83 FR 62392 - Self-Regulatory Organizations; The Nasdaq Stock Market LLC; 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)
Federal Register Volume 83, Issue 232 (December 3, 2018)
| Page Range | 62392-62394 | |
| FR Document | 2018-26143 |
[Federal Register Volume 83, Number 232 (Monday, December 3, 2018)] [Notices] [Pages 62392-62394] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-26143] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-84660; File No. SR-NASDAQ-2018-094] Self-Regulatory Organizations; The Nasdaq Stock Market LLC; 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, The Nasdaq Stock Market LLC (``Nasdaq'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to a proposal to relocate the Exchange's options exercise and delivery rules, currently in Chapter VIII of the Exchange's rulebook (``Rulebook''), to Options 5, Section 100 in the Rulebook's shell structure.\3\ --------------------------------------------------------------------------- \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, Nasdaq BX, Inc.; Nasdaq PHLX LLC; Nasdaq ISE, LLC; Nasdaq GEMX, LLC; and Nasdaq MRX, LLC (``Affiliated Exchanges''). See Securities Exchange Act Release No. 82175 (November 29, 2017), 82 FR 57494 (December 5, 2017) (SR-NASDAQ-2017-125). --------------------------------------------------------------------------- [[Page 62393]] The text of the proposed rule change is available on the Exchange's website at http://nasdaq.cchwallstreet.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to relocate the Exchange's options exercise and delivery rules, currently in Chapter VIII of the Rulebook, to Options 5, Section 100 in the Exchange's rulebook's (``Rulebook'') 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. --------------------------------------------------------------------------- \4\ See footnote 3. --------------------------------------------------------------------------- 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 the 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. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b). \6\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The proposed changes do not impose a burden on competition because, as previously stated, they (i) are of a non-substantive nature, (ii) are intended to harmonize the numbering 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\ --------------------------------------------------------------------------- \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. --------------------------------------------------------------------------- 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\ --------------------------------------------------------------------------- \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). --------------------------------------------------------------------------- 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 CommentsUse 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-NASDAQ-2018-094 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. [[Page 62394]] All submissions should refer to File Number SR-NASDAQ-2018-094. 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-NASDAQ-2018-094 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\ --------------------------------------------------------------------------- \12\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-26143 Filed 11-30-18; 8:45 am] BILLING CODE 8011-01-P
![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
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![62394 Federal Register / Vol. 83, No. 232 / Monday, December 3, 2018 / Notices
All submissions should refer to File notice is hereby given that on November will be assessed a fee of $0.00300 per
Number SR–NASDAQ–2018–094. This 13, 2018, Cboe EDGX Exchange, Inc. share and orders that remove liquidity
file number should be included on the (the ‘‘Exchange’’ or ‘‘EDGX’’) filed with will be provided a rebate of $0.00240
subject line if email is used. To help the the Securities and Exchange per share. Based on the changes in
Commission process and review your Commission (the ‘‘Commission’’) the pricing at EDGA, the Exchange proposes
comments more efficiently, please use proposed rule change as described in the pricing changes described below.
only one method. The Commission will Items I, II, and III below, which Items First, the Exchange notes that orders
post all comments on the Commission’s have been prepared by the Exchange. routed to EDGA using ALLB routing
internet website (http://www.sec.gov/ The Commission is publishing this strategy (which yield fee code AA) and
rules/sro.shtml). notice to solicit comments on the orders routed to EDGA using DIRC
Copies of the submission, all proposed rule change from interested routing strategy (which yield fee code
subsequent amendments, all written persons. RR) are currently assessed $0.00030 per
statements with respect to the proposed share. The Exchange proposes to
rule change that are filed with the I. Self-Regulatory Organization’s
eliminate this fee and instead provide a
Commission, and all written Statement of the Terms of Substance of
rebate of $0.00240 per share for these
communications relating to the the Proposed Rule Change
orders. Similarly, orders routed to
proposed rule change between the Cboe EDGX Exchange, Inc. (the EDGA (which yield fee code I) are
Commission and any person, other than ‘‘Exchange’’ or ‘‘EDGX’’) is filing with currently assessed $0.00290 per share,
those that may be withheld from the the Securities and Exchange but the Exchange proposes to eliminate
public in accordance with the Commission (‘‘Commission’’) a the fee and instead provide a rebate of
provisions of 5 U.S.C. 552, will be proposed rule change to modify certain $0.00240 per share. Lastly, the Exchange
available for website viewing and Routing Fees. notes that orders routed to EDGA that
printing in the Commission’s Public The text of the proposed rule change add liquidity (which yield fee code RA)
Reference Room, 100 F Street NE, is also available on the Exchange’s are assessed $0.00030 per share. The
Washington, DC 20549, on official website (http://www.cboe.com/ Exchange proposes to increase the rate
business days between the hours of AboutCBOE/CBOELegal from $0.00030 per share to $0.00300 per
10:00 a.m. and 3:00 p.m. Copies of the RegulatoryHome.aspx), at the share.
