Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Derivative Securities Traded Under Unlisted Trading Privileges, 56888-56890 [2018-24733]
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Federal Register / Vol. 83, No. 220 / Wednesday, November 14, 2018 / Notices
recommendations to the appointing
authority regarding the performance of
the senior executive.
The following have been designated
as members of the Performance Review
Board of the U.S. Office of Personnel
Management:
Michael Rigas, Deputy Director, Chair
Kathleen McGettigan, Chief
Management Officer
Andrea Bright, Chief Human Capital
Officer
Mark Reinhold, Associate Director for
Employee Services
Dennis Coleman, Chief Financial Officer
Charles Phalen, National Background
Investigations Bureau Director
Kenneth Zawodny, Associate Director
for Retirement Services
Alan Spielman, Healthcare and
Insurance Director
Office of Personnel Management.
Alexys Stanley,
Regulatory Affairs Analyst.
[FR Doc. 2018–24724 Filed 11–13–18; 8:45 am]
BILLING CODE 6325–45–P
POSTAL REGULATORY COMMISSION
[Docket Nos. MC2019–11 and CP2019–10]
New Postal Product
Postal Regulatory Commission.
Notice.
AGENCY:
ACTION:
The Commission is noticing a
recent Postal Service filing for the
Commission’s consideration concerning
a negotiated service agreement. This
notice informs the public of the filing,
invites public comment, and takes other
administrative steps.
DATES: Comments are due: November
15, 2018.
ADDRESSES: Submit comments
electronically via the Commission’s
Filing Online system at https://
www.prc.gov. Those who cannot submit
comments electronically should contact
the person identified in the FOR FURTHER
INFORMATION CONTACT section by
telephone for advice on filing
alternatives.
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
David A. Trissell, General Counsel, at
202–789–6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Docketed Proceeding(s)
to negotiated service agreement(s). The
request(s) may propose the addition or
removal of a negotiated service
agreement from the market dominant or
the competitive product list, or the
modification of an existing product
currently appearing on the market
dominant or the competitive product
list.
Section II identifies the docket
number(s) associated with each Postal
Service request, the title of each Postal
Service request, the request’s acceptance
date, and the authority cited by the
Postal Service for each request. For each
request, the Commission appoints an
officer of the Commission to represent
the interests of the general public in the
proceeding, pursuant to 39 U.S.C. 505
(Public Representative). Section II also
establishes comment deadline(s)
pertaining to each request.
The public portions of the Postal
Service’s request(s) can be accessed via
the Commission’s website (https://
www.prc.gov). Non-public portions of
the Postal Service’s request(s), if any,
can be accessed through compliance
with the requirements of 39 CFR
3007.301.1
The Commission invites comments on
whether the Postal Service’s request(s)
in the captioned docket(s) are consistent
with the policies of title 39. For
request(s) that the Postal Service states
concern market dominant product(s),
applicable statutory and regulatory
requirements include 39 U.S.C. 3622, 39
U.S.C. 3642, 39 CFR part 3010, and 39
CFR part 3020, subpart B. For request(s)
that the Postal Service states concern
competitive product(s), applicable
statutory and regulatory requirements
include 39 U.S.C. 3632, 39 U.S.C. 3633,
39 U.S.C. 3642, 39 CFR part 3015, and
39 CFR part 3020, subpart B. Comment
deadline(s) for each request appear in
section II.
II. Docketed Proceeding(s)
1. Docket No(s).: MC2019–11 and
CP2019–10; Filing Title: USPS Request
to Add Priority Mail Contract 472 to
Competitive Product List and Notice of
Filing Materials Under Seal; Filing
Acceptance Date: November 6, 2018;
Filing Authority: 39 U.S.C. 3642, 39 CFR
3020.30 et seq., and 39 CFR 3015.5;
Public Representative: Curtis E. Kidd;
Comments Due: November 15, 2018.
