Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt a Shell Structure for the GEMX Rulebook, 57516-57518 [2017-26125]
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57516
Federal Register / Vol. 82, No. 232 / Tuesday, December 5, 2017 / Notices
limit orders, that is not available for
conventionally traded ETFs.
These developments could
significantly enhance competition to the
benefit of the markets and investors.
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
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the Exchange consents, the Commission
shall: (a) By order approve or
disapprove such proposed rule change,
or (b) institute proceedings to determine
whether the proposed rule change
should be disapproved.
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 Web site 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–NASDAQ–2017–124 and
should be submitted on or before
December 26, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.40
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–26121 Filed 12–4–17; 8:45 am]
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NASDAQ–2017–124 on the subject line.
sradovich on DSK3GMQ082PROD with NOTICES
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:
Self-Regulatory Organizations; Nasdaq
GEMX, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Adopt a Shell
Structure for the GEMX Rulebook
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NASDAQ–2017–124. 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 Web site (https://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
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18:13 Dec 04, 2017
Jkt 244001
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–82171; File No. SR–GEMX–
2017–54]
November 29, 2017.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on November
17, 2017, Nasdaq GEMX, LLC (‘‘GEMX’’
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.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange proposes to adopt a
shell structure for the GEMX rulebook
40 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00094
Fmt 4703
Sfmt 4703
(‘‘Rulebook’’) as part of its initiative to
structure its Rulebook.
The text of the proposed rule
change is available on the Exchange’s
Web site at https://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
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
On March 9, 2016, Nasdaq, Inc.
acquired the capital stock of U.S.
Exchange Holdings, thereby indirectly
acquiring all of the interests of the
International Securities Exchange, LLC
(now Nasdaq ISE, LLC), ISE Gemini,
LLC (now GEMX) and ISE Mercury, LLC
(now Nasdaq MRX, LLC)(‘‘MRX’’).3 The
acquisition resulted in a total of six selfregulatory organization licenses for
Nasdaq, Inc. which, in addition to the
three aforementioned exchanges, also
include The Nasdaq Stock Market LLC
(‘‘Nasdaq’’), Nasdaq PHLX LLC (‘‘Phlx’’)
and Nasdaq BX, Inc. (‘‘BX’’)
(collectively, ‘‘Nasdaq Entities’’).
The Exchange is planning to conform
the chapters of the various Nasdaq
Entity rulebooks for efficiency, and
conformity of certain Nasdaq Entity
processes. The Exchange believes that
aligning the rules of the Nasdaq Entities
will assist market participants in
navigating the various rulebooks.
Specifically, the Exchange proposes to
add a shell structure which would
reside alongside the current rulebook.
The proposed shell would outline the
various chapters of the future rulebook
3 See Securities Exchange Act Release No. 78119
(June 21, 2016), 81 FR 41611 (June 27, 2016) (SR–
ISE–2016–11; SR–ISE Gemini–2016–05; SR–ISE
Mercury–2016–10) (Order Granting Accelerated
Approval of Proposed Rule Changes, Each as
Modified by Amendment No. 1 Thereto, Relating to
a Corporate Transaction in Which Nasdaq, Inc. Will
Become the Indirect Parent of ISE, ISE Gemini, and
ISE Mercury).
E:\FR\FM\05DEN1.SGM
05DEN1
Federal Register / Vol. 82, No. 232 / Tuesday, December 5, 2017 / Notices
and contains new chapter numbering. A
similar shell would be filed to add the
same structure to each of the other
Nasdaq Entities. The proposed chapters
would be similar for each shell filed for
each of the Nasdaq Entities. In
subsequent rule changes, each of the
Nasdaq Entities would file rule changes
to move their current rules into the
various chapters of the proposed shells
for all six markets and delete the
migrated rule from the current location
in the Rulebook.4 The proposed shell
would contain a general rule section
and product specific section, in this
case options, which would encompass
all the rules of the Exchange.
