Federal Register / Vol. 83, No. 240 / Friday, December 14, 2018 / Notices 64417 

20 Id. 

21 17 CFR 240.17Ad–22(e)(21). 

22 Id. 

23 15 U.S.C. 78s(b)(3)(A). 

24 17 CFR 240.19b–4(f). 

25 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

The proposed change to remove the 

account maintenance fee for trade 

assignment accounts from the Dealer 

Schedule would provide for the 

equitable allocation of fees among 

participants because removing this fee, 

which does not relate to a service 

provided by FICC, would improve the 

accuracy of the Dealer Schedule for all 

Clearing Members. FICC believes this 

proposed change is reasonable because, 

following implementation of the 

proposed change, the Dealer Schedule 

would only include fees that relate to 

existing services provided by FICC. 

Therefore, this proposed change is also 

consistent with Section 17A(b)(3)(D).20

Rule 17Ad–22(e)(21) under the Act 

requires, in part, that FICC establish, 

implement, maintain and enforce 

written policies and procedures 

reasonably designed to be efficient and 

effective in meeting the requirements of 

its participants and the markets it 

serves.21 The proposed change to 

eliminate the Surcharge would 

eliminate a fee that is no longer 

necessary to discourage batch 

submission of trades, for the reasons 

described above. The proposed change 

to eliminate the late payment for EPN 

bills would also eliminate a fee that is 

no longer necessary to discourage late 

payment of such bills, for the reasons 

described above. Finally, the proposed 

change to remove the account 

maintenance fee for trade assignment 

accounts from the Dealer Schedule 

would remove a fee from the Dealer 

Schedule that does not relate to a 

service offered by FICC. Each of these 

proposed changes would simplify and 

update the Rules, thereby improving the 

clarity of the Rules and enhancing their 

transparency to participants. By 

removing fees that are no longer 

necessary or do not relate to FICC’s 

services, and improving the clarity of 

the Rules, the proposed changes would 

allow FICC to more efficiently and 

effectively meet the requirements of its 

participants. Therefore, FICC believes 

this proposed rule change is also 

consistent with Rule 17Ad–22(e)(21).22

(B) Clearing Agency’s Statement on 

Burden on Competition 

FICC does not believe that the 

proposed rule changes would have any 

impact, or impose any burden, on 

competition. The proposed changes 

would eliminate fees that are no longer 

necessary, for the reasons described 

above, and would remove a fee from the 

Clearing Rules that does not relate to a 

service provided by FICC. Each of the 

proposed changes would apply equally 

to all participants such that no 

participants would be subject to the 

eliminated fees following the 

implementation of the proposed 

changes, and the Clearing Rules would 

no longer identify a fee that does not 

relate to an FICC service. Therefore, 

FICC does not believe these proposed 

changes would not have any impact on 

competition. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants, or Others 

FICC has not solicited or received any 

written comments relating to this 

proposal. FICC will notify the 

Commission of any written comments 

that it receives. 

III. Date of Effectiveness of the 

Proposed Rule Change, and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 23 and paragraph (f) of Rule 

19b–4 thereunder.24 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 rule-comments@

sec.gov. Please include File Number SR– 

FICC–2018–012 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549. 

All submissions should refer to File 

Number SR–FICC–2018–012. 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 FICC and on DTCC’s website 

(http://dtcc.com/legal/sec-rulefilings.aspx). 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–FICC– 

2018–012 and should be submitted on 

or before January 4, 2019. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.25

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2018–27079 Filed 12–13–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84765; File No. SR–Phlx– 

2018–79] 

Self-Regulatory Organizations; Nasdaq 

PHLX LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Update the Trading 

Floor Qualification Examination 

December 10, 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 

30, 2018, Nasdaq PHLX LLC (‘‘Phlx’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 


amozie on DSK3GDR082PROD with NOTICES1
64418 Federal Register / Vol. 83, No. 240 / Friday, December 14, 2018 / Notices 

3See Rules 620(a) and 901(c). See also Rule 1061 

applicable to Floor Brokers. 

4Securities Exchange Act Release No. 67508 [sic] 

(July 26 [sic], 2012), 77 FR 46141 (July 27, 2012 

[sic]) (SR–Phlx–2012–96). See also Securities 

Exchange Act Release No. 63603 (December 22, 

2010), 75 FR 82419 (December 30, 2010) (SR–Phlx– 

2010–180); Securities Exchange Act Release No. 

33304 (December 9, 1993), 58 FR 65613 (December 

15, 1993) (SR–Phlx–92–34). 

5 15 U.S.C. 78f(b). 

6 15 U.S.C. 78f(b)(5). 

7 15 U.S.C. 78f(c)(3)(B). 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(1). 

‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III, 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to revise its 

floor qualification examination. 

Specifically, the Exchange proposes to 

delete obsolete questions, change the 

format of certain questions from ‘‘true/ 

false’’ to multiple choice, add several 

new questions, and revise certain 

questions, as described further 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 purpose of the proposed rule 

change is to improve the Exchange’s 

program for qualification of members by 

updating its floor qualification 

examination. The Exchange has 

employed a written floor qualification 

examination, which is required for 

persons seeking to act as members on 

the trading floor, for many years.3 The 

examination was last amended in 2012.4

At this time, the Exchange proposes to 

update the examination in a variety of 

ways. The examination would continue 

to be comprised of 100 questions. Those 

questions would be randomly and 

electronically selected from a question 

bank of 188 questions, an increase of 16 

questions from the existing question 

bank. The floor qualification 

examination would continue to be 

administered by the Exchange’s 

membership department, and continue 

to require a passing score of 70 during 

a 75 minute testing period. 

