Federal Register / Vol. 83, No. 128 / Tuesday, July 3, 2018 / Notices 31229 

12 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the Exchange to give the 

Commission written notice of the Exchange’s intent 

to file the proposed rule change along with a brief 

description and the 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 pre-filing requirement. 

13 17 CFR 240.19b–4(f)(6)(iii). 

14See Securities Exchange Act Release No. 61061 

(November 24, 2009), 74 FR 62857 (December 1, 

2009) (SR–NYSEArca–2009–44). 

15For purposes only of waiving the operative 

delay for this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

16 15 U.S.C. 78s(b)(2)(B). 17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

5See EDGX Rules 11.6(n)(7), 11.8(b)(7) and 

11.8(d)(5); see also Securities Exchange Act Release 

No. 80841 (June 1, 2017), 82 FR 26559 (June 7, 

2017), (Notice of Filing and Immediate 

Effectiveness To Add a New Optional Order 

Instruction Known as Non-Displayed Swap). 

6See Nasdaq Rule 4703(m) (defining the Trade 

Now order modifier); see also Securities Exchange 

Act Release No. 79282 (November 10, 2016), 81 FR 

81219 (November 17, 2016) (Notice of Filing and 

Immediate Effectiveness of Proposed Rule change to 

Amend Rule 4702 and Rule 4703 to Add a ‘‘Trade 

Now’’ Instruction to Certain Order Types). 

7See Arca Rule 7.31–E(d)(2)(B) (describing the 

Non-Display Remove Modifier); see also Securities 

Exchange Act Release No. 76267 (October 26, 2015), 

80 FR 66951 (October 30, 2015) (Order Approving 

Proposed Rule change Adopting New Equity 

Trading Rules Relating to Orders and Modifiers and 

Retail Liquidity Program To Reflect the 

Implementation of Pillar, the Exchange’s New 

Trading Technology Platform). 

the date of the filing.12 However, 

pursuant to Rule 19b–4(f)(6)(iii),13 the 

Commission may 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 proposal may 

become operative immediately upon 

filing. The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest 

because doing so will allow the Pilot 

Program to continue without 

interruption in a manner that is 

consistent with the Commission’s prior 

approval of the extension and expansion 

of the Pilot Program and will allow the 

Exchange and the Commission 

additional time to analyze the impact of 

the Pilot Program.14 Accordingly, the 

Commission designates the proposed 

rule change as operative upon filing 

with the Commission.15

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) 16 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– 

Phlx–2018–50 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–Phlx–2018–50. 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–Phlx–2018–50 and should 

be submitted on or before July 24, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–14291 Filed 7–2–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83536; File No. SR– 

CboeBYX–2018–009] 

Self-Regulatory Organizations; Cboe 

BYX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change to Rule 11.9, 

Orders and Modifiers 

June 28, 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 18, 

2018, Cboe BYX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BYX’’) 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 Exchange has 

designated this proposal as a ‘‘noncontroversial’’ proposed rule change 

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

Act 3 and Rule 19b–4(f)(6) thereunder,4

which renders it effective upon filing 

with the Commission. 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 filed a proposal to add 

a new optional order type modifier to be 

known as Non-Displayed Swap. The 

proposed amendments are substantively 

identical to the rules of Cboe EDGX 

Exchange, Inc. (‘‘EDGX’’) 5 and 

substantially similar to the rules of the 

Nasdaq Stock Market LLC (‘‘Nasdaq’’) 6

and NYSE Arca, Inc. (‘‘Arca’’).7


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8See supra note 5. 

9See supra notes 6 and 7. 

10See Exchange Rule 11.9(c)(11). 

11See Exchange Rule 1.5(e). 

12See Exchange Rule 1.5(cc). 

13Under Exchange Rule 11.9(c)(6), a BYX Post 

Only Order will remove contra-side liquidity from 

the BYX Book if the order is an order to buy or sell 

a security priced below $1.00 or if the value of such 

execution when removing liquidity equals or 

exceeds the value of such execution if the order 

instead posted to the BYX Book and subsequently 

provided liquidity, including the applicable fees 

charged or rebates provided. To determine at the 

time of a potential execution whether the value of 

such execution when removing liquidity equals or 

exceeds the value of such execution if the order 

instead posted to the BYX Book and subsequently 

provided liquidity, the Exchange will use the 

highest possible rebate paid and highest possible 

fee charged for such executions on the Exchange. 

