83 FR 31232 - Self-Regulatory Organizations; Nasdaq BX; Order Granting an Extension to Limited Exemptions From Rule 612(c) of Regulation NMS in Connection With the Exchange's Retail Price Improvement Program Until December 31, 2018

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 128 (July 3, 2018)

Page Range		31232-31233
FR Document		2018-14288

Federal Register, Volume 83 Issue 128 (Tuesday, July 3, 2018)

[Federal Register Volume 83, Number 128 (Tuesday, July 3, 2018)]
[Notices]
[Pages 31232-31233]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-14288]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83542; File No. SR-BX-2014-048]


Self-Regulatory Organizations; Nasdaq BX; Order Granting an 
Extension to Limited Exemptions From Rule 612(c) of Regulation NMS in 
Connection With the Exchange's Retail Price Improvement Program Until 
December 31, 2018

June 28, 2018.
    On November 28, 2014 the Securities and Exchange Commission 
(``Commission'') issued an order pursuant to its authority under Rule 
612(c) of Regulation NMS (``Sub-Penny Rule'') \1\ that granted Nasdaq 
BX, Inc. (``BX'' or ``Exchange'') a limited exemption from the Sub-
Penny Rule in connection with the operation of the Exchange's Retail 
Price Improvement Program (the ``RPI Program'').\2\ The limited 
exemption was granted concurrently with the Commission's approval of 
the Exchange's proposal to adopt its RPI Program for a one-year pilot 
term.\3\ On November 20, 2015, the Commission extended the temporary 
exemption until December 2016 concurrently with an immediately 
effective filing that extended the operation of the RPI Program until 
December 1, 2016.\4\ On December 1, 2016, the Commission extended the 
temporary exemption until December 1, 2017 concurrently with an 
immediately effective filing that extended the operation of the RPI 
Program until December 1, 2017.\5\ On December 1, 2017, the Commission 
again extended the temporary exemption until June 30, 2018 concurrently 
with an immediately effective filing that extended the operation of the 
RPI Program until December 1, 2017.\6\
---------------------------------------------------------------------------

    \1\ 17 CFR 242.612(c).
    \2\ See Securities Exchange Act Release No. 73702, 79 FR 72049 
(December 4, 2014) (SRBX-2014-048) (``RPI Approval Order'').
    \3\ See id.
    \4\ See Securities Exchange Act Release No. 76490 (November 20, 
2015), 80 FR 74165 (November 27, 2015) (SR-BX-2015-073).
    \5\ See Securities Exchange Act Release No. 79446 (December 1, 
2016), 81 FR 88290 (December 7, 2016) (SR-BX-2016-065).
    \6\ See Securities Exchange Act Release No. 82192 (December 1, 
2017), 82 FR 57809 (December 7, 2017) (SR-BX-2017-055).
---------------------------------------------------------------------------

    The Exchange now seeks to extend the exemption until December 31, 
2018.\7\ The Exchange's request was made in conjunction with an 
immediately effective filing that extends the operation of the RPI 
Program through the same date.\8\ In its request to extend the 
exemption, the Exchange notes that given the gradual implementation of 
the RPI Program and the preliminary participation and results, 
extending the exemption would provide additional opportunities for 
greater participation and assessment of the results.\9\ Accordingly, 
the Exchange has asked additional time to allow it and the Commission 
to analyze data concerning the RPI Program, which the Exchange 
committed to provide to the Commission.\10\ For this reason and the 
reasons stated in the RPI Approval Order originally granting the 
limited exemption, the Commission, pursuant to its authority under Rule 
612(c) of Regulation NMS, finds that pursuant to its authority under 
Rule 612(c) of Regulation NMS, extending the exemption is appropriate 
in the public interest and consistent with the protection of investors.
---------------------------------------------------------------------------

