Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7.14, Clearance and Settlement, 51020-51022 [2018-21909]

Download as PDF 51020 Federal Register / Vol. 83, No. 196 / Wednesday, October 10, 2018 / Notices 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: 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–2018–066 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–2018–066. 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 a.m. and 3 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–2018–066 and should be submitted on or before October 31, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.40 Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018–21900 Filed 10–9–18; 8:45 am] CFR 200.30–3(a)(12). VerDate Sep<11>2014 21:20 Oct 09, 2018 Jkt 247001 A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–84349; File No. SR–NYSE– 2018–42] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7.14, Clearance and Settlement October 3, 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 20, 2018, New York Stock Exchange LLC (‘‘NYSE’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the selfregulatory organization. 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 amend Rule 7.14, Clearance and Settlement, to remove language that is inconsistent with the Exchange’s Price List. The proposed rule change is available on the Exchange’s website at www.nyse.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 self-regulatory organization 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 those 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, 1 15 U.S.C. 78s(b)(1). U.S.C. 78a. 3 17 CFR 240.19b–4. 2 15 40 17 of the most significant parts of such statements. PO 00000 Frm 00137 Fmt 4703 Sfmt 4703 1. Purpose The Exchange proposes to amend Rule 7.14, Clearance and Settlement, to remove language that was inadvertently included when the rule was first adopted and that is inconsistent with the Exchange’s Price List. The Exchange adopted Rule 7.14 as part of a proposed rule change to adopt rules for trading UTP securities on Pillar, the Exchange’s new trading technology platform.4 Rule 7.14 was based on similar rules of its affiliate, NYSE Arca, Inc. (‘‘NYSE Arca’’) Rule 7.14–E and adopted by the Exchange without any substantive differences.5 Rule 7.14 applies only to trading in UTP Securities. Paragraph (c) of Rule 7.14 states that ‘‘[e]ach clearing firm must be admitted to the Exchange as a member organization by meeting the qualification requirements set forth in Rule 2.’’ Paragraph (c) of Rule 7.14 also includes language that exempts clearing firms from paying the regular member organization fee 6 where that clearing firm became a member organization for the sole purpose of acting as a clearing firm on the Exchange. This language was inadvertently included when Rule 7.14 was adopted and is inconsistent with the Exchange’s Price List, which does not include language exempting clearing only member organizations from the fee’s application.7 The Exchange notes that no such exemption exists in the Exchange’s rule governing the trading of NYSE-listed securities. Therefore, the Exchange proposes to remove the following phrase from the first sentence of Exchange Rule 7.14(c): ‘‘provided, however, if the clearing firm has become a member organization for the sole purpose of acting as a clearing firm on the Exchange, such clearing firm need 4 See Securities Exchange Act Release Nos. 76803; (December 30, 2015), 81 FR 536 (January 6, 2016) (SR–NYSE–2015–67); and 81225 (July 27, 2017), 82 FR 36033 (August 2, 2017) (SR–NYSE–2017–35). 5 Id. 6 The ‘‘regular membership organization fee’’ referred to in Exchange Rule 7.14(c) is referred to as a Trading Licenses fee in the Exchange’s Price List. 7 In accordance with the Price list, the Exchange charges all member organizations a Trading License fee on an annual basis. All member organizations with 10 or more trading licenses are charged a fee or $50,000 for the first trading license held by the member organization unless they qualify for a reduced rate. See the Exchange’s Price List on pages 33–34 available at https://www.nyse.com/ publicdocs/nyse/markets/nyse/NYSE_Price_List.pdf (dated September 4, 2018). E:\FR\FM\10OCN1.SGM 10OCN1 Federal Register / Vol. 83, No. 196 / Wednesday, October 10, 2018 / Notices amozie on DSK3GDR082PROD with NOTICES1 not pay the regular member organization fee’’. 2. Statutory Basis The Exchange believes that the proposal is consistent with Section 6(b) of the Act,8 in general, and furthers the objectives of Sections 6(b)(5) of the Act,9 in particular, 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. The Exchange believes that the proposed rule change would remove impediments to, and perfect the mechanisms of, a free and open market and a national market system and, in general, protect investors and the public interest because it would remove language from Exchange Rule 7.14(c) that was inadvertently included when the rule was adopted and that is inconsistent with the Exchange’s Price List. The proposed rule change would delete language from Rule 7.14(c) that incorrectly exempts clearing only member organizations from the Trading License fee and would, therefore, remove an inconsistency between Rule 7.14 and the Exchange’s Price List. Rule 7.14 applies only to trading in UTP Securities. No member organizations currently acts solely as a clearing firm for UTP Securities and, therefore, no member organization would be affected by the proposed rule change. The proposed rule change should avoid potential confusion about the applicability of the Trading License fee should a member organization seek to act solely as a clearing firm on the Exchange in UTP Securities. Lastly, the Exchange notes that no such exemption exists in the Exchange’s rule governing the trading of NYSE-listed securities. Therefore, the proposed rule change would allow for the consistent application of the Trading License fee among member organizations that act solely as clearing firms in NYSE-listed and UTP securities. The Exchange also believes that the proposed rule change is consistent with Sections 6(b)(4) of the Act 10 because it provides for the equitable allocation of reasonable dues, fees, and other charges among its members, issuers and other persons using its facilities and does not unfairly discriminate between customers, issuers, brokers or dealers. The proposed rule change is equitable, reasonable, and not unfairly discriminatory because it would clarify the application of the Trading License fee and apply it equally to member organizations that act solely as a clearing firm in UTP and NYSE-listed securities. For these reasons, the Exchange believes that the proposal is consistent with the Act. B. Self-Regulatory Organization’s Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,11 the Exchange believes that the proposed rule change would not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change is not designed to have a competitive impact. It is simply intended to amend the Exchange’s rules to remove language from Exchange Rule 7.14(c) that was inadvertently included when the rule was adopted and that is inconsistent with the Exchange’s Price List. It is not intended to address any competitive issues or to attract additional order flow the Exchange. