83 FR 62933 - Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating To Eliminate the Liquidity Swap Component of the Discretionary Range Instruction

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 234 (December 6, 2018)

Page Range		62933-62936
FR Document		2018-26399
Federal Register, Volume 83 Issue 234 (Thursday, December 6, 2018)
[Federal Register Volume 83, Number 234 (Thursday, December 6, 2018)]
[Notices]
[Pages 62933-62936]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-26399]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84683; File No. SR-CboeEDGA-2018-019]


Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating To Eliminate the Liquidity Swap Component of the Discretionary 
Range Instruction

November 29, 2018.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on November 23, 2018, Cboe EDGA Exchange, Inc. (the ``Exchange'' 
or ``EDGA'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I and 
II, which Items have been prepared by the Exchange. The Exchange filed 
the proposal as a ``non-controversial'' proposed rule change pursuant 
to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) 
thereunder.\4\ 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Cboe EDGA Exchange, Inc. (``EDGA'' or the ``Exchange'') is filing 
with the Securities and Exchange Commission (the ``Commission'') a 
proposed rule change to eliminate the liquidity swap component of the 
Discretionary Range instruction in connection with the recent 
introduction of a ``high inverted'' fee model.
    The text of the proposed rule change is also available on the 
Exchange's website (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the 
Secretary, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the proposed rule change is to eliminate the 
liquidity swap component of the Discretionary Range instruction in 
connection with the introduction of a ``high inverted'' fee model, as 
discussed in more detail

[[Page 62934]]

