83 FR 57758 - Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend General 8 of the Exchange's Rules

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 222 (November 16, 2018)

Page Range		57758-57761
FR Document		2018-25031
Federal Register, Volume 83 Issue 222 (Friday, November 16, 2018)
[Federal Register Volume 83, Number 222 (Friday, November 16, 2018)]
[Notices]
[Pages 57758-57761]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-25031]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84571; File No. SR-NASDAQ-2018-086]


Self-Regulatory Organizations; The Nasdaq Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend General 8 of the Exchange's Rules

November 9, 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 29, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend General 8 of the Exchange's Rules, 
as described below.
    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 Exchange proposes to amend General 8 of its Rules, which govern 
the provision by the Exchange of colocation, connectivity, and direct 
connectivity

[[Page 57759]]

services and related products, and which set forth the fees that the 
Exchange charges for those products and services, to: (1) Clarify that 
all of the products and services set forth in General 8 are shared 
among the Nasdaq Inc. affiliated exchanges--The Nasdaq Stock Market 
LLC, Nasdaq BX, Inc., Nasdaq PHLX LLC, Nasdaq ISE, LLC, Nasdaq MRX, 
LLC, and Nasdaq GEMX, LLC (collectively, the ``Nasdaq, Inc. 
Exchanges'')--meaning that a firm need only purchase these products and 
services once to be able to use them to connect to all of the Nasdaq, 
Inc. Exchanges to which the firm is otherwise entitled to connect, and 
to receive the third party services and market data feeds that it is 
otherwise entitled to receive; and (2) make other non-substantive 
changes that will further the objective of harmonizing General 8 with 
parallel rules that exist among the other Nasdaq, Inc. Exchanges.\3\
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    \3\ The other Nasdaq, Inc. Exchanges plan to file similar 
proposals in the near future.
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    The Nasdaq, Inc. Exchanges offer colocation, connectivity, and 
direct connectivity services and related products to their customers on 
a shared basis, meaning that a customer may utilize these products and 
services to gain access to any or all of the Nasdaq, Inc. Exchanges to 
which they are otherwise entitled to receive access under the Rules. 
The Nasdaq, Inc. Exchanges only charge customers once for these shared 
products and services, even to the extent that customers use the 
products and services to connect to more than one of the Nasdaq, Inc. 
Exchanges. For example, a firm that is a member or member organization, 
as applicable, of all six Nasdaq, Inc. Exchanges, and which co-locates 
its servers in the Nasdaq Data Center by purchasing a 10 GB fiber 
connection, cabinet space, cooling fans, and patch cables, only needs 
to purchase these products and services once to use them to connect to 
all six Nasdaq, Inc. Exchanges.
    Likewise, the Rules were intended to provide for connectivity to 
third-party services and market data feeds on a shared basis, meaning 
that a firm need only purchase a subscription to these services once, 
regardless of whether the firm is a member or member organization, as 
applicable, of multiple Nasdaq, Inc. Exchanges.
    Historically, the Exchange has billed customers on a shared basis 
for all of the products and services currently set forth in General 8. 
Presently, however, only certain provisions of General 8 state this 
fact expressly. That is, provisions in General 8 pertaining to 
connectivity to the Exchange, direct circuit connectivity to the 
Exchange, and point-of-presence connectivity to the Exchange, each 
state that they include connectivity to the other markets of the 
Nasdaq, Inc. Exchanges. However, other provisions in General 8--such as 
cabinets, cabinet power, fiber and wireless connectivity to market data 
feeds, and fiber and wireless connectivity to third party services--do 
not contain such language.
    Notwithstanding the absence of express language in these provisions 
of General 8, the Exchange believes that it is or should be apparent 
that a firm need only pay once to purchase products and services--like 
server cabinets, power supplies, and cables--that the firm will use to 
connect to multiple Nasdaq, Inc. Exchanges or to connect to third party 
services or market data feeds. Indeed, the Exchange is aware of no 
actual customer confusion on this issue. Nevertheless, the Exchange 
believes that the existing Rules would benefit from clarification so as 
to avoid the potential for any confusion in the future.
    Accordingly, the Exchange proposes to amend General 8 by doing the 
following: (1) Deleting the existing selective references therein to 
shared connectivity services; and (2) replacing selective references 
with the following language, which will serve as a general preface to 
General 8:

