Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Relocate the Pricing Schedule Rules, 50414-50416 [2018-21681]
Download as PDF
<![CDATA[
50414
Federal Register / Vol. 83, No. 194 / Friday, October 5, 2018 / Notices
will be webcast. The agenda and
information about how to join the
webcast will be available the week of
the event at: https://www.nitrd.gov/
nitrdgroups/index.php?title=HPC-BDConvergence.
Workshop Goals: HEC and BD
members will use information gathered
from this workshop to inform their
agency-specific research agendas.
Workshop Objectives: Identify and
discuss: use cases and applications from
a variety of domains; current activities
to address the convergence challenge
and the research and technologies that
are still needed; strategies for combining
the HPC, BD, and ML software and
hardware ecosystems; strategies for
combining the ‘‘people culture’’ of HPC,
BD, and ML; and different modes of
operation.
Submitted by the National Science
Foundation in support of the
Networking and Information
Technology Research and Development
(NITRD) National Coordination Office
(NCO) on October 2, 2018.
Suzanne H. Plimpton,
Reports Clearance Officer, National Science
Foundation.
[FR Doc. 2018–21720 Filed 10–4–18; 8:45 am]
BILLING CODE 7555–01–P
[Release No. 34–84326; File No. SR–BX–
2018–046]
Self-Regulatory Organizations; Nasdaq
BX, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Relocate the Pricing
Schedule Rules
daltland on DSKBBV9HB2PROD with NOTICES
October 1, 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
September 17, 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.
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Sep<11>2014
17:11 Oct 04, 2018
Jkt 247001
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
SECURITIES AND EXCHANGE
COMMISSION
1 15
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to (a) relocate
its current Rule 7000 Series (‘‘Equities
Pricing’’) and the rules at Chapter XV
(‘‘Options Pricing’’; together, ‘‘Equities
and Options Pricing’’) to the Exchange’s
rulebook’s (‘‘Rulebook’’) shell
structure; 3 (b) make conforming crossreference changes throughout the
Rulebook; and (c) amend the Equity 4’s
title in the shell structure.
The text of the proposed rule change
is available on the Exchange’s website at
https://nasdaqbx.cchwallstreet.com/, at
the principal office of the Exchange, and
at the Commission’s Public Reference
Room.
1. Purpose
The Exchange proposes to (a) relocate
the Equities and Options Pricing rules,
currently under the Equities Rule 7000
Series and Options Chapter XV, into the
Rulebook’s shell structure, respectively,
under Equity 7 and Options 7 (both
named ‘‘Pricing Schedule’’); (b) make
conforming cross-reference changes
throughout the Rulebook; and (c) amend
the Equity 4’s title, ‘‘Equity Listing
Rules,’’ in the shell structure, as
detailed below.
(a) Relocation of the Pricing Rules
The Exchange, as part of its continued
effort to promote efficiency and the
conformity of its processes with those of
3 In 2017, 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 (‘‘Affiliated Exchanges’’). See Securities
Exchange Act Release No. 82174 (November 29,
2017), 82 FR 57492 (December 5, 2017) (SR–BX–
2017–054).
PO 00000
Frm 00084
Fmt 4703
Sfmt 4703
the Affiliated Exchanges,4 and the goal
of harmonizing and uniformizing its
rules, proposes to relocate the Equities
Pricing rules, currently under the Rule
7000 Series, into Equity 7, Pricing
Schedule, of the shell structure.
Specifically, the Exchange will add the
word ‘‘Section’’ and renumber the
Equities Pricing rules as detailed in the
table below:
Rule 7000 Series
7000
7001
7002
7003
7010
7011
7012
7013
7014
7015
7016
7017
7018
7019
7020
7021
7022
7023
7024
7025
7026
7027
7028
7029
7030
7031
7032
7033
7034
7035
7039
7047
7051
7055
7058
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
.....................................
Equity 7
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
Section
1.
10.
20.
30.
100.
111.
112.
113.
114.
115.
116.
117.
118.
119.
120.
