82_FR_18878 82 FR 18802 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the MDX Fees Schedule

82 FR 18802 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the MDX Fees Schedule

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 76 (April 21, 2017)

Page Range18802-18805
FR Document2017-08059

Federal Register, Volume 82 Issue 76 (Friday, April 21, 2017)
[Federal Register Volume 82, Number 76 (Friday, April 21, 2017)]
[Notices]
[Pages 18802-18805]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-08059]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80470; File No. SR-CBOE-2017-030]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend the MDX Fees Schedule

April 17, 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 April 3, 2017, Chicago Board Options Exchange, Incorporated 
(the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange 
Commission (the ``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.
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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

    Chicago Board Options Exchange, Incorporated (the ``Exchange'' or 
``CBOE'') proposes to amend its MDX fees schedule. The text of the 
proposed rule change is available on the Exchange's Web site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's 
Office of the Secretary, 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

[[Page 18803]]

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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to make a number of changes to the Fees 
Schedule of the Exchange's affiliate Market Data Express, LLC 
(``MDX''). The purpose of the proposed rule change is to amend fees for 
the Best Bid and Offer (``BBO'') data feed. This data feed is made 
available by MDX.
BBO Data Feed
    The BBO Data Feed is a real-time data feed that includes the 
following information: (i) Outstanding quotes and standing orders at 
the best available price level on each side of the market; (ii) 
executed trades time, size, and price; (iii) totals of customer versus 
non-customer contracts at the BBO; (iv) all-or-none contingency orders 
priced better than or equal to the BBO; (v) expected opening price and 
expected opening size; (vi) end-of-day summaries by product, including 
open, high, low, and closing price during the trading session; (vi) 
recap messages any time there is a change in the open, high, low or 
last sale price of a listed option; (vii) Complex Order Book (``COB'') 
information; and (viii) product IDs and codes for all listed options 
contracts. The quote and last sale data contained in the BBO data feed 
is identical to the data sent to the Options Price Reporting Authority 
for redistribution to the public.
Background
    Fees for the BBO data feed are payable by all ``Customers.'' A 
``Customer'' is any person, company or other entity that, pursuant to a 
market data agreement with MDX, is entitled to receive data, either 
directly from MDX or through an authorized redistributor (i.e., a 
Customer or an extranet service provider), whether that data is 
distributed externally or used internally.\3\ In addition to the BBO 
Data Fee assessed to Customers, the Exchange assesses reduced ``user 
fees'' for entities who access BBO data through a Display Only Service 
or as a Floor Broker User.
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    \3\ The MDX fee schedule for CBOE data is located at https://www.cboe.org/MDX/CSM/OBOOKMain.aspx.
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    In March 2017, the Exchange adopted a fee of $100 per month, per 
Approved Third-Party Device, for Floor Broker Users accessing the BBO 
data feed on the Exchange floor.\4\ An ``Approved Third-Party Device'' 
means any computer, workstation or other item of equipment, fixed or 
portable, that receives, accesses and/or displays data in visual, 
audible or other form that has been provided by a third-party and that 
has been approved, by CBOE, for use on the CBOE trading floor. A 
``Floor Broker User'' is a person or entity registered with CBOE as a 
floor broker pursuant to CBOE Rules.
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    \4\ See Securities Exchange Act Release No. 80286 (March 21, 
2017), 82 FR 15247 (March 27, 2015) (SR-CBOE-2017-022).
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    Floor Brokers use the BBO Data Feed primarily to comply with 
customer priority obligations, such as those outlined in CBOE Rule 6.45 
(as mentioned above, the BBO data includes customer contracts at the 
BBO). Floor Brokers who receive the BBO data feed via Approved Third 
Party Device are not considered ``Customers'' of MDX to whom the BBO 
Data Fee applies (unless the Floor Broker has a separate market data 
agreement in place with MDX) and accordingly are not charged the BBO 
Data Fee. Additionally, a third-party vendor of an Approved Third-Party 
Device is not a Customer unless it has a market data agreement in place 
with MDX.
    In addition to Floor Broker User Fees, the Exchange assesses User 
fees payable for external Display Only Service users (Devices or user 
IDs of Display Only Service users who receive data from a Customer and 
are not employees or natural person independent contractors of the 
Customer, the Customer's affiliates or an authorized service 
facilitator). For the purpose of Display Only Service users, a 
``Device'' means any computer, workstation or other item of equipment, 
fixed or portable, that receives, accesses and/or displays data in 
visual, audible or other form.
Fee Cap
    The Exchange is proposing Floor Broker User fees be subject to a 
monthly cap of $1000 per Trading Permit Holder (``TPH'') firm. The cap 
will limit the amount of Floor Broker User fees a TPH firm will pay in 
a calendar month to $1000 in the event said TPH firm accesses the BBO 
data feed through more than 10 Approved Third-Party Devices. As Floor 
Broker Users are using the BBO data primarily to meet their priority 
obligations (and not for proprietary trading purposes), the Exchange 
believes it is appropriate to limit the amount of Floor Broker User 
fees to be assessed to a TPH firm.
    By way of example, if a TPH firm accesses the BBO data feed through 
14 Approved Third-Party Devices, said TPH firm would currently be 
assessed Floor Broker User fees of $1400 per month (14 Approved Third-
Party Devices x $100 per Approved Third-Party Device = $1400). Under 
the proposed cap, the same TPH firm accessing the BBO data feed through 
14 Approved Third-Party Devices would be assessed Floor Broker User 
fees of $1000 per month (14 Approved Third-Party Devices x $100 per 
Approved Third-Party Device (subject to a monthly cap of $1000 per TPH 
firm) = $1000).
Additional MDX Fee Schedule Updates
    The Exchange is proposing a number of additional updates to the MDX 
fee schedule to clarify certain items as they relate to Floor Broker 
User fees or User fees for Display Only Users. First, the Exchange is 
specifying that a Floor Broker User, as defined below, is not a 
Customer unless it has a market data agreement in place with MDX. In 
addition, the Exchange is changing the name of ``User fees'' payable 
for external Display Only Service Users to ``Display Only User fees'' 
in order to reduce confusion with the BBO Data fee or Floor Broker User 
fees. Finally, the Exchange is deleting language on the MDX schedule 
stating that ``Floor Broker Users may directly interact with the CBOE 
Hybrid Order Handling System and view and manipulate data using their 
Approved Third-Party Devices, but not save, copy, export or transfer 
the data or any results of a manipulation to any other computer 
hardware, software or media, except for printing it to paper or other 
non-magnetic media''. The Exchange believes that, as outlined above, 
``Floor Broker Users'' and ``Approved Third-Party Devices'' are 
adequately defined elsewhere in the MDX fee schedule. The Exchange does 
not believe the deleted language is necessary to further clarify or 
limit what a Floor Broker User may or may not do with the BBO data it 
receives via Approved Third-Party Device.
Display Only User and Floor Broker User Fee Reporting
    In addition to the clarifications above, the Exchange is adding 
language to the MDX schedule to explain the reporting process used to 
determine applicable Display Only User fees and Floor Broker User fees. 
With regard to the Display Only User fees, the proposed language 
states, ``Customers who distribute BBO Data to external users via a 
Display Only service must report to MDX the number of authorized 
external devices that

