870 Federal Register / Vol. 84, No. 21 / Thursday, January 31, 2019 / Notices 

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

11 17 CFR 240.19b–4(f)(2). 12 15 U.S.C. 78s(b)(2)(B). 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 83681 

(July 20, 2018), 83 FR 35516. 

4See Securities Exchange Act Release No. 84013, 

83 FR 45479 (September 7, 2018). The Commission 

designated October 24, 2018, as the date by which 

the Commission shall approve or disapprove, or 

institute proceedings to determine whether to 

disapprove, the proposed rule change. 

proposed changes to the FB Prepayment 

Program may increase both inter-market 

and intra-market competition by 

incenting participants to direct their 

orders to the Exchange, which would 

enhance the quality of quoting and may 

increase the volume of contracts traded 

on the Exchange. To the extent that 

there is an additional competitive 

burden on non-Exchange participants, 

the Exchange believes that this is 

appropriate because the proposal should 

incent market participants to direct 

additional order flow to the Exchange, 

and thus provide additional liquidity 

that enhances the quality of its markets 

and increases the volume of contracts 

traded here. To the extent that this 

purpose is achieved, all of the 

Exchange’s market participants should 

benefit from the improved market 

liquidity. Enhanced market quality and 

increased transaction volume that 

results from the anticipated increase in 

order flow directed to the Exchange 

would benefit all market participants 

and improve competition on the 

Exchange. 

Given the robust competition for 

volume among options markets, many of 

which offer the same products, 

implementing programs to attract order 

flow, such as the proposed changes to 

the FB Prepayment Program, are 

consistent with the above-mentioned 

goals of the Act. 

The Exchange notes that it operates in 

a highly competitive market in which 

market participants can readily favor 

competing venues. In such an 

environment, the Exchange must 

continually review, and consider 

adjusting, its fees and credits to remain 

competitive with other exchanges. For 

the reasons described above, the 

Exchange believes that the proposed 

rule change reflects this competitive 

environment. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change is effective 

upon filing pursuant to Section 

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

subparagraph (f)(2) of Rule 19b–4 11

thereunder, because it establishes a due, 

fee, or other charge imposed by the 

Exchange. 

At any time within 60 days of the 

filing of such 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 

under Section 19(b)(2)(B) 12 of the Act 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– 

NYSEAMER–2018–56 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–NYSEAMER–2018–56. 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 such 

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–NYSEAMER–2018–56, and 

should be submitted on or before 

February 21, 2019. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2019–00480 Filed 1–30–19; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84974; File No. BX–2018– 

025] 

Self-Regulatory Organizations; Nasdaq 

BX, Inc.; Notice of Designation of 

Longer Period for Commission Action 

on Proposed Rule Change To Make 

Permanent the Exchange’s Retail Price 

Improvement Program 

December 26, 2018. 

On July 9, 2018, Nasdaq BX, Inc. 

(‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

make permanent the Exchange’s Retail 

Price Improvement Program. The 

proposed rule change was published for 

comment in the Federal Register on July 

26, 2018.3 On August 31, 2018, the 

Commission designated a longer period 

within which to approve the proposed 

rule change, disapprove the proposed 

rule change, or institute proceedings to 

determine whether to disapprove the 

proposed rule change.4 On October 23, 

2018, the Commission instituted 

proceedings under Section 19(b)(2)(B) of 


amozie on DSK3GDR082PROD with NOTICES1
Federal Register / Vol. 84, No. 21 / Thursday, January 31, 2019 / Notices 871 

5 15 U.S.C. 78(s)(b)(2)(B). 

6See Securities Exchange Act Release No. 84472, 

83 FR 54411 (October 29, 2018). 

7 15 U.S.C. 78s(b)(2). 

8See supra note 3. 

9The Commission notes that on December 11, 

2018, the Exchange filed a proposed rule change to 

extend the pilot period to June 30, 2019. See 

Securities Exchange Act Release No. 84847, 83 FR 

66326 (December 26, 2018) (SR–BX–2018–063). 

10 15 U.S.C. 78s(b)(2). 

11 17 CFR 200.30–3(a)(31). 

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

2 17 CFR 240.19b–4. 

3References herein to Chapter and Series refer to 

rules of the BX Options Market (‘‘BX Options’’), 

unless otherwise noted. 

