------------------------------------------------------------------- \8\ These fees will be based on a height unit of approximately 1.75 inches high, commonly called a ``U'' space and a maximum power of 125 Watts per U space. --------------------------------------------------------------------------- The Exchange proposes to add a new subsection (c) to Section XI, entitled ``Point of Presence (POP) Connectivity.'' This subsection, which is an analogue to BX Rule 7051(c), provides for customers to connect directly to the Exchange through a ``Point of Presence'' or ``POP'' that is located at one of the Exchange's satellite data centers, rather than in the Exchange's main data center. Each such POP, in turn, has a fully redundant connection to the Exchange's primary data center. The proposed services and associated fees are as follows: (i) The Exchange proposes to offer a 10Gb POP connection to Phlx for an installation fee of $1,500 and a monthly fee of $7,500; (ii) it proposes to offer a 1Gb Ultra POP connection to Phlx for an installation fee of $1,500 and a monthly fee of $2,500; and (iii) the Exchange proposes to state that the POP connectivity provided under this subsection also provides POP connectivity to any or all of the other Nasdaq, Inc. Exchanges. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\9\ in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\10\ 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. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78f(b). \10\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Exchange believes that its proposals to update its schedule of shared connectivity, direct circuit connectivity, and colocation services that it provides in concert with its sister Nasdaq, Inc. Exchanges, and for which the Nasdaq, Inc. Exchanges charge a single fee, is reasonable because the proposals will ensure that the Exchange's Pricing Schedule, as it applies to such services and fees, will be consistent with the applicable schedules and rules of the other Nasdaq, Inc. Exchanges. The Exchange also notes that the proposals will provide consistencies across the Nasdaq, Inc. Exchanges for the same services. The proposed amendments to the Exchange's Pricing Schedule reflect changes and updates that have been made already to the BX Rules. For example, each of the proposed changes to the Exchange's connectivity, direct connectivity, and colocation fees will harmonize the Exchange's fees with those of BX. The Exchange believes that the foregoing proposals provide for the equitable allocation of fees because the connectivity and colocation services to which these fees apply are shared services for which customers pay once, regardless of whether the customers choose to use these services to connect only to Phlx or also to any or all of the other Nasdaq, Inc. Exchanges. Moreover, the other Nasdaq, Inc. Exchanges already offer these shared services to their customers and do so at the same prices that the Exchange now proposes to charge. As such, the proposals will ensure that the fees that the Exchanges charges its customers for shared services are the same fees that the other Nasdaq, Inc. Exchanges charge their customers (including their customers who are also Phlx Members) for the same shared services. In other words, the proposals would ensure that a customer of the Exchange that wishes to, say, purchase direct connectivity to all of the Nasdaq, Inc. Exchanges will not pay more to do so through Phlx than it would pay if it purchased that same connectivity from Nasdaq, and vice versa. The proposed fees and fee changes, moreover, are equitably allocated because the proposals align these fees with the costs that the Exchange incurs to provide the shared services, including the costs of developing, installing, maintaining, and upgrading equipment and systems relating to connectivity and colocation services. Finally, the proposed fees are equitably allocated because all member firms that subscribe to a particular connectivity option under the amended Rules will be assessed the same fee. The proposals, similarly, are not unfairly discriminatory because the shared services they entail will be available to all similarly situated clients, while the fees and fee changes they entail will apply uniformly to such clients to the extent that they choose to utilize the shared services. The Exchange's proposal to eliminate the $1,000 installation fee that presently applies to the Direct Edge feeds 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. Lastly, the Exchange's other proposals--to eliminate certain language from the Exchange's Pricing Schedule that is extraneous, eliminate references to expired fee reduction or waiver programs, and update references to third party data feeds to reflect their current names--are consistent with Section 6(b) of the Act,\11\ in general, and further the objectives of Section 6(b)(5) of the Act,\12\ in particular, in that they are 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. These proposals are non- controversial because maintaining a current and accurate Pricing Schedule serves the interests of the public and investors and because the proposals will not impact competition or limit access to or availability of the Exchange or its systems. The proposals also reflect changes that BX has already made to its rulebook. