83 FR 31806 - Self-Regulatory Organizations: Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 11.420 Concerning the Order Audit Trail System Requirements To Make Conforming and Technical Changes

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 131 (July 9, 2018)

Page Range		31806-31808
FR Document		2018-14551
Federal Register, Volume 83 Issue 131 (Monday, July 9, 2018)
[Federal Register Volume 83, Number 131 (Monday, July 9, 2018)]
[Notices]
[Pages 31806-31808]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-14551]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83586; File No. SR-IEX-2018-12]


Self-Regulatory Organizations: Investors Exchange LLC; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
Rule 11.420 Concerning the Order Audit Trail System Requirements To 
Make Conforming and Technical Changes

July 2, 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 June 21, 2018, the Investors Exchange LLC (``IEX'' 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 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\ 15 U.S.C. 78a.
    \3\ 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

    Pursuant to the provisions of Section 19(b)(1) under the Act,\4\ 
and Rule 19b-4 thereunder,\5\ the Exchange is filing with the 
Commission a proposed rule change to amend Rule 11.420 concerning the 
Order Audit Trail System (``OATS'') requirements to make conforming and 
technical changes. The Exchange has designated this rule change as 
``non-controversial'' under Section 19(b)(3)(A) of the Act \6\ and 
provided the Commission with the notice required by Rule 19b-4(f)(6) 
thereunder.\7\
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    \4\ 15 U.S.C. 78s(b)(1).
    \5\ 17 CFR 240.19b-4.
    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4.
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    The text of the proposed rule change is available at the Exchange's 
website at www.iextrading.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 the 
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 these statement [sic] may be examined 
at the places specified in Item IV below. The self-regulatory 
organization 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange is proposing to make three changes to Rule 11.420 
related to OATS reporting requirements to (1) amend Rule 11.420(a)(13) 
to permit members to route orders to two Reporting Members for a 
defined period of time provided certain conditions are met without 
losing the exception from the definition of ``Reporting Member'' in 
conformance to comparable provisions of the Financial Industry 
Regulatory Authority (``FINRA'') Rule 7410; (2) amend rule citations in 
Rule 11.420(c) to correct [sic] citation to FINRA Rule 7430 to FINRA 
Rule 4590; and (3) amend the rule reference in Rule 11.420(g) to 
correct the reference to FINRA Rule 7470A to FINRA Rule 7470. Each 
proposed change is described below.
First Change
    IEX Rule 11.420 imposes an obligation on Exchange Members to record 
in electronic form and report to FINRA on a daily basis certain

[[Page 31807]]

