[Federal Register Volume 85, Number 105 (Monday, June 1, 2020)]
[Notices]
[Pages 33235-33239]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-11645]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-88938; File No. SR-BX-2020-009]


Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Relocate the BX 
Disciplinary Rules and Incorporate by Reference the Disciplinary Rules 
of The Nasdaq Stock Market LLC

May 26, 2020.
    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 May 15, 2020, Nasdaq BX, Inc. (``BX'' 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 (A) relocate the BX Series 8000 and 9000 
Rules (the ``Current BX 8000 Series,'' ``Current BX 9000 Series,'' and, 
collectively, the ``Disciplinary Rules'') to the Exchange's rulebook's 
(``Rulebook'') shell structure; \3\ (B) the Exchange is also proposing 
to simultaneously replace the text of the Disciplinary Rules with 
introductory paragraphs in each that incorporate by reference The 
Nasdaq Stock Market LLC's (``Nasdaq'') Series 8000 and 9000 Rules, 
currently located under the General 5 title of the Nasdaq rulebook.\4\
---------------------------------------------------------------------------

    \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 
(``ISE''); Nasdaq GEMX, LLC (``GEMX''); and Nasdaq MRX, LLC 
(``MRX'') (together, the ``Affiliated Exchanges''). See Securities 
Exchange Act Release No. 82174 (November 29, 2017), 82 FR 57492 
(December 5, 2017) (SR-BX-2017-054).
    \4\ See Securities Exchange Act Release No. 87778 (December 17, 
2019), 84 FR 70590 (December 23, 2019) (SR-NASDAQ-2019-098).
---------------------------------------------------------------------------

    The text of the proposed rule change is available on the Exchange's 
website at http://nasdaqbx.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
A. Rule Relocation
    The Exchange proposes to relocate the Disciplinary Rules under the 
General 5 title (``Discipline'') in the Rulebook shell. The relocation 
and harmonization of these rules is part of the Exchange's continued 
effort to promote efficiency and conformity of its processes with those 
of its Affiliated Exchanges. The Exchange believes that the placement 
of the Disciplinary Rules into their new location in the shell will 
facilitate the use of the Rulebook by members, associated persons, or 
other persons subject to BX's jurisdiction.
    Specifically, the Exchange proposes to relocate the Disciplinary 
Rules as follows:

[[Page 33236]]



----------------------------------------------------------------------------------------------------------------
 General 5--Discipline: Proposed new rule No.                          Current BX rule No.
----------------------------------------------------------------------------------------------------------------
Section 1.....................................  8000. Investigations and Sanctions.
Section 2.....................................  9000. Code of Procedure.
----------------------------------------------------------------------------------------------------------------

B. Incorporation by Reference
    The Exchange also proposes to simultaneously replace the current BX 
Series 8000 and 9000 Rules with introductory paragraphs to each that 
incorporate by reference the Nasdaq Series 8000 and 9000 Rules (located 
in General 5 Discipline), respectively, and state that such Nasdaq 
Rules shall be applicable to Exchange Members, associated persons, and 
other persons subject to the Exchange's jurisdiction.\5\
---------------------------------------------------------------------------

    \5\ The Exchange notes that the proposed changes will not become 
operative unless and until the Commission approves the Exchange's 
request, to be filed pursuant to Section 36 of the Exchange Act and 
SEC Rule 0-12 thereunder, for an exemption from the rule filing 
requirements of Section 19(b) of the Exchange Act as to changes to 
the BX 8000 Series (New General 5, Section 1) and BX 9000 Series 
(New General 5, Section 2) that are effected solely by virtue of a 
change to the Nasdaq Series 8000 or 9000 Rules Series.
---------------------------------------------------------------------------

