Federal Register / Vol. 83, No. 149 / Thursday, August 2, 2018 / Notices 37867 

13See Securities Exchange Act Release No. 83485 

(June 20, 2018), 83 FR 29843 (June 26, 2018) (SR– 

OCC–2017–021). 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 80649 

(May 10, 2017), 82 FR 22595 (May 16, 2017) (SR– 

GEMX–2017–07). 

4A ‘‘Sponsored Customer’’ is a non-member of 

the Exchange that trades under a sponsoring 

member’s execution and clearing identity pursuant 

to a sponsorship arrangement between such nonContinued 

OCC would use its partial tear-up 

process as a means of loss allocation. 

OCC has included an updated Exhibit 

5 containing its RWD Plan as well as an 

Exhibit 4 showing the changes proposed 

in this Partial Amendment No. 2 to the 

proposed rule text in the Initial Filing, 

with the proposed changes in the Initial 

Filing marked in underlined and 

strikethrough text. Exhibits 4 and 5 have 

been redacted and filed separately with 

the Commission and confidential 

treatment for Exhibits 4 and 5 is 

requested pursuant to 17 CFR 240.24b– 

2. 

The partial amendment would not 

change the purpose of or basis for the 

proposed rule change. All other 

representations in the Initial Filing 

remain as stated therein and no other 

changes are being made. 

II. Date of Effectiveness of Proposed 

Rule Change and Timing for 

Commission Action 

As the Commission stated in 

Securities Exchange Act Release No. 

83485, the Commission shall by order 

approve or disapprove the proposed 

rule change by August 23, 2018.13

III. 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 Commissions internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

OCC–2017–021 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE, Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–OCC–2017–021. 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 OCC and on OCC’s website at 

http://www.theocc.com/about/ 

publications/bylaws.jsp. 

All comments received will be posted 

without change. Persons submitting 

comments are cautioned that we do not 

redact or edit personal or 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–OCC–2017–021 and should 

be submitted on or before August 17, 

2018. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2018–16533 Filed 8–1–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83731; File No. SR–GEMX– 

2018–26] 

Self-Regulatory Organizations; Nasdaq 

GEMX, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Codify the Protocol 

Definitions That Members Use To Enter 

Quotes and Orders 

July 27, 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 July 16, 

2018, Nasdaq GEMX, LLC (‘‘GEMX’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Commission is 

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 codify the 

definitions of the protocols that 

Members can use to enter quotes and 

orders on the Exchange. 

The text of the proposed rule change 

is available on the Exchange’s website at 

http://nasdaqgemx.cchwallstreet.com/, 

at the principal office of the Exchange, 

and at the Commission’s Public 

Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to codify the definitions of the 

protocols that Members use to enter 

quotes and orders on the Exchange, 

specifically, the Specialized Quote Feed 

(‘‘SQF’’), Ouch to Trade Options 

(‘‘OTTO’’), Financial Information 

eXchange (‘‘FIX’’), and Nasdaq Precise 

(‘‘Precise’’). On April 27, 2017, the 

Exchange filed a proposed rule change 

that established the ports that Members 

use to connect to the Exchange, 

including ports used for quote and order 

entry—i.e., SQF, OTTO and FIX.3 The 

Exchange has also filed proposed rule 

changes that briefly describe the 

availability of Precise, which is the 

Exchange’s proprietary front-end 

interface used by Electronic Access 

Members (‘‘EAMs’’) and their Sponsored 

Customers 4 to send orders to the 


daltland on DSKBBV9HB2PROD with NOTICES
37868 Federal Register / Vol. 83, No. 149 / Thursday, August 2, 2018 / Notices 

member and sponsoring member, as set forth in 

Supplementary Material to Rule 706. Market makers 

must connect to the Exchange via SQF, which is the 

Exchange’s quoting protocol, and are therefore not 

eligible to use Precise. 

