83 FR 4942 - Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Relocate the Consolidated Audit Trail Compliance Rules
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 23 (February 2, 2018)
Federal Register Volume 83, Issue 23 (February 2, 2018)
| Page Range | 4942-4943 | |
| FR Document | 2018-02125 |
[Federal Register Volume 83, Number 23 (Friday, February 2, 2018)] [Notices] [Pages 4942-4943] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-02125] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82597; File No. SR-BX-2018-007] Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Relocate the Consolidated Audit Trail Compliance Rules January 30, 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 January 24, 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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to relocate the Consolidated Audit Trail Compliance rules (``CAT Rules''), currently under the 6800 Series (Rules 6810 through 6896), to General 7, Sections 1 through 13 in the Exchange's rulebook's (``Rulebook'') shell structure.\3\ --------------------------------------------------------------------------- \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 (``Affiliated Exchanges''). See Securities Exchange Act Release No. 82174 (November 29, 2017), 82 FR 57492 (December 5, 2017) (SR-BX-2017-054). --------------------------------------------------------------------------- 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 the CAT Rules, currently under the 6800 Series, Rules 6810 through 6896, to General 7, Sections 1 through 13 of the Rulebook's shell structure. The Exchange adopted the CAT Rules to implement a consolidated audit trail in order to capture customer and order event information to comply with the provisions of the National Market System Plan Governing the Consolidated Audit Trail.\4\ Because the CAT Rules apply across all markets and to all products,\5\ the Exchange believes it is pertinent that they be located in the General section of the Rulebook's shell; therefore, the Exchange will amend the shell structure, creating a new ``General 7 Consolidated Audit Trail Compliance'' title under ``General Equity and Options Rules,'' and make conforming changes to the ``Options Rules'' titles; moreover, this proposal is consistent with similar filings concurrently submitted by the Affiliated Exchanges. --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release No. 80256 (March 15, 2017), 82 FR 14526 (March 21, 2017) (SR-BX-2017-007) (Order Approving Proposed Rule Changes To Adopt Consolidated Audit Trail Compliance Rules). \5\ Id. --------------------------------------------------------------------------- The relocation of the CAT Rules is part of the Exchange's continued effort to promote efficiency and conformity of its processes with those of its Affiliated Exchanges.\6\ The Exchange believes that the migration of the CAT Rules to their new location will facilitate the use of the Rulebook by Members \7\ of the Exchange who are members of other Affiliated Exchanges. Moreover, the proposed changes are of a non-substantive nature and will not amend the relocated rules other than to update their numbers and make conforming cross-reference changes. --------------------------------------------------------------------------- \6\ See footnote 3. \7\ Exchange Rule 0120(i). --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\8\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\9\ 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 promoting efficiency and conformity of the Exchange's processes with those of the Affiliated Exchanges and to make the Exchange's Rulebook easier to read and more accessible to its Members. The Exchange believes that the relocation of the CAT Rules and cross-reference updates are of a non-substantive nature. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78f(b). \9\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The [[Page 4943]] proposed changes do not impose a burden on competition because, as previously stated, they (i) are of a non-substantive nature, (ii) are intended to harmonize the Exchange's rules with those of its Affiliated Exchanges, and (iii) are intended to organize the Rulebook in a way that it will ease the Members' navigation and reading of the rules across the Affiliated Exchanges. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A)(iii) of the Act \10\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\11\ --------------------------------------------------------------------------- \10\ 15 U.S.C. 78s(b)(3)(A)(iii). \11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) requires the Exchange to give the Commission written notice of the Exchange's intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \12\ normally does not become operative prior to 30 days after the date of the filing. However, Rule 19b-4(f)(6)(iii) \13\ 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 Exchange can reorganize its Rulebook as already approved by the Commission. The Commission believes that waiver of the 30-day 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 as operative upon filing.\14\ --------------------------------------------------------------------------- \12\ 17 CFR 240.19b-4(f)(6). \13\ 17 CFR 240.19b-4(f)(6)(iii). \14\ 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: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) 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 rule-comments@sec.gov. Please include File Number SR-BX-2018-007 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-2018-007. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's internet website (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission's Public Reference Room, 100 F Street NE, Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-BX-2018-007 and should be submitted on or before February 23, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\15\ --------------------------------------------------------------------------- \15\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-02125 Filed 2-1-18; 8:45 am] BILLING CODE 8011-01-P
