83_FR_63929 83 FR 63692 - Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Delay a New Protocol “Ouch to Trade Options” or “OTTO” on The Nasdaq Options Market LLC (“NOM”)

83 FR 63692 - Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Delay a New Protocol “Ouch to Trade Options” or “OTTO” on The Nasdaq Options Market LLC (“NOM”)

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 237 (December 11, 2018)

Page Range63692-63694
FR Document2018-26736

Federal Register, Volume 83 Issue 237 (Tuesday, December 11, 2018)
[Federal Register Volume 83, Number 237 (Tuesday, December 11, 2018)]
[Notices]
[Pages 63692-63694]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-26736]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84723; File No. SR-NASDAQ-2018-097]


Self-Regulatory Organizations; The Nasdaq Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Delay a New Protocol ``Ouch to Trade Options'' or ``OTTO'' on The 
Nasdaq Options Market LLC (``NOM'')

December 4, 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 26, 2018, The Nasdaq Stock Market LLC (``Nasdaq'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been prepared by the Exchange. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to a proposal to delay a new protocol ``Ouch 
to Trade Options'' or ``OTTO'' on The Nasdaq Options Market LLC 
(``NOM'').
    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
    Nasdaq recently filed a rule change \3\ which adopted a new 
protocol ``Ouch to Trade Options'' or ``OTTO'' \4\ and renamed and 
modified the current OTTO protocol as ``Quote Using Orders'' or 
``QUO''.\5\ The Prior Rule Change, which is effective but not yet 
operative, renamed and modified the current OTTO protocol to ``QUO.'' 
The Exchange subsequently filed a rule change to amend Chapter VI, 
Section 6(e), titled ``Detection of Loss of Communication'' which 
describes the impact to NOM protocols in the event of a loss of a 
communication. The Exchange accounted for both the new OTTO and renamed 
and modified QUO within this rule. Similarly, the Exchange amended 
Chapter VI, Section 8, ``Nasdaq Opening and Halt Cross'' to account for 
the new OTTO and renamed and modified QUO within this rule. Finally, 
the Exchange amended Chapter VI, Section 19, ``Data Feeds and Trade 
Information'' to amend ``OTTO DROP'' to ``QUO DROP'' and noted within 
Chapter VI, Section 18(a)(1) related to Order Price Protection rule or 
``OPP'' that OPP shall not apply to orders entered through QUO.\6\
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    \3\ See Securities Exchange Act Release No. 83888 (August 20, 
2018), 83 FR 42954 (August 24, 2018) (SR-NASDAQ-2018-069) (``Prior 
Rule Change''). This rule change is immediately effective but will 
not be operative until such time as the Exchange issues an Options 
Trader Alert announcing the implementation date. This notification 
will be issued in Q4 2018. The Exchange notes that this filing 
renamed and modified the current OTTO protocol as ``QUO'' and also 
proposed the adoption of a new OTTO protocol.
    \4\ New OTTO is an interface that allows Participants and their 
Sponsored Customers to connect, send, and receive messages related 
to orders to and from the Exchange. Features include the following: 
(1) Options symbol directory messages (e.g., underlying); (2) system 
event messages (e.g., start of trading hours messages and start of 
opening); (3) trading action messages (e.g., halts and resumes); (4) 
execution messages; (5) order messages; and (6) risk protection 
triggers and cancel notifications. See NOM Rules at Chapter VI, 
Section 21(a)(i)(C).
    \5\ QUO is an interface that allows NOM Market Makers to 
connect, send, and receive messages related to single-sided orders 
to and from the Exchange. Order Features include the following: (1) 
Options symbol directory messages (e.g., underlying); (2) system 
event messages (e.g., start of trading hours messages and start of 
opening); (3) trading action messages (e.g., halts and resumes); (4) 
execution messages; (5) order messages; and (6) risk protection 
triggers and cancel notifications. Orders submitted by NOM Market 
Makers over this interface are treated as quotes. See NOM Rules at 
Chapter VI, Section 21(a)(i)(D).
    \6\ See Securities Exchange Act Release No. 84559 (November 9, 
2019), 83 FR 57774 (November 16, 2018) (SR-NASDAQ-2018-085) 
(``Subsequent Rule Change'').
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    Both the Prior Rule Change and the Subsequent Rule Change indicated 
the aforementioned rule changes would be implemented for QUO and OTTO 
in Q4 of 2018 with the date announced via an Options Traders Alert. At 
this time, the Exchange proposes to immediately implement QUO and delay 
the introduction of new OTTO functionality until Q1 2019 by announcing 
the date of implementation via an Options Traders Alert. The Exchange 
proposes to provide for the delay of the OTTO functionality by 
inserting the following rule text at the beginning of NOM Rules at 
Chapter VI, Sections 6, 9 and 21 to make clear that OTTO functionality 
is not yet implemented: ``OTTO functionality implementation shall be 
delayed until Q1 2019. The Exchange will issue an Options Trader Alert 
notifying Participants when this functionality will be available.''
    The Exchange proposes this delay to allow the Exchange additional 
time to implement this functionality and for