    Except as noted below, the Nasdaq Series 8000 and 9000 Rules are 
substantially similar to BX's Disciplinary Rules. The proposed 
introductory paragraphs list instances in which cross-references in the 
Nasdaq Series 8000 and 9000 Rules to other Nasdaq rules shall be read 
to refer instead to the Exchange Rules, and references to Nasdaq terms 
(whether or not defined) shall be read to refer to the Exchange-related 
meanings of those terms. For instance, references in both the Nasdaq 
Series 8000 and 9000 Rules to the following terms shall be read to 
refer to the Exchange-specific meanings of those terms: The terms 
``Exchange'' or ``Nasdaq'' shall be read to refer to BX; the terms 
``Rule,'' ``Rules of Nasdaq,'' or ``Nasdaq Rules'' shall be read to 
refer to the BX Rules (also referenced in the Disciplinary Rules as 
``Equity Rules''); in Rules 9521(b)(2) and 9521(b)(3) the term ``Nasdaq 
By-Laws'' shall be read as a reference to BX's Rules; the terms 
``Board'' or ``Nasdaq Board'' shall be read to refer to the BX Board of 
Directors; the terms ``Member,'' ``member firm,'' or ``associated 
person'' shall be read to refer to a BX Member, BX member firm, or BX 
associated person; the terms ``Nasdaq Regulation'' or ``Nasdaq 
Regulation Department'' shall be read to refer to the BX Regulation 
Department; the term ``Nasdaq Options Market'' shall be read to refer 
to the BX Options Market; and the term ``Chief Regulatory Officer'' 
shall be read to refer to BX's Chief Regulatory Officer.
    Additionally, the Exchange proposes that the references in the 
Nasdaq Rule 9000 Series to Equity 5, Sections 4 and 5 shall be read, 
respectively, to refer to BX's Rules 7440A and 7450A.
    Moreover, in addition to the proposed introduction to the BX Series 
9000 Rules (New General 5, Section 2) indicating how certain Nasdaq 
Series 9000 Rules should be read to apply to Exchange members, 
associated persons, and other persons subject to the Exchange's 
jurisdiction, the proposed introduction will indicate that specific 
language in certain Disciplinary Rules will be preserved. Specifically:
     Rule 9231(b)(1)(C) in the Nasdaq rules shall be read to 
allow the Chief Hearing Officer to select as a Panelist a person who 
previously served as a Governor of the Exchange prior to its 
acquisition by Nasdaq, Inc., but does not serve currently in that 
position; and 9231(b)(1)(D) shall be read to allow a person who is a 
member of FINRA's Market Regulation Committee to be among the FINRA 
Panelists approved by the Exchange Board at least annually whom the 
Chief Hearing Officer may also select as a Panelist. This language is 
necessary to preserve the pool of individuals from whom the Chief 
Hearing Officer may select to serve as a Panelist for BX disciplinary 
matters.
     The term ``Nasdaq By-Laws'' in Nasdaq Rules 9521(b)(2) and 
(b)(3) shall be read as a reference to BX's Rules (or ``Rules of the 
Exchange,'' as described in Current BX Rules 9521(b)(2) and (b)(3)) for 
purposes of determining the disqualification of members and associated 
persons to the Exchange.\6\
---------------------------------------------------------------------------

    \6\ In a future filing, Nasdaq will amend its Rules 9521(b)(2) 
and (b)(3) concerning the qualification/disqualification of Exchange 
members, to align its rules closer to BX and Phlx's rulebook.
---------------------------------------------------------------------------

     Rules 9552(f), 9553(g), 9554(g), 9555(g), 9556(g), and 
9558(g) in the Nasdaq 9000 Series shall be read to continue to allow 
the filing of a request for termination of a suspension (or a request 
for termination of the limitation, prohibition or suspension with 
respect to Rules 9555(g) and 9558(g)), to be made with either the head 
of the Exchange or the FINRA department or office that issued the 
notice or that is handling the matter on behalf of the issuing 
department or office. The inclusion of this language is necessary so 
that it is clear that such filings may continue to be made with the 
Exchange.
    The Exchange also believes that it is necessary, as a consequence 
of the relocation of its Disciplinary Rules and the incorporation by 
reference of the Nasdaq rules as previously described, to eliminate 
certain differences between the BX and Nasdaq rules by adopting the 
Nasdaq rule text by reference. The following discussions identify the 
differences between the current BX Disciplinary Rules and the 
corresponding Nasdaq Disciplinary Rules to be incorporated by 
reference:
Current BX IM-8310-3(b)
    Current BX Rule 9120(f) provides that ``[t]he term ``Department of 
Enforcement'' means the Department of Enforcement of FINRA Regulation, 
acting on behalf of the Exchange pursuant to the FINRA Regulatory 
Contract.'' \7\ Current BX IM-8310-3(b), however, uses the term 
``Department of Enforcement of FINRA.'' Since Nasdaq IM-8310-3(b) uses 
the term ``Department of Enforcement'' and to the extent that such term 
is already defined in the BX rulebook, the Exchange believes that it is 
appropriate to apply the term provided in Nasdaq IM-8310-3(b) and 
incorporate it by reference into the BX rule.
---------------------------------------------------------------------------

