83_FR_62623 83 FR 62391 - Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Relocate the Exchange's Options Exercise and Delivery Rules

83 FR 62391 - Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Relocate the Exchange's Options Exercise and Delivery Rules

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 232 (December 3, 2018)

Page Range62391-62392
FR Document2018-26138

Federal Register, Volume 83 Issue 232 (Monday, December 3, 2018) 
[Federal Register Volume 83, Number 232 (Monday, December 3, 2018)]
[Notices]
[Pages 62391-62392]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-26138]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84659; File No. SR-BX-2018-056]


Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Relocate the 
Exchange's Options Exercise and Delivery Rules

November 27, 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 November 14, 2018, Nasdaq BX, Inc. (``BX'' 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 relocate the Exchange's options exercise 
and delivery rules, currently in Chapter VIII of the Exchange' rulebook 
(``Rulebook''), to Options 5, Section 100 in the Rulebook's shell 
structure.\3\
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    \3\ In 2017 the Exchange added a shell structure to its Rulebook 
with the purpose of improving efficiency and readability and to 
align its rules closer to those of its five sister exchanges, The 
Nasdaq Stock Market LLC; Nasdaq PHLX LLC; Nasdaq ISE, LLC; Nasdaq 
GEMX, LLC; and Nasdaq MRX, LLC (``Affiliated Exchanges''). See 
Securities Exchange Act Release No. 82174 (November 29, 2017), 82 FR 
57492 (December 5, 2017) (SR-BX-2017-054).
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    The text of the proposed rule change is available on the Exchange's 
website at http://nasdaqbx.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 relocate the Exchange's options exercise 
and delivery rules, currently in Chapter VIII of the Rulebook, to 
Options 5, Section 100 in the Rulebook's shell structure. The 
relocation of the options exercise and delivery rules is part of the 
Exchange's continued effort to promote efficiency and the structural 
conformity of its processes with those of its Affiliated Exchanges.\4\ 
The Exchange believes that the migration of the options exercise and 
delivery rules to their new location will facilitate the use of the 
Rulebook by members of the Exchange who are members of other Affiliated 
Exchanges. Moreover, the proposed changes are of a non-substantive 
nature and will not amend the relocated rules other than to update 
their numbers, redesignate the current ``Supplementary Material'' as 
``Commentary'', and make conforming cross-reference changes.
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    \4\ See footnote 3.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\5\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\6\ in particular, in that it is designed to promote 
just and equitable principles of trade, to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, and, in general to protect investors and the public interest, 
by promoting efficiency and structural conformity of the Exchange's 
processes with those of the Affiliated Exchanges and by making the 
Exchange's Rulebook easier to read and more accessible to its members. 
The Exchange believes that the relocation of the options exercise and 
delivery rules and the cross-reference updates are of a non-substantive 
nature.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. The proposed changes do not 
impose a burden on competition because, as

[[Page 62392]]

previously stated, they (i) are of a non-substantive nature, (ii) are 
intended to harmonize the numbering convention of the Exchange's rules 
with those of its Affiliated Exchanges, and (iii) are intended to 
organize the Rulebook in a way that it will ease the members' 
navigation and reading of the rules across the Affiliated Exchanges.

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

    No written comments were either solicited or received.

