83 FR 18110 - Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Clarify the Requirements for Delivery of a Contrary Exercise Advice

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 80 (April 25, 2018)

Page Range		18110-18111
FR Document		2018-08614
Federal Register, Volume 83 Issue 80 (Wednesday, April 25, 2018)
[Federal Register Volume 83, Number 80 (Wednesday, April 25, 2018)]
[Notices]
[Pages 18110-18111]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-08614]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83064; File No. SR-BX-2018-014]


Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Clarify the 
Requirements for Delivery of a Contrary Exercise Advice

April 19, 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 9, 2018, Nasdaq BX, Inc. (``BX'' or ``Exchange'') filed with 
the Securities and Exchange Commission (``Commission'') the proposed 
rule change as described in Items I, II, and III 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 amend the rules of the Exchange, at 
Chapter VIII, Exercises and Deliveries.
    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 Exchange proposes to correct Chapter VIII, Exercises and 
Deliveries, Section 1, Exercise of Options Contracts, to clarify the 
requirements for delivery of a Contrary Exercise Advice. Section 1(b) 
currently provides that option holders desiring to exercise or not 
exercise expiring options must either (i) take no action and allow 
exercise determinations to be made in accordance with the Options 
Clearing Corporation's Ex-by- Ex procedure where applicable, or (ii) 
submit a ``Contrary Exercise Advice'' to the Options Clearing 
Corporation through the participant's clearing firm. In actual 
practice, however, an option holder delivers a Contrary Exchange Advice 
to the Exchange, not to the Options Clearing Corporation. The Exchange 
therefore proposes to replace the words ``Options Clearing Corporation 
through the participants clearing firm'' in Section 1(b)(ii) with a 
reference to the Exchange and make similar, conforming changes to 
Section 1(e)(i). As amended, Section 1(b) would be consistent with 
Nasdaq ISE Rule 1100(b) which directs option holders to submit Contrary 
Exercise Advices to the Exchange (not to the Options Clearing 
Corporation).
    The Exchange proposes to further replace the words ``by the 
deadline specified in paragraph (d) below'' with the words ``as 
specified in paragraph (d) below'' given that paragraph (d) contains a 
number of requirements associated with submission of Contrary Exercise 
Advices in addition to the deadline. As revised, Section (b)(ii) tracks 
the language of ISE Rule 1100(b)(ii) which permits an options holder 
desiring to exercise or not exercise expiring options to ``submit a 
``Contrary Exercise Advice'' to the Exchange as specified in paragraph 
(d) . . . .'' (which, like the counterpart BX paragraph (d) rule, 
specifies various requirements associated with submitting Contrary 
Exercise Advices).
    Finally, the Exchange proposes to make a number of minor 
nonsubstantive revisions to Chapter VIII which are designed simply to 
facilitate administration of the rules. References to ``BX'' and to 
``BX Regulation'' are proposed to be replaced with references to ``the 
Exchange.'' \3\ Substituting the word ``Exchange'' for BX in various 
places will provide the Exchange flexibility to determine the most 
appropriate department or individual within the Exchange to oversee the 
particular rule, and will also facilitate the incorporation by 
reference of the amended rule into the rules of BX's affiliated 
exchanges in the future.\4\
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    \3\ The changes are proposed to be made in Section 1(b), (d), 
(e), (f), (g), (h), (i), (k) and (l), as well as in Section 2(a) and 
(b), of Chapter VIII. The Exchange notes that Chapter 11, Exercises 
and Deliveries, of the ISE Rulebook likewise uses the generic term 
``the Exchange'' throughout that chapter.
    \4\ Recently, 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 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). The changes proposed 
herein are being made in connection with that effort, to align the 
BX rules with those of the Affiliated Exchanges more closely.
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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 identifying the correct entity to which option holders must deliver 
Contrary Exercise Advices and by substituting the word ``Exchange'' for 
BX in various places which will enable the amended rule to be 
incorporated by reference into rules of affiliated exchanges in the 
future, which should enhance the ability of members of BX and 
affiliated exchanges to understand and comply with a uniform set of 
rules across the exchanges.
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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 rule changes will 
apply equally to all option holders desiring to exercise options under 
the BX rules. Further, the proposed changes merely correct an incorrect 
reference to OCC and conform the wording of the rule more closely to 
that of a Nasdaq ISE rule for the sake of administrative convenience. 
The Exchange does not