The Commission gives notice that the
Postal Service filed request(s) for the
Commission to consider matters related
18:29 Nov 13, 2018
[FR Doc. 2018–24725 Filed 11–13–18; 8:45 am]
BILLING CODE 7710–FW–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84546; File No. SR–BX–
2018–051]
Self-Regulatory Organizations; Nasdaq
BX, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Derivative
Securities Traded Under Unlisted
Trading Privileges
November 7, 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
26, 2018, Nasdaq BX, Inc. (‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
Exchange’s Rule 4421 related to
derivative securities traded under
unlisted trading privileges (‘‘UTP’’) to:
(i) Remove the requirement in Rule
4421(a)(1) for the Exchange to file with
the Commission a Form 19b–4(e) for
each ‘‘new derivative securities
product’’ as defined in Rule 19b–4(e)
under the Act 3 (‘‘Derivative Security’’)
traded under UTP; (ii) add a word that
was inadvertently omitted in the
previous version of Rule 4421(a)(2); and
(iii) renumber the remaining provisions
of Rule 4421(a) to maintain an organized
rule structure. The Exchange has
designated this rule change as ‘‘noncontroversial’’ under Section 19(b)(3)(A)
of the Act 4 and provided the
Commission with the notice required by
Rule 19b–4(f)(6) thereunder.5
The text of the proposed rule change
is available on the Exchange’s website at
https://nasdaqbx.cchwallstreet.com/, at
the principal office of the Exchange, and
1 15
I. Introduction
VerDate Sep<11>2014
This Notice will be published in the
Federal Register.
Stacy L. Ruble,
Secretary.
Jkt 247001
1 See
Docket No. RM2018–3, Order Adopting
Final Rules Relating to Non-Public Information,
June 27, 2018, Attachment A at 19–22 (Order No.
4679).
PO 00000
Frm 00091
Fmt 4703
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 17 CFR 240.19b–4(e).
4 15 U.S.C. 78s(b)(3)(A).
5 17 CFR 240.19b–4(f)(6).
2 17
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Federal Register / Vol. 83, No. 220 / Wednesday, November 14, 2018 / Notices
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 purpose of the proposed rule
change is to amend Rule 4421 related to
derivative securities traded under UTP
by: (i) Removing the requirement in
Rule 4421(a)(1) for the Exchange to file
with the Commission a Form 19b–4(e)
for each Derivative Security; (ii) adding
a word that was inadvertently omitted
in the previous version of Rule
4421(a)(2); and (iii) renumbering the
remaining rules of Rule 4421(a) to
maintain an organized rule structure, as
described below.
Rule 4421(a)(1) sets forth the
requirement for the Exchange to file
with the Commission a Form 19b–4(e)
with respect to each Derivative Security
that is traded under UTP. However, the
Exchange believes that it should not be
necessary to file a Form 19b–4(e) with
the Commission if it begins trading a
Derivative Security on a UTP basis
because Rule 19b–4(e)(1) under the Act
refers to the ‘‘listing and trading’’ of a
‘‘new derivative securities product.’’
The Exchange believes that the
requirements of that Rule refer to when
an exchange lists and trades a Derivative
Security, and not when an exchange
seeks only to trade such product on a
UTP basis pursuant to Rule 12f–2 under
the Act.6 Therefore, the Exchange
proposes to delete the requirement in
current Rule 4421(a)(1) for the Exchange
to file a Form 19b–4(e) with the
Commission with respect to each
Derivative Security it begins trading on
a UTP basis.
Rule 4421(a)(2) sets forth the
requirement for the Exchange to
distribute an information circular prior
6 17
CFR 240.12f–2.
VerDate Sep<11>2014
18:29 Nov 13, 2018
Jkt 247001
56889
to the commencement of trading a
Derivative Security on a UTP basis. The
Exchange proposes to add a ‘‘the’’ that
was inadvertently omitted in the
previous version of clause (c) of Rule
4421(a)(2) to enhance the readability of
the Rule. This change is not substantive.
Lastly, as a result of the deletion of
current Rule 4421(a)(1), the Exchange
proposes to renumber current Rules
4421(a)(2)–(6), as Rules 4421(a)(1)–(5)
respectively.
Lastly, the Exchange believes that
renumbering the current Rules
4421(a)(2)–(6) as Rules 4421(a)(1)–(5) is
consistent with the Act because it will
allow the Exchange to maintain a clear
and organized rule structure, thus
preventing investor confusion.
