42722 Federal Register / Vol. 83, No. 164 / Thursday, August 23, 2018 / Notices 

13 15 U.S.C. 78s(b)(3)(A). 

14 17 CFR 240.19b–4(f). 

15 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78mm(a)(1). 

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

3See Letter from Brett M. Kitt, Senior Associate 

General Counsel, Nasdaq Inc., to Brent Fields, 

Secretary, Commission, dated July 16, 2018 

(‘‘Exemptive Request’’). 

4See Securities Exchange Act Release Nos. 83703 

(July 25, 2018) (SR–ISE–2018–59); 83704 (July 25, 

2018) (SR–GEMX–2018–24); and 83705 (July 25, 

2018) (SR–MRX–2018–23). 

5 17 CFR 240.0–12. 

6See Exemptive Request, supra note 3, at 2. 

The Exchange is obligated to ensure that 

the amount of regulatory revenue 

collected from the ORF, in combination 

with its other regulatory fees and fines, 

does not exceed regulatory costs. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither solicited nor 

received comments on the proposed 

rule change. 

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) 

of the Act 13 and paragraph (f) of Rule 

19b–4 thereunder.14 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 necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. 

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 No. SR– 

CboeEDGX–2018–033 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 No. 

SR–CboeEDGX–2018–033. 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 No. 

SR–CboeEDGX–2018–033, and should 

be submitted on or before September 13, 

2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–18165 Filed 8–22–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83887] 

Order Granting Applications by 

Nasdaq ISE, LLC, Nasdaq GEMX, LLC, 

and Nasdaq MRX, LLC for Exemption 

Pursuant to Section 36(a) of the 

Exchange Act From the Rule Filing 

Requirements of Section 19(b) of the 

Exchange Act With Respect to Certain 

Rules Incorporated by Reference 

August 20, 2018. 

Nasdaq ISE, LLC (‘‘ISE’’), Nasdaq 

GEMX, LLC (‘‘GEMX’’), and Nasdaq 

MRX, LLC (‘‘MRX’’) (each, a ‘‘Nasdaq 

Exchange,’’ and collectively, the 

‘‘Nasdaq Exchanges’’) have filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) an 

application for an exemption under 

Section 36(a)(1) of the Securities 

Exchange Act of 1934 (‘‘Exchange 

Act’’) 1 from the rule filing requirements 

of Section 19(b) of the Exchange Act 2

with respect to certain rules of Nasdaq 

BX, Inc. (‘‘BX’’), an affiliate of the 

Nasdaq Exchanges, that the Nasdaq 

Exchanges seek to incorporate by 

reference.3 Section 36 of the Exchange 

Act authorizes the Commission to 

conditionally or unconditionally 

exempt any person, security, or 

transaction, or any class thereof, from 

any provision of the Exchange Act or 

rule thereunder, if necessary or 

appropriate in the public interest and 

consistent with the protection of 

investors. 

Recently, the Nasdaq Exchanges each 

filed a proposed rule change 4 under 

Section 19(b) of the Exchange Act to 

largely replace their existing 

investigatory, disciplinary, and 

adjudicatory rules with those contained 

in the BX Rule 8000 and 9000 Series, as 

such rules may be in effect from time to 

time. In the proposed rule changes, the 

Nasdaq Exchanges proposed to 

incorporate by reference the BX Rule 

8000 and 9000 Series into new Chapters 

80 and 90 of their respective rulebooks, 

and thus make these BX Rules 

applicable to their members, associated 

persons, and other persons subject to 

their jurisdiction. When the proposed 

rule changes become operative, Nasdaq 

Exchange members, associated persons, 

and other persons subject to the 

jurisdiction of the Nasdaq Exchanges 

will be required to comply with the BX 

Rule 8000 and 9000 Series as though 

such rules are fully set forth within each 

of the Nasdaq Exchange’s rulebooks. 

