83 FR 54801 - Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Derivative Securities Traded Under Unlisted Trading Privileges
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 211 (October 31, 2018)
Federal Register Volume 83, Issue 211 (October 31, 2018)
| Page Range | 54801-54803 | |
| FR Document | 2018-23731 |
[Federal Register Volume 83, Number 211 (Wednesday, October 31, 2018)] [Notices] [Pages 54801-54803] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-23731] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-84488; File No. SR-NASDAQ-2018-082] Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Derivative Securities Traded Under Unlisted Trading Privileges October 25, 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 12, 2018, The Nasdaq Stock Market LLC (``Nasdaq'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Nasdaq Rule 5740 related to derivative securities traded under unlisted trading privileges (``UTP'') to remove the requirement in Rule 5740(a)(1) for the Exchange to file with the Commission a Form 19b-4(e) for each ``new derivative securities product'' as defined in Rule 19b-4(e) under the Act \3\ (``Derivative Security'') traded under UTP and renumber the remaining provisions of Rule 5740(a) to maintain an organized rule structure. The Exchange has designated this rule change as ``non-controversial'' under Section 19(b)(3)(A) of the Act \4\ and provided the Commission with the notice required by Rule 19b-4(f)(6) thereunder.\5\ --------------------------------------------------------------------------- \3\ 17 CFR 240.19b-4(e) \4\ 15 U.S.C. 78s(b)(3)(A). \5\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- The text of the proposed rule change is available on the Exchange's website at http://nasdaq.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 purpose of the proposed rule change is to amend Rule 5740 related to derivative securities traded under UTP by removing the requirement in Rule 5740(a)(1) for the Exchange to file with the Commission a Form 19b-4(e) for each Derivative Security, and renumbering the remaining rules of Rule 5740(a) to maintain an organized rule structure, as described below. Rule 5740(a)(1) sets forth the requirement for Nasdaq to file with the Commission a Form 19b-4(e) with respect to each Derivative Security that is traded under UTP. However, Nasdaq believes that it should not be necessary to file a Form 19b-4(e) with the Commission if it begins trading a Derivative Security on a UTP basis, because Rule 19b-4(e)(1) under the Act refers to the ``listing and trading'' of a ``new derivative securities product.'' The Exchange believes that the requirements of that rule refers to when an exchange lists and trades a Derivative Security, and not when an exchange seeks only to trade such product on a UTP basis pursuant to Rule 12f-2 under the Act.\6\ Therefore, Nasdaq proposes to delete the requirement in current Rule 5740(a)(1) for Nasdaq to file a Form 19b-4(e) with the Commission with respect to each Derivative Security it begins trading on a UTP basis. In addition, as a result of the deletion of [[Page 54802]] current Rule 5740(a)(1) Nasdaq proposes to renumber current Rules 5740(a)(2)-(6), as Rules 5740(a)(1)-(5) respectively. --------------------------------------------------------------------------- \6\ 17 CFR 240.12f-2. --------------------------------------------------------------------------- 2. Statutory Basis Nasdaq believes that the proposed rule change is consistent with the provisions of Section 6(b) \7\ of the Act in general, and furthers the objectives of Section 6(b)(5) of the Act \8\ in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, 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. Specifically, eliminating the requirement to file a Form 19b-4(e) for each Derivative Security the Exchange begins trading on a UTP basis removes an unnecessary regulatory requirement thereby providing for a more efficient process for adding Derivative Securities to trading on the Exchange on a UTP basis. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f(b). \8\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- In addition, the Exchange notes that a substantially identical proposed rule change by NYSE National, Inc. (``NYSE National'') was recently approved by the Commission.\9\ In particular, the Commission noted in the approval order that it ``believes that the filing of a Form 19b-4(e) is not required when an Exchange is trading a new derivative securities product on a UTP basis only'' \10\ and also found that the NYSE National's proposed rule change is ``consistent with the requirements of Section 6(b)(5) of the Act.'' \11\ --------------------------------------------------------------------------- \9\ See Securities Exchange Act Release No. 83289 (May 17, 2018), 83 FR 23968 (May 23, 2018) (Order Approving File No. SR- NYSENAT-2018-02). \10\ See supra note 9 at page 23975 at footnote 149. \11\ See supra note 9 at page 23975-6. --------------------------------------------------------------------------- With respect to the renumbering of current Rules 5740(a)(2)-(6) as Rules 5740(a)(1)-(5), the Exchange believes that these changes are consistent with the Act because they will allow the Exchange to maintain a clear and organized rule structure, thus preventing investor confusion. For these reasons, Nasdaq believes the proposed rule change is consistent with the requirements of Section 6(b)(5) of the Act. B. Self-Regulatory Organization's Statement on Burden on Competition Nasdaq does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. To the contrary, removing the requirement to file a Form 19b-4(e) will serve to enhance competition by providing for the efficient addition of Derivative Securities for trading under UTP on Nasdaq. To the extent that a competitor marketplace believes that the proposed rule change places it at a competitive disadvantage, it may file with the Commission a proposed rule change to adopt the same or similar rule. In addition, the proposal to renumber the current Rules 5740(a)(2)- (6) as Rules 5740(a)(1)-(5) does not impact competition in any respect since it merely maintains a clear and organized rule structure. 