information with respect to orders originated, received, transmitted, 
modified, cancelled or executed by Exchange Members in securities 
traded on IEX. FINRA's OATS captures this order information and 
integrates it with quote and transaction information to create a time-
sequenced record of orders, quotes and transactions. This information 
is used by FINRA staff to conduct surveillance and investigations of 
IEX Members (and members of FINRA and certain other national securities 
exchanges) for potential violation of Exchange rules (or rules of 
another national securities exchange in the case of a member of such 
exchange), federal securities laws, and FINRA rules.
    In general, IEX Rule 11.420 applies to any IEX Member that is a 
``Reporting Member,'' which is defined in IEX Rule 11.420(a)(13) as a 
Member that receives or originates an order and has an obligation to 
record and report information under IEX Rule 11.420(d) and 11.420(e). 
However, under Rule 11.420(a)(13)(A) a Member is not considered a 
Reporting Member in connection with an order if the following four 
criteria are met:
     The Member engages in non-discretionary order routing 
process, pursuant to which it immediately routes, by electronic or 
other means, all of its orders to a single receiving Reporting Member;
     the Member does not direct and does not maintain control 
over subsequent routing or execution by the receiving Reporting Member;
     the receiving Reporting Member records and reports all 
information required under IEX Rules 11.420(d) and 11.420(e) with 
respect to the order; and
     the Member has a written agreement with the receiving 
Reporting Member specifying the respective functions and 
responsibilities of each party to effect full compliance with the 
requirements of IEX Rules 11.420(d) and 11.420(e).
    On May 12, 2014, FINRA amended FINRA Rule 7410(o)(1)(A) to allow a 
member to route its orders to two receiving Reporting Members, if two 
conditions were met.\8\ First, the orders are routed by the member to 
each receiving Reporting Member on a predetermined schedule approved by 
FINRA. Second, the FINRA member's orders are routed to two receiving 
Reporting Members pursuant to the schedule for a time period not to 
exceed one year. The rule change permits FINRA members to continue to 
rely on the exception from the definition of Reporting Member if, for a 
limited time, the member routes orders to two different Reporting 
Members, provided the criteria are met. FINRA noted in adopting the 
change that the rule was intended to accommodate introducing firms that 
transition to a different clearing firm over time and, during the 
transition, route their orders two different clearing firms, both of 
which report the introducing firm's information to OATS during the 
transition time.\9\ The Nasdaq Stock Market LLC (``Nasdaq'') recently 
amended its rules to conform to this FINRA rule change.\10\ The 
Exchange believes that this additional limited exception is appropriate 
for its Members, which likewise may encounter a transition to a 
clearing firm whereby it [sic] would no longer be eligible for the 
exception to the definition of Reporting Member. Accordingly, the 
Exchange is proposing to amend Rule 11.420(a)(13).
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    \8\ See Securities Exchange Act Release No. 72191 (May 20, 
2014), 79 FR 30219 (May 27, 2014) (SR-FINRA-2014-024).
    \9\ Id. At 30220.
    \10\ See Nasdaq Rule 7410A(o)(1)(A)(ii). See also Securities 
Exchange Act Release No. 83115 (April 26, 2018), 83 FR 19384 (May 2, 
2018) (SR-NASDAQ-2018-030).
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Second Change
    The Exchange is proposing to correct a rule citation in Rule 
11.420(c), which specifies the requirements for synchronization of 
Member business clocks, and states that IEX Members shall comply with 
FINRA Rule 7430 as if such Rule were part of IEX's Rules. There is no 
FINRA Rule 7430, but rather the appropriate FINRA rule to cite to is 
FINRA Rule 4590 ``Synchronization of Member Business Clocks.'' The 
Exchange also notes that Nasdaq recently made a comparable change to 
Nasdaq Rule 7430A.\11\ Accordingly, the Exchange proposes to correct 
the erroneous citation in Rule 11.420(c).
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    \11\ See supra note 8.
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Third Change
    The Exchange is proposing to correct a rule citation in Rule 
11.420(g), which provides that IEX may grant an exemption to the OATS 
order recording and data transmission requirements to a Member under 
specified circumstances. The title to the rule subsection incorrectly 
references FINRA Rule 7470A. There is no FINRA Rule 7470A, but rather 
the appropriate FINRA rule to reference is FINRA Rule 7470 ``Exemption 
to the Order Recording and Data Transmission Requirement.'' 
Accordingly, the Exchange proposes to correct the erroneous reference 
in Rule 11.420(g).
2. Statutory Basis
    IEX believes that the proposed rule change is consistent with the 
provisions of Section 6(b) \12\ of the Act in general, and furthers the 
objectives of Section 6(b)(5) of the Act \13\ in particular, in that it 
is designed to prevent fraudulent and manipulative acts and practices, 
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 harmonizing the Exchange's OATS rules with those of 
FINRA, on which they are based. Consequently, the proposed changes will 
conform Exchange rules to changes made to corresponding FINRA rules, 
thus promoting application of consistent regulatory standards with 
respect to rules that FINRA enforces pursuant to its regulatory 
services agreement with the Exchange. With respect to the proposed 
amendment to Rule 11.420(a)(13)(A), the exemption will provide Exchange 
members the same flexibility to transition to a new clearing firm that 
FINRA members enjoy. The rule is intended to accommodate introducing 
firms that transition to a different clearing firm over time and, 
during the transition, route their orders to two different clearing 
firms, both of which report the introducing firm's information to OATS 
during the transition time. Further, the change will also align the 
Exchange rulebook with FINRA's in this regard, thereby eliminating 
potential complexity from FINRA's work under a regulatory services 
agreement with the Exchange.
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    \12\ 15 U.S.C. 78f.
    \13\ 15 U.S.C. 78f(b)(5).
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    With respect to the technical corrections to Rules 11.420(c) and 
11.420(g), the Exchange believes that these changes are consistent with 
the Act because they will prevent investor confusion that may be caused 
by incorrect rule citations in the Rules.

