83_FR_51216 83 FR 51020 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7.14, Clearance and Settlement

83 FR 51020 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7.14, Clearance and Settlement

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 196 (October 10, 2018)

Page Range51020-51022
FR Document2018-21909

Federal Register, Volume 83 Issue 196 (Wednesday, October 10, 2018)
[Federal Register Volume 83, Number 196 (Wednesday, October 10, 2018)]
[Notices]
[Pages 51020-51022]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-21909]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84349; File No. SR-NYSE-2018-42]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend Rule 7.14, Clearance and Settlement

October 3, 2018.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given 
that on September 20, 2018, New York Stock Exchange LLC (``NYSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II, 
and III 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.
---------------------------------------------------------------------------

    \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

    The Exchange proposes to amend Rule 7.14, Clearance and Settlement, 
to remove language that is inconsistent with the Exchange's Price List. 
The proposed rule change is available on the Exchange's website at 
www.nyse.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 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 those 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 parts 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 proposes to amend Rule 7.14, Clearance and Settlement, 
to remove language that was inadvertently included when the rule was 
first adopted and that is inconsistent with the Exchange's Price List. 
The Exchange adopted Rule 7.14 as part of a proposed rule change to 
adopt rules for trading UTP securities on Pillar, the Exchange's new 
trading technology platform.\4\ Rule 7.14 was based on similar rules of 
its affiliate, NYSE Arca, Inc. (``NYSE Arca'') Rule 7.14-E and adopted 
by the Exchange without any substantive differences.\5\ Rule 7.14 
applies only to trading in UTP Securities. Paragraph (c) of Rule 7.14 
states that ``[e]ach clearing firm must be admitted to the Exchange as 
a member organization by meeting the qualification requirements set 
forth in Rule 2.'' Paragraph (c) of Rule 7.14 also includes language 
that exempts clearing firms from paying the regular member organization 
fee \6\ where that clearing firm became a member organization for the 
sole purpose of acting as a clearing firm on the Exchange. This 
language was inadvertently included when Rule 7.14 was adopted and is 
inconsistent with the Exchange's Price List, which does not include 
language exempting clearing only member organizations from the fee's 
application.\7\ The Exchange notes that no such exemption exists in the 
Exchange's rule governing the trading of NYSE-listed securities. 
Therefore, the Exchange proposes to remove the following phrase from 
the first sentence of Exchange Rule 7.14(c): ``provided, however, if 
the clearing firm has become a member organization for the sole purpose 
of acting as a clearing firm on the Exchange, such clearing firm need

[[Page 51021]]

