Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Port Fees, 63916-63918 [2018-26911]
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Federal Register / Vol. 83, No. 238 / Wednesday, December 12, 2018 / Notices
SECURITIES AND EXCHANGE
COMMISSION
Section 3. Each change will be
described in more detail below.
[Release No. 34–84749; File No. SR–BX–
2018–060]
New Defined Term ‘‘Account’’ [sic]
The Exchange proposes to adopt a
new definition within Options 7,
Section 3 and apply this definition
within the rule. The purpose of this
defined new term ‘‘account number’’ is
to conform the Exchange’s use of certain
terms within BX Rules. This term would
be utilized in Options 7, Section 3 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.
At this time, the Exchange proposes to
define an ‘‘account number’’ within
Options 7, 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
Options 7 without being defined. The
Exchange proposes to remove the term
‘‘mnemonic’’ from Options 7, Section 3
Self-Regulatory Organizations; Nasdaq
BX, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Port Fees
December 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 November
27, 2018, Nasdaq BX, Inc. (‘‘BX’’ 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 a proposal
to amend port fees within Options 7,
Section 3, titled ‘‘BX Options Market—
Ports and Other Services.’’
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
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.
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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 Options 7,
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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3 BX 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), 83 FR 55765 (November 7, 2018) (SR–BX–
2018–050). The Nasdaq Stock Market LLC filed to
amend The Nasdaq Options Market LLC rules to
define the terms ‘‘account number,’’ ‘‘badge’’ and
‘‘mnemonic’’ at Chapter I, Section 1(a)(69), (70) and
(71) respectively. See Securities Exchange Act
Release No. 84571 (November 9, 2018), 83 FR 57758
(November 16, 2018) (SR–NASDAQ–2018–086).
Nasdaq Phlx LLC has filed to define the terms
‘‘account number,’’ ‘‘badge’’ and ‘‘mnemonic’’ at
Rule 1000(b)(51), (52) and (53) respectively. See
Securities Exchange Act Release No. 84620
(November 19, 2018), 83 FR 60512 (November 6,
2018) (SR–Phlx–2018–71). 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
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and replace the term with the defined
term ‘‘account number’’ for the FIX
protocol. 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 the FIX port, 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, BX
Depth Port Fee and BX Top 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.’’
The Exchange also proposes to amend
current ‘‘(c) Access and Redistribution
Fee’’ as ‘‘v’’ to conform to the remainder
of the rule.
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
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’’ [sic]
The Exchange’s proposal to define the
term ‘‘account number’’ within Options,
Section 3 and apply that term within the
rule in place of the term ‘‘mnemonic’’ as
to the manner in which FIX Port Fees
are priced is reasonable because the
term is defined and will be utilized
consistently throughout Options 7,
where applicable. The usage of the
defined term ‘‘account number’’ will
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 Securities
Exchange Act Release No. 84520 (November 1,
2018), 83 FR 55765 (November 7, 2018) (SR–BX–
2018–050). 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).
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Federal Register / Vol. 83, No. 238 / Wednesday, December 12, 2018 / Notices
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 Options 7, Section 3.
The Exchange’s proposal to define the
term ‘‘account number’’ within Options
7, Section 3 and apply that term within
Options 7, Section 3, in place of the
term ‘‘mnemonic’’ for the FIX Port Fee
is equitable and not unfairly
discriminatory because the Exchange
proposes to apply that term uniformly
in billing Participants utilizing those
ports.
The Exchange’s proposal to remove
the term ‘‘mnemonic’’ for the pricing of
the CTI Port Fee, FIX DROP Port Fee,
BX Depth Port Fee and BX Top 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 to define that term
within the BX Rules.7 The manner in
which the term ‘‘mnemonic’’ was
defined for purposes of BX’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. This proposal
will conform the defined term across BX
Rules.8 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 BX
Rules. 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.’’
The Exchange’s proposal to remove
the term ‘‘mnemonic’’ for the pricing of
the CTI Port Fee, FIX DROP Port Fee,
BX Depth Port Fee and BX Top 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
7 See Securities Exchange Act Release No. 84520
(November 1, 2018), 83 FR 55765 (November 7,
2018) (SR–BX–2018–050).
