83_FR_54842 83 FR 54632 - Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Delete Current Rules on Arbitration, under Chapter 18

83 FR 54632 - Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Delete Current Rules on Arbitration, under Chapter 18

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 210 (October 30, 2018)

Page Range54632-54634
FR Document2018-23622

Federal Register, Volume 83 Issue 210 (Tuesday, October 30, 2018)
[Federal Register Volume 83, Number 210 (Tuesday, October 30, 2018)]
[Notices]
[Pages 54632-54634]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-23622]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84478; File No. SR-ISE-2018-85]


Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Delete Current 
Rules on Arbitration, under Chapter 18

October 24, 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 October 9, 2018, Nasdaq ISE, LLC (``ISE'' or ``Exchange'') filed 
with the Securities and Exchange Commission (``SEC'' or ``Commission'') 
the proposed rule change as described in Items I, II, and III, 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to delete the current rules on arbitration 
(``Current Arbitration Rules''), under Chapter 18, and incorporate by 
reference The Nasdaq Stock Market LLC's (``Nasdaq'') rules on 
arbitration at General 6 (``Proposed Arbitration Rules''), into General 
6 of 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 BX, Inc.; Nasdaq PHLX LLC; 
Nasdaq GEMX, LLC; and Nasdaq MRX, LLC (``Affiliated Exchanges''). 
The shell structure currently contains eight (8) Chapters which, 
once complete, will apply a common set of rules to the Affiliated 
Exchanges. See Securities Exchange Act Release No. 82173 (November 
29, 2017), 82 FR 57505 (December 5, 2017) (SR-ISE-2017-102).
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    The text of the proposed rule change is available on the Exchange's 
website at http://ise.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 delete the rules on arbitration, currently 
under Chapter 18, and incorporate by reference the Nasdaq rules on 
arbitration at General 6 of Nasdaq's rulebook into General 6 of the 
Exchange's Rulebook.
    The Exchange adopted the Current Arbitration Rules to ensure a fair 
and efficient manner in which to handle any dispute, claim or 
controversy arising out of, or in connection with, the business of any 
Member of the Exchange. To help administer the process of dispute 
resolution, the Exchange and FINRA are parties to a Regulatory 
Contract, pursuant to which FINRA has agreed to perform certain 
functions and provide access to certain services, including: Member 
regulation and registration; non-real time market surveillance; 
examinations and investigations; and dispute resolution. FINRA 
currently operates the largest securities dispute resolution forum in 
the United States,\4\ and has given the Exchange access to

[[Page 54633]]

these services. Under the Current Arbitration Rules, Members and 
associated persons of a Member are subject to the FINRA Code of 
Arbitration Procedure.
---------------------------------------------------------------------------

    \4\ http://www.finra.org/arbitration-and-mediation.
---------------------------------------------------------------------------

    Because the Affiliated Exchanges are also parties to similar 
Regulatory Contracts with FINRA that make their members and associated 
persons of such members subject to the FINRA Code of Arbitration 
Procedure, the Exchange believes it is pertinent that a common set of 
rules on arbitration be included in the General section of the 
Rulebook's shell. Nasdaq completed this process recently \5\ and, 
pursuant to subsequent filings, the intention is to replace the 
existing arbitration rules for each of the Affiliated Exchanges by 
incorporating the Nasdaq rules on arbitration by reference.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 83834 (August 13, 
2018), 83 FR 41115 (August 17, 2018) (SR-NASDAQ-2018-067).
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    Therefore, the Exchange will incorporate by reference the Proposed 
Arbitration Rules in ``General 6 Arbitration'' of the shell's ``General 
Rules'' section.
    The relocation and harmonization of the arbitration 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 adoption and placement of the Proposed 
Arbitration Rules to their new location in the shell will facilitate 
the use of the Rulebook by Members of the Exchange who are members of 
other Affiliated Exchanges. Moreover, the proposed changes are of a 
conforming nature and will not amend the substance of the adopted rules 
other than to update the language to that of the Proposed Arbitration 
Rules, and to make conforming cross-reference changes.
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    \6\ See footnote 3.
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    ISE will continue to file proposed rule changes to amend its 
General 6 Rules until such time as it receives an exemption from the 
Securities and Exchange Commission, pursuant to its authority under 
Section 36 of the Exchange Act of 1934 (``Act'') and Rule 0-12 \7\ 
thereunder, from the Section 19(b) filing requirements to separately 
file a proposed rule change to amend General 6.
---------------------------------------------------------------------------

