Federal Register / Vol. 83, No. 159 / Thursday, August 16, 2018 / Notices 40805 

16 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Rule 4702(b)(14). 

4Tape 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. 

5To be designated a QMM, a member must meet 

the following criteria: (1) The member is not 

assessed any ‘‘Excess Order Fee’’ under Rule 7018 

during the month; (2) the member quotes at the 

NBBO at least 25% of the time during regular 

market hours in an average of at least 1,000 

securities per day during the month; and (3) the 

member is a registered Nasdaq market maker. See 

Rule 7014(d). 

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–2018–063 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–2018–063. 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–2018–063, and 

should be submitted on or before 

September 6, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2018–17635 Filed 8–15–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83823; File No. SR– 

NASDAQ–2018–064] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend 

Fees Under Rules 7014(e) and 7018(a) 

August 10, 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 August 

1, 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 fees at Rule 7014(e) to apply 

additional criteria required to qualify for 

a fee of $0.0029 per share executed, and 

to amend Rule 7018(a) to assess no fees 

for Midpoint Extended Life Orders 3 in 

securities of all three Tapes.4

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 the Exchange’s fees 

at Rule 7014(e), concerning Qualified 

Market Makers (‘‘QMMs’’),5 to apply 

additional criteria required to qualify for 

a fee of $0.0029 per share executed, and 

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, to assess no fees 

for Midpoint Extended Life Orders in 

securities of all three Tapes. Rule 

7014(e) provides the fees and rebates 

applicable to QMMs. 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 assess no fee 

for all Midpoint Extended Life Orders. 

First Change 

Under Rule 7014(e), the Exchange 

charges a QMM $0.0030 per share 

executed for removing liquidity in 

Nasdaq-listed securities priced at $1 or 

more, and $0.00295 per share executed 

for removing liquidity in securities 

priced at $1 or more per share listed on 


sradovich on DSK3GMQ082PROD with NOTICES
40806 Federal Register / Vol. 83, No. 159 / Thursday, August 16, 2018 / Notices 

6Consolidated Volume is 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. See Rule 7018(a). 

7A ‘‘Market On Close Order’’ or ‘‘MOC Order’’ is 

an Order Type entered without a price that may be 

executed only during the Nasdaq Closing Cross. See 

Rule 4702(b)(11). 

8A ‘‘Limit On Close Order’’ or ‘‘LOC Order’’ is 

an Order Type entered with a price that may be 

executed only in the Nasdaq Closing Cross, and 

only if the price determined by the Nasdaq Closing 

Cross is equal to or better than the price at which 

the LOC Order was entered. See Rule 4702(b)(12). 

9See Rule 4702(b)(14). 

10See Securities Exchange Act Release No. 83522 

(June 26, 2018), 83 FR 30998 (July 2, 2018) (SR– 

NASDAQ–2018–047). 

11Transactions in Midpoint Extended Life Orders 

below $1 will remain at no cost. 

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

13 15 U.S.C. 78f(b)(4) and (5). 

14See Securities Exchange Act Release No. 78977 

(September 29, 2016), 81 FR 69140 (October 5, 

2016) (SR–NASDAQ–2016–032). 

exchanges other than Nasdaq, if the 

QMM’s volume of liquidity added 

through one or more of its Nasdaq 

Market Center MPIDs during the month 

(as a percentage of Consolidated 

Volume 6) is not less than 0.85%. The 

Exchange assesses a charge of $0.0029 

per share executed for removing 

liquidity in securities priced at $1 or 

more per share listed on exchanges 

other than Nasdaq if the QMM has a 

combined Consolidated Volume (adding 

and removing liquidity) of at least 3.7%, 

and the QMM also meets the QMM Tier 

2 qualification criteria. The QMM Tier 

2 qualification criteria requires a QMM 

to execute shares of liquidity provided 

in all securities through one or more of 

its Nasdaq Market Center MPIDs that 

represent above 0.90% of Consolidated 

Volume during the month. 

