[Federal Register Volume 83, Number 28 (Friday, February 9, 2018)]
[Notices]
[Pages 5818-5822]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-02567]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-82628; File No. SR-BX-2018-006]
Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Exchange
Rules 7030, 7034, and 7051
February 5, 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 January 22, 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.
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\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 Exchange Rules 7030, 7034, and 7051,
as described below.
The text of the proposed rule change is available on the Exchange's
website at http://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
[[Page 5819]]
the proposed rule change and discussed any comments it received on the
proposed rule change. The text of these statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend several sections of its Rules to
harmonize its colocation, connectivity, and direct connectivity
services and fees with those of its sister exchanges, including The
Nasdaq Stock Market LLC (``Nasdaq''), Nasdaq ISE, LLC (``Nasdaq ISE''),
Nasdaq MRX, LLC (``Nasdaq MRX''), and Nasdaq GEMX, LLC (``Nasdaq
GEMX'') (collectively, the ``Nasdaq, Inc. Exchanges'').\3\ The Exchange
also proposes to update or eliminate certain obsolete or extraneous
language from its Rules.
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\3\ In the near future, Nasdaq PHLX LLC (``Phlx'') plans to file
a proposal with the Commission to make similar conforming changes to
its rules.
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The Nasdaq, Inc. Exchanges offer certain colocation, connectivity,
and direct connectivity services to their customers on a shared basis,
meaning that a customer may utilize these services to gain access to
any or all of the Nasdaq, Inc. Exchanges. The Nasdaq, Inc. Exchanges
only charge customers once for these shared services, even to the
extent that customers use the services to connect to more than one of
the Nasdaq, Inc. Exchanges.
The amendments that the Exchange proposes herein are intended
principally to ensure that the shared services that the Exchange
offers, and the fees that it charges for such services, are uniform
across the Nasdaq, Inc. Exchanges' rulebooks and reflect relevant
changes that have been made already to the rules of other Nasdaq, Inc.
Exchanges. The amendments also remove certain language from the
Exchange's Rules that refers to obsolete terms or expired time-limited
programs or that is otherwise extraneous.
First, the Exchange proposes to amend Rule 7030(d), entitled
``Testing Facilities,'' to eliminate extraneous provisions that were
inadvertently and erroneously included in the Rule but have no intended
meaning or purpose there. These provisions are subsections (d)(2)-
(d)(3). Subsection (d)(2) defines terms, such as ``Active Connection,''
``Idle Connection,'' and ``Period of Inactivity,'' that are not
utilized elsewhere in the Rule, Subsection (d)(3) lists exceptions to
the testing fees that are not applicable to the Exchange's Test
Facility. The Exchange proposes that existing subsection (d)(4) be
renumbered as new subsection (d)(2). The Exchange also proposes that
new subsection (d)(2) delete reference to an obsolete waiver of
installation fees for installations ordered prior to March 2014.
Lastly, the Exchange proposes to clarify that connectivity to the
Exchange's testing facility will also provide for connectivity to the
testing facilities of any or all of the other Nasdaq, Inc. Exchanges,
including those of not only Nasdaq and Phlx (as is stated in the
existing Rule), but also those of Nasdaq ISE, Nasdaq MRX, and Nasdaq
GEMX.