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

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) 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 promptly relocate 
the Exchange's options exercise and delivery rules, which the Exchange 
believes will improve the organization and readability of the 
Exchange's Rulebook. Therefore, 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 [email protected]. Please include 
File Number SR-BX-2018-056 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-BX-2018-056. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
    Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for website viewing and printing in 
the Commission's Public Reference Room, 100 F Street NE, Washington, DC 
20549, on official business days between the hours of 10:00 a.m. and 
3:00 p.m. Copies of the filing also will be available for inspection 
and copying at the principal office of the Exchange. All comments 
received will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly.
    All submissions should refer to File Number SR-BX-2018-056 and 
should be submitted on or before December 24, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-26138 Filed 11-30-18; 8:45 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 83, No. 232 / Monday, December 3, 2018 / Notices 62391 Exchange Act of 1934 (‘‘Act’’) 1 and Rule SECURITIES AND EXCHANGE the most significant aspects of such 19b–4 thereunder,2 a proposed rule COMMISSION statements. change to allow the Post Only order [Release No. 34–84659; File No. SR–BX– A. Self-Regulatory Organization’s instruction on complex orders that route 2018–056] Statement of the Purpose of, and to its electronic book for trading Statutory Basis for, the Proposed Rule options. The proposed rule change was Self-Regulatory Organizations; Nasdaq Change published for comment in the Federal BX, Inc.; Notice of Filing and Register on October 16, 2018.3 On Immediate Effectiveness of Proposed 1. Purpose November 21, 2018, the Exchange filed Rule Change To Relocate the The Exchange proposes to relocate the Amendment No. 1 to the proposal.4 The Exchange’s Options Exercise and Exchange’s options exercise and Commission has received no comment Delivery Rules delivery rules, currently in Chapter VIII letters regarding the proposed rule of the Rulebook, to Options 5, Section change. November 27, 2018. 100 in the Rulebook’s shell structure. Pursuant to Section 19(b)(1) of the The relocation of the options exercise Section 19(b)(2) of the Act 5 provides Securities Exchange Act of 1934 that, within 45 days of the publication and delivery rules is part of the (‘‘Act’’),1 and Rule 19b–4 thereunder,2 Exchange’s continued effort to promote of notice of the filing of a proposed rule notice is hereby given that on November change, or within such longer period up efficiency and the structural conformity 14, 2018, Nasdaq BX, Inc. (‘‘BX’’ or of its processes with those of its to 90 days as the Commission may ‘‘Exchange’’) filed with the Securities designate if it finds such longer period Affiliated Exchanges.4 The Exchange and Exchange Commission believes that the migration of the to be appropriate and publishes its (‘‘Commission’’) the proposed rule reasons for so finding, or as to which the options exercise and delivery rules to change as described in Items I and II their new location will facilitate the use self-regulatory organization consents, below, which Items have been prepared the Commission shall either approve the of the Rulebook by members of the by the Exchange. The Commission is Exchange who are members of other proposed rule change, disapprove the publishing this notice to solicit proposed rule change, or institute Affiliated Exchanges. Moreover, the comments on the proposed rule change proposed changes are of a non- proceedings to determine whether the from interested persons. proposed rule change should be substantive nature and will not amend disapproved. The 45th day after I. Self-Regulatory Organization’s the relocated rules other than to update publication of the notice for this Statement of the Terms of Substance of their numbers, redesignate the current