Federal Register / Vol. 83, No. 246 / Wednesday, December 26, 2018 / Notices 66325 

1 17 CFR 242.612(c). 

2See Securities Exchange Act Release No. 73702, 

79 FR 72049 (December 4, 2014) (SR–BX–2014–048) 

(‘‘RPI Approval Order’’). 

3See id. 

4See Securities Exchange Act Release No. 76490 

(November 20, 2015), 80 FR 74165 (November 27, 

2015) (SR–BX–2015–073). 

5See Securities Exchange Act Release No. 79446 

(December 1, 2016), 81 FR 88290 (December 7, 

2016) (SR–BX–2016–065). 

6See Securities Exchange Act Release No. 82192 

(December 1, 2017), 82 FR 57809 (December 7, 

2017) (SR–BX–2017–055). 

7See Securities Exchange Act Release No. 83539 

(June 28, 2018), 83 FR 31203 (July 3, 2018) (SR–BX– 

2018–026). 

8See Letter from Jeffrey S. Davis, Vice President 

and Deputy General Counsel and Secretary, Nasdaq 

BX, Inc. to Eduardo A. Aleman, Assistant Secretary, 

Securities and Exchange Commission, dated 

December 11, 2018 (‘‘BX Letter’’). 

9See SR–BX–2018–063. 

10See, e.g., BX Letter at 3; RPI Approval Order, 

supra note 2. 

11See, id. 

representative is unable to contact the 

applicant in person or by telephone, for 

example, the applicant lives in another 

country, a manual version of Form AA– 

3 is used. One response is requested of 

each respondent. Completion of the 

form is required to obtain a benefit. 

The RRB proposes no changes to the 

forms in the information collection. 

ESTIMATE OF ANNUAL RESPONDENT BURDEN

Form No. Annual 

responses 

Time 

(minutes) 

Burden 

(hours) 

Form AA–3cert (Ink Signature) .................................................................................................... 6,400 30 3,200 

Form AA–3sum (Attestation) ....................................................................................................... 4,600 29 2,223 

Total ...................................................................................................................................... 11,000 ........................ 5,423 

Additional Information or Comments: 

To request more information or to 

obtain a copy of the information 

collection justification, forms, and/or 

supporting material, contact Brian 

Foster at (312) 751–4826. Comments 

regarding the information collection 

should be addressed to Brian Foster, 

Railroad Retirement Board, 844 North 

Rush Street, Chicago, Illinois 60611– 

1275 or emailed to Brian.Foster@rrb.gov. 

Written comments should be received 

within 60 days of this notice. 

Brian D. Foster, 

Records Officer. 

[FR Doc. 2018–27914 Filed 12–21–18; 8:45 am] 

BILLING CODE 7905–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84846; File No. SR–BX– 

2014–048] 

Self-Regulatory Organizations; Nasdaq 

BX, Inc.; Order Granting an Extension 

to Limited Exemptions From Rule 

612(c) of Regulation NMS In 

Connection With the Exchange’s Retail 

Price Improvement Program Until June 

30, 2019 

December 18, 2018. 

On November 28, 2014, the Securities 

and Exchange Commission 

(‘‘Commission’’) issued an order 

pursuant to its authority under Rule 

612(c) of Regulation NMS (‘‘Sub-Penny 

Rule’’) 1 that granted The NASDAQ 

OMX BX, Inc., n/k/a Nasdaq BX, Inc. 