Second, the Exchange proposes to amend BX Rule 7034, which lists
the schedule of fees that the Exchange charges for colocation services,
to harmonize that schedule with the existing rules of other Nasdaq,
Inc. Exchanges, including Nasdaq Rule 7034, Chapter VI.E of the Nasdaq
ISE Schedule of Fees, Chapter IV.A of the Nasdaq MRX Schedule of Fees,
and Chapter IV.F of the Nasdaq GEMX Schedule of Fees. The proposed
changes are as follows:
The Exchange proposes to amend Rule 7034(a), under the
heading ``Cabinet with Power,'' to update the installation and monthly
fees it charges to customers to rent powered cabinet space in its
colocation facilities. The proposed changes are as follows: (i) For
super high density cabinets, the Exchange proposes to decrease its
installation fee from $7,000 to $4,500 and its monthly fee from $13,000
to $8,000; (ii) for high density cabinets, it proposes to decrease its
monthly fee from $7,000 to $4,500; (iii) for medium-high density
cabinets, it proposes to decrease its monthly fees from $6,000 to
$3,500; (iv) for medium density cabinets, it proposes to decrease its
monthly fees from $5,000 to $2,500; (v) for low density cabinets, it
proposes to decrease its monthly fees from $4,000 to $2,000; and (vi)
for half cabinets, it proposes to decrease its monthly fees from $3,000
to $2,000. These changes will render this subsection of the Rules
consistent with the existing rules of other Nasdaq, Inc. Exchanges,
including Nasdaq Rule 7034(a), Chapter VI.E of the Nasdaq ISE Schedule
of Fees, Chapter IV.A of the Nasdaq MRX Schedule of Fees, and Chapter
IV.F of the Nasdaq GEMX Schedule of Fees.
The Exchange proposes to amend Rule 7034(a) to remove the
paragraph entitled ``Temporary Fee Reduction for Cabinets with Power,''
as this fee reduction program has expired.
The Exchange proposes to amend Rule 7034(b), under the
heading ``External Telco/Inter-Cabinet Connectivity,'' to update the
monthly fees it charges for external telecommunications and inter-
cabinet connectivity, as follows: (i) For a category 6 cable patch, a
DS-3 connection, and a fiber connection, the Exchange proposes to
increase its monthly fees from $300 to $350; and (ii) for a POTS Line,
the Exchange proposes to increase the monthly fee from $0 to $50. These
changes will render this paragraph of the Rules consistent with a
corresponding paragraph in the existing rules of other Nasdaq, Inc.
Exchanges, including Nasdaq Rule 7034(b), Chapter VI.E of the Nasdaq
ISE Schedule of Fees, Chapter IV.A of the Nasdaq MRX Schedule of Fees,
and Chapter IV.F of the Nasdaq GEMX Schedule of Fees.
The Exchange proposes to amend Rule 7034(b), under the
heading ``Connectivity to BX,'' to update the fees it charges for fiber
connectivity to the Exchange, as follows: (i) For a 10Gb fiber
connection to the Exchange, the Exchange proposes to increase the
monthly fee from $5,000 to $10,000; (ii) for a 40Gb fiber connection to
the Exchange, it proposes to increase the monthly fee from $15,000 to
$20,000; (iii) for a 1Gb fiber connection to the Exchange, it proposes
to increase the monthly fee from $1,000 to $2,500; (iv) for a 1Gb
copper connection to the Exchange, it proposes to increase the monthly
fee from $1,000 to $2,500; (v) the Exchange proposes to add a 1Gb Ultra
fiber connection to the Exchange for an installation fee of $1,500 and
a monthly fee of $2,500; and (vi) the Exchange proposes to remove
obsolete language regarding an expired fee waiver program. These
changes will render this paragraph of the Rules consistent with
corresponding paragraphs in the existing rules of other Nasdaq, Inc.
Exchanges, including Nasdaq Rule 7034(b), Chapter VI.E of the Nasdaq
ISE Schedule of Fees, Chapter IV.A of the Nasdaq MRX Schedule of Fees,
and Chapter IV.F of the Nasdaq GEMX Schedule of Fees. The Exchange also
proposes an amendment to this provision to clarify that connectivity to
the Exchange will also provide for connectivity to any or all of the
other Nasdaq, Inc. Exchanges, including not only Nasdaq and Phlx (as
the existing Rule provides), but also Nasdaq ISE, Nasdaq MRX, and
Nasdaq GEMX. This proposal mirrors existing language in Chapter VI.E of
the Nasdaq
[[Page 5820]]
ISE Schedule of Fees, Chapter IV.A of the Nasdaq MRX Schedule of Fees,
and Chapter IV.F of the Nasdaq GEMX Schedule of Fees.
