83_FR_58008 83 FR 57786 - Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend General 8 of the Exchange's Rules

83 FR 57786 - Self-Regulatory Organizations; Nasdaq ISE, 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 Range57786-57789
FR Document2018-25028

Federal Register, Volume 83 Issue 222 (Friday, November 16, 2018)
[Federal Register Volume 83, Number 222 (Friday, November 16, 2018)]
[Notices]
[Pages 57786-57789]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-25028]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84568; File No. SR-ISE-2018-92]


Self-Regulatory Organizations; Nasdaq ISE, 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, Nasdaq ISE, LLC (``ISE'' 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://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 amend General 8 of its Rules, which govern 
the provision by the Exchange of colocation, connectivity, and direct 
connectivity 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

[[Page 57787]]

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 amend 
General 8, Section 1(b), which provides for discounted pricing for 
having multiple millimeter or microwave wireless subscriptions, to 
state that such pricing applies to subscriptions under General 8, 
Section 1(b) ``and/or 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. (The Exchange notes that The Nasdaq Stock Market LLC 
and Nasdaq BX, Inc. offer wireless subscriptions under both General 8, 
Section 1(b) and Rule 7015/Equity 7, Section 115 of their respective 
rulebooks.)
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).
---------------------------------------------------------------------------

    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 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

[[Page 57788]]

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 references 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-ISE-2018-92 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-2018-92. 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

[[Page 57789]]

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-ISE-2018-92, 
and should be submitted on or before December 7, 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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Brent J. Fields,
Secretary.
[FR Doc. 2018-25028 Filed 11-15-18; 8:45 am]
 BILLING CODE 8011-01-P



