[Federal Register Volume 83, Number 69 (Tuesday, April 10, 2018)]
[Notices]
[Pages 15439-15441]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-07239]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82988; File No. SR-GEMX-2018-11]


Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend Chapter IV 
of the Exchange's Schedule of Fees

April 4, 2018.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934

[[Page 15440]]

(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on March 22, 2018, Nasdaq GEMX, LLC (``GEMX'' 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 Chapter IV of the Exchange's 
Schedule of Fees, as described below.
    The text of the proposed rule change is available on the Exchange's 
website at http://nasdaqgemx.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 Chapter IV of its Schedule of Fees 
to harmonize it with the rules of Nasdaq BX, Inc. (``BX'').
    The amendments eliminate or replace certain obsolete language in 
the Schedule of Fees. Specifically, the Exchange proposes to amend 
Chapter IV.F.2, under the heading ``Market Data Connectivity,'' to re-
categorize and to update references to the CBOE/Bats/Direct Edge data 
feeds to reflect their current names. 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. The Exchange notes that this proposal will render 
this paragraph of Chapter IV.F.2 consistent with BX Rule 7034. The 
Exchange also proposes to correct a typographical error in the name of 
the TSXV Level 2 Feed.
    The proposal adds a footnote to the first line of Chapter IV.F, 
which was mistakenly omitted from the Schedule of Fees, which states 
that the co-location services described therein are provided by Nasdaq 
Technology Services LLC.
    The Exchange also proposes to correct a typographical error in the 
numbering of the subsection of Chapter IV entitled ``Exchange Testing 
Facilities.'' The proposal changes the lettering of this subsection 
from ``I.'' to ``J.''
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\3\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\4\ 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 Exchange believes that its proposal to update Chapter IV.F.2 will 
serve the interests of the public and investors by ensuring that the 
Exchange's Rules are accurate and current with respect to the names of 
the third party data feeds to which it offers connectivity. 
Furthermore, the Exchange believes that it is in the public interest to 
correct typographical errors that could otherwise lead to confusion. 
These proposals will not impact competition or limit access to or 
availability of the Exchange or its systems. The Exchange notes the 
proposal is noncontroversial because BX has made the same changes to 
its rules.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(5).
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    The Exchange's proposal to eliminate the $1,000 installation fee 
that presently applies to the Direct Edge feeds is consistent with 
Section 6(b) of the Act,\5\ in general, and furthers the objectives of 
Sections 6(b)(4) and 6(b)(5) of the Act,\6\ in particular, in that it 
provides for the equitable allocation of reasonable dues, fees and 
other charges among members and issuers and other persons using any 
facility, and is not designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers. The proposal 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.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4) and (5).
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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 this instance, the proposed changes merely replace obsolete 
text, update references to data feeds, and correct typographical 
errors. The Exchange does not intend for or expect that such changes 
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 \7\ and Rule 19b-
4(f)(6) thereunder.\8\
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 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 \9\ normally does not become operative for 30 days after the date 
of its 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

[[Page 15441]]

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 update its rules without delay to reflect current and 
accurate information with respect to the third party data feeds to 
which it offers connectivity and to correct typographical errors. The 
Commission also notes that BX recently made similar changes to its 
rules.\11\ 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.\12\
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    \9\ 17 CFR 240.19b-4(f)(6).
    \10\ 17 CFR 240.19b-4(f)(6)(iii).
    \11\ See Securities Exchange Act Release No. 82628 (February 5, 
2018), 83 FR 5818 (February 9, 2018) (SR-BX-2018-006).
    \12\ 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-GEMX-2018-11 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-GEMX-2018-11. 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-GEMX-2018-11, and should be submitted on 
or before May 1, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-07239 Filed 4-9-18; 8:45 am]
 BILLING CODE 8011-01-P