(‘‘BX’’ or ‘‘Exchange’’), a limited 

exemption from the Sub-Penny Rule in 

connection with the operation of the 

Exchange’s Retail Price Improvement 

Program (the ‘‘RPI Program’’).2 The 

limited exemption was granted 

concurrently with the Commission’s 

approval of the Exchange’s proposal to 

adopt its RPI Program for a one-year 

pilot term.3 On November 20, 2015, the 

Commission extended the temporary 

exemption until December 2016 

concurrently with an immediately 

effective filing that extended the 

operation of the RPI Program until 

December 1, 2016.4 On December 1, 

2016, the Commission extended the 

temporary exemption until December 1, 

2017 concurrently with an immediately 

effective filing that extended the 

operation of the RPI Program until 

December 1, 2017.5 On December 1, 

2017, the Commission extended the 

temporary exemption until June 30, 

2018 concurrently with an immediately 

effective filing that extended the 

operation of the RPI Program until June 

30, 2018.6 On June 28, 2018, the 

Commission again extended the 

temporary exemption until December 

31, 2018 concurrently with an 

immediately effective filing that 

extended the operation of the RPI 

Program until December 31, 2018.7

The Exchange now seeks to extend 

the exemption until June 30, 2019.8 The 

Exchange’s request was made in 

conjunction with an immediately 

effective filing that extends the 

operation of the RPI Program through 

the same date.9 In its request to extend 

the exemption, the Exchange notes that 

given the gradual implementation of the 

RPI Program and the preliminary 

participation and results, extending the 

exemption would provide additional 

opportunities for greater participation 

and assessment of the results.10

Accordingly, the Exchange has asked 

additional time to allow it and the 

Commission to analyze data concerning 

the RPI Program, which the Exchange 

committed to provide to the 

Commission.11 For this reason and the 

reasons stated in the RPI Approval 

Order originally granting the limited 

exemption, the Commission, pursuant 

to its authority under Rule 612(c) of 

Regulation NMS, finds that pursuant to 

its authority under Rule 612(c) of 

Regulation NMS, extending the 

exemption is appropriate in the public 

interest and consistent with the 

protection of investors. 

Therefore, it is hereby ordered that, 

pursuant to Rule 612(c) of Regulation 

NMS, the Exchange is granted a limited 

exemption from Rule 612 of Regulation 

NMS that allows the Exchange to accept 

and rank orders priced equal to or 

greater than $1.00 per share in 

increments of $0.001, in connection 

with the operation of its RPI Program, 

until June 30, 2019. 

The limited and temporary exemption 

extended by this Order is subject to 

modification or revocation if at any time 

the Commission determines that such 

action is necessary or appropriate in 

furtherance of the purposes of the 

Securities Exchange Act of 1934. 

Responsibility for compliance with any 

applicable provisions of the Federal 

securities laws must rest with the 

persons relying on the exemptions that 

are the subject of this Order. 


amozie on DSK3GDR082PROD with NOTICES1
66326 Federal Register / Vol. 83, No. 246 / Wednesday, December 26, 2018 / Notices 

12 17 CFR 200.30–3(a)(83). 

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

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 73702 

(November 28, 2014), 79 FR 72049 (December 4, 

2014) (‘‘RPI Approval Order’’) (SR–BX–2014–048). 

4See id. 

5A ‘‘Retail Order’’ is defined in BX Rule 

4780(a)(2) by referencing BX Rule 4702, and BX 

Rule 4702(b)(6) says it is an order type with a nondisplay order attribute submitted to the Exchange 

by a RMO. A Retail Order must be an agency order, 

or riskless principal order that satisfies the criteria 

of FINRA Rule 5320.03. The Retail Order must 

reflect trading interest of a natural person with no 

change made to the terms of the underlying order 

of the natural person with respect to price (except 

in the case of a market order that is changed to a 

marketable limit order) or side of market and that 

does not originate from a trading algorithm or any 

other computerized methodology. 

6The term Protected Quotation is defined in 

Chapter XII, Sec. 1(19) and has the same meaning 

as is set forth in Regulation NMS Rule 600(b)(58). 

The Protected NBBO is the best-priced protected 

bid and offer. Generally, the Protected NBBO and 

the national best bid and offer (‘‘NBBO’’) will be the 

same. However, a market center is not required to 

route to the NBBO if that market center is subject 

to an exception under Regulation NMS Rule 

611(b)(1) or if such NBBO is otherwise not available 

for an automatic execution. In such case, the 

Protected NBBO would be the best-priced protected 

bid or offer to which a market center must route 

interest pursuant to Regulation NMS Rule 611. 