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

    IEX does not believe that the proposed rule change will result in 
any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act. The proposed changes align the 
Exchange's rules with those of FINRA, which will assist it in its 
oversight work done pursuant to a regulatory services agreement, and 
makes [sic] technical corrections to the rules. Consequently, the 
Exchange does not believe that the

[[Page 31808]]

proposed changes implicate competition at all.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

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 \14\ and Rule 19b-4(f)(6) thereunder.\15\
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    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \16\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \17\ 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 proposal may become operative upon filing. The Commission does not 
believe that any new or novel issues are raised by the proposal; the 
proposal aligns IEX's rule with the rule of Nasdaq and FINRA. The 
Commission believes the waiver of the operative delay is consistent 
with the protection of investors and the public interest. Therefore, 
the Commission hereby waives the operative delay and designates the 
proposal operative upon filing.\18\
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    \16\ Id.
    \17\ 17 CFR 240.19b-4(f)(6)(iii).
    \18\ 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 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-IEX-2018-12 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-IEX-2018-12. This file 
number should be included in 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. Copies of the filing will also be available for inspection and 
copying at the IEX's principal office and on its internet website at 
www.iextrading.com. 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-IEX-2018-12 
and should be submitted on or before July 30, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-14551 Filed 7-6-18; 8:45 am]
 BILLING CODE P
31806 Federal Register / Vol. 83, No. 131 / Monday, July 9, 2018 / Notices

