83 FR 19384 - Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Certain Rules of the Rule 7000A Series To Make Conforming and Technical Changes

SECURITIES AND EXCHANGE COMMISSION

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

Page Range		19384-19386
FR Document		2018-09260
Federal Register, Volume 83 Issue 85 (Wednesday, May 2, 2018)
[Federal Register Volume 83, Number 85 (Wednesday, May 2, 2018)]
[Notices]
[Pages 19384-19386]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-09260]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83115; File No. SR-NASDAQ-2018-030]


Self-Regulatory Organizations; The Nasdaq Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend Certain Rules of the Rule 7000A Series To Make Conforming and 
Technical Changes

DATES: April 26, 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 17, 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, 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 certain rules of the Rule 7000A 
Series concerning the Order Audit Trail System to make conforming and 
technical changes.
    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 Exchange is proposing to make the following three changes to 
the Rule 7000A Order Audit Trail Series: (1) Amend Rule 7410A(o)(1)(A) 
to harmonize the rule with FINRA Rule 7410(o)(1)(A); (2) correct rule 
citations in Rules 7430A and 7450A; and (3) delete the rule text under 
Rule 7470A, which lapsed in 2015.
    The Exchange's Rule 7000A Series imposes an obligation on Exchange 
members to record in electronic form and report to FINRA on a daily 
basis certain information with respect to orders originated, received, 
transmitted, modified, canceled, or executed by members in Nasdaq-
listed stocks. FINRA's Order Audit Trail System (``OATS'') captures 
this order information and integrates it with quote and transaction 
information to create a time-sequenced record of orders, quotes, and 
transactions. This information is used by FINRA staff to conduct 
surveillance and investigations of members for potential violation of 
Exchange rules, federal securities laws, and FINRA rules.
    The Exchange adopted the Rule 7000A Series to copy FINRA OATS 
rules, where appropriate. As a general principle, the Exchange 
endeavors to keep its rules corresponding to FINRA rules as closely 
worded and structured as possible to the FINRA rules on which they are 
based. In certain instances, such as FINRA Rule 7410(o)(2), which 
concerns an exception to the definition of a Reporting Member relating 
to members operating on equities floors, the Exchange has not copied 
those inapplicable FINRA rules. Generally, the Exchange seeks to keep 
the Rule 7000 Series consistent with the applicable portions FINRA Rule 
7040 Series. The proposed changes will harmonize Nasdaq rules with 
analogous FINRA rules, which have changed since the Exchange first 
adopted its rules.
First Change
    The Exchange is proposing to amend Rule 7410A(o)(1)(A) to harmonize 
the rule with FINRA Rule 7410(o)(1)(A). Rule 7410A(o) provides the 
definition of ``Reporting Member,'' which means a member that receives 
or originates an order and has an obligation to record and report 
information under Rules 7440A and 7450A. Rule 7410A(o)(1) provides an 
exception to the general definition if the member meets four 
conditions. The first condition the member must meet is that the member 
engages in a non-discretionary order routing process, pursuant to which 
it immediately routes, by electronic or other means, all of its orders 
to a single receiving Reporting Member. On May 12, 2014, FINRA amended 
FINRA Rule 7410(o)(1)(A) to allow a member to route its orders to two 
receiving Reporting Members, if two conditions were met.\3\ First, the 
orders are routed by the member to each receiving Reporting Member on a 
pre-determined schedule approved by FINRA. Second, the FINRA member's 
orders are routed to two receiving Reporting Members pursuant to the 
schedule for a time period not to exceed one year. The rule change 
permits FINRA members to continue to rely on the exception from the 
definition of Reporting Member if, for a limited time, the member 
routes orders to two different Reporting Members, provided the criteria 
are met. FINRA noted in adopting the change that the rule was intended 
to accommodate introducing firms that transition to a different 
clearing firm over time and, during the transition, route their orders 
two different clearing firms, both of which report the introducing 
firm's information to OATS

