Document ID: SEC-2018-1513-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Nasdaq GEMX, LLC
Posted Date: 2018-10-01T04:00Z

[Federal Register Volume 83, Number 190 (Monday, October 1, 2018)]
[Notices]
[Pages 49440-49442]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-21236]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84283; File No. SR-GEMX-2018-29]

Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Relocate the 
Exchange's Schedule of Fees

September 25, 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 September 12, 2018, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to (a) relocate the GEMX Schedule of Fees and 
current Rule 209 to the Exchange's rulebook's (``Rulebook'') shell 
structure,\3\ and (b) make conforming cross-reference changes 
throughout the Rulebook.
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    \3\ In 2017, the Exchange added a shell structure to its 
Rulebook with the purpose of improving efficiency and readability 
and to align its rules closer to those of its five sister exchanges, 
The Nasdaq Stock Market LLC; Nasdaq BX, Inc.; Nasdaq PHLX LLC; 
Nasdaq ISE, LLC; and Nasdaq MRX, LLC (``Affiliated Exchanges''). See 
Securities Exchange Act Release No. 82171 (November 29, 2017), 82 FR 
57516 (December 5, 2017) (SR-GEMX-2017-54).
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    The text of the proposed rule change is available on the Exchange's 
website at http://nasdaqgemx.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 Exchange proposes to relocate the entire GEMX Schedule of Fees 
and Rule 209 to the Exchange's shell structure; specifically, the 
Exchange will relocate the aforementioned rules to the Options 7 
(``Pricing Schedule'') section of the shell. In addition, the Exchange 
will make conforming cross-reference changes throughout the Rulebook.
(a) Relocation of Rules
    As indicated, the Exchange, as part of its continued effort to 
promote

[[Page 49441]]

efficiency and the conformity of its processes with those of the 
Affiliated Exchanges, and the goal of harmonizing and uniformizing its 
rules, proposes to relocate the Schedule of Fees and GEMX Rule 209 to 
Options 7, Pricing Schedule, of the shell structure.
    To improve the readability of the relocated Pricing Schedule rules, 
the Exchange will update their current ``Preface'' section and rename 
it ``Section 1. General Provisions.'' Next, the Exchange will move 
current GEMX Rule 209, described in the paragraph below, and rename it 
``Section 2'' but keeping its current title, ``Collection of Exchange 
Fees and Other Claims.''
    GEMX Rule 209 was added to the Rulebook to permit the Exchange the 
collection of undisputed or final fees, fines, charges and/or other 
monetary sanctions or other monies due and owing to the Exchange or 
other charges related to Rules 205 and 206.\4\ The Exchange believes 
that, unlike other rules in Chapter 2 (``Administration'') of the 
Rulebook, which generally refer to the powers of the Board of Directors 
and the authority it delegates to Senior Management of the Exchange, 
the direct debit process established in Rule 209 will be better 
situated among the relocated rules of the Pricing Schedule.
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    \4\ See Securities Exchange Act Release No. 79013 (September 30, 
2016), 81 FR 69556 (October 6, 2016) (SR-ISEGemini-2016-12); see 
also, Securities Exchange Act Release No. 79562 (December 15, 2016), 
81 FR 93722 (December 21, 2016) (SR-ISEGemini-2016-20).
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    The Exchange is also proposing to move all the remaining sections, 
I through V, in the current Schedule of Fees, renumber them as provided 
in the table below, and add the word ``Section'' to each of their 
titles. Relatedly, the Exchange will update all references to the 
``Schedule of Fees'' or ``Fee Schedule'' in the proposed rule text and 
replace them with the term ``Pricing Schedule'' where appropriate.
    Finally, the Exchange will update all references to ``NASDAQ'' in 
proposed Section 6, H., of the Pricing Schedule with the word 
``Nasdaq,'' to keep the proposed rule text consistent with changes to 
the names of the Affiliated Exchanges.\5\
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    \5\ See Securities Exchange Act Releases No. 81917 (October 23, 
2017), 82 FR 49879 (October 27, 2017) (SR-NASDAQ-2017-111) and No. 
81948 (October 25, 2017), 82 FR 50468 (October 31, 2017) (SR-BX-
2017-046).
[GRAPHIC] [TIFF OMITTED] TN01OC18.003

    The relocation of the Pricing Schedule rules will facilitate the 
use of the Rulebook by Members \6\ of the Exchange, including those who 
are members of other Affiliated Exchanges, and other market 
participants. Moreover, the proposed changes are of a non-substantive 
nature and will not amend the relocated rules, other than make the 
updates previously explained.
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    \6\ Exchange Rule 100(a)(31).
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(b) Cross-Reference Updates
    In connection with the changes described above, the Exchange 
proposes to update all cross-references in the Rulebook that direct the 
reader to the current location of the Pricing Schedule rules and/or any 
of their subsections.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\7\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\8\ in particular, in that it is designed to promote 
just and equitable principles of trade, to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, and, in general to protect investors and the public interest, 
by promoting efficiency and structural conformity of the Exchange's 
processes with those of the Affiliated Exchanges and to make the 
Exchange's Rulebook easier to read and more accessible to its Members 
and market participants. The Exchange believes that the relocation of 
the Pricing Schedule rules, updating the name ``NASDAQ'' to ``Nasdaq,'' 
and related cross-reference updates are of a non-substantive nature.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).

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[[Page 49442]]

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 proposed changes do not 
impose a burden on competition because, as previously stated, they (i) 
are of a non-substantive nature, (ii) are intended to harmonize the 
structure of the Exchange's rules with those of its Affiliated 
Exchanges, and (iii) are intended to organize the Rulebook in a way 
that it will ease the Members' and market participants' navigation and 
reading of the rules.

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

    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\
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written 
notice of its intent to file the proposed rule change, along with a 
brief description and the 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.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \11\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \12\ 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 proposed rule change may become operative upon filing. Waiver 
of the operative delay would allow the Exchange to promptly relocate 
the Pricing Schedule rules and continue to reorganize its Rulebook to 
promote efficiency and structural consistency between the Exchange's 
rules and those of the Affiliated Exchanges. The Commission believes 
that waiver of the 30-day operative delay is consistent with the 
protection of investors and the public interest. Accordingly, the 
Commission hereby waives the operative delay and designates the 
proposed rule change operative upon filing.\13\
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    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ For purposes only of waiving the 30-day operative delay, 
the Commission also has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    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 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 [email protected]. Please include 
File Number SR-GEMX-2018-29 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-GEMX-2018-29. 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 a.m. and 3 
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-GEMX-2018-29 and should be submitted on 
or before October 22, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-21236 Filed 9-28-18; 8:45 am]
 BILLING CODE 8011-01-P