83 FR 7521 - Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend INET Port Fees at Section II, C To Indicate Those Fees Are Not Prorated

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 35 (February 21, 2018)

Page Range		7521-7522
FR Document		2018-03452
Federal Register, Volume 83 Issue 35 (Wednesday, February 21, 2018)
[Federal Register Volume 83, Number 35 (Wednesday, February 21, 2018)]
[Notices]
[Pages 7521-7522]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-03452]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82714; File No. SR-MRX-2018-05]


Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend INET Port 
Fees at Section II, C To Indicate Those Fees Are Not Prorated

February 14, 2018.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on February 9, 2018, Nasdaq MRX, LLC (``MRX'' or ``Exchange'') filed 
with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I and II below, which Items 
have been prepared by the Exchange. The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend INET Port Fees at Section II, C to 
indicate those fees are not prorated.
    The text of the proposed rule change is available on the Exchange's 
website at http://nasdaqmrx.cchwallstreet.com/, at the principal office 
of the Exchange, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The purpose of the proposed rule change is to include language 
within the Schedule of Fees at Section II, C, entitled ``INET Port 
Fees'' to clarify that the port fees in this section are not subject to 
proration. Today, the Exchange does not prorate the pricing for these 
ports.
Background
    The Exchange previously filed \3\ to: (1) Establish ports and 
gateways that members use to connect to the Exchange with the migration 
of the Exchange's trading system to the Nasdaq INET architecture, and 
(2) amend the Schedule of Fees to adopt fees for those ports and 
gateways. The Exchange established fees for the following connectivity 
options that are available in connection with the Exchange's trading 
system: Specialized Quote Feed (``SQF''),\4\ SQF Purge,\5\ Ouch to 
Trade Options (``OTTO''),\6\ Clearing Trade Interface (``CTI''),\7\ 
Financial Information eXchange (``FIX''),\8\ FIX Drop,\9\ and Disaster 
Recovery.\10\ The Exchange proposes to add a clarifying sentence to 
make clear that port fees are assessed in full month increments and are 
not prorated, to avoid any confusion.
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    \3\ See Securities and Exchange Act Release No. 81312 (August 3, 
2017), 82 FR 37253 (August 9, 2017) (SR-MRX-2017-13).
    \4\ SQF is an interface that allows market makers to connect and 
send quotes, sweeps and auction responses into the Exchange. Data 
includes the following: (1) Options Auction Notifications (e.g., 
opening imbalance, Flash, PIM, Solicitation and Facilitation or 
other information); (2) Options Symbol Directory Messages; (3) 
System Event Messages (e.g., start of messages, start of system 
hours, start of quoting, start of opening); (4) Option Trading 
Action Messages (e.g., halts, resumes); (5) Execution Messages (6) 
Quote Messages (quote/sweep messages, risk protection triggers or 
purge notifications).
    \5\ SQF Purge is a specific port for the SQF interface that only 
receives and notifies of purge requests from the market maker. 
Dedicated SQF Purge Ports enable market makers to seamlessly manage 
their ability to remove their quotes in a swift manner.
    \6\ OTTO is an interface that allows market participants to 
connect and send orders, auction orders and auction responses into 
the Exchange. Data includes the following: (1) Options Auction 
Notifications (e.g., Flash, PIM, Solicitation and Facilitation or 
other information); (2) Options Symbol Directory Messages; (3) 
System Event Messages (e.g., start of messages, start of system 
hours, start of quoting, start of opening); (5) Option Trading 
Action Messages (e.g., halts, resumes); (6) Execution Messages; (7) 
Order Messages (order messages, risk protection triggers or purge 
notifications).
    \7\ CTI is a real-time clearing trade update message that is 
sent to a member after an execution has occurred and contains trade 
details. The message containing the trade details is also 
simultaneously sent to The Options Clearing Corporation (``OCC''). 
The information includes, among other things, the following: (i) The 
Clearing Member Trade Agreement or ``CMTA'' or ``OCC'' number; (ii) 
Exchange badge or house number; (iii) the Exchange internal firm 
identifier; and (iv) an indicator which will distinguish electronic 
and non-electronically delivered orders; (v) liquidity indicators 
and transaction type for billing purposes; (vi) capacity.
    \8\ FIX is an interface that allows market participants to 
connect and send orders and auction orders into the Exchange. Data 
includes the following: (1) Options Symbol Directory Messages; (2) 
System Event Messages (e.g., start of messages, start of system 
hours, start of quoting, start of opening); (3) Option Trading 
Action Messages (e.g., halts, resumes); (4) Execution Messages; (5) 
Order Messages (order messages, risk protection triggers or purge 
notifications).
    \9\ FIX Drop is a real-time order and execution update message 
that is sent to a member after an order been received/modified or an 
execution has occurred and contains trade details. The information 
includes, among other things, the following: (1) Executions; (2) 
cancellations; (3) modifications to an existing order (4) busts or 
post-trade corrections.
    \10\ Disaster Recovery ports provide connectivity to the 
exchange's disaster recovery data center in Chicago to be utilized 
in the event the exchange has to fail over during the trading day. 
DR Ports are available for SQF, SQF Purge, Dedicated SQF, CTI, OTTO, 
FIX and FIX Drop.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\11\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\12\ in particular, in that it is designed to 
promote just and equitable principles of trade, to remove impediments 
to and perfect the mechanism of a free and open market and a national 
market system, and, in general to protect investors and the public 
interest, by clearly specifying in Section II, C that the Exchange's 
pricing regarding ports is not prorated. The Exchange believes that its 
decision to not prorate these ports is consistent with the Act because 
prorating billing results in complexity and increased costs associated 
with the billing process. The Exchange notes that this proposal does 
not amend the Exchange's current billing practice.
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    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. The Exchange will uniformly 
assess the fees in Section II, C to all MRX Members in a uniform 
manner.