14See Exchange Rule 11.13(a)(4)(C). 

15 Id. [sic] 

16 In the event the incoming order with a Post 

Only instruction was to be displayed, it would post 

and display at $10.03 and the resting buy order 

with a Non-Displayed instruction would not 

execute against it or subsequent incoming sell 

orders at $10.03 for so long as the sell order was 

displayed on the Exchange. See Exchange Rule 

11.13(a)(4)(C) and (D). 

17Should the limit order to buy at $10.03 with 

time priority (i.e., Order A) be displayed on the 

BYX Book, the incoming BYX Post Only Order to 

sell at $10.03 will not execute against the nondisplayed buy order with a NDS instruction because 

displayed orders have priority over non-displayed 

orders. In such a case, the incoming limit order 

would be handled as it is today in accordance with 

existing Exchange rules. See, e.g., Exchange Rules 

11.9 and 11.13(a). 

18The execution occurs here because the value of 

the execution against the buy order when removing 

liquidity exceeds the value of such execution if the 

order instead posted to the BYX Book and 

subsequently provided liquidity, including the 

applicable fees charged or rebates provided. See 

supra note 13. 19See Exchange Rule 11.12(a)(5). 20See Exchange Rule 11.9(a)(1). 

21See Exchange Rule 11.9(c)(11). 

22See Exchange Rule 11.9(c)(9). 

23See Exchange Rules 11.9(a)(2), 11.9(c)(1) and 

11.9(c)(16), respectively. 

The text of the proposed rule change 

is available at the Exchange’s website at 

www.markets.cboe.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 parts 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 a new 

optional order type modifier to be 

known as Non-Displayed Swap. The 

proposed amendments are substantively 

identical to the rules of EDGX 8 and 

substantially similar to the rules of 

Nasdaq and Arca.9

The proposed Non-Displayed Swap 

(‘‘NDS’’) instruction would provide 

resting limit orders that are not 

displayed on the Exchange 10 and MidPoint Peg Orders resting on the BYX 

Book 11 with a greater ability to receive 

an execution when that resting order is 

locked by an incoming order (e.g., the 

price of the resting non-displayed order 

is equal to the price of the incoming 

order that is to be placed on the BYX 

Book). The NDS instruction would be an 

optional order instruction that would 

allow Users 12 to have their resting nondisplayed orders execute against an 

incoming order with a Post Only 

instruction rather than have it be locked 

by the incoming order. NDS would be 

defined as an instruction on an order 

resting on the BYX Book that, when 

locked by an incoming order with a Post 

Only instruction that does not remove 

liquidity pursuant to paragraph (c)(6) of 

Exchange Rule 11.9,13 causes such order 

to be converted to an executable order 

that removes liquidity against such 

incoming order. An NDS instruction 

would only be eligible for inclusion on 

a non-displayed limit order or a MidPoint Peg Order. An order with a NDS 

instruction would not be eligible for 

routing pursuant to Exchange Rule 

11.13, Order Execution and Routing. 

The proposed NDS instruction assists in 

the avoidance of an internally locked 

BYX Book (though such lock would not 

be displayed by the Exchange) 14 by 

facilitating the execution of orders that 

would otherwise lock each other. 

The following example illustrates the 

operation of an order with a NDS 

instruction. Assume the National Best 

Bid and Offer is $10.00 by $10.04. There 

is a non-displayed limit order to buy 

resting on the BYX Book at $10.03. A 

BYX Post Only Order to sell priced at 

$10.03 is entered. Under current 

behavior, the incoming sell order 

marked as Post Only would post to the 

BYX Book because it would not receive 

sufficient price improvement.15 This 

would result in the BYX Book being 

internally locked.16 As proposed, if the 

non-displayed limit order to buy also 

included a NDS instruction, the orders 

would instead execute against each 

other at $10.03, with the resting buy 

order with the NDS instruction 

becoming the remover of liquidity and 

the incoming BYX Post Only Order to 

sell becoming the liquidity provider. 

