Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Relocate the Pricing Schedule Rules, 55210-55214 [2018-23963]
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Federal Register / Vol. 83, No. 213 / Friday, November 2, 2018 / Notices
amendments) are filed on Form N–6
annually. The estimated hour burden
per portfolio for preparing and filing an
initial registration statement on Form
N–6 is 770.25 hours. The estimated
annual hour burden for preparing and
filing initial registration statements is
6,162 hours (8 initial registration
statements annually times 770.25 hours
per registration statement). The
Commission estimates that the hour
burden for preparing and filing a posteffective amendment on Form N–6 is
67.5 hours. The total annual hour
burden for preparing and filing posteffective amendments is 25,650 hours
(380 post-effective amendments
annually times 67.5 hours per
amendment). The frequency of response
is annual. The total annual hour burden
for Form N–6, therefore, is estimated to
be 31,812 hours (6,162 hours for initial
registration statements plus 25,650
hours for post-effective amendments).
The Commission estimates that the
cost burden for preparing an initial
Form N–6 filing is $26,169 per portfolio
and the current cost burden for
preparing a post-effective amendment to
a previously effective registration
statement is $9,493 per portfolio. The
Commission estimates that, on an
annual basis, 8 portfolios will be
referenced in an initial Form N–6 and
380 portfolios will be referenced in a
post-effective amendment of Form N–6.
Thus, the total cost burden allocated to
Form N–6 would be $3,816,692.
The information collection
requirements imposed by Form N–6 are
mandatory. Responses to the collection
of information will not be kept
confidential. Estimates of average
burden hours are made solely for the
purposes of the Paperwork Reduction
Act, and are not derived from a
comprehensive or even a representative
survey or study of the costs of
Commission rules and forms. An agency
may not conduct or sponsor, and a
person is not required to respond to a
collection of information unless it
displays a currently valid control
number.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden of the collection of
information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
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technology. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
publication.
Please direct your written comments
to Charles Riddle, Acting Director/Chief
Information Officer, Securities and
Exchange Commission, C/O Candace
Kenner, 100 F Street NE, Washington,
DC 20549; or send an email to: PRA_
Mailbox@sec.gov.
Dated: October 30, 2018.
Brent J. Fields,
Secretary.
[FR Doc. 2018–24071 Filed 10–31–18; 11:15 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meeting; Cancellation
Dated: October 29, 2018.
Eduardo A. Aleman,
Assistant Secretary.
FEDERAL REGISTER CITATION OF PREVIOUS
ANNOUNCEMENT: 83 FR 54411, October
[FR Doc. 2018–23958 Filed 11–1–18; 8:45 am]
29, 2018
BILLING CODE 8011–01–P
PREVIOUSLY ANNOUNCED TIME AND DATE OF
THE MEETING: Wednesday, October 31,
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meetings
1:30 p.m. on Tuesday,
November 6, 2018.
PLACE: The meeting will be held at the
Commission’s headquarters, 100 F
Street, NE, Washington, DC 20549.
STATUS: This meeting will be closed to
the public.
MATTERS TO BE CONSIDERED:
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the closed meeting. Certain
staff members who have an interest in
the matters also may be present.
The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B)
and (10) and 17 CFR 200.402(a)(3),
(a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and
(a)(10), permit consideration of the
scheduled matters at the closed meeting.
Commissioner Roisman, as duty
officer, voted to consider the items
listed for the closed meeting in closed
session.
The subject matters of the closed
meeting will be:
Institution and settlement of
injunctive actions;
Institution and settlement of
administrative proceedings; and
Other matters relating to enforcement
proceedings.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
CONTACT PERSON FOR MORE INFORMATION:
For further information and to ascertain
what, if any, matters have been added,
deleted or postponed; please contact
Brent J. Fields from the Office of the
Secretary at (202) 551–5400.
TIME AND DATE:
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2018 at 10:00 a.m.
The Open
Meeting scheduled for Wednesday,
October 31, 2018 at 10:00 a.m., has been
cancelled.
CHANGES IN THE MEETING:
CONTACT PERSON FOR MORE INFORMATION:
For further information and to ascertain
what, if any, matters have been added,
deleted or postponed, please contact
Brent J. Fields of the Office of the
Secretary at (202) 551–5400.
Dated: October 31, 2018.
Brent J. Fields,
Secretary.
[FR Doc. 2018–24148 Filed 10–31–18; 4:15 pm]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84495; File No. SR–Phlx–
2018–66]
Self-Regulatory Organizations; Nasdaq
PHLX LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Relocate the Pricing
Schedule Rules
October 29, 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 October
18, 2018, Nasdaq PHLX LLC (‘‘Phlx’’ 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
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 83, No. 213 / Friday, November 2, 2018 / Notices
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to (a) relocate
rules from the Phlx’s Pricing Schedule
(‘‘Pricing Schedule’’) and current Rule
909 to the Exchange’s rulebook’s
(‘‘Rulebook’’) shell structure,3 (b)
eliminate the Pricing Schedule’s Table
of Contents, obsolete text, and reserved
rules; and (c) make conforming crossreference changes throughout the
Rulebook.