    \7\ See 17 CFR 240.0-12; Securities Exchange Act Release No. 
39624 (February 5, 1998), 63 FR 8101 (February 18, 1998).
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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 structural 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 adoption and harmonization of the 
arbitration 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 proposed changes do not 
impose a burden on competition because, as previously stated, they are 
(i) of a non-substantive nature, (ii) intended to harmonize the 
structure of the Exchange's rules with those of its Affiliated 
Exchanges, and (iii) 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) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file 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.
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic 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-ISE-2018-85 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-ISE-2018-85. 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 a.m. and 3 
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

[[Page 54634]]

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-ISE-2018-85 and should be 
submitted on or before November 20, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-23622 Filed 10-29-18; 8:45 am]
 BILLING CODE 8011-01-P



                                               54632                         Federal Register / Vol. 83, No. 210 / Tuesday, October 30, 2018 / Notices

                                               subparagraph (f)(6) of Rule 19b–4                         Reference Room, 100 F Street NE,                     General 6 of the Exchange’s rulebook’s
                                               thereunder.12                                             Washington, DC 20549, on official                    (‘‘Rulebook’’) shell structure.3
                                                  At any time within 60 days of the                      business days between the hours of 10                   The text of the proposed rule change
                                               filing of the proposed rule change, the                   a.m. and 3 p.m. Copies of the filing also            is available on the Exchange’s website at
                                               Commission summarily may                                  will be available for inspection and                 http://ise.cchwallstreet.com/, at the
                                               temporarily suspend such rule change if                   copying at the principal office of the               principal office of the Exchange, and at
                                               it appears to the Commission that such                    Exchange. All comments received will                 the Commission’s Public Reference
                                               action is necessary or appropriate in the                 be posted without change. Persons                    Room.
                                               public interest, for the protection of                    submitting comments are cautioned that               II. Self-Regulatory Organization’s
                                               investors, or otherwise in furtherance of                 we do not redact or edit personal                    Statement of the Purpose of, and
                                               the purposes of the Act. If the                           identifying information from comment                 Statutory Basis for, the Proposed Rule
                                               Commission takes such action, the                         submissions. You should submit only                  Change
                                               Commission shall institute proceedings                    information that you wish to make
                                               to determine whether the proposed rule                    available publicly. All submissions                     In its filing with the Commission, the
                                               should be approved or disapproved.                        should refer to File Number SR–BX–                   Exchange included statements
                                                                                                         2018–048 and should be submitted on                  concerning the purpose of and basis for
                                               IV. Solicitation of Comments                                                                                   the proposed rule change and discussed
                                                                                                         or before November 20, 2018.
                                                 Interested persons are invited to                                                                            any comments it received on the
                                                                                                           For the Commission, by the Division of             proposed rule change. The text of these
                                               submit written data, views, and                           Trading and Markets, pursuant to delegated
                                               arguments concerning the foregoing,                                                                            statements may be examined at the
                                                                                                         authority.13
                                               including whether the proposed rule                                                                            places specified in Item IV below. The
                                                                                                         Eduardo A. Aleman,                                   Exchange has prepared summaries, set
                                               change is consistent with the Act.
                                                                                                         Assistant Secretary.                                 forth in sections A, B, and C below, of
                                               Comments may be submitted by any of
                                               the following methods:                                    [FR Doc. 2018–23620 Filed 10–29–18; 8:45 am]         the most significant aspects of such
                                                                                                         BILLING CODE 8011–01–P                               statements.
                                               Electronic Comments
                                                                                                                                                              A. Self-Regulatory Organization’s
                                                 • Use the Commission’s internet                                                                              Statement of the Purpose of, and
                                               comment form (http://www.sec.gov/                         SECURITIES AND EXCHANGE
                                                                                                         COMMISSION                                           Statutory Basis for, the Proposed Rule
                                               rules/sro.shtml); or                                                                                           Change
                                                 • Send an email to rule-comments@
                                               sec.gov. Please include File Number SR–                   [Release No. 34–84478; File No. SR–ISE–              1. Purpose
                                               BX–2018–048 on the subject line.                          2018–85]                                                The Exchange proposes to delete the
                                               Paper Comments                                                                                                 rules on arbitration, currently under
                                                                                                         Self-Regulatory Organizations; Nasdaq
                                                                                                                                                              Chapter 18, and incorporate by
                                                 • Send paper comments in triplicate                     ISE, LLC; Notice of Filing and
                                                                                                                                                              reference the Nasdaq rules on
                                               to Secretary, Securities and Exchange                     Immediate Effectiveness of Proposed
                                                                                                                                                              arbitration at General 6 of Nasdaq’s
                                               Commission, 100 F Street NE,                              Rule Change To Delete Current Rules                  rulebook into General 6 of the
                                               Washington, DC 20549–1090.                                on Arbitration, under Chapter 18                     Exchange’s Rulebook.
                                               All submissions should refer to File                      October 24, 2018.                                       The Exchange adopted the Current
                                               Number SR–BX–2018–048. This file                                                                               Arbitration Rules to ensure a fair and
                                                                                                            Pursuant to Section 19(b)(1) of the               efficient manner in which to handle any
                                               number should be included on the
                                                                                                         Securities Exchange Act of 1934                      dispute, claim or controversy arising out
                                               subject line if email is used. To help the
                                                                                                         (‘‘Act’’),1 and Rule 19b–4 thereunder,2              of, or in connection with, the business
                                               Commission process and review your
                                                                                                         notice is hereby given that on October               of any Member of the Exchange. To help
                                               comments more efficiently, please use
                                                                                                         9, 2018, Nasdaq ISE, LLC (‘‘ISE’’ or                 administer the process of dispute
                                               only one method. The Commission will
                                                                                                         ‘‘Exchange’’) filed with the Securities              resolution, the Exchange and FINRA are
                                               post all comments on the Commission’s
                                                                                                         and Exchange Commission (‘‘SEC’’ or                  parties to a Regulatory Contract,
                                               internet website (http://www.sec.gov/
                                                                                                         ‘‘Commission’’) the proposed rule                    pursuant to which FINRA has agreed to
                                               rules/sro.shtml).
                                                                                                         change as described in Items I, II, and              perform certain functions and provide
                                                 Copies of the submission, all
                                                                                                         III, below, which Items have been                    access to certain services, including:
                                               subsequent amendments, all written
                                                                                                         prepared by the Exchange. The                        Member regulation and registration;
                                               statements with respect to the proposed
                                                                                                         Commission is publishing this notice to              non-real time market surveillance;
                                               rule change that are filed with the
                                                                                                         solicit comments on the proposed rule                examinations and investigations; and
                                               Commission, and all written
                                                                                                         change from interested persons.                      dispute resolution. FINRA currently
                                               communications relating to the
                                               proposed rule change between the                          I. Self-Regulatory Organization’s                    operates the largest securities dispute
                                               Commission and any person, other than                     Statement of the Terms of Substance of               resolution forum in the United States,4
                                               those that may be withheld from the                       the Proposed Rule Change                             and has given the Exchange access to
                                               public in accordance with the
                                               provisions of 5 U.S.C. 552, will be                          The Exchange proposes to delete the                  3 Recently, the Exchange added a shell structure