The Exchange is proposing to require 

a QMM to have MOC/LOC volume 

greater than 0.25% of Consolidated 

Volume in addition to having combined 

Consolidated Volume (adding and 

removing liquidity) requirement to at 

least 3.7%, to qualify for the $0.0029 per 

share executed fee. Market on Close 

(MOC) 7 and Limit on Close (LOC) 8

Orders are designated to participate in 

the Nasdaq Closing Cross. This 

additional criteria is reflective of the 

Exchange’s desire to provide incentives 

to attract order flow to the Exchange in 

securities listed on exchanges other than 

Nasdaq in return for significant marketimproving behavior. In this case, the 

Exchange is promoting participation in 

the Nasdaq Closing Cross by QMMs by 

requiring MOC/LOC volume above 

0.25% of Consolidated Volume. The 

addition of a modest level of Nasdaq 

Closing Cross participation to the 

qualification criteria will help ensure 

that QMMs are providing significant 

market-improving behavior in return for 

the fee. 

Second Change 

The purpose of the second proposed 

rule change is to amend the Exchange’s 

transaction fees at Rule 7018(a)(1)–(3) to 

charge no fee for execution of Midpoint 

Extended Life Orders in securities 

priced $1 or more. The Midpoint 

Extended Life Order is an Order Type 

with a Non-Display Order Attribute that 

is priced at the midpoint between the 

NBBO and that will not be eligible to 

execute until the Holding Period of one 

half of a second has passed after 

acceptance of the Order by the System.9

Once a Midpoint Extended Life Order 

becomes eligible to execute by existing 

unchanged for the Holding Period, the 

Order may only execute against other 

eligible Midpoint Extended Life Orders. 

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. The 

Exchange historically had not assessed 

a fee for the execution of any Midpoint 

Extended Life Order, but in July 2018 it 

began to assess a fee of $0.0006 per 

share executed for executions in 

Midpoint Extended Life Orders.10 The 

Exchange, however, continued to not 

assess a fee for the execution of 

Midpoint Extended Life Orders if the 

member executed at least at least 

250,000 shares in Midpoint Extended 

Life Orders in June 2018. The Exchange 

is now proposing to assess no charge for 

any execution 11 of a Midpoint Extended 

Life Order. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,12 in general, and furthers the 

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

of the Act,13 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 the 

$0.0029 per share executed charge for 

removing liquidity in securities priced 

at $1 or more per share listed on 

exchanges other than Nasdaq will 

continue to be reasonable because the 

fee will remain unchanged. When the 

Exchange adopted the fee,14 it believed 

that assessing the fee was reasonable 

because it was set at a level that is lower 

than the standard removal fee of 

$0.0030 per share executed, thereby 

providing an incentive to market 

participants, and it was also based on 

the Exchange’s analysis of the cost to 

the Exchange of offering a lower fee, 

thereby decreasing the revenue derived 

from transactions by members that 

qualify for the fee, and the desired 

benefit to the market provided by the 

members that meet the fee’s 

qualification criteria. The Exchange 

noted that the fee’s qualification criteria 

provided an incentive to members to 

increase their participation in the 

market as measured by Consolidated 

Volume, which benefits all market 

participants. The Exchange also noted 

that members may qualify for a 

$0.00295 per share executed fee for 

removing liquidity in Tape A or B 

securities priced at $1 or more if the 

member’s volume of liquidity added 

through one or more of its Nasdaq 

Market Center MPIDs during the month 

(as a percentage of Consolidated 

Volume) is not less than 0.80%, which 

was subsequently increased to 0.85%. 

The Exchange explained that the 

proposed fee would continue to require 

a member to both qualify under the Tier 

2 criteria that requires the member to 

execute shares of liquidity provided in 

all securities through one or more of its 

Nasdaq Market Center MPIDs that 

represent above 0.90% of Consolidated 

Volume during the month, and also 

provide an increased combined 

Consolidated Volume (adding and 

removing liquidity) requirement (which 

was at least 3.5%, but subsequently 

increased to at least 3.7%). 

Consequently, the Exchange noted that 

to qualify for a lower transaction fee for 

removing liquidity in Tape A or B 

securities under the QMM Program, the 

member must both provide greater 

Consolidated Volume through adding 

liquidity during the month (i.e., 0.90% 

versus 0.80%) and provide a certain 

level of combined Consolidated 

Volume, which accounts for both 

adding liquidity and removing liquidity. 