The Exchange proposes to delete 11 

obsolete questions. Nine of the 

questions deleted test knowledge that is 

no longer applicable because of 

revisions to the PHLX rules. The other 

two questions deleted test knowledge no 

longer needed to trade on the Phlx floor. 

The Exchange also proposes to modify 

55 questions by changing the format of 

those questions from ‘‘true/false’’ to 

multiple choice. The subject matter 

covered by each of those questions will 

not change. The Exchange further 

proposes to add 27 new questions. 

Twenty of the new questions generally 

test knowledge of the new Floor Broker 

Management System (‘‘FBMS’’). The 

remaining seven questions were added 

to expand the bank from which 

questions are selected. Finally, the 

Exchange notes that certain questions 

were revised to correct grammatical 

errors and standardize the answer 

format. With these changes, the total 

number of questions available for 

random and electronic selection will 

increase from 172 to 188. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 5 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 6

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. In 

addition, the Exchange believes that the 

proposed rule change is consistent with 

Section 6(c)(3)(B) of the Act,7 which 

authorizes exchanges to prescribe 

standards of training, experience and 

competence for persons associated with 

exchange members, and gives exchanges 

the authority to bar a natural person 

from becoming a member or a person 

associated with a member, if the person 

does not meet the standards of training, 

experience and competence prescribed 

in the rules of the exchange. The 

Exchange believes that revising its floor 

member qualification examination as 

proposed in this filing, including by 

deleting obsolete questions, changing 

the format of 55 questions from ‘‘true/ 

false’’ to multiple choice, and adding 

questions, including those that relate to 

the new FMBS [sic], will better test the 

knowledge of prospective floor 

members, and thereby enhance the 

Exchange’s standards for training, 

experience and competence. In 

addition, the exchange is modifying the 

format of its ‘‘true/false’’ questions to 

multiple choice and making certain 

other changes, such as correcting 

grammatical errors and standardizing 

the answer format. 

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. 

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 

Pursuant to Section 19(b)(3)(A) of the 

Act 8 and Rule 19b–4(f)(1) 9 thereunder, 

the Exchange has designated this 

proposal as one that constitutes a stated 

policy, practice or interpretation with 

respect to the meaning, administration, 

or enforcement of an existing rule of the 

SRO, and therefore has become 

effective. 

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, 


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Federal Register / Vol. 83, No. 240 / Friday, December 14, 2018 / Notices 64419 

10 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange Act Release No. 83538 

(June 28, 2018), 83 FR 31210 (July 3, 2018) (SR– 

NYSEArca–2018–46). 

5See Securities Exchange Act Release No. 71176 

(December 23, 2013), 78 FR 79524 (December 30, 

2013) (SR–NYSEArca–2013–107) (‘‘RLP Approval 

Order’’). 

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 rule-comments@

sec.gov. Please include File Number SR– 

Phlx–2018–79 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–2018–79. 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–2018–79 and should 

be submitted on or before January 4, 

2019. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2018–27075 Filed 12–13–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84773; File No. SR– 

NYSEARCA–2018–89] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Extend the Pilot 

Period for the Exchange’s Retail 

Liquidity Program Until June 30, 2019 

December 10, 2018. 

Pursuant to Section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on 

November 30, 2018, NYSE Arca, Inc. 

(‘‘Exchange’’ or ‘‘NYSE Arca’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the selfregulatory organization. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to extend the 

pilot period for the Exchange’s Retail 

Liquidity Program (the ‘‘Retail Liquidity 

Program’’ or the ‘‘Program’’), which is 

currently scheduled to expire on 

December 31, 2018, until June 30, 2019. 

The proposed rule change is available 

on the Exchange’s website at 

www.nyse.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 

self-regulatory organization 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 those 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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to extend the 

pilot period for the Retail Liquidity 

Program, currently scheduled to expire 

on December 31, 2018,4 until June 30, 

2019. 

Background 

In July 2012, the Commission 

approved the Retail Liquidity Program 

on a pilot basis.5 The Program is 

designed to attract retail order flow to 

the Exchange, and allows such order 

flow to receive potential price 

improvement. The Program is currently 

limited to trades occurring at prices 

equal to or greater than $1.00 per share. 

Under the Program, Retail Liquidity 

Providers (‘‘RLPs’’) are able to provide 

potential price improvement in the form 

of a non-displayed order that is priced 

better than the Exchange’s best 

protected bid or offer (‘‘PBBO’’), called 

a Retail Price Improvement Order 

(‘‘RPI’’). When there is an RPI in a 

particular security, the Exchange 

disseminates an indicator, known as the 

Retail Liquidity Identifier, indicating 

that such interest exists. Retail Member 

Organizations (‘‘RMOs’’) can submit a 

Retail Order to the Exchange, which 

would interact, to the extent possible, 

with available contra-side RPIs. 

The Retail Liquidity Program was 

approved by the Commission on a pilot 

basis. Pursuant to NYSE Arca Rule 

7.44–E(m), the pilot period for the 

Program is scheduled to end on 

December 31, 2018. 

Proposal To Extend the Operation of the 

Program 

The Exchange established the Retail 

Liquidity Program in an attempt to 

attract retail order flow to the Exchange 

by potentially providing price 

improvement to such order flow. The 

Exchange believes that the Program 

promotes competition for retail order 

flow by allowing Exchange members to 

submit RPIs to interact with Retail 

Orders. Such competition has the ability 

to promote efficiency by facilitating the 

price discovery process and generating 

additional investor interest in trading 

securities, thereby promoting capital 

formation. The Exchange believes that 


amozie on DSK3GDR082PROD with NOTICES1