83 FR 26125 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Intercontinental Exchange, Inc. Director Independence Policy
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 108 (June 5, 2018)
Federal Register Volume 83, Issue 108 (June 5, 2018)
| Page Range | 26125-26128 | |
| FR Document | 2018-11979 |
[Federal Register Volume 83, Number 108 (Tuesday, June 5, 2018)] [Notices] [Pages 26125-26128] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-11979] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83342; File No. SR-NYSE-2018-19] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Intercontinental Exchange, Inc. Director Independence Policy May 30, 2018. Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that, on May 22, 2018, New York Stock Exchange LLC (``NYSE'' or the ``Exchange'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory organization. The Commission is [[Page 26126]] publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C.78s(b)(1). \2\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend the Intercontinental Exchange, Inc. (``ICE'') director independence policy (``Independence Policy'') in connection with a transaction (``Transaction'') whereby Chicago Stock Exchange, Inc. (``CHX'') and its direct parent, CHX Holdings, Inc. (``CHX Holdings''), would become indirect subsidiaries of Intercontinental Exchange, Inc. (``ICE''), the ultimate parent of the Exchange. The proposed rule change is available on the Exchange's website at www.nyse.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 self-regulatory organization 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 those 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 parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend the Independence Policy in connection with the Transaction. CHX Holdings,\4\ ICE and Kondor Merger Sub, Inc. (``Merger Sub''), entered into a Merger Agreement dated April 4, 2018 (``Merger Agreement''). Merger Sub is a wholly-owned subsidiary of NYSE Group, Inc. (``NYSE Group''). Pursuant to the Merger Agreement, Merger Sub would merge with and into CHX Holdings, with CHX Holdings continuing as the surviving corporation (``Merger''). Upon the Merger, NYSE Group would hold all of the outstanding and issued shares of CHX Holdings, and CHX Holdings would continue to be the record and beneficial owner of all of the issued and outstanding shares of capital stock of CHX and the sole member of CHXBD, LLC (``CHXBD''), the Exchange's affiliated routing broker. --------------------------------------------------------------------------- \4\ CHX became a wholly-owned subsidiary of CHX Holdings pursuant to the Exchange's demutualization as approved by the Commission in February 2005. See Securities Exchange Act Release No. 51149 (February 8, 2005), 70 FR 7531 (February 14, 2005) (SR-CHX- 2004-26). --------------------------------------------------------------------------- NYSE Group owns all of the equity interest in the Exchange and its national securities exchange affiliates, NYSE Arca, Inc. (``NYSE Arca''), NYSE American LLC (``NYSE American'') and NYSE National, Inc. (``NYSE National''). In turn, NYSE Group is a wholly-owned subsidiary of NYSE Holdings LLC, which is wholly owned by Intercontinental Exchange Holdings, Inc. (``ICE Holdings''). ICE Holdings is wholly owned by ICE.\5\ --------------------------------------------------------------------------- \5\ ICE is a publicly traded company listed on the NYSE. --------------------------------------------------------------------------- Following the Transaction, CHX would continue to be registered as a national securities exchange and as a separate self-regulatory organization. As such, CHX would continue to have separate rules, membership rosters, and listings that would be distinct from the rules, membership rosters, and listings of the four registered national securities exchanges and self-regulatory organizations owned by NYSE Group, namely, the NYSE, NYSE American, NYSE Arca, and NYSE National (together, the ``NYSE Exchanges''). The proposed rule changes would become operative simultaneously with the Merger that effectuates the Transaction (``Closing''). Amendments to the Independence Policy The Independence Policy was adopted at the time that the Exchange was acquired by ICE \6\ and amended to reflect the NYSE Group acquisition of NYSE National.\7\ In connection with the Transaction, the Independence Policy would be amended to provide similar protections to CHX as are currently provided to the NYSE Exchanges by the policy, by making technical and conforming amendments.