did not receive comment letters Reference Room, 100 F Street NE, with the Commission a proposed rule
concerning the rule change. Washington, DC 20549, on official change to amend Rule 11.420
business days between the hours of concerning the Order Audit Trail
III. Date of Effectiveness of the
10:00 a.m. and 3:00 p.m. Copies of such System (‘‘OATS’’) requirements to make
Proposed Rule Change and Timing for
filing also will be available for conforming and technical changes. The
Commission Action Exchange has designated this rule
inspection and copying at the principal
On June 18, 2018, the CFTC notified office of NFA. All comments received change as ‘‘non-controversial’’ under
NFA of its determination not to review will be posted without change. Persons Section 19(b)(3)(A) of the Act 6 and
the proposed rule change.9 The submitting comments are cautioned that provided the Commission with the
proposed rule change will become we do not redact or edit personal notice required by Rule 19b–4(f)(6)
effective on July 18, 2018. identifying information from comment thereunder.7
At any time within 60 days of the date submissions. You should submit only The text of the proposed rule change
of effectiveness of the proposed rule information that you wish to make is available at the Exchange’s website at
change, the Commission, after publicly available. All submissions www.iextrading.com, at the principal
consultation with the CFTC, may should refer to File Number SR–NFA– office of the Exchange, and at the
summarily abrogate the proposed rule 2018–03 and should be submitted on or Commission’s Public Reference Room.
change and require that the proposed before July 30, 2018. II. Self-Regulatory Organization’s
rule change be refiled in accordance
For the Commission, by the Division of Statement of the Purpose of, and the
with the provisions of Section 19(b)(1) Trading and Markets, pursuant to delegated Statutory Basis for, the Proposed Rule
of the Exchange Act.10 authority.11 Change
IV. Solicitation of Comments Eduardo A. Aleman,
In its filing with the Commission, the
Interested persons are invited to Assistant Secretary. self-regulatory organization included
submit written data, views, and [FR Doc. 2018–14669 Filed 7–6–18; 8:45 am] statements concerning the purpose of
arguments concerning the foregoing, BILLING CODE 8011–01–P and basis for the proposed rule change
including whether the proposed rule and discussed any comments it received
change is consistent with the Exchange on the proposed rule change. The text
Act. Comments may be submitted by SECURITIES AND EXCHANGE of these statement [sic] may be
any of the following methods: COMMISSION examined at the places specified in Item
[Release No. 34–83586; File No. SR–IEX– IV below. The self-regulatory
Electronic Comments 2018–12] organization has prepared summaries,
• Use the Commission’s internet set forth in Sections A, B, and C below,
comment form (http://www.sec.gov/ Self-Regulatory Organizations: of the most significant aspects of such
rules/sro.shtml); or Investors Exchange LLC; Notice of statements.
• Send an email to rule-comments@ Filing and Immediate Effectiveness of
a Proposed Rule Change To Amend A. Self-Regulatory Organization’s
sec.gov. Please include File Number SR–
Rule 11.420 Concerning the Order Statement of the Purpose of, and the
NFA–2018–03 on the subject line.
Audit Trail System Requirements To Statutory Basis for, the Proposed Rule
Paper Comments Change
Make Conforming and Technical
• Send paper comments in triplicate Changes 1. Purpose
to Secretary, Securities and Exchange
July 2, 2018. The Exchange is proposing to make
Commission, 100 F Street NE,
Pursuant to Section 19(b)(1) 1 of the three changes to Rule 11.420 related to
Washington, DC 20549–1090.
Securities Exchange Act of 1934 (the OATS reporting requirements to (1)
All submissions should refer to File amend Rule 11.420(a)(13) to permit
Number SR–NFA–2018–03. This file ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on June 21, members to route orders to two
number should be included on the Reporting Members for a defined period
subject line if email is used. To help the 2018, the Investors Exchange LLC
(‘‘IEX’’ or the ‘‘Exchange’’) filed with the of time provided certain conditions are
Commission process and review your met without losing the exception from
comments more efficiently, please use Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule the definition of ‘‘Reporting Member’’ in
only one method. The Commission will conformance to comparable provisions
post all comments on the Commission’s change as described in Items I and II
below, which Items have been prepared of the Financial Industry Regulatory
internet website (http://www.sec.gov/ Authority (‘‘FINRA’’) Rule 7410; (2)
rules/sro.shtml). Copies of the by the self-regulatory organization. The
Commission is publishing this notice to amend rule citations in Rule 11.420(c)
submission, all subsequent to correct [sic] citation to FINRA Rule
amendments, all written statements solicit comments on the proposed rule
change from interested persons. 7430 to FINRA Rule 4590; and (3)
with respect to the proposed rule amend the rule reference in Rule
change that are filed with the I. Self-Regulatory Organization’s 11.420(g) to correct the reference to
Commission, and all written Statement of the Terms of Substance of FINRA Rule 7470A to FINRA Rule 7470.
communications relating to the the Proposed Rule Change Each proposed change is described
proposed rule change between the Pursuant to the provisions of Section below.
Commission and any person, other than 19(b)(1) under the Act,4 and Rule 19b– First Change
sradovich on DSK3GMQ082PROD with NOTICES

those that may be withheld from the 4 thereunder,5 the Exchange is filing
public in accordance with the IEX Rule 11.420 imposes an
provisions of 5 U.S.C. 552, will be 11 17 CFR 200.30–3(a)(73). obligation on Exchange Members to
available for website viewing and 1 15 U.S.C. 78s(b)(1). record in electronic form and report to
printing in the Commission’s Public 2 15 U.S.C. 78a. FINRA on a daily basis certain
3 17 CFR 240.19b–4.
9 See Letter, Supra note 3. 4 15 U.S.C. 78s(b)(1). 6 15 U.S.C. 78s(b)(3)(A).
10 15 U.S.C. 78s(b)(1). 5 17 CFR 240.19b–4. 7 17 CFR 240.19b–4.

