31806 Federal Register / Vol. 83, No. 131 / Monday, July 9, 2018 / Notices 

9See Letter, Supra note 3. 

10 15 U.S.C. 78s(b)(1). 

11 17 CFR 200.30–3(a)(73). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4 15 U.S.C. 78s(b)(1). 

5 17 CFR 240.19b–4. 

6 15 U.S.C. 78s(b)(3)(A). 

7 17 CFR 240.19b–4. 

did not receive comment letters 

concerning the rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

On June 18, 2018, the CFTC notified 

NFA of its determination not to review 

the proposed rule change.9 The 

proposed rule change will become 

effective on July 18, 2018. 

At any time within 60 days of the date 

of effectiveness of the proposed rule 

change, the Commission, after 

consultation with the CFTC, may 

summarily abrogate the proposed rule 

change and require that the proposed 

rule change be refiled in accordance 

with the provisions of Section 19(b)(1) 

of the Exchange Act.10

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 Exchange 

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– 

NFA–2018–03 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–NFA–2018–03. 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 NFA. 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 

publicly available. All submissions 

should refer to File Number SR–NFA– 

2018–03 and should be submitted on or 

before July 30, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–14669 Filed 7–6–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83586; File No. SR–IEX– 

2018–12] 

Self-Regulatory Organizations: 

Investors Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change To Amend 

Rule 11.420 Concerning the Order 

Audit Trail System Requirements To 

Make Conforming and Technical 

Changes 

July 2, 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 21, 

2018, the Investors Exchange LLC 

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

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the self-regulatory 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 

Pursuant to the provisions of Section 

19(b)(1) under the Act,4 and Rule 19b– 

4 thereunder,5 the Exchange is filing 

with the Commission a proposed rule 

change to amend Rule 11.420 

concerning the Order Audit Trail 

System (‘‘OATS’’) requirements to make 

conforming and technical changes. The 

Exchange has designated this rule 

change as ‘‘non-controversial’’ under 

Section 19(b)(3)(A) of the Act 6 and 

provided the Commission with the 

notice required by Rule 19b–4(f)(6) 

thereunder.7

The text of the proposed rule change 

is available at the Exchange’s website at 

www.iextrading.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 the 

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 these statement [sic] may be 

examined at the places specified in Item 

IV below. The self-regulatory 

organization 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange is proposing to make 

three changes to Rule 11.420 related to 

OATS reporting requirements to (1) 

amend Rule 11.420(a)(13) to permit 

members to route orders to two 

Reporting Members for a defined period 

of time provided certain conditions are 

met without losing the exception from 

the definition of ‘‘Reporting Member’’ in 

conformance to comparable provisions 

of the Financial Industry Regulatory 

Authority (‘‘FINRA’’) Rule 7410; (2) 

amend rule citations in Rule 11.420(c) 

to correct [sic] citation to FINRA Rule 

7430 to FINRA Rule 4590; and (3) 

amend the rule reference in Rule 

11.420(g) to correct the reference to 

FINRA Rule 7470A to FINRA Rule 7470. 

Each proposed change is described 

below. 

First Change 

IEX Rule 11.420 imposes an 

obligation on Exchange Members to 

record in electronic form and report to 

FINRA on a daily basis certain 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 131 / Monday, July 9, 2018 / Notices 31807 

8See Securities Exchange Act Release No. 72191 

(May 20, 2014), 79 FR 30219 (May 27, 2014) (SR– 

FINRA–2014–024). 

9 Id. At 30220. 

10See Nasdaq Rule 7410A(o)(1)(A)(ii). See also 

Securities Exchange Act Release No. 83115 (April 

26, 2018), 83 FR 19384 (May 2, 2018) (SR– 

NASDAQ–2018–030). 

11See supra note 8. 

12 15 U.S.C. 78f. 

13 15 U.S.C. 78f(b)(5). 

information with respect to orders 

originated, received, transmitted, 

modified, cancelled or executed by 

Exchange Members in securities traded 

on IEX. FINRA’s OATS captures this 

order information and integrates it with 

quote and transaction information to 

create a time-sequenced record of 

orders, quotes and transactions. This 

information is used by FINRA staff to 

conduct surveillance and investigations 

of IEX Members (and members of 

FINRA and certain other national 

securities exchanges) for potential 

violation of Exchange rules (or rules of 

another national securities exchange in 

the case of a member of such exchange), 

federal securities laws, and FINRA 

rules. 