Assume the same facts as above, but 

that a non-displayed limit order to buy 

at $10.03 (‘‘Order A’’) is also resting on 

the BYX Book with time priority ahead 

of the non-displayed limit order 

mentioned above (‘‘Order B’’). Like 

above, a BYX Post Only Order to sell 

priced at $10.03 is entered. Under 

current behavior, the incoming BYX 

Post Only Order to sell would post to 

the BYX Book because the value of such 

execution against the resting buy 

interest when removing liquidity does 

not equal or exceed the value of such 

execution if the order instead posted to 

the BYX Book and subsequently 

provided liquidity, including the 

applicable fees charged or rebates 

provided. As proposed, if Order B also 

included a NDS instruction, the 

incoming sell order would execute 

against Order B and such order would 

become the remover of liquidity and the 

BYX Post Only Order to sell would 

become the liquidity provider. In such 

case, Order A cedes time priority to 

Order B because Order A did not also 

include a NDS instruction and thus the 

User that submitted Order A did not 

indicate the preference to be treated as 

the remover of liquidity in favor of an 

execution; instead, by not using NDS, a 

User indicates the preference to remain 

posted on the BYX Book as a liquidity 

provider.17 However, if the incoming 

sell order was priced at $10.02, it would 

receive sufficient price improvement to 

execute upon entry against all resting 

buy limit orders in time priority at 

$10.03.18

If the order with a NDS instruction is 

only partially executed, the unexecuted 

portion of that order remains on the 

BYX Book and maintains its priority, as 

is the case today for an order that is 

partially executed and not cancelled by 

the User.19 The Exchange is proposing 

to make the NDS instruction available to 

limit orders 20 that are not displayed on 

the Exchange 21 and MidPoint Peg 

Orders.22 Because the NDS instruction 

would be only available to limit orders 

not displayed on the Exchange and to 

MidPoint Peg Orders, the NDS 

instruction would not be available to 

other order types provided by the 

Exchange under its Rule 11.9, such as 

BYX Market Orders, Reserve Orders, 

and Market Maker Peg Orders,23 as the 

NDS instruction would be inconsistent 

with the use of those order types. The 

NDS instruction could, however, be 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 128 / Tuesday, July 3, 2018 / Notices 31231 

24See Exchange Rules 11.9(c)(5), 11.9(c)(8)(A), 

11.9(c)(8)(B) and 11.9(c)(10), respectively. 

25See Nasdaq Rule 4703(m). See also Securities 

and Exchange Act Release No. 79282 (November 10, 

2016), 81 FR 81219 (November 17, 2016) (SR– 

Nasdaq–2016–156) (Notice of Filing and Immediate 

Effectiveness of Proposed Rule Change to Amend 

Rule 4703 and Rule 4703 to add a ‘‘Trade Now’’ 

Instruction to Certain Order Types). 

26See Arca Rule 7.31–E(d)(2)(B). See also 

Securities and Exchange Act Release No. 76267 

(October 26, 2015), 80 FR 66951 (October 30, 2015) 

(SR–NYSEArca–2015–56) (Order Approving 

Proposed Rule Change, and Notice of Filing and 

Order Granting Accelerated Approval of 

Amendment Nos. 1 and 2 Thereto, Adopting New 

Equity Trading Rules Relating to Orders and 

Modifiers and the Retail Liquidity Program To 

Reflect the Implementation of Pillar, the Exchange’s 

New Trading Technology Platform) (including the 

Non-Display Remove Modifier). 

27See Arca Rule 7.31–E(d)(2)(b). 

28Arca provides their Non-Display Remove 

Modifier to their Mid-Point Liquidity Orders (‘‘MPL 

Orders’’) designated Day and MPL–ALO Orders and 

Arca Only Orders. Nasdaq’s Trade Now 

functionality is available to Price to Comply Orders, 

Price to Display Orders, Non-Displayed Orders, 

Post-Only Orders, Midpoint Peg Post-Only Orders, 

and Market Maker Peg Orders. To the extent the 

NDS instruction is only available to non-displayed 

limit orders and MidPoint Peg Orders, the Exchange 

notes that the NDS instruction will apply to 

different order types than Arca’s Non-Display 

Remove Modifier and Nasdaq’s Trade Now 

functionality. 

29 15 U.S.C. 78f(b). 

30 15 U.S.C. 78f(b)(5). 

31See supra notes 5–7. 

32 15 U.S.C. 78s(b)(3)(A)(iii). 