5See Securities Exchange Act Release No. 81109 

(July 10, 2017), 82 FR 32594 (July 14, 2017) (SR– 

GEMX–2017–28) (proposed rule change regarding 

how Immediate-or-Cancel Orders will be handled); 

and Securities Exchange Act Release No. 81970 

(October 27, 2017), 82 FR 50910 (November 2, 2017) 

(SR–GEMX–2017–50) (proposed rule change related 

to the Kill Switch risk protection). 

6The Exchange’s affiliates—i.e., Nasdaq ISE, LLC 

(‘‘ISE’’), Nasdaq MRX, LLC (‘‘MRX’’), Nasdaq PHLX 

LLC (‘‘Phlx’’), Nasdaq Options Market (‘‘NOM’’), 

and Nasdaq BX, LLC (‘‘BX’’)—intend to file similar 

rule changes as part of this exercise. 

7All of the notification messages available on 

SQF ports as described above (i.e., options symbol 

directory messages, system event messages, trading 

action messages, etc.) are configurable in that 

market makers can select the specific types of 

notifications they wish to receive on their SQF 

ports. As such, SQF Purge Interface ports are a 

subpart of SQF ports that have been configured to 

only receive and notify of purge requests. 

Exchange and perform other related 

functions.5 The protocols used by 

Members to submit quotes and orders 

play an important role in the operation 

of the trading system as critical 

Exchange functionality used by 

Members to transact in options is 

offered through these protocols. The 

Exchange therefore believes that 

codifying definitions of these protocols 

in its rules will increase transparency 

around its operations. 

As it relates to FIX, OTTO, and SQF, 

the proposed language is substantially 

similar to the language included in SR– 

GEMX–2017–07 with changes to more 

clearly and accurately reflect the certain 

information included on each protocol, 

such as by separating out different 

categories of messages (e.g., auction 

orders, auction notifications, and 

auction responses). Furthermore, the 

proposed definitions will be 

harmonized where appropriate with 

definitions to be included in the rules 

of the Exchange’s affiliated options 

markets, including by using consistent 

terms to define the buckets of 

information transmitted, or the features 

available, on each protocol.6 Although 

the Exchange is changing how it 

categorizes various features included on 

FIX, OTTO, and SQF as part of its 

harmonization effort, the list of features 

included in the proposed definitions are 

intended to be exhaustive with respect 

to the buckets of information provided 

on each protocol. The Exchange also 

seeks to memorialize Precise to reflect 

the specific categories of features that 

are available on the Precise front-end 

today (e.g., order and execution 

management, market data, and risk 

management). Overall, the Exchange 

believes that the proposed changes will 

allow Members to more easily 

understand what information is 

available on which protocol. 

As proposed, Supplementary Material 

.03 to Rule 715 (i.e., Types of Orders) 

will provide that the Exchange offers 

Members the following protocols for 

entering orders and quotes respectively: 

A. Financial Information eXchange 

Ports 

When the Exchange initially filed to 

adopt order and quote entry protocols, 

it described the FIX protocol as follows: 

‘‘FIX is an interface that allows market 

participants to connect and send orders 

and auction orders into the Exchange. 

Data includes the following: (1) Options 

Symbol Directory Messages; (2) System 

Event Messages (e.g., start of messages, 

start of system hours, start of quoting, 

start of opening); (3) Option Trading 

Action Messages (e.g., halts, resumes); 

(4) Execution Messages; (5) Order 

Messages (order messages, risk 

protection triggers or purge 

notifications).’’ 

The Exchange now proposes to codify 

the following definition of FIX in its 

rulebook: ‘‘Financial Information 

eXchange’’ or ‘‘FIX’’ is an interface that 

allows Members and their Sponsored 

Customers to connect, send, and receive 

messages related to orders and auction 

orders to the Exchange. Features include 

the following: (1) Execution messages; 

(2) order messages; (3) risk protection 

triggers and cancel notifications; and (4) 

post trade allocation messages. 