The text of the proposed rule change
is available on the Exchange’s website at
https://nasdaqphlx.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, as part of its continued
effort to promote efficiency and the
conformity of its processes with those of
the Affiliated Exchanges, and the goal of
harmonizing and uniformizing its rules,
proposes to relocate the Pricing
Schedule rules and Rule 909 to the
Exchange’s shell structure. Specifically,
the Exchange will relocate the Pricing
Schedule rules described below
respectively into the Equity 7 and
Options 7 sections of the shell structure
(both named ‘‘Pricing Schedule’’).
In addition, the Exchange proposes to
delete the current Pricing Schedule’s
Table of Contents and the obsolete term
‘‘Phlx XL II’’ at current Chapter VI., A.
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 BX, Inc.; Nasdaq
GEMX, LLC; Nasdaq ISE, LLC; and Nasdaq MRX,
LLC (‘‘Affiliated Exchanges’’). See Securities
Exchange Act Release No. 82169 (November 29,
2017), 82 FR 57508 (December 5, 2017) (SR–Phlx–
2017–97).
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Moreover, the Exchange proposes not to
relocate current Chapters X, XI, and XII,
since these are reserved rules that do
not contain any rule text. Finally, the
Exchange proposes to make conforming
cross-reference changes throughout the
Rulebook.
(a) Table of Contents
The Exchange proposes to eliminate
the existing Table of Contents in the
Phlx Pricing Schedule. The Table of
Contents is unnecessary. The website
where the Phlx rules are listed 4
contains hyperlinks and a skeleton of
the available rules within the site and
enables market participants to view all
rules in that section.
(b) Relocation of Equity Rules
The Exchange proposes to adopt,
under Equity 7, Section 1 (‘‘General
Provisions’’) a modified version of the
current introductory text in the Pricing
Schedule. Proposed Equity 7, Section
1(a) will refer to the calculation of fees
in the Exchange, with a specific
reference to the exception concerning
disputes of Nasdaq PSX fees and
proprietary data feed fees. The Exchange
notes that the relocated text will not
include the reference to disputes
concerning fees for co-location services.
The co-location services rule was
recently moved to the General 8 section
of the Rulebook 5 and the rules of the
proposed Pricing Schedule will not
apply to co-location services.6
The Exchange proposes also to
relocate to Equity 7, Section 1(b) the
portion of the Pricing’s Schedule’s
Preface that applies only to equities.
This will include the paragraph that
reads ‘‘For PSX Equities.’’ The relocated
text has no application to transactions
in options and, therefore, will not be
included in Options 7, Section 1(b)
described below.
The Exchange proposes also to
relocate and renumber Phlx Rule 909
under both Equity 7, Section 2 and
4 Phlx rules are located at: https://
nasdaqphlx.cchwallstreet.com.
5 See Securities Exchange Act Release No. 83465
(June 19, 2018), 83 FR 29594 (June 25, 2018) (SR–
Phlx–2018–46).
6 See proposed Equity 7, Section 1(a): ‘‘Policy for
amending billing information: Corrections
submitted after trade date and prior to the issuance
of an invoice by the exchange must be submitted
to the Exchange in writing and must be
accompanied by supporting documentation. Only
members may submit trade corrections.
All billing disputes must be submitted to the
Exchange in writing and must be accompanied by
supporting documentation. All disputes must be
submitted no later than sixty (60) days after receipt
of a billing invoice, except for disputes concerning
Nasdaq PSX fees and proprietary data feed fees. The
Exchange calculates fees on a trade date basis. Only
members may submit billing disputes.’’
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Options 7, Section 2 (both named
‘‘Collection of Exchange Fees and Other
Claims’’). Rule 909 permits Phlx to
collect undisputed or final fees, fines,
charges and/or other monetary sanctions
or other monies due and owing to the
Exchange or other charges related to
Rule 924.7 The Exchange believes that,
unlike other rules in the 900 Rules
Series (‘‘Membership’’), which generally
refer to the powers of the Board of
Directors and the authority it delegates
to Senior Management of the Exchange,
the direct debit process established in
Rule 909 will be better situated among
the relocated rules in the Equity 7 and
Options 7 titles.
Next, the Exchange proposes to
relocate and renumber current Pricing
Schedule’s Chapter VIII (‘‘NASDAQ
PSX FEES’’) as Equity 7, Section 3 in the
shell structure. The text of this rule will
not be substantively changed other than
to update the capitalization of its title.
Today, Chapter VI of the Phlx Pricing
Schedule consists of rule text applicable
to both equities and options.
Specifically, references to floor pricing
apply to the options market, as only that
market has a trading floor. In Chapter
VI, A. (‘‘Permit and Registration Fees’’),
the paragraph that describes PSX Only
Permit Fees describes an equity fee. The
‘‘Application Fee,’’ ‘‘Application Fee for
Lapsed Applications,’’ ‘‘Transfer of
Affiliation Fee,’’ ‘‘Account Fee,’’
‘‘Initiation Fee’’ and ‘‘Permit Fees’’
apply to both equities and options.