\8\ In addition, the Exchange proposes to remove or update obsolete references. --------------------------------------------------------------------------- \6\ See Securities Exchange Act Release No. 70210 (August 15, 2013), 78 FR 51758, 511764-511765 [sic] (August 21, 2013) (SR-NYSE- 2013-42; SR-NYSEMKT-2013-50; SR- NYSEArca-2013-62). At the time of the acquisition, ``ICE'' was called ``IntercontinentalExchange Group, Inc.'' See Securities Exchange Act Release No. 72158 (May 13, 2014), 79 FR 28784 (May 19, 2014) (SR-NYSE-2014-23). \7\ See Securities Exchange Act Releases No. 79901 (January 30, 2017), 82 FR 9251 (February 3, 2017) (SR-NYSE-2016-90; SR-NYSEArca- 2016-167; SR-NYSEMKT-2016-122), and 79902 (January 30, 2017), 82 FR 9258 (February 3, 2017) (SR-NSX-2016-16). \8\ The Exchange's affiliates NYSE American, NYSE Arca, and NYSE National have each submitted substantially the same proposed rule change to the Independence Policy as described herein. See SR- NYSEAmer-2018-17, SR-NYSEArca-2018-27, and SR-NYSENAT-2018-06. --------------------------------------------------------------------------- The proposed amendments are as follows:Under ``Independence Qualifications,'' references to the CHX would be added to categories (1)(b) and (c) that refer to ``members,'' as defined in section 3(a)(3)(A)(i), 3(a)(3)(A)(ii), 3(a)(3)(A)(iii) and 3(a)(3)(A)(iv) of the Exchange Act.\9\ References to the CHX would also be added to subsections (4) and (5) of the section. As CHX does not have terms equivalent to ``allied members'' or ``approved persons,'' the Exchange does not propose to add references to CHX to the clause following ``(collectively, `Members')'' in category (1)(b) or to category 2. --------------------------------------------------------------------------- \9\ See 15 U.S.C. 78c(a)(3)(a). --------------------------------------------------------------------------- The NYSE no longer has allied members.\10\ Accordingly, the Exchange proposes to delete the text ``as defined in paragraph (c) of Rule 2 of the New York Stock Exchange LLC and'' from category 1(b) of ``Independence Qualifications.'' --------------------------------------------------------------------------- \10\ See Securities Exchange Act Release No. 58549 (September 15, 2008), 73 FR 54444 (September 19, 2008) (SR-NYSE-2008-80) (notice of filing and immediate effectiveness of proposed rule change and Amendment No. 1 thereto conforming certain NYSE rules to changes to NYSE incorporated rules recently filed by the Financial Industry Regulatory Authority, Inc.). --------------------------------------------------------------------------- NYSE MKT LLC changed its name to NYSE American LLC.\11\ Under ``Independence Qualifications'' and ``Member Organizations,'' references to NYSE MKT LLC would be updated to reflect its name change. --------------------------------------------------------------------------- \11\ See Securities Exchange Act Release No. 80283 (March 21, 2017), 82 FR 15244 (March 27, 2017) (SR-NYSEMKT-2017-14). --------------------------------------------------------------------------- NYSE Arca Equities, Inc. merged with NYSE Arca, Inc., and therefore no longer exists.\12\ Accordingly, under ``Independence Qualifications,'' the text ``and Rule 1.1(c) of NYSE Arca Equities, Inc.'' in category 1(b) and references to NYSE Arca Equities, Inc. in categories 2 and 5 would be deleted. --------------------------------------------------------------------------- \12\ See Securities Exchange Act Release No. 81419 (August 17, 2017), 82 FR 40044 (August 23, 2017) (SR-NYSEArca-2017-40). --------------------------------------------------------------------------- Conforming changes would also be made to delete and replace connectors. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Exchange Act \13\ in general, and with Section 6(b)(1) \14\ in particular, in that it enables the Exchange to be so organized as to have the capacity to be able to carry out the purposes of the Exchange Act and to comply, and to enforce compliance by its exchange members and persons [[Page 26127]] associated with its exchange members, with the provisions of the Exchange Act, the rules and regulations thereunder, and the rules of the Exchange. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78f(b). \14\ 15 U.S.C. 78f(b)(1). --------------------------------------------------------------------------- The Exchange believes that amending the ICE Independence Policy would remove impediments to, and perfect the mechanism of a free and open market and a national market system and, in general, protect investors and the public interest by incorporating CHX in the text of the Independence Policy and by removing or updating obsolete or outdated references, thereby adding clarity and transparency to the Exchange Rules by removing any confusion that may result if the Transaction was not reflected in the Independence Policy, or if it retained obsolete or outdated references to NYSE allied members, NYSE MKT LLC or NYSE Arca Equities, Inc. The proposed changes would allow persons subject to the Exchange's jurisdiction, regulators, and investors to more easily navigate and understand the Independence Policy, contributing to the orderly operation of the Exchange, For similar reasons, the Exchange also believes that the proposed rule change is consistent with Section 6(b)(5) of the Act,\15\ in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, 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. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that the proposed amendments to the Independence Policy would remove impediments to and perfect the mechanism of a free and open market and a national market system by removing confusion that may result if the Transaction was not reflected in the Independence Policy, or if it retained obsolete or outdated references to NYSE allied members, NYSE MKT LLC or NYSE Arca Equities, Inc., thereby ensuring that market participants can more easily navigate, understand and comply with the Exchange rules. In this manner, the proposed change would ensure that persons subject to the Exchange's jurisdiction, regulators, and the investing public can more easily navigate and understand the Independence Policy. The Exchange further believes that eliminating obsolete or outdated references would not be inconsistent with the public interest and the protection of investors because investors will not be harmed and in fact would benefit from increased transparency, thereby reducing potential confusion. Removing such obsolete references will also further the goal of transparency and add clarity to the Exchange's rules. 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 that is not necessary or appropriate in furtherance of the purposes of the Exchange Act. The proposed rule change is not intended to address competitive issues but rather is concerned solely with updating the Independence Policy to reflect the Transaction and to remove obsolete references. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the 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) of the Act \16\ and Rule 19b-4(f)(6) thereunder.\17\ --------------------------------------------------------------------------- \16\ 15 U.S.C. 78s(b)(3)(A). \17\ 17 CFR 240.19b-4(f)(6). Rule 19b-4(f)(6)(iii) requires the Exchange to provide the Commission with written notice of its intent to file the proposed rule change, along with a brief description and the 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 fulfilled this requirement. --------------------------------------------------------------------------- A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the Act \18\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \19\ 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 asked the Commission to waive the 30-day operative delay to allow the Exchange to immediately update the Independence Policy to reflect the Transaction and to remove obsolete references. The Commission does not believe that any new or novel issues are raised by the proposal. For these reasons, the Commission believes that the waiver of the operative delay is consistent with the protection of investors and the public interest. Therefore, the Commission hereby waives the 30-day operative delay and designates the proposal operative upon filing.\20\ --------------------------------------------------------------------------- \18\ 17 CFR 240.19b-4(f)(6). \19\ 17 CFR 240.19b-4(f)(6)(iii). \20\ 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). --------------------------------------------------------------------------- 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 necessary or appropriate in the public interest, for the protection of investors, or 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 change 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 rule-comments@sec.gov. Please include File Number SR-NYSE-2018-19 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090. All submissions should refer to File Number SR-NYSE-2018-19. 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 [[Page 26128]] 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-NYSE-2018-19 and should be submitted on or before June 26, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\21\ --------------------------------------------------------------------------- \21\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-11979 Filed 6-4-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 108 / Tuesday, June 5, 2018 / Notices 26125
current proposal for options on SPY. 15 III. Date of Effectiveness of the submission, all subsequent
The Exchange also notes that SPY is Proposed Rule Change and Timing for amendments, all written statements
more liquid than QQQ.16 Commission Action with respect to the proposed rule
Lastly, the Commission expressed the Because the foregoing proposed rule change that are filed with the
belief that implementing higher position change does not: (i) Significantly affect Commission, and all written
and exercise limits may bring additional the protection of investors or the public communications relating to the
depth and liquidity without increasing interest; (ii) impose any significant proposed rule change between the
concerns regarding intermarket burden on competition; and (iii) become Commission and any person, other than
manipulation or disruption of the operative for 30 days after the date of those that may be withheld from the
options or the underlying securities.17 the filing, or such shorter time as the public in accordance with the
The Exchange’s existing surveillance Commission may designate, it has provisions of 5 U.S.C. 552, will be
and reporting safeguards are designed to become effective pursuant to 19(b)(3)(A) available for website viewing and
deter and detect possible manipulative of the Act 20 and Rule 19b–4(f)(6) 21 printing in the Commission’s Public
behavior which might arise from Reference Room, 100 F Street NE,
thereunder.