                                               available for website viewing and                         current rules on arbitration (‘‘Current              to its Rulebook with the purpose of improving
                                                                                                         Arbitration Rules’’), under Chapter 18,              efficiency and readability and to align its rules
                                               printing in the Commission’s Public                                                                            closer to those of its five sister exchanges, The
khammond on DSK30JT082PROD with NOTICES




                                                                                                         and incorporate by reference The                     Nasdaq Stock Market LLC; Nasdaq BX, Inc.; Nasdaq
                                                 12 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–       Nasdaq Stock Market LLC’s (‘‘Nasdaq’’)               PHLX LLC; Nasdaq GEMX, LLC; and Nasdaq MRX,
                                               4(f)(6) requires a self-regulatory organization to give   rules on arbitration at General 6                    LLC (‘‘Affiliated Exchanges’’). The shell structure
                                               the Commission written notice of its intent to file       (‘‘Proposed Arbitration Rules’’), into               currently contains eight (8) Chapters which, once
                                               the proposed rule change at least five business days                                                           complete, will apply a common set of rules to the
                                               prior to the date of filing of the proposed rule                                                               Affiliated Exchanges. See Securities Exchange Act
                                                                                                           13 17 CFR 200.30–3(a)(12).
                                               change, or such shorter time as designated by the                                                              Release No. 82173 (November 29, 2017), 82 FR
                                                                                                           1 15 U.S.C. 78s(b)(1).                             57505 (December 5, 2017) (SR–ISE–2017–102).
                                               Commission. The Exchange has satisfied this
                                               requirement.                                                2 17 CFR 240.19b–4.                                   4 http://www.finra.org/arbitration-and-mediation.




