Federal Register / Vol. 83, No. 147 / Tuesday, July 31, 2018 / Notices 36989 

19 15 U.S.C. 78s(b)(3)(A)(iii). 

20 17 CFR 240.19b–4(f)(6). 

21 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. 

22 17 CFR 240.19b–4(f)(6). 

23 17 CFR 240.19b–4(f)(6)(iii). 

24For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

25 15 U.S.C. 78s(b)(2)(B). 

26 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The Exchange has filed the proposed 

rule change pursuant to Section 

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

19b–4(f)(6) thereunder.20 Because the 

proposed rule change does not: (i) 

Significantly affect the protection of 

investors or the public interest; (ii) 

impose any significant burden on 

competition; and (iii) become operative 

prior to 30 days from the date on which 

it was filed, or such shorter time as the 

Commission may designate, if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

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

of the Act and Rule 19b–4(f)(6)(iii) 

thereunder.21

A proposed rule change filed under 

Rule 19b–4(f)(6) 22 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),23 the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. The Exchange requests that the 

Commission waive the 30-day operative 

delay so that the proposal may become 

operative immediately upon filing. The 

Exchange represents that the proposed 

rule changes present no new or novel 

issues. According to the Exchange, 

waiver of the operative delay would 

allow Users to access the Proposed 

Third Party Systems and the Proposed 

Third Party Data Feeds without delay, 

which would assist Users in tailoring 

their data center operations to the 

requirements of their business 

operations. The Exchange also 

represents that the proposed changes to 

the Price List would provide Users with 

more complete information regarding 

their Access and Connectivity options. 

The Exchange further asserts that waiver 

of the operative delay would help avoid 

potential investor confusion by allowing 

the Exchange to immediately update the 

names of the exchanges noted above to 

reflect recent business combinations 

and name changes. The Commission 

believes that waiving the 30-day 

operative delay is consistent with the 

protection of investors and the public 

interest. Accordingly, the Commission 

waives the 30-day operative delay and 

designates the proposed rule change 

operative upon filing.24

At any time within 60 days of the 

filing of such 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 

under Section 19(b)(2)(B) 25 of the Act 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– 

NYSEAMER–2018–35 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–NYSEAMER–2018–35. 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–NYSEAMER–2018–35 and 

should be submitted on or before 

August 21, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.26

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–16275 Filed 7–30–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83702; File No. SR– 

NASDAQ–2018–057] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend 

Fees and Credits Under Rule 7018(a) 

July 25, 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 12, 

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, 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 amend the 

Exchange’s transaction fees at Rule 

7018(a) to amend qualification criteria 

for a credit tier applicable to securities 

of all three Tapes, and to reduce the 


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36990 Federal Register / Vol. 83, No. 147 / Tuesday, July 31, 2018 / Notices 

3Tape C securities are those that are listed on the 

Exchange, Tape A securities are those that are listed 

on NYSE, and Tape B securities are those that are 

listed on exchanges other than Nasdaq or NYSE. 

4Rule 7018(a) defines ‘‘Consolidated Volume’’ as 

the total consolidated volume reported to all 

consolidated transaction reporting plans by all 

exchanges and trade reporting facilities during a 

month in equity securities, excluding executed 

orders with a size of less than one round lot. For 

purposes of calculating Consolidated Volume and 

the extent of a member’s trading activity the date 

of the annual reconstitution of the Russell 

Investments Indexes shall be excluded from both 

total Consolidated Volume and the member’s 

trading activity. 

5See Rule 4758(a)(i)–(ii). 

6See Rule 4758(a)(x). 

7The Exchange is also making a minor technical 

correction to the rule. 

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

9 15 U.S.C. 78f(b)(4) and (5). 

charge assessed members applicable to 

DOT and LIST Orders in Tape A 

securities, as described further below.3

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 purpose of the proposed rule 

change is to amend Rule 7018(a), 

concerning the fees and credits 

provided for the use of the order 

execution and routing services of the 

Nasdaq Market Center by members for 

all securities priced at $1 or more that 

it trades. Rule 7018(a)(1) sets forth the 

fees and credits for the execution and 

routing of orders in Nasdaq-listed 

securities (Tape C); Rule 7018(a)(2) sets 

forth the fees and credits for the 

execution and routing of securities 

listed on the New York Stock Exchange 

LLC (Tape A); and Rule 7018(a)(3) sets 

forth the fees and credits for the 

execution and routing of securities 

listed on exchanges other than Nasdaq 

and NYSE (Tape B). 

