83 FR 17696 - Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of 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		17696-17697
FR Document		2018-08356
Federal Register, Volume 83 Issue 78 (Monday, April 23, 2018)
[Federal Register Volume 83, Number 78 (Monday, April 23, 2018)]
[Notices]
[Pages 17696-17697]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-08356]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83059; File No. SR-BX-2018-013]


Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing 
and Immediate Effectiveness of 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, Nasdaq BX, Inc. (``BX'' 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 BX's Options Rules, as further described below.
    The text of the proposed rule change is available on the Exchange's 
website at http://nasdaqbx.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 BX'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 BX's Options Rules,\4\ the Exchange 
proposes to delete the duplicative rules in BX'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: The Nasdaq Stock 
Market LLC; Nasdaq PHLX LLC; Nasdaq ISE, LLC; Nasdaq GEMX, LLC; and 
Nasdaq MRX, LLC (``Affiliated Exchanges''). See Securities Exchange 
Act Release No. 82174 (November 29, 2017), 82 FR 57492 (December 5, 
2017) (SR-BX-2017-054).
    \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 BX's Equity Rules to General 7 because the CAT Rules apply 
across all markets and to all products. See Securities Exchange Act 
Release No. 82597 (January 30, 2018), 83 FR 4942 (February 2, 2018) 
(SR-BX-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 BX'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

[[Page 17697]]

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 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-BX-2018-013 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-BX-2018-013. 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-BX-2018-013 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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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-08356 Filed 4-20-18; 8:45 am]
 BILLING CODE 8011-01-P
17696 Federal Register / Vol. 83, No. 78 / Monday, April 23, 2018 / Notices

generally and specific penny stock ‘‘Exchange’’) filed with the Securities Options Rules,4 the Exchange proposes
transactions. and Exchange Commission to delete the duplicative rules in BX’s
The Commission estimates that (‘‘Commission’’) the proposed rule Options Rules as market participants
approximately 195 broker-dealers will change as described in Items I and II transacting on the Exchange’s equity
spend an average of 78 hours annually below, which Items have been prepared and options markets are already
to comply with this rule. Thus, the total by the Exchange. The Commission is governed by the CAT Rules in General
compliance burden is approximately publishing this notice to solicit 7.
15,210 burden-hours per year. comments on the proposed rule change 2. Statutory Basis
Written comments are invited on: (a) from interested persons.
Whether the proposed collection of The Exchange believes that its
I. Self-Regulatory Organization’s proposal is consistent with Section 6(b)
information is necessary for the proper
Statement of the Terms of Substance of of the Act,5 in general, and furthers the
performance of the functions of the
the Proposed Rule Change objectives of Section 6(b)(5) of the Act,6
agency, including whether the
information shall have practical utility; The Exchange proposes to delete the in particular, in that it is designed to
(b) the accuracy of the agency’s rules related to the Consolidated Audit promote just and equitable principles of
estimates of the burden of the proposed Trail (‘‘CAT Rules’’) currently under trade, to remove impediments to and
collection of information; (c) ways to Chapter IX, Sections 8 and 9 of BX’s perfect the mechanism of a free and
enhance the quality, utility, and clarity Options Rules, as further described open market and a national market
of the information to be collected; and below. system, and, in general to protect
(d) ways to minimize the burden of the The text of the proposed rule change investors and the public interest by
collection of information on is available on the Exchange’s website at removing the duplicative CAT Rules
respondents, including through the use http://nasdaqbx.cchwallstreet.com/, at from BX’s Options Rules. As discussed
of automated collection techniques or the principal office of the Exchange, and above, Exchange members are already
other forms of information technology. at the Commission’s Public Reference governed by the CAT Rules in General
Consideration will be given to Room. 7 of the rulebook’s shell structure. The
comments and suggestions submitted in Exchange believes that the proposed
II. Self-Regulatory Organization’s changes will make the Exchange’s
writing within 60 days of this Statement of the Purpose of, and
publication. rulebook easier to read and eliminate
Statutory Basis for, the Proposed Rule any potential confusion to the benefit of
An agency may not conduct or Change
sponsor, and a person is not required to its members and investors.
respond to, a collection of information In its filing with the Commission, the
Exchange included statements B. Self-Regulatory Organization’s
unless it displays a currently valid OMB Statement on Burden on Competition
control number. concerning the purpose of and basis for
the proposed rule change and discussed The Exchange does not believe that
Please direct your written comments
any comments it received on the the proposed rule change will impose
to: Pamela Dyson, Acting Director/Chief
proposed rule change. The text of these any burden on competition not
Information Officer, Securities and
statements may be examined at the necessary or appropriate in furtherance
Exchange Commission, c/o Remi Pavlik-
places specified in Item IV below. The of the purposes of the Act. The
Simon, 100 F Street NE, Washington,
Exchange has prepared summaries, set proposed changes as discussed above do
DC 20549 or send an email to PRA_
forth in sections A, B, and C below, of not impose a burden on competition
Mailbox@sec.gov.
the most significant aspects of such because they are non-substantive and
Dated: April 18, 2018. statements. are intended to clarify the Exchange’s
Eduardo A. Aleman, rulebook in order to eliminate any
A. Self-Regulatory Organization’s potential confusion.
Assistant Secretary.
Statement of the Purpose of, and
[FR Doc. 2018–08398 Filed 4–20–18; 8:45 am] C. Self-Regulatory Organization’s
Statutory Basis for, the Proposed Rule
BILLING CODE P Statement on Comments on the
Change
Proposed Rule Change Received From
1. Purpose Members, Participants, or Others
SECURITIES AND EXCHANGE The purpose of the proposed rule
COMMISSION No written comments were either
change is to delete the CAT Rules solicited or received.
[Release No. 34–83059; File No. SR–BX– currently under BX’s Options Rules,
2018–013] Chapter IX, Sections 8 and 9 because III. Date of Effectiveness of the
these rules are already located in Proposed Rule Change and Timing for
Self-Regulatory Organizations; Nasdaq General 7, entitled ‘‘Consolidated Audit Commission Action
BX, Inc.; Notice of Filing and Trail Compliance,’’ under the ‘‘General Because the foregoing proposed rule
Immediate Effectiveness of Proposed Equity and Options Rules’’ in the change does not: (i) Significantly affect
Rule Change To Delete Duplicative Exchange’s rulebook’s shell structure.3 the protection of investors or the public
Rules Related to the Consolidated Given that the CAT Rules contained in interest; (ii) impose any significant
Audit Trail From Its Rulebook General 7 are non-product specific and
April 17, 2018.
are identical to the CAT Rules in BX’s 4 As part of its continued effort to promote