The Exchange proposes to amend Rule 7034(b) to add a new
paragraph under a heading entitled ``Connectivity to Third Party
Services.'' This proposed paragraph will provide for connectivity via
colocation to market data feeds from other markets and exchanges,\4\
Securities Information Processors (``SIPs'') \5\ data, and other non-
exchange services. The proposed connectivity and associated fees are as
follows: (i) For a 10Gb Ultra fiber connection, the Exchange proposes
to charge a $1,500 installation fee and an ongoing monthly fee of
$5,000; (ii) for a 1Gb Ultra fiber connection, it proposes to charge a
$1,500 installation fee and an ongoing monthly fee of $2,000; and (iii)
for a 1Gb Ultra or a 10Gb Ultra connection for UTP only, it proposes to
charge a $100 installation fee and an ongoing monthly fee of $100. All
of the foregoing fees will be waived for two connections per client to
UTP SIP feeds only (UQDF and UTDF). The Exchange notes that the
proposed paragraph parallels the existing rules of other Nasdaq, Inc.
Exchanges, including Nasdaq Rule 7034(b), Chapter VI.E of the Nasdaq
ISE Schedule of Fees, Chapter IV.A of the Nasdaq MRX Schedule of Fees,
and Chapter IV.F of the Nasdaq GEMX Schedule of Fees.
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\4\ For example, Third Party Connectivity will support
connectivity to the FINRA/Nasdaq Trade Reporting Facility, BZX and
BYX Depth Feeds, and NYSE Feeds. A customer must separately
subscribe to the third party services to which it connects with a
Third Party Connectivity subscription.
\5\ The SIPs link the U.S. markets by processing and
consolidating all protected bid/ask quotes and trades from every
registered exchange trading venue and FINRA into a single data feed,
and they disseminate and calculate critical regulatory information,
including the National Best Bid and Offer, Limit Up Limit Down price
bands, short sale restrictions and regulatory halts.
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The Exchange proposes to amend Rule 7034(b), under the
heading ``Market Data Connectivity,'' to add prefatory language that
exists in the analogous portion of Nasdaq Rule 7034(b). The language
merely notes that the Market Data feeds listed in the provision are
delivered to the Nasdaq Data Center via a fiber optic network.
Additionally, the Exchange proposes to re-categorize and update the
names of the certain CBOE/Bats/Direct Edge data feeds insofar as the
names listed in the current Rule are obsolete. Similarly, the Exchange
proposes to delete a $1,000 installation fee that presently applies to
the Direct Edge feeds insofar as the Direct Edge feeds are now
offerings of CBOE, along with the BZX and BYX feeds. Going forward, a
single, one-time $1,000 installation fee will apply to subscribers to
any or all of the CBOE data feeds.
The Exchange proposes to amend Rule 7034(b) to add a new
paragraph that will provide for multicast market data feeds from other
markets to be delivered to the Exchange's customers via wireless
microwave or millimeter wave networks. The Exchange notes that Nasdaq
already provides such data feeds to its customers pursuant to an
analogous paragraph in Nasdaq Rule 7034(b). The proposed data feeds,
and their corresponding installation and monthly fees, are as follows:
(i) NYSE Equities (Arca Integrated), for an installation fee of $5,000
and a monthly fee of $10,000; (ii) NYSE Equities (NYSE Integrated), for
an installation fee of $5,000 and a monthly fee of $10,000; (iii) BATS
Multicast PITCH (BZX and BYZ), for an installation fee of $2,500 and a
monthly fee of $7,500; (iv) Direct EDGE Depth of Book (EDGA, EDGX), for
an installation fee of $2,500 and a monthly fee of $7,500; (v) CME
Multicast Total (including CME Equities Futures Data, CME Fixed Income
Futures Data, and CME Metal Futures Data), for an installation fee of
$5,000 and a monthly fee of $23,500; (vi) CME Equities Futures Data
Only, for a $5,000 installation fee and a monthly fee of $10,000; (vii)
CME Fixed Income Futures Data Only, for a $5,000 installation fee and a
monthly fee of $10,000; and (viii) CME Metals Futures Data Only, for a
$5,000 installation fee and a monthly fee of $3,500.\6\ As to the
monthly fee for these services, the proposal provides that subscribers
will receive discounts based upon the number of subscriptions they
maintain.\7\ The Exchange proposes to add this paragraph to render the
Rules consistent with corresponding paragraphs in the existing rules of
other Nasdaq, Inc. Exchanges, including Nasdaq Rule 7034(b), Chapter
VI.E of the Nasdaq ISE Schedule of Fees, Chapter IV.A of the Nasdaq MRX
Schedule of Fees, and Chapter IV.F of the Nasdaq GEMX Schedule of Fees.
