Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend The Nasdaq Options Market LLC (“NOM”) Fees, 60527-60529 [2018-25735]

Download as PDF Federal Register / Vol. 83, No. 227 / Monday, November 26, 2018 / Notices DC 20549 or send an email to: PRA_ Mailbox@sec.gov. the most significant aspects of such statements. Dated: November 20, 2018. Eduardo A. Aleman, Assistant Secretary. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change [FR Doc. 2018–25689 Filed 11–23–18; 8:45 am] BILLING CODE 8011–01–P 1. Purpose The purpose of the proposed rule change is to define ‘‘account number’’ and utilize that term within Chapter XV, Sections 3 and 9. Each change will be described in more detail below. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–84633; File No. SR– NASDAQ–2018–091] Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend The Nasdaq Options Market LLC (‘‘NOM’’) Fees November 20, 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 November 9, 2018, The Nasdaq Stock Market LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, 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 The Nasdaq Options Market LLC (‘‘NOM’’) fees within Chapter XV, Section 3, titled ‘‘Nasdaq Options Market—Ports and Other Services.’’ The text of the proposed rule change is available on the Exchange’s website at https://nasdaq.cchwallstreet.com/, at the principal office of the Exchange, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of 1 15 2 17 U.S.C. 78s(b)(1). CFR 240.19b 4. VerDate Sep<11>2014 17:28 Nov 23, 2018 Jkt 247001 New Defined Term ‘‘Account’’ The Exchange proposes to adopt a new definition within Chapter XV, Section 3 and apply this definition within Chapter XV, Sections 3 and 9. The purpose of this defined new term ‘‘account number’’ is to conform the Exchange’s use of certain terms within NOM Rules. This term would be utilized in Chapter XV to describe the manner in which pricing is calculated. Recently, the Nasdaq affiliated exchanges filed rule changes to conform the usage of various terms across its 6 affiliated options markets within the various rulebooks.3 The Exchange believes that utilizing the same defined terms, where possible, across its 6 affiliated options markets will avoid confusion for certain rules and pricing purposes. The term ‘‘account number’’ can be defined identically across Nasdaq’s 6 affiliated options markets for purposes of pricing ports. The Exchange is not amending the manner in which pricing will be applied with respect to this particular change. The Exchange proposes to utilize the defined term ‘‘account number’’ in place of the term ‘‘mnemonic,’’ which was not defined in the pricing rules. The insertion of the new defined term is intended to add more specificity and clarity to the current pricing. 3 NOM has filed to define the terms ‘‘account number,’’ ‘‘badge’’ and ‘‘mnemonic’’ at Chapter I, Section 1(a)(69), (70) and (71) respectively. See SR– NASDAQ–2018–085 (not yet published) [published on November 16, 2018]. Nasdaq Phlx LLC has filed to define the terms ‘‘account number,’’ ‘‘badge’’ and ‘‘mnemonic’’ at Rule 1000(b)(51), (52) and (53) respectively. See SR–Phlx–2018–69 (not yet published). Nasdaq BX, Inc. has filed to define the terms ‘‘account number,’’ ‘‘badge’’ and ‘‘mnemonic’’ at Chapter I, Section 1(a)(70), (71) and (72) respectively. See Securities Exchange Act Release No. 84520 (November 1, 2018) (SR–BX–2018–050) (not yet published) [published on November 7, 2018]. See also ISE Rule 100(a)(1), (5) and (34) which defines the terms ‘‘account number,’’ ‘‘badge’’ and ‘‘mnemonic,’’ respectively. See also GEMX Rule 100(a)(1), (5) and (35) which defines the terms ‘‘account number,’’ ‘‘badge’’ and ‘‘mnemonic,’’ respectively. See also MRX Rule 100(a)(1), (5) and (36) which defines the terms ‘‘account number,’’ ‘‘badge’’ and ‘‘mnemonic,’’ respectively. PO 00000 Frm 00137 Fmt 4703 Sfmt 4703 60527 At this time, the Exchange proposes to define an ‘‘account number’’ within Chapter XV, Section 3 to mean a number assigned to a Participant. Participants may have more than one account number. The term ‘‘mnemonic’’ has been used frequently throughout Chapter XV without being defined. The Exchange proposes to remove the term ‘‘mnemonic’’ from Chapter XV, Section 3 and replace the term with the defined term ‘‘account number’’ for FIX and the OTTO protocols. The Exchange notes that the terms mnemonic and account number were being used interchangeably. The Exchange recently defined both terms in its rules.4 The term account number is appropriate to describe these fees. The Exchange is not amending the manner in which it assesses those port fees, rather the Exchange simply proposes to utilize the new term to better describe its current pricing. Also, the Exchange proposes to remove the term ‘‘mnemonic’’ from the CTI Port Fee, FIX DROP Port Fee, OTTO DROP Fee, ITTO Port Fee and Bono Port Fee. Today, these ports are assessed only one fee per port, per month and therefore adding the term ‘‘per account number’’ would be redundant and unnecessary. These ports are associated with one account number. The Exchange is not proposing to amend the manner in which these ports are assessed, rather the Exchange proposes to eliminate the ‘‘per mnemonic’’ description. The Exchange believes that the billing is clearly defined as ‘‘per port, per month.’’ Account number is also being defined in Section 9, ‘‘Account Fee—Options.’’ The Exchange is not amending the manner in which this fee is billed, rather the Exchange is defining the term account number within Section 9. The defined term account number will be utilized consistently throughout the NOM pricing, where applicable. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,5 in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,6 in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges 4 A ‘‘mnemonic’’ is defined as an acronym comprised of letters and/or numbers assigned to Participants. A Participant account may be associated with multiple mnemonics. See SR– NASDAQ–2018–085 (not yet published) [published on November 16, 2018]. Mnemonics are issued to Participants to identify associated persons of Participants. 5 15 U.S.C. 78f(b). 6 15 U.S.C. 78f(b)(4) and (5). E:\FR\FM\26NON1.SGM 26NON1 60528 Federal Register / Vol. 83, No. 227 / Monday, November 26, 2018 / Notices among members and issuers and other persons using any facility, and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. New Defined Term ‘‘Account’’ The Exchange’s proposal to define the term ‘‘account number’’ within Chapter XV, Sections 3 and 9 and apply that term within Chapter XV, Section 3, in place of the term ‘‘mnemonic’’ as to the manner in which FIX and OTTO Port Fees are priced is reasonable because the term is defined and will be utilized consistently throughout Chapter XV, where applicable. The usage of the defined term ‘‘account number’’ will bring uniformity to the term and its usage across the 6 affiliated options markets. The proposed change to utilize the defined term will not amend the manner in which the ports are billed, rather it will also bring greater clarity to pricing in Chapter XV, Sections 3 and 9. The Exchange’s proposal to define the term ‘‘account number’’ within Chapter XV, Sections 3 and 9 and apply that term within Chapter XV, Section 3, in place of the term ‘‘mnemonic’’ for the FIX and OTTO Port Fees is equitable and not unfairly discriminatory because the Exchange proposes to apply that term uniformly in billing Participants utilizing those ports and for purposes of the Account Fee. The Exchange’s proposal to remove the term ‘‘mnemonic’’ for the pricing of the CTI Port Fee, FIX DROP Port Fee, OTTO DROP Fee, ITTO Port Fee and Bono Port Fee is reasonable because, today, these ports are assessed only one fee per port, per month and this change will bring greater clarity to the manner in which these services are billed. The term ‘‘mnemonic’’ was undefined until the Exchange filed SR–NASDAQ–2018– 085.7 The manner in which the term ‘‘mnemonic’’ was defined for purposes of NOM’s Rules is not the manner that was intended for pricing these ports. To that end, the Exchange proposes to remove the term ‘‘mnemonic’’ and replace that term with ‘‘account number,’’ where applicable, to convey the intended manner in which the Exchange prices ports. Today, these ports are assessed only one fee per port, per month and therefore adding the term ‘‘per account number’’ would be redundant and unnecessary. These ports are associated with one account number. This proposal will conform the defined term across NOM Rules.8 The 7 This rule change is not yet published [published on November 16, 2018]. 8 See Chapter I, Section 1(a)(69). VerDate Sep<11>2014 17:28 Nov 23, 2018 Jkt 247001 Exchange is not proposing to amend the manner in which these ports are assessed, rather the Exchange proposes to eliminate the ‘‘per mnemonic’’ description and more clearly define the manner in which these services are billed as ‘‘per port, per month.’’ The Exchange’s proposal to remove the term ‘‘mnemonic’’ for the pricing of the CTI Port Fee, FIX DROP Port Fee, OTTO DROP Fee, ITTO Port Fee and Bono Port Fee is equitable and not unfairly discriminatory because the Exchange will continue to uniformly assess all market participants these services in a uniform manner. The proposed change does not amend the manner in which these services are billed. 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. In terms of inter-market competition, the Exchange notes that this proposal does not amend actual fees, rather the Exchange proposes to define a new term to be used more accurately to describe the manner in which certain services within Chapter XV, Sections 3 and 9 are billed. New Defined Term ‘‘Account’’ The Exchange’s proposal to define the term ‘‘account number’’ within Chapter XV, Sections 3 and 9 and apply that term within Chapter XV, Section 3, in place of the term ‘‘mnemonic’’ with respect to the manner in which FIX and OTTO protocols are priced does not impose an undue burden on intramarket competition because the Exchange proposes to apply that term uniformly in billing Participants utilizing those ports and for purposes of the Account Fee. No changes are being made to the manner in which the Exchange bills these ports. The Exchange’s proposal to remove the term ‘‘mnemonic’’ for the pricing of the CTI Port Fee, FIX DROP Port Fee, OTTO DROP Fee, ITTO Port Fee and Bono Port Fee does not impose an undue burden on intra-market competition because the Exchange will continue to uniformly assess all market participants these services in a uniform manner. The proposed change does not amend the manner in which these services are billed. PO 00000 C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.9 At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– NASDAQ–2018–091 on the subject line. Paper Comments • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549–1090. All submissions should refer to File Number SR–NASDAQ–2018–091. 