Federal Register / Vol. 83, No. 111 / Friday, June 8, 2018 / Notices 26715 

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

2 17 CFR 240.19b–4. 

3MRX rules are located at: http://

nasdaqmrx.cchwallstreet.com/. 

4The Exchange offers various services across its 

6 affiliated options markets, MRX, Nasdaq PHLX 

LLC, Nasdaq BX, Inc., The Nasdaq Options Market 

LLC, Nasdaq GEMX, LLC, and Nasdaq ISE, LLC 

(‘‘Nasdaq Affiliated Markets’’). 

5See SR–MRX–2018–16 (not yet published). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83368; File No. SR–MRX– 

2018–17] 

Self-Regulatory Organizations; Nasdaq 

MRX, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend and 

Reorganize Specific Chapters in the 

Schedule of Fees 

June 4, 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 May 22, 

2018, Nasdaq MRX, LLC (‘‘MRX’’ 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 amend and 

reorganize Chapters II, IV, V, and VI of 

the MRX Schedule of Fees. 

The text of the proposed rule change 

is available on the Exchange’s website at 

http://nasdaqmrx.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 amend 

Chapters II, IV, V, and VI of the MRX 

Schedule of Fees to: (i) Eliminate the 

Table of Contents; (ii) remove the INET 

Port Fees from Chapter II, Part B; (iii) 

adopt a new Chapter IV, entitled ‘‘Ports 

and Other Services’’ and amend and 

reorganize the current port fees; (iv) 

adopt a new Chapter V, entitled ‘‘Market 

Data’’ and list all the market data feeds; 

and (v) renumber Chapter IV, entitled 

‘‘Connectivity Fees.’’ Each change will 

be described in more detail below. The 

Exchange believes that the proposed 

amendments to the Schedule of Fees 

will provide more clarity as to the 

current fees. The Exchange notes that no 

fee changes are being introduced in this 

rule change. The Exchange is simply 

reorganizing its rules to conform to 

other Nasdaq affiliate markets by 

aligning the location and description of 

its rules on each market. 

Table of Contents 

The Exchange proposes to eliminate 

the Table of Contents in the MRX 

Schedule of Fees. The Table of Contents 

are unnecessary. The website where the 

MRX rules are listed 3 contains 

hyperlinks and a skeleton of the 

available rules within the site and 

enables market participants to view all 

rules in that section. 

INET Port Fees 

The Exchange currently lists all INET 

Port Fees within Chapter II, Part C. The 

Exchange proposes to delete this rule 

text and relocate it to proposed new 

Chapter IV and entitle that chapter as 

‘‘Ports and Other Services.’’ The 

Exchange believes that this title more 

accurately describes the types of fees 

contained in this chapter. The Exchange 

proposes to restructure the port fees. 

First, the Exchange proposes to add 

language at the beginning of this new 

chapter to state, ‘‘The below charges are 

assessed by MRX for connectivity to 

MRX.’’ The Exchange believes that this 

sentence makes clear that the fees apply 

to MRX. The Exchange proposes to 

define a port as ‘‘a logical connection or 

session that enables a market participant 

to send inbound messages and/or 

receive outbound messages from the 

Exchange using various communication 

protocols.’’ The Exchange believes this 

definition will assist members in 

distinguishing ports from other 

offerings. 

The Exchange proposes to restructure 

the port fees into 4 categories. The 

Exchange proposes to list order and 

quote protocols first, order and 

execution offerings next, followed by 

data ports and other ports as the last 

section. The Exchange proposes to list 

data offerings that are offered at no cost. 

The Exchange believes that aligning its 

offerings, where relevant, with other 

affiliated markets 4 will provide more 

transparency as to the offerings for 

market participants. 

The Exchange proposes to add a new 

section (i) and include the following 

introductory sentence, ‘‘The following 

order and quote protocols are available 

on MRX.’’ The Exchange proposes to list 

the order entry protocol port fees for 

FIX, SQF, SQF Purge Port and OTTO in 

this section. The fees are not being 

amended, the existing fees are being 

relocated into new section (i). 

The Exchange proposes to add a new 

section (ii) and include the following 

introductory sentence, ‘‘The following 

order and execution information is 

available to Members.’’ The Exchange 

intends to list other port or interface 

information into this section that are 

available to MRX Members. The 

Exchange is relocating the CTI and FIX 

DROP port fees. No changes are being 

made to those fees. The Exchange also 

proposes to list TradeInfo MRX Interface 

into this section. The Exchange has 

recently filed to establish this Interface 

within the MRX rules.5 The Exchange 

proposes to note this interface is 

available on MRX at no cost. 

