67792 Federal Register / Vol. 83, No. 249 / Monday, December 31, 2018 / Notices 

45 15 U.S.C. 78s(b)(3)(A). 

46 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. 

47 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Recently, the six exchanges affiliated with 

Nasdaq, Inc. (The Nasdaq Stock Market LLC, 

Nasdaq BX, Inc., Nasdaq PHLX LLC, Nasdaq ISE, 

LLC, Nasdaq GEMX, LLC, and Nasdaq MRX, LLC 

(collectively, the ‘‘Affiliated Exchanges’’)) added 

shell structures to their respective rulebooks with 

the purpose of improving efficiency and readability 

and to align their respective rules. 

burden on competition; and (iii) become 

operative for 30 days after the date of 

the filing, or such shorter time as the 

Commission may designate, it has 

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

of the Act 45 and Rule 19b–4(f)(6) 46

thereunder. 

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: 

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– 

CboeEDGX–2018–060 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–CboeEDGX–2018–060. 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–CboeEDGX–2018–060 and 

should be submitted on or before 

January 22, 2019. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.47

Brent J. Fields, 

Secretary. 

[FR Doc. 2018–28395 Filed 12–28–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84934; File No. SR–GEMX– 

2018–43] 

Self-Regulatory Organizations; Nasdaq 

GEMX, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend General 8 

December 21, 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 

19, 2018, Nasdaq GEMX, LLC (‘‘GEMX’’ 

or ‘‘Exchange’’) 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 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 delete the 

Exchange’s existing rules on colocation, 

connectivity, and direct connectivity 

(the ‘‘Existing Connectivity Rules’’), 

under General 8, and incorporate by 

reference into General 8 The Nasdaq 

Stock Market LLC’s (‘‘Nasdaq’s’’) rules 

on colocation, connectivity, and direct 

connectivity, which are located in 

General 8 of the Nasdaq rulebook shell 

structure.3

The text of the proposed rule change 

is available on the Exchange’s website at 

http://nasdaqgemx.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 delete its 

Existing Connectivity Rules, currently 

under General 8, and incorporate by 

reference the corresponding Nasdaq 

rules, at General 8 of Nasdaq’s rulebook. 

The Exchange proposes to remove the 

current rule text from General 8 and 

replace it with the following text: 

General 8 Connectivity 

The rules contained in The Nasdaq Stock 

Market LLC General 8, as such rules may be 

in effect from time to time (the ‘‘General 8 

Rules’’), are hereby incorporated by reference 

into this Nasdaq GEMX General 8, and are 

thus Nasdaq GEMX Rules and thereby 

applicable to Nasdaq GEMX Members. 

Nasdaq GEMX Members shall comply with 

the General 8 Rules as though such rules 

were fully set forth herein. All defined terms, 

including any variations thereof, contained 

in the General 8 Rules shall be read to refer 

to the Nasdaq GEMX related meaning of such 

term. Solely by way of example, and not in 

limitation or in exhaustion: the defined term 


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4The Exchange shall include a hyperlink to 

Nasdaq’s General 8 for ease of reference. 

5The offering of products and services on a 

shared basis means that a customer purchases 

colocation, connectivity, and direct connectivity 

products and services once to gain access to any or 

all of the Affiliated Exchanges to which the 

customer is otherwise entitled to receive access 

under the respective rules of the Affiliated 

Exchanges. In other words, the Affiliated Exchanges 

only charge customers once for these shared 

products and services, even to the extent that a 

customer uses the products and services to connect 

to more than one of the Affiliated Exchanges. 

Likewise, the rules provide for connectivity to 

third-party services and market data feeds on a 

shared basis, meaning that a firm need only 

purchase a subscription to these services once, 

regardless of whether the firm is a member or 

member organization, as applicable, of multiple 

Affiliated Exchanges. 

6A small number of minor differences exist 

among the Section 8s of the Affiliated Exchanges. 

However, these differences, such as the use of the 

word ‘‘the’’ before the phrase ‘‘Nasdaq Data Center’’ 

in one version of the Rulebook and not in the 

others, are technical and do result in substantive 

variations in the meanings of the Rulebooks. 

