30804 Federal Register / Vol. 83, No. 126 / Friday, June 29, 2018 / Notices 

7 Id. 

8 Id. 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

responsible; and to comply with the 

provisions of the Act and the rules and 

regulations thereunder. ICC believes 

that the proposed rule changes are 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to ICC, in 

particular, to Section 17A(b)(3)(F),7

because ICC believes that the proposed 

rule changes will promote the prompt 

and accurate clearance and settlement of 

securities transactions, derivatives 

agreements, contracts, and transactions, 

and contribute to the safeguarding of 

securities and funds associated with 

security-based swap transactions in 

ICC’s custody or control, or for which 

ICC is responsible. The proposed 

changes to the ICC Rules are consistent 

with the current calculation of Mark-toMarket Margin and related operational 

practices and are intended to more 

clearly reflect the legal characterization 

of Mark-to-Market Margin payments as 

settlement rather than collateral 

payments. The proposed changes are 

designed to add certainty to ICC’s Rules 

by incorporating clarifying language and 

changes to avoid a potential 

mischaracterization of Mark-to-Market 

Margin payments. The proposed 

revisions will provide market 

participants with certainty surrounding 

ICC’s treatment of Mark-to-Market 

Margin, which will facilitate 

compliance with market participants’ 

own capital requirements and therefore 

further the public interest. As such, the 

proposed changes provide additional 

clarity and transparency in the ICC 

Rules and are designed to promote the 

prompt and accurate clearance and 

settlement of securities transactions, 

derivatives agreements, contracts, and 

transactions within the meaning of 

Section 17A(b)(3)(F) 8 of the Act. 

(B) Clearing Agency’s Statement on 

Burden on Competition 

ICC does not believe the proposed 

rule changes would have any impact, or 

impose any burden, on competition. 

The changes, which further clarify that 

payments of Mark-to-Market Margin 

represent settlement rather than 

collateral payments, result in no 

operational changes and apply 

uniformly across all market participants. 

Therefore, ICC does not believe the 

proposed rule changes impose any 

burden on competition that is 

inappropriate in furtherance of the 

purposes of the Act. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change, Security-Based Swap 

Submission, or Advance Notice 

Received From Members, Participants or 

Others 

Written comments relating to the 

proposed rule change have not been 

solicited or received. ICC will notify the 

Commission of any written comments 

received by ICC. 

III. Date of Effectiveness of the 

Proposed Rule Change, Security-Based 

Swap Submission, or Advance Notice 

and Timing for Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the self-regulatory organization 

consents, the Commission will: 

(A) By order approve or disapprove 

such proposed rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be 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, security-based swap 

submission, or advance notice 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– 

ICC–2018–006 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–ICC–2018–006. 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, security-based swap 

submission, or advance notice that are 

filed with the Commission, and all 

written communications relating to the 

proposed rule change, security-based 

swap submission, or advance notice 

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 

filings will also be available for 

inspection and copying at the principal 

office of ICE Clear Credit and on ICE 

Clear Credit’s website at https://

www.theice.com/clear-credit/regulation. 

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–ICC–2018–006 and 

should be submitted on or before July 

20, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–13985 Filed 6–28–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83514; File No. SR–GEMX– 

2018–22) 

Self-Regulatory Organizations; Nasdaq 

GEMX, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Relocate the 

Exchange’s Rules Pertaining to CoLocation and Direct Connectivity 

June 25, 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 13, 

2018, Nasdaq GEMX, LLC (‘‘GEMX’’ 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 


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Federal Register / Vol. 83, No. 126 / Friday, June 29, 2018 / Notices 30805 

3Recently, the Exchange added a shell structure 

to its Rulebook with the purpose of improving 

efficiency and readability and to align its rules 

closer to those of its five sister exchanges: The 

Nasdaq Stock Exchange, LLC; Nasdaq BX, Inc.; 

Nasdaq PHLX, LLC; Nasdaq ISE, LLC; and Nasdaq 

MRX, LLC (together with GEMX, the ‘‘Affiliated 

Exchanges’’). See Securities Exchange Act Release 

No. 82171 (November 29, 2017), 82 FR 57516 

(December 5, 2017) (SR–GEMX–2017–54). 