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78f(b). \12\ 15 U.S.C. 78f(b)(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 terms of inter-market competition, the Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive, or rebate opportunities available at other venues to be more favorable. In such an environment, the Exchange must continually adjust its fees to remain competitive with other exchanges and with alternative trading systems that have been exempted from compliance with the statutory standards applicable to exchanges. Because competitors are free to modify their own fees in response, and because market participants may connect to third parties instead of directly connecting to the Exchange, the Exchange believes that the degree to which fee changes in this market may impose any burden on competition is extremely limited. In this instance, the proposed changes to the charges assessed for colocation, connectivity, and direct circuit connectivity are consistent with the fees already assessed by other Nasdaq, Inc. Exchanges for the same shared services. The Exchange does not believe that the proposed changes will impair the ability [[Page 16161]] of members or competing order execution venues to maintain their competitive standing in the financial markets. Furthermore, the Exchange does not expect that its proposals to eliminate or replace expired or obsolete language from its Rulebook or to eliminate an obsolete $1,000 Direct Edge installation fee 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 \13\ and Rule 19b- 4(f)(6) thereunder.\14\ --------------------------------------------------------------------------- \13\ 15 U.S.C. 78s(b)(3)(A). \14\ 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 \15\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \16\ 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 requested that the Commission waive the 30-day operative delay so that the proposed rule change may become operative upon filing. The Commission notes that the proposal updates the Exchange's rules to reflect current and accurate information with respect to the Exchange's services and fees. The Commission also notes that the proposal harmonizes the Exchange's services and fees with those of the other Nasdaq, Inc. Exchanges, and that BX recently made similar changes to its rules.\17\ 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.\18\ --------------------------------------------------------------------------- \15\ 17 CFR 240.19b-4(f)(6). \16\ 17 CFR 240.19b-4(f)(6)(iii). \17\ See Securities Exchange Act Release No. 82628 (February 5, 2018), 83 FR 5818 (February 9, 2018) (SR-BX-2018-006). \18\ 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 Comments Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-Phlx-2018-26 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-Phlx-2018-26. 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-Phlx-2018-26, and should be submitted on or before May 4, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\19\ --------------------------------------------------------------------------- \19\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-07672 Filed 4-12-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 72 / Friday, April 13, 2018 / Notices 16157
continued listing requirements and, those that may be withheld from the SECURITIES AND EXCHANGE
pursuant to its obligations under public in accordance with the COMMISSION
Section 19(g)(1) of the Act, the Exchange provisions of 5 U.S.C. 552, will be
[Release No. 34–83016; File No. SR–Phlx–
will surveil for compliance with the available for website viewing and 2018–26]
continued listing requirements. If the printing in the Commission’s Public
Fund or the Shares are not in Reference Room, 100 F Street NE, Self-Regulatory Organizations; Nasdaq
compliance with the applicable listing Washington, DC 20549, on official PHLX LLC; Notice of Filing and
requirements, the Exchange will business days between the hours of Immediate Effectiveness of Proposed
commence delisting procedures under 10:00 a.m. and 3:00 p.m. Copies of the Rule Change To Amend the
Exchange Rule 14.12. filing also will be available for Exchange’s Pricing Schedule
This approval order is based on all of inspection and copying at the principal
the Exchange’s statements and office of the Exchange. All comments April 9, 2018.
representations, including those set received will be posted without change. Pursuant to Section 19(b)(1) of the
forth above and in Amendment No. 2 to Persons submitting comments are Securities Exchange Act of 1934
the proposed rule change. cautioned that we do not redact or edit (‘‘Act’’),1 and Rule 19b–4 thereunder,2
For the foregoing reasons, the personal identifying information from notice is hereby given that on March 27,
Commission finds that the proposed comment submissions. You should 2018, Nasdaq PHLX LLC (‘‘Phlx’’ or
rule change, as modified by Amendment submit only information that you wish ‘‘Exchange’’) filed with the Securities
No. 2, is consistent with Section 6(b)(5) to make available publicly. All and Exchange Commission
of the Act 52 and Section submissions should refer to File (‘‘Commission’’) the proposed rule
11A(a)(1)(C)(iii) of the Act 53 and the Number SR–CboeBZX–2017–023, and change as described in Items I and II
rules and regulations thereunder should be submitted on or before May below, which Items have been prepared
applicable to a national securities 4, 2018. by the Exchange. The Commission is
exchange. publishing this notice to solicit
V. Accelerated Approval of Proposed comments on the proposed rule change
IV. Solicitation of Comments on Rule Change, as Modified by from interested persons.
Amendment No. 2 to the Proposed Rule Amendment No. 2
Change I. Self-Regulatory Organization’s
The Commission finds good cause to
Statement of the Terms of Substance of
Interested persons are invited to approve the proposed rule change, as
the Proposed Rule Change
submit written data, views, and modified by Amendment No. 2, prior to
arguments concerning whether the thirtieth day after the date of The Exchange proposes to amend
Amendment No. 2 is consistent with the publication of notice of the filing of Sections VIII, X, and XI of the
Act. Comments may be submitted by Amendment No. 2 in the Federal Exchange’s Pricing Schedule, as
any of the following methods: Register. The Commission notes that described below.
