83 FR 31241 - Self-Regulatory Organizations; Nasdaq BX, Inc.; 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 128 (July 3, 2018)

Page Range		31241-31243
FR Document		2018-14277
Federal Register, Volume 83 Issue 128 (Tuesday, July 3, 2018)
[Federal Register Volume 83, Number 128 (Tuesday, July 3, 2018)]
[Notices]
[Pages 31241-31243]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-14277]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83535; File No. SR-BX-2018-024]


Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Relocate the 
Exchange's Rules Pertaining to Co-Location and Direct Connectivity

June 28, 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 BX, Inc. (``BX'' 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 relocate the Exchange's rules pertaining 
to co-location and direct connectivity, which are presently at Rules 
7034 and 7051, to Sections 1 and 2, respectively, under a new General 8 
(``Connectivity'') heading within the Exchange's new rulebook shell, 
entitled ``General Equity and Options Rules.'' The Exchange also 
proposes to correct an error in Rule 7051(b).
    The text of the proposed rule change is available on the Exchange's 
website at http://nasdaqbx.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 Rules 7034 
and 7051, respectively. The Exchange proposes to establish, within its 
new rulebook shell,\3\ a new General 8 heading, entitled 
``Connectivity,'' to renumber Rule 7034 as Section 1 thereunder, and to 
renumber Rule 7051 as Section 2 thereunder. The Exchange furthermore 
proposes to amend Rules 7011, 7025, 7030, and Options Rules Chapter XV 
to update cross references therein to Rules 7034 and 7051, as 
applicable. The Exchange also proposes to update internal cross-
references in the renumbered Rules.
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    \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 Market, LLC; Nasdaq PHLX LLC; Nasdaq ISE, LLC; 
Nasdaq GEMX, LLC; and Nasdaq MRX, LLC (together with BX, the 
``Affiliated Exchanges''). See Securities Exchange Act Release No. 
82174 (November 29, 2017), 82 FR 57492 (December 5, 2017) (SR-BX-
2017-054).
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    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.
    In addition to the above, the Exchange proposes to correct an error 
in Rule 7051(b), entitled ``Direct Circuit Connection to Third Party 
Services.'' The Exchange recently amended Rule 7051 in an attempt to 
harmonize it with the corresponding rules of the other Affiliated 
Exchanges.\4\ However, the Exchange recently discovered one remaining 
unintended discrepancy that it now proposes to remedy. The other 
Affiliated Exchanges waive installation and ongoing monthly fees for 
10Gb Ultra and 1 GB Ultra direct circuit

[[Page 31242]]

connections to third party services for the first two connections per 
client to UTP SIP feeds only (UQDF and UTDF).\5\ The Exchange's Rule 
does not presently provide for such waivers; it now proposes to amend 
the Rule so that it does so. With this amendment, Rule 7051(b) will be 
substantially the same as the corresponding rules of the other 
Affiliated Exchanges.
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    \4\ See Securities Exchange Act Release No. 34-82628 (Feb. 5, 
2018). 83 FR 5818 (Feb. 9, 2018) (SR-BX-2018-006).
    \5\ See Nasdaq Rule 7051(b), Phlx Pricing Schedule Section 
XI(b), Nasdaq ISE Schedule of Fees Section VI.G, Nasdaq GEMX 
Schedule of Fees Section IV.D [sic], Nasdaq MRX Schedule of Fees 
Section VI.C.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of 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 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.
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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 also believes that it is in the interests of investors 
and the public to remedy unintended errors in the Exchange's rules. 
Investors and the public have clear interests in the Exchange 
maintaining an accurate rulebook and schedule of fees.

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 to relocate the Exchange's rules 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. 
Likewise, the Exchange's proposal to amend Rule 7051(b) will not burden 
competition because it merely corrects an unintended error and renders 
the Exchange's fees identical to those that the other Affiliated 
Exchanges charge.