    \7\ See Letter from Jeffrey S. Davis, Vice President and Deputy 
General Counsel and Secretary, Nasdaq BX, Inc. to Eduardo A. Aleman, 
Assistant Secretary, Securities and Exchange Commission dated June 
21, 2018 (``BX Letter'').
    \8\ See SR-BX-2018-026.
    \9\ See, e.g., BX Letter at 3; RPI Approval Order, supra note 2.
    \10\ See, e.g., id.; RPI Approval Order, supra note 2.
---------------------------------------------------------------------------

    Therefore, it is hereby ordered that, pursuant to Rule 612(c) of 
Regulation NMS, the Exchange is granted a limited exemption from Rule 
612 of Regulation NMS that allows the Exchange to accept and rank 
orders priced equal to or greater than $1.00 per share in increments of 
$0.001, in connection with the operation of its RPI Program, until 
December 31, 2018.
    The limited and temporary exemption extended by this Order is 
subject to modification or revocation if at any time the Commission 
determines that such action is necessary or appropriate in furtherance 
of the purposes of the Securities Exchange Act of 1934. Responsibility 
for compliance with any applicable provisions of the Federal securities 
laws must rest with the

[[Page 31233]]

persons relying on the exemptions that are the subject of this Order.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(83).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-14288 Filed 7-2-18; 8:45 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 83, No. 128 / Tuesday, July 3, 2018 / Notices 31233