In general, IEX Rule 11.420 applies to 

any IEX Member that is a ‘‘Reporting 

Member,’’ which is defined in IEX Rule 

11.420(a)(13) as a Member that receives 

or originates an order and has an 

obligation to record and report 

information under IEX Rule 11.420(d) 

and 11.420(e). However, under Rule 

11.420(a)(13)(A) a Member is not 

considered a Reporting Member in 

connection with an order if the 

following four criteria are met: 

• The Member engages in nondiscretionary order routing process, 

pursuant to which it immediately 

routes, by electronic or other means, all 

of its orders to a single receiving 

Reporting Member; 

• the Member does not direct and 

does not maintain control over 

subsequent routing or execution by the 

receiving Reporting Member; 

• the receiving Reporting Member 

records and reports all information 

required under IEX Rules 11.420(d) and 

11.420(e) with respect to the order; and 

• the Member has a written 

agreement with the receiving Reporting 

Member specifying the respective 

functions and responsibilities of each 

party to effect full compliance with the 

requirements of IEX Rules 11.420(d) and 

11.420(e). 

On May 12, 2014, FINRA amended 

FINRA Rule 7410(o)(1)(A) to allow a 

member to route its orders to two 

receiving Reporting Members, if two 

conditions were met.8 First, the orders 

are routed by the member to each 

receiving Reporting Member on a 

predetermined schedule approved by 

FINRA. Second, the FINRA member’s 

orders are routed to two receiving 

Reporting Members pursuant to the 

schedule for a time period not to exceed 

one year. The rule change permits 

FINRA members to continue to rely on 

the exception from the definition of 

Reporting Member if, for a limited time, 

the member routes orders to two 

different Reporting Members, provided 

the criteria are met. FINRA noted in 

adopting the change that the rule was 

intended to accommodate introducing 

firms that transition to a different 

clearing firm over time and, during the 

transition, route their orders two 

different clearing firms, both of which 

report the introducing firm’s 

information to OATS during the 

transition time.9 The Nasdaq Stock 

Market LLC (‘‘Nasdaq’’) recently 

amended its rules to conform to this 

FINRA rule change.10 The Exchange 

believes that this additional limited 

exception is appropriate for its 

Members, which likewise may 

encounter a transition to a clearing firm 

whereby it [sic] would no longer be 

eligible for the exception to the 

definition of Reporting Member. 

Accordingly, the Exchange is proposing 

to amend Rule 11.420(a)(13). 

Second Change 

The Exchange is proposing to correct 

a rule citation in Rule 11.420(c), which 

specifies the requirements for 

synchronization of Member business 

clocks, and states that IEX Members 

shall comply with FINRA Rule 7430 as 

if such Rule were part of IEX’s Rules. 

There is no FINRA Rule 7430, but rather 

the appropriate FINRA rule to cite to is 

FINRA Rule 4590 ‘‘Synchronization of 

Member Business Clocks.’’ The 

Exchange also notes that Nasdaq 

recently made a comparable change to 

Nasdaq Rule 7430A.11 Accordingly, the 

Exchange proposes to correct the 

erroneous citation in Rule 11.420(c). 

Third Change 

The Exchange is proposing to correct 

a rule citation in Rule 11.420(g), which 

provides that IEX may grant an 

exemption to the OATS order recording 

and data transmission requirements to a 

Member under specified circumstances. 

The title to the rule subsection 

incorrectly references FINRA Rule 

7470A. There is no FINRA Rule 7470A, 

but rather the appropriate FINRA rule to 

reference is FINRA Rule 7470 

‘‘Exemption to the Order Recording and 

Data Transmission Requirement.’’ 

Accordingly, the Exchange proposes to 

correct the erroneous reference in Rule 

11.420(g). 

2. Statutory Basis 

IEX believes that the proposed rule 

change is consistent with the provisions 

of Section 6(b) 12 of the Act in general, 

and furthers the objectives of Section 

6(b)(5) of the Act 13 in particular, in that 

it is designed to prevent fraudulent and 

manipulative acts and practices, 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 

harmonizing the Exchange’s OATS rules 

with those of FINRA, on which they are 

based. Consequently, the proposed 

changes will conform Exchange rules to 

changes made to corresponding FINRA 

rules, thus promoting application of 

consistent regulatory standards with 

respect to rules that FINRA enforces 

pursuant to its regulatory services 

agreement with the Exchange. With 

respect to the proposed amendment to 

Rule 11.420(a)(13)(A), the exemption 

will provide Exchange members the 

same flexibility to transition to a new 

clearing firm that FINRA members 

enjoy. The rule is intended to 

accommodate introducing firms that 

transition to a different clearing firm 

over time and, during the transition, 

route their orders to two different 

clearing firms, both of which report the 

introducing firm’s information to OATS 

during the transition time. Further, the 

change will also align the Exchange 

rulebook with FINRA’s in this regard, 

thereby eliminating potential 

complexity from FINRA’s work under a 

regulatory services agreement with the 

Exchange. 