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 \8\ and Rule 19b-
4(f)(6) thereunder.\9\
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 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.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \10\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \11\ 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 Exchange's co-location and 
direct connectivity rules, updates rule cross-references, and corrects 
unintended errors from a previous proposed rule change.\12\ 
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.\13\
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    \10\ 17 CFR 240.19b-4(f)(6).
    \11\ 17 CFR 240.19b-4(f)(6)(iii).
    \12\ See supra notes 4-5 and accompanying text.
    \13\ 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).
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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 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 [email protected]. Please include 
File Number SR-BX-2018-024 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-BX-2018-024. 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

[[Page 31243]]

to make available publicly. All submissions should refer to File Number 
SR-BX-2018-024, and should be submitted on or before July 24, 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. 2018-14277 Filed 7-2-18; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 83, No. 128 / Tuesday, July 3, 2018 / Notices 31241

payment obligations with a high degree SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
of confidence under a wide range of COMMISSION Statement of the Purpose of, and
foreseeable stress scenarios that Statutory Basis for, the Proposed Rule
includes, but is not limited to, the [Release No. 34–83535; File No. SR–BX– Change
default of the participant family that 2018–024]
1. Purpose
would generate the largest aggregate
payment of obligation for the covered Self-Regulatory Organizations; Nasdaq The Exchange proposes to relocate its
clearing agency in extreme but plausible BX, Inc.; Notice of Filing and rules governing co-location and direct
conditions.’’ Immediate Effectiveness of Proposed connectivity services, which presently
Rule Change To Relocate the comprise Rules 7034 and 7051,
As described above, the currently
Exchange’s Rules Pertaining to Co- respectively. The Exchange proposes to
proposed credit facility would provide
Location and Direct Connectivity establish, within its new rulebook
OCC with a readily available liquidity
resource that would enable OCC to shell,3 a new General 8 heading, entitled
June 28, 2018.
continue to meet its respective ‘‘Connectivity,’’ to renumber Rule 7034
Pursuant to Section 19(b)(1) of the as Section 1 thereunder, and to
obligations in a timely fashion in the Securities Exchange Act of 1934
event of a Member default, thereby renumber Rule 7051 as Section 2
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 thereunder. The Exchange furthermore
helping to contain losses and liquidity notice is hereby given that on June 13,
pressures from that default. proposes to amend Rules 7011, 7025,
2018, Nasdaq BX, Inc. (‘‘BX’’ or 7030, and Options Rules Chapter XV to
Additionally, the currently proposed ‘‘Exchange’’) filed with the Securities
credit facility would allow OCC to avoid update cross references therein to Rules
and Exchange Commission 7034 and 7051, as applicable. The
a gap in liquidity coverage and better (‘‘Commission’’) the proposed rule
allow OCC to continually maintain Exchange also proposes to update
change as described in Items I and II internal cross-references in the
sufficient liquidity resources. Therefore, below, which Items have been prepared
the Commission believes that the renumbered Rules.
by the Exchange. The Commission is The Exchange considers it appropriate
proposal is consistent with Rule 17Ad– publishing this notice to solicit to relocate these Rules to better organize
22(e)(7)(i). comments on the proposed rule change its Rulebook. The other Affiliated
Rule 17Ad–22(e)(7)(ii) under the Act from interested persons. Exchanges intend to propose similar
requires OCC to establish, implement, reorganizations of their co-location and
I. Self-Regulatory Organization’s
maintain and enforce written policies direct connectivity rules so that these
Statement of the Terms of Substance of
and procedures reasonably designed to rules will be harmonized among all of
the Proposed Rule Change
hold qualifying liquid resources the Affiliated Exchanges.
sufficient to satisfy payment obligations The Exchange proposes to relocate the The relocation of the co-location and
owed to clearing members.47 Rule Exchange’s rules pertaining to co- direct connectivity rules is part of the
17Ad–22(a)(14) of the Act defines location and direct connectivity, which Exchange’s continued effort to promote
‘‘qualifying liquid resources’’ to include, are presently at Rules 7034 and 7051, to efficiency and conformity of its
among other things, lines of credit Sections 1 and 2, respectively, under a processes with those of its Affiliated
without material adverse change new General 8 (‘‘Connectivity’’) heading Exchanges. The Exchange believes that
provisions, that are readily available within the Exchange’s new rulebook moving the co-location and direct
and convertible into cash.48 As shell, entitled ‘‘General Equity and connectivity rules to their new location
described above, the currently proposed Options Rules.’’ The Exchange also will facilitate the use of the Rulebook by
credit facility would permit OCC to proposes to correct an error in Rule Members of the Exchange who are
enter into a single credit facility 7051(b). members of other Affiliated Exchanges.
designed to help ensure that OCC has The text of the proposed rule change In addition to the above, the Exchange
sufficient, readily-available qualifying is available on the Exchange’s website at proposes to correct an error in Rule
liquid resources to meet the cash http://nasdaqbx.cchwallstreet.com/, at 7051(b), entitled ‘‘Direct Circuit
settlement obligations of its largest the principal office of the Exchange, and Connection to Third Party Services.’’
family of affiliated members. Therefore, at the Commission’s Public Reference The Exchange recently amended Rule
the Commission believes that the Room. 7051 in an attempt to harmonize it with
proposal is consistent with Rule 17Ad– II. Self-Regulatory Organization’s the corresponding rules of the other
22(e)(7)(ii). Statement of the Purpose of, and Affiliated Exchanges.4 However, the
VI. Conclusion Statutory Basis for, the Proposed Rule Exchange recently discovered one
Change remaining unintended discrepancy that
It is therefore noticed, pursuant to it now proposes to remedy. The other
Section 806(e)(1)(I) of the Clearing In its filing with the Commission, the Affiliated Exchanges waive installation
Supervision Act, that the Commission Exchange included statements and ongoing monthly fees for 10Gb
does not object to the advance notice concerning the purpose of and basis for Ultra and 1 GB Ultra direct circuit
SR–OCC–2018–802 and OCC can and the proposed rule change and discussed
hereby is authorized to implement the any comments it received on the 3 Recently, the Exchange added a shell structure