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                                                                            Federal Register / Vol. 83, No. 210 / Tuesday, October 30, 2018 / Notices                                              54633

                                               these services. Under the Current                       objectives of Section 6(b)(5) of the Act,9                   At any time within 60 days of the
                                               Arbitration Rules, Members and                          in particular, in that it is designed to                  filing of the proposed rule change, the
                                               associated persons of a Member are                      promote just and equitable principles of                  Commission summarily may
                                               subject to the FINRA Code of                            trade, to remove impediments to and                       temporarily suspend such rule change if
                                               Arbitration Procedure.                                  perfect the mechanism of a free and                       it appears to the Commission that such
                                                  Because the Affiliated Exchanges are                 open market and a national market                         action is necessary or appropriate in the
                                               also parties to similar Regulatory                      system, and, in general to protect                        public interest, for the protection of
                                               Contracts with FINRA that make their                    investors and the public interest, by                     investors, or otherwise in furtherance of
                                               members and associated persons of such                  promoting efficiency and structural                       the purposes of the Act. If the
                                               members subject to the FINRA Code of                    conformity of the Exchange’s processes                    Commission takes such action, the
                                               Arbitration Procedure, the Exchange                     with those of the Affiliated Exchanges                    Commission shall institute proceedings
                                               believes it is pertinent that a common                  and to make the Exchange’s Rulebook                       to determine whether the proposed rule
                                               set of rules on arbitration be included in              easier to read and more accessible to its                 should be approved or disapproved.
                                               the General section of the Rulebook’s                   Members. The Exchange believes that
                                               shell. Nasdaq completed this process                                                                              IV. Solicitation of Comments
                                                                                                       the adoption and harmonization of the
                                               recently 5 and, pursuant to subsequent                  arbitration rules and cross-reference                       Interested persons are invited to
                                               filings, the intention is to replace the                updates are of a non-substantive nature.                  submit written data, views, and
                                               existing arbitration rules for each of the                                                                        arguments concerning the foregoing,
                                               Affiliated Exchanges by incorporating                   B. Self-Regulatory Organization’s                         including whether the proposed rule
                                               the Nasdaq rules on arbitration by                      Statement on Burden on Competition                        change is consistent with the Act.
                                               reference.                                                 The Exchange does not believe that                     Comments may be submitted by any of
                                                  Therefore, the Exchange will                         the proposed rule change will impose                      the following methods:
                                               incorporate by reference the Proposed                   any burden on competition not                             Electronic Comments
                                               Arbitration Rules in ‘‘General 6                        necessary or appropriate in furtherance
                                               Arbitration’’ of the shell’s ‘‘General                                                                              • Use the Commission’s internet
                                                                                                       of the purposes of the Act. The
                                               Rules’’ section.                                                                                                  comment form (http://www.sec.gov/
                                                                                                       proposed changes do not impose a
                                                  The relocation and harmonization of                                                                            rules/sro.shtml); or
                                                                                                       burden on competition because, as
                                               the arbitration rules is part of the                                                                                • Send an email to rule-comments@
                                                                                                       previously stated, they are (i) of a non-
                                               Exchange’s continued effort to promote                                                                            sec.gov. Please include File Number SR–
                                                                                                       substantive nature, (ii) intended to
                                               efficiency and conformity of its                                                                                  ISE–2018–85 on the subject line.
                                                                                                       harmonize the structure of the
                                               processes with those of its Affiliated                  Exchange’s rules with those of its                        Paper Comments
                                               Exchanges.6 The Exchange believes that                  Affiliated Exchanges, and (iii) intended                    • Send paper comments in triplicate
                                               the adoption and placement of the                       to organize the Rulebook in a way that                    to Secretary, Securities and Exchange
                                               Proposed Arbitration Rules to their new                 it will ease the Members’ navigation and                  Commission, 100 F Street NE,
                                               location in the shell will facilitate the               reading of the rules across the Affiliated                Washington, DC 20549–1090.
                                               use of the Rulebook by Members of the                   Exchanges.
                                               Exchange who are members of other                                                                                 All submissions should refer to File
                                               Affiliated Exchanges. Moreover, the                     C. Self-Regulatory Organization’s                         Number SR–ISE–2018–85. This file
                                               proposed changes are of a conforming                    Statement on Comments on the                              number should be included on the
                                               nature and will not amend the                           Proposed Rule Change Received From                        subject line if email is used. To help the
                                               substance of the adopted rules other                    Members, Participants, or Others                          Commission process and review your
                                               than to update the language to that of                                                                            comments more efficiently, please use
                                                                                                         No written comments were either
                                               the Proposed Arbitration Rules, and to                                                                            only one method. The Commission will
                                                                                                       solicited or received.
                                               make conforming cross-reference                                                                                   post all comments on the Commission’s
                                               changes.                                                III. Date of Effectiveness of the                         internet website (http://www.sec.gov/
                                                  ISE will continue to file proposed rule              Proposed Rule Change and Timing for                       rules/sro.shtml).
                                               changes to amend its General 6 Rules                    Commission Action                                           Copies of the submission, all
                                               until such time as it receives an                                                                                 subsequent amendments, all written
                                                                                                         Because the foregoing proposed rule
                                               exemption from the Securities and                                                                                 statements with respect to the proposed
                                                                                                       change does not: (i) Significantly affect
                                               Exchange Commission, pursuant to its                                                                              rule change that are filed with the
                                                                                                       the protection of investors or the public
                                               authority under Section 36 of the                                                                                 Commission, and all written
                                                                                                       interest; (ii) impose any significant
                                               Exchange Act of 1934 (‘‘Act’’) and Rule                                                                           communications relating to the
                                                                                                       burden on competition; and (iii) become
                                               0–12 7 thereunder, from the Section                                                                               proposed rule change between the
                                                                                                       operative for 30 days from the date on
                                               19(b) filing requirements to separately                                                                           Commission and any person, other than
                                                                                                       which it was filed, or such shorter time
                                               file a proposed rule change to amend                                                                              those that may be withheld from the
                                                                                                       as the Commission may designate, it has
                                               General 6.                                                                                                        public in accordance with the
                                                                                                       become effective pursuant to Section
                                                                                                                                                                 provisions of 5 U.S.C. 552, will be
                                               2. Statutory Basis                                      19(b)(3)(A)(iii) of the Act 10 and
                                                                                                                                                                 available for website viewing and
                                                                                                       subparagraph (f)(6) of Rule 19b–4
                                                  The Exchange believes that its                                                                                 printing in the Commission’s Public
                                                                                                       thereunder.11
                                               proposal is consistent with Section 6(b)                                                                          Reference Room, 100 F Street NE,
                                               of the Act,8 in general, and furthers the                 9 15
                                                                                                                                                                 Washington, DC 20549, on official
                                                                                                               U.S.C. 78f(b)(5).
                                                                                                                                                                 business days between the hours of 10
khammond on DSK30JT082PROD with NOTICES