[[Page 19385]]

during the transition time.\4\ The Exchange believes that this 
additional limited exception is appropriate for its members, which 
likewise may encounter a transition to a clearing firm whereby it [sic] 
would no longer be eligible for the exception to the definition of 
Reporting Member. Accordingly, the Exchange is proposing to adopt the 
FINRA rule text under Rule 7410A(o)(1)(A)(ii).
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    \3\ See Securities Exchange Act Release No. 72191 (May 20, 
2014), 79 FR 30219 (May 27, 2014) (SR-FINRA-2014-024).
    \4\ Id. at 30220.
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Second Change
    The Exchange is also proposing to correct rule citations in Rules 
7430A and 7450A. Rule 7430A ``Synchronization of Member Business 
Clocks'' provides the requirements for synchronizing member business 
clocks, and states that Nasdaq members shall comply with FINRA Rule 
7430 as if such Rule were part of Nasdaq's rules. There is no FINRA 
Rule 7430, but rather the appropriate FINRA rule to cite to is FINRA 
Rule 4590 ``Synchronization of Member Business Clocks.'' Accordingly, 
the Exchange is correcting the erroneous citation in Rule 7430A.
    Rule 7450A ``Order Data Transmission Requirements'' provides the 
requirements for order data transmission, and states that, except as 
provided in paragraph (b), Nasdaq members and persons associated with a 
member shall comply with FINRA Rule 7450A as if such Rule were part of 
Nasdaq's rules. There is no FINRA Rule 7450A and FINRA Rule 7450 
``Order Data Transmission Requirements'' is the appropriate FINRA rule 
to cite. Accordingly, the Exchange is deleting the erroneous ``A'' from 
the citation.
Third Change
    The Exchange is proposing to delete the rule text under Rule 7470A 
in its entirety, which lapsed in 2015, and to hold the rule [sic] in 
reserve. Rule 7470A provided an exemption from the order recording and 
data transmission requirements of Rules 7440A and 7450A OATS rules 
applicable to manual orders. To qualify for the exemption, a member 
must have met the following criteria: (1) The member and current 
control affiliates and associated persons of the member have not been 
subject within the last five years to any final disciplinary action, 
and within the last ten years to any disciplinary action involving 
fraud; (2) the member has annual revenues of less than $2 million; (3) 
the member does not conduct any market making activities in Nasdaq 
Stock Market equity securities; (4) the member does not execute 
principal transactions with its customers (with limited exception for 
principal transactions executed pursuant to error corrections); and (5) 
the member does not conduct clearing or carrying activities for other 
firms. The exemption was limited to a maximum time of two years 
although a member was able to request an additional exemption prior to 
the expiration of a grant of existing exemptive relief. The exemptive 
authority provided by the rule permitted the Exchange to grant relief 
to members that meet certain criteria in situations where, for example, 
the reporting of order information would be unduly burdensome for the 
member or where temporary relief from the OATS Rules, in the form of 
additional time to achieve compliance, would permit the members to 
avoid unnecessary expense or hardship. The exemption has not been 
requested by any Nasdaq member to date and the Exchange does not 
believe that Nasdaq members are likely to need the exemption, since the 
vast majority of such members to which the rule applies are electronic 
proprietary trading firms that would not qualify for the exemption. 
Thus, the Exchange is proposing to eliminate the rule text under Rule 
7470A from its rule book, and to hold the rule [sic] in reserve.
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 harmonizing the Exchange's OATS rules with those of FINRA, on which 
they are based. Consequently, the proposed changes will conform 
Exchange Rules to changes made to corresponding FINRA rules, thus 
promoting application of consistent regulatory standards with respect 
to rules that FINRA enforces pursuant to its regulatory services 
agreement with the Exchange. With respect to the proposed amendment to 
Rule 7410A(o)(1)(A), the exemption will provide Exchange members the 
same flexibility to transition to a new clearing firm that FINRA 
members enjoy. The rule is intended to accommodate introducing firms 
that transition to a different clearing firm over time and, during the 
transition, route their orders two different clearing firms, both of 
which report the introducing firm's information to OATS during the 
transition time. With respect to the proposed amendment to Rule 7470A 
to eliminate the expired exemption from the rule book, the Exchange 
believes that it is consistent with the Act because the exemption has 
never been requested by a Nasdaq member. Moreover, the Exchange does 
not believe that the vast majority of its members would qualify for the 
exemption, since such most Nasdaq members that are subject to the rule 
conduct an electronic proprietary trading business and the exemption 
applies to manual orders. Adopting the amended rule text under Rules 
7410A will also align the Exchange rulebook with FINRA's, thereby 
eliminating complexity from FINRA's work under a regulatory services 
agreement with the Exchange. With respect to the technical corrections 
to Rules 7430A and 7450A, the Exchange believes that these changes are 
consistent with the Act because they will prevent investor confusion 
that may be caused by incorrect rule citations in the Rules.
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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 align the 
Exchange's rules with those of FINRA, which will assist it in its 
oversight work done pursuant to a regulatory services agreement, and 
makes technical corrections to the rules. Consequently, the Exchange 
does not believe that the proposed changes implicate competition at 
all.