33 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. 

34 17 CFR 240.19b–4(f)(6)(iii). 

35For 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). 

combined with other instructions also 

available to non-displayed limit orders, 

such as the Minimum Quantity Order 

instruction, the Primary Pegged Order 

instruction, the Market Pegged Order 

instruction or the Discretionary Order 

instruction.24

The Exchange notes that similar 

functionality exists on Nasdaq and Arca. 

Nasdaq refers to their functionality as 

the ‘‘Trade Now’’ instruction 25 and 

Arca refers to their functionality as the 

‘‘Non-Display Remove Modifier’’.26 On 

Arca, a Limit Non-Displayed Order may 

be designated with a Non-Display 

Remove Modifier. If so designated, a 

Limit Non-Displayed Order to buy (sell) 

will trade as the remover of liquidity 

with an incoming Adding Liquidity 

Only Order (‘‘ALO Order’’) to sell (buy) 

that has a working price equal to the 

working price of the Limit NonDisplayed Order.27 On Nasdaq, Trade 

Now is an order attribute that allows a 

resting order that becomes locked by an 

incoming Displayed Order to execute 

against the available size of the contraside locking order as a liquidity taker, 

and any remaining shares of the resting 

order will remain posted on the Nasdaq 

Book with the same priority.28 Nasdaq 

requires the contra-side order to be 

display eligible, while the Exchange 

proposes to enable an order with a NDS 

instruction to remove liquidity 

regardless of whether the incoming 

order would have ultimately been 

eligible for display consistent with 

Arca’s Non-Display Remove Modifier. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 29 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 30

in particular, in that it is designed to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities, 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 offering Users 

optional functionality that will facilitate 

the execution of orders that would 

otherwise remain unexecuted, thereby 

increasing the efficient functioning of 

the Exchange. The NDS instruction is an 

optional feature that is intended to 

reflect the order management practices 

of various market participants. The 

proposed NDS instruction assists in the 

avoidance of an internally locked BYX 

Book by facilitating the execution of 

orders that would otherwise post, or 

remain posted, to the BYX Book. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will result in 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act, as amended. 

On the contrary, the Exchange believes 

the proposed rule change promotes 

competition because it will enable the 

Exchange to offer functionality 

substantially similar to that offered by 

Nasdaq and Arca (in addition to the fact 

that such functionality is identical to 

that already offered by the Exchange’s 

affiliate, EDGX).31 Therefore, the 

Exchange does not believe the proposed 

rule change will result in any burden on 

intermarket competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. As the NDS 

feature will be equally available to all 

Users, the Exchange does not believe the 

proposed rule change will result in any 

burden on intramarket competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No comments were solicited or 

received on the proposed rule change. 

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 32 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.33

A proposed rule change filed under 

Rule 19b–4(f)(6) normally does not 

become operative for 30 days after the 

date of the filing. However, Rule 19b– 

4(f)(6)(iii) 34 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. In its 

filing, BYX requested that the 

Commission waive the 30-day operative 

delay so that the Exchange can 

implement the proposed rule change 

promptly after filing. The Exchange 

noted that the proposed functionality is 

optional, may lead to increased order 

interaction on the Exchange, and is 

identical to functionality already 

provided on EDGX. The Commission 

believes that waiver of the 30-day 

operative delay is consistent with the 

protection of investors and the public 

interest, as such waiver will permit the 

Exchange to update its rule without 

delay so that it provides the same 

optional NDS functionality as is 

available on EDGX and potentially 

increase order interaction on the 

Exchange. Accordingly, the Commission 

waives the 30-day operative delay and 

designates the proposed rule change 

operative upon filing.35

At any time within 60 days of the 

filing of the proposed rule change, the 


sradovich on DSK3GMQ082PROD with NOTICES
31232 Federal Register / Vol. 83, No. 128 / Tuesday, July 3, 2018 / Notices 

36 17 CFR 200.30–3(a)(12) and (59). 

1 17 CFR 242.612(c). 

2See Securities Exchange Act Release No. 73702, 

79 FR 72049 (December 4, 2014) (SRBX–2014–048) 

(‘‘RPI Approval Order’’). 

3See id. 

4See Securities Exchange Act Release No. 76490 

(November 20, 2015), 80 FR 74165 (November 27, 

2015) (SR–BX–2015–073). 