121.
122.
123.
124.
125.
126.
127.
128.
129.
130.
131.
132.
133.
134.
135.
139.
147.
151.
155.
158.
The Exchange will also relocate the
Options Pricing rules, currently under
Chapter XV, into Options 7, Pricing
Schedule, of the shell structure. No
renumbering of the Options Pricing
Schedule will be necessary other than
replacing the abbreviated word ‘‘Sec.’’
with the full word ‘‘Section.’’
The Exchange believes that the
relocation of the Equities and Options
Pricing rules will facilitate the use of the
Rulebook by Members 5 of the Exchange,
including those who are members of
other Affiliated Exchanges, and other
market participants. Moreover, the
proposed changes are of a nonsubstantive nature and they will not
amend the relocated rules, other than to
update their numbers as detailed above.
4 See
footnote 3.
Rule 0120(i).
5 Exchange
E:\FR\FM\05OCN1.SGM
05OCN1
Federal Register / Vol. 83, No. 194 / Friday, October 5, 2018 / Notices
(b) Cross-Reference Updates
In connection with the changes
described above, the Exchange proposes
to update all cross-references in the
Rulebook that direct the reader to the
current placement of the Equities and
Options Pricing rules and/or any of their
subsections. Furthermore, the Exchange
notes that the proposed amendments
include cross-reference updates to the
Connectivity rules under General 8,
Section 1.6 Moreover, for consistency
with the current title of General 8,
Section 2 (‘‘Direct Connectivity’’), the
Exchange proposes to update the
description provided under Rule
7011(a) (to be relocated under Equity 7,
Section 111(a)) by removing the text ‘‘to
BX’’.
(c) Amendment of the Equity 4’s Title
Finally, the Exchange will amend
Equity 4’s title in the shell structure,
currently ‘‘Equity Listing Rules,’’ and
replace it with the word ‘‘Reserved,’’
since no rules will be placed in this
section of the shell structure.
daltland on DSKBBV9HB2PROD with NOTICES
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, by
promoting efficiency and structural
conformity of the Exchange’s processes
with those of the Affiliated Exchanges
and to make the Exchange’s Rulebook
easier to read and more accessible to its
Members and market participants. The
Exchange believes that the relocation of
the Equities and Options Pricing rules,
cross-reference updates, and the
amendment to the Equity 4’s title are of
a non-substantive nature.
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
proposed changes do not impose a
burden on competition because, as
previously stated, they (i) are of a nonsubstantive nature, (ii) are intended to
6 See Securities Exchange Act Release No. 83535
(June 28, 2018), 83 FR 31241 (July 3, 2018) (SR–BX–
2018–024).
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
VerDate Sep<11>2014
17:11 Oct 04, 2018
Jkt 247001
harmonize the structure of 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’ and
market participants’ navigation and
reading of the rules.
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 9 and Rule 19b–
4(f)(6) thereunder.10
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 11 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 12
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. Waiver of the
operative delay would allow the
Exchange to promptly relocate the
Pricing Schedule rules and continue to
reorganize its Rulebook to promote
efficiency and structural consistency
between the Exchange’s rules and those
of the Affiliated Exchanges. The
Commission believes that waiver of the
30-day operative delay is consistent
with the protection of investors and the
public interest. Accordingly, the
Commission hereby waives the
operative delay and designates the
proposed rule change operative upon
filing.13
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.
11 17 CFR 240.19b–4(f)(6).
12 17 CFR 240.19b–4(f)(6)(iii).
