83 FR 17690 - Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Delete Duplicative Rules Related to the Consolidated Audit Trail From Its Rulebook

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 78 (April 23, 2018)

Page Range		17690-17691
FR Document		2018-08368
Federal Register, Volume 83 Issue 78 (Monday, April 23, 2018)
[Federal Register Volume 83, Number 78 (Monday, April 23, 2018)]
[Notices]
[Pages 17690-17691]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-08368]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83054; File No. SR-NASDAQ-2018-027]


Self-Regulatory Organizations; The Nasdaq Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
To Delete Duplicative Rules Related to the Consolidated Audit Trail 
From Its Rulebook

April 17, 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 April 5, 2018, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to delete the rules related to the 
Consolidated Audit Trail (``CAT Rules'') currently under Chapter IX, 
Sections 8 and 9 of Nasdaq's Options Rules, as further described below.
    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 purpose of the proposed rule change is to delete the CAT Rules 
currently under Nasdaq's Options Rules, Chapter IX, Sections 8 and 9 
because these rules are already located in General 7, entitled 
``Consolidated Audit Trail Compliance,'' under the ``General Equity and 
Options Rules'' in the Exchange's rulebook's shell structure.\3\ Given 
that the CAT Rules contained in General 7 are non-product specific and 
are identical to the CAT Rules in Nasdaq's Options Rules,\4\ the 
Exchange proposes to delete the duplicative rules in Nasdaq's Options 
Rules as market participants transacting on the Exchange's equity and 
options markets are already governed by the CAT Rules in General 7.
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    \3\ The Exchange added a shell structure to its rulebook with 
the purpose of improving efficiency and readability and to align its 
rules closer to those of its five sister exchanges: Nasdaq BX, Inc.; 
Nasdaq PHLX LLC; Nasdaq ISE, LLC; Nasdaq GEMX, LLC; and Nasdaq MRX, 
LLC (``Affiliated Exchanges''). See Securities Exchange Act Release 
No. 82175 (November 29, 2017), 82 FR 57494 (December 5, 2017) (SR-
NASDAQ-2017-125).
    \4\ As part of its continued effort to promote efficiency and 
conformity of its rules with those of the Affiliated Exchanges, the 
Exchange recently relocated the CAT Rules previously under the 6800 
Series of Nasdaq's Equity Rules to General 7 because the CAT Rules 
apply across all markets and to all products. See Securities 
Exchange Act Release No. 82604 (January 30, 2018), 83 FR 5154 
(February 5, 2018) (SR-NASDAQ-2018-007).
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\5\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\6\ 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 by 
removing the duplicative CAT Rules from Nasdaq's Options Rules. As 
discussed above, Exchange members are already governed by the CAT Rules 
in General 7 of the rulebook's shell structure. The Exchange believes 
that the proposed changes will make the Exchange's rulebook easier to 
read and eliminate any potential confusion to the benefit of its 
members and investors.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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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. The proposed changes as 
discussed above do not impose a burden on competition because they are 
non-substantive and are intended to clarify the Exchange's rulebook in 
order to eliminate any potential confusion.

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 \7\ and

[[Page 17691]]

subparagraph (f)(6) of Rule 19b-4 thereunder.\8\
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    \7\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \8\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires the Exchange to give the Commission written notice of the 
Exchange's 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.
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    A proposed rule change filed under Rule 19b-4(f)(6) \9\ normally 
does not become operative prior to 30 days after the date of the 
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 public interest. The Exchange has 
requested that the Commission to waive the 30-day operative delay so 
that the proposal will become operative upon filing. The Exchange 
stated that removing the duplicative CAT Rules, as discussed above, 
will bring greater clarity to its rulebook and will eliminate any 
potential confusion to the benefit of its members and investors. 
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 as operative upon filing.\11\
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    \9\ 17 CFR 240.19b-4(f)(6).
    \10\ 17 CFR 240.19b-4(f)(6)(iii).
    \11\ 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).
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    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: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) 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 [email protected]. Please include 
File Number SR-NASDAQ-2018-027 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-2018-027. 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-2018-027 and should be submitted 
on or before May 14, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2018-08368 Filed 4-20-18; 8:45 am]
 BILLING CODE 8011-01-P
17690 Federal Register / Vol. 83, No. 78 / Monday, April 23, 2018 / Notices

