Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Delay a New Protocol “Ouch to Trade Options” or “OTTO” on The Nasdaq Options Market LLC (“NOM”), 63692-63694 [2018-26736]

Download as PDF 63692 Federal Register / Vol. 83, No. 237 / Tuesday, December 11, 2018 / Notices obligations under Section 19(g)(1) of the Act, the Exchange will surveil for compliance with the continued listing requirements. If the Fund or the Shares are not in compliance with the applicable listing requirements, the Exchange will commence delisting procedures under Exchange Rule 14.12. This approval order is based on all of the Exchange’s representations and description of the Shares and the Fund, including those set forth above and in Amendment Nos. 1 and 2 to the proposed rule change. Except as described herein, the Commission notes that the Shares must comply with all applicable requirements of BZX Rule 14.11(i) to be listed and traded on the Exchange on an initial and continuing basis. For the foregoing reasons, the Commission finds that the proposed rule change, as modified by Amendment Nos. 1 and 2, is consistent with Section 6(b)(5) of the Act 31 and the rules and regulations thereunder applicable to a national securities exchange. IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,32 that the proposed rule change (SR–CboeBZX– 2017–076), as modified by Amendment Nos. 1 and 2, be, and it hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.33 Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018–26735 Filed 12–10–18; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Delay a New Protocol ‘‘Ouch to Trade Options’’ or ‘‘OTTO’’ on The Nasdaq Options Market LLC (‘‘NOM’’) amozie on DSK3GDR082PROD with NOTICES1 December 4, 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 26, 2018, The Nasdaq Stock Market LLC U.S.C. 78f(b)(5). U.S.C. 78s(b)(2). 33 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 32 15 VerDate Sep<11>2014 17:51 Dec 10, 2018 Jkt 247001 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to a proposal to delay a new protocol ‘‘Ouch to Trade Options’’ or ‘‘OTTO’’ on The Nasdaq Options Market LLC (‘‘NOM’’). 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 Nasdaq recently filed a rule change 3 which adopted a new protocol ‘‘Ouch to Trade Options’’ or ‘‘OTTO’’ 4 and [Release No. 34–84723; File No. SR– NASDAQ–2018–097] 31 15 (‘‘Nasdaq’’ 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. 3 See Securities Exchange Act Release No. 83888 (August 20, 2018), 83 FR 42954 (August 24, 2018) (SR–NASDAQ–2018–069) (‘‘Prior Rule Change’’). This rule change is immediately effective but will not be operative until such time as the Exchange issues an Options Trader Alert announcing the implementation date. This notification will be issued in Q4 2018. The Exchange notes that this filing renamed and modified the current OTTO protocol as ‘‘QUO’’ and also proposed the adoption of a new OTTO protocol. 4 New OTTO is an interface that allows Participants and their Sponsored Customers to connect, send, and receive messages related to orders to and from the Exchange. Features include the following: (1) Options symbol directory messages (e.g., underlying); (2) system event messages (e.g., start of trading hours messages and start of opening); (3) trading action messages (e.g., halts and resumes); (4) execution messages; (5) order messages; and (6) risk protection triggers and cancel notifications. See NOM Rules at Chapter VI, Section 21(a)(i)(C). PO 00000 Frm 00081 Fmt 4703 Sfmt 4703 renamed and modified the current OTTO protocol as ‘‘Quote Using Orders’’ or ‘‘QUO’’.5 The Prior Rule Change, which is effective but not yet operative, renamed and modified the current OTTO protocol to ‘‘QUO.’’ The Exchange subsequently filed a rule change to amend Chapter VI, Section 6(e), titled ‘‘Detection of Loss of Communication’’ which describes the impact to NOM protocols in the event of a loss of a communication. The Exchange accounted for both the new OTTO and renamed and modified QUO within this rule. Similarly, the Exchange amended Chapter VI, Section 8, ‘‘Nasdaq Opening and Halt Cross’’ to account for the new OTTO and renamed and modified QUO within this rule. Finally, the Exchange amended Chapter VI, Section 19, ‘‘Data Feeds and Trade Information’’ to amend ‘‘OTTO DROP’’ to ‘‘QUO DROP’’ and noted within Chapter VI, Section 18(a)(1) related to Order Price Protection rule or ‘‘OPP’’ that OPP shall not apply to orders entered through QUO.6 Both the Prior Rule Change and the Subsequent Rule Change indicated the aforementioned rule changes would be implemented for QUO and OTTO in Q4 of 2018 with the date announced via an Options Traders Alert. At this time, the Exchange proposes to immediately implement QUO and delay the introduction of new OTTO functionality until Q1 2019 by announcing the date of implementation via an Options Traders Alert. The Exchange proposes to provide for the delay of the OTTO functionality by inserting the following rule text at the beginning of NOM Rules at Chapter VI, Sections 6, 9 and 21 to make clear that OTTO functionality is not yet implemented: ‘‘OTTO functionality implementation shall be delayed until Q1 2019. The Exchange will issue an Options Trader Alert notifying Participants when this functionality will be available.’’ The Exchange proposes this delay to allow the Exchange additional time to implement this functionality and for 5 QUO is an interface that allows NOM Market Makers to connect, send, and receive messages related to single-sided orders to and from the Exchange. Order Features include the following: (1) Options symbol directory messages (e.g., underlying); (2) system event messages (e.g., start of trading hours messages and start of opening); (3) trading action messages (e.g., halts and resumes); (4) execution messages; (5) order messages; and (6) risk protection triggers and cancel notifications. Orders submitted by NOM Market Makers over this interface are treated as quotes. See NOM Rules at Chapter VI, Section 21(a)(i)(D). 6 See Securities Exchange Act Release No. 84559 (November 9, 2019), 83 FR 57774 (November 16, 2018) (SR–NASDAQ–2018–085) (‘‘Subsequent Rule Change’’). E:\FR\FM\11DEN1.SGM 11DEN1 Federal Register / Vol. 83, No. 237 / Tuesday, December 11, 2018 / Notices Participants to sign-up for this new port and test with the Exchange. sign-up for this new port and test with the Exchange. Amend OTTO at Options 7 The Exchange’s current pricing at Options 7,7 Section 3(i)(4) reflects an OTTO Port Fee. The Exchange proposed to rename the OTTO Port Fee as ‘‘QUO Port Fee’’ to reflect the new name of the modified former OTTO protocol. No changes are being made to the port fee. Likewise, the current ‘‘OTTO DROP Port Fee’’ at Options 7, Section 3(ii)(4) is proposed to be renamed the ‘‘QUO DROP Port Fee.’’ 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. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,8 in general, and furthers the objectives of Section 6(b)(5) of the Act,9 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 delaying the OTTO functionality to allow the Exchange additional time to implement this functionality and for Participants to sign-up for this new port and test with the Exchange. QUO would be implemented to avoid any confusion with the new proposed protocol. amozie on DSK3GDR082PROD with NOTICES1 QUO The Exchange’s proposal to rename the current ‘‘OTTO Port Fee’’ as ‘‘QUO Port Fee’’ and ‘‘OTTO DROP Port Fee’’ as ‘‘QUO DROP Port Fee’’ is consistent with the Act because the amendment will reflect the name change and modification as proposed in the Prior Rule Change. 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 Exchange’s proposal to implement QUO and delay the adoption of new OTTO functionality does not impose an undue burden on competition. Immediately implementing the QUO protocol, which is the subject of an already effective rule change, will avoid any confusion with the implementation of the new OTTO protocol. Delaying the new OTTO functionality to allow the Exchange additional time to implement this functionality and for Participants to 7 Options 7 refers to the Exchange’s new rulebook shell. 8 15 U.S.C. 78f(b). 9 15 U.S.C. 78f(b)(5). VerDate Sep<11>2014 17:51 Dec 10, 2018 Jkt 247001 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)(iii) of the Act 10 and subparagraph (f)(6) of Rule 19b–4 thereunder.11 A proposed rule change filed under Rule 19b–4(f)(6) 12 normally does not become operative prior to 30 days after the date of the filing. However, Rule 19b–4(f)(6)(iii) 13 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 asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Exchange states that the waiver will allow the Exchange to immediately implement QUO and delay the implementation of the OTTO functionality to allow the Exchange additional time to implement this functionality and for Participants to sign-up for this new port and test with the Exchange. The Exchange further states that delaying the implementation of OTTO is consistent with the protection of investors and the public interest because it permits additional time for the Exchange to ensure a successful implementation of new OTTO. Additionally, the Exchange notes that implementing QUO will bring greater transparency to NOM rules. The Commission believes that waiver of the 30-day operative delay is consistent with the protection of investors and the 10 15 U.S.C. 78s(b)(3)(A)(iii). 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 the text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. 12 17 CFR 240.19b–4(f)(6). 13 17 CFR 240.19b–4(f)(6)(iii). 11 17 PO 00000 Frm 00082 Fmt 4703 Sfmt 4703 63693 public interest. Accordingly, the Commission hereby waives the operative delay and designates the proposed rule change as operative upon filing.14 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–2018–097 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–2018–097. 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 14 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). E:\FR\FM\11DEN1.SGM 11DEN1 63694 Federal Register / Vol. 83, No. 237 / Tuesday, December 11, 2018 / Notices 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–2018–097 and should be submitted on or before January 2, 2019. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.15 Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018–26736 Filed 12–10–18; 8:45 am] BILLING CODE 8011–01–P organizations in the State of North Carolina, dated 10/12/2018, is hereby amended to include the following areas as adversely affected by the disaster. Primary Counties: Guilford, McDowell. All other information in the original declaration remains unchanged. [Disaster Declaration #15746 and #15747; North Carolina Disaster Number NC–00100] Presidential Declaration Amendment of a Major Disaster for Public Assistance Only for the State of North Carolina U.S. Small Business Administration. ACTION: Amendment 3. AGENCY: This is an amendment of the Presidential declaration of a major disaster for Public Assistance Only for the State of North Carolina (FEMA– 4393–DR), dated 10/12/2018. Incident: Hurricane Florence. Incident Period: 09/07/2018 through 09/29/2018. DATES: Issued on 11/15/2018. Physical Loan Application Deadline Date: 12/11/2018. Economic Injury (EIDL) Loan Application Deadline Date: 07/12/2019. ADDRESSES: Submit completed loan applications to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. FOR FURTHER INFORMATION CONTACT: A. Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street SW, Suite 6050, Washington, DC 20416, (202) 205–6734. SUPPLEMENTARY INFORMATION: The notice of the President’s major disaster declaration for Private Non-Profit amozie on DSK3GDR082PROD with NOTICES1 SUMMARY: 15 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 17:51 Dec 10, 2018 Jkt 247001 James Rivera, Associate Administrator for Disaster Assistance. [FR Doc. 2018–26710 Filed 12–10–18; 8:45 am] BILLING CODE 8025–01–P (Catalog of Federal Domestic Assistance Number 59008) SMALL BUSINESS ADMINISTRATION James Rivera, Associate Administrator for Disaster Assistance. [Disaster Declaration #15780 and #15781; Florida Disaster Number FL–00141] [FR Doc. 2018–26711 Filed 12–10–18; 8:45 am] BILLING CODE 8025–01–P SMALL BUSINESS ADMINISTRATION [Disaster Declaration #15748 and #15749; Virginia Disaster Number VA–00075] Presidential Declaration Amendment of a Major Disaster for Public Assistance Only for the Commonwealth of Virginia U.S. Small Business Administration. AGENCY: SMALL BUSINESS ADMINISTRATION (Catalog of Federal Domestic Assistance Number 59008) ACTION: Amendment 2. This is an amendment of the Presidential declaration of a major disaster for Public Assistance Only for the Commonwealth of Virginia (FEMA– 4401–DR), dated 10/15/2018. Incident: Hurricane Florence. Incident Period: 09/08/2018 through 09/21/2018. SUMMARY: Issued on 11/14/2018. Physical Loan Application Deadline Date: 12/14/2018. Economic Injury (EIDL) Loan Application Deadline Date: 07/15/2019. DATES: Submit completed loan applications to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. ADDRESSES: A. Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street SW, Suite 6050, Washington, DC 20416, (202) 205–6734. FOR FURTHER INFORMATION CONTACT: The notice of the President’s major disaster declaration for Private Non-Profit organizations in the Commonwealth of Virginia, dated 10/15/2018, is hereby amended to include the following areas as adversely affected by the disaster. SUPPLEMENTARY INFORMATION: Presidential Declaration Amendment of a Major Disaster for Public Assistance Only for the State of Florida U.S. Small Business Administration. ACTION: Amendment 1. AGENCY: This is an amendment of the Presidential declaration of a major disaster for Public Assistance Only for the State of Florida (FEMA–4399–DR), dated 10/23/2018. Incident: Hurricane Michael. Incident Period: 10/07/2018 through 10/19/2018. DATES: Issued on 11/15/2018. Physical Loan Application Deadline Date: 12/24/2018. Economic Injury (EIDL) Loan Application Deadline Date: 07/23/2019. ADDRESSES: Submit completed loan applications to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. FOR FURTHER INFORMATION CONTACT: A. Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street SW, Suite 6050, Washington, DC 20416, (202) 205–6734. SUPPLEMENTARY INFORMATION: The notice of the President’s major disaster declaration for Private Non-Profit organizations in the State of Florida, dated 10/23/2018, is hereby amended to include the following areas as adversely affected by the disaster. Primary Counties: Franklin, Holmes, Jefferson, Leon, Madison, Okaloosa, Taylor, Wakulla, Walton, Washington. SUMMARY: All other information in the original declaration remains unchanged. (Catalog of Federal Domestic Assistance Number 59008) Primary Counties: Craig, Floyd, Grayson, Isle of Wight, and the independent city of Hampton. James Rivera, Associate Administrator for Disaster Assistance. All other information in the original declaration remains unchanged. [FR Doc. 2018–26715 Filed 12–10–18; 8:45 am] PO 00000 Frm 00083 Fmt 4703 Sfmt 9990 BILLING CODE 8025–01–P E:\FR\FM\11DEN1.SGM 11DEN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 83, Number 237 (Tuesday, December 11, 2018)]
[Notices]
[Pages 63692-63694]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-26736]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84723; File No. SR-NASDAQ-2018-097]