below.\5\ All other functionality offered by the Discretionary Range 
instruction would remain unchanged.
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    \5\ A liquidity swap occurs when a resting order that is posted 
to the EDGA Book becomes the remover rather than the adder of 
liquidity for fee purposes.
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    Discretionary Range is an instruction the User \6\ may attach to an 
order to buy (sell) a stated amount of a security at a specified, 
displayed or non-displayed ranked price with discretion to execute up 
(down) to another specified, non-displayed price.\7\ Because the 
Discretionary Range instruction indicates a willingness by the entering 
User to trade at prices more aggressive than the order's ranked price, 
orders entered with this instruction also liquidity swap with certain 
incoming orders. Specifically, Rule 11.6(d) provides that a resting 
order with a Discretionary Range instruction would remove liquidity 
against: (1) An incoming Post Only order at its displayed or non-
displayed ranked price that does not remove liquidity on entry pursuant 
to Rule 11.6(n)(4), and (2) an incoming order with a time-in-force 
(``TIF'') other than Immediate-or-Cancel (``IOC'') or Fill-or-Kill 
(``FOK'') that is priced within its discretionary range. All other 
orders follow normal handling for the execution of an incoming order 
and remove liquidity when trading with a resting order with a 
Discretionary Range instruction.\8\
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    \6\ The term ``User'' means any Member or Sponsored Participant 
who is authorized to obtain access to the System pursuant to Rule 
11.3. See Rule 1.5(ee).
    \7\ See Rule 11.6(d). An order with a Discretionary Range 
instruction resting on the EDGA Book will execute at its least 
aggressive price when matched for execution against an incoming 
order that also contains a Discretionary Range instruction, as 
permitted by the terms of both the incoming and resting order. Id.
    \8\ For example, an incoming order that executes at the ranked 
price of the Discretionary Range order, or an IOC or FOK order that 
executes at a price within the discretionary range would execute as 
the liquidity remover. Id.
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    The Exchange proposes that a resting order with a Discretionary 
Range instruction would no longer perform a liquidity swap against any 
incoming orders, such that the incoming order would always act as the 
taker of liquidity, and the resting order with a Discretionary Range 
instruction would act as the maker of liquidity. As incoming Post Only 
orders always remove liquidity on entry in an inverted market where it 
is economically beneficial to remove liquidity,\9\ this change would 
chiefly impact the execution of Discretionary Range orders against 
incoming orders with a TIF other than IOC or FOK priced within the 
discretionary range.
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    \9\ See Rule 11.6(n)(4).
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    EDGA has operated with an ``inverted'' fee schedule whereby orders 
that remove liquidity are provided a rebate and orders that add 
liquidity pay a fee.\10\ On November 1, 2018, the Exchange filed an 
immediately effective change to its fee schedule to introduce a ``high 
inverted'' market model that increased both the rebate provided to 
orders that remove liquidity and the fee paid by orders that add 
liquidity.\11\ With the recent changes to the fee schedule, an order 
that removes liquidity is provided a base rebate of $0.0024 per share, 
and an order that adds liquidity pays a base fee of $0.0030 per 
share.\12\
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    \10\ See Cboe EDGA U.S. Equities Exchange Fee Schedule.
    \11\ See Securities Exchange Act Release No. 84599 (November 15, 
2018), 83 FR 58795 (November 21, 2018) (SR-CboeEDGA-2018-017).
    \12\ Members also have the opportunity to qualify for a lower 
fee or higher rebate based on volume executed on EDGA.
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    Under the current order handling, an order that executes 
immediately on entry, which would ordinarily be paid a rebate of 
$0.0024 per share based on the new high inverted fee structure, could 
instead end up adding liquidity and paying a fee of up to $0.0030 per 
share--i.e., a swing of $0.0054 per share--if the incoming order 
liquidity swaps when trading with a posted order that contains a 
Discretionary Range instruction. For example, assume the national best 
bid and offer is $10.00 x $10.05, and there is an order to buy on the 
EDGA Book priced at $10.00 with discretion to pay up to $10.03. If the 
Exchange were to receive an incoming Day order to sell at $10.02, the 
incoming order would be posted to the EDGA Book and then trade with the 
Discretionary Range order at $10.02 as the adder of liquidity, paying a 
fee of $0.0030 per share instead of receiving the expected rebate of 
$0.0024 per share.
    Although likely to be a rare occurrence, the Exchange believes that 
paying a $0.0030 per share fee in this scenario may be contrary to the 
expectations of Users that enter an order that trades on entry, who may 
instead expect to receive a $0.0024 per share rebate for sending 
marketable order flow to EDGA. The Exchange therefore proposes to 
eliminate the liquidity swap component of the Discretionary Range 
instruction. As proposed, an order entered with a Discretionary Range 
instruction would never perform a liquidity swap with an incoming 
order. Since an order entered with a Discretionary Range instruction 
would not liquidity swap with an incoming order under any 
circumstances, the Exchange proposes to reflect this change by 
providing that any contra-side order that executes against a resting 
order with a Discretionary Range instruction at its displayed or non-
displayed ranked price, or a price in the discretionary range, will 
remove liquidity against the order with a Discretionary Range 
instruction.
    In addition, the Exchange proposes to describe in Rule 11.6(d) how 
the Exchange would handle orders entered with a Discretionary Range 
instruction in the event that it changes its fees such that an incoming 
order with a Post Only instruction does not always remove liquidity on 
entry. As previously discussed, the Exchange is amending the 
Discretionary Range instruction such that orders entered with a 
Discretionary Range instruction would not liquidity swap with incoming 
orders, including orders entered with a Post Only instruction. Instead, 
the Exchange proposes that where an incoming order with a Post Only 
instruction does not remove liquidity on entry pursuant to Rule 
11.6(n)(4) against a resting order with a Discretionary Range 
instruction, the discretionary range of the resting order with a 
Discretionary Range instruction would be shortened to equal the limit 
price of the incoming contra-side order with a Post Only instruction. 
While under an inverted fee schedule incoming orders with a Post Only 
instruction remove liquidity on entry, this language would be relevant 
if the Exchange were to move to a different market model (e.g., maker/
taker). In such an event, the Discretionary Range instruction would 
behave in a manner similar to recently adopted MidPoint Discretionary 
Orders (``MDO'') on its affiliate Cboe EDGX Exchange, Inc. 
(``EDGX'').\13\ Like the proposed handling for EDGA orders entered with 
a Discretionary Range instruction, MDOs on EDGX are not willing to 
perform a liquidity swap, and would instead have their discretionary 
range shortened if an order with a Post Only instruction were to be 
posted within the discretionary range.
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    \13\ See Securities Exchange Act Release No. 84327 (October 1, 
2018), 83 FR 50416 (October 5, 2018) (SR-CboeEDGX-2018-041). The 
Exchange also offers MDOs on EDGA that follow the handling described 
in this filing for orders entered with a Discretionary Range 
instruction. See Rule 11.8(e).
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2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the requirements of Section 6(b) of the Act,\14\ in general, and 
Section 6(b)(5) of