is necessary for the Commission’s I. Self-Regulatory Organization’s in Nasdaq’s Options Rules as market
inspection program to ascertain Statement of the Terms of Substance of participants transacting on the
compliance with the Advisers Act. the Proposed Rule Change Exchange’s equity and options markets
An agency may not conduct or The Exchange proposes to delete the are already governed by the CAT Rules
sponsor, and a person is not required to rules related to the Consolidated Audit in General 7.
respond to a collection of information Trail (‘‘CAT Rules’’) currently under 2. Statutory Basis
unless it displays a currently valid Chapter IX, Sections 8 and 9 of Nasdaq’s
control number. Options Rules, as further described The Exchange believes that its
The public may view the background below. proposal is consistent with Section 6(b)
documentation for this information The text of the proposed rule change of the Act,5 in general, and furthers the
collection at the following website, is available on the Exchange’s website at objectives of Section 6(b)(5) of the Act,6
www.reginfo.gov. Comments should be http://nasdaq.cchwallstreet.com, at the in particular, in that it is designed to
directed to: (i) Desk Officer for the principal office of the Exchange, and at promote just and equitable principles of
Securities and Exchange Commission, the Commission’s Public Reference trade, to remove impediments to and
Office of Information and Regulatory Room. perfect the mechanism of a free and
Affairs, Office of Management and II. Self-Regulatory Organization’s open market and a national market
Budget, Room 10102, New Executive Statement of the Purpose of, and system, and, in general to protect
Office Building, Washington, DC 20503, Statutory Basis for, the Proposed Rule investors and the public interest by
or by sending an email to: Shagufta_ Change removing the duplicative CAT Rules
Ahmed@omb.eop.gov; and (ii) Pamela from Nasdaq’s Options Rules. As
In its filing with the Commission, the discussed above, Exchange members are
Dyson, Director/Chief Information Exchange included statements
Officer, Securities and Exchange already governed by the CAT Rules in
concerning the purpose of and basis for General 7 of the rulebook’s shell
Commission, c/o Remi Pavlik-Simon, the proposed rule change and discussed
100 F Street NE, Washington, DC 20549 structure. The Exchange believes that
any comments it received on the the proposed changes will make the
or send an email to: PRA_Mailbox@ proposed rule change. The text of these Exchange’s rulebook easier to read and
sec.gov. Comments must be submitted to statements may be examined at the eliminate any potential confusion to the
OMB within 30 days of this notice. places specified in Item IV below. The benefit of its members and investors.
Dated: April 18, 2018. Exchange has prepared summaries, set
forth in sections A, B, and C below, of B. Self-Regulatory Organization’s
Eduardo A. Aleman,
the most significant aspects of such Statement on Burden on Competition
Assistant Secretary.
statements.
[FR Doc. 2018–08403 Filed 4–20–18; 8:45 am] The Exchange does not believe that
BILLING CODE 8011–01–P A. Self-Regulatory Organization’s the proposed rule change will impose
Statement of the Purpose of, and any burden on competition not
Statutory Basis for, the Proposed Rule necessary or appropriate in furtherance
SECURITIES AND EXCHANGE Change of the purposes of the Act. The
COMMISSION proposed changes as discussed above do
1. Purpose
not impose a burden on competition
The purpose of the proposed rule because they are non-substantive and
[Release No. 34–83054; File No. SR–
change is to delete the CAT Rules are intended to clarify the Exchange’s
NASDAQ–2018–027]
currently under Nasdaq’s Options Rules, rulebook in order to eliminate any
Self-Regulatory Organizations; The Chapter IX, Sections 8 and 9 because potential confusion.
Nasdaq Stock Market LLC; Notice of these rules are already located in
General 7, entitled ‘‘Consolidated Audit C. Self-Regulatory Organization’s
Filing and Immediate Effectiveness of Statement on Comments on the
a Proposed Rule Change To Delete Trail Compliance,’’ under the ‘‘General
Equity and Options Rules’’ in the Proposed Rule Change Received From
Duplicative Rules Related to the Members, Participants, or Others
Consolidated Audit Trail From Its Exchange’s rulebook’s shell structure.3
Rulebook Given that the CAT Rules contained in No written comments were either
General 7 are non-product specific and solicited or received.
April 17, 2018. are identical to the CAT Rules in
Nasdaq’s Options Rules,4 the Exchange III. Date of Effectiveness of the
Pursuant to Section 19(b)(1) of the
proposes to delete the duplicative rules Proposed Rule Change and Timing for
Securities Exchange Act of 1934
Commission Action
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 3 The Exchange added a shell structure to its
notice is hereby given that on April 5, rulebook with the purpose of improving efficiency Because the foregoing proposed rule
2018, The Nasdaq Stock Market LLC and readability and to align its rules closer to those change does not: (i) Significantly affect
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the of its five sister exchanges: Nasdaq BX, Inc.; Nasdaq
PHLX LLC; Nasdaq ISE, LLC; Nasdaq GEMX, LLC;
the protection of investors or the public
Securities and Exchange Commission and Nasdaq MRX, LLC (‘‘Affiliated Exchanges’’). interest; (ii) impose any significant
(‘‘Commission’’) the proposed rule See Securities Exchange Act Release No. 82175 burden on competition; and (iii) become
change as described in Items I and II (November 29, 2017), 82 FR 57494 (December 5, operative for 30 days from the date on
below, which Items have been prepared 2017) (SR–NASDAQ–2017–125).
4 As part of its continued effort to promote
which it was filed, or such shorter time
amozie on DSK30RV082PROD with NOTICES