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 9 15 Frm 00138 Fmt 4703 Sfmt 4703 U.S.C. 78s(b)(3)(A)(ii). E:\FR\FM\26NON1.SGM 26NON1 Federal Register / Vol. 83, No. 227 / Monday, November 26, 2018 / Notices those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission’s Public Reference Room, 100 F Street NE, Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–NASDAQ–2018–091 and should be submitted on or before December 17, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.10 Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018–25735 Filed 11–23–18; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify Its Fee Schedule November 19, 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 November 6, 2018, Cboe EDGA Exchange, Inc. (‘‘Exchange’’ or ‘‘EDGA’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the 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 Cboe EDGA Exchange, Inc. (the ‘‘Exchange’’ or ‘‘EDGA’’) is filing with the Securities and Exchange CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 17:28 Nov 23, 2018 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 The Exchange proposes to amend its Fee Schedule to correct an inadvertent oversight to update an amended transaction fee in a footnote. Specifically, on March 14, 2018, the Exchange filed a rule filing, SR– CboeEDGA–2018–004, which proposed, among other things, to implement a fee for its expansion of the Cboe Connect service to provide routing to singledealer platforms through a connectivity option to be labeled C–LNK.3 Specifically, the Exchange proposed to charge a fee of $0.0002 for each share executed by a single dealer platform for orders routed via Cboe Connect. The Exchange notes that although it reflected the rate increase in the Cboe Connect portion of the Fee Schedule, it did not add such rate to the Fee Codes and Associated Fees table or adopt a fee code for C–LNK executions. To assist Users that refer to fee codes in connection with their reconciliation of fees imposed by the Exchange, the Exchange proposes to adopt a fee code, fee code LK, and to charge a fee of $0.0002 for each share executed by a single dealer platform for orders routed via Cboe Connect’s C–LNK connectivity option. No substantive changes are 3 See Securities Exchange Act Release No. 82904 (March 20, 2018), 83 FR 12995 (March 26, 2018) (SR–CboeEDGA–2018–004). 1 15 VerDate Sep<11>2014 II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose [Release No. 34–84623; File No. SR– CboeEDGA–2018–018] 10 17 Commission (‘‘Commission’’) a proposed rule change to modify its fee schedule. The text of the proposed rule change is also available on the Exchange’s website (https://www.cboe.com/About CBOE/CBOELegalRegulatoryHome. aspx), at the Exchange’s Office of the Secretary, and at the Commission’s Public Reference Room. Jkt 247001 PO 00000 Frm 00139 Fmt 4703 Sfmt 4703 60529 being made by the proposed rule change. 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 (the ‘‘Act’’) and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.4 Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 5 requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. The Exchange believes the proposed rule change to update the Fee Codes and Associated Fees section of the Fee Schedule, will alleviate potential confusion, thereby removing impediments to and perfecting the mechanism of a free and open market and a national market system and protecting investors and the public interest. As noted above, the proposed filing does not substantively change any transaction fees, but merely adds a fee code for a fee previously adopted by the Exchange. 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 that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change does not address competitive issues, but rather, as discussed above, is merely intended to add a fee code for a fee previously adopted by the Exchange, which will alleviate potential confusion. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange has not solicited, and does not intend to solicit, comments on this proposed rule change. The Exchange has not received any written comments from members or other interested parties. 4 15 5 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). E:\FR\FM\26NON1.SGM 26NON1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 83, Number 227 (Monday, November 26, 2018)]
[Notices]
[Pages 60527-60529]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-25735]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84633; File No. SR-NASDAQ-2018-091]