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information with respect to orders FINRA members to continue to rely on 2. Statutory Basis
originated, received, transmitted, the exception from the definition of IEX believes that the proposed rule
modified, cancelled or executed by Reporting Member if, for a limited time, change is consistent with the provisions
Exchange Members in securities traded the member routes orders to two of Section 6(b) 12 of the Act in general,
on IEX. FINRA’s OATS captures this different Reporting Members, provided and furthers the objectives of Section
order information and integrates it with the criteria are met. FINRA noted in
6(b)(5) of the Act 13 in particular, in that
quote and transaction information to adopting the change that the rule was
it is designed to prevent fraudulent and
create a time-sequenced record of intended to accommodate introducing
manipulative acts and practices, to
orders, quotes and transactions. This firms that transition to a different
promote just and equitable principles of
information is used by FINRA staff to clearing firm over time and, during the
trade, to remove impediments to and
conduct surveillance and investigations transition, route their orders two
perfect the mechanism of a free and
of IEX Members (and members of different clearing firms, both of which
open market and a national market
FINRA and certain other national report the introducing firm’s
system, and, in general, to protect
securities exchanges) for potential information to OATS during the
investors and the public interest by
violation of Exchange rules (or rules of transition time.9 The Nasdaq Stock
harmonizing the Exchange’s OATS rules
another national securities exchange in Market LLC (‘‘Nasdaq’’) recently
amended its rules to conform to this with those of FINRA, on which they are
the case of a member of such exchange), based. Consequently, the proposed
federal securities laws, and FINRA FINRA rule change.10 The Exchange
believes that this additional limited changes will conform Exchange rules to
rules. changes made to corresponding FINRA
In general, IEX Rule 11.420 applies to exception is appropriate for its
Members, which likewise may rules, thus promoting application of
any IEX Member that is a ‘‘Reporting
encounter a transition to a clearing firm consistent regulatory standards with
Member,’’ which is defined in IEX Rule
whereby it [sic] would no longer be respect to rules that FINRA enforces
11.420(a)(13) as a Member that receives
eligible for the exception to the pursuant to its regulatory services
or originates an order and has an
definition of Reporting Member. agreement with the Exchange. With
obligation to record and report
Accordingly, the Exchange is proposing respect to the proposed amendment to
information under IEX Rule 11.420(d)
to amend Rule 11.420(a)(13). Rule 11.420(a)(13)(A), the exemption
and 11.420(e). However, under Rule
will provide Exchange members the
11.420(a)(13)(A) a Member is not Second Change same flexibility to transition to a new
considered a Reporting Member in
The Exchange is proposing to correct clearing firm that FINRA members
connection with an order if the
a rule citation in Rule 11.420(c), which enjoy. The rule is intended to
following four criteria are met:
specifies the requirements for accommodate introducing firms that
• The Member engages in non-
synchronization of Member business transition to a different clearing firm
discretionary order routing process,
clocks, and states that IEX Members over time and, during the transition,
pursuant to which it immediately
shall comply with FINRA Rule 7430 as route their orders to two different
routes, by electronic or other means, all
if such Rule were part of IEX’s Rules. clearing firms, both of which report the
of its orders to a single receiving
There is no FINRA Rule 7430, but rather introducing firm’s information to OATS
Reporting Member;
• the Member does not direct and the appropriate FINRA rule to cite to is during the transition time. Further, the
does not maintain control over FINRA Rule 4590 ‘‘Synchronization of change will also align the Exchange
subsequent routing or execution by the Member Business Clocks.’’ The rulebook with FINRA’s in this regard,
receiving Reporting Member; Exchange also notes that Nasdaq thereby eliminating potential
• the receiving Reporting Member recently made a comparable change to complexity from FINRA’s work under a
records and reports all information Nasdaq Rule 7430A.11 Accordingly, the regulatory services agreement with the
required under IEX Rules 11.420(d) and Exchange proposes to correct the Exchange.
11.420(e) with respect to the order; and erroneous citation in Rule 11.420(c). With respect to the technical
• the Member has a written corrections to Rules 11.420(c) and
Third Change
agreement with the receiving Reporting 11.420(g), the Exchange believes that
The Exchange is proposing to correct these changes are consistent with the
Member specifying the respective
a rule citation in Rule 11.420(g), which Act because they will prevent investor
functions and responsibilities of each
provides that IEX may grant an confusion that may be caused by
party to effect full compliance with the
exemption to the OATS order recording incorrect rule citations in the Rules.
requirements of IEX Rules 11.420(d) and
and data transmission requirements to a
11.420(e). Member under specified circumstances. B. Self-Regulatory Organization’s
On May 12, 2014, FINRA amended Statement on Burden on Competition
The title to the rule subsection
FINRA Rule 7410(o)(1)(A) to allow a
incorrectly references FINRA Rule IEX does not believe that the
member to route its orders to two
7470A. There is no FINRA Rule 7470A, proposed rule change will result in any
receiving Reporting Members, if two
but rather the appropriate FINRA rule to burden on competition that is not
conditions were met.8 First, the orders reference is FINRA Rule 7470
are routed by the member to each necessary or appropriate in furtherance
‘‘Exemption to the Order Recording and of the purposes of the Act. The
receiving Reporting Member on a Data Transmission Requirement.’’
predetermined schedule approved by proposed changes align the Exchange’s
Accordingly, the Exchange proposes to rules with those of FINRA, which will
FINRA. Second, the FINRA member’s correct the erroneous reference in Rule
sradovich on DSK3GMQ082PROD with NOTICES