    The connectivity products and services that this Rule describes 
are shared among all of the Nasdaq, Inc. exchanges (The Nasdaq Stock 
Market, LLC, Nasdaq BX, Inc., Nasdaq PHLX, LLC, Nasdaq ISE, LLC, 
Nasdaq MRX, LLC, and Nasdaq GEMX, LLC). Fees for these products and 
services are also the same among all of the Nasdaq, Inc. exchanges. 
As such, a firm need only purchase the products and services listed 
below from any Nasdaq, Inc. exchange once to connect to any and all 
of the Nasdaq, Inc. exchanges to which it is otherwise entitled to 
connect, or to connect to third party market data feeds or services. 
For example, if a firm purchases connectivity to one Nasdaq, Inc. 
exchange and then subsequently qualifies to connect to a second 
Nasdaq, Inc. exchange, then the firm may utilize its existing 
services for connecting to the first exchange to also connect to the 
second exchange, without incurring an additional charge.

This preface will clarify that all products and services set forth in 
General 8 are offered on a shared basis and that a firm need only 
purchase them once from any of the Nasdaq, Inc. Exchanges.
    In addition to adding this preface, the Exchange also proposes 
several other non-substantive amendments to General 8 to correct 
technical errors and to harmonize it with parallel provisions set forth 
in the rules of the other Nasdaq, Inc. Exchanges. These changes will 
reconcile minor, non-substantive differences in the phrasing and 
placement of text between the Exchange's General 8 and the other 
Nasdaq, Inc. Exchanges' Sections 8. The amendments will also remove 
certain references to the name ``Nasdaq'' or replace it with general 
references to ``the Exchange.'' Finally, the amendments will replace a 
specific reference in General 8, Section 1(b) to millimeter or 
microwave wireless subscriptions under Section 7015(g)(1) with a 
general reference to ``any other provision of these Rules that provides 
for such subscriptions, as may exist, from time to time.'' The intended 
result of the proposed changes--along with similar changes that the 
other Nasdaq, Inc. Exchanges plan to propose--will be to generalize 
General 8 and render it completely identical across all six Nasdaq, 
Inc. Exchanges.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\4\ in general, and that it furthers the objectives of 
Section 6(b)(4) of the Act,\5\ in that it provides for the equitable 
allocation of reasonable dues, fees and other charges among members and 
issuers and other persons using any facility, and is not designed to 
permit unfair discrimination between customers, issuers, brokers, or 
dealers. Likewise, the Exchange believes that its proposal is 
consistent with Section 6(b)(5) of the Act,\6\ 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.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(4).
    \6\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that it is equitable for the Exchange and the 
other Nasdaq, Inc. Exchanges to collectively charge a firm only once 
for the products and services set forth in General 8 because the same 
instance of such products and services may be used by the firm to 
connect to any or all of the Nasdaq, Inc. Exchanges to which it is 
otherwise entitled to connect. Said otherwise, the Exchange does not 
believe that it would be fair for the Nasdaq, Inc. Exchanges to each 
charge separate fees to a firm to, say, rent the same cabinet space in 
the same data center or to purchase the same wires to connect its 
servers to the market data feed. Moreover, the practice of charging a 
firm once for products and services

[[Page 57760]]