13 For purposes only of waiving the 30-day
operative delay, the Commission also has
10 17
PO 00000
Frm 00085
Fmt 4703
Sfmt 4703
50415
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 rule-comments@
sec.gov. Please include File Number SR–
BX–2018–046 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–2018–046. 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
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
E:\FR\FM\05OCN1.SGM
05OCN1
50416
Federal Register / Vol. 83, No. 194 / Friday, October 5, 2018 / Notices
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–2018–046 and should
be submitted on or before October 26,
2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–21681 Filed 10–4–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84327; File No. SR–
CboeEDGX–2018–041]
Self-Regulatory Organizations; Cboe
EDGX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Adopt a
New Order Type Called the MidPoint
Discretionary Order (‘‘MDO’’) Under
Paragraph (g) of Exchange Rule 11.8
and To Amend the Definition of the
Super Aggressive Instruction Under
Paragraph (n)(2) of Exchange Rule 11.6
daltland on DSKBBV9HB2PROD with NOTICES
October 1, 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
September 19, 2018, Cboe EDGX
Exchange, Inc. (the ‘‘Exchange’’ or
‘‘EDGX’’) 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 Exchange has designated this
proposal as a ‘‘non-controversial’’
proposed rule change pursuant to
Section 19(b)(3)(A) of the Act 3 and Rule
19b–4(f)(6)(iii) thereunder,4 which
renders it 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 is proposing to adopt a
new order type called the MidPoint
Discretionary Order (‘‘MDO’’) under
paragraph (g) of Exchange Rule 11.8 and
to amend the definition of the Super
Aggressive instruction under paragraph
(n)(2) of Exchange Rule 11.6.
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
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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to adopt a
new order type known as the MDO
under new paragraph (g) of Exchange
Rule 11.8 and to amend the definition
of the Super Aggressive instruction
under paragraph (n)(2) of Exchange Rule
11.6.
Proposed MDOs on EDGX
MDOs are designed to exercise
discretion to execute to the midpoint of
the NBBO and provide price
improvement to contra-side orders over
the NBBO. The proposed MDO would
function similarly to the MDO offered
by EDGA,5 but would also include
certain aspects that mirror functionality
currently available through the
Discretionary Pegged Order and MPL–
ALO Order offered by NYSE Arca, as
well as the Discretionary Peg Order
offered by IEX.6 The core functionality
5 See
EDGA Rule 11.8(e).
NYSE Arca Rule 7.31–E(h)(3) (defining the
Discretionary Pegged Order). See also Securities
Exchange Act Release No. 78181 (June 28, 2016), 81
FR 43297 (July 1, 2016) (order approving the
Discretionary Pegged Order). See NYSE Arca Rule
7.31–E(d)(3)(F). See IEX Rule 11.190(a)(3) (defining
Pegged Orders and a non-displayed order which
6 See
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6)(iii).
1 15
VerDate Sep<11>2014
17:11 Oct 04, 2018
Jkt 247001
PO 00000
Frm 00086
Fmt 4703
Sfmt 4703
of the proposed MDO, EDGA’s MDO,
NYSE Arca’s Discretionary Pegged
Order, and IEX’s Discretionary Peg
Order would be the same—being pegged
to the NBBO, as applicable, with
discretion to execute to the midpoint of
the NBBO.
Proposed Operation. An MDO would
be defined as a Limit Order 7 that is
executable at the National Best Bid
(‘‘NBB’’) for an order to buy or the
National Best Offer (‘‘NBO’’) for an
order to sell while resting on the EDGX
Book,8 with discretion to execute at
prices to and including the midpoint of
the NBBO. Upon entry, an MDO will
only execute against resting orders that
include a Super Aggressive instruction 9
priced at the MDO’s pegged price if the
MDO also contains a Displayed
instruction 10 and against orders with a
Non-Displayed Swap (‘‘NDS’’)
instruction 11 priced at the MDO’s
pegged price or within its discretionary
range. As a result, an MDO will not act
as a liquidity remover upon entry
against resting orders at its pegged price
or at any price within its discretionary
range. Should a resting contra-side order
within the MDO’s discretionary range
not include an NDS instruction, the
incoming MDO will be placed on the
EDGX Book and its discretionary range
shortened to equal the limit price of the
contra-side resting order. Likewise,
where an incoming order with a Post
Only instruction 12 does not remove
may be pegged to the inside quote on the same side
of the market with discretion to the midpoint of the
NBBO, i.e., Discretionary Peg orders). See also
Securities Exchange Act Release No. 78101 (June
17, 2016), 81 FR 41141 (June 23, 2016) (order
approving the IEX exchange application, which
included IEX’s Discretionary Peg Orders and
Discretionary Peg Order).