Finally, the ‘‘Inactive Nominee Fee’’ and
the ‘‘Clerk Fee’’ are floor fees and
therefore apply to options only.8
The Exchange proposes to adopt
Equity 7, Section 4 (‘‘Membership
Fees’’), A. (‘‘Permit and Registration
Fees’’) by adapting text from current
Chapter VI, A. of the Pricing Schedule.
Specifically, as previously noted, Equity
7, Section 4, A. will consist of the
following fees: ‘‘Application Fee,’’
‘‘Application Fee for Lapsed
Applications,’’ ‘‘Transfer of Affiliation
Fee,’’ ‘‘Account Fee,’’ ‘‘Initiation Fee,’’
and ‘‘Permit Fees.’’ Proposed Equity 7,
Section 4 will also include text from the
current rule which is only applicable to
PSX transactions; thus, the Exchange
proposes to relocate the text under the
subheading ‘‘PSX Only Permit Fees.’’
Additionally, the Exchange will
relocate the callout (‘‘*’’) and respective
7 See Securities Exchange Act Release No. 61405
(January 21, 2010), 75 FR 4888 (January 29, 2010)
(SR–Phlx–2009–101) (Order Approving a Proposed
Rule Change Relating to Collection of Exchange
Fees).
8 As explained later, the Exchange is proposing to
adopt a parallel rule under the Options 7, Section
8 (‘‘Membership Fees’’), with fees applicable to both
options and equities and relocate only the
subsections from Chapter VI that apply to options.
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Federal Register / Vol. 83, No. 213 / Friday, November 2, 2018 / Notices
footnote that accompany the
‘‘Application Fee,’’ ‘‘Application Fee for
Lapsed Applications,’’ ‘‘Account Fee,’’
and ‘‘Initiation Fee’’ subheadings; this is
because the footnote is exclusively
applicable to those who only apply for
PSX membership, and therefore should
be moved to the Equity 7 title.
The Exchange notes that it will not
relocate the obsolete term ‘‘Phlx XL II’’
used in the footnote described above;
the term is a legacy reference and its
Equity 7—Pricing schedule
(Proposed)
Section
Section
Section
Section
Section
1.
1.
2.
3.
4.
Schedule of fees
(Current)
General Provisions—(a)
General Provisions—(b)
Collection of Exchange Fees and Other Claims
Nasdaq PSX Fees
Membership Fees
(c) Relocation of Options Rules
The Exchange proposes to adopt,
under Options 7, Section 1(a), a
modified version of the current
introductory section in the Pricing
Schedule. Proposed Options 7, Section
1(a) will refer to the calculation of fees
in the Exchange, with a specific
reference to the exception concerning
disputes of proprietary data fees, which
applies to transactions in options. The
Exchange believes that this change will
improve the readability of the rules
relocated under the Options 7 title.
The Exchange also proposes to adopt
under Options 7, Section 1(b) the text
from the Pricing Schedule’s Preface that
applies only to transactions in options.
Specifically, proposed Options 7,
Section 1(b) will contain the text that
opens with ‘‘For Phlx Options’’; the
definitions of ‘‘Customer’’; ‘‘Specialist’’;
‘‘ROT, SQT and RSQT’’; ‘‘Market
Maker’’; ‘‘Registered Option Trader’’;
‘‘Streaming Quote Trader’’; ‘‘Remote
Streaming Quote Trader’’; ‘‘Firm’’;
‘‘Professional’’; ‘‘Broker-Dealer’’; ‘‘Joint
Back Office’’; ‘‘Common Ownership’’;
and ‘‘Non-Customer’’; and the rules that
apply to options transactions fees or
rebates described under the subsection
‘‘For Purposes of Common Ownership
Pricing Schedule’s Introduction
PREFACE
Rule 909. Collection of Exchange Fees and Other Claims
VIII. Nasdaq PSX Fees
VI. Membership Fees
Aggregation of Activity of Affiliated
Members and Member Organizations,’’
including the terms ‘‘Appointed MM,’’
‘‘Appointed OFP,’’ and ‘‘Affiliated
Entity.’’
The Exchange additionally proposes
that Subsections A and B (respectively,
‘‘Mini Options Fees’’ and ‘‘Customer
Rebate Program’’) in the Pricing
Schedule’s Preface remain unchanged
and be relocated to proposed Options 7,
Section 1(b).
As previously explained, the
Exchange proposes also to adopt a rule,
under Options 7, Section 2, for the
collection of undisputed fees or other
monies identical to current Phlx Rule
909 (‘‘Collection of Exchange Fees and
Other Claims’’), which will parallel the
rule under Equity 7, Section 2.