with shared applicability among the Nasdaq, Inc. Exchanges is not 
unfairly discriminatory because each of the Nasdaq, Inc. Exchanges 
makes the products and services that are set forth in General 8 of 
their respective rulebooks available to all similarly situated members 
at the same prices.
    Meanwhile, the Exchange believes that it is just and equitable, and 
in the interests of the public and investors, for the Exchange to amend 
General 8 to clarify the existing practice of the Nasdaq, Inc. 
Exchanges to charge firms once to purchase shared products and 
services, and to codify that practice where it is not stated expressly 
in the Rule. Although the Exchange believes that such codification and 
clarification of General 8 are not necessary in this instance--given 
that it should be (and in the Exchange's experience, it is) apparent to 
firms that each of the Nasdaq, Inc. Exchanges will not charge them more 
than once to, say, rent the same cabinet space or to purchase the same 
wires or power supplies--the Exchange believes, nevertheless, that the 
public and investors will benefit from increased clarity to General 8. 
Even if the proposal is not needed to dispel any actual confusion about 
the Rules, it will help to limit any potential confusion in the future.
    The Exchange also believes that it is just and equitable, and in 
the interests of the public and investors, to harmonize the language of 
General 8 among all six of the Nasdaq, Inc. Exchanges. Given that 
General 8 in each of the Nasdaq, Inc. Exchanges' rulebooks sets forth 
the same products, services, and associated fees that are assessed on a 
shared basis, the language of General 8 should be uniform across these 
Exchanges to avoid any confusion about unintended disparities. The 
proposal makes minor, non-substantive changes to accomplish this 
harmonization, which include removing cross-references and names that 
are idiosyncratic to this Exchange and are not common among all of the 
Nasdaq, Inc. Exchanges.
    Lastly, the Exchange believes that its proposals to amend General 8 
are non-controversial because they merely codify and clarify the 
Exchange's existing interpretation of General 8, serve the interests of 
the public and investors in promoting a more clear and transparent 
Rulebook that is harmonized with the shared rules of the other Nasdaq, 
Inc. Exchanges, and because the proposals will not impact competition 
or limit access to or availability of the Exchange or its systems.

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 proposals merely codify and 
clarify existing practice of the Nasdaq, Inc. Exchanges to collectively 
charge a customer only once to connect to any or all of the Nasdaq, 
Inc. Exchanges of which it is a member and to connect to third party 
services. The proposals also harmonize Section 8 with corresponding 
provisions of the rulebooks of the other Nasdaq, Inc. 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) of the Act \7\ and Rule 19b-
4(f)(6) thereunder.\8\
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change, along 
with a brief description and text of the proposed rule change, at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \9\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \10\ permits the 
Commission to designate a shorter time if such action is consistent 
with the protection of investors and the public interest. The Exchange 
has requested that the Commission waive the 30-day operative delay so 
that the proposed rule change may become operative upon filing. Waiver 
of the operative delay would allow the Exchange to immediately amend 
its rules to specify that the products and services set forth in 
General 8 are shared among the Nasdaq, Inc. Exchanges and to harmonize 
General 8 with parallel rules of the other Nasdaq, Inc. Exchanges. The 
Commission believes that waiver of the 30-day operative delay is 
consistent with the protection of investors and the public interest. 
Accordingly, the Commission hereby waives the operative delay and 
designates the proposed rule change operative upon filing.\11\
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    \9\ 17 CFR 240.19b-4(f)(6).
    \10\ 17 CFR 240.19b-4(f)(6)(iii).
    \11\ For purposes only of waiving the 30-day operative delay, 
the Commission also has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is 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 change 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 rule-comments@sec.gov. Please include 
File Number SR-NASDAQ-2018-086 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-2018-086. 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

[[Page 57761]]

proposed rule change between the Commission and any person, other than 
those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for website viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE, 
Washington, DC 20549 on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change. Persons submitting 
comments are cautioned that we do not redact or edit personal 
identifying information from comment submissions. You should submit 
only information that you wish to make available publicly. All 
submissions should refer to File Number SR-NASDAQ-2018-086, and should 
be submitted on or before December 7, 2018.
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    \12\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
Brent J. Fields,
Secretary.
[FR Doc. 2018-25031 Filed 11-15-18; 8:45 am]
 BILLING CODE 8011-01-P
57758 Federal Register / Vol. 83, No. 222 / Friday, November 16, 2018 / Notices