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 19386]]

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-NASDAQ-2018-030 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-2018-030. 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-2018-030, and should be submitted 
on or before May 23, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-09260 Filed 5-1-18; 8:45 am]
 BILLING CODE 8011-01-P
19384 Federal Register / Vol. 83, No. 85 / Wednesday, May 2, 2018 / Notices

Commission and any person, other than I. Self-Regulatory Organization’s principle, the Exchange endeavors to
those that may be withheld from the Statement of the Terms of Substance of keep its rules corresponding to FINRA
public in accordance with the the Proposed Rule Change rules as closely worded and structured
provisions of 5 U.S.C. 552, will be The Exchange proposes to amend as possible to the FINRA rules on which
available for website viewing and certain rules of the Rule 7000A Series they are based. In certain instances,
printing in the Commission’s Public concerning the Order Audit Trail such as FINRA Rule 7410(o)(2), which
Reference Room, 100 F Street NE, System to make conforming and concerns an exception to the definition
Washington, DC 20549 on official technical changes. of a Reporting Member relating to
business days between the hours of The text of the proposed rule change members operating on equities floors,
10:00 a.m. and 3:00 p.m. Copies of such is available on the Exchange’s website at the Exchange has not copied those
filing also will be available for http://nasdaq.cchwallstreet.com, at the inapplicable FINRA rules. Generally,
inspection and copying at the principal principal office of the Exchange, and at the Exchange seeks to keep the Rule
office of the Exchange. All comments the Commission’s Public Reference 7000 Series consistent with the
received will be posted without change. Room. applicable portions FINRA Rule 7040
Persons submitting comments are Series. The proposed changes will
II. Self-Regulatory Organization’s harmonize Nasdaq rules with analogous
cautioned that we do not redact or edit Statement of the Purpose of, and
personal identifying information from FINRA rules, which have changed since
Statutory Basis for, the Proposed Rule the Exchange first adopted its rules.
comment submissions. You should Change
submit only information that you wish First Change
to make available publicly. All In its filing with the Commission, the
submissions should refer to File Exchange included statements The Exchange is proposing to amend
Number SR–NYSE–2018–14, and concerning the purpose of and basis for Rule 7410A(o)(1)(A) to harmonize the
should be submitted on or before May the proposed rule change and discussed rule with FINRA Rule 7410(o)(1)(A).
23, 2018. any comments it received on the Rule 7410A(o) provides the definition of
proposed rule change. The text of these ‘‘Reporting Member,’’ which means a
For the Commission, by the Division of statements may be examined at the
Trading and Markets, pursuant to delegated member that receives or originates an
places specified in Item IV below. The order and has an obligation to record
authority.15 Exchange has prepared summaries, set and report information under Rules
Eduardo A. Aleman, forth in sections A, B, and C below, of 7440A and 7450A. Rule 7410A(o)(1)
Assistant Secretary. the most significant aspects of such provides an exception to the general
[FR Doc. 2018–09262 Filed 5–1–18; 8:45 am] statements. definition if the member meets four
