Federal Register / Vol. 83, No. 149 / Thursday, August 2, 2018 / Notices 37873 

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. The Exchange has satisfied this 

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. 81312 

(August 3, 2017), 82 FR 37253 (August 9, 2017) 

(SR–MRX–2017–13). 

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)(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– 

ISE–2018–65 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–ISE–2018–65. 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–ISE–2018–65 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. 2018–16534 Filed 8–1–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83730; File No. SR–MRX– 

2018–25] 

Self-Regulatory Organizations; Nasdaq 

MRX, 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 MRX, LLC (‘‘MRX’’ 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://nasdaqmrx.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’’), and Financial Information 

eXchange (‘‘FIX’’). On July 20, 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 

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 


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37874 Federal Register / Vol. 83, No. 149 / Thursday, August 2, 2018 / Notices 

4The Exchange’s affiliates—i.e., Nasdaq ISE, LLC 

(‘‘ISE’’), Nasdaq GEMX, LLC (‘‘GEMX’’), Nasdaq 

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

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

file similar rule changes as part of this exercise. 

5A ‘‘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 

Supplementary Material to Rule 706. 

6All 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. 

7 15 U.S.C. 78f(b). 

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

these protocols. The Exchange therefore 

believes that codifying definitions of 

these protocols in its rules will increase 

transparency around its operations. 

The proposed language is 

substantially similar to the language 

included in SR–MRX–2017–13 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.4 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 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 5 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.6

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’’),7 in general, and 

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

of the Act,8 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– 

MRX–2017–13. These protocols will 

now be codified in the Exchange’s 

rulebook. 

While no functional changes to the 

protocols are proposed in this filing, the 

Exchange believes that including a 

description of the protocols in its 


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Federal Register / Vol. 83, No. 149 / Thursday, August 2, 2018 / Notices 37875 

9 15 U.S.C. 78f(b)(8). 

10 15 U.S.C. 78s(b)(3)(A)(iii). 

11 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. 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(4)(ii). 

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,9 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–MRX–2017–13, 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. 

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)(iii) of the Act 10 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.11

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– 

MRX–2018–25 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–MRX–2018–25. 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–MRX–2018–25 and should 

be submitted on or before August 23, 

2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2018–16526 Filed 8–1–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83724; File No. SR–OCC– 

2018–010] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change To Amend 

the Definition of Flexibly Structured 

Options 

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, The Options Clearing Corporation 

(‘‘OCC’’) 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 OCC. OCC filed 

the proposed rule change pursuant to 

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

19b–4(f)(4)(ii) 4 thereunder so that the 

proposal was effective upon filing with 

the Commission. The Commission is 

publishing this notice to solicit 


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