or party on each side of a Block Trade • Send an email to rule-comments@ SECURITIES AND EXCHANGE
or ECRP transaction must agree upon sec.gov. Please include File Number SR– COMMISSION
the mistake, inaccuracy or error that CFE–2018–002 on the subject line. [Release No. 34–84571; File No. SR–
occurred in order for the Trade Desk to NASDAQ–2018–086]
bust or adjust the transaction under Paper Comments
Section G of Policy and Procedure III. • Send paper comments in triplicate Self-Regulatory Organizations; The
Additionally, the proposed rule change to Secretary, Securities and Exchange Nasdaq Stock Market LLC; Notice of
will not interfere with CFE’s ability to Filing and Immediate Effectiveness of
Commission, 100 F Street NE,
capture and retain required audit trail Proposed Rule Change To Amend
Washington, DC 20549–1090.
information relating to these General 8 of the Exchange’s Rules
transactions. All submissions should refer to File
Number SR–CFE–2018–002. This file November 9, 2018.
B. Self-Regulatory Organization’s Pursuant to Section 19(b)(1) of the
Statement on Burden on Competition number should be included on the
subject line if email is used. To help the Securities Exchange Act of 1934
CFE does not believe that the (‘‘Act’’),1 and Rule 19b–4 thereunder,2
Commission process and review your
proposed rule change will impose any notice is hereby given that on October
comments more efficiently, please use
burden on competition not necessary or 29, 2018, The Nasdaq Stock Market LLC
only one method. The Commission will (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
appropriate in furtherance of the post all comments on the Commission’s
purposes of the Act, in that the Securities and Exchange Commission
internet website (http://www.sec.gov/ (‘‘Commission’’) the proposed rule
proposed rule change will contribute to rules/sro.shtml). Copies of the
reducing market risk by enhancing the change as described in Items I and II
submission, all subsequent below, which Items have been prepared
ability of the Exchange to correct amendments, all written statements
transaction reporting errors. The by the Exchange. The Commission is
with respect to the proposed rule publishing this notice to solicit
Exchange believes that the proposed
change that are filed with the comments on the proposed rule change
rule change is equitable and not unfairly
discriminatory in that the rule Commission, and all written from interested persons.
amendments included in the proposed communications relating to the
I. Self-Regulatory Organization’s
rule change would apply equally to all proposed rule change between the Statement of the Terms of Substance of
CFE market participants. Commission and any person, other than the Proposed Rule Change
those that may be withheld from the
C. Self-Regulatory Organization’s public in accordance with the The Exchange proposes to amend
Statement on Comments on the provisions of 5 U.S.C. 552, will be General 8 of the Exchange’s Rules, as
Proposed Rule Change Received From described below.
available for website viewing and The text of the proposed rule change
Members, Participants, or Others printing in the Commission’s Public is available on the Exchange’s website at
No written comments were solicited Reference Room, 100 F Street NE, http://nasdaq.cchwallstreet.com, at the
or received with respect to the proposed Washington, DC 20549, on official principal office of the Exchange, and at
rule change. business days between the hours of the Commission’s Public Reference
10:00 a.m. and 3:00 p.m. Copies of such Room.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for filing also will be available for
inspection and copying at the principal II. Self-Regulatory Organization’s
Commission Action Statement of the Purpose of, and
office of the Exchange. All comments
The proposed rule change will Statutory Basis for, the Proposed Rule
received will be posted without change.
become operative on November 15, Change
Persons submitting comments are
2018. At any time within 60 days of the In its filing with the Commission, the
cautioned that we do not redact or edit
date of effectiveness of the proposed Exchange included statements
rule change, the Commission, after personal identifying information from concerning the purpose of and basis for
consultation with the CFTC, may comment submissions. You should the proposed rule change and discussed
summarily abrogate the proposed rule submit only information that you wish any comments it received on the
change and require that the proposed to make available publicly. All proposed rule change. The text of these
rule change be refiled in accordance submissions should refer to File statements may be examined at the
with the provisions of Section 19(b)(1) Number SR–CFE–2018–002, and should places specified in Item IV below. The
of the Act.5 be submitted on or before December 7, Exchange has prepared summaries, set
2018. forth in sections A, B, and C below, of
IV. Solicitation of Comments
For the Commission, by the Division of the most significant aspects of such
Interested persons are invited to Trading and Markets, pursuant to delegated statements.
submit written data, views, and authority.6 A. Self-Regulatory Organization’s
arguments concerning the foregoing, Eduardo A. Aleman, Statement of the Purpose of, and
including whether the proposed rule
Assistant Secretary. Statutory Basis for, the Proposed Rule
change is consistent with the Act.
[FR Doc. 2018–24982 Filed 11–15–18; 8:45 am] Change
Comments may be submitted by any of
the following methods: BILLING CODE 8011–01–P 1. Purpose
amozie on DSK3GDR082PROD with NOTICES

Electronic Comments The Exchange proposes to amend
General 8 of its Rules, which govern the
• Use the Commission’s internet provision by the Exchange of colocation,
comment form (http://www.sec.gov/ connectivity, and direct connectivity
rules/sro.shtml); or
1 15 U.S.C. 78s(b)(1).
5 15 U.S.C. 78s(b)(1). 6 17 CFR 200.30–3(a)(73). 2 17 CFR 240.19b–4.