[[Page 63693]]

Participants to sign-up for this new port and test with the Exchange.
Amend OTTO at Options 7
    The Exchange's current pricing at Options 7,\7\ Section 3(i)(4) 
reflects an OTTO Port Fee. The Exchange proposed to rename the OTTO 
Port Fee as ``QUO Port Fee'' to reflect the new name of the modified 
former OTTO protocol. No changes are being made to the port fee. 
Likewise, the current ``OTTO DROP Port Fee'' at Options 7, Section 
3(ii)(4) is proposed to be renamed the ``QUO DROP Port Fee.''
---------------------------------------------------------------------------

    \7\ Options 7 refers to the Exchange's new rulebook shell.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\8\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\9\ 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 
delaying the OTTO functionality to allow the Exchange additional time 
to implement this functionality and for Participants to sign-up for 
this new port and test with the Exchange. QUO would be implemented to 
avoid any confusion with the new proposed protocol.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
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QUO
    The Exchange's proposal to rename the current ``OTTO Port Fee'' as 
``QUO Port Fee'' and ``OTTO DROP Port Fee'' as ``QUO DROP Port Fee'' is 
consistent with the Act because the amendment will reflect the name 
change and modification as proposed in the Prior Rule Change.

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 Exchange's proposal to 
implement QUO and delay the adoption of new OTTO functionality does not 
impose an undue burden on competition. Immediately implementing the QUO 
protocol, which is the subject of an already effective rule change, 
will avoid any confusion with the implementation of the new OTTO 
protocol. Delaying the new OTTO functionality to allow the Exchange 
additional time to implement this functionality and for Participants to 
sign-up for this new port and test with the Exchange.

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)(iii) of the Act \10\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\11\
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    \10\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \11\ 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 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. The Exchange has satisfied this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) \12\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, Rule 19b-4(f)(6)(iii) \13\ 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 asked 
the Commission to waive the 30-day operative delay so that the proposal 
may become operative immediately upon filing. The Exchange states that 
the waiver will allow the Exchange to immediately implement QUO and 
delay the implementation of the OTTO functionality to allow the 
Exchange additional time to implement this functionality and for 
Participants to sign-up for this new port and test with the Exchange. 
The Exchange further states that delaying the implementation of OTTO is 
consistent with the protection of investors and the public interest 
because it permits additional time for the Exchange to ensure a 
successful implementation of new OTTO. Additionally, the Exchange notes 
that implementing QUO will bring greater transparency to NOM rules. 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 as operative upon filing.\14\
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    \12\ 17 CFR 240.19b-4(f)(6).
    \13\ 17 CFR 240.19b-4(f)(6)(iii).
    \14\ For purposes only of waiving the 30-day operative delay, 
the Commission has also 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: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) 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 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-NASDAQ-2018-097 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to File Number SR-NASDAQ-2018-097. 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

[[Page 63694]]

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-2018-097 and should be submitted on or before January 2, 2019.
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    \15\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-26736 Filed 12-10-18; 8:45 am]
 BILLING CODE 8011-01-P