B. Ouch To Trade Options Ports 

When the Exchange initially filed to 

adopt order and quote entry protocols, 

it described the OTTO protocol as 

follows: ‘‘OTTO is an interface that 

allows market participants to connect 

and send orders, auction orders and 

auction responses into the Exchange. 

Data includes the following: (1) Options 

Auction Notifications (e.g., Flash, PIM, 

Solicitation and Facilitation or other 

information); (2) Options Symbol 

Directory Messages; (3) System Event 

Messages (e.g., start of messages, start of 

system hours, start of quoting, start of 

opening); (5) Option Trading Action 

Messages (e.g., halts, resumes); (6) 

Execution Messages; (7) Order Messages 

(order messages, risk protection triggers 

or purge notifications).’’ 

The Exchange now proposes to codify 

the following definition of OTTO in its 

rulebook: ‘‘Ouch to Trade Options’’ or 

‘‘OTTO’’ is an interface that allows 

Members and their Sponsored 

Customers to connect, send, and receive 

messages related to orders, auction 

orders, and auction responses to the 

Exchange. Features include the 

following: (1) Options symbol directory 

messages (e.g., underlying instruments); 

(2) system event messages (e.g., start of 

trading hours messages and start of 

opening); (3) trading action messages 

(e.g., halts and resumes); (4) execution 

messages; (5) order messages; (6) risk 

protection triggers and cancel 

notifications; (7) auction notifications; 

(8) auction responses; and (9) post trade 

allocation messages. 

C. Specialized Quote Feed Ports 

When the Exchange initially filed to 

adopt order and quote entry protocols, 

it described the SQF protocol as follows: 

‘‘SQF is an interface that allows market 

makers to connect and send quotes, 

sweeps and auction responses into the 

Exchange. Data includes the following: 

(1) Options Auction Notifications (e.g., 

opening imbalance, Flash, PIM, 

Solicitation and Facilitation or other 

information); (2) Options Symbol 

Directory Messages; (3) System Event 

Messages (e.g., start of messages, start of 

system hours, start of quoting, start of 

opening); (4) Option Trading Action 

Messages (e.g., halts, resumes); (5) 

Execution Messages; (6) Quote Messages 

(quote/sweep messages, risk protection 

triggers or purge notifications).’’ 

The Exchange now proposes to codify 

the following definition of SQF in its 

rulebook: ‘‘Specialized Quote Feed’’ or 

‘‘SQF’’ is an interface that allows market 

makers to connect, send, and receive 

messages related to quotes, Immediateor-Cancel Orders, and auction responses 

to the Exchange. Features include the 

following: (1) Options symbol directory 

messages (e.g., underlying instruments); 

(2) system event messages (e.g., start of 

trading hours messages and start of 

opening); (3) trading action messages 

(e.g., halts and resumes); (4) execution 

messages; (5) quote messages; (6) 

Immediate-or-Cancel Order messages; 

(7) risk protection triggers and purge 

notifications; (8) opening imbalance 

messages; (9) auction notifications; and 

(10) auction responses. The SQF Purge 

Interface only receives and notifies of 

purge requests from the market maker.7

D. Nasdaq Precise 

‘‘Nasdaq Precise’’ or ‘‘Precise’’ is a 

front-end interface that allows 

Electronic Access Members and their 

Sponsored Customers to send orders to 

the Exchange and perform other related 

functions. Features include the 

following: (1) Order and execution 

management: Enter, modify, and cancel 

orders on the Exchange, and manage 

executions (e.g., parent/child orders, 

inactive orders, and post-trade 

allocations); (2) market data: Access to 

real-time market data (e.g., NBBO and 


daltland on DSKBBV9HB2PROD with NOTICES
Federal Register / Vol. 83, No. 149 / Thursday, August 2, 2018 / Notices 37869 

8For example, Cboe Exchange, Inc. currently 

offers a similar front-end order and execution 

management system called PULSeSM that allows 

users to send orders to Cboe Options Exchange, C2 

Options, Cboe Futures Exchange, and other U.S. 

options and stock exchanges. See https://

www.cboe.org/hybrid/pulsesalessheet.pdf. 