BILLING CODE 8011–01–P A. Self-Regulatory Organization’s conditions. The first condition the
Statement of the Purpose of, and member must meet is that the member
Statutory Basis for, the Proposed Rule engages in a non-discretionary order
SECURITIES AND EXCHANGE Change routing process, pursuant to which it
COMMISSION immediately routes, by electronic or
1. Purpose
other means, all of its orders to a single
[Release No. 34–83115; File No. SR– The Exchange is proposing to make receiving Reporting Member. On May
NASDAQ–2018–030] the following three changes to the Rule 12, 2014, FINRA amended FINRA Rule
7000A Order Audit Trail Series: (1) 7410(o)(1)(A) to allow a member to
Self-Regulatory Organizations; The Amend Rule 7410A(o)(1)(A) to route its orders to two receiving
Nasdaq Stock Market LLC; Notice of harmonize the rule with FINRA Rule Reporting Members, if two conditions
Filing and Immediate Effectiveness of 7410(o)(1)(A); (2) correct rule citations were met.3 First, the orders are routed
Proposed Rule Change To Amend in Rules 7430A and 7450A; and (3) by the member to each receiving
Certain Rules of the Rule 7000A Series delete the rule text under Rule 7470A, Reporting Member on a pre-determined
To Make Conforming and Technical which lapsed in 2015. schedule approved by FINRA. Second,
Changes The Exchange’s Rule 7000A Series the FINRA member’s orders are routed
imposes an obligation on Exchange to two receiving Reporting Members
members to record in electronic form pursuant to the schedule for a time
DATES: April 26, 2018. and report to FINRA on a daily basis period not to exceed one year. The rule
Pursuant to Section 19(b)(1) of the certain information with respect to change permits FINRA members to
Securities Exchange Act of 1934 orders originated, received, transmitted, continue to rely on the exception from
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 modified, canceled, or executed by the definition of Reporting Member if,
notice is hereby given that on April 17, members in Nasdaq-listed stocks. for a limited time, the member routes
2018, The Nasdaq Stock Market LLC FINRA’s Order Audit Trail System orders to two different Reporting
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the (‘‘OATS’’) captures this order Members, provided the criteria are met.
Securities and Exchange Commission information and integrates it with quote FINRA noted in adopting the change
(‘‘Commission’’) the proposed rule and transaction information to create a that the rule was intended to
change as described in Items I, II, and time-sequenced record of orders, quotes, accommodate introducing firms that
III below, which Items have been and transactions. This information is transition to a different clearing firm
prepared by the Exchange. The used by FINRA staff to conduct over time and, during the transition,
daltland on DSKBBV9HB2PROD with NOTICES

Commission is publishing this notice to surveillance and investigations of route their orders two different clearing
solicit comments on the proposed rule members for potential violation of firms, both of which report the
change from interested persons. Exchange rules, federal securities laws, introducing firm’s information to OATS
and FINRA rules.
15 17 CFR 200.30–3(a)(12). The Exchange adopted the Rule 3 See Securities Exchange Act Release No. 72191
1 15 U.S.C. 78s(b)(1). 7000A Series to copy FINRA OATS (May 20, 2014), 79 FR 30219 (May 27, 2014) (SR–
2 17 CFR 240.19b–4. rules, where appropriate. As a general FINRA–2014–024).

