[Federal Register Volume 83, Number 234 (Thursday, December 6, 2018)]
[Notices]
[Pages 62936-62938]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-26400]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84684; File No. SR-NASDAQ-2018-098]


Self-Regulatory Organizations; The Nasdaq Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Relocate the Exchange's Pricing Schedule

November 29, 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 19, 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 (a) relocate its current Rule 7000 Series 
(``Equities Pricing''), entitled ``Charges for Membership, Services, 
and Equipment,'' and The Nasdaq Options Market LLC's (``NOM'') 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.
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    \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).
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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 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 of the NOM rules, 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

[[Page 62937]]

Equities Pricing rules as detailed in the table below:
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    \4\ See footnote 3.

------------------------------------------------------------------------
               7000 Series                            Equity 7
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7000.....................................  Section 1.
7001.....................................  Section 10.
7002.....................................  Section 20.
7003.....................................  Section 30.
7007.....................................  Section 70.
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.
IM-7023-1................................  Section 123-IM-1.
7024.....................................  Section 124.
7025.....................................  Section 125.
7026.....................................  Section 126.
IM-7026-1................................  Section 126-IM-1.
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.
7036.....................................  Section 136.
7037.....................................  Section 137.
IM-7037-1................................  Section 137-IM-1.
7038.....................................  Section 138.
7039.....................................  Section 139.
IM-7039-1................................  Section 139-IM-1.
7040.....................................  Section 140.
7041.....................................  Section 141.
7042.....................................  Section 142.
7043.....................................  Section 143.
7044.....................................  Section 144.
7045.....................................  Section 145.
7046.....................................  Section 146.
7047.....................................  Section 147.
IM-7047-1................................  Section 147-IM-1.
7048.....................................  Section 148.
7049.....................................  Section 149.
7050.....................................  Section 150.
7051.....................................  Section 151.
7052.....................................  Section 152.
7053.....................................  Section 153.
7054.....................................  Section 154.
7055.....................................  Section 155.
7056.....................................  Section 156.
7057.....................................  Section 157.
IM-7057-1................................  Section 157-IM-1.
7058.....................................  Section 158.
7059.....................................  Section 159.
7060.....................................  Section 160.
7061.....................................  Section 161.
7100.....................................  Section 200.
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    The Exchange will also relocate the Options Pricing rules, 
currently under Chapter XV of the NOM rules, into Options 7, Pricing 
Schedule, of the shell structure. No renumbering of the Options Pricing 
rules 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 
previously detailed.
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    \5\ Exchange Rule 0120(i).
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(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. Specifically, the Exchange will 
update the cross-references in Nasdaq Rules 1002(c)(1), IM-5220, and 
8320(a)(1). Moreover, for consistency with the current title of General 
8, Section 2 (``Direct Connectivity''), the Exchange proposes to update 
the description provided under Rule 7007(a) (to be relocated under 
Equity 7, Section 70(a)) by removing the text ``to Nasdaq''.
(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,\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, 
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.
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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 (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 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 if consistent with the protection of investors 
and the public interest, the proposed rule change has become effective 
pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-
4(f)(6)(iii) thereunder.\9\
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6)(iii). As required under Rule 
19b4(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.
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    The Exchange has asked the Commission to waive the 30-day operative 
delay so that the proposal may become operative immediately upon 
filing. The Exchange states that waiver of the 30-day operative delay 
will allow it to promptly relocate the Pricing Schedule rules and 
continue to reorganize its Rulebook as already done in previous 
filings. The Commission believes that waiving the 30-day operative 
delay is consistent with the protection of investors and the public 
interest, as it would allow the Exchange, without delay, to reorganize 
its

[[Page 62938]]

Rulebook in a manner that improves accessibility, readability and 
structural consistency with the rules of its Affiliated Exchanges. For 
this reason, the Commission designates the proposed rule change to be 
operative upon filing.\10\
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    \10\ 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.

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-NASDAQ-2018-098 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-2018-098. 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-NASDAQ-2018-098, and should be submitted 
on or before December 26, 2018.
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    \11\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-26400 Filed 12-4-18; 8:45 am]
 BILLING CODE 8011-01-P