The Exchange proposes to add a new 

section (iii) and include the following 

language, ‘‘The following data port fees 

apply in connection with data 

subscriptions pursuant to MRX Rules at 

Chapter V. These ports are available to 

non-MRX Members and MRX 

Members.’’ Today, MRX does not assess 

a fee for these ports outlined in new 

section (iii). Similar to other Nasdaq 

Affiliated Markets the Exchange 

proposes to list all of the ports that 

Members and Non-Members obtain 

today at no cost. The Exchange believes 

that listing these ports in addition to the 

data subscriptions will bring more 

transparency to the Schedule of Fees. 

The Exchange proposes to add a new 

section (iv) entitled ‘‘Other ports’’ and 

relocate the Disaster Recovery Ports into 

this section. The Exchange also 

proposes to make clear that a Disaster 

Recovery Port is available for any port 

listed in proposed sections (i)–(iii). 

Market Data 

The Exchange proposes to adopt a 

new Chapter V and entitle this section 

Market Data. Today, MRX does not 

assess fees for Market Data. The 


amozie on DSK3GDR082PROD with NOTICES1
26716 Federal Register / Vol. 83, No. 111 / Friday, June 8, 2018 / Notices 

6 15 U.S.C. 78f(b). 

7 15 U.S.C. 78f(b)(5). 

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

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

10 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. 

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 has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

Exchange proposes to list its Market 

Data within Chapter V and note that 

there is no cost. The Exchange’s Market 

Data fees are listed in Rule 718. The 

Exchange has listed these feeds within 

Chapter V to bring more transparency to 

the Schedule of Fees. Finally, the 

Exchange proposes to renumber Chapter 

IV, Connectivity Fees as new Chapter VI 

to account for the two new chapters 

proposed for the Rulebook. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Securities Exchange 

Act of 1934 (the ‘‘Act’’),6 in general, and 

furthers the objectives of Section 6(b)(5) 

of the Act,7 in particular, in that it is 

designed to promote just and equitable 

principles of trade, to remove 

impediments to and perfect the 

mechanism for a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest, by providing greater 

transparency as to the ports offered on 

MRX. 

The Exchange’s proposal to remove 

the Table of Contents, relocate the INET 

Fees, retitle and restructure those fees 

and adopt a new Market Data section at 

Chapter V are administrative. These 

changes are consistent with the 

protection of investor and the public 

interest because the amendments are 

intended to bring greater clarity to the 

Rulebook. The Exchange’s proposal to 

reorganize the port fees into sections 

and include pricing for ports that are 

offered at no cost is also consistent with 

the protection of investor and the public 

interest because it will bring greater 

transparency to the Exchange’s current 

offerings. The Exchange’s proposal to 

display the various market data within 

newly proposed Chapter V will also 

bring greater transparency to the 

Exchange’s current offerings. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

In accordance with Section 6(b)(8) of 

the Act,8 the Exchange does not believe 

that the proposed rule change will 

impose any burden on intermarket or 

intra-market competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange’s proposal does not impose an 

undue burden on competition, rather 

the Exchange is seeking to provide 

greater transparency within its rules 

with respect to the various ports and 

market data offered on MRX. 

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 9 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.10

A proposed rule change filed under 

Rule 19b–4(f)(6) 11 normally does not 

become operative prior to 30 days after 

the date of the 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 the proposed 

rule change may become effective and 

operative immediately upon filing. The 

Exchange states that it believes the 

waiver will further the protection of 

investors and the public interest 

because it will provide greater 

transparency as to various ports 

available to market participants. The 

Exchange further states that the 

proposed rule change will bring greater 

clarity to the Schedule of Fees. 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 30-day 

operative delay and designates the 

proposed rule change 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: (i) Necessary or appropriate in 

the public interest; (ii) for the protection 

of investors; or (iii) 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– 

MRX–2018–17 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–MRX–2018–17. 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 


amozie on DSK3GDR082PROD with NOTICES1
Federal Register / Vol. 83, No. 111 / Friday, June 8, 2018 / Notices 26717 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The term ‘‘Public Customer’’ means a person or 

entity that is not a broker or dealer in securities. See 

Rule 100(a)(44). 

4The term ‘‘Priority Customer’’ means a person 

or entity that (i) is not a broker or dealer in 

securities, and (ii) does not place more than 390 

orders in listed options per day on average during 

a calendar month for its own beneficial account(s). 

See 100(a)(41A). The term ‘‘Priority Customer 

Order’’ means an order for the account of a Priority 

Customer. See Rule 100(a)(43A). 

