83 FR 63924 - Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend NYSE American Rule 5.1E(a)(2)

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 238 (December 12, 2018)

Page Range		63924-63926
FR Document		2018-26837
Federal Register, Volume 83 Issue 238 (Wednesday, December 12, 2018)
[Federal Register Volume 83, Number 238 (Wednesday, December 12, 2018)]
[Notices]
[Pages 63924-63926]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-26837]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84742; File No. SR-NYSEAMER-2018-53]


Self-Regulatory Organizations; NYSE American LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend 
NYSE American Rule 5.1E(a)(2)

December 6, 2018.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given 
that on November 27, 2018, NYSE American LLC (``Exchange'' or ``NYSE 
American'') 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 self-regulatory 
organization. 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\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend NYSE American Rule 5.1E(a)(2) to 
remove the requirement that the Exchange file with the Securities and 
Exchange Commission (the ``Commission'') a Form 19b-4(e) for each ``new 
derivative securities product'' that will commence trading on the 
Exchange pursuant to unlisted trading privileges. The proposed rule 
change is available on the Exchange's website at www.nyse.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 self-regulatory organization 
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 those 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 parts of such statements.

[[Page 63925]]

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

1. Purpose
    The purpose of the proposed rule change is to amend NYSE American 
Rule 5.1E(a)(2)(A) to remove the requirement that the Exchange file 
with the Commission a Form 19b-4(e) for each ``new derivative 
securities product'' that will commence trading on the Exchange 
pursuant to unlisted trading privileges. The Exchange also proposes to 
renumber the remaining subsections of NYSE American Rule 5.1E(a)(2) to 
maintain an organized rule structure. The Exchange notes that a 
substantially identical proposed rule change by NYSE National, Inc. 
(``NYSE National'') was recently approved by the Commission.\4\
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    \4\ See Securities Exchange Act Release No. 83289 (May 17, 
2018), 83 FR 23968 (May 23, 2018) (Order Approving File No. SR-
NYSENat-2018-02).
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    NYSE American Rule 5.1E(a)(2)(A) sets forth the requirement for the 
Exchange to file with the Commission a Form 19b-4(e) with respect to 
each ``new derivative securities product'' that is traded pursuant to 
unlisted trading privileges. However, the Exchange believes that it 
should not be necessary to file a Form 19b-4(e) with the Commission if 
it begins trading a ``new derivative securities product'' pursuant to 
unlisted trading privileges, because Rule 19b-4(e)(1) under the Act 
refers to the ``listing and trading'' of a ``new derivative securities 
product.'' The Exchange believes that the requirements of that rule 
refer to when an exchange lists and trades a ``new derivative 
securities product'', and not when an exchange seeks only to trade such 
product pursuant to unlisted trading privileges pursuant to Rule 12f-2 
under the Act.\5\ Therefore, the Exchange proposes to delete the 
requirement in current NYSE American Rule 5.1E(a)(2)(A) for the 
Exchange to file a Form 19b-4(e) with the Commission with respect to 
each ``new derivative securities product'' it begins trading pursuant 
to unlisted trading privileges. In addition, as a result of the 
deletion of current NYSE American Rule 5.1E(a)(2)(A), the Exchange 
proposes to renumber current NYSE American Rules 5.1E(a)(2)(B)-(F).
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    \5\ 17 CFR 240.12f-2.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6(b) \6\ of the Act in general, and 
furthers the objectives of Section 6(b)(5) of the Act \7\ in 
particular, in that it is designed to prevent fraudulent and 
manipulative acts and practices, 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. Specifically, 
eliminating the requirement to file a Form 19b-4(e) for each ``new 
derivative securities product'' the Exchange begins trading on an 
unlisted trading privileges basis removes an unnecessary regulatory 
requirement thereby providing for a more efficient process for adding a 
``new derivative securities product'' to trading on the Exchange on an 
unlisted trading privileges basis.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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    As noted above, the Commission recently approved a substantially 
identical proposed rule change by NYSE National.\8\ In particular, the 
Commission noted in the approval order that it ``believes that the 
filing of a Form 19b-4(e) is not required when an Exchange is trading a 
new derivative securities product on a UTP basis only'' \9\ and also 
found that the NYSE National's proposed rule change is ``consistent 
with the requirements of Section 6(b)(5) of the Act.'' \10\ The Nasdaq 
Stock Market LLC (``Nasdaq''), Nasdaq PHLX LLC (``PHLX''), Nasdaq BX, 
Inc. (``BX'') and Investors Exchange LLC (``IEX'') also recently 
amended their rules to remove the requirement to file with the 
Commission a Form 19b-4(e) for each ``new derivative securities 
product'' traded on each of those exchanges pursuant to unlisted 
trading privileges.\11\
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    \8\ See Securities Exchange Act Release No. 83289 (May 17, 
2018), 83 FR 23968 (May 23, 2018) (Order Approving File No. (SR-
NYSENat-2018-02).
    \9\ See supra note 10 [sic] at page 23975 at footnote 149.
    \10\ See supra note 10 [sic] at page 23975-6.
    \11\ See Securities Exchange Act Release Nos. 84488 (October 25, 
2018), 83 FR 54801 (October 31, 2018) (SR-NASDAQ-2018-082); 84542 
(November 6, 2018), 83 FR 56385 (November 13, 2018) (SR-Phlx-2018-
67); 84546 (November 7, 2018), 83 FR 56888 (November 14, 2018) (SR-
BX-2018-051); and 83609 (July 9, 2018), 83 FR 32704 (July 13, 2018) 
(SR-IEX-2018-14).
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    With respect to the renumbering of current NYSE American Rules 
5.1E(a)(2)(B)-(F), the Exchange believes that these changes are 
consistent with the Act because they will allow the Exchange to 
maintain a clear and organized rule structure, thus preventing investor 
confusion.
    For these reasons, the Exchange believes the proposed rule change 
is consistent with the requirements of Section 6(b)(5) of the Act.