                                                                                                         10 15  U.S.C. 78s(b)(3)(A)(iii).
                                                 5 See Securities Exchange Act Release No. 83834         11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–       a.m. and 3 p.m. Copies of the filing also
                                               (August 13, 2018), 83 FR 41115 (August 17, 2018)        4(f)(6) requires a self-regulatory organization to give   will be available for inspection and
                                               (SR–NASDAQ–2018–067).                                   the Commission written notice of its intent to file       copying at the principal office of the
                                                 6 See footnote 3.
                                                                                                       the proposed rule change at least five business days      Exchange. All comments received will
                                                 7 See 17 CFR 240.0–12; Securities Exchange Act
                                                                                                       prior to the date of filing of the proposed rule
                                               Release No. 39624 (February 5, 1998), 63 FR 8101        change, or such shorter time as designated by the
                                                                                                                                                                 be posted without change. Persons
                                               (February 18, 1998).                                    Commission. The Exchange has satisfied this               submitting comments are cautioned that
                                                 8 15 U.S.C. 78f(b).                                   requirement.                                              we do not redact or edit personal


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                                               54634                        Federal Register / Vol. 83, No. 210 / Tuesday, October 30, 2018 / Notices

                                               identifying information from comment                       The text of the proposed rule change               believes it is pertinent that a common
                                               submissions. You should submit only                     is available on the Exchange’s website at             set of rules on arbitration be included in
                                               information that you wish to make                       http://nasdaqmrx.cchwallstreet.com/, at               the General section of the Rulebook’s
                                               available publicly. All submissions                     the principal office of the Exchange, and             shell. Nasdaq completed this process
                                               should refer to File Number SR–ISE–                     at the Commission’s Public Reference                  recently 5 and, pursuant to subsequent
                                               2018–85 and should be submitted on or                   Room.                                                 filings, the intention is to replace the
                                               before November 20, 2018.                                                                                     existing arbitration rules for each of the
                                                                                                       II. Self-Regulatory Organization’s                    Affiliated Exchanges by incorporating
                                                 For the Commission, by the Division of                Statement of the Purpose of, and
                                               Trading and Markets, pursuant to delegated                                                                    the Nasdaq rules on arbitration by
                                                                                                       Statutory Basis for, the Proposed Rule                reference.
                                               authority.12
                                                                                                       Change                                                   Therefore, the Exchange will
                                               Eduardo A. Aleman,
                                               Assistant Secretary.                                      In its filing with the Commission, the              incorporate by reference the Proposed
                                                                                                       Exchange included statements                          Arbitration Rules in ‘‘General 6
                                               [FR Doc. 2018–23622 Filed 10–29–18; 8:45 am]
                                                                                                       concerning the purpose of and basis for               Arbitration’’ of the shell’s ‘‘General
                                               BILLING CODE 8011–01–P
                                                                                                       the proposed rule change and discussed                Rules’’ section.
                                                                                                       any comments it received on the                          The relocation and harmonization of
                                                                                                       proposed rule change. The text of these               the arbitration rules is part of the
                                               SECURITIES AND EXCHANGE
                                                                                                       statements may be examined at the                     Exchange’s continued effort to promote
                                               COMMISSION
                                                                                                       places specified in Item IV below. The                efficiency and conformity of its
                                               [Release No. 34–84479; File No. SR–MRX–                 Exchange has prepared summaries, set                  processes with those of its Affiliated
                                               2018–32]                                                forth in sections A, B, and C below, of               Exchanges.6 The Exchange believes that
                                                                                                       the most significant aspects of such                  the adoption and placement of the
                                               Self-Regulatory Organizations; Nasdaq                                                                         Proposed Arbitration Rules to their new
                                               MRX, LLC; Notice of Filing and                          statements.
                                                                                                                                                             location in the shell will facilitate the
                                               Immediate Effectiveness of Proposed                     A. Self-Regulatory Organization’s                     use of the Rulebook by Members of the
                                               Rule Change To Delete Current Rules                     Statement of the Purpose of, and                      Exchange who are members of other
                                               on Arbitration, Under Chapter 18                        Statutory Basis for, the Proposed Rule                Affiliated Exchanges. Moreover, the
                                                                                                       Change                                                proposed changes are of a conforming