[[Page 18111]]

intend for or expect that such changes will have any impact on 
competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A)(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) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file 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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    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-2018-014 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-2018-014. 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-2018-014, and should be submitted on 
or before May 16, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Eduardo A. Aleman,
Assistant Secretary.
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    \9\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2018-08614 Filed 4-24-18; 8:45 am]
 BILLING CODE 8011-01-P
18110 Federal Register / Vol. 83, No. 80 / Wednesday, April 25, 2018 / Notices

For the Commission, by the Division of the most significant aspects of such word ‘‘Exchange’’ for BX in various
Trading and Markets, pursuant to delegated statements. places will provide the Exchange
authority.34 flexibility to determine the most
Eduardo A. Aleman, A. Self-Regulatory Organization’s
appropriate department or individual
Assistant Secretary.
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule within the Exchange to oversee the
[FR Doc. 2018–08617 Filed 4–24–18; 8:45 am]
Change particular rule, and will also facilitate
BILLING CODE 8011–01–P the incorporation by reference of the
1. Purpose amended rule into the rules of BX’s
The Exchange proposes to correct affiliated exchanges in the future.4
SECURITIES AND EXCHANGE Chapter VIII, Exercises and Deliveries,
COMMISSION 2. Statutory Basis
Section 1, Exercise of Options Contracts,
to clarify the requirements for delivery The Exchange believes that its
[Release No. 34–83064; File No. SR–BX– of a Contrary Exercise Advice. Section proposal is consistent with Section 6(b)
2018–014] 1(b) currently provides that option of the Act,5 in general, and furthers the
holders desiring to exercise or not objectives of Section 6(b)(5) of the Act,6
Self-Regulatory Organizations; Nasdaq exercise expiring options must either (i) in particular, in that it is designed to
BX, Inc.; Notice of Filing and take no action and allow exercise promote just and equitable principles of
Immediate Effectiveness of Proposed determinations to be made in trade, to remove impediments to and
Rule Change Clarify the Requirements accordance with the Options Clearing perfect the mechanism of a free and
for Delivery of a Contrary Exercise Corporation’s Ex-by- Ex procedure open market and a national market
Advice where applicable, or (ii) submit a system, and, in general to protect
April 19, 2018. ‘‘Contrary Exercise Advice’’ to the investors and the public interest, by
Pursuant to Section 19(b)(1) of the Options Clearing Corporation through identifying the correct entity to which
Securities Exchange Act of 1934 the participant’s clearing firm. In actual option holders must deliver Contrary
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 practice, however, an option holder Exercise Advices and by substituting the
notice is hereby given that on April 9, delivers a Contrary Exchange Advice to word ‘‘Exchange’’ for BX in various
2018, Nasdaq BX, Inc. (‘‘BX’’ or the Exchange, not to the Options places which will enable the amended
Clearing Corporation. The Exchange rule to be incorporated by reference into
‘‘Exchange’’) filed with the Securities
therefore proposes to replace the words rules of affiliated exchanges in the
and Exchange Commission
‘‘Options Clearing Corporation through future, which should enhance the
(‘‘Commission’’) the proposed rule
the participants clearing firm’’ in ability of members of BX and affiliated
change as described in Items I, II, and
Section 1(b)(ii) with a reference to the exchanges to understand and comply
III below, which Items have been
Exchange and make similar, conforming with a uniform set of rules across the
prepared by the Exchange. The
changes to Section 1(e)(i). As amended, exchanges.
Commission is publishing this notice to
Section 1(b) would be consistent with
solicit comments on the proposed rule B. Self-Regulatory Organization’s
Nasdaq ISE Rule 1100(b) which directs
change from interested persons. Statement on Burden on Competition
option holders to submit Contrary
I. Self-Regulatory Organization’s Exercise Advices to the Exchange (not to
The Exchange does not believe that
Statement of the Terms of Substance of the Options Clearing Corporation).
the proposed rule change will impose
the Proposed Rule Change The Exchange proposes to further
replace the words ‘‘by the deadline any burden on competition not
The Exchange proposes to amend the specified in paragraph (d) below’’ with necessary or appropriate in furtherance
rules of the Exchange, at Chapter VIII, the words ‘‘as specified in paragraph (d) of the purposes of the Act. The
Exercises and Deliveries. below’’ given that paragraph (d) proposed rule changes will apply
The text of the proposed rule change contains a number of requirements equally to all option holders desiring to
is available on the Exchange’s website at associated with submission of Contrary exercise options under the BX rules.
http://nasdaqbx.cchwallstreet.com/, at Exercise Advices in addition to the Further, the proposed changes merely
the principal office of the Exchange, and deadline. As revised, Section (b)(ii) correct an incorrect reference to OCC
at the Commission’s Public Reference tracks the language of ISE Rule and conform the wording of the rule
Room. 1100(b)(ii) which permits an options more closely to that of a Nasdaq ISE rule
holder desiring to exercise or not for the sake of administrative
II. Self-Regulatory Organization’s
exercise expiring options to ‘‘submit a convenience. The Exchange does not
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule ‘‘Contrary Exercise Advice’’ to the
Exchange as specified in paragraph (d) in Section 2(a) and (b), of Chapter VIII. The
Change Exchange notes that Chapter 11, Exercises and
. . . .’’ (which, like the counterpart BX Deliveries, of the ISE Rulebook likewise uses the
In its filing with the Commission, the paragraph (d) rule, specifies various generic term ‘‘the Exchange’’ throughout that
Exchange included statements requirements associated with submitting chapter.
concerning the purpose of and basis for Contrary Exercise Advices). 4 Recently, the Exchange added a shell structure
the proposed rule change and discussed Finally, the Exchange proposes to to its Rulebook with the purpose of improving
any comments it received on the make a number of minor nonsubstantive efficiency and readability and to align its rules
proposed rule change. The text of these closer to those of its five sister exchanges, Nasdaq
revisions to Chapter VIII which are Stock Market LLC; Nasdaq PHLX LLC; Nasdaq ISE,
sradovich on DSK3GMQ082PROD with NOTICES