[[Page 18804]]

receive BBO data from the Customer during a calendar month within 15 
days after such month in the manner and format specified by MDX from 
time to time to determine applicable fees.'' With regard to the Floor 
Broker User fees, the proposed language states, ``Third-party vendors 
who distribute BBO Data to Floor Broker Users via Approved Third-Party 
Devices must report to MDX the number of Approved Third-Party Devices 
that receive BBO data from such third party vendor during a calendar 
month within 15 days after such month in the manner and format 
specified by MDX from time to time to determine applicable fees.'' 
Including the reporting processes used to determine applicable Display 
Only User fees and Floor Broker User fees on the MDX fee schedule will 
provide greater clarity to both Customers who provide Display Only 
Services to users and third-party vendors of Approved Third-Party 
Devices. Furthermore, including the reporting processes will ensure the 
Exchange accurately charges fees for these services.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Securities Exchange Act of 1934 (the ``Act'') and the rules and 
regulations thereunder applicable to the Exchange and, in particular, 
the requirements of Section 6(b) of the Act.\5\ Specifically, the 
Exchange believes the proposed rule change is consistent with Section 
6(b)(4) of the Act,\6\ which requires that Exchange rules provide for 
the equitable allocation of reasonable dues, fees, and other charges 
among its Trading Permit Holders and other persons using its 
facilities. The Exchange also believes the proposed rule change is 
consistent with the Section 6(b)(5) \7\ requirement that the rules of 
an exchange not be designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4).
    \7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes the proposed Floor Broker User fee cap is 
equitable and not unfairly discriminatory because it would apply 
equally to all TPH firms using Approved Third-Party Devices on the 
Exchange trading floor. Furthermore, the Exchange believes it is 
reasonable, equitable and not unfairly discriminatory to cap Floor 
Broker User Fees because Floor Broker Users generally use the data for 
the limited purpose of meeting their order priority obligations (as 
opposed to using the data for proprietary trading activity).
    The Exchange believes the additional updates to the MDX fee 
schedule related to further defining Floor Broker users and the 
reporting obligations of Customers and third-party vendors of Approved 
Third Party Devices are designed to add clarity and reduce confusion 
related to the BBO Data Feed and will therefore lead to the equitable 
allocation of reasonable dues, fees, and other charges among its TPHs 
and other persons using its facilities.