7 15 U.S.C. 78mm. 

8See 17 CFR 240.0–12; Exchange Act Release No. 

39624 (February 5, 1998), 63 FR 8101 (February 18, 

1998). 

9The General 8 Rules are categories of rules that 

are not trading rules. See 17 CFR 200.30–3(a)(76) 

(contemplating such requests). In addition, several 

other SROs incorporate by reference certain 

regulatory rules of another SRO and have received 

from the Commission similar exemptions from 

Section 19(b) of the Exchange Act. See e.g., 

Securities Exchange Act Release Nos. 57478 (March 

12, 2008), 73 FR 14521 (March 18, 2008), 53128 

(January 13, 2006), 71 FR 3550 (January 23, 2006); 

49260 (February 17, 2004), 69 FR 8500 (February 

24, 2004). 

10The Exchange will provide such notice via a 

posting on the same website location where it posts 

its own rule filings pursuant to Rule 19b–4 within 

the timeframe require by such Rule. The website 

posting will include a link to the location on the 

Nasdaq website where the applicable proposed rule 

change is posted. 

11 15 U.S.C. 78f(b). 

12 15 U.S.C. 78f(b)(5). 

13 15 U.S.C. 78s(b)(3)(A)(iii). 

14 17 CFR 240.19b–4(f)(6). In addition, Rule 19b4(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. 

‘‘Exchange’’ in the General 8 Rules shall be 

read to refer to the Nasdaq GEMX Exchange; 

the defined term ‘‘Rule’’ in the General 8 

Rules shall be read to refer to the Nasdaq 

GEMX Rule.4

Over the past year, the Affiliated 

Exchanges each took steps to harmonize 

their respective rules on colocation, 

connectivity, and direct connectivity, 

first by relocating them to General 8 of 

their respective rulebooks, and then by 

eliminating substantive differences 

among the rules. The Affiliated 

Exchanges harmonized these rules 

because the Affiliated Exchanges offer 

colocation, connectivity, and direct 

connectivity services and related 

products to their customers on a shared 

basis with one another,5 and to do so, 

the rules and fees governing such shared 

products and services should be the 

same for all of the Affiliated Exchanges. 

Because the text of the Exchange’s 

General 8 is already substantively 

identical 6 to Nasdaq’s General 8, the 

proposal will not effect any substantive 

changes to the Exchange’s General 8. 

Instead, the proposal will merely adopt 

language indicating that the Exchange is 

incorporating by reference Nasdaq’s 

General 8 and it will make conforming 

cross-reference changes. 

This proposal is the penultimate step 

in the harmonization process. The 

Exchange plans to file with the 

Commission a request to exempt it from 

Section 19(b) of the Act with respect to 

General 8, as amended herein, so that 

the Exchange will not need to file a 

proposed rule change whenever Nasdaq 

amends its General 8 rules. The 

Exchange proposes that this rule change 

become operative at such time as it 

receives approval for this exemption 

from the Commission, pursuant to its 

authority under Section 36 of the Act 7

and Rule 0–12 thereunder.8

The Exchange’s General 8 and 

Nasdaq’s General 8 are regulatory in 

nature.9 Should any rules which impact 

trading behavior be added to Nasdaq 

General 8 in the future, those rules shall 

not become subject to the incorporation 

by reference and shall be placed 

elsewhere within the Exchange’s 

Rulebook. The Exchange notes that as a 

condition of any exemption approved 

by the Commission, the Exchange agrees 

to provide written notice to its members 

whenever Nasdaq proposes a change to 

its General 8 Rules.10 Such notice will 

alert Exchange members to the proposed 

Nasdaq rule change and give them an 

opportunity to comment on the 

proposal. The Exchange will similarly 

inform its members in writing when the 

Commission approves any such 

proposed change. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,11 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,12

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 Exchange believes that 

harmonizing the Existing Connectivity 

Rules with the colocation, connectivity, 

and direct connectivity rules of Nasdaq 

will improve efficiency and reduce the 

burden on firms as they only will need 

to be familiar with a single set of rules 

going forward governing colocation, 

connectivity, and direct connectivity. 