The Nasdaq Exchanges have 

requested, pursuant to Rule 0–12 under 

the Exchange Act,5 that the Commission 

grant the Nasdaq Exchanges an 

exemption from the rule filing 

requirements of Section 19(b) of the 

Exchange Act for changes to each of the 

Nasdaq Exchange’s rules that are 

effected solely by virtue of a change to 

the BX Rule 8000 and 9000 Series that 

are incorporated by reference. 

Specifically, the Nasdaq Exchanges 

request that they be permitted to 

incorporate by reference changes made 

to the BX Rule 8000 and 9000 Series 

that are cross-referenced in each of the 

Nasdaq Exchange’s rules, without the 

need for each Nasdaq Exchange to file 

separately the same proposed rule 

changes pursuant to Section 19(b) of the 

Exchange Act.6


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Federal Register / Vol. 83, No. 164 / Thursday, August 23, 2018 / Notices 42723 

7The Nasdaq Exchanges state that they will 

provide such notice on their websites in the same 

section they use to post their own proposed rule 

change filings pursuant to Rule 19b–4(l) within the 

timeframe required by such Rule. In addition, the 

Nasdaq Exchanges state that their website will also 

include a link to the BX website where the 

proposed rule change filings are located. Id. at 3. 

8 Id. 

9 Id. at 2. 

10See, e.g., Securities Exchange Act Release Nos. 

80338 (March 29, 2017), 82 FR 16464 (April 4, 

2017) (order granting exemptive request from MIAX 

PEARL, LLC relating to rules of Miami International 

Securities Exchange, LLC incorporated by 

reference); 72650 (July 22, 2014), 79 FR 44075 (July 

29, 2014) (order granting exemptive requests from 

NASDAQ OMX BX, Inc. and the NASDAQ Stock 

Market LLC relating to rules of NASDAQ OMX 

PHLX LLC incorporated by reference); 67256 (June 

26, 2012), 77 FR 39277, 39286 (July 2, 2012) (order 

approving SR–BX–2012–030 and granting 

exemptive request relating to rules incorporated by 

reference by the BX Options rules); 61534 (February 

18, 2010), 75 FR 8760 (February 25, 2010) (order 

granting BATS Exchange, Inc.’s exemptive request 

relating to rules incorporated by reference by the 

BATS Exchange Options Market rules) (‘‘BATS 

Options Market Order’’); and 57478 (March 12, 

2008), 73 FR 14521, 14539–40 (March 18, 2008) 

(order approving SR–NASDAQ–2007–004 and SR– 

NASDAQ–2007–080, and granting exemptive 

request relating to rules incorporated by reference 

by The NASDAQ Options Market). 

11See 17 CFR 240.0–12 and Securities Exchange 

Act Release No. 39624 (February 5, 1998), 63 FR 

8101 (February 18, 1998) (‘‘Commission Procedures 

for Filing Applications for Orders for Exemptive 

Relief Pursuant to Section 36 of the Exchange Act; 

Final Rule’’). 

12See BATS Options Market Order, supra note 10 

(citing Securities Exchange Act Release No. 49260 

(February 17, 2004), 69 FR 8500 (February 24, 2004) 

(order granting exemptive request relating to rules 

incorporated by reference by several SROs) (‘‘2004 

Order’’)). 

13See BATS Options Market Order, supra note 

10, 75 FR at 8761; see also 2004 Order, supra note 

12, 69 FR at 8502. 

14 15 U.S.C. 78mm. 

15 17 CFR 200.30–3(a)(76). 

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

2 17 CFR 240.19b–4. 