The Exchange believes this new
structure would align the Nasdaq
Entities’ rulebooks for ease of use by
Members, who are members of more
than one Nasdaq Entity. This proposal
would not amend the current Rulebook
and is therefore not a substantive
change. A Member would continue to be
able to view the current Rulebook
alongside the proposed reorganized
Rulebook. Subsequent rule changes will
be filed to move the rule text into the
shell Rulebook.
sradovich on DSK3GMQ082PROD with NOTICES
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,5 in general, and furthers the
objectives of Section 6(b)(5) of the Act,6
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
starting the process of organizing its
rules in a manner which is clear and
consistent across the Nasdaq Entities.
The Exchange believes that coordinating
the chapters of the rulebooks among the
Nasdaq Entities will provide Members,
who are members of more than one
Nasdaq Entity, with consistency and
ease of reference in locating rules.
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
proposed changes do not impose a
burden on competition because the
proposed amendments are nonsubstantive, are intended to start the
4 When relocating the current rule text into the
new shell, the Exchange shall not amend the rule
text but simply move existing rule text.
5 15 U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(5).
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18:13 Dec 04, 2017
Jkt 244001
process to organize the rules of the
Exchange in a manner that will be more
user-friendly to Nasdaq Entity members.
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 7 and
subparagraph (f)(6) of Rule 19b–4
thereunder.8
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative for 30 days after the
date of its filing. However, Rule 19b–
4(f)(6)(iii) 9 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 requested that the
Commission waive the 30-day operative
delay so that the proposed rule change
will become operative upon filing. The
Exchange states that such waiver will
enable the Exchange to start the process
to reorganize the rulebooks of the
Nasdaq Entities. The Commission
believes that waiver of the 30-day
operative delay is consistent with the
protection of investors and the public
interest because the proposal does not
raise any novel issues and waiver will
allow the Exchange to begin the
reorganization of its Rulebook without
delay. Therefore, the Commission
hereby waives the operative delay and
designates the proposed rule change
operative upon filing.10
At any time within 60 days of the
filing of the proposed rule change, the
7 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6). As required under Rule
19b–4(f)(6)(iii), the Exchange provided the
Commission with written notice of its intent to file
the proposed rule change, along with a brief
description and the text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission.
9 17 CFR 240.19b–4(f)(6)(iii).
10 For purposes only of waiving the 30-day
operative delay, the Commission also has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
8 17
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Fmt 4703
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57517
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
GEMX–2017–54 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–2017–54. 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 Web site (https://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 Web site 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
E:\FR\FM\05DEN1.SGM
05DEN1
57518
Federal Register / Vol. 82, No. 232 / Tuesday, December 5, 2017 / Notices
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–GEMX–2017–54, and
should be submitted on or before
December 26, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–26125 Filed 12–4–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–82170; File No. SR–PHLX–
2017–96]
Self-Regulatory Organizations; Nasdaq
PHLX LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Section
(a)(i)(D) of Rule 1012, Series of Options
Open for Trading
November 29, 2017.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1, and Rule 19b–4 thereunder,2
notice is hereby given that on November
17, 2017, Nasdaq PHLX LLC (‘‘Phlx’’ 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.
sradovich on DSK3GMQ082PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Section (a)(i)(D) of Rule 1012, Series of
Options Open for Trading, to delete two
sentences regarding opening for trading
of long term option series, which
sentences have effectively been
superseded by another rule.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://nasdaqphlx.cchwallstreet.com/,
at the principal office of the Exchange,
and at the Commission’s Public
Reference Room.
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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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
Section (a)(i)(D) of Rule 1012
currently provides that the Exchange
may list, with respect to any class of
stock or Exchange-Traded Fund Share
options series, options having from
twelve up to thirty-nine months from
the time they are listed until expiration.
There may be up to six expiration
months. Strike price interval, bid/ask
differential and continuity rules shall
not apply to such options series until
the time to expiration is less than nine
months.