9The Exchange is characterizing the risk 

protections on Precise under a broader category of 

risk management compared to the risk protection 

categories on the other protocols because Precise 

also supports administrator capability for accessing 

and setting risk parameters for multiple users 

within a member firm. 

10See Rule 711(d). Precise is able to send a 

message to the Exchange to initiate the kill switch 

through Precise. 

11 Done away trade reports allow Precise users to 

record orders and executions, including executions 

on a different venue than the Exchange. 

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

13 15 U.S.C. 78f(b)(5). 14 15 U.S.C. 78f(b)(8). 

Exchange BBO); (3) risk management: 

set customizable risk parameters (e.g., 

kill switch); and (4) book keeping and 

reporting: comprehensive audit trail of 

orders and trades (e.g., order history and 

done away trade reports). 

Precise is a software application that 

is offered by the Exchange to EAMs and 

their Sponsored Customers. Use of 

Precise is completely voluntary. The 

Exchange makes Precise available to 

EAMs and their Sponsored Customers 

as a convenience for entering and 

managing orders, but the protocol is not 

an exclusive means for any user to send 

orders to GEMX. Precise is merely a 

front-end interface to the Exchange’s 

existing trading system, and is designed 

as an alternative to the Exchange’s other 

protocols (i.e., FIX, OTTO, and SQF) for 

the sending of orders to GEMX. Precise 

is also an alternative to similar front-end 

order and execution management 

systems currently offered by other 

technology providers as well as other 

exchanges.8

Precise provides users with access to 

GEMX’s regular order book. The 

protocol offers order and execution 

features that allow users to send, 

modify, and cancel their orders, and 

manage executions. For example, the 

protocol offers users the capability to 

stage larger orders and divide them into 

smaller orders for execution (i.e., 

parent/child orders), or stage multiple 

orders to send for execution at a later 

time (i.e., inactive orders). Precise also 

offers post trade allocation, including 

the capability for users to directly adjust 

clearing information on the front-end 

protocol. Precise users can also access 

and display real-time market data such 

as the National Best Bid and Offer 

(‘‘NBBO’’) and the Exchange Best Bid 

and Offer (‘‘Exchange BBO’’). 

Precise also provides risk 

management capabilities that allow 

users to set customizable risk 

parameters.9 For example, Precise 

supports the kill switch risk protection 

feature, which is an optional tool that 

enables members to initiate a message(s) 

to the Exchange’s trading system to 

promptly cancel orders and restrict 

entry of new orders until re-entry has 

been enabled.10 Lastly, Precise provides 

a comprehensive audit trail of orders 

and trades through its book keeping and 

reporting features, including order 

history reports and done away trade 

reports.11

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Securities Exchange 

Act of 1934 (the ‘‘Act’’),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. 

The Exchange believes that the 

proposed rule change is consistent with 

the protection of investors and the 

public interest as it codifies the 

protocols used to connect to the 

Exchange’s trading system. As discussed 

above, the Exchange previously filed to 

establish FIX, OTTO, and SQF in SR– 

GEMX–2017–07. These protocols will 

now be codified in the Exchange’s 

rulebook. In addition, the Exchange has 

briefly described Precise in various 

proposed rule changes filed with the 

Commission. In the interest of 

transparency, the Exchange has 

included a more fulsome description of 

the functionalities offered via Precise in 

this proposed rule change, and is 

codifying language in its rules that 

would describe this protocol. 

While no functional changes to the 

protocols are proposed in this filing, the 

Exchange believes that including a 

description of the protocols in its 

rulebook will benefit Members by 

increasing transparency around the 

operation of the Exchange. Furthermore, 

the proposed definitions being included 

in the rulebook will more clearly and 

accurately reflect the information 

included on the protocols, and will be 

harmonized with language to be 

included in the rules of its affiliated 

exchanges to the extent that the 

protocols operate in the same manner. 