8 See Chapter I, Section 1(a)(70).
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18:39 Dec 11, 2018
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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 amend the name of a port
fee and define a new term to be used
more accurately to describe the manner
in which certain services within
Options 7, Section 3 are billed.
New Defined Term ‘‘Account’’ [sic]
The Exchange’s proposal to define the
term ‘‘account number’’ within Options
7, Section 3 and apply that term within
that rule in place of the term
‘‘mnemonic’’ with respect to the manner
in which FIX 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. 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,
BX Depth Port Fee and BX Top 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
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
9 15
PO 00000
U.S.C. 78s(b)(3)(A)(ii).
Frm 00093
Fmt 4703
Sfmt 4703
63917
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–
BX–2018–060 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–2018–060. 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–2018–060 and should
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Federal Register / Vol. 83, No. 238 / Wednesday, December 12, 2018 / Notices
be submitted on or before January 2,
2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–26911 Filed 12–11–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
33317; File No. 812–14942]
Symmetry Panoramic Trust and
Symmetry Partners, LLC
December 6, 2018.
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice.
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AGENCY:
Notice of an application for an order
under section 12(d)(1)(J) of the
Investment Company Act of 1940 (the
‘‘Act’’) for an exemption from sections
12(d)(1)(A), (B), and (C) of the Act and
under sections 6(c) and 17(b) of the Act
for an exemption from sections 17(a)(1)
and (2) of the Act. The requested order
would permit certain registered openend investment companies to acquire
shares of certain registered open-end
investment companies, registered
closed-end investment companies,
business development companies, as
defined in section 2(a)(48) of the Act,
and registered unit investment trusts
(collectively, ‘‘Underlying Funds’’) that
are within and outside the same group
of investment companies as the
acquiring investment companies, in
excess of the limits in section 12(d)(1)
of the Act.
Applicants: Symmetry Panoramic
Trust (the ‘‘Trust’’), a Delaware statutory
trust that is registered under the Act as
an open-end management investment
company with multiple series, and
Symmetry Partners, LLC (the ‘‘Applying
Manager’’), a Connecticut limited
liability company registered as an
investment adviser under the
Investment Advisers Act of 1940.
Filing Dates: The application was
filed on August 30, 2018.
Hearing or Notification of Hearing: An
order granting the requested relief will
be issued unless the Commission orders
a hearing. Interested persons may
request a hearing by writing to the
Commission’s Secretary and serving
applicants with a copy of the request,
personally or by mail. Hearing requests
should be received by the Commission
10 17
CFR 200.30–3(a)(12).
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18:39 Dec 11, 2018
Jkt 247001
by 5:30 p.m. on December 31, 2018, and
should be accompanied by proof of
service on the applicants, in the form of
an affidavit, or, for lawyers, a certificate
of service. Pursuant to Rule 0–5 under
the Act, hearing requests should state
the nature of the writer’s interest, any
facts bearing upon the desirability of a
hearing on the matter, the reason for the
request, and the issues contested.
Persons who wish to be notified of a
hearing may request notification by
writing to the Commission’s Secretary.
ADDRESSES: Secretary, U.S. Securities
and Exchange Commission, 100 F Street
NE, Washington, DC 20549–1090.
Applicants: John A. Mooney, Esq.,
Symmetry Partners, LLC, 151 National
Drive, Glastonbury, CT 06033; Mark C.
Amorosi, Esq., K&L Gates LLP, 1601 K
Street NW, Washington, DC 20006.
FOR FURTHER INFORMATION CONTACT:
Bruce R. MacNeil, Senior Counsel, at
(202) 551–6817, or Kaitlin C. Bottock,
Branch Chief, at (202) 551–6825
(Division of Investment Management,
Chief Counsel’s Office).
SUPPLEMENTARY INFORMATION: The
following is a summary of the
application. The complete application
may be obtained via the Commission’s
website by searching for the file
number, or for an applicant using the
Company name box, at https://www.sec.
gov/search/search.htm, or by calling
(202) 551–8090.
