Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Eliminate the Market Quality Program (Rule 5950), 48354-48356 [2018-20660]
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48354
Federal Register / Vol. 83, No. 185 / Monday, September 24, 2018 / Notices
continuing to provide an audit trail for
orders submitted through the FBMS FIX
interface.
The Exchange notes that while it is
permitting a broader group of market
participants to have access to FBMS, in
this case with the FBMS FIX Interface,
the Exchange does not believe that this
amendment raises concern with respect
to the quality of information received by
the Floor Broker because the Floor
Broker remains responsible for ensuring
the order is in the proper form and
contains the appropriate information for
submission. As noted herein, members
and non-members would not be able to
send orders directly for execution into
the matching engine through the FBMS
FIX Interface. The Exchange believes
that this expansion only seeks to
provide a Floor Broker with an order
that is available for representation
without the need for the Floor Broker to
manually enter the order into FBMS.
amozie on DSK3GDR082PROD with NOTICES1
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’s proposal offers market
participants the ability to send an order
via the FBMS FIX Interface to a
particular Floor Broker. The Exchange
believes that these proposed
amendments do not create a burden on
inter-market competition because all
members and non-members may send
orders to a Floor Broker via the FBMS
FIX Interface. As is the case today, any
member or non-member may contact a
Floor Broker to submit an order to the
Phlx trading floor. The Exchange notes
that the proposed rule creates a new
modality for member and non-members
to send orders to a Floor Broker for
representation. Floor Brokers conduct
an agency business. Other market
participants that conduct a market
making business have varied workflows
as compared to a Floor Broker and
would not benefit from a similar FBMS
FIX Interface. The Exchange believes
that this new interface does not create
an intra-market burden on competition
for these reasons.
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.
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17:40 Sep 21, 2018
Jkt 244001
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 9 and Rule 19b–
4(f)(6) thereunder.10
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is: (i) Necessary or appropriate in
the public interest; (ii) for the protection
of investors; or (iii) otherwise in
furtherance of the purposes of the Act.
If the Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
Phlx–2018–58 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–Phlx–2018–58. 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
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). As required under Rule
19b–4(f)(6)(iii), the Exchange provided the
Commission with written notice of its intent to file
the proposed rule change, along with a brief
description and the text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission.
10 17
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Fmt 4703
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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–Phlx–2018–58 and should
be submitted on or before October
15,2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–20659 Filed 9–21–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84179; File No. SR–
Nasdaq–2018–074]
Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Eliminate
the Market Quality Program (Rule 5950)
September 18, 2018.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on
September 7, 2018, The Nasdaq Stock
Market LLC (‘‘Nasdaq’’ 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
11 17
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
E:\FR\FM\24SEN1.SGM
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Federal Register / Vol. 83, No. 185 / Monday, September 24, 2018 / Notices
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 eliminate
the Market Quality Program at Rule
5950. The text of the proposed rule
change is available on the Exchange’s
website at https://
nasdaq.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
amozie on DSK3GDR082PROD with NOTICES1
1. Purpose
The Exchange proposes to eliminate
its Market Quality Program (‘‘MQP’’)
and delete corresponding Rule 5950.
The Exchange established the MQP in
2013 4 to promote market quality in
certain securities listed on Nasdaq
(‘‘MQP Securities’’), including by
providing financial incentives to market
makers in MQP Securities (‘‘MQP
Market Makers’’) to maintain certain
quoting and liquidity standards for
them.
The MQP is designed to be a one year
pilot program that is set to commence if
and when certain conditions are
satisfied: (i) The Exchange’s acceptance
of an MQP Company,5 on behalf of an
MQP Security; and (ii) the entry of a
relevant MQP Market Maker into the
Program. To date, however, neither of
these conditions for the commencement
of the MQP have occurred despite
efforts by the Exchange over time to
4 See Securities Exchange Act Release No. 74580
(March 25, 2015), 80 FR 17126 (March 31, 2015)
(SR–NASDAQ–2015–025) (reducing MQP fees to
MQP Market Makers).