filing also will be available for Exchange’s Office of the Secretary, and
inspection and copying at the principal at the Commission’s Public Reference 2. Statutory Basis
office of the Exchange. All comments Room. The Exchange believes that the
received will be posted without change. II. Self-Regulatory Organization’s proposed rule change is consistent with
Persons submitting comments are Statement of the Purpose of, and Section 6 of the Act,5 in general, and
cautioned that we do not redact or edit Statutory Basis for, the Proposed Rule furthers the objectives of Section
personal identifying information from Change 6(b)(4),6 in particular, as it is designed
comment submissions. You should to provide for the equitable allocation of
submit only information that you wish In its filing with the Commission, the reasonable dues, fees and other charges
to make available publicly. Exchange included statements among its Members and other persons
All submissions should refer to File concerning the purpose of and basis for using its facilities.
Number SR–NASDAQ–2018–094 and the proposed rule change and discussed The Exchange believes the proposed
should be submitted on or before any comments it received on the changes are reasonable because they
December 24, 2018. proposed rule change. The text of these reflect a pass-through of the pricing
statements may be examined at the changes by EDGA described above. The
For the Commission, by the Division of places specified in Item IV below. The
Trading and Markets, pursuant to delegated Exchange further believes the proposed
authority.12
Exchange has prepared summaries, set fee change is non-discriminatory
forth in Sections A, B, and C below, of because it applies uniformly to all
Eduardo A. Aleman,
the most significant parts of such Members. The Exchange lastly notes
Assistant Secretary. statements.
[FR Doc. 2018–26143 Filed 11–30–18; 8:45 am] that routing through the Exchange is
BILLING CODE 8011–01–P
A. Self-Regulatory Organization’s voluntary and that it operates in a
Statement of the Purpose of, and the highly competitive market in which
Statutory Basis for, the Proposed Rule market participants can readily direct
SECURITIES AND EXCHANGE Change order flow to competing venues or
COMMISSION providers of routing services if they
1. Purpose
deem fee levels to be excessive.
[Release No. 34–84661; File No. SR– The Exchange proposes to amend its
CboeEDGX–2018–055] fee schedule to amend pricing for orders B. Self-Regulatory Organization’s
routed to Cboe EDGA Exchange, Inc., Statement on Burden on Competition
Self-Regulatory Organizations; Cboe
(‘‘EDGA’’) for securities at or above The Exchange does not believe that
EDGX Exchange, Inc.; Notice of Filing
$1.00, which yield fee codes A, I, RA the proposed rule change will impose
and Immediate Effectiveness of a
and RR.3 Particularly, as of November 1, any burden on competition not
Proposed Rule Change Relating To
2018, EDGA implemented pricing necessary or appropriate in furtherance
Modify Certain Routing Fees
changes for transactions that add and of the purposes of the Act. The
khammond on DSK30JT082PROD with NOTICES
November 27, 2018. remove liquidity.4 The filing generally Exchange believes the proposed routing
Pursuant to Section 19(b)(1) of the proposes that orders that add liquidity fee changes will not impose an undue
Securities Exchange Act of 1934 (the burden on competition because the
3 The Exchange initially filed the proposed fee
‘‘Act’’),1 and Rule 19b–4 thereunder,2 Exchange will uniformly assess the
changes on November 1, 2018 (SR–CboeEDGX–
2018–050). On business date November 13, 2018,
affected routing fees on all Members.
12 17 CFR 200.30–3(a)(12). the Exchange withdrew that filing and submitted
1 15 U.S.C. 78s(b)(1). this filing. 5 15 U.S.C. 78f.
2 17 CFR 240.19b–4. 4 See SR–CboeEDGA–2018–017. 6 15 U.S.C. 78f(b)(4).
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Document Created: 2018-12-01 00:56:10
Document Modified: 2018-12-01 00:56:10
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 83 FR 62392 |
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