                                               October 24, 2018.
                                                  Pursuant to Section 19(b)(1) of the                  1. Purpose                                            nature and will not amend the
                                               Securities Exchange Act of 1934                                                                               substance of the adopted rules other
                                                                                                          The Exchange proposes to delete the                than to update the language to that of
                                               (‘‘Act’’),1 and Rule 19b–4 thereunder,2                 rules on arbitration, currently under
                                               notice is hereby given that on October                                                                        the Proposed Arbitration Rules, and to
                                                                                                       Chapter 18, and incorporate by                        make conforming cross-reference
                                               9, 2018, Nasdaq MRX, LLC (‘‘MRX’’ or                    reference the Nasdaq rules on
                                               ‘‘Exchange’’) filed with the Securities                                                                       changes.
                                                                                                       arbitration at General 6 of Nasdaq’s                     MRX will continue to file proposed
                                               and Exchange Commission (‘‘SEC’’ or                     rulebook into General 6 of the
                                               ‘‘Commission’’) the proposed rule                                                                             rule changes to amend its General 6
                                                                                                       Exchange’s Rulebook.                                  Rules until such time as it receives an
                                               change as described in Items I, II, and                    The Exchange adopted the Current
                                               III, below, which Items have been                                                                             exemption from the Securities and
                                                                                                       Arbitration Rules to ensure a fair and                Exchange Commission, pursuant to its
                                               prepared by the Exchange. The                           efficient manner in which to handle any
                                               Commission is publishing this notice to                                                                       authority under Section 36 of the
                                                                                                       dispute, claim or controversy arising out             Exchange Act of 1934 (‘‘Act’’) and Rule
                                               solicit comments on the proposed rule                   of, or in connection with, the business
                                               change from interested persons.                                                                               0–12 7 thereunder, from the Section
                                                                                                       of any Member of the Exchange. To help                19(b) filing requirements to separately
                                               I. Self-Regulatory Organization’s                       administer the process of dispute                     file a proposed rule change to amend
                                               Statement of the Terms of Substance of                  resolution, the Exchange and FINRA are                General 6.
                                               the Proposed Rule Change                                parties to a Regulatory Contract,
                                                                                                       pursuant to which FINRA has agreed to                 2. Statutory Basis
                                                  The Exchange proposes to delete the
                                                                                                       perform certain functions and provide                    The Exchange believes that its
                                               current rules on arbitration (‘‘Current
                                                                                                       access to certain services, including:                proposal is consistent with Section 6(b)
                                               Arbitration Rules’’), under Chapter 18,
                                                                                                       member regulation and registration;                   of the Act,8 in general, and furthers the
                                               and incorporate by reference The
                                                                                                       non-real time market surveillance;                    objectives of Section 6(b)(5) of the Act,9
                                               Nasdaq Stock Market LLC’s (‘‘Nasdaq’’)
                                                                                                       examinations and investigations; and                  in particular, in that it is designed to
                                               rules on arbitration at General 6
                                                                                                       dispute resolution. FINRA currently                   promote just and equitable principles of
                                               (‘‘Proposed Arbitration Rules’’), into
                                                                                                       operates the largest securities dispute               trade, to remove impediments to and
                                               General 6 of the Exchange’s rulebook’s
                                                                                                       resolution forum in the United States,4               perfect the mechanism of a free and
                                               (‘‘Rulebook’’) shell structure.3
                                                                                                       and has given the Exchange access to                  open market and a national market
                                                 12 17  CFR 200.30–3(a)(12).
                                                                                                       these services. Under the Current                     system, and, in general to protect
                                                 1 15  U.S.C. 78s(b)(1).                               Arbitration Rules, Members and                        investors and the public interest, by
                                                  2 17 CFR 240.19b–4.                                  associated persons of a Member are                    promoting efficiency and structural
                                                  3 Recently, the Exchange added a shell structure     subject to the FINRA Code of                          conformity of the Exchange’s processes
                                               to its Rulebook with the purpose of improving           Arbitration Procedure.
                                               efficiency and readability and to align its rules
khammond on DSK30JT082PROD with NOTICES