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. To the contrary, removing 
the requirement to file a Form 19b-4(e) will serve to enhance 
competition by providing for the efficient addition of new derivative 
securities products for trading pursuant to unlisted trading privileges 
on the Exchange. To the extent that a competitor marketplace believes 
that the proposed rule change places it at a competitive disadvantage, 
it may file with the Commission a proposed rule change to adopt the 
same or similar rule.
    In addition, the proposal to renumber current NYSE American Rules 
5.1E(a)(2)(B)-(F) does not impact competition in any respect since it 
merely maintains a clear and organized rule structure.

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

    No written comments were solicited or received with respect to the 
proposed rule change.

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

    Because the proposed rule change does not: (i) Significantly affect 
the protection of investors or the public interest; (ii) impose any 
significant burden on competition; or (iii) become operative prior to 
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 \12\ and Rule 19b-4(f)(6) 
thereunder.\13\
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    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change, along 
with a brief description and text of the proposed rule change, at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
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    The Exchange has asked the Commission to waive the 30-day operative 
delay so that the proposal may become operative immediately upon 
filing. The Commission notes that the Exchange's proposal does not 
present any new or novel issues. Thus, the Commission believes that 
waiver of the 30-day operative delay is consistent with the protection 
of investors and the

[[Page 63926]]

public interest and hereby waives the 30-day operative delay and 
designates the proposed rule change to be operative upon filing.\14\
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    \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 necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act.