by the Exchange. The Commission is efficiency and conformity of its rules with those of as the Commission may designate, it has
publishing this notice to solicit the Affiliated Exchanges, the Exchange recently become effective pursuant to Section
comments on the proposed rule change relocated the CAT Rules previously under the 6800 19(b)(3)(A)(iii) of the Act 7 and
from interested persons. Series of Nasdaq’s Equity Rules to General 7
because the CAT Rules apply across all markets and 5 15 U.S.C. 78f(b).
to all products. See Securities Exchange Act Release 6 15
1 15 U.S.C. 78s(b)(1). U.S.C. 78f(b)(5).
No. 82604 (January 30, 2018), 83 FR 5154 (February
2 17 CFR 240.19b–4. 7 15 U.S.C. 78s(b)(3)(A)(iii).
5, 2018) (SR–NASDAQ–2018–007).

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Federal Register / Vol. 83, No. 78 / Monday, April 23, 2018 / Notices 17691

subparagraph (f)(6) of Rule 19b–4 • Send an email to rule-comments@ SECURITIES AND EXCHANGE
thereunder.8 sec.gov. Please include File Number SR– COMMISSION
A proposed rule change filed under NASDAQ–2018–027 on the subject line.
Rule 19b–4(f)(6) 9 normally does not [Release No. 34–83058; File No. SR–DTC–
Paper Comments 2018–003]
become operative prior to 30 days after
the date of the filing. However, Rule
• Send paper comments in triplicate Self-Regulatory Organizations; The
19b–4(f)(6)(iii) 10 permits the Depository Trust Company; Notice of
Commission to designate a shorter time to Secretary, Securities and Exchange
Commission, 100 F Street NE, Filing and Immediate Effectiveness of
if such action is consistent with the Proposed Rule Change To Amend the
protection of investors and the public Washington, DC 20549–1090.
DTC Redemptions Service Guide and
interest. The Exchange has requested All submissions should refer to File the DTC Reorganizations Service
that the Commission to waive the 30- Number SR–NASDAQ–2018–027. This Guide To Add Clarifying Text Relating
day operative delay so that the proposal file number should be included on the to the Processing of MMI Securities
will become operative upon filing. The subject line if email is used. To help the
Exchange stated that removing the Commission process and review your April 17, 2018.
duplicative CAT Rules, as discussed comments more efficiently, please use Pursuant to Section 19(b)(1) of the
above, will bring greater clarity to its Securities Exchange Act of 1934
only one method. The Commission will
rulebook and will eliminate any (‘‘Act’’) 1 and Rule 19b–4 thereunder,2
potential confusion to the benefit of its post all comments on the Commission’s
notice is hereby given that on April 16,
members and investors. Therefore, the internet website (http://www.sec.gov/
2018, The Depository Trust Company
Commission believes that waiver of the rules/sro.shtml). Copies of the
(‘‘DTC’’) filed with the Securities and
30-day operative delay is consistent submission, all subsequent Exchange Commission (‘‘Commission’’)
with the protection of investors and the amendments, all written statements the proposed rule change as described
public interest. Accordingly, the with respect to the proposed rule in Items I, II and III below, which Items
Commission hereby waives the change that are filed with the have been prepared by the clearing
operative delay and designates the Commission, and all written agency. The Commission is publishing
proposed rule change as operative upon communications relating to the this notice to solicit comments on the
filing.11 proposed rule change between the proposed rule change from interested
At any time within 60 days of the Commission and any person, other than persons.
filing of the proposed rule change, the those that may be withheld from the
Commission summarily may public in accordance with the I. Clearing Agency’s Statement of the
temporarily suspend such rule change if Terms of Substance of the Proposed
provisions of 5 U.S.C. 552, will be
it appears to the Commission that such Rule Change
available for website viewing and
action is: (i) Necessary or appropriate in printing in the Commission’s Public The proposed rule change 3 consists of
the public interest; (ii) for the protection Reference Room, 100 F Street NE, proposed modifications to the DTC
of investors; or (iii) otherwise in Reorganizations Service Guide
Washington, DC 20549, on official
furtherance of the purposes of the Act. (‘‘Reorganizations Guide’’) 4 and the
business days between the hours of
If the Commission takes such action, the DTC Redemptions Service Guide
Commission shall institute proceedings 10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for (‘‘Redemptions Guide’’) 5 to make
to determine whether the proposed rule clarifying changes and provide
should be approved or disapproved. inspection and copying at the principal
enhanced transparency within DTC’s
office of the Exchange. All comments
IV. Solicitation of Comments Procedures 6 relating to the processing
received will be posted without change.
of transactions in money market
Interested persons are invited to Persons submitting comments are instruments (‘‘Money Market
submit written data, views, and cautioned that we do not redact or edit Securities’’) in DTC’s MMI Program,7 as
arguments concerning the foregoing, personal identifying information from described below.
including whether the proposed rule comment submissions. You should
change is consistent with the Act. submit only information that you wish 1 15 U.S.C. 78s(b)(1).
Comments may be submitted by any of to make available publicly. All 2 17 CFR 240.19b–4.
the following methods: submissions should refer to File 3 Each capitalized term not otherwise defined