    \7\ This definition mirrors the one in the Nasdaq rulebook under 
Rule 9120(f).
---------------------------------------------------------------------------

Current BX Rule 8320
    In 2010, Nasdaq created Rule 7007 (``Collection of Fees'') to 
facilitate an efficient method of collecting undisputed or final fees, 
fines, charges and/or other monetary sanctions or monies due and owing 
to Nasdaq from The Nasdaq Option Market (``NOM'') Participants.\8\
---------------------------------------------------------------------------

    \8\ See Securities Exchange Act Release No. 63536 (December 14, 
2010), 75 FR 80102 (December 21, 2010) (SR-NASDAQ-2010-163). Nasdaq 
Rule 7007 was later relocated to Options Chapter XV, Section 1 and 
then moved to its current location under Options 7, Section 1, in 
the Nasdaq rulebook shell. See Securities Exchange Act Release No. 
66158 (January 13, 2012), 75 FR 80102 (January 13, 2012) (SR-NASDAQ-
2012-006) and Securities Exchange Act Release No. 84684 (November 
29, 2018), 83 FR 62936 (December 6, 2018) (SR-NASDAQ-2018-098).
---------------------------------------------------------------------------

    Similarly, in 2012, BX adopted its options market rules (``BX 
Options Market'') to operate as a fully automated, price/time priority 
execution system built on the core functionality of the NOM.\9\ In its 
filing,

[[Page 33237]]

BX proposed to adopt, under respective Chapter XV, Section 2 a rule 
identical to the Nasdaq Collection of Fees rule.\10\ Although, at the 
time of its creation, the Nasdaq Collection of Fees rule was cross-
referenced to current Nasdaq Rule 8320(a)(1),\11\ such cross-reference 
was not included in the filing that created the BX Options Market.
---------------------------------------------------------------------------

    \9\ Securities Exchange Act Release No. 67256 (June 26, 2012), 
77 FR 39277 (July 2, 2012) (SR-BX-2012-030). This rule was later 
relocated to the BX Rulebook shell. See Securities Exchange Act 
Release No. 84326 (October 1, 2018), 83 FR 50414 (October 1, 2018) 
(SR-BX-2018-046).
    \10\ Id.
    \11\ See supra note 8.
---------------------------------------------------------------------------

    Based on the above, the Exchange believes that it is appropriate 
that BX adopts the aforementioned cross-reference to make the 
collection of fees owed to the Exchange more efficient. Therefore, the 
Exchange believes that it is appropriate to incorporate by reference 
Nasdaq Rule 8320.
Current BX Rule 9120
    In 2018, the Exchange amended its Disciplinary Rules to align them 
with the investigatory and disciplinary processes of Nasdaq PHLX LLC 
(``Phlx'').\12\ As stated in its proposal, the changes to the 
``Interested Staff'' concept (which, at the time, was relocated under 
9120(r)) were done to conform the BX rule to Phlx's definition. At the 
time, however, the proposed harmonizing changes to BX Rule 
9120(r)(1)(B) inadvertently excluded the words ``Head of'' and omitted 
to add the word ``the''; indeed, the text should have read ``Head of 
the Exchange's Regulation Department'' instead of, simply, ``Exchange's 
Regulation Department.''
---------------------------------------------------------------------------

    \12\ See Securities Exchange Act Release No. 84354 (October 3, 
2018), 83 FR 50723 (October 9, 2018) (SR-BX-2018-042).
---------------------------------------------------------------------------