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-NYSEAMER-2018-53 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-NYSEAMER-2018-53. 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-NYSEAMER-2018-53 and should be submitted 
on or before January 2, 2019.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-26837 Filed 12-11-18; 8:45 am]
 BILLING CODE 8011-01-P
63924 Federal Register / Vol. 83, No. 238 / Wednesday, December 12, 2018 / Notices

of the purposes of the Act. All of the Paper Comments SECURITIES AND EXCHANGE
proposed changes are intended to bring COMMISSION
greater transparency to the Exchange’s • Send paper comments in triplicate
Rulebook, and therefore does not to Secretary, Securities and Exchange
[Release No. 34–84742; File No. SR–
unduly burden competition. Commission, 100 F Street NE, NYSEAMER–2018–53]
Washington, DC 20549–1090.
C. Self-Regulatory Organization’s
All submissions should refer to File Self-Regulatory Organizations; NYSE
Statement on Comments on the
Number SR–ISE–2018–97. This file American LLC; Notice of Filing and
Proposed Rule Change Received From
number should be included on the Immediate Effectiveness of Proposed
Members, Participants, or Others
subject line if email is used. To help the Rule Change To Amend NYSE
No written comments were either American Rule 5.1E(a)(2)
Commission process and review your
solicited or received. comments more efficiently, please use December 6, 2018.
III. Date of Effectiveness of the only one method. The Commission will Pursuant to Section 19(b)(1) 1 of the
Proposed Rule Change and Timing for post all comments on the Commission’s Securities Exchange Act of 1934
Commission Action internet website (http://www.sec.gov/ (‘‘Act’’) 2 and Rule 19b–4 thereunder,3
rules/sro.shtml). Copies of the notice is hereby given that on November
Because the foregoing proposed rule submission, all subsequent 27, 2018, NYSE American LLC
change does not: (i) Significantly affect amendments, all written statements (‘‘Exchange’’ or ‘‘NYSE American’’) filed
the protection of investors or the public with respect to the proposed rule with the Securities and Exchange
interest; (ii) impose any significant change that are filed with the Commission (‘‘Commission’’) the
burden on competition; and (iii) become Commission, and all written proposed rule change as described in
operative for 30 days from the date on
communications relating to the Items I and II below, which Items have
which it was filed, or such shorter time
proposed rule change between the been prepared by the self-regulatory
as the Commission may designate, it has
Commission and any person, other than organization. The Commission is
become effective pursuant to Section
those that may be withheld from the publishing this notice to solicit
19(b)(3)(A)(iii) of the Act 13 and
public in accordance with the comments on the proposed rule change
subparagraph (f)(6) of Rule 19b–4
provisions of 5 U.S.C. 552, will be from interested persons.
thereunder.14
available for website viewing and I. Self-Regulatory Organization’s
At any time within 60 days of the printing in the Commission’s Public
filing of the proposed rule change, the Statement of the Terms of Substance of
Reference Room, 100 F Street NE, the Proposed Rule Change
Commission summarily may
Washington, DC 20549, on official
temporarily suspend such rule change if The Exchange proposes to amend
it appears to the Commission that such business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the NYSE American Rule 5.1E(a)(2) to
action is necessary or appropriate in the remove the requirement that the
public interest, for the protection of filing also will be available for
inspection and copying at the principal Exchange file with the Securities and
investors, or otherwise in furtherance of Exchange Commission (the
the purposes of the Act. If the office of the Exchange. All comments
received will be posted without change. ‘‘Commission’’) a Form 19b–4(e) for
Commission takes such action, the each ‘‘new derivative securities
Commission shall institute proceedings Persons submitting comments are
product’’ that will commence trading on
to determine whether the proposed rule cautioned that we do not redact or edit
the Exchange pursuant to unlisted
should be approved or disapproved. personal identifying information from
trading privileges. The proposed rule
comment submissions. You should change is available on the Exchange’s
IV. Solicitation of Comments
submit only information that you wish website at www.nyse.com, at the
Interested persons are invited to to make available publicly. All principal office of the Exchange, and at
submit written data, views, and submissions should refer to File the Commission’s Public Reference
arguments concerning the foregoing, Number SR–ISE–2018–97 and should be Room.
including whether the proposed rule submitted on or before January 2, 2019.
change is consistent with the Act. II. Self-Regulatory Organization’s
For the Commission, by the Division of Statement of the Purpose of, and
Comments may be submitted by any of Trading and Markets, pursuant to delegated
the following methods: Statutory Basis for, the Proposed Rule
authority.15 Change
Electronic Comments Eduardo A. Aleman,
Assistant Secretary. In its filing with the Commission, the
• Use the Commission’s internet [FR Doc. 2018–26836 Filed 12–11–18; 8:45 am]
self-regulatory organization included
comment form (http://www.sec.gov/ statements concerning the purpose of,
BILLING CODE 8011–01–P
rules/sro.shtml); or and basis for, the proposed rule change
• Send an email to rule-comments@ and discussed any comments it received
sec.gov. Please include File Number SR– on the proposed rule change. The text
ISE–2018–97 on the subject line. of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
amozie on DSK3GDR082PROD with NOTICES1

