50194 Federal Register / Vol. 82, No. 208 / Monday, October 30, 2017 / Notices 

16 15 U.S.C. 78s(b)(3)(A)(iii). 

17 17 CFR 240.19b–4(f)(6). 

18 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. 

19 17 CFR 240.19b–4(f)(6). 

20 17 CFR 240.19b–4(f)(6)(iii). 

21For 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). 

22 15 U.S.C. 78s(b)(2)(B). 

23 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

market share and revenue of the affected 

exchange. For the reasons described 

above, the Exchange believes that the 

proposed rule change reflects this 

competitive environment. 

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. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 16 and Rule 

19b–4(f)(6) thereunder.17 Because the 

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 

prior to 30 days from the date on which 

it was filed, or such shorter time as the 

Commission may designate, if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act and Rule 19b–4(f)(6)(iii) 

thereunder.18

A proposed rule change filed under 

Rule 19b–4(f)(6) 19 normally does not 

become operative for 30 days after the 

date of the filing. However, Rule 19b– 

4(f)(6)(iii) 20 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange has requested that the 

Commission waive the 30-day operative 

delay so that the proposal may become 

operative immediately upon filing. The 

Exchange represents that the proposed 

rule changes present no new or novel 

issues. According to the Exchange, 

waiver of the operative delay would 

allow Users to access the Additional 

Third Party Systems and the Additional 

Third Party Data Feeds without delay, 

which would assist Users in tailoring 

their data center operations to the 

requirements of their business 

operations. The Exchange also 

represents that the proposed changes to 

the Price List would provide Users with 

more complete information regarding 

their Access and Connectivity options. 

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.21

At any time within 60 days of the 

filing of such 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 

under Section 19(b)(2)(B) 22 of the Act to 

determine whether the proposed rule 

change 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– 

NYSEAMER–2017–24 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–NYSEAMER–2017–24. 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. 

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–NYSEAMER–2017–24 and 

should be submitted on or before 

November 20, 2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.23

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–23474 Filed 10–27–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81931; File No. SR–FINRA– 

2017–032] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Make Permanent an 

Exception to TRACE Reporting for 

Certain Bond Transactions Effected on 

the New York Stock Exchange 

October 24, 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 October 

20, 2017, Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) 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 FINRA. FINRA has 

designated the proposed rule change as 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 82, No. 208 / Monday, October 30, 2017 / Notices 50195 

3 17 CFR 240.19b–4(f)(6). 

4Rule 6710 (Definitions) provides that a ‘‘TRACEEligible Security’’ is a debt security that is United 

States (‘‘U.S.’’) dollar-denominated and is: (1) 

Issued by a U.S. or foreign private issuer, and, if a 

‘‘restricted security’’ as defined in Securities Act 

Rule 144(a)(3), sold pursuant to Securities Act Rule 

144A; (2) issued or guaranteed by an Agency as 

defined in paragraph (k) or a GovernmentSponsored Enterprise as defined in paragraph (n); 

or (3) a U.S. Treasury Security as defined in 

paragraph (p). ‘‘TRACE-Eligible Security’’ does not 

include a debt security that is issued by a foreign 

sovereign or a Money Market Instrument as defined 

in paragraph (o). 

5Rule 6730(e)(2) exempts members from TRACE 

reporting transactions in TRACE-Eligible Securities 

that are listed on a national securities exchange 

when certain conditions are met. Rule 6730(e)(4), in 

contrast, exempts transactions in TRACE-Eligible 

Securities that are not listed on an exchange, but 

that are executed on a facility of NYSE when certain 

conditions are met. 

