83 FR 4949 - Self-Regulatory Organizations; Nasdaq PHLX LLC; 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)

Page Range		4949-4950
FR Document		2018-02129
Federal Register, Volume 83 Issue 23 (Friday, February 2, 2018)
[Federal Register Volume 83, Number 23 (Friday, February 2, 2018)]
[Notices]
[Pages 4949-4950]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-02129]



[[Page 4949]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82601; File No. SR-Phlx-2018-11]


Self-Regulatory Organizations; Nasdaq PHLX LLC; 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 PHLX LLC (``Phlx'' or ``Exchange'') filed 
with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I and II below, which Items 
have been prepared by the Exchange. The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to relocate the Consolidated Audit Trail 
Compliance rules (``CAT Rules''), Rules 900A through 996A, to General 
7, Sections 1 through 13 in the Exchange's rulebook's (``Rulebook'') 
shell structure.
    The text of the proposed rule change is available on the Exchange's 
website at http://nasdaqphlx.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 
identified as Rules 900A through 996A, 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.\3\ Because the CAT Rules apply across all 
markets and to all products,\4\ 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.
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    \3\ See Securities Exchange Act Release No. 80256 (March 15, 
2017), 82 FR 14526 (March 21, 2017) (SR-Phlx-2017-07) (Order 
Approving Proposed Rule Changes To Adopt Consolidated Audit Trail 
Compliance Rules).
    \4\ Id.
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    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.\5\ The Exchange believes that the 
migration of the CAT Rules to their new location will facilitate the 
use of the Rulebook by Members \6\ 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, make cross-reference changes, and make a 
minor change to harmonize the proposed rule text with the filings 
simultaneously submitted by the Affiliated Exchanges.
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    \5\ See footnote 3.
    \6\ Exchange Rule 1(r).
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\7\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\8\ 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.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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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 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 \9\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\10\
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    \9\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \10\ 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.
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    A proposed rule change filed under Rule 19b-4(f)(6) \11\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, Rule 19b-4(f)(6)(iii) \12\ permits the

[[Page 4950]]

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.\13\
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    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ 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: (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 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-Phlx-2018-11 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-Phlx-2018-11. 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-Phlx-2018-11 and should be submitted on 
or before February 23, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-02129 Filed 2-1-18; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 83, No. 23 / Friday, February 2, 2018 / Notices 4949

SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s open market and a national market
COMMISSION Statement of the Purpose of, and system, and, in general to protect
Statutory Basis for, the Proposed Rule investors and the public interest, by
[Release No. 34–82601; File No. SR–Phlx– Change promoting efficiency and conformity of
2018–11] the Exchange’s processes with those of
1. Purpose
the Affiliated Exchanges and to make
Self-Regulatory Organizations; Nasdaq The Exchange proposes to relocate the the Exchange’s Rulebook easier to read
PHLX LLC; Notice of Filing and CAT Rules, currently identified as Rules and more accessible to its Members. The
900A through 996A, to General 7, Exchange believes that the relocation of
Immediate Effectiveness of Proposed
Sections 1 through 13 of the Rulebook’s the CAT Rules and cross-reference
Rule Change To Relocate the
shell structure. updates are of a non-substantive nature.
Consolidated Audit Trail Compliance The Exchange adopted the CAT Rules
Rules to implement a consolidated audit trail B. Self-Regulatory Organization’s
in order to capture customer and order Statement on Burden on Competition
January 30, 2018.
event information to comply with the The Exchange does not believe that
Pursuant to Section 19(b)(1) of the provisions of the National Market the proposed rule change will impose
Securities Exchange Act of 1934 System Plan Governing the any burden on competition not
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 Consolidated Audit Trail.3 Because the necessary or appropriate in furtherance
notice is hereby given that on January CAT Rules apply across all markets and of the purposes of the Act. The
24, 2018, Nasdaq PHLX LLC (‘‘Phlx’’ or to all products,4 the Exchange believes proposed changes do not impose a
‘‘Exchange’’) filed with the Securities it is pertinent that they be located in the burden on competition because, as
and Exchange Commission General section of the Rulebook’s shell; previously stated, they (i) are of a non-
(‘‘Commission’’) the proposed rule therefore, the Exchange will amend the substantive nature, (ii) are intended to
change as described in Items I and II shell structure, creating a new ‘‘General harmonize the Exchange’s rules with
below, which Items have been prepared 7 Consolidated Audit Trail Compliance’’ those of its Affiliated Exchanges, and
by the Exchange. The Commission is title under ‘‘General Equity and Options (iii) are intended to organize the
publishing this notice to solicit Rules,’’ and make conforming changes Rulebook in a way that it will ease the
comments on the proposed rule change to the ‘‘Options Rules’’ titles; moreover, Members’ navigation and reading of the
from interested persons. this proposal is consistent with similar rules across the Affiliated Exchanges.
filings concurrently submitted by the
I. Self-Regulatory Organization’s Affiliated Exchanges. C. Self-Regulatory Organization’s
Statement of the Terms of Substance of The relocation of the CAT Rules is Statement on Comments on the
the Proposed Rule Change part of the Exchange’s continued effort Proposed Rule Change Received From
to promote efficiency and conformity of Members, Participants, or Others
The Exchange proposes to relocate the its processes with those of its Affiliated No written comments were either
Consolidated Audit Trail Compliance Exchanges.5 The Exchange believes that solicited or received.
rules (‘‘CAT Rules’’), Rules 900A the migration of the CAT Rules to their
through 996A, to General 7, Sections 1 new location will facilitate the use of III. Date of Effectiveness of the
through 13 in the Exchange’s rulebook’s the Rulebook by Members 6 of the Proposed Rule Change and Timing for
(‘‘Rulebook’’) shell structure. Exchange who are members of other Commission Action
The text of the proposed rule change Affiliated Exchanges. Moreover, the Because the foregoing proposed rule
is available on the Exchange’s website at proposed changes are of a non- change does not: (i) Significantly affect
http://nasdaqphlx.cchwallstreet.com/, substantive nature and will not amend the protection of investors or the public
at the principal office of the Exchange, the relocated rules other than to update interest; (ii) impose any significant
and at the Commission’s Public their numbers, make cross-reference burden on competition; and (iii) become
changes, and make a minor change to operative for 30 days from the date on
Reference Room.
harmonize the proposed rule text with which it was filed, or such shorter time
II. Self-Regulatory Organization’s the filings simultaneously submitted by as the Commission may designate, it has
Statement of the Purpose of, and the Affiliated Exchanges. become effective pursuant to Section
Statutory Basis for, the Proposed Rule 2. Statutory Basis 19(b)(3)(A)(iii) of the Act 9 and
Change subparagraph (f)(6) of Rule 19b–4
The Exchange believes that its thereunder.10
In its filing with the Commission, the proposal is consistent with Section 6(b)
A proposed rule change filed under
Exchange included statements of the Act,7 in general, and furthers the
Rule 19b–4(f)(6) 11 normally does not
concerning the purpose of and basis for objectives of Section 6(b)(5) of the Act,8 become operative prior to 30 days after
the proposed rule change and discussed in particular, in that it is designed to the date of the filing. However, Rule
any comments it received on the promote just and equitable principles of 19b–4(f)(6)(iii) 12 permits the
proposed rule change. The text of these trade, to remove impediments to and
statements may be examined at the perfect the mechanism of a free and 9 15 U.S.C. 78s(b)(3)(A)(iii).
places specified in Item IV below. The 3 See Securities Exchange Act Release No. 80256
10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
Exchange has prepared summaries, set 4(f)(6)(iii) requires the Exchange to give the
sradovich on DSK3GMQ082PROD with NOTICES

(March 15, 2017), 82 FR 14526 (March 21, 2017) Commission written notice of the Exchange’s intent
forth in sections A, B, and C below, of (SR-Phlx-2017–07) (Order Approving Proposed to file the proposed rule change, along with a brief
the most significant aspects of such Rule Changes To Adopt Consolidated Audit Trail description and text of the proposed rule change,
statements. Compliance Rules). at least five business days prior to the date of filing
4 Id.
of the proposed rule change, or such shorter time
5 See footnote 3.
as designated by the Commission. The Exchange
6 Exchange Rule 1(r). has satisfied this requirement.
1 15 U.S.C. 78s(b)(1). 7 15 U.S.C. 78f(b). 11 17 CFR 240.19b–4(f)(6).
2 17 CFR 240.19b–4. 8 15 U.S.C. 78f(b)(5). 12 17 CFR 240.19b–4(f)(6)(iii).

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4950 Federal Register / Vol. 83, No. 23 / Friday, February 2, 2018 / Notices