not pay the regular member organization fee''.
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release Nos. 76803; (December 
30, 2015), 81 FR 536 (January 6, 2016) (SR-NYSE-2015-67); and 81225 
(July 27, 2017), 82 FR 36033 (August 2, 2017) (SR-NYSE-2017-35).
    \5\ Id.
    \6\ The ``regular membership organization fee'' referred to in 
Exchange Rule 7.14(c) is referred to as a Trading Licenses fee in 
the Exchange's Price List.
    \7\ In accordance with the Price list, the Exchange charges all 
member organizations a Trading License fee on an annual basis. All 
member organizations with 10 or more trading licenses are charged a 
fee or $50,000 for the first trading license held by the member 
organization unless they qualify for a reduced rate. See the 
Exchange's Price List on pages 33-34 available at https://www.nyse.com/publicdocs/nyse/markets/nyse/NYSE_Price_List.pdf (dated 
September 4, 2018).
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2. Statutory Basis
    The Exchange believes that the proposal is consistent with Section 
6(b) of the Act,\8\ in general, and furthers the objectives of Sections 
6(b)(5) of the Act,\9\ in particular, because it is designed to promote 
just and equitable principles of trade, remove impediments to, and 
perfect the mechanisms of, a free and open market and a national market 
system and, in general, to protect investors and the public interest. 
The Exchange believes that the proposed rule change would remove 
impediments to, and perfect the mechanisms of, a free and open market 
and a national market system and, in general, protect investors and the 
public interest because it would remove language from Exchange Rule 
7.14(c) that was inadvertently included when the rule was adopted and 
that is inconsistent with the Exchange's Price List. The proposed rule 
change would delete language from Rule 7.14(c) that incorrectly exempts 
clearing only member organizations from the Trading License fee and 
would, therefore, remove an inconsistency between Rule 7.14 and the 
Exchange's Price List. Rule 7.14 applies only to trading in UTP 
Securities. No member organizations currently acts solely as a clearing 
firm for UTP Securities and, therefore, no member organization would be 
affected by the proposed rule change. The proposed rule change should 
avoid potential confusion about the applicability of the Trading 
License fee should a member organization seek to act solely as a 
clearing firm on the Exchange in UTP Securities. Lastly, the Exchange 
notes that no such exemption exists in the Exchange's rule governing 
the trading of NYSE-listed securities. Therefore, the proposed rule 
change would allow for the consistent application of the Trading 
License fee among member organizations that act solely as clearing 
firms in NYSE-listed and UTP securities.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange also believes that the proposed rule change is 
consistent with Sections 6(b)(4) of the Act \10\ because it provides 
for the equitable allocation of reasonable dues, fees, and other 
charges among its members, issuers and other persons using its 
facilities and does not unfairly discriminate between customers, 
issuers, brokers or dealers. The proposed rule change is equitable, 
reasonable, and not unfairly discriminatory because it would clarify 
the application of the Trading License fee and apply it equally to 
member organizations that act solely as a clearing firm in UTP and 
NYSE-listed securities.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    For these reasons, the Exchange believes that the proposal is 
consistent with the Act.

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

    In accordance with Section 6(b)(8) of the Act,\11\ the Exchange 
believes that the proposed rule change would not impose any burden on 
competition that is not necessary or appropriate in furtherance of the 
purposes of the Act. The proposed rule change is not designed to have a 
competitive impact. It is simply intended to amend the Exchange's rules 
to remove language from Exchange Rule 7.14(c) that was inadvertently 
included when the rule was adopted and that is inconsistent with the 
Exchange's Price List. It is not intended to address any competitive 
issues or to attract additional order flow the Exchange.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------

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

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \12\ and Rule 19b-4(f)(6) thereunder.\13\ 
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 prior to 
30 days from the date on which it was filed, or such shorter time as 
the Commission may designate, if consistent with the protection of 
investors and the public interest, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \13\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \14\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b4(f)(6)(iii),\15\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest.
---------------------------------------------------------------------------

    \14\ 17 CFR 240.19b-4(f)(6).
    \15\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such 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 under 
Section 19(b)(2)(B) \16\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

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-NYSE-2018-42 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-NYSE-2018-42. 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

[[Page 51022]]

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-
NYSE-2018-42, and should be submitted on or before October 31, 2018.
---------------------------------------------------------------------------

    \17\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-21909 Filed 10-9-18; 8:45 am]
 BILLING CODE P



