83 FR 30804 - Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Relocate the Exchange's Rules Pertaining to Co-Location and Direct Connectivity
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 126 (June 29, 2018)
Federal Register Volume 83, Issue 126 (June 29, 2018)
| Page Range | 30804-30806 | |
| FR Document | 2018-13986 |
[Federal Register Volume 83, Number 126 (Friday, June 29, 2018)] [Notices] [Pages 30804-30806] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-13986] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83514; File No. SR-GEMX-2018-22) Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Relocate the Exchange's Rules Pertaining to Co-Location and Direct Connectivity June 25, 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 June 13, 2018, Nasdaq GEMX, LLC (``GEMX'' 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 [[Page 30805]] publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 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 relocate the Exchange's rules pertaining to co-location and direct connectivity, which are presently at Section IV, subsections D (co-location) and E-G (direct connectivity) of the Exchange's Schedule of Fees, to the Exchange's new rulebook shell, entitled ``General Rules,'' at new General 8 (``Connectivity''), Sections 1 and 2, respectively. The text of the proposed rule change is available on the Exchange's website at http://nasdaqgemx.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 relocate its rules governing co-location and direct connectivity services, which presently comprise Section IV, subsections D (co-location) and E-G (direct connectivity) of the Exchange's Schedule of Fees. The Exchange proposes to establish, within its new rulebook shell,\3\ a new General 8 heading, entitled ``Connectivity,'' to renumber Section IV, subsection D as Section 1 thereunder, and to renumber Section IV, subsections E, F, and G as Section 2(a), (b), and (c) thereunder.\4\ The Exchange also proposes to update internal cross-references in the renumbered Rules. --------------------------------------------------------------------------- \3\ Recently, the Exchange added a shell structure to its Rulebook with the purpose of improving efficiency and readability and to align its rules closer to those of its five sister exchanges: The Nasdaq Stock Exchange, LLC; Nasdaq BX, Inc.; Nasdaq PHLX, LLC; Nasdaq ISE, LLC; and Nasdaq MRX, LLC (together with GEMX, the ``Affiliated Exchanges''). See Securities Exchange Act Release No. 82171 (November 29, 2017), 82 FR 57516 (December 5, 2017) (SR-GEMX- 2017-54). \4\ The Exchange notes that as a consequence of this proposal, it will list its fees, in part, in Section IV of the Rulebook and, in part, in General 8. --------------------------------------------------------------------------- The Exchange considers it appropriate to relocate these Rules to better organize its Rulebook. The other Affiliated Exchanges intend to propose similar reorganizations of their co-location and direct connectivity rules so that these rules will be harmonized among all of the Affiliated Exchanges. The relocation of the co-location and direct connectivity rules is part of the Exchange's continued effort to promote efficiency and conformity of its processes with those of its Affiliated Exchanges. The Exchange believes that moving the co-location and direct connectivity rules to their new location will facilitate the use of the Rulebook by Members of the Exchange who are members of other Affiliated Exchanges. Moreover, the proposed changes are of a non-substantive nature and will not amend the relocated rules other than to update their numbers and make conforming cross-reference changes. 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 improving the way its Rulebook is organized, providing ease of reference in locating co-location and direct connectivity rules, and harmonizing the Exchange's Rules with those of the other Affiliated Exchanges. As previously stated, the proposed Rule relocation is non- substantive. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b). \6\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- 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 intermarket or intra-market competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed changes do not impose a burden on competition because, as previously stated, they (i) are of a non-substantive nature, (ii) are intended to harmonize the Exchange's rules with those of its Affiliated Exchanges, and (iii) are intended to organize the Rulebook in a way that it will ease the Members' navigation and reading of the rules across the Affiliated Exchanges. 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) of the Act \7\ and Rule 19b- 4(f)(6) thereunder.