The Exchange proposes also to
relocate, renumber, and add the word
‘‘Section’’ to each of the following
chapters in the Pricing Schedule: I
(‘‘Rebates and Fees for Adding and
Removing Liquidity in SPY’’); II
(‘‘Multiply Listed Options Fees’’), III
(‘‘Singly Listed Options’’); IV (‘‘Other
Transaction Fees’’); V (‘‘Routing Fees’’);
VII (‘‘Other Member Fees’’); IX
(‘‘Proprietary Data Feed Fees’’); and XIII
(‘‘Access and Redistribution Fee’’).
Options 7—Pricing schedule
(Proposed)
1. General Provisions—(a)
1. General Provisions—(b)
2. Collection of Exchange Fees and Other Claims
3. Rebates and Fees for Adding and Removing Liquidity in
Section
Section
Section
Section
Section
Section
Section
Section
4. Multiply Listed Options Fees
5. Singly Listed Options
6. Other Transaction Fees
7. Routing Fees
8. Membership Fees
9. Other Member Fees
10. Proprietary Data Feed Fees
11. Access and Redistribution Fee
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With respect to the text in current
Chapter VI of the Pricing Schedule, as
previously explained, the Exchange
proposes to adopt Options 7, Section 8,
A. (‘‘Permit and Registration Fees’’)
which will include text applicable to
both equities and options (the
‘‘Application Fee,’’ ‘‘Application Fee for
Lapsed Applications,’’ ‘‘Transfer of
Affiliation Fee,’’ ‘‘Account Fee,’’
‘‘Initiation Fee,’’ and ‘‘Permit Fees.’’).
The Exchange proposes also to
remove the callout (‘‘*’’) from the
Application, Account, and Initiation
fees’ subheadings since such footnote is
applicable to those who only apply for
membership with PSX.
Moreover, the Exchange proposes to
include under Options 7, Section 8, A.
portions of text from Chapter VI which
apply only to transactions in options
(namely, ‘‘Phlx Permit Fees,’’ ‘‘Inactive
Nominee Fee,’’ and ‘‘Clerk Fee’’). The
Exchange additionally proposes to
relocate to Options 7, Section 8,
subsections B. (‘‘Streaming Quote
Trader Fees’’), C. (‘‘Remote Market
Maker Organization Fee’’) and D.
(‘‘Remote Specialist Fee’’) from current
Chapter VI.
The proposed relocation of options
rules can be summarized as follows:
Schedule of fees
(Current)
Section
Section
Section
Section
SPY
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removal will not affect the rights of
prospective or existing members of the
Exchange.
The Exchange will thus relocate and
renumber the above-referenced rules as
follows:
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Pricing Schedule’s Introduction
PREFACE
A. Mini Option Fees
B. Customer Rebate Program
Rule 909. Collection of Exchange Fees and Other Claims
I. Rebates and Fees for Adding and Removing Liquidity in SPY
II. Multiply Listed Options Fees
III. Singly Listed Options
IV. Other Transaction Fees
V. Routing Fees
VI. Membership Fees
VII. Other Member Fees
IX. Proprietary Data Feed Fees
XIII. Access and Redistribution Fee
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Federal Register / Vol. 83, No. 213 / Friday, November 2, 2018 / Notices
The Exchange believes that the
changes previously explained are nonsubstantive and that they will facilitate
the use of the Rulebook by Members 9 of
the Exchange, including those who are
members of other Affiliated Exchanges,
and other market participants.
(d) Pricing Schedule Rules To Be
Removed
The Exchange proposes Pricing
Schedule’s Chapters X, XI, and XII not
to be relocated to the shell structure and
that they be removed from the
Rulebook. The aforementioned sections
are currently marked as ‘‘Reserved’’ and
their relocation to the shell structure is
unnecessary since the Exchange may
amend and create new rules if needed.
(e) 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 location of the Pricing Schedule
rules and/or any of their subsections.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,10 in general, and furthers the
objectives of Section 6(b)(5) of the Act,11
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 the 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
and renumbering of rules in the Equity
7 and Options 7 Pricing Schedules,
related cross-reference updates, and the
deletion of the Table of Contents, the
obsolete term ‘‘Phlx XL II,’’ and unused
Pricing Schedule chapters are of a nonsubstantive 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 non9 Exchange
Rule 100(a)(32).
U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(5).
10 15
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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 Equities’ and Options’
Pricing Schedules.
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 12 and Rule 19b–
4(f)(6) thereunder.13
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 14 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 15
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, which the
Exchange believes will improve the
organization and readability of the
Exchange’s Rulebook. Therefore, 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
12 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its intent to
file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
14 17 CFR 240.19b–4(f)(6).
15 17 CFR 240.19b–4(f)(6)(iii).
13 17
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55213
proposed rule change operative upon
filing.16
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–
Phlx–2018–66 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-2018–66. 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
16 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).