Self-Regulatory Organizations; The Nasdaq Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend The Nasdaq Options Market LLC (``NOM'') Fees

November 20, 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 November 9, 2018, The Nasdaq Stock Market LLC (``Nasdaq'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b 4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend The Nasdaq Options Market LLC 
(``NOM'') fees within Chapter XV, Section 3, titled ``Nasdaq Options 
Market--Ports and Other Services.''
    The text of the proposed rule change is available on the Exchange's 
website at https://nasdaq.cchwallstreet.com/, at the principal office of 
the Exchange, and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

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

1. Purpose
    The purpose of the proposed rule change is to define ``account 
number'' and utilize that term within Chapter XV, Sections 3 and 9. 
Each change will be described in more detail below.
New Defined Term ``Account''
    The Exchange proposes to adopt a new definition within Chapter XV, 
Section 3 and apply this definition within Chapter XV, Sections 3 and 
9. The purpose of this defined new term ``account number'' is to 
conform the Exchange's use of certain terms within NOM Rules. This term 
would be utilized in Chapter XV to describe the manner in which pricing 
is calculated. Recently, the Nasdaq affiliated exchanges filed rule 
changes to conform the usage of various terms across its 6 affiliated 
options markets within the various rulebooks.\3\ The Exchange believes 
that utilizing the same defined terms, where possible, across its 6 
affiliated options markets will avoid confusion for certain rules and 
pricing purposes. The term ``account number'' can be defined 
identically across Nasdaq's 6 affiliated options markets for purposes 
of pricing ports. The Exchange is not amending the manner in which 
pricing will be applied with respect to this particular change. The 
Exchange proposes to utilize the defined term ``account number'' in 
place of the term ``mnemonic,'' which was not defined in the pricing 
rules. The insertion of the new defined term is intended to add more 
specificity and clarity to the current pricing.
---------------------------------------------------------------------------