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during the transition time.4 The limited exception for principal information to OATS during the
Exchange believes that this additional transactions executed pursuant to error transition time. With respect to the
limited exception is appropriate for its corrections); and (5) the member does proposed amendment to Rule 7470A to
members, which likewise may not conduct clearing or carrying eliminate the expired exemption from
encounter a transition to a clearing firm activities for other firms. The exemption the rule book, the Exchange believes
whereby it [sic] would no longer be was limited to a maximum time of two that it is consistent with the Act because
eligible for the exception to the years although a member was able to the exemption has never been requested
definition of Reporting Member. request an additional exemption prior to by a Nasdaq member. Moreover, the
Accordingly, the Exchange is proposing the expiration of a grant of existing Exchange does not believe that the vast
to adopt the FINRA rule text under Rule exemptive relief. The exemptive majority of its members would qualify
7410A(o)(1)(A)(ii). authority provided by the rule permitted for the exemption, since such most
the Exchange to grant relief to members Nasdaq members that are subject to the
Second Change
that meet certain criteria in situations rule conduct an electronic proprietary
The Exchange is also proposing to where, for example, the reporting of trading business and the exemption
correct rule citations in Rules 7430A order information would be unduly applies to manual orders. Adopting the
and 7450A. Rule 7430A burdensome for the member or where amended rule text under Rules 7410A
‘‘Synchronization of Member Business temporary relief from the OATS Rules, will also align the Exchange rulebook
Clocks’’ provides the requirements for in the form of additional time to achieve with FINRA’s, thereby eliminating
synchronizing member business clocks, compliance, would permit the members complexity from FINRA’s work under a
and states that Nasdaq members shall to avoid unnecessary expense or
comply with FINRA Rule 7430 as if regulatory services agreement with the
hardship. The exemption has not been Exchange. With respect to the technical
such Rule were part of Nasdaq’s rules. requested by any Nasdaq member to
There is no FINRA Rule 7430, but rather corrections to Rules 7430A and 7450A,
date and the Exchange does not believe the Exchange believes that these
the appropriate FINRA rule to cite to is that Nasdaq members are likely to need
FINRA Rule 4590 ‘‘Synchronization of changes are consistent with the Act
the exemption, since the vast majority of because they will prevent investor
Member Business Clocks.’’ Accordingly, such members to which the rule applies
the Exchange is correcting the erroneous confusion that may be caused by
are electronic proprietary trading firms
citation in Rule 7430A. incorrect rule citations in the Rules.
that would not qualify for the
Rule 7450A ‘‘Order Data exemption. Thus, the Exchange is B. Self-Regulatory Organization’s
Transmission Requirements’’ provides proposing to eliminate the rule text Statement on Burden on Competition
the requirements for order data under Rule 7470A from its rule book,
transmission, and states that, except as and to hold the rule [sic] in reserve. The Exchange does not believe that
provided in paragraph (b), Nasdaq the proposed rule change will impose
members and persons associated with a 2. Statutory Basis any burden on competition not
member shall comply with FINRA Rule The Exchange believes that its necessary or appropriate in furtherance
7450A as if such Rule were part of proposal is consistent with Section 6(b) of the purposes of the Act. The
Nasdaq’s rules. There is no FINRA Rule of the Act,5 in general, and furthers the proposed changes align the Exchange’s
7450A and FINRA Rule 7450 ‘‘Order objectives of Section 6(b)(5) of the Act,6 rules with those of FINRA, which will
Data Transmission Requirements’’ is the in particular, in that it is designed to assist it in its oversight work done
appropriate FINRA rule to cite. promote just and equitable principles of pursuant to a regulatory services
Accordingly, the Exchange is deleting trade, to remove impediments to and agreement, and makes technical
the erroneous ‘‘A’’ from the citation. perfect the mechanism of a free and corrections to the rules. Consequently,
open market and a national market the Exchange does not believe that the
Third Change
system, and, in general to protect proposed changes implicate competition
The Exchange is proposing to delete investors and the public interest, by at all.
the rule text under Rule 7470A in its harmonizing the Exchange’s OATS rules
entirety, which lapsed in 2015, and to with those of FINRA, on which they are C. Self-Regulatory Organization’s
hold the rule [sic] in reserve. Rule based. Consequently, the proposed Statement on Comments on the
7470A provided an exemption from the changes will conform Exchange Rules to Proposed Rule Change Received From
order recording and data transmission changes made to corresponding FINRA Members, Participants, or Others
requirements of Rules 7440A and 7450A rules, thus promoting application of No written comments were either
OATS rules applicable to manual consistent regulatory standards with solicited or received.
orders. To qualify for the exemption, a respect to rules that FINRA enforces
member must have met the following pursuant to its regulatory services III. Date of Effectiveness of the
criteria: (1) The member and current agreement with the Exchange. With Proposed Rule Change and Timing for
control affiliates and associated persons respect to the proposed amendment to Commission Action
of the member have not been subject Rule 7410A(o)(1)(A), the exemption will
within the last five years to any final provide Exchange members the same Because the foregoing proposed rule
disciplinary action, and within the last flexibility to transition to a new clearing change does not: (i) Significantly affect
ten years to any disciplinary action firm that FINRA members enjoy. The the protection of investors or the public
involving fraud; (2) the member has rule is intended to accommodate interest; (ii) impose any significant
annual revenues of less than $2 million; introducing firms that transition to a burden on competition; and (iii) become
daltland on DSKBBV9HB2PROD with NOTICES

