Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Reorganize and Amend Chapter XV, Section 3, entitled BX Options Market-Ports and Other Services, 22563-22565 [2018-10252]

Download as PDF Federal Register / Vol. 83, No. 94 / Tuesday, May 15, 2018 / Notices though such ownership will exist for only a momentary period of time. 14. The Applicants submit that the requested exemption from sections 12(d)(1)(A) and 12(d)(1)(C) meets the standards set forth in section 12(d)(1)(J). Section 12(d)(1)(J) provides that ‘‘the Commission, by rule or regulation, upon its own motion or by order upon application, may conditionally or unconditionally exempt any person, security, or transaction, or any class or classes of persons, securities, or transactions from any provision of this subsection, if and to the extent that such exemption is consistent with the public interest and the protection of investors.’’ 15. The Applicants state that the Proposed Transactions are consistent with the public interest in that they are intended to result in a benefit to nonelecting Unitholders, Electing Unitholders and potential future investors in the Extension Fund. The Applicants also state that the Proposed Transactions are consistent with investor protection because the momentary holding by the Fund of Shares of the Existing Fund does not raise any of the concerns that Sections 12(d)(1)(A) and (C) were intended to address. For the Commission, by the Division of Investment Management, under delegated authority. Eduardo A. Aleman, Assistant Secretary. BILLING CODE 8011–01–P [Release No. 34–83192; File No. SR–BX– 2018–017] Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Reorganize and Amend Chapter XV, Section 3, entitled BX Options Market—Ports and Other Services daltland on DSKBBV9HB2PROD with NOTICES May 9, 2018. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on April 27, 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 U.S.C. 78s(b)(1). CFR 240.19b–4. VerDate Sep<11>2014 20:27 May 14, 2018 The Exchange proposes to reorganize and amend Chapter XV, Section 3, entitled ‘‘BX Options Market—Ports and Other Services.’’ 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. 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. Purpose SECURITIES AND EXCHANGE COMMISSION 2 17 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change [FR Doc. 2018–10246 Filed 5–14–18; 8:45 am] 1 15 publishing this notice to solicit comments on the proposed rule change from interested persons. Jkt 244001 The Exchange proposes to reorganize and amend Chapter XV, Section 3, entitled ‘‘BX Options Market—Ports and Other Services.’’ The Exchange offers various services across its 6 affiliated options markets, BX, The Nasdaq Options Market LLC, Nasdaq Phlx LLC, Nasdaq ISE, LLC, Nasdaq GEMX, LLC and Nasdaq MRX, LLC (‘‘Nasdaq Affiliated Markets’’).3 The Exchange desires to rename services to conform the naming of the offerings across all Nasdaq Affiliated Markets. The Exchange proposes to reorganize Section 3 to list order and quote protocols first, order and execution offerings next, followed by data ports and other ports as the last section. The Exchange proposes to list data offerings which are offered at no cost. The Exchange believes that aligning its offerings, where relevant, across the Nasdaq Affiliated Markets will provide 3 The Exchange will file a similar rule change on each Nasdaq Affiliated Market to conform the offerings by amending naming to make them similar and delineating each offering on the fee schedule where no fee is assessed. PO 00000 Frm 00123 Fmt 4703 Sfmt 4703 22563 more transparency as to the offerings for market participants. Ports The Exchange proposes to define a port within Section 3 to provide additional clarity to the fee schedule as ‘‘a logical connection or session that enables a market participant to send inbound messages and/or receive outbound messages from the Exchange using various communication protocols.’’ The Exchange believes this definition will assist Participants in distinguishing ports from other offerings. Order and Quote Protocols The Exchange proposes to add a new section (i) and include the following introductory sentence, ‘‘The following order and quote protocols are available on BX.’’ Today, BX offers market participants an Order Entry order protocol and an SQF quote protocol. These fees currently exist on the fee schedule. The Exchange is not amending any pricing related to these protocols. The Exchange proposes to rename ‘‘Order Entry Port Fee’’ as ‘‘FIX Port Fee.’’ This description is more accurate as ‘‘FIX’’ is the name of the order entry protocol. A Participant may request an SQF Port or an SQF Purge Port, the price is $500 for either port. SQF is an interface that allows market makers to connect and send quotes, sweeps and auction responses into the Exchange. The SQF Purge port only receives and notifies of purge requests from the market maker. The proposal is to include a line item for each offering because a market participant may either select an SQF port or an SQF Purge Port and both are assessed the same $500 fee. The price does not vary. The Exchange separately lists these offerings on Nasdaq ISE, LLC. A separate line item will make clear that there are two options for this offering. The price of the SQF Purge Port is not being amended. The Exchange believes that grouping the available order and quote protocols together into their own subsection will provide greater transparency within its fee schedule as to the available protocols. Order and Execution Information The Exchange proposes to add a new section (ii) and add the following introductory sentence, ‘‘The following order and execution information is available to Participants.’’ The Exchange proposes to group the available order and execution information that is particular to a Participant’s executions on BX into its own subsection. Today, BX offers CTI, Order Entry DROP and E:\FR\FM\15MYN1.SGM 15MYN1 22564 Federal Register / Vol. 83, No. 94 / Tuesday, May 15, 2018 / Notices TradeInfo. The Exchange proposes to rename ‘‘Order Entry DROP’’ as ‘‘FIX DROP’’ for the reasons described above. Nasdaq ISE, LLC uses the term FIX DROP. The Exchange proposes to add the word ‘‘Interface’’ after ‘‘TradeInfo’’ to make clear that this particular offering is an interface. The Exchange proposes to relocate these current fees into section (ii). No changes are being made to pricing and these fees exist today within Section 3. Data Ports The Exchange proposes to add a new section (iii) and include the following information, ‘‘The following data ports fees apply in connection with data subscriptions pursuant to BX Rules at Chapter XV, Section 4. The below port fees do not apply if the subscription is delivered via multicast.’’ The following sentence is simply being relocated, ‘‘These ports are available to non-BX Participants and BX Participants.’’ The Exchange believes the addition of this sentence makes clear where the related applicable data fees can be located and when the fees for ports are charged. The Exchange notes that if the subscription is delivered via multicast, the port fee is not charged. There are multiple ways in which data can be communicated. Multicast refers to sending data across a network to several users as [sic] a time. Unicast on the other hand sends data across a network to a single recipient. Finally, TCP, which stands for Transmission Control Protocol and is also known as ‘‘TCP/IP’’ refers to the suite which includes the internet Protocol, provides host-to-host connectivity. Today, the Exchange requires a port when a Participant utilized Unicast and TCP/IP delivery, but does not required [sic] a port when a Participant selects multicast delivery. The Exchange believes this additional information will add more transparency to the fee schedule for Participants selecting data transmission options. The Exchange notes the current offerings for BX Depth and BX Top are being relocated within this section. No changes are being made to the fees. daltland on DSKBBV9HB2PROD with NOTICES Other Ports The Exchange proposes to adopt a new section (iv) entitled ‘‘Other Ports’’ to include Disaster Recovery Ports. Today, the Exchange offers Disaster Recovery Ports for all the ports reorganized into proposed subsections (i), (ii) and (iii). The Exchange is noting that these ports are available at no cost to make clear their availability. VerDate Sep<11>2014 20:27 May 14, 2018 Jkt 244001 III. Date of Effectiveness of the Proposed Rule Change and Timing for The Exchange believes that the Commission Action proposed rule change is consistent with Because the proposed rule change Section 6(b) of the Securities Exchange Act of 1934,4 in general, and furthers the does not (i) significantly affect the objectives of Section 6(b)(5) of the Act,5 protection of investors or the public interest; (ii) impose any significant in particular, in that it is designed to promote just and equitable principles of burden on competition; and (iii) become operative for 30 days from the date on trade, to remove impediments to and which it was filed, or such shorter time perfect the mechanism for a free and as the Commission may designate if open market and a national market consistent with the protection of system, and, in general, to protect investors and the public interest, the investors and the public interest, by providing greater transparency as to the proposed rule change has become order and execution information offered effective pursuant to Section 19(b)(3)(A) of the Act 7 and Rule 19b–4(f)(6) on BX. The Exchange’s proposal to 8 reorganize Section 3 and rename certain thereunder. A proposed rule change filed under offerings to conform to other Nasdaq Rule 19b–4(f)(6) 9 normally does not Affiliated Markets will provide clarity become operative for 30 days after the as to the offerings and uniformity in naming similar offerings. The Exchange date of filing. However, pursuant to Rule 19b–4(f)(6)(iii),10 the Commission believes that its new structure makes may designate a shorter time if such clear the differences in its offerings and action is consistent with the protection the availability of various options of investors and the public interest. The within each type of offering. The Exchange has asked the Commission to Exchange’s proposal is consistent with waive the 30-day operative delay so that the protection of investors and the the proposal may become operative public interest in that the proposal immediately upon filing. The Exchange provides greater transparency as to the offerings, the application of fees and the states that such waiver will allow it to update its rules immediately to provide availability of offerings which are more detailed and reorganized offered at no cost. The Exchange’s information regarding its offerings and proposal to define a port should also provide market participants with greater further the protection of investors and the public interest because it will insight into the terminology utilized provide greater transparency as to the within Section 3. offerings available to members. For this B. Self-Regulatory Organization’s reason, the Commission believes that Statement on Burden on