VerDate Sep<11>2014 17:19 Nov 15, 2018 Jkt 247001 PO 00000 Frm 00045 Fmt 4703 Sfmt 4703 E:\FR\FM\16NON1.SGM 16NON1
57760 Federal Register / Vol. 83, No. 222 / Friday, November 16, 2018 / Notices

with shared applicability among the B. Self-Regulatory Organization’s among the Nasdaq, Inc. Exchanges and
Nasdaq, Inc. Exchanges is not unfairly Statement on Burden on Competition to harmonize General 8 with parallel
discriminatory because each of the The Exchange does not believe that rules of the other Nasdaq, Inc.
Nasdaq, Inc. Exchanges makes the the proposed rule change will impose Exchanges. The Commission believes
products and services that are set forth any burden on competition not that waiver of the 30-day operative
in General 8 of their respective necessary or appropriate in furtherance delay is consistent with the protection
rulebooks available to all similarly of investors and the public interest.
of the purposes of the Act. The
situated members at the same prices. Accordingly, the Commission hereby
proposals merely codify and clarify
Meanwhile, the Exchange believes waives the operative delay and
existing practice of the Nasdaq, Inc.
that it is just and equitable, and in the designates the proposed rule change
Exchanges to collectively charge a
interests of the public and investors, for operative upon filing.11
customer only once to connect to any or At any time within 60 days of the
the Exchange to amend General 8 to all of the Nasdaq, Inc. Exchanges of
clarify the existing practice of the filing of the proposed rule change, the
which it is a member and to connect to Commission summarily may
Nasdaq, Inc. Exchanges to charge firms third party services. The proposals also
once to purchase shared products and temporarily suspend such rule change if
harmonize Section 8 with it appears to the Commission that such
services, and to codify that practice corresponding provisions of the
where it is not stated expressly in the action is necessary or appropriate in the
rulebooks of the other Nasdaq, Inc. public interest, for the protection of
Rule. Although the Exchange believes Exchanges.
that such codification and clarification investors, or otherwise in furtherance of
of General 8 are not necessary in this C. Self-Regulatory Organization’s the purposes of the Act. If the
instance—given that it should be (and in Statement on Comments on the Commission takes such action, the
the Exchange’s experience, it is) Proposed Rule Change Received From Commission shall institute proceedings
apparent to firms that each of the Members, Participants, or Others to determine whether the proposed rule
Nasdaq, Inc. Exchanges will not charge change should be approved or
No written comments were either disapproved.
them more than once to, say, rent the solicited or received.
same cabinet space or to purchase the IV. Solicitation of Comments
same wires or power supplies—the III. Date of Effectiveness of the
Proposed Rule Change and Timing for Interested persons are invited to
Exchange believes, nevertheless, that submit written data, views, and
the public and investors will benefit Commission Action
arguments concerning the foregoing,
from increased clarity to General 8. Because the foregoing proposed rule including whether the proposed rule
Even if the proposal is not needed to change does not: (i) Significantly affect change is consistent with the Act.
dispel any actual confusion about the the protection of investors or the public Comments may be submitted by any of
Rules, it will help to limit any potential interest; (ii) impose any significant the following methods:
confusion in the future. burden on competition; and (iii) become
The Exchange also believes that it is operative for 30 days from the date on Electronic Comments
just and equitable, and in the interests which it was filed, or such shorter time • Use the Commission’s internet
of the public and investors, to as the Commission may designate, it has comment form (http://www.sec.gov/
harmonize the language of General 8 become effective pursuant to Section rules/sro.shtml); or
among all six of the Nasdaq, Inc. 19(b)(3)(A) of the Act 7 and Rule 19b– • Send an email to rule-comments@
Exchanges. Given that General 8 in each 4(f)(6) thereunder.8 sec.gov. Please include File Number SR–
of the Nasdaq, Inc. Exchanges’ A proposed rule change filed NASDAQ–2018–086 on the subject line.
rulebooks sets forth the same products, pursuant to Rule 19b–4(f)(6) under the Paper Comments
services, and associated fees that are Act 9 normally does not become
assessed on a shared basis, the language operative for 30 days after the date of its • Send paper comments in triplicate
of General 8 should be uniform across filing. However, Rule 19b–4(f)(6)(iii) 10 to Secretary, Securities and Exchange
these Exchanges to avoid any confusion permits the Commission to designate a Commission, 100 F Street NE,
about unintended disparities. The shorter time if such action is consistent Washington, DC 20549–1090.
proposal makes minor, non-substantive with the protection of investors and the All submissions should refer to File
changes to accomplish this public interest. The Exchange has Number SR–NASDAQ–2018–086. This
harmonization, which include removing requested that the Commission waive file number should be included on the
cross-references and names that are the 30-day operative delay so that the subject line if email is used. To help the
idiosyncratic to this Exchange and are proposed rule change may become Commission process and review your
not common among all of the Nasdaq, operative upon filing. Waiver of the comments more efficiently, please use
Inc. Exchanges. operative delay would allow the only one method. The Commission will
Lastly, the Exchange believes that its Exchange to immediately amend its post all comments on the Commission’s
proposals to amend General 8 are non- rules to specify that the products and internet website (http://www.sec.gov/
controversial because they merely services set forth in General 8 are shared rules/sro.shtml). Copies of the
codify and clarify the Exchange’s submission, all subsequent
existing interpretation of General 8, 7 15 U.S.C. 78s(b)(3)(A). amendments, all written statements
serve the interests of the public and 8 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– with respect to the proposed rule
4(f)(6)(iii) requires a self-regulatory organization to change that are filed with the
investors in promoting a more clear and give the Commission written notice of its intent to
amozie on DSK3GDR082PROD with NOTICES