                                             57786                         Federal Register / Vol. 83, No. 222 / Friday, November 16, 2018 / Notices

                                               For the Commission, by the Division of                  100 F Street NE, Room 1503,                             and Exchange Commission
                                             Trading and Markets, pursuant to delegated                Washington, DC 20549, on official                       (‘‘Commission’’) the proposed rule
                                             authority.14                                              business days between the hours of                      change as described in Items I and II
                                             Eduardo A. Aleman,                                        10:00 a.m. and 3:00 p.m. All statements                 below, which Items have been prepared
                                             Assistant Secretary.                                      received will be posted without change.                 by the Exchange. The Commission is
                                             [FR Doc. 2018–24984 Filed 11–15–18; 8:45 am]              Persons submitting comments are                         publishing this notice to solicit
                                             BILLING CODE 8011–01–P                                    cautioned that we do not redact or edit                 comments on the proposed rule change
                                                                                                       personal identifying information from                   from interested persons.
                                                                                                       comment submissions. You should
                                             SECURITIES AND EXCHANGE                                                                                           I. Self-Regulatory Organization’s
                                                                                                       submit only information that you wish
                                             COMMISSION                                                                                                        Statement of the Terms of Substance of
                                                                                                       to make available publicly.
                                                                                                                                                               the Proposed Rule Change
                                             [Release Nos. 33–10573; 34–84574; File No.                FOR FURTHER INFORMATION CONTACT:
                                             265–28]                                                   Marc Oorloff Sharma, Chief Counsel,                        The Exchange proposes to amend
                                                                                                       Office of the Investor Advocate, at (202)               General 8 of the Exchange’s Rules, as
                                             Investor Advisory Committee Meeting                       551–3302, Securities and Exchange                       described below.
                                                                                                       Commission, 100 F Street NE,                               The text of the proposed rule change
                                             AGENCY:  Securities and Exchange                                                                                  is available on the Exchange’s website at
                                                                                                       Washington, DC 20549.
                                             Commission.                                                                                                       http://ise.cchwallstreet.com/, at the
                                                                                                       SUPPLEMENTARY INFORMATION: The
                                             ACTION: Notice of meeting of Securities                                                                           principal office of the Exchange, and at
                                                                                                       meeting will be open to the public,
                                             and Exchange Commission Dodd-Frank                                                                                the Commission’s Public Reference
                                                                                                       except during that portion of the
                                             Investor Advisory Committee.                                                                                      Room.
                                                                                                       meeting reserved for an administrative
                                             SUMMARY:   The Securities and Exchange                    work session during lunch. Persons                      II. Self-Regulatory Organization’s
                                             Commission Investor Advisory                              needing special accommodations to take                  Statement of the Purpose of, and
                                             Committee, established pursuant to                        part because of a disability should                     Statutory Basis for, the Proposed Rule
                                             Section 911 of the Dodd-Frank Wall                        notify the contact person listed in the                 Change
                                             Street Reform and Consumer Protection                     section above entitled FOR FURTHER
                                                                                                       INFORMATION CONTACT.
                                                                                                                                                                 In its filing with the Commission, the
                                             Act of 2010, is providing notice that it                                                                          Exchange included statements
                                             will hold a public meeting. The public                       The agenda for the meeting includes:
                                                                                                       Welcome remarks; a discussion                           concerning the purpose of and basis for
                                             is invited to submit written statements                                                                           the proposed rule change and discussed
                                             to the Committee.                                         regarding disclosures on human capital
                                                                                                       (which may include a recommendation                     any comments it received on the
                                             DATES: The meeting will be held on                                                                                proposed rule change. The text of these
                                             Thursday, December 13, 2018 from 9:00                     from the Investor as Owner
                                                                                                       subcommittee); a discussion regarding                   statements may be examined at the
                                             a.m. until 3:00 p.m. (ET). Written                                                                                places specified in Item IV below. The
                                             statements should be received on or                       disclosures on sustainability and
                                                                                                       environmental, social, and governance                   Exchange has prepared summaries, set
                                             before December 13, 2018.                                                                                         forth in sections A, B, and C below, of
                                                                                                       (ESG) topics; a discussion regarding
                                             ADDRESSES: The meeting will be held in                                                                            the most significant aspects of such
                                                                                                       unpaid arbitration awards;
                                             Multi-Purpose Room LL–006 at the                                                                                  statements.
                                                                                                       subcommittee reports; and a nonpublic
                                             Commission’s headquarters, 100 F
                                                                                                       administrative work session during                      A. Self-Regulatory Organization’s
                                             Street NE, Washington, DC 20549. The
                                                                                                       lunch.                                                  Statement of the Purpose of, and
                                             meeting will be webcast on the
                                             Commission’s website at www.sec.gov.                        Dated: November 9, 2018.                              Statutory Basis for, the Proposed Rule
                                             Written statements may be submitted by                    Brent J. Fields,                                        Change
                                             any of the following methods:                             Secretary.                                              1. Purpose
                                                                                                       [FR Doc. 2018–25019 Filed 11–15–18; 8:45 am]
                                             Electronic Statements                                                                                               The Exchange proposes to amend
                                                                                                       BILLING CODE 8011–01–P
                                               D Use the Commission’s internet                                                                                 General 8 of its Rules, which govern the
                                             submission form (http://www.sec.gov/                                                                              provision by the Exchange of colocation,
                                             rules/other.shtml); or                                    SECURITIES AND EXCHANGE                                 connectivity, and direct connectivity
                                               D Send an email message to rules-                       COMMISSION                                              services and related products, and
                                             comments@sec.gov. Please include File                                                                             which set forth the fees that the
                                                                                                       [Release No. 34–84568; File No. SR–ISE–                 Exchange charges for those products
                                             No. 265–28 on the subject line; or                        2018–92]                                                and services, to: (1) Clarify that all of the
                                             Paper Statements                                                                                                  products and services set forth in
                                                                                                       Self-Regulatory Organizations; Nasdaq
                                               D Send paper statements to Brent J.                     ISE, LLC; Notice of Filing and
                                                                                                                                                               General 8 are shared among the Nasdaq
                                             Fields, Secretary, Securities and                                                                                 Inc. affiliated exchanges—The Nasdaq
                                                                                                       Immediate Effectiveness of Proposed
                                             Exchange Commission, 100 F Street NE,                                                                             Stock Market LLC, Nasdaq BX, Inc.,
                                                                                                       Rule Change To Amend General 8 of
                                             Washington, DC 20549–1090.                                                                                        Nasdaq PHLX LLC, Nasdaq ISE, LLC,
                                                                                                       the Exchange’s Rules
                                               All submissions should refer to File                                                                            Nasdaq MRX, LLC, and Nasdaq GEMX,
                                             No. 265–28. This file number should be                    November 9, 2018.                                       LLC (collectively, the ‘‘Nasdaq, Inc.
                                             included on the subject line if email is                     Pursuant to Section 19(b)(1) of the                  Exchanges’’)—meaning that a firm need
                                             used. To help us process and review                       Securities Exchange Act of 1934                         only purchase these products and
amozie on DSK3GDR082PROD with NOTICES