Competition waiving the 30-day operative delay is consistent with the protection of In accordance with Section 6(b)(8) of investors and the public interest and, the Act,6 the Exchange does not believe therefore, the Commission designates that the proposed rule change will the proposed rule change to be operative impose any burden on intermarket or upon filing.11 intra-market competition that is not At any time within 60 days of the necessary or appropriate in furtherance filing of the proposed rule change, the of the purposes of the Act. The Exchange’s proposal does not impose an Commission summarily may temporarily suspend such rule change if undue burden on competition, rather it appears to the Commission that such the Exchange is seeking to provide action is necessary or appropriate in the greater transparency within its rules public interest, for the protection of with respect to the various order and investors, or otherwise in furtherance of execution information offered on BX. the purposes of the Act. If the The offerings are available to all Participants. The Exchange does not 7 15 U.S.C. 78s(b)(3)(A). intend to amend pricing, rather it 8 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– proposes to make clear the application 4(f)(6)(iii) requires the Exchange to give the of the current pricing. Commission written notice of the Exchange’s intent 2. Statutory Basis 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. 4 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). 6 15 U.S.C. 78f(b)(8). 5 15 PO 00000 Frm 00124 Fmt 4703 Sfmt 4703 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. 9 17 CFR 240.19b–4(f)(6). 10 17 CFR 240.19b–4(f)(6)(iii). 11 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). E:\FR\FM\15MYN1.SGM 15MYN1 Federal Register / Vol. 83, No. 94 / Tuesday, May 15, 2018 / Notices 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: daltland on DSKBBV9HB2PROD with NOTICES 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–2018–017 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–2018–017. 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–2018–017, and should be submitted on or before June 5, 2018. 12 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 20:27 May 14, 2018 Jkt 244001 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018–10252 Filed 5–14–18; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–83200; File No. SR– CboeBZX–2018–031] Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify Certain Routing Fees Related to its Equity Options Platform May 9, 2018. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on May 1, 2018, Cboe BZX Exchange, Inc. (the ‘‘Exchange’’ or ‘‘BZX’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II and III below, which Items have been prepared by the Exchange. The Exchange has designated the proposed rule change as one establishing or changing a member due, fee, or other charge imposed by the Exchange under Section 19(b)(3)(A)(ii) of the Act 3 and Rule 19b–4(f)(2) thereunder,4 which renders the proposed rule change effective upon filing with the Commission. 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 filed a proposal to modify certain Routing Fees related to its equity options platform. The text of the proposed rule change is available at the Exchange’s website at www.markets.cboe.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 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(ii). 4 17 CFR 240.19b–4(f)(2). 2 17 PO 00000 Frm 00125 Fmt 4703 Sfmt 4703 22565 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 parts 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 its fee schedule for its equity options platform (‘‘BZX Options’’) to make certain changes to the following tiers: (i) Quoting Incentive Program (‘‘QIP’’) Tier 2 under footnote 5; (ii) Non-Customer Non-Penny Pilot Take Volume Tiers 1 and 2 under footnote 13; and (iii) NonCustomer Penny Pilot Take Volume Tiers 1 and 3 under footnote 3, effective May 1, 2018. QIP Volume Tier 2 The Exchange currently offers two QIP Tiers under footnote 5, which provide an additional rebate ranging from $0.02 to $0.04 per contract for qualifying Market Maker 5 orders that add liquidity in: (i) Penny Pilot Securities that yield fee code PM and; (ii) Non-Penny Pilot Securities that yield fee code NM. The additional rebate per contract is for an order that adds liquidity to BZX Options in options classes in which a Member is a Market Maker registered pursuant to Exchange Rule 22.2. The Exchange now proposes to amend the required criteria for QIP Tier 2. Particularly, under current Tier 2, a Member may receive an additional rebate of $0.04 per contract where they have an ADAV 6 in Market Maker orders greater than or equal to 0.35% of average OCV.7 The Exchange proposes to amend the required criteria for Tier 2 to now require that the Member have an ADAV in Market Maker orders greater than or equal to 1.40% of average OCV. 5 A Market Maker must be registered with BZX Options in an average of 20% or more of the associated options series in a class in order to qualify for QIP rebates for that class. 6 ‘‘ADAV’’ means average daily added volume calculated as the number of contracts added per day. See Exchange Fee Schedule. 7 ‘‘OCV’’ means the total equity and ETF options volume that clears in the Customer range at the Options Clearing Corporation (‘‘OCC’’) for the month for which the fees apply, excluding volume on any day that the Exchange experiences an Exchange System Disruption and on any day with a scheduled early market close. See Exchange Fee Schedule. E:\FR\FM\15MYN1.SGM 15MYN1