transparent Rulebook that is file the proposed rule change, along with a brief Commission, and all written
harmonized with the shared rules of the description and text of the proposed rule change, communications relating to the
other Nasdaq, Inc. Exchanges, and at least five business days prior to the date of filing
of the proposed rule change, or such shorter time 11 For purposes only of waiving the 30-day
because the proposals will not impact as designated by the Commission. The Exchange operative delay, the Commission also has
competition or limit access to or has satisfied this requirement. considered the proposed rule’s impact on
availability of the Exchange or its 9 17 CFR 240.19b–4(f)(6).
efficiency, competition, and capital formation. See
systems. 10 17 CFR 240.19b–4(f)(6)(iii). 15 U.S.C. 78c(f).

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Federal Register / Vol. 83, No. 222 / Friday, November 16, 2018 / Notices 57761

proposed rule change between the V of the Gramm-Leach-Bliley Act communications such as account
Commission and any person, other than (‘‘GLBA’’), which include the opening documents and account
those that may be withheld from the requirement that, at the time of statements. Because the other
public in accordance with the establishing a customer relationship communications are already delivered
provisions of 5 U.S.C. 552, will be with a consumer and not less than to consumers, adding a brief privacy
available for website viewing and annually during the continuation of and opt out notice should not result in
printing in the Commission’s Public such relationship, a financial institution added costs for processing or for postage
Reference Room, 100 F Street NE, shall provide a clear and conspicuous and materials. Also, privacy and opt out
Washington, DC 20549 on official disclosure to such consumer of such notices may be delivered electronically
business days between the hours of financial institution’s policies and to consumers who have agreed to
10:00 a.m. and 3:00 p.m. Copies of the practices with respect to disclosing electronic communications, which
filing also will be available for nonpublic personal information to further reduces the costs of delivery.
inspection and copying at the principal affiliates and nonaffiliated third parties Because SEC staff assumes that most
office of the Exchange. All comments (‘‘privacy notice’’). Title V of the GLBA paper copies of privacy and opt out
received will be posted without change. also provides that, unless an exception notices are combined with other
Persons submitting comments are applies, a financial institution may not required mailings, the burden-hour
cautioned that we do not redact or edit disclose nonpublic personal information estimates above are based on resources
personal identifying information from of a consumer to a nonaffiliated third required to integrate the privacy and opt
comment submissions. You should party unless the financial institution notices into another mailing, rather than
submit only information that you wish clearly and conspicuously discloses to on the resources required to create and
to make available publicly. All the consumer that such information may send a separate mailing. SEC staff
submissions should refer to File be disclosed to such third party; the estimates that, of the estimated 12
Number SR–NASDAQ–2018–086, and consumer is given the opportunity, annual burden-hours incurred,
should be submitted on or before before the time that such information is approximately 8 hours would be spent
December 7, 2018. initially disclosed, to direct that such by administrative assistants at an hourly
For the Commission, by the Division of information not be disclosed to such rate of $82, and approximately 4 hours
Trading and Markets, pursuant to delegated third party; and the consumer is given would be spent by internal counsel at an
authority.12 an explanation of how the consumer can hourly rate of $422, for a total
Brent J. Fields, exercise that nondisclosure option (‘‘opt annualized internal cost of compliance
Secretary. out notice’’). The Rule applies to broker- of $2,344 for each of the covered entities