proposed rule change is November 30, the Proposed Rule Change ‘‘Supplementary Material’’ as 2018. The Commission is extending this ‘‘Commentary’’, and make conforming The Exchange proposes to relocate the 45-day time period. cross-reference changes. Exchange’s options exercise and The Commission finds it appropriate delivery rules, currently in Chapter VIII 2. Statutory Basis to designate a longer period within of the Exchange’ rulebook (‘‘Rulebook’’), The Exchange believes that its which to take action on the proposed to Options 5, Section 100 in the proposal is consistent with Section 6(b) rule change so that it has sufficient time Rulebook’s shell structure.3 of the Act,5 in general, and furthers the to consider the proposed rule change. The text of the proposed rule change objectives of Section 6(b)(5) of the Act,6 Accordingly, the Commission, pursuant is available on the Exchange’s website at in particular, in that it is designed to to Section 19(b)(2) of the Act,6 http://nasdaqbx.cchwallstreet.com/, at promote just and equitable principles of designates January 14, 2019, as the date the principal office of the Exchange, and trade, to remove impediments to and by which the Commission shall either at the Commission’s Public Reference perfect the mechanism of a free and approve or disapprove, or institute Room. open market and a national market proceedings to determine whether to II. Self-Regulatory Organization’s system, and, in general to protect disapprove, the proposed rule change Statement of the Purpose of, and investors and the public interest, by (File No. SR–CboeEDGX–2018–043). Statutory Basis for, the Proposed Rule promoting efficiency and structural For the Commission, by the Division of Change conformity of the Exchange’s processes Trading and Markets, pursuant to delegated with those of the Affiliated Exchanges In its filing with the Commission, the and by making the Exchange’s Rulebook authority.7 Exchange included statements Eduardo A. Aleman, easier to read and more accessible to its concerning the purpose of and basis for members. The Exchange believes that Assistant Secretary. the proposed rule change and discussed the relocation of the options exercise [FR Doc. 2018–26145 Filed 11–30–18; 8:45 am] any comments it received on the and delivery rules and the cross- BILLING CODE 8011–01–P proposed rule change. The text of these reference updates are of a non- statements may be examined at the substantive nature. 1 15 U.S.C. 78s(b)(1). places specified in Item IV below. The 2 17 CFR 240.19b–4. Exchange has prepared summaries, set B. Self-Regulatory Organization’s 3 See Securities Exchange Act Release No. 84393 forth in sections A, B, and C below, of Statement on Burden on Competition (October 10, 2018), 83 FR 52264. The Exchange does not believe that 4 In Amendment No. 1, the Exchange added 1 15 U.S.C. 78s(b)(1). the proposed rule change will impose definitions of ‘‘Book Only complex order’’ and 2 17 CFR 240.19b–4. ‘‘Post Only complex order,’’ added rule text that 3 In 2017 the Exchange added a shell structure to any burden on competition not khammond on DSK30JT082PROD with NOTICES further describes the handling of Post Only complex its Rulebook with the purpose of improving necessary or appropriate in furtherance orders, and provided examples demonstrating the efficiency and readability and to align its rules of the purposes of the Act. The operation of Post Only complex orders. The text of Amendment No. 1 is available at https:// closer to those of its five sister exchanges, The proposed changes do not impose a Nasdaq Stock Market LLC; Nasdaq PHLX LLC; burden on competition because, as www.sec.gov/comments/sr-cboeedgx-2018-043/ Nasdaq ISE, LLC; Nasdaq GEMX, LLC; and Nasdaq srcboeedgx2018043-4678696-176565.pdf. MRX, LLC (‘‘Affiliated Exchanges’’). See Securities 5 15 U.S.C. 78s(b)(2). 4 See footnote 3. Exchange Act Release No. 82174 (November 29, 6 Id. 5 15 U.S.C. 78f(b). 2017), 82 FR 57492 (December 5, 2017) (SR–BX– 7 17 CFR 200.30–3(a)(31). 2017–054). 6 15 U.S.C. 78f(b)(5). VerDate Sep<11>2014 16:52 Nov 30, 2018 Jkt 247001 PO 00000 Frm 00102 Fmt 4703 Sfmt 4703 E:\FR\FM\03DEN1.SGM 03DEN1