    The correct definition, as explained above, would also align with 
the term currently defined in Nasdaq Rule 9120(r)(1)(B), which provides 
that ``Interested Staff'' shall mean ``an Exchange employee of the 
Nasdaq Regulation Department who reports, directly or indirectly, to 
the Head of the Nasdaq Regulation Department.''
    The Exchange believes that it is appropriate to apply Nasdaq Rule 
9120 and to incorporate it by reference into the BX rule. Additionally, 
the Exchange notes applying the Nasdaq Rule 9120 and incorporating it 
by reference into the Exchange rule should correct a typo in Current BX 
Rule 9120(v) that erroneously uses the term ``RINRA'' instead of the 
acronym ``FINRA.''
Current BX IM-9216
    In 2007, Nasdaq filed a proposal to adopt rules that would govern 
participation in the NOM.\13\ This proposal, among other changes, 
adopted NOM Rule Chapter X, Section 7 (``Penalty for Minor Rule 
Violations'') and was cross-referenced in Nasdaq IM-9216.
---------------------------------------------------------------------------

    \13\ See Securities Exchange Act Release No. 57478 (March 12, 
2008), 73 FR 14521 (March 12, 2008) (SR-NASDAQ-2007-004).
---------------------------------------------------------------------------

    The provisions in the Nasdaq Penalty for Minor Rule Violations rule 
were identical to those adopted in 2012 by the BX Options Market.\14\ 
Similarly, the Exchange adopted under BX IM-9216 a cross-reference to 
BX Chapter X, Section 7 \15\ (Chapter X, Section 7, was later relocated 
under the Options 11 title in the Rulebook shell \16\); however, such 
cross-reference was inadvertently left out of the Rulebook. Thus, the 
Exchange believes that incorporating by reference Nasdaq IM-9216 into 
the BX rule will restore the cross-reference to the current BX's 
Penalty for Minor Rule Violations rule.
---------------------------------------------------------------------------

    \14\ See supra note 9.
    \15\ Id.
    \16\ See Securities Exchange Act Release No. 87468 (November 5, 
2019), 84 FR 61091 (November 12, 2019) (SR-BX-2019-039).
---------------------------------------------------------------------------

    The Exchange also believes that incorporating by reference Nasdaq 
IM-9216 will correct a typo in the BX cross-reference that currently 
points to SEC Exchange Act (``SEA'') Rule 602(b)(5). The cross-
reference refers to the failure to properly update published quotations 
in certain Electronic Communication Networks; however, the rules for 
the dissemination of such information are actually described in SEA 
Rule 605(b)(5).
Current BX Rule 9231
    The Exchange proposes to adopt the cross-reference in Nasdaq Rule 
9231(c) concerning the appointment of arbitrators pursuant to the FINRA 
Rules 12000 and 13000 Series (the ``FINRA Arbitration Rules''). Current 
BX Rule 9231(c) provides that arbitrators shall be appointed pursuant 
to BX General 6 (``BX Arbitration Rules'').\17\ The BX Arbitration 
Rules incorporate by reference the similar Nasdaq arbitration rules 
(also under Nasdaq's General 6 title); in turn, the Nasdaq rules 
incorporate the FINRA Arbitration Rules by reference into its text. 
Following the incorporation by reference of Nasdaq Rule 9231, BX Rule 
9231(c) will directly cross-reference the FINRA Arbitration Rules, 
which will not create any differences from the current BX rules.
---------------------------------------------------------------------------

    \17\ See Securities Exchange Act Release No. 84476 (October 24, 
2018), 83 FR 54630 (October 30, 2018) (SR-BX-2018-048).
---------------------------------------------------------------------------