change as of the date of this notice. proposed rule change. The text of these to its Rulebook with the purpose of improving
statements may be examined at the efficiency and readability and to align its rules
By the Commission. places specified in Item IV below. The closer to those of its five sister exchanges: The
sradovich on DSK3GMQ082PROD with NOTICES

Brent J. Fields, Nasdaq Stock Market, LLC; Nasdaq PHLX LLC;
Exchange has prepared summaries, set Nasdaq ISE, LLC; Nasdaq GEMX, LLC; and Nasdaq
Secretary. forth in sections A, B, and C below, of MRX, LLC (together with BX, the ‘‘Affiliated
[FR Doc. 2018–14233 Filed 7–2–18; 8:45 am] the most significant aspects of such Exchanges’’). See Securities Exchange Act Release
BILLING CODE 8011–01–P statements. No. 82174 (November 29, 2017), 82 FR 57492
(December 5, 2017) (SR–BX–2017–054).
4 See Securities Exchange Act Release No. 34–
47 17 CFR 240.17Ad–22(e)(7)(ii). 1 15 U.S.C. 78s(b)(1). 82628 (Feb. 5, 2018). 83 FR 5818 (Feb. 9, 2018) (SR–
48 17 CFR 240.17Ad–22(a)(14). 2 17 CFR 240.19b–4. BX–2018–006).

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31242 Federal Register / Vol. 83, No. 128 / Tuesday, July 3, 2018 / Notices

