83 FR 34623 - Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Improvement Orders Entered Into the Price Improvement Mechanism
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 140 (July 20, 2018)
Federal Register Volume 83, Issue 140 (July 20, 2018)
| Page Range | 34623-34625 | |
| FR Document | 2018-15501 |
[Federal Register Volume 83, Number 140 (Friday, July 20, 2018)] [Notices] [Pages 34623-34625] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-15501] [[Page 34623]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83641; File No. SR-GEMX-2018-25] Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Improvement Orders Entered Into the Price Improvement Mechanism July 16, 2018. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on July 5, 2018, Nasdaq GEMX, LLC (``GEMX'' or ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``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. --------------------------------------------------------------------------- \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 amend GEMX Rule 723, entitled ``Price Improvement Mechanism for Crossing Transactions.'' 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 GEMX proposes to amend Rule 723, entitled ``Price Improvement Mechanism for Crossing Transactions.'' Specifically, the Exchange proposes to amend Rule 723(c)(2) to expand the types of Improvement Orders \3\ that may be entered into the Price Improvement Mechanism or ``PIM.'' The Exchange also proposes to amend Rule 723(d)(1)-(3) to more specifically clarify terms such as ``orders'' and ``responses'' in that section. --------------------------------------------------------------------------- \3\ Rule 723(c)(1) defines an Improvement Order. The Exchange will designate via circular a time of no less than 100 milliseconds and no more than 1 second for Members to indicate the size and price at which they want to participate in the execution of the Agency Order (``Improvement Orders''). --------------------------------------------------------------------------- Background The Exchange adopted PIM as part of its application to be registered as a national securities exchange under its previous name of Topaz Exchange, LLC.\4\ In approving PIM, the Commission noted that it was largely based on a similar functionality offered by the International Securities Exchange, LLC (now Nasdaq ISE, LLC) (``ISE'').\5\ ISE received approval to establish its PIM in 2004 that would allow an ISE Electronic Access Member (``EAM'') to enter matched trades (``Crossing Transactions'').\6\ As noted in the Adopting Filing, a Crossing Transaction would be comprised of an order that the EAM represents as agent (``Agency Order'') and an order that is executable against the Agency Order for the full size of the Agency Order (the ``Counter-Side Order'').\7\ In the Adopting Filing, ISE specified in Rule 723(c)(2) that Improvement Orders may be for the account of a Public Customer or for the Member's own account.\8\ The Adopting Filing noted that ISE would broadcast Crossing Orders to all Members.\9\ Further, it was noted in the Adopting Filing that during a three second auction, all ISE Members could enter ``Improvement Orders,'' in penny increments, to improve the price of the Agency Order.\10\ The Adopting Filing stated that Improvement Orders may be for the account of a Public Customer or for the Member's own account.\11\ Finally, the Adopting Filing noted that during the exposure period, the aggregate size of the best prices, including the Counter-Side Order, Improvement Orders, and any change to either, would continually be updated and broadcast to all Members.\12\ --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release No. 70050 (July 26, 2013), 78 FR 46622 (August 1, 2013) (File No. 10-209) (``Exchange Approval Order''). The Exchange subsequently changed its name to ISE Gemini and then later Nasdaq GEMX. \5\ Id. \6\ See Securities Exchange Act Release No. 50819 (December 8, 2004), 69 FR 75093 (December 15, 2004) (SR-ISE-2003-06) (Order Granting Approval of Proposed Rule Change and Amendment No. 1 Thereto and Notice of Filing and Order Granting Accelerated Approval to Amendments No. 2 and 3 Thereto by the International Securities Exchange, Inc. To Establish Rules Implementing a Price Improvement Mechanism) (``Adopting Filing''). \7\ The Counter-Side Order may represent interest for the EAM's own account, or interest the EAM has solicited from one or more other parties, or a combination of both. \8\ Id. \9\ The broadcast message would include the series, price, and size of the Agency Order and whether it is to buy or sell. \10\ The ISE would broadcast Improvement Orders to all Members. Crossing Transactions and Improvement Orders would not be displayed in the ISE BBO and would not be disseminated to the Options Price Reporting Authority. \11\ GEMX Rule 723(c)(2). \12\ GEMX Rule 723(c)(4). --------------------------------------------------------------------------- Rule 723(c)(2) With respect to the current limitation of Improvement Orders for the account of a Public Customer or for the Member's own account, ISE noted in its Adopting Filing that ``all ISE Members would be permitted to participate in a PIM . . . unrelated orders could compete in standard increments to trade with the Agency Order in the PIM. Such unrelated orders could include agency orders on behalf of Public Customers, market makers