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\6\ The Exchange proposes to charge subscribers to any or all of
the CME Data Feeds a single $5,000 installation fee. In other words,
a subscriber to the CME Fixed Income Futures Data Feed and the CME
Metals Futures Data Feed will only pay a single $5,000 installation
fee for access to both feeds.
\7\ The proposed Rule paragraph provides that subscribers with
three to five microwave or millimeter wave wireless subscriptions
under Rule 7015 and/or Rule 7034(b) will receive a 5% discount on
all such subscriptions. Meanwhile, subscribers with six to ten
microwave or millimeter wave wireless subscriptions under Rule 7015
and/or Rule 7034(b) will receive a 10% discount on all such
subscriptions. Subscribers with eleven to fourteen microwave or
millimeter wave wireless subscriptions under Rule 7015 and/or Rule
7034(b) will receive a 15% discount on all such subscriptions.
Finally, subscribers with fifteen or more microwave or millimeter
wave wireless subscriptions under Rule 7015 and/or Rule 7034(b) will
receive a 20% discount on all such subscriptions.
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The Exchange proposes to amend Rule 7034(d), under the
heading ``Additional Charges/Services,'' to update the installation fee
it charges for super high density cabinet kits. Specifically, the
Exchange proposes to decrease the fee from $7,000 to $4,500. This
change will render this paragraph of the Rules consistent with
corresponding paragraphs in the existing rules of other Nasdaq, Inc.
Exchanges, including Nasdaq Rule 7034(d), Chapter VI.E of the Nasdaq
ISE Schedule of Fees, Chapter IV.A of the Nasdaq MRX Schedule of Fees,
and Chapter IV.F of the Nasdaq GEMX Schedule of Fees, entitled
``Additional Items.''
Third, the Exchange proposes to amend Rule 7051, entitled ``Direct
Connectivity to BX.'' This Rule describes the means by which customers
may connect directly to the Exchange's main or satellite data centers
via a third party vendor's telecommunications circuit. The proposed
changes to this Section are as follows:
The Exchange proposes to update the structure of Rule 7051
so that it will parallel the structure of the existing rules of other
Nasdaq, Inc. Exchanges, including Nasdaq Rule 7051, Chapter VI.F, G,
and H of the Nasdaq ISE Schedule of Fees, Chapter IV.B, C, and D of the
Nasdaq MRX Schedule of Fees, and Chapter IV.G, H, and I of the Nasdaq
GEMX Schedule of Fees. Specifically, the Exchange proposes to place the
existing text of Rule 7051 into a subsection (a), to be entitled
``Direct Circuit Connection to BX.'' It also proposes to add two
additional subsections, as described below.