                                             your statement more efficiently, please                   (‘‘Act’’),1 and Rule 19b–4 thereunder,2                 services once to be able to use them to
                                             use only one method.                                      notice is hereby given that on October                  connect to all of the Nasdaq, Inc.
                                               Statements also will be available for                   29, 2018, Nasdaq ISE, LLC (‘‘ISE’’ or                   Exchanges to which the firm is
                                             website viewing and printing in the                       ‘‘Exchange’’) filed with the Securities                 otherwise entitled to connect, and to
                                             Commission’s Public Reference Room,                                                                               receive the third party services and
                                                                                                         1 15   U.S.C. 78s(b)(1).                              market data feeds that it is otherwise
                                               14 17   CFR 200.30–3(a)(12).                              2 17   CFR 240.19b–4.                                 entitled to receive; and (2) make other


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                                                                         Federal Register / Vol. 83, No. 222 / Friday, November 16, 2018 / Notices                                             57787

                                             non-substantive changes that will                        Exchanges or to connect to third party                proposed changes—along with similar
                                             further the objective of harmonizing                     services or market data feeds. Indeed,                changes that the other Nasdaq, Inc.
                                             General 8 with parallel rules that exist                 the Exchange is aware of no actual                    Exchanges plan to propose—will be to
                                             among the other Nasdaq, Inc.                             customer confusion on this issue.                     generalize General 8 and render it
                                             Exchanges.3                                              Nevertheless, the Exchange believes that              completely identical across all six
                                                The Nasdaq, Inc. Exchanges offer                      the existing Rules would benefit from                 Nasdaq, Inc. Exchanges. (The Exchange
                                             colocation, connectivity, and direct                     clarification so as to avoid the potential            notes that The Nasdaq Stock Market
                                             connectivity services and related                        for any confusion in the future.                      LLC and Nasdaq BX, Inc. offer wireless
                                             products to their customers on a shared                    Accordingly, the Exchange proposes                  subscriptions under both General 8,
                                             basis, meaning that a customer may                       to amend General 8 by doing the                       Section 1(b) and Rule 7015/Equity 7,
                                             utilize these products and services to                   following: (1) Deleting the existing                  Section 115 of their respective
                                             gain access to any or all of the Nasdaq,                 selective references therein to shared                rulebooks.)
                                             Inc. Exchanges to which they are                         connectivity services; and (2) replacing
                                             otherwise entitled to receive access                                                                           2. Statutory Basis
                                                                                                      selective references with the following
                                             under the Rules. The Nasdaq, Inc.                        language, which will serve as a general                  The Exchange believes that its
                                             Exchanges only charge customers once                     preface to General 8:                                 proposal is consistent with Section 6(b)
                                             for these shared products and services,                                                                        of the Act,4 in general, and that it
                                                                                                        The connectivity products and services
                                             even to the extent that customers use                    that this Rule describes are shared among all
                                                                                                                                                            furthers the objectives of Section 6(b)(4)
                                             the products and services to connect to                  of the Nasdaq, Inc. exchanges (The Nasdaq             of the Act,5 in that it provides for the
                                             more than one of the Nasdaq, Inc.                        Stock Market, LLC, Nasdaq BX, Inc., Nasdaq            equitable allocation of reasonable dues,
                                             Exchanges. For example, a firm that is                   PHLX, LLC, Nasdaq ISE, LLC, Nasdaq MRX,               fees and other charges among members
                                             a member or member organization, as                      LLC, and Nasdaq GEMX, LLC). Fees for these            and issuers and other persons using any
                                             applicable, of all six Nasdaq, Inc.                      products and services are also the same               facility, and is not designed to permit
                                             Exchanges, and which co-locates its                      among all of the Nasdaq, Inc. exchanges. As           unfair discrimination between
                                             servers in the Nasdaq Data Center by                     such, a firm need only purchase the products          customers, issuers, brokers, or dealers.
                                                                                                      and services listed below from any Nasdaq,            Likewise, the Exchange believes that its
                                             purchasing a 10 GB fiber connection,                     Inc. exchange once to connect to any and all
                                             cabinet space, cooling fans, and patch                   of the Nasdaq, Inc. exchanges to which it is          proposal is consistent with Section
                                             cables, only needs to purchase these                     otherwise entitled to connect, or to connect          6(b)(5) of the Act,6 in that it is designed
                                             products and services once to use them                   to third party market data feeds or services.         to promote just and equitable principles
                                             to connect to all six Nasdaq, Inc.                       For example, if a firm purchases connectivity         of trade, to remove impediments to and