[FR Doc. 2018–25031 Filed 11–15–18; 8:45 am] dealers, investment advisers registered (8 × $82 = $656; 4 × $422 = $1,688; $656
with the Commission, and investment + $1,688 = $2,344). Hourly cost of
BILLING CODE 8011–01–P
companies (‘‘covered entities’’). compliance estimates for administrative
assistant time are derived from the
Commission staff estimates that, as of
SECURITIES AND EXCHANGE Securities Industry and Financial
March 31, 2018, the Rule’s information Markets Association’s Office Salaries in
COMMISSION collection burden applies to the Securities Industry 2013, modified
approximately 20,465 covered entities by SEC staff to account for an 1,800-
Submission for OMB Review;
(approximately 3,857 broker-dealers, hour work-year and multiplied by 2.93
Comment Request
12,643 investment advisers registered to account for bonuses, firm size,
Upon Written Request, Copies Available with the Commission, and 3,965 employee benefits and overhead. Hourly
From: Securities and Exchange investment companies). In view of (a) cost of compliance estimates for internal
Commission, Office of FOIA Services, the minimal recordkeeping burden counsel time are derived from the
100 F Street NE, Washington, DC imposed by the Rule (since the Rule has Securities Industry and Financial
20549–2736 no recordkeeping requirement and Markets Association’s Management &
Extension: records relating to customer Professional Earnings in the Securities
Regulation S–P SEC File No. 270–480, communications already must be made Industry 2013, modified by SEC staff to
OMB Control No. 3235–0537 and retained pursuant to other SEC account for an 1,800-hour work-year
Notice is hereby given that, pursuant rules); (b) the summary fashion in and multiplied by 5.35 to account for
to the Paperwork Reduction Act of 1995 which information must be provided to bonuses, firm size, employee benefits,
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the customers in the privacy and opt out and overhead. Accordingly, SEC staff
Securities and Exchange Commission notices required by the Rule (the model estimates that the total annualized
(‘‘Commission’’) has submitted to the privacy form adopted by the SEC and internal cost of compliance for the
Office of Management and Budget the other agencies in 2009, designed to estimated total hour burden for the
(‘‘OMB’’) a request for approval of serve as both a privacy notice and an approximately 19,876 covered entities
extension of the previously approved opt out notice, is only two pages); (c) the subject to the Rule is approximately
collection of information provided for in availability to covered entities of the $47,969,960 ($2,344 × 20,465 =
the privacy notice and opt out notice model privacy form and online model $47,969,960).
provisions of Regulation S–P—Privacy privacy form builder; and (d) the An agency may not conduct or
of Consumer Financial Information (17 experience of covered entities’ staff with sponsor, and a person is not required to
CFR part 248, subpart A) under the the notices, SEC staff estimates that respond to, a collection of information
Securities Exchange Act of 1934 covered entities will each spend an under the PRA unless it displays a
amozie on DSK3GDR082PROD with NOTICES

(‘‘Exchange Act’’) (15 U.S.C. 78a et seq.). average of approximately 12 hours per currently valid OMB control number.
The privacy notice and opt out notice year complying with the Rule, for a total The public may view background
provisions of Regulation S–P (the of approximately 245,580 annual documentation for this information
‘‘Rule’’) implement the privacy notice burden-hours (12 × 20,465 = 245,580). collection at the following website:
and opt out notice requirements of Title SEC staff understands that the vast www.reginfo.gov. Comments should be
majority of covered entities deliver their directed to: (i) Desk Officer for the
12 17 CFR 200.30–3(a)(12). privacy and opt out notices with other Securities and Exchange Commission,

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Document Created: 2018-11-16 07:22:30
Document Modified: 2018-11-16 07:22:30
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 57758