Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Incorporate by Reference The Nasdaq Stock Market LLC's Consolidated Audit Trail Rules Into the Rules of Nasdaq ISE, 18362-18364 [2018-08728]

Download as PDF 18362 Federal Register / Vol. 83, No. 81 / Thursday, April 26, 2018 / Notices 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–Phlx–2018–31 and should be submitted on or before May 17, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.7 Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018–08729 Filed 4–25–18; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Proposed Collection; Comment Request Upon Written Request Copies Available From: Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 20549–2736. amozie on DSK30RV082PROD with NOTICES Extension: Form 1–Z, SEC File No. 270–659, OMB Control No. 3235–0723. Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange Commission (‘‘Commission’’) is soliciting comments on the collection of information summarized below. The Commission plans to submit this existing collection of information to the Office of Management and Budget for extension and approval. Form 1–Z (17 CFR 239.94) is used to report terminated or completed offerings or to suspend the duty to file ongoing reports under Regulation A, an exemption from registration under the Securities Act of 1933 (15 U.S.C 77a et seq.). The purpose of the Form 1–Z is to collect empirical data for the Commission on offerings conducted under Regulation A that have terminated or completed, to indicate to 7 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 16:58 Apr 25, 2018 Jkt 244001 the Commission that issuers that have conducted Tier 2 offering are suspending their duty to file reports under Regulation A and to provide such information to the investing public. We estimate that approximately 12 issuers file Form 1–Z annually. We estimate that Form 1–Z takes approximately 1.5 hours to prepare. We estimate that 100% of the 1.5 hours per response is prepared by the company for a total annual burden of 18 hours (1.5 hours per response × 12 responses). Written comments are invited on: (a) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; (b) the accuracy of the agency’s estimate of the burden imposed by the collection of information; (c) ways to enhance the quality, utility, and clarity of the information collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology. Consideration will be given to comments and suggestions submitted in writing within 60 days of this publication. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid control number. Please direct your written comments to Pamela Dyson, Director/Chief Information Officer, Securities and Exchange Commission, c/o Remi PavlikSimon, 100 F Street NE, Washington, DC 220549; or send an email to: PRA_ Mailbox@sec.gov. (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on April 10, 2018, Nasdaq ISE, LLC (‘‘ISE’’ 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. Dated: April 23, 2018. Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018–08820 Filed 4–25–18; 8:45 am] A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change BILLING CODE 8011–01–P 1. Purpose SECURITIES AND EXCHANGE COMMISSION [Release No. 34–83079; File No. SR–ISE– 2018–35] Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Incorporate by Reference The Nasdaq Stock Market LLC’s Consolidated Audit Trail Rules Into the Rules of Nasdaq ISE April 20, 2018. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 PO 00000 Frm 00101 Fmt 4703 Sfmt 4703 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to incorporate by reference The Nasdaq Stock Market LLC’s (‘‘Nasdaq’’) rule at General 7, entitled ‘‘Consolidated Audit Trail Compliance’’ into ISE’s General 7. The text of the proposed rule change is available on the Exchange’s website at https://ise.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. The Exchange proposes to incorporate by reference Nasdaq’s rule at General 7, entitled ‘‘Consolidated Audit Trail Compliance’’ into ISE’s General 7. The rule sets are identical.3 ISE proposes to remove the current rule text from 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release Nos. 82601 (January 30, 2018), 83 FR 4949 (February 2, 2018) (SR–Phlx–2018–11); 82604 (January 30, 2018), 83 FR 5154 (February 5, 2018) (SR–NASDAQ–2018– 007); 82597 (January 30, 2018), 83 FR 4942 (February 2, 2018) (SR–BX–2018–007); 82599 (January 30, 2017), 83 FR 4947 (February 2, 2018) (SR–ISE–2018–09); 82598 (January 30, 2018), 83 FR 4936 (February 2, 2018) (SR–GEMX–2018–02); and 82600 (January 30, 2018), 83 FR 4934 (February 2, 2018) (SR–MRX–2018–03). 