Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 5.170 To Reflect an Update to a FINRA Rule, 9349-9351 [2018-04337]
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Federal Register / Vol. 83, No. 43 / Monday, March 5, 2018 / Notices
9349
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange believes the proposed rule
change will enhance competition and
benefit of investors and the marketplace
by permitting continued listing and
trading of Shares of the Fund following
implementation of the changes
described above that would follow the
Reorganization, which changes would
not impact the investment objective of
the Fund.
Commission hereby waives the 30-day
operative delay and designates the
proposed rule change to be operative
upon filing.15
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.
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–NYSEArca–2018–13 and
should be submitted on or before March
26, 2018.
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.
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Eduardo A. Aleman,
Assistant Secretary.
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–
NYSEArca–2018–13 on the subject line.
SECURITIES AND EXCHANGE
COMMISSION
sradovich on DSK3GMQ082PROD with NOTICES
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; and (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 13 and
Rule 19b–4(f)(6) thereunder.14
The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The proposal would allow the
Exchange to reflect organizational and
administrative changes to the Fund that
would be implemented as a result of the
Reorganization, including changes to
the Fund’s name, the trust entity issuing
shares of the Fund, the adviser to the
Fund, and the distributor for the Fund.
The Exchange represents that the
investment objective of the Fund will
remain the same, and the Index
underlying the Fund meets and will
continue to meet the representations
regarding the Index as described in the
Releases. The Commission believes that
the proposal raises no new or novel
regulatory issues and waiver of the 30day operative delay is consistent with
the protection of investors and the
public interest. Accordingly, the
13 15
U.S.C. 78s(b)(3)(A).
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.
14 17
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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–NYSEArca–2018–13. 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 (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 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
15 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).
PO 00000
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[FR Doc. 2018–04340 Filed 3–2–18; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–82784; File No. SR–IEX–
2018–04]
Self-Regulatory Organizations;
Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend Rule
5.170 To Reflect an Update to a FINRA
Rule
February 27, 2018.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on February
21, 2018, the Investors Exchange LLC
(‘‘IEX’’ or the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(the ‘‘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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Pursuant to the provisions of Section
19(b)(1) under the Securities Exchange
Act of 1934 (‘‘Act’’), 4 and Rule 19b-4
thereunder,5 Investors Exchange LLC
(‘‘IEX’’ or ‘‘Exchange’’) is filing with the
Commission a proposed rule change to
amend Rule 5.170 to reflect an update
to a rule of the Financial Industry
Regulatory Authority (‘‘FINRA’’)
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
4 15 U.S.C. 78s(b)(1).
5 17 CFR 240.19b–4.
1 15
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9350
Federal Register / Vol. 83, No. 43 / Monday, March 5, 2018 / Notices
incorporated by reference therein. The
Exchange has designated this rule
change as ‘‘non-controversial’’ under
Section 19(b)(3)(A) of the Act 6 and
provided the Commission with the
notice required by Rule 19b–4(f)(6)
thereunder.7
The text of the proposed rule change
is available at the Exchange’s website at
www.iextrading.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 the
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 these statements may be examined at
the places specified in Item IV below.
The self-regulatory organization 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 the
Statutory Basis for, the Proposed Rule
Change
sradovich on DSK3GMQ082PROD with NOTICES
1. Purpose
The Exchange proposes to amend
Rule 5.170 to reflect an update to a
FINRA rule incorporated by reference
therein. On April 7, 2016, the
Commission approved a FINRA
proposed rule change to adopt new
FINRA Rule 3210 (Accounts at Other
Broker-Dealers and Financial
Institutions) in the Consolidated FINRA
Rulebook, which addresses accounts
opened or established by associated
persons of FINRA members at firms
other than the firm with which they are
associated (the ‘‘FINRA Rule Filing’’).
As part of the FINRA Rule Filing,
FINRA also deleted NASD Rule 3050
and Incorporated New York Stock
Exchange (‘‘NYSE’’) Rules 407, 407A,
and Incorporated NYSE Rule
Interpretation 407, each of which
governed the obligations of FINRA
member firms and their associated
persons with respect to transactions
effected by such associated persons in
accounts established outside of the
member firm.8 Thus FINRA Rule 3210
updated and consolidated into the
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4.