Summary of the Application
1. Applicants request an order to
permit (a) a Fund 1 (each a ‘‘Fund of
Funds’’) to acquire shares of Underlying
Funds 2 in excess of the limits in
sections 12(d)(1)(A) and (C) of the Act
and (b) the Underlying Funds that are
registered open-end investment
1 Applicants request that the order apply to each
existing and future series of the Trust and to each
existing and future registered open-end
management investment company or series thereof
that is advised by the Applying Manager or its
successor-in-interest or by any other investment
adviser controlling, controlled by or under common
control with the Applying Manager or its successorin-interest and is part of the same ‘‘group of
investment companies,’’ as defined in section
12(d)(1)(G)(ii) of the Act, as the Trust (each, a
‘‘Fund’’). For purposes of the requested order,
‘‘successor-in-interest’’ is limited to an entity that
results from a reorganization into another
jurisdiction or a change in the type of business
organization. For purposes of the request for relief,
the term ‘‘group of investment companies’’ means
any two or more registered investment companies,
including closed-end investment companies and
business development companies, that hold
themselves out to investors as related companies for
purposes of investment and investor services.
2 Certain of the Underlying Funds have obtained
exemptions from the Commission necessary to
permit their shares to be listed and traded on a
national securities exchange at negotiated prices
and, accordingly, to operate as an exchange-traded
fund (‘‘ETF’’).
PO 00000
Frm 00094
Fmt 4703
Sfmt 4703
companies or series thereof, their
principal underwriters and any broker
or dealer registered under the Securities
Exchange Act of 1934 to sell shares of
the Underlying Fund to the Fund of
Funds in excess of the limits in section
12(d)(1)(B) of the Act.3 Applicants also
request an order of exemption under
sections 6(c) and 17(b) of the Act from
the prohibition on certain affiliated
transactions in section 17(a) of the Act
to the extent necessary to permit the
Underlying Funds to sell their shares to,
and redeem their shares from, the Funds
of Funds.4 Applicants state that such
transactions will be consistent with the
policies of each Fund of Funds and each
Underlying Fund and with the general
purposes of the Act and will be based
on the net asset values of the
Underlying Funds.
2. Applicants agree that any order
granting the requested relief will be
subject to the terms and conditions
stated in the application. Such terms
and conditions are designed to, among
other things, help prevent any potential
(a) undue influence over an Underlying
Fund that is not in the same ‘‘group of
investment companies’’ as the Fund of
Funds through control or voting power,
or in connection with certain services,
transactions, and underwritings, (b)
excessive layering of fees, and (c) overly
complex fund structures, which are the
concerns underlying the limits in
sections 12(d)(1)(A), (B), and (C) of the
Act.
3. Section 12(d)(1)(J) of the Act
provides that the Commission may
3 Applicants do not request relief for Funds of
Funds to invest in reliance on the order in business
development companies and registered closed-end
investment companies that are not listed and traded
on a national securities exchange.
4 A Fund of Funds generally would purchase and
sell shares of an Underlying Fund that operates as
an ETF through secondary market transactions
rather than through principal transactions with the
Underlying Fund. Applicants nevertheless request
relief from sections 17(a)(1) and (2) to permit each
ETF that is an affiliated person, or an affiliated
person of an affiliated person, as defined in section
2(a)(3) of the Act, of a Fund of Funds, to sell shares
to or redeem shares from the Fund of Funds. This
includes, in the case of sales and redemptions of
shares of ETFs, the in-kind transactions that
accompany such sales and redemptions. Applicants
are not seeking relief from section 17(a) for, and the
requested relief will not apply to, transactions
where an ETF could be deemed an affiliated person,
or an affiliated person of an affiliated person, of a
Fund of Funds because an investment adviser to the
ETF or an entity controlling, controlled by or under
common control with the investment adviser to the
ETF is also an investment adviser to the Fund of
Funds. A Fund of Funds will purchase and sell
shares of an Underlying Fund that is a closed-end
fund (including a business development company)
through secondary market transactions at market
prices rather than through principal transactions
with the closed-end fund. Accordingly, applicants
are not requesting section 17(a) relief with respect
to principal transactions with closed-end funds.
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]]>Agencies
[Federal Register Volume 83, Number 238 (Wednesday, December 12, 2018)]
[Notices]
[Pages 63916-63918]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-26911]
[[Page 63916]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-84749; File No. SR-BX-2018-060]
Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Port Fees
December 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 November 27, 2018, Nasdaq BX, Inc. (``BX'' 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 a proposal to amend port fees within
Options 7, Section 3, titled ``BX Options Market--Ports and Other
Services.''
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 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 Options 7, Section 3. Each change
will be described in more detail below.
