33966 Federal Register / Vol. 83, No. 138 / Wednesday, July 18, 2018 / Notices 

11 Docket No. RM2007–1, Initial Comments of the 

United States Postal Service in Response to Order 

No. 26, September 24, 2007, at 13–22. 

12 Docket No. RM2007–1, Order Establishing 

Ratemaking Regulations for Market Dominant and 

Competitive Products, October 29, 2007, at 78 

(Order No. 43). 

13See Docket No. ACR2017, United States Postal 

Service Motion for Reconsideration of Order No. 

4451, April 6, 2018, at 4 (Motion for 

Reconsideration) (‘‘Inbound Letter Post is subject to 

substantial competition.’’); id. at 8–9 (cited filings 

in other Commission proceedings that allege the 

private sector competes in the Inbound Letter Post 

market); id.at 10 (‘‘the vast majority of Inbound 

Letter Post mail faces substantial competition’’); id. 

at 12–13 (‘‘existing market research regarding 

inbound package volume, which is included in 

Nonpublic Attachment 1, illustrates the intense 

competition for Inbound Letter Post faced by the 

Postal Service and foreign postal operators.’’ 

(footnote omitted)); Docket No. ACR2017, Response 

of the United States Postal Service to Order No. 

4409, February 23, 2018, at 5 (small packets 

‘‘already face considerable competition today.’’ 

(footnote omitted)); id. at 6 (‘‘the Postal Service 

operates in a competitive market for inbound 

international shipping, which includes inbound 

small packets containing merchandise.’’ (footnote 

omitted)); id. at 6 n.13 (‘‘Not only are Inbound 

Letter Post packets subject to considerable 

competition, but bulk international letter and flat 

mail can be subject to competition as well.’’); 

Docket No. ACR2017, United States Postal Service 

Notice of Filing Nonpublic Folder USPS–FY17– 

NP40 and Application for Nonpublic Treatment, 

February 14, 2018, Attachment at 2 (CHIR No. 15 

Application for Non-Public Treatment) (‘‘Not only 

are Inbound Letter Post packets (E Format) subject 

to considerable competition, but bulk international 

letter and flat mail (P and G Format) can be subject 

to competition as well.’’); id. at 3 (‘‘The Postal 

Service is just one of the participants operating in 

the competitive market for inbound international 

shipping, which includes inbound small packets 

containing merchandise.’’); Docket No. R2018–1, 

United States Postal Service Answer in Opposition 

to U.S. Chamber of Commerce Motion to Unseal 

Library Reference and Motion to Request Issuance 

of Information Request, October 23, 2017, at 4 

(‘‘ ‘inbound letter post . . . face[s] significant 

competition from private sector competitors and 

Extraterritorial Offices of Exchange[.]’ The 

competitive nature of the international market, 

particularly with respect to . . . inbound letter post 

packets weighing 4.4 pounds or less, is well 

established.’’ (footnote omitted)). 

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

2 17 CFR 240.19b–4. 

international mail as market dominant 

or competitive.11

The Commission found the Postal 

Service’s arguments for exceptional 

treatment of inbound international mail 

as neither market dominant nor 

competitive unpersuasive and 

inconsistent with section 3642.12 The 

Commission concluded, ‘‘[h]ad 

Congress intended to exempt inbound 

international mail from the requirement 

that all products be categorized as either 

market dominant or competitive, it 

would have done so explicitly, as it did 

by specifically exempting experimental 

products from the requirements of 

section 3642.’’ Order No. 43 at 78 

(footnote omitted). The Commission 

found that the PAEA unambiguously 

requires the Commission to classify 

inbound international mail products as 

either market dominant or competitive. 

Id. Consistent with section 3621, the 

Commission classified Inbound Letter 

Post as a market dominant product. Id. 

at 85. 

III. Claims of Competition and 

Commission Action 

In Docket Nos. R2018–1 and Docket 

ACR2017, the Postal Service repeatedly 

claimed that Inbound Letter Post is 

subject to ‘‘considerable,’’ ‘‘substantial,’’ 

and ‘‘intense’’ competition, especially 

Inbound Letter Post small packets.13

However, the Postal Service filed 

documents in support of its claims of 

competition for the first time when it 

filed its Motion for Reconsideration. 

Motion for Reconsideration, 

Attachments 1–4. Despite these claims 

of competition, the Postal Service 

acknowledged that the Inbound Letter 

Post product is on the market dominant 

product list and that it has not requested 

to transfer all or part of the Inbound 

Letter Post product to the competitive 

product list. Motion for Reconsideration 

at 6. 