E:\FR\FM\02NON1.SGM
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55214
Federal Register / Vol. 83, No. 213 / Friday, November 2, 2018 / Notices
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–2018–66, and should
be submitted on or before November 23,
2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–23963 Filed 11–1–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84496; File No. SR–MSRB–
2018–08]
Self-Regulatory Organizations;
Municipal Securities Rulemaking
Board; Notice of Filing of a Proposed
Rule Change Concerning Certain Data
Elements on Form G–45 Under MSRB
Rule G–45, on Reporting of Information
on Municipal Fund Securities
October 29, 2018.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Exchange Act’’ or ‘‘Act’’) 1 and Rule
19b–4 thereunder,2 notice is hereby
given that on October 15, 2018 the
Municipal Securities Rulemaking Board
(the ‘‘MSRB’’ or ‘‘Board’’) filed with the
Securities and Exchange Commission
(the ‘‘SEC’’ or ‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the MSRB. 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 MSRB filed with the Commission
a proposed rule change to amend Form
G–45 under MSRB Rule G–45, on
reporting of information on municipal
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
17:57 Nov 01, 2018
Jkt 247001
fund securities,3 to clarify a data
element concerning the program
management fee, to add a data element
concerning the investment option
closing date, and to delete data elements
concerning annualized three-year
performance information (the ‘‘proposed
rule change’’). The MSRB requests that
the proposed rule change become
effective on June 30, 2019.
The text of the proposed rule change
is available on the MSRB’s website at
www.msrb.org/Rules-andInterpretations/SEC-Filings/2018Filings.aspx, at the MSRB’s principal
office, 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
MSRB 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 MSRB 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 MSRB proposes to refine and
enhance certain of the investment
option data that the MSRB collects
under Rule G–45 from underwriters to
529 savings plans 4 and ABLE
programs.5 Specifically, the MSRB
3 Form G–45 is an electronic form on which
submissions of the information required by Rule
G–45 are made to the MSRB.
4 Section 529 of the Internal Revenue Code of
1986, as amended (the ‘‘Code’’) established savings
plans (‘‘529 savings plans’’) to encourage saving for
future education costs. 26 U.S.C. 529(b)(1)(A)(ii).
The SEC has determined that interests offered by
such 529 savings plans are municipal securities
under Section 3(a)(29) of the Exchange Act.
Exchange Act Release No. 70462 (Sept. 20, 2013),
78 FR 67468, 67472–73 (Nov. 12, 2013).
Section 529 also established prepaid tuition
plans. 26 U.S.C. 529(b)(1)(A)(i). Under a prepaid
tuition plan, an investor may purchase tuition
credits or certificates on behalf of a designated
beneficiary, which entitle the beneficiary to the
waiver or payment of qualified higher education
expenses. Such credits or certificates generally are
not viewed as being municipal securities, and
dealers generally do not participate in the
marketing of prepaid tuition plans.
Thus, the term ‘‘529 plans’’ includes 529 saving
plans and prepaid tuition plans.
5 ABLE programs are programs designed to
implement Section 529A to the Code. 26 U.S.C.
529A. Section 529A of the Code permits a state, or
PO 00000
Frm 00073
Fmt 4703
Sfmt 4703
proposes to amend Form G–45 to (i)
clarify a data element concerning the
program management fee, (ii) add a data
element concerning the investment
option closing date, and (iii) delete data
elements concerning annualized threeyear performance information. As
discussed under ‘‘Statutory Basis,’’ the
proposed rule change would provide
information that would enhance the
MSRB’s and other regulators’ ability to
effectively and efficiently analyze 529
savings plans and ABLE programs to
assess the impact of each 529 savings
plan and ABLE program on the market,
to evaluate trends and differences, and
to gain an understanding of the
aggregate risk taken by investors.
Background
Rule G–45 requires brokers, dealers
and municipal securities dealers
(‘‘dealers’’) acting in the capacity as
underwriters to 529 savings plans or
ABLE programs to submit on a semiannual or annual basis (in the case of
performance data) certain information
about the plans or programs they
underwrite. That information includes
plan or program descriptive
information, assets, asset allocation
information (at the investment option
level), contributions, withdrawals, fee
and cost structure, performance, and
other information. Beginning with the
reporting period ending June 30, 2015
(in the case of 529 savings plans) and
June 30, 2018 (in the case of ABLE
programs), underwriters to 529 savings
plans or ABLE programs have reported
such information electronically to the
MSRB.
The collection of information under
Rule G–45 is intended to protect
investors, municipal entities and the
public interest and prevent fraudulent
and manipulative acts and practices.6
Specifically, collecting this information
enhances the MSRB’s understanding of
529 savings plans and ABLE programs.
Such information informs the MSRB’s
regulatory activities and also the
activities of those other financial
regulators (i.e., the SEC, the Financial
an agency or instrumentality thereof, to establish
and maintain a tax-advantaged savings program to
help support individuals with disabilities in
maintaining health, independence, and quality of
life.
6 Exchange Act Release No. 71598 (Feb. 21, 2014),
79 FR 11161, 11167 (Feb. 27, 2014) (SR–MSRB–
2013–04) (stating ‘‘to fulfill its statutory
responsibilities to investors and municipal entities
in the context of 529 plans, the Commission
believes that it is appropriate for the MSRB to
possess basic, reliable information regarding 529
plans, including the underlying investment
options’’). The MSRB believes that the collection of
data about ABLE programs is equally important for
the MSRB to fulfill its statutory responsibilities to
investors and municipal entities.