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 that is not necessary or appropriate 
in furtherance of the purposes of the Act. The proposed fee cap on 
Floor Broker User Fees will not have an impact on intramarket 
competition as it will apply to all TPH firms equally who use more than 
10 Approved Third-Party Devices. The other clarifications made to the 
fee schedule related to further defining Floor Broker users and the 
reporting obligations of Customers and third-party vendors of Approved 
Third Party Devices will not have an impact on intramarket competition 
as they are non-substantive and only designed to add clarity to the fee 
schedule and reduce confusion among TPHs and other persons accessing 
the BBO data feed.
    Furthermore, the Exchange does not believe that the proposed fee 
cap will cause any unnecessary burden on intermarket competition 
because the proposed change only affects trading on the Exchange's 
trading floor. To the extent that the proposed changes make the 
Exchange a more attractive marketplace for market participants at other 
exchanges, such market participants are welcome to become CBOE market 
participants.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    The Exchange neither solicited nor received comments on the 
proposed rule change.

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) of the Act \8\ and paragraph (f) of Rule 19b-4 \9\ 
thereunder. 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 will institute proceedings to 
determine whether the proposed rule change should be approved or 
disapproved.
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f).
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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 No. SR-CBOE-2017-030 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 No. SR-CBOE-2017-030. 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

[[Page 18805]]

information that you wish to make available publicly. All submissions 
should refer to File No. SR-CBOE-2017-030, and should be submitted on 
or before May 12, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2017-08059 Filed 4-20-17; 8:45 am]
BILLING CODE 8011-01-P



