83_FR_19454 83 FR 19369 - Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Designation of Longer Period for Commission Action on Proposed Rule Change To Introduce the ATR Protection for Orders That Are Routed to Away Markets

83 FR 19369 - Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Designation of Longer Period for Commission Action on Proposed Rule Change To Introduce the ATR Protection for Orders That Are Routed to Away Markets

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 85 (May 2, 2018)

Page Range19369-19370
FR Document2018-09263

Federal Register, Volume 83 Issue 85 (Wednesday, May 2, 2018) 
[Federal Register Volume 83, Number 85 (Wednesday, May 2, 2018)]
[Notices]
[Pages 19369-19370]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-09263]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83118; File No. SR-GEMX-2018-09]


Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of 
Designation of Longer Period for Commission Action on Proposed Rule 
Change To Introduce the ATR Protection for Orders That Are Routed to 
Away Markets

April 26, 2018.

    On February 26, 2018, Nasdaq GEMX, LLC (``Exchange'') filed with 
the Securities and Exchange Commission (``Commission''), pursuant to 
Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ 
and Rule 19b-4 thereunder,\2\ a proposed rule change to amend Exchange 
Rule 714 regarding the Acceptable Trade Range protection for orders and 
quotes. The proposed rule

[[Page 19370]]

change was published for comment in the Federal Register on March 14, 
2018.\3\ On April 23, 2018, the Exchange submitted Amendment No. 1 to 
the proposed rule change.\4\ The Commission received no comments on the 
proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 82847 (March 9, 
2018), 83 FR 11259 (``Notice'').
    \4\ See Letter to Brent J. Fields, Secretary, Commission, from 
Adrian Griffiths, Senior Associate General Counsel, Nasdaq, Inc., 
dated April 23, 2018. Amendment No. 1 revises the proposed rule 
change to: (i) Provide further discussion of the current application 
of the ATR to orders routed away; (ii) modify the proposed rule text 
regarding the recalculation of the ATR for orders routed away 
pursuant to Supplementary Material to Exchange Rule 1901, if the 
applicable National Best Bid or the National Best Offer price is 
improved at the time of routing; (iii) expand the discussion and 
justification for recalculating the ATR for such orders; and (iv) 
make other amendments to the proposed rule text to improve the 
understandability of the current ATR calculation. Amendment No. 1 is 
available at: https://www.sec.gov/comments/sr-gemx-2018-09/gemx201809-3490578-162256.pdf.
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    Section 19(b)(2) of the Act \5\ provides that within 45 days of the 
publication of notice of the filing of a proposed rule change, or 
within such longer period up to 90 days as the Commission may designate 
if it finds such longer period to be appropriate and publishes its 
reasons for so finding or as to which the self-regulatory organization 
consents, the Commission shall either approve the proposed rule change, 
disapprove the proposed rule change, or institute proceedings to 
determine whether these proposed rule changes should be disapproved. 
The 45th day for this filing is April 28, 2018.
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    \5\ 15 U.S.C. 78s(b)(2).
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    The Commission is extending the 45-day time period for Commission 
action on the proposed rule change. The Commission finds that it is 
appropriate to designate a longer period within which to take action on 
the proposed rule change so that it has sufficient time to consider and 
take action on the Exchange's proposed rule change.
    Accordingly, pursuant to Section 19(b)(2)(A)(ii)(I) of the Act \6\ 
and for the reasons stated above, the Commission designates June 12, 
2018 as the date by which the Commission should either approve or 
disapprove, or institute proceedings to determine whether to 
disapprove, the proposed rule change (File No. SR-GEMX-2018-09).
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    \6\ 15 U.S.C. 78s(b)(2)(A)(ii)(I).
    \7\ 17 CFR 200.30-3(a)(31).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-09263 Filed 5-1-18; 8:45 am]
 BILLING CODE 8011-01-P