Agencies

[Federal Register Volume 83, Number 94 (Tuesday, May 15, 2018)]
[Notices]
[Pages 22563-22565]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-10252]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83192; File No. SR-BX-2018-017]


Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing 
and Immediate Effectiveness of a Proposed Rule Change To Reorganize and 
Amend Chapter XV, Section 3, entitled BX Options Market--Ports and 
Other Services

May 9, 2018.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on April 27, 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 reorganize and amend Chapter XV, Section 
3, entitled ``BX Options Market--Ports and Other Services.''
    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.

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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to reorganize and amend Chapter XV, Section 
3, entitled ``BX Options Market--Ports and Other Services.'' The 
Exchange offers various services across its 6 affiliated options 
markets, BX, The Nasdaq Options Market LLC, Nasdaq Phlx LLC, Nasdaq 
ISE, LLC, Nasdaq GEMX, LLC and Nasdaq MRX, LLC (``Nasdaq Affiliated 
Markets'').\3\ The Exchange desires to rename services to conform the 
naming of the offerings across all Nasdaq Affiliated Markets. The 
Exchange proposes to reorganize Section 3 to list order and quote 
protocols first, order and execution offerings next, followed by data 
ports and other ports as the last section. The Exchange proposes to 
list data offerings which are offered at no cost. The Exchange believes 
that aligning its offerings, where relevant, across the Nasdaq 
Affiliated Markets will provide more transparency as to the offerings 
for market participants.
---------------------------------------------------------------------------

    \3\ The Exchange will file a similar rule change on each Nasdaq 
Affiliated Market to conform the offerings by amending naming to 
make them similar and delineating each offering on the fee schedule 
where no fee is assessed.
---------------------------------------------------------------------------

Ports
    The Exchange proposes to define a port within Section 3 to provide 
additional clarity to the fee schedule as ``a logical connection or 
session that enables a market participant to send inbound messages and/
or receive outbound messages from the Exchange using various 
communication protocols.'' The Exchange believes this definition will 
assist Participants in distinguishing ports from other offerings.
Order and Quote Protocols
    The Exchange proposes to add a new section (i) and include the 
following introductory sentence, ``The following order and quote 
protocols are available on BX.'' Today, BX offers market participants 
an Order Entry order protocol and an SQF quote protocol. These fees 
currently exist on the fee schedule. The Exchange is not amending any 
pricing related to these protocols. The Exchange proposes to rename 
``Order Entry Port Fee'' as ``FIX Port Fee.'' This description is more 
accurate as ``FIX'' is the name of the order entry protocol. A 
Participant may request an SQF Port or an SQF Purge Port, the price is 
$500 for either port. SQF is an interface that allows market makers to 
connect and send quotes, sweeps and auction responses into the 
Exchange. The SQF Purge port only receives and notifies of purge 
requests from the market maker. The proposal is to include a line item 
for each offering because a market participant may either select an SQF 
port or an SQF Purge Port and both are assessed the same $500 fee. The 
price does not vary. The Exchange separately lists these offerings on 
Nasdaq ISE, LLC. A separate line item will make clear that there are 
two options for this offering. The price of the SQF Purge Port is not 
being amended.
    The Exchange believes that grouping the available order and quote 
protocols together into their own subsection will provide greater 
transparency within its fee schedule as to the available protocols.
Order and Execution Information
    The Exchange proposes to add a new section (ii) and add the 
following introductory sentence, ``The following order and execution 
information is available to Participants.'' The Exchange proposes to 
group the available order and execution information that is particular 
to a Participant's executions on BX into its own subsection. Today, BX 
offers CTI, Order Entry DROP and

[[Page 22564]]

TradeInfo. The Exchange proposes to rename ``Order Entry DROP'' as 
``FIX DROP'' for the reasons described above. Nasdaq ISE, LLC uses the 
term FIX DROP. The Exchange proposes to add the word ``Interface'' 
after ``TradeInfo'' to make clear that this particular offering is an 
interface. The Exchange proposes to relocate these current fees into 
section (ii). No changes are being made to pricing and these fees exist 
today within Section 3.

