Self-Regulatory Organizations; Nasdaq BX, Inc.; 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 BX, 18371-18373 [2018-08730]
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Federal Register / Vol. 83, No. 81 / Thursday, April 26, 2018 / Notices
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.
Extension:
Rule 12d2–1, SEC File No. 270–098, OMB
Control No. 3235–0081.
amozie on DSK30RV082PROD with NOTICES
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collection of information
provided for in Rule 12d2–1 (17 CFR
240.12d2–1) under the Securities
Exchange Act of 1934 (15 U.S.C. 78b et
seq.) (‘‘Act’’). The Commission plans to
submit this existing collection of
information to the Office of
Management and Budget (‘‘OMB’’) for
extension and approval.
On February 12, 1935, the
Commission adopted Rule 12d2–1 1
(‘‘Suspension of Trading’’) to establish
the procedures by which a national
securities exchange may suspend from
trading a security that is listed and
registered on the exchange under
Section 12(d) of the Act.2 Under Rule
12d2–1, an exchange is permitted to
suspend from trading a listed security in
accordance with its rules, and must
promptly notify the Commission of any
such suspension, along with the
effective date and the reasons for the
suspension.
Any such suspension may be
continued until such time as the
Commission may determine that the
suspension is designed to evade the
provisions of Section 12(d) of the Act
and Rule 12d2–2 thereunder.3 During
the continuance of such suspension
under Rule 12d2–1, the exchange is
required to notify the Commission
promptly of any change in the reasons
for the suspension. Upon the restoration
to trading of any security suspended
under Rule 12d2–1, the exchange must
notify the Commission promptly of the
effective date of such restoration.
The trading suspension notices serve
a number of purposes. First, they inform
1 See Securities Exchange Act Release No. 98
(February 12, 1935).
2 See Securities Exchange Act Release No. 7011
(February 5, 1963), 28 FR 1506 (February 16, 1963).
3 Rule 12d2–2 prescribes the circumstances under
which a security may be delisted from an exchange
and withdrawn from registration under Section
12(b) of the Act, and provides the procedures for
taking such action.
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the Commission that an exchange has
suspended from trading a listed security
or reintroduced trading in a previously
suspended security. They also provide
the Commission with information
necessary for it to determine that the
suspension has been accomplished in
accordance with the rules of the
exchange, and to verify that the
exchange has not evaded the
requirements of Section 12(d) of the Act
and Rule 12d2–2 thereunder by
improperly employing a trading
suspension. Without Rule 12d2–1, the
Commission would be unable to fully
implement these statutory
responsibilities.
There are 21 national securities
exchanges 4 that are subject to Rule
12d2–1. The burden of complying with
Rule 12d2–1 is not evenly distributed
among the exchanges, however, since
there are many more securities listed on
the New York Stock Exchange, Inc., the
NASDAQ Stock Market, and NYSE
American LLC than on the other
exchanges.5 There are approximately
964 responses 6 under Rule 12d2–1 for
the purpose of suspension of trading
from the national securities exchanges
each year, and the resultant aggregate
annual reporting hour burden would be,
assuming on average one-half reporting
hour per response, 482 annual burden
hours for all exchanges. The related
internal compliance costs associated
with these burden hours are $103,871
per year.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden of 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
4 The
Exchanges are BOX Options Exchange LLC,
Cboe BYX Exchange, Inc., Cboe BZX Exchange, Inc.,
Cboe C2 Exchange, Inc., Cboe EDGA Exchange, Inc.,
Cboe EDGX Exchange, Inc., Cboe Exchange, Inc.,
Chicago Stock Exchange, Inc., Investors Exchange
LLC, Miami International Securities Exchange,
MIAX PEARL, LLC, Nasdaq BX, Inc., Nasdaq
GEMX, LLC, Nasdaq ISE, LLC, Nasdaq MRX, LLC,
Nasdaq PHLX LLC, The Nasdaq Stock Market, New
York Stock Exchange LLC, NYSE Arca, Inc., NYSE
American LLC, NYSE National, Inc.
5 In fact, some exchanges do not file any trading
suspension reports in a given year.
6 The 964 figure was calculated by averaging the
numbers for compliance in 2016 and 2017, which
are 1,002 and 925, respectively.
PO 00000
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18371
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
under the PRA unless it displays a
currently valid OMB 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 20549, or send an email to: PRA_
Mailbox@sec.gov.
Dated: April 23, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–08828 Filed 4–25–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83081; File No. SR–BX–
2018–015]
Self-Regulatory Organizations; Nasdaq
BX, Inc.; 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 BX
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 BX, Inc. (‘‘BX’’ 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 BX’s General 7.
The text of the proposed rule change
is available on the Exchange’s website at
https://nasdaqbx.cchwallstreet.com/, at
the principal office of the Exchange, and
at the Commission’s Public Reference
Room.
1 15
2 17
E:\FR\FM\26APN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
26APN1
18372
Federal Register / Vol. 83, No. 81 / Thursday, April 26, 2018 / Notices
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 BX’s General 7. The
rule sets are identical.3 BX 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 BX General 7, and are thus
Nasdaq BX Rules and thereby applicable to
Nasdaq BX Members. Nasdaq BX 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 BX
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 BX Exchange; the defined term
‘‘Rule’’ in the General 7 Rules shall be read
to refer to the Nasdaq BX Rule.
