45164 Federal Register / Vol. 83, No. 172 / Wednesday, September 5, 2018 / Notices 

14 17 CFR 240.17Ad–22(e)(17). 

15 17 CFR 242.1000–1007. 

16 15 U.S.C. 78q–1(b)(3)(I). 17 17 CFR 200.30–3(a)(12). 

requirements of operational risk 

management in Rule 17Ad–22(e)(17) 14

and the requirements of Regulation 

SCI.15

B. Clearing Agency’s Statement on 

Burden on Competition 

Section 17A(b)(3)(I) of the Act 

requires that the rules of a clearing 

agency not impose any burden on 

competition not necessary or 

appropriate in furtherance of the 

purposes of the Act.16 LCH SA does not 

believe that the proposed rule change 

would impose burdens on competition 

that are not necessary or appropriate in 

furtherance of the purposes of the Act. 

Specifically, the proposed changes to 

the Rule Book, Supplement and 

Procedures would apply equally to all 

Clearing Members and their Clients are 

Matched Buyers and Matched Sellers. 

All Clearing Members and their 

designated Clients who are Exercise 

Delegation Beneficiaries will be 

required to use EEP to exercise Exercise 

Cleared Transactions. The proposed rule 

change and implementation of EEP will 

require Clearing Members and their 

Clients to connect to LCH SA’s systems 

through opening a portal account and 

therefore, may impose burdens on 

Clearing Members and their Clients but 

such burdens would be necessary and 

appropriate to manage LCH SA’s 

operational risks and to implement an 

automated electronic system to capture 

all exercises of Option Intents. 

Therefore, LCH SA does not believe that 

the proposed rule change would impose 

a burden on competition not necessary 

or appropriate in furtherance of the 

purposes of the Act. 

C. Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received from Members, 

Participants or Others 

Written comments relating to the 

proposed rule change have not been 

solicited or received. LCH SA will 

notify the Commission of any written 

comments received by LCH SA. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the self-regulatory organization 

consents, the Commission will: 

(A) By order approve or disapprove 

such proposed rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be 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– 

LCH SA–2018–004 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–LCH SA–2018–004. 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 LCH SA and on LCH SA’s 

website at: https://www.lch.com/ 

resources/rules-and-regulations/ 

proposed-rule-changes-0. 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–LCH SA–2018–004 and 

should be submitted on or before 

September 26, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–19147 Filed 9–4–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meetings 

TIME AND DATE: 2:00 p.m. on Thursday, 

September 6, 2018. 

PLACE: Closed Commission Hearing 

Room 10800. 

STATUS: This meeting will be closed to 

the public. 

MATTERS TO BE CONSIDERED: 

Commissioners, Counsel to the 

Commissioners, the Secretary to the 

Commission, and recording secretaries 

will attend the closed meeting. Certain 

staff members who have an interest in 

the matters also may be present. 

The General Counsel of the 

Commission, or his designee, has 

certified that, in his opinion, one or 

more of the exemptions set forth in 5 

U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B) 

and (10) and 17 CFR 200.402(a)(3), 

(a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and 

(a)(10), permit consideration of the 

scheduled matters at the closed meeting. 

Commissioner Jackson, as duty 

officer, voted to consider the items 

listed for the closed meeting in closed 

session. 

The subject matters of the closed 

meeting will be: 

Institution and settlement of 

injunctive actions; 

Institution and settlement of 

administrative proceedings; 

Resolution of litigation claims; and 

Other matters relating to enforcement 

proceedings. 

At times, changes in Commission 

priorities require alterations in the 

scheduling of meeting items. 

CONTACT PERSON FOR MORE INFORMATION: 

For further information and to ascertain 

what, if any, matters have been added, 

deleted or postponed; please contact 

Brent J. Fields from the Office of the 

Secretary at (202) 551–5400. 


daltland on DSKBBV9HB2PROD with NOTICES
Federal Register / Vol. 83, No. 172 / Wednesday, September 5, 2018 / Notices 45165 

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

2 17 CFR 240.19b–4. 

3A 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). 4A 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). 5As used in this proposed rule change, the term 

‘‘Closing Cross Cutoff’’ refers to the various 3:50 

p.m. ET cutoff times described herein for the 

Nasdaq Closing Cross, including the regular cutoff 

time for entering MOC/LOC Orders described above 

and the related cutoff time for cancelling or 

modifying IO Orders, which is currently at or after 

3:50 p.m. ET in contrast to MOC/LOC Orders whose 

cutoff times are immediately prior to 3:50 p.m. ET. 

6 ‘‘Order Imbalance Indicator’’ means a message 

disseminated by electronic means containing 

information about MOC, LOC, IO, and Close 

Eligible Interest and the price at which those orders 

would execute at the time of dissemination. 

7See Rule 4702(b)(13)(A). 