7See RPI Approval Order, supra note 3 at 72053. 

8 Id. at 72049. 

9See Securities Exchange Act Release No. 76490 

(November 20, 2015), 80 FR 74165 (November 27, 

2015) (SR–BX–2015–073); Securities Exchange Act 

Release No. 79446 (December 1, 2016), 81 FR 88279 

(December 7, 2016) (SR–BX–2016–065); Securities 

Exchange Act Release No. 82192 (December 1, 

2017), 82 FR 57809 (December 7, 2017) (SR–BX– 

2017–055); and Securities Exchange Act Release 

No. 83539 (June 28, 2018), 83 FR 31203 (July 3, 

2018) (SR–BX–2018–026). 

10A Retail Price Improvement Order is defined in 

BX Rule 4780(a)(3) by referencing BX Rule 4702 

and BX Rule 4702(b)(5) says that it is as an order 

type with a non-display order attribute that is held 

on the Exchange Book in order to provide liquidity 

at a price at least $0.001 better than the NBBO 

through a special execution process described in 

Rule 4780. 

11See RPI Approval Order, supra note 3 at 72051. 

12Concurrently with this filing, the Exchange has 

submitted a request for an extension of the 

exemption under Regulation NMS Rule 612 

previously granted by the Commission that permits 

it to accept and rank the RPI orders in sub-penny 

increments. See Letter from Jeffrey S. Davis, Vice 

President and Deputy General Counsel and 

Secretary, Nasdaq BX, Inc. to Eduardo A. Aleman, 

Assistant Secretary, Securities and Exchange 

Commission dated December 11, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2018–27821 Filed 12–21–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84847; File No. SR–BX– 

2018–063] 

Self-Regulatory Organizations; Nasdaq 

BX, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Extend the Pilot 

Period for the Exchange’s Retail Price 

Improvement Program Until June 30, 

2019 

December 18, 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 December 

11, 2018, 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. 

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 

Price Improvement (‘‘RPI’’) Program (the 

‘‘Program’’), which is set to expire on 

December 31, 2018, for an additional 

period to expire on June 30, 2019. 

The Exchange has designated 

December 11, 2018 as the date the 

proposed rule change becomes effective. 

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 

The purpose of this filing is to extend 

the pilot period of the RPI Program,3

currently scheduled to expire on 

December 31, 2018, for an additional 

period to expire on June 30, 2019. 

Background 

In November 2014, the Commission 

approved the RPI Program on a pilot 

basis.4 The Program is designed to 

attract retail order flow to the Exchange, 

and allow 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, a new class of market 

participant called a Retail Member 

Organization (‘‘RMO’’) is eligible to 

submit certain retail order flow (‘‘Retail 

Orders’’) 5 to the Exchange. BX members 

(‘‘Members’’) are permitted to provide 

potential price improvement for Retail 

Orders in the form of non-displayed 

interest that is priced more aggressively 

than the Protected National Best Bid or 

Offer (‘‘Protected NBBO’’).6

The Program was approved by the 

Commission on a pilot basis running 

one-year from the date of 

implementation.7 The Commission 

approved the Program on November 28, 

2014.8 The Exchange implemented the 

Program on December 1, 2014 and the 

pilot has since been extended for a one 

year period twice and for an additional 

six month period twice, with it now 

scheduled to end on December 31, 

2018.9

Proposal To Extend the Operation of the 

Program 

The Exchange established the RPI 

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 Retail Price Improvement Orders 

(‘‘RPI Orders’’) 10 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 

extending the pilot is appropriate 

because it will allow the Exchange and 

the Commission additional time to 

analyze data regarding the Program that 

the Exchange has committed to 

provide.11 As such, the Exchange 

believes that it is appropriate to extend 

the current operation of the Program.12

Through this filing, the Exchange seeks 

to amend BX Rule 4780(h) and extend 

the current pilot period of the Program 


amozie on DSK3GDR082PROD with NOTICES1