5 The term ‘‘MQP Company’’ is defined in Rule
5950(e)(5) as the trust or company housing the
Exchange Traded Fund (‘‘ETF’’) or, if the ETF is not
a series of a trust or company, then the ETF itself.
VerDate Sep<11>2014
17:40 Sep 21, 2018
Jkt 244001
make the MQP more enticing to market
makers.6 Because the MQP has yet to
even satisfy the necessary preconditions for launching its pilot
period, neither the Exchange nor the
Commission has been able to assess
whether or to what extent the Program
is successful.
At the Commission’s suggestion and
pursuant to its general initiative to end
pilot programs that have failed to
achieve their stated objectives, the
Exchange is now proposing to eliminate
the MQP and delete Rule 5950, which
comprises the Program. The Exchange
notes that it plans to develop a
replacement market quality program in
the future that it hopes will be more
successful in attracting market maker
interest than the existing Program.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,7 in general, and furthers the
objectives of Section 6(b)(5) of the Act,8
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. The
Exchange believes that it is consistent
with the Act to eliminate the MQP
because the Exchange has limited
resources available to it to devote to the
operation of special programs like MQP
and as such, it is reasonable and
equitable for the Exchange to allocate
those resources to those programs that
are effective and away from those
programs that are ineffective. The
Exchange believes that the objectives of
the MQP would best be served through
a re-design of the program at a future
date.
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 notes that the MQP is not and
has not ever been utilized and, as such,
6 See Securities Exchange Act Release No. 69195
(March 20, 2013), 78 FR 18393 (March 26, 2013)
(SR–NASDAQ–2012–137) (order granting approval
of Market Quality Program) (SR–NASDAQ–2012–
137) (‘‘MQP order’’). See also Securities Exchange
Act Release No. 68515 (December 21, 2012), 77 FR
77141 (December 31, 2012) (SR–NASDAQ–2012–
137) (notice of filing Market Quality Program as
pilot, with extensive description of program)
(‘‘MQP proposal’’).
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00082
Fmt 4703
Sfmt 4703
48355
the elimination of the Program will have
no impact on competition whatsoever.
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 9 and Rule
19b–4(f)(6) thereunder.10 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)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.11
A proposed rule change filed under
Rule 19b–4(f)(6) 12 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),13 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 waiver
of the 30-day delayed operative date is
consistent with the protection of
investors and the public interest
because the MQP program has never
been utilized and there is no reason for
such a delay. The Commission agrees.
Accordingly, the Commission hereby
waives the 30-day operative delay and
designates the proposed rule change
operative upon filing.14
9 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii). As required under
Rule 19 b–4(f)(6)(iii), the Exchange provided the
Commission with written notice of its intent to file
the proposed rule change, along with a brief
description and 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.
12 17 CFR 240.19b–4(f)(6).
13 17 CFR 240.19b–4(f)(6)(iii).
14 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
10 17
E:\FR\FM\24SEN1.SGM
Continued
24SEN1
48356
Federal Register / Vol. 83, No. 185 / Monday, September 24, 2018 / Notices
At any time within 60 days of the
filing of such proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B) 15 of the Act 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:
amozie on DSK3GDR082PROD with NOTICES1
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–
Nasdaq–2018–074 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–Nasdaq–2018–074. 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
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
15 15 U.S.C. 78s(b)(2)(B).
VerDate Sep<11>2014
17:40 Sep 21, 2018
Jkt 244001
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–Nasdaq–2018–074, and
should be submitted on or before
October 15, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–20660 Filed 9–21–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84194; File No. SR–CTA/
CQ–2018–03]
Consolidated Tape Association; Notice
of Filing and Immediate Effectiveness
of the Twenty-Fourth Charges
Amendment to the Second
Restatement of the CTA Plan and the
Fifteenth Charges Amendment to the
Restated CQ Plan
September 18, 2018.