Self-Regulatory Organizations; The Nasdaq Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Delay a New Protocol ``Ouch to Trade Options'' or ``OTTO'' on The 
Nasdaq Options Market LLC (``NOM'')

December 4, 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 26, 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 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to a proposal to delay a new protocol ``Ouch 
to Trade Options'' or ``OTTO'' on The Nasdaq Options Market LLC 
(``NOM'').
    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
    Nasdaq recently filed a rule change \3\ which adopted a new 
protocol ``Ouch to Trade Options'' or ``OTTO'' \4\ and renamed and 
modified the current OTTO protocol as ``Quote Using Orders'' or 
``QUO''.\5\ The Prior Rule Change, which is effective but not yet 
operative, renamed and modified the current OTTO protocol to ``QUO.'' 
The Exchange subsequently filed a rule change to amend Chapter VI, 
Section 6(e), titled ``Detection of Loss of Communication'' which 
describes the impact to NOM protocols in the event of a loss of a 
communication. The Exchange accounted for both the new OTTO and renamed 
and modified QUO within this rule. Similarly, the Exchange amended 
Chapter VI, Section 8, ``Nasdaq Opening and Halt Cross'' to account for 
the new OTTO and renamed and modified QUO within this rule. Finally, 
the Exchange amended Chapter VI, Section 19, ``Data Feeds and Trade 
Information'' to amend ``OTTO DROP'' to ``QUO DROP'' and noted within 
Chapter VI, Section 18(a)(1) related to Order Price Protection rule or 
``OPP'' that OPP shall not apply to orders entered through QUO.\6\
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    \3\ See Securities Exchange Act Release No. 83888 (August 20, 
2018), 83 FR 42954 (August 24, 2018) (SR-NASDAQ-2018-069) (``Prior 
Rule Change''). This rule change is immediately effective but will 
not be operative until such time as the Exchange issues an Options 
Trader Alert announcing the implementation date. This notification 
will be issued in Q4 2018. The Exchange notes that this filing 
renamed and modified the current OTTO protocol as ``QUO'' and also 
proposed the adoption of a new OTTO protocol.
    \4\ New OTTO is an interface that allows Participants and their 
Sponsored Customers to connect, send, and receive messages related 
to orders to and from the Exchange. Features include the following: 
(1) Options symbol directory messages (e.g., underlying); (2) system 
event messages (e.g., start of trading hours messages and start of 
opening); (3) trading action messages (e.g., halts and resumes); (4) 
execution messages; (5) order messages; and (6) risk protection 
triggers and cancel notifications. See NOM Rules at Chapter VI, 
Section 21(a)(i)(C).
    \5\ QUO is an interface that allows NOM Market Makers to 
connect, send, and receive messages related to single-sided orders 
to and from the Exchange. Order Features include the following: (1) 
Options symbol directory messages (e.g., underlying); (2) system 
event messages (e.g., start of trading hours messages and start of 
opening); (3) trading action messages (e.g., halts and resumes); (4) 
execution messages; (5) order messages; and (6) risk protection 
triggers and cancel notifications. Orders submitted by NOM Market 
Makers over this interface are treated as quotes. See NOM Rules at 
Chapter VI, Section 21(a)(i)(D).
    \6\ See Securities Exchange Act Release No. 84559 (November 9, 
2019), 83 FR 57774 (November 16, 2018) (SR-NASDAQ-2018-085) 
(``Subsequent Rule Change'').
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    Both the Prior Rule Change and the Subsequent Rule Change indicated 
the aforementioned rule changes would be implemented for QUO and OTTO 
in Q4 of 2018 with the date announced via an Options Traders Alert. At 
this time, the Exchange proposes to immediately implement QUO and delay 
the introduction of new OTTO functionality until Q1 2019 by announcing 
the date of implementation via an Options Traders Alert. The Exchange 
proposes to provide for the delay of the OTTO functionality by 
inserting the following rule text at the beginning of NOM Rules at 
Chapter VI, Sections 6, 9 and 21 to make clear that OTTO functionality 
is not yet implemented: ``OTTO functionality implementation shall be 
delayed until Q1 2019. The Exchange will issue an Options Trader Alert 
notifying Participants when this functionality will be available.''
    The Exchange proposes this delay to allow the Exchange additional 
time to implement this functionality and for