                                             Exchanges.                                               to one Nasdaq, Inc. exchange and then                 perfect the mechanism of a free and
                                                Likewise, the Rules were intended to                  subsequently qualifies to connect to a second         open market and a national market
                                             provide for connectivity to third-party                  Nasdaq, Inc. exchange, then the firm may              system, and, in general, to protect
                                             services and market data feeds on a                      utilize its existing services for connecting to       investors and the public interest.
                                                                                                      the first exchange to also connect to the                The Exchange believes that it is
                                             shared basis, meaning that a firm need                   second exchange, without incurring an
                                             only purchase a subscription to these                    additional charge.
                                                                                                                                                            equitable for the Exchange and the other
                                             services once, regardless of whether the                                                                       Nasdaq, Inc. Exchanges to collectively
                                             firm is a member or member                                  This preface will clarify that all                 charge a firm only once for the products
                                             organization, as applicable, of multiple                 products and services set forth in                    and services set forth in General 8
                                             Nasdaq, Inc. Exchanges.                                  General 8 are offered on a shared basis               because the same instance of such
                                                Historically, the Exchange has billed                 and that a firm need only purchase them               products and services may be used by
                                             customers on a shared basis for all of the               once from any of the Nasdaq, Inc.                     the firm to connect to any or all of the
                                             products and services currently set forth                Exchanges.                                            Nasdaq, Inc. Exchanges to which it is
                                             in General 8. Presently, however, only                      In addition to adding this preface, the            otherwise entitled to connect. Said
                                             certain provisions of General 8 state this               Exchange also proposes several other                  otherwise, the Exchange does not
                                             fact expressly. That is, provisions in                   non-substantive amendments to General                 believe that it would be fair for the
                                             General 8 pertaining to connectivity to                  8 to correct technical errors and to                  Nasdaq, Inc. Exchanges to each charge
                                             the Exchange, direct circuit connectivity                harmonize it with parallel provisions set             separate fees to a firm to, say, rent the
                                             to the Exchange, and point-of-presence                   forth in the rules of the other Nasdaq,               same cabinet space in the same data
                                             connectivity to the Exchange, each state                 Inc. Exchanges. These changes will                    center or to purchase the same wires to
                                             that they include connectivity to the                    reconcile minor, non-substantive                      connect its servers to the market data
                                             other markets of the Nasdaq, Inc.                        differences in the phrasing and                       feed. Moreover, the practice of charging
                                             Exchanges. However, other provisions                     placement of text between the                         a firm once for products and services
                                             in General 8—such as cabinets, cabinet                   Exchange’s General 8 and the other                    with shared applicability among the
                                             power, fiber and wireless connectivity                   Nasdaq, Inc. Exchanges’ Sections 8. The               Nasdaq, Inc. Exchanges is not unfairly
                                             to market data feeds, and fiber and                      amendments will also remove certain                   discriminatory because each of the
                                             wireless connectivity to third party                     references to the name ‘‘Nasdaq’’ or                  Nasdaq, Inc. Exchanges makes the
                                             services—do not contain such language.                   replace it with general references to ‘‘the           products and services that are set forth
                                                Notwithstanding the absence of                        Exchange.’’ Finally, the amendments                   in General 8 of their respective
                                             express language in these provisions of                  will amend General 8, Section 1(b),                   rulebooks available to all similarly
                                             General 8, the Exchange believes that it                 which provides for discounted pricing                 situated members at the same prices.
                                             is or should be apparent that a firm need                for having multiple millimeter or                        Meanwhile, the Exchange believes
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                                             only pay once to purchase products and                   microwave wireless subscriptions, to                  that it is just and equitable, and in the
                                             services—like server cabinets, power                     state that such pricing applies to                    interests of the public and investors, for
                                             supplies, and cables—that the firm will                  subscriptions under General 8, Section                the Exchange to amend General 8 to
                                             use to connect to multiple Nasdaq, Inc.                  1(b) ‘‘and/or any other provision of
                                                                                                      these Rules that provides for such                      4 15 U.S.C. 78f(b).
                                               3 The other Nasdaq, Inc. Exchanges plan to file        subscriptions, as may exist, from time to               5 15 U.S.C. 78f(b)(4).
                                             similar proposals in the near future.                    time.’’ The intended result of the                      6 15 U.S.C. 78f(b)(5).




