Federal Register / Vol. 83, No. 156 / Monday, August 13, 2018 / Notices 40101 

9 15 U.S.C. 78s(b)(3)(A)(ii). 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The term ‘‘Member’’ means an individual or 

organization that is registered with the Exchange 

pursuant to Chapter II of the Exchange’s Rules for 

purposes of trading on the Exchange as an 

‘‘Electronic Exchange Member’’ or ‘‘Market Maker.’’ 

Members are deemed ‘‘members’’ under the 

Exchange Act. See Exchange Rule 100. 

not create an unnecessary or 

inappropriate inter-market burden on 

competition because it is a regulatory 

fee that supports regulation in 

furtherance of the purposes of the Act. 

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 

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.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 No. SR– 

NASDAQ–2018–062 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–NASDAQ–2018–062. 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–NASDAQ–2018–062, and should be 

submitted on or before September 4, 

2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–17258 Filed 8–10–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83785; File No. SR– 

PEARL–2018–16] 

Self-Regulatory Organizations; MIAX 

PEARL, LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend the MIAX 

PEARL Fee Schedule 

August 7, 2018. 

Pursuant to the provisions of 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 31, 2018, MIAX PEARL, LLC 

(‘‘MIAX PEARL’’ or ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) a 

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 is filing a proposal to 

amend the MIAX PEARL Fee Schedule 

(the ‘‘Fee Schedule’’) to modify certain 

of the Exchange’s system connectivity 

fees. 

The text of the proposed rule change 

is available on the Exchange’s website at 

http://www.miaxoptions.com/rulefilings/pearl at MIAX PEARL’s principal 

office, 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 amend the 

Fee Schedule regarding connectivity to 

the Exchange. Specifically, the 

Exchange proposes to amend Sections 

5(a) and (b) of the Fee Schedule to 

increase the network connectivity fees 

for the 1 Gigabit (‘‘Gb’’) fiber 

connection, the 10Gb fiber connection, 

and the 10Gb ultra-low latency (‘‘ULL’’) 

fiber connection, which are charged to 

both Members 3 and non-Members of the 

Exchange for connectivity to the 

Exchange’s primary/secondary facility. 

The Exchange also proposes to increase 

the network connectivity fees for the 

1Gb and 10Gb fiber connections for 

connectivity to the Exchange’s disaster 

recovery facility. 


sradovich on DSK3GMQ082PROD with NOTICES
40102 Federal Register / Vol. 83, No. 156 / Monday, August 13, 2018 / Notices 

4See Phlx and ISE Rules, General Equity and 

Options Rules, General 8, Section 1(b). Phlx and ISE 

each charge a monthly fee of $2,500 for each 1Gb 

connection, $10,000 for each 10Gb connection and 

$15,000 for each 10Gb Ultra connection, which the 

equivalent of the Exchange’s 10Gb ULL connection. 

See also NYSE American Fee Schedule, Section 

V.B, and Arca Fees and Charges, Co-Location Fees. 

NYSE American and Arca each charge a monthly 

fee of $5,000 for each 1Gb circuit, $14,000 for each 

10Gb circuit and $22,000 for each 10Gb LX circuit, 

which the equivalent of the Exchange’s 10Gb ULL 

connection. 

5 Id. 

6See Nasdaq ISE Schedule of Fees, IX(D) 

(charging $3,000 for disaster recovery testing & 

relocation services); see also Cboe Exchange, Inc. 

(‘‘CBOE’’) Fees Schedule, p. 14, Cboe Command 

Connectivity Charges (charging a monthly fee of 

$2,000 for a 1Gb disaster recovery network access 

port and a monthly fee of $6,000 for a 10Gb disaster 

recovery network access port). 

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

8 15 U.S.C. 78f(b)(4). 

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

10See supra note 4. 

11 Id. 

12See supra note 6. 

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

The Exchange currently offers various 

bandwidth alternatives for connectivity 

to the Exchange, consisting of a 1Gb 

fiber connection, a 10Gb fiber 

connection, and a 10Gb ULL fiber 

connection. The 10Gb ULL offering uses 

an ultra-low latency switch, which 

provides faster processing of messages 

sent to it in comparison to the switch 

used for the other types of connectivity. 

The Exchange currently assesses the 

following monthly network connectivity 

fees to both Members and non-Members 

for connectivity to the Exchange’s 

primary/secondary facility: (a) $1,100 

for the 1Gb connection; (b) $5,500 for 

the 10Gb connection; and (c) $8,500.00 

for the 10Gb ULL connection. The 

Exchange also assesses to both Members 

and non-Members a monthly per 

connection network connectivity fee of 

$500 for each 1Gb connection to the 

disaster recovery facility and a monthly 

per connection network connectivity fee 

of $2,500 for each 10Gb connection to 

the disaster recovery facility. 

The Exchange’s MIAX Express 

Network Interconnect (‘‘MENI’’) can be 

configured to provide Members and 

non-Members of the Exchange network 

connectivity to the trading platforms, 

market data systems, test systems, and 

disaster recovery facilities of both the 

Exchange and its affiliate, Miami 

International Securities Exchange 

(‘‘MIAX Options’’), via a single, shared 

connection. Members and non-Members 

utilizing the MENI to connect to the 

trading platforms, market data systems, 

test systems and disaster recovery 

facilities of the Exchange and MIAX 

Options via a single, shared connection 

are assessed only one monthly network 

connectivity fee per connection, 

regardless of the trading platforms, 

market data systems, test systems, and 

disaster recovery facilities accessed via 

such connection. 