For these reasons, the Exchange
believes the proposed rule change is
consistent with the requirements of
Section 6(b)(5) of the Act.12
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6(b) 7 of the
Act, in general, and furthers the
objectives of Section 6(b)(5) of the Act 8
in particular, in that it is designed to
prevent fraudulent and manipulative
acts and practices, 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. Specifically, eliminating
the requirement to file a Form 19b–4(e)
for each Derivative Security is
consistent with the Act because the
regulatory requirement was not
intended to apply in the context of
Derivative Securities trading on a UTP
basis. The proposal, moreover, will
provide for a more efficient process for
adding Derivative Securities to trading
on the Exchange on a UTP basis.
In addition, the Exchange notes that
the Commission recently approved a
substantially identical proposed rule
change filed by NYSE National, Inc.
(‘‘NYSE National’’).9 In particular, the
Commission noted in the NYSE
National Approval Order that it
‘‘believes that the filing of a Form 19b–
4(e) is not required when an Exchange
is trading a new derivative securities
product on a UTP basis only’’ 10 and it
also found that the NYSE National’s
proposed rule change was ‘‘consistent
with the requirements of Section 6(b)(5)
of the Act.’’ 11
With respect to the addition of a ‘‘the’’
that was inadvertently omitted in the
previous version of clause (c) of Rule
4421(a)(2), the Exchange believes that
this change is consistent with the Act
because it will improve the readability
and clarity of the Rule. This change is
not substantive.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
7 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
9 See Securities Exchange Act Release No. 34–
83289 (May 17, 2018), 83 FR 23968 (May 23, 2018)
(Order Approving File No. SR–NYSENAT–2018–02)
(the ‘‘NYSE National Approval Order’’).
10 See supra note 9, at 23975, n.149.
11 See supra note 9 at page 23975–6.
8 15
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Fmt 4703
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The Exchange does not believe that
the proposed rule change will result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. To the
contrary, removing the requirement to
file a Form 19b–4(e) will serve to
enhance competition by providing for
the efficient addition of Derivative
Securities for trading under UTP on the
Exchange. To the extent that a
competitor marketplace believes that the
proposed rule change places it at a
competitive disadvantage, it may file
with the Commission a proposed rule
change to adopt the same or similar
rule.
In addition, the proposal to add a
‘‘the’’ that was inadvertently omitted in
the previous version of clause (c) of
Rule 4421(a)(2) does not impact
competition in any respect since it
merely corrects a non-substantive rule
text error.
Lastly, the proposal to renumber the
current Rules 4421(a)(2)–(6) as Rules
4421(a)(1)–(5) does not impact
competition in any respect since it
merely maintains a clear and organized
rule structure.
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 proposed rule change
does not: (i) Significantly affect the
protection of investors or the public
interest; (ii) impose any significant
burden on competition; or (iii) become
operative prior to 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
12 See
E:\FR\FM\14NON1.SGM
supra note 8.
14NON1
56890
Federal Register / Vol. 83, No. 220 / Wednesday, November 14, 2018 / Notices
Section 19(b)(3)(A) of the Act 13 and
Rule 19b–4(f)(6) thereunder.14
The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. Waiving the 30-day delay would
permit the Exchange to more efficiently
add Derivative Securities to the
Exchange under UTP without the
unnecessary requirement to file a 19b–
4(e) with the Commission. The
Commission also notes that because the
Exchange is adopting a rule that is
substantially identical to a similar NYSE
National rule, the proposed change does
not present any new or novel issues.
Thus, the Commission believes that
waiver of the 30-day operative delay is
consistent with the protection of
investors and the public interest and
hereby waives the 30-day operative
delay and designates the proposed rule
change to be operative upon filing.15
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.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
BX–2018–051 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.
13 15
U.S.C. 78s(b)(3)(A).
14 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.
15 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
VerDate Sep<11>2014
18:29 Nov 13, 2018
Jkt 247001
All submissions should refer to File
Number SR–BX–2018–051. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–BX–2018–051 and should
be submitted on or before December 5,
2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–24733 Filed 11–13–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84547; File No. SR–
NYSEARCA–2018–77]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing of Proposed
Rule Change To Amend Rule 7.44–E
November 7, 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
26, 2018, NYSE Arca, Inc. (‘‘NYSE
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00093
Fmt 4703
Sfmt 4703
Arca’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I, II,
and III below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 7.44–E, which sets forth the
Exchange’s Retail Liquidity Program.
