39490 Federal Register / Vol. 83, No. 154 / Thursday, August 9, 2018 / Notices 

40See Proposed NYSE Rule 7.36(h)(1)(D). 41See NYSE Rule 7.36(h)(1)(A)–(B). 42See Proposed NYSE Rule 7.36(h)(1)(C). 43 Id. 44See Proposed NYSE Rule 7.36(h)(1)(D). In 

connection with this proposed change, the 

Exchange also proposed to delete current NYSE 

Rule 7.36(h)(4)(B), which states that setter priority 

is not available when the reserve quantity 

replenishes the display quantity of a Reserve Order. 45The requirements for an order to achieve setter 

priority are that it is an order ranked Priority 2— 

Display Orders with a display quantity of at least 

one round lot, that it establishes a new BBO, and 

that it either establishes a new NBBO or joins an 

Away Market NBBO. See NYSE Rule 7.36(h). 46See Notice, supra note 7, at 28704–05. 47 15 U.S.C. 78f. 48 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

formation. See 15 U.S.C. 78c(f). 49 15 U.S.C. 78f(b)(5). 50See Notice, supra note 7, at 28704. 

51 15 U.S.C. 78s(b)(2). 

52 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

Reserve Order has setter priority, and 

the Permitted Price at which the order 

would be replenished would be a 

different price, the replenish quantity 

would not be eligible for setter 

priority.40

The Exchange also proposes to add 

two circumstances in which an order 

would be evaluated for setter priority. 

Currently, an order will be evaluated for 

setter priority on arrival (including any 

portion that has been routed and returns 

unexecuted) and when the order 

becomes eligible to trade for the first 

time upon transitioning to a new trading 

session.41 First, NYSE proposes that an 

order would be evaluated for setter 

priority when resting and assigned a 

new display price.42 If multiple orders 

reprice at the same time, none of the 

orders would be eligible for setter 

priority unless one order is equal to or 

greater than a round lot and the sum of 

the other orders at the same price is less 

than one round lot.43 Second, the 

Exchange proposes that an order would 

be evaluated for setter priority when the 

display quantity of a Reserve Order is 

replenished.44 The Exchange asserts 

that, if a repriced resting or replenished 

Reserve Order meets the conditions for 

establishing setter priority,45 then that 

order is aggressively displaying 

liquidity on the Exchange, which the 

Exchange seeks to encourage by 

providing a setter priority allocation.46

III. Discussion and Commission 

Findings 

After careful review of the proposal, 

as modified by Amendment No. 1, the 

Commission finds that the proposed 

rule change is consistent with the 

requirements of the Act 47 and the rules 

and regulations thereunder applicable to 

a national securities exchange.48 In 

particular, the Commission finds that 

the proposed rule change is consistent 

with Section 6(b)(5) of the Act,49 which 

requires that the rules of an exchange be 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

regulating, clearing, settling, processing 

information with respect to, and 

facilitating transactions in securities, 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 proposal would alter how UTP 

Securities trade on the Exchange’s Pillar 

trading platform with respect to two 

order types—reserve orders and primary 

pegged orders—and would also amend 

the rules that determine when orders are 

eligible for setter priority. The proposed 

changes relating to Reserve Orders 

would seek to reduce the quantity of 

child orders and the potential for 

information leakage. The Commission 

believes that the proposal to replenish 

the displayed quantity when it falls 

below one round lot is consistent with 

reserve order functioning on other 

national securities exchanges that the 

Commission has found to be consistent 

with the Exchange Act.50 The 

Commission also believes that the 

proposal is consistent with Section 

6(b)(5)—with respect to replenishing a 

Reserve Order that has two existing 

child orders totaling less than one round 

lot, routing from reserve interest before 

publishing the display quantity, and 

aligning the Exchange’s rule text to the 

existing treatment of Reserve Orders 

that are not routable and of routed 

Reserve Orders that return 

unexecuted—because the proposed 

changes are reasonably designed to 

encourage the provision of liquidity on 

the exchange by reducing the likelihood 

of adverse selection against liquidity 

providers through information leakage 

and providing clarity to market 

participants, while not permitting unfair 

discrimination on the exchange. 

The proposed changes relating to 

Primary Pegged Reserve Orders would 

provide that, if the PBBO is locked or 

crossed when the display quantity of the 

order is to be replenished, the entire 

order would be canceled. The 

Commission believes that the proposal 

is reasonably designed to prevent the 

display of locked or crossed quotations 

in NMS securities. 

The rules relating to the setter priority 

would change in two ways. First, the 

rules would be amended to reflect that, 

under existing order function, an order 

is not eligible for setter priority if there 

is an odd-lot sized order with setter 

priority at that price. Second, orders 

would be evaluated for setter priority 

under two additional circumstances— 

when an order is resting and assigned a 

new display price, and when the 

display quantity of a Reserve Order is 

replenished. The Commission believes 

that these proposed changes are 

reasonably designed to provide 

incentives for market participants to 

display liquidity on the Exchange. 