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. 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 12 and Rule 19b–4(f)(6) thereunder.13 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. A proposed rule change filed under Rule 19b–4(f)(6) 14 normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b4(f)(6)(iii),15 the Commission may designate a shorter time if such 11 15 U.S.C. 78f(b)(8). U.S.C. 78s(b)(3)(A)(iii). 13 17 CFR 240.19b–4(f)(6). 14 17 CFR 240.19b–4(f)(6). 15 17 CFR 240.19b–4(f)(6)(iii). 12 15 8 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). 10 15 U.S.C. 78f(b)(4). 9 15 VerDate Sep<11>2014 21:20 Oct 09, 2018 Jkt 247001 PO 00000 Frm 00138 Fmt 4703 Sfmt 4703 51021 action is consistent with the protection of investors and the public interest. 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) 16 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: 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– NYSE–2018–42 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–NYSE–2018–42. 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 16 15 E:\FR\FM\10OCN1.SGM U.S.C. 78s(b)(2)(B). 10OCN1 51022 Federal Register / Vol. 83, No. 196 / Wednesday, October 10, 2018 / Notices 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–NYSE–2018–42, and should be submitted on or before October 31, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.17 Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018–21909 Filed 10–9–18; 8:45 am] BILLING CODE P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–84358; File No. SR– PEARL–2018–19 Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing of a Proposed Rule Change To Amend the Fee Schedule Regarding Connectivity Fees for Members and Non-Members; Suspension of and Order Instituting Proceedings To Determine Whether To Approve or Disapprove the Proposed Rule Change October 3, 2018. amozie on DSK3GDR082PROD with NOTICES1 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 18, 2018, MIAX PEARL, LLC (‘‘MIAX PEARL’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) a 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 and is, pursuant to Section 19(b)(3)(C) of the Act, hereby: (i) Temporarily suspending the proposed rule change; and (ii) instituting proceedings to determine whether to approve or disapprove the proposed rule change. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange is filing a proposal to amend the MIAX PEARL Fee Schedule 17 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Sep<11>2014 21:20 Oct 09, 2018 Jkt 247001 (the ‘‘Fee Schedule’’) to modify certain of the Exchange’s system connectivity fees. The text of the proposed rule change is available on the Exchange’s website at https://www.miaxoptions.com/rulefilings/pearl at MIAX PEARL’s principal office, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Description of 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 amend the Fee Schedule regarding connectivity to the Exchange. Specifically, the Exchange proposes to amend Sections 5(a) and (b) of the Fee Schedule to increase the network connectivity fees for the 1 Gigabit (‘‘Gb’’) fiber connection, the 10Gb fiber connection, and the 10Gb ultra-low latency (‘‘ULL’’) fiber connection, which are charged to both Members 3 and non-Members of the Exchange for connectivity to the Exchange’s primary/secondary facility. The Exchange also proposes to increase the network connectivity fees for the 1Gb and 10Gb fiber connections for connectivity to the Exchange’s disaster recovery facility. These proposed fee increases are collectively referred to herein as the ‘‘Proposed Fee Increases.’’ The Exchange initially filed the Proposed Fee Increases on July 31, 2018, designating the Proposed Fee Increases effective August 1, 2018.4 The proposed rule change was published for comment in the Federal Register on August 13, 2018.5 The Commission received one 3 The term ‘‘Member’’ means an individual or organization that is registered with the Exchange pursuant to Chapter II of the Exchange’s Rules for purposes of trading on the Exchange as an ‘‘Electronic Exchange Member’’ or ‘‘Market Maker.’’ Members are deemed ‘‘members’’ under the Exchange Act. See Exchange Rule 100. 4 See Securities Exchange Act Release No. 83785 (August 7, 2018), 83 FR 40101 (August 13, 2018)(SR–PEARL–2018–16). 5 Id. PO 00000 Frm 00139 Fmt 4703 Sfmt 4703 comment letter on the proposal.6 The Proposed Fee Increases remained in effect until they were temporarily suspended pursuant to a suspension order (the ‘‘Suspension Order’’) issued by the Commission.7 The Suspension Order also instituted proceedings to determine whether to approve or disapprove the proposed rule change.8 The Healthy Markets Letter argued that the Exchange did not provide sufficient information in its filing to support a finding that the proposal is consistent with the Act. Specifically, the Healthy Markets Letter objected to the Exchange’s reliance on the fees of other exchanges to demonstrate that its fee increases are consistent with the Act. In addition, the Healthy Markets Letter argued that the Exchange did not offer any details to support its basis for asserting that the proposed fee increases are consistent with the Act. The Exchange is now re-filing the Proposed Fee Increases, and is also providing additional detail regarding the basis for the Proposed Fee Increases. The proposed rule change is immediately effective upon filing with the Commission pursuant to Section 19(b)(3)(A) of the Act. The Exchange currently offers various bandwidth alternatives for connectivity to the Exchange, consisting of a 1Gb fiber connection, a 10Gb fiber connection, and a 10Gb ULL fiber connection. The 10Gb ULL offering uses an ultra-low latency switch, which provides faster processing of messages sent to it in comparison to the switch used for the other types of connectivity. The Exchange currently assesses the following monthly network connectivity fees to both Members and non-Members for connectivity to the Exchange’s primary/secondary facility: (a) $1,100 for the 1Gb connection; (b) $5,500 for the 10Gb connection; and (c) $8,500.00 for the 10Gb ULL connection. The Exchange also assesses to both Members and non-Members a monthly per connection network connectivity fee of $500 for each 1Gb connection to the disaster recovery facility and a monthly per connection network connectivity fee of $2,500 for each 10Gb connection to the disaster recovery facility. The Exchange’s MIAX Express Network Interconnect (‘‘MENI’’) can be configured to provide Members and non-Members of the Exchange network connectivity to the trading platforms, 6 See Letter from Tyler Gellasch, Executive Director, The Healthy Markets Association, to Brent J. Fields, Secretary, Commission, dated September 4, 2018 (‘‘Healthy Markets Letter’’). 7 See Securities Exchange Act Release No. 34– 84177 (September 17, 2018). 8 Id. E:\FR\FM\10OCN1.SGM 10OCN1