Section (a)(i)(D) also provides in its
last two sentences that such option
series will open for trading either when
there is buying or selling interest, or 40
minutes prior to the close, whichever
occurs first, and that no quotations need
to be posted for such option series until
they are opened for trading. The
Exchange proposes to delete the
outdated provision of Section (a)(i)(D)
regarding the time of opening as
inconsistent with, and unnecessary in
view of, Rule 1017, Openings in
Options, which governs in detail all
openings on the Exchange, including
openings in long term option series.3
The Exchange proposes to delete the
Section (a)(i)(D) provision that no
quotations need to be posted for such
option series until they are opened for
trading as superfluous, given that no
quotations need to be posted for any
series of options traded on the Exchange
until they are opened for trading.4
3 The Exchange recently amended Rule 1017,
Openings in Options, which clarified the manner in
which the opening process occurs on Phlx. See
Securities Exchange Act Release No. 80820 (May
31, 2017), 82 FR 26171 (June 6, 2017) (SR–Phlx–
2017–40).
4 The Exchange interprets ‘‘posted’’ in Section
(a)(i)(D) as meaning published on the Options Price
Reporting Authority (‘‘OPRA’’). Rule 1017(d)(iii)
PO 00000
Frm 00096
Fmt 4703
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Rule 1017 does provide in great detail
for a fully automated opening of trading
when there is buying or selling interest
in all options series, including long term
option series. Generally speaking, the
fully automated opening process begins
when either (1) a ‘‘valid width’’
specialist quote is submitted, (2) valid
width quotes are received from at least
two Exchange market makers within
two minutes of the opening trade or
quote in the underlying security or (3)
after two minutes of the opening trade
or quote in the underlying, valid width
quotes are received from one Exchange
market maker. If an opening imbalance
exists outside of an acceptable range,
the system will initiate an imbalance
process. During this process the
Exchange will consider interest on the
Exchange as well as interest on away
exchanges. If there is not an opening
imbalance outside of an acceptable
range on the Exchange, the system will
verify that a ‘‘quality opening market’’
exists in order to validate the opening
price prior to executing interest on the
opening. A quality opening market is a
bid/ask spread with an acceptable
differential as defined by the Exchange.
The bid/ask spread is made up of the
best available bid, on the Exchange as
well as away markets, and the best
available offer, on the Exchange as well
as away market. The acceptable bid/ask
spread differentials can be found on the
Exchange’s Web site.
Rule 1017 does not provide for the
opening of long term option series 40
minutes prior to the close. The
Exchange proposes to remove this
inconsistent anachronism, still found in
Rule 1012(A)(i)(D), as the Exchange no
longer believes that long term options
warrant special opening treatment but
should open like other options under
Rule 1017, pursuant to a fully
automated process in which options
open once certain precise conditions
have been met. Although removing the
provision that long term option series
must open forty minutes prior to the
close of trading even if there is no
buying or selling interest, the Exchange
believes it will be rare for a long term
option series not to have buying or
selling interest in any event, due to
Exchange members’ quoting obligations.
provides that ‘‘[t]he Specialist assigned in a
particular equity or index option must enter a Valid
Width Quote, in 90% of their assigned series, not
later than one minute following the dissemination
of a quote or trade by the market for the underlying
security or, in the case of index options, following
the receipt of the opening price in the underlying
index.’’ The quote resulting from the Specialist’s
obligation under Rule 1017(d)(iii) is considered in
the opening process of Rule 1017, and the Exchange
publishes a quote in the option series once the
option has been opened pursuant to that rule.
E:\FR\FM\05DEN1.SGM
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Agencies
[Federal Register Volume 82, Number 232 (Tuesday, December 5, 2017)]
[Notices]
[Pages 57516-57518]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-26125]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-82171; File No. SR-GEMX-2017-54]
Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Adopt a Shell
Structure for the GEMX Rulebook
November 29, 2017.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on November 17, 2017, Nasdaq GEMX, LLC (``GEMX'' 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
The Exchange proposes to adopt a shell structure for the GEMX
rulebook (``Rulebook'') as part of its initiative to structure its
Rulebook.
The text of the proposed rule change is available on the Exchange's
Web site at https://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 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
On March 9, 2016, Nasdaq, Inc. acquired the capital stock of U.S.