7 See Exchange Rule 11.8(b). In sum, a Limit
Order is an order to buy or sell a stated amount of
a security at a specified price or better.
8 See Exchange Rule 1.5(d).
9 See Exchange Rule 11.6(n)(2).
10 Pursuant to the terms of the Super Aggressive
instruction, such orders execute against incoming
orders with a Post Only instruction only when such
orders also contain a Displayed instruction. See
Exchange Rule 11.6(n)(7). As noted below, the
Exchange also proposes to amend the definition of
the Super Aggressive instruction to reflect the
addition of the MDO order type. Further, although
an order with a Super Aggressive instruction resting
at the pegged price of an MDO should be a rare
occurrence, because orders with a Super Aggressive
instruction route to locking or crossing quotes at
away Trading Centers and an MDO is pegged to the
NBBO (i.e., the locking price), it is possible to have
an order with a Super Aggressive instruction at
such price based on the Exchange’s matching and
routing logic as well as the Exchange’s calculation
of the NBBO and processing of quote updates. See,
e.g., Securities Exchange Act Release No. 74072
(January 15, 2015), 80 FR 3282 (January 22, 2015)
(SR–EDGX–2015–02) (describing the Exchange’s
calculation of the NBBO, including router feedback
and other details).
11 See Exchange Rule 11.6(n)(7).
12 See Exchange Rule 11.6(n)(4).
E:\FR\FM\05OCN1.SGM
05OCN1
]]>Agencies
[Federal Register Volume 83, Number 194 (Friday, October 5, 2018)]
[Notices]
[Pages 50414-50416]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-21681]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-84326; File No. SR-BX-2018-046]
Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Relocate the
Pricing Schedule Rules
October 1, 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 September 17, 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 (a) relocate its current Rule 7000 Series
(``Equities Pricing'') and the rules at Chapter XV (``Options
Pricing''; together, ``Equities and Options Pricing'') to the
Exchange's rulebook's (``Rulebook'') shell structure; \3\ (b) make
conforming cross-reference changes throughout the Rulebook; and (c)
amend the Equity 4's title in the shell structure.
---------------------------------------------------------------------------
\3\ In 2017, 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 (``Affiliated Exchanges'').
See Securities Exchange Act Release No. 82174 (November 29, 2017),
82 FR 57492 (December 5, 2017) (SR-BX-2017-054).
---------------------------------------------------------------------------
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 (a) relocate the Equities and Options
Pricing rules, currently under the Equities Rule 7000 Series and
Options Chapter XV, into the Rulebook's shell structure, respectively,
under Equity 7 and Options 7 (both named ``Pricing Schedule''); (b)
make conforming cross-reference changes throughout the Rulebook; and
(c) amend the Equity 4's title, ``Equity Listing Rules,'' in the shell
structure, as detailed below.
(a) Relocation of the Pricing Rules
The Exchange, as part of its continued effort to promote efficiency
and the conformity of its processes with those of the Affiliated
Exchanges,\4\ and the goal of harmonizing and uniformizing its rules,
proposes to relocate the Equities Pricing rules, currently under the
Rule 7000 Series, into Equity 7, Pricing Schedule, of the shell
structure. Specifically, the Exchange will add the word ``Section'' and
renumber the Equities Pricing rules as detailed in the table below:
---------------------------------------------------------------------------
\4\ See footnote 3.
------------------------------------------------------------------------
Rule 7000 Series Equity 7
------------------------------------------------------------------------
7000.................................... Section 1.
7001.................................... Section 10.
7002.................................... Section 20.
7003.................................... Section 30.
7010.................................... Section 100.
7011.................................... Section 111.
7012.................................... Section 112.
7013.................................... Section 113.
7014.................................... Section 114.
7015.................................... Section 115.
7016.................................... Section 116.