Federal Register / Vol. 83, No. 85 / Wednesday, May 2, 2018 / Notices 19369 excessive layering of fees, and (iii) investment company involved; and (c) to 90 days as the Commission may overly complex fund structures, which the proposed transaction is consistent designate if it finds such longer period are the concerns underlying the limits with the general purposes of the Act. to be appropriate and publishes its in sections 12(d)(1)(A) and (B) of the For the Commission, by the Division of reasons for so finding or as to which the Act. Investment Management, under delegated self-regulatory organization consents, 8. Applicants request an exemption authority. the Commission shall either approve the from sections 17(a)(1) and 17(a)(2) of the Eduardo A. Aleman, proposed rule change, disapprove the Act to permit persons that are Affiliated Assistant Secretary. proposed rule change, or institute Persons, or Second Tier Affiliates, of the proceedings to determine whether these [FR Doc. 2018–09232 Filed 5–1–18; 8:45 am] Funds, solely by virtue of certain proposed rule changes should be BILLING CODE 8011–01–P ownership interests, to effectuate disapproved. The 45th day for this filing purchases and redemptions in-kind. The is April 28, 2018. deposit procedures for in-kind The Commission is extending the 45- SECURITIES AND EXCHANGE purchases of Creation Units and the day time period for Commission action COMMISSION redemption procedures for in-kind on the proposed rule change. The redemptions of Creation Units will be [Release No. 34–83116; File No. SR–MRX– Commission finds that it is appropriate the same for all purchases and 2018–08] to designate a longer period within redemptions and Deposit Instruments which to take action on the proposed and Redemption Instruments will be Self-Regulatory Organizations; Nasdaq rule change so that it has sufficient time valued in the same manner as those MRX, LLC; Notice of Designation of to consider and take action on the investment positions currently held by Longer Period for Commission Action Exchange’s proposed rule change. the Funds. Applicants also seek relief on Proposed Rule Change To Accordingly, pursuant to Section from the prohibitions on affiliated Introduce the ATR Protection for 19(b)(2)(A)(ii)(I) of the Act 6 and for the transactions in section 17(a) to permit a Orders That Are Routed to Away reasons stated above, the Commission Fund to sell its shares to and redeem its Markets designates June 12, 2018 as the date by shares from a Fund of Funds, and to which the Commission should either April 26, 2018. engage in the accompanying in-kind approve or disapprove, or institute transactions with the Fund of Funds.3 On February 23, 2018, Nasdaq MRX, proceedings to determine whether to The purchase of Creation Units by a LLC (‘‘Exchange’’) filed with the disapprove, the proposed rule change Fund of Funds directly from a Fund will Securities and Exchange Commission (File No. SR–MRX–2018–08). be accomplished in accordance with the (‘‘Commission’’), pursuant to Section For the Commission, by the Division policies of the Fund of Funds and will 19(b)(1) of the Securities Exchange Act of Trading and Markets, pursuant to be based on the NAVs of the Funds. of 1934 (‘‘Act’’) 1 and Rule 19b–4 delegated authority.7 9. Section 6(c) of the Act permits the thereunder,2 a proposed rule change to Commission to exempt any persons or amend Exchange Rule 714 regarding the Eduardo A. Aleman, transactions from any provision of the Acceptable Trade Range protection for Assistant Secretary. Act if such exemption is necessary or orders and quotes. The proposed rule [FR Doc. 2018–09261 Filed 5–1–18; 8:45 am] appropriate in the public interest and change was published for comment in BILLING CODE 8011–01–P consistent with the protection of the Federal Register on March 14, investors and the purposes fairly 2018.3 On April 23, 2018, the Exchange intended by the policy and provisions of submitted Amendment No. 1 to the SECURITIES AND EXCHANGE the Act. Section 12(d)(1)(J) of the Act proposed rule change.4 The Commission COMMISSION provides that the Commission may received no comments on the proposed [Release No. 34–83118; File No. SR–GEMX– exempt any person, security, or rule change. 2018–09] transaction, or any class or classes of Section 19(b)(2) of the Act 5 provides persons, securities, or transactions, from that within 45 days of the publication of Self-Regulatory Organizations; Nasdaq any provision of section 12(d)(1) if the notice of the filing of a proposed rule GEMX, LLC; Notice of Designation of exemption is consistent with the public change, or within such longer period up Longer Period for Commission Action interest and the protection of investors. on Proposed Rule Change To Section 17(b) of the Act authorizes the 1 15 U.S.C. 78s(b)(1). Introduce the ATR Protection for Commission to grant an order 2 17 CFR 240.19b–4. Orders That Are Routed to Away 3 See Securities Exchange Act Release No. 82848 permitting a transaction otherwise Markets prohibited by section 17(a) if it finds (March 9, 2018), 83 FR 11276 (‘‘Notice’’). 4 See Letter to Brent J. Fields, Secretary, that (a) the terms of the proposed Commission, from Adrian Griffiths, Senior April 26, 2018. transaction are fair and reasonable and Associate General Counsel, Nasdaq, Inc., dated On February 26, 2018, Nasdaq GEMX, do not involve overreaching on the part April 23, 2018. Amendment No. 1 revises the LLC (‘‘Exchange’’) filed with the of any person concerned; (b) the proposed rule change to: (i) Provide further discussion of the current application of the ATR to Securities and Exchange Commission proposed transaction is consistent with orders routed away; (ii) modify the proposed rule (‘‘Commission’’), pursuant to Section the policies of each registered text regarding the recalculation of the ATR for 19(b)(1) of the Securities Exchange Act orders routed away pursuant to Supplementary of 1934 (‘‘Act’’) 1 and Rule 19b–4 3 The requested relief would apply to direct sales Material to Exchange Rule 1901, if the applicable National Best Bid or the National Best Offer price thereunder,2 a proposed rule change to of shares in Creation Units by a Fund to a Fund of amend Exchange Rule 714 regarding the daltland on DSKBBV9HB2PROD with NOTICES Funds and redemptions of those shares. Applicants, is improved at the time of routing; (iii) expand the moreover, are not seeking relief from section 17(a) discussion and justification for recalculating the Acceptable Trade Range protection for for, and the requested relief will not apply to, ATR for such orders; and (iv) make other orders and quotes. The proposed rule transactions where a Fund could be deemed an amendments to the proposed rule text to improve Affiliated Person, or a Second-Tier Affiliate, of a the understandability of the current ATR 6 15 U.S.C. 78s(b)(2)(A)(ii)(I). Fund of Funds because an Adviser or an entity calculation. Amendment No. 1 is available at: 7 17 CFR 200.30–3(a)(31). controlling, controlled by or under common control https://www.sec.gov/comments/sr-mrx-2018-08/ mrx201808-3492392-162259.pdf. 1 15 U.S.C. 78s(b)(1). with an Adviser provides investment advisory services to that Fund of Funds. 5 15 U.S.C. 78s(b)(2). 2 17 CFR 240.19b–4. VerDate Sep<11>2014 22:14 May 01, 2018 Jkt 244001 PO 00000 Frm 00159 Fmt 4703 Sfmt 4703 E:\FR\FM\02MYN1.SGM 02MYN1