The proposed 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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
Rule 7.44–E, which sets forth the
Exchange’s Retail Liquidity Program
(the ‘‘Program’’), to: (i) Expand the
Program’s availability to all securities
traded on the Exchange; (ii) remove
unused functionality by eliminating the
Type 2—Retail Order and no longer
permit Retail Price Improvement Orders
(‘‘RPI’’) to be designated as a Mid-Point
Liquidity (‘‘MPL’’) Order; 3 and (iii) offer
additional functionality to RPI Orders
by allowing them to include an optional
offset.
The Exchange established the
Program to attract retail order flow to
the Exchange, and allow such order
flow to receive potential price
improvement.4 The Program is currently
3 Rule
7.31–E(d)(3).
Securities Exchange Act Release No. 71176
(December 23, 2013), 78 FR 79524 (December 30,
2013) (SR–NYSEArca–2013–107) (‘‘RLP Approval
Order’’).
4 See
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]]>Agencies
[Federal Register Volume 83, Number 220 (Wednesday, November 14, 2018)]
[Notices]
[Pages 56888-56890]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-24733]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-84546; File No. SR-BX-2018-051]
Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Relating to
Derivative Securities Traded Under Unlisted Trading Privileges
November 7, 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 26, 2018, Nasdaq BX, Inc. (``Exchange'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change as described in Items I and II below, which Items have been
prepared by the Exchange. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the Exchange's Rule 4421 related to
derivative securities traded under unlisted trading privileges
(``UTP'') to: (i) Remove the requirement in Rule 4421(a)(1) for the
Exchange to file with the Commission a Form 19b-4(e) for each ``new
derivative securities product'' as defined in Rule 19b-4(e) under the
Act \3\ (``Derivative Security'') traded under UTP; (ii) add a word
that was inadvertently omitted in the previous version of Rule
4421(a)(2); and (iii) renumber the remaining provisions of Rule 4421(a)
to maintain an organized rule structure. The Exchange has designated
this rule change as ``non-controversial'' under Section 19(b)(3)(A) of
the Act \4\ and provided the Commission with the notice required by
Rule 19b-4(f)(6) thereunder.\5\
---------------------------------------------------------------------------
\3\ 17 CFR 240.19b-4(e).
\4\ 15 U.S.C. 78s(b)(3)(A).
\5\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
The text of the proposed rule change is available on the Exchange's
website at https://nasdaqbx.cchwallstreet.com/, at the principal office
of the Exchange, and
[[Page 56889]]
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 purpose of the proposed rule change is to amend Rule 4421
related to derivative securities traded under UTP by: (i) Removing the
requirement in Rule 4421(a)(1) for the Exchange to file with the
Commission a Form 19b-4(e) for each Derivative Security; (ii) adding a
word that was inadvertently omitted in the previous version of Rule
4421(a)(2); and (iii) renumbering the remaining rules of Rule 4421(a)
to maintain an organized rule structure, as described below.
Rule 4421(a)(1) sets forth the requirement for the Exchange to file
with the Commission a Form 19b-4(e) with respect to each Derivative
Security that is traded under UTP. However, the Exchange believes that
it should not be necessary to file a Form 19b-4(e) with the Commission
if it begins trading a Derivative Security on a UTP basis because Rule
19b-4(e)(1) under the Act refers to the ``listing and trading'' of a
``new derivative securities product.'' The Exchange believes that the
requirements of that Rule refer to when an exchange lists and trades a
Derivative Security, and not when an exchange seeks only to trade such
product on a UTP basis pursuant to Rule 12f-2 under the Act.\6\
Therefore, the Exchange proposes to delete the requirement in current
Rule 4421(a)(1) for the Exchange to file a Form 19b-4(e) with the
Commission with respect to each Derivative Security it begins trading
on a UTP basis.
---------------------------------------------------------------------------
\6\ 17 CFR 240.12f-2.
---------------------------------------------------------------------------
Rule 4421(a)(2) sets forth the requirement for the Exchange to
distribute an information circular prior to the commencement of trading
a Derivative Security on a UTP basis. The Exchange proposes to add a
``the'' that was inadvertently omitted in the previous version of
clause (c) of Rule 4421(a)(2) to enhance the readability of the Rule.