                                              51020                       Federal Register / Vol. 83, No. 196 / Wednesday, October 10, 2018 / Notices

                                              Commission shall institute proceedings                      For the Commission, by the Division of              of the most significant parts of such
                                              to determine whether the proposed rule                    Trading and Markets, pursuant to delegated            statements.
                                              should be approved or disapproved.                        authority.40
                                                                                                        Eduardo A. Aleman,                                    A. Self-Regulatory Organization’s
                                              IV. Solicitation of Comments                              Assistant Secretary.
                                                                                                                                                              Statement of the Purpose of, and the
                                                Interested persons are invited to                                                                             Statutory Basis for, the Proposed Rule
                                                                                                        [FR Doc. 2018–21900 Filed 10–9–18; 8:45 am]
                                              submit written data, views, and                                                                                 Change
                                                                                                        BILLING CODE 8011–01–P
                                              arguments concerning the foregoing,                                                                             1. Purpose
                                              including whether the proposed rule
                                                                                                                                                                 The Exchange proposes to amend
                                              change is consistent with the Act.                        SECURITIES AND EXCHANGE                               Rule 7.14, Clearance and Settlement, to
                                              Comments may be submitted by any of                       COMMISSION                                            remove language that was inadvertently
                                              the following methods:
                                                                                                                                                              included when the rule was first
                                              Electronic Comments                                       [Release No. 34–84349; File No. SR–NYSE–              adopted and that is inconsistent with
                                                                                                        2018–42]                                              the Exchange’s Price List. The Exchange
                                                • Use the Commission’s internet
                                              comment form (http://www.sec.gov/                                                                               adopted Rule 7.14 as part of a proposed
                                                                                                        Self-Regulatory Organizations; New                    rule change to adopt rules for trading
                                              rules/sro.shtml); or                                      York Stock Exchange LLC; Notice of
                                                • Send an email to rule-comments@                                                                             UTP securities on Pillar, the Exchange’s
                                                                                                        Filing and Immediate Effectiveness of                 new trading technology platform.4 Rule
                                              sec.gov. Please include File Number SR–                   Proposed Rule Change To Amend Rule
                                              NASDAQ–2018–066 on the subject line.                                                                            7.14 was based on similar rules of its
                                                                                                        7.14, Clearance and Settlement                        affiliate, NYSE Arca, Inc. (‘‘NYSE
                                              Paper Comments                                                                                                  Arca’’) Rule 7.14–E and adopted by the
                                                                                                        October 3, 2018.
                                                 • Send paper comments in triplicate                       Pursuant to Section 19(b)(1) 1 of the              Exchange without any substantive
                                              to Secretary, Securities and Exchange                     Securities Exchange Act of 1934                       differences.5 Rule 7.14 applies only to
                                              Commission, 100 F Street NE,                              (‘‘Act’’) 2 and Rule 19b–4 thereunder,3               trading in UTP Securities. Paragraph (c)
                                              Washington, DC 20549–1090.                                notice is hereby given that on                        of Rule 7.14 states that ‘‘[e]ach clearing
                                              All submissions should refer to File                      September 20, 2018, New York Stock                    firm must be admitted to the Exchange
                                              Number SR–NASDAQ–2018–066. This                           Exchange LLC (‘‘NYSE’’ or ‘‘Exchange’’)               as a member organization by meeting
                                              file number should be included on the                     filed with the Securities and Exchange                the qualification requirements set forth
                                              subject line if email is used. To help the                                                                      in Rule 2.’’ Paragraph (c) of Rule 7.14
                                                                                                        Commission (‘‘Commission’’) the
                                              Commission process and review your                                                                              also includes language that exempts
                                                                                                        proposed rule change as described in
                                              comments more efficiently, please use                                                                           clearing firms from paying the regular
                                                                                                        Items I, II, and III below, which Items
                                              only one method. The Commission will                                                                            member organization fee 6 where that
                                                                                                        have been prepared by the self-
                                              post all comments on the Commission’s                                                                           clearing firm became a member
                                                                                                        regulatory organization. The
                                              internet website (http://www.sec.gov/                                                                           organization for the sole purpose of
                                                                                                        Commission is publishing this notice to
                                              rules/sro.shtml). Copies of the                                                                                 acting as a clearing firm on the
                                                                                                        solicit comments on the proposed rule
                                              submission, all subsequent                                                                                      Exchange. This language was
                                                                                                        change from interested persons.
                                              amendments, all written statements                                                                              inadvertently included when Rule 7.14
                                              with respect to the proposed rule                         I. Self-Regulatory Organization’s                     was adopted and is inconsistent with
                                              change that are filed with the                            Statement of the Terms of Substance of                the Exchange’s Price List, which does
                                              Commission, and all written                               the Proposed Rule Change                              not include language exempting clearing
                                              communications relating to the                                                                                  only member organizations from the
                                                                                                           The Exchange proposes to amend
                                              proposed rule change between the                                                                                fee’s application.7 The Exchange notes
                                                                                                        Rule 7.14, Clearance and Settlement, to
                                              Commission and any person, other than                                                                           that no such exemption exists in the
                                                                                                        remove language that is inconsistent
                                              those that may be withheld from the                                                                             Exchange’s rule governing the trading of
                                                                                                        with the Exchange’s Price List. The
                                              public in accordance with the                                                                                   NYSE-listed securities. Therefore, the
                                                                                                        proposed rule change is available on the
                                              provisions of 5 U.S.C. 552, will be                                                                             Exchange proposes to remove the
                                                                                                        Exchange’s website at www.nyse.com, at
                                              available for website viewing and                                                                               following phrase from the first sentence
                                                                                                        the principal office of the Exchange, and
                                              printing in the Commission’s Public                                                                             of Exchange Rule 7.14(c): ‘‘provided,
                                                                                                        at the Commission’s Public Reference                  however, if the clearing firm has become
                                              Reference Room, 100 F Street NE,                          Room.
                                              Washington, DC 20549, on official                                                                               a member organization for the sole
                                              business days between the hours of 10                     II. Self-Regulatory Organization’s                    purpose of acting as a clearing firm on
                                              a.m. and 3 p.m. Copies of the filing also                 Statement of the Purpose of, and                      the Exchange, such clearing firm need
                                              will be available for inspection and                      Statutory Basis for, the Proposed Rule
                                              copying at the principal office of the                    Change                                                  4 See Securities Exchange Act Release Nos. 76803;

