Federal Register / Vol. 82, No. 163 / Thursday, August 24, 2017 / Notices 40187 

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 79474 

(December 6, 2016), 81 FR 89543. 

4 15 U.S.C. 78s(b)(2)(B). 

5See Securities Exchange Act Release No. 79781, 

82 FR 6669 (January 19, 2017). 

6 15 U.S.C. 78s(b)(2). 

7See Securities Exchange Act Release No. 80864, 

82 FR 26966 (June 12, 2017). 

8See letter from Albert J. Kim, Vice President and 

Associate General Counsel, CHX, dated August 8, 

2017, available at: https://www.sec.gov/comments/ 

sr-chx-2016-20/chx201620-2198847-160378.pdf. 

9 17 CFR 200.30 3(a)(12). 

10See Securities Exchange Act Release No. 81366, 

82 FR 38734 (August 15, 2017). 

11 17 CFR 201.431. 

Exchange Act. Rather, the proposed rule 

change will increase competition for 

new listings by enabling companies to 

list that meet all quantitative 

requirements but are currently unable to 

list because of the methodology required 

by the current rules to demonstrate their 

compliance. 

As noted above, Nasdaq’s listing rules 

do not include explicit limitations 

applicable to the listing of companies in 

these circumstances. Additionally, 

Nasdaq has listed previously private 

companies upon effectiveness of a 

selling shareholder registration 

statement without a concurrent 

underwritten offering on several 

occasions in the past. In light of this 

precedent and the absence of any 

Nasdaq rule provision explicitly 

limiting the ability of a company to 

qualify for listing without a public 

offering or prior public market price, the 

Exchange believes that Nasdaq would 

take the position that it could also list 

a previously private company upon 

effectiveness of an Exchange Act 

registration statement without a 

concurrent public offering. As such, the 

proposed amendment to Footnote (E) to 

Section 102.01B of the Manual would 

increase competition by enabling the 

NYSE to compete with Nasdaq for these 

listings. 

The Exchange does not believe that 

the proposed amendments to its Rule 

Book will impose any burden on 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Exchange Act. 

Specifically, the Exchange believes that 

the changes are not related to 

competition, but rather are designed to 

promote fair and orderly markets in a 

manner that is consistent with the 

protection of investors and the public 

interest. The proposed changes do not 

impact the ability of any market 

participant or trading venue to compete. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change, as modified by Amendment No. 

2, 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– 

NYSE–2017–30 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–NYSE–2017–30. 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 Web site (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 Web site 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; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–NYSE– 

2017–30 and should be submitted on or 

beforeSeptember 14, 2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2017–17922 Filed 8–23–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81435/August 18, 2017] 

Securities Exchange Act of 1934; 

Order Scheduling Filing of Statements 

on Review in the Matter of the Chicago 

Stock Exchange, Inc. for an Order 

Granting the Approval of Proposed 

Rule Change Regarding the 

Acquisition of CHX Holdings, Inc. by 

North America Casin Holdings, Inc. 

(File No. SR–CHX–2016–20) 

On December 2, 2016, the Chicago 

Stock Exchange, Inc. (‘‘CHX’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Exchange Act’’)1 and Rule 

19b–4 thereunder,2 a proposed rule 

change in connection with the 

acquisition of CHX Holdings, Inc. by 

North America Casin Holdings, Inc. The 

proposed rule change was published for 

comment in the Federal Register on 

December 12, 2016.3 On January 12, 

2017, proceedings were instituted under 

Section 19(b)(2)(B) of the Exchange Act 4

to determine whether to approve or 

disapprove the proposed rule change.5

On June 6, 2017, pursuant to Section 

19(b)(2) of the Exchange Act,6 a longer 

period was designated for Commission 

action on proceedings to determine 

whether to disapprove the proposed 

rule change.7 On August 7, 2017, the 

Exchange filed Amendment No. 1 to the 

proposed rule change.8 On August 9, 

2017, the Division of Trading and 

Markets, for the Commission pursuant 

to delegated authority,9 approved the 

proposed rule change, as modified by 

Amendment No. 1.10

Pursuant to Commission Rule of 

Practice 431,11 the Commission is 

reviewing the delegated action and the 

August 9, 2017 order is stayed. 

Accordingly, it is ordered, pursuant to 

Commission Rule of Practice 431, that 

by September 17, 2017, any party or 


rmajette on DSKBCKNHB2PROD with NOTICES
40188 Federal Register / Vol. 82, No. 163 / Thursday, August 24, 2017 / Notices 

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

2 17 CFR 240.19b–4. 3See MRX Rule 701. 4See Rule 701(c)(1)(i)–(iii). 

other person may file any additional 

statement. 