The protocols described in this filing 

provide a range of important features to 

Members, including the ability to 

submit quotes and orders, and perform 

other functions necessary to manage 

trading on the Exchange. The Exchange 

believes codifying the quote and order 

entry protocols will increase 

transparency to the Members that use 

these protocols to connect to the 

Exchange. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

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

the Act,14 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. As explained 

above, the Exchange is codifying the 

quote and order entry protocols that 

Members use to connect to the 

Exchange’s trading system. The 

Exchange does not believe that 

codifying these protocols in the 

rulebook will have any competitive 

impact. FIX, OTTO, and SQF were 

established in SR–GEMX–2017–07, and 

are already available to Members, who 

use these protocols to connect and 

manage their trading activity on the 

Exchange. Adding rule language that 

describes these Exchange offerings will 

increase transparency around the 

operation of the Exchange without 

having any impact on intermarket or 

intramarket competition. Furthermore, 

Precise is a voluntary piece of 

functionality that EAMs and their 

Sponsored Customers may use as a 

convenience for entering and managing 

orders and executions, as an alternative 

to the Exchange’s other protocols (i.e., 

FIX, OTTO, and SQF). Precise is also an 

alternative to similar front-end order 

and execution management systems 

currently offered by other technology 

providers as well as other exchanges 

(e.g., PULSe). If market participants 

believe that other products available in 

the marketplace are more beneficial 

than Precise, they will simply use those 

products instead. For the foregoing 

reasons, the Exchange does not believe 

that its proposal to codify Precise will 

impose any burden on intermarket or 

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 written comments were either 

solicited or received. 


daltland on DSKBBV9HB2PROD with NOTICES
37870 Federal Register / Vol. 83, No. 149 / Thursday, August 2, 2018 / Notices 

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

16 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. In this case, the Commission waives 

the five-day pre-filing requirement. 

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 81095 

(July 7, 2017), 82 FR 32409 (July 13, 2017) (SR–ISE– 

2017–62). 

4A ‘‘Sponsored Customer’’ is a non-member of 

the Exchange that trades under a sponsoring 

member’s execution and clearing identity pursuant 

to a sponsorship arrangement between such nonmember and sponsoring member, as set forth in 

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 15 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.16

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: (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– 

GEMX–2018–26 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–GEMX–2018–26. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–GEMX–2018–26 and 

should be submitted on or before 

August 23, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2018–16530 Filed 8–1–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83729; File No. SR–ISE– 

2018–65] 

Self-Regulatory Organizations; Nasdaq 

ISE, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Codify the Definitions 

of the Protocols That Members Can 

Use To Enter Quotes and Orders 

July 27, 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 July 16, 

2018, Nasdaq ISE, LLC (‘‘ISE’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III, below, which Items have been 

prepared by the 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 codify the 

definitions of the protocols that 

Members can use to enter quotes and 

orders on the Exchange. 

The text of the proposed rule change 

is available on the Exchange’s website at 

http://ise.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 purpose of the proposed rule 

change is to codify the definitions of the 

protocols that Members use to enter 

quotes and orders on the Exchange, 

specifically, the Specialized Quote Feed 

(‘‘SQF’’), Ouch to Trade Options 

(‘‘OTTO’’), Financial Information 

eXchange (‘‘FIX’’), and Nasdaq Precise 

(‘‘Precise’’). On June 23, 2017, the 

Exchange filed a proposed rule change 

that established the ports that Members 

use to connect to the Exchange, 

including ports used for quote and order 

entry—i.e., SQF, OTTO and FIX.3 The 

Exchange has also filed several 

proposed fee and other rule changes that 

briefly describe the availability of 

Precise, which is the Exchange’s 

proprietary front-end interface used by 

Electronic Access Members (‘‘EAMs’’) 

and their Sponsored Customers 4 to send 


daltland on DSKBBV9HB2PROD with NOTICES