83_FR_64179 83 FR 63941 - Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend CHX Article 22, Rule 6(a)

83 FR 63941 - Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend CHX Article 22, Rule 6(a)

SECURITIES AND EXCHANGE COMMISSION

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

Page Range63941-63943
FR Document2018-26830

Federal Register, Volume 83 Issue 238 (Wednesday, December 12, 2018)
[Federal Register Volume 83, Number 238 (Wednesday, December 12, 2018)]
[Notices]
[Pages 63941-63943]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-26830]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84733; File No. SR-CHX-2018-06]


Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend CHX Article 22, Rule 6(a)

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, the Chicago Stock Exchange, Inc. (``CHX'' 
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 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 CHX Article 22, Rule 6(a) 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.

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 CHX Article 22, 
Rule 6(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 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).
---------------------------------------------------------------------------

    CHX Article 22, Rule 6(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 Article 22, Rule 6(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.
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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

[[Page 63942]]

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.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \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 8 at page 23975 at footnote 149.
    \10\ See supra note 8 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).
---------------------------------------------------------------------------

    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.

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.
---------------------------------------------------------------------------

    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 CHX'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 public interest and hereby waives the 30-day operative delay 
and designates the proposed rule change to be operative upon 
filing.\14\
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

    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-CHX-2018-06 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-CHX-2018-06. 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-CHX-2018-06 and should be submitted on 
or before January 2, 2019.


[[Page 63943]]


    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. 2018-26830 Filed 12-11-18; 8:45 am]
BILLING CODE 8011-01-P



                                                                       Federal Register / Vol. 83, No. 238 / Wednesday, December 12, 2018 / Notices                                                  63941