                                                                                                          Because the Affiliated Exchanges are                 5 See Securities Exchange Act Release No. 83834
                                               closer to those of its five sister exchanges, The
                                               Nasdaq Stock Market LLC; Nasdaq BX, Inc.; Nasdaq        also parties to similar Regulatory                    (August 13, 2018), 83 FR 41115 (August 17, 2018)
                                                                                                       Contracts with FINRA that make their                  (SR–NASDAQ–2018–067).
                                               PHLX LLC; Nasdaq ISE, LLC; and Nasdaq GEMX,                                                                     6 See footnote 3.
                                               LLC (‘‘Affiliated Exchanges’’). The shell structure     members and associated persons of such                  7 See 17 CFR 240.0–12; Securities Exchange Act
                                               currently contains eight (8) Chapters which, once       members subject to the FINRA Code of
                                               complete, will apply a common set of rules to the                                                             Release No. 39624 (February 5, 1998), 63 FR 8101
                                               Affiliated Exchanges. See Securities Exchange Act       Arbitration Procedure, the Exchange                   (February 18, 1998).
                                                                                                                                                               8 15 U.S.C. 78f(b).
                                               Release No. 82172 (November 29, 2017), 82 FR
                                               57495 (December 5, 2017) (SR–MRX–2017–26).                4 http://www.finra.org/arbitration-and-mediation.     9 15 U.S.C. 78f(b)(5).




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Document Created: 2018-10-30 00:43:30
Document Modified: 2018-10-30 00:43:30
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 54632 

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