![4942 Federal Register / Vol. 83, No. 23 / Friday, February 2, 2018 / Notices
Commission has received one comment ‘‘Exchange’’) filed with the Securities System Plan Governing the
letter on the proposed rule change.4 and Exchange Commission Consolidated Audit Trail.4 Because the
Section 19(b)(2) of the Act 5 provides (‘‘Commission’’) the proposed rule CAT Rules apply across all markets and
that within 45 days of the publication of change as described in Items I and II to all products,5 the Exchange believes
notice of the filing of a proposed rule below, which Items have been prepared it is pertinent that they be located in the
change, or within such longer period up by the Exchange. The Commission is General section of the Rulebook’s shell;
to 90 days as the Commission may publishing this notice to solicit therefore, the Exchange will amend the
designate if it finds such longer period comments on the proposed rule change shell structure, creating a new ‘‘General
to be appropriate and publishes its from interested persons. 7 Consolidated Audit Trail Compliance’’
reasons for so finding or as to which the title under ‘‘General Equity and Options
self-regulatory organization consents, I. Self-Regulatory Organization’s
Rules,’’ and make conforming changes
the Commission shall either approve the Statement of the Terms of Substance of
to the ‘‘Options Rules’’ titles; moreover,
proposed rule change, disapprove the the Proposed Rule Change
this proposal is consistent with similar
proposed rule change, or institute The Exchange proposes to relocate the filings concurrently submitted by the
proceedings to determine whether the Consolidated Audit Trail Compliance Affiliated Exchanges.
proposed rule change should be rules (‘‘CAT Rules’’), currently under The relocation of the CAT Rules is
disapproved. The Commission is the 6800 Series (Rules 6810 through part of the Exchange’s continued effort
extending this 45-day time period. The 6896), to General 7, Sections 1 through to promote efficiency and conformity of
Commission finds that it is appropriate 13 in the Exchange’s rulebook’s its processes with those of its Affiliated
to designate a longer period within (‘‘Rulebook’’) shell structure.3 Exchanges.6 The Exchange believes that
which to take action on the proposed The text of the proposed rule change the migration of the CAT Rules to their
rule change so that it has sufficient time is available on the Exchange’s website at new location will facilitate the use of
to consider the proposed rule change. http://nasdaqbx.cchwallstreet.com/, at the Rulebook by Members 7 of the
Accordingly, the Commission, the principal office of the Exchange, and Exchange who are members of other
pursuant to Section 19(b)(2) of the Act,6 at the Commission’s Public Reference Affiliated Exchanges. Moreover, the
designates March 26, 2018, as the date Room. proposed changes are of a non-
by which the Commission shall either substantive nature and will not amend
II. Self-Regulatory Organization’s
approve or disapprove, or institute the relocated rules other than to update
Statement of the Purpose of, and
proceedings to determine whether to their numbers and make conforming
Statutory Basis for, the Proposed Rule
disapprove, the proposed rule change cross-reference changes.
Change
(File No. SR–NYSEArca–2017–139).
In its filing with the Commission, the 2. Statutory Basis
For the Commission, by the Division of
Trading and Markets, pursuant to delegated Exchange included statements The Exchange believes that its
authority.7 concerning the purpose of and basis for proposal is consistent with Section 6(b)
Eduardo A. Aleman, the proposed rule change and discussed of the Act,8 in general, and furthers the
Assistant Secretary. any comments it received on the objectives of Section 6(b)(5) of the Act,9
[FR Doc. 2018–02130 Filed 2–1–18; 8:45 am]
proposed rule change. The text of these in particular, in that it is designed to
statements may be examined at the promote just and equitable principles of
BILLING CODE 8011–01–P
places specified in Item IV below. The trade, to remove impediments to and
Exchange has prepared summaries, set perfect the mechanism of a free and
SECURITIES AND EXCHANGE forth in sections A, B, and C below, of open market and a national market
COMMISSION the most significant aspects of such system, and, in general to protect
statements. investors and the public interest, by
[Release No. 34–82597; File No. SR–BX– promoting efficiency and conformity of
2018–007] A. Self-Regulatory Organization’s
the Exchange’s processes with those of
Statement of the Purpose of, and
Self-Regulatory Organizations; Nasdaq the Affiliated Exchanges and to make
Statutory Basis for, the Proposed Rule
BX, Inc.; Notice of Filing and the Exchange’s Rulebook easier to read
Change
Immediate Effectiveness of Proposed and more accessible to its Members. The
Rule Change To Relocate the 1. Purpose Exchange believes that the relocation of
Consolidated Audit Trail Compliance The Exchange proposes to relocate the the CAT Rules and cross-reference
Rules CAT Rules, currently under the 6800 updates are of a non-substantive nature.