6See Securities Exchange Act Release No. 54768 

(November 16, 2006), 71 FR 67673 (November 22, 

2006) (Order Approving File No. SR–NASD–2006– 

110) (pilot program in FINRA Rule 6730(e)(4), then 

NASD Rule 6230(e)(4), subject to the execution of 

a data sharing agreement addressing relevant 

transactions, became effective on January 9, 2007); 

Securities Exchange Act Release No. 59216 (January 

8, 2009), 74 FR 2147 (January 14, 2009) (Notice of 

Filing and Immediate Effectiveness of File No. SR– 

FINRA–2008–065) (pilot program extended to 

January 7, 2011); Securities Exchange Act Release 

No. 63673 (January 7, 2011), 76 FR 2739 (January 

14, 2011) (Notice of Filing and Immediate 

Effectiveness of File No. SR–FINRA–2011–002) 

(pilot program extended to July 8, 2011); Securities 

Exchange Act Release No. 64665 (June 14, 2011), 76 

FR 35933 (June 20, 2011) (Notice of Filing and 

Immediate Effectiveness of File No. SR–FINRA–

2011–025) (pilot program extended to January 27, 

2012); Securities Exchange Act Release No. 66018 

(December 21, 2011), 76 FR 81549 (December 28, 

2011) (Notice of Filing and Immediate Effectiveness 

of File No. SR–FINRA–2011–072) (pilot program 

extended to October 26, 2012); Securities Exchange 

Act Release No. 68076 (October 22, 2012), 77 FR 

65431 (October 26, 2012) (Notice of Filing and 

Immediate Effectiveness of File No. SR–FINRA–

2012–047) (pilot program extended to October 25, 

2013); Securities Exchange Act Release No. 70288 

(August 29, 2013), 78 FR 54694 (September 5, 2013) 

(Notice of Filing and Immediate Effectiveness of 

File No. SR–FINRA–2013–038) (pilot program 

extended to October 23, 2015); and Securities 

Exchange Act Release No. 76121 (October 9, 2015) 

80 FR 62578 (October 16, 2015) (Notice of Filing 

and Immediate Effectiveness of File No. SR–

FINRA–2015–037) (pilot program extended to 

October 27, 2017). 

7FINRA is proposing to delete existing language 

conditioning the exemption on transactions being 

‘‘reported to NYSE in accordance with NYSE’s 

applicable trade reporting rules.’’ FINRA 

understands that, because NYSE immediately and 

automatically publicly disseminates transactions, 

NYSE does not have any rules requiring members 

to also trade report transactions in TRACE-Eligible 

Securities executed in accordance with NYSE Rules 

1400, 1401 and 86. 

8 15 U.S.C. 78o–3(b)(6). 

constituting a ‘‘non-controversial’’ rule 

change under paragraph (f)(6) of Rule 

19b–4 under the Act,3 which renders 

the proposal effective upon receipt of 

this filing by the Commission. 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 

FINRA is proposing to amend Rule 

6730 to make permanent an exemption 

from TRACE reporting transactions in 

TRACE-Eligible Securities that are 

executed on a facility of the New York 

Stock Exchange (‘‘NYSE’’), subject to 

specified conditions. 

The text of the proposed rule change 

is available on FINRA’s Web site at 

http://www.finra.org, at the principal 

office of FINRA 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, 

FINRA 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. FINRA 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Rule 6730(e) (Reporting Requirements 

for Certain Transactions and Transfers 

of Securities) exempts members from 

reporting to the Trade Reporting and 

Compliance Engine (‘‘TRACE’’) 

transactions in TRACE-Eligible 

Securities 4 that are executed on a 

facility of the New York Stock Exchange 

(‘‘NYSE’’) in accordance with specified 

NYSE rules and that are reported to 

NYSE and disseminated publicly, 

provided that a data sharing agreement 

between FINRA and NYSE related to 

transactions covered by Rule 6730 

remains in effect.5 This exemption 

currently operates as a pilot program 

and is scheduled to expire on October 

27, 2017.6

FINRA is proposing to make the 

exemption in Rule 6730(e)(4) 