                                                                                                                                                              (December 30, 2015), 81 FR 536 (January 6, 2016)
                                              Exchange. All comments received will                        In its filing with the Commission, the              (SR–NYSE–2015–67); and 81225 (July 27, 2017), 82
                                              be posted without change. Persons                         self-regulatory organization included                 FR 36033 (August 2, 2017) (SR–NYSE–2017–35).
                                                                                                                                                                5 Id.
                                              submitting comments are cautioned that                    statements concerning the purpose of,                   6 The ‘‘regular membership organization fee’’
                                              we do not redact or edit personal                         and basis for, the proposed rule change               referred to in Exchange Rule 7.14(c) is referred to
                                              identifying information from comment                      and discussed any comments it received                as a Trading Licenses fee in the Exchange’s Price
                                              submissions. You should submit only                       on the proposed rule change. The text                 List.
                                                                                                                                                                7 In accordance with the Price list, the Exchange
                                              information that you wish to make                         of those statements may be examined at
amozie on DSK3GDR082PROD with NOTICES1




                                                                                                                                                              charges all member organizations a Trading License
                                              available publicly. All submissions                       the places specified in Item IV below.                fee on an annual basis. All member organizations
                                              should refer to File Number SR–                           The Exchange has prepared summaries,                  with 10 or more trading licenses are charged a fee
                                              NASDAQ–2018–066 and should be                             set forth in sections A, B, and C below,              or $50,000 for the first trading license held by the
                                              submitted on or before October 31,                                                                              member organization unless they qualify for a
                                                                                                                                                              reduced rate. See the Exchange’s Price List on pages
                                              2018.                                                       1 15 U.S.C. 78s(b)(1).                              33–34 available at https://www.nyse.com/
                                                                                                          2 15 U.S.C. 78a.                                    publicdocs/nyse/markets/nyse/NYSE_Price_List.pdf
                                                40 17   CFR 200.30–3(a)(12).                              3 17 CFR 240.19b–4.                                 (dated September 4, 2018).



                                         VerDate Sep<11>2014     21:20 Oct 09, 2018   Jkt 247001   PO 00000   Frm 00137   Fmt 4703   Sfmt 4703   E:\FR\FM\10OCN1.SGM   10OCN1


                                                                          Federal Register / Vol. 83, No. 196 / Wednesday, October 10, 2018 / Notices                                          51021