                                              IV. Solicitation of Comments                              For the Commission, by the Division of               on the proposed rule change. The text
                                                                                                      Trading and Markets, pursuant to delegated             of those statements may be examined at
                                                Interested persons are invited to                     authority.8                                            the places specified in Item IV below.
                                              submit written data, views, and                         Eduardo A. Aleman,                                     The Exchange has prepared summaries,
                                              arguments concerning the foregoing,                     Assistant Secretary.                                   set forth in sections A, B, and C below,
                                              including whether the proposed rule                     [FR Doc. 2018–26914 Filed 12–11–18; 8:45 am]           of the most significant parts of such
                                              change is consistent with the Act.                      BILLING CODE 8011–01–P                                 statements.
                                              Comments may be submitted by any of
                                              the following methods:                                                                                         A. Self-Regulatory Organization’s
                                                                                                      SECURITIES AND EXCHANGE                                Statement of the Purpose of, and the
                                              Electronic Comments                                     COMMISSION                                             Statutory Basis for, the Proposed Rule
                                                                                                                                                             Change
                                                • Use the Commission’s internet                       [Release No. 34–84733; File No. SR–CHX–
                                              comment form (http://www.sec.gov/                       2018–06]                                               1. Purpose
                                              rules/sro.shtml); or
                                                                                                      Self-Regulatory Organizations;                            The purpose of the proposed rule
                                                • Send an email to rule-comments@                     Chicago Stock Exchange, Inc.; Notice                   change is to amend CHX Article 22,
                                              sec.gov. Please include File Number SR–                 of Filing and Immediate Effectiveness                  Rule 6(a) to remove the requirement that
                                              NASDAQ–2018–100 on the subject line.                    of Proposed Rule Change To Amend                       the Exchange file with the Commission
                                              Paper Comments                                          CHX Article 22, Rule 6(a)                              a Form 19b–4(e) for each ‘‘new
                                                                                                                                                             derivative securities product’’ that will
                                                • Send paper comments in triplicate                   December 6, 2018.                                      commence trading on the Exchange
                                              to Secretary, Securities and Exchange                      Pursuant to Section 19(b)(1) 1 of the               pursuant to unlisted trading privileges.
                                              Commission, 100 F Street NE,                            Securities Exchange Act of 1934                        The Exchange notes that a substantially
                                              Washington, DC 20549–1090.                              (‘‘Act’’) 2 and Rule 19b–4 thereunder,3                identical proposed rule change by NYSE
                                                                                                      notice is hereby given that, on                        National, Inc. (‘‘NYSE National’’) was
                                              All submissions should refer to File                    November 27, 2018, the Chicago Stock                   recently approved by the Commission.4
                                              Number SR–NASDAQ–2018–100. This                         Exchange, Inc. (‘‘CHX’’ or ‘‘Exchange’’)
                                              file number should be included on the                   filed with the Securities and Exchange                    CHX Article 22, Rule 6(a) sets forth
                                              subject line if email is used. To help the              Commission (‘‘Commission’’) the                        the requirement for the Exchange to file
                                              Commission process and review your                      proposed rule change as described in                   with the Commission a Form 19b–4(e)
                                                                                                      Items I and II below, which Items have                 with respect to each ‘‘new derivative
                                              comments more efficiently, please use
                                                                                                      been prepared by the self-regulatory                   securities product’’ that is traded
                                              only one method. The Commission will
                                                                                                      organization. The Commission is                        pursuant to unlisted trading privileges.
                                              post all comments on the Commission’s                                                                          However, the Exchange believes that it
                                              internet website (http://www.sec.gov/                   publishing this notice to solicit
                                                                                                      comments on the proposed rule change                   should not be necessary to file a Form
                                              rules/sro.shtml). Copies of the                                                                                19b–4(e) with the Commission if it
                                              submission, all subsequent                              from interested persons.
                                                                                                                                                             begins trading a ‘‘new derivative
                                              amendments, all written statements                      I. Self-Regulatory Organization’s                      securities product’’ pursuant to unlisted
                                              with respect to the proposed rule                       Statement of the Terms of Substance of                 trading privileges, because Rule 19b–
                                              change that are filed with the                          the Proposed Rule Change                               4(e)(1) under the Act refers to the
                                              Commission, and all written                                The Exchange proposes to amend                      ‘‘listing and trading’’ of a ‘‘new
                                              communications relating to the                          CHX Article 22, Rule 6(a) to remove the                derivative securities product.’’ The
                                              proposed rule change between the                        requirement that the Exchange file with                Exchange believes that the requirements
                                              Commission and any person, other than                   the Securities and Exchange                            of that rule refer to when an exchange
                                              those that may be withheld from the                     Commission (the ‘‘Commission’’) a                      lists and trades a ‘‘new derivative
                                              public in accordance with the                           Form 19b–4(e) for each ‘‘new derivative                securities product’’, and not when an
                                              provisions of 5 U.S.C. 552, will be                     securities product’’ that will commence                exchange seeks only to trade such
                                              available for website viewing and                       trading on the Exchange pursuant to                    product pursuant to unlisted trading
                                              printing in the Commission’s Public                     unlisted trading privileges. The                       privileges pursuant to Rule 12f–2 under
                                              Reference Room, 100 F Street NE,                        proposed rule change is available on the               the Act.5 Therefore, the Exchange
                                              Washington, DC 20549, on official                       Exchange’s website at www.nyse.com, at                 proposes to delete the requirement in
                                              business days between the hours of                      the principal office of the Exchange, and              Article 22, Rule 6(a) for the Exchange to
                                              10:00 a.m. and 3:00 p.m. Copies of the                  at the Commission’s Public Reference                   file a Form 19b–4(e) with the
                                              filing also will be available for                       Room.                                                  Commission with respect to each ‘‘new
                                              inspection and copying at the principal                                                                        derivative securities product’’ it begins
                                                                                                      II. Self-Regulatory Organization’s                     trading pursuant to unlisted trading
                                              office of the Exchange. All comments                    Statement of the Purpose of, and                       privileges.
                                              received will be posted without change.                 Statutory Basis for, the Proposed Rule
                                              Persons submitting comments are                         Change                                                 2. Statutory Basis
                                              cautioned that we do not redact or edit
                                                                                                        In its filing with the Commission, the                 The Exchange believes that the
                                              personal identifying information from
                                                                                                      self-regulatory organization included                  proposed rule change is consistent with
                                              comment submissions. You should
                                                                                                      statements concerning the purpose of,
amozie on DSK3GDR082PROD with NOTICES1




                                              submit only information that you wish                                                                          the provisions of Section 6(b) 6 of the
                                                                                                      and basis for, the proposed rule change                Act in general, and furthers the
                                              to make available publicly. All                         and discussed any comments it received
                                              submissions should refer to File                                                                                 4 See Securities Exchange Act Release No. 83289
                                              Number SR–NASDAQ–2018–100 and                             8 17 CFR 200.30–3(a)(12).                            (May 17, 2018), 83 FR 23968 (May 23, 2018) (Order
                                              should be submitted on or before                          1 15 U.S.C.78s(b)(1).                                Approving File No. SR–NYSENat–2018–02).
                                              January 2, 2019.                                          2 15 U.S.C. 78a.                                       5 17 CFR 240.12f-2.
                                                                                                        3 17 CFR 240.19b–4.                                    6 15 U.S.C. 78f(b).