\8\ --------------------------------------------------------------------------- \7\ 15 U.S.C. 78s(b)(3)(A). \8\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) requires a self-regulatory organization to give the Commission written notice of its intent to file the proposed rule change, along with a brief description and 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 satisfied this requirement. --------------------------------------------------------------------------- A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the Act \9\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \10\ 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 requested that the Commission waive the 30-day operative delay so that the proposed rule change may become operative upon filing. The proposed rule change merely relocates the co-location and direct connectivity rules in the Exchange's Schedule of Fees and updates rule cross-references. Accordingly, the Commission believes that waiver of the 30-day operative delay is consistent with the protection of investors and the public interest and hereby waives the operative delay and designates the proposed rule change operative upon filing.\11\ --------------------------------------------------------------------------- \9\ 17 CFR 240.19b-4(f)(6). \10\ 17 CFR 240.19b-4(f)(6)(iii). \11\ For purposes only of waiving the 30-day operative delay, the Commission also has 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 [[Page 30806]] 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 CommentsUse 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-GEMX-2018-22 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-GEMX-2018-22. 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-GEMX-2018-22, and should be submitted on or before July 20, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\12\ --------------------------------------------------------------------------- \12\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman Assistant Secretary. [FR Doc. 2018-13986 Filed 6-28-18; 8:45 am] BILLING CODE 8011-01-P
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responsible; and to comply with the (C) Clearing Agency’s Statement on change, security-based swap
provisions of the Act and the rules and Comments on the Proposed Rule submission, or advance notice that are
regulations thereunder. ICC believes Change, Security-Based Swap filed with the Commission, and all
that the proposed rule changes are Submission, or Advance Notice written communications relating to the
consistent with the requirements of the Received From Members, Participants or proposed rule change, security-based
Act and the rules and regulations Others swap submission, or advance notice
thereunder applicable to ICC, in between the Commission and any
Written comments relating to the
particular, to Section 17A(b)(3)(F),7 person, other than those that may be
proposed rule change have not been
because ICC believes that the proposed withheld from the public in accordance
solicited or received. ICC will notify the
with the provisions of 5 U.S.C. 552, will
rule changes will promote the prompt Commission of any written comments
be available for website viewing and
and accurate clearance and settlement of received by ICC.
printing in the Commission’s Public
securities transactions, derivatives Reference Room, 100 F Street NE,
III. Date of Effectiveness of the
agreements, contracts, and transactions, Proposed Rule Change, Security-Based Washington, DC 20549, on official
and contribute to the safeguarding of Swap Submission, or Advance Notice business days between the hours of
securities and funds associated with and Timing for Commission Action 10:00 a.m. and 3:00 p.m. Copies of such
security-based swap transactions in filings will also be available for
ICC’s custody or control, or for which Within 45 days of the date of
inspection and copying at the principal
ICC is responsible. The proposed publication of this notice in the Federal
office of ICE Clear Credit and on ICE
changes to the ICC Rules are consistent Register or within such longer period
Clear Credit’s website at https://
with the current calculation of Mark-to- up to 90 days (i) as the Commission may
www.theice.com/clear-credit/regulation.
Market Margin and related operational designate if it finds such longer period
All comments received will be posted
to be appropriate and publishes its
practices and are intended to more without change. Persons submitting
reasons for so finding or (ii) as to which
clearly reflect the legal characterization comments are cautioned that we do not
the self-regulatory organization
of Mark-to-Market Margin payments as redact or edit personal identifying
consents, the Commission will: information from comment submissions.
settlement rather than collateral (A) By order approve or disapprove
payments. The proposed changes are You should submit only information
such proposed rule change, or that you wish to make available
designed to add certainty to ICC’s Rules (B) institute proceedings to determine
by incorporating clarifying language and publicly. All submissions should refer
whether the proposed rule change to File Number SR–ICC–2018–006 and
changes to avoid a potential should be disapproved.
mischaracterization of Mark-to-Market should be submitted on or before July
Margin payments. The proposed IV. Solicitation of Comments 20, 2018.
revisions will provide market Interested persons are invited to For the Commission, by the Division of
participants with certainty surrounding submit written data, views, and Trading and Markets, pursuant to delegated
ICC’s treatment of Mark-to-Market authority.9
arguments concerning the foregoing,
Margin, which will facilitate including whether the proposed rule Eduardo A. Aleman,
compliance with market participants’ change, security-based swap Assistant Secretary.