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                                             57788                       Federal Register / Vol. 83, No. 222 / Friday, November 16, 2018 / Notices

                                             clarify the existing practice of the                    third party services. The proposals also                     At any time within 60 days of the
                                             Nasdaq, Inc. Exchanges to charge firms                  harmonize Section 8 with                                  filing of the proposed rule change, the
                                             once to purchase shared products and                    corresponding provisions of the                           Commission summarily may
                                             services, and to codify that practice                   rulebooks of the other Nasdaq, Inc.                       temporarily suspend such rule change if
                                             where it is not stated expressly in the                 Exchanges.                                                it appears to the Commission that such
                                             Rule. Although the Exchange believes                                                                              action is necessary or appropriate in the
                                             that such codification and clarification                C. Self-Regulatory Organization’s
                                                                                                                                                               public interest, for the protection of
                                             of General 8 are not necessary in this                  Statement on Comments on the
                                                                                                                                                               investors, or otherwise in furtherance of
                                             instance—given that it should be (and in                Proposed Rule Change Received From
                                                                                                                                                               the purposes of the Act. If the
                                             the Exchange’s experience, it is)                       Members, Participants, or Others
                                                                                                                                                               Commission takes such action, the
                                             apparent to firms that each of the                        No written comments were either                         Commission shall institute proceedings
                                             Nasdaq, Inc. Exchanges will not charge                  solicited or received.                                    to determine whether the proposed rule
                                             them more than once to, say, rent the                                                                             change should be approved or
                                                                                                     III. Date of Effectiveness of the
                                             same cabinet space or to purchase the                                                                             disapproved.
                                                                                                     Proposed Rule Change and Timing for
                                             same wires or power supplies—the
                                                                                                     Commission Action                                         IV. Solicitation of Comments
                                             Exchange believes, nevertheless, that
                                             the public and investors will benefit                      Because the foregoing proposed rule                      Interested persons are invited to
                                             from increased clarity to General 8.                    change does not: (i) Significantly affect                 submit written data, views, and
                                             Even if the proposal is not needed to                   the protection of investors or the public                 arguments concerning the foregoing,
                                             dispel any actual confusion about the                   interest; (ii) impose any significant                     including whether the proposed rule
                                             Rules, it will help to limit any potential              burden on competition; and (iii) become                   change is consistent with the Act.
                                             confusion in the future.                                operative for 30 days from the date on                    Comments may be submitted by any of
                                                The Exchange also believes that it is                which it was filed, or such shorter time                  the following methods:
                                             just and equitable, and in the interests                as the Commission may designate, it has
                                             of the public and investors, to                         become effective pursuant to Section                      Electronic Comments
                                             harmonize the language of General 8                     19(b)(3)(A) of the Act 7 and Rule 19b–                      • Use the Commission’s internet
                                             among all six of the Nasdaq, Inc.                       4(f)(6) thereunder.8                                      comment form (http://www.sec.gov/
                                             Exchanges. Given that General 8 in each                    A proposed rule change filed                           rules/sro.shtml); or
                                             of the Nasdaq, Inc. Exchanges’                          pursuant to Rule 19b–4(f)(6) under the                      • Send an email to rule-comments@
                                             rulebooks sets forth the same products,                 Act 9 normally does not become                            sec.gov. Please include File Number SR–
                                             services, and associated fees that are                  operative for 30 days after the date of its               ISE–2018–92 on the subject line.
                                             assessed on a shared basis, the language                filing. However, Rule 19b–4(f)(6)(iii) 10                 Paper Comments
                                             of General 8 should be uniform across                   permits the Commission to designate a
                                             these Exchanges to avoid any confusion                  shorter time if such action is consistent                    • Send paper comments in triplicate