increasing position and exercise limits At any time within 60 days of the Washington, DC 20549, on official
(increased as compared to the 900,000 filing of the proposed rule change, the business days between the hours of
limit in place prior to the SPY Pilot Commission summarily may 10:00 a.m. and 3:00 p.m. Copies of the
Program).18 temporarily suspend such rule change if filing also will be available for
it appears to the Commission that such inspection and copying at the principal
B. Self-Regulatory Organization’s office of the Exchange. All comments
action is necessary or appropriate in the
Statement on Burden on Competition received will be posted without change.
public interest, for the protection of
Persons submitting comments are
MIAX Options does not believe that investors, or otherwise in furtherance of
cautioned that we do not redact or edit
the proposed rule change will impose the purposes of the Act. If the
personal identifying information from
any burden on competition that is not Commission takes such action, the
comment submissions. You should
necessary or appropriate in furtherance Commission shall institute proceedings
submit only information that you wish
of the purposes of the Act. The to determine whether the proposed rule
to make available publicly. All
Exchange believes the entire proposal is should be approved or disapproved.
submissions should refer to File
consistent with Section (6)(b)(8) of the IV. Solicitation of Comments Number SR–MIAX–2018–11 and should
Act 19 in that it does not impose any be submitted on or before June 26, 2018.
burden on competition that is not Interested persons are invited to
necessary or appropriate in furtherance submit written data, views, and For the Commission, by the Division of
arguments concerning the foregoing, Trading and Markets, pursuant to delegated
of the purposes of the Act. On the authority.22
contrary, the Exchange believes the including whether the proposed rule
change is consistent with the Act. Eduardo A. Aleman,
proposal promotes competition because
Comments may be submitted by any of Assistant Secretary.
it will enable the option exchanges to
attract additional order flow from the the following methods: [FR Doc. 2018–11985 Filed 6–4–18; 8:45 am]
over-the-counter market, who in turn BILLING CODE 8011–01–P
Electronic Comments
compete for those orders. The Exchange
• Use the Commission’s internet
believes that the proposed rule change
comment form (http://www.sec.gov/ SECURITIES AND EXCHANGE
will result in continued opportunities to
rules/sro.shtml); or COMMISSION
achieve the investment and trading • Send an email to rule-comments@
objectives of market participants seeking sec.gov. Please include File Number SR–
[Release No. 34–83342; File No. SR–NYSE–
efficient trading and hedging vehicles, 2018–19]
MIAX–2018–11 on the subject line.
to the benefit of investors, market
participants, and the marketplace in Paper Comments Self-Regulatory Organizations; New
general. MIAX Options believes this York Stock Exchange LLC; Notice of
• Send paper comments in triplicate Filing and Immediate Effectiveness of
proposed rule change is necessary to to Brent J. Fields, Secretary, Securities
permit fair competition among the Proposed Rule Change To Amend the
and Exchange Commission, 100 F Street Intercontinental Exchange, Inc.
options exchanges and to establish NE, Washington, DC 20549–1090.
uniform position limits for additional Director Independence Policy
All submissions should refer to File
multiply listed option classes. Number SR–MIAX–2018–11. This file May 30, 2018.