5See Securities Exchange Act Release No. 79446 

(December 1, 2016), 81 FR 88290 (December 7, 

2016) (SR–BX–2016–065). 

6See Securities Exchange Act Release No. 82192 

(December 1, 2017), 82 FR 57809 (December 7, 

2017) (SR–BX–2017–055). 

7See Letter from Jeffrey S. Davis, Vice President 

and Deputy General Counsel and Secretary, Nasdaq 

BX, Inc. to Eduardo A. Aleman, Assistant Secretary, 

Securities and Exchange Commission dated June 

21, 2018 (‘‘BX Letter’’). 

8See SR–BX–2018–026. 

9See, e.g., BX Letter at 3; RPI Approval Order, 

supra note 2. 

10See, e.g., id.; RPI Approval Order, supra note 

2. 

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– 

CboeBYX–2018–009 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–CboeBYX–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 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–CboeBYX–2018–009, and 

should be submitted on or before July 

24, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.36

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–14296 Filed 7–2–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83542; File No. SR–BX– 

2014–048] 

Self-Regulatory Organizations; Nasdaq 

BX; Order Granting an Extension to 

Limited Exemptions From Rule 612(c) 

of Regulation NMS in Connection With 

the Exchange’s Retail Price 

Improvement Program Until December 

31, 2018 

June 28, 2018. 

On November 28, 2014 the Securities 

and Exchange Commission 

(‘‘Commission’’) issued an order 

pursuant to its authority under Rule 

612(c) of Regulation NMS (‘‘Sub-Penny 

Rule’’) 1 that granted Nasdaq BX, Inc. 

(‘‘BX’’ or ‘‘Exchange’’) a limited 

exemption from the Sub-Penny Rule in 

connection with the operation of the 

Exchange’s Retail Price Improvement 

Program (the ‘‘RPI Program’’).2 The 

limited exemption was granted 

concurrently with the Commission’s 

approval of the Exchange’s proposal to 

adopt its RPI Program for a one-year 

pilot term.3 On November 20, 2015, the 

Commission extended the temporary 

exemption until December 2016 

concurrently with an immediately 

effective filing that extended the 

operation of the RPI Program until 

December 1, 2016.4 On December 1, 

2016, the Commission extended the 

temporary exemption until December 1, 

2017 concurrently with an immediately 

effective filing that extended the 

operation of the RPI Program until 

December 1, 2017.5 On December 1, 

2017, the Commission again extended 

the temporary exemption until June 30, 

2018 concurrently with an immediately 

effective filing that extended the 

operation of the RPI Program until 

December 1, 2017.6

The Exchange now seeks to extend 

the exemption until December 31, 

2018.7 The Exchange’s request was 

made in conjunction with an 

immediately effective filing that extends 

the operation of the RPI Program 

through the same date.8 In its request to 

extend the exemption, the Exchange 

notes that given the gradual 

implementation of the RPI Program and 

the preliminary participation and 

results, extending the exemption would 

provide additional opportunities for 

greater participation and assessment of 

the results.9 Accordingly, the Exchange 

has asked additional time to allow it 

and the Commission to analyze data 

concerning the RPI Program, which the 

Exchange committed to provide to the 

Commission.10 For this reason and the 

reasons stated in the RPI Approval 

Order originally granting the limited 

exemption, the Commission, pursuant 

to its authority under Rule 612(c) of 

Regulation NMS, finds that pursuant to 

its authority under Rule 612(c) of 

Regulation NMS, extending the 

exemption is appropriate in the public 

interest and consistent with the 

protection of investors. 

Therefore, it is hereby ordered that, 

pursuant to Rule 612(c) of Regulation 

NMS, the Exchange is granted a limited 

exemption from Rule 612 of Regulation 

NMS that allows the Exchange to accept 

and rank orders priced equal to or 

greater than $1.00 per share in 

increments of $0.001, in connection 

with the operation of its RPI Program, 

until December 31, 2018. 

The limited and temporary exemption 

extended by this Order is subject to 

modification or revocation if at any time 

the Commission determines that such 

action is necessary or appropriate in 

furtherance of the purposes of the 

Securities Exchange Act of 1934. 

Responsibility for compliance with any 

applicable provisions of the Federal 

securities laws must rest with the 


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