                                             about unintended disparities. The                       with the protection of investors and the                  to Secretary, Securities and Exchange
                                             proposal makes minor, non-substantive                   public interest. The Exchange has                         Commission, 100 F Street NE,
                                             changes to accomplish this                              requested that the Commission waive                       Washington, DC 20549–1090.
                                             harmonization, which include removing                   the 30-day operative delay so that the                    All submissions should refer to File
                                             references that are idiosyncratic to this               proposed rule change may become                           Number SR–ISE–2018–92. This file
                                             Exchange and are not common among                       operative upon filing. Waiver of the                      number should be included on the
                                             all of the Nasdaq, Inc. Exchanges.                      operative delay would allow the                           subject line if email is used. To help the
                                                Lastly, the Exchange believes that its               Exchange to immediately amend its                         Commission process and review your
                                             proposals to amend General 8 are non-                   rules to specify that the products and                    comments more efficiently, please use
                                             controversial because they merely                       services set forth in General 8 are shared                only one method. The Commission will
                                             codify and clarify the Exchange’s                       among the Nasdaq, Inc. Exchanges and                      post all comments on the Commission’s
                                             existing interpretation of General 8,                   to harmonize General 8 with parallel                      internet website (http://www.sec.gov/
                                             serve the interests of the public and                   rules of the other Nasdaq, Inc.                           rules/sro.shtml). Copies of the
                                             investors in promoting a more clear and                 Exchanges. The Commission believes                        submission, all subsequent
                                             transparent Rulebook that is                            that waiver of the 30-day operative                       amendments, all written statements
                                             harmonized with the shared rules of the                 delay is consistent with the protection                   with respect to the proposed rule
                                             other Nasdaq, Inc. Exchanges, and                       of investors and the public interest.                     change that are filed with the
                                             because the proposals will not impact                   Accordingly, the Commission hereby                        Commission, and all written
                                             competition or limit access to or                       waives the operative delay and                            communications relating to the
                                             availability of the Exchange or its                     designates the proposed rule change                       proposed rule change between the
                                             systems.                                                operative upon filing.11                                  Commission and any person, other than
                                             B. Self-Regulatory Organization’s                                                                                 those that may be withheld from the
                                             Statement on Burden on Competition
                                                                                                       7 15  U.S.C. 78s(b)(3)(A).                              public in accordance with the
                                                                                                       8 17  CFR 240.19b–4(f)(6). In addition, Rule 19b–       provisions of 5 U.S.C. 552, will be
                                                The Exchange does not believe that                   4(f)(6)(iii) requires a self-regulatory organization to   available for website viewing and
                                             the proposed rule change will impose                    give the Commission written notice of its intent to
                                                                                                                                                               printing in the Commission’s Public
                                             any burden on competition not                           file the proposed rule change, along with a brief
                                                                                                     description and text of the proposed rule change,         Reference Room, 100 F Street NE,
                                             necessary or appropriate in furtherance                 at least five business days prior to the date of filing   Washington, DC 20549 on official
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                                             of the purposes of the Act. The                         of the proposed rule change, or such shorter time         business days between the hours of
                                             proposals merely codify and clarify                     as designated by the Commission. The Exchange
                                                                                                                                                               10:00 a.m. and 3:00 p.m. Copies of the
                                             existing practice of the Nasdaq, Inc.                   has satisfied this requirement.
                                                                                                        9 17 CFR 240.19b–4(f)(6).                              filing also will be available for
                                             Exchanges to collectively charge a                         10 17 CFR 240.19b–4(f)(6)(iii).                        inspection and copying at the principal
                                             customer only once to connect to any or                    11 For purposes only of waiving the 30-day
                                             all of the Nasdaq, Inc. Exchanges of                    operative delay, the Commission also has                  efficiency, competition, and capital formation. See
                                             which it is a member and to connect to                  considered the proposed rule’s impact on                  15 U.S.C. 78c(f).