connections to third party services for those that the other Affiliated Exchanges it appears to the Commission that such
the first two connections per client to charge. action is necessary or appropriate in the
UTP SIP feeds only (UQDF and UTDF).5 public interest, for the protection of
C. Self-Regulatory Organization’s
The Exchange’s Rule does not presently investors, or otherwise in furtherance of
Statement on Comments on the
provide for such waivers; it now the purposes of the Act. If the
Proposed Rule Change Received From
proposes to amend the Rule so that it Commission takes such action, the
Members, Participants, or Others
does so. With this amendment, Rule Commission shall institute proceedings
7051(b) will be substantially the same as No written comments were either to determine whether the proposed rule
the corresponding rules of the other solicited or received. change should be approved or
Affiliated Exchanges. III. Date of Effectiveness of the disapproved.
2. Statutory Basis Proposed Rule Change and Timing for IV. Solicitation of Comments
Commission Action
The Exchange believes that its Interested persons are invited to
proposal is consistent with Section 6(b) Because the foregoing proposed rule submit written data, views, and
of the Act,6 in general, and furthers the change does not: (i) Significantly affect arguments concerning the foregoing,
objectives of Section 6(b)(5) of the Act,7 the protection of investors or the public including whether the proposed rule
in particular, in that it is designed to interest; (ii) impose any significant change is consistent with the Act.
burden on competition; and (iii) become Comments may be submitted by any of
promote just and equitable principles of
operative for 30 days from the date on the following methods:
trade, to remove impediments to and
which it was filed, or such shorter time
perfect the mechanism of a free and Electronic Comments
as the Commission may designate, it has
open market and a national market
become effective pursuant to Section • Use the Commission’s internet
system, and, in general to protect
19(b)(3)(A) of the Act 8 and Rule 19b– comment form (http://www.sec.gov/
investors and the public interest, by
4(f)(6) thereunder.9 rules/sro.shtml); or
improving the way its Rulebook is A proposed rule change filed • Send an email to rule-comments@
organized, providing ease of reference in pursuant to Rule 19b–4(f)(6) under the sec.gov. Please include File Number SR–
locating co-location and direct Act 10 normally does not become BX–2018–024 on the subject line.
connectivity rules, and harmonizing the operative for 30 days after the date of its
Exchange’s Rules with those of the other Paper Comments
filing. However, Rule 19b–4(f)(6)(iii) 11
Affiliated Exchanges. As previously permits the Commission to designate a • Send paper comments in triplicate
stated, the proposed Rule relocation is shorter time if such action is consistent to Secretary, Securities and Exchange
non-substantive. with the protection of investors and the Commission, 100 F Street NE,
The Exchange also believes that it is public interest. The Exchange has Washington, DC 20549–1090.
in the interests of investors and the requested that the Commission waive All submissions should refer to File
public to remedy unintended errors in the 30-day operative delay so that the Number SR–BX–2018–024. This file
the Exchange’s rules. Investors and the proposed rule change may become number should be included on the
public have clear interests in the operative upon filing. The proposed rule subject line if email is used. To help the
Exchange maintaining an accurate change merely relocates the Exchange’s Commission process and review your
rulebook and schedule of fees. co-location and direct connectivity comments more efficiently, please use
B. Self-Regulatory Organization’s rules, updates rule cross-references, and only one method. The Commission will
Statement on Burden on Competition corrects unintended errors from a post all comments on the Commission’s
previous proposed rule change.12 internet website (http://www.sec.gov/
The Exchange does not believe that Accordingly, the Commission believes rules/sro.shtml). Copies of the
the proposed rule change will impose that waiver of the 30-day operative submission, all subsequent
any burden on intermarket or intra- delay is consistent with the protection amendments, all written statements
market competition that is not necessary of investors and the public interest and with respect to the proposed rule
or appropriate in furtherance of the hereby waives the operative delay and change that are filed with the
purposes of the Act. The proposed designates the proposed rule change Commission, and all written
changes to relocate the Exchange’s rules operative upon filing.13 communications relating to the
do not impose a burden on competition At any time within 60 days of the proposed rule change between the
because, as previously stated, they (i) filing of the proposed rule change, the Commission and any person, other than
are of a non-substantive nature, (ii) are Commission summarily may those that may be withheld from the
intended to harmonize the Exchange’s temporarily suspend such rule change if public in accordance with the
rules with those of its Affiliated provisions of 5 U.S.C. 552, will be
Exchanges, and (iii) are intended to 8 15
U.S.C. 78s(b)(3)(A). available for website viewing and
organize the Rulebook in a way that it 9 17
CFR 240.19b–4(f)(6). In addition, Rule 19b– printing in the Commission’s Public
will ease the Members’ navigation and 4(f)(6)(iii) requires a self-regulatory organization to
Reference Room, 100 F Street NE,
reading of the rules across the Affiliated give the Commission written notice of its intent to
file the proposed rule change, along with a brief Washington, DC 20549 on official
Exchanges. Likewise, the Exchange’s description and text of the proposed rule change, business days between the hours of
proposal to amend Rule 7051(b) will not at least five business days prior to the date of filing 10:00 a.m. and 3:00 p.m. Copies of the
burden competition because it merely of the proposed rule change, or such shorter time
filing also will be available for
corrects an unintended error and as designated by the Commission. The Exchange
inspection and copying at the principal
sradovich on DSK3GMQ082PROD with NOTICES