This change is not substantive.
Lastly, as a result of the deletion of current Rule 4421(a)(1), the
Exchange proposes to renumber current Rules 4421(a)(2)-(6), as Rules
4421(a)(1)-(5) respectively.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6(b) \7\ of the Act, in general, and
furthers the objectives of Section 6(b)(5) of the Act \8\ in
particular, in that it is designed to prevent fraudulent and
manipulative acts and practices, 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. Specifically,
eliminating the requirement to file a Form 19b-4(e) for each Derivative
Security is consistent with the Act because the regulatory requirement
was not intended to apply in the context of Derivative Securities
trading on a UTP basis. The proposal, moreover, will provide for a more
efficient process for adding Derivative Securities to trading on the
Exchange on a UTP basis.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
In addition, the Exchange notes that the Commission recently
approved a substantially identical proposed rule change filed by NYSE
National, Inc. (``NYSE National'').\9\ In particular, the Commission
noted in the NYSE National Approval Order that it ``believes that the
filing of a Form 19b-4(e) is not required when an Exchange is trading a
new derivative securities product on a UTP basis only'' \10\ and it
also found that the NYSE National's proposed rule change was
``consistent with the requirements of Section 6(b)(5) of the Act.''
\11\
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\9\ See Securities Exchange Act Release No. 34-83289 (May 17,
2018), 83 FR 23968 (May 23, 2018) (Order Approving File No. SR-
NYSENAT-2018-02) (the ``NYSE National Approval Order'').
\10\ See supra note 9, at 23975, n.149.
\11\ See supra note 9 at page 23975-6.
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With respect to the addition of a ``the'' that was inadvertently
omitted in the previous version of clause (c) of Rule 4421(a)(2), the
Exchange believes that this change is consistent with the Act because
it will improve the readability and clarity of the Rule. This change is
not substantive.
Lastly, the Exchange believes that renumbering the current Rules
4421(a)(2)-(6) as Rules 4421(a)(1)-(5) is consistent with the Act
because it will allow the Exchange to maintain a clear and organized
rule structure, thus preventing investor confusion.
For these reasons, the Exchange believes the proposed rule change
is consistent with the requirements of Section 6(b)(5) of the Act.\12\
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\12\ See supra note 8.
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. To the contrary,
removing the requirement to file a Form 19b-4(e) will serve to enhance
competition by providing for the efficient addition of Derivative
Securities for trading under UTP on the Exchange. To the extent that a
competitor marketplace believes that the proposed rule change places it
at a competitive disadvantage, it may file with the Commission a
proposed rule change to adopt the same or similar rule.
In addition, the proposal to add a ``the'' that was inadvertently
omitted in the previous version of clause (c) of Rule 4421(a)(2) does
not impact competition in any respect since it merely corrects a non-
substantive rule text error.
Lastly, the proposal to renumber the current Rules 4421(a)(2)-(6)
as Rules 4421(a)(1)-(5) does not impact competition in any respect
since it merely maintains a clear and organized rule structure.
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 proposed rule change does not: (i) Significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; or (iii) become operative prior to
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
[[Page 56890]]
Section 19(b)(3)(A) of the Act \13\ and Rule 19b-4(f)(6)
thereunder.\14\
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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The Exchange has asked the Commission to waive the 30-day operative
delay so that the proposal may become operative immediately upon
filing. Waiving the 30-day delay would permit the Exchange to more
efficiently add Derivative Securities to the Exchange under UTP without
the unnecessary requirement to file a 19b-4(e) with the Commission. The
Commission also notes that because the Exchange is adopting a rule that
is substantially identical to a similar NYSE National rule, the
proposed change does not present any new or novel issues. Thus, the
Commission believes that waiver of the 30-day operative delay is
consistent with the protection of investors and the public interest and
hereby waives the 30-day operative delay and designates the proposed
rule change to be operative upon filing.\15\
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\15\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-BX-2018-051 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-BX-2018-051. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-BX-2018-051 and should be submitted on
or before December 5, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-24733 Filed 11-13-18; 8:45 am]
BILLING CODE 8011-01-P
