[Federal Register Volume 83, Number 72 (Friday, April 13, 2018)]
[Notices]
[Pages 16157-16161]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-07672]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83016; File No. SR-Phlx-2018-26]


Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend the 
Exchange's Pricing Schedule

April 9, 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 March 27, 2018, Nasdaq PHLX LLC (``Phlx'' 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.
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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 Sections VIII, X, and XI of the 
Exchange's Pricing Schedule, as described below.
    The text of the proposed rule change is available on the Exchange's 
website at http://nasdaqphlx.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 Exchange proposes to amend several sections of its Pricing 
Schedule to harmonize its colocation,

[[Page 16158]]

connectivity, and direct connectivity services and fees with the rules 
of Nasdaq BX, Inc. (``BX''). The Exchange also proposes to update or 
eliminate certain obsolete or extraneous language from its Pricing 
Schedule.
    The Exchange, along with its sister exchanges, BX, 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''), offer certain 
colocation, connectivity, and direct connectivity services to their 
customers on a shared basis, meaning that a customer may utilize theses 
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 BX. The amendments 
also update or remove certain language from the Exchange's Pricing 
Schedule that refers to obsolete terms or expired time-limited programs 
or that is otherwise extraneous.
    The first amendment that the Exchange proposes is to Section VIII 
of its Pricing Schedule, entitled ``NASDAQ PSX FEES.'' The Exchange 
proposes to amend the text under the heading ``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 (b) and (c). Subsection (b) defines 
terms, specifically ``Active Connection,'' ``Idle Connection,'' and 
``Period of Inactivity,'' that are not utilized elsewhere in the Rule. 
Subsection (c) lists exceptions to the testing fees and these 
exceptions are not applicable to the Exchange's Test Facility. The 
Exchange proposes that existing subsection (d) be renumbered as new 
subsection (b). The Exchange also proposes that new subsection (b) 
delete reference to an obsolete waiver of installation fees for 
installations ordered prior to March 2014. Furthermore, the Exchange 
proposes to remove obsolete references to the Exchange having two 
testing environments--one located in Carteret, New Jersey and another 
located in Ashburn, Virginia--because the Ashburn environment has been 
decommissioned. Lastly, the Exchange proposes to specify 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 BX, but 
also Nasdaq ISE, Nasdaq MRX, and Nasdaq GEMX.\3\
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    \3\ The Exchange proposes to amend Section VII.E of the Pricing 
Schedule to make a similar change.
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    Second, the Exchange proposes to amend Section X, which lists the 
schedule of fees that the Exchange charges for colocation services, to 
harmonize that schedule with BX Rule 7034. The proposed changes are as 
follows:
     The Exchange proposes to amend Section X(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 Pricing 
Schedule consistent with BX Rule 7034(a).
     The Exchange proposes to amend Section X(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 Section X(a), under the 
heading ``Multi-Firm Cabinet Charge,'' to state that the additional 
charge is per cabinet, per firm, which will render this provision 
consistent with a corresponding provision in Nasdaq Rule 7034(a).
     The Exchange proposes to amend Section X(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 Pricing Schedule consistent 
with a corresponding paragraph in BX Rule 7034(b).
     The Exchange proposes to amend Section X(b), under the 
heading ``Connectivity to Phlx,'' 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 Pricing Schedule consistent 
with corresponding paragraphs in BX Rule 7034(b). The Exchange also 
proposes an amendment to this provision to specify that connectivity to 
the Exchange will also provide for connectivity to any or all of the 
other Nasdaq, Inc. Exchanges, including not only to Nasdaq and BX, but 
also to Nasdaq ISE, LLC, Nasdaq MRX, LLC, and Nasdaq GEMX, LLC. This 
proposal mirrors existing language in Rule BX Rule 7034(b).
     The Exchange proposes to amend Section X(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

[[Page 16159]]

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 BX Rule 7034(b).
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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 Section X(b), under the 
heading ``Market Data Connectivity,'' to add prefatory language that 
exists in the analogous portion of BX 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 because the names listed in the 
current Pricing Schedule are obsolete. Similarly, the Exchange proposes 
to delete a $1,000 installation fee that presently applies to the 
Direct Edge feeds because 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. Finally, the Exchange proposes to delete from the 
asterisked footnote to this paragraph the word ``telco'' from the 
phrase ``Pricing is for telco connectivity only.'' These proposals will 
render this paragraph consistent with corresponding text in BX and 
Nasdaq Rules 7034(b).
     The Exchange proposes to amend Section X(b) to add a new 
paragraph that will provide for multicast market data feeds from other 
markets to be delivered to the Nasdaq Data Center via wireless 
microwave or millimeter wave networks. The Exchange notes that Nasdaq 
already provides such data feeds to its customers. 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 this paragraph of Section X(b) consistent with 
corresponding paragraphs in BX Rule 7034(b).
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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 Section X(b) will receive a 5% discount on all such 
subscriptions. Meanwhile, subscribers with six to ten microwave or 
millimeter wave wireless subscriptions under Section X(b) will 
receive a 10% discount on all such subscriptions. Subscribers with 
eleven to fourteen microwave or millimeter wave wireless 
subscriptions under Section X(b) will receive a 15% discount on all 
such subscriptions. Finally, subscribers with fifteen or more 
microwave or millimeter wave wireless subscriptions under Section 
X(b) will receive a 20% discount on all such subscriptions.
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     The Exchange proposes to amend Section X(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. The 
Exchange also proposes to amend the installation fee for Copper Patch 
Cords that is set forth in this paragraph from $4.50 + ``$1.50'' per 
``meter'' to $4.50 + ``$0.50'' per ``foot.'' These changes will render 
this paragraph of the Schedule of Fees consistent with the 
corresponding paragraph in BX Rule 7034(d).
    Third, the Exchange proposes to amend Section XI of the Exchange's 
Pricing Schedule, entitled ``Direct Connectivity to Phlx.'' This 
Section of the Pricing Schedule 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 Chapter 
XI so that it will parallel the structure of BX Rule 7051. 
Specifically, the Exchange proposes to place the existing text of 
Section XI into a subsection (a), to be entitled ``Direct Circuit 
Connection to Phlx.'' It also proposes to add two additional 
subsections, as described below.
     The Exchange proposes to amend the text of Chapter XI (as 
reorganized in proposed subsection (a) and re-titled ``Direct Circuit 
Connection to Phlx'') so that it is fully consistent with BX Rule 
7051(a) 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 Phlx, the Exchange proposes to increase 
the installation fee from $1,000 to $1,500 and the monthly fee from 
$5,000 to $7,500; (ii) for 1Gb direct circuit connections to Phlx, 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 of $2,500; and (iv) the 
Exchange proposes to specify 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 
BX, but also Nasdaq ISE, Nasdaq MRX, and Nasdaq GEMX.
     The Exchange proposes to add a new subsection (b) to 
Section XI, entitled ``Direct Circuit Connection to Third Party 
Services.'' Through this subsection, which is an analogue to BX Rule 
7051(b), 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 Section X(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 Ultra 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.\8\ For 
direct circuit connectivity to UTP SIP feeds only, the installation and 
monthly fees will be