                                                18802                            Federal Register / Vol. 82, No. 76 / Friday, April 21, 2017 / Notices

                                                interest by reducing the number of                      organization consents, the Commission                   For the Commission, by the Division of
                                                unsettled trades in the clearance and                   will:                                                 Trading and Markets, pursuant to delegated
                                                settlement system at any given time,                      A. By order approve or disapprove the               authority.17
                                                thereby reducing the risk inherent in                   proposed rule change, or                              Brent J. Fields,
                                                settling securities transactions to                       B. Institute proceedings to determine               Secretary.
                                                clearing corporations, their members                    whether the proposed rule change                      [FR Doc. 2017–08057 Filed 4–20–17; 8:45 am]
                                                and public investors. The Exchange also                 should be disapproved.                                BILLING CODE 8011–01–P
                                                believes that the proposed operative                    IV. Solicitation of Comments
                                                date for the proposed rule change of
                                                September 5, 2017 would remove                            Interested persons are invited to                   SECURITIES AND EXCHANGE
                                                impediments to and perfect the                          submit written data, views, and                       COMMISSION
                                                mechanisms of a free and open market                    arguments concerning the foregoing,
                                                                                                        including whether the proposed rule                   [Release No. 34–80470; File No. SR–CBOE–
                                                and a national market system as it is                                                                         2017–030]
                                                identical to the compliance date for the                change is consistent with the Act.
                                                amendment to Rule 15c6–1(a) set by the                  Comments may be submitted by any of
                                                                                                                                                              Self-Regulatory Organizations;
                                                SEC.15                                                  the following methods:
                                                                                                                                                              Chicago Board Options Exchange,
                                                B. Self-Regulatory Organization’s                       Electronic Comments                                   Incorporated; Notice of Filing and
                                                Statement on Burden on Competition                        • Use the Commission’s Internet                     Immediate Effectiveness of a Proposed
                                                                                                        comment form (http://www.sec.gov/                     Rule Change To Amend the MDX Fees
                                                  The Exchange does not believe that                                                                          Schedule
                                                the proposed rule change will impose                    rules/sro.shtml); or
                                                                                                          • Send an email to rule-comments@                   April 17, 2017.
                                                any burden on competition that is not
                                                                                                        sec.gov. Please include File Number SR–
                                                necessary or appropriate in furtherance                                                                          Pursuant to Section 19(b)(1) of the
                                                                                                        CHX–2017–06 on the subject line.
                                                of the purposes of the Act. The                                                                               Securities Exchange Act of 1934 (the
                                                proposed change is not designed to                      Paper Comments                                        ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                address any competitive issue, but                         • Send paper comments in triplicate                notice is hereby given that on April 3,
                                                rather facilitate the industry’s transition             to Brent J. Fields, Secretary, Securities             2017, Chicago Board Options Exchange,
                                                to a T+2 regular way settlement cycle.                  and Exchange Commission, 100 F Street                 Incorporated (the ‘‘Exchange’’ or
                                                The Exchange also believes that the                     NE., Washington, DC 20549–1090.                       ‘‘CBOE’’) filed with the Securities and
                                                proposed rule change will serve to                                                                            Exchange Commission (the
                                                                                                        All submissions should refer to File
                                                promote clarity and consistency,                                                                              ‘‘Commission’’) the proposed rule
                                                                                                        Number SR–CHX–2017–06. This file
                                                thereby reducing burdens on the                                                                               change as described in Items I, II, and
                                                                                                        number should be included on the
                                                marketplace and facilitating investor                                                                         III below, which Items have been
                                                                                                        subject line if email is used. To help the
                                                protection. Moreover, the proposed rule                                                                       prepared by the Exchange. The
                                                                                                        Commission process and review your
                                                change is consistent with the SEC’s                                                                           Commission is publishing this notice to
                                                                                                        comments more efficiently, please use
                                                amendment to Securities Exchange Act                                                                          solicit comments on the proposed rule
                                                                                                        only one method. The Commission will
                                                Rule 15c6–1(a) to require standard                                                                            change from interested persons.
                                                                                                        post all comments on the Commission’s
                                                settlement no later than T+2.                           Internet Web site (http://www.sec.gov/                I. Self-Regulatory Organization’s
                                                Accordingly, the Exchange believes that                 rules/sro.shtml). Copies of the                       Statement of the Terms of Substance of
                                                the proposed changes do not impose                      submission, all subsequent                            the Proposed Rule Change
                                                any burdens on the industry in addition                 amendments, all written statements
                                                to those necessary to implement                                                                                  Chicago Board Options Exchange,
                                                                                                        with respect to the proposed rule                     Incorporated (the ‘‘Exchange’’ or
                                                amendments to Securities Exchange Act                   change that are filed with the
                                                Rule 15c6–1(a) as described and                                                                               ‘‘CBOE’’) proposes to amend its MDX
                                                                                                        Commission, and all written                           fees schedule. The text of the proposed
                                                enumerated in the SEC Proposing                         communications relating to the
                                                Release.16                                                                                                    rule change is available on the
                                                                                                        proposed rule change between the                      Exchange’s Web site (http://
                                                C. Self-Regulatory Organization’s                       Commission and any person, other than                 www.cboe.com/AboutCBOE/
                                                Statement on Comments on the                            those that may be withheld from the                   CBOELegalRegulatoryHome.aspx), at
                                                Proposed Rule Change Received From                      public in accordance with the                         the Exchange’s Office of the Secretary,
                                                Members, Participants, or Others                        provisions of 5 U.S.C. 552, will be                   and at the Commission’s Public
                                                  No written comments were solicited                    available for Web site viewing and                    Reference Room.
                                                or received with respect to the proposed                printing in the Commission’s Public
                                                                                                        Reference Room, 100 F Street NE.,                     II. Self-Regulatory Organization’s
                                                rule change.
                                                                                                        Washington, DC 20549, on official                     Statement of the Purpose of, and
                                                III. Date of Effectiveness of the                       business days between the hours of                    Statutory Basis for, the Proposed Rule
                                                Proposed Rule Change and Timing for                     10:00 a.m. and 3:00 p.m. Copies of the                Change
                                                Commission Action                                       filing also will be available for                       In its filing with the Commission, the
                                                   Within 45 days of the date of                        inspection and copying at the principal               Exchange included statements
                                                publication of this notice in the Federal               office of the Exchange. All comments                  concerning the purpose of and basis for
                                                Register or within such longer period (i)               received will be posted without change;               the proposed rule change and discussed
                                                                                                        the Commission does not edit personal
sradovich on DSK3GMQ082PROD with NOTICES