Agencies

[Federal Register Volume 83, Number 196 (Wednesday, October 10, 2018)]
[Notices]
[Pages 51020-51022]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-21909]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84349; File No. SR-NYSE-2018-42]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend Rule 7.14, Clearance and Settlement

October 3, 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 20, 2018, New York Stock Exchange LLC (``NYSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II, 
and III below, which Items have been prepared by the self-regulatory 
organization. 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\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Rule 7.14, Clearance and Settlement, 
to remove language that is inconsistent with the Exchange's Price List. 
The proposed rule change is available on the Exchange's website at 
www.nyse.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 self-regulatory organization 
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 those statements may be examined at 
the places specified in Item IV below. The Exchange has prepared 
summaries, set forth in sections A, B, and C below, of the most 
significant parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend Rule 7.14, Clearance and Settlement, 
to remove language that was inadvertently included when the rule was 
first adopted and that is inconsistent with the Exchange's Price List. 
The Exchange adopted Rule 7.14 as part of a proposed rule change to 
adopt rules for trading UTP securities on Pillar, the Exchange's new 
trading technology platform.\4\ Rule 7.14 was based on similar rules of 
its affiliate, NYSE Arca, Inc. (``NYSE Arca'') Rule 7.14-E and adopted 
by the Exchange without any substantive differences.\5\ Rule 7.14 
applies only to trading in UTP Securities. Paragraph (c) of Rule 7.14 
states that ``[e]ach clearing firm must be admitted to the Exchange as 
a member organization by meeting the qualification requirements set 
forth in Rule 2.'' Paragraph (c) of Rule 7.14 also includes language 
that exempts clearing firms from paying the regular member organization 
fee \6\ where that clearing firm became a member organization for the 
sole purpose of acting as a clearing firm on the Exchange. This 
language was inadvertently included when Rule 7.14 was adopted and is 
inconsistent with the Exchange's Price List, which does not include 
language exempting clearing only member organizations from the fee's 
application.\7\ The Exchange notes that no such exemption exists in the 
Exchange's rule governing the trading of NYSE-listed securities. 
Therefore, the Exchange proposes to remove the following phrase from 
the first sentence of Exchange Rule 7.14(c): ``provided, however, if 
the clearing firm has become a member organization for the sole purpose 
of acting as a clearing firm on the Exchange, such clearing firm need

