Federal Register / Vol. 83, No. 127 / Monday, July 2, 2018 / Notices 30997 

10 15 U.S.C. 78q-1(b)(3)(F). 

11 Id. 

12 15 U.S.C. 78q–1(b)(3)(I). 

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

14 17 CFR 240.19b–4(f)(6). 

15OCC provided the Commission with 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. 

16Notwithstanding its immediate effectiveness, 

implementation of this rule change will be delayed 

until this change is deemed certified under CFTC 

Rule 40.6. 17 17 CFR 200.30–3(a)(12). 

level information with respect to these 

accounts in accordance with the 

Guidebook specifications. 

Consequently, OCC is proposing to 

delete the customer identifier provisions 

from Rule 601(e)(2) so that Clearing 

Members can provide customer names 

and LEIs to OCC so that it can, in turn, 

provide this information on daily 

reports to the CFTC consistent with the 

CFTC staff guidance on daily reporting 

requirements under Regulation 39.19. 

(2) Statutory Basis 

Section 17A(b)(3)(F) of the Act 

requires, among other things, that the 

rules of a clearing agency be designed, 

in general, to protect investors and the 

public interest.10 OCC believes that the 

proposed rule change is consistent with 

Section 17A(b)(3)(F) of the Act.11 As 

noted above, OCC Rule 601(e)(2) 

requires each Clearing Member to 

submit to OCC on each business day a 

data file that identifies the positions in 

segregated futures accounts of each 

futures customer of the Clearing 

Member using a unique alphanumeric 

customer identifier for each such 

customer. The proposed rule change 

would remove this provision and the 

requirement that ‘‘such identifiers shall 

not include any indication of the 

identity of any customer or other 

personal information of a customer.’’ 

Once these provisions are removed, 

Clearing Members can provide this 

information to OCC, who can then 

provide it to the CFTC in accordance 

with the Guidebook specifications. This 

will enhance the CFTC staff’s ability to 

perform its oversight function with the 

information it deems necessary, which 

promotes the protection of investors and 

the public interest. 

(B) Clearing Agency’s Statement on 

Burden on Competition 

Section 17A(b)(3)(I) of the Act 

requires that the rules of a clearing 

agency not impose any burden on 

competition not necessary or 

appropriate in furtherance of the Act.12

OCC does not believe that the proposed 

rule change would impose any burden 

on competition. Rather, the proposed 

rule change removes an existing 

restriction on the data provided to OCC 

by its Clearing Members regarding 

customers with segregated futures 

accounts. As discussed above, this will 

then allow OCC to provide this 

information to the CFTC, consistent 

with the CFTC staff guidance on daily 

reporting requirements under 

Regulation 39.19, who uses the 

information in performing its statutory 

mandate. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants or Others 

Written comments on the proposed 

rule change were not and are not 

intended to be solicited with respect to 

the proposed rule change and none have 

been received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Pursuant to Section 19(b)(3)(A) of the 

Act 13 and Rule 19b–4(f)(6)14

thereunder, the proposed rule change is 

filed for immediate effectiveness 

because it 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.15

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.16

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– 

OCC–2018–009 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–OCC–2018–009. 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 OCC and on OCC’s website at 

https://www.theocc.com/components/ 

docs/legal/rules_and_bylaws/sr_occ_18_

009.pdf. 

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–OCC–2018–009 and should 

be submitted on or before July 23, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–14113 Filed 6–29–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meetings 

FEDERAL REGISTER CITATION OF PREVIOUS

ANNOUNCEMENT: 83 Federal Register 

29838, 26 June 2018. 


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30998 Federal Register / Vol. 83, No. 127 / Monday, July 2, 2018 / Notices 

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

2 17 CFR 240.19b–4. 

3The Exchange initially filed the proposed 

pricing changes on June 1, 2018 (SR–NASDAQ– 

2018–043). On July [sic] 12, 2018, the Exchange 

withdrew that filing and submitted this filing. This 

filing makes technical corrections, provides further 

discussion of the proposed change, and clarifies the 

statutory basis and burden on competition 

discussions. 

4See Securities Exchange Act Release No. 82825 

(March 7, 2018), 83 FR 10937 (March 13, 2018) (SR– 

NASDAQ–2017–074). 

5See Securities Exchange Act Release No. 82905 

(March 20, 2018), 83 FR 12988 (March 26, 2018) 

(SR–NASDAQ–2018–021). 

PREVIOUSLY ANNOUNCED TIME AND DATE OF

THE MEETING: Thursday, June 28, 2018 at 

2:00 p.m. 