In its Motion for Reconsideration, the 

Postal Service stated that it explored the 

potential transfer of Inbound Letter Post 

small packets from the market dominant 

to the competitive products list. Id. 

However, the Postal Service stated that 

one obstacle to transferring all or part of 

the Inbound Letter Post product from 

the market dominant product list to the 

competitive product list relates to the 

‘‘inability to separate Inbound Letter 

Post that is subject to the Private 

Express Statutes [(PES)] from Inbound 

Letter Post that is not subject to the 

PES.’’ Id. 

These claims raised the question of 

whether Inbound Letter Post should be 

wholly or partially transferred from the 

market dominant product list to the 

competitive product list. Rather than 

attempt to address these issues in 

Docket No. ACR2017, the Commission 

concluded that the best course of action 

is to initiate a separate proceeding to 

evaluate these issues, including the nonpublic attachments the Postal Service 

provided with its Motion for 

Reconsideration. 

Accordingly, the Commission 

establishes the instant proceeding to 

examine the classification of the 

Inbound Letter Post product. The 

Commission is issuing a Commission 

Information Request (CIR) concurrently 

with this Order. Once a sufficient record 

has been developed, the Commission 

will issue a procedural schedule 

inviting comment. 

Pursuant to 39 U.S.C. 505, James 

Waclawski is designated as an officer of 

the Commission (Public Representative) 

to represent the interests of the general 

public in this proceeding. 

Additional information may be 

accessed via the Commission’s website 

at http://www.prc.gov. 

IV. Ordering Paragraphs 

It is ordered: 

1. The Commission hereby establishes 

Docket No. PI2018–1 to review issues 

related to the classification of the 

Inbound Letter Post product and parts 

thereof. 

2. Pursuant to 39 U.S.C. 505, James 

Waclawski is designated as an officer of 

the Commission (Public Representative) 

to represent the interests of the general 

public in this proceeding. 

3. The Secretary shall arrange for 

publication of this order in the Federal 

Register. 

By the Commission. 

Stacy L. Ruble, 

Secretary. 

[FR Doc. 2018–15284 Filed 7–17–18; 8:45 am] 

BILLING CODE 7710–FW–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83623; File No. SR– 

NASDAQ–2018–051] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend The 

Nasdaq Options Market LLC (‘‘NOM’’) 

Rules and Adopt a Zero Bid Options 

Rule 

July 12, 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 29, 

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 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 The 

Nasdaq Options Market LLC (‘‘NOM’’) 

Rules at Chapter V, Section 3, entitled 

‘‘Trading Halts’’ and Chapter VI, Section 


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3See Phlx Rule 1035. 

4The Limit Up-Limit Down requirements must be 

met first before the proposed rule would apply. 

5The time of receipt for an order is the time such 

message is processed by the System. 

6The Exchange’s Opening Process is described in 

Rule 701. 

7Chapter VI, Section 5, entitled ‘‘Minimum 

Increments’’ provides for the minimum increments 

of trading. 

8Securities Exchange Act Release No. 57478 

(March 12, 2008), 73 FR 14521 (March 18, 208) (SR– 

NASDAQ–2007–004 and SR–NASDAQ–2007–080) 

(Notice of Filing of Amendment No. 2 to a Proposed 

Rule Change and Order Granting Accelerated 

Approval to a Proposed Rule Change, as Amended, 

To Establish Rules Governing the Trading of 

Options on the NASDAQ Options Market; Order 

Approving a Proposed Rule Change Relating to the 

LLC Agreement Establishing the NASDAQ Options 

Market LLC and Delegation Agreement Delegating 

to NOM LLC the Authority To Operate the 

NASDAQ Options Market; Order Granting an 

Application of The NASDAQ Stock Market LLC for 

an Exemption Pursuant to Section 36(a) of the 

Exchange Act from the Requirements of Section 

19(b) of the Exchange Act; and Order Granting an 

Exemption for the NASDAQ Options Market LLC 

from Section 11A(b) of the Exchange Act.) 

9 Id. 

10Securities Exchange Act Release No. 67301 

(June 28, 2012), 77 FR 39774 (July 5, 2012) (SR– 

Nasdaq–2012–077) (‘‘Subsequent Filing’’). 

11 Id. 

6, entitled ‘‘Acceptance of Quotes and 

Orders.’’ 

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 Exchange proposes to amend 

Chapter V, Section 3, entitled ‘‘Trading 

Halts’’ to remove unnecessary rule text. 

The Exchange proposes to amend NOM 

Rules to adopt a zero bid options rule 

at Chapter VI, Section 6, entitled 

‘‘Acceptance of Quotes and Orders.’’ 