13 15 U.S.C. 78s(b)(3)(A)(iii).
14 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– set forth in sections A, B, and C below,
4(f)(6) requires a self-regulatory organization to give of the most significant parts of such
the Commission written notice of its intent to file statements.
the proposed rule change at least five business days
prior to the date of filing of the proposed rule
1 15 U.S.C.78s(b)(1).
change, or such shorter time as designated by the
2 15 U.S.C. 78a.
Commission. The Exchange has satisfied this
requirement. 15 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4.

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Federal Register / Vol. 83, No. 238 / Wednesday, December 12, 2018 / Notices 63925

A. Self-Regulatory Organization’s objectives of Section 6(b)(5) of the Act 7 B. Self-Regulatory Organization’s
Statement of the Purpose of, and the in particular, in that it is designed to Statement on Burden on Competition
Statutory Basis for, the Proposed Rule prevent fraudulent and manipulative The Exchange does not believe that
Change acts and practices, to promote just and the proposed rule change would impose
equitable principles of trade, to remove any burden on competition that is not
1. Purpose
impediments to and perfect the necessary or appropriate in furtherance
The purpose of the proposed rule mechanism of a free and open market
change is to amend NYSE American of the purposes of the Act. To the
and a national market system, and, in contrary, removing the requirement to
Rule 5.1E(a)(2)(A) to remove the general, to protect investors and the
requirement that the Exchange file with file a Form 19b–4(e) will serve to
public interest. Specifically, eliminating enhance competition by providing for
the Commission a Form 19b–4(e) for the requirement to file a Form 19b–4(e)
each ‘‘new derivative securities the efficient addition of new derivative
for each ‘‘new derivative securities
product’’ that will commence trading on securities products for trading pursuant
product’’ the Exchange begins trading
the Exchange pursuant to unlisted to unlisted trading privileges on the
on an unlisted trading privileges basis
trading privileges. The Exchange also Exchange. To the extent that a
removes an unnecessary regulatory
proposes to renumber the remaining competitor marketplace believes that the
requirement thereby providing for a
subsections of NYSE American Rule proposed rule change places it at a
more efficient process for adding a ‘‘new
5.1E(a)(2) to maintain an organized rule competitive disadvantage, it may file
derivative securities product’’ to trading
structure. The Exchange notes that a with the Commission a proposed rule
on the Exchange on an unlisted trading
substantially identical proposed rule change to adopt the same or similar
privileges basis.
change by NYSE National, Inc. (‘‘NYSE rule.
As noted above, the Commission
National’’) was recently approved by the In addition, the proposal to renumber
recently approved a substantially
Commission.4 current NYSE American Rules
identical proposed rule change by NYSE
NYSE American Rule 5.1E(a)(2)(A) 5.1E(a)(2)(B)–(F) does not impact
National.8 In particular, the Commission
sets forth the requirement for the competition in any respect since it
noted in the approval order that it
Exchange to file with the Commission a merely maintains a clear and organized
‘‘believes that the filing of a Form 19b–
Form 19b–4(e) with respect to each rule structure.
4(e) is not required when an Exchange