Amendment No. 2 clarified the The text of the proposed rule change
Electronic Comments application of Exchange Rule 14.11(i) to is available on the Exchange’s website at
• Use the Commission’s internet the Fund’s investments. Amendment http://nasdaqphlx.cchwallstreet.com/,
comment form (http://www.sec.gov/ No. 2 also provided other clarifications at the principal office of the Exchange,
rules/sro.shtml); or and additional information to the and at the Commission’s Public
• Send an email to rule-comments@ proposed rule change. The changes and Reference Room.
sec.gov. Please include File Number SR– additional information in Amendment II. Self-Regulatory Organization’s
CboeBZX–2017–023 on the subject line. No. 2 assisted the Commission in Statement of the Purpose of, and
finding that the proposal is consistent Statutory Basis for, the Proposed Rule
Paper Comments
with the Act. Accordingly, the Change
• Send paper comments in triplicate Commission finds good cause, pursuant
to Secretary, Securities and Exchange to Section 19(b)(2) of the Act,54 to In its filing with the Commission, the
Commission, 100 F Street NE, approve the proposed rule change, as Exchange included statements
Washington, DC 20549–1090. modified by Amendment No. 2, on an concerning the purpose of and basis for
All submissions should refer to File accelerated basis. the proposed rule change and discussed
Number SR–CboeBZX–2017–023. This any comments it received on the
VI. Conclusion proposed rule change. The text of these
file number should be included on the
subject line if email is used. To help the It is therefore ordered, pursuant to statements may be examined at the
Commission process and review your Section 19(b)(2) of the Act,55 that the places specified in Item IV below. The
comments more efficiently, please use proposed rule change (SR–CboeBZX– Exchange has prepared summaries, set
only one method. The Commission will 2017–023), as modified by Amendment forth in sections A, B, and C below, of
post all comments on the Commission’s No. 2 be, and it hereby is, approved on the most significant aspects of such
internet website (http://www.sec.gov/ an accelerated basis. statements.
rules/sro.shtml). Copies of the A. Self-Regulatory Organization’s
submission, all subsequent For the Commission, by the Division of Statement of the Purpose of, and
amendments, all written statements Trading and Markets, pursuant to delegated Statutory Basis for, the Proposed Rule
with respect to the proposed rule authority.56
Change
change that are filed with the Eduardo A. Aleman,
daltland on DSKBBV9HB2PROD with NOTICES
Commission, and all written Assistant Secretary. 1. Purpose
communications relating to the [FR Doc. 2018–07670 Filed 4–12–18; 8:45 am] The Exchange proposes to amend
proposed rule change between the BILLING CODE 8011–01–P several sections of its Pricing Schedule
Commission and any person, other than to harmonize its colocation,
54 15 U.S.C. 78s(b)(2).
52 15 U.S.C. 78f(b)(5). 55 Id. 1 15 U.S.C. 78s(b)(1).
53 15 U.S.C. 78k–1(a)(1)(C)(iii). 56 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4.
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![Federal Register / Vol. 83, No. 72 / Friday, April 13, 2018 / Notices 16161
of members or competing order the Commission believes that waiver of public in accordance with the
execution venues to maintain their the 30-day operative delay is consistent provisions of 5 U.S.C. 552, will be
competitive standing in the financial with the protection of investors and the available for website viewing and
markets. public interest. Accordingly, the printing in the Commission’s Public
Furthermore, the Exchange does not Commission hereby waives the Reference Room, 100 F Street NE,
expect that its proposals to eliminate or operative delay and designates the Washington, DC 20549 on official
replace expired or obsolete language proposed rule change operative upon business days between the hours of
from its Rulebook or to eliminate an filing.18 10:00 a.m. and 3:00 p.m. Copies of the
obsolete $1,000 Direct Edge installation At any time within 60 days of the filing also will be available for
fee will have any impact on filing of the proposed rule change, the inspection and copying at the principal
competition. Commission summarily may office of the Exchange. All comments
temporarily suspend such rule change if received will be posted without change.
C. Self-Regulatory Organization’s it appears to the Commission that such Persons submitting comments are
Statement on Comments on the action is necessary or appropriate in the cautioned that we do not redact or edit
Proposed Rule Change Received From public interest, for the protection of personal identifying information from
Members, Participants, or Others investors, or otherwise in furtherance of comment submissions. You should
No written comments were either the purposes of the Act. If the submit only information that you wish
solicited or received. Commission takes such action, the to make available publicly. All
Commission shall institute proceedings submissions should refer to File
III. Date of Effectiveness of the to determine whether the proposed rule Number SR–Phlx–2018–26, and should
Proposed Rule Change and Timing for change should be approved or be submitted on or before May 4, 2018.