Accordingly, the Commission finds 

that the proposal is consistent with the 

requirements of the Act, and 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. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,51 that the 

proposed rule change (SR–NYSE–2018– 

26), as modified by Amendment No. 1, 

be, and hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.52

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–17004 Filed 8–8–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83771; File No. SR– 

NASDAQ–2018–060] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend 

Certain Terms Under Chapter I, Section 

1 of the Options Rules 

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 20, 

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 and 

II below, which Items have been 

prepared by the Exchange. The 

Commission is publishing this notice to 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 154 / Thursday, August 9, 2018 / Notices 39491 

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

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

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). 

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 proposal to 

amend The Nasdaq Options Market LLC 

(‘‘NOM’’) 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://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 

NOM 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 NOM 

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 NOM’s 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 

NOM’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 

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 


sradovich on DSK3GMQ082PROD with NOTICES
39492 Federal Register / Vol. 83, No. 154 / Thursday, August 9, 2018 / Notices 

10 17 CFR 200.30–3(a)(12). 

• Send an email to rule-comments@

sec.gov. Please include File Number 

SR–NASDAQ–2018–060 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–2018–060. 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–2018–060 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. 2018–17006 Filed 8–8–18; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #15616 and #15617; 

IOWA Disaster Number IA–00078] 

Administrative Declaration of a 

Disaster for the State of Iowa 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

SUMMARY: This is a notice of an 

Administrative declaration of a disaster 

for the State of Iowa dated 07/30/2018. 

Incident: Tornado. 

Incident Period: 07/19/2018. 

DATES: Issued on 07/30/2018. 

Physical Loan Application Deadline 

Date: 09/28/2018. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 04/30/2019. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing and 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street SW, Suite 6050, 

Washington, DC 20416, (202) 205–6734. 

SUPPLEMENTARY INFORMATION: Notice is 

hereby given that as a result of the 

Administrator’s disaster declaration, 

applications for disaster loans may be 

filed at the address listed above or other 

locally announced locations. 

The following areas have been 

determined to be adversely affected by 

the disaster: 

Primary Counties: Marshall 

Contiguous Counties: 

Iowa: Grundy, Hardin, Jasper, 

Poweshiek, Story, Tama 

The Interest Rates are: 

Percent 

For Physical Damage: 

Homeowners with Credit Available Elsewhere ........................ 3.875 

Homeowners without Credit 

Available Elsewhere ................ 1.938 

Businesses with Credit Available 

Elsewhere ................................ 7.220 

Businesses without Credit Available Elsewhere ........................ 3.610 

Non-Profit Organizations with 

Credit Available Elsewhere ..... 2.500 

Non-Profit Organizations without 

Credit Available Elsewhere ..... 2.500 

For Economic Injury: 

Businesses & Small Agricultural 

Cooperatives without Credit 

Available Elsewhere ................ 3.610 

Non-Profit Organizations without 

Credit Available Elsewhere ..... 2.500 

The number assigned to this disaster 

for physical damage is 15616 C and for 

economic injury is 15617 0. 

The State which received an EIDL 

Declaration # is Iowa. 

(Catalog of Federal Domestic Assistance 

Number 59008) 

Dated: July 30, 2018. 

Linda E. McMahon, 

Administrator. 

[FR Doc. 2018–17022 Filed 8–8–18; 8:45 am] 

BILLING CODE 8025–01–P 

DEPARTMENT OF STATE 

[Public Notice: 10490] 

Defense Trade Advisory Group; Notice 

of Open Meeting 

The Defense Trade Advisory Group 

(DTAG) will meet in open session from 

1:00 p.m. until 5:00 p.m. on Thursday, 

October 25, 2018 at 1777 F Street NW, 

Washington, DC 20006. Entry and 

registration will begin at 12:30 p.m. The 

membership of this advisory committee 

consists of private sector defense trade 

representatives, appointed by the 

Assistant Secretary of State for PoliticalMilitary Affairs, who advise the 

Department on policies, regulations, and 

technical issues affecting defense trade. 

The purpose of the meeting will be to 

discuss current defense trade issues and 

topics for further study. The following 

agenda topics will be discussed and 

final reports presented: (1) Oversight of 

technical data under the ITAR and 

NISPOM; (2) Challenges regulated 

entities face in advising the Department 

of ownership changes that implicate 

existing licenses and foreign persons, 

and processes the Department may 

implement to facilitate the provisions of 

this information; (3) Possible schedule 

for future ongoing periodic review of 

USML categories; (4) Developing a 

definition for common carrier; and (5) 

Issues that exist with licensing of 

defense articles, including intelligence 

related products, related technical data, 

and defense services to the ‘‘Five Eyes’’ 

countries of the U.S., UK, Australia, 

Canada and New Zealand. Members of 

the public may attend this open session 

and will be permitted to participate in 

the question and answer discussion 

period following the formal DTAG 

presentation on each agenda topic in 

accordance with the Chair’s 

instructions. Members of the public may 

also, if they wish, submit a brief 

statement (less than 3 pages) to the 

committee in writing for inclusion in 

the public minutes of the meeting. As 

seating is limited to 125 persons, each 

member of the public that wishes to 

attend this plenary session must 

provide: His/her name and contact 

information such as email address and/ 


sradovich on DSK3GMQ082PROD with NOTICES