Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Relocate the Exchange's Rules Pertaining to Co-Location and Direct Connectivity, 31241-31243 [2018-14277]
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Federal Register / Vol. 83, No. 128 / Tuesday, July 3, 2018 / Notices
payment obligations with a high degree
of confidence under a wide range of
foreseeable stress scenarios that
includes, but is not limited to, the
default of the participant family that
would generate the largest aggregate
payment of obligation for the covered
clearing agency in extreme but plausible
conditions.’’
As described above, the currently
proposed credit facility would provide
OCC with a readily available liquidity
resource that would enable OCC to
continue to meet its respective
obligations in a timely fashion in the
event of a Member default, thereby
helping to contain losses and liquidity
pressures from that default.
Additionally, the currently proposed
credit facility would allow OCC to avoid
a gap in liquidity coverage and better
allow OCC to continually maintain
sufficient liquidity resources. Therefore,
the Commission believes that the
proposal is consistent with Rule 17Ad–
22(e)(7)(i).
Rule 17Ad–22(e)(7)(ii) under the Act
requires OCC to establish, implement,
maintain and enforce written policies
and procedures reasonably designed to
hold qualifying liquid resources
sufficient to satisfy payment obligations
owed to clearing members.47 Rule
17Ad–22(a)(14) of the Act defines
‘‘qualifying liquid resources’’ to include,
among other things, lines of credit
without material adverse change
provisions, that are readily available
and convertible into cash.48 As
described above, the currently proposed
credit facility would permit OCC to
enter into a single credit facility
designed to help ensure that OCC has
sufficient, readily-available qualifying
liquid resources to meet the cash
settlement obligations of its largest
family of affiliated members. Therefore,
the Commission believes that the
proposal is consistent with Rule 17Ad–
22(e)(7)(ii).
VI. Conclusion
sradovich on DSK3GMQ082PROD with NOTICES
It is therefore noticed, pursuant to
Section 806(e)(1)(I) of the Clearing
Supervision Act, that the Commission
does not object to the advance notice
SR–OCC–2018–802 and OCC can and
hereby is authorized to implement the
change as of the date of this notice.
By the Commission.
Brent J. Fields,
Secretary.
[FR Doc. 2018–14233 Filed 7–2–18; 8:45 am]
BILLING CODE 8011–01–P
47 17
48 17
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83535; File No. SR–BX–
2018–024]
Self-Regulatory Organizations; Nasdaq
BX, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Relocate the
Exchange’s Rules Pertaining to CoLocation and Direct Connectivity
June 28, 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 June 13,
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 relocate the
Exchange’s rules pertaining to colocation and direct connectivity, which
are presently at Rules 7034 and 7051, to
Sections 1 and 2, respectively, under a
new General 8 (‘‘Connectivity’’) heading
within the Exchange’s new rulebook
shell, entitled ‘‘General Equity and
Options Rules.’’ The Exchange also
proposes to correct an error in Rule
7051(b).
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.
CFR 240.17Ad–22(e)(7)(ii).
CFR 240.17Ad–22(a)(14).
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1 15
2 17
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Fmt 4703
Sfmt 4703
31241
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to relocate its
rules governing co-location and direct
connectivity services, which presently
comprise Rules 7034 and 7051,
respectively. The Exchange proposes to
establish, within its new rulebook
shell,3 a new General 8 heading, entitled
‘‘Connectivity,’’ to renumber Rule 7034
as Section 1 thereunder, and to
renumber Rule 7051 as Section 2
thereunder. The Exchange furthermore
proposes to amend Rules 7011, 7025,
7030, and Options Rules Chapter XV to
update cross references therein to Rules
7034 and 7051, as applicable. The
Exchange also proposes to update
internal cross-references in the
renumbered Rules.
The Exchange considers it appropriate
to relocate these Rules to better organize
its Rulebook. The other Affiliated
Exchanges intend to propose similar
reorganizations of their co-location and
direct connectivity rules so that these
rules will be harmonized among all of
the Affiliated Exchanges.
The relocation of the co-location and
direct connectivity rules is part of the
Exchange’s continued effort to promote
efficiency and conformity of its
processes with those of its Affiliated
Exchanges. The Exchange believes that
moving the co-location and direct
connectivity rules to their new location
will facilitate the use of the Rulebook by
Members of the Exchange who are
members of other Affiliated Exchanges.
In addition to the above, the Exchange
proposes to correct an error in Rule
7051(b), entitled ‘‘Direct Circuit
Connection to Third Party Services.’’