2 17 E:\FR\FM\26APN1.SGM 26APN1 Federal Register / Vol. 83, No. 81 / Thursday, April 26, 2018 / Notices General 7 and replace that rule text with the following text: 4 The rules contained in The Nasdaq Stock Market LLC General 7, as such rules may be in effect from time to time (the ‘‘General 7 Rules’’), are hereby incorporated by reference into this Nasdaq ISE General 7, and are thus Nasdaq ISE Rules and thereby applicable to Nasdaq ISE Members. Nasdaq ISE Members shall comply with the General 7 Rules as though such rules were fully set forth herein. All defined terms, including any variations thereof, contained in the General 7 Rules shall be read to refer to the Nasdaq ISE related meaning of such term. Solely by way of example, and not in limitation or in exhaustion: The defined term ‘‘Exchange’’ in the General 7 Rules shall be read to refer to the Nasdaq ISE Exchange; the defined term ‘‘Rule’’ in the General 7 Rules shall be read to refer to the Nasdaq ISE Rule. amozie on DSK30RV082PROD with NOTICES Should any rules which impact trading behavior be added to the Consolidated Audit Trail Compliance Rules in Nasdaq General 7 in the future, those rules shall not become subject to the incorporation by reference and shall be placed elsewhere within ISE’s Rulebook. The incorporations by reference of Nasdaq General 7 into ISE’s General 7 Rule are regulatory in nature.5 The Exchange notes that as a condition of an exemption, which the Exchange will request and will need to be approved by the Commission,6 ISE agrees to provide written notice to its members whenever Nasdaq proposes a change to its General 7 Rule.7 Such notice will alert ISE members to the proposed Nasdaq rule change and give them an opportunity to comment on the proposal. ISE will similarly inform its members in writing when the SEC approves any such proposed change. 4 ISE shall include a hyperlink to Nasdaq’s General 7 for ease of reference. 5 The General 7 Rules are categories of rules that are not trading rules. See 17 CFR 200.30–3(a)(76) (contemplating such requests). In addition, several other SROs incorporate by reference certain regulatory rules of another SRO and have received from the Commission similar exemptions from Section 19(b) of the Exchange Act. See e.g., Securities Exchange Act Release Nos. 57478 (March 12, 2008), 73 FR 14521 (March 18, 2008), 53128 (January 13, 2006), 71 FR 3550 (January 23, 2006); 49260 (February 17, 2004), 69 FR 8500 (February 24, 2004). 6 The Exchange will request an exemption pursuant to its authority under Section 36 of the Exchange Act of 1934 (‘‘Act’’) and Rule 0–126 thereunder, from the Section 19(b) rule filing requirements to separately file a proposed rule change to amend ISE General 7. 7 ISE will provide such notice via a posting on the same website location where ISE posts its own rule filings pursuant to Rule 19b–4 within the timeframe require by such Rule. The website posting will include a link to the location on the Nasdaq website where the applicable proposed rule change is posted. VerDate Sep<11>2014 16:58 Apr 25, 2018 Jkt 244001 Implementation The Exchange proposes that this rule change become operative at such time as it receives approval for an exemption from the Securities and Exchange Commission, pursuant to its authority under Section 36 of the Exchange Act of 1934 (‘‘Act’’) and Rule 0–12 8 thereunder, from the Section 19(b) rule filing requirements to separately file a proposed rule change to amend ISE General 7. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,9 in general, and furthers the objectives of Section 6(b)(5) of the Act,10 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 consolidating its rules into a single rule set. The Exchange intends to also file similar proposed rule changes for the Nasdaq PHLX LLC; Nasdaq GEMX, LLC; Nasdaq ISE, LLC; and Nasdaq MRX, LLC markets so that the General 7 Rules which govern Consolidated Audit Trail Compliance are conformed. Incorporating by reference the Nasdaq General 7 Rules into the ISE General 7 Rules will provide an easy reference for Members seeking to comply with Consolidated Audit Trail on multiple markets. As noted, the Exchange intends to file similar proposed rule changes for other affiliated markets so that Nasdaq General 7 is the source document for all Nasdaq Consolidated Audit Trail rules. The Exchange notes that the current rule is not changing and ISE members will be required to continue to comply with the General 7 Rules as though such rules are fully set forth in ISE’s Rulebook. The Exchange desires to conform its rules and locate those rules within the same location in each Rulebook to provide Members the ability to quickly locate 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 Exchange believes that this rule change does not impose an undue burden on 8 See 17 CFR 240.0–12; Exchange Act Release No. 39624 (February 5, 1998), 63 FR 8101 (February 18, 1998). 9 15 U.S.C. 78f(b). 10 15 U.S.C. 78f(b)(5). PO 00000 Frm 00102 Fmt 4703 Sfmt 4703 18363 competition because ISE is merely incorporating by reference the rules of Nasdaq’s General 7 into its own Rulebook. The current General 7 is not being amended and therefore no Member is impacted. 