8 See Exchange Act Release No. 77550 (April 7,
2016), 81 FR 21924 (April 13, 2016) (Order
Approving File No. SR–FINRA–2015–029).
FINRA Rulebook NASD Rule 3050 and
certain Incorporated NYSE rules.9
NASD Rule 3050 is incorporated by
reference in Exchange Rule 5.170
(Transactions for or by Associated
Persons), which provides that
‘‘Members and persons associated with
a Member shall comply with NASD
Rule 3050 as if such Rule were part of
IEX’s Rules.’’
Accordingly, in view of the FINRA
rule change whereby NASD Rule 3050
was consolidated into FINRA Rule 3210,
the Exchange proposes to update the
reference to NASD Rule 3050 with a
reference to FINRA Rule 3210. As
proposed, IEX Members would be
subject to the requirements of FINRA
Rule 3210 rather than NASD Rule 3050.
A description of the requirements of
FINRA Rule 3210, and the differences
between FINRA Rule 3210 and former
NASD Rule 3050, are described in the
FINRA Rule Filing.10
2. Statutory Basis
IEX believes that the proposed rule
change is consistent with the provisions
of Section 6(b) 11 of the Act in general,
and furthers the objectives of Section
6(b)(5) of the Act 12 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. The
Exchange notes that in approving the
FINRA Rule Filing, the Commission
stated that it ‘‘believes that the proposal
would help protect investors and the
public interest by establishing a
framework through which a member can
adequately supervise securities-related
activities of their associated persons at
firms other than the one with which
they are associated . . . [and that the]
rule makes the core supervisory
obligation more operationally workable
for employer firms.’’ The Exchange
agrees with the Commission and
believes the proposed rule change is
also consistent with the Act because it
will provide greater clarity to Members
regarding IEX’s rules.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
IEX does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
6 15
7 17
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9 Id.
10 Id.
11 15
12 15
PO 00000
U.S.C. 78f.
U.S.C. 78f(b)(5).
Frm 00092
Fmt 4703
Sfmt 4703
of the purposes of the Act. The
Exchange does not believe that the
proposed rule change will result in a
burden on intra-market competition
since it will apply equally to all
Members. Further, as described in the
FINRA Rule Filing and the SEC
approval order thereof, FINRA Rule
3210 enables FINRA members to design
a supervisory system that suits their
respective business model and risk
profiles. Further, FINRA noted in the
FINRA Rule Filing, because FINRA Rule
3210 is consistent with prior NASD
Rule 3050, current requirements and
longstanding practice, it will not impose
additional burdens on FINRA members.
The Exchange believes that these factors
mitigate against any disparate burden on
IEX Members. The Exchange also does
not believe that the proposed rule
change will result in a burden on intermarket competition, since it is designed
to address regulatory requirements
rather than competitive considerations.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
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; 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) of the Act 13 and Rule 19b–
4(f)(6) thereunder.14
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 15 normally does not become
operative for 30 days after the date of its
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 proposal may
become operative immediately upon
13 15
U.S.C. 78s(b)(3)(A).
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.
15 17 CFR 240.19b–4(f)(6).
16 17 CFR 240.19b–4(f)(6)(iii).
14 17
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Federal Register / Vol. 83, No. 43 / Monday, March 5, 2018 / Notices
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 Section, 100 F Street NE,
Washington, DC 20549–1090. Copies of
the filing will also be available for
inspection and copying at the IEX’s
principal office and on its internet
website at www.iextrading.com. 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–IEX–2018–04 and
should be submitted on or before March
26, 2018.
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Eduardo A. Aleman,
Assistant Secretary.
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–
IEX–2018–04 on the subject line.
sradovich on DSK3GMQ082PROD with NOTICES
filing. According to the Exchange,
waiver of the operative delay will help
to avoid any potential confusion that
may otherwise occur on the part of IEX
Members as to the requirements of IEX
Rule 5.170. The Commission believes
that the proposed rule change raises no
new or novel issues and that waiver of
the operative delay is consistent with
the protection of investors and the
public interest. Therefore, the
Commission hereby waives the
operative delay and designates the
proposal operative upon filing.17
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. If the
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B) 18 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE, Washington, DC 20549–1090.
All submissions should refer to File
Number SR–IEX–2018–04. This file
number should be included in 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 (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
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).
18 15 U.S.C. 78s(b)(2)(B).