on other exchanges, and non-ISE member broker- dealers, as well as non-Improvement orders submitted by ISE members.'' At this time, the Exchange proposes to permit any GEMX Member to enter an Improvement Order marked as a response to a PIM auction similar to Nasdaq PHLX LLC (``Phlx'') \13\ and Nasdaq BX, Inc. (``BX'') \14\ rules. The Exchange no longer desires to limit Members who may enter Improvement Orders into PIM to simply those orders for the account of a Public Customer or for the Member's own account. The Exchange desires to expand the types of orders that may be entered as Improvement Orders similar to Phlx and BX. The Exchange is therefore removing this limitation in Rule 723(c)(2) so that the proposed rule text would read: ``Improvement Orders may be entered by all Members in one-cent increments at the same price as the Crossing Transaction or at an improved price for the Agency Order, and for any size up to the size of the Agency Order.'' --------------------------------------------------------------------------- \13\ Phlx Rule 1087 permits any member to submit for execution an order it represents as agent on behalf of a public customer, broker-dealer, or any other entity (``PIXL Order''). \14\ BX Rules at Chapter VI, Section 9 provides that ``A Participant may electronically submit for execution an order it represents as agent on behalf of a Public Customer, broker dealer, or any other entity (``PRISM Order''). --------------------------------------------------------------------------- Rule 723(d)(1)-(3) The Exchange proposes to amend GEMX Rule 723(d)(1)-(3), which [[Page 34624]] explains the manner in which a PIM Order shall be allocated to conform this text to the change which is proposed in Rule 723(c)(2). Rule 723(d)(1) currently provides, ``At a given price, Priority Customer interest is executed in full before Professional Orders \15\ and any other interest of Members (i.e., proprietary interest from Electronic Access Members and Exchange market makers).'' The Exchange proposes to expand upon the term interest by adopting the defined terms ``Priority Customer Interest'' for Priority Customer Orders and Improvement Orders from Priority Customers, and ``Professional Interest'' for Professional Orders, Improvement Orders from non-Priority Customers, and Market Maker quotes. The Exchange believes that adding these defined terms would clarify what is meant by interest. As proposed, Professional Interest identifies all orders (including Improvement Orders) that are not for the account of a Priority Customer as well as Market Maker quotes, thereby incorporating the current reference to ``Professional Orders'' within its terms and eliminating the necessity to include the current rule text which provides, ``any other interest of Members (i.e., proprietary interest from Electronic Access Members and Exchange market makers).'' --------------------------------------------------------------------------- \15\ GEMX Rule 100(a)(52) provides the term ``Professional Order'' means an order that is for the account of a person or entity that is not a Priority Customer. --------------------------------------------------------------------------- The Exchange proposes to amend Rule 723(d)(2) which currently provides, ``After Priority Customer interest at a given price, Professional Orders and Members' interest will participate in the execution of the Agency Order based upon the percentage of the total number of contracts available at the price that is represented by the size of the Members' interest.'' The Exchange proposes to replace the reference to ``Priority Customer interest'' with the defined term ``Priority Customer Interest'' proposed to be added in Rule 723(d)(1), as described above. The Exchange also proposes to change ``Professional Orders'' to ``Professional Interest'' which will be defined in Rule 723(d)(1) to include Professional Orders as well as Improvement Orders from non-Priority Customers and Market Maker quotes. Since Professional Interest is defined in this manner, the Exchange also proposes to remove the language referring to ``Members' interest'' from the sentence because Professional Interest would include all orders from non-Priority Customers and Market Maker quotes. The Exchange proposes to amend Rule 723(d)(3) to again remove the rule text relating to ``Members' interest'' and instead utilize the defined ``Professional Interest'' term consistent with proposed changes to Rule 723(d)(1) and (2). The Exchange also proposes to make similar changes to add the term ``Professional Interest'' to the sentence in Rule 723(d)(3) that currently reads: ``Thereafter, all other orders, Responses, and quotes at the price point will participate in the execution of the Agency Order based upon the percentage of the total number of contracts available at the price that is represented by the size of the order, Response or quote.'' In particular, the language related to ``other orders, Responses, and quotes'' in this sentence will be replaced with ``Professional Interest'' since this term includes all orders from non-Priority Customers and Market Maker quotes, as described above. The Exchange notes that the references in this sentence to ``Responses,'' currently an undefined term, should instead refer to the defined term ``Improvement Orders,'' and the proposed changes should therefore clarify how Rule 723(d)(3) will apply. Finally, the Exchange proposes to replace the word ``Priority Customer Orders'' with ``Priority Customer Interest'' as defined in proposed Rule 723(d)(1) to clarify that those orders as well as responses (i.e., Improvement Orders from Priority Customers) are applicable. The proposed amendments add more specificity to the exact order/quotes and responses which apply in this section. The amendments to Rule 723(d)(1)-(3) conform to the proposed amendment to Rule 723(c)(2) and other proposed amendments as described above which do not change the manner in which PIM operates today, rather the other word changes seek to bring specificity to the manner in which order, quotes and responses are treated. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\16\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\17\ 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. --------------------------------------------------------------------------- \16\ 15 U.S.C. 78f(b). \17\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange's proposal to amend Rule 723(c)(2) seeks to broaden the types of orders that may be submitted as Improvement Orders into PIM. As ISE previously noted, in its Adopting Filing, all Members are able to participate in a PIM today as an unrelated order that rests on the Order Book. Unrelated orders that rest on the Order Book can participate in PIM and trade with the Agency Order in the PIM. The Exchange proposes to allow all Members to submit Improvement Orders directly into PIM to provide an even greater number of GEMX Members to more directly participate in PIM and provide price improvement. The Exchange's proposal is consistent with the Act because allowing a greater number of Members to directly respond with an Improvement Order in a PIM will increase the likelihood of price improvement in that auction thereby removing impediments to and perfecting the mechanism of a free and open market and a national market system. This approach will enable greater participation in PIM auctions. The Exchange's proposal to amend Rule 723(d) conforms the text with changes made with respect to the proposal to amend Rule 723(c)(2) for consistency. The proposed changes to remove the more generic ``Members' interest'' and instead substitute very specific terms to define interest and add quotes provide more specificity as to the manner in which interest entered into PIM will be allocated. The Exchange's proposed amendments to Rule 723(d)(1)-(3) are consistent with the Act because the amendments seek to conform the rule text to the proposed Rule 723(c)(2) amendment and describe in greater detail how interest will be allocated by defining terms and eligible interest and this transparency benefits investors and the public interest. 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 competition not necessary or appropriate in furtherance of the purposes of the Act. The Exchange's proposal to amend Rule 723(c)(2) to broaden the types of orders that may be submitted as Improvement Orders into PIM does not unduly burden competition because all Members will be permitted to submit Improvement Orders directly into PIM to provide an even greater number of GEMX Members to more directly participate in PIM. The amendments to Rule 723(d) will conform the rule text and bring clarity to the allocation method for PIM. [[Page 34625]] 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 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 \18\ and Rule 19b-4(f)(6) thereunder.\19\ --------------------------------------------------------------------------- \18\ 15 U.S.C. 78s(b)(3)(A). \19\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b- 4(f)(6)(iii), the Exchange provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and the 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. --------------------------------------------------------------------------- A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the Act \20\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \21\ 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 it may allow all Members to submit Improvement Orders directly into PIM to provide an even greater number of GEMX Members an opportunity to more directly participate in PIM and provide price improvement. The Exchange states that it will issue an Options Trader Alert to notify Members of the date within which this functionality will be implemented. The Commission believes the waiver of the operative delay is consistent with the protection of investors and the public interest. Accordingly, the Commission hereby waives the operative delay and designates the proposed rule change operative upon filing.\22\ --------------------------------------------------------------------------- \20\ 17 CFR 240.19b-4(f)(6). \21\ 17 CFR 240.19b-4(f)(6)(iii). \22\ 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). --------------------------------------------------------------------------- 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 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 [email protected]. Please include File Number SR-GEMX-2018-25 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-GEMX-2018-25. 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 such 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-2018-25, and should be submitted on or before August 10, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\23\ --------------------------------------------------------------------------- \23\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-15501 Filed 7-19-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 140 / Friday, July 20, 2018 / Notices 34623
