67808 Federal Register / Vol. 83, No. 249 / Monday, December 31, 2018 / Notices 

68Rule 1, definition of ‘‘Sponsored Member 

Trade,’’ supra note 4. 

69 15 U.S.C. 78q–1(b)(3)(I). 

70 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

FICC believes that the proposed rule 

change to expand the Sponsored 

Member Trade definition could have an 

impact on competition by promoting 

competition. The proposed rule change 

to expand the Sponsored Member Trade 

definition could promote competition 

by increasing the number of potential 

counterparties a Sponsored Member 

could have in clearing. Under the 

current Rules, the Sponsoring Member 

must be the counterparty to all of its 

Sponsored Members’ FICC-cleared 

securities transactions.68 The proposed 

rule changes would provide that as long 

as a Sponsoring Member establishes a 

Sponsoring Member Omnibus Account 

to which securities transactions between 

its Sponsored Members and other 

Netting Members could be submitted, its 

Sponsored Members could transact in 

clearing with Netting Members other 

than itself, which could increase trading 

opportunities for Sponsored Members 

and Netting Members and thereby 

promote competition. 

FICC does not believe that the 

proposed rule changes to make the 

conforming and technical changes 

described above would have an impact 

on competition.69 These changes would 

simply provide specificity, clarity, and 

additional transparency within the 

Rules and not affect Members’ rights 

and obligations. As such, FICC believes 

that these proposed rule 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 

Written comments relating to the 

proposed rule change have not been 

solicited or received. FICC will notify 

the Commission of any written 

comments received by FICC. 

III. Date of Effectiveness of the 

Proposed Rule Change, and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the self-regulatory organization 

consents, the Commission will: 

(A) by order approve or disapprove 

such proposed rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

The proposal shall not take effect 

until all regulatory actions required 

with respect to the proposal are 

completed. 

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–2018–013 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–2018–013. 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– 

2018–013 and should be submitted on 

or before January 22, 2019. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.70

Brent J. Fields, 

Secretary. 

[FR Doc. 2018–28376 Filed 12–28–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84924; File No. SR– 

NASDAQ–2018–106] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Eliminate 

the Extended Life Priority Order 

Attribute 

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, The Nasdaq Stock Market LLC 

(‘‘Nasdaq’’ or ‘‘Exchange’’) 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 

The Exchange proposes to eliminate 

the Extended Life Priority Order 

Attribute, which has not been 

implemented to date. 

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 


khammond on DSK30JT082PROD with NOTICES
Federal Register / Vol. 83, No. 249 / Monday, December 31, 2018 / Notices 67809 

3See Securities Exchange Act Release No. 81097 

(July 7, 2017), 82 FR 32386 (July 13, 2017) (SR– 

NASDAQ–2016–161). 4See Securities Exchange Act Release No. 81855 

(October 11, 2017), 82 FR 48301 (October 17, 2017) 

(SR–NASDAQ–2017–103). 5The term ‘‘Order’’ means an instruction to trade 

a specified number of shares in a specified System 

Security submitted to the Nasdaq Market Center by 

a Participant. An ‘‘Order Type’’ is a standardized 

set of instructions associated with an Order that 

define how it will behave with respect to pricing, 

execution, and/or posting to the Nasdaq Book when 

submitted to Nasdaq. An ‘‘Order Attribute’’ is a 

further set of variable instructions that may be 

associated with an Order to further define how it 

will behave with respect to pricing, execution, and/ 

or posting to the Nasdaq Book when submitted to 

Nasdaq. The available Order Types and Order 

Attributes, and the Order Attributes that may be 

associated with particular Order Types, are 

described in Rules 4702 and 4703. One or more 

Order Attributes may be assigned to a single Order; 

provided, however, that if the use of multiple Order 

Attributes would provide contradictory instructions 

to an Order, the System will reject the Order or 

remove non-conforming Order Attributes. See Rule 

4701(e). 

6See Securities Exchange Act Release No. 82873 

(March 14, 2018), 83 FR 13008 (March 26, 2018) 

(File No. S7–05–18). 

7 15 U.S.C. 78f(b). 

8 15 U.S.C. 78f(b)(5). 

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 is proposing to 

eliminate the Extended Life Priority 

Order Attribute, which was approved by 

the Commission 3 but has not been 

implemented.4 The Extended Life 

Priority Order Attribute 5 would allow 

certain displayed retail Orders to 

receive higher priority on the Nasdaq 

Book than other Orders at the same 

price. To be eligible to enter Orders with 

Extended Life Priority, at least 99% of 

Designated Retail Orders with the 

Extended Life Priority Attribute entered 

by the Participant must exist unaltered 

on the Nasdaq Book for a minimum of 

one second. Thus, the Extended Life 

Priority Order Attribute would 

incentivize members to provide marketimproving behavior on the Exchange in 

the form of longer-lived displayed retail 

Orders. 

The Commission approved Extended 

Life Priority Order Attribute on July 7, 

2017. The Exchange anticipated a 

progressive rollout of the Extended Life 

Priority Order Attribute functionality, 

beginning with a small set of symbols 

and gradually expanding further. 

Specifically, the Exchange planned to 

implement the initial set of symbols 

eligible for the Extended Life Priority 

Order Attribute in the third quarter of 

2017, with the exact implementation 

date being reliant on several factors, 

such as the results of extensive testing 

and industry events and initiatives. In 

September 2017, the Exchange 

determined to delay implementation of 

the Extended Life Priority Order 

Attribute until the second half of 2018, 

noting that it had encountered 

unforeseen issues in developing the new 

Order Attribute. 