Series, Rules 6810 through 6896, to B. Self-Regulatory Organization’s
January 30, 2018. General 7, Sections 1 through 13 of the Statement on Burden on Competition
Pursuant to Section 19(b)(1) of the Rulebook’s shell structure.
Securities Exchange Act of 1934 The Exchange does not believe that
The Exchange adopted the CAT Rules
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 the proposed rule change will impose
to implement a consolidated audit trail
notice is hereby given that on January any burden on competition not
in order to capture customer and order
24, 2018, Nasdaq BX, Inc. (‘‘BX’’ or necessary or appropriate in furtherance
event information to comply with the
of the purposes of the Act. The
provisions of the National Market
4 See Letter from Abe Kohen, AK Financial
Engineering Consultants, LLC (Dec. 27, 2017). All 3 Recently, the Exchange added a shell structure
4 See Securities Exchange Act Release No. 80256
sradovich on DSK3GMQ082PROD with NOTICES
comments on the proposed rule change are (March 15, 2017), 82 FR 14526 (March 21, 2017)
available on the Commission’s website at: https:// to its Rulebook with the purpose of improving (SR–BX–2017–007) (Order Approving Proposed
www.sec.gov/comments/sr-nysearca-2017-139/ efficiency and readability and to align its rules Rule Changes To Adopt Consolidated Audit Trail
nysearca2017139.htm. closer to those of its five sister exchanges, The Compliance Rules).
5 15 U.S.C. 78s(b)(2). Nasdaq Stock Market LLC; Nasdaq PHLX LLC; 5 Id.
6 Id.
Nasdaq ISE, LLC; Nasdaq GEMX, LLC; and Nasdaq 6 See footnote 3.
MRX, LLC (‘‘Affiliated Exchanges’’). See Securities
7 17 CFR 200.30–3(a)(31). 7 Exchange Rule 0120(i).
Exchange Act Release No. 82174 (November 29,
1 15 U.S.C. 78s(b)(1). 8 15 U.S.C. 78f(b).
2017), 82 FR 57492 (December 5, 2017) (SR–BX–
2 17 CFR 240.19b–4. 2017–054). 9 15 U.S.C. 78f(b)(5).
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![Federal Register / Vol. 83, No. 23 / Friday, February 2, 2018 / Notices 4943
proposed changes do not impose a At any time within 60 days of the personal identifying information from
burden on competition because, as filing of the proposed rule change, the comment submissions. You should
previously stated, they (i) are of a non- Commission summarily may submit only information that you wish
substantive nature, (ii) are intended to temporarily suspend such rule change if to make available publicly. All
harmonize the Exchange’s rules with it appears to the Commission that such submissions should refer to File
those of its Affiliated Exchanges, and action is: (i) Necessary or appropriate in Number SR–BX–2018–007 and should
(iii) are intended to organize the the public interest; (ii) for the protection be submitted on or before February 23,
Rulebook in a way that it will ease the of investors; or (iii) otherwise in 2018.
Members’ navigation and reading of the furtherance of the purposes of the Act. For the Commission, by the Division of
rules across the Affiliated Exchanges. If the Commission takes such action, the Trading and Markets, pursuant to delegated
Commission shall institute proceedings authority.15
C. Self-Regulatory Organization’s
to determine whether the proposed rule Eduardo A. Aleman,
Statement on Comments on the
should be approved or disapproved. Assistant Secretary.
Proposed Rule Change Received From
Members, Participants, or Others IV. Solicitation of Comments [FR Doc. 2018–02125 Filed 2–1–18; 8:45 am]
BILLING CODE 8011–01–P
No written comments were either Interested persons are invited to
solicited or received. submit written data, views, and
arguments concerning the foregoing,
III. Date of Effectiveness of the SECURITIES AND EXCHANGE
including whether the proposed rule
Proposed Rule Change and Timing for COMMISSION
change is consistent with the Act.
