[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