‘‘new derivative securities product’’ that is trading a new derivative securities C. Self-Regulatory Organization’s
is traded pursuant to unlisted trading product on a UTP basis only’’ 9 and also Statement on Comments on the
privileges. However, the Exchange found that the NYSE National’s Proposed Rule Change Received From
believes that it should not be necessary proposed rule change is ‘‘consistent Members, Participants, or Others
to file a Form 19b–4(e) with the with the requirements of Section 6(b)(5)
Commission if it begins trading a ‘‘new No written comments were solicited
of the Act.’’ 10 The Nasdaq Stock Market or received with respect to the proposed
derivative securities product’’ pursuant LLC (‘‘Nasdaq’’), Nasdaq PHLX LLC
to unlisted trading privileges, because rule change.
(‘‘PHLX’’), Nasdaq BX, Inc. (‘‘BX’’) and
Rule 19b–4(e)(1) under the Act refers to Investors Exchange LLC (‘‘IEX’’) also III. Date of Effectiveness of the
the ‘‘listing and trading’’ of a ‘‘new recently amended their rules to remove Proposed Rule Change and Timing for
derivative securities product.’’ The the requirement to file with the Commission Action
Exchange believes that the requirements Commission a Form 19b–4(e) for each
of that rule refer to when an exchange Because the proposed rule change
‘‘new derivative securities product’’ does not: (i) Significantly affect the
lists and trades a ‘‘new derivative traded on each of those exchanges
securities product’’, and not when an protection of investors or the public
pursuant to unlisted trading interest; (ii) impose any significant
exchange seeks only to trade such
privileges.11 burden on competition; or (iii) become
product pursuant to unlisted trading With respect to the renumbering of
privileges pursuant to Rule 12f–2 under operative prior to 30 days from the date
current NYSE American Rules on which it was filed, or such shorter
the Act.5 Therefore, the Exchange 5.1E(a)(2)(B)–(F), the Exchange believes
proposes to delete the requirement in time as the Commission may designate,
that these changes are consistent with it has become effective pursuant to
current NYSE American Rule the Act because they will allow the
5.1E(a)(2)(A) for the Exchange to file a Section 19(b)(3)(A) of the Act 12 and
Exchange to maintain a clear and Rule 19b–4(f)(6) thereunder.13
Form 19b–4(e) with the Commission
organized rule structure, thus The Exchange has asked the
with respect to each ‘‘new derivative
preventing investor confusion. Commission to waive the 30-day
securities product’’ it begins trading For these reasons, the Exchange
pursuant to unlisted trading privileges. operative delay so that the proposal may
believes the proposed rule change is become operative immediately upon
In addition, as a result of the deletion consistent with the requirements of
of current NYSE American Rule filing. The Commission notes that the
Section 6(b)(5) of the Act. Exchange’s proposal does not present
5.1E(a)(2)(A), the Exchange proposes to
renumber current NYSE American Rules any new or novel issues. Thus, the
7 15 U.S.C. 78f(b)(5).
5.1E(a)(2)(B)–(F). 8 See
Commission believes that waiver of the
Securities Exchange Act Release No. 83289
(May 17, 2018), 83 FR 23968 (May 23, 2018) (Order 30-day operative delay is consistent
2. Statutory Basis Approving File No. (SR–NYSENat–2018–02). with the protection of investors and the
The Exchange believes that the 9 See supra note 10 [sic] at page 23975 at footnote

proposed rule change is consistent with 149. 12 15 U.S.C. 78s(b)(3)(A).
amozie on DSK3GDR082PROD with NOTICES1