efficiency and conformity of its rules with those of
Pursuant to Section 19(b)(1) of the 3 The Exchange added a shell structure to its the Affiliated Exchanges, the Exchange recently
amozie on DSK30RV082PROD with NOTICES

Securities Exchange Act of 1934 rulebook with the purpose of improving efficiency relocated the CAT Rules previously under the 6800
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 and readability and to align its rules closer to those Series of BX’s Equity Rules to General 7 because the
of its five sister exchanges: The Nasdaq Stock CAT Rules apply across all markets and to all
notice is hereby given that on April 5, products. See Securities Exchange Act Release No.
Market LLC; Nasdaq PHLX LLC; Nasdaq ISE, LLC;
2018, Nasdaq BX, Inc. (‘‘BX’’ or Nasdaq GEMX, LLC; and Nasdaq MRX, LLC 82597 (January 30, 2018), 83 FR 4942 (February 2,
(‘‘Affiliated Exchanges’’). See Securities Exchange 2018) (SR–BX–2018–007).
1 15 U.S.C. 78s(b)(1). 5 15 U.S.C. 78f(b).
Act Release No. 82174 (November 29, 2017), 82 FR
2 17 CFR 240.19b–4. 57492 (December 5, 2017) (SR–BX–2017–054). 6 15 U.S.C. 78f(b)(5).

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Federal Register / Vol. 83, No. 78 / Monday, April 23, 2018 / Notices 17697

