83 FR 7522 - Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Schedule of Fees
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 35 (February 21, 2018)
Federal Register Volume 83, Issue 35 (February 21, 2018)
| Page Range | 7522-7524 | |
| FR Document | 2018-03448 |
[Federal Register Volume 83, Number 35 (Wednesday, February 21, 2018)] [Notices] [Pages 7522-7524] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-03448] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82708; File No. SR-GEMX-2018-04] Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Schedule of Fees 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 1, 2018, Nasdaq GEMX, LLC (``GEMX'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I, II, and III, 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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend the Exchange's Schedule of Fees to eliminate obsolete text related to Gateway Fees. The text of the proposed rule change is available on the Exchange's website at http://nasdaqgemx.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 [[Page 7523]] 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 Exchange proposes to remove the current pricing related to gateways at IV, D of the Schedule of Fees and reserve ``D.'' The Exchange's gateway pricing at IV, D applied to connections to the legacy T7 system and are no longer relevant. In 2017, GEMX migrated its technology to INET. Prior to the technology migration, GEMX assessed a Shared Gateway fee for DTI Ports \3\ and a paired Dedicated Gateway offering. The Shared Gateway was assessed at $750 per gateway, per month for DTI ports. The paired Dedicated Gateway fee was assessed at $2,250 per gateway pair, per month. These gateways provided connectivity to both Nasdaq GEMX, LLC and Nasdaq ISE, LLC. The Exchange decommissioned the legacy gateways in July 2017. The gateway pricing is obsolete. As of the decommissioning of the legacy T7 connections, no GEMX Member has been billed for use of a gateway. Today, the Exchange does not assess a shared gateway fee for its order entry ports and does not offer a dedicated option to any Member. --------------------------------------------------------------------------- \3\ DTI was an order entry protocol offered on GEMX. DTI is no longer offered on INET. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\4\ in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\5\ in particular, in that it provides for the equitable allocation of reasonable dues, fees, and other charges among members and issuers and other persons using any facility, and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78f(b). \5\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Exchange believes that removing the current pricing related to gateways is reasonable because the pricing applied to connections to legacy T7 and the pricing is no longer applicable. As of the decommissioning of the legacy T7 connections, no GEMX Member has been billed for use of a gateway. Today, the Exchange does not assess a shared gateway fee for its order entry ports and does not offer a dedicated option. The Exchange believes that removing the current pricing related to gateways is equitable and not unfairly discriminatory because, today, the Exchange does not bill any Member for use of a shared gateway and GEMX does not offer a dedicated option to any Member. 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. In terms of inter-market competition, the Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive, or rebate opportunities available at other venues to be more favorable. In such an environment, the Exchange must continually adjust its fees to remain competitive with other exchanges and with alternative trading systems that have been exempted from compliance with the statutory standards applicable to exchanges. Because competitors are free to modify their own fees in response, and because market participants may readily adjust their order routing practices, the Exchange believes that the degree to which fee changes in this market may impose any burden on competition is extremely limited. In terms of intra-market competition the Exchange does not bill any Member for use of a shared gateway and GEMX does not offer a dedicated option to any Member. 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 The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.\6\ 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. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78s(b)(3)(A)(ii). --------------------------------------------------------------------------- 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 CommentsUse 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-GEMX-2018-04 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-GEMX-2018-04. 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-GEMX-2018-04 and [[Page 7524]] should be submitted on or before March 14, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\7\ --------------------------------------------------------------------------- \7\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-03448 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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![7524 Federal Register / Vol. 83, No. 35 / Wednesday, February 21, 2018 / Notices
should be submitted on or before March SECURITIES AND EXCHANGE Exchange has prepared summaries, set
14, 2018. COMMISSION forth in Sections A, B, and C below, of
For the Commission, by the Division of the most significant parts of such
[Release No. 34–82715; File No. SR–
Trading and Markets, pursuant to delegated CboeBZX–2018–011]
statements.
authority.7 (A) Self-Regulatory Organization’s
Eduardo A. Aleman, Self-Regulatory Organizations; Cboe Statement of the Purpose of, and
Assistant Secretary. BZX Exchange, Inc.; Notice of Filing Statutory Basis for, the Proposed Rule
[FR Doc. 2018–03448 Filed 2–20–18; 8:45 am] and Immediate Effectiveness of a Change
BILLING CODE 8011–01–P Proposed Rule Change To Temporarily
Amend Rule 11.23(d)(2)(E) Relating to 1. Purpose
the Halt Auction Collar for a Halt The Exchange proposes to temporarily
SECURITIES AND EXCHANGE Auction for REX VolMAXX Short amend Rule 11.23(d)(2)(E) relating to
COMMISSION Weekly Futures Strategy ETF the Halt Auction Collar for a Halt
Auction for REX VolMAXX Short
Sunshine Act Meetings February 14, 2018.
Weekly Futures Strategy ETF (VMIN),
Pursuant to Section 19(b)(1) of the
which would be operative for February
TIME AND DATE: 2:00 p.m. on Thursday, Securities Exchange Act of 1934 (the
6, 2018 only.