persons relying on the exemptions that Exchange has prepared summaries, set just and equitable principles of trade,
are the subject of this Order. forth in sections A, B, and C below, of remove impediments to and perfect the
For the Commission, by the Division of the most significant aspects of such mechanisms of a free and open market
Trading and Markets, pursuant to delegated statements. and a national market system and, in
authority.11
A. Self-Regulatory Organization’s general, to protect investors and the
Eduardo A. Aleman, Statement of the Purpose of, and public interest. In particular, the
Assistant Secretary. Statutory Basis for, the Proposed Rule proposed rule change, which extends
[FR Doc. 2018–14288 Filed 7–2–18; 8:45 am] Change the Penny Pilot Program for an
BILLING CODE 8011–01–P
additional six months, will enable
1. Purpose public customers and other market
Under the Penny Pilot Program, the participants to express their true prices
SECURITIES AND EXCHANGE minimum price variation for all to buy and sell options to the benefit of
COMMISSION participating options classes, except for all market participants.
[Release No. 34–83533; File No. SR–GEMX–
the Nasdaq-100 Index Tracking Stock B. Self-Regulatory Organization’s
2018–23] (‘‘QQQQ’’), the SPDR S&P 500 Exchange Statement on Burden on Competition
Traded Fund (‘‘SPY’’) and the iShares
Self-Regulatory Organizations; Nasdaq Russell 2000 Index Fund (‘‘IWM’’), is In accordance with Section 6(b)(8) of
GEMX, LLC; Notice of Filing and $0.01 for all quotations in options series the Act,6 the Exchange does not believe
Immediate Effectiveness of Proposed that are quoted at less than $3 per that the proposed rule change will
Rule Change To Extend the contract and $0.05 for all quotations in impose any burden on intermarket or
Exchange’s Penny Pilot Program options series that are quoted at $3 per intramarket competition that is not
contract or greater. QQQQ, SPY and necessary or appropriate in furtherance
June 28, 2018. IWM are quoted in $0.01 increments for of the purposes of the Act. Specifically,
Pursuant to Section 19(b)(1) of the all options series. The Penny Pilot the Exchange believes that, by extending
Securities Exchange Act of 1934 Program is currently scheduled to the expiration of the Penny Pilot
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 expire on June 30, 2018.3 The Exchange Program, the proposed rule change will
notice is hereby given that on June 25, proposes to extend the Penny Pilot allow for further analysis of the Penny
2018, Nasdaq GEMX, LLC (‘‘GEMX’’ or Program through December 31, 2018, Pilot Program and a determination of
‘‘Exchange’’) filed with the Securities and to provide a revised date for adding how the Penny Pilot Program should be
and Exchange Commission (‘‘SEC’’ or replacement issues to the Penny Pilot structured in the future. In doing so, the
‘‘Commission’’) the proposed rule Program. The Exchange proposes that proposed rule change will also serve to
change as described in Items I and II any Penny Pilot Program issues that promote regulatory clarity and
below, which Items have been prepared have been delisted may be replaced on consistency, thereby reducing burdens
by the Exchange. The Commission is the second trading day following July 1, on the marketplace and facilitating
publishing this notice to solicit 2018. The replacement issues will be investor protection.
comments on the proposed rule change selected based on trading activity for the
from interested persons. C. Self-Regulatory Organization’s
most recent six month period excluding
Statement on Comments on the
I. Self-Regulatory Organization’s the month immediately preceding the
Proposed Rule Change Received From
Statement of the Terms of Substance of replacement (i.e., beginning December
Members, Participants, or Others
the Proposed Rule Change 1, 2017, and ending May 31, 2018). This
filing does not propose any substantive No written comments were either
The Exchange proposes to amend its changes to the Penny Pilot Program: All solicited or received.
rules to extend a pilot program to quote classes currently participating will
and to trade certain options classes in remain the same and all minimum III. Date of Effectiveness of the
penny increments (‘‘Penny Pilot increments will remain unchanged. The Proposed Rule Change and Timing for
Program’’). Exchange believes the benefits to public Commission Action
The text of the proposed rule change customers and other market participants
is available on the Exchange’s website at The Exchange has filed the proposed
who will be able to express their true rule change pursuant to Section
http://nasdaqgemx.cchwallstreet.com/, prices to buy and sell options have been
at the principal office of the Exchange, 19(b)(3)(A)(iii) of the Act 7 and Rule
demonstrated to outweigh any increase 19b–4(f)(6) thereunder.8 Because the
and at the Commission’s Public in quote traffic.
Reference Room. proposed rule change does not: (i)
2. Statutory Basis Significantly affect the protection of
II. Self-Regulatory Organization’s investors or the public interest; (ii)
Statement of the Purpose of, and The Exchange believes that the
impose any significant burden on
Statutory Basis for, the Proposed Rule proposed rule change is consistent with
competition; and (iii) become operative
Change the requirements of the Act and the
prior to 30 days from the date on which
rules and regulations thereunder that
In its filing with the Commission, the it was filed, or such shorter time as the
are applicable to a national securities
Exchange included statements Commission may designate, if
exchange, and, in particular, with the
concerning the purpose of and basis for consistent with the protection of
requirements of Section 6(b) of the Act.4
the proposed rule change and discussed investors and the public interest, the
Specifically, the proposed rule change is
sradovich on DSK3GMQ082PROD with NOTICES

any comments it received on the proposed rule change has become
consistent with Section 6(b)(5) of the effective pursuant to Section 19(b)(3)(A)
proposed rule change. The text of these Act,5 because it is designed to promote
statements may be examined at the of the Act and Rule 19b–4(f)(6)(iii)
places specified in Item IV below. The 3 See Exchange Act Release No. 82356 (December
thereunder.
19, 2017), 82 FR 61089 (December 26, 2017) (SR–
11 17 CFR 200.30–3(a)(83). GEMX–2017–57). 6 15 U.S.C. 78f(b)(8).
1 15 U.S.C. 78s(b)(1). 4 15 U.S.C. 78f(b). 7 15 U.S.C. 78s(b)(3)(A)(iii).
2 17 CFR 240.19b–4. 5 15 U.S.C. 78f(b)(5). 8 17 CFR 240.19b–4(f)(6).

VerDate Sep<11>2014 17:07 Jul 02, 2018 Jkt 244001 PO 00000 Frm 00117 Fmt 4703 Sfmt 4703 E:\FR\FM\03JYN1.SGM 03JYN1

Document Created: 2018-07-02 23:55:08
Document Modified: 2018-07-02 23:55:08

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 31232