Commission Action disapproved. For the Commission, by the Division of
Because the foregoing proposed rule Trading and Markets, pursuant to delegated
IV. Solicitation of Comments
change does not: (i) Significantly affect authority.19
the protection of investors or the public Interested persons are invited to Eduardo A. Aleman,
interest; (ii) impose any significant submit written data, views, and
Assistant Secretary.
burden on competition; and (iii) become arguments concerning the foregoing,
[FR Doc. 2018–07672 Filed 4–12–18; 8:45 am]
operative for 30 days from the date on including whether the proposed rule
change is consistent with the Act. BILLING CODE 8011–01–P
which it was filed, or such shorter time
as the Commission may designate, it has Comments may be submitted by any of
become effective pursuant to Section the following methods:
SECURITIES AND EXCHANGE
19(b)(3)(A) of the Act 13 and Rule 19b– Electronic Comments COMMISSION
4(f)(6) thereunder.14
A proposed rule change filed • Use the Commission’s internet [Release No. 34–83015; File No. SR–
pursuant to Rule 19b–4(f)(6) under the comment form (http://www.sec.gov/ CboeEDGX–2018–010]
Act 15 normally does not become rules/sro.shtml); or
• Send an email to rule-comments@ Self-Regulatory Organizations; Cboe
operative for 30 days after the date of its EDGX Exchange, Inc.; Notice of Filing
sec.gov. Please include File Number SR–
filing. However, Rule 19b–4(f)(6)(iii) 16 and Immediate Effectiveness of a
Phlx–2018–26 on the subject line.
permits the Commission to designate a Proposed Rule Change Related to Fees
shorter time if such action is consistent Paper Comments for Use on the Exchange’s Equity
with the protection of investors and the • Send paper comments in triplicate Options Platform
public interest. The Exchange has to Secretary, Securities and Exchange
requested that the Commission waive Commission, 100 F Street NE, April 9, 2018.
the 30-day operative delay so that the Washington, DC 20549–1090. Pursuant to Section 19(b)(1) of the
proposed rule change may become All submissions should refer to File Securities Exchange Act of 1934 (the
operative upon filing. The Commission Number SR–Phlx–2018–26. This file ‘‘Act’’),1 and Rule 19b–4 thereunder,2
notes that the proposal updates the number should be included on the notice is hereby given that on April 2,
Exchange’s rules to reflect current and subject line if email is used. To help the 2018, Cboe EDGX Exchange, Inc. (the
accurate information with respect to the Commission process and review your ‘‘Exchange’’ or ‘‘EDGX’’) filed with the
Exchange’s services and fees. The comments more efficiently, please use Securities and Exchange Commission
Commission also notes that the proposal only one method. The Commission will (‘‘Commission’’) the proposed rule
harmonizes the Exchange’s services and post all comments on the Commission’s change as described in Items I, II and III
fees with those of the other Nasdaq, Inc. internet website (http://www.sec.gov/ below, which Items have been prepared
Exchanges, and that BX recently made rules/sro.shtml). Copies of the by the Exchange. The Exchange has
similar changes to its rules.17 Therefore, submission, all subsequent designated the proposed rule change as
amendments, all written statements one establishing or changing a member
13 15 U.S.C. 78s(b)(3)(A).
with respect to the proposed rule due, fee, or other charge imposed by the
14 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
change that are filed with the Exchange under Section 19(b)(3)(A)(ii)
4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its intent to Commission, and all written of the Act 3 and Rule 19b–4(f)(2)
file the proposed rule change, along with a brief communications relating to the thereunder,4 which renders the
description and text of the proposed rule change,
proposed rule change between the proposed rule change effective upon
at least five business days prior to the date of filing filing with the Commission. The
daltland on DSKBBV9HB2PROD with NOTICES
of the proposed rule change, or such shorter time Commission and any person, other than
as designated by the Commission. The Exchange those that may be withheld from the Commission is publishing this notice to
has satisfied this requirement.
15 17 CFR 240.19b–4(f)(6). 19 17 CFR 200.30–3(a)(12).
18 For purposes only of waiving the 30-day
16 17 CFR 240.19b–4(f)(6)(iii). 1 15 U.S.C. 78s(b)(1).
operative delay, the Commission also has
17 See Securities Exchange Act Release No. 82628 2 17 CFR 240.19b–4.
considered the proposed rule’s impact on
3 15 U.S.C. 78s(b)(3)(A)(ii).
(February 5, 2018), 83 FR 5818 (February 9, 2018) efficiency, competition, and capital formation. See
(SR–BX–2018–006). 15 U.S.C. 78c(f). 4 17 CFR 240.19b–4(f)(2).
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Document Created: 2018-04-13 00:18:29
Document Modified: 2018-04-13 00:18:29
| 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 16157 |
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