burden on competition; and (iii) become Comments may be submitted by any of SECURITIES AND EXCHANGE
operative for 30 days from the date on the following methods: COMMISSION
which it was filed, or such shorter time
as the Commission may designate, it has Electronic Comments Submission for OMB Review;
become effective pursuant to Section • Use the Commission’s internet Comment Request
19(b)(3)(A)(iii) of the Act 7 and comment form (http://www.sec.gov/
subparagraph (f)(6) of Rule 19b–4 rules/sro.shtml); or Upon Written Request, Copies Available
thereunder.8 From: Securities and Exchange
A proposed rule change filed under • Send an email to rule-comments@ Commission, Office of FOIA Services,
Rule 19b–4(f)(6) 9 normally does not sec.gov. Please include File Number SR– 100 F Street NE, Washington, DC
become operative prior to 30 days after BX–2018–013 on the subject line. 20549–2736
the date of the filing. However, Rule
Paper Comments Extension:
19b–4(f)(6)(iii) 10 permits the
Rule 23c–1, SEC File No. 270–253, OMB
Commission to designate a shorter time • Send paper comments in triplicate Control No. 3235–0260
if such action is consistent with the to Secretary, Securities and Exchange
protection of investors and the public Commission, 100 F Street NE, Notice is hereby given that, pursuant
interest. The Exchange has requested Washington, DC 20549–1090. to the Paperwork Reduction Act of 1995
that the Commission to waive the 30- (44 U.S.C. 350l-3520), the Securities and
day operative delay so that the proposal All submissions should refer to File
Number SR–BX–2018–013. This file Exchange Commission (the
will become operative upon filing. The
number should be included on the ‘‘Commission’’) has submitted to the
Exchange stated that removing the
duplicative CAT Rules, as discussed subject line if email is used. To help the Office of Management and Budget a
above, will bring greater clarity to its Commission process and review your request for extension of the previously
rulebook and will eliminate any comments more efficiently, please use approved collection of information
potential confusion to the benefit of its only one method. The Commission will discussed below.
members and investors. Therefore, the post all comments on the Commission’s Rule 23c–1(a) under the Investment
Commission believes that waiver of the internet website (http://www.sec.gov/ Company Act (17 CFR 270.23c–1(a))
30-day operative delay is consistent rules/sro.shtml). Copies of the permits a closed-end fund to repurchase
with the protection of investors and the submission, all subsequent its securities for cash if, in addition to
public interest. Accordingly, the amendments, all written statements the other requirements set forth in the
Commission hereby waives the with respect to the proposed rule rule, the following conditions are met:
operative delay and designates the change that are filed with the (i) Payment of the purchase price is
proposed rule change as operative upon Commission, and all written accompanied or preceded by a written
filing.11 communications relating to the confirmation of the purchase (‘‘written
At any time within 60 days of the proposed rule change between the confirmation’’); (ii) the asset coverage
filing of the proposed rule change, the Commission and any person, other than per unit of the security to be purchased
Commission summarily may those that may be withheld from the is disclosed to the seller or his agent
temporarily suspend such rule change if public in accordance with the (‘‘asset coverage disclosure’’); and (iii) if
it appears to the Commission that such provisions of 5 U.S.C. 552, will be the security is a stock, the fund has,
action is: (i) Necessary or appropriate in
available for website viewing and within the preceding six months,
the public interest; (ii) for the protection
printing in the Commission’s Public informed stockholders of its intention to
of investors; or (iii) otherwise in
Reference Room, 100 F Street NE, purchase stock (‘‘six month notice’’).
furtherance of the purposes of the Act.
Washington, DC 20549, on official Commission staff estimates that 91
If the Commission takes such action, the
Commission shall institute proceedings business days between the hours of closed-end funds undertake a total of
to determine whether the proposed rule 10:00 a.m. and 3:00 p.m. Copies of the 364 repurchases annually under rule
should be approved or disapproved. filing also will be available for 23c–1.1 Staff estimates further that, with
inspection and copying at the principal respect to each repurchase, each fund
IV. Solicitation of Comments office of the Exchange. All comments spends 2.5 hours to comply with the
Interested persons are invited to received will be posted without change. rule’s written confirmation, asset
submit written data, views, and Persons submitting comments are coverage disclosure and six month
arguments concerning the foregoing, cautioned that we do not redact or edit notice requirements. Thus, Commission
including whether the proposed rule personal identifying information from staff estimates the total annual
change is consistent with the Act. comment submissions. You should respondent reporting burden is 910
submit only information that you wish
7 15 U.S.C. 78s(b)(3)(A)(iii). to make available publicly. All 1 The number of closed-end funds that undertake
8 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– submissions should refer to File repurchases annually under rule 23c–1 is based on
4(f)(6)(iii) requires the Exchange to give the Number SR–BX–2018–013 and should information provided in response to Item 9 of Form
Commission written notice of the Exchange’s intent N–CSR from January 1, 2017 through December 31,
to file the proposed rule change, along with a brief be submitted on or before May 14, 2018.
2017. Although 136 closed-end funds made
description and text of the proposed rule change, For the Commission, by the Division of disclosures regarding ‘‘publicly announced’’
at least five business days prior to the date of filing repurchase plans in response to Item 9, not all
of the proposed rule change, or such shorter time Trading and Markets, pursuant to delegated
repurchases are made pursuant to rule 23c–1. We
as designated by the Commission. The Exchange authority.12 estimate that approximately 30% of such closed-
amozie on DSK30RV082PROD with NOTICES

has satisfied this requirement. Eduardo A. Aleman, end funds have not made repurchases pursuant to
9 17 CFR 240.19b–4(f)(6).
rule 23c–1. Therefore, our estimate does not include
10 17 CFR 240.19b–4(f)(6)(iii). Assistant Secretary. all 136 funds that made disclosures of publicly
11 For purposes only of waiving the 30-day [FR Doc. 2018–08356 Filed 4–20–18; 8:45 am] announced repurchases under Item 9, but only a
operative delay, the Commission has also BILLING CODE 8011–01–P
subset thereof (91 funds). We also estimate that
considered the proposed rule’s impact on each of the 91 funds undertook an average of 4
efficiency, competition, and capital formation. See repurchases annually (91 funds × 4 repurchases =
15 U.S.C. 78c(f). 12 17 CFR 200.30–3(a)(12). 364 repurchases annually).

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Document Created: 2018-04-21 00:32:51
Document Modified: 2018-04-21 00:32:51
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 17696