Commission Action
Comments may be submitted by any of Proposed Collection; Comment
Because the foregoing proposed rule the following methods: Request
change does not: (i) Significantly affect
the protection of investors or the public Electronic Comments Upon Written Request, Copies Available
interest; (ii) impose any significant • Use the Commission’s internet From: Securities and Exchange
burden on competition; and (iii) become comment form (http://www.sec.gov/ Commission, Office of FOIA Services,
operative for 30 days from the date on rules/sro.shtml); or 100 F Street NE, Washington, DC
which it was filed, or such shorter time • Send an email to rule-comments@ 20549–2736
as the Commission may designate, it has sec.gov. Please include File Number SR– Extension:
become effective pursuant to Section BX–2018–007 on the subject line. Rule 11a–2, SEC File No. 270–267, OMB
19(b)(3)(A)(iii) of the Act 10 and Paper Comments Control No. 3235–0272
subparagraph (f)(6) of Rule 19b–4 Notice is hereby given that, pursuant
thereunder.11 • Send paper comments in triplicate
to Secretary, Securities and Exchange to the Paperwork Reduction Act of 1995
A proposed rule change filed under (44 U.S.C. 3501 et seq.), the Securities
Rule 19b–4(f)(6) 12 normally does not Commission, 100 F Street NE,
Washington, DC 20549–1090. and Exchange Commission (the
become operative prior to 30 days after ‘‘Commission’’) is soliciting comments
the date of the filing. However, Rule All submissions should refer to File
on the collection of information
19b–4(f)(6)(iii) 13 permits the Number SR–BX–2018–007. This file
summarized below. The Commission
Commission to designate a shorter time number should be included on the
plans to submit this existing collection
if such action is consistent with the subject line if email is used. To help the of information to the Office of
protection of investors and the public Commission process and review your Management and Budget for extension
interest. The Exchange has asked the comments more efficiently, please use and approval.
Commission to waive the 30-day only one method. The Commission will Rule 11a–2 (17 CFR 270.11a–2) under
operative delay so that the Exchange can post all comments on the Commission’s the Investment Company Act of 1940
reorganize its Rulebook as already internet website (http://www.sec.gov/ (15 U.S.C. 80a–1 et seq.) permits certain
approved by the Commission. The rules/sro.shtml). Copies of the registered insurance company separate
Commission believes that waiver of the submission, all subsequent accounts, subject to certain conditions,
30-day operative delay is consistent amendments, all written statements to make exchange offers without prior
with the protection of investors and the with respect to the proposed rule approval by the Commission of the
public interest. Accordingly, the change that are filed with the terms of those offers. Rule 11a–2
Commission hereby waives the Commission, and all written requires disclosure, in certain
operative delay and designates the communications relating to the registration statements filed pursuant to
proposed rule change as operative upon proposed rule change between the the Securities Act of 1933 (15 U.S.C. 77a
filing.14 Commission and any person, other than et seq.) of any administrative fee or sales
those that may be withheld from the load imposed in connection with an
10 15 U.S.C. 78s(b)(3)(A)(iii). public in accordance with the exchange offer.
11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– provisions of 5 U.S.C. 552, will be There are currently 673 registrants
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent available for website viewing and governed by Rule 11a–2. The
to file the proposed rule change, along with a brief printing in the Commission’s Public Commission includes the estimated
description and text of the proposed rule change, Reference Room, 100 F Street NE, burden of complying with the
at least five business days prior to the date of filing Washington, DC 20549, on official
of the proposed rule change, or such shorter time
information collection required by Rule
business days between the hours of
sradovich on DSK3GMQ082PROD with NOTICES
as designated by the Commission. The Exchange 11a–2 in the total number of burden
has satisfied this requirement. 10:00 a.m. and 3:00 p.m. Copies of the hours estimated for completing the
12 17 CFR 240.19b–4(f)(6). filing also will be available for relevant registration statements and
13 17 CFR 240.19b–4(f)(6)(iii).
inspection and copying at the principal reports the burden of Rule 11a–2 in the
14 For purposes only of waiving the 30-day
office of the Exchange. All comments separate Paperwork Reduction Act
operative delay, the Commission has also
considered the proposed rule’s impact on
received will be posted without change. (‘‘PRA’’) submissions for those
efficiency, competition, and capital formation. See Persons submitting comments are
15 U.S.C. 78c(f). cautioned that we do not redact or edit 15 17 CFR 200.30–3(a)(12).
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Document Created: 2018-02-03 14:27:26
Document Modified: 2018-02-03 14:27:26
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 83 FR 4942 |
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