[Federal Register Volume 83, Number 194 (Friday, October 5, 2018)]
[Notices]
[Pages 50414-50416]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-21681]


=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84326; File No. SR-BX-2018-046]


Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Relocate the 
Pricing Schedule Rules

October 1, 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 September 17, 2018, Nasdaq BX, Inc. (``BX'' or ``Exchange'') filed 
with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I and II below, which Items 
have been prepared by the Exchange. The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    The Exchange proposes to (a) relocate its current Rule 7000 Series 
(``Equities Pricing'') and the rules at Chapter XV (``Options 
Pricing''; together, ``Equities and Options Pricing'') to the 
Exchange's rulebook's (``Rulebook'') shell structure; \3\ (b) make 
conforming cross-reference changes throughout the Rulebook; and (c) 
amend the Equity 4's title in the shell structure.
---------------------------------------------------------------------------

    \3\ In 2017, the Exchange added a shell structure to its 
Rulebook with the purpose of improving efficiency and readability 
and to align its rules closer to those of its five sister exchanges, 
The Nasdaq Stock Market LLC; Nasdaq PHLX LLC; Nasdaq ISE, LLC; 
Nasdaq GEMX, LLC; and Nasdaq MRX, LLC (``Affiliated Exchanges''). 
See Securities Exchange Act Release No. 82174 (November 29, 2017), 
82 FR 57492 (December 5, 2017) (SR-BX-2017-054).
---------------------------------------------------------------------------

    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 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 (a) relocate the Equities and Options 
Pricing rules, currently under the Equities Rule 7000 Series and 
Options Chapter XV, into the Rulebook's shell structure, respectively, 
under Equity 7 and Options 7 (both named ``Pricing Schedule''); (b) 
make conforming cross-reference changes throughout the Rulebook; and 
(c) amend the Equity 4's title, ``Equity Listing Rules,'' in the shell 
structure, as detailed below.
(a) Relocation of the Pricing Rules
    The Exchange, as part of its continued effort to promote efficiency 
and the conformity of its processes with those of the Affiliated 
Exchanges,\4\ and the goal of harmonizing and uniformizing its rules, 
proposes to relocate the Equities Pricing rules, currently under the 
Rule 7000 Series, into Equity 7, Pricing Schedule, of the shell 
structure. Specifically, the Exchange will add the word ``Section'' and 
renumber the Equities Pricing rules as detailed in the table below:
---------------------------------------------------------------------------

    \4\ See footnote 3.

------------------------------------------------------------------------
            Rule 7000 Series                         Equity 7
------------------------------------------------------------------------
7000....................................  Section 1.
7001....................................  Section 10.
7002....................................  Section 20.
7003....................................  Section 30.
7010....................................  Section 100.
7011....................................  Section 111.
7012....................................  Section 112.
7013....................................  Section 113.
7014....................................  Section 114.
7015....................................  Section 115.
7016....................................  Section 116.
7017....................................  Section 117.
7018....................................  Section 118.
7019....................................  Section 119.
7020....................................  Section 120.
7021....................................  Section 121.
7022....................................  Section 122.
7023....................................  Section 123.
7024....................................  Section 124.
7025....................................  Section 125.
7026....................................  Section 126.
7027....................................  Section 127.
7028....................................  Section 128.
7029....................................  Section 129.
7030....................................  Section 130.
7031....................................  Section 131.
7032....................................  Section 132.
7033....................................  Section 133.
7034....................................  Section 134.
7035....................................  Section 135.
7039....................................  Section 139.
7047....................................  Section 147.
7051....................................  Section 151.
7055....................................  Section 155.
7058....................................  Section 158.
------------------------------------------------------------------------

    The Exchange will also relocate the Options Pricing rules, 
currently under Chapter XV, into Options 7, Pricing Schedule, of the 
shell structure. No renumbering of the Options Pricing Schedule will be 
necessary other than replacing the abbreviated word ``Sec.'' with the 
full word ``Section.''
    The Exchange believes that the relocation of the Equities and 
Options Pricing rules will facilitate the use of the Rulebook by 
Members \5\ of the Exchange, including those who are members of other 
Affiliated Exchanges, and other market participants. Moreover, the 
proposed changes are of a non-substantive nature and they will not 
amend the relocated rules, other than to update their numbers as 
detailed above.
---------------------------------------------------------------------------

    \5\ Exchange Rule 0120(i).

---------------------------------------------------------------------------

[[Page 50415]]

(b) Cross-Reference Updates
    In connection with the changes described above, the Exchange 
proposes to update all cross-references in the Rulebook that direct the 
reader to the current placement of the Equities and Options Pricing 
rules and/or any of their subsections. Furthermore, the Exchange notes 
that the proposed amendments include cross-reference updates to the 
Connectivity rules under General 8, Section 1.\6\ Moreover, for 
consistency with the current title of General 8, Section 2 (``Direct 
Connectivity''), the Exchange proposes to update the description 
provided under Rule 7011(a) (to be relocated under Equity 7, Section 
111(a)) by removing the text ``to BX''.
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release No. 83535 (June 28, 
2018), 83 FR 31241 (July 3, 2018) (SR-BX-2018-024).
---------------------------------------------------------------------------

(c) Amendment of the Equity 4's Title
    Finally, the Exchange will amend Equity 4's title in the shell 
structure, currently ``Equity Listing Rules,'' and replace it with the 
word ``Reserved,'' since no rules will be placed in this section of the 
shell structure.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\7\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\8\ in particular, in that it is designed to promote 
just and equitable principles of trade, to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, and, in general to protect investors and the public interest, 
by promoting efficiency and structural conformity of the Exchange's 
processes with those of the Affiliated Exchanges and to make the 
Exchange's Rulebook easier to read and more accessible to its Members 
and market participants. The Exchange believes that the relocation of 
the Equities and Options Pricing rules, cross-reference updates, and 
the amendment to the Equity 4's title are of a non-substantive nature.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. The proposed changes do not 
impose a burden on competition because, as previously stated, they (i) 
are of a non-substantive nature, (ii) are intended to harmonize the 
structure of the Exchange's rules with those of its Affiliated 
Exchanges, and (iii) are intended to organize the Rulebook in a way 
that it will ease the Members' and market participants' navigation and 
reading of the rules.

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 \9\ and Rule 19b-
4(f)(6) thereunder.\10\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written 
notice of its intent to file the proposed rule change, along with a 
brief description and the text of the proposed rule change, at least 
five business days prior to the date of filing of the proposed rule 
change, or such shorter time as designated by the Commission.
---------------------------------------------------------------------------

    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \11\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \12\ 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. Waiver 
of the operative delay would allow the Exchange to promptly relocate 
the Pricing Schedule rules and continue to reorganize its Rulebook to 
promote efficiency and structural consistency between the Exchange's 
rules and those of the Affiliated Exchanges. 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.\13\
---------------------------------------------------------------------------

    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ 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).
---------------------------------------------------------------------------

    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-BX-2018-046 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-2018-046. 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

[[Page 50416]]

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-2018-046 and should be 
submitted on or before October 26, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-21681 Filed 10-4-18; 8:45 am]
 BILLING CODE 8011-01-P