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 11 and subparagraph (f)(6) of Rule 19b–4 thereunder.12 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– ISE–2018–35 on the subject line. 11 15 U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6)(iii) requires the Exchange to give the Commission written notice of the Exchange’s intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. 12 17 E:\FR\FM\26APN1.SGM 26APN1 18364 Federal Register / Vol. 83, No. 81 / Thursday, April 26, 2018 / Notices 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–ISE–2018–35. 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 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–ISE–2018–35 and should be submitted on or before May 17, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018–08728 Filed 4–25–18; 8:45 am] amozie on DSK30RV082PROD with NOTICES BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–83085; File No. SR–MRX– 2018–12] Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Incorporate by Reference The Nasdaq Stock Market LLC’s Consolidated Audit Trail Rules Into the Rules of Nasdaq MRX April 20, 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 April 10, 2018, Nasdaq MRX, LLC (‘‘MRX’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to incorporate by reference The Nasdaq Stock Market LLC’s (‘‘Nasdaq’’) rule at General 7, entitled ‘‘Consolidated Audit Trail Compliance’’ into MRX’s General 7. The text of the proposed rule change is available on the Exchange’s website at https://nasdaqmrx.cchwallstreet.com/, at the principal office of the Exchange, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. 1 15 13 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 16:58 Apr 25, 2018 2 17 Jkt 244001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00103 Fmt 4703 Sfmt 4703 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to incorporate by reference Nasdaq’s rule at General 7, entitled ‘‘Consolidated Audit Trail Compliance’’ into MRX’s General 7. The rule sets are identical.3 MRX proposes to remove the current rule text from General 7 and replace that rule text with the following text: 4 The rules contained in The Nasdaq Stock Market LLC General 7, as such rules may be in effect from time to time (the ‘‘General 7 Rules’’), are hereby incorporated by reference into this Nasdaq MRX General 7, and are thus Nasdaq MRX Rules and thereby applicable to Nasdaq MRX Members. Nasdaq MRX Members shall comply with the General 7 Rules as though such rules were fully set forth herein. All defined terms, including any variations thereof, contained in the General 7 Rules shall be read to refer to the Nasdaq MRX related meaning of such term. Solely by way of example, and not in limitation or in exhaustion: the defined term ‘‘Exchange’’ in the General 7 Rules shall be read to refer to the Nasdaq MRX Exchange; the defined term ‘‘Rule’’ in the General 7 Rules shall be read to refer to the Nasdaq MRX Rule. Should any rules which impact trading behavior be added to the Consolidated Audit Trail Compliance Rules in Nasdaq General 7 in the future, those rules shall not become subject to the incorporation by reference and shall be placed elsewhere within MRX’s Rulebook. The incorporations by reference of Nasdaq General 7 into MRX’s General 7 Rule are regulatory in nature.5 The Exchange notes that as a condition of an exemption, which the Exchange will request and will need to be approved by the Commission,6 MRX 3 See Securities Exchange Act Release Nos. 82601 (January 30, 2018), 83 FR 4949 (February 2, 2018) (SR–Phlx–2018–11); 82604 (January 30, 2018), 83 FR 5154 (February 5, 2018) (SR–NASDAQ–2018– 007); 82597 (January 30, 2018), 83 FR 4942 (February 2, 2018) (SR–BX–2018–007); 82599 (January 30, 2017), 83 FR 4947 (February 2, 2018) (SR–ISE–2018–09); 82598 (January 30, 2018), 83 FR 4936 (February 2, 2018) (SR–GEMX–2018–02); and 82600 (January 30, 2018), 83 FR 4934 (February 2, 2018) (SR–MRX–2018–03). 4 MRX shall include a hyperlink to Nasdaq’s General 7 for ease of reference. 5 The General 7 Rules are categories of rules that are not trading rules. See 17 CFR 200.30–3(a)(76) (contemplating such requests). In addition, several other SROs incorporate by reference certain regulatory rules of another SRO and have received from the Commission similar exemptions from Section 19(b) of the Exchange Act. See e.g., Securities Exchange Act Release Nos. 57478 (March 12, 2008), 73 FR 14521 (March 18, 2008), 53128 (January 13, 2006), 71 FR 3550 (January 23, 2006); 49260 (February 17, 2004), 69 FR 8500 (February 24, 2004). 6 The Exchange will request an exemption pursuant to its authority under Section 36 of the E:\FR\FM\26APN1.SGM 26APN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 83, Number 81 (Thursday, April 26, 2018)]
[Notices]
[Pages 18362-18364]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-08728]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83079; File No. SR-ISE-2018-35]


Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Incorporate by 
Reference The Nasdaq Stock Market LLC's Consolidated Audit Trail Rules 
Into the Rules of Nasdaq ISE

April 20, 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 April 10, 2018, Nasdaq ISE, LLC (``ISE'' 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 Substance 
of the Proposed Rule Change

    The Exchange proposes to incorporate by reference The Nasdaq Stock 
Market LLC's (``Nasdaq'') rule at General 7, entitled ``Consolidated 
Audit Trail Compliance'' into ISE's General 7.
    The text of the proposed rule change is available on the Exchange's 
website at https://ise.cchwallstreet.com/, at the principal office of 
the Exchange, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to incorporate by reference Nasdaq's rule at 
General 7, entitled ``Consolidated Audit Trail Compliance'' into ISE's 
General 7. The rule sets are identical.\3\ ISE proposes to remove the 
current rule text from

[[Page 18363]]

General 7 and replace that rule text with the following text: \4\
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release Nos. 82601 (January 30, 
2018), 83 FR 4949 (February 2, 2018) (SR-Phlx-2018-11); 82604 
(January 30, 2018), 83 FR 5154 (February 5, 2018) (SR-NASDAQ-2018-
007); 82597 (January 30, 2018), 83 FR 4942 (February 2, 2018) (SR-
BX-2018-007); 82599 (January 30, 2017), 83 FR 4947 (February 2, 
2018) (SR-ISE-2018-09); 82598 (January 30, 2018), 83 FR 4936 
(February 2, 2018) (SR-GEMX-2018-02); and 82600 (January 30, 2018), 
83 FR 4934 (February 2, 2018) (SR-MRX-2018-03).
    \4\ ISE shall include a hyperlink to Nasdaq's General 7 for ease 
of reference.

    The rules contained in The Nasdaq Stock Market LLC General 7, as 
such rules may be in effect from time to time (the ``General 7 
Rules''), are hereby incorporated by reference into this Nasdaq ISE 
General 7, and are thus Nasdaq ISE Rules and thereby applicable to 
Nasdaq ISE Members. Nasdaq ISE Members shall comply with the General 
7 Rules as though such rules were fully set forth herein. All 
defined terms, including any variations thereof, contained in the 
General 7 Rules shall be read to refer to the Nasdaq ISE related 
meaning of such term. Solely by way of example, and not in 
limitation or in exhaustion: The defined term ``Exchange'' in the 
General 7 Rules shall be read to refer to the Nasdaq ISE Exchange; 
the defined term ``Rule'' in the General 7 Rules shall be read to 
---------------------------------------------------------------------------
refer to the Nasdaq ISE Rule.