has satisfied this requirement.
renders the Exchange’s fees identical to 10 17 CFR 240.19b–4(f)(6). office of the Exchange. All comments
11 17 CFR 240.19b–4(f)(6)(iii). received will be posted without change.
5 See Nasdaq Rule 7051(b), Phlx Pricing Schedule 12 See supra notes 4–5 and accompanying text.
Persons submitting comments are
Section XI(b), Nasdaq ISE Schedule of Fees Section 13 For purposes only of waiving the 30-day
VI.G, Nasdaq GEMX Schedule of Fees Section IV.D
cautioned that we do not redact or edit
operative delay, the Commission also has
[sic], Nasdaq MRX Schedule of Fees Section VI.C. considered the proposed rule’s impact on
personal identifying information from
6 15 U.S.C. 78f(b).
efficiency, competition, and capital formation. See comment submissions. You should
7 15 U.S.C. 78f(b)(5). 15 U.S.C. 78c(f). submit only information that you wish

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to make available publicly. All statements may be examined at the Act,5 because it is designed to promote
submissions should refer to File places specified in Item IV below. The just and equitable principles of trade,
Number SR–BX–2018–024, and should Exchange has prepared summaries, set remove impediments to and perfect the
be submitted on or before July 24, 2018. forth in sections A, B, and C below, of mechanisms of a free and open market
For the Commission, by the Division of the most significant aspects of such and a national market system and, in
Trading and Markets, pursuant to delegated statements. general, to protect investors and the
authority.14 A. Self-Regulatory Organization’s public interest. In particular, the
Eduardo A. Aleman, Statement of the Purpose of, and proposed rule change, which extends
Assistant Secretary. Statutory Basis for, the Proposed Rule the Penny Pilot Program for an
[FR Doc. 2018–14277 Filed 7–2–18; 8:45 am] Change additional six months, will enable
BILLING CODE 8011–01–P
public customers and other market
1. Purpose participants to express their true prices
Under the Penny Pilot Program, the to buy and sell options to the benefit of
SECURITIES AND EXCHANGE minimum price variation for all all market participants.
COMMISSION participating options classes, except for B. Self-Regulatory Organization’s
the Nasdaq-100 Index Tracking Stock Statement on Burden on Competition
[Release No. 34–83531; File No. SR–ISE–
2018–57] (‘‘QQQQ’’), the SPDR S&P 500 Exchange
Traded Fund (‘‘SPY’’) and the iShares In accordance with Section 6(b)(8) of
Self-Regulatory Organizations; Nasdaq Russell 2000 Index Fund (‘‘IWM’’), is the Act,6 the Exchange does not believe
ISE LLC; Notice of Filing and $0.01 for all quotations in options series that the proposed rule change will
Immediate Effectiveness of Proposed that are quoted at less than $3 per impose any burden on intermarket or
Rule Change To Extend the Penny contract and $0.05 for all quotations in intramarket competition that is not
Pilot Program options series that are quoted at $3 per necessary or appropriate in furtherance
contract or greater. QQQQ, SPY and of the purposes of the Act. Specifically,
June 28, 2018. IWM are quoted in $0.01 increments for the Exchange believes that, by extending
Pursuant to Section 19(b)(1) of the all options series. The Penny Pilot the expiration of the Penny Pilot
Securities Exchange Act of 1934 Program is currently scheduled to Program, the proposed rule change will
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 expire on June 30, 2018.3 The Exchange allow for further analysis of the Penny
notice is hereby given that on June 25, proposes to extend the Penny Pilot Pilot Program and a determination of
2018, Nasdaq ISE LLC (‘‘ISE’’ or Program through December 31, 2018, how the Penny Pilot Program should be
‘‘Exchange’’) filed with the Securities and to provide a revised date for adding structured in the future. In doing so, the