New Defined Term ``Account'' [sic]
The Exchange proposes to adopt a new definition within Options 7,
Section 3 and apply this definition within the rule. The purpose of
this defined new term ``account number'' is to conform the Exchange's
use of certain terms within BX Rules. This term would be utilized in
Options 7, Section 3 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.
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\3\ BX 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), 83 FR 55765 (November 7, 2018) (SR-BX-2018-050).
The Nasdaq Stock Market LLC filed to amend The Nasdaq Options Market
LLC rules to define the terms ``account number,'' ``badge'' and
``mnemonic'' at Chapter I, Section 1(a)(69), (70) and (71)
respectively. See Securities Exchange Act Release No. 84571
(November 9, 2018), 83 FR 57758 (November 16, 2018) (SR-NASDAQ-2018-
086). Nasdaq Phlx LLC has filed to define the terms ``account
number,'' ``badge'' and ``mnemonic'' at Rule 1000(b)(51), (52) and
(53) respectively. See Securities Exchange Act Release No. 84620
(November 19, 2018), 83 FR 60512 (November 6, 2018) (SR-Phlx-2018-
71). 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 Options 7, 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 Options 7 without
being defined. The Exchange proposes to remove the term ``mnemonic''
from Options 7, Section 3 and replace the term with the defined term
``account number'' for the FIX protocol. 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 the FIX port, rather the
Exchange simply proposes to utilize the new term to better describe its
current pricing.
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\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 Securities Exchange Act
Release No. 84520 (November 1, 2018), 83 FR 55765 (November 7, 2018)
(SR-BX-2018-050). Mnemonics are issued to Participants to identify
associated persons of Participants.
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Also, the Exchange proposes to remove the term ``mnemonic'' from
the CTI Port Fee, FIX DROP Port Fee, BX Depth Port Fee and BX Top 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.''
The Exchange also proposes to amend current ``(c) Access and
Redistribution Fee'' as ``v'' to conform to the remainder of the rule.
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
among members and issuers and other persons using any facility, and is
not designed to permit unfair discrimination between customers,
issuers, brokers, or dealers.
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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4) and (5).
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New Defined Term ``Account'' [sic]
The Exchange's proposal to define the term ``account number''
within Options, Section 3 and apply that term within the rule in place
of the term ``mnemonic'' as to the manner in which FIX Port Fees are
priced is reasonable because the term is defined and will be utilized
consistently throughout Options 7, where applicable. The usage of the
defined term ``account number'' will
[[Page 63917]]
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 Options 7, Section 3.
The Exchange's proposal to define the term ``account number''
within Options 7, Section 3 and apply that term within Options 7,
Section 3, in place of the term ``mnemonic'' for the FIX Port Fee is
equitable and not unfairly discriminatory because the Exchange proposes
to apply that term uniformly in billing Participants utilizing those
ports.
The Exchange's proposal to remove the term ``mnemonic'' for the
pricing of the CTI Port Fee, FIX DROP Port Fee, BX Depth Port Fee and
BX Top 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 to define that term
within the BX Rules.\7\ The manner in which the term ``mnemonic'' was
defined for purposes of BX'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. This proposal will conform the defined term across BX
Rules.\8\ 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 BX Rules.
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.''
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\7\ See Securities Exchange Act Release No. 84520 (November 1,
2018), 83 FR 55765 (November 7, 2018) (SR-BX-2018-050).
\8\ See Chapter I, Section 1(a)(70).
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The Exchange's proposal to remove the term ``mnemonic'' for the
pricing of the CTI Port Fee, FIX DROP Port Fee, BX Depth Port Fee and
BX Top 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 amend the name of a port
fee and define a new term to be used more accurately to describe the
manner in which certain services within Options 7, Section 3 are
billed.
New Defined Term ``Account'' [sic]
The Exchange's proposal to define the term ``account number''
within Options 7, Section 3 and apply that term within that rule in
place of the term ``mnemonic'' with respect to the manner in which FIX
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. 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, BX Depth Port Fee and
BX Top 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-BX-2018-060 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-2018-060. 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-2018-060 and should
[[Page 63918]]
be submitted on or before January 2, 2019.
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\10\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-26911 Filed 12-11-18; 8:45 am]
BILLING CODE 8011-01-P