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                                              63942                    Federal Register / Vol. 83, No. 238 / Wednesday, December 12, 2018 / Notices

                                              objectives of Section 6(b)(5) of the Act 7              file a Form 19b–4(e) will serve to                        investors, or otherwise in furtherance of
                                              in particular, in that it is designed to                enhance competition by providing for                      the purposes of the Act.
                                              prevent fraudulent and manipulative                     the efficient addition of new derivative
                                              acts and practices, to promote just and                 securities products for trading pursuant                  IV. Solicitation of Comments
                                              equitable principles of trade, to remove                to unlisted trading privileges on the                       Interested persons are invited to
                                              impediments to and perfect the                          Exchange. To the extent that a                            submit written data, views, and
                                              mechanism of a free and open market                     competitor marketplace believes that the                  arguments concerning the foregoing,
                                              and a national market system, and, in                   proposed rule change places it at a                       including whether the proposed rule
                                              general, to protect investors and the                   competitive disadvantage, it may file                     change is consistent with the Act.
                                              public interest. Specifically, eliminating              with the Commission a proposed rule                       Comments may be submitted by any of
                                              the requirement to file a Form 19b–4(e)                 change to adopt the same or similar
                                                                                                                                                                the following methods:
                                              for each ‘‘new derivative securities                    rule.
                                              product’’ the Exchange begins trading                                                                             Electronic Comments
                                                                                                      C. Self-Regulatory Organization’s
                                              on an unlisted trading privileges basis
                                                                                                      Statement on Comments on the                                • Use the Commission’s internet
                                              removes an unnecessary regulatory
                                                                                                      Proposed Rule Change Received From                        comment form (http://www.sec.gov/
                                              requirement thereby providing for a
                                                                                                      Members, Participants, or Others                          rules/sro.shtml); or
                                              more efficient process for adding a ‘‘new
                                              derivative securities product’’ to trading                No written comments were solicited                        • Send an email to rule-comments@
                                              on the Exchange on an unlisted trading                  or received with respect to the proposed                  sec.gov. Please include File Number SR–
                                              privileges basis.                                       rule change.                                              CHX–2018–06 on the subject line.
                                                 As noted above, the Commission                       III. Date of Effectiveness of the
                                              recently approved a substantially                                                                                 Paper Comments
                                                                                                      Proposed Rule Change and Timing for
                                              identical proposed rule change by NYSE
                                              National.8 In particular, the Commission
                                                                                                      Commission Action                                           • Send paper comments in triplicate
                                              noted in the approval order that it                        Because the proposed rule change                       to Secretary, Securities and Exchange
                                              ‘‘believes that the filing of a Form 19b–               does not: (i) Significantly affect the                    Commission, 100 F Street NE,
                                              4(e) is not required when an Exchange                   protection of investors or the public                     Washington, DC 20549–1090.
                                              is trading a new derivative securities                  interest; (ii) impose any significant
                                                                                                                                                                All submissions should refer to File
                                              product on a UTP basis only’’ 9 and also                burden on competition; or (iii) become
                                                                                                                                                                Number SR–CHX–2018–06. This file
                                              found that the NYSE National’s                          operative prior to 30 days from the date
                                                                                                                                                                number should be included on the
                                              proposed rule change is ‘‘consistent                    on which it was filed, or such shorter
                                                                                                      time as the Commission may designate,                     subject line if email is used. To help the
                                              with the requirements of Section 6(b)(5)                                                                          Commission process and review your
                                              of the Act.’’ 10 The Nasdaq Stock Market                it has become effective pursuant to
                                                                                                      Section 19(b)(3)(A) of the Act 12 and                     comments more efficiently, please use
                                              LLC (‘‘Nasdaq’’), Nasdaq PHLX LLC                                                                                 only one method. The Commission will
                                              (‘‘PHLX’’), Nasdaq BX, Inc. (‘‘BX’’) and                Rule 19b–4(f)(6) thereunder.13
                                                                                                         The Exchange has asked the                             post all comments on the Commission’s
                                              Investors Exchange LLC (‘‘IEX’’) also                                                                             internet website (http://www.sec.gov/
                                                                                                      Commission to waive the 30-day
                                              recently amended their rules to remove                                                                            rules/sro.shtml). Copies of the
                                                                                                      operative delay so that the proposal may