7017.................................... Section 117.
7018.................................... Section 118.
7019.................................... Section 119.
7020.................................... Section 120.
7021.................................... Section 121.
7022.................................... Section 122.
7023.................................... Section 123.
7024.................................... Section 124.
7025.................................... Section 125.
7026.................................... Section 126.
7027.................................... Section 127.
7028.................................... Section 128.
7029.................................... Section 129.
7030.................................... Section 130.
7031.................................... Section 131.
7032.................................... Section 132.
7033.................................... Section 133.
7034.................................... Section 134.
7035.................................... Section 135.
7039.................................... Section 139.
7047.................................... Section 147.
7051.................................... Section 151.
7055.................................... Section 155.
7058.................................... Section 158.
------------------------------------------------------------------------
The Exchange will also relocate the Options Pricing rules,
currently under Chapter XV, into Options 7, Pricing Schedule, of the
shell structure. No renumbering of the Options Pricing Schedule will be
necessary other than replacing the abbreviated word ``Sec.'' with the
full word ``Section.''
The Exchange believes that the relocation of the Equities and
Options Pricing rules will facilitate the use of the Rulebook by
Members \5\ of the Exchange, including those who are members of other
Affiliated Exchanges, and other market participants. Moreover, the
proposed changes are of a non-substantive nature and they will not
amend the relocated rules, other than to update their numbers as
detailed above.
---------------------------------------------------------------------------
\5\ Exchange Rule 0120(i).
---------------------------------------------------------------------------
[[Page 50415]]
(b) Cross-Reference Updates
In connection with the changes described above, the Exchange
proposes to update all cross-references in the Rulebook that direct the
reader to the current placement of the Equities and Options Pricing
rules and/or any of their subsections. Furthermore, the Exchange notes
that the proposed amendments include cross-reference updates to the
Connectivity rules under General 8, Section 1.\6\ Moreover, for
consistency with the current title of General 8, Section 2 (``Direct
Connectivity''), the Exchange proposes to update the description
provided under Rule 7011(a) (to be relocated under Equity 7, Section
111(a)) by removing the text ``to BX''.
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 83535 (June 28,
2018), 83 FR 31241 (July 3, 2018) (SR-BX-2018-024).
---------------------------------------------------------------------------
(c) Amendment of the Equity 4's Title
Finally, the Exchange will amend Equity 4's title in the shell
structure, currently ``Equity Listing Rules,'' and replace it with the
word ``Reserved,'' since no rules will be placed in this section of the
shell structure.
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,
by promoting efficiency and structural conformity of the Exchange's
processes with those of the Affiliated Exchanges and to make the
Exchange's Rulebook easier to read and more accessible to its Members
and market participants. The Exchange believes that the relocation of
the Equities and Options Pricing rules, cross-reference updates, and
the amendment to the Equity 4's title are of a non-substantive nature.
---------------------------------------------------------------------------
\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 proposed changes 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
structure of 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' and market participants' navigation and
reading of the rules.
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 \9\ and Rule 19b-
4(f)(6) thereunder.\10\
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 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.
---------------------------------------------------------------------------
A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \11\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \12\ 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. Waiver
of the operative delay would allow the Exchange to promptly relocate
the Pricing Schedule rules and continue to reorganize its Rulebook to
promote efficiency and structural consistency between the Exchange's
rules and those of the Affiliated Exchanges. The Commission believes
that waiver of the 30-day operative delay is consistent with the
protection of investors and the public interest. Accordingly, the
Commission hereby waives the operative delay and designates the
proposed rule change operative upon filing.\13\
---------------------------------------------------------------------------
\11\ 17 CFR 240.19b-4(f)(6).
\12\ 17 CFR 240.19b-4(f)(6)(iii).
\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).
---------------------------------------------------------------------------
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-2018-046 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-2018-046. 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
[[Page 50416]]
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-2018-046 and should be
submitted on or before October 26, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-21681 Filed 10-4-18; 8:45 am]
BILLING CODE 8011-01-P