Furthermore, MIAX Options believes number should be included on the Pursuant to Section 19(b)(1) 1 of the
that the other options exchanges will subject line if email is used. To help the Securities Exchange Act of 1934 (the
file similar proposals with the Commission process and review your ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
Commission. comments more efficiently, please use notice is hereby given that, on May 22,
C. Self-Regulatory Organization’s only one method. The Commission will 2018, New York Stock Exchange LLC
Statement on Comments on the post all comments on the Commission’s (‘‘NYSE’’ or the ‘‘Exchange’’) filed with
Proposed Rule Change Received From internet website (http://www.sec.gov/ the Securities and Exchange
Members, Participants, or Others rules/sro.shtml). Copies of the Commission (the ‘‘Commission’’) the
proposed rule change as described in
Written comments were neither Items I and II below, which Items have
amozie on DSK3GDR082PROD with NOTICES1
20 15 U.S.C. 78s(b)(3)(A).
solicited nor received. 21 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– been prepared by the self-regulatory
4(f)(6) requires a self-regulatory organization to give organization. The Commission is
15 Id. the Commission written notice of its intent to file
16 See
the proposed rule change at least five business days
supra note 10. prior to the date of filing of the proposed rule
22 17 CFR 200.30–3(a)(12).
17 See supra note 9. 1 15 U.S.C.78s(b)(1).
change, or such shorter time as designated by the
18 See supra note 7. 2 15 U.S.C. 78a.
Commission. The Exchange has satisfied this
19 15 U.S.C. 78f(b)(8). requirement. 3 17 CFR 240.19b–4.
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publishing this notice to solicit beneficial owner of all of the issued and the Exchange proposes to remove or
comments on the proposed rule change outstanding shares of capital stock of update obsolete references.
from interested persons. CHX and the sole member of CHXBD, The proposed amendments are as
LLC (‘‘CHXBD’’), the Exchange’s follows:
I. Self-Regulatory Organization’s • Under ‘‘Independence
affiliated routing broker.
Statement of the Terms of Substance of NYSE Group owns all of the equity Qualifications,’’ references to the CHX
the Proposed Rule Change interest in the Exchange and its national would be added to categories (1)(b) and
The Exchange proposes to amend the securities exchange affiliates, NYSE (c) that refer to ‘‘members,’’ as defined
Intercontinental Exchange, Inc. (‘‘ICE’’) Arca, Inc. (‘‘NYSE Arca’’), NYSE in section 3(a)(3)(A)(i), 3(a)(3)(A)(ii),
director independence policy American LLC (‘‘NYSE American’’) and 3(a)(3)(A)(iii) and 3(a)(3)(A)(iv) of the
(‘‘Independence Policy’’) in connection NYSE National, Inc. (‘‘NYSE National’’). Exchange Act.9 References to the CHX
with a transaction (‘‘Transaction’’) In turn, NYSE Group is a wholly-owned would also be added to subsections (4)
whereby Chicago Stock Exchange, Inc. subsidiary of NYSE Holdings LLC, and (5) of the section. As CHX does not
(‘‘CHX’’) and its direct parent, CHX which is wholly owned by have terms equivalent to ‘‘allied
Holdings, Inc. (‘‘CHX Holdings’’), would Intercontinental Exchange Holdings, members’’ or ‘‘approved persons,’’ the
become indirect subsidiaries of Inc. (‘‘ICE Holdings’’). ICE Holdings is Exchange does not propose to add
Intercontinental Exchange, Inc. (‘‘ICE’’), wholly owned by ICE.5 references to CHX to the clause
the ultimate parent of the Exchange. The Following the Transaction, CHX following ‘‘(collectively, ‘Members’)’’ in
proposed rule change is available on the would continue to be registered as a category (1)(b) or to category 2.
Exchange’s website at www.nyse.com, at national securities exchange and as a • The NYSE no longer has allied
the principal office of the Exchange, and separate self-regulatory organization. As members.10 Accordingly, the Exchange
at the Commission’s Public Reference such, CHX would continue to have proposes to delete the text ‘‘as defined
Room. separate rules, membership rosters, and in paragraph (c) of Rule 2 of the New
listings that would be distinct from the York Stock Exchange LLC and’’ from
II. Self-Regulatory Organization’s
rules, membership rosters, and listings category 1(b) of ‘‘Independence
Statement of the Purpose of, and
of the four registered national securities Qualifications.’’