    Should any rules which impact trading behavior be added to the 
Consolidated Audit Trail Compliance Rules in Nasdaq General 7 in the 
future, those rules shall not become subject to the incorporation by 
reference and shall be placed elsewhere within ISE's Rulebook. The 
incorporations by reference of Nasdaq General 7 into ISE's General 7 
Rule are regulatory in nature.\5\ The Exchange notes that as a 
condition of an exemption, which the Exchange will request and will 
need to be approved by the Commission,\6\ ISE agrees to provide written 
notice to its members whenever Nasdaq proposes a change to its General 
7 Rule.\7\ Such notice will alert ISE members to the proposed Nasdaq 
rule change and give them an opportunity to comment on the proposal. 
ISE will similarly inform its members in writing when the SEC approves 
any such proposed change.
---------------------------------------------------------------------------

    \5\ The General 7 Rules are categories of rules that are not 
trading rules. See 17 CFR 200.30-3(a)(76) (contemplating such 
requests). In addition, several other SROs incorporate by reference 
certain regulatory rules of another SRO and have received from the 
Commission similar exemptions from Section 19(b) of the Exchange 
Act. See e.g., Securities Exchange Act Release Nos. 57478 (March 12, 
2008), 73 FR 14521 (March 18, 2008), 53128 (January 13, 2006), 71 FR 
3550 (January 23, 2006); 49260 (February 17, 2004), 69 FR 8500 
(February 24, 2004).
    \6\ The Exchange will request an exemption pursuant to its 
authority under Section 36 of the Exchange Act of 1934 (``Act'') and 
Rule 0-12\6\ thereunder, from the Section 19(b) rule filing 
requirements to separately file a proposed rule change to amend ISE 
General 7.
    \7\ ISE will provide such notice via a posting on the same 
website location where ISE posts its own rule filings pursuant to 
Rule 19b-4 within the timeframe require by such Rule. The website 
posting will include a link to the location on the Nasdaq website 
where the applicable proposed rule change is posted.
---------------------------------------------------------------------------

Implementation
    The Exchange proposes that this rule change become operative at 
such time as it receives approval for an exemption from the Securities 
and Exchange Commission, pursuant to its authority under Section 36 of 
the Exchange Act of 1934 (``Act'') and Rule 0-12 \8\ thereunder, from 
the Section 19(b) rule filing requirements to separately file a 
proposed rule change to amend ISE General 7.
---------------------------------------------------------------------------

    \8\ See 17 CFR 240.0-12; Exchange Act Release No. 39624 
(February 5, 1998), 63 FR 8101 (February 18, 1998).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\9\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\10\ 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 consolidating its rules into a single rule set. The 
Exchange intends to also file similar proposed rule changes for the 
Nasdaq PHLX LLC; Nasdaq GEMX, LLC; Nasdaq ISE, LLC; and Nasdaq MRX, LLC 
markets so that the General 7 Rules which govern Consolidated Audit 
Trail Compliance are conformed.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    Incorporating by reference the Nasdaq General 7 Rules into the ISE 
General 7 Rules will provide an easy reference for Members seeking to 
comply with Consolidated Audit Trail on multiple markets. As noted, the 
Exchange intends to file similar proposed rule changes for other 
affiliated markets so that Nasdaq General 7 is the source document for 
all Nasdaq Consolidated Audit Trail rules. The Exchange notes that the 
current rule is not changing and ISE members will be required to 
continue to comply with the General 7 Rules as though such rules are 
fully set forth in ISE's Rulebook. The Exchange desires to conform its 
rules and locate those rules within the same location in each Rulebook 
to provide Members the ability to quickly locate 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 Exchange believes that this 
rule change does not impose an undue burden on competition because ISE 
is merely incorporating by reference the rules of Nasdaq's General 7 
into its own Rulebook. The current General 7 is not being amended and 
therefore no Member is impacted.

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 \11\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\12\
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires the Exchange to give the Commission written notice of the 
Exchange's intent to file the proposed rule change, along with a 
brief description and text of the proposed rule change, at least 
five business days prior to the date of filing of the proposed rule 
change, or such shorter time as designated by the Commission. The 
Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    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 [email protected]. Please include 
File Number SR-ISE-2018-35 on the subject line.

[[Page 18364]]

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-ISE-2018-35. 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 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-ISE-2018-35 and should be submitted on 
or before May 17, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-08728 Filed 4-25-18; 8:45 am]
 BILLING CODE 8011-01-P

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