SECURITIES AND EXCHANGE Mechanism for Crossing Transactions.’’ Agency Order.10 The Adopting Filing
COMMISSION Specifically, the Exchange proposes to stated that Improvement Orders may be
amend Rule 723(c)(2) to expand the for the account of a Public Customer or
[Release No. 34–83641; File No. SR–GEMX–
2018–25]
types of Improvement Orders 3 that may for the Member’s own account.11
be entered into the Price Improvement Finally, the Adopting Filing noted that
Self-Regulatory Organizations; Nasdaq Mechanism or ‘‘PIM.’’ The Exchange during the exposure period, the
GEMX, LLC; Notice of Filing and also proposes to amend Rule 723(d)(1)– aggregate size of the best prices,
Immediate Effectiveness of Proposed (3) to more specifically clarify terms including the Counter-Side Order,
Rule Change Relating to Improvement such as ‘‘orders’’ and ‘‘responses’’ in Improvement Orders, and any change to
Orders Entered Into the Price that section. either, would continually be updated
Improvement Mechanism and broadcast to all Members.12
Background
July 16, 2018. The Exchange adopted PIM as part of Rule 723(c)(2)
Pursuant to Section 19(b)(1) of the its application to be registered as a With respect to the current limitation
Securities Exchange Act of 1934 (the national securities exchange under its of Improvement Orders for the account
‘‘Act’’),1 and Rule 19b–4 thereunder,2 previous name of Topaz Exchange, of a Public Customer or for the
notice is hereby given that on July 5, LLC.4 In approving PIM, the Member’s own account, ISE noted in its
2018, Nasdaq GEMX, LLC (‘‘GEMX’’ or Commission noted that it was largely Adopting Filing that ‘‘all ISE Members
‘‘Exchange’’) filed with the Securities based on a similar functionality offered would be permitted to participate in a
and Exchange Commission (‘‘SEC’’ or by the International Securities PIM . . . unrelated orders could
‘‘Commission’’) the proposed rule Exchange, LLC (now Nasdaq ISE, LLC) compete in standard increments to trade
change as described in Items I and II (‘‘ISE’’).5 ISE received approval to with the Agency Order in the PIM. Such
below, which Items have been prepared establish its PIM in 2004 that would unrelated orders could include agency
by the Exchange. The Commission is allow an ISE Electronic Access Member orders on behalf of Public Customers,
publishing this notice to solicit (‘‘EAM’’) to enter matched trades market makers on other exchanges, and
comments on the proposed rule change (‘‘Crossing Transactions’’).6 As noted in non-ISE member broker-dealers, as well
from interested persons. the Adopting Filing, a Crossing as non-Improvement orders submitted
Transaction would be comprised of an by ISE members.’’
I. Self-Regulatory Organization’s At this time, the Exchange proposes to
order that the EAM represents as agent
Statement of the Terms of Substance of permit any GEMX Member to enter an
(‘‘Agency Order’’) and an order that is
the Proposed Rule Change Improvement Order marked as a
executable against the Agency Order for
The Exchange proposes to amend the full size of the Agency Order (the response to a PIM auction similar to
GEMX Rule 723, entitled ‘‘Price ‘‘Counter-Side Order’’).7 In the Nasdaq PHLX LLC (‘‘Phlx’’) 13 and
Improvement Mechanism for Crossing Adopting Filing, ISE specified in Rule Nasdaq BX, Inc. (‘‘BX’’) 14 rules. The
Transactions.’’ 723(c)(2) that Improvement Orders may Exchange no longer desires to limit
The text of the proposed rule change be for the account of a Public Customer Members who may enter Improvement
is available on the Exchange’s website at or for the Member’s own account.8 The Orders into PIM to simply those orders
http://nasdaqgemx.cchwallstreet.com/, Adopting Filing noted that ISE would for the account of a Public Customer or
at the principal office of the Exchange, broadcast Crossing Orders to all for the Member’s own account. The
and at the Commission’s Public Members.9 Further, it was noted in the Exchange desires to expand the types of
Reference Room. Adopting Filing that during a three orders that may be entered as
II. Self-Regulatory Organization’s second auction, all ISE Members could Improvement Orders similar to Phlx and
Statement of the Purpose of, and enter ‘‘Improvement Orders,’’ in penny BX. The Exchange is therefore removing
Statutory Basis for, the Proposed Rule increments, to improve the price of the this limitation in Rule 723(c)(2) so that
Change the proposed rule text would read:
3 Rule 723(c)(1) defines an Improvement Order. ‘‘Improvement Orders may be entered
In its filing with the Commission, the The Exchange will designate via circular a time of by all Members in one-cent increments
Exchange included statements no less than 100 milliseconds and no more than 1
at the same price as the Crossing
second for Members to indicate the size and price
concerning the purpose of and basis for at which they want to participate in the execution Transaction or at an improved price for
the proposed rule change and discussed of the Agency Order (‘‘Improvement Orders’’). the Agency Order, and for any size up
any comments it received on the 4 See Securities Exchange Act Release No. 70050
to the size of the Agency Order.’’