                                              63692                      Federal Register / Vol. 83, No. 237 / Tuesday, December 11, 2018 / Notices

                                              obligations under Section 19(g)(1) of the               (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the             renamed and modified the current
                                              Act, the Exchange will surveil for                      Securities and Exchange Commission                      OTTO protocol as ‘‘Quote Using
                                              compliance with the continued listing                   (‘‘Commission’’) the proposed rule                      Orders’’ or ‘‘QUO’’.5 The Prior Rule
                                              requirements. If the Fund or the Shares                 change as described in Items I and II                   Change, which is effective but not yet
                                              are not in compliance with the                          below, which Items have been prepared                   operative, renamed and modified the
                                              applicable listing requirements, the                    by the Exchange. The Commission is                      current OTTO protocol to ‘‘QUO.’’ The
                                              Exchange will commence delisting                        publishing this notice to solicit                       Exchange subsequently filed a rule
                                              procedures under Exchange Rule 14.12.                   comments on the proposed rule change                    change to amend Chapter VI, Section
                                                This approval order is based on all of                from interested persons.                                6(e), titled ‘‘Detection of Loss of
                                              the Exchange’s representations and                                                                              Communication’’ which describes the
                                                                                                      I. Self-Regulatory Organization’s
                                              description of the Shares and the Fund,                                                                         impact to NOM protocols in the event
                                                                                                      Statement of the Terms of Substance of
                                              including those set forth above and in                                                                          of a loss of a communication. The
                                                                                                      the Proposed Rule Change
                                              Amendment Nos. 1 and 2 to the                                                                                   Exchange accounted for both the new
                                              proposed rule change. Except as                            The Exchange proposes to a proposal                  OTTO and renamed and modified QUO
                                              described herein, the Commission notes                  to delay a new protocol ‘‘Ouch to Trade                 within this rule. Similarly, the Exchange
                                              that the Shares must comply with all                    Options’’ or ‘‘OTTO’’ on The Nasdaq                     amended Chapter VI, Section 8,
                                              applicable requirements of BZX Rule                     Options Market LLC (‘‘NOM’’).                           ‘‘Nasdaq Opening and Halt Cross’’ to
                                              14.11(i) to be listed and traded on the                    The text of the proposed rule change                 account for the new OTTO and renamed
                                              Exchange on an initial and continuing                   is available on the Exchange’s website at               and modified QUO within this rule.
                                              basis.                                                  http://nasdaq.cchwallstreet.com, at the                 Finally, the Exchange amended Chapter
                                                For the foregoing reasons, the                        principal office of the Exchange, and at                VI, Section 19, ‘‘Data Feeds and Trade
                                              Commission finds that the proposed                      the Commission’s Public Reference                       Information’’ to amend ‘‘OTTO DROP’’
                                              rule change, as modified by Amendment                   Room.
                                                                                                                                                              to ‘‘QUO DROP’’ and noted within
                                              Nos. 1 and 2, is consistent with Section                II. Self-Regulatory Organization’s                      Chapter VI, Section 18(a)(1) related to
                                              6(b)(5) of the Act 31 and the rules and                 Statement of the Purpose of, and                        Order Price Protection rule or ‘‘OPP’’
                                              regulations thereunder applicable to a                  Statutory Basis for, the Proposed Rule                  that OPP shall not apply to orders
                                              national securities exchange.                           Change                                                  entered through QUO.6
                                              IV. Conclusion                                             In its filing with the Commission, the                  Both the Prior Rule Change and the
                                                                                                      Exchange included statements                            Subsequent Rule Change indicated the
                                                It is therefore ordered, pursuant to                                                                          aforementioned rule changes would be
                                              Section 19(b)(2) of the Act,32 that the                 concerning the purpose of and basis for
                                                                                                      the proposed rule change and discussed                  implemented for QUO and OTTO in Q4
                                              proposed rule change (SR–CboeBZX–                                                                               of 2018 with the date announced via an
                                              2017–076), as modified by Amendment                     any comments it received on the
                                                                                                      proposed rule change. The text of these                 Options Traders Alert. At this time, the
                                              Nos. 1 and 2, be, and it hereby is,                                                                             Exchange proposes to immediately
                                              approved.                                               statements may be examined at the
                                                                                                      places specified in Item IV below. The                  implement QUO and delay the
                                                For the Commission, by the Division of                Exchange has prepared summaries, set                    introduction of new OTTO functionality
                                              Trading and Markets, pursuant to delegated                                                                      until Q1 2019 by announcing the date
                                                                                                      forth in sections A, B, and C below, of
                                              authority.33                                                                                                    of implementation via an Options
                                                                                                      the most significant aspects of such
                                              Eduardo A. Aleman,                                                                                              Traders Alert. The Exchange proposes to
                                                                                                      statements.
                                              Assistant Secretary.                                                                                            provide for the delay of the OTTO
                                              [FR Doc. 2018–26735 Filed 12–10–18; 8:45 am]            A. Self-Regulatory Organization’s                       functionality by inserting the following
                                              BILLING CODE 8011–01–P
                                                                                                      Statement of the Purpose of, and                        rule text at the beginning of NOM Rules
                                                                                                      Statutory Basis for, the Proposed Rule                  at Chapter VI, Sections 6, 9 and 21 to
                                                                                                      Change                                                  make clear that OTTO functionality is
                                              SECURITIES AND EXCHANGE                                 1. Purpose                                              not yet implemented: ‘‘OTTO
                                              COMMISSION                                                                                                      functionality implementation shall be
                                                                                                         Nasdaq recently filed a rule change 3
                                              [Release No. 34–84723; File No. SR–                                                                             delayed until Q1 2019. The Exchange
                                                                                                      which adopted a new protocol ‘‘Ouch to
                                              NASDAQ–2018–097]                                                                                                will issue an Options Trader Alert
                                                                                                      Trade Options’’ or ‘‘OTTO’’ 4 and
                                                                                                                                                              notifying Participants when this
                                              Self-Regulatory Organizations; The                         3 See Securities Exchange Act Release No. 83888      functionality will be available.’’
                                              Nasdaq Stock Market LLC; Notice of                      (August 20, 2018), 83 FR 42954 (August 24, 2018)           The Exchange proposes this delay to
                                              Filing and Immediate Effectiveness of                   (SR–NASDAQ–2018–069) (‘‘Prior Rule Change’’).           allow the Exchange additional time to
                                              Proposed Rule Change To Delay a New                     This rule change is immediately effective but will      implement this functionality and for
                                              Protocol ‘‘Ouch to Trade Options’’ or                   not be operative until such time as the Exchange
                                                                                                      issues an Options Trader Alert announcing the
                                              ‘‘OTTO’’ on The Nasdaq Options Market                   implementation date. This notification will be             5 QUO is an interface that allows NOM Market