8As used in this proposed rule change, the term 

‘‘Late Cutoff’’ refers to the various 3:55 p.m. ET 

cutoff times described herein for the Nasdaq 

Closing Cross, including the cutoff time for entering 

the LOC Orders described above and the cutoff time 

for correcting legitimate errors in an on close order. 

9 ‘‘First Reference Price’’ shall mean the Current 

Reference Price in the first Order Imbalance 

Indicator disseminated at or after 3:50 p.m. ET. See 

Rule 4754(a)(9). 

10See Rule 4702(b)(12)(A). 

11An IO Order is an Order entered with a price 

that may be executed only in the Nasdaq Closing 

Cross and only against MOC Orders or LOC Orders. 

See Rule 4702(b)(13). 

12See Rule 4702(b)(13)(A). 

13See Rule 4702(b)(11)(A), (13)(A). As provided 

in these rules, MOC and IO Orders cannot be 

cancelled or modified at or after the Late Cutoff for 

any reason. 

14See Rule 4702(b)(12)(A). 

15The Exchange proposes to reflect the proposed 

cutoff times throughout the Nasdaq rulebook, 

including Rule 4702(b)(11)–(13), which defines 

Continued 

Dated: August 30, 2018. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2018–19258 Filed 8–31–18; 11:15 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83988; File No. SR– 

NASDAQ–2018–068] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Filing of Proposed Rule Change To 

Extend the Cutoff Times for Accepting 

On Close Orders Entered for 

Participation in the Nasdaq Closing 

Cross 

August 29, 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 

15, 2018, The Nasdaq Stock Market LLC 

(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘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 extend the 

cutoff times for accepting on close 

orders entered for participation in the 

Nasdaq Closing Cross, and make related 

changes. 

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 extend the cutoff times for 

accepting on close orders entered for 

participation in the Nasdaq Closing 

Cross. The Nasdaq Closing Cross 

provides a transparent auction process 

that determines a single price for the 

close. As the equities markets continue 

to evolve and become more efficient and 

automated, the Exchange believes that 

the current cutoff times are overly 

restrictive to market participants that 

wish to participate in the Nasdaq 

Closing Cross and that typically have to 

tie up on close interest for ten minutes 

or more at the end of the trading day to 

participate in the cross. Similar to 

cutoffs provided by other equities 

exchanges that operate a closing 

auction, the Exchange believes that the 

proposed cutoff times would give 

Participants greater control over their on 

close orders while still leaving enough 

time at the end of the trading day for 

Participants to react to and offset 

Imbalances. Last, the Exchange is 

proposing to begin disseminating the 

Order Imbalance Indicator at the new 

Closing Cross Cutoff. 

Current Cutoff Times 

Generally, Market On Close 

(‘‘MOC’’) 3 and Limit on Close (‘‘LOC’’) 4

Orders are accepted today until 

immediately prior to 3:50 p.m. ET 

(‘‘Closing Cross Cutoff’’) 5 when the 

Exchange begins disseminating an Order 

Imbalance Indicator 6 that contains 

information about the Nasdaq Closing 

Cross. Imbalance Only (‘‘IO’’) Orders, on 

the other hand, are designed to allow 

Participants to offset Imbalances, and 

may therefore be entered until the time 

of execution of the Nasdaq Closing 

Cross, but may not be cancelled or 

modified at or after the Closing Cross 

Cutoff, except to correct legitimate 

errors as described below.7

The Exchange also continues to 

accept LOC Orders between the Closing 

Cross Cutoff and immediately prior to 

3:55 p.m. ET (‘‘Late Cutoff’’) 8 provided 

that there is a First Reference Price.9 In 

order to promote price stability in the 

Nasdaq Closing Cross, such LOC Orders 

entered during this period are either 

canceled or re-priced to the First 

Reference Price, based on the 

Participant’s instruction, if the LOC 

Order’s limit price is more aggressive 

than the First Reference Price.10

Imbalance Only (‘‘IO’’) Orders,11

meanwhile, are designed to permit 

Participants to offset Imbalances and 

therefore may be entered until 4:00 p.m. 

ET when the Exchange executes the 

Nasdaq Closing Cross and disseminates 

the executions via the consolidated 

tape.12

Participants may also be able to 

cancel and/or modify their on close 

orders between the Closing Cross Cutoff 

and immediately prior to the Late Cutoff 

in limited circumstances. Specifically, 

during this time period: (1) MOC Orders 

and IO Orders can be cancelled and/or 

modified,13 and (2) LOC Orders can be 

cancelled but not modified,14 in each 

case to correct a legitimate error in the 

order (e.g., Side, Size, Symbol, or Price, 

or duplication of an Order). 

Proposed Cutoff Times 

The Exchange now proposes to 

change the Closing Cross Cutoff to 3:55 

p.m. ET and the Late Cutoff to 3:58 p.m. 

ET.15 The Exchange believes that this 


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