The Exchange proposes to adopt a zero 

bid options rule on NOM within 

Chapter VI, Section 6, entitled 

‘‘Acceptance of Quotes and Orders’’ and 

remove rule text which the Exchange 

believes is unnecessary. Each proposal 

is described in more detail below. 

Chapter V, Section 3 

The Exchange proposes to amend 

Chapter V, Section 3(b), which currently 

provides, ‘‘In the event Nasdaq 

Regulation determines to halt trading, 

all trading in the effected class or 

classes of options shall be halted. NOM 

shall disseminate through its trading 

facilities and over OPRA a symbol with 

respect to such class or classes of 

options indicating that trading has been 

halted, and a record of the time and 

duration of the halt shall be made 

available to vendors.’’ The Exchange 

proposes to remove the words ‘‘such 

class or’’ because the Exchange only 

disseminates over OPRA a symbol with 

respect to classes of options to indicate 

a trading halt. By amending this rule, 

the Exchange will add more 

transparency as to how it disseminates 

information regarding trading halts. 

Chapter VI, Section 6 

Today, the Exchange does not have a 

rule for the handling of options with no 

bid or zero bid options. The Exchange’s 

handling of zero bid options on NOM is 

identical to the manner in which zero 

bid is handled on Phlx.3 The Exchange 

proposes to add this new rule to Chapter 

VI, Section 6(a)(3). The new rule would 

provide, ‘‘In the case where the bid 

price for any options contract is $0.00, 

a market order accepted into the System 

to sell that series shall be considered a 

limit order to sell at a price equal to the 

minimum trading increment as defined 

in Chapter VI, Section 5. Orders will be 

placed on the limit order book in the 

order in which they were received by 

the System. With respect to market 

orders to sell which are submitted prior 

to the Opening and persist after the 

Opening, those orders are posted at a 

price equal to the minimum trading 

increment as defined in Chapter VI, 

Section 5.’’ 

The Exchange intends to accept and 

convert market orders to sell allowing 

them an equal opportunity to trade if 

interest should arrive in the case of a no 

bid option. The Exchange notes that the 

orders would rest on the Order Book at 

the minimum price increment. The 

Exchange notes market orders ‘‘accepted 

into the System’’ would be converted to 

account for market orders that may not 

be accepted into the System due to 

Limit Up-Limit Down restrictions, 

which may prevent the market order 

from being accepted.4 Only after 

acceptance into the System will market 

orders be treated as a sell limit order at 

a price equal to the minimum trading 

increment. 

Further, the Exchange proposes to add 

rule text which provides ‘‘Orders will be 

placed on the limit order book in the 

order in which they were received by 

the System.’’ 5 The Exchange proposes 

to note that with respect to market 

orders to sell in zero bid options, which 

are submitted prior to the Opening 

Process 6 and persist after the Opening 

Process, those orders are posted at a 

price equal to the minimum trading 

increment as defined in Chapter VI, 

Section 5.7 The Exchange’s proposed 

rule will provide market participants 

with greater insight into the handling of 

orders where there is a zero bid. The 

Exchange believes that this proposed 

amendment will accurately describe the 

manner in which a zero-bid options 

series operates within the System both 

before and after the Opening Process. 

The Exchange also proposes to amend 

Chapter VI, Section 6(b) which currently 

states, ‘‘All System orders entered by 

Participants directing or permitting 

routing to other market centers shall be 

routed for potential display and/or 

execution as set forth in Section 11 

below. Routing shall be available in 

System securities as well as Non-System 

securities listed on other exchanges.’’ 

The Exchange proposes to remove 

‘‘Routing shall be available in System 

securities as well as Non-System 

securities listed on other exchanges.’’ 

The Exchange defines ‘‘System 

Securities’’ at Chapter VI, Section 1(b) of 

the NOM Rules and defines ‘‘NonSystem Securities’’ as all other options. 

Nasdaq originally programmed the 

System to differentiate between System 

Securities and Non-System Securities.8

Nasdaq stated in that filing it would 

accept orders in Non-System Securities 

for routing but will not execute these 

orders in the System.9 In 2012, NOM’s 

rule were amended to provide that 

routing is limited to System Securities. 

System Securities are all options that 

are currently trading on NOM pursuant 

to Chapter IV.10 Further, the Subsequent 

Filing provided that only System 

Securities are traded on NOM pursuant 

to Chapter IV. All other options are 

Non-System Securities.11 The 

Subsequent filing noted that at one time, 

NOM offered routing of Non-System 

Securities but has not offered such 

routing since November 30, 2011. 