The Exchange proposes to increase 

the monthly network connectivity fees 

for such connections for both Members 

and non-Members. The network 

connectivity fees for connectivity to the 

Exchange’s primary/secondary facility 

will be increased as follows: (a) From 

$1,100 to $1,400 for the 1Gb connection; 

(b) From $5,500 to $6,100 for the 10Gb 

connection; and (c) from $8,500 to 

$9,300 for the 10Gb ULL connection. 

The network connectivity fees for 

connectivity to the Exchange’s disaster 

recovery facility will be increased as 

follows: (a) From $500 to $550 for the 

1Gb connection; and (b) from $2,500 to 

$2,750 for the 10Gb connection. 

The Exchange believes that the 

increase in the pricing of the Exchange’s 

connectivity is reflective of the 

continued value that it provides and the 

increasing costs to the Exchange for 

providing and maintaining the 

necessary hardware and other 

infrastructure to support this 

technology. The Exchange notes that 

other exchanges have similar 

connectivity alternatives for their 

participants, including similar lowlatency connectivity. For example, 

Nasdaq PHLX LLC (‘‘Phlx’’), NYSE 

Arca, Inc. (‘‘Arca’’), NYSE American 

LLC (‘‘NYSE American’’) and Nasdaq 

ISE, LLC (‘‘ISE’’) all offer a 1Gb, 10Gb 

and 10Gb low latency ethernet 

connectivity alternatives to each of their 

participants.4 The Exchange further 

notes that Phlx, ISE, Arca and NYSE 

American each charge higher rates for 

such similar connectivity to primary 

and secondary facilities.5 Additionally, 

the Exchange’s proposed connectivity 

fees to its disaster recovery facility are 

within the range of the fees charged by 

other exchanges for similar connectivity 

alternatives.6 The Exchange believes 

that it is appropriate to increase its fees 

charged for use of its connectivity to 

offset increasing costs associated with 

providing and maintaining the 

necessary hardware and other 

infrastructure to support this technology 

and also to more closely align its fees 

with the rates charged by competing 

options exchanges. 

The Exchange proposes to implement 

the proposed changes to the Fee 

Schedule effective as of August 1, 2018. 

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its Fee Schedule is 

consistent with Section 6(b) of the Act 7

in general, and furthers the objectives of 

Section 6(b)(4) of the Act 8 in particular, 

in that it provides for the equitable 

allocation of reasonable dues, fees and 

other charges among Exchange members 

and issuers and other persons using its 

facilities. The Exchange also believes 

the proposal furthers the objectives of 

Section 6(b)(5) of the Act 9 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 and is not designed to 

permit unfair discrimination between 

customer, issuers, brokers and dealers. 

The Exchange believes that its 

proposal is consistent with Section 

6(b)(4) of the Act because the fees 

assessed for connectivity allow the 

Exchange to cover the costs associated 

with providing and maintaining the 

necessary hardware and other 

infrastructure to support this 

technology. The Exchange believes that 

the proposal to increase the fees for 

connectivity alternatives is fair, 

equitable and not unreasonably 

discriminatory because the increased 

fees are assessed equally among all 

users of the applicable connections. 

As discussed above, Phlx and ISE 

each offer different connections with 

respect to latency, and Arca and NYSE 

American both offer similar 

connectivity alternatives.10 Despite this, 

Phlx, ISE, Arca and NYSE American 

charge a higher fee than the Exchange 

currently charges for similar 

connections to primary and secondary 

facilities.11 Furthermore, the 

connectivity fees for the disaster 

recovery facilities of other exchanges are 

within the range of the proposed fees of 

the Exchange.12 For these reasons, the 

Exchange believes the proposed 

increase in the fees for the fiber 

connectivity to the Exchange is 

reasonable and not unfairly 

discriminatory. 

The Exchange also believes that its 

proposal is consistent with Section 

6(b)(5) of the Act 13 because all MIAX 

PEARL participants have the 

opportunity to subscribe to the 

Exchange’s connections. There is also 

no differentiation among MIAX PEARL 

participants with regard to the fees 

charged for these services. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

MIAX PEARL does not believe that 

the proposed rule changes will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. On the 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 156 / Monday, August 13, 2018 / Notices 40103 

14See supra note 4. 

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

16 17 CFR 240.19b–4(f)(2). 17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19B–4. 

contrary, the Exchange believes that the 

proposed changes should increase both 

intermarket and intramarket 

competition. Specifically, the Exchange 

believes that the changes will promote 

competition by increasing the 

connectivity fees to become more within 

the range of comparable fees assessed by 

other competing exchanges.14

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. In such an environment, the 

Exchange must continually adjust its 

fees to remain competitive with other 

exchanges. The Exchange believes that 

the proposed changes reflect this 

competitive environment. To the extent 

that this purpose is achieved, all the 

Exchange’s market participants should 

benefit from the improved market 

liquidity. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor 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,15 and Rule 

19b–4(f)(2) 16 thereunder. 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. 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– 

PEARL–2018–16 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–PEARL–2018–16. 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–PEARL–2018–16 and 

should be submitted on or before 

September 4, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–17251 Filed 8–10–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83793; File No. SR–ISE– 

2018–70] 

Self-Regulatory Organizations; Nasdaq 

ISE, LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend the Options 

Regulatory Fee 

August 7, 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 27, 

2018, Nasdaq ISE, LLC (‘‘ISE’’ or 

‘‘Exchange’’) 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 revise ISE’s 

Schedule of Fees to amend its Options 

Regulatory Fee or ‘‘ORF’’. 

While the changes proposed herein 

are effective upon filing, the Exchange 

has designated the amendments become 

operative on August 1, 2018. 

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. 


sradovich on DSK3GMQ082PROD with NOTICES