The Exchange recently amended Rule
7051 in an attempt to harmonize it with
the corresponding rules of the other
Affiliated Exchanges.4 However, the
Exchange recently discovered one
remaining unintended discrepancy that
it now proposes to remedy. The other
Affiliated Exchanges waive installation
and ongoing monthly fees for 10Gb
Ultra and 1 GB Ultra direct circuit
3 Recently, the Exchange added a shell structure
to its Rulebook with the purpose of improving
efficiency and readability and to align its rules
closer to those of its five sister exchanges: The
Nasdaq Stock Market, LLC; Nasdaq PHLX LLC;
Nasdaq ISE, LLC; Nasdaq GEMX, LLC; and Nasdaq
MRX, LLC (together with BX, the ‘‘Affiliated
Exchanges’’). See Securities Exchange Act Release
No. 82174 (November 29, 2017), 82 FR 57492
(December 5, 2017) (SR–BX–2017–054).
4 See Securities Exchange Act Release No. 34–
82628 (Feb. 5, 2018). 83 FR 5818 (Feb. 9, 2018) (SR–
BX–2018–006).
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Federal Register / Vol. 83, No. 128 / Tuesday, July 3, 2018 / Notices
connections to third party services for
the first two connections per client to
UTP SIP feeds only (UQDF and UTDF).5
The Exchange’s Rule does not presently
provide for such waivers; it now
proposes to amend the Rule so that it
does so. With this amendment, Rule
7051(b) will be substantially the same as
the corresponding rules of the other
Affiliated Exchanges.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,6 in general, and furthers the
objectives of Section 6(b)(5) of the Act,7
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
improving the way its Rulebook is
organized, providing ease of reference in
locating co-location and direct
connectivity rules, and harmonizing the
Exchange’s Rules with those of the other
Affiliated Exchanges. As previously
stated, the proposed Rule relocation is
non-substantive.
The Exchange also believes that it is
in the interests of investors and the
public to remedy unintended errors in
the Exchange’s rules. Investors and the
public have clear interests in the
Exchange maintaining an accurate
rulebook and schedule of fees.
sradovich on DSK3GMQ082PROD with NOTICES
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 intermarket or intramarket competition that is not necessary
or appropriate in furtherance of the
purposes of the Act. The proposed
changes to relocate the Exchange’s rules
do not impose a burden on competition
because, as previously stated, they (i)
are of a non-substantive nature, (ii) are
intended to harmonize the Exchange’s
rules with those of its Affiliated
Exchanges, and (iii) are intended to
organize the Rulebook in a way that it
will ease the Members’ navigation and
reading of the rules across the Affiliated
Exchanges. Likewise, the Exchange’s
proposal to amend Rule 7051(b) will not
burden competition because it merely
corrects an unintended error and
renders the Exchange’s fees identical to
5 See Nasdaq Rule 7051(b), Phlx Pricing Schedule
Section XI(b), Nasdaq ISE Schedule of Fees Section
VI.G, Nasdaq GEMX Schedule of Fees Section IV.D
[sic], Nasdaq MRX Schedule of Fees Section VI.C.
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
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17:07 Jul 02, 2018
Jkt 244001
those that the other Affiliated Exchanges
charge.
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) of the Act 8 and Rule 19b–
4(f)(6) thereunder.9
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 10 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 11
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has
requested that the Commission waive
the 30-day operative delay so that the
proposed rule change may become
operative upon filing. The proposed rule
change merely relocates the Exchange’s
co-location and direct connectivity
rules, updates rule cross-references, and
corrects unintended errors from a
previous proposed rule change.12
Accordingly, the Commission believes
that waiver of the 30-day operative
delay is consistent with the protection
of investors and the public interest and
hereby waives the operative delay and
designates the proposed rule change
operative upon filing.13
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its intent to
file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
10 17 CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii).
12 See supra notes 4–5 and accompanying text.
13 For purposes only of waiving the 30-day
operative delay, the Commission also has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
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8 15
9 17
Frm 00126
Fmt 4703
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it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
change 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–
BX–2018–024 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–2018–024. 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
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Federal Register / Vol. 83, No. 128 / Tuesday, July 3, 2018 / Notices
to make available publicly. All
submissions should refer to File
Number SR–BX–2018–024, and should
be submitted on or before July 24, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–14277 Filed 7–2–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83531; File No. SR–ISE–
2018–57]
Self-Regulatory Organizations; Nasdaq
ISE LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend the Penny
Pilot Program
June 28, 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 June 25,
2018, Nasdaq ISE LLC (‘‘ISE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘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.
sradovich on DSK3GMQ082PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
rules to extend a pilot program to quote
and to trade certain options classes in
penny increments (‘‘Penny Pilot
Program’’).
