39484 Federal Register / Vol. 83, No. 154 / Thursday, August 9, 2018 / Notices 

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

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78f(b). 

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

‘‘Commission’’) has submitted to the 

Office of Management and Budget a 

request for extension of the previously 

approved collection of information 

discussed below. 

Form ADV–E (17 CFR 279.8) is the 

cover sheet for certificates of accounting 

filed pursuant to rule 206(4)–2 under 

the Investment Advisers Act of 1940 (17 

CFR 275.206(4)–2). The rule further 

requires that the public accountant file 

with the Commission a Form ADV–E 

and accompanying statement within 

four business days of the resignation, 

dismissal, removal or other termination 

of its engagement. 

The Commission has estimated that 

compliance with the requirement to 

complete Form ADV–E imposes a total 

burden of approximately 0.05 hours (3 

minutes) per respondent. Based on 

current information from advisers 

registered with the Commission, the 

Commission staff estimates that 1,749 

filings will be submitted with respect to 

surprise examinations and 38 filings 

will be submitted with respect to 

termination of accountants. Based on 

these estimates, the total estimated 

annual burden would be 89.35 hours 

((1,749 filings × .05 hours) + (38 filings 

× .05 hours)). 

The information provided on Form 

ADV–E is mandatory. Responses will 

not be kept confidential. An agency may 

not conduct or sponsor a collection of 

information unless it displays a 

currently valid OMB control number. 

No person shall be subject to any 

penalty for failing to comply with a 

collection of information subject to the 

PRA that does not display a valid OMB 

control number. 

The public may view the background 

documentation for this information 

collection at the following website, 

www.reginfo.gov. Comments should be 

directed to: (i) Desk Officer for the 

Securities and Exchange Commission, 

Office of Information and Regulatory 

Affairs, Office of Management and 

Budget, Room 10102, New Executive 

Office Building, Washington, DC 20503, 

or by sending an email to: Shagufta_

Ahmed@omb.eop.gov; and (ii) Pamela 

Dyson, Director/Chief Information 

Officer, Securities and Exchange 

Commission, c/o Candace Kenner, 100 F 

Street NE, Washington, DC 20549 or 

send an email to: PRA_Mailbox@

sec.gov. Comments must be submitted to 

OMB within 30 days of this notice. 

Dated: August 3, 2018. 

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–16999 Filed 8–8–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83770; File No. SR–BX– 

2018–035] 

Self-Regulatory Organizations; Nasdaq 

BX, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend BX Options 

Rules at Chapter I, Section 1 To Define 

Certain Terms 

August 3, 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 23, 

2018, Nasdaq BX, Inc. (‘‘BX’’ 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 BX 

Options Rules at Chapter I, Section 1 to 

define certain terms. 

The text of the proposed rule change 

is available on the Exchange’s website at 

http://nasdaqbx.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 

BX rules currently do not define an 

‘‘in-the-money’’ or ‘‘out-of-the-money’’ 

option. The Exchange proposes to 

define these terms at Chapter I, Section 

1 to bring greater transparency to BX 

rules. In addition, the Exchange notes 

that the terms, ‘‘in-the-money’’ and 

‘‘out-of-the-money’’ are generally 

accepted terms in the options industry. 

These terms are utilized throughout the 

options industry. The Exchange desires 

for its Participants to have a clear 

understanding of how BXs System 

defines these terms. 

The Exchange proposes to define an 

‘‘in-of-the-money’’ option at Chapter I, 

Section 1(a)(68). The Exchange proposes 

that the term ‘‘in-the-money’’ shall 

mean the following: For call options, all 

strike prices below the offer in the 

underlying security on the primary 

listing market; for put options, all strike 

prices above the bid in the underlying 

security on the primary listing market. 

The Exchange proposes to define an 

‘‘out-of-the-money’’ option at Chapter I, 

Section 1(a)(69). The Exchange proposes 

that the term ‘‘out-of-the-money’’ shall 

mean the following: For call options, all 

strike prices above the offer in the 

underlying security on the primary 

listing market; for put options, all strike 

prices below the bid in the underlying 

security on the primary listing market. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,3 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,4

in particular, in that it is designed to 

promote just and equitable principles of 

trade, to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general to protect 

investors and the public interest. The 

Exchange’s proposal to define the terms 

‘‘in-the-money’’ and ‘‘out-of-the-money’’ 

options is consistent with the Act and 

protects investors and the public 

interest by bringing greater transparency 

to the Rulebook. In addition, the 

Exchange notes that the terms, ‘‘in-themoney’’ and ‘‘out-of-the-money’’ are 

generally accepted terms in the options 

industry. These terms are utilized 

throughout the options industry. The 

Exchange desires for its Participants to 

have a clear understanding of how BX’s 

System defines these terms. 

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. The 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 154 / Thursday, August 9, 2018 / Notices 39485 

5 15 U.S.C. 78s(b)(3)(A)(iii). 

6 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. 

7 17 CFR 240.19b–4(f)(6). 

8 17 CFR 240.19b–4(f)(6)(iii). 

9For 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). 10 17 CFR 200.30–3(a)(12). 

Exchange’s proposal to define the terms 

‘‘in-the-money’’ and ‘‘out-of-the-money’’ 

options does not unduly burden 

competition, rather it adds greater 

transparency to the Rulebook. 

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 5 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.6

A proposed rule change filed under 

Rule 19b–4(f)(6) 7 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),8 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 immediately defining the 

terms ‘‘in-the-money’’ and ‘‘out-of-themoney’’ options within its Rulebook 

would provide greater transparency to 

its Participants. For the same reason, 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.9

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– 

BX–2018–035 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–BX–2018–035. 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–BX–2018–035 and should 

be submitted on or before August 30, 

2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–17005 Filed 8–8–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Submission for OMB Review; 

Comment Request 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE, Washington, DC 

20549–2736 

Extension: 

Rule 206(4)–3, SEC File No. 270–218, OMB 

Control No. 3235–0242 

Notice is hereby given that, pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et seq.), the Securities 

and Exchange Commission 

(‘‘Commission’’) has submitted to the 

Office of Management and Budget a 

request for approval of extension of the 

previously approved collection of 

information discussed below. 

Rule 206(4)–3 (17 CFR 275.206(4)–3) 

under the Investment Advisers Act of 

1940, which is entitled ‘‘Cash Payments 

for Client Solicitations,’’ provides 

restrictions on cash payments for client 

solicitations. The rule requires that an 

adviser pay all solicitors’ fees pursuant 

to a written agreement. When an adviser 

will provide only impersonal advisory 

services to the prospective client, the 

rule imposes no disclosure 

requirements. When the solicitor is 

affiliated with the adviser and the 

adviser will provide individualized 

advisory services to the prospective 

client, the solicitor must, at the time of 

the solicitation or referral, indicate to 

the prospective client that he is 

affiliated with the adviser. When the 

solicitor is not affiliated with the 

adviser and the adviser will provide 

individualized advisory services to the 

prospective client, the solicitor must, at 

the time of the solicitation or referral, 

provide the prospective client with a 

copy of the adviser’s brochure and a 

disclosure document containing 

information specified in rule 206(4)–3. 

Amendments to rule 206(4)–3, adopted 


sradovich on DSK3GMQ082PROD with NOTICES