The Exchange proposes to amend the text of Rule 7051 (as
reorganized in proposed subsection (a) and re-titled ``Direct Circuit
Connection to BX'') so that it is fully consistent with the existing
rules of other Nasdaq, Inc. Exchanges, including Nasdaq Rule 7051(a),
Chapter VI.F of the Nasdaq ISE Schedule of Fees, Chapter IV.B of the
Nasdaq MRX Schedule of Fees, and Chapter IV.G of the Nasdaq GEMX
Schedule of Fees in terms of both the direct circuit connections that
it offers to its customers as well as the associated fees that it
charges for such connections. The proposed changes are as follows: (i)
For 10Gb direct circuit connections to BX, the Exchange proposes to
increase the installation fee from $1,000 to
[[Page 5821]]
$1,500 and the monthly fee from $5,000 to $7,500; (ii) for 1Gb direct
circuit connections to BX, the Exchange proposes to increase the
installation fee from $1,000 to $1,500 and the monthly fee from $1,000
to $2,500; (iii) the Exchange proposes to add a 1Gb Ultra direct
circuit connection for an installation fee of $1,500 and a monthly fee
from $2,500; and (iv) the Exchange proposes to clarify that direct
circuit connectivity to the Exchange will also provide for direct
circuit connectivity to any or all of the other Nasdaq, Inc. Exchanges,
including not only Nasdaq and Phlx (as the existing Rule provides), but
also Nasdaq ISE, Nasdaq MRX, and Nasdaq GEMX.
The Exchange proposes to add a new subsection (b) to Rule
7051, entitled ``Direct Circuit Connection to Third Party Services.''
Through this subsection, which is an analogue to the existing rules of
other Nasdaq, Inc. Exchanges, including Nasdaq Rule 7051(b), Chapter
VI.G of the Nasdaq ISE Schedule of Fees, Chapter IV.C of the Nasdaq MRX
Schedule of Fees, and Chapter IV.H of the Nasdaq GEMX Schedule of Fees,
the Exchange will offer its customers direct circuit connections to
third party services, including the same third party services to which
it proposes to connect customers through colocation, as set forth in
proposed Rule 7034(b) (described above). Specifically, the Exchange
proposes to offer the following services and charge the following fees
for them: (i) A 10Gb Ultra direct circuit connection for an
installation fee of $1,500 and a monthly fee of $5,000; (ii) a 1Gb
Ultra direct circuit connection for an installation fee of $1,500 and a
monthly fee of $2,000; (iii) a 1Gb Ultra or 10Gb direct circuit
connection (for UTP only) for an installation fee of $100 and a monthly
fee of $100; (iv) an optional cable router for a $925 installation fee;
and (v) a monthly fee of $150 per ``U'' of cabinet space rented. For
direct circuit connectivity to UTP SIP feeds only, the installation and
monthly fees will be waived for the first two connections.
The Exchange proposes to add a new subsection (c) to Rule 7051,
entitled ``Point of Presence (POP) Connectivity.'' This subsection,
which is an analogue to the existing rules of other Nasdaq, Inc.
Exchanges, including Nasdaq Rule 7051(c), Chapter VI.H of the Nasdaq
ISE Schedule of Fees, Chapter IV.D of the Nasdaq MRX Schedule of Fees,
and Chapter IV.I of the Nasdaq GEMX Schedule of Fees, provides for
customers to connect directly to the Exchange through a ``Point of
Presence'' or ``POP'' that is located at one of the Exchange's
satellite data centers, rather than in the Exchange's main data center.
Each such POP, in turn, has a fully redundant connection to the
Exchange's primary data center. The proposed services and associated
fees are as follows: (i) The Exchange proposes to offering a 10Gb POP
connection to BX for an installation fee of $1,500 and a monthly of
$7,500; (ii) it proposes to offer a 1Gb Ultra POP connection to BX for
an installation fee of $1,500 and a monthly fee of $2,500; and (iii)
the Exchange proposes to state that the POP connectivity provided under
this subsection also applies to connectivity to any or all of the other
Nasdaq, Inc. Exchanges.
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 Sections
6(b)(4) and 6(b)(5) of the Act,\9\ 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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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(4) and (5).
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The Exchange believes that its proposals to update its schedule of
shared connectivity, direct circuit connectivity, and colocation
services that it provides in concert with its sister Nasdaq, Inc.
Exchanges, and for which the Nasdaq, Inc. Exchanges charge a single
fee, is reasonable insofar as the proposals will ensure that the
Exchange's Rules, as they apply to such services and fees, are
consistent with the applicable schedules and rules of other Nasdaq,
Inc. Exchanges, including Nasdaq, Nasdaq ISE, Nasdaq MRX, and Nasdaq
GEMX. In this regard, the Exchange notes that the proposed amendments
to its Rules largely reflect changes and updates that have been made
already to the schedules and rules of these other Nasdaq, Inc.