    \3\ NOM has filed to define the terms ``account number,'' 
``badge'' and ``mnemonic'' at Chapter I, Section 1(a)(69), (70) and 
(71) respectively. See SR-NASDAQ-2018-085 (not yet published) 
[published on November 16, 2018]. Nasdaq Phlx LLC has filed to 
define the terms ``account number,'' ``badge'' and ``mnemonic'' at 
Rule 1000(b)(51), (52) and (53) respectively. See SR-Phlx-2018-69 
(not yet published). Nasdaq BX, Inc. has filed to define the terms 
``account number,'' ``badge'' and ``mnemonic'' at Chapter I, Section 
1(a)(70), (71) and (72) respectively. See Securities Exchange Act 
Release No. 84520 (November 1, 2018) (SR-BX-2018-050) (not yet 
published) [published on November 7, 2018]. See also ISE Rule 
100(a)(1), (5) and (34) which defines the terms ``account number,'' 
``badge'' and ``mnemonic,'' respectively. See also GEMX Rule 
100(a)(1), (5) and (35) which defines the terms ``account number,'' 
``badge'' and ``mnemonic,'' respectively. See also MRX Rule 
100(a)(1), (5) and (36) which defines the terms ``account number,'' 
``badge'' and ``mnemonic,'' respectively.
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    At this time, the Exchange proposes to define an ``account number'' 
within Chapter XV, Section 3 to mean a number assigned to a 
Participant. Participants may have more than one account number. The 
term ``mnemonic'' has been used frequently throughout Chapter XV 
without being defined. The Exchange proposes to remove the term 
``mnemonic'' from Chapter XV, Section 3 and replace the term with the 
defined term ``account number'' for FIX and the OTTO protocols. The 
Exchange notes that the terms mnemonic and account number were being 
used interchangeably. The Exchange recently defined both terms in its 
rules.\4\ The term account number is appropriate to describe these 
fees. The Exchange is not amending the manner in which it assesses 
those port fees, rather the Exchange simply proposes to utilize the new 
term to better describe its current pricing.
---------------------------------------------------------------------------

    \4\ A ``mnemonic'' is defined as an acronym comprised of letters 
and/or numbers assigned to Participants. A Participant account may 
be associated with multiple mnemonics. See SR-NASDAQ-2018-085 (not 
yet published) [published on November 16, 2018]. Mnemonics are 
issued to Participants to identify associated persons of 
Participants.
---------------------------------------------------------------------------

    Also, the Exchange proposes to remove the term ``mnemonic'' from 
the CTI Port Fee, FIX DROP Port Fee, OTTO DROP Fee, ITTO Port Fee and 
Bono Port Fee. Today, these ports are assessed only one fee per port, 
per month and therefore adding the term ``per account number'' would be 
redundant and unnecessary. These ports are associated with one account 
number. The Exchange is not proposing to amend the manner in which 
these ports are assessed, rather the Exchange proposes to eliminate the 
``per mnemonic'' description. The Exchange believes that the billing is 
clearly defined as ``per port, per month.''
    Account number is also being defined in Section 9, ``Account Fee--
Options.'' The Exchange is not amending the manner in which this fee is 
billed, rather the Exchange is defining the term account number within 
Section 9. The defined term account number will be utilized 
consistently throughout the NOM pricing, where applicable.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\5\ in general, and furthers the objectives of Sections 
6(b)(4) and 6(b)(5) of the Act,\6\ in particular, in that it provides 
for the equitable allocation of reasonable dues, fees and other charges

[[Page 60528]]

among members and issuers and other persons using any facility, and is 
not designed to permit unfair discrimination between customers, 
issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