Data Ports

    The Exchange proposes to add a new section (iii) and include the 
following information, ``The following data ports fees apply in 
connection with data subscriptions pursuant to BX Rules at Chapter XV, 
Section 4. The below port fees do not apply if the subscription is 
delivered via multicast.'' The following sentence is simply being 
relocated, ``These ports are available to non-BX Participants and BX 
Participants.'' The Exchange believes the addition of this sentence 
makes clear where the related applicable data fees can be located and 
when the fees for ports are charged. The Exchange notes that if the 
subscription is delivered via multicast, the port fee is not charged. 
There are multiple ways in which data can be communicated. Multicast 
refers to sending data across a network to several users as [sic] a 
time. Unicast on the other hand sends data across a network to a single 
recipient. Finally, TCP, which stands for Transmission Control Protocol 
and is also known as ``TCP/IP'' refers to the suite which includes the 
internet Protocol, provides host-to-host connectivity. Today, the 
Exchange requires a port when a Participant utilized Unicast and TCP/IP 
delivery, but does not required [sic] a port when a Participant selects 
multicast delivery. The Exchange believes this additional information 
will add more transparency to the fee schedule for Participants 
selecting data transmission options. The Exchange notes the current 
offerings for BX Depth and BX Top are being relocated within this 
section. No changes are being made to the fees.
Other Ports
    The Exchange proposes to adopt a new section (iv) entitled ``Other 
Ports'' to include Disaster Recovery Ports. Today, the Exchange offers 
Disaster Recovery Ports for all the ports reorganized into proposed 
subsections (i), (ii) and (iii). The Exchange is noting that these 
ports are available at no cost to make clear their availability.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Securities Exchange Act of 1934,\4\ in 
general, and furthers the objectives of Section 6(b)(5) of the Act,\5\ 
in particular, in that it is designed to promote just and equitable 
principles of trade, to remove impediments to and perfect the mechanism 
for a free and open market and a national market system, and, in 
general, to protect investors and the public interest, by providing 
greater transparency as to the order and execution information offered 
on BX. The Exchange's proposal to reorganize Section 3 and rename 
certain offerings to conform to other Nasdaq Affiliated Markets will 
provide clarity as to the offerings and uniformity in naming similar 
offerings. The Exchange believes that its new structure makes clear the 
differences in its offerings and the availability of various options 
within each type of offering. The Exchange's proposal is consistent 
with the protection of investors and the public interest in that the 
proposal provides greater transparency as to the offerings, the 
application of fees and the availability of offerings which are offered 
at no cost. The Exchange's proposal to define a port should also 
provide market participants with greater insight into the terminology 
utilized within Section 3.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act,\6\ the Exchange does 
not believe that the proposed rule change will impose any burden on 
intermarket or intra-market competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. The Exchange's 
proposal does not impose an undue burden on competition, rather the 
Exchange is seeking to provide greater transparency within its rules 
with respect to the various order and execution information offered on 
BX. The offerings are available to all Participants. The Exchange does 
not intend to amend pricing, rather it proposes to make clear the 
application of the current pricing.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------

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 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 if consistent with the protection of investors 
and the public interest, the proposed rule change has become effective 
pursuant to Section 19(b)(3)(A) of the Act \7\ and Rule 19b-4(f)(6) 
thereunder.\8\
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 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.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \9\ normally 
does not become operative for 30 days after the date of filing. 
However, pursuant to Rule 19b-4(f)(6)(iii),\10\ the Commission may 
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 filing. The Exchange states that 
such waiver will allow it to update its rules immediately to provide 
more detailed and reorganized information regarding its offerings and 
further the protection of investors and the public interest because it 
will provide greater transparency as to the offerings available to 
members. For this reason, the Commission believes that waiving the 30-
day operative delay is consistent with the protection of investors and 
the public interest and, therefore, the Commission designates the 
proposed rule change to be operative upon filing.\11\
---------------------------------------------------------------------------

    \9\ 17 CFR 240.19b-4(f)(6).
    \10\ 17 CFR 240.19b-4(f)(6)(iii).
    \11\ 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

[[Page 22565]]

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-2018-017 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-2018-017. 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-2018-017, and should be submitted on 
or before June 5, 2018.
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    \12\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-10252 Filed 5-14-18; 8:45 am]
 BILLING CODE 8011-01-P
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