Federal Register / Vol. 83, No. 118 / Tuesday, June 19, 2018 / Notices 28479 

39 17 CFR 200.30–3(a)(57). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4Under Rule 107B, an SLP can be either a 

proprietary trading unit of a member organization 

(‘‘SLP-Prop’’) or a registered market maker at the 

Exchange (‘‘SLMM’’). For purposes of the 10% 

average or more quoting requirement in assigned 

securities pursuant to Rule 107B, quotes of an SLPProp and an SLMM of the same member 

organization are not aggregated. However, for 

purposes of adding liquidity for assigned SLP 

securities in the aggregate, shares of both an SLPProp and an SLMM of the same member 

organization are included. 

5The phrase ‘‘Adding ADV’’ in the proposed tier 

would have a citation to footnote 4 in the current 

Price List, which provides ‘‘For purposes of 

transaction fees and Supplemental Liquidity 

Provider liquidity credits, ADV calculations 

exclude early closing days.’’ The text of current 

footnote 4 would remain unchanged. 

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 these 

filings 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–CHX–2018–001 and should 

be submitted on or before July 10, 2018. 

Rebuttal comments should be submitted 

by July 24, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.39

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–13084 Filed 6–18–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83424; File No. SR–NYSE– 

2018–27] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend Its 

Price List 

June 13, 2018. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on June 1, 

2018, New York Stock Exchange LLC 

(‘‘NYSE’’ or the ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the selfregulatory 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 Substance of 

the Proposed Rule Change 

The Exchange proposes to amend its 

Price List to (1) add a new incentive for 

member organizations and 

Supplemental Liquidity Providers 

(‘‘SLP’’) in Tape A securities when 

adding liquidity in securities traded 

pursuant to Unlisted Trading Privileges 

(‘‘UTP’’) (Tapes B and C) on the Pillar 

Trading Platform; (2) add a new Tier 4 

for SLPs; and (3) make non-substantive 

changes to eliminate obsolete footnotes. 

The Exchange proposes to implement 

these changes to its Price List effective 

June 1, 2018. The proposed rule change 

is available on the Exchange’s website at 

www.nyse.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 

self-regulatory organization 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 those 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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend its 

Price List to (1) add a new incentive for 

member organizations and SLPs on 

Tape A when adding liquidity in UTP 

Securities (Tapes B and C) on the Pillar 

Trading Platform; (2) add a new Tier 4 

for SLPs; and (3) make non-substantive 

changes to eliminate obsolete footnotes. 

The Exchange proposes to implement 

these changes to its Price List effective 

June 1, 2018. 

New Cross Tape Incentive 

The Exchange proposes an additional 

incentive to member organizations and 

SLPs in Tape A securities that add 

liquidity to the Exchange in UTP 

Securities, as follows. 

As proposed, member organizations 

that meet the current requirements for 

the Non-Tier Adding Credit, Tier 3 

Adding Credit, and Tier 4 Adding Credit 

on Tape A would be eligible to receive 

an additional $0.0001 per share if the 

member organization adds liquidity, 

excluding liquidity added as an SLP, in 

UTP Securities of at least 0.20% of Tape 

B and Tape C consolidated average daily 

volume (‘‘CADV’’) combined. 

Similarly, SLPs that (1) meet the 

current requirements for SLP Tier 3, 

SLP Tier 2 and SLP Tier 1A credits, and 

(2) add liquidity in UTP Securities of at 

least 0.30% of Tape B and Tape C CADV 

combined, would be eligible for an 

additional $0.0001 per share in 

securities with a per share price of $1.00 

or more that meet the 10% average or 

more quoting requirement in an 

assigned security pursuant to Rule 107B 

(quotes of an SLP-Prop and an SLMM of 

the same member organization would 

not be aggregated). 