10 See supra note 10 [sic] at page 23975–6. 13 17
the provisions of Section 6(b) 6 of the CFR 240.19b–4(f)(6). In addition, Rule 19b–
11 See Securities Exchange Act Release Nos. 4(f)(6)(iii) requires a self-regulatory organization to
Act in general, and furthers the 84488 (October 25, 2018), 83 FR 54801 (October 31, give the Commission written notice of its intent to
2018) (SR–NASDAQ–2018–082); 84542 (November file the proposed rule change, along with a brief
4 See Securities Exchange Act Release No. 83289
6, 2018), 83 FR 56385 (November 13, 2018) (SR– description and text of the proposed rule change,
(May 17, 2018), 83 FR 23968 (May 23, 2018) (Order Phlx–2018–67); 84546 (November 7, 2018), 83 FR at least five business days prior to the date of filing
Approving File No. SR–NYSENat–2018–02). 56888 (November 14, 2018) (SR–BX–2018–051); of the proposed rule change, or such shorter time
5 17 CFR 240.12f–2.
and 83609 (July 9, 2018), 83 FR 32704 (July 13, as designated by the Commission. The Exchange
6 15 U.S.C. 78f(b). 2018) (SR–IEX–2018–14). has satisfied this requirement.

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63926 Federal Register / Vol. 83, No. 238 / Wednesday, December 12, 2018 / Notices

public interest and hereby waives the filing also will be available for II. Self-Regulatory Organization’s
30-day operative delay and designates inspection and copying at the principal Statement of the Purpose of, and
the proposed rule change to be operative office of the Exchange. All comments Statutory Basis for, the Proposed Rule
upon filing.14 received will be posted without change. Change
At any time within 60 days of the Persons submitting comments are In its filing with the Commission, the
filing of the proposed rule change, the cautioned that we do not redact or edit Exchange included statements
Commission summarily may personal identifying information from concerning the purpose of and basis for
temporarily suspend such rule change if comment submissions. You should the proposed rule change and discussed
it appears to the Commission that such submit only information that you wish
action is necessary or appropriate in the any comments it received on the
to make available publicly. All proposed rule change. The text of these
public interest, for the protection of submissions should refer to File
investors, or otherwise in furtherance of statements may be examined at the
Number SR–NYSEAMER–2018–53 and places specified in Item IV below. The
the purposes of the Act. should be submitted on or before Exchange has prepared summaries, set
IV. Solicitation of Comments January 2, 2019. forth in sections A, B, and C below, of
Interested persons are invited to For the Commission, by the Division of the most significant aspects of such
submit written data, views, and Trading and Markets, pursuant to delegated statements.
authority.15
arguments concerning the foregoing, A. Self-Regulatory Organization’s
including whether the proposed rule Eduardo A. Aleman,
Assistant Secretary.
Statement of the Purpose of, and
change is consistent with the Act. Statutory Basis for, the Proposed Rule
Comments may be submitted by any of [FR Doc. 2018–26837 Filed 12–11–18; 8:45 am]
Change
the following methods: BILLING CODE 8011–01–P
1. Purpose
Electronic Comments
MRX proposes several amendments in
• Use the Commission’s internet SECURITIES AND EXCHANGE
this rule change. First, the Exchange
comment form (http://www.sec.gov/ COMMISSION
proposes to amend MRX Rule 701,
rules/sro.shtml); or
entitled ‘‘Opening’’ and MRX Rule 803,
• Send an email to rule-comments@ [Release No. 34–84728; File No. SR–MRX–
sec.gov. Please include File Number SR– 2018–36] entitled ‘‘Obligations of Market Makers’’
NYSEAMER–2018–53 on the subject to correct inconsistencies between the
Self-Regulatory Organizations; Nasdaq Exchange’s rule text and the operation
line.
MRX, LLC; Notice of Filing and of the System. Second, the Exchange
Paper Comments Immediate Effectiveness of Proposed proposes to add definitions to MRX
• Send paper comments in triplicate Rule Change Relating to Bid/Ask Rule 100 to define ‘‘in-the-money’’ and
to Secretary, Securities and Exchange Differentials ‘‘out-of-the-money’’ options series.
