83 FR 26715 - Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend and Reorganize Specific Chapters in the Schedule of Fees

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 111 (June 8, 2018)

[Federal Register Volume 83, Number 111 (Friday, June 8, 2018)]
[Notices]
[Pages 26715-26717]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-12320]



[[Page 26715]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83368; File No. SR-MRX-2018-17]


Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend and 
Reorganize Specific Chapters in the Schedule of Fees

June 4, 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 May 22, 2018, Nasdaq MRX, LLC (``MRX'' or ``Exchange'') filed with 
the Securities and Exchange Commission (``Commission'') the proposed 
rule change as described in Items I and II below, which Items have been 
prepared by the Exchange. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend and reorganize Chapters II, IV, V, 
and VI of the MRX Schedule of Fees.
    The text of the proposed rule change is available on the Exchange's 
website at http://nasdaqmrx.cchwallstreet.com/, at the principal office 
of the Exchange, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend Chapters II, IV, V, and VI of the 
MRX Schedule of Fees to: (i) Eliminate the Table of Contents; (ii) 
remove the INET Port Fees from Chapter II, Part B; (iii) adopt a new 
Chapter IV, entitled ``Ports and Other Services'' and amend and 
reorganize the current port fees; (iv) adopt a new Chapter V, entitled 
``Market Data'' and list all the market data feeds; and (v) renumber 
Chapter IV, entitled ``Connectivity Fees.'' Each change will be 
described in more detail below. The Exchange believes that the proposed 
amendments to the Schedule of Fees will provide more clarity as to the 
current fees. The Exchange notes that no fee changes are being 
introduced in this rule change. The Exchange is simply reorganizing its 
rules to conform to other Nasdaq affiliate markets by aligning the 
location and description of its rules on each market.
Table of Contents
    The Exchange proposes to eliminate the Table of Contents in the MRX 
Schedule of Fees. The Table of Contents are unnecessary. The website 
where the MRX rules are listed \3\ contains hyperlinks and a skeleton 
of the available rules within the site and enables market participants 
to view all rules in that section.
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    \3\ MRX rules are located at: http://nasdaqmrx.cchwallstreet.com/.
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INET Port Fees
    The Exchange currently lists all INET Port Fees within Chapter II, 
Part C. The Exchange proposes to delete this rule text and relocate it 
to proposed new Chapter IV and entitle that chapter as ``Ports and 
Other Services.'' The Exchange believes that this title more accurately 
describes the types of fees contained in this chapter. The Exchange 
proposes to restructure the port fees. First, the Exchange proposes to 
add language at the beginning of this new chapter to state, ``The below 
charges are assessed by MRX for connectivity to MRX.'' The Exchange 
believes that this sentence makes clear that the fees apply to MRX. The 
Exchange proposes to define a port as ``a logical connection or session 
that enables a market participant to send inbound messages and/or 
receive outbound messages from the Exchange using various communication 
protocols.'' The Exchange believes this definition will assist members 
in distinguishing ports from other offerings.
    The Exchange proposes to restructure the port fees into 4 
categories. The Exchange proposes to list order and quote protocols 
first, order and execution offerings next, followed by data ports and 
other ports as the last section. The Exchange proposes to list data 
offerings that are offered at no cost. The Exchange believes that 
aligning its offerings, where relevant, with other affiliated markets 
\4\ will provide more transparency as to the offerings for market 
participants.
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    \4\ The Exchange offers various services across its 6 affiliated 
options markets, MRX, Nasdaq PHLX LLC, Nasdaq BX, Inc., The Nasdaq 
Options Market LLC, Nasdaq GEMX, LLC, and Nasdaq ISE, LLC (``Nasdaq 
Affiliated Markets'').
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    The Exchange proposes to add a new section (i) and include the 
following introductory sentence, ``The following order and quote 
protocols are available on MRX.'' The Exchange proposes to list the 
order entry protocol port fees for FIX, SQF, SQF Purge Port and OTTO in 
this section. The fees are not being amended, the existing fees are 
being relocated into new section (i).
    The Exchange proposes to add a new section (ii) and include the 
following introductory sentence, ``The following order and execution 
information is available to Members.'' The Exchange intends to list 
other port or interface information into this section that are 
available to MRX Members. The Exchange is relocating the CTI and FIX 
DROP port fees. No changes are being made to those fees. The Exchange 
also proposes to list TradeInfo MRX Interface into this section. The 
Exchange has recently filed to establish this Interface within the MRX 
rules.\5\ The Exchange proposes to note this interface is available on 
MRX at no cost.
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    \5\ See SR-MRX-2018-16 (not yet published).
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    The Exchange proposes to add a new section (iii) and include the 
following language, ``The following data port fees apply in connection 
with data subscriptions pursuant to MRX Rules at Chapter V. These ports 
are available to non-MRX Members and MRX Members.'' Today, MRX does not 
assess a fee for these ports outlined in new section (iii). Similar to 
other Nasdaq Affiliated Markets the Exchange proposes to list all of 
the ports that Members and Non-Members obtain today at no cost. The 
Exchange believes that listing these ports in addition to the data 
subscriptions will bring more transparency to the Schedule of Fees.
    The Exchange proposes to add a new section (iv) entitled ``Other 
ports'' and relocate the Disaster Recovery Ports into this section. The 
Exchange also proposes to make clear that a Disaster Recovery Port is 
available for any port listed in proposed sections (i)-(iii).
Market Data
    The Exchange proposes to adopt a new Chapter V and entitle this 
section Market Data. Today, MRX does not assess fees for Market Data. 
The