New SLP Tier 4 

The Exchange proposes a new, fifth 

SLP Tier designated ‘‘4’’ that would 

provide that an SLP that either (1) is in 

the first two calendar months as an SLP, 

or (2) adds liquidity for all assigned SLP 

securities in the aggregate (including 

shares of both an SLP-Prop and an 

SLMM 4 of the same or an affiliated 

member organization) of an ADV of 

more than 0.03% of NYSE CADV after 

averaging less an adding ADV 5 of than 

0.01% in each of the prior 3 months, 

after a discount of the percentage for the 

prior quarter of NYSE CADV in DMM 

assigned securities as of the last 

business day of the prior month, would 

receive a credit of $0.0029, or $0.00105 

if a Non-Displayed Reserve Order, if the 

SLP meets the 10% average or more 

quoting requirement in an assigned 

security pursuant to Rule 107B when 

adding liquidity to the NYSE with 

orders, other than Mid-Point Liquidity 

(‘‘MPL’’) orders, in securities with a per 

share price of $1.00 or more. For 


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28480 Federal Register / Vol. 83, No. 118 / Tuesday, June 19, 2018 / Notices 

6The term ‘‘UTP Security’’ means a security that 

is listed on a national securities exchange other 

than the Exchange and that trades on the Exchange 

pursuant to unlisted trading privileges. See Rule 

1.1(ii). 

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

8 15 U.S.C. 78f(b)(4) & (5). 9 15 U.S.C. 78f(b)(8). 

purposes of qualifying for the proposed 

Tier, quotes of an SLP-Prop and an 

SLMM of the same member organization 

would not be aggregated. The Exchange 

believes that the new tier will provide 

greater incentives for newer and less 

active SLPs to add liquidity to the 

Exchange. 

Non-Substantive Changes 

Currently, as reflected in footnote * to 

the section of the Price List setting forth 

adding tiers for trading UTP Securities,6

the Exchange waives the Tier 1 adding 

tier requirement and the remove tier 

requirements for securities priced at or 

above $1.00 until June 1, 2018. 

Similarly, as reflected in footnote ** of 

the section of the Price List setting forth 

the SLP Provide Tiers for trading in UTP 

Securities, the Exchange also currently 

waives the provide volume component 

of the SLP Tier requirements for 

securities priced at or above $1.00 until 

June 1, 2018. Because the waivers set 

forth in footnotes * and ** expire on 

June 1, 2018, and the Exchange does not 

propose to extend the waivers, the 

Exchange accordingly proposes to delete 

footnotes * and ** as obsolete. 

* * * * * 

The proposed changes are not 

otherwise intended to address any other 

issues, and the Exchange is not aware of 

any problems that member 

organizations would have in complying 

with the proposed change. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,7 in general, and 

furthers the objectives of Sections 

6(b)(4) and 6(b)(5) of the Act,8 in 

particular, because it provides for the 

equitable allocation of reasonable dues, 

fees, and other charges among its 

members, issuers and other persons 

using its facilities and does not unfairly 

discriminate between customers, 

issuers, brokers or dealers. 

New Cross Tape Incentive 

The Exchange believes that providing 

an additional incentive in Tape A 

securities for member organizations that 

add liquidity in UTP Securities is 

reasonable because it would further 

contribute to incenting member 

organizations to provide additional 

liquidity to a public exchange in UTP 

Securities, thereby promoting price 

discovery and transparency and 

enhancing order execution 

opportunities for member organizations. 

The Exchange believes that that the 

proposal is reasonable and not unfairly 

discriminatory because it would apply 

to all member organizations eligible for 

the relevant Tape A tier credits equally. 

The Exchange further believes that 

limiting the additional credit to NonTier, Adding Tier 3 and Adding Tier 4 

is reasonable because members 

qualifying for Adding Tier 1 and Adding 

Tier 2 would already receive a higher 

credit for such executions. Similarly, 

the Exchange believes that limiting the 

additional credit to SLP Tier 3, SLP Tier 

2 and SLP Tier 1A is reasonable because 

SLPs qualifying for SLP Tier 1 would 

already receive a higher credit for such 

executions. 

New SLP Tier 4 

The Exchange believes that the 

proposal to introduce a new SLP Tier 4 

is reasonable because it provides SLPs 

as well as SLPs that are also DMMs with 

an additional way to qualify for a rebate, 

thereby providing SLPs with greater 

flexibility and creating an added 

incentive for SLPs to bring additional 

order flow to a public market. In 

particular, as noted above, the Exchange 

believes that the new tier will provide 

greater incentives for newer and less 

active SLPs to add liquidity to the 

Exchange, to the benefit of the investing 

public and all market participants. 

Moreover, offering a higher credit for 

the first two months would provide an 

incentive for new and less active SLPs 

to add liquidity and meet the SLP 

quoting requirements, thereby 

contributing to additional levels of 

liquidity at the Exchange, which 

benefits all market participants. The 

Exchange also believes that the twomonth period for new SLPs and inactive 

SLPs to qualify for the new tier is 

reasonable because it will allow newer 

and less active SLPs more time to meet 

the SLP volume requirements while 

building up the SLPs’ liquidity 

providing activities during the first two 

months. Finally, the Exchange believes 

that the proposed tier is equitable and 

not unfairly discriminatory because it 

would apply equally to all SLPs and 

because there are two ways to qualify 

for the proposed tier. 