                                              not pay the regular member organization                  the application of the Trading License                action is consistent with the protection
                                              fee’’.                                                   fee and apply it equally to member                    of investors and the public interest.
                                                                                                       organizations that act solely as a                       At any time within 60 days of the
                                              2. Statutory Basis                                                                                             filing of such proposed rule change, the
                                                                                                       clearing firm in UTP and NYSE-listed
                                                 The Exchange believes that the                        securities.                                           Commission summarily may
                                              proposal is consistent with Section 6(b)                   For these reasons, the Exchange                     temporarily suspend such rule change if
                                              of the Act,8 in general, and furthers the                believes that the proposal is consistent              it appears to the Commission that such
                                              objectives of Sections 6(b)(5) of the Act,9              with the Act.                                         action is necessary or appropriate in the
                                              in particular, because it is designed to                                                                       public interest, for the protection of
                                              promote just and equitable principles of                 B. Self-Regulatory Organization’s                     investors, or otherwise in furtherance of
                                              trade, remove impediments to, and                        Statement on Burden on Competition                    the purposes of the Act. If the
                                              perfect the mechanisms of, a free and                      In accordance with Section 6(b)(8) of               Commission takes such action, the
                                              open market and a national market                        the Act,11 the Exchange believes that the             Commission shall institute proceedings
                                              system and, in general, to protect                       proposed rule change would not impose                 under Section 19(b)(2)(B) 16 of the Act to
                                              investors and the public interest. The                   any burden on competition that is not                 determine whether the proposed rule
                                              Exchange believes that the proposed                      necessary or appropriate in furtherance               change should be approved or
                                              rule change would remove impediments                     of the purposes of the Act. The                       disapproved.
                                              to, and perfect the mechanisms of, a free                proposed rule change is not designed to
                                              and open market and a national market                                                                          IV. Solicitation of Comments
                                                                                                       have a competitive impact. It is simply
                                              system and, in general, protect investors                intended to amend the Exchange’s rules                  Interested persons are invited to
                                              and the public interest because it would                 to remove language from Exchange Rule                 submit written data, views, and
                                              remove language from Exchange Rule                       7.14(c) that was inadvertently included               arguments concerning the foregoing,
                                              7.14(c) that was inadvertently included                  when the rule was adopted and that is                 including whether the proposed rule
                                              when the rule was adopted and that is                    inconsistent with the Exchange’s Price                change is consistent with the Act.
                                              inconsistent with the Exchange’s Price                   List. It is not intended to address any               Comments may be submitted by any of
                                              List. The proposed rule change would                     competitive issues or to attract                      the following methods:
                                              delete language from Rule 7.14(c) that                   additional order flow the Exchange.                   Electronic Comments
                                              incorrectly exempts clearing only
                                              member organizations from the Trading                    C. Self-Regulatory Organization’s                       • Use the Commission’s internet
                                              License fee and would, therefore,                        Statement on Comments on the                          comment form (http://www.sec.gov/
                                              remove an inconsistency between Rule                     Proposed Rule Change Received From                    rules/sro.shtml); or
                                              7.14 and the Exchange’s Price List. Rule                 Members, Participants, or Others                        • Send an email to rule-comments@
                                              7.14 applies only to trading in UTP                                                                            sec.gov. Please include File Number SR–
                                                                                                         No written comments were solicited
                                              Securities. No member organizations                                                                            NYSE–2018–42 on the subject line.
                                                                                                       or received with respect to the proposed
                                              currently acts solely as a clearing firm                 rule change.                                          Paper Comments
                                              for UTP Securities and, therefore, no
                                              member organization would be affected                    III. Date of Effectiveness of the                       • Send paper comments in triplicate
                                              by the proposed rule change. The                         Proposed Rule Change and Timing for                   to Secretary, Securities and Exchange
