Document ID: SEC-2018-1976-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Nasdaq BX, Inc.
Posted Date: 2018-12-26T05:00Z

[Federal Register Volume 83, Number 246 (Wednesday, December 26, 2018)]
[Notices]
[Pages 66325-66326]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-27821]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84846; File No. SR-BX-2014-048]

Self-Regulatory Organizations; Nasdaq BX, Inc.; Order Granting an 
Extension to Limited Exemptions From Rule 612(c) of Regulation NMS In 
Connection With the Exchange's Retail Price Improvement Program Until 
June 30, 2019

December 18, 2018.
    On November 28, 2014, the Securities and Exchange Commission 
(``Commission'') issued an order pursuant to its authority under Rule 
612(c) of Regulation NMS (``Sub-Penny Rule'') \1\ that granted The 
NASDAQ OMX BX, Inc., n/k/a Nasdaq BX, Inc. (``BX'' or ``Exchange''), a 
limited exemption from the Sub-Penny Rule in connection with the 
operation of the Exchange's Retail Price Improvement Program (the ``RPI 
Program'').\2\ The limited exemption was granted concurrently with the 
Commission's approval of the Exchange's proposal to adopt its RPI 
Program for a one-year pilot term.\3\ On November 20, 2015, the 
Commission extended the temporary exemption until December 2016 
concurrently with an immediately effective filing that extended the 
operation of the RPI Program until December 1, 2016.\4\ On December 1, 
2016, the Commission extended the temporary exemption until December 1, 
2017 concurrently with an immediately effective filing that extended 
the operation of the RPI Program until December 1, 2017.\5\ On December 
1, 2017, the Commission extended the temporary exemption until June 30, 
2018 concurrently with an immediately effective filing that extended 
the operation of the RPI Program until June 30, 2018.\6\ On June 28, 
2018, the Commission again extended the temporary exemption until 
December 31, 2018 concurrently with an immediately effective filing 
that extended the operation of the RPI Program until December 31, 
2018.\7\
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    \1\ 17 CFR 242.612(c).
    \2\ See Securities Exchange Act Release No. 73702, 79 FR 72049 
(December 4, 2014) (SR-BX-2014-048) (``RPI Approval Order'').
    \3\ See id.
    \4\ See Securities Exchange Act Release No. 76490 (November 20, 
2015), 80 FR 74165 (November 27, 2015) (SR-BX-2015-073).
    \5\ See Securities Exchange Act Release No. 79446 (December 1, 
2016), 81 FR 88290 (December 7, 2016) (SR-BX-2016-065).
    \6\ See Securities Exchange Act Release No. 82192 (December 1, 
2017), 82 FR 57809 (December 7, 2017) (SR-BX-2017-055).
    \7\ See Securities Exchange Act Release No. 83539 (June 28, 
2018), 83 FR 31203 (July 3, 2018) (SR-BX-2018-026).
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    The Exchange now seeks to extend the exemption until June 30, 
2019.\8\ The Exchange's request was made in conjunction with an 
immediately effective filing that extends the operation of the RPI 
Program through the same date.\9\ In its request to extend the 
exemption, the Exchange notes that given the gradual implementation of 
the RPI Program and the preliminary participation and results, 
extending the exemption would provide additional opportunities for 
greater participation and assessment of the results.\10\ Accordingly, 
the Exchange has asked additional time to allow it and the Commission 
to analyze data concerning the RPI Program, which the Exchange 
committed to provide to the Commission.\11\ For this reason and the 
reasons stated in the RPI Approval Order originally granting the 
limited exemption, the Commission, pursuant to its authority under Rule 
612(c) of Regulation NMS, finds that pursuant to its authority under 
Rule 612(c) of Regulation NMS, extending the exemption is appropriate 
in the public interest and consistent with the protection of investors.
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    \8\ See Letter from Jeffrey S. Davis, Vice President and Deputy 
General Counsel and Secretary, Nasdaq BX, Inc. to Eduardo A. Aleman, 
Assistant Secretary, Securities and Exchange Commission, dated 
December 11, 2018 (``BX Letter'').
    \9\ See SR-BX-2018-063.
    \10\ See, e.g., BX Letter at 3; RPI Approval Order, supra note 
2.
    \11\ See, id.
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    Therefore, it is hereby ordered that, pursuant to Rule 612(c) of 
Regulation NMS, the Exchange is granted a limited exemption from Rule 
612 of Regulation NMS that allows the Exchange to accept and rank 
orders priced equal to or greater than $1.00 per share in increments of 
$0.001, in connection with the operation of its RPI Program, until June 
30, 2019.
    The limited and temporary exemption extended by this Order is 
subject to modification or revocation if at any time the Commission 
determines that such action is necessary or appropriate in furtherance 
of the purposes of the Securities Exchange Act of 1934. Responsibility 
for compliance with any applicable provisions of the Federal securities 
laws must rest with the persons relying on the exemptions that are the 
subject of this Order.

[[Page 66326]]

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(83).
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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2018-27821 Filed 12-21-18; 8:45 am]
 BILLING CODE 8011-01-P