Non-Substantive Changes 

The Exchange believes that the 

proposed deletion of footnotes * and ** 

removes impediments to and perfects 

the mechanism of a free and open 

market by adding clarity as to whether 

waivers are operative and when, thereby 

reducing potential confusion, and 

making the Exchange’s rules easier to 

navigate. The Exchange also believes 

that eliminating obsolete material from 

its rulebook also removes impediments 

to and perfects the mechanism of a free 

and open market by removing confusion 

that may result from having obsolete 

material in the Exchange’s rulebook. 

The Exchange believes that eliminating 

such obsolete material would not be 

inconsistent with the public interest and 

the protection of investors because 

investors will not be harmed and in fact 

would benefit from increased 

transparency, thereby reducing potential 

confusion. 

Finally, the Exchange believes that it 

is subject to significant competitive 

forces, as described below in the 

Exchange’s statement regarding the 

burden on competition. 

For the foregoing reasons, the 

Exchange believes that the proposal is 

consistent with the Act. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

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

the Act,9 the Exchange believes that the 

proposed rule change would not impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. Instead, the 

Exchange believes that the proposed 

change would foster liquidity provision 

and stability in the marketplace, thereby 

promoting price discovery and 

transparency and enhancing order 

execution opportunities for member 

organizations. In this regard, the 

Exchange believes that the transparency 

and competitiveness of attracting 

additional executions on an exchange 

market would encourage competition. 

The Exchange also believes that the 

proposed rule change is designed to 

provide the public and investors with a 

Price List that is clear and consistent, 

thereby reducing burdens on the 

marketplace and facilitating investor 

protection. 

Finally, the Exchange notes that it 

operates in a highly competitive market 

in which market participants can 

readily favor competing venues if they 

deem fee levels at a particular venue to 

be excessive or rebate opportunities 

available at other venues to be more 

favorable. In such an environment, the 

Exchange must continually adjust its 

fees and rebates to remain competitive 

with other exchanges and with 

alternative trading systems that have 

been exempted from compliance with 

the statutory standards applicable to 

exchanges. Because competitors are free 

to modify their own fees and credits in 


daltland on DSKBBV9HB2PROD with NOTICES
Federal Register / Vol. 83, No. 118 / Tuesday, June 19, 2018 / Notices 28481 

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. 

3 ‘‘SPDR®,’’ ‘‘Standard & Poor’s®,’’ ‘‘S&P®,’’ 

‘‘S&P 500®,’’ and ‘‘Standard & Poor’s 500’’ are 

registered trademarks of Standard & Poor’s 

Financial Services LLC. The SPY ETF represents 

ownership in the SPDR S&P 500 Trust, a unit 

investment trust that generally corresponds to the 

price and yield performance of the SPDR S&P 500 

Index. 

response, and because market 

participants may readily adjust their 

order routing practices, the Exchange 

believes that the degree to which fee 

changes in this market may impose any 

burden on competition is extremely 

limited. As a result of all of these 

considerations, the Exchange does not 

believe that the proposed changes will 

impair the ability of member 

organizations or competing order 

execution venues to maintain their 

competitive standing in the financial 

markets. 

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– 

NYSE–2018–27 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE, Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSE–2018–27. 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–NYSE–2018–27 and should 

be submitted on or before July 10, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–13083 Filed 6–18–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83423; File No. SR–BX– 

2018–022] 

Self-Regulatory Organizations; Nasdaq 

BX, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Position 

Limits and Exercise Limits for Options 

on the SPDR Exchange-Traded Fund 

June 13, 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 June 12, 

2018, Nasdaq BX, Inc. (‘‘BX’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

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 amend BX 

Rules at Supplementary Material to 

Chapter III, Section 7, entitled ‘‘Position 

Limits,’’ and Section 9, entitled 

‘‘Exercise Limits,’’ to amend position 

limits and exercise limits for options on 

the SPDR® S&P 500® exchange-traded 

fund (‘‘SPY ETF’’ or ‘‘SPY’’),3 which list 

and trade under the symbol ‘‘SPY.’’ 

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 


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