[[Page 7522]]

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

    No written comments were either solicited or received.

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

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \13\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\14\
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    \13\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \14\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires the Exchange to give the Commission written notice of the 
Exchange's 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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    A proposed rule change filed under Rule 19b-4(f)(6) \15\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, Rule 19b-4(f)(6)(iii) \16\ permits the Commission to 
designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay so that the Exchange 
may clarify that the INET Port Fees in Chapter V, D will not be 
prorated to avoid any misunderstanding. The Exchange notes that adding 
language to clarify that the Exchange will not prorate the INET Port 
Fees in Section V, D does not significantly affect the protection of 
investors or the public interest because there is no substantive change 
to the manner in which the Exchange bills these services. The 
Commission believes that waiver of the 30-day operative delay is 
consistent with the protection of investors and the public interest. 
Accordingly, the Commission hereby waives the operative delay and 
designates the proposed rule change as operative upon filing.\17\
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    \15\ 17 CFR 240.19b-4(f)(6).
    \16\ 17 CFR 240.19b-4(f)(6)(iii).
    \17\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) otherwise in furtherance of the 
purposes of the Act. If the Commission takes such action, the 
Commission shall institute proceedings to determine whether the 
proposed rule should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-MRX-2018-05 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-MRX-2018-05. 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-MRX-2018-05 and should be submitted on 
or before March 14, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-03452 Filed 2-20-18; 8:45 am]
 BILLING CODE 8011-01-P
7522 Federal Register / Vol. 83, No. 35 / Wednesday, February 21, 2018 / Notices

