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 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 128 / Tuesday, July 3, 2018 / Notices 31233 

11 17 CFR 200.30–3(a)(83). 

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

2 17 CFR 240.19b–4. 

3See Exchange Act Release No. 82356 (December 

19, 2017), 82 FR 61089 (December 26, 2017) (SR– 

GEMX–2017–57). 

4 15 U.S.C. 78f(b). 

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

6 15 U.S.C. 78f(b)(8). 

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

8 17 CFR 240.19b–4(f)(6). 

persons relying on the exemptions that 

are the subject of this Order. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–14288 Filed 7–2–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83533; File No. SR–GEMX– 

2018–23] 

Self-Regulatory Organizations; Nasdaq 

GEMX, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Extend the 

Exchange’s Penny Pilot Program 

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 25, 

2018, Nasdaq GEMX, LLC (‘‘GEMX’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘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 amend its 

rules to extend a pilot program to quote 

and to trade certain options classes in 

penny increments (‘‘Penny Pilot 

Program’’). 

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 

Under the Penny Pilot Program, the 

minimum price variation for all 

participating options classes, except for 

the Nasdaq-100 Index Tracking Stock 

(‘‘QQQQ’’), the SPDR S&P 500 Exchange 

Traded Fund (‘‘SPY’’) and the iShares 

Russell 2000 Index Fund (‘‘IWM’’), is 

$0.01 for all quotations in options series 

that are quoted at less than $3 per 

contract and $0.05 for all quotations in 

options series that are quoted at $3 per 

contract or greater. QQQQ, SPY and 

IWM are quoted in $0.01 increments for 

all options series. The Penny Pilot 

Program is currently scheduled to 

expire on June 30, 2018.3 The Exchange 

proposes to extend the Penny Pilot 

Program through December 31, 2018, 

and to provide a revised date for adding 

replacement issues to the Penny Pilot 

Program. The Exchange proposes that 

any Penny Pilot Program issues that 

have been delisted may be replaced on 

the second trading day following July 1, 

2018. The replacement issues will be 

selected based on trading activity for the 

most recent six month period excluding 

the month immediately preceding the 

replacement (i.e., beginning December 

1, 2017, and ending May 31, 2018). This 

filing does not propose any substantive 

changes to the Penny Pilot Program: All 

classes currently participating will 

remain the same and all minimum 

increments will remain unchanged. The 

Exchange believes the benefits to public 

customers and other market participants 

who will be able to express their true 

prices to buy and sell options have been 

demonstrated to outweigh any increase 

in quote traffic. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder that 

are applicable to a national securities 

exchange, and, in particular, with the 

requirements of Section 6(b) of the Act.4

Specifically, the proposed rule change is 

consistent with Section 6(b)(5) of the 

Act,5 because it is designed to promote 

just and equitable principles of trade, 

remove impediments to and perfect the 

mechanisms of a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest. In particular, the 

proposed rule change, which extends 

the Penny Pilot Program for an 

additional six months, will enable 

public customers and other market 

participants to express their true prices 

to buy and sell options to the benefit of 

all market participants. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

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

the Act,6 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. Specifically, 

the Exchange believes that, by extending 

the expiration of the Penny Pilot 

Program, the proposed rule change will 

allow for further analysis of the Penny 

Pilot Program and a determination of 

how the Penny Pilot Program should be 

structured in the future. In doing so, the 

proposed rule change will also serve to 

promote regulatory clarity and 

consistency, thereby reducing burdens 

on the marketplace and facilitating 

investor protection. 

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 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 7 and Rule 

19b–4(f)(6) thereunder.8 Because the 

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 

prior to 30 days from the date on which 

it was filed, or such shorter time as the 

Commission may designate, if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act and Rule 19b–4(f)(6)(iii) 

thereunder. 


sradovich on DSK3GMQ082PROD with NOTICES