[[Page 51021]]

not pay the regular member organization fee''.
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    \4\ See Securities Exchange Act Release Nos. 76803; (December 
30, 2015), 81 FR 536 (January 6, 2016) (SR-NYSE-2015-67); and 81225 
(July 27, 2017), 82 FR 36033 (August 2, 2017) (SR-NYSE-2017-35).
    \5\ Id.
    \6\ The ``regular membership organization fee'' referred to in 
Exchange Rule 7.14(c) is referred to as a Trading Licenses fee in 
the Exchange's Price List.
    \7\ In accordance with the Price list, the Exchange charges all 
member organizations a Trading License fee on an annual basis. All 
member organizations with 10 or more trading licenses are charged a 
fee or $50,000 for the first trading license held by the member 
organization unless they qualify for a reduced rate. See the 
Exchange's Price List on pages 33-34 available at https://www.nyse.com/publicdocs/nyse/markets/nyse/NYSE_Price_List.pdf (dated 
September 4, 2018).
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2. Statutory Basis
    The Exchange believes that the proposal is consistent with Section 
6(b) of the Act,\8\ in general, and furthers the objectives of Sections 
6(b)(5) of the Act,\9\ in particular, 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. 
The Exchange believes that the proposed rule change would remove 
impediments to, and perfect the mechanisms of, a free and open market 
and a national market system and, in general, protect investors and the 
public interest because it would remove language from Exchange Rule 
7.14(c) that was inadvertently included when the rule was adopted and 
that is inconsistent with the Exchange's Price List. The proposed rule 
change would delete language from Rule 7.14(c) that incorrectly exempts 
clearing only member organizations from the Trading License fee and 
would, therefore, remove an inconsistency between Rule 7.14 and the 
Exchange's Price List. Rule 7.14 applies only to trading in UTP 
Securities. No member organizations currently acts solely as a clearing 
firm for UTP Securities and, therefore, no member organization would be 
affected by the proposed rule change. The proposed rule change should 
avoid potential confusion about the applicability of the Trading 
License fee should a member organization seek to act solely as a 
clearing firm on the Exchange in UTP Securities. Lastly, the Exchange 
notes that no such exemption exists in the Exchange's rule governing 
the trading of NYSE-listed securities. Therefore, the proposed rule 
change would allow for the consistent application of the Trading 
License fee among member organizations that act solely as clearing 
firms in NYSE-listed and UTP securities.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange also believes that the proposed rule change is 
consistent with Sections 6(b)(4) of the Act \10\ because it provides 
for the equitable allocation of reasonable dues, fees, and other 
charges among its members, issuers and other persons using its 
facilities and does not unfairly discriminate between customers, 
issuers, brokers or dealers. The proposed rule change is equitable, 
reasonable, and not unfairly discriminatory because it would clarify 
the application of the Trading License fee and apply it equally to 
member organizations that act solely as a clearing firm in UTP and 
NYSE-listed securities.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    For these reasons, the Exchange believes that the proposal is 
consistent with the Act.

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

    In accordance with Section 6(b)(8) of the Act,\11\ the Exchange 
believes that the proposed rule change would not impose any burden on 
competition that is not necessary or appropriate in furtherance of the 
purposes of the Act. The proposed rule change is not designed to have a 
competitive impact. It is simply intended to amend the Exchange's rules 
to remove language from Exchange Rule 7.14(c) that was inadvertently 
included when the rule was adopted and that is inconsistent with the 
Exchange's Price List. It is not intended to address any competitive 
issues or to attract additional order flow the Exchange.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

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 \12\ and Rule 19b-4(f)(6) thereunder.\13\ 
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.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \13\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \14\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b4(f)(6)(iii),\15\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest.
---------------------------------------------------------------------------

    \14\ 17 CFR 240.19b-4(f)(6).
    \15\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    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) \16\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

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-NYSE-2018-42 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-NYSE-2018-42. 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

[[Page 51022]]

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-
NYSE-2018-42, and should be submitted on or before October 31, 2018.
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    \17\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-21909 Filed 10-9-18; 8:45 am]
 BILLING CODE P
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