Commission, 100 F Street NE, Third, the Exchange proposes to correct
December 6, 2018.
Washington, DC 20549–1090. various cross references to Rule 100.
Pursuant to Section 19(b)(1) of the Each amendment will be described in
All submissions should refer to File Securities Exchange Act of 1934
Number SR–NYSEAMER–2018–53. This more detail below.
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
file number should be included on the notice is hereby given that on November Rules 701 and 803
subject line if email is used. To help the 28, 2018, Nasdaq MRX, LLC (‘‘MRX’’ or
Commission process and review your Today, for the Opening Process, MRX
‘‘Exchange’’) filed with the Securities Rule 701(a)(8) defines a ‘‘Valid Width
comments more efficiently, please use and Exchange Commission
only one method. The Commission will Quote’’ as a two-sided electronic
(‘‘Commission’’) the proposed rule quotation submitted by a Market Maker
post all comments on the Commission’s change as described in Items I and II
internet website (http://www.sec.gov/ that consists of a bid/ask differential
below, which Items have been prepared that is compliant with Rule 803(b)(4).3
rules/sro.shtml). Copies of the by the Exchange. The Commission is
submission, all subsequent Specifically, for the Opening Process,
publishing this notice to solicit MRX Rule 803(b)(4) states that, for in-
amendments, all written statements comments on the proposed rule change
with respect to the proposed rule from interested persons. 3 MRX Rule 803(b)(4) provides:
change that are filed with the ‘‘To price options contracts fairly by, among other
Commission, and all written I. Self-Regulatory Organization’s things, bidding and offering so as to create
communications relating to the Statement of the Terms of Substance of differences of no more than $5 between the bid and
proposed rule change between the the Proposed Rule Change offer following the opening rotation in an equity or
index options contract. Prior to the opening
Commission and any person, other than The Exchange proposes to amend rotation, spread differentials shall be no more than
those that may be withheld from the MRX Rule 701, entitled ‘‘Opening,’’ $.25 between the bid and offer for each options
public in accordance with the MRX Rule 803, entitled ‘‘Obligations of contract for which the bid is less than $2, no more
provisions of 5 U.S.C. 552, will be than $.40 where the bid is at least $2 but does not
Market Makers’’ and MRX Rule 100, exceed $5, no more than $.50 where the bid is more
available for website viewing and entitled ‘‘Definitions.’’ than $5 but does not exceed $10, no more than $.80
printing in the Commission’s Public The text of the proposed rule change where the bid is more than $10 but does not exceed
Reference Room, 100 F Street NE, is available on the Exchange’s website at $20, and no more than $1 where the bid is $20 or
Washington, DC 20549 on official greater, provided that the Exchange may establish
http://nasdaqmrx.cchwallstreet.com/, at
amozie on DSK3GDR082PROD with NOTICES1

differences other than the above for one or more
business days between the hours of the principal office of the Exchange, and options series.
10:00 a.m. and 3:00 p.m. Copies of the at the Commission’s Public Reference (i) The bid/offer differentials stated in
Room. subparagraph (b)(4) of this Rule shall not apply to
14 For purposes only of waiving the 30-day in-the-money options series where the underlying
operative delay, the Commission has also securities market is wider than the differentials set
15 17 CFR 200.30–3(a)(12).
considered the proposed rule’s impact on forth above. For these series, the bid/ask differential
1 15 U.S.C. 78s(b)(1).
efficiency, competition, and capital formation. See may be as wide as the spread between the national
15 U.S.C. 78c(f). 2 17 CFR 240.19b–4. best bid and offer in the underlying security.’’

VerDate Sep<11>2014 18:39 Dec 11, 2018 Jkt 247001 PO 00000 Frm 00102 Fmt 4703 Sfmt 4703 E:\FR\FM\12DEN1.SGM 12DEN1
Document Created: 2018-12-12 01:39:45
Document Modified: 2018-12-12 01:39:45
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 63924