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                                                                           Federal Register / Vol. 83, No. 222 / Friday, November 16, 2018 / Notices                                                                    57789

                                             office of the Exchange. All comments                      Contiguous Counties:                                           ADDRESSES:  Submit completed loan
                                             received will be posted without change.                     New Jersey: Atlantic, Bergen,                                applications to: U.S. Small Business
                                             Persons submitting comments are                               Burlington, Essex, Monmouth,                               Administration, Processing and
                                             cautioned that we do not redact or edit                       Morris, Sussex.                                            Disbursement Center, 14925 Kingsport
                                             personal identifying information from                       New York: Orange, Rockland.                                  Road, Fort Worth, TX 76155.
                                             comment submissions. You should                             The Interest Rates are:
                                             submit only information that you wish                                                                                    FOR FURTHER INFORMATION CONTACT:     A.
                                             to make available publicly. All                                                                               Percent    Escobar, Office of Disaster Assistance,
                                             submissions should refer to File                                                                                         U.S. Small Business Administration,
                                             Number SR–ISE–2018–92, and should                         For Physical Damage:                                           409 3rd Street SW, Suite 6050,
                                                                                                         Homeowners with Credit Avail-                                Washington, DC 20416, (202) 205–6734.
                                             be submitted on or before December 7,                         able Elsewhere ......................              4.000
                                             2018.                                                       Homeowners without Credit                                    SUPPLEMENTARY INFORMATION:   Notice is
                                               For the Commission, by the Division of                      Available Elsewhere ..............                 2.000 hereby given that as a result of the
                                             Trading and Markets, pursuant to delegated                  Businesses with Credit Avail-                              Administrator’s disaster declaration,
                                             authority.12                                                  able Elsewhere ......................              7.350
                                                                                                         Businesses        without          Credit
                                                                                                                                                                    applications for disaster loans may be
                                             Brent J. Fields,
                                                                                                           Available Elsewhere ..............                 3.675 filed at the address listed above or other
                                             Secretary.                                                                                                             locally announced locations.
                                                                                                         Non-Profit Organizations with
                                             [FR Doc. 2018–25028 Filed 11–15–18; 8:45 am]                  Credit Available Elsewhere ...                     2.500    The following areas have been
                                             BILLING CODE 8011–01–P                                      Non-Profit Organizations with-
                                                                                                                                                                    determined to be adversely affected by
                                                                                                           out Credit Available Else-
                                                                                                           where .....................................        2.500 the disaster:
                                             SMALL BUSINESS ADMINISTRATION                             For Economic Injury:                     Primary Counties:
                                                                                                         Businesses & Small Agricultural
                                             [Disaster Declaration #15776 and #15777;                      Cooperatives without Credit            Schuylkill
                                             NEW JERSEY Disaster Number NJ–00049]                          Available Elsewhere ..............
                                                                                                                                          3.675 Contiguous Counties:
                                                                                                         Non-Profit Organizations with-
                                             Administrative Declaration of a                               out Credit Available Else-             Pennsylvania: Berks, Carbon,
                                             Disaster for the State of New Jersey                                                         2.500     Columbia, Dauphin, Lebanon,
                                                                                                           where .....................................
                                                                                                                                                    Lehigh, Luzerne, Northumberland.
                                             AGENCY: U.S. Small Business                                 The number assigned to this disaster
                                             Administration.                                                                                      The Interest Rates are:
                                                                                                       for physical damage is 15776 6 and for
                                             ACTION: Notice.                                           economic injury is 15777 0.                                             Percent
                                                                                                         The States which received an EIDL
                                             SUMMARY:    This is a notice of an                        Declaration # are New Jersey, New York. For Physical Damage:
                                             Administrative declaration of a disaster
                                                                                                       (Catalog of Federal Domestic Assistance                          Homeowners with Credit Avail-