Finally, the Subsequent Filing noted 

that this routing feature was rarely used 

and was discontinued. Currently, NOM 

only routes securities that are listed on 

NOM. The Exchange proposes to 


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33968 Federal Register / Vol. 83, No. 138 / Wednesday, July 18, 2018 / Notices 

12 15 U.S.C. 78f(b). 

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

14See note 10 above. 

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

16See note 10 above. 

17 15 U.S.C. 78s(b)(3)(A). 

18 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. 

19 17 CFR 240.19b–4(f)(6). 

20 17 CFR 240.19b–4(f)(6)(iii). 

21For 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). 

remove this sentence related to routing 

which the Exchange believes should 

have been removed in connection with 

the Subsequent Filing. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Securities Exchange 

Act of 1934,12 in general, and furthers 

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

Act,13 in particular, in that it is designed 

to promote just and equitable principles 

of trade, to remove impediments to and 

perfect the mechanism for a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. 

Chapter V, Section 3 

The Exchange is providing greater 

transparency as to the manner in which 

the Exchange disseminates information 

over OPRA during a trading halt. The 

Exchange believes that this rule text is 

consistent with the Act and the 

protection of investors and the public 

interest because it brings greater clarity 

as to what type of information is 

provided during a halt. 

Chapter VI, Section 6 

The Exchange’s proposal to adopt a 

zero bid rule is consistent with the Act 

and designed to promote just and 

equitable principles of trade and to 

protect investors and the public interest 

by adopting text which describes the 

handling of zero-bid options. The 

Exchange is treating all market orders to 

sell in zero bid options in the same 

fashion by converting all those orders, 

provided that the Exchange’s 

disseminated bid price in such option is 

zero for an option listed only on the 

Exchange or, for an option listed on 

multiple exchanges and the 

disseminated NBBO includes a bid price 

of zero in the series. Market orders to 

sell in zero bid options will be placed 

on the limit order book in the order in 

which they were received by the 

System. The Exchange desires to 

prevent members from submitting 

market orders to sell in no bid series, 

which would execute at a price of $0.00. 

The Exchange believes that the 

proposed rule will achieve this objective 

and continue to permit the Exchange to 

execute orders within its System at 

prices that reflect some value. Adding 

rule text regarding market orders to sell 

in zero bid options submitted prior to 

the Opening Process and persisting after 

the Opening Process is consistent with 

the Act because it provides more 

transparency as to the operation of this 

rule and as to how those market orders 

to sell in zero bid options will be 

handled by the System. Further, the 

Exchange believes that memorializing 

its current practice within the rule text 

will bring more clarity to the manner in 

which the zero bid rule operates to the 

benefits of all market participants. 

Finally, the Exchange believes 

removing language concerning NonSystem Securities in Chapter VI, Section 

6(b) is consistent with the Act because 

it avoids confusion by removing 

language which should have been 

removed with the 2006 filing which 

distinguished System and Non-System 

Securities. The language discusses a 

distinction which was removed from the 

rules in 2012.14

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

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

the Act,15 the Exchange does not believe 

that the proposed rule change will 

impose any burden on intermarket or 

intra-market competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

Chapter V, Section 3 

The Exchange’s proposal to amend 

Chapter V, Section 3(b) to more 

specifically describe the information 

disseminated during a trading halt do 

not impose an undue burden on 

competition because the amendments 

add more transparency to the trading 

halt rule. 

Chapter VI, Section 6 

The Exchange’s proposal to adopt a 

zero bid options rule does not impose 

an undue burden on competition 

because the proposed rule change will 

continue to apply uniformly for all 

market participants who enter market 

orders to sell into the System when 

there is a zero-bid options. 

Finally, the removal of language 

concerning Non-System Securities in 

Chapter VI, Section 6(b) does not 

impose an undue burden on 

competition because this language 

references an obsolete functionality in 

the rulebook that was removed from the 

rules in 2012.16

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 17 and Rule 19b– 

4(f)(6) thereunder.18

A proposed rule change filed 

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

Act 19 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6)(iii) 20

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 Exchange 

states that waiver of the operative delay 

would allow the Exchange to update its 

rules to immediately reflect the 

operation of zero bid series on NOM. 

Therefore, the Commission believes that 

waiver of the 30-day operative delay is 

consistent with the protection of 

investors and the public interest. 

Accordingly, the Commission hereby 

waives the operative delay and 

designates the proposed rule change 

operative upon filing.21

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. 


amozie on DSK3GDR082PROD with NOTICES1
Federal Register / Vol. 83, No. 138 / Wednesday, July 18, 2018 / Notices 33969 

22 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The term ‘‘BOX Book’’ means the electronic 

book of orders on each single option series 

maintained by the BOX Trading Host. See BOX 

Rule 100(a)(10). 