4The options exchanges in the U.S. that have 

pilot programs similar to the Penny Pilot (together 

‘‘pilot programs’’) are currently working on a 

proposal for permanent approval of the respective 

pilot programs. 

5See Securities Exchange Act Release No. 83526 

(June 26, 2018), 83 FR 30993 (July 2, 2018) (SR–BX– 

2018–027). 

6The replacement issues will be announced to 

the Exchange’s membership via an Options Trader 

Alert (OTA) posted on the Exchange’s website. 

Penny Pilot replacement issues will be selected 

based on trading activity in the previous six 

months, as is the case today. The replacement 

issues would be identified based on The Options 

Clearing Corporation’s trading volume data. For 

example, for the January replacement, trading 

volume from June 1, 2018 through November 30, 

2018 would be analyzed. The month immediately 

preceding the replacement issues’ addition to the 

Pilot (i.e., December) would not be used for 

purposes of the six-month analysis. 

the Act 5 to determine whether to 

approve or disapprove the proposed 

rule change.6 The Commission has 

received no comments on the proposal. 

Section 19(b)(2) of the Act 7 provides 

that, after initiating proceedings, the 

Commission shall issue an order 

approving or disapproving the proposed 

rule change not later than 180 days after 

the date of publication of notice of filing 

of the proposed rule change. The 

Commission may, however, extend the 

period for issuing an order approving or 

disapproving the proposed rule change 

by not more than 60 days if the 

Commission determines that a longer 

period is appropriate and publishes the 

reasons for such determination. The 

proposed rule change was published for 

notice and comment in the Federal 

Register on July 26, 2018.8 January 22, 

2019 is 180 days from that date, and 

March 23, 2019 is 240 days from that 

date. The Commission finds it 

appropriate to designate a longer period 

within which to issue an order 

approving or disapproving the proposed 

rule change so that it has sufficient time 

to consider the proposed rule change.9

Accordingly, the Commission, 

pursuant to Section 19(b)(2) of the 

Act,10 designates March 23, 2019, as the 

date by which the Commission shall 

approve or disapprove the proposed 

rule change (File No. SR–BX–2018– 

025). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2019–00479 Filed 1–30–19; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84952; File No. SR–BX– 

2018–067] 

Self-Regulatory Organizations; Nasdaq 

BX, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Chapter VI, 

Section 5 

December 26, 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 

21, 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 amend 

Chapter VI, Section 5 (Minimum 

Increments),3 to extend through June 30, 

2019 or the date of permanent approval, 

if earlier, the Penny Pilot Program in 

options classes in certain issues (‘‘Penny 

Pilot’’ or ‘‘Pilot’’), and to change the 

date when delisted classes may be 

replaced in the Penny Pilot. 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 amend 

Chapter VI, Section 5, to extend the 

Penny Pilot through June 30, 2019 or the 

date of permanent approval, if earlier,4

and to change the date when delisted 

classes may be replaced in the Penny 

Pilot. The Exchange believes that 

extending the Penny Pilot will allow for 

further analysis of the Penny Pilot and 

a determination of how the program 

should be structured in the future. 

Under the Penny Pilot, the minimum 

price variation for all participating 

options classes, except for the Nasdaq100 Index Tracking Stock (‘‘QQQQ’’), 

the SPDR S&P 500 Exchange Traded 

Fund (‘‘SPY’’) and the iShares Russell 

2000 Index Fund (‘‘IWM’’), is $0.01 for 

all quotations in options series that are 

quoted at less than $3 per contract and 

$0.05 for all quotations in options series 

that are quoted at $3 per contract or 

greater. QQQQ, SPY and IWM are 

quoted in $0.01 increments for all 

options series. The Penny Pilot is 

currently scheduled to expire on 

December 31, 2018.5

The Exchange proposes to extend the 

time period of the Penny Pilot through 

June 30, 2019 or the date of permanent 

approval, if earlier, and to provide a 

revised date for adding replacement 

issues to the Penny Pilot. The Exchange 

proposes that any Penny Pilot Program 

issues that have been delisted may be 

replaced on the second trading day 

following January 1, 2019. The 

replacement issues will be selected 

based on trading activity in the previous 

six months.6

This filing does not propose any 

substantive changes to the Penny Pilot 

Program; all classes currently 

participating in the Penny Pilot will 


amozie on DSK3GDR082PROD with NOTICES1