C. Self-Regulatory Organization’s At any time within 60 days of the personal identifying information from
Statement on Comments on the filing of the proposed rule change, the comment submissions. You should
Proposed Rule Change Received From Commission summarily may submit only information that you wish
Members, Participants, or Others temporarily suspend such rule change if to make available publicly. All
it appears to the Commission that such submissions should refer to File
No written comments were either action is: (i) Necessary or appropriate in Number SR–MRX–2018–05 and should
solicited or received. the public interest; (ii) for the protection be submitted on or before March 14,
III. Date of Effectiveness of the of investors; or (iii) otherwise in 2018.
Proposed Rule Change and Timing for furtherance of the purposes of the Act. For the Commission, by the Division of
Commission Action If the Commission takes such action, the Trading and Markets, pursuant to delegated
Commission shall institute proceedings authority.18
Because the foregoing proposed rule to determine whether the proposed rule Eduardo A. Aleman,
change does not: (i) Significantly affect should be approved or disapproved. Assistant Secretary.
the protection of investors or the public
interest; (ii) impose any significant IV. Solicitation of Comments [FR Doc. 2018–03452 Filed 2–20–18; 8:45 am]
Interested persons are invited to BILLING CODE 8011–01–P
burden on competition; and (iii) become
operative for 30 days from the date on submit written data, views, and
which it was filed, or such shorter time arguments concerning the foregoing,
SECURITIES AND EXCHANGE
as the Commission may designate, it has including whether the proposed rule
change is consistent with the Act. COMMISSION
become effective pursuant to Section
19(b)(3)(A)(iii) of the Act 13 and Comments may be submitted by any of [Release No. 34–82708; File No. SR–GEMX–
subparagraph (f)(6) of Rule 19b–4 the following methods: 2018–04]
thereunder.14 Electronic Comments Self-Regulatory Organizations; Nasdaq
A proposed rule change filed under
• Use the Commission’s internet GEMX, LLC; Notice of Filing and
Rule 19b–4(f)(6) 15 normally does not Immediate Effectiveness of Proposed
comment form (http://www.sec.gov/
become operative prior to 30 days after Rule Change To Amend the
rules/sro.shtml); or
the date of the filing. However, Rule • Send an email to rule-comments@ Exchange’s Schedule of Fees
19b–4(f)(6)(iii) 16 permits the sec.gov. Please include File Number SR–
Commission to designate a shorter time MRX–2018–05 on the subject line. February 14, 2018.
if such action is consistent with the Pursuant to Section 19(b)(1) of the
protection of investors and the public Paper Comments Securities Exchange Act of 1934
interest. The Exchange has asked the • Send paper comments in triplicate (‘‘Act’’),1 and Rule 19b–4 thereunder,2
Commission to waive the 30-day to Secretary, Securities and Exchange notice is hereby given that on February
operative delay so that the Exchange Commission, 100 F Street NE, 1, 2018, Nasdaq GEMX, LLC (‘‘GEMX’’
may clarify that the INET Port Fees in Washington, DC 20549–1090. or ‘‘Exchange’’) filed with the Securities
Chapter V, D will not be prorated to All submissions should refer to File and Exchange Commission
avoid any misunderstanding. The Number SR–MRX–2018–05. This file (‘‘Commission’’) the proposed rule
Exchange notes that adding language to number should be included on the change as described in Items I, II, and
clarify that the Exchange will not subject line if email is used. To help the III, below, which Items have been
prorate the INET Port Fees in Section V, Commission process and review your prepared by the Exchange. The
D does not significantly affect the comments more efficiently, please use Commission is publishing this notice to
protection of investors or the public only one method. The Commission will solicit comments on the proposed rule
interest because there is no substantive post all comments on the Commission’s change from interested persons.
change to the manner in which the internet website (http://www.sec.gov/ I. Self-Regulatory Organization’s
Exchange bills these services. The rules/sro.shtml). Copies of the Statement of the Terms of Substance of
Commission believes that waiver of the submission, all subsequent the Proposed Rule Change
30-day operative delay is consistent amendments, all written statements
with the protection of investors and the The Exchange proposes to amend the
with respect to the proposed rule
public interest. Accordingly, the Exchange’s Schedule of Fees to
change that are filed with the
Commission hereby waives the eliminate obsolete text related to
Commission, and all written
operative delay and designates the Gateway Fees.
communications relating to the The text of the proposed rule change
proposed rule change as operative upon proposed rule change between the
filing.17 is available on the Exchange’s website at
Commission and any person, other than http://nasdaqgemx.cchwallstreet.com/,
those that may be withheld from the at the principal office of the Exchange,
13 15 U.S.C. 78s(b)(3)(A)(iii). public in accordance with the and at the Commission’s Public
14 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– provisions of 5 U.S.C. 552, will be Reference Room.
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent available for website viewing and
to file the proposed rule change, along with a brief printing in the Commission’s Public II. Self-Regulatory Organization’s
description and text of the proposed rule change, Reference Room, 100 F Street NE, Statement of the Purpose of, and
at least five business days prior to the date of filing Washington, DC 20549, on official Statutory Basis for, the Proposed Rule
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange business days between the hours of Change
daltland on DSKBBV9HB2PROD with NOTICES

has satisfied this requirement. 10:00 a.m. and 3:00 p.m. Copies of the In its filing with the Commission, the
15 17 CFR 240.19b–4(f)(6). filing also will be available for Exchange included statements
16 17 CFR 240.19b–4(f)(6)(iii).
inspection and copying at the principal concerning the purpose of and basis for
17 For purposes only of waiving the 30-day
office of the Exchange. All comments
operative delay, the Commission has also
considered the proposed rule’s impact on
received will be posted without change. 18 17 CFR 200.30–3(a)(12).
efficiency, competition, and capital formation. See Persons submitting comments are 1 15 U.S.C. 78s(b)(1).
15 U.S.C. 78c(f). cautioned that we do not redact or edit 2 17 CFR 240.19b–4.

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Document Created: 2018-02-21 01:48:28
Document Modified: 2018-02-21 01:48:28
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 7521