The Exchange is proposing to amend 

the criteria required to qualify for 

credits provided to a member for 

displayed quotes/orders that provide 

liquidity, and to reduce a fee applicable 

to Tape A securities. Currently, under 

Rules 7018(a)(1)–(3) the Exchange 

provides credits to, and assesses fees on, 

members for execution of displayed 

quotes/orders (other than Supplemental 

Orders or Designated Retail Orders) if 

they qualify by meeting the 

requirements of the various credit and 

fee tiers under those rules. As described 

below, the Exchange is proposing to 

amend the Exchange’s transaction fees 

at Rule 7018(a)(1)–(3) to amend 

qualification criteria for a credit tier 

applicable to securities of all three 

Tapes, and to reduce a fee under Rule 

7018(a)(2) applicable to only Tape A 

securities, as described further below. 

First Change 

The Exchange is proposing to amend 

the criteria required to qualify for a 

$0.0030 per share executed credit, 

which will apply to securities of all 

three Tapes under Rules 7018(a)(1)–(3). 

Currently, the Exchange provides the 

credit if a member has shares of 

liquidity provided in all securities 

through one or more of its Nasdaq 

Market Center MPIDs that represent 

0.575% or more of Consolidated 

Volume 4 during the month, including 

shares of liquidity provided with 

respect to securities that are listed on 

exchanges other than Nasdaq or NYSE 

that represent 0.10% or more of 

Consolidated Volume. The Exchange is 

proposing to increase the level of shares 

of liquidity required to be provided in 

all securities through one or more of its 

[sic] Nasdaq Market Center MPIDs from 

0.575% to 0.625% or more of 

Consolidated Volume during the month. 

The Exchange is also proposing to 

increase the required level of shares of 

liquidity provided from 0.10% to 0.15% 

or more of Consolidated Volume with 

respect to securities that are listed on 

exchanges other than Nasdaq or NYSE. 

Second Change 

The purpose of the second proposed 

change is to reduce the fee assessed for 

a DOT 5 or LIST6 Order that executes in 

the NYSE opening or reopening 

process.7 Currently, the Exchange 

assesses a $0.0015 per share executed 

charge on a DOT or LIST Order in a 

Tape A security that executes in the 

NYSE opening or reopening process. 

DOT is a routing option for Orders that 

the entering firm wishes to route to 

NYSE or NYSE American. LIST is a 

routing option that allows an Order to 

participate in the opening and/or 

closing process of the primary listing 

market for a security. The Exchange is 

proposing to reduce the fee assessed 

members for DOT or LIST Order in a 

Tape A security that executes in the 

NYSE opening or reopening process 

from $0.0015 to $0.0010 per share 

executed. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,8 in general, and furthers the 

objectives of Sections 6(b)(4) and 6(b)(5) 

of the Act,9 in particular, in that it 

provides for the equitable allocation of 

reasonable dues, fees and other charges 

among members and issuers and other 

persons using any facility, and is not 

designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers. 

First Change 

The Exchange believes that changing 

the Consolidated Volume qualification 

criteria required to qualify for the 

$0.0030 per share executed credit under 

Rules 7018(a)(1)–(3) is reasonable. 

Nasdaq believes that the changes to the 

volume thresholds are reasonable 

because the increased volume 

thresholds are more closely aligned to 

the corresponding credit than the 

current volume thresholds. This 

increase is also reflective of the 

Exchange’s desire to provide incentives 

to attract order flow to the Exchange in 

return for significant market-improving 

behavior. By modestly increasing both 

the requirement that members add 

liquidity in all securities through one or 

more of its [sic] Nasdaq Market Center 

MPIDs from 0.575% to 0.625%, or more, 

of Consolidated Volume, and the 

requirement that the member provide 

shares of liquidity with respect to 

securities that are listed on exchanges 

other than Nasdaq or NYSE from 0.10% 

to 0.15%, or more, of Consolidated 

Volume, the Exchange is increasing the 

volume of liquidity that a member must 

add during the month in order to qualify 

for the corresponding credit. This 

change will help ensure that members 

are providing significant marketimproving behavior in return for credits. 

The Exchange believes that the 

increase in the Consolidated Volume 

thresholds needed to qualify for the 

$0.0030 per share executed credit under 

Rules 7018(a)(1)–(3) is an equitable 

allocation and is not unfairly 

discriminatory because the Exchange 

will apply the same credit to all 


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Federal Register / Vol. 83, No. 147 / Tuesday, July 31, 2018 / Notices 36991 

10See Rule 7018(a)(3). 