5The term ‘‘Professional Order’’ means an order 

that is for the account of a person or entity that is 

not a Priority Customer. See Rule 100(a)(43C). 

6See Securities Exchange Act Release No. 81312 

(August 3, 2017), 82 FR 37253 (August 3, 2017) 

(SR–MRX–2017–13) (‘‘Prior Filing’’). 

7See note 3 above. 

8An ‘‘account number’’ shall mean a number 

assigned to a Member. Members may have more 

Continued 

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–MRX–2018–17 and should 

be submitted on or before June 29, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–12320 Filed 6–7–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83366; File No. SR–MRX– 

2018–16] 

Self-Regulatory Organizations; Nasdaq 

MRX, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Memorialize Order and 

Execution Information Into MRX Rule 

718 

June 4, 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 May 23, 

2018, Nasdaq MRX, LLC (‘‘MRX’’ 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 

memorialize its order and execution 

information into MRX Rule 718, entitled 

‘‘Data Feeds.’’ 

The text of the proposed rule change 

is available on the Exchange’s website at 

http://nasdaqmrx.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 add order 

and execution information into MRX 

Rule 718, entitled ‘‘Data Feeds.’’ The 

Exchange proposes to rename this rule 

‘‘Data Feeds and Trade Information.’’ 

The Exchange also proposes to amend 

Rule 100 to add definitions. 

MRX Rule 718(a) 

The Exchange proposes to amend the 

Nasdaq MRX Top Quote Feed. The 

Exchange stated in that description that 

this feed calculates and disseminates 

MRX’s best bid and offer position, with 

aggregated size (including total size in 

aggregate, for Public Customer 3 size in 

the aggregate and Priority Customer 4

size in the aggregate), based on 

displayable order and quote interest in 

the System. The Exchange proposes to 

amend this rule text to instead provide, 

‘‘this feed calculates and disseminates 

MRX’s best bid and offer position, with 

aggregated size (including total size in 

aggregate, for Professional Order 5 size 

in the aggregate and Priority Customer 

Order size in the aggregate), based on 

displayable order and quote interest in 

the System.’’ The Exchange intended to 

specify that Professional Orders and 

Priority Customer Orders are segregated 

and aggregated. The Public Customer 

definition is too broad because it 

includes a portion of Priority Customer, 

which was already specified within the 

description. The Exchange proposes to 

remove Public Customer and replace it 

with Professional Order to be more 

specific and amend Priority Customer to 

Priority Customer Order to reference the 

types of orders that are aggregated to 

conform the rule text. 

MRX Rule 718(b) 

The Exchange proposes to adopt a 

new MRX Rule 718(b) and memorialize 

the following order and execution 

information which was discussed in 

other rule filings by the Exchange: (i) 

Clearing Trade Information or ‘‘CTI’’; 

and (ii) FIX DROP.6 The Exchange is 

also adding a description for TradeInfo. 

The TradeInfo user interface is being 

offered today on MRX at no cost. 

The Exchange notes that while CTI 

and FIX Drop information are accessible 

through a port, TradeInfo is an interface. 

The Exchange notes this distinction to 

make clear the manner of delivery for 

each of these information types. 

CTI 

The Exchange stated in its Prior Filing 

that ‘‘CTI is a real-time clearing trade 

message that is sent to a Member after 

an execution has occurred and contains 

trade details. The message containing 

the trade details is also simultaneously 

sent to The Options Clearing 

Corporation. The information includes, 

among other things, the following: (i) 

The Clearing Member Trade Agreement 

or ‘‘CMTA’’ or The Options Clearing 

Corporation or ‘‘OCC’’ number; (ii) 

Exchange badge or house number; (iii) 

the Exchange internal firm identifier; 

and (iv) an indicator which will 

distinguish electronic and nonelectronically delivered orders; (v) 

liquidity indicators and transaction type 

for billing purposes; (vi) capacity.’’ 7

The Exchange is proposing to amend 

the CTI description and memorialize it 

within MRX Rule 718(b)(1). The 

Exchange proposes to eliminate the 

sentence which states, ‘‘The message 

containing the trade details is also 

simultaneously sent to The Options 

Clearing Corporation.’’ The Exchange’s 

System sends clearing information to 

OCC for each transaction. This sentence 

does not add information that is useful 

or relevant and therefore the Exchange 

proposes to remove it. The Exchange 

also proposes to delete the words ‘‘an 

indicator which will distinguish 

electronic and non-electronically 

delivered orders.’’ The only method on 

MRX to deliver an order is 

electronically. 

The Exchange proposes to adopt new 

definitions for ‘‘account number,’’ 8


amozie on DSK3GDR082PROD with NOTICES1