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 \12\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\13\ --------------------------------------------------------------------------- \12\ 15 U.S.C. 78s(b)(3)(A)(iii). \13\ 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. --------------------------------------------------------------------------- The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Commission notes that the Exchange's proposal is similar to a proposal the Commission has previously approved.\14\ Accordingly, the Commission believes that the proposal raises no new or novel regulatory issues and waiver of the 30-day operative delay is consistent with the protection of investors and the public interest. The Commission therefore waives the 30-day operative delay and designates the proposed rule change to be operative upon filing.\15\ --------------------------------------------------------------------------- \14\ See supra note 9. \15\ For purposes only of waiving the 30-day operative delay, the Commission has also considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to rule-comments@sec.gov. Please include File Number SR-NASDAQ-2018-082 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-NASDAQ-2018-082. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's internet website (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission's Public Reference Room, 100 F Street NE, Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All [[Page 54803]] submissions should refer to File Number SR-NASDAQ-2018-082 and should be submitted on or before November 21, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\16\ --------------------------------------------------------------------------- \16\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-23731 Filed 10-30-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 211 / Wednesday, October 31, 2018 / Notices 54801
public interest, for the protection of comment submissions. You should Commission with the notice required by
investors, or otherwise in furtherance of submit only information that you wish Rule 19b–4(f)(6) thereunder.5
the purposes of the Act. If the to make available publicly. All The text of the proposed rule change
Commission takes such action, the submissions should refer to File is available on the Exchange’s website at
Commission shall institute proceedings Number SR–NYSEARCA–2018–76 and http://nasdaq.cchwallstreet.com, at the
under Section 19(b)(2)(B) 8 of the Act to should be submitted on or before principal office of the Exchange, and at
determine whether the proposed rule November 21, 2018. the Commission’s Public Reference
change should be approved or For the Commission, by the Division of Room.
disapproved. Trading and Markets, pursuant to delegated II. Self-Regulatory Organization’s
IV. Solicitation of Comments authority.9 Statement of the Purpose of, and
Eduardo A. Aleman, Statutory Basis for, the Proposed Rule
Interested persons are invited to Assistant Secretary.
submit written data, views, and Change
[FR Doc. 2018–23733 Filed 10–30–18; 8:45 am]
arguments concerning the foregoing, In its filing with the Commission, the
BILLING CODE 8011–01–P Exchange included statements
including whether the proposed rule
change is consistent with the Act. concerning the purpose of and basis for
Comments may be submitted by any of the proposed rule change and discussed
SECURITIES AND EXCHANGE any comments it received on the
the following methods:
COMMISSION proposed rule change. The text of these
Electronic Comments statements may be examined at the
[Release No. 34–84488; File No. SR–
• Use the Commission’s internet NASDAQ–2018–082] places specified in Item IV below. The
comment form (http://www.sec.gov/ Exchange has prepared summaries, set
rules/sro.shtml); or Self-Regulatory Organizations; The forth in sections A, B, and C below, of
• Send an email to rule-comments@ Nasdaq Stock Market LLC; Notice of the most significant aspects of such
sec.gov. Please include File Number SR– Filing and Immediate Effectiveness of statements.
NYSEARCA–2018–76 on the subject Proposed Rule Change Relating to
line. Derivative Securities Traded Under A. Self–Regulatory Organization’s
Unlisted Trading Privileges Statement of the Purpose of, and
Paper Comments Statutory Basis for, the Proposed Rule
• Send paper comments in triplicate October 25, 2018. Change
to Brent J. Fields, Secretary, Securities Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 1. Purpose
and Exchange Commission, 100 F Street
NE, Washington, DC 20549–1090. (‘‘Act’’),1 and Rule 19b–4 thereunder,2 The purpose of the proposed rule
notice is hereby given that on October change is to amend Rule 5740 related to
All submissions should refer to File
12, 2018, The Nasdaq Stock Market LLC derivative securities traded under UTP
Number SR–NYSEARCA–2018–76. This
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the by removing the requirement in Rule
file number should be included on the
Securities and Exchange Commission 5740(a)(1) for the Exchange to file with
subject line if email is used. To help the
(‘‘Commission’’) the proposed rule the Commission a Form 19b–4(e) for
Commission process and review your
change as described in Items I and II each Derivative Security, and
comments more efficiently, please use
below, which Items have been prepared renumbering the remaining rules of Rule
only one method. The Commission will 5740(a) to maintain an organized rule
post all comments on the Commission’s by the Exchange. The Commission is
publishing this notice to solicit structure, as described below.