permanent. Thus, pursuant to the 

proposed rule change, members would 

not be required to report to TRACE 

transactions in TRACE-Eligible 

Securities that are executed on a NYSE 

facility in accordance with NYSE Rules 

1400, 1401 and 86, where such 

transactions are disseminated publicly 

by NYSE, so long as a data sharing 

agreement is in effect between FINRA 

and NYSE related to transactions 

covered by Rule 6730.7

FINRA is proposing to make the 

exemption available on a permanent 

basis as the pilot has been operating 

without incident since its inception in 

2007. Providing this exemption on a 

permanent basis would solidify in the 

FINRA rule a measure to avoid trade 

reporting to FINRA with regard to 

transactions in these securities that are 

disseminated publicly by NYSE. FINRA 

notes that the exemption under Rule 

6730(e)(4) continues to be conditional 

on a data sharing agreement being in 

effect between FINRA and NYSE related 

to transactions covered by Rule 6730. 

FINRA has filed the proposed rule 

change for immediate effectiveness and 

has requested that the SEC waive the 

requirement that the proposed rule 

change not become operative for 30 days 

after the date of the filing, so FINRA can 

implement the proposed rule change on 

the date of filing and prior to the 

expiration of the current pilot. 

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of section 15A(b)(6) of the Act,8 which 

requires, among other things, that 

FINRA rules must be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 

general, to protect investors and the 

public interest. 

FINRA believes that providing the 

exemption on a permanent basis 

protects investors and the public 

because it continues to ensure that 

transactions are required to be publicly 

disseminated, and therefore 

transparency will be maintained for 

these transactions. The continued 

condition that a data sharing agreement 

remain in effect between NYSE and 

FINRA for transactions covered by the 

Rule 6730(e)(4) exemption allows 

FINRA to conduct surveillance in 

TRACE-Eligible Securities. In addition, 

providing the exemption on a 

permanent basis enhances regulatory 

efficiency and, with regard to covered 

transactions, permits members to avoid 

trade reporting to FINRA and the 

increased costs that may be incurred as 

a result of such requirement. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

FINRA does not believe that the 

proposed rule change will result in any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. FINRA 


sradovich on DSK3GMQ082PROD with NOTICES
50196 Federal Register / Vol. 82, No. 208 / Monday, October 30, 2017 / Notices 

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

10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires a self-regulatory organization to 

give the Commission written notice of its intent to 

file the proposed rule change, along with a brief 

description and text of 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. FINRA has 

satisfied this requirement. 

11For 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). 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

believes that providing the exemption 

on a permanent basis does not result in 

any burden on competition since it 

treats all similarly-situated members the 

same. Specifically, with regard to 

covered transactions, the proposal 

allows members to avoid trade reporting 

to FINRA and the increased costs that 

may be incurred as a result of such 

requirement. 

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 

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) of the Act 9 and Rule 19b– 

4(f)(6) thereunder.10

FINRA has asked the Commission to 

waive the 30-day operative delay so that 

the proposal may become operative 

immediately upon filing. The 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest because such action will 

allow the existing TRACE exemption to 

remain available without interruption. If 

the pilot program were to expire on 

October 27, 2017, FINRA members 

would immediately become subject to 

duplicative reporting obligations with 

respect to transactions in TRACEeligible debt securities effected on 

NYSE. In addition, the Commission 

notes that the pilot has been operating 

since 2007 without any issues being 

raised in the various comment periods 

to extend the pilot. For these reasons, 

the Commission hereby waives the 30- 

day operative delay requirement and 

designates the proposed rule change as 

operative upon filing.11

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– 

FINRA–2017–032 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–FINRA–2017–032. 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 such 

filing also will be available for 

inspection and copying at the principal 

office of FINRA. 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–FINRA– 

2017–032, and should be submitted on 

or before November 20, 2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–23479 Filed 10–27–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81935; File No. SR–GEMX– 

2017–49] 

Self-Regulatory Organizations; Nasdaq 

GEMX, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Rule 723 To 

Remove Obsolete Rule Text 

October 24, 2017. 

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 October 

17, 2017, Nasdaq GEMX, LLC (‘‘GEMX’’ 

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 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 

Rule 723 (Price Improvement 

Mechanism for Crossing Transactions) 

to remove obsolete rule text. 

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 


sradovich on DSK3GMQ082PROD with NOTICES