New Defined Term ``Account''
    The Exchange's proposal to define the term ``account number'' 
within Chapter XV, Sections 3 and 9 and apply that term within Chapter 
XV, Section 3, in place of the term ``mnemonic'' as to the manner in 
which FIX and OTTO Port Fees are priced is reasonable because the term 
is defined and will be utilized consistently throughout Chapter XV, 
where applicable. The usage of the defined term ``account number'' will 
bring uniformity to the term and its usage across the 6 affiliated 
options markets. The proposed change to utilize the defined term will 
not amend the manner in which the ports are billed, rather it will also 
bring greater clarity to pricing in Chapter XV, Sections 3 and 9.
    The Exchange's proposal to define the term ``account number'' 
within Chapter XV, Sections 3 and 9 and apply that term within Chapter 
XV, Section 3, in place of the term ``mnemonic'' for the FIX and OTTO 
Port Fees is equitable and not unfairly discriminatory because the 
Exchange proposes to apply that term uniformly in billing Participants 
utilizing those ports and for purposes of the Account Fee.
    The Exchange's proposal to remove the term ``mnemonic'' for the 
pricing of the CTI Port Fee, FIX DROP Port Fee, OTTO DROP Fee, ITTO 
Port Fee and Bono Port Fee is reasonable because, today, these ports 
are assessed only one fee per port, per month and this change will 
bring greater clarity to the manner in which these services are billed. 
The term ``mnemonic'' was undefined until the Exchange filed SR-NASDAQ-
2018-085.\7\ The manner in which the term ``mnemonic'' was defined for 
purposes of NOM's Rules is not the manner that was intended for pricing 
these ports. To that end, the Exchange proposes to remove the term 
``mnemonic'' and replace that term with ``account number,'' where 
applicable, to convey the intended manner in which the Exchange prices 
ports. Today, these ports are assessed only one fee per port, per month 
and therefore adding the term ``per account number'' would be redundant 
and unnecessary. These ports are associated with one account number. 
This proposal will conform the defined term across NOM Rules.\8\ The 
Exchange is not proposing to amend the manner in which these ports are 
assessed, rather the Exchange proposes to eliminate the ``per 
mnemonic'' description and more clearly define the manner in which 
these services are billed as ``per port, per month.''
---------------------------------------------------------------------------

    \7\ This rule change is not yet published [published on November 
16, 2018].
    \8\ See Chapter I, Section 1(a)(69).
---------------------------------------------------------------------------

    The Exchange's proposal to remove the term ``mnemonic'' for the 
pricing of the CTI Port Fee, FIX DROP Port Fee, OTTO DROP Fee, ITTO 
Port Fee and Bono Port Fee is equitable and not unfairly discriminatory 
because the Exchange will continue to uniformly assess all market 
participants these services in a uniform manner. The proposed change 
does not amend the manner in which these services are billed.

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. In terms of inter-market 
competition, the Exchange notes that this proposal does not amend 
actual fees, rather the Exchange proposes to define a new term to be 
used more accurately to describe the manner in which certain services 
within Chapter XV, Sections 3 and 9 are billed.
New Defined Term ``Account''
    The Exchange's proposal to define the term ``account number'' 
within Chapter XV, Sections 3 and 9 and apply that term within Chapter 
XV, Section 3, in place of the term ``mnemonic'' with respect to the 
manner in which FIX and OTTO protocols are priced does not impose an 
undue burden on intra-market competition because the Exchange proposes 
to apply that term uniformly in billing Participants utilizing those 
ports and for purposes of the Account Fee. No changes are being made to 
the manner in which the Exchange bills these ports.
    The Exchange's proposal to remove the term ``mnemonic'' for the 
pricing of the CTI Port Fee, FIX DROP Port Fee, OTTO DROP Fee, ITTO 
Port Fee and Bono Port Fee does not impose an undue burden on intra-
market competition because the Exchange will continue to uniformly 
assess all market participants these services in a uniform manner. The 
proposed change does not amend the manner in which these services are 
billed.

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

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act.\9\
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    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) otherwise in furtherance of the 
purposes of the Act. If the Commission takes such action, the 
Commission shall institute proceedings to determine whether the 
proposed rule should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NASDAQ-2018-091 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to File Number SR-NASDAQ-2018-091. 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

[[Page 60529]]

those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for website viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE, 
Washington, DC 20549, on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change. Persons submitting 
comments are cautioned that we do not redact or edit personal 
identifying information from comment submissions. You should submit 
only information that you wish to make available publicly. All 
submissions should refer to File Number SR-NASDAQ-2018-091 and should 
be submitted on or before December 17, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-25735 Filed 11-23-18; 8:45 am]
 BILLING CODE 8011-01-P

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