own capital requirements and therefore submission, or advance notice is [FR Doc. 2018–13985 Filed 6–28–18; 8:45 am]
further the public interest. As such, the consistent with the Act. Comments may BILLING CODE 8011–01–P
proposed changes provide additional be submitted by any of the following
clarity and transparency in the ICC methods:
Rules and are designed to promote the SECURITIES AND EXCHANGE
Electronic Comments COMMISSION
prompt and accurate clearance and
settlement of securities transactions, • Use the Commission’s internet [Release No. 34–83514; File No. SR–GEMX–
derivatives agreements, contracts, and comment form (http://www.sec.gov/ 2018–22)
transactions within the meaning of rules/sro.shtml); or
Section 17A(b)(3)(F) 8 of the Act. • Send an email to rule-comments@ Self-Regulatory Organizations; Nasdaq
sec.gov. Please include File Number SR– GEMX, LLC; Notice of Filing and
(B) Clearing Agency’s Statement on ICC–2018–006 on the subject line. Immediate Effectiveness of Proposed
Burden on Competition Rule Change To Relocate the
Paper Comments Exchange’s Rules Pertaining to Co-
ICC does not believe the proposed Send paper comments in triplicate to Location and Direct Connectivity
rule changes would have any impact, or Secretary, Securities and Exchange
impose any burden, on competition. June 25, 2018.
Commission, 100 F Street NE,
The changes, which further clarify that Pursuant to Section 19(b)(1) of the
Washington, DC 20549–1090.
payments of Mark-to-Market Margin Securities Exchange Act of 1934
All submissions should refer to File (‘‘Act’’),1 and Rule 19b–4 thereunder,2
represent settlement rather than Number SR–ICC–2018–006. This file notice is hereby given that on June 13,
collateral payments, result in no number should be included on the 2018, Nasdaq GEMX, LLC (‘‘GEMX’’ or
operational changes and apply subject line if email is used. To help the ‘‘Exchange’’) filed with the Securities
uniformly across all market participants. Commission process and review your and Exchange Commission
Therefore, ICC does not believe the comments more efficiently, please use
sradovich on DSK3GMQ082PROD with NOTICES
(‘‘Commission’’) the proposed rule
proposed rule changes impose any only one method. The Commission will change as described in Items I and II
burden on competition that is post all comments on the Commission’s below, which Items have been prepared
inappropriate in furtherance of the internet website (http://www.sec.gov/ by the Exchange. The Commission is
purposes of the Act. rules/sro.shtml). Copies of the
submission, all subsequent 9 17 CFR 200.30–3(a)(12).
7 Id. amendments, all written statements 1 15 U.S.C. 78s(b)(1).
8 Id. with respect to the proposed rule 2 17 CFR 240.19b–4.
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![30806 Federal Register / Vol. 83, No. 126 / Friday, June 29, 2018 / Notices
it appears to the Commission that such to make available publicly. All requirements for Securities issued by
action is necessary or appropriate in the submissions should refer to File unit investment trusts (‘‘Units’’) to be
public interest, for the protection of Number SR–GEMX–2018–22, and processed through DTC’s Investor’s
investors, or otherwise in furtherance of should be submitted on or before July Voluntary Redemptions and Sales
the purposes of the Act. If the 20, 2018. Service (‘‘IVORS’’), as described below.
Commission takes such action, the For the Commission, by the Division of II. Clearing Agency’s Statement of the
Commission shall institute proceedings Trading and Markets, pursuant to delegated Purpose of, and Statutory Basis for, the
to determine whether the proposed rule authority.12
Proposed Rule Change
change should be approved or Eduardo A. Aleman
disapproved. Assistant Secretary.
In its filing with the Commission, the
clearing agency included statements
IV. Solicitation of Comments [FR Doc. 2018–13986 Filed 6–28–18; 8:45 am]
concerning the purpose of and basis for
BILLING CODE 8011–01–P
Interested persons are invited to the proposed rule change and discussed
submit written data, views, and any comments it received on the
arguments concerning the foregoing, proposed rule change. The text of these
SECURITIES AND EXCHANGE
including whether the proposed rule statements may be examined at the
COMMISSION
change is consistent with the Act. places specified in Item IV below. The
Comments may be submitted by any of [Release No. 34–83511; File No. SR–DTC– clearing agency has prepared
the following methods: 2018–005] summaries, set forth in sections A, B,
Electronic Comments and C below, of the most significant
Self-Regulatory Organizations; The
aspects of such statements.
• Use the Commission’s internet Depository Trust Company; Notice of
comment form (http://www.sec.gov/ Filing and Immediate Effectiveness of (A) Clearing Agency’s Statement of the
rules/sro.shtml); or Proposed Rule Change To Amend the Purpose of, and Statutory Basis for, the
• Send an email to rule-comments@ DTC Operational Arrangements To Add Proposed Rule Change
sec.gov. Please include File Number SR– Clarifying Text Relating to the
1. Purpose
GEMX–2018–22 on the subject line. Processing of Unit Investment Trust
Securities Through the DTC Investor’s The proposed rule change consists of
Paper Comments Voluntary Redemptions and Sales proposed modifications to the OA to
• Send paper comments in triplicate Service provide enhanced transparency within
to Secretary, Securities and Exchange the DTC Procedures relating to DTC’s
Commission, 100 F Street NE, June 25, 2018. requirements for Units to be processed
Washington, DC 20549–1090. Pursuant to Section 19(b)(1) of the through IVORS, as discussed below.