                                              LLC (‘‘NOM’’)                                           issued in Q4 2018. The Exchange notes that this         Makers to connect, send, and receive messages
                                                                                                      filing renamed and modified the current OTTO            related to single-sided orders to and from the
                                              December 4, 2018.                                       protocol as ‘‘QUO’’ and also proposed the adoption      Exchange. Order Features include the following: (1)
                                                 Pursuant to Section 19(b)(1) of the                  of a new OTTO protocol.                                 Options symbol directory messages (e.g.,
                                                                                                         4 New OTTO is an interface that allows               underlying); (2) system event messages (e.g., start of
                                              Securities Exchange Act of 1934                                                                                 trading hours messages and start of opening); (3)
                                                                                                      Participants and their Sponsored Customers to
                                              (‘‘Act’’),1 and Rule 19b–4 thereunder,2                 connect, send, and receive messages related to          trading action messages (e.g., halts and resumes); (4)
amozie on DSK3GDR082PROD with NOTICES1




                                              notice is hereby given that on November                 orders to and from the Exchange. Features include       execution messages; (5) order messages; and (6) risk
                                              26, 2018, The Nasdaq Stock Market LLC                   the following: (1) Options symbol directory             protection triggers and cancel notifications. Orders
                                                                                                      messages (e.g., underlying); (2) system event           submitted by NOM Market Makers over this
                                                31 15                                                 messages (e.g., start of trading hours messages and     interface are treated as quotes. See NOM Rules at
                                                      U.S.C. 78f(b)(5).                                                                                       Chapter VI, Section 21(a)(i)(D).
                                                32 15
                                                                                                      start of opening); (3) trading action messages (e.g.,
                                                      U.S.C. 78s(b)(2).                               halts and resumes); (4) execution messages; (5)            6 See Securities Exchange Act Release No. 84559
                                                33 17 CFR 200.30–3(a)(12).
                                                                                                      order messages; and (6) risk protection triggers and    (November 9, 2019), 83 FR 57774 (November 16,
                                                1 15 U.S.C. 78s(b)(1).
                                                                                                      cancel notifications. See NOM Rules at Chapter VI,      2018) (SR–NASDAQ–2018–085) (‘‘Subsequent Rule
                                                2 17 CFR 240.19b–4.                                   Section 21(a)(i)(C).                                    Change’’).