It is further ordered that the August 9, 

2017 order approving the proposed rule 

change, as modified by Amendment No. 

1 (File No. SR–CHX–2016–20), shall 

remain stayed pending further order of 

the Commission. 

By the Commission. 

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2017–17921 Filed 8–23–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81436; File No. SR–GEMX– 

2017–38] 

Self-Regulatory Organizations; Nasdaq 

GEMX, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Related to Quoting at the 

Opening 

August 18, 2017. 

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 

17, 2017, Nasdaq GEMX, LLC (‘‘GEMX’’ 

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 amend 

GEMX Rule 701, entitled ‘‘Opening.’’ 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at www.ise.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 this rule change is to 

amend GEMX Rule 701, ‘‘Opening’’ to 

specifically amend opening obligations 

for Primary Market Makers or ‘‘PMMs.’’ 

The Exchange notes that the proposed 

rule change is similar to a Nasdaq MRX, 

LLC (‘‘MRX’’) rule.3

Today, GEMX Rule 701(c)(3) states 

that the PMM assigned in a particular 

equity option must enter a Valid Width 

Quote not later than one minute 

following the dissemination of a quote 

or trade by the market for the 

underlying security or, in the case of 

index options, following the receipt of 

the opening price in the underlying 

index. The PMM assigned in a 

particular U.S. dollar-settled foreign 

currency option must enter a Valid 

Width Quote not later than one minute 

after the announced market opening. 

First, the Exchange proposes to add 

the words ‘‘or index’’ to further clarify 

that the requirement applies to equities 

and index options. The Exchange 

proposes this addition to further clarify 

the requirement in Rule 701(c)(3) clearly 

applies to equity and index options. 

Second, the Exchange proposes to 

modify the PMM’s current obligation to 

enter Valid Width Quotes not later than 

one minute following the dissemination 

of a quote or trade by the market for the 

underlying security or, in the case of 

index options, following the receipt of 

the opening price in the underlying 

index for all assigned options, or in the 

case of a U.S. dollar-settled foreign 

currency option after the announced 

market opening. The Exchange believes 

that the current requirement is very 

burdensome and instead proposes to 

add ‘‘in 90% of their assigned series’’ to 

require a PMM to enter a Valid Width 

Quote not later than one minute 

following the dissemination of a quote 

or trade by the market for the 

underlying security or, in the case of 

index options, following the receipt of 

the opening price in 90% of their 

assigned series, or in the case of a U.S. 

dollar-settled foreign currency option in 

90% of their assigned series not later 

than one minute after the announced 

market opening. 

Further, the Exchange proposes to 

require PMMs to promptly enter a Valid 

Width Quote in the remainder of their 

assigned series, which did not open 

within one minute following the 

dissemination of a quote or trade by the 

market for the underlying security or, in 

the case of index options, following the 

receipt of the opening price, in the 

underlying index or, with respect to a 

U.S. dollar-settled foreign currency 

option, following the announced market 

opening. The Exchange’s proposal is 

intended to account for market 

conditions which may prevent a PMM 

from opening all assigned series, for 

example an extremely volatile market 

which may impact the PMM’s ability to 

enter aggressive quotes. Another 

example would be that news pertaining 

to a specific security is causing the 

underlying price to fluctuate rapidly 

and significantly, thereby causing the 

PMM to await the underlying equity 

price to settle before entering a Valid 

Width Quote. The Exchange’s 

surveillance staff would monitor to 

ensure that PMMs are complying with 

these requirements during the Opening 

Process. 

Today, the Opening Process for an 

options series will be conducted on or 

after 9:30 a.m. if the system has 

received, within two minutes (or such 

shorter time as determined by the 

Exchange and disseminated to 

membership on the Exchange’s Web 

site) of the opening trade or quote on the 

market for the underlying security in the 

case of equity options or, in the case of 

index options, within two minutes of 

the receipt of the opening price in the 

underlying index (or such shorter time 

as determined by the Exchange and 

disseminated to membership on the 

Exchange’s Web site), or within two 

minutes of market opening for the 

underlying currency in the case of a 

U.S. dollar-settled foreign currency 

option (or such shorter time as 

determined by the Exchange and 

disseminated to membership on the 

Exchange’s Web site) the PMM’s Valid 

Width Quote, the Valid Width Quotes of 

two Competitive Maker [sic] Makers 

(‘‘CMMs’’) or if neither the PMM’s Valid 

Width Quote nor the Valid Width Quote 

of two CMMs have been submitted 

within such timeframe, if one CMM has 

submitted a Valid Width Quote.4

Implementation 

The Exchange proposes to implement 

this rule change on September 29, 2017. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 


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