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
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
17:07 Jul 02, 2018
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Under the Penny Pilot Program, the
minimum price variation for all
participating options classes, except for
the Nasdaq-100 Index Tracking Stock
(‘‘QQQQ’’), the SPDR S&P 500 Exchange
Traded Fund (‘‘SPY’’) and the iShares
Russell 2000 Index Fund (‘‘IWM’’), is
$0.01 for all quotations in options series
that are quoted at less than $3 per
contract and $0.05 for all quotations in
options series that are quoted at $3 per
contract or greater. QQQQ, SPY and
IWM are quoted in $0.01 increments for
all options series. The Penny Pilot
Program is currently scheduled to
expire on June 30, 2018.3 The Exchange
proposes to extend the Penny Pilot
Program through December 31, 2018,
and to provide a revised date for adding
replacement issues to the Penny Pilot
Program. The Exchange proposes that
any Penny Pilot Program issues that
have been delisted may be replaced on
the second trading day following July 1,
2018. The replacement issues will be
selected based on trading activity for the
most recent six month period excluding
the month immediately preceding the
replacement (i.e., beginning December
1, 2017, and ending May 31, 2018). This
filing does not propose any substantive
changes to the Penny Pilot Program: All
classes currently participating will
remain the same and all minimum
increments will remain unchanged. The
Exchange believes the benefits to public
customers and other market participants
who will be able to express their true
prices to buy and sell options have been
demonstrated to outweigh any increase
in quote traffic.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder that
are applicable to a national securities
exchange, and, in particular, with the
requirements of Section 6(b) of the Act.4
Specifically, the proposed rule change is
consistent with Section 6(b)(5) of the
3 See Exchange Act Release No. 82357 (December
19, 2017), 82 FR 61065 (December 26, 2017) (SR–
ISE–2017–107).
4 15 U.S.C. 78f(b).
14 17
VerDate Sep<11>2014
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.
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31243
Act,5 because it is designed to promote
just and equitable principles of trade,
remove impediments to and perfect the
mechanisms of a free and open market
and a national market system and, in
general, to protect investors and the
public interest. In particular, the
proposed rule change, which extends
the Penny Pilot Program for an
additional six months, will enable
public customers and other market
participants to express their true prices
to buy and sell options to the benefit of
all market participants.
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
intramarket competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. Specifically,
the Exchange believes that, by extending
the expiration of the Penny Pilot
Program, the proposed rule change will
allow for further analysis of the Penny
Pilot Program and a determination of
how the Penny Pilot Program should be
structured in the future. In doing so, the
proposed rule change will also serve to
promote regulatory clarity and
consistency, thereby reducing burdens
on the marketplace and facilitating
investor protection.
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
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 7 and Rule
19b–4(f)(6) thereunder.8 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, 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)
5 15
U.S.C. 78f(b)(5).
U.S.C. 78f(b)(8).
7 15 U.S.C. 78s(b)(3)(A)(iii).
8 17 CFR 240.19b–4(f)(6).
6 15
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]]>Agencies
[Federal Register Volume 83, Number 128 (Tuesday, July 3, 2018)]
[Notices]
[Pages 31241-31243]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-14277]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-83535; File No. SR-BX-2018-024]
Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Relocate the
Exchange's Rules Pertaining to Co-Location and Direct Connectivity
June 28, 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 June 13, 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 relocate the Exchange's rules pertaining
to co-location and direct connectivity, which are presently at Rules
7034 and 7051, to Sections 1 and 2, respectively, under a new General 8
(``Connectivity'') heading within the Exchange's new rulebook shell,
entitled ``General Equity and Options Rules.'' The Exchange also
proposes to correct an error in Rule 7051(b).
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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to relocate its rules governing co-location
and direct connectivity services, which presently comprise Rules 7034
and 7051, respectively. The Exchange proposes to establish, within its
new rulebook shell,\3\ a new General 8 heading, entitled
``Connectivity,'' to renumber Rule 7034 as Section 1 thereunder, and to
renumber Rule 7051 as Section 2 thereunder. The Exchange furthermore
proposes to amend Rules 7011, 7025, 7030, and Options Rules Chapter XV
to update cross references therein to Rules 7034 and 7051, as
applicable. The Exchange also proposes to update internal cross-
references in the renumbered Rules.