E:\FR\FM\02NON1.SGM
02NON1
]]>Agencies
[Federal Register Volume 83, Number 213 (Friday, November 2, 2018)]
[Notices]
[Pages 55210-55214]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-23963]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-84495; File No. SR-Phlx-2018-66]
Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Relocate the
Pricing Schedule Rules
October 29, 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 October 18, 2018, Nasdaq PHLX LLC (``Phlx'' 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.
---------------------------------------------------------------------------
[[Page 55211]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to (a) relocate rules from the Phlx's Pricing
Schedule (``Pricing Schedule'') and current Rule 909 to the Exchange's
rulebook's (``Rulebook'') shell structure,\3\ (b) eliminate the Pricing
Schedule's Table of Contents, obsolete text, and reserved rules; and
(c) make conforming cross-reference changes throughout the Rulebook.
---------------------------------------------------------------------------
\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 BX, Inc.; Nasdaq GEMX, LLC;
Nasdaq ISE, LLC; and Nasdaq MRX, LLC (``Affiliated Exchanges''). See
Securities Exchange Act Release No. 82169 (November 29, 2017), 82 FR
57508 (December 5, 2017) (SR-Phlx-2017-97).
---------------------------------------------------------------------------
The text of the proposed rule change is available on the Exchange's
website at https://nasdaqphlx.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, as part of its continued effort to promote efficiency
and the conformity of its processes with those of the Affiliated
Exchanges, and the goal of harmonizing and uniformizing its rules,
proposes to relocate the Pricing Schedule rules and Rule 909 to the
Exchange's shell structure. Specifically, the Exchange will relocate
the Pricing Schedule rules described below respectively into the Equity
7 and Options 7 sections of the shell structure (both named ``Pricing
Schedule'').
In addition, the Exchange proposes to delete the current Pricing
Schedule's Table of Contents and the obsolete term ``Phlx XL II'' at
current Chapter VI., A. Moreover, the Exchange proposes not to relocate
current Chapters X, XI, and XII, since these are reserved rules that do
not contain any rule text. Finally, the Exchange proposes to make
conforming cross-reference changes throughout the Rulebook.
(a) Table of Contents
The Exchange proposes to eliminate the existing Table of Contents
in the Phlx Pricing Schedule. The Table of Contents is unnecessary. The
website where the Phlx rules are listed \4\ contains hyperlinks and a
skeleton of the available rules within the site and enables market
participants to view all rules in that section.
---------------------------------------------------------------------------
\4\ Phlx rules are located at: https://nasdaqphlx.cchwallstreet.com.
---------------------------------------------------------------------------
(b) Relocation of Equity Rules
The Exchange proposes to adopt, under Equity 7, Section 1
(``General Provisions'') a modified version of the current introductory
text in the Pricing Schedule. Proposed Equity 7, Section 1(a) will
refer to the calculation of fees in the Exchange, with a specific
reference to the exception concerning disputes of Nasdaq PSX fees and
proprietary data feed fees. The Exchange notes that the relocated text
will not include the reference to disputes concerning fees for co-
location services. The co-location services rule was recently moved to
the General 8 section of the Rulebook \5\ and the rules of the proposed
Pricing Schedule will not apply to co-location services.\6\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 83465 (June 19,
2018), 83 FR 29594 (June 25, 2018) (SR-Phlx-2018-46).
\6\ See proposed Equity 7, Section 1(a): ``Policy for amending
billing information: Corrections submitted after trade date and
prior to the issuance of an invoice by the exchange must be
submitted to the Exchange in writing and must be accompanied by
supporting documentation. Only members may submit trade corrections.
All billing disputes must be submitted to the Exchange in
writing and must be accompanied by supporting documentation. All
disputes must be submitted no later than sixty (60) days after
receipt of a billing invoice, except for disputes concerning Nasdaq
PSX fees and proprietary data feed fees. The Exchange calculates
fees on a trade date basis. Only members may submit billing
disputes.''
---------------------------------------------------------------------------
The Exchange proposes also to relocate to Equity 7, Section 1(b)
the portion of the Pricing's Schedule's Preface that applies only to
equities. This will include the paragraph that reads ``For PSX
Equities.'' The relocated text has no application to transactions in
options and, therefore, will not be included in Options 7, Section 1(b)
described below.
The Exchange proposes also to relocate and renumber Phlx Rule 909
under both Equity 7, Section 2 and Options 7, Section 2 (both named
``Collection of Exchange Fees and Other Claims''). Rule 909 permits
Phlx to collect undisputed or final fees, fines, charges and/or other
monetary sanctions or other monies due and owing to the Exchange or
other charges related to Rule 924.\7\ The Exchange believes that,
unlike other rules in the 900 Rules Series (``Membership''), which
generally refer to the powers of the Board of Directors and the
authority it delegates to Senior Management of the Exchange, the direct
debit process established in Rule 909 will be better situated among the
relocated rules in the Equity 7 and Options 7 titles.