statements may be examined at the designed simply to facilitate LLC; Nasdaq GEMX, LLC; and Nasdaq MRX, LLC
places specified in Item IV below. The administration of the rules. References (‘‘Affiliated Exchanges’’). See Securities Exchange
Exchange has prepared summaries, set to ‘‘BX’’ and to ‘‘BX Regulation’’ are Act Release No. 82174 (November 29, 2017), 82 FR
forth in sections A, B, and C below, of 57492 (December 5, 2017) (SR–BX–2017–054). The
proposed to be replaced with references changes proposed herein are being made in
to ‘‘the Exchange.’’ 3 Substituting the connection with that effort, to align the BX rules
34 17 CFR 200.30–3(a)(12). with those of the Affiliated Exchanges more closely.
1 15 U.S.C. 78s(b)(1). 3 The changes are proposed to be made in Section 5 15 U.S.C. 78f(b).
2 17 CFR 240.19b–4. 1(b), (d), (e), (f), (g), (h), (i), (k) and (l), as well as 6 15 U.S.C. 78f(b)(5).

VerDate Sep<11>2014 19:12 Apr 24, 2018 Jkt 244001 PO 00000 Frm 00118 Fmt 4703 Sfmt 4703 E:\FR\FM\25APN1.SGM 25APN1
Federal Register / Vol. 83, No. 80 / Wednesday, April 25, 2018 / Notices 18111