                                              proposed rule change should avoid                        Commission Action                                     Commission, 100 F Street NE,
                                              potential confusion about the                                                                                  Washington, DC 20549–1090.
                                                                                                          The Exchange has filed the proposed
                                              applicability of the Trading License fee                                                                       All submissions should refer to File
                                                                                                       rule change pursuant to Section
                                              should a member organization seek to                                                                           Number SR–NYSE–2018–42. This file
                                                                                                       19(b)(3)(A)(iii) of the Act 12 and Rule
                                              act solely as a clearing firm on the                                                                           number should be included on the
                                                                                                       19b–4(f)(6) thereunder.13 Because the
                                              Exchange in UTP Securities. Lastly, the                                                                        subject line if email is used. To help the
                                                                                                       proposed rule change does not: (i)
                                              Exchange notes that no such exemption                                                                          Commission process and review your
                                                                                                       Significantly affect the protection of
                                              exists in the Exchange’s rule governing                                                                        comments more efficiently, please use
                                                                                                       investors or the public interest; (ii)
                                              the trading of NYSE-listed securities.                                                                         only one method. The Commission will
                                                                                                       impose any significant burden on
                                              Therefore, the proposed rule change                                                                            post all comments on the Commission’s
                                                                                                       competition; and (iii) become operative
                                              would allow for the consistent                                                                                 internet website (http://www.sec.gov/
                                                                                                       prior to 30 days from the date on which
                                              application of the Trading License fee                                                                         rules/sro.shtml). Copies of the
                                                                                                       it was filed, or such shorter time as the
                                              among member organizations that act                                                                            submission, all subsequent
                                                                                                       Commission may designate, if
                                              solely as clearing firms in NYSE-listed                                                                        amendments, all written statements
                                                                                                       consistent with the protection of
                                              and UTP securities.                                                                                            with respect to the proposed rule
                                                                                                       investors and the public interest, the
                                                 The Exchange also believes that the                                                                         change that are filed with the
                                                                                                       proposed rule change has become
                                              proposed rule change is consistent with                                                                        Commission, and all written
                                                                                                       effective pursuant to Section 19(b)(3)(A)
                                              Sections 6(b)(4) of the Act 10 because it                                                                      communications relating to the
                                                                                                       of the Act and Rule 19b–4(f)(6)(iii)
                                              provides for the equitable allocation of                                                                       proposed rule change between the
                                                                                                       thereunder.
                                              reasonable dues, fees, and other charges                                                                       Commission and any person, other than
                                                                                                          A proposed rule change filed under
                                              among its members, issuers and other                                                                           those that may be withheld from the
                                                                                                       Rule 19b–4(f)(6) 14 normally does not
                                              persons using its facilities and does not                                                                      public in accordance with the
                                                                                                       become operative prior to 30 days after
                                              unfairly discriminate between                                                                                  provisions of 5 U.S.C. 552, will be
                                                                                                       the date of the filing. However, pursuant
                                              customers, issuers, brokers or dealers.                                                                        available for website viewing and
amozie on DSK3GDR082PROD with NOTICES1