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 61405 (January 21,
2010), 75 FR 4888 (January 29, 2010) (SR-Phlx-2009-101) (Order
Approving a Proposed Rule Change Relating to Collection of Exchange
Fees).
---------------------------------------------------------------------------
Next, the Exchange proposes to relocate and renumber current
Pricing Schedule's Chapter VIII (``NASDAQ PSX FEES'') as Equity 7,
Section 3 in the shell structure. The text of this rule will not be
substantively changed other than to update the capitalization of its
title.
Today, Chapter VI of the Phlx Pricing Schedule consists of rule
text applicable to both equities and options. Specifically, references
to floor pricing apply to the options market, as only that market has a
trading floor. In Chapter VI, A. (``Permit and Registration Fees''),
the paragraph that describes PSX Only Permit Fees describes an equity
fee. The ``Application Fee,'' ``Application Fee for Lapsed
Applications,'' ``Transfer of Affiliation Fee,'' ``Account Fee,''
``Initiation Fee'' and ``Permit Fees'' apply to both equities and
options. Finally, the ``Inactive Nominee Fee'' and the ``Clerk Fee''
are floor fees and therefore apply to options only.\8\
---------------------------------------------------------------------------
\8\ As explained later, the Exchange is proposing to adopt a
parallel rule under the Options 7, Section 8 (``Membership Fees''),
with fees applicable to both options and equities and relocate only
the subsections from Chapter VI that apply to options.
---------------------------------------------------------------------------
The Exchange proposes to adopt Equity 7, Section 4 (``Membership
Fees''), A. (``Permit and Registration Fees'') by adapting text from
current Chapter VI, A. of the Pricing Schedule. Specifically, as
previously noted, Equity 7, Section 4, A. will consist of the following
fees: ``Application Fee,'' ``Application Fee for Lapsed Applications,''
``Transfer of Affiliation Fee,'' ``Account Fee,'' ``Initiation Fee,''
and ``Permit Fees.'' Proposed Equity 7, Section 4 will also include
text from the current rule which is only applicable to PSX
transactions; thus, the Exchange proposes to relocate the text under
the subheading ``PSX Only Permit Fees.''
Additionally, the Exchange will relocate the callout (``*'') and
respective
[[Page 55212]]
footnote that accompany the ``Application Fee,'' ``Application Fee for
Lapsed Applications,'' ``Account Fee,'' and ``Initiation Fee''
subheadings; this is because the footnote is exclusively applicable to
those who only apply for PSX membership, and therefore should be moved
to the Equity 7 title.
The Exchange notes that it will not relocate the obsolete term
``Phlx XL II'' used in the footnote described above; the term is a
legacy reference and its removal will not affect the rights of
prospective or existing members of the Exchange.
The Exchange will thus relocate and renumber the above-referenced
rules as follows:
----------------------------------------------------------------------------------------------------------------
Equity 7--Pricing schedule (Proposed) Schedule of fees (Current)
----------------------------------------------------------------------------------------------------------------
Section 1. General Provisions--(a) Pricing Schedule's Introduction
Section 1. General Provisions--(b) PREFACE
Section 2. Collection of Exchange Fees and Other Claims Rule 909. Collection of Exchange Fees and Other Claims
Section 3. Nasdaq PSX Fees VIII. Nasdaq PSX Fees
Section 4. Membership Fees VI. Membership Fees
----------------------------------------------------------------------------------------------------------------
(c) Relocation of Options Rules
The Exchange proposes to adopt, under Options 7, Section 1(a), a
modified version of the current introductory section in the Pricing
Schedule. Proposed Options 7, Section 1(a) will refer to the
calculation of fees in the Exchange, with a specific reference to the
exception concerning disputes of proprietary data fees, which applies
to transactions in options. The Exchange believes that this change will
improve the readability of the rules relocated under the Options 7
title.
The Exchange also proposes to adopt under Options 7, Section 1(b)
the text from the Pricing Schedule's Preface that applies only to
transactions in options. Specifically, proposed Options 7, Section 1(b)
will contain the text that opens with ``For Phlx Options''; the
definitions of ``Customer''; ``Specialist''; ``ROT, SQT and RSQT'';
``Market Maker''; ``Registered Option Trader''; ``Streaming Quote
Trader''; ``Remote Streaming Quote Trader''; ``Firm'';
``Professional''; ``Broker-Dealer''; ``Joint Back Office''; ``Common
Ownership''; and ``Non-Customer''; and the rules that apply to options
transactions fees or rebates described under the subsection ``For
Purposes of Common Ownership Aggregation of Activity of Affiliated
Members and Member Organizations,'' including the terms ``Appointed
MM,'' ``Appointed OFP,'' and ``Affiliated Entity.''