intend for or expect that such changes All submissions should refer to File Incident: Severe Storms, Flooding,
will have any impact on competition. Number SR–BX–2018–014. This file and Landslides.
number should be included on the Incident Period: 02/14/2018 through
C. Self-Regulatory Organization’s
subject line if email is used. To help the 02/25/2018.
Statement on Comments on the
Commission process and review your
Proposed Rule Change Received From
comments more efficiently, please use DATES: Issued on 04/17/2018.
Members, Participants, or Others
only one method. The Commission will Physical Loan Application Deadline
No written comments were either post all comments on the Commission’s Date: 06/18/2018.
solicited or received. internet website (http://www.sec.gov/
rules/sro.shtml). Copies of the Economic Injury (EIDL) Loan
III. Date of Effectiveness of the Application Deadline Date: 01/17/2019.
Proposed Rule Change and Timing for submission, all subsequent
Commission Action amendments, all written statements ADDRESSES: Submit completed loan
with respect to the proposed rule applications to: U.S. Small Business
Because the foregoing proposed rule change that are filed with the
change does not: (i) Significantly affect Administration, Processing and
Commission, and all written Disbursement Center, 14925 Kingsport
the protection of investors or the public communications relating to the
interest; (ii) impose any significant Road, Fort Worth, TX 76155.
proposed rule change between the
burden on competition; and (iii) become Commission and any person, other than FOR FURTHER INFORMATION CONTACT: A.
operative for 30 days from the date on those that may be withheld from the Escobar, Office of Disaster Assistance,
which it was filed, or such shorter time public in accordance with the U.S. Small Business Administration,
as the Commission may designate, it has provisions of 5 U.S.C. 552, will be 409 3rd Street SW, Suite 6050,
become effective pursuant to Section available for website viewing and Washington, DC 20416, (202) 205–6734.
19(b)(3)(A)(iii) of the Act 7 and printing in the Commission’s Public
subparagraph (f)(6) of Rule 19b–4 Reference Room, 100 F Street NE, SUPPLEMENTARY INFORMATION: Notice is
thereunder.8 Washington, DC 20549 on official hereby given that as a result of the
At any time within 60 days of the business days between the hours of President’s major disaster declaration on
filing of the proposed rule change, the 10:00 a.m. and 3:00 p.m. Copies of the 04/17/2018, Private Non-Profit
Commission summarily may filing also will be available for organizations that provide essential
temporarily suspend such rule change if inspection and copying at the principal services of a governmental nature may
it appears to the Commission that such office of the Exchange. All comments file disaster loan applications at the
action is: (i) Necessary or appropriate in received will be posted without change. address listed above or other locally
the public interest; (ii) for the protection Persons submitting comments are announced locations.
of investors; or (iii) otherwise in cautioned that we do not redact or edit
furtherance of the purposes of the Act. The following areas have been
personal identifying information from
If the Commission takes such action, the determined to be adversely affected by
comment submissions. You should
Commission shall institute proceedings submit only information that you wish the disaster:
to determine whether the proposed rule to make available publicly. All Primary Counties: Adams, Athens,
should be approved or disapproved. submissions should refer to File Belmont, Brown, Columbiana,
IV. Solicitation of Comments Number SR–BX–2018–014, and should Gallia, Hamilton, Jackson,
be submitted on or before May 16, 2018. Lawrence, Meigs, Monroe,
Interested persons are invited to
submit written data, views, and For the Commission, by the Division of Muskingum, Noble, Perry, Pike,
Trading and Markets, pursuant to delegated Scioto, Vinton, Washington.
arguments concerning the foregoing, authority.9
including whether the proposed rule The Interest Rates are:
Eduardo A. Aleman,
change is consistent with the Act.
Assistant Secretary.
Comments may be submitted by any of Percent
the following methods: [FR Doc. 2018–08614 Filed 4–24–18; 8:45 am]
BILLING CODE 8011–01–P For Physical Damage:
Electronic Comments Non-Profit Organizations with
• Use the Commission’s internet Credit Available Elsewhere ... 2.500
comment form (http://www.sec.gov/ SMALL BUSINESS ADMINISTRATION Non-Profit Organizations with-
rules/sro.shtml); or out Credit Available Else-
[Disaster Declaration #15495 and #15496;
• Send an email to rule-comments@ OHIO Disaster Number OH–00054]
where ..................................... 2.500
sec.gov. Please include File Number SR– For Economic Injury:
BX–2018–014 on the subject line. Non-Profit Organizations with-
Presidential Declaration of a Major out Credit Available Else-
Paper Comments Disaster for Public Assistance Only for where ..................................... 2.500
the State of OHIO
• Send paper comments in triplicate
to Secretary, Securities and Exchange AGENCY: U.S. Small Business The number assigned to this disaster
Commission, 100 F Street NE, Administration. for physical damage is 154956 and for
Washington, DC 20549–1090. ACTION: Notice. economic injury is 154960.
sradovich on DSK3GMQ082PROD with NOTICES

7 15 SUMMARY: This is a Notice of the (Catalog of Federal Domestic Assistance
U.S.C. 78s(b)(3)(A)(iii).
8 17 Presidential declaration of a major Number 59008)
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give disaster for Public Assistance Only for James Rivera,
the Commission written notice of its intent to file the State of
the proposed rule change at least five business days OHIO (FEMA–4360–DR), dated Associate Administrator for Disaster
prior to the date of filing of the proposed rule Assistance.
change, or such shorter time as designated by the 04/17/2018.
[FR Doc. 2018–08563 Filed 4–24–18; 8:45 am]
Commission. The Exchange has satisfied this
requirement. 9 17 CFR 200.30–3(a)(12). BILLING CODE 8025–01–P

VerDate Sep<11>2014 19:12 Apr 24, 2018 Jkt 244001 PO 00000 Frm 00119 Fmt 4703 Sfmt 9990 E:\FR\FM\25APN1.SGM 25APN1
Document Created: 2018-11-02 08:17:02
Document Modified: 2018-11-02 08:17:02
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 18110