4The Exchange notes that as a consequence of 

this proposal, it will list its fees, in part, in Section 

IV of the Rulebook and, in part, in General 8. 

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

6 15 U.S.C. 78f(b)(5). 

7 15 U.S.C. 78s(b)(3)(A). 

8 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. 

9 17 CFR 240.19b–4(f)(6). 

10 17 CFR 240.19b–4(f)(6)(iii). 

11For purposes only of waiving the 30-day 

operative delay, the Commission also has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

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 relocate the 

Exchange’s rules pertaining to colocation and direct connectivity, which 

are presently at Section IV, subsections 

D (co-location) and E–G (direct 

connectivity) of the Exchange’s 

Schedule of Fees, to the Exchange’s new 

rulebook shell, entitled ‘‘General 

Rules,’’ at new General 8 

(‘‘Connectivity’’), Sections 1 and 2, 

respectively. 

The text of the proposed rule change 

is available on the Exchange’s website at 

http://nasdaqgemx.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 relocate its 

rules governing co-location and direct 

connectivity services, which presently 

comprise Section IV, subsections D (colocation) and E–G (direct connectivity) 

of the Exchange’s Schedule of Fees. The 

Exchange proposes to establish, within 

its new rulebook shell,3 a new General 

8 heading, entitled ‘‘Connectivity,’’ to 

renumber Section IV, subsection D as 

Section 1 thereunder, and to renumber 

Section IV, subsections E, F, and G as 

Section 2(a), (b), and (c) thereunder.4

The Exchange also proposes to update 

internal cross-references in the 

renumbered Rules. 

The Exchange considers it appropriate 

to relocate these Rules to better organize 

its Rulebook. The other Affiliated 

Exchanges intend to propose similar 

reorganizations of their co-location and 

direct connectivity rules so that these 

rules will be harmonized among all of 

the Affiliated Exchanges. 

The relocation of the co-location and 

direct connectivity rules is part of the 

Exchange’s continued effort to promote 

efficiency and conformity of its 

processes with those of its Affiliated 

Exchanges. The Exchange believes that 

moving the co-location and direct 

connectivity rules to their new location 

will facilitate the use of the Rulebook by 

Members of the Exchange who are 

members of other Affiliated Exchanges. 

Moreover, the proposed changes are of 

a non-substantive nature and will not 

amend the relocated rules other than to 

update their numbers and make 

conforming cross-reference changes. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,5 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,6

in particular, in that it is designed to 

promote just and equitable principles of 

trade, to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general to protect 

investors and the public interest, by 

improving the way its Rulebook is 

organized, providing ease of reference in 

locating co-location and direct 

connectivity rules, and harmonizing the 

Exchange’s Rules with those of the other 

Affiliated Exchanges. As previously 

stated, the proposed Rule relocation is 

non-substantive. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on intermarket or intramarket competition that is not necessary 

or appropriate in furtherance of the 

purposes of the Act. The proposed 

changes do not impose a burden on 

competition because, as previously 

stated, they (i) are of a non-substantive 

nature, (ii) are intended to harmonize 

the Exchange’s rules with those of its 

Affiliated Exchanges, and (iii) are 

intended to organize the Rulebook in a 

way that it will ease the Members’ 

navigation and reading of the rules 

across the Affiliated Exchanges. 

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) of the Act 7 and Rule 19b– 

4(f)(6) thereunder.8

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act 9 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6)(iii) 10

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 

requested that the Commission waive 

the 30-day operative delay so that the 

proposed rule change may become 

operative upon filing. The proposed rule 

change merely relocates the co-location 

and direct connectivity rules in the 

Exchange’s Schedule of Fees and 

updates rule cross-references. 