proposed rule change. The text of these (July 26, 2013), 78 FR 46622 (August 1, 2013) (File
statements may be examined at the No. 10–209) (‘‘Exchange Approval Order’’). The Rule 723(d)(1)–(3)
Exchange subsequently changed its name to ISE
places specified in Item IV below. The Gemini and then later Nasdaq GEMX. The Exchange proposes to amend
Exchange has prepared summaries, set 5 Id. GEMX Rule 723(d)(1)–(3), which
forth in sections A, B, and C below, of 6 See Securities Exchange Act Release No. 50819
the most significant aspects of such (December 8, 2004), 69 FR 75093 (December 15, 10 The ISE would broadcast Improvement Orders
2004) (SR–ISE–2003–06) (Order Granting Approval to all Members. Crossing Transactions and
statements. of Proposed Rule Change and Amendment No. 1 Improvement Orders would not be displayed in the
A. Self-Regulatory Organization’s Thereto and Notice of Filing and Order Granting ISE BBO and would not be disseminated to the
Accelerated Approval to Amendments No. 2 and 3 Options Price Reporting Authority.
Statement of the Purpose of, and Thereto by the International Securities Exchange, 11 GEMX Rule 723(c)(2).
Statutory Basis for, the Proposed Rule Inc. To Establish Rules Implementing a Price 12 GEMX Rule 723(c)(4).
Change Improvement Mechanism) (‘‘Adopting Filing’’).
daltland on DSKBBV9HB2PROD with NOTICES
13 Phlx Rule 1087 permits any member to submit
7 The Counter-Side Order may represent interest
for execution an order it represents as agent on
1. Purpose for the EAM’s own account, or interest the EAM has behalf of a public customer, broker-dealer, or any
solicited from one or more other parties, or a other entity (‘‘PIXL Order’’).
GEMX proposes to amend Rule 723, combination of both. 14 BX Rules at Chapter VI, Section 9 provides that
entitled ‘‘Price Improvement 8 Id.
‘‘A Participant may electronically submit for
9 The broadcast message would include the series, execution an order it represents as agent on behalf
1 15 U.S.C. 78s(b)(1). price, and size of the Agency Order and whether it of a Public Customer, broker dealer, or any other
2 17 CFR 240.19b–4. is to buy or sell. entity (‘‘PRISM Order’’).
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![Federal Register / Vol. 83, No. 140 / Friday, July 20, 2018 / Notices 34625
C. Self-Regulatory Organization’s public interest, for the protection of should be submitted on or before
Statement on Comments on the investors, or otherwise in furtherance of August 10, 2018.
Proposed Rule Change Received From the purposes of the Act. If the For the Commission, by the Division of
Members, Participants, or Others Commission takes such action, the Trading and Markets, pursuant to delegated
No written comments were either Commission shall institute proceedings authority.23
solicited or received. to determine whether the proposed rule Eduardo A. Aleman,
should be approved or disapproved. Assistant Secretary.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for IV. Solicitation of Comments [FR Doc. 2018–15501 Filed 7–19–18; 8:45 am]
BILLING CODE 8011–01–P
Commission Action Interested persons are invited to
Because the proposed rule change submit written data, views, and
does not (i) significantly affect the arguments concerning the foregoing,
SECURITIES AND EXCHANGE
protection of investors or the public including whether the proposed rule
COMMISSION
interest; (ii) impose any significant change is consistent with the Act.
burden on competition; and (iii) become Comments may be submitted by any of [Release No. 34–83639; File No. SR–ISE–
the following methods: 2018–61]
operative for 30 days from the date on
which it was filed, or such shorter time Electronic Comments Self-Regulatory Organizations; Nasdaq
as the Commission may designate, it has
• Use the Commission’s internet ISE, LLC; Notice of Filing and
become effective pursuant to Section Immediate Effectiveness of Proposed
comment form (http://www.sec.gov/
19(b)(3)(A) of the Act 18 and Rule 19b– rules/sro.shtml); or Rule Change To Amend the
4(f)(6) thereunder.19 • Send an email to rule-comments@ Exchange’s Schedule of Fees To Add
A proposed rule change filed sec.gov. Please include File Number SR– Establish Fees and Rebates for NQX
pursuant to Rule 19b–4(f)(6) under the GEMX–2018–25 on the subject line. Options and Make Several Clarifying
Act 20 normally does not become Changes
operative for 30 days after the date of its Paper Comments
filing. However, Rule 19b–4(f)(6)(iii) 21 • Send paper comments in triplicate July 16, 2018.