Pursuant to Section 11A of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 608 thereunder,2
notice is hereby given that on August
27, 2018, the Consolidated Tape
Association (‘‘CTA’’) Plan participants
(‘‘Participants’’) 3 filed with the
Securities and Exchange Commission
(‘‘Commission’’) a proposal to amend
the Second Restatement of the CTA Plan
and the Restated CQ Plan (‘‘Plans’’). The
amendment represents the twentyfourth Charges Amendment to the CTA
Plan and the fifteenth Charges
Amendment to the CQ Plan
(‘‘Amendments’’). The Participants seek
to amend the Plans’ fee schedules
(applicable to Network A and Network
B) to rescind the changes made to the
Non-Display Use and the access fee
16 17
CFR 200.30–3(a)(12).
U.S.C. 78k–1.
2 17 CFR 242.608.
3 The Participants are: Cboe BYX Exchange, Inc.;
Cboe BZX Exchange, Inc.; Cboe EDGA Exchange,
Inc.; Cboe EDGX Exchange, Inc.; Cboe Exchange,
Inc.; Chicago Stock Exchange, Inc.; Financial
Industry Regulatory Authority, Inc.; Investors’
Exchange LLC; Nasdaq BX, Inc.; Nasdaq ISE, LLC;
Nasdaq PHLX Inc.; The Nasdaq Stock Market LLC;
New York Stock Exchange LLC; NYSE American
LLC; NYSE Arca, Inc.; NYSE National, Inc.
1 15
PO 00000
Frm 00083
Fmt 4703
Sfmt 4703
schedules adopted pursuant to
amendments filed in October 2017
(‘‘2017 Amendments’’).4 As a result of
the Participants’ decision to rescind the
2017 Amendments, the Participants
believe that the stay order issued by the
Commission in connection with the
2017 Amendments and the briefing
schedule set therein are now moot.5
Pursuant to Rule 608(b)(3) under
Regulation NMS,6 the Participants
designate the Amendments as
establishing or changing a fee or other
charge collected on their behalf in
connection with access to, or use of, the
facilities contemplated by the Plans. As
a result, the Amendments are effective
upon filing with the Commission.
The Commission is publishing this
notice to solicit comments from
interested persons on the proposed
Amendments. Set forth in Sections I and
II is the statement of the purpose and
summary of the Amendments, along
with the information required by Rules
608(a) and 601(a) under the Act,
prepared and submitted by the
Participants to the Commission.
I. Rule 608(a)
A. Purpose of the Amendments
As part of the 2017 Amendments, the
Participants amended the definition of
‘‘Non-Display Use’’ in footnote eight of
the Plans’ fee schedules to explicitly
state that any use of data that does not
make data visibly available to a data
recipient on a device would be a NonDisplay Use. The Participants also made
a parallel amendment to footnote two of
the Plans’ fee schedules to state that the
device fee would only be applicable
where the data was visibly available to
the data recipient; any other data use on
a device would be considered NonDisplay Use. The Participants also
amended footnote ten of the Plans’ fee
schedules to clarify when the access fee
was applicable. In particular, the
Participants amended footnote ten in
the Plans’ fee schedules to provide the
access fee would be applicable if: (1)
The data recipient uses the data for nondisplay; or (2) the data recipient
receives the data in such a manner that
the data can be manipulated and
disseminated to one or more devices,
display or otherwise, regardless of
encryption or instructions from the
redistribution vendor regarding who has
authorized access to the data.
4 See Securities Exchange Act Release No. 82072
(November 14, 2017), 82 FR 55137 (November 20,
2017).
5 See Securities Exchange Act Release No. 83755
(July 31, 2018) (‘‘Stay Order’’).
6 17 CFR 242.608(b)(3)(i).
