Federal Register / Vol. 82, No. 202 / Friday, October 20, 2017 / Notices 48869 

11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3SQF is an interface that allows market makers 

to connect and send quotes, sweeps and auction 

responses into the Exchange. Data includes the 

following: (1) Options Auction Notifications (e.g., 

opening imbalance, Flash, PIM, Solicitation and 

Facilitation or other information); (2) Options 

Symbol Directory Messages; (3) System Event 

Messages (e.g., start of messages, start of system 

hours, start of quoting, start of opening); (4) Option 

Trading Action Messages (e.g., halts, resumes); (5) 

Execution Messages; (6) Quote Messages (quote/ 

sweep messages, risk protection triggers or purge 

notifications). 

4SQF Purge is a specific port for the SQF 

interface that only receives and notifies of purge 

requests from the market maker. 

5The term ‘‘Market Makers’’ refers to 

‘‘Competitive Market Makers’’ and ‘‘Primary Market 

Makers’’ collectively. See GEMX Rule 100(a)(25). 

6SQF is an interface that allows market makers 

to connect and send quotes, sweeps and auction 

responses into the Exchange. Data includes the 

following: (1) Options Auction Notifications (e.g., 

opening imbalance, Flash, PIM, Solicitation and 

Facilitation or other information); (2) Options 

Symbol Directory Messages; (3) System Event 

Messages (e.g., start of messages, start of system 

hours, start of quoting, start of opening); (4) Option 

Trading Action Messages (e.g., halts, resumes); (5) 

Execution Messages; (6) Quote Messages (quote/ 

sweep messages, risk protection triggers or purge 

notifications). 

7SQF Purge is a specific port for the SQF 

interface that only receives and notifies of purge 

requests from the market maker. 

8The term ‘‘Market Makers’’ refers to 

‘‘Competitive Market Makers’’ and ‘‘Primary Market 

Makers’’ collectively. See GEMX Rule 100(a)(25). 

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

10 15 U.S.C. 78f(b)(4) and (5). 

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–ISE– 

2017–88 and should be submitted on or 

before November 13, 2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–22753 Filed 10–19–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81881; File No. SR–GEMX– 

2017–44] 

Self-Regulatory Organizations; Nasdaq 

GEMX, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Its Schedule of 

Fees To Increase the Monthly Cap on 

the Fees Assessed for Specialized 

Quote Feed and SQF Purge Ports That 

Market Makers Utilize To Connect to 

the Exchange 

October 16, 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 

2, 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, 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 amend its 

Schedule of Fees to increase the 

monthly cap on the fees assessed for 

Specialized Quote Feed (‘‘SQF’’) 3 and 

SQF Purge 4 Ports that Market Makers 5

utilize to connect to the Exchange. 

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 Exchange is proposing to amend 

its Schedule of Fees to increase the 

monthly cap on the fees assessed for 

Specialized Quote Feed (‘‘SQF’’) 6 and 

SQF Purge 7 Ports that Market Makers 8

utilize to connect to the Exchange. 

Currently, the Exchange charges 

monthly SQF and SQF Purge Port Fees 

of $1,250 per port, and caps these fees 

for Market Makers utilizing these ports 

at $12,500 per month (‘‘SQF Fee Cap’’). 

The Exchange now proposes to increase 

the SQF Fee Cap from $12,500 to 

$17,500. The monthly $1,250 per port 

fees for SQF and SQF Purge Ports will 

remain unchanged. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,9 in general, and furthers the 

objectives of Sections 6(b)(4) and 6(b)(5) 

of the Act,10 in particular, in that it 

provides for the equitable allocation of 

reasonable dues, fees, and other charges 

among members and issuers and other 

persons using any facility, and is not 

designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers. 

The Exchange believes that increasing 

the SQF Fee Cap from $12,500 to 

$17,500 is reasonable because it better 

aligns the fees collected from Market 

Makers utilizing the SQF and SQF Purge 

Ports with the costs associated with 

maintaining and supporting the ports, as 

well as the initial investment in such 

ports for the Exchange. The Exchange 

also believes that the proposed increase 

of the SQF Fee Cap is reasonable 

because it will allow the Exchange to 

recoup costs while continuing to cap 

infrastructure costs for Market Makers 

that subscribe to a large number of ports 

due to their larger market making 

footprint on the Exchange. Without such 

a cap, Market Makers may be inhibited 

from expanding their activity on the 

Exchange. As a general principal, the 

Exchange believes that greater 

participation on the Exchange by 

members improves market quality for all 

market participants. Thus, in arriving at 

a fee cap of $17,500, the Exchange 

balanced the desire to improve market 

quality against the need to cover costs 

and make a profit. Lastly, the Exchange 

notes that its affiliate, Nasdaq Phlx 


srobinson on DSKBC5CHB2PROD with NOTICES
48870 Federal Register / Vol. 82, No. 202 / Friday, October 20, 2017 / Notices 

11See Phlx Pricing Schedule, VII. Other Member 

Fees, B. Port Fees. 

12 15 U.S.C. 78s(b)(3)(A)(ii). 

13 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

(‘‘Phlx’’), offers its members a monthly 

fee cap of $42,000 for its active SQF 

ports.11

The Exchange believes that the 

proposed increase of the SQF Fee Cap 

is equitable and not unfairly 

discriminatory because the fee cap will 

apply uniformly to all Market Makers 

utilizing SQF and SQF Purge Ports. 

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 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, or 

rebate opportunities available at other 

venues to be more favorable. In such an 

environment, the Exchange must 

continually adjust its fees to remain 

competitive with other exchanges and 

with alternative trading systems that 

have been exempted from compliance 

with the statutory standards applicable 

to exchanges. Because competitors are 

free to modify their own fees in 

response, and because market 

participants may readily adjust their 

order routing practices, the Exchange 

believes that the degree to which fee 

changes in this market may impose any 

burden on competition is extremely 

limited. 

In this instance, the proposed increase 

in the SQF Fee Cap would not burden 

competition because it would apply 

uniformly to all Market Makers utilizing 

SQF and SQF Purge Ports. Accordingly, 

the Exchange does not believe that the 

proposed fee changes herein will impair 

the ability of members or competing 

order execution venues to maintain 

their competitive standing in the 

financial markets. 

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.12 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 Number SR– 

GEMX–2017–44 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–GEMX–2017–44. 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–GEMX– 

2017–44 and should be submitted on or 

before November 13, 2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–22756 Filed 10–19–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81880; File No. SR–NYSE– 

2017–51] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend 

Rules 80C, 104, 107B, and 128 

October 16, 2017. 

Pursuant to Section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that on October 

3, 2017, New York Stock Exchange LLC 

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

the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the selfregulatory organization. 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 

Rules 80C, 104, 107B, and 128. The 

proposed rule change is available on the 

Exchange’s Web site at www.nyse.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 

self-regulatory organization 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 those statements may be examined at 


srobinson on DSKBC5CHB2PROD with NOTICES