                                             for the State of New Jersey dated 10/24/
                                                                                                       Number 59008)                                                      able Elsewhere ......................          3.875
                                             2018.                                                                                                                      Homeowners without Credit
                                                Incident: Severe Storms and Flooding.                    Dated: October 24, 2018.
                                                                                                                                                                          Available Elsewhere ..............             1.938
                                                Incident Period: 08/11/2018 through                    Linda E. McMahon,                                                Businesses with Credit Avail-
                                             08/13/2018.                                               Administrator.                                                     able Elsewhere ......................          7.220
                                             DATES: Issued on 10/24/2018.                              [FR Doc. 2018–25038 Filed 11–15–18; 8:45 am]                     Businesses        without          Credit
                                                Physical Loan Application Deadline                     BILLING CODE 8025–01–P                                             Available Elsewhere ..............             3.610
                                             Date: 12/24/2018.                                                                                                          Non-Profit Organizations with
                                                Economic Injury (EIDL) Loan                                                                                               Credit Available Elsewhere ...                 2.500
                                             Application Deadline Date: 07/24/2019.                    SMALL BUSINESS ADMINISTRATION                                    Non-Profit Organizations with-
                                                                                                                                                                          out Credit Available Else-
                                             ADDRESSES: Submit completed loan                          [Disaster Declaration #15760 and #15761;                           where .....................................    2.500
                                             applications to: U.S. Small Business                      PENNSYLVANIA Disaster Number PA–                               For Economic Injury:
                                             Administration, Processing and                            00086]                                                           Businesses & Small Agricultural
                                             Disbursement Center, 14925 Kingsport                                                                                         Cooperatives without Credit
                                             Road, Fort Worth, TX 76155.                               Administrative Declaration of a                                    Available Elsewhere ..............             3.610
                                             FOR FURTHER INFORMATION CONTACT: A.
                                                                                                       Disaster for the Commonwealth of                                 Non-Profit Organizations with-
                                             Escobar, Office of Disaster Assistance,                   Pennsylvania                                                       out Credit Available Else-
                                             U.S. Small Business Administration,                                                                                          where .....................................    2.500
                                                                                                       AGENCY: U.S. Small Business
                                             409 3rd Street SW, Suite 6050,                            Administration.
                                             Washington, DC 20416, (202) 205–6734.                     ACTION: Notice.
                                                                                                                                                                        The number assigned to this disaster
                                             SUPPLEMENTARY INFORMATION: Notice is                                                                                     for physical damage is 15760 6 and for
                                             hereby given that as a result of the                      SUMMARY:  This is a notice of an                               economic injury is 15761 0.
                                             Administrator’s disaster declaration,                     Administrative declaration of a disaster                         The State which received an EIDL
                                             applications for disaster loans may be                    for the Commonwealth of Pennsylvania                           Declaration # is Pennsylvania.
                                             filed at the address listed above or other                dated 10/23/2018.
                                                                                                         Incident: Flooding.                                          (Catalog of Federal Domestic Assistance
                                             locally announced locations.
                                                                                                                                                                      Number 59008)
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                                                The following areas have been                            Incident Period: 07/21/2018 through
                                             determined to be adversely affected by                    07/27/2018.                                                      Dated: October 23, 2018.
                                             the disaster:                                             DATES: Issued on 10/23/2018.                                   Linda E. McMahon,
                                             Primary Counties:                                           Physical Loan Application Deadline                           Administrator.
                                                Ocean, Passaic.                                        Date: 12/24/2018.                                              [FR Doc. 2018–25039 Filed 11–15–18; 8:45 am]
                                                                                                         Economic Injury (EIDL) Loan
                                                                                                                                                                      BILLING CODE 8025–01–P
                                               12 17   CFR 200.30–3(a)(12).                            Application Deadline Date: 07/23/2019.


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Document Created: 2018-11-16 07:22:56
Document Modified: 2018-11-16 07:22:56
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 57786 

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