[[Page 16160]]

waived for the first two connections per client.
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    \8\ These fees will be based on a height unit of approximately 
1.75 inches high, commonly called a ``U'' space and a maximum power 
of 125 Watts per U space.
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    The Exchange proposes to add a new subsection (c) to Section XI, 
entitled ``Point of Presence (POP) Connectivity.'' This subsection, 
which is an analogue to BX Rule 7051(c), 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 offer a 10Gb POP connection to Phlx for an 
installation fee of $1,500 and a monthly fee of $7,500; (ii) it 
proposes to offer a 1Gb Ultra POP connection to Phlx 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 provides POP 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,\9\ in general, and furthers the objectives of Sections 
6(b)(4) and 6(b)(5) of the Act,\10\ 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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    \9\ 15 U.S.C. 78f(b).
    \10\ 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 because the proposals will ensure that the 
Exchange's Pricing Schedule, as it applies to such services and fees, 
will be consistent with the applicable schedules and rules of the other 
Nasdaq, Inc. Exchanges. The Exchange also notes that the proposals will 
provide consistencies across the Nasdaq, Inc. Exchanges for the same 
services. The proposed amendments to the Exchange's Pricing Schedule 
reflect changes and updates that have been made already to the BX 
Rules. 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 BX.
    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 Phlx 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 charge their customers (including their 
customers who are also Phlx 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 Phlx 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.
    The Exchange's proposal to eliminate the $1,000 installation fee 
that presently applies to the Direct Edge feeds is reasonable because 
the Direct Edge feeds are now offerings of CBOE, along with the BZX and 
BYX feeds. The Exchange believes it is equitable, going forward, to 
charge a single, one-time $1,000 installation fee to subscribers to any 
or all of the CBOE data feeds, including the BZX Depth, BYX Depth, EDGA 
Depth, and EDGX Depth feeds. This proposal is not unfairly 
discriminatory because it will apply to all similarly situated 
customers of the CBOE data feeds.
    Lastly, the Exchange's other proposals--to eliminate certain 
language from the Exchange's Pricing Schedule that is extraneous, 
eliminate references to expired fee reduction or waiver programs, and 
update references to third party data feeds to reflect their current 
names--are consistent with Section 6(b) of the Act,\11\ in general, and 
further the objectives of Section 6(b)(5) of the Act,\12\ in 
particular, in that they are 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. These proposals are non-
controversial because maintaining a current and accurate Pricing 
Schedule serves the interests of the public and investors and because 
the proposals will not impact competition or limit access to or 
availability of the Exchange or its systems. The proposals also reflect 
changes that BX has already made to its rulebook.
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    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
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 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. The Exchange does not believe 
that the proposed changes will impair the ability

[[Page 16161]]

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 or 
to eliminate an obsolete $1,000 Direct Edge installation fee 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) of the Act \13\ and Rule 19b-
4(f)(6) thereunder.\14\
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    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change, along 
with a brief description and text of the proposed rule change, at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \15\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \16\ 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 requested that the Commission waive the 30-day operative delay so 
that the proposed rule change may become operative upon filing. The 
Commission notes that the proposal updates the Exchange's rules to 
reflect current and accurate information with respect to the Exchange's 
services and fees. The Commission also notes that the proposal 
harmonizes the Exchange's services and fees with those of the other 
Nasdaq, Inc. Exchanges, and that BX recently made similar changes to 
its rules.\17\ Therefore, 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 operative upon 
filing.\18\
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    \15\ 17 CFR 240.19b-4(f)(6).
    \16\ 17 CFR 240.19b-4(f)(6)(iii).
    \17\ See Securities Exchange Act Release No. 82628 (February 5, 
2018), 83 FR 5818 (February 9, 2018) (SR-BX-2018-006).
    \18\ For purposes only of waiving the 30-day operative delay, 
the Commission also has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule change 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-Phlx-2018-26 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-Phlx-2018-26. 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-Phlx-2018-26, and should be submitted on 
or before May 4, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-07672 Filed 4-12-18; 8:45 am]
 BILLING CODE 8011-01-P