(3) the member does not conduct any different clearing firm over time and, operative for 30 days from the date on
market making activities in Nasdaq during the transition, route their orders which it was filed, or such shorter time
Stock Market equity securities; (4) the two different clearing firms, both of as the Commission may designate, it has
member does not execute principal which report the introducing firm’s become effective pursuant to Section
transactions with its customers (with 19(b)(3)(A)(iii) of the Act 7 and
5 15 U.S.C. 78f(b).
4 Id. at 30220. 6 15 U.S.C. 78f(b)(5). 7 15 U.S.C. 78s(b)(3)(A)(iii).

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19386 Federal Register / Vol. 83, No. 85 / Wednesday, May 2, 2018 / Notices

subparagraph (f)(6) of Rule 19b–4 Reference Room, 100 F Street NE, unless it displays a currently valid OMB
thereunder.8 Washington, DC 20549 on official control number. No person shall be
At any time within 60 days of the business days between the hours of subject to any penalty for failing to
filing of the proposed rule change, the 10:00 a.m. and 3:00 p.m. Copies of the comply with a collection of information
Commission summarily may filing also will be available for subject to the PRA that does not display
temporarily suspend such rule change if inspection and copying at the principal a valid Office of Management and
it appears to the Commission that such office of the Exchange. All comments Budget (OMB) control number.
action is: (i) Necessary or appropriate in received will be posted without change. Background documentation for this
the public interest; (ii) for the protection Persons submitting comments are information collection may be viewed at
of investors; or (iii) otherwise in cautioned that we do not redact or edit the following website: www.reginfo.gov.
furtherance of the purposes of the Act. personal identifying information from Comments should be directed to: (i)
If the Commission takes such action, the comment submissions. You should Desk Officer for the Securities and
Commission shall institute proceedings submit only information that you wish Exchange Commission, Office of
to determine whether the proposed rule to make available publicly. All Information and Regulatory Affairs,
should be approved or disapproved. submissions should refer to File Office of Management and Budget,
Number SR–NASDAQ–2018–030, and Room 10102, New Executive Office
IV. Solicitation of Comments should be submitted on or before May Building, Washington, DC 20503, or by
Interested persons are invited to 23, 2018. sending an email to: Shagufta_
submit written data, views, and For the Commission, by the Division of Ahmed@omb.eop.gov; and (ii) Pamela
arguments concerning the foregoing, Trading and Markets, pursuant to delegated Dyson, Director/Chief Information
including whether the proposed rule authority.9 Officer, Securities and Exchange
change is consistent with the Act. Eduardo A. Aleman, Commission, c/o Remi Pavlik-Simon,
Comments may be submitted by any of Assistant Secretary. 100 F St NE, Washington, DC 20549 or
the following methods: [FR Doc. 2018–09260 Filed 5–1–18; 8:45 am] send an email to: PRA_Mailbox@
Electronic Comments BILLING CODE 8011–01–P sec.gov. Comments must be submitted to
OMB within 30 days of this notice.
• Use the Commission’s internet
Dated: April 26, 2018.
comment form (http://www.sec.gov/ SECURITIES AND EXCHANGE
rules/sro.shtml); or Eduardo A. Aleman,
COMMISSION
• Send an email to rule-comments@ Assistant Secretary.
sec.gov. Please include File Number SR– Submission for OMB Review; [FR Doc. 2018–09270 Filed 5–1–18; 8:45 am]
NASDAQ–2018–030 on the subject line. Comment Request BILLING CODE 8011–01–P