The Exchange additionally proposes that Subsections A and B
(respectively, ``Mini Options Fees'' and ``Customer Rebate Program'')
in the Pricing Schedule's Preface remain unchanged and be relocated to
proposed Options 7, Section 1(b).
As previously explained, the Exchange proposes also to adopt a
rule, under Options 7, Section 2, for the collection of undisputed fees
or other monies identical to current Phlx Rule 909 (``Collection of
Exchange Fees and Other Claims''), which will parallel the rule under
Equity 7, Section 2.
The Exchange proposes also to relocate, renumber, and add the word
``Section'' to each of the following chapters in the Pricing Schedule:
I (``Rebates and Fees for Adding and Removing Liquidity in SPY''); II
(``Multiply Listed Options Fees''), III (``Singly Listed Options''); IV
(``Other Transaction Fees''); V (``Routing Fees''); VII (``Other Member
Fees''); IX (``Proprietary Data Feed Fees''); and XIII (``Access and
Redistribution Fee'').
With respect to the text in current Chapter VI of the Pricing
Schedule, as previously explained, the Exchange proposes to adopt
Options 7, Section 8, A. (``Permit and Registration Fees'') which will
include text applicable to both equities and options (the ``Application
Fee,'' ``Application Fee for Lapsed Applications,'' ``Transfer of
Affiliation Fee,'' ``Account Fee,'' ``Initiation Fee,'' and ``Permit
Fees.'').
The Exchange proposes also to remove the callout (``*'') from the
Application, Account, and Initiation fees' subheadings since such
footnote is applicable to those who only apply for membership with PSX.
Moreover, the Exchange proposes to include under Options 7, Section
8, A. portions of text from Chapter VI which apply only to transactions
in options (namely, ``Phlx Permit Fees,'' ``Inactive Nominee Fee,'' and
``Clerk Fee''). The Exchange additionally proposes to relocate to
Options 7, Section 8, subsections B. (``Streaming Quote Trader Fees''),
C. (``Remote Market Maker Organization Fee'') and D. (``Remote
Specialist Fee'') from current Chapter VI.
The proposed relocation of options rules can be summarized as
follows:
----------------------------------------------------------------------------------------------------------------
Options 7--Pricing schedule (Proposed) Schedule of fees (Current)
----------------------------------------------------------------------------------------------------------------
Section 1. General Provisions--(a) Pricing Schedule's Introduction
Section 1. General Provisions--(b) PREFACE
Section 2. Collection of Exchange Fees and Other Claims A. Mini Option Fees
Section 3. Rebates and Fees for Adding and Removing B. Customer Rebate Program
Liquidity in SPY Rule 909. Collection of Exchange Fees and Other Claims
I. Rebates and Fees for Adding and Removing Liquidity
in SPY
Section 4. Multiply Listed Options Fees II. Multiply Listed Options Fees
Section 5. Singly Listed Options III. Singly Listed Options
Section 6. Other Transaction Fees IV. Other Transaction Fees
Section 7. Routing Fees V. Routing Fees
Section 8. Membership Fees VI. Membership Fees
Section 9. Other Member Fees VII. Other Member Fees
Section 10. Proprietary Data Feed Fees IX. Proprietary Data Feed Fees
Section 11. Access and Redistribution Fee XIII. Access and Redistribution Fee
----------------------------------------------------------------------------------------------------------------
[[Page 55213]]
The Exchange believes that the changes previously explained are
non-substantive and that they will facilitate the use of the Rulebook
by Members \9\ of the Exchange, including those who are members of
other Affiliated Exchanges, and other market participants.
---------------------------------------------------------------------------
\9\ Exchange Rule 100(a)(32).
---------------------------------------------------------------------------
(d) Pricing Schedule Rules To Be Removed
The Exchange proposes Pricing Schedule's Chapters X, XI, and XII
not to be relocated to the shell structure and that they be removed
from the Rulebook. The aforementioned sections are currently marked as
``Reserved'' and their relocation to the shell structure is unnecessary
since the Exchange may amend and create new rules if needed.
(e) 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 location of the Pricing Schedule rules and/or any
of their subsections.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\10\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\11\ 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 the 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 and renumbering of rules in the Equity 7 and Options 7
Pricing Schedules, related cross-reference updates, and the deletion of
the Table of Contents, the obsolete term ``Phlx XL II,'' and unused
Pricing Schedule chapters are of a non-substantive nature.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f(b).
\11\ 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 Equities' and Options' Pricing Schedules.
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 \12\ and Rule 19b-
4(f)(6) thereunder.\13\
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------
A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \14\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \15\ 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, which the Exchange believes will improve
the organization and readability of the Exchange's Rulebook. Therefore,
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.\16\
---------------------------------------------------------------------------
\14\ 17 CFR 240.19b-4(f)(6).
\15\ 17 CFR 240.19b-4(f)(6)(iii).
\16\ 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-Phlx-2018-66 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-2018-66. 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
[[Page 55214]]
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-2018-66, and should be submitted on or before November 23, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-23963 Filed 11-1-18; 8:45 am]
BILLING CODE 8011-01-P