CHANGES IN THE MEETING: The following 

item will not be considered during the 

Closed Meeting on Thursday, June 28, 

2018: 

• Report on an investigation. 

CONTACT PERSON FOR MORE INFORMATION: 

For further information and to ascertain 

what, if any, matters have been added, 

deleted or postponed, please contact the 

Office of the Secretary at (202) 551– 

5400. 

Dated: June 28, 2018. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2018–14281 Filed 6–28–18; 4:15 pm] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83522; File No. SR– 

NASDAQ–2018–047] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Adopt a 

New Transaction Fee for Execution of 

Midpoint Extended Life Orders 

June 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 June 12, 

2018, The Nasdaq Stock Market LLC 

(‘‘Nasdaq’’ or ‘‘Exchange’’) 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 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 the 

Exchange’s transaction fees at Rule 7018 

to adopt a new transaction fee for 

execution of Midpoint Extended Life 

Orders. 

While these amendments are effective 

upon filing, as discussed below, the 

Exchange will begin assessing the 

proposed fees on July 2, 2018.3

The text of the proposed rule change 

is available on the Exchange’s website at 

http://nasdaq.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 the proposed rule 

change is to amend the Exchange’s 

transaction fees at Rule 7018(a)(1)–(3) to 

charge no fee for execution of Midpoint 

Extended Life Orders in the month of 

July 2018 if the member executes at 

least 250,000 shares in Midpoint 

Extended Life Orders in June 2018, and 

adopt a fee of $0.0006 per share 

executed for execution of all other 

Midpoint Extended Life Orders in 

securities with a price of $1 or more. 

Transactions in Midpoint Extended Life 

Orders in securities with a price less 

than $1 will remain at no cost. 

On March 7, 2018, the Commission 

approved the Exchange’s proposal to 

adopt a new Order Type, the Midpoint 

Extended Life Order.4 The Midpoint 

Extended Life Order is an Order Type 

with a Non-Display Order Attribute that 

is priced at the midpoint between the 

NBBO and that will not be eligible to 

execute until the Holding Period of one 

half of a second has passed after 

acceptance of the Order by the System. 

Once a Midpoint Extended Life Order 

becomes eligible to execute by existing 

unchanged for the Holding Period, the 

Order may only execute against other 

eligible Midpoint Extended Life Orders. 

The Exchange has not assessed a charge 

for Midpoint Extended Life Orders 

executions since the Exchange began to 

offer them on March 12, 2018.5

Under Rule 7018, the Exchange is 

proposing to assess fees for certain 

Midpoint Extended Life Orders 

beginning July 2, 2018, while 

continuing to provide a no fee tier for 

the month of July 2018 if a member 

meets qualification criteria based on its 

activity in Midpoint Extended Life 

Orders in June 2018. Specifically, the 

Exchange is proposing to assess no 

charge for execution of Midpoint 

Extended Life Orders in the month of 

July 2018 if the member executes at 

least at least [sic] 250,000 shares in 

Midpoint Extended Life Orders in the 

immediately preceding month. Thus, 

the new fee will be applied beginning 

July 2, 2018 based on the number of 

Midpoint Extended Life Orders 

executed by the member in the month 

of June 2018. The Exchange is also 

adopting a new fee of $0.0006 per share 

executed assessed for execution of 

Midpoint Extended Life Orders in 

securities priced at $1 or more 

applicable to members that do not 

qualify under the no cost tier described 

immediately above. After July 2018, the 

Exchange will assess a charge of $0.0006 

per share executed assessed [sic] for 

execution of any Midpoint Extended 

Life Order in a security priced $1 or 

greater. The proposed fees cover Orders 

in securities of any of the three tapes. 

The Exchange believes that the market 

in Midpoint Extended Life Orders has 

matured to the point that it can support 

the proposed $0.0006 per share 

executed fee; however, the Exchange 

also believes that promoting liquidity in 

Midpoint Extended Life Orders 

continues to be warranted. Thus, the 

Exchange is proposing to not assess a 

fee for executions of Midpoint Extended 

Life Orders in the month of July 2018 if 

members have at least 250,000 shares 

executed in Midpoint Extended Life 

Orders in June 2018. Allowing 

transactions to occur at no cost if a 

member provides a certain level of 

Midpoint Extended Life Order liquidity 

will promote use of the Midpoint 

Extended Life Order, which will in turn 

help bring continued overall liquidity in 

Midpoint Extended Life Orders in 

securities priced $1 or more to the 

Exchange in June 2018, since members 

may increase their activity in Midpoint 

Extended Life Orders, and members that 

have not yet used Midpoint Extended 

Life Orders may begin trading in them 

to benefit from the zero fee tier. To the 

extent that members are provided 


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