Paper Comments Upon Written Request, Copies Available
• Send paper comments in triplicate From: Securities and Exchange SECURITIES AND EXCHANGE
to Secretary, Securities and Exchange Commission, Office of FOIA Services, COMMISSION
Commission, 100 F Street NE, 100 F Street NE, Washington, DC
Washington, DC 20549–1090. 20549–2736 Submission for OMB Review;
All submissions should refer to File Extension: Comment Request
Number SR–NASDAQ–2018–030. This Rule 17g–10 Form ABS Due Diligence—15; Upon Written Request, Copies Available
file number should be included on the SEC File No.270–597, OMB Control No.
3235–0694 From: Securities and Exchange
subject line if email is used. To help the Commission, Office of FOIA Services,
Commission process and review your Notice is hereby given that pursuant 100 F Street NE, Washington, DC
comments more efficiently, please use to the Paperwork Reduction Act of 1995 20549–2736
only one method. The Commission will (44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission Extension:
post all comments on the Commission’s Rule 12f–1, SEC File No. 270–139, OMB
internet website (http://www.sec.gov/ (‘‘Commission’’) has submitted to the Control No. 3235–0128
rules/sro.shtml). Copies of the Office of Management and Budget
submission, all subsequent (‘‘OMB’’) a request for approval of Notice is hereby given that, pursuant
amendments, all written statements extension of the previously approved to the Paperwork Reduction Act of 1995
with respect to the proposed rule collection of information provided for in (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
change that are filed with the Rule 17g–10 and Form ABS Due Securities and Exchange Commission
Commission, and all written Diligence—15E under the Securities (‘‘Commission’’) has submitted to the
communications relating to the Exchange Act of 1934 (15 U.S.C. 78a et Office of Management and Budget
proposed rule change between the seq.).1 (‘‘OMB’’) a request for approval of
Commission and any person, other than Rule 17g–10 contains certain extension of the previously approved
those that may be withheld from the certification requirements for third- collection of information provided for in
public in accordance with the party due diligence service providers Rule 12f–1 (17 CFR 240.12f–1) under
provisions of 5 U.S.C. 552, will be that are employed by an NRSRO, an the Securities Exchange Act of 1934
available for website viewing and issuer, or an underwriter, which must (‘‘Act’’) (15 U.S.C. 78a et seq.).
printing in the Commission’s Public be made on Form ABS Due Diligence— Rule 12f–1 (‘‘Rule’’), originally
15E. The Commission estimates that the adopted in 1979 pursuant to Sections
daltland on DSKBBV9HB2PROD with NOTICES

8 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– total burden for respondents to comply 12(f) and 23(a) of the Act, and as further
4(f)(6) requires a self-regulatory organization to give with Rule 17g–10 is 238 hours. modified in 1995 and 2005, sets forth
the Commission written notice of its intent to file The Commission may not conduct or the requirements for filing an exchange
the proposed rule change at least five business days application to reinstate unlisted trading
prior to the date of filing of the proposed rule
sponsor a collection of information
change, or such shorter time as designated by the
privileges (‘‘UTP’’) in a security in
Commission. The Exchange has satisfied this 9 17 CFR 200.30–3(a)(12). which UTP has been suspended by the
requirement. 1 See 17 CFR 240.17g–1 and 17 CFR 249b.300. Commission pursuant to Section

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Document Created: 2018-05-02 00:49:58
Document Modified: 2018-05-02 00:49:58
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
Dates		April 26, 2018.
FR Citation		83 FR 19384