and Exchange Commission (‘‘SEC’’ or replacement issues to the Penny Pilot proposed rule change will also serve to
‘‘Commission’’) the proposed rule Program. The Exchange proposes that promote regulatory clarity and
change as described in Items I and II any Penny Pilot Program issues that consistency, thereby reducing burdens
below, which Items have been prepared have been delisted may be replaced on on the marketplace and facilitating
by the Exchange. The Commission is the second trading day following July 1, investor protection.
publishing this notice to solicit 2018. The replacement issues will be
comments on the proposed rule change selected based on trading activity for the C. Self-Regulatory Organization’s
from interested persons. most recent six month period excluding Statement on Comments on the
the month immediately preceding the Proposed Rule Change Received From
I. Self-Regulatory Organization’s Members, Participants, or Others
Statement of the Terms of Substance of replacement (i.e., beginning December
the Proposed Rule Change 1, 2017, and ending May 31, 2018). This No written comments were either
filing does not propose any substantive solicited or received.
The Exchange proposes to amend its changes to the Penny Pilot Program: All
rules to extend a pilot program to quote classes currently participating will III. Date of Effectiveness of the
and to trade certain options classes in remain the same and all minimum Proposed Rule Change and Timing for
penny increments (‘‘Penny Pilot increments will remain unchanged. The Commission Action
Program’’). Exchange believes the benefits to public
The text of the proposed rule change The Exchange has filed the proposed
customers and other market participants rule change pursuant to Section
is available on the Exchange’s website at who will be able to express their true
http://ise.cchwallstreet.com/, at the 19(b)(3)(A)(iii) of the Act 7 and Rule
prices to buy and sell options have been
principal office of the Exchange, and at 19b–4(f)(6) thereunder.8 Because the
demonstrated to outweigh any increase
the Commission’s Public Reference proposed rule change does not: (i)
in quote traffic.
Room. Significantly affect the protection of
2. Statutory Basis investors or the public interest; (ii)
II. Self-Regulatory Organization’s impose any significant burden on
Statement of the Purpose of, and The Exchange believes that the
proposed rule change is consistent with competition; and (iii) become operative
Statutory Basis for, the Proposed Rule prior to 30 days from the date on which
Change the requirements of the Act and the
rules and regulations thereunder that it was filed, or such shorter time as the
In its filing with the Commission, the are applicable to a national securities Commission may designate, if
Exchange included statements exchange, and, in particular, with the consistent with the protection of
sradovich on DSK3GMQ082PROD with NOTICES

concerning the purpose of and basis for requirements of Section 6(b) of the Act.4 investors and the public interest, the
the proposed rule change and discussed Specifically, the proposed rule change is proposed rule change has become
any comments it received on the consistent with Section 6(b)(5) of the effective pursuant to Section 19(b)(3)(A)
proposed rule change. The text of these
3 See Exchange Act Release No. 82357 (December 5 15 U.S.C. 78f(b)(5).
14 17 CFR 200.30–3(a)(12). 6 15 U.S.C. 78f(b)(8).
19, 2017), 82 FR 61065 (December 26, 2017) (SR–
1 15 U.S.C. 78s(b)(1). ISE–2017–107). 7 15 U.S.C. 78s(b)(3)(A)(iii).
2 17 CFR 240.19b–4. 4 15 U.S.C. 78f(b). 8 17 CFR 240.19b–4(f)(6).

VerDate Sep<11>2014 17:07 Jul 02, 2018 Jkt 244001 PO 00000 Frm 00127 Fmt 4703 Sfmt 4703 E:\FR\FM\03JYN1.SGM 03JYN1
Document Created: 2018-07-02 23:56:04
Document Modified: 2018-07-02 23:56:04
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 31241