Statutory Basis for, the Proposed Rule • NYSE MKT LLC changed its name
Change exchanges and self-regulatory
organizations owned by NYSE Group, to NYSE American LLC.11 Under
In its filing with the Commission, the namely, the NYSE, NYSE American, ‘‘Independence Qualifications’’ and
self-regulatory organization included NYSE Arca, and NYSE National ‘‘Member Organizations,’’ references to
statements concerning the purpose of, (together, the ‘‘NYSE Exchanges’’). NYSE MKT LLC would be updated to
and basis for, the proposed rule change The proposed rule changes would reflect its name change.
and discussed any comments it received become operative simultaneously with • NYSE Arca Equities, Inc. merged
on the proposed rule change. The text the Merger that effectuates the with NYSE Arca, Inc., and therefore no
of those statements may be examined at Transaction (‘‘Closing’’). longer exists.12 Accordingly, under
the places specified in Item IV below. ‘‘Independence Qualifications,’’ the text
The Exchange has prepared summaries, Amendments to the Independence ‘‘and Rule 1.1(c) of NYSE Arca Equities,
set forth in sections A, B, and C below, Policy Inc.’’ in category 1(b) and references to
of the most significant parts of such The Independence Policy was NYSE Arca Equities, Inc. in categories 2
statements. adopted at the time that the Exchange and 5 would be deleted.
was acquired by ICE 6 and amended to Conforming changes would also be
A. Self-Regulatory Organization’s made to delete and replace connectors.
Statement of the Purpose of, and the reflect the NYSE Group acquisition of
Statutory Basis for, the Proposed Rule NYSE National.7 In connection with the 2. Statutory Basis
Change Transaction, the Independence Policy
would be amended to provide similar The Exchange believes that the
1. Purpose protections to CHX as are currently proposed rule change is consistent with
provided to the NYSE Exchanges by the Section 6(b) of the Exchange Act 13 in
The Exchange proposes to amend the general, and with Section 6(b)(1) 14 in
Independence Policy in connection with policy, by making technical and
conforming amendments.8 In addition, particular, in that it enables the
the Transaction. CHX Holdings,4 ICE
Exchange to be so organized as to have
and Kondor Merger Sub, Inc. (‘‘Merger
5 ICE is a publicly traded company listed on the the capacity to be able to carry out the
Sub’’), entered into a Merger Agreement
NYSE. purposes of the Exchange Act and to
dated April 4, 2018 (‘‘Merger 6 See Securities Exchange Act Release No. 70210 comply, and to enforce compliance by
Agreement’’). Merger Sub is a wholly- (August 15, 2013), 78 FR 51758, 511764–511765 its exchange members and persons
owned subsidiary of NYSE Group, Inc. [sic] (August 21, 2013) (SR–NYSE– 2013–42; SR–
(‘‘NYSE Group’’). Pursuant to the NYSEMKT–2013–50; SR– NYSEArca–2013–62). At 9 See
the time of the acquisition, ‘‘ICE’’ was called 15 U.S.C. 78c(a)(3)(a).
Merger Agreement, Merger Sub would 10 See Securities Exchange Act Release No. 58549
‘‘IntercontinentalExchange Group, Inc.’’ See
merge with and into CHX Holdings, Securities Exchange Act Release No. 72158 (May (September 15, 2008), 73 FR 54444 (September 19,
with CHX Holdings continuing as the 13, 2014), 79 FR 28784 (May 19, 2014) (SR–NYSE– 2008) (SR–NYSE–2008–80) (notice of filing and
surviving corporation (‘‘Merger’’). Upon 2014–23). immediate effectiveness of proposed rule change
and Amendment No. 1 thereto conforming certain
the Merger, NYSE Group would hold all 7 See Securities Exchange Act Releases No. 79901
NYSE rules to changes to NYSE incorporated rules
of the outstanding and issued shares of (January 30, 2017), 82 FR 9251 (February 3, 2017)
(SR–NYSE–2016–90; SR–NYSEArca–2016–167; SR– recently filed by the Financial Industry Regulatory
CHX Holdings, and CHX Holdings Authority, Inc.).