4The term ‘‘Participant’’ means a firm, or 

organization that is registered with the Exchange 

pursuant to the BOX Rule 2000 Series for purposes 

of participating in options trading on BOX as an 

‘‘Order Flow Provider’’ or ‘‘Market Maker.’’ See 

BOX Rule 100(a)(41). 

5See Securities Exchange Act Release No. 83318 

(May 24, 2018), 83 FR 25079 (‘‘Notice’’). 

6See proposed BOX Rule IM–7130–1. ‘‘Public 

Customer’’ means a person that is not a broker or 

dealer in securities. See BOX Rule 100(a)(52). 

7See proposed BOX Rule IM–7130–1. 

8See id. 

9See id. The term ‘‘Market Operations Center’’ or 

‘‘MOC’’ means the BOX Market Operations Center, 

which provides market support for Options 

Participants during the trading day. See BOX Rule 

100(a)(32). 

10See proposed BOX Rule IM–7130–1. 

11See Notice, supra note 5, at 25080 n.5. 

12See Notice, supra note 5, at 25080. 

13A QOO Order has two sides; the initiating side 

and the contra-side. The initiating side is the order 

which must be filled in its entirety. The contra-side 

must guarantee the full size of the initiating side of 

the QOO Order and may provide a book sweep size 

as provided in BOX Rule 7600(h). See BOX Rule 

7600(a)(1). The initiating side of a QOO Order will 

execute against Public Customer Orders on the BOX 

Book and any other orders or quotes ranked ahead 

of such Public Customer Orders at the execution 

price first. See BOX Rule 7600(d)(2). 

14See Notice, supra note 5, at 25080. 

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– 

NASDAQ–2018–051 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–NASDAQ–2018–051. 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–NASDAQ–2018–051, and 

should be submitted on or before 

August 8, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.22

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–15289 Filed 7–17–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83624; File No. SR–BOX– 

2018–18] 

Self-Regulatory Organizations; BOX 

Options Exchange LLC; Order 

Granting Approval of a Proposed Rule 

Change To Adopt IM–7130–1 to Rule 

7130 

July 12, 2018. 

I. Introduction 

On May 16, 2018, BOX Options 

Exchange LLC (the ‘‘Exchange’’ or 

‘‘BOX’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’), 

pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a 

proposed rule change to adopt IM– 

7130–1 to BOX Rule 7130 to provide 

certain BOX Book 3 information to 

Participants 4 upon request. The 

proposed rule change was published for 

comment in the Federal Register on 

May 31, 2018.5 The Commission 

received no comments on the proposed 

rule change. This order approves the 

proposed rule change. 

II. Description of the Proposed Rule 

Change 

BOX proposes to adopt new IM– 

7130–1 to Rule 7130 to provide that, 

upon request, the Exchange may make 

available to a Participant the amount of 

any priority interest on the BOX Book. 

For purposes of the proposed new rule, 

the term ‘‘priority interest’’ means the 

number of Public Customer contracts 

and Non-Public Customer contracts that 

are ranked ahead of such Public 

Customer contracts at a given price for 

a specific option class.6 The information 

would be verbally provided to 

Participants for no fee, on a best efforts 

basis, and would be for advisory 

purposes only.7 All BOX Book 

information would be provided on an 

anonymous basis.8

Under the proposed rule, Floor 

Brokers would inquire with an Options 

Exchange Official or his or her designee, 

and all other Participants would inquire 

with BOX’s Market Operations Center.9

Participants would be required to 

request this information each time and 

the Exchange would not provide 

continuous updated information.10 The 

Exchange represents that an Options 

Exchange Official will provide the 

requested information when doing so 

does not interfere with their regulatory 

responsibilities.11

The Exchange believes that the 

proposed rule change will provide 

Participants greater clarity on the 

composition and availability of liquidity 

on the BOX Book.12 With respect to the 

BOX Trading Floor, the Exchange 

believes that the availability of this 

information will lead to increased 

interaction with the BOX Book, because 

Floor Brokers will be aware of the 

liquidity available on the BOX Book that 

could interact with their Qualified Open 

Outcry Order (‘‘QOO Order’’) 13 and 

may choose to use such liquidity when 

executing orders from the Trading Floor 

or using a separate order to sweep that 

interest.14

III. Discussion and Commission 

Findings 

After careful review, the Commission 

finds that the proposed rule change is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 


amozie on DSK3GDR082PROD with NOTICES1