62392 Federal Register / Vol. 83, No. 232 / Monday, December 3, 2018 / Notices previously stated, they (i) are of a non- designates the proposed rule change business days between the hours of substantive nature, (ii) are intended to operative upon filing.11 10:00 a.m. and 3:00 p.m. Copies of the harmonize the numbering convention of At any time within 60 days of the filing also will be available for the Exchange’s rules with those of its filing of the proposed rule change, the inspection and copying at the principal Affiliated Exchanges, and (iii) are Commission summarily may office of the Exchange. All comments intended to organize the Rulebook in a temporarily suspend such rule change if received will be posted without change. way that it will ease the members’ it appears to the Commission that such Persons submitting comments are navigation and reading of the rules action is necessary or appropriate in the cautioned that we do not redact or edit across the Affiliated Exchanges. public interest, for the protection of personal identifying information from investors, or otherwise in furtherance of comment submissions. You should C. Self-Regulatory Organization’s the purposes of the Act. If the submit only information that you wish Statement on Comments on the Commission takes such action, the to make available publicly. Proposed Rule Change Received From Commission shall institute proceedings All submissions should refer to File Members, Participants, or Others to determine whether the proposed rule Number SR–BX–2018–056 and should change should be approved or be submitted on or before December 24, No written comments were either disapproved. solicited or received. 2018. IV. Solicitation of Comments For the Commission, by the Division of III. Date of Effectiveness of the Trading and Markets, pursuant to delegated Proposed Rule Change and Timing for Interested persons are invited to authority.12 Commission Action submit written data, views, and arguments concerning the foregoing, Eduardo A. Aleman, including whether the proposed rule Assistant Secretary. Because the foregoing proposed rule change does not: (i) Significantly affect change is consistent with the Act. [FR Doc. 2018–26138 Filed 11–30–18; 8:45 am] the protection of investors or the public Comments may be submitted by any of BILLING CODE 8011–01–P interest; (ii) impose any significant the following methods: burden on competition; and (iii) become Electronic Comments operative for 30 days from the date on SECURITIES AND EXCHANGE which it was filed, or such shorter time • Use the Commission’s internet COMMISSION as the Commission may designate, it has comment form (http://www.sec.gov/ [Release No. 34–84660; File No. SR– become effective pursuant to Section rules/sro.shtml); or NASDAQ–2018–094] • Send an email to rule-comments@ 19(b)(3)(A) of the Act 7 and Rule 19b– sec.gov. Please include File Number SR– Self-Regulatory Organizations; The 4(f)(6) thereunder.8 BX–2018–056 on the subject line. Nasdaq Stock Market LLC; Notice of A proposed rule change filed Filing and Immediate Effectiveness of pursuant to Rule 19b–4(f)(6) under the Paper Comments Proposed Rule Change To Relocate Act 9 normally does not become • Send paper comments in triplicate the Exchange’s Options Exercise and operative for 30 days after the date of its to Secretary, Securities and Exchange Delivery Rules filing. However, Rule 19b–4(f)(6)(iii) 10 Commission, 100 F Street NE, permits the Commission to designate a Washington, DC 20549–1090. November 27, 2018. shorter time if such action is consistent All submissions should refer to File Pursuant to Section 19(b)(1) of the with the protection of investors and the Number SR–BX–2018–056. This file Securities Exchange Act of 1934 public interest. The Exchange has number should be included on the (‘‘Act’’),1 and Rule 19b–4 thereunder,2 requested that the Commission waive subject line if email is used. To help the notice is hereby given that on November the 30-day operative delay so that the Commission process and review your 14, 2018, The Nasdaq Stock Market LLC proposed rule change may become comments more efficiently, please use (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the operative upon filing. Waiver of the only one method. The Commission will Securities and Exchange Commission operative delay would allow the post all comments on the Commission’s (‘‘Commission’’) the proposed rule Exchange to promptly relocate the internet website (http://www.sec.gov/ change as described in Items I and II Exchange’s options exercise and rules/sro.shtml). below, which Items have been prepared delivery rules, which the Exchange Copies of the submission, all by the Exchange. The Commission is believes will improve the organization subsequent amendments, all written publishing this notice to solicit and readability of the Exchange’s statements with respect to the proposed comments on the proposed rule change Rulebook. Therefore, the Commission rule change that are filed with the from interested persons. believes that waiver of the 30-day Commission, and all written operative delay is consistent with the communications relating to the I. Self-Regulatory Organization’s protection of investors and the public proposed rule change between the Statement of the Terms of Substance of interest. Accordingly, the Commission Commission and any person, other than the Proposed Rule Change hereby waives the operative delay and those that may be withheld from the The Exchange proposes to a proposal public in accordance with the to relocate the Exchange’s options 7 15 U.S.C. 78s(b)(3)(A). provisions of 5 U.S.C. 552, will be exercise and delivery rules, currently in 8 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– available for website viewing and Chapter VIII of the Exchange’s rulebook 4(f)(6)(iii) requires a self-regulatory organization to printing in the Commission’s Public (‘‘Rulebook’’), to Options 5, Section 100 khammond on DSK30JT082PROD with NOTICES give the Commission written notice of its intent to file the proposed rule change, along with a brief Reference Room, 100 F Street NE, in the Rulebook’s shell structure.3 description and text of the proposed rule change, Washington, DC 20549, on official 12 17 CFR 200.30–3(a)(12). 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 1 15 U.S.C. 78s(b)(1). as designated by the Commission. The Exchange operative delay, the Commission also has 2 17 CFR 240.19b–4. has satisfied this requirement. considered the proposed rule’s impact on 3 In 2017 the Exchange added a shell structure to 9 17 CFR 240.19b–4(f)(6). efficiency, competition, and capital formation. See its Rulebook with the purpose of improving 10 17 CFR 240.19b–4(f)(6)(iii). 15 U.S.C. 78c(f). efficiency and readability and to align its rules VerDate Sep<11>2014 16:52 Nov 30, 2018 Jkt 247001 PO 00000 Frm 00103 Fmt 4703 Sfmt 4703 E:\FR\FM\03DEN1.SGM 03DEN1


Document Created: 2018-12-01 00:56:11
Document Modified: 2018-12-01 00:56:11
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 62391 
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