Document ID: SEC-2018-1031-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Nasdaq BX, Inc.
Posted Date: 2018-07-03T04:00Z

[Federal Register Volume 83, Number 128 (Tuesday, July 3, 2018)]
[Notices]
[Pages 31232-31233]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-14288]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83542; File No. SR-BX-2014-048]

Self-Regulatory Organizations; Nasdaq BX; 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 
December 31, 2018

June 28, 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 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 
again extended the temporary exemption until June 30, 2018 concurrently 
with an immediately effective filing that extended the operation of the 
RPI Program until December 1, 2017.\6\
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    \1\ 17 CFR 242.612(c).
    \2\ See Securities Exchange Act Release No. 73702, 79 FR 72049 
(December 4, 2014) (SRBX-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).
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    The Exchange now seeks to extend the exemption until December 31, 
2018.\7\ 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.\8\ 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.\9\ 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.\10\ 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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    \7\ 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 June 
21, 2018 (``BX Letter'').
    \8\ See SR-BX-2018-026.
    \9\ See, e.g., BX Letter at 3; RPI Approval Order, supra note 2.
    \10\ See, e.g., id.; RPI Approval Order, supra note 2.
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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 
December 31, 2018.
    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

[[Page 31233]]

persons relying on the exemptions that are the subject of this Order.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(83).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-14288 Filed 7-2-18; 8:45 am]
BILLING CODE 8011-01-P