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BILLING CODE 8011–01–P
[Release No. 34–82782; File No. SR–ICEEU–
2017–017]
9351
Federal Register on January 19, 2018.3
To date, the Commission has not
received any comment letters to the
Proposed Rule Change.
Section 19(b)(2) of the Exchange Act 4
provides that, within 45 days of the
publication of notice of the filing of a
proposed rule change, or within such
longer period up to 90 days as the
Commission may designate if it finds
such longer period to be appropriate
and publishes its reasons for so finding,
or as to which the self-regulatory
organization consents, the Commission
shall either approve the proposed rule
change, disapprove the proposed rule
change, or institute proceedings to
determine whether the proposed rule
change should be disapproved. The 45th
day after publication of the Notice for
this Proposed Rule Change is March 5,
2018. The Commission is extending this
45-day time period. In order to provide
the Commission with sufficient time to
consider the Proposed Rule Change, the
Commission finds that it is appropriate
to designate a longer period within
which to take action on the Proposed
Rule Change.
Accordingly, the Commission,
pursuant to Section 19(b)(2) of the
Exchange Act,5 designates April 19,
2018 as the date by which the
Commission shall either approve,
disapprove, or institute proceedings to
determine whether to disapprove
proposed rule change SR–ICEEU–2017–
017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–04336 Filed 3–2–18; 8:45 am]
Self-Regulatory Organizations; ICE
Clear Europe Limited; Notice of
Designation of Longer Period for
Commission Action on Proposed Rule
Change Concerning the ICE Clear
Europe Wind-Down Plan
On December 29, 2017, ICE Clear
Europe Limited (‘‘ICE Clear Europe’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) proposed
rule change SR–ICEEU–2017–017
(‘‘Proposed Rule Change’’) pursuant to
Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Exchange
Act’’),1 and Rule 19b–4 thereunder,2
concerning the ICE Clear Europe WindDown Plan. The Proposed Rule Change
was published for comment in the
19 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
Frm 00093
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–82790; File No. SR–
NASDAQ–2018–013]
February 27, 2018.
PO 00000
BILLING CODE 8011–01–P
Sfmt 4703
Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend Rule
7018(a)
February 28, 2018.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
3 Exchange Act Release No. 82497 (Jan. 12, 2018),
83 FR 2847 (Jan. 19, 2018) (SR–ICEEU–2017–017)
(‘‘Notice’’).
4 15 U.S.C. 78s(b)(2).
5 Id.
6 17 CFR 200.30–3(a)(31).
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]]>Agencies
[Federal Register Volume 83, Number 43 (Monday, March 5, 2018)]
[Notices]
[Pages 9349-9351]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-04337]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-82784; File No. SR-IEX-2018-04]
Self-Regulatory Organizations; Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Rule 5.170 To Reflect an Update to a FINRA Rule
February 27, 2018.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on February 21, 2018, the Investors Exchange LLC (``IEX''
or the ``Exchange'') filed with the Securities and Exchange Commission
(the ``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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Pursuant to the provisions of Section 19(b)(1) under the Securities
Exchange Act of 1934 (``Act''), \4\ and Rule 19b-4 thereunder,\5\
Investors Exchange LLC (``IEX'' or ``Exchange'') is filing with the
Commission a proposed rule change to amend Rule 5.170 to reflect an
update to a rule of the Financial Industry Regulatory Authority
(``FINRA'')
[[Page 9350]]
incorporated by reference therein. The Exchange has designated this
rule change as ``non-controversial'' under Section 19(b)(3)(A) of the
Act \6\ and provided the Commission with the notice required by Rule
19b-4(f)(6) thereunder.\7\
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78s(b)(1).
\5\ 17 CFR 240.19b-4.