                                                                                                       to Rule 19b4(f)(6)(iii),15 the Commission
                                              The proposed rule change is equitable,                                                                         printing in the Commission’s Public
                                                                                                       may designate a shorter time if such
                                              reasonable, and not unfairly                                                                                   Reference Room, 100 F Street NE,
                                              discriminatory because it would clarify                    11 15 U.S.C. 78f(b)(8).                             Washington, DC 20549, on official
                                                                                                         12 15 U.S.C. 78s(b)(3)(A)(iii).                     business days between the hours of
                                                8 15 U.S.C. 78f(b).                                      13 17 CFR 240.19b–4(f)(6).                          10:00 a.m. and 3:00 p.m. Copies of the
                                                9 15 U.S.C. 78f(b)(5).                                   14 17 CFR 240.19b–4(f)(6).
                                                10 15 U.S.C. 78f(b)(4).                                  15 17 CFR 240.19b–4(f)(6)(iii).                       16 15   U.S.C. 78s(b)(2)(B).



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                                              51022                     Federal Register / Vol. 83, No. 196 / Wednesday, October 10, 2018 / Notices

                                              filing also will be available for                       (the ‘‘Fee Schedule’’) to modify certain              comment letter on the proposal.6 The
                                              inspection and copying at the principal                 of the Exchange’s system connectivity                 Proposed Fee Increases remained in
                                              office of the Exchange. All comments                    fees.                                                 effect until they were temporarily
                                              received will be posted without change.                    The text of the proposed rule change               suspended pursuant to a suspension
                                              Persons submitting comments are                         is available on the Exchange’s website at             order (the ‘‘Suspension Order’’) issued
                                              cautioned that we do not redact or edit                 http://www.miaxoptions.com/rule-                      by the Commission.7 The Suspension
                                              personal identifying information from                   filings/pearl at MIAX PEARL’s principal               Order also instituted proceedings to
                                              comment submissions. You should                         office, and at the Commission’s Public                determine whether to approve or
                                              submit only information that you wish                   Reference Room.                                       disapprove the proposed rule change.8
                                              to make available publicly. All                                                                                  The Healthy Markets Letter argued
                                                                                                      II. Self-Regulatory Organization’s                    that the Exchange did not provide
                                              submissions should refer to File
                                                                                                      Description of the Proposed Rule                      sufficient information in its filing to
                                              Number SR–NYSE–2018–42, and
                                                                                                      Change                                                support a finding that the proposal is
                                              should be submitted on or before
                                              October 31, 2018.                                          In its filing with the Commission, the             consistent with the Act. Specifically, the
                                                For the Commission, by the Division of                Exchange included statements                          Healthy Markets Letter objected to the
                                              Trading and Markets, pursuant to delegated              concerning the purpose of and basis for               Exchange’s reliance on the fees of other
                                              authority.17                                            the proposed rule change and discussed                exchanges to demonstrate that its fee
                                              Eduardo A. Aleman,                                      any comments it received on the                       increases are consistent with the Act. In
                                              Assistant Secretary.                                    proposed rule change. The text of these               addition, the Healthy Markets Letter
                                              [FR Doc. 2018–21909 Filed 10–9–18; 8:45 am]
                                                                                                      statements may be examined at the                     argued that the Exchange did not offer
                                                                                                      places specified in Item IV below. The                any details to support its basis for
                                              BILLING CODE P
                                                                                                      Exchange has prepared summaries, set                  asserting that the proposed fee increases
                                                                                                      forth in sections A, B, and C below, of               are consistent with the Act. The
                                              SECURITIES AND EXCHANGE                                 the most significant aspects of such                  Exchange is now re-filing the Proposed
                                              COMMISSION                                              statements.                                           Fee Increases, and is also providing
                                                                                                                                                            additional detail regarding the basis for
                                              [Release No. 34–84358; File No. SR–                     A. Self-Regulatory Organization’s                     the Proposed Fee Increases. The
                                              PEARL–2018–19                                           Statement of the Purpose of, and                      proposed rule change is immediately
                                                                                                      Statutory Basis for, the Proposed Rule                effective upon filing with the
                                              Self-Regulatory Organizations; MIAX                     Change                                                Commission pursuant to Section
                                              PEARL, LLC; Notice of Filing of a
                                                                                                      1. Purpose                                            19(b)(3)(A) of the Act.
                                              Proposed Rule Change To Amend the                                                                                The Exchange currently offers various
                                              Fee Schedule Regarding Connectivity                        The Exchange proposes to amend the                 bandwidth alternatives for connectivity
                                              Fees for Members and Non-Members;                       Fee Schedule regarding connectivity to                to the Exchange, consisting of a 1Gb
                                              Suspension of and Order Instituting                     the Exchange. Specifically, the                       fiber connection, a 10Gb fiber