Current BX Rule 9232
    Currently, Nasdaq Rule 9232(a) provides a cross-reference to 
subsections (A) through (D) in Nasdaq Rule 9231(b)(1), whereas Current 
BX Rule 9232(a) simply provides a reference to BX Rule 9231(b)(1). The 
Exchange believes that it is appropriate to apply Nasdaq Rule 9232(a) 
and incorporate it by reference into the BX rule since the Nasdaq rule 
contains a more precise cross-reference to Nasdaq Rule 9231(b)(1).
Current BX Rule 9522
    The Exchange proposes to apply and incorporate by reference Nasdaq 
Rule 9522 into current BX Rule 9522. This will amend the first sentence 
in Current BX Rule 9522(a)(1) by replacing the term ``Exchange's 
Regulation Department'' with the term ``Department of Member 
Regulation'' as currently provided in Nasdaq Rule 9522(a)(1). As 
previously indicated by the Exchange,\18\ the FINRA Department of 
Member Regulation \19\ currently performs the functions described in 
Current BX Rule 9522. Therefore applying the Nasdaq rule and 
incorporating it by reference into BX Rule 9522 provides clarity to the 
rule text and aligns it with Nasdaq and Phlx's rules.
---------------------------------------------------------------------------

    \18\ See Securities Exchange Act Release No. 84354 (October 3, 
2018), 83 FR 50724 (October 9, 2018) (SR-BX-2018-042).
    \19\ As defined in BX 9120(g).
---------------------------------------------------------------------------

2. Statutory Basis
Rule Relocation
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\20\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\21\ in particular, in that it is designed to 
promote just and equitable principles of trade and to protect investors 
and the public interest by bringing greater transparency to its rules 
by relocating its Rules into the new Rulebook shell together with other 
rules which have already been relocated. The Exchange's proposal is 
consistent with the Act and will protect investors and the public 
interest by harmonizing its rules, where applicable, across Nasdaq 
markets so that members can readily locate rules which cover similar 
topics. The relocation and harmonization of the Disciplinary Rules is 
part of the Exchange's continued effort to promote efficiency and 
conformity of its processes with those of its Affiliated Exchanges. The 
Exchange believes that the placement of these Disciplinary Rules into 
their new location in the

[[Page 33238]]

shell will facilitate the use of the Rulebook by members, associated 
persons, and other persons subject to the Exchange's jurisdiction. 
Specifically, the Exchange believes that market participants that are 
members of more than one Nasdaq market will benefit from the ability to 
compare Rulebooks.
---------------------------------------------------------------------------

    \20\ 15 U.S.C. 78f(b).
    \21\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange is not substantively amending rule text unless noted 
otherwise within this proposal. The Exchange's Affiliated Exchanges 
have already completed or are in the process of completing the 
relocation of corresponding disciplinary rules into the same location 
of their rulebooks for ease of reference.\22\ The Exchange believes its 
proposal will benefit investors and the general public by increasing 
the transparency of its Rulebook and promoting easy comparisons among 
the various Nasdaq Rulebooks.
---------------------------------------------------------------------------

    \22\ See Securities Exchange Act Release No. 86138 (July 18, 
2019), 84 FR 29567 (July 24, 2019) (SR-ISE-2019-17); Securities 
Exchange Act Release No. 86346 (July 10, 2019), 84 FR 33999 (July 
16, 2019) (SR-GEMX-2019-08); and Securities Exchange Act Release No. 
86424 (July 12, 2019), 84 FR 36134 (July 26, 2019) (SR-MRX-2019-15); 
and Securities Exchange Act Release No. 87778 (December 17, 2019), 
84 FR 70590 (December 23, 2019) (SR-NASDAQ-2019-098). Similarly, 
Phlx recently submitted a proposal to relocate its disciplinary 
rules. See Securities Exchange Act Release No. 88519 (March 31, 
2020), 85 FR 19203 (April 6, 2020) (SR-Phlx-2020-09).
---------------------------------------------------------------------------

Incorporation by Reference
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\23\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\24\ 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 consolidating its rules into a single rule set. The 
Exchange's Affiliated Exchanges have filed similar proposed rule 
changes to amend and relocate their disciplinary rules \25\ so that the 
Nasdaq 8000 Series and 9000 Series Rules, which govern the 
investigative and disciplinary processes, are similarly consolidated 
and incorporated by reference.
---------------------------------------------------------------------------

    \23\ See supra note 20.
    \24\ See supra note 21.
    \25\ See supra note 22.
---------------------------------------------------------------------------