11The Commission notes that these fees were 

filed effective on filing pursuant to Section 

19(b)(3)(A) of the Act and thus the Commission 

made no findings regarding the fees. 12 15 U.S.C. 78s(b)(3)(A)(ii). 

similarly-situated members that meet its 

requirements. The credit and its 

corresponding volume requirements 

will apply equally to transactions in 

securities of all the Tapes. The 

Exchange believes that the new volume 

requirements will not significantly 

impact the number of members that will 

likely qualify for the corresponding 

credit, since the new volume thresholds 

are a modest increase over the current 

volume thresholds. Participation in the 

Exchange’s various credit tiers is 

completely voluntary, and members 

may always elect to either qualify for 

the corresponding credit by adding 

sufficient liquidity to the Exchange to 

meet the new volume requirement, or by 

electing to qualify for a different credit. 

Finally, by modestly increasing the total 

volume of liquidity as well as the 

liquidity provided with respect to 

securities that are listed on exchanges 

other than Nasdaq or NYSE that a 

member must add during the month in 

order to qualify for the corresponding 

credit, the proposed change will help 

ensure that members are providing 

significant market-improving behavior 

in return for credits. 

Second Change 

The Exchange believes that reducing 

the fee assessed for a DOT or LIST Order 

in a Tape A security that executes in the 

NYSE opening or reopening process 

from $0.0015 to $0.0010 per share 

executed is reasonable. The Exchange 

notes that it currently assesses a charge 

of $0.00095 per share executed for the 

execution of a LIST Order in a Tape B 

security in the NYSEAmex closing 

process.10 This fee decrease is reflective 

of the Exchange’s desire to provide 

incentives to market participants to use 

the routing function of the Exchange. 

When routing Orders to non-Nasdaq 

exchanges such as NYSE, the Exchange 

incurs costly connectivity charges 

related to telecommunication lines, 

membership and access fees, and other 

related costs when routing orders. 

Although the Exchange may realize less 

overall fees from [sic] proposed fee 

decrease for DOT and LIST Orders that 

execute in the NYSE opening or 

reopening processes, the Exchange 

believes that it will continue to be able 

to recover the costs it incurs to route 

such Orders to NYSE. 

The Exchange believes that reducing 

the fee assessed for a DOT or LIST Order 

that executes in the NYSE opening or 

reopening process is an equitable 

allocation and is not unfairly 

discriminatory because the Exchange 

will apply the same fee to all similarly 

situated members that meet its 

requirements. The proposed fee is only 

available to Tape A securities because 

DOT and LIST Orders include Tape A 

securities, whereas the Exchange’s fee 

tiers for routing and execution of Tape 

C and B securities are covered under 

Rules 7018(a)(1) and (3), respectively. 

These rules provide the fees assessed for 

execution of Tape C and B securities on 

the primary listing exchange, which 

have previously been found to be 

equitably allocated.11 Moreover, the fee 

is more closely aligned with the fee that 

the Exchange assesses for the execution 

of LIST Orders in Tape B securities that 

execute in the NYSEAmex closing 

process. The Exchange believes that the 

lower fee may attract more Orders in 

Tape A securities to the Exchange and 

promote the use of the Exchange’s 

routing functionality, while also 

providing all members with reduced 

fees for the execution of their DOT and 

LIST Orders. Last, the Exchange notes 

that participation in the Exchange’s 

various fee and credit tiers is completely 

voluntary, and members may always 

elect to enter Orders in Tape A 

securities that they wish to execute on 

NYSE either directly or through 

intermediaries. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. In terms of 

inter-market competition, the Exchange 

notes that it operates in a highly 

competitive market in which market 

participants can readily favor competing 

venues if they deem fee levels at a 

particular venue to be excessive, or 

rebate opportunities available at other 

venues to be more favorable. In such an 

environment, the Exchange must 

continually adjust its fees to remain 

competitive with other exchanges and 

with alternative trading systems that 

have been exempted from compliance 

with the statutory standards applicable 

to exchanges. Because competitors are 

free to modify their own fees in 

response, and because market 

participants may readily adjust their 

order routing practices, the Exchange 

believes that the degree to which fee 

changes in this market may impose any 

burden on competition is extremely 

limited. 