19370 Federal Register / Vol. 83, No. 85 / Wednesday, May 2, 2018 / Notices change was published for comment in SECURITIES AND EXCHANGE Dated: April 26, 2018. the Federal Register on March 14, COMMISSION Eduardo A. Aleman, 2018.3 On April 23, 2018, the Exchange Assistant Secretary. submitted Amendment No. 1 to the Submission for OMB Review; [FR Doc. 2018–09272 Filed 5–1–18; 8:45 am] proposed rule change.4 The Commission Comment Request BILLING CODE 8011–01–P received no comments on the proposed rule change. Upon Written Request Copies Available Section 19(b)(2) of the Act 5 provides From: Securities and Exchange SECURITIES AND EXCHANGE that within 45 days of the publication of Commission, Office of FOIA Services, COMMISSION notice of the filing of a proposed rule 100 F Street NE, Washington, DC change, or within such longer period up 20549–2736. Submission for OMB Review; to 90 days as the Commission may Extension: Comment Request designate if it finds such longer period Form 4; SEC File No. 270–126, OMB Control No. 3235–0287 Upon Written Request, Copies Available to be appropriate and publishes its From: Securities and Exchange reasons for so finding or as to which the Notice is hereby given that, pursuant Commission, Office of Investor self-regulatory organization consents, to the Paperwork Reduction Act of 1995 Education and Advocacy, the Commission shall either approve the (44 U.S.C. 3501 et seq.), the Securities Washington, DC 20549–0213. proposed rule change, disapprove the and Exchange Commission proposed rule change, or institute Extension: (‘‘Commission’’) has submitted to the Rule 17g–7; SEC File No. 270–600, OMB proceedings to determine whether these Office of Management and Budget this Control No. 3235–0656 proposed rule changes should be request for extension of the previously disapproved. The 45th day for this filing approved collection of information Notice is hereby given that pursuant is April 28, 2018. discussed below. to the Paperwork Reduction Act of 1995 The Commission is extending the 45- (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the Under the Exchange Act of 1934 (15 day time period for Commission action Securities and Exchange Commission U.S.C. 78a et seq.) every person who is on the proposed rule change. The (‘‘Commission’’) has submitted to the directly or indirectly the beneficial Commission finds that it is appropriate Office of Management and Budget owner of more than 10 percent of any to designate a longer period within (‘‘OMB’’) a request for approval of class of any equity security (other than which to take action on the proposed extension of the previously approved an exempted security) which registered rule change so that it has sufficient time collection of information provided for in to consider and take action on the under Section 12 of the Exchange Act Rule 17g–7, (17 CFR 240.17g–7), under Exchange’s proposed rule change. (15 U.S.C. 78l), or who is a director or the Securities Exchange Act of 1934 Accordingly, pursuant to Section any officer of the issuer of such security (‘‘Exchange Act’’) (15 U.S.C. 78a et seq.). 19(b)(2)(A)(ii)(I) of the Act 6 and for the (collectively ‘‘insider’’), must file a Rule 17g–7 requires nationally reasons stated above, the Commission statement with the Commission recognized statistical rating designates June 12, 2018 as the date by reporting their ownership. Form 4 is a organizations (‘‘NRSROs’’) to include in which the Commission should either statement to disclose changes in an any report accompanying a credit rating approve or disapprove, or institute insider’s ownership of securities. The with respect to an asset-backed security proceedings to determine whether to information is used for the purpose of (‘‘ABS’’) (as that term is defined in disapprove, the proposed rule change disclosing the equity holdings of Section 3(a)(77) of the Exchange Act) a (File No. SR–GEMX–2018–09). insiders of reporting companies. description