Securities Exchange Act of 1934
All submissions should refer to File Background
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
Number SR–GEMX–2018–22. This file
notice is hereby given that on June 20, A unit investment trust is an
number should be included on the
2018, The Depository Trust Company investment company that buys and
subject line if email is used. To help the
(‘‘DTC’’) filed with the Securities and holds a generally fixed portfolio of
Commission process and review your
Exchange Commission (‘‘Commission’’) stocks, bonds or other securities for a
comments more efficiently, please use
the proposed rule change as described fixed period of time. Units are sold by
only one method. The Commission will
in Items I, II and III below, which Items a sponsor, which is the issuer of the
post all comments on the Commission’s
have been prepared by the clearing Units, to investors who receive a share
internet website (http://www.sec.gov/
agency. The Commission is publishing of principal and dividends, or interest.
rules/sro.shtml). Copies of the this notice to solicit comments on the
submission, all subsequent When Units mature, an investor may
proposed rule change from interested redeem matured Units with the transfer
amendments, all written statements persons.
with respect to the proposed rule agent for the Units, or sell Units to the
change that are filed with the I. Clearing Agency’s Statement of the sponsor for a cash payment (such
Commission, and all written Terms of Substance of the Proposed redemptions and sales jointly referred to
communications relating to the Rule Change herein as ‘‘Redemptions’’).6 The sponsor
proposed rule change between the may also allow a holder of maturing
The proposed rule change 3 consists of Units to ‘‘rollover’’ the Units by
Commission and any person, other than proposed modifications to the DTC
those that may be withheld from the redeeming the maturing Units for a
Operational Arrangements (Necessary comparable issue of Units (‘‘Rollover’’).
public in accordance with the for Securities to Become and Remain
provisions of 5 U.S.C. 552, will be Units that meet DTC’s eligibility
Eligible for DTC Services) (‘‘OA’’) 4 to requirements 7 may be Deposited for
available for website viewing and provide enhanced transparency within
printing in the Commission’s Public book-entry services at DTC and be held
DTC’s Procedures 5 relating to by Participants on behalf of investors.
Reference Room, 100 F Street NE,
Washington, DC 20549 on official 12 17
Redemptions and Rollovers of Units
CFR 200.30–3(a)(12).
business days between the hours of 1 15 U.S.C. 78s(b)(1).
held at DTC must be processed through
10:00 a.m. and 3:00 p.m. Copies of the 2 17 CFR 240.19b–4. IVORS.8 IVORS allows a Participant to
3 Each capitalized term not otherwise defined
filing also will be available for
herein has its respective meaning as set forth in the regulations of DTC adopted pursuant to Rule 27, as
inspection and copying at the principal
sradovich on DSK3GMQ082PROD with NOTICES
Rules, By-Laws and Organization Certificate of The amended from time to time. See Rule 1, Section 1,
office of the Exchange. All comments Depository Trust Company (‘‘Rules’’), available at supra note 3, at 13.
received will be posted without change. http://www.dtcc.com/∼/media/Files/Downloads/ 6 See Securities Exchange Act Release No. 39852
Persons submitting comments are legal/rules/dtc_rules.pdf. (April 10, 1998), 63 FR 19545 (April 20, 1998)
4 Available at http://www.dtcc.com/∼/media/ (‘‘1998 Release’’).
cautioned that we do not redact or edit
Files/Downloads/legal/issue-eligibility/eligibility/ 7 See OA, supra note 4 at 1–3 (setting forth
personal identifying information from operational-arrangements.pdf. requirements for Securities to be made eligible for
comment submissions. You should 5 Pursuant to the Rules, the term ‘‘Procedures’’ DTC book-entry services).
submit only information that you wish means the Procedures, service guides, and 8 See OA, supra note 4 at 43–44.
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Document Created: 2018-06-29 01:13:10
Document Modified: 2018-06-29 01:13:10
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 83 FR 30804 |
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