internet website (http://www.sec.gov/ Rule 5740(a)(1) sets forth the
rules/sro.shtml). Copies of the comments on the proposed rule change
from interested persons. requirement for Nasdaq to file with the
submission, all subsequent Commission a Form 19b–4(e) with
amendments, all written statements I. Self-Regulatory Organization’s respect to each Derivative Security that
with respect to the proposed rule Statement of the Terms of Substance of is traded under UTP. However, Nasdaq
change that are filed with the the Proposed Rule Change believes that it should not be necessary
Commission, and all written The Exchange proposes to amend to file a Form 19b–4(e) with the
communications relating to the Nasdaq Rule 5740 related to derivative Commission if it begins trading a
proposed rule change between the securities traded under unlisted trading Derivative Security on a UTP basis,
Commission and any person, other than privileges (‘‘UTP’’) to remove the because Rule 19b–4(e)(1) under the Act
those that may be withheld from the requirement in Rule 5740(a)(1) for the refers to the ‘‘listing and trading’’ of a
public in accordance with the Exchange to file with the Commission a ‘‘new derivative securities product.’’
provisions of 5 U.S.C. 552, will be Form 19b–4(e) for each ‘‘new derivative The Exchange believes that the
available for website viewing and securities product’’ as defined in Rule requirements of that rule refers to when
printing in the Commission’s Public 19b–4(e) under the Act 3 (‘‘Derivative an exchange lists and trades a Derivative
Reference Room, 100 F Street NE, Security’’) traded under UTP and Security, and not when an exchange
Washington, DC 20549 on official renumber the remaining provisions of seeks only to trade such product on a
business days between the hours of Rule 5740(a) to maintain an organized UTP basis pursuant to Rule 12f–2 under
10:00 a.m. and 3:00 p.m. Copies of the rule structure. The Exchange has the Act.6 Therefore, Nasdaq proposes to
filing also will be available for designated this rule change as ‘‘non- delete the requirement in current Rule
inspection and copying at the principal 5740(a)(1) for Nasdaq to file a Form
amozie on DSK3GDR082PROD with NOTICES1
controversial’’ under Section 19(b)(3)(A)
office of the Exchange. All comments of the Act 4 and provided the 19b–4(e) with the Commission with
received will be posted without change. respect to each Derivative Security it
Persons submitting comments are 9 17 CFR 200.30–3(a)(12). begins trading on a UTP basis. In
cautioned that we do not redact or edit 1 15 U.S.C. 78s(b)(1). addition, as a result of the deletion of
personal identifying information from 2 17 CFR 240.19b–4.
3 17 CFR 240.19b–4(e) 5 17 CFR 240.19b–4(f)(6).
8 15 U.S.C. 78s(b)(2)(B). 4 15 U.S.C. 78s(b)(3)(A). 6 17 CFR 240.12f–2.
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![Federal Register / Vol. 83, No. 211 / Wednesday, October 31, 2018 / Notices 54803
submissions should refer to File the proposed information collection to the FAA which oversees the certificates
Number SR–NASDAQ–2018–082 and the Office of Information and Regulatory and FAA approvals.
should be submitted on or before Affairs, Office of Management and The collection is necessary for the
November 21, 2018. Budget. Comments should be addressed FAA to determine qualification and the
For the Commission, by the Division of to the attention of the Desk Officer, ability of the applicant to safely
Trading and Markets, pursuant to delegated Department of Transportation/FAA, and dispatch aircraft. Without this collection
authority.16 sent via electronic mail to oira_ of information, applicants for a
Eduardo A. Aleman, submission@omb.eop.gov, or faxed to certificate or course approval would not
Assistant Secretary. (202) 395–6974, or mailed to the Office be able to receive certification or
[FR Doc. 2018–23731 Filed 10–30–18; 8:45 am] of Information and Regulatory Affairs, approval. The collection of information
Office of Management and Budget, for those who choose to train aircraft
BILLING CODE 8011–01–P
Docket Library, Room 10102, 725 17th dispatcher applicants is to protect the
Street NW, Washington, DC 20503. applicants by ensuring that they are
Public Comments Invited: You are properly trained.
