67760 Federal Register / Vol. 83, No. 249 / Monday, December 31, 2018 / Notices 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f)(6). 

12 15 U.S.C. 78s(b)(3)(A). 

13 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. 

14 17 CFR 240.19b–4(f)(6). 

15 17 CFR 240.19b–4(f)(6)(iii). 

16See Securities Exchange Release No. 61061 

(November 24, 2009), 74 FR 62857 (December 1, 

2009) (SR–NYSEArca–2009–44). 

17For purposes only of waiving the operative 

delay for this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

18 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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 that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

Specifically, the Exchange believes 

that, by extending the expiration of the 

Pilot Program, the proposed rule change 

will allow for further analysis of the 

Pilot Program and a determination of 

how the Program should be structured 

in the future. In doing so, the proposed 

rule change will also serve to promote 

regulatory clarity and consistency, 

thereby reducing burdens on the 

marketplace and facilitating investor 

protection. In addition, the Exchange 

has been authorized to act jointly in 

extending the Pilot Program and 

believes the other exchanges will be 

filing similar extensions. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither solicited nor 

received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A) of the Act 10 and Rule 19b– 

4(f)(6) 11 thereunder. 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 after the date of 

the filing, or such shorter time as the 

Commission may designate, if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

effective pursuant to 19(b)(3)(A) of the 

Act 12 and Rule 19b–4(f)(6) 13

thereunder. 

A proposed rule change filed under 

Rule 19b–4(f)(6) 14 normally does not 

become operative prior to 30 days after 

the date of filing. However, pursuant to 

Rule 19b–4(f)(6)(iii),15 the Commission 

may 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 

the proposal may become operative 

immediately upon filing. The 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest because doing so will 

allow the Pilot Program to continue 

without interruption in a manner that is 

consistent with the Commission’s prior 

approval of the extension and expansion 

of the Pilot Program.16 Accordingly, the 

Commission designates the proposed 

rule change as operative upon filing 

with the Commission.17

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– 

CBOE–2018–076 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–CBOE–2018–076. 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 20549–1090 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–CBOE–2018–076 and 

should be submitted on or before 

January 22, 2019. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Brent J. Fields, 

Secretary. 

[FR Doc. 2018–28384 Filed 12–28–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84938; File No. SR–Phlx– 

2018–82] 

Self-Regulatory Organizations; Nasdaq 

PHLX 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 PHLX LLC (‘‘Phlx’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 


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Federal Register / Vol. 83, No. 249 / Monday, December 31, 2018 / Notices 67761 

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. 

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 required 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). 

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://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 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 PHLX General 8, and are 

thus Nasdaq PHLX Rules and thereby 

applicable to Nasdaq PHLX Members. 

Nasdaq PHLX 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 PHLX related meaning of such 

term. Solely by way of example, and not in 

limitation or in exhaustion: the defined term 

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

read to refer to the Nasdaq PHLX Exchange; 

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

Rules shall be read to refer to the Nasdaq 

PHLX 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 


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67762 Federal Register / Vol. 83, No. 249 / Monday, December 31, 2018 / Notices 

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

14 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. 

15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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: 

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–2018–82 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–2018–82. 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; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–Phlx– 

2018–82 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. 2018–28386 Filed 12–28–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84939; File No. SR–OCC– 

2018–015] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Notice 

of Filing of Proposed Rule Change 

Concerning Changes to The Options 

Clearing Corporation’s Management 

Structure 

December 21, 2018. 

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

Securities Exchange Act of 1934 

(‘‘Exchange Act’’ or ‘‘Act’’),1 and Rule 

19b–4 thereunder,2 notice is hereby 

given that on December 20, 2018, The 

Options Clearing Corporation (‘‘OCC’’) 

filed with the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘Commission’’) 

the proposed rule change as described 

in Items I, II and III below, which Items 

have been prepared by OCC. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

The proposed rule change by OCC 

would: (1) Reestablish the separation of 

the roles of Executive Chairman and 

Chief Executive Officer (‘‘CEO’’) and 

reallocate authority and responsibilities 

between the two roles; (2) remove the 

requirement from OCC’s By-Laws that 

the Board of Directors (‘‘Board’’) elect a 

Chief Administrative Officer (‘‘CAO’’) 

and delete the references to a CAO 

throughout OCC’s By-Laws, Rules, and 

charters; and (3) provide additional 

flexibility regarding the Management 

Director seat on the Board, including 

providing that such a director is not 

required. As described below, the 

proposed rule change amends multiple 

provisions of OCC’s By-Laws and Rules 

to effectuate the separation of the 

Executive Chairman and CEO roles and 

the elimination of the CAO as a required 

officer. The proposed rule change also 

amends OCC’s By-Laws to provide 

additional flexibility for the 

Management Director seat on the Board 


khammond on DSK30JT082PROD with NOTICES