                                         VerDate Sep<11>2014   17:51 Dec 10, 2018   Jkt 247001   PO 00000   Frm 00081   Fmt 4703   Sfmt 4703   E:\FR\FM\11DEN1.SGM    11DEN1


                                                                           Federal Register / Vol. 83, No. 237 / Tuesday, December 11, 2018 / Notices                                                        63693

                                              Participants to sign-up for this new port                 sign-up for this new port and test with                   public interest. Accordingly, the
                                              and test with the Exchange.                               the Exchange.                                             Commission hereby waives the
                                                                                                                                                                  operative delay and designates the
                                              Amend OTTO at Options 7                                   C. Self-Regulatory Organization’s
                                                                                                                                                                  proposed rule change as operative upon
                                                The Exchange’s current pricing at                       Statement on Comments on the
                                                                                                                                                                  filing.14
                                              Options 7,7 Section 3(i)(4) reflects an                   Proposed Rule Change Received From                           At any time within 60 days of the
                                              OTTO Port Fee. The Exchange proposed                      Members, Participants, or Others                          filing of the proposed rule change, the
                                              to rename the OTTO Port Fee as ‘‘QUO                        No written comments were either                         Commission summarily may
                                              Port Fee’’ to reflect the new name of the                 solicited or received.                                    temporarily suspend such rule change if
                                              modified former OTTO protocol. No                                                                                   it appears to the Commission that such
                                                                                                        III. Date of Effectiveness of the
                                              changes are being made to the port fee.                                                                             action is: (i) Necessary or appropriate in
                                                                                                        Proposed Rule Change and Timing for
                                              Likewise, the current ‘‘OTTO DROP Port                                                                              the public interest; (ii) for the protection
                                                                                                        Commission Action
                                              Fee’’ at Options 7, Section 3(ii)(4) is                                                                             of investors; or (iii) otherwise in
                                              proposed to be renamed the ‘‘QUO                             Because the foregoing proposed rule                    furtherance of the purposes of the Act.
                                              DROP Port Fee.’’                                          change does not: (i) Significantly affect                 If the Commission takes such action, the
                                                                                                        the protection of investors or the public                 Commission shall institute proceedings
                                              2. Statutory Basis                                        interest; (ii) impose any significant                     to determine whether the proposed rule
                                                 The Exchange believes that its                         burden on competition; and (iii) become                   should be approved or disapproved.
                                              proposal is consistent with Section 6(b)                  operative for 30 days from the date on
                                              of the Act,8 in general, and furthers the                 which it was filed, or such shorter time                  IV. Solicitation of Comments
                                              objectives of Section 6(b)(5) of the Act,9                as the Commission may designate, it has                     Interested persons are invited to
                                              in particular, in that it is designed to                  become effective pursuant to Section                      submit written data, views, and
                                              promote just and equitable principles of                  19(b)(3)(A)(iii) of the Act 10 and                        arguments concerning the foregoing,
                                              trade, to remove impediments to and                       subparagraph (f)(6) of Rule 19b–4                         including whether the proposed rule
                                              perfect the mechanism of a free and                       thereunder.11                                             change is consistent with the Act.
                                              open market and a national market                            A proposed rule change filed under                     Comments may be submitted by any of
                                              system, and, in general to protect                        Rule 19b–4(f)(6) 12 normally does not                     the following methods:
                                              investors and the public interest by                      become operative prior to 30 days after
                                              delaying the OTTO functionality to                        the date of the filing. However, Rule                     Electronic Comments
                                              allow the Exchange additional time to                     19b–4(f)(6)(iii) 13 permits the                             • Use the Commission’s internet
                                              implement this functionality and for                      Commission to designate a shorter time                    comment form (http://www.sec.gov/
                                              Participants to sign-up for this new port                 if such action is consistent with the                     rules/sro.shtml); or
                                              and test with the Exchange. QUO would                     protection of investors and the public                      • Send an email to rule-comments@
                                              be implemented to avoid any confusion                     interest. The Exchange has asked the                      sec.gov. Please include File Number SR–