                                              the requirement to file with the                                                                                  submission, all subsequent
                                                                                                      become operative immediately upon
                                              Commission a Form 19b–4(e) for each                                                                               amendments, all written statements
                                                                                                      filing. The Commission notes that
                                              ‘‘new derivative securities product’’                                                                             with respect to the proposed rule
                                                                                                      CHX’s proposal does not present any
                                              traded on each of those exchanges                                                                                 change that are filed with the
                                                                                                      new or novel issues. Thus, the
                                              pursuant to unlisted trading                            Commission believes that waiver of the                    Commission, and all written
                                              privileges.11                                           30-day operative delay is consistent                      communications relating to the
                                                 For these reasons, the Exchange                                                                                proposed rule change between the
                                                                                                      with the protection of investors and the
                                              believes the proposed rule change is                                                                              Commission and any person, other than
                                                                                                      public interest and hereby waives the
                                              consistent with the requirements of                                                                               those that may be withheld from the
                                                                                                      30-day operative delay and designates
                                              Section 6(b)(5) of the Act.                                                                                       public in accordance with the
                                                                                                      the proposed rule change to be operative
                                              B. Self-Regulatory Organization’s                       upon filing.14                                            provisions of 5 U.S.C. 552, will be
                                              Statement on Burden on Competition                         At any time within 60 days of the                      available for website viewing and
                                                                                                      filing of the proposed rule change, the                   printing in the Commission’s Public
                                                The Exchange does not believe that
                                                                                                      Commission summarily may                                  Reference Room, 100 F Street, NE,
                                              the proposed rule change would impose
                                                                                                      temporarily suspend such rule change if                   Washington, DC 20549 on official
                                              any burden on competition that is not
                                                                                                      it appears to the Commission that such                    business days between the hours of
                                              necessary or appropriate in furtherance
                                                                                                      action is necessary or appropriate in the                 10:00 a.m. and 3:00 p.m. Copies of the
                                              of the purposes of the Act. To the
                                                                                                      public interest, for the protection of                    filing also will be available for
                                              contrary, removing the requirement to
                                                                                                                                                                inspection and copying at the principal
                                                7 15  U.S.C. 78f(b)(5).
                                                                                                        12 15  U.S.C. 78s(b)(3)(A).                             office of the Exchange. All comments
                                                                                                        13 17  CFR 240.19b–4(f)(6). In addition, Rule 19b–
                                                8 See  Securities Exchange Act Release No. 83289                                                                received will be posted without change.
                                                                                                      4(f)(6)(iii) requires a self-regulatory organization to
                                              (May 17, 2018), 83 FR 23968 (May 23, 2018) (Order       give the Commission written notice of its intent to
                                                                                                                                                                Persons submitting comments are
                                              Approving File No. SR–NYSENat–2018–02).                 file the proposed rule change, along with a brief         cautioned that we do not redact or edit
                                                 9 See supra note 8 at page 23975 at footnote 149.
                                                                                                      description and text of the proposed rule change,         personal identifying information from
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                                                 10 See supra note 8 at page 23975–6.
                                                                                                      at least five business days prior to the date of filing   comment submissions. You should
                                                 11 See Securities Exchange Act Release Nos.          of the proposed rule change, or such shorter time
                                              84488 (October 25, 2018), 83 FR 54801 (October 31,      as designated by the Commission. The Exchange             submit only information that you wish
                                              2018) (SR–NASDAQ–2018–082); 84542 (November             has satisfied this requirement.                           to make available publicly. All
                                              6, 2018), 83 FR 56385 (November 13, 2018) (SR–             14 For purposes only of waiving the 30-day             submissions should refer to File
                                              Phlx–2018–67); 84546 (November 7, 2018), 83 FR          operative delay, the Commission has also                  Number SR–CHX–2018–06 and should
                                              56888 (November 14, 2018) (SR–BX–2018–051);             considered the proposed rule’s impact on
                                              and 83609 (July 9, 2018), 83 FR 32704 (July 13,         efficiency, competition, and capital formation. See
                                                                                                                                                                be submitted on or before January 2,
                                              2018) (SR–IEX–2018–14).                                 15 U.S.C. 78c(f).                                         2019.