Exchanges. For example, each of the proposed changes to the Exchange's
connectivity, direct connectivity, and colocation fees will harmonize
the Exchange's fees with those of Nasdaq, Nasdaq ISE, Nasdaq MRX, and
Nasdaq GEMX.
In a few instances, however, the Exchange proposes amendments to
its rules that are not reflected in the rules of the other Nasdaq, Inc.
Exchanges. These proposals seek to eliminate certain language from its
Rules that is extraneous, eliminate references to expired fee reduction
or waiver programs, update references to third party data feeds to
reflect their current names, and eliminate an obsolete installation fee
for Direct Edge data feeds. The Exchange believes that these proposals
are non-controversial because it serves the interests of the public and
investors for the Exchange to maintain a current and accurate Rulebook
and because the proposals will not impact competition or limit access
to or availability of the Exchange or its systems.
The Exchange believes that the foregoing proposals provide for the
equitable allocation of fees because the connectivity and colocation
services to which these fees apply are shared services for which
customers pay once, regardless of whether the customers choose to use
these services to connect only to BX or also to any or all of the other
Nasdaq, Inc. Exchanges. Moreover, the other Nasdaq, Inc. Exchanges
already offer these shared services to their customers and do so at the
same prices that the Exchange now proposes to charge. As such, the
proposals will ensure that the fees that the Exchanges charges its
customers for shared services are the same fees that the other Nasdaq,
Inc. Exchanges charges their customers (including their customers who
are also BX Members) for the same shared services. In other words, the
proposals would ensure that a customer of the Exchange that wishes to,
say, purchase direct connectivity to all of the Nasdaq, Inc. Exchanges
will not pay more to do so through BX than it would pay if it purchased
that same connectivity from Nasdaq, and vice versa.
The proposed fees and fee changes, moreover, are equitably
allocated because the proposals align these fees with the costs that
the Exchange incurs to provide the shared services, including the costs
of developing, installing, maintaining, and upgrading equipment and
systems relating to connectivity and colocation services. Finally, the
proposed fees are equitably allocated because all member firms that
subscribe to a particular connectivity option under the amended Rules
will be assessed the same fee.
The proposals, similarly, are not unfairly discriminatory because
the shared services they entail will be available to all similarly
situated clients, while the fees and fee changes they entail will apply
uniformly to such clients to the extent that they choose to utilize the
shared services.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose
[[Page 5822]]
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 it
operates in a highly competitive market in which market participants
can readily favor competing venues if they deem fee levels at a
particular venue to be excessive, or rebate opportunities available at
other venues to be more favorable. In such an environment, the Exchange
must continually adjust its fees to remain competitive with other
exchanges and with alternative trading systems that have been exempted
from compliance with the statutory standards applicable to exchanges.
Because competitors are free to modify their own fees in response, and
because market participants may connect to third parties instead of
directly connecting to the Exchange, the Exchange believes that the
degree to which fee changes in this market may impose any burden on
competition is extremely limited.
In this instance, the proposed changes to the charges assessed for
colocation, connectivity, and direct circuit connectivity are
consistent with the fees already assessed by other Nasdaq, Inc.
Exchanges for the same shared services. To the extent that any of these
fees are [sic] unattractive to market participants, it is likely that
the Exchange, and its sister Nasdaq, Inc. Exchanges, will lose market
share as a result. The Exchange does not believe that the proposed
changes will impair the ability of members or competing order execution
venues to maintain their competitive standing in the financial markets.
Furthermore, the Exchange does not expect that its proposals to
eliminate or replace expired or obsolete language from its Rulebook
will have any impact on competition.
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)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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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 (http://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-BX-2018-006 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-2018-006. 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 (http://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-2018-006, and should be submitted on
or before March 2, 2018.
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\12\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-02567 Filed 2-8-18; 8:45 am]
BILLING CODE 8011-01-P