amozie on DSK3GDR082PROD with NOTICES1
NYSEMKT–2016–122), and 79902 (January 30,
would continue to be the record and 2017), 82 FR 9258 (February 3, 2017) (SR–NSX–
11 See Securities Exchange Act Release No. 80283
2016–16). (March 21, 2017), 82 FR 15244 (March 27, 2017)
4 CHX became a wholly-owned subsidiary of CHX 8 The Exchange’s affiliates NYSE American, (SR–NYSEMKT–2017–14).
12 See Securities Exchange Act Release No. 81419
Holdings pursuant to the Exchange’s NYSE Arca, and NYSE National have each
demutualization as approved by the Commission in submitted substantially the same proposed rule (August 17, 2017), 82 FR 40044 (August 23, 2017)
February 2005. See Securities Exchange Act Release change to the Independence Policy as described (SR–NYSEArca–2017–40).
13 15 U.S.C. 78f(b).
No. 51149 (February 8, 2005), 70 FR 7531 (February herein. See SR–NYSEAmer–2018–17, SR–
14, 2005) (SR–CHX–2004–26). NYSEArca–2018–27, and SR–NYSENAT–2018–06. 14 15 U.S.C. 78f(b)(1).
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proposed rule change between the I. Self-Regulatory Organization’s available for closing transactions only’’
Commission and any person, other than Statement of the Terms of Substance of to describe the data provided for each
those that may be withheld from the the Proposed Rule Change options series.
public in accordance with the The Exchange proposes to amend the The Exchange inadvertently excluded
provisions of 5 U.S.C. 552, will be descriptions of certain data feeds within this information when it originally filed
available for website viewing and Rule 1070 entitled ‘‘Data Feeds and the description for the TOPO and PHLX
printing in the Commission’s Public Trade Information.’’ The text of the Order feeds and now proposes to add a
Reference Room, 100 F Street NE, proposed rule change is available on the description of the options symbol
Washington, DC 20549 on official Exchange’s website at http:// directory to these feeds, similar to Phlx
business days between the hours of nasdaqphlx.cchwallstreet.com/, at the Depth of Market. The Exchange notes
principal office of the Exchange, and at that because the PHLX Orders feed
10:00 a.m. and 3:00 p.m. Copies of the
the Commission’s Public Reference contains complex order data, the
filing also will be available for
Room. Exchange is also noting that ‘‘leg
inspection and copying at the principal information on complex strategies’’
office of the Exchange. All comments II. Self-Regulatory Organization’s information is included in that feed for
received will be posted without change. Statement of the Purpose of, and the each option series. The Exchange
Persons submitting comments are Statutory Basis for, the Proposed Rule believes that adding this language will
cautioned that we do not redact or edit Change bring greater clarity to each of these
personal identifying information from feeds.
In its filing with the Commission, the
comment submissions. You should Exchange included statements The Exchange also proposes to
submit only information that you wish concerning the purpose of and basis for replace the word ‘‘Exchange’’ with
to make available publicly. All the proposed rule change and discussed ‘‘Phlx’’ in Rule 1070(a).
submissions should refer to File any comments it received on the 2. Statutory Basis
Number SR–NYSE–2018–19 and should proposed rule change. The text of these
be submitted on or before June 26, 2018. The Exchange believes that the
statements may be examined at the
proposed rule change is consistent with
For the Commission, by the Division of places specified in Item IV below. The
Section 6(b) of the Securities Exchange
Trading and Markets, pursuant to delegated Exchange has prepared summaries, set
Act of 1934,4 in general, and furthers the
authority.21 forth in sections A, B, and C below, of
objectives of Section 6(b)(5) of the Act,5
Eduardo A. Aleman, the most significant aspects of such
in particular, in that it is designed to
statements.