herein has its respective meaning as set forth in the
Electronic Comments Number SR–NASDAQ–2018–027 and Rules, By-Laws and Organization Certificate of The
• Use the Commission’s internet should be submitted on or before May Depository Trust Company (‘‘Rules’’), available at
comment form (http://www.sec.gov/ 14, 2018. http://www.dtcc.com/legal/rules-and-
procedures.aspx and the DTC Settlement Service
rules/sro.shtml); or For the Commission, by the Division of Guide (‘‘Settlement Guide’’), available at http://
Trading and Markets, pursuant to delegated www.dtcc.com/∼/media/Files/Downloads/legal/
8 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– authority.12 service-guides/Settlement.pdf.
4(f)(6)(iii) requires the Exchange to give the 4 Available at http://www.dtcc.com/∼/media/

Commission written notice of the Exchange’s intent
Jill M. Peterson, Files/Downloads/legal/service-guides/
to file the proposed rule change, along with a brief Assistant Secretary. Reorganization-Service-Guide.pdf.
description and text of the proposed rule change, [FR Doc. 2018–08368 Filed 4–20–18; 8:45 am]
5 Available at http://www.dtcc.com/∼/media/
at least five business days prior to the date of filing Files/Downloads/legal/service-guides/
of the proposed rule change, or such shorter time BILLING CODE 8011–01–P Redemptions.pdf.
as designated by the Commission. The Exchange 6 Pursuant to the Rules, the term ‘‘Procedures’’
amozie on DSK30RV082PROD with NOTICES

has satisfied this requirement. means the Procedures, service guides, and
9 17 CFR 240.19b–4(f)(6).
regulations of DTC adopted pursuant to Rule 27, as
10 17 CFR 240.19b–4(f)(6)(iii). amended from time to time. See Rule 1, Section 1,
11 For purposes only of waiving the 30-day supra note 3, at 13.
operative delay, the Commission has also 7 Pursuant to the Rules, the term MMI Program

considered the proposed rule’s impact on means the Program for transactions in MMI
efficiency, competition, and capital formation. See Securities, as provided in Rule 9(C) and as specified
15 U.S.C. 78c(f). 12 17 CFR 200.30–3(a)(12). Continued

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Document Created: 2018-04-21 00:33:20
Document Modified: 2018-04-21 00:33:20
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 17690