[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]
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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.
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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 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\
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\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).
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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\
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\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.
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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.
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\6\ 15 U.S.C. 78f(b).
\7\ 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. 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\
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\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.
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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\
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\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).
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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 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.
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\13\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2018-25740 Filed 11-26-18; 8:45 am]
BILLING CODE 8011-01-P