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]]>Agencies
[Federal Register Volume 83, Number 185 (Monday, September 24, 2018)]
[Notices]
[Pages 48354-48356]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-20660]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-84179; File No. SR-Nasdaq-2018-074]
Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Eliminate the Market Quality Program (Rule 5950)
September 18, 2018.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on September 7, 2018, The Nasdaq Stock Market LLC (``Nasdaq'' 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
[[Page 48355]]
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C.78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to eliminate the Market Quality Program at
Rule 5950. The text of the proposed rule change is available on the
Exchange's website at https://nasdaq.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 eliminate its Market Quality Program
(``MQP'') and delete corresponding Rule 5950. The Exchange established
the MQP in 2013 \4\ to promote market quality in certain securities
listed on Nasdaq (``MQP Securities''), including by providing financial
incentives to market makers in MQP Securities (``MQP Market Makers'')
to maintain certain quoting and liquidity standards for them.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 74580 (March 25,
2015), 80 FR 17126 (March 31, 2015) (SR-NASDAQ-2015-025) (reducing
MQP fees to MQP Market Makers).
---------------------------------------------------------------------------
The MQP is designed to be a one year pilot program that is set to
commence if and when certain conditions are satisfied: (i) The
Exchange's acceptance of an MQP Company,\5\ on behalf of an MQP
Security; and (ii) the entry of a relevant MQP Market Maker into the
Program. To date, however, neither of these conditions for the
commencement of the MQP have occurred despite efforts by the Exchange
over time to make the MQP more enticing to market makers.\6\ Because
the MQP has yet to even satisfy the necessary pre-conditions for
launching its pilot period, neither the Exchange nor the Commission has
been able to assess whether or to what extent the Program is
successful.
---------------------------------------------------------------------------
\5\ The term ``MQP Company'' is defined in Rule 5950(e)(5) as
the trust or company housing the Exchange Traded Fund (``ETF'') or,
if the ETF is not a series of a trust or company, then the ETF
itself.
\6\ See Securities Exchange Act Release No. 69195 (March 20,
2013), 78 FR 18393 (March 26, 2013) (SR-NASDAQ-2012-137) (order
granting approval of Market Quality Program) (SR-NASDAQ-2012-137)
(``MQP order''). See also Securities Exchange Act Release No. 68515
(December 21, 2012), 77 FR 77141 (December 31, 2012) (SR-NASDAQ-
2012-137) (notice of filing Market Quality Program as pilot, with
extensive description of program) (``MQP proposal'').
---------------------------------------------------------------------------
At the Commission's suggestion and pursuant to its general
initiative to end pilot programs that have failed to achieve their
stated objectives, the Exchange is now proposing to eliminate the MQP
and delete Rule 5950, which comprises the Program. The Exchange notes
that it plans to develop a replacement market quality program in the
future that it hopes will be more successful in attracting market maker
interest than the existing Program.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\7\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\8\ 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.
The Exchange believes that it is consistent with the Act to eliminate
the MQP because the Exchange has limited resources available to it to
devote to the operation of special programs like MQP and as such, it is
reasonable and equitable for the Exchange to allocate those resources
to those programs that are effective and away from those programs that
are ineffective. The Exchange believes that the objectives of the MQP
would best be served through a re-design of the program at a future
date.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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 notes that the MQP
is not and has not ever been utilized and, as such, the elimination of
the Program will have no impact on competition whatsoever.
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 \9\ and Rule 19b-4(f)(6) thereunder.\10\
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) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.\11\
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\9\ 15 U.S.C. 78s(b)(3)(A)(iii).
\10\ 17 CFR 240.19b-4(f)(6).
\11\ 17 CFR 240.19b-4(f)(6)(iii). As required under Rule 19 b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission.
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A proposed rule change filed under Rule 19b-4(f)(6) \12\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\13\ 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
waiver of the 30-day delayed operative date is consistent with the
protection of investors and the public interest because the MQP program
has never been utilized and there is no reason for such a delay. The
Commission agrees. Accordingly, the Commission hereby waives the 30-day
operative delay and designates the proposed rule change operative upon
filing.\14\
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\12\ 17 CFR 240.19b-4(f)(6).
\13\ 17 CFR 240.19b-4(f)(6)(iii).
\14\ 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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[[Page 48356]]
At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \15\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\15\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-Nasdaq-2018-074 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-Nasdaq-2018-074. 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-Nasdaq-2018-074, and should be submitted
on or before October 15, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-20660 Filed 9-21-18; 8:45 am]
BILLING CODE 8011-01-P