                                              Proceedings To Determine Whether To                     Exchange proposes to amend Sections                   connection, and a 10Gb ULL fiber
                                              Approve or Disapprove the Proposed                      5(a) and (b) of the Fee Schedule to                   connection. The 10Gb ULL offering uses
                                              Rule Change                                             increase the network connectivity fees                an ultra-low latency switch, which
                                                                                                      for the 1 Gigabit (‘‘Gb’’) fiber                      provides faster processing of messages
                                              October 3, 2018.
                                                                                                      connection, the 10Gb fiber connection,                sent to it in comparison to the switch
                                                 Pursuant to Section 19(b)(1) of the                  and the 10Gb ultra-low latency (‘‘ULL’’)
                                              Securities Exchange Act of 1934                                                                               used for the other types of connectivity.
                                                                                                      fiber connection, which are charged to                The Exchange currently assesses the
                                              (‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                                                                      both Members 3 and non-Members of the                 following monthly network connectivity
                                              notice is hereby given that on
                                                                                                      Exchange for connectivity to the                      fees to both Members and non-Members
                                              September 18, 2018, MIAX PEARL, LLC
                                                                                                      Exchange’s primary/secondary facility.                for connectivity to the Exchange’s
                                              (‘‘MIAX PEARL’’ or ‘‘Exchange’’) filed
                                                                                                      The Exchange also proposes to increase                primary/secondary facility: (a) $1,100
                                              with the Securities and Exchange
                                                                                                      the network connectivity fees for the                 for the 1Gb connection; (b) $5,500 for
                                              Commission (‘‘Commission’’) a
                                                                                                      1Gb and 10Gb fiber connections for                    the 10Gb connection; and (c) $8,500.00
                                              proposed rule change as described in
                                                                                                      connectivity to the Exchange’s disaster               for the 10Gb ULL connection. The
                                              Items I and II below, which Items have
                                                                                                      recovery facility. These proposed fee                 Exchange also assesses to both Members
                                              been prepared by the Exchange. The
                                                                                                      increases are collectively referred to                and non-Members a monthly per
                                              Commission is publishing this notice to
                                                                                                      herein as the ‘‘Proposed Fee Increases.’’             connection network connectivity fee of
                                              solicit comments on the proposed rule                      The Exchange initially filed the
                                              change from interested persons and is,                                                                        $500 for each 1Gb connection to the
                                                                                                      Proposed Fee Increases on July 31, 2018,              disaster recovery facility and a monthly
                                              pursuant to Section 19(b)(3)(C) of the                  designating the Proposed Fee Increases
                                              Act, hereby: (i) Temporarily suspending                                                                       per connection network connectivity fee
                                                                                                      effective August 1, 2018.4 The proposed               of $2,500 for each 10Gb connection to
                                              the proposed rule change; and (ii)                      rule change was published for comment
                                              instituting proceedings to determine                                                                          the disaster recovery facility.
                                                                                                      in the Federal Register on August 13,                    The Exchange’s MIAX Express
                                              whether to approve or disapprove the                    2018.5 The Commission received one
                                              proposed rule change.                                                                                         Network Interconnect (‘‘MENI’’) can be
                                                                                                                                                            configured to provide Members and
                                              I. Self-Regulatory Organization’s                          3 The term ‘‘Member’’ means an individual or
                                                                                                                                                            non-Members of the Exchange network
                                              Statement of the Terms of Substance of                  organization that is registered with the Exchange
                                                                                                                                                            connectivity to the trading platforms,
amozie on DSK3GDR082PROD with NOTICES1




                                                                                                      pursuant to Chapter II of the Exchange’s Rules for
                                              the Proposed Rule Change                                purposes of trading on the Exchange as an
                                                 The Exchange is filing a proposal to                 ‘‘Electronic Exchange Member’’ or ‘‘Market Maker.’’      6 See Letter from Tyler Gellasch, Executive

                                                                                                      Members are deemed ‘‘members’’ under the              Director, The Healthy Markets Association, to Brent
                                              amend the MIAX PEARL Fee Schedule                       Exchange Act. See Exchange Rule 100.                  J. Fields, Secretary, Commission, dated September
                                                                                                         4 See Securities Exchange Act Release No. 83785    4, 2018 (‘‘Healthy Markets Letter’’).
                                                17 17 CFR 200.30–3(a)(12).                            (August 7, 2018), 83 FR 40101 (August 13,                7 See Securities Exchange Act Release No. 34–
                                                1 15 U.S.C. 78s(b)(1).                                2018)(SR–PEARL–2018–16).                              84177 (September 17, 2018).
                                                2 17 CFR 240.19b–4.                                      5 Id.                                                 8 Id.




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Document Created: 2018-10-10 17:38:31
Document Modified: 2018-10-10 17:38:31
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation83 FR 51020 

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