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                                                                       Federal Register / Vol. 83, No. 238 / Wednesday, December 12, 2018 / Notices                                                     63943

                                                For the Commission, by the Division of                reasons for so finding, or as to which the             I. Self-Regulatory Organization’s
                                              Trading and Markets, pursuant to delegated              self-regulatory organization consents,                 Statement of the Terms of Substance of
                                              authority.15                                            the Commission shall either approve the                the Proposed Rule Change
                                                                                                      proposed rule change, disapprove the                      The Exchange proposes to amend
                                              Eduardo A. Aleman,                                      proposed rule change, or institute
                                              Assistant Secretary.                                                                                           GEMX Rule 701, entitled ‘‘Opening,’’
                                                                                                      proceedings to determine whether the                   GEMX Rule 803, entitled ‘‘Obligations
                                              [FR Doc. 2018–26830 Filed 12–11–18; 8:45 am]            proposed rule change should be                         of Market Makers’’ and GEMX Rule 100,
                                              BILLING CODE 8011–01–P                                  disapproved. The 45th day after                        entitled ‘‘Definitions.’’
                                                                                                      publication of the notice for this                        The text of the proposed rule change
                                                                                                      proposed rule change is December 9,                    is available on the Exchange’s website at
                                              SECURITIES AND EXCHANGE                                 2018. The Commission is extending this
                                              COMMISSION                                                                                                     http://nasdaqgemx.cchwallstreet.com/,
                                                                                                      45-day time period.                                    at the principal office of the Exchange,
                                              [Release No. 34–84750; File No. SR-                        The Commission finds that it is                     and at the Commission’s Public
                                              CboeBZX–2018–078]                                       appropriate to designate a longer period               Reference Room.
                                                                                                      within which to take action on the
                                              Self-Regulatory Organizations; Cboe                     proposal so that it has sufficient time to             II. Self-Regulatory Organization’s
                                              BZX Exchange, Inc.; Notice of                           consider the proposed rule change in                   Statement of the Purpose of, and
                                              Designation of a Longer Period for                                                                             Statutory Basis for, the Proposed Rule
                                                                                                      light of the recently filed Amendment
                                              Commission Action on a Proposed                                                                                Change
                                                                                                      No. 1. Accordingly, the Commission,
                                              Rule Change To List and Trade Shares
                                                                                                      pursuant to Section 19(b)(2) of the Act,5                In its filing with the Commission, the
                                              of the WisdomTree Long-Term
                                                                                                      designates January 23, 2019, as the date               Exchange included statements
                                              Treasury PutWrite Strategy Fund,
                                                                                                      by which the Commission shall either                   concerning the purpose of and basis for
                                              WisdomTree Corporate Bond PutWrite
                                                                                                      approve or disapprove, or institute                    the proposed rule change and discussed
                                              Strategy Fund, WisdomTree
                                                                                                      proceedings to determine whether to                    any comments it received on the
                                              International PutWrite Strategy Fund,
                                                                                                      disapprove, the proposed rule change                   proposed rule change. The text of these
                                              and WisdomTree Emerging Markets
                                                                                                      (File No. SR-CboeBZX–2018–078), as                     statements may be examined at the
                                              PutWrite Strategy Fund Under Rule
                                              14.11(i), Managed Fund Shares                           modified by Amendment No. 1.                           places specified in Item IV below. The
                                                                                                        For the Commission, by the Division of               Exchange has prepared summaries, set
                                              December 7, 2018.                                       Trading and Markets, pursuant to delegated             forth in sections A, B, and C below, of
                                                 On October 9, 2018, Cboe BZX                         authority.6                                            the most significant aspects of such
                                              Exchange, Inc. (‘‘Exchange’’ or ‘‘BZX’’)                Eduardo A. Aleman,                                     statements.
                                              filed with the Securities and Exchange                  Assistant Secretary.
                                              Commission (‘‘Commission’’), pursuant                                                                          A. Self-Regulatory Organization’s
                                                                                                      [FR Doc. 2018–26912 Filed 12–11–18; 8:45 am]           Statement of the Purpose of, and
                                              to Section 19(b)(1) of the Securities
                                              Exchange Act of 1934 (‘‘Act’’) 1 and Rule
                                                                                                      BILLING CODE 8011–01–P                                 Statutory Basis for, the Proposed Rule
                                              19b–4 thereunder,2 a proposed rule                                                                             Change