permits the Commission to designate a to Brent J. Fields, Secretary, Securities Pursuant to Section 19(b)(1) of the
shorter time if such action is consistent and Exchange Commission, 100 F Street Securities Exchange Act of 1934
with the protection of investors and the NE, Washington, DC 20549–1090. (‘‘Act’’),1 and Rule 19b–4 thereunder,2
public interest. The Exchange has asked All submissions should refer to File notice is hereby given that on July 2,
the Commission to waive the 30-day Number SR–GEMX–2018–25. This file 2018, Nasdaq ISE, LLC (‘‘ISE’’ or
operative delay so that it may allow all number should be included on the ‘‘Exchange’’) filed with the Securities
Members to submit Improvement Orders subject line if email is used. To help the and Exchange Commission
directly into PIM to provide an even Commission process and review your (‘‘Commission’’) the proposed rule
greater number of GEMX Members an comments more efficiently, please use change as described in Items I and II
opportunity to more directly participate only one method. The Commission will below, which Items have been prepared
in PIM and provide price improvement. post all comments on the Commission’s by the Exchange. The Commission is
The Exchange states that it will issue an internet website (http://www.sec.gov/ publishing this notice to solicit
Options Trader Alert to notify Members rules/sro.shtml). Copies of the comments on the proposed rule change
of the date within which this submission, all subsequent from interested persons.
functionality will be implemented. The amendments, all written statements I. Self-Regulatory Organization’s
Commission believes the waiver of the with respect to the proposed rule Statement of the Terms of Substance of
operative delay is consistent with the change that are filed with the the Proposed Rule Change
protection of investors and the public Commission, and all written
interest. Accordingly, the Commission The Exchange proposes to amend the
communications relating to the
hereby waives the operative delay and Exchange’s Schedule of Fees.
proposed rule change between the The text of the proposed rule change
designates the proposed rule change Commission and any person, other than
operative upon filing.22 is available on the Exchange’s website at
those that may be withheld from the http://ise.cchwallstreet.com/, at the
At any time within 60 days of the public in accordance with the
filing of the proposed rule change, the principal office of the Exchange, and at
provisions of 5 U.S.C. 552, will be the Commission’s Public Reference
Commission summarily may available for website viewing and
temporarily suspend such rule change if Room.
printing in the Commission’s Public
it appears to the Commission that such Reference Room, 100 F Street NE, II. Self-Regulatory Organization’s
action is necessary or appropriate in the Washington, DC 20549 on official Statement of the Purpose of, and
business days between the hours of Statutory Basis for, the Proposed Rule
18 15 U.S.C. 78s(b)(3)(A).
19 17
10:00 a.m. and 3:00 p.m. Copies of such Change
CFR 240.19b–4(f)(6). As required under Rule
19b–4(f)(6)(iii), the Exchange provided the filing also will be available for In its filing with the Commission, the
Commission with written notice of its intent to file inspection and copying at the principal Exchange included statements
the proposed rule change, along with a brief office of the Exchange. All comments concerning the purpose of and basis for
description and the text of the proposed rule received will be posted without change.
change, at least five business days prior to the date the proposed rule change and discussed
of filing of the proposed rule change, or such Persons submitting comments are any comments it received on the
daltland on DSKBBV9HB2PROD with NOTICES
shorter time as designated by the Commission. cautioned that we do not redact or edit proposed rule change. The text of these
20 17 CFR 240.19b–4(f)(6). personal identifying information from statements may be examined at the
21 17 CFR 240.19b–4(f)(6)(iii).
comment submissions. You should places specified in Item IV below. The
22 For purposes only of waiving the 30-day
submit only information that you wish
operative delay, the Commission has also
considered the proposed rule’s impact on
to make available publicly. All 23 17 CFR 200.30–3(a)(12).
efficiency, competition, and capital formation. See submissions should refer to File 1 15 U.S.C. 78s(b)(1).
15 U.S.C. 78c(f). Number SR–GEMX–2018–25, and 2 17 CFR 240.19b–4.
VerDate Sep<11>2014 18:06 Jul 19, 2018 Jkt 244001 PO 00000 Frm 00090 Fmt 4703 Sfmt 4703 E:\FR\FM\20JYN1.SGM 20JYN1](https://thefederalregister.org/doc/83_FR_34763/page/3.svg)
Document Created: 2018-07-20 01:19:32
Document Modified: 2018-07-20 01:19:32
| 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 34623 |
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