Commission to designate a shorter time with respect to the proposed rule with an effective date of December 21,
if such action is consistent with the change that are filed with the 2017. The text of the report follows:
protection of investors and the public Commission, and all written As required by Section 1264 of the
interest. The Exchange has asked the communications relating to the Global Magnitsky Human Rights
Commission to waive the 30-day proposed rule change between the Accountability Act of 2016 (Pub. L.
operative delay so that the Exchange can Commission and any person, other than 114–328, Subtitle F) (the ‘‘Act’’), and in
reorganize its Rulebook as already those that may be withheld from the accordance with the executive order
approved by the Commission. The public in accordance with the (E.O.) issued to implement the Act, the
Commission believes that waiver of the provisions of 5 U.S.C. 552, will be Secretary of State, in consultation with
30-day operative delay is consistent available for website viewing and the Secretary of the Treasury, submits
with the protection of investors and the printing in the Commission’s Public this report to detail the Administration’s
public interest. Accordingly, the Reference Room, 100 F Street NE, implementation of the Act in 2017.
Commission hereby waives the Washington, DC 20549, on official Enacted on December 23, 2016, the
operative delay and designates the business days between the hours of Act authorizes the President to impose
proposed rule change as operative upon 10:00 a.m. and 3:00 p.m. Copies of the financial sanctions and visa restrictions
filing.13 filing also will be available for on foreign persons responsible for acts
At any time within 60 days of the inspection and copying at the principal of corruption or certain human rights
filing of the proposed rule change, the office of the Exchange. All comments violations. On December 20, 2017, the
Commission summarily may received will be posted without change. President issued an executive order to
temporarily suspend such rule change if Persons submitting comments are implement the Act. This executive order
it appears to the Commission that such cautioned that we do not redact or edit authorizes the Secretary of the Treasury,
action is: (i) Necessary or appropriate in personal identifying information from in consultation with the Secretary of
the public interest; (ii) for the protection comment submissions. You should State and the Attorney General, to
of investors; or (iii) otherwise in submit only information that you wish impose financial sanctions on persons
furtherance of the purposes of the Act. to make available publicly. All determined to be directly or indirectly
If the Commission takes such action, the submissions should refer to File responsible for serious human rights
Commission shall institute proceedings Number SR–Phlx–2018–11 and should abuse or acts of significant corruption.
to determine whether the proposed rule be submitted on or before February 23, The executive order also authorizes the
should be approved or disapproved. 2018. Secretary of State to impose visa
IV. Solicitation of Comments For the Commission, by the Division of restrictions on persons designated
Interested persons are invited to Trading and Markets, pursuant to delegated pursuant to the executive order.
submit written data, views, and authority.14 The United States is committed to
arguments concerning the foregoing, Eduardo A. Aleman, protecting and promoting human rights
including whether the proposed rule Assistant Secretary. and combatting corruption around the
change is consistent with the Act. [FR Doc. 2018–02129 Filed 2–1–18; 8:45 am] world. These efforts advance a world
Comments may be submitted by any of BILLING CODE 8011–01–P
order that reflects U.S. values and
the following methods: increases the security of the United
States, its allies, and its partners. The
Electronic Comments United States has led, and is uniquely
• Use the Commission’s internet DEPARTMENT OF STATE positioned to continue leading, the
comment form (http://www.sec.gov/ [Public Notice: 10258] international community in efforts to
rules/sro.shtml); or combat human rights abuse and
• Send an email to rule-comments@ Global Magntisky Human Rights corruption on the international stage.
sec.gov. Please include File Number SR– Accountability Act Annual Report Sanctions issued pursuant to the Act, as
Phlx–2018–11 on the subject line. implemented by the executive order, are
AGENCY: Department of State. consistent with these longstanding
Paper Comments ACTION: Notice. efforts.
• Send paper comments in triplicate The United States will, under the
to Secretary, Securities and Exchange SUMMARY: This notice contains the text
executive order, pursue tangible and
Commission, 100 F Street NE, of the report, submitted by the President
significant consequences for those who
Washington, DC 20549–1090. required by the Global Magnitsky
commit serious human rights abuse and
All submissions should refer to File Human Rights Accountability Act, as
engage in corruption. This tool will be
Number SR–Phlx–2018–11. This file submitted by the Secretary of State.
used without hesitation to advance U.S.
number should be included on the FOR FURTHER INFORMATION CONTACT: interests in cases involving human
subject line if email is used. To help the Benjamin A. Kraut, Email: Krautb@state rights abusers or corrupt actors who are
Commission process and review your gov, Phone: (202) 647–9452. beyond the reach of other U.S. sanctions
comments more efficiently, please use SUPPLEMENTARY INFORMATION: On authorities, but whose designation
only one method. The Commission will December 21, 2017, The Secretary of could have an impact on these and other
post all comments on the Commission’s State approved the following report malign actors.
internet website (http://www.sec.gov/ pursuant to a delegation of authority
rules/sro.shtml). Copies of the from the President under Executive Financial Sanctions
sradovich on DSK3GMQ082PROD with NOTICES

submission, all subsequent Order 13818. Executive Order 13818, Over the last year, various
amendments, all written statements which implements the Global Magnitsky departments and agencies of the United
Human Rights Accountability Act (Pub. States Government have actively
13 For purposes only of waiving the 30-day
L. 114–328, Subtitle F), was issued by collected information from multiple
operative delay, the Commission has also the President on December 20, 2017
considered the proposed rule’s impact on
sources—including the Intelligence
efficiency, competition, and capital formation. See Community, U.S. missions around the
15 U.S.C. 78c(f). 14 17 CFR 200.30–3(a)(12). world, non-governmental organizations,

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Document Created: 2018-02-03 14:27:23
Document Modified: 2018-02-03 14:27:23
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 4949