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


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26718 Federal Register / Vol. 83, No. 111 / Friday, June 8, 2018 / Notices 

than one account number. See proposed Rule 

100(a)(1). 

9A ‘‘badge’’ shall mean an account number with 

a letter suffix assigned to Market Makers. A Market 

Maker account may be associated with multiple 

badges. See proposed Rule 100(a)(5). 

10A ‘‘mnemonic’’ shall mean an acronym 

comprised of letters and/or numbers assigned to 

Electronic Access Members. An Electronic Access 

Member account may be associated with multiple 

mnemonics. See proposed Rule 100(a)(34). 

11 Id. 

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

13 15 U.S.C. 78f(b)(5). 14 15 U.S.C. 78f(b)(8). 

‘‘badge,’’ 9 and ‘‘mnemonic’’ 10 to be 

utilized within the CTI definition and 

uniformly throughout the Rulebook. The 

Exchange proposes to renumber Rule 

100 to accommodate the new 

definitions. The Exchange is reserving 2 

numbers for future use of other 

definitions. The Exchange proposes to 

replace the phrase in Rule 718(b)(1) 

subsection (ii) from previously filed 

Exchange badge or house number to 

proposed definitions for badge or 

mnemonic. The Exchange proposes to 

replace the phrase in Rule 718(b)(1) 

subsection (iii) from Exchange internal 

firm identifier to proposed definition for 

account number. The Exchange 

proposes to expand on Rule 718(b)(1) 

subsection (iv) by replacing the phrase 

‘‘an indicator which will distinguish 

electronic and non-electronically 

delivered orders’’ with ‘‘information 

which identifies the transaction type 

(e.g. auction type) for billing purposes.’’ 

Finally, the Exchange is adding an 

‘‘and’’ before Rule 718(b)(1) subsection 

(v) ‘‘capacity’’ and changing the 

wording to ‘‘market participant 

capacity.’’ The Exchange has 

renumbered the CTI sections to account 

for the language that was removed from 

the description. Finally, the Exchange is 

making a grammatical change and 

adding parenthesis around defined 

terms. The Exchange is expressing more 

specifically the type of data contained 

in CTI. 

FIX DROP 

The Exchange stated in its Prior Filing 

that ‘‘FIX DROP provides real-time 

order and execution update is a message 

that is sent to a Member after an order 

been received/modified or an execution 

has occurred and contains trade details. 

The information includes, among other 

things, the following: (1) Executions; (2) 

cancellations; (3) modifications to an 

existing order; and (4) busts or posttrade corrections.’’ 11

The Exchange proposes to 

memorialize FIX DROP within MRX 

Rule 718(b)(3). The Exchange notes that 

at the end of the first sentence of the 

description it is adding ‘‘specific to that 

Member’’ to make clear that FIX DROP 

only provides a Member its specific 

trade information. Also, an ‘‘and’’ is 

included before new (iv) as the numbers 

have been changed to roman numerals. 

TradeInfo 

The Exchange proposes to establish 

its TradeInfo offering at MRX Rule 

718(b)(2). TradeInfo, a user interface, 

permits a Member to: (i) Search all 

orders submitted in a particular security 

or all orders of a particular type, 

regardless of their status (open, 

canceled, executed, etc.); (ii) view 

orders and executions; and (iii) 

download orders and executions for 

recordkeeping purposes. TradeInfo 

users may also cancel open orders at the 

order, port or firm mnemonic level 

through TradeInfo. TradeInfo is offered 

today to Members on MRX at no cost. 

The Exchange considers it appropriate 

to establish and memorialize the order 

and execution information available on 

MRX within a rule so that Members may 

understand the trade information which 

is available on the Exchange as it 

pertains to a firm’s trading information. 

This data is available to all Members 

and is specific to a Member’s 

transactions on MRX. 

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’’),12 in general, 

and furthers the objectives of Section 

6(b)(5) of the Act,13 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 order and 

execution information offered on MRX. 

Each proposal is described in more 

detail below. 

MRX Rule 718(a) 

The Exchange’s proposal to amend 

the Nasdaq MRX Top Quote Feed to 

specify that Professional Orders and 

Priority Customer Orders are segregated 

and aggregated is consistent with the 

protection of investors and the public 

interest because the Exchange is 

correcting the categories of orders, 

which 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. The Exchange believes that 

this amendment will bring more 

transparency to the information within 

the feed. 

MRX Rule 718(b) 

The Exchange believes that 

memorializing CTI and FIX DROP 

within a rule will provide Members 

with transparency as to the order and 

information offerings available on MRX 

specific to their trading on MRX. The 

Exchange’s proposal to establish 

TradeInfo is consistent with the Act 

because the Exchange is detailing the 

contents of this offering as well as 

providing transparency as to the 

availability of TradeInfo. The Exchange 

believes that offering Members 

TradeInfo, which allows Members to 

view executions as well as other 

capabilities with respect to order 

management, enhances the ability of a 

Member to manage its orders. The 

Exchange believes that providing 

Members with tools to manage orders is 

consistent with the Act and serves to 

protect investors and the public interest. 

Further, the Exchange believes that this 

proposal is consistent with the Act 

because TradeInfo provides information 

regarding information available to 

market participants, specifically with 

respect to trades they execute on MRX. 

The information is available to all 

Members. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

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

the Act,14 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 Nasdaq MRX Top 

Quote Feed as well as order and 

execution information offered on MRX. 

The information is available to all 

Members. Specifically, TradeInfo is 

available to any Member that requests 

this service. The TradeInfo product will 

provide a Member information 

regarding that Member’s executions. 


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Federal Register / Vol. 83, No. 111 / Friday, June 8, 2018 / Notices 26719 

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

16 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. 

17 17 CFR 240.19b–4(f)(6). 

18 17 CFR 240.19b–4(f)(6)(iii). 

19For 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). 

20 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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 15 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.16

A proposed rule change filed under 

Rule 19b–4(f)(6) 17 normally does not 

become operative prior to 30 days after 

the date of the filing. However, Rule 

19b–4(f)(6)(iii) 18 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 waiver of the 

operative delay will allow the Exchange 

to correct the Nasdaq MRX Top Quote 

Feed and update its rules immediately 

regarding order and execution 

information offered on MRX. The 

Exchange further states that it believes 

the waiver will further the protection of 

investors and the public interest 

because it will provide greater 

transparency as to the Nasdaq MRX Top 

Quote Feed as well as trade detail 

available to market participants. 

Further, the Exchange states that 

memorializing TradeInfo will provide 

Members with greater information 

concerning a Member’s executions on 

MRX and make its availability 

transparent. 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.19

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–2018–16 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–2018–16. 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–MRX–2018–16 and should 

be submitted on or before June 29, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.20

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–12318 Filed 6–7–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83367; File No. SR–BOX– 

2018–14] 

Self-Regulatory Organizations; BOX 

Options Exchange LLC; Notice of 

Filing of Proposed Rule Change To 

Adopt Rules Governing the Trading of 

Complex Qualified Contingent Cross 

and Complex Customer Cross Orders 

June 4, 2018. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on May 22, 

2018, BOX Options Exchange LLC (the 

‘‘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 self-regulatory organization. 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 the Substance 

of the Proposed Rule Change 

The Exchange proposes to adopt rules 

governing the trading of Complex 

Qualified Contingent Cross and 

Complex Customer Cross Orders. The 

text of the proposed rule change is 

available from the principal office of the 

Exchange, at the Commission’s Public 

Reference Room and also on the 


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