orders are routed to two receiving assist it in its oversight work done
11.420(g). pursuant to a regulatory services
Reporting Members pursuant to the
schedule for a time period not to exceed agreement, and makes [sic] technical
9 Id.
At 30220.
one year. The rule change permits 10 See
corrections to the rules. Consequently,
Nasdaq Rule 7410A(o)(1)(A)(ii). See also
Securities Exchange Act Release No. 83115 (April
the Exchange does not believe that the
8 See Securities Exchange Act Release No. 72191 26, 2018), 83 FR 19384 (May 2, 2018) (SR–
(May 20, 2014), 79 FR 30219 (May 27, 2014) (SR– NASDAQ–2018–030). 12 15 U.S.C. 78f.
FINRA–2014–024). 11 See supra note 8. 13 15 U.S.C. 78f(b)(5).

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31808 Federal Register / Vol. 83, No. 131 / Monday, July 9, 2018 / Notices

proposed changes implicate competition change should be approved or For the Commission, by the Division of
at all. disapproved. Trading and Markets, pursuant to delegated
authority.19
C. Self-Regulatory Organization’s IV. Solicitation of Comments Eduardo A. Aleman,
Statement on Comments on the Assistant Secretary.
Proposed Rule Change Received From Interested persons are invited to
[FR Doc. 2018–14551 Filed 7–6–18; 8:45 am]
Members, Participants, or Others submit written data, views and
arguments concerning the foregoing, BILLING CODE P
Written comments were neither including whether the proposed rule
solicited nor received. change is consistent with the Act.
SECURITIES AND EXCHANGE
III. Date of Effectiveness of the Comments may be submitted by any of
COMMISSION
Proposed Rule Change and Timing for the following methods:
Commission Action [Investment Company Act Release No.
Electronic Comments 33146; 812–14921]
Because the proposed rule change
does not (i) significantly affect the • Use the Commission’s internet
Altaba Inc.
protection of investors or the public comment form (http://www.sec.gov/
interest; (ii) impose any significant rules/sro.shtml); or July 3, 2018.
burden on competition; and (iii) become • Send an email to rule-comments@ AGENCY: Securities and Exchange
operative for 30 days from the date on sec.gov. Please include File Number SR– Commission (‘‘Commission’’).
which it was filed, or such shorter time IEX–2018–12 on the subject line. ACTION: Notice.
as the Commission may designate, it has
become effective pursuant to Section Paper Comments Notice of application for an order
19(b)(3)(A) of the Act 14 and Rule 19b– under section 17(b) of the Investment
• Send paper comments in triplicate Company Act of 1940 (the ‘‘Act’’) for an
4(f)(6) thereunder.15
to Brent J. Fields, Secretary, Securities exemption from section 17(a) of the Act.
A proposed rule change filed and Exchange Commission, 100 F Street
pursuant to Rule 19b–4(f)(6) under the SUMMARY OF APPLICATION: Applicant
NE, Washington, DC 20549–1090.
Act 16 normally does not become seeks an order that would permit in-
operative for 30 days after the date of its All submissions should refer to File kind repurchases of shares of the Fund
filing. However, Rule 19b–4(f)(6)(iii) 17 Number SR–IEX–2018–12. This file held by certain affiliated stockholders of
permits the Commission to designate a number should be included in the the Fund.
shorter time if such action is consistent subject line if email is used. To help the APPLICANT: Altaba Inc. (the ‘‘Fund’’).
with the protection of investors and the Commission process and review your FILING DATES: The application was filed
public interest. The Exchange has asked comments more efficiently, please use on June 14, 2018, and amended on June
the Commission to waive the 30-day only one method. The Commission will 28, 2018.