of the representations, Approximately 338,207 insiders file warranties and enforcement For the Commission, by the Division of Trading and Markets, pursuant to delegated Form 4 annually and it takes mechanisms available to investors and a authority.7 approximately 0.5 hours to prepare for description of how they differ from the Eduardo A. Aleman, a total of 169,104 annual burden hours. representations, warranties and Assistant Secretary. An agency may not conduct or enforcement mechanisms in issuances sponsor, and a person is not required to of similar securities. Rule 17g–7 [FR Doc. 2018–09263 Filed 5–1–18; 8:45 am] respond to, a collection of information potentially applies to each of the 10 BILLING CODE 8011–01–P unless it displays a currently valid NRSROs currently registered with the 3 See Securities Exchange Act Release No. 82847 control number. Commission.1 (March 9, 2018), 83 FR 11259 (‘‘Notice’’). The public may view the background 4 See Letter to Brent J. Fields, Secretary, documentation for this information 1 When the Commission first adopted rules under Commission, from Adrian Griffiths, Senior collection at the following website, the Credit Rating Agency Reform Act of 2006, it Associate General Counsel, Nasdaq, Inc., dated www.reginfo.gov. Comments should be estimated that approximately 30 credit rating April 23, 2018. Amendment No. 1 revises the agencies ultimately would be registered as NRSROs. proposed rule change to: (i) Provide further directed to: (i) Desk Officer for the See Oversight of Credit Rating Agencies Registered discussion of the current application of the ATR to Securities and Exchange Commission, as Nationally Recognized Statistical Rating orders routed away; (ii) modify the proposed rule Office of Information and Regulatory Organizations, Release No. 34–55857 (Jun. 5, 2007), text regarding the recalculation of the ATR for 72 FR 33564, 33607 (Jun. 18, 2007). Accordingly, orders routed away pursuant to Supplementary Affairs, Office of Management and the Commission used 30 respondents for purposes Material to Exchange Rule 1901, if the applicable Budget, Room 10102, New Executive of calculating its PRA burden estimates when it National Best Bid or the National Best Offer price Office Building, Washington, DC 20503, adopted Rule 17g–7. See Disclosure for Asset- is improved at the time of routing; (iii) expand the or by sending an email to: Shagufta_ Backed Securities Required by Section 943 of the discussion and justification for recalculating the Dodd-Frank Wall Street Reform and Consumer Ahmed@omb.eop.gov; and (ii) Pamela daltland on DSKBBV9HB2PROD with NOTICES ATR for such orders; and (iv) make other Protection Act, Release No. 33–9175; 34–63741 (Jan. amendments to the proposed rule text to improve Dyson, Director/Chief Information 20, 2011), 76 FR 4489, 4506 (Jan. 26, 2011) (‘‘Rule the understandability of the current ATR Officer, Securities and Exchange 17g–7 Adopting Release’’). Since that time, 10 calculation. Amendment No. 1 is available at: Commission, c/o Remi Pavlik-Simon, credit rating agencies have registered with the https://www.sec.gov/comments/sr-gemx-2018-09/ Commission as NRSROs. This number has gemx201809-3490578-162256.pdf. 100 F Street NE, Washington, DC 20549 remained constant for several years. Consequently, 5 15 U.S.C. 78s(b)(2). or send an email to: PRA_Mailbox@ when the Commission last proposed rules regarding 6 15 U.S.C. 78s(b)(2)(A)(ii)(I). sec.gov. Comments must be submitted to the oversight of NRSROs, it stated that it believed 7 17 CFR 200.30–3(a)(31). OMB within 30 days of this notice. it to be more appropriate to use the actual number VerDate Sep<11>2014 22:14 May 01, 2018 Jkt 244001 PO 00000 Frm 00160 Fmt 4703 Sfmt 4703 E:\FR\FM\02MYN1.SGM 02MYN1


Document Created: 2018-05-02 00:49:08
Document Modified: 2018-05-02 00:49:08
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation83 FR 19369 
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