As noted above, the Exchange is not 

proposing to change the fee and the 

analysis described above remains valid. 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 159 / Thursday, August 16, 2018 / Notices 40807 

15RTFY is a routing option available for an order 

that qualifies as a Designated Retail Order under 

which orders check the System for available shares 

only if so instructed by the entering firm and are 

thereafter routed to destinations on the System 

routing table. If shares remain unexecuted after 

routing, they are posted to the book. Once on the 

book, should the order subsequently be locked or 

crossed by another market center, the System will 

not route the order to the locking or crossing market 

center. RTFY is designed to allow orders to 

participate in the opening, reopening and closing 

process of the primary listing market for a security. 

See Rule 4758(a)(1)(A)(v)b. 

16See Rule 7018. 

17Based on whether the member is removing or 

adding liquidity. See Rule 7018(a) and (b). 

Accordingly, the Exchange believes that 

the fee remains reasonable. 

The Exchange believes that the fee 

will continue to be an equitable 

allocation and not unfairly 

discriminatory with the new MOC and 

LOC criteria because it is reflective of 

the success that the lower charge tier 

has had in promoting beneficial market 

participation, as measured by combined 

Consolidated Volume (adding and 

removing liquidity). Consequently, the 

Exchange believes that requiring QMMs 

to provide additional beneficial market 

participation through the execution of 

MOC and LOC Orders in the Nasdaq 

Closing Cross is warranted. The 

Exchange does not believe that the new 

requirement will result in a significant 

reduction in the number of QMMs that 

will likely qualify for the lower 

transaction fee. Moreover, the Exchange 

is not limiting which QMMs may 

qualify for the reduced charge. As 

noted, the QMM Program is intended to 

encourage members to promote price 

discovery and market quality by quoting 

at the NBBO for a significant portion of 

each day in a large number of securities, 

thereby benefitting Nasdaq and other 

investors by committing capital to 

support the execution of orders. To 

receive the $0.0029 per share executed 

charge, a member must meet the Tier 2 

criteria, which requires the QMM to 

execute shares of liquidity provided in 

all securities through one or more of its 

Nasdaq Market Center MPIDs that 

represent above 0.90% of Consolidated 

Volume during the month. In addition, 

the QMM must provide a certain level 

of combined Consolidated Volume, 

which accounts for both adding 

liquidity and removing liquidity. The 

Exchange is proposing to add new 

criteria designed to promote 

participation in the Nasdaq Closing 

Cross to make the qualification criteria 

required to receive the incentive more 

meaningful in terms of the beneficial 

market activity required to receive the 

reduced charge. QMMs may continue to 

qualify for the reduced charge while 

also providing more beneficial market 

participation. In this regard, any QMM 

may choose to provide the level of MOC 

and/or LOC Orders required to be 

eligible for the fee. Thus, the Exchange 

does not believe that the new criteria 

discriminates unfairly and believes that 

it is equitably allocated. 

Second Change 

The Exchange believes that allowing 

transactions of Midpoint Extended Life 

Orders at no cost is reasonable because 

it currently offers them at no cost, as 

described above. In addition, the 

Exchange does not charge a fee for 

transactions in Orders with a RTFY 

routing Order Attribute.15 Such an 

Order must meet the definition of 

Designated Retail Order, which requires, 

among other things, that the Order not 

originate from a trading algorithm or 

any other computerized methodology.16

Thus, allowing transactions of the RTFY 

Order Attribute at no cost is designed to 

promote the Exchange as a venue for 

retail investor Orders. Likewise, the 

Exchange is proposing to allow all 

transactions in Midpoint Extended Life 

Orders at no cost to promote use of such 

Orders and consequently the quality of 

the market in Midpoint Extended Life 

Orders. 

