[Federal Register Volume 83, Number 228 (Tuesday, November 27, 2018)]
[Notices]
[Pages 60909-60911]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-25740]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84638; File No. SR-NASDAQ-2018-093]


Self-Regulatory Organizations; The Nasdaq Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to 
Relocate Registration, Qualification Examination and Continuing 
Education Rules

November 20, 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 14, 2018, The Nasdaq Stock Market LLC (``Nasdaq'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``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 delete from [sic] the current rules on 
Registration, Qualification Examination and Continuing Education 
consisting of Rules 1200, 1210, 1220, 1230, 1240 and 1250 (the ``1200 
Series'' of rules) and to relocate them into General 4 in the 
Exchange's rulebook's (``Rulebook'') shell structure, as new General 4, 
Section 1.\3\
---------------------------------------------------------------------------

    \3\ Recently, 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, 
Nasdaq BX, Inc.; Nasdaq PHLX LLC (``Phlx''); Nasdaq ISE, LLC; Nasdaq 
GEMX, LLC; and Nasdaq MRX, LLC (``Affiliated Exchanges''). The shell 
structure containing General Equity and Options Rules currently 
contains eight chapters which, once complete, will apply a common 
set of rules to the Affiliated Exchanges. See Securities Exchange 
Act Release No. 82175 (November 29, 2017), 82 FR 57494 (December 5, 
2017) (SR-NASDAQ-2017-125).
---------------------------------------------------------------------------

    The text of the proposed rule change is available on the Exchange's 
website at http://nasdaq.cchwallstreet.com, at the principal office of 
the Exchange, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for

[[Page 60910]]

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 delete its rules on Registration, 
Qualification Examinations and Continuing Education where they are 
currently found in the Exchange's Rulebook and relocate them to General 
4, Regulation, of the ``General Equity and Options Rules'' in the 
Exchange's new shell Rulebook, as new Section 1, Registration, 
Qualification and Continuing Education.
    The 1200 Series of rules is a common set of rules among Nasdaq and 
the Affiliated Exchanges that were recently adopted on Nasdaq and on 
each of the Affiliated Exchanges.\4\ The Nasdaq 1200 Series of rules 
will ultimately, after they are relocated and pursuant to subsequent 
proposed rule changes by the Affiliated Exchanges, replace the existing 
1200 Series of rules as they currently appear in each of the Affiliated 
Exchanges' rulebooks, which will incorporate the relocated Nasdaq rules 
by reference.\5\
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release Nos. 84386 (October 9, 
2018), 83 FR 51988 (October 15, 2018) (SR-Nasdaq-2018-078); 84353 
(October 3, 2018), 83 FR 50999 (October 10, 2018) (SR-BX-2018-047); 
84352 (October 3, 2018), 83 FR 50981 (October 10, 2018) (SR-Phlx-
2018-61); 84384 (October 9, 2018), 83 FR 52006 (October 15, 2018) 
(SR-ISE-2018-82); 84448 (October 18, 2018), 83 FR 53669 (October 24, 
2018) (SR-GEMX-2018-33); and 84385 (October 9, 2018), 83 FR 52023 
(October 15, 2018) (SR-MRX-2018-31).
    \5\ Due to its trading floor and unique membership structure 
which features the concept of a ``member organization,'' the Phlx 
1200 Series differs slightly from the 1200 Series adopted on the 
remaining Affiliated Exchanges. Consequently, the Phlx 1200 Series 
will be amended to conform to the 1200 Series of the other 
Affiliated Exchanges prior to incorporating the Nasdaq 1200 Series 
of rules into the Phlx rulebook.
---------------------------------------------------------------------------

    The relocation and harmonization of the 1200 Series is part of the 
Exchange's continued effort to promote efficiency and conformity of its 
rules with those of its Affiliated Exchanges. The Exchange believes 
that the placement of the 1200 Series of rules in their new location in 
the shell will facilitate the use of the Rulebook by members of the 
Exchange who are also members of one or more of the Affiliated 
Exchanges. Moreover, the proposed changes will not amend the substance 
of the 1200 Series of rules. They will simply renumber the rules by 
adding ``General 4, Section 1.'' immediately before the current rule 
number. Thus, for example, current Rule 1210 will be redesignated 
``General 4, Section 1.1210''. Similarly, current references in the 
Rulebook to the ``Rule 1200 Series'' will be changed to the ``General 
4, Section 1.1200 Series''. Current Exchange rules--both within the 
existing 1200 Series of rules and elsewhere in the Rulebook--that 
cross-reference the current 1200 Series of rules will also be updated 
to refer to the 1200 Series of rules as renumbered.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\6\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\7\ 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. 
The relocation and renumbering of the 1200 Series of rules and the 
cross-reference updates are of a non-substantive nature. The proposal 
is intended ultimately to facilitate the harmonization of the 
Exchange's rules with those of its Affiliated Exchanges.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 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 are 
of a non-substantive nature.

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 \8\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\9\
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \9\ 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.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative for 30 days from the date of filing. However, Rule 
19b-4(f)(6)(iii) \10\ permits the Commission to designate a shorter 
time if such action is consistent with the protection of investors and 
the public interest. The Exchange has asked the Commission to waive the 
30-day operative delay in order to expedite the Exchange's 
reorganization of its Rulebook.\11\ The Exchange asserts the waiver 
would help promote efficiency and conformity of its rules with those of 
its Affiliated Exchanges. The proposed changes are non-substantive; 
they relocate rules that were adopted by Nasdaq in a prior rule filing. 
Waiver of the 30-day operative delay will enable Nasdaq to reorganize 
its Rulebook without delay. Thus, the Commission believes that the 
waiver of the 30-day operative delay is consistent with the public 
interest and hereby waives the 30-day operative delay.\12\
---------------------------------------------------------------------------

    \10\ 17 CFR 240.19b-4(f)(6)(iii).
    \11\ See supra note 3.
    \12\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    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 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:

[[Page 60911]]

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-NASDAQ-2018-093 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to File Number SR-NASDAQ-2018-093. 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 the Commission does not edit personal identifying 
information from submissions. You should submit only information that 
you wish to make available publicly. All submissions should refer to 
File Number SR-NASDAQ-2018-093 and should be submitted on or before 
December 18, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
Eduardo A. Aleman,
Assistant Secretary.
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

[FR Doc. 2018-25740 Filed 11-26-18; 8:45 am]
 BILLING CODE 8011-01-P