                                              with the new proposed protocol.                           Commission to waive the 30-day                            NASDAQ–2018–097 on the subject line.
                                                                                                        operative delay so that the proposal may                  Paper Comments
                                              QUO                                                       become operative immediately upon
                                                The Exchange’s proposal to rename                       filing. The Exchange states that the                         • Send paper comments in triplicate
                                              the current ‘‘OTTO Port Fee’’ as ‘‘QUO                    waiver will allow the Exchange to                         to Secretary, Securities and Exchange
                                              Port Fee’’ and ‘‘OTTO DROP Port Fee’’                     immediately implement QUO and delay                       Commission, 100 F Street NE,
                                              as ‘‘QUO DROP Port Fee’’ is consistent                    the implementation of the OTTO                            Washington, DC 20549–1090.
                                              with the Act because the amendment                        functionality to allow the Exchange                       All submissions should refer to File
                                              will reflect the name change and                          additional time to implement this                         Number SR–NASDAQ–2018–097. This
                                              modification as proposed in the Prior                     functionality and for Participants to                     file number should be included on the
                                              Rule Change.                                              sign-up for this new port and test with                   subject line if email is used. To help the
                                                                                                        the Exchange. The Exchange further                        Commission process and review your
                                              B. Self-Regulatory Organization’s
                                                                                                        states that delaying the implementation                   comments more efficiently, please use
                                              Statement on Burden on Competition
                                                                                                        of OTTO is consistent with the                            only one method. The Commission will
                                                 The Exchange does not believe that                     protection of investors and the public                    post all comments on the Commission’s
                                              the proposed rule change will impose                      interest because it permits additional                    internet website (http://www.sec.gov/
                                              any burden on competition not                             time for the Exchange to ensure a                         rules/sro.shtml). Copies of the
                                              necessary or appropriate in furtherance                   successful implementation of new                          submission, all subsequent
                                              of the purposes of the Act. The                           OTTO. Additionally, the Exchange                          amendments, all written statements
                                              Exchange’s proposal to implement QUO                      notes that implementing QUO will bring                    with respect to the proposed rule
                                              and delay the adoption of new OTTO                        greater transparency to NOM rules. The                    change that are filed with the
                                              functionality does not impose an undue                    Commission believes that waiver of the                    Commission, and all written
                                              burden on competition. Immediately                        30-day operative delay is consistent                      communications relating to the
                                              implementing the QUO protocol, which                      with the protection of investors and the                  proposed rule change between the
                                              is the subject of an already effective rule                                                                         Commission and any person, other than
                                              change, will avoid any confusion with                       10 15  U.S.C. 78s(b)(3)(A)(iii).                        those that may be withheld from the
                                              the implementation of the new OTTO                          11 17  CFR 240.19b–4(f)(6). In addition, Rule 19b–      public in accordance with the
                                              protocol. Delaying the new OTTO                           4(f)(6)(iii) requires a self-regulatory organization to   provisions of 5 U.S.C. 552, will be
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                                              functionality to allow the Exchange                       give the Commission written notice of its intent to
                                                                                                                                                                  available for website viewing and
                                              additional time to implement this                         file the proposed rule change, along with a brief
                                                                                                        description and the text of the proposed rule             printing in the Commission’s Public
                                              functionality and for Participants to                     change, at least five business days prior to the date
                                                                                                        of filing of the proposed rule change, or such               14 For purposes only of waiving the 30-day
                                                7 Options   7 refers to the Exchange’s new rulebook     shorter time as designated by the Commission. The         operative delay, the Commission has also
                                              shell.                                                    Exchange has satisfied this requirement.                  considered the proposed rule’s impact on
                                                8 15 U.S.C. 78f(b).                                        12 17 CFR 240.19b–4(f)(6).
                                                                                                                                                                  efficiency, competition, and capital formation. See
                                                9 15 U.S.C. 78f(b)(5).                                     13 17 CFR 240.19b–4(f)(6)(iii).                        15 U.S.C. 78c(f).