In this instance, the proposed rule 

change does not impose a burden on 

competition because the Exchange’s 

execution services are completely 

voluntary and subject to extensive 

competition both from other exchanges 

and from off-exchange venues. With 

respect to the first proposed change, the 

Exchange will apply the same volume 

thresholds to all members for 

transactions in the securities of all three 

of the Tapes. As noted, participation in 

the Exchange’s various credit tiers is 

completely voluntary, and the Exchange 

does not believe that the new 

Consolidated Volume thresholds will 

significantly impact the number of 

members that will likely qualify for the 

corresponding credit. Members may 

always elect to either qualify for the 

new Consolidated Volume thresholds by 

adding sufficient liquidity to the 

Exchange to meet the new volume 

requirement, or by electing to qualify for 

a different credit. As such, the Exchange 

believes that the proposed Consolidated 

Volume thresholds will not negatively 

impact who will qualify for the 

corresponding credits, but will rather 

have a positive impact on overall market 

quality as members increase their 

participation in the market to qualify for 

the particular credit. With respect to the 

second proposed change, the Exchange 

does not believe that the reduction in 

the fee assessed for execution of DOT 

and LIST Orders in Tape A securities 

burdens competition, but it rather 

promotes competition by making the 

Exchange a more attractive venue to 

enter such Orders. If, however, the 

Exchange is incorrect and the changes 

proposed herein are unattractive to 

members, it is likely that Nasdaq will 

lose market share as a result. 

Accordingly, Nasdaq does not believe 

that the proposed changes will impair 

the ability of members or competing 

order execution venues to maintain 

their competitive standing in the 

financial markets. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act.12

At any time within 60 days of the 

filing of the proposed rule change, the 


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36992 Federal Register / Vol. 83, No. 147 / Tuesday, July 31, 2018 / Notices 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3As discussed below, the Exchange proposes to 

replace Chapter 17, which sets forth processes for 

persons aggrieved by Exchange actions, including 

adverse membership or association determinations, 

by adding to Exchange Rules 302 and 307 

provisions adapted from BX Rules 1015 and 1016, 

which provide for similar adjudicative processes. 

Portions of proposed Chapter 90 also replace 

portions of Chapter 17, e.g., statutory 

disqualification in the 9520 Series. 

4The Exchange proposes to add Chapters 23–79 

and Chapters 81–89 to its Rules, but reserve such 

Chapters for future use. 

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– 

NASDAQ–2018–057 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–2018–057. 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–2018–057, and 

should be submitted on or before 

August 21, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–16270 Filed 7–30–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83703; File No. SR–ISE– 

2018–59] 

Self-Regulatory Organizations; Nasdaq 

ISE, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Align Existing 

Investigatory and Disciplinary 

Processes and Related Rules With the 

Investigatory and Disciplinary 

Processes and Associated Rules of 

Nasdaq BX, Inc. 

July 25, 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 12, 

2018, Nasdaq ISE, LLC (‘‘ISE’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘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 align its 

existing investigatory and disciplinary 

processes and related rules with the 

investigatory and disciplinary processes 

and associated rules of Nasdaq BX, Inc. 

(‘‘BX’’). 

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 Exchange proposes to eliminate 

its existing processes for: (1) Summarily 

suspending and limiting or prohibiting 

access to Exchange services by 

Exchange members (‘‘Members’’), 

persons associated with such Members 

(‘‘Associated Persons’’), (2) investigating 

and disciplining Exchange Members 

and Associated Persons, and (3) 

adjudicating actions brought by persons 

economically aggrieved by certain 

Exchange actions. The Exchange also 

seeks to eliminate Chapters 15, 16, and 

17 3 of the Exchange’s Rules (with 

certain exceptions, discussed below), 

which set forth and govern such 

processes, respectively, and it proposes 

to eliminate the Exchange’s Business 

Conduct Committee (‘‘BCC’’), which is a 

body that exists to help to enforce the 

Exchange’s Rules. The Exchange further 

proposes to adopt, in place of the 

aforementioned Rules, the investigatory, 

disciplinary, and adjudicatory processes 

of the Exchange’s sister exchange, BX. It 

also proposes to replace the BCC with 

an Exchange Review Council that is 

similar to one that BX has in place. 

Specifically, the Exchange proposes to 

establish new Chapters 80 and 90 of its 

Rules 4 and incorporate by reference 

into those Chapters (again with certain 

exceptions, described below) the BX 


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