    Replacing the Current BX Series 8000 (to be relocated under General 
5, Section 1) and 9000 (to be relocated under General 5, Section 2) 
Rules with introductory paragraphs to each that incorporate by 
reference Nasdaq Series 8000 and 9000 Rules, respectively, will provide 
an easy reference for members, associated persons, and other persons 
subject to the Exchange's jurisdiction seeking to understand and follow 
the investigative and disciplinary processes across all of Nasdaq's 
Exchanges. As noted, the Exchange's Affiliated Exchanges have filed 
similar proposed rule changes to amend and relocate their disciplinary 
rules to incorporate by reference the Nasdaq rules so that the Nasdaq 
Series 8000 and 9000 Rules are the source document for all of the 
Nasdaq Exchanges' investigative and disciplinary processes. The 
Exchange notes that the substance of the current rules is not changing. 
The Exchange desires to conform its rules to give its members and the 
members of its Affiliated Exchanges the ability to quickly locate rules 
in one central location.
    The Exchange also believes that the proposal is consistent with 
Section 6(b)(6) of the Act,\26\ which requires that the rules of an 
exchange provide that its members be appropriately disciplined for 
violations of the Act as well as the rules and regulations thereunder, 
or the rules of the Exchange, by expulsion, suspension, limitation of 
activities, functions, and operations, fine, censure, being suspended 
or barred from being associated with a member, or any other fitting 
sanction. As noted above, the Exchange proposes to include introductory 
paragraphs to each of BX's Disciplinary Rules (to be relocated, 
respectively, under General 5, Sections 1 and 2) that list instances in 
which cross references in the Nasdaq Series 8000 and 9000 Rules to 
other Nasdaq rules should be read to refer instead to the Exchange 
Rules and references to Nasdaq terms (whether or not defined) shall be 
read to refer to the Exchange-related meanings of those terms. This is 
consistent with the Act because it minimizes confusion and ensures the 
proper application of the Nasdaq Rules to BX.
---------------------------------------------------------------------------

    \26\ 15 U.S.C. 78f(b)(6).
---------------------------------------------------------------------------

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 Exchange believes that this 
rule change does not impose an undue burden on competition because the 
Exchange is merely incorporating the Nasdaq Series 8000 and 9000 Rules, 
which are substantially similar to BX's Disciplinary Rules (to be 
relocated, respectively, under General 5, Sections 1 and 2). Those 
rules will now apply to BX members, associated persons, and other 
persons subject to the Exchange's jurisdiction. To the extent that 
there are differences between the two rule sets, the Exchange notes 
those differences in introductory paragraphs to each of BX's 
Disciplinary Rules (to be relocated, respectively, under General 5, 
Sections 1 and 2). As noted above, the proposed introductory paragraphs 
list instances in which cross references in Nasdaq Series 8000 and 9000 
Rules to other Nasdaq rules shall be read to refer instead to the 
Exchange Rules, and references to Nasdaq terms (whether or not defined) 
shall be read to refer to the Exchange-related meanings of those terms. 
Because Nasdaq Current Series 8000 and 9000 Rules are substantially 
similar to BX's Disciplinary Rules (General 5, Sections 1 and 2, 
respectively), and because the introductory paragraphs ensure that any 
differences are preserved, the proposed changes do not impose any 
burden on competition not necessary or appropriate in furtherance of 
the purposes of the Act.
    Finally, the Exchange believes that the proposed amendments do not 
impose an undue burden on competition because the amendments to 
relocate the Rules are non-substantive. This rule change is intended to 
bring greater clarity to the Exchange's 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 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 \27\ and Rule 19b-
4(f)(6) thereunder.\28\
---------------------------------------------------------------------------

    \27\ 15 U.S.C. 78s(b)(3)(A).
    \28\ 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.
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may

[[Page 33239]]

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-BX-2020-009 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-BX-2020-009. 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-BX-2020-009 and should be submitted on 
or before June 22, 2020.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\29\
---------------------------------------------------------------------------

    \29\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-11645 Filed 5-29-20; 8:45 am]
BILLING CODE 8011-01-P