The Exchange believes that not 

charging a fee for executions in 

Midpoint Extended Life Order is an 

equitable allocation and is not unfairly 

discriminatory because the Exchange 

will apply the same fee to all similarly 

situated members. The Midpoint 

Extended Life Order may be used by any 

market participant that is willing to 

satisfy the requirements of the Order 

Type and therefore qualify for the 

proposed zero fee tiers. Moreover, 

members not interested in using 

Midpoint Extended Life Orders will 

continue to have the ability to enter 

midpoint Orders in the Nasdaq System, 

which have both fees and credits 

associated with their execution.17 The 

Exchange will likely assess fees again 

for transactions in Midpoint Extended 

Life Orders in the near future, once it 

has had time to further assess the nature 

of the market in Midpoint Extended Life 

Orders to determine the appropriate fee. 

Accordingly, the proposed fee does not 

discriminate in any way. 

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, although the change to the 

QMM qualification criteria may limit 

the benefits of the program to the extent 

QMMs that currently qualify for the 

$0.0029 per share executed charge are 

unable to meet the more stringent 

qualification criteria, the incentive is 

reflective of the need for exchanges to 

offer significant financial incentives to 

attract order flow in return for 

meaningful market-improving behavior. 

The Exchange, however, does not 

believe that the proposed qualification 

criteria will negatively impact who will 

qualify for the $0.0029 per share 

executed charge but will rather have a 

positive impact on overall market 

quality as QMMs increase their 

participation in the Nasdaq Closing 

Cross to qualify for the lower charge. If, 

however, the Exchange is incorrect and 

the changes proposed herein are 

unattractive to QMMs, it is likely that 

Nasdaq will lose market share as a 

result. 

With respect to the second proposed 

change, assessing no fee for executions 

of Midpoint Extended Life Orders will 

not place any burden on competition, 

but rather will help continue to attract 

interest in the use of the Order Type by 

making it attractive to members that 

seek to execute at the midpoint with 

like-minded members. To the extent the 

proposal is successful in promoting 

liquidity in Midpoint Extended Life 

Orders, other markets may be incented 

to provide a competitive response by 

innovating like the Exchange has done 

in this instance. To the extent the 

proposal is not successful in promoting 

liquidity in Midpoint Extended Life 


sradovich on DSK3GMQ082PROD with NOTICES
40808 Federal Register / Vol. 83, No. 159 / Thursday, August 16, 2018 / Notices 

18 15 U.S.C. 78s(b)(3)(A)(ii). 

19 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

Orders, it would have no meaningful 

impact on competition as few 

transactions in Midpoint Extended Life 

Orders would occur. In sum, if the 

proposal to assess no fees for executions 

of Midpoint Extended Life Orders is 

unattractive to market participants, it is 

likely that the Exchange will not gain 

any market share as a result and 

therefore no competitive impact. 

Accordingly, the Exchange 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.18

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– 

NASDAQ–2018–064 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE, Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NASDAQ–2018–064. 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 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–2018–064, and 

should be submitted on or before 

September 6, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2018–17634 Filed 8–15–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83821; File No. SR–NYSE– 

2018–34] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing of Proposed Rule Change To 

Amend NYSE Rule 104 Governing 

Transactions by Designated Market 

Makers 

August 10, 2018. 

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

Securities Exchange Act of 1934 

(‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on July 31, 

2018, New York Stock Exchange LLC 

(‘‘NYSE’’ 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 consolidate 

and restructure subsections (g), (h) and 

(i) of Rule 104 governing transactions by 

Designated Market Makers (‘‘DMM’’). 

The proposed rule change is available 

on the Exchange’s website at 

www.nyse.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 

self-regulatory organization 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 those 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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to consolidate 

and restructure subsections (g), (h) and 

(i) of Rule 104 governing DMM 

transactions. 

Background 

Rule 104 sets forth the obligations of 

Exchange DMMs. Under Rule 104(a), 

DMMs registered in one or more 

securities traded on the Exchange are 

required to engage in a course of 

dealings for their own account to assist 

in the maintenance of a fair and orderly 

market insofar as reasonably practicable. 

Rule 104(a) also enumerates the specific 

responsibilities and duties of a DMM, 

including: (1) Maintenance of a 

continuous two-sided quote, which 


sradovich on DSK3GMQ082PROD with NOTICES