[[Page 62935]]

the Act,\15\ in particular, in that it is designed to remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system, to promote just and equitable principles of 
trade, and, in general, to protect investors and the public interest 
and not to permit unfair discrimination between customers, issuers, 
brokers, or dealers.
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    \14\ 15 U.S.C. 78f(b).
    \15\ 15 U.S.C. 78f(b)(5).
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    The Exchange offers a Discretionary Range instruction that allows 
Users to specify a non-displayed discretionary price in addition to a 
displayed or non-displayed ranked price. As part of this instruction, 
an order entered with a discretionary price would liquidity swap in 
certain scenarios described in Rule 11.6(d), including when trading 
within the order's discretionary range against an incoming order that 
is entered with a TIF other than IOC or FOK. The Exchange believes that 
this result is undesirable under an inverted fee structure since the 
order that is negatively impacted by the swap from a rebate to a fee is 
the incoming order, and not the resting order that has opted into this 
handling by including a Discretionary Range instruction. Furthermore, 
this issue would be exacerbated under the new high inverted fee 
structure since the difference between the base fee for adding 
liquidity and base rebate for removing liquidity is now $0.0054 per 
share. The Exchange therefore believes that eliminating the possibility 
of this liquidity swap is consistent with the public interest and the 
protection of investors.
    With this change no resting orders on EDGA would liquidity swap 
with an incoming order, thereby ensuring that the incoming order would 
be the taker of liquidity, and paid the applicable rebate rather than 
charged an unexpected fee. Although certain other order instructions 
offered by the Exchange (e.g., Super Aggressive and Non-Displayed Swap) 
\16\ contain a liquidity swap component, those order instructions do 
not liquidity swap under an inverted fee structure where a Post Only 
order would always remove liquidity on entry. The Exchange believes 
that amending its order handling, as proposed, to ensure a similar 
result in cases that involve the Discretionary Range instruction would 
promote just and equitable principles of trade.
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    \16\ See Rule 11.6(n)(2), (n)(7).
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    Finally, the Exchange believes that the proposed operation of the 
Discretionary Range instruction where an order with a Post Only 
instruction posts in the discretionary range is consistent with the 
protection of investors and the public interest. While the Exchange 
currently operates under an inverted fee schedule where an incoming 
order with a Post Only instruction would remove liquidity on entry, the 
Exchange believes that it would be appropriate to shorten the 
discretion of a resting order with a Discretionary Range instruction if 
necessary due to an incoming order with a Post Only instruction posting 
at a price within the discretionary range, which would be possible, for 
example, in the event the Exchange were to introduce a maker/taker 
market model. Shortening the order's discretionary range in such 
circumstances is intended to avoid the discretionary range extending 
past the contra-side order's limit price, which could create a price 
priority issue should a later order be entered and be eligible to 
execute against the resting order within its discretionary range but at 
a price that extends beyond the contra-side order with a Post Only 
instruction. As mentioned in the purpose section of this proposed rule 
change, similar behavior is already implemented for MDOs on EDGX.\17\
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    \17\ See note 13 supra.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change would 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The proposed rule change is 
designed to eliminate the possibility that a liquidity swap could cause 
an incoming order that was expecting to receive a rebate as a remover 
of liquidity to instead pay a fee. The Exchange believes that the 
proposed handling accords with the expectation of its Users when 
sending order flow to EDGA, which operates under an inverted fee model 
that generally incentivizes marketable order flow that removes 
liquidity on entry. The Exchange therefore believes that the proposed 
rule change would promote a fair and competitive market in securities 
traded on EDGA.

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

    No comments were solicited or received on the proposed rule change.

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 \18\ and Rule 19b-
4(f)(6) thereunder.\19\
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    \18\ 15 U.S.C. 78s(b)(3)(A).
    \19\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written 
notice of its intent to file the proposed rule change, along with a 
brief description and the 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.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \20\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \21\ 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 change its handling of orders entered with a Discretionary 
Range instruction so that such orders, when resting, no longer may 
liquidity swap with incoming orders with which they execute. The 
Exchange believes that eliminating this potential for a liquidity swap 
would be more consistent with the expectation of Exchange participants 
who submit orders that trade on entry and, in light of the Exchange's 
inverted fee structure, may expect to receive a rebate for such 
executions instead of incurring a fee due to a liquidity swap. The 
Exchange also believes that waiver of the operative delay will reduce 
the possibility that Exchange participants are inadvertently 
disadvantaged by a recent Exchange fee schedule change introducing 
higher fees and rebates. For these reasons, 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