With respect to the technical 

corrections to Rules 11.420(c) and 

11.420(g), the Exchange believes that 

these changes are consistent with the 

Act because they will prevent investor 

confusion that may be caused by 

incorrect rule citations in the Rules. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

IEX 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. The 

proposed changes align the Exchange’s 

rules with those of FINRA, which will 

assist it in its oversight work done 

pursuant to a regulatory services 

agreement, and makes [sic] technical 

corrections to the rules. Consequently, 

the Exchange does not believe that the 


sradovich on DSK3GMQ082PROD with NOTICES
31808 Federal Register / Vol. 83, No. 131 / Monday, July 9, 2018 / Notices 

14 15 U.S.C. 78s(b)(3)(A). 

15 17 CFR 240.19b–4(f)(6). 

16 Id. 

17 17 CFR 240.19b–4(f)(6)(iii). 

18For 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). 19 17 CFR 200.30–3(a)(12). 

proposed changes implicate competition 

at all. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

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 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 14 and Rule 19b– 

4(f)(6) thereunder.15

A proposed rule change filed 

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

Act 16 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6)(iii) 17

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 asked 

the Commission to waive the 30-day 

operative delay so that the proposal may 

become operative upon filing. The 

Commission does not believe that any 

new or novel issues are raised by the 

proposal; the proposal aligns IEX’s rule 

with the rule of Nasdaq and FINRA. The 

Commission believes the waiver of the 

operative delay is consistent with the 

protection of investors and the public 

interest. Therefore, the Commission 

hereby waives the operative delay and 

designates the proposal operative upon 

filing.18

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. 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– 

IEX–2018–12 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–IEX–2018–12. This file 

number should be included in 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. Copies of the 

filing will also be available for 

inspection and copying at the IEX’s 

principal office and on its internet 

website at www.iextrading.com. 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–IEX–2018–12 and 

should be submitted on or before July 

30, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–14551 Filed 7–6–18; 8:45 am] 

BILLING CODE P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Investment Company Act Release No. 

33146; 812–14921] 

Altaba Inc. 

July 3, 2018. 

AGENCY: Securities and Exchange 

Commission (‘‘Commission’’). 

ACTION: Notice. 

Notice of application for an order 

under section 17(b) of the Investment 

Company Act of 1940 (the ‘‘Act’’) for an 

exemption from section 17(a) of the Act. 

SUMMARY OF APPLICATION: Applicant 

seeks an order that would permit inkind repurchases of shares of the Fund 

held by certain affiliated stockholders of 

the Fund. 

APPLICANT: Altaba Inc. (the ‘‘Fund’’). 

FILING DATES: The application was filed 

on June 14, 2018, and amended on June 

28, 2018. 

HEARING OR NOTIFICATION OF HEARING: An 

order granting the requested relief will 

be issued unless the Commission orders 

a hearing. Interested persons may 

request a hearing by writing to the 

Commission’s Secretary and serving 

applicant with a copy of the request, 

personally or by mail. Hearing requests 

should be received by the Commission 

by 5:30 p.m. on July 30, 2018, and 

should be accompanied by proof of 

service on applicant, in the form of an 

affidavit or, for lawyers, a certificate of 

service. Pursuant to rule 0–5 under the 

Act, hearing requests should state the 

nature of the writer’s interest, any facts 

bearing upon the desirability of a 

hearing on the matter, the reason for the 

request, and the issues contested. 

Persons who wish to be notified of a 

hearing may request notification by 

writing to the Commission’s Secretary. 

ADDRESSES: Secretary, U.S. Securities 

and Exchange Commission, 100 F Street 

NE, Washington, DC 20549–1090. 

Applicant, 140 East 45th Street, 15th 

Floor, New York, New York 10017. 

FOR FURTHER INFORMATION CONTACT: 

Elizabeth G. Miller, Senior Counsel, at 

(202) 551–8707 or Aaron T. Gilbride, 

Branch Chief, at (202) 551–6825 (Chief 


sradovich on DSK3GMQ082PROD with NOTICES