DEPARTMENT OF TRANSPORTATION Respondents: 1,288.
asked to comment on any aspect of this
information collection, including (a) Frequency: On occasion.
Federal Aviation Administration Estimated Average Burden per
Whether the proposed collection of
Agency Information Collection information is necessary for FAA’s Response: 4.8 hours.
Estimated Total Annual Burden:
Activities: Requests for Comments; performance; (b) the accuracy of the
6,351.47 hours.
Clearance of a Renewed Approval of estimated burden; (c) ways for FAA to
Information Collection: Certification: enhance the quality, utility and clarity Issued in Washington, DC, on October 24,
Airmen Other Than Flight of the information collection; and (d) 2018.
Crewmembers, Subpart C, Aircraft ways that the burden could be Barbara Hall,
Dispatchers and App. A Aircraft minimized without reducing the quality FAA Information Collection Clearance
Dispatcher of the collected information. The agency Officer, Performance, Policy, and Records
Management Branch, ASP–110.
will summarize and/or include your
AGENCY: Federal Aviation [FR Doc. 2018–23722 Filed 10–30–18; 8:45 am]
comments in the request for OMB’s
Administration (FAA), DOT.
clearance of this information collection. BILLING CODE 4910–13–P
ACTION: Notice and request for
FOR FURTHER INFORMATION CONTACT:
comments.
Barbara Hall at (940) 594–5913, or by DEPARTMENT OF TRANSPORTATION
SUMMARY: In accordance with the email at: Barbara.L.Hall@faa.gov.
Paperwork Reduction Act of 1995, FAA SUPPLEMENTARY INFORMATION: Federal Aviation Administration
invites public comments about our OMB Control Number: 2120–0648.
intention to request the Office of Title: Certification: Airmen Other Agency Information Collection
Management and Budget (OMB) Than Flight Crewmembers, Subpart C, Activities: Requests for Comments;
approval to renew an information Aircraft Dispatchers and App. A Aircraft Clearance of Renewed Approval of
collection. The Federal Register Notice Dispatcher. Information Collection: Certification of
with a 60-day comment period soliciting Form Numbers: There are no forms Airmen for the Operation of Light-
comments on the following collection of associated with this collection. Sport Aircraft
information was published on August Type of Review: Renewal of an AGENCY: Federal Aviation
23, 2018. The collection involves the information collection. Administration (FAA), DOT.
information that each applicant for an Background: The Federal Register
aircraft dispatcher certificate or FAA ACTION: Notice and request for
Notice with a 60-day comment period
approval of an aircraft dispatcher course comments.
soliciting comments on the following
must submit to the FAA. These collection of information was published SUMMARY: In accordance with the
applications, reports and training course on August 23, 2018 (83 FR 42758). This Paperwork Reduction Act of 1995, FAA
materials are provided to the local collection involves the information that invites public comments about our
Flight Standards District Office of the each applicant for an aircraft dispatcher intention to request the Office of
FAA that oversees the certificate and certificate or FAA approval of an aircraft Management and Budget (OMB)
FAA approvals. The information to be dispatcher course must submit to the approval to renew an information
collected will be used to and/or is FAA to comply with 14 CFR part 65, collection. The Federal Register Notice
necessary to determine qualification and subpart C and Appendix A. These with a 60-day comment period soliciting
the ability of the applicant to safely applications, reports and training course comments on the following collection of
dispatch aircraft. Without this collection materials are provided to the information was published on August
of information, applicants for a responsible Flight Standards Office of 27, 2018.
certificate or course approval would not the FAA that oversees the certificates This collection involves the
be able to receive certification or and FAA approvals. submission of forms and other reporting
approval. The collection of information This collection involves the and recordkeeping activities. The
for those who choose to train aircraft knowledge testing that each applicant information to be collected is necessary
dispatcher applicants is to protect the for an aircraft dispatcher certificate to ensure compliance with regulations
applicants by ensuring that they are must successfully complete or governing the manufacture and
amozie on DSK3GDR082PROD with NOTICES1
properly trained. information required to obtain FAA certification of light-sport aircraft, the
DATES: Written comments should be approval of an aircraft dispatcher course training and certification of light-sport
submitted by November 30, 2018. in order to comply with 14 CFR part 65, pilots and instructors, and the
ADDRESSES: Interested persons are subpart C and Appendix A. These certification of light-sport aircraft
invited to submit written comments on applications, reports and training course Designated Pilot Examiners.
materials are provided to the DATES: Written comments should be
16 17 CFR 200.30–3(a)(12). responsible Flight Standards Office of submitted by November 30, 2018.
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Document Created: 2018-10-31 00:32:48
Document Modified: 2018-10-31 00:32:48
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 83 FR 54801 |
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