[[Page 62936]]

designates the proposed rule change operative upon filing.\22\
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    \20\ 17 CFR 240.19b-4(f)(6).
    \21\ 17 CFR 240.19b-4(f)(6)(iii).
    \22\ 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-CboeEDGA-2018-019 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-CboeEDGA-2018-019. 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-CboeEDGA-2018-019, and should be 
submitted on or before December 26, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\23\
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    \23\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-26399 Filed 12-4-18; 8:45 am]
BILLING CODE 8011-01-P
Federal Register / Vol. 83, No. 234 / Thursday, December 6, 2018 / Notices 62933

(202) 551–6821; SEC, Division of Filing Date: The application was filed notice is hereby given that on November
Investment Management, Chief on October 29, 2018. 23, 2018, Cboe EDGA Exchange, Inc.
Counsel’s Office, 100 F Street NE, Applicant’s Address: c/o Morgan (the ‘‘Exchange’’ or ‘‘EDGA’’) filed with
Washington, DC 20549–8010. Stanley Investment Management Inc., the Securities and Exchange
522 Fifth Avenue, New York, New York Commission (the ‘‘Commission’’) the
Active Assets Prime Trust [File No. 10036. proposed rule change as described in
811–09713] Items I and II, which Items have been
Summary: Applicant seeks an order Van Eck Emerging Markets Multi-Asset
prepared by the Exchange. The
declaring that it has ceased to be an Income Fund [File No. 811–22854]
Exchange filed the proposal as a ‘‘non-
investment company. On January 31, Summary: Applicant, a closed-end controversial’’ proposed rule change
2018, applicant made liquidating investment company, seeks an order pursuant to Section 19(b)(3)(A)(iii) of
distributions to its shareholders based declaring that it has ceased to be an the Act 3 and Rule 19b–4(f)(6)
on net asset value. Expenses of $13,717 investment company. Applicant has thereunder.4 The Commission is
incurred in connection with the never made a public offering of its publishing this notice to solicit
liquidation were paid by the applicant. securities and does not propose to make comments on the proposed rule change
Filing Date: The application was filed a public offering or engage in business from interested persons.
on October 29, 2018. of any kind.
Filing Dates: The application was I. Self-Regulatory Organization’s
Applicant’s Address: c/o Morgan
filed on October 26, 2018, and amended Statement of the Terms of Substance of
Stanley Investment Management Inc.,
on November 19, 2018. the Proposed Rule Change
522 Fifth Avenue, New York, New York
10036. Applicant’s Address: 666 Third Cboe EDGA Exchange, Inc. (‘‘EDGA’’
Avenue, 9th Floor, New York, New York or the ‘‘Exchange’’) is filing with the
TCW Alternative Funds [File No. 811– 10017. Securities and Exchange Commission
23025] (the ‘‘Commission’’) a proposed rule
Van Eck Coastland Online Consumer
Summary: Applicant seeks an order change to eliminate the liquidity swap
Finance Fund [File No. 811–23224]
declaring that it has ceased to be an component of the Discretionary Range
investment company. On October 5, Summary: Applicant, a closed-end instruction in connection with the
2018, applicant made liquidating investment company, seeks an order recent introduction of a ‘‘high inverted’’
distributions to its shareholders based declaring that it has ceased to be an fee model.
on net asset value. Expenses of $45,000 investment company. Applicant has The text of the proposed rule change
incurred in connection with the never made a public offering of its is also available on the Exchange’s
liquidation were paid by the applicant’s securities and does not propose to make website (http://www.cboe.com/
investment adviser. a public offering or engage in business AboutCBOE/CBOELegal
Filing Dates: The application was of any kind. RegulatoryHome.aspx), at the
filed on October 30, 2018, and amended Filing Dates: The application was Exchange’s Office of the Secretary, and
on November 20, 2018. filed on November 1, 2018, and at the Commission’s Public Reference
Applicant’s Address: 865 South amended on November 19, 2018. Room.
Figueroa Street, Suite 1800, Los Applicant’s Address: 666 Third
Avenue, 9th Floor, New York, New York II. Self-Regulatory Organization’s
Angeles, California 90017. Statement of the Purpose of, and
10017.
Thai Fund, Inc. [File No. 811–05348] Statutory Basis for, the Proposed Rule
For the Commission, by the Division of Change
Summary: Applicant, a closed-end Investment Management, pursuant to
investment company, seeks an order delegated authority. In its filing with the Commission, the
declaring that it has ceased to be an Eduardo A. Aleman, Exchange included statements
investment company. On January 26, Assistant Secretary.
concerning the purpose of and basis for
2018, applicant made liquidating the proposed rule change and discussed
[FR Doc. 2018–26487 Filed 12–4–18; 8:45 am]
distributions to its shareholders based any comments it received on the
BILLING CODE 8011–01–P
on net asset value. Expenses of $55,300 proposed rule change. The text of these
incurred in connection with the statements may be examined at the
liquidation were paid by the applicant. places specified in Item IV below. The
SECURITIES AND EXCHANGE
Filing Dates: The application was Exchange has prepared summaries, set
COMMISSION
filed on October 29, 2018, and amended forth in sections A, B, and C below, of
on November 20, 2018. [Release No. 34–84683; File No. SR– the most significant aspects of such
CboeEDGA–2018–019] statements.
Applicant’s Address: c/o Morgan
Stanley Investment Management Inc., Self-Regulatory Organizations; Cboe A. Self-Regulatory Organization’s
522 Fifth Avenue, New York, New York EDGA Exchange, Inc.; Notice of Filing Statement of the Purpose of, and
10036. and Immediate Effectiveness of a Statutory Basis for, the Proposed Rule
Turkish Investment Fund, Inc. [File No. Proposed Rule Change Relating To Change
811–05921] Eliminate the Liquidity Swap 1. Purpose
Component of the Discretionary Range
Summary: Applicant, a closed-end The purpose of the proposed rule
Instruction
investment company, seeks an order
khammond on DSK30JT082PROD with NOTICES