                                              change to list and trade shares the                     SECURITIES AND EXCHANGE                                1. Purpose
                                              WisdomTree Long-Term Treasury                           COMMISSION                                               GEMX proposes several amendments
                                              PutWrite Strategy Fund, WisdomTree
                                                                                                                                                             in this rule change. First, the Exchange
                                              Corporate Bond PutWrite Strategy Fund,
                                                                                                      [Release No. 34–84730; File No. SR–GEMX–               proposes to amend GEMX Rule 701,
                                              WisdomTree International PutWrite
                                              Strategy Fund, and WisdomTree
                                                                                                      2018–39]                                               entitled ‘‘Opening’’ and GEMX Rule
                                              Emerging Markets PutWrite Strategy                                                                             803, entitled ‘‘Obligations of Market
                                                                                                      Self-Regulatory Organizations; Nasdaq                  Makers’’ to correct inconsistencies
                                              Fund, each a series of the WisdomTree                   GEMX, LLC; Notice of Filing and
                                              Trust, pursuant to BZX Rule 14.11(i),                                                                          between the Exchange’s rule text and
                                                                                                      Immediate Effectiveness of Proposed                    the operation of the System. Second, the
                                              which governs the listing and trading of                Rule Change Relating to Bid/Ask
                                              Managed Fund Shares on the Exchange.                                                                           Exchange proposes to add definitions to
                                                                                                      Differentials                                          GEMX Rule 100 to define ‘‘in-the-
                                              The proposed rule change was
                                              published for comment in the Federal                    December 6, 2018.                                      money’’ and ‘‘out-of-the-money’’ option
                                              Register on October 25, 2018.3 On                                                                              series. Third, the Exchange proposes to
                                                                                                         Pursuant to Section 19(b)(1) of the                 correct various cross references to Rule
                                              December 3, 2018, the Exchange filed                    Securities Exchange Act of 1934
                                              Amendment No. 1 to the proposed rule                                                                           100. Each amendment will be described
                                                                                                      (‘‘Act’’),1 and Rule 19b–4 thereunder,2                in more detail below.
                                              change. The Commission has received                     notice is hereby given that on November
                                              no comment letters on the proposed rule                 28, 2018, Nasdaq GEMX, LLC (‘‘GEMX’’                   Rules 701 and 803
                                              change.                                                 or ‘‘Exchange’’) filed with the Securities
                                                 Section 19(b)(2) of the Act 4 provides                                                                        Today, for the Opening Process,
                                                                                                      and Exchange Commission                                GEMX Rule 701(a)(8) defines a ‘‘Valid
                                              that, within 45 days of the publication
                                                                                                      (‘‘Commission’’) the proposed rule                     Width Quote’’ as a two-sided electronic
                                              of notice of the filing of a proposed rule
                                                                                                      change as described in Items I and II                  quotation submitted by a Market Maker
                                              change, or within such longer period up
                                                                                                      below, which Items have been prepared                  that consists of a bid/ask differential
                                              to 90 days as the Commission may
                                                                                                      by the Exchange. The Commission is                     that is compliant with Rule 803(b)(4).3
                                              designate if it finds such longer period
                                                                                                      publishing this notice to solicit
amozie on DSK3GDR082PROD with NOTICES1




                                              to be appropriate and publishes its
                                                                                                      comments on the proposed rule change                     3 GEMX   Rule 803(b)(4) provides:
                                                15 17 CFR 200.30–3(a)(12).
                                                                                                      from interested persons.                                 ‘‘To price options contracts fairly by, among other
                                                1 15 U.S.C.78s(b)(1).
                                                                                                                                                             things, bidding and offering so as to create
                                                                                                        5 Id.
                                                                                                                                                             differences of no more than $5 between the bid and
                                                2 17 CFR 240.19b–4.
                                                                                                                                                             offer following the opening rotation in an equity or
                                                3 See Securities Exchange Act Release No. 84456         6 17 CFR 200.30–3(a)(31).                            index options contract. Prior to the opening
                                              (October 19, 2018), 83 FR 53928.                          1 15 U.S.C. 78s(b)(1).                               rotation, spread differentials shall be no more than
                                                4 15 U.S.C. 78s(b)(2).                                  2 17 CFR 240.19b–4.                                                                             Continued




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Document Created: 2018-12-12 01:40:15
Document Modified: 2018-12-12 01:40:15
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 63941 

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