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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 BX’s
Rulebook. The incorporations by
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 BX shall include a hyperlink to Nasdaq’s
General 7 for ease of reference.
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reference of Nasdaq General 7 into BX’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 BX
agrees to provide written notice to its
members whenever Nasdaq proposes a
change to its General 7 Rule.7 Such
notice will alert BX members to the
proposed Nasdaq rule change and give
them an opportunity to comment on the
proposal. BX will similarly inform its
members in writing when the SEC
approves any such proposed change.
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 BX
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
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 BX General 7.
7 BX will provide such notice via a posting on the
same website location where BX 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.
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 00111
Fmt 4703
Sfmt 4703
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 BX 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 BX members will be
required to continue to comply with the
General 7 Rules as though such rules are
fully set forth in BX’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 BX 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).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
12 17
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Federal Register / Vol. 83, No. 81 / Thursday, April 26, 2018 / Notices
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:
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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–
BX–2018–015 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–BX–2018–015. 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
Commission written notice of the Exchange’s intent
to file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
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16:58 Apr 25, 2018
Jkt 244001
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–BX–2018–015 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. 2018–08730 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
Extension:
Interagency Statement on Sound Practices,
SEC File No. 270–560, OMB Control No.
3235–0622.
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the existing collection of information
provided for in the proposed
Interagency Statement on Sound
Practices Concerning Elevated Risk
Complex Structured Finance Activities
(‘‘Statement’’) under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et
seq.) (‘‘Exchange Act’’) and the
Investment Advisers Act of 1940 (15
U.S.C. 80b et seq.) (‘‘Advisers Act’’). The
Commission plans to submit this
existing collection of information to the
Office of Management and Budget
(‘‘OMB’’) for extension and approval.
The Statement was issued by the
Commission, together with the Office of
the Comptroller of the Currency, the
Board of Governors of the Federal
Reserve System, the Federal Deposit
Insurance Corporation, and the Office of
Thrift Supervision (together, the
‘‘Agencies’’), in May 2006. The
Statement describes the types of internal
controls and risk management
13 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00112
Fmt 4703
Sfmt 4703
18373
procedures that the Agencies believe are
particularly effective in assisting
financial institutions to identify and
address the reputational, legal, and
other risks associated with elevated risk
complex structured finance
transactions.
The primary purpose of the Statement
is to ensure that these transactions
receive enhanced scrutiny by the
institution and to ensure that the
institution does not participate in illegal
or inappropriate transactions.
The Commission estimates that
approximately 5 registered brokerdealers or investment advisers will
spend an average of approximately 25
hours per year complying with the
Statement. Thus, the total compliance
burden is estimated to be approximately
125 burden-hours per year.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
estimates of the burden of the proposed
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
under the PRA unless it displays a
currently valid OMB 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 20549, or send an email to: PRA_
Mailbox@sec.gov.
Dated: April 23, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–08816 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
E:\FR\FM\26APN1.SGM
26APN1
]]>Agencies
[Federal Register Volume 83, Number 81 (Thursday, April 26, 2018)]
[Notices]
[Pages 18371-18373]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-08730]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-83081; File No. SR-BX-2018-015]
Self-Regulatory Organizations; Nasdaq BX, Inc.; 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 BX
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 BX, Inc. (``BX'' 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 BX's General 7.
The text of the proposed rule change is available on the Exchange's
website at https://nasdaqbx.cchwallstreet.com/, at the principal office
of the Exchange, and at the Commission's Public Reference Room.
[[Page 18372]]
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 BX's
General 7. The rule sets are identical.\3\ BX proposes to remove the
current rule text from 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\ BX 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 BX
General 7, and are thus Nasdaq BX Rules and thereby applicable to
Nasdaq BX Members. Nasdaq BX 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 BX 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 BX Exchange; the defined term
``Rule'' in the General 7 Rules shall be read to refer to the Nasdaq
---------------------------------------------------------------------------
BX 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 BX's Rulebook. The
incorporations by reference of Nasdaq General 7 into BX'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\ BX agrees to provide written
notice to its members whenever Nasdaq proposes a change to its General
7 Rule.\7\ Such notice will alert BX members to the proposed Nasdaq
rule change and give them an opportunity to comment on the proposal. BX
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 BX
General 7.
\7\ BX will provide such notice via a posting on the same
website location where BX 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.
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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 BX General 7.
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\8\ See 17 CFR 240.0-12; Exchange Act Release No. 39624
(February 5, 1998), 63 FR 8101 (February 18, 1998).
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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.
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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
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Incorporating by reference the Nasdaq General 7 Rules into the BX
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 BX members will be required to
continue to comply with the General 7 Rules as though such rules are
fully set forth in BX'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 BX
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\
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\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.
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[[Page 18373]]
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-BX-2018-015 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-BX-2018-015. 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-BX-2018-015 and should be submitted on
or before May 17, 2018.
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\13\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-08730 Filed 4-25-18; 8:45 am]
BILLING CODE 8011-01-P