change is to eliminate the liquidity
declaring that it has ceased to be an November 29, 2018. swap component of the Discretionary
investment company. On December 29, Pursuant to Section 19(b)(1) of the Range instruction in connection with
2017, applicant made liquidating Securities Exchange Act of 1934 (the the introduction of a ‘‘high inverted’’ fee
distributions to its shareholders based ‘‘Act’’),1 and Rule 19b–4 thereunder,2 model, as discussed in more detail
on net asset value. Expenses of $93,000
incurred in connection with the 1 15 U.S.C. 78s(b)(1). 3 15 U.S.C. 78s(b)(3)(A)(iii).
liquidation were paid by the applicant. 2 17 CFR 240.19b–4. 4 17 CFR 240.19b–4(f)(6).

VerDate Sep<11>2014 20:35 Dec 04, 2018 Jkt 247001 PO 00000 Frm 00101 Fmt 4703 Sfmt 4703 E:\FR\FM\06DEN1.SGM 06DEN1
62936 Federal Register / Vol. 83, No. 234 / Thursday, December 6, 2018 / Notices

designates the proposed rule change Washington, DC 20549 on official structure; 3 (b) make conforming cross-
operative upon filing.22 business days between the hours of reference changes throughout the
At any time within 60 days of the 10:00 a.m. and 3:00 p.m. Copies of the Rulebook; and (c) amend the Equity 4’s
filing of the proposed rule change, the filing also will be available for title in the shell structure.
Commission summarily may inspection and copying at the principal The text of the proposed rule change
temporarily suspend such rule change if office of the Exchange. All comments is available on the Exchange’s website at
it appears to the Commission that such received will be posted without change. http://nasdaq.cchwallstreet.com, at the
action is necessary or appropriate in the Persons submitting comments are principal office of the Exchange, and at
public interest, for the protection of cautioned that we do not redact or edit the Commission’s Public Reference
investors, or otherwise in furtherance of personal identifying information from Room.
the purposes of the Act. If the comment submissions. You should
Commission takes such action, the submit only information that you wish II. Self-Regulatory Organization’s
Commission shall institute proceedings to make available publicly. All Statement of the Purpose of, and
to determine whether the proposed rule submissions should refer to File Statutory Basis for, the Proposed Rule
change should be approved or Number SR–CboeEDGA–2018–019, and Change
disapproved. should be submitted on or before In its filing with the Commission, the
IV. Solicitation of Comments December 26, 2018. Exchange included statements
For the Commission, by the Division of concerning the purpose of and basis for
Interested persons are invited to Trading and Markets, pursuant to delegated the proposed rule change and discussed
submit written data, views, and authority.23 any comments it received on the
arguments concerning the foregoing, Eduardo A. Aleman, proposed rule change. The text of these
including whether the proposed rule statements may be examined at the
Assistant Secretary.
change is consistent with the Act. places specified in Item IV below. The
[FR Doc. 2018–26399 Filed 12–4–18; 8:45 am]
Comments may be submitted by any of Exchange has prepared summaries, set
BILLING CODE 8011–01–P
the following methods: forth in sections A, B, and C below, of
Electronic Comments the most significant aspects of such
• Use the Commission’s internet SECURITIES AND EXCHANGE statements.
comment form (http://www.sec.gov/ COMMISSION A. Self-Regulatory Organization’s
rules/sro.shtml); or [Release No. 34–84684; File No. SR– Statement of the Purpose of, and
• Send an email to rule-comments@ NASDAQ–2018–098] Statutory Basis for, the Proposed Rule
sec.gov. Please include File Number SR– Change
CboeEDGA–2018–019 on the subject Self-Regulatory Organizations; The
line. Nasdaq Stock Market LLC; Notice of 1. Purpose