Assistant Secretary. promote just and equitable principles of
[FR Doc. 2018–11979 Filed 6–4–18; 8:45 am] A. Self-Regulatory Organization’s trade, to remove impediments to and
BILLING CODE 8011–01–P Statement of the Purpose of, and the perfect the mechanism for a free and
Statutory Basis for, the Proposed Rule open market and a national market
Change system, and, in general, to protect
SECURITIES AND EXCHANGE investors and the public interest, by
1. Purpose
COMMISSION providing greater transparency to the
The Exchange proposes to amend data feed information offered on Phlx.
Rule 1070 entitled ‘‘Data Feeds and The Exchange’s proposal to add more
[Release No. 34–83345; File No. SR–Phlx–
Trade Information’’ to: (i) Replace the detail concerning the options symbol
2018–43]
phrase ‘‘option symbol directory directory to the PHLX Depth of Market,
Self-Regulatory Organizations; Nasdaq information’’ on the PHLX Depth of TOPO and PHLX Orders data feeds will
Market Feed with a more specific bring greater transparency to the
PHLX LLC; Notice of Filing and
description of the options symbol Exchange’s Rules. The Exchange
Immediate Effectiveness of a Proposed
directory that was recently utilized in believes that the proposed rule change
Rule Change To Amend the ISE Rule 718(a); 3 and (ii) add a similar is consistent with the protection of
Descriptions of Certain Data Feeds description to the Top of PHLX Options investors and the public interest as it
Within Rule 1070 (‘‘TOPO’’) and PHLX Orders data feed provides information relating to the data
May 30, 2018. which have options symbol directories available on the Exchange for the benefit
as well. of its members within its Rules and
Pursuant to Section 19(b)(1) of the The Exchange proposes to amend the adds greater transparency to these
Securities Exchange Act of 1934 (the description of the PHLX Depth of offerings. Finally, the amendments seek
‘‘Act’’),1 and Rule 19b–4 thereunder,2 Market Feed by removing the words to add greater clarity to the data
notice is hereby given that on May 25, ‘‘option symbol directory information’’ offerings and conform the text of the
2018, Nasdaq PHLX LLC (‘‘Phlx’’ or from the description and adding the offerings across its Nasdaq affiliated
‘‘Exchange’’) filed with the Securities sentence, ‘‘The data provided for each markets.
and Exchange Commission options series includes the symbols
(‘‘Commission’’) the proposed rule (series and underlying security), put or B. Self-Regulatory Organization’s
change as described in Items I and II call indicator, expiration date, the strike Statement on Burden on Competition
below, which Items have been prepared price of the series, and whether the In accordance with Section 6(b)(8) of
by the Exchange. The Commission is option series is available for trading on the Act,6 the Exchange does not believe
Phlx and identifies if the series is that the proposed rule change will
amozie on DSK3GDR082PROD with NOTICES1
publishing this notice to solicit
comments on the proposed rule change impose any burden on intermarket or
from interested persons.
3 The data provided for each options series
intra-market competition that is not
includes the symbols (series and underlying necessary or appropriate in furtherance
security), put or call indicator, expiration date, the
21 17
strike price of the series, and whether the option
CFR 200.30–3(a)(12). 4 15 U.S.C. 78f(b).
series is available for trading on ISE and identifies
1 15 U.S.C. 78s(b)(1). 5 15
if the series is available for closing transactions U.S.C. 78f(b)(5).
2 17 CFR 240.19b–4. only. 6 15 U.S.C. 78f(b)(8).
VerDate Sep<11>2014 20:19 Jun 04, 2018 Jkt 241001 PO 00000 Frm 00134 Fmt 4703 Sfmt 4703 E:\FR\FM\05JNN1.SGM 05JNN1](https://thefederalregister.org/doc/83_FR_26233/page/4.svg)
Document Created: 2018-11-02 11:47:14
Document Modified: 2018-11-02 11:47:14
| 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 26125 |
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