---------------------------------------------------------------------------
\3\ Recently, the Exchange added a shell structure to its
Rulebook with the purpose of improving efficiency and readability
and to align its rules closer to those of its five sister exchanges:
The Nasdaq Stock Market, LLC; Nasdaq PHLX LLC; Nasdaq ISE, LLC;
Nasdaq GEMX, LLC; and Nasdaq MRX, LLC (together with BX, the
``Affiliated Exchanges''). See Securities Exchange Act Release No.
82174 (November 29, 2017), 82 FR 57492 (December 5, 2017) (SR-BX-
2017-054).
---------------------------------------------------------------------------
The Exchange considers it appropriate to relocate these Rules to
better organize its Rulebook. The other Affiliated Exchanges intend to
propose similar reorganizations of their co-location and direct
connectivity rules so that these rules will be harmonized among all of
the Affiliated Exchanges.
The relocation of the co-location and direct connectivity rules is
part of the Exchange's continued effort to promote efficiency and
conformity of its processes with those of its Affiliated Exchanges. The
Exchange believes that moving the co-location and direct connectivity
rules to their new location will facilitate the use of the Rulebook by
Members of the Exchange who are members of other Affiliated Exchanges.
In addition to the above, the Exchange proposes to correct an error
in Rule 7051(b), entitled ``Direct Circuit Connection to Third Party
Services.'' The Exchange recently amended Rule 7051 in an attempt to
harmonize it with the corresponding rules of the other Affiliated
Exchanges.\4\ However, the Exchange recently discovered one remaining
unintended discrepancy that it now proposes to remedy. The other
Affiliated Exchanges waive installation and ongoing monthly fees for
10Gb Ultra and 1 GB Ultra direct circuit
[[Page 31242]]
connections to third party services for the first two connections per
client to UTP SIP feeds only (UQDF and UTDF).\5\ The Exchange's Rule
does not presently provide for such waivers; it now proposes to amend
the Rule so that it does so. With this amendment, Rule 7051(b) will be
substantially the same as the corresponding rules of the other
Affiliated Exchanges.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 34-82628 (Feb. 5,
2018). 83 FR 5818 (Feb. 9, 2018) (SR-BX-2018-006).
\5\ See Nasdaq Rule 7051(b), Phlx Pricing Schedule Section
XI(b), Nasdaq ISE Schedule of Fees Section VI.G, Nasdaq GEMX
Schedule of Fees Section IV.D [sic], Nasdaq MRX Schedule of Fees
Section VI.C.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\6\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\7\ 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 improving the way its Rulebook is organized, providing ease of
reference in locating co-location and direct connectivity rules, and
harmonizing the Exchange's Rules with those of the other Affiliated
Exchanges. As previously stated, the proposed Rule relocation is non-
substantive.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange also believes that it is in the interests of investors
and the public to remedy unintended errors in the Exchange's rules.
Investors and the public have clear interests in the Exchange
maintaining an accurate rulebook and schedule of fees.
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 intermarket or intra-market competition that is
not necessary or appropriate in furtherance of the purposes of the Act.
The proposed changes to relocate the Exchange's rules do not impose a
burden on competition because, as previously stated, they (i) are of a
non-substantive nature, (ii) are intended to harmonize the Exchange's
rules with those of its Affiliated Exchanges, and (iii) are intended to
organize the Rulebook in a way that it will ease the Members'
navigation and reading of the rules across the Affiliated Exchanges.
Likewise, the Exchange's proposal to amend Rule 7051(b) will not burden
competition because it merely corrects an unintended error and renders
the Exchange's fees identical to those that the other Affiliated
Exchanges charge.
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) of the Act \8\ and Rule 19b-
4(f)(6) thereunder.\9\
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \10\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \11\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has requested that the Commission waive the 30-day operative delay so
that the proposed rule change may become operative upon filing. The
proposed rule change merely relocates the Exchange's co-location and
direct connectivity rules, updates rule cross-references, and corrects
unintended errors from a previous proposed rule change.\12\
Accordingly, the Commission believes that waiver of the 30-day
operative delay is consistent with the protection of investors and the
public interest and hereby waives the operative delay and designates
the proposed rule change operative upon filing.\13\
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\10\ 17 CFR 240.19b-4(f)(6).
\11\ 17 CFR 240.19b-4(f)(6)(iii).
\12\ See supra notes 4-5 and accompanying text.
\13\ For purposes only of waiving the 30-day operative delay,
the Commission also has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule change 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-2018-024 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-2018-024. 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
[[Page 31243]]
to make available publicly. All submissions should refer to File Number
SR-BX-2018-024, and should be submitted on or before July 24, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-14277 Filed 7-2-18; 8:45 am]
BILLING CODE 8011-01-P