operative delay so that the proposal may post all comments on the Commission’s HEARING OR NOTIFICATION OF HEARING: An
become operative upon filing. The internet website (http://www.sec.gov/ order granting the requested relief will
Commission does not believe that any rules/sro.shtml). Copies of the be issued unless the Commission orders
new or novel issues are raised by the submission, all subsequent a hearing. Interested persons may
proposal; the proposal aligns IEX’s rule amendments, all written statements request a hearing by writing to the
with the rule of Nasdaq and FINRA. The with respect to the proposed rule Commission’s Secretary and serving
Commission believes the waiver of the change that are filed with the applicant with a copy of the request,
operative delay is consistent with the Commission, and all written personally or by mail. Hearing requests
protection of investors and the public communications relating to the should be received by the Commission
interest. Therefore, the Commission proposed rule change between the by 5:30 p.m. on July 30, 2018, and
hereby waives the operative delay and Commission and any person, other than should be accompanied by proof of
designates the proposal operative upon those that may be withheld from the service on applicant, in the form of an
filing.18 public in accordance with the affidavit or, for lawyers, a certificate of
At any time within 60 days of the provisions of 5 U.S.C. 552, will be service. Pursuant to rule 0–5 under the
filing of the proposed rule change, the available for website viewing and Act, hearing requests should state the
Commission summarily may printing in the Commission’s Public nature of the writer’s interest, any facts
temporarily suspend such rule change if Reference Room, 100 F Street NE, bearing upon the desirability of a
it appears to the Commission that such Washington, DC 20549. Copies of the hearing on the matter, the reason for the
action is necessary or appropriate in the filing will also be available for request, and the issues contested.
public interest, for the protection of inspection and copying at the IEX’s Persons who wish to be notified of a
investors, or otherwise in furtherance of principal office and on its internet hearing may request notification by
the purposes of the Act. If the writing to the Commission’s Secretary.
website at www.iextrading.com. All
Commission takes such action, the
comments received will be posted ADDRESSES: Secretary, U.S. Securities
Commission shall institute proceedings
without change. Persons submitting and Exchange Commission, 100 F Street
to determine whether the proposed rule
comments are cautioned that we do not NE, Washington, DC 20549–1090.
redact or edit personal identifying Applicant, 140 East 45th Street, 15th
sradovich on DSK3GMQ082PROD with NOTICES

14 15 U.S.C. 78s(b)(3)(A).
15 17 CFR 240.19b–4(f)(6).
information from comment submissions. Floor, New York, New York 10017.
16 Id. You should submit only information FOR FURTHER INFORMATION CONTACT:
17 17 CFR 240.19b–4(f)(6)(iii). that you wish to make available Elizabeth G. Miller, Senior Counsel, at
18 For purposes only of waiving the 30-day publicly. All submissions should refer (202) 551–8707 or Aaron T. Gilbride,
operative delay, the Commission has also to File Number SR–IEX–2018–12 and Branch Chief, at (202) 551–6825 (Chief
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
should be submitted on or before July
15 U.S.C. 78c(f). 30, 2018. 19 17 CFR 200.30–3(a)(12).

VerDate Sep<11>2014 18:00 Jul 06, 2018 Jkt 244001 PO 00000 Frm 00094 Fmt 4703 Sfmt 4703 E:\FR\FM\09JYN1.SGM 09JYN1
Document Created: 2018-07-07 00:42:55
Document Modified: 2018-07-07 00:42:55
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 31806