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                                              63694                        Federal Register / Vol. 83, No. 237 / Tuesday, December 11, 2018 / Notices

                                              Reference Room, 100 F Street NE,                          organizations in the State of North                   (Catalog of Federal Domestic Assistance
                                              Washington, DC 20549, on official                         Carolina, dated 10/12/2018, is hereby                 Number 59008)
                                              business days between the hours of                        amended to include the following areas                James Rivera,
                                              10:00 a.m. and 3:00 p.m. Copies of the                    as adversely affected by the disaster.                Associate Administrator for Disaster
                                              filing also will be available for                         Primary Counties: Guilford, McDowell.                 Assistance.
                                              inspection and copying at the principal                                                                         [FR Doc. 2018–26710 Filed 12–10–18; 8:45 am]
                                              office of the Exchange. All comments                        All other information in the original
                                              received will be posted without change.                   declaration remains unchanged.                        BILLING CODE 8025–01–P

                                              Persons submitting comments are                           (Catalog of Federal Domestic Assistance
                                              cautioned that we do not redact or edit                   Number 59008)
                                                                                                                                                              SMALL BUSINESS ADMINISTRATION
                                              personal identifying information from                     James Rivera,
                                              comment submissions. You should
                                                                                                        Associate Administrator for Disaster                  [Disaster Declaration #15780 and #15781;
                                              submit only information that you wish                     Assistance.                                           Florida Disaster Number FL–00141]
                                              to make available publicly. All
                                                                                                        [FR Doc. 2018–26711 Filed 12–10–18; 8:45 am]
                                              submissions should refer to File                                                                                Presidential Declaration Amendment of
                                                                                                        BILLING CODE 8025–01–P
                                              Number SR–NASDAQ–2018–097 and                                                                                   a Major Disaster for Public Assistance
                                              should be submitted on or before                                                                                Only for the State of Florida
                                              January 2, 2019.
                                                                                                        SMALL BUSINESS ADMINISTRATION
                                                For the Commission, by the Division of                                                                        AGENCY: U.S. Small Business
                                              Trading and Markets, pursuant to delegated                                                                      Administration.
                                                                                                        [Disaster Declaration #15748 and #15749;
                                              authority.15                                                                                                    ACTION: Amendment 1.
                                                                                                        Virginia Disaster Number VA–00075]
                                              Eduardo A. Aleman,
                                              Assistant Secretary.                                      Presidential Declaration Amendment of                 SUMMARY:    This is an amendment of the
                                              [FR Doc. 2018–26736 Filed 12–10–18; 8:45 am]              a Major Disaster for Public Assistance                Presidential declaration of a major
                                              BILLING CODE 8011–01–P                                    Only for the Commonwealth of Virginia                 disaster for Public Assistance Only for
                                                                                                                                                              the State of Florida (FEMA–4399–DR),
                                                                                                        AGENCY:U.S. Small Business                            dated 10/23/2018.
                                                                                                        Administration.                                          Incident: Hurricane Michael.
                                              SMALL BUSINESS ADMINISTRATION
                                                                                                        ACTION:   Amendment 2.                                   Incident Period: 10/07/2018 through
                                              [Disaster Declaration #15746 and #15747;                                                                        10/19/2018.
                                              North Carolina Disaster Number NC–00100]                  SUMMARY:   This is an amendment of the                DATES: Issued on 11/15/2018.
                                                                                                        Presidential declaration of a major                      Physical Loan Application Deadline
                                              Presidential Declaration Amendment of
                                                                                                        disaster for Public Assistance Only for               Date: 12/24/2018.
                                              a Major Disaster for Public Assistance
                                                                                                        the Commonwealth of Virginia (FEMA–                      Economic Injury (EIDL) Loan
                                              Only for the State of North Carolina
                                                                                                        4401–DR), dated 10/15/2018.                           Application Deadline Date: 07/23/2019.