February 22, 2018. ‘‘Act’’),1 and Rule 19b–4 thereunder,2 On February 5, 2018, both the U.S.
PLACE: Closed Commission Hearing notice is hereby given that on February and global markets experienced
Room 10800. 7, 2018, Cboe BZX Exchange, Inc. (the increased selling pressure and the Dow
STATUS: This meeting will be closed to
‘‘Exchange’’ or ‘‘BZX’’) filed with the Jones Industrial Average (‘‘DJIA’’) closed
the public. Securities and Exchange Commission 4.6% down over the prior closing day.
(‘‘Commission’’) the proposed rule In addition, on February 5, 2018,
MATTERS TO BE CONSIDERED:
change as described in Items I and II volatility was significantly higher across
Commissioners, Counsel to the below, which Items have been prepared
Commissioners, the Secretary to the all measures of U.S. markets and
by the Exchange. The Exchange has continued to fluctuate significantly
Commission, and recording secretaries designated this proposal as a ‘‘non-
will attend the closed meeting. Certain through the morning of February 6,
controversial’’ proposed rule change 2018.
staff members who have an interest in pursuant to Section 19(b)(3)(A) of the
the matters also may be present. VMIN, which is listed on the
Act 3 and Rule 19b–4(f)(6)(iii) Exchange, seeks to provide investors
The General Counsel of the
thereunder,4 which renders it effective with inverse exposure to the implied
Commission, or his designee, has
upon filing with the Commission. The volatility of the broad-based, large-cap
certified that, in his opinion, one or
Commission is publishing this notice to U.S. equity market by obtaining
more of the exemptions set forth in 5
solicit comments on the proposed rule investment exposure to an actively
U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B)
change from interested persons. managed portfolio of exchange-traded
and (10) and 17 CFR 200.402(a)(3),
(a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and I. Self-Regulatory Organization’s Cboe Volatility Index (‘‘VIX’’) Futures
(a)(10), permit consideration of the Statement of the Terms of Substance of Contracts with weekly and monthly
scheduled matters at the closed meeting. the Proposed Rule Change expirations. On February 5, 2018, the
Commissioner Piwowar, as duty Official Closing Price for VMIN was
The Exchange filed a proposal to
officer, voted to consider the items $16.57. The price of VMIN declined in
temporarily amend Rule 11.23(d)(2)(E)
listed for the closed meeting in closed after-market trading on February 5,
relating to the Halt Auction Collar for a
session. 2018, and the last reported extended-
Halt Auction for REX VolMAXX Short
The subject matters of the closed hours trade price on that day was $7.50.
Weekly Futures Strategy ETF (VMIN),
meeting will be: The reported NAV for February 5, 2018
which would be operative for February
Institution and settlement of was $3.37. Because of the volatility in
6, 2018 only.
injunctive actions; The text of the proposed rule change the pricing for VMIN and based on
Institution and settlement of is available at the Exchange’s website at information from the issuer that there
administrative proceedings; www.markets.cboe.com, at the principal was a news event forthcoming, the
Adjudicatory matters; and office of the Exchange, and at the Exchange halted trading in VMIN
Other matters relating to enforcement Commission’s Public Reference Room. during the Pre-Opening Session. While
proceedings. the security was halted, an Intraday
At times, changes in Commission II. Self-Regulatory Organization’s Indicative Value (‘‘IIV’’) was published
priorities require alterations in the Statement of the Purpose of, and under the ticker VMIN.IV, and as of 3:00
scheduling of meeting items. Statutory Basis for, the Proposed Rule p.m. Eastern Time on February 6, 2018,
CONTACT PERSON FOR MORE INFORMATION: Change the IIV was $3.19. As such, the Halt
For further information and to ascertain In its filing with the Commission, the Auction Reference Price for a Halt
what, if any, matters have been added, Exchange included statements Auction would be the prior day’s
deleted or postponed; please contact concerning the purpose of and basis for Official Closing Price, $16.57, and the
Brent J. Fields from the Office of the the proposed rule change and discussed Halt Auction Collar would be $14.91
Secretary at (202) 551–5400. any comments it received on the and $18.23.
proposed rule change. The text of these However, because of market events
daltland on DSKBBV9HB2PROD with NOTICES
Dated: February 15, 2018. unique to the circumstances of February
Brent J. Fields,
statements may be examined at the
places specified in Item IV below. The 5, 2018 and February 6, 2018, and the
Secretary. impact on pricing of VMIN, the
[FR Doc. 2018–03582 Filed 2–16–18; 11:15 am] 1 15 U.S.C. 78s(b)(1). Exchange does not believe that VMIN’s
BILLING CODE 8011–01–P 2 17 CFR 240.19b–4. Official Closing Price would be an
3 15 U.S.C. 78s(b)(3)(A). appropriate Halt Auction Reference
7 17 CFR 200.30–3(a)(12). 4 17 CFR 240.19b–4(f)(6)(iii). Price and the basis for calculating the
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Document Created: 2018-02-21 01:48:40
Document Modified: 2018-02-21 01:48:40
| 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 7522 |
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