\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
The text of the proposed rule change is available at the Exchange's
website at www.iextrading.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 the
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 these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Rule 5.170 to reflect an update to a
FINRA rule incorporated by reference therein. On April 7, 2016, the
Commission approved a FINRA proposed rule change to adopt new FINRA
Rule 3210 (Accounts at Other Broker-Dealers and Financial Institutions)
in the Consolidated FINRA Rulebook, which addresses accounts opened or
established by associated persons of FINRA members at firms other than
the firm with which they are associated (the ``FINRA Rule Filing''). As
part of the FINRA Rule Filing, FINRA also deleted NASD Rule 3050 and
Incorporated New York Stock Exchange (``NYSE'') Rules 407, 407A, and
Incorporated NYSE Rule Interpretation 407, each of which governed the
obligations of FINRA member firms and their associated persons with
respect to transactions effected by such associated persons in accounts
established outside of the member firm.\8\ Thus FINRA Rule 3210 updated
and consolidated into the FINRA Rulebook NASD Rule 3050 and certain
Incorporated NYSE rules.\9\
---------------------------------------------------------------------------
\8\ See Exchange Act Release No. 77550 (April 7, 2016), 81 FR
21924 (April 13, 2016) (Order Approving File No. SR-FINRA-2015-029).
\9\ Id.
---------------------------------------------------------------------------
NASD Rule 3050 is incorporated by reference in Exchange Rule 5.170
(Transactions for or by Associated Persons), which provides that
``Members and persons associated with a Member shall comply with NASD
Rule 3050 as if such Rule were part of IEX's Rules.''
Accordingly, in view of the FINRA rule change whereby NASD Rule
3050 was consolidated into FINRA Rule 3210, the Exchange proposes to
update the reference to NASD Rule 3050 with a reference to FINRA Rule
3210. As proposed, IEX Members would be subject to the requirements of
FINRA Rule 3210 rather than NASD Rule 3050. A description of the
requirements of FINRA Rule 3210, and the differences between FINRA Rule
3210 and former NASD Rule 3050, are described in the FINRA Rule
Filing.\10\
---------------------------------------------------------------------------
\10\ Id.
---------------------------------------------------------------------------
2. Statutory Basis
IEX believes that the proposed rule change is consistent with the
provisions of Section 6(b) \11\ of the Act in general, and furthers the
objectives of Section 6(b)(5) of the Act \12\ 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. The Exchange notes that in approving the FINRA Rule
Filing, the Commission stated that it ``believes that the proposal
would help protect investors and the public interest by establishing a
framework through which a member can adequately supervise securities-
related activities of their associated persons at firms other than the
one with which they are associated . . . [and that the] rule makes the
core supervisory obligation more operationally workable for employer
firms.'' The Exchange agrees with the Commission and believes the
proposed rule change is also consistent with the Act because it will
provide greater clarity to Members regarding IEX's rules.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78f.
\12\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
IEX does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange does not believe
that the proposed rule change will result in a burden on intra-market
competition since it will apply equally to all Members. Further, as
described in the FINRA Rule Filing and the SEC approval order thereof,
FINRA Rule 3210 enables FINRA members to design a supervisory system
that suits their respective business model and risk profiles. Further,
FINRA noted in the FINRA Rule Filing, because FINRA Rule 3210 is
consistent with prior NASD Rule 3050, current requirements and
longstanding practice, it will not impose additional burdens on FINRA
members. The Exchange believes that these factors mitigate against any
disparate burden on IEX Members. The Exchange also does not believe
that the proposed rule change will result in a burden on inter-market
competition, since it is designed to address regulatory requirements
rather than competitive considerations.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
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; 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) of the Act \13\ and Rule 19b-4(f)(6) thereunder.\14\
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 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 pursuant to Rule 19b-4(f)(6) under the
Act \15\ normally does not become operative for 30 days after the date
of its 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 proposal may become operative immediately upon
[[Page 9351]]
filing. According to the Exchange, waiver of the operative delay will
help to avoid any potential confusion that may otherwise occur on the
part of IEX Members as to the requirements of IEX Rule 5.170. The
Commission believes that the proposed rule change raises no new or
novel issues and that waiver of the operative delay is consistent with
the protection of investors and the public interest. Therefore, the
Commission hereby waives the operative delay and designates the
proposal 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 necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \18\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\18\ 15 U.S.C. 78s(b)(2)(B).
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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 [email protected]. Please include
File Number SR-IEX-2018-04 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-IEX-2018-04. This file
number should be included in 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 (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 website viewing and printing in
the Commission's Public Reference Section, 100 F Street NE, Washington,
DC 20549-1090. Copies of the filing will also be available for
inspection and copying at the IEX's principal office and on its
internet website at www.iextrading.com. 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-IEX-
2018-04 and should be submitted on or before March 26, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-04337 Filed 3-2-18; 8:45 am]
BILLING CODE 8011-01-P