The Nasdaq Exchanges represent that 

the BX Rule 8000 and 9000 Series are 

not trading rules. Moreover, the Nasdaq 

Exchanges state that in each instance, 

the Nasdaq Exchanges propose to 

incorporate by reference categories of 

rules (rather than individual rules 

within a category) that are regulatory in 

nature. The Nasdaq Exchanges will, as 

a condition of this exemption, provide 

written notice to their members 

whenever BX proposes a change to its 

Rule 8000 and 9000 Series.7 Such notice 

will alert the members of each Nasdaq 

Exchange to the proposed rule change 

and give them an opportunity to 

comment on the proposal. The Nasdaq 

Exchanges state that they will also 

inform members in writing when the 

Commission approves any such 

proposed changes.8

The Nasdaq Exchanges believe this 

exemption is necessary and appropriate, 

because it will result in the Nasdaq 

Exchanges’ rules being consistent with 

the relevant cross-referenced BX rules at 

all times, thus ensuring that the Nasdaq 

Exchanges and BX maintain a 

harmonious system of investigating, 

disciplining, and adjudicating the rights 

of their respective members, associated 

persons, and other persons subject to 

their jurisdiction. Without such an 

exemption, members of the Nasdaq 

Exchanges and BX could become subject 

to different standards for investigations 

and disciplinary actions.9

The Commission has issued 

exemptions similar to the Nasdaq 

Exchanges’ request.10 In granting one 

such exemption in 2010, the 

Commission repeated a prior, 2004 

Commission statement that it would 

consider similar future exemption 

requests from other self-regulatory 

organizations (‘‘SROs’’), provided that: 

• An SRO wishing to incorporate 

rules of another SRO by reference has 

submitted a written request for an order 

exempting it from the requirement in 

Section 19(b) of the Exchange Act to file 

proposed rule changes relating to the 

rules incorporated by reference, has 

identified the applicable originating 

SRO(s), together with the rules it wants 

to incorporate by reference, and 

otherwise has complied with the 

procedural requirements set forth in the 

Commission’s release governing 

procedures for requesting exemptive 

orders pursuant to Rule 0–12 under the 

Exchange Act; 11

• The incorporating SRO has 

requested incorporation of categories of 

rules (rather than individual rules 

within a category) that are not trading 

rules (e.g., the SRO has requested 

incorporation of rules such as margin, 

suitability, or arbitration); and 

• The incorporating SRO has 

reasonable procedures in place to 

provide written notice to its members 

each time a change is proposed to the 

incorporated rules of another SRO.12

The Commission believes that the 

Nasdaq Exchanges have satisfied each of 

these conditions. The Commission also 

believes that granting the Nasdaq 

Exchanges an exemption from the rule 

filing requirements under Section 19(b) 

of the Exchange Act will promote 

efficient use of Commission and Nasdaq 

Exchange resources by avoiding 

duplicative rule filings based on 

simultaneous changes to identical rule 

text sought by more than one SRO.13

The Commission therefore finds it 

appropriate in the public interest and 

consistent with the protection of 

investors to exempt the Nasdaq 

Exchanges from the rule filing 

requirements under Section 19(b) of the 

Exchange Act with respect to the abovedescribed rules they have incorporated 

by reference. This exemption is 

conditioned upon the Nasdaq 

Exchanges promptly providing written 

notice to their members whenever the 

BX changes a rule that the Nasdaq 

Exchanges have incorporated by 

reference. 

Accordingly, it is ordered, pursuant to 

Section 36 of the Exchange Act,14 that 

the Nasdaq Exchanges are exempt from 

the rule filing requirements of Section 

19(b) of the Exchange Act solely with 

respect to changes to the rules identified 

in their request that incorporate by 

reference certain BX rules that are the 

result of changes to such BX rules, 

provided that the Nasdaq Exchanges 

promptly provide written notice to their 

members whenever the BX proposes to 

change a rule that the Nasdaq Exchanges 

have incorporated by reference. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–18278 Filed 8–22–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83876; File No. SR–C2– 

2018–017] 

Self-Regulatory Organizations; Cboe 

C2 Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend the Options 

Regulatory Fee 

August 17, 2018. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on August 9, 

2018, Cboe C2 Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘C2’’) filed with the 

Securities and Exchange Commission 

(the ‘‘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 its 

Fees Schedule relating to the Options 

Regulatory Fee. 

The text of the proposed rule change 

is also available on the Exchange’s 


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