Because the text of the Existing 

Connectivity Rules and Nasdaq General 

8 are already the same, the proposed 

change will have no substantive impact 

on firms that colocate with or connect 

to the Exchange. 

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 rule change does not make 

any substantive change to Exchange 

General 8 and will not impact 

competition. 

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 13 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.14

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: 


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67794 Federal Register / Vol. 83, No. 249 / Monday, December 31, 2018 / Notices 

15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The term ‘‘User’’ means any Options Member or 

Sponsored Participant who is authorized to obtain 

access to the Exchange’s System (as defined below) 

pursuant to Rule 11.3. See current Rule 16.1(a)(63) 

(proposed subparagraph (64)). 

4See Securities Exchange Act Release Nos. 82052 

(November 9, 2017), 82 FR 53547 (November 16, 

2017) (SR–BatsBZX–2017–76) (modifying fees for 

physical ports on an immediately effective basis); 

and 61650 (March 4, 2010), 75 FR 11951 (March 12, 

2010) (SR–BATS–2010–005) (adopting initial fees 

for BZX Options, including description of logical 

and physical ports). 

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– 

GEMX–2018–43 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–GEMX–2018–43. 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–GEMX–2018–43 and 

should be submitted on or before 

January 22, 2019. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Brent J. Fields, 

Secretary. 

[FR Doc. 2018–28390 Filed 12–28–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84928; File No. SR– 

CboeBZX–2018–092] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change Relating To 

Adopt Definitions of Ports and 

Discontinue Bulk Order Functionality 

and Implement Bulk Message 

Functionality 

December 21, 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 

18, 2018, Cboe BZX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BZX’’) filed with the 

Securities and Exchange Commission 

(‘‘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 

Cboe BZX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BZX Options’’) 

proposes to adopt definitions of ports 

and discontinue bulk order 

functionality and implement bulk 

message functionality. The text of the 

proposed rule change is provided in 

Exhibit 5. 

The text of the proposed rule change 

is also available on the Exchange’s 

website (http://www.cboe.com/ 

AboutCBOE/CBOELegal

RegulatoryHome.aspx), at the 

Exchange’s Office of the Secretary, 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 

In 2016, the Exchange’s parent 

company, Cboe Global Markets, Inc. 

(‘‘Cboe Global’’), which is the parent 

company of Cboe Exchange, Inc. (‘‘Cboe 

Options’’) and Cboe C2 Exchange, Inc. 

(‘‘C2’’), acquired the Exchange, Cboe 

EDGA Exchange, Inc. (‘‘EDGA’’), Cboe 

EDGX Exchange, Inc. (‘‘EDGX or EDGX 

Options’’), and Cboe BYX Exchange, 

Inc. (‘‘BYX’’ and, together with C2, Cboe 

Options, the Exchange, EDGA, and 

EDGX, the ‘‘Cboe Affiliated 

Exchanges’’). The Cboe Affiliated 

Exchanges are working to align certain 

system functionality, retaining only 

intended differences between the Cboe 

Affiliated Exchanges, in the context of a 

technology migration. Cboe Options 

intends to migrate its technology to the 

same trading platform used by the 

Exchange, C2, and EDGX Options in the 

fourth quarter of 2019. The proposals set 

forth below are intended to add certain 

functionality to the Exchange’s System 

that is more similar to functionality 

offered by Cboe Options in order to 

ultimately provide a consistent 

technology offering for market 

participants who interact with the Cboe 

Affiliated Exchanges, as well as codify 

certain functionality. Although the 

Exchange intentionally offers certain 

features that differ from those offered by 

its affiliates and will continue to do so, 

the Exchange believes that offering 

similar functionality to the extent 

practicable will reduce potential 

confusion for Users. 

Port Definitions 

The Exchange currently provides 

access to BZX Options to Users 3

through various ports. These ports have 

been previously described in multiple 

filings submitted by the Exchange 4 and 

are referenced on the Exchange’s fee 

schedule. However, the Exchange has 

not previously maintained any language 

in its Rules related to such ports. The 

Exchange proposes to add language to 

Rule 21.1(l) to provide additional clarity 


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