Filing and Immediate Effectiveness of The Exchange proposes to (a) relocate
Paper Comments Proposed Rule Change To Relocate the Equities and Options Pricing rules,
• Send paper comments in triplicate the Exchange’s Pricing Schedule currently under the Equities Rule 7000
to Secretary, Securities and Exchange Series and Options Chapter XV of the
Commission, 100 F Street NE, November 29, 2018.
Pursuant to Section 19(b)(1) of the NOM rules, into the Rulebook’s shell
Washington, DC 20549–1090. structure, respectively, under Equity 7
All submissions should refer to File Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 and Options 7 (both named ‘‘Pricing
Number SR–CboeEDGA–2018–019. This Schedule’’); (b) make conforming cross-
file number should be included on the notice is hereby given that on November
19, 2018, The Nasdaq Stock Market LLC reference changes throughout the
subject line if email is used. To help the Rulebook; and (c) amend the Equity 4’s
Commission process and review your (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission title, ‘‘Equity Listing Rules,’’ in the shell
comments more efficiently, please use structure, as detailed below.
only one method. The Commission will (‘‘SEC’’ or ‘‘Commission’’) the proposed
post all comments on the Commission’s rule change as described in Items I and (a) Relocation of the Pricing Rules
internet website (http://www.sec.gov/ II, below, which Items have been
The Exchange, as part of its continued
rules/sro.shtml). Copies of the prepared by the Exchange. The
effort to promote efficiency and the
submission, all subsequent Commission is publishing this notice to
conformity of its processes with those of
amendments, all written statements solicit comments on the proposed rule
the Affiliated Exchanges,4 and the goal
with respect to the proposed rule change from interested persons.
of harmonizing and uniformizing its
change that are filed with the I. Self-Regulatory Organization’s rules, proposes to relocate the Equities
Commission, and all written Statement of the Terms of Substance of Pricing rules, currently under the Rule
communications relating to the the Proposed Rule Change 7000 Series, into Equity 7, Pricing
proposed rule change between the The Exchange proposes to (a) relocate Schedule, of the shell structure.
Commission and any person, other than its current Rule 7000 Series (‘‘Equities Specifically, the Exchange will add the
those that may be withheld from the Pricing’’), entitled ‘‘Charges for word ‘‘Section’’ and renumber the
public in accordance with the Membership, Services, and Equipment,’’
provisions of 5 U.S.C. 552, will be and The Nasdaq Options Market LLC’s
3 In 2017, the Exchange added a shell structure to

available for website viewing and its Rulebook with the purpose of improving
khammond on DSK30JT082PROD with NOTICES

(‘‘NOM’’) rules at Chapter XV (‘‘Options efficiency and readability and to align its rules
printing in the Commission’s Public Pricing’’; together, ‘‘Equities and closer to those of its five sister exchanges, The
Reference Room, 100 F Street NE, Options Pricing’’) to the Exchange’s Nasdaq Stock Market LLC; Nasdaq PHLX LLC;
Nasdaq ISE, LLC; Nasdaq GEMX, LLC; and Nasdaq
22 For purposes only of waiving the 30-day
rulebook’s (‘‘Rulebook’’) shell MRX, LLC (‘‘Affiliated Exchanges’’). See Securities
operative delay, the Commission also has Exchange Act Release No. 82174 (November 29,
23 17 CFR 200.30–3(a)(12).
considered the proposed rule’s impact on 2017), 82 FR 57492 (December 5, 2017) (SR–BX–
1 15 U.S.C. 78s(b)(1). 2017–054).
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f). 2 17 CFR 240.19b–4. 4 See footnote 3.

VerDate Sep<11>2014 20:35 Dec 04, 2018 Jkt 247001 PO 00000 Frm 00104 Fmt 4703 Sfmt 4703 E:\FR\FM\06DEN1.SGM 06DEN1
Document Created: 2018-12-05 02:36:06
Document Modified: 2018-12-05 02:36:06
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 62933