Exchange Holdings, thereby indirectly acquiring all of the interests of
the International Securities Exchange, LLC (now Nasdaq ISE, LLC), ISE
Gemini, LLC (now GEMX) and ISE Mercury, LLC (now Nasdaq MRX,
LLC)(``MRX'').\3\ The acquisition resulted in a total of six self-
regulatory organization licenses for Nasdaq, Inc. which, in addition to
the three aforementioned exchanges, also include The Nasdaq Stock
Market LLC (``Nasdaq''), Nasdaq PHLX LLC (``Phlx'') and Nasdaq BX, Inc.
(``BX'') (collectively, ``Nasdaq Entities'').
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 78119 (June 21,
2016), 81 FR 41611 (June 27, 2016) (SR-ISE-2016-11; SR-ISE Gemini-
2016-05; SR-ISE Mercury-2016-10) (Order Granting Accelerated
Approval of Proposed Rule Changes, Each as Modified by Amendment No.
1 Thereto, Relating to a Corporate Transaction in Which Nasdaq, Inc.
Will Become the Indirect Parent of ISE, ISE Gemini, and ISE
Mercury).
---------------------------------------------------------------------------
The Exchange is planning to conform the chapters of the various
Nasdaq Entity rulebooks for efficiency, and conformity of certain
Nasdaq Entity processes. The Exchange believes that aligning the rules
of the Nasdaq Entities will assist market participants in navigating
the various rulebooks. Specifically, the Exchange proposes to add a
shell structure which would reside alongside the current rulebook. The
proposed shell would outline the various chapters of the future
rulebook
[[Page 57517]]
and contains new chapter numbering. A similar shell would be filed to
add the same structure to each of the other Nasdaq Entities. The
proposed chapters would be similar for each shell filed for each of the
Nasdaq Entities. In subsequent rule changes, each of the Nasdaq
Entities would file rule changes to move their current rules into the
various chapters of the proposed shells for all six markets and delete
the migrated rule from the current location in the Rulebook.\4\ The
proposed shell would contain a general rule section and product
specific section, in this case options, which would encompass all the
rules of the Exchange.
---------------------------------------------------------------------------
\4\ When relocating the current rule text into the new shell,
the Exchange shall not amend the rule text but simply move existing
rule text.
---------------------------------------------------------------------------
The Exchange believes this new structure would align the Nasdaq
Entities' rulebooks for ease of use by Members, who are members of more
than one Nasdaq Entity. This proposal would not amend the current
Rulebook and is therefore not a substantive change. A Member would
continue to be able to view the current Rulebook alongside the proposed
reorganized Rulebook. Subsequent rule changes will be filed to move the
rule text into the shell Rulebook.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\5\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\6\ 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 starting the process of organizing its rules in a manner which is
clear and consistent across the Nasdaq Entities. The Exchange believes
that coordinating the chapters of the rulebooks among the Nasdaq
Entities will provide Members, who are members of more than one Nasdaq
Entity, with consistency and ease of reference in locating rules.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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 proposed changes do not
impose a burden on competition because the proposed amendments are non-
substantive, are intended to start the process to organize the rules of
the Exchange in a manner that will be more user-friendly to Nasdaq
Entity members.
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 \7\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\8\
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\7\ 15 U.S.C. 78s(b)(3)(A)(iii).
\8\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission.
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A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 30 days after the date of its filing. However,
Rule 19b-4(f)(6)(iii) \9\ 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 requested that the Commission
waive the 30-day operative delay so that the proposed rule change will
become operative upon filing. The Exchange states that such waiver will
enable the Exchange to start the process to reorganize the rulebooks of
the Nasdaq Entities. The Commission believes that waiver of the 30-day
operative delay is consistent with the protection of investors and the
public interest because the proposal does not raise any novel issues
and waiver will allow the Exchange to begin the reorganization of its
Rulebook without delay. Therefore, the Commission hereby waives the
operative delay and designates the proposed rule change operative upon
filing.\10\
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\9\ 17 CFR 240.19b-4(f)(6)(iii).
\10\ For purposes only of waiving the 30-day operative delay,
the Commission also has 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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-GEMX-2017-54 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-2017-54. 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 Web site (https://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 Web site 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
[[Page 57518]]
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-GEMX-2017-54, and should be
submitted on or before December 26, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-26125 Filed 12-4-17; 8:45 am]
BILLING CODE 8011-01-P