[[Page 63693]]

Participants to sign-up for this new port and test with the Exchange.
Amend OTTO at Options 7
    The Exchange's current pricing at Options 7,\7\ Section 3(i)(4) 
reflects an OTTO Port Fee. The Exchange proposed to rename the OTTO 
Port Fee as ``QUO Port Fee'' to reflect the new name of the modified 
former OTTO protocol. No changes are being made to the port fee. 
Likewise, the current ``OTTO DROP Port Fee'' at Options 7, Section 
3(ii)(4) is proposed to be renamed the ``QUO DROP Port Fee.''
---------------------------------------------------------------------------

    \7\ Options 7 refers to the Exchange's new rulebook shell.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\8\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\9\ 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 
delaying the OTTO functionality to allow the Exchange additional time 
to implement this functionality and for Participants to sign-up for 
this new port and test with the Exchange. QUO would be implemented to 
avoid any confusion with the new proposed protocol.
---------------------------------------------------------------------------

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

QUO
    The Exchange's proposal to rename the current ``OTTO Port Fee'' as 
``QUO Port Fee'' and ``OTTO DROP Port Fee'' as ``QUO DROP Port Fee'' is 
consistent with the Act because the amendment will reflect the name 
change and modification as proposed in the Prior Rule Change.

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 Exchange's proposal to 
implement QUO and delay the adoption of new OTTO functionality does not 
impose an undue burden on competition. Immediately implementing the QUO 
protocol, which is the subject of an already effective rule change, 
will avoid any confusion with the implementation of the new OTTO 
protocol. Delaying the new OTTO functionality to allow the Exchange 
additional time to implement this functionality and for Participants to 
sign-up for this new port and test with the Exchange.

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

    No written comments were 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)(iii) of the Act \10\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\11\
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    \10\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \11\ 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 the text of the proposed rule change, 
at least five business days prior to the date of filing of the 
proposed rule change, or such shorter time as designated by the 
Commission. The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \12\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, Rule 19b-4(f)(6)(iii) \13\ 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 asked 
the Commission to waive the 30-day operative delay so that the proposal 
may become operative immediately upon filing. The Exchange states that 
the waiver will allow the Exchange to immediately implement QUO and 
delay the implementation of the OTTO functionality to allow the 
Exchange additional time to implement this functionality and for 
Participants to sign-up for this new port and test with the Exchange. 
The Exchange further states that delaying the implementation of OTTO is 
consistent with the protection of investors and the public interest 
because it permits additional time for the Exchange to ensure a 
successful implementation of new OTTO. Additionally, the Exchange notes 
that implementing QUO will bring greater transparency to NOM rules. 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 as operative upon filing.\14\
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    \12\ 17 CFR 240.19b-4(f)(6).
    \13\ 17 CFR 240.19b-4(f)(6)(iii).
    \14\ 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: (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-2018-097 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-2018-097. 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

[[Page 63694]]

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-2018-097 and should be submitted on or before January 2, 2019.
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    \15\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-26736 Filed 12-10-18; 8:45 am]
 BILLING CODE 8011-01-P

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