The Exchange notes that significant 

changes to market structure have been 

proposed since it first proposed the new 

Order Attribute, including the proposal 

of a Transaction Fee Pilot.6 The 

Exchange has concerns with potential 

impact to market quality with regards to 

these proposals, which have introduced 

uncertainty and potential risk to the 

Exchange in implementing the Extended 

Life Priority Order Attribute. For 

example, the Transaction Fee Pilot, if 

approved, would reduce the level of fees 

the Exchange may charge for 

transactions and, in turn, reduce the 

incentives that it can provide to 

liquidity providers. As noted above, the 

Extended Life Priority Order Attribute 

would allow certain Orders to receive 

higher priority on the Nasdaq Book than 

other Orders at the same price that, 

coupled with a reduction in incentive to 

liquidity providers, may reduce the 

liquidity available on the Exchange and 

consequently impact market quality. 

The Exchange believes it is prudent to 

eliminate the unimplemented Order 

Attribute at this time, pending clarity on 

the large market structure changes being 

proposed, including the Transaction Fee 

Pilot. The Exchange believes that, since 

it does not have an intent to implement 

the Order Attribute at this time, it is 

appropriate to remove it from the 

Exchange’s rules to avoid any confusion 

that may be caused by having an 

approved yet unimplemented rule. Once 

there is clarity on the proposed market 

structure changes, if the Exchange 

determines the Extended Life Priority 

Order Attribute would add value to the 

market and may be implemented 

without significant risk of decreased 

liquidity on the market, it will repropose the Order Attribute 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,7 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,8

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 

eliminating an Order Attribute that has 

been approved by the Commission but 

not yet implemented. The Exchange 

believes that it is in the public interest 

to avoid any confusion that may be 

caused by having an approved yet 

unimplemented rule that the Exchange 

does not plan to implement at this time. 

Moreover, the Exchange believes that 

implementation of the Extended Life 

Priority Order Attribute at this time may 

negatively affect market quality given 

the large market structure changes being 

proposed, as discussed above. 

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 elimination of the 

unimplemented Extended Life Priority 

Order Attribute is being done because 

implementation of the Order Attribute 

would potentially result in decreased 

liquidity on the Exchange. The 

Exchange has weighed the risk of 

implementing the Order Attribute at this 

time in light of current uncertainty 

surrounding the large market structure 

changes being proposed, including the 

significant risk of decreased liquidity 

that may be caused by the proposed 

Transaction Fee Pilot coupled with the 

possible negative impact on liquidity 

provider behavior caused by losing 

priority to Orders with the Extended 

Life Priority Order Attribute, and has 

determined that implementing the 

Order Attribute at this time may impact 

its market negatively. Accordingly, the 

Exchange is eliminating the Extended 

Life Priority Order Attribute to ensure 

that it remains competitive with other 

markets. 

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 


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67810 Federal Register / Vol. 83, No. 249 / Monday, December 31, 2018 / Notices 

9 15 U.S.C. 78s(b)(3)(A). 

10 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. 

11 17 CFR 240.19b–4(f)(6). 

12 17 CFR 240.19b–4(f)(6)(iii). 

13For purposes only of waiving the 30-day 

operative delay, the Commission also has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The amendment clarified Items 1(a) and 2(a) in 

the Form 19b–4 but did not change any other items 

in Form 19b–4, any exhibits to the filing, or the text 

of the proposed rule change. 

4Capitalized terms used but not defined herein 

have the meanings specified in the ICE Clear 

Europe Clearing Rules (the ‘‘Rules’’). 

19(b)(3)(A) of the Act 9 and Rule 19b– 

4(f)(6) thereunder.10

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act 11 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6)(iii) 12

permits the Commission to designate a 

shorter time if such action is consistent 

with the protection of investors and the 

public interest. The Exchange has asked 

the Commission to waive the 30-day 

operative delay so that it may avoid any 

investor confusion over the 

implementation of the Extended Life 

Priority Order Attribute. In particular, 

the Exchange previously indicated that 

the Extended Life Priority Order 

Attribute would be implemented in the 

second half of 2018 but has since 

determined not to implement the Order 

Attribute at this time. For this reason, 

the Commission believes that waiver of 

the 30-day operative delay is consistent 

with the protection of investors and the 

public interest. Therefore, the 

Commission hereby waives the 

operative delay and designates the 

proposal as operative upon filing.13

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 

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 rule-comments@

sec.gov. Please include File Number SR– 

NASDAQ–2018–106 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–2018–106. 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–2018–106 and 

should be submitted on or before 

January 22, 2019. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Brent J. Fields, 

Secretary. 

[FR Doc. 2018–28400 Filed 12–28–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84933; File No. SR–ICEEU– 

2018–024] 

Self-Regulatory Organizations; ICE 

Clear Europe Limited; Notice of Filing 

of Proposed Rule Change as Modified 

by Amendment No. 1 Relating to the 

ICE Clear Europe Model Risk 

Governance Framework (the ‘‘MRGF’’) 

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 

14, 2018, ICE Clear Europe Limited 

(‘‘ICE Clear Europe’’ or the ‘‘Clearing 

House’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

the proposed rule changes described in 

Items I, II and III below, which Items 

have been prepared by ICE Clear 

Europe. On December 21, 2018, ICE 

Clear Europe filed Amendment No.1 to 

the proposed rule change.3 The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change, as modified by Amendment 

No. 1, from interested persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

ICE Clear Europe proposes to adopt a 

Model Risk Governance Framework (the 

‘‘MRGF’’). The revisions do not involve 

any changes to the ICE Clear Europe 

Clearing Rules or Procedures.4

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

In its filing with the Commission, ICE 

Clear Europe 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. ICE 

Clear Europe has prepared summaries, 

set forth in sections (A), (B), and (C) 

below, of the most significant aspects of 

such statements. 


khammond on DSK30JT082PROD with NOTICES