                                              AGENCY: U.S. Small Business                                 Incident: Hurricane Florence.                       ADDRESSES: Submit completed loan
                                              Administration.                                             Incident Period: 09/08/2018 through                 applications to: U.S. Small Business
                                              ACTION: Amendment 3.                                      09/21/2018.                                           Administration, Processing and
                                                                                                        DATES: Issued on 11/14/2018.                          Disbursement Center, 14925 Kingsport
                                              SUMMARY:   This is an amendment of the
                                                                                                          Physical Loan Application Deadline                  Road, Fort Worth, TX 76155.
                                              Presidential declaration of a major
                                              disaster for Public Assistance Only for                   Date: 12/14/2018.                                     FOR FURTHER INFORMATION CONTACT: A.
                                              the State of North Carolina (FEMA–                          Economic Injury (EIDL) Loan                         Escobar, Office of Disaster Assistance,
                                              4393–DR), dated 10/12/2018.                               Application Deadline Date: 07/15/2019.                U.S. Small Business Administration,
                                                Incident: Hurricane Florence.                                                                                 409 3rd Street SW, Suite 6050,
                                                                                                        ADDRESSES:  Submit completed loan
                                                Incident Period: 09/07/2018 through                                                                           Washington, DC 20416, (202) 205–6734.
                                                                                                        applications to: U.S. Small Business
                                              09/29/2018.                                               Administration, Processing and                        SUPPLEMENTARY INFORMATION: The notice
                                              DATES: Issued on 11/15/2018.                              Disbursement Center, 14925 Kingsport                  of the President’s major disaster
                                                Physical Loan Application Deadline                      Road, Fort Worth, TX 76155.                           declaration for Private Non-Profit
                                              Date: 12/11/2018.                                                                                               organizations in the State of Florida,
                                                                                                        FOR FURTHER INFORMATION CONTACT:     A.               dated 10/23/2018, is hereby amended to
                                                Economic Injury (EIDL) Loan
                                                                                                        Escobar, Office of Disaster Assistance,               include the following areas as adversely
                                              Application Deadline Date: 07/12/2019.
                                                                                                        U.S. Small Business Administration,                   affected by the disaster.
                                              ADDRESSES: Submit completed loan                          409 3rd Street SW, Suite 6050,
                                              applications to: U.S. Small Business                      Washington, DC 20416, (202) 205–6734.                 Primary Counties: Franklin, Holmes,
                                              Administration, Processing and                                                                                       Jefferson, Leon, Madison, Okaloosa,
                                              Disbursement Center, 14925 Kingsport                      SUPPLEMENTARY INFORMATION:     The notice                  Taylor, Wakulla, Walton,
                                              Road, Fort Worth, TX 76155.                               of the President’s major disaster                          Washington.
                                                                                                        declaration for Private Non-Profit
                                              FOR FURTHER INFORMATION CONTACT: A.                                                                               All other information in the original
                                                                                                        organizations in the Commonwealth of
                                              Escobar, Office of Disaster Assistance,                   Virginia, dated 10/15/2018, is hereby                 declaration remains unchanged.
                                              U.S. Small Business Administration,                       amended to include the following areas
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                                                                                                                                                              (Catalog of Federal Domestic Assistance
                                              409 3rd Street SW, Suite 6050,                            as adversely affected by the disaster.                Number 59008)
                                              Washington, DC 20416, (202) 205–6734.
                                              SUPPLEMENTARY INFORMATION: The notice
                                                                                                        Primary Counties: Craig, Floyd,                       James Rivera,
                                              of the President’s major disaster                             Grayson, Isle of Wight, and the                   Associate Administrator for Disaster
                                              declaration for Private Non-Profit                            independent city of Hampton.                      Assistance.
                                                                                                          All other information in the original               [FR Doc. 2018–26715 Filed 12–10–18; 8:45 am]
                                                15 17   CFR 200.30–3(a)(12).                            declaration remains unchanged.                        BILLING CODE 8025–01–P




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Document Created: 2018-12-11 01:06:55
Document Modified: 2018-12-11 01:06:55
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 63692 

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