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Exchange proposes to list its Market Data within Chapter V and note 
that there is no cost. The Exchange's Market Data fees are listed in 
Rule 718. The Exchange has listed these feeds within Chapter V to bring 
more transparency to the Schedule of Fees. Finally, the Exchange 
proposes to renumber Chapter IV, Connectivity Fees as new Chapter VI to 
account for the two new chapters proposed for the Rulebook.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Securities Exchange Act of 1934 (the 
``Act''),\6\ in general, and furthers the objectives of Section 6(b)(5) 
of the Act,\7\ in particular, in that it is designed to promote just 
and equitable principles of trade, to remove impediments to and perfect 
the mechanism for a free and open market and a national market system, 
and, in general, to protect investors and the public interest, by 
providing greater transparency as to the ports offered on MRX.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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    The Exchange's proposal to remove the Table of Contents, relocate 
the INET Fees, retitle and restructure those fees and adopt a new 
Market Data section at Chapter V are administrative. These changes are 
consistent with the protection of investor and the public interest 
because the amendments are intended to bring greater clarity to the 
Rulebook. The Exchange's proposal to reorganize the port fees into 
sections and include pricing for ports that are offered at no cost is 
also consistent with the protection of investor and the public interest 
because it will bring greater transparency to the Exchange's current 
offerings. The Exchange's proposal to display the various market data 
within newly proposed Chapter V will also bring greater transparency to 
the Exchange's current offerings.

B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act,\8\ the Exchange does 
not believe that the proposed rule change will impose any burden on 
intermarket or intra-market competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. The Exchange's 
proposal does not impose an undue burden on competition, rather the 
Exchange is seeking to provide greater transparency within its rules 
with respect to the various ports and market data offered on MRX.
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    \8\ 15 U.S.C. 78f(b)(8).
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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 \9\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\10\
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    \9\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \10\ 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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    A proposed rule change filed under Rule 19b-4(f)(6) \11\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, Rule 19b-4(f)(6)(iii) \12\ 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 so that the proposed 
rule change may become effective and operative immediately upon filing. 
The Exchange states that it believes the waiver will further the 
protection of investors and the public interest because it will provide 
greater transparency as to various ports available to market 
participants. The Exchange further states that the proposed rule change 
will bring greater clarity to the Schedule of Fees. The Commission 
believes that waiver of the 30-day 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 
proposed rule change as operative upon filing.\13\
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    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) otherwise in furtherance of the 
purposes of the Act. If the Commission takes such action, the 
Commission shall institute proceedings to determine whether the 
proposed rule should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-MRX-2018-17 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-MRX-2018-17. 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

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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-MRX-2018-17 and should be 
submitted on or before June 29, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-12320 Filed 6-7-18; 8:45 am]
 BILLING CODE 8011-01-P