Accordingly, the Commission believes 

that waiver of the 30-day operative 

delay is consistent with the protection 

of investors and the public interest and 

hereby waives the operative delay and 

designates the proposed rule change 

operative upon filing.11

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 


sradovich on DSK3GMQ082PROD with NOTICES
30806 Federal Register / Vol. 83, No. 126 / Friday, June 29, 2018 / Notices 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Each capitalized term not otherwise defined 

herein has its respective meaning as set forth in the 

Rules, By-Laws and Organization Certificate of The 

Depository Trust Company (‘‘Rules’’), available at 

http://www.dtcc.com/∼/media/Files/Downloads/ 

legal/rules/dtc_rules.pdf. 

4Available at http://www.dtcc.com/∼/media/ 

Files/Downloads/legal/issue-eligibility/eligibility/ 

operational-arrangements.pdf. 

5Pursuant to the Rules, the term ‘‘Procedures’’ 

means the Procedures, service guides, and 

regulations of DTC adopted pursuant to Rule 27, as 

amended from time to time. See Rule 1, Section 1, 

supra note 3, at 13. 

6See Securities Exchange Act Release No. 39852 

(April 10, 1998), 63 FR 19545 (April 20, 1998) 

(‘‘1998 Release’’). 

7See OA, supra note 4 at 1–3 (setting forth 

requirements for Securities to be made eligible for 

DTC book-entry services). 

8See OA, supra note 4 at 43–44. 

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 

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– 

GEMX–2018–22 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–GEMX–2018–22. 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–GEMX–2018–22, and 

should be submitted on or before July 

20, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Eduardo A. Aleman 

Assistant Secretary. 

[FR Doc. 2018–13986 Filed 6–28–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83511; File No. SR–DTC– 

2018–005] 

Self-Regulatory Organizations; The 

Depository Trust Company; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend the 

DTC Operational Arrangements To Add 

Clarifying Text Relating to the 

Processing of Unit Investment Trust 

Securities Through the DTC Investor’s 

Voluntary Redemptions and Sales 

Service 

June 25, 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 20, 

2018, The Depository Trust Company 

(‘‘DTC’’) 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 clearing 

agency. The Commission is publishing 

this notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

The proposed rule change 3 consists of 

proposed modifications to the DTC 

Operational Arrangements (Necessary 

for Securities to Become and Remain 

Eligible for DTC Services) (‘‘OA’’) 4 to 

provide enhanced transparency within 

DTC’s Procedures 5 relating to 

requirements for Securities issued by 

unit investment trusts (‘‘Units’’) to be 

processed through DTC’s Investor’s 

Voluntary Redemptions and Sales 

Service (‘‘IVORS’’), as described below. 

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

In its filing with the Commission, the 

clearing agency 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 

clearing agency has prepared 

summaries, set forth in sections A, B, 

and C below, of the most significant 

aspects of such statements. 

(A) Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

1. Purpose 

The proposed rule change consists of 

proposed modifications to the OA to 

provide enhanced transparency within 

the DTC Procedures relating to DTC’s 

requirements for Units to be processed 

through IVORS, as discussed below. 

Background 

A unit investment trust is an 

investment company that buys and 

holds a generally fixed portfolio of 

stocks, bonds or other securities for a 

fixed period of time. Units are sold by 

a sponsor, which is the issuer of the 

Units, to investors who receive a share 

of principal and dividends, or interest. 

When Units mature, an investor may 

redeem matured Units with the transfer 

agent for the Units, or sell Units to the 

sponsor for a cash payment (such 

redemptions and sales jointly referred to 

herein as ‘‘Redemptions’’).6 The sponsor 

may also allow a holder of maturing 

Units to ‘‘rollover’’ the Units by 

redeeming the maturing Units for a 

comparable issue of Units (‘‘Rollover’’). 

Units that meet DTC’s eligibility 

requirements 7 may be Deposited for 

book-entry services at DTC and be held 

by Participants on behalf of investors. 

Redemptions and Rollovers of Units 

held at DTC must be processed through 

IVORS.8 IVORS allows a Participant to 


sradovich on DSK3GMQ082PROD with NOTICES