                                                as the Commission may designate up to                                                                         any comments it received on the
                                                90 days of such date if it finds such                   identifying information from                          proposed rule change. The text of these
                                                longer period to be appropriate and                     submissions. You should submit only                   statements may be examined at the
                                                publishes its reasons for so finding or                 information that you wish to make                     places specified in Item IV below. The
                                                (ii) as to which the self-regulatory                    available publicly. All submissions
                                                                                                        should refer to File Number SR–CHX–                     17 17 CFR 200.30–3(a)(12).
                                                  15 See supra note 10.                                 2017–06, and should be submitted on or                  1 15 U.S.C. 78s(b)(1).
                                                  16 See supra note 9.                                  before May 12, 2017.                                    2 17 CFR 240.19b–4.




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                                                                                 Federal Register / Vol. 82, No. 76 / Friday, April 21, 2017 / Notices                                          18803

                                                Exchange has prepared summaries, set                    Third-Party Device, for Floor Broker                    By way of example, if a TPH firm
                                                forth in sections A, B, and C below, of                 Users accessing the BBO data feed on                  accesses the BBO data feed through 14
                                                the most significant aspects of such                    the Exchange floor.4 An ‘‘Approved                    Approved Third-Party Devices, said
                                                statements.                                             Third-Party Device’’ means any                        TPH firm would currently be assessed
                                                                                                        computer, workstation or other item of                Floor Broker User fees of $1400 per
                                                A. Self-Regulatory Organization’s
                                                                                                        equipment, fixed or portable, that                    month (14 Approved Third-Party
                                                Statement of the Purpose of, and the
                                                                                                        receives, accesses and/or displays data               Devices × $100 per Approved Third-
                                                Statutory Basis for, the Proposed Rule
                                                                                                        in visual, audible or other form that has             Party Device = $1400). Under the
                                                Change
                                                                                                        been provided by a third-party and that               proposed cap, the same TPH firm
                                                1. Purpose                                              has been approved, by CBOE, for use on                accessing the BBO data feed through 14
                                                   The Exchange proposes to make a                      the CBOE trading floor. A ‘‘Floor Broker              Approved Third-Party Devices would be
                                                number of changes to the Fees Schedule                  User’’ is a person or entity registered               assessed Floor Broker User fees of $1000
                                                of the Exchange’s affiliate Market Data                 with CBOE as a floor broker pursuant to               per month (14 Approved Third-Party
                                                Express, LLC (‘‘MDX’’). The purpose of                  CBOE Rules.                                           Devices × $100 per Approved Third-
                                                the proposed rule change is to amend                       Floor Brokers use the BBO Data Feed                Party Device (subject to a monthly cap
                                                fees for the Best Bid and Offer (‘‘BBO’’)               primarily to comply with customer                     of $1000 per TPH firm) = $1000).
                                                data feed. This data feed is made                       priority obligations, such as those                   Additional MDX Fee Schedule Updates
                                                available by MDX.                                       outlined in CBOE Rule 6.45 (as
                                                                                                        mentioned above, the BBO data                            The Exchange is proposing a number
                                                BBO Data Feed                                           includes customer contracts at the                    of additional updates to the MDX fee
                                                   The BBO Data Feed is a real-time data                BBO). Floor Brokers who receive the                   schedule to clarify certain items as they
                                                feed that includes the following                        BBO data feed via Approved Third Party                relate to Floor Broker User fees or User
                                                information: (i) Outstanding quotes and                 Device are not considered ‘‘Customers’’               fees for Display Only Users. First, the
                                                standing orders at the best available                   of MDX to whom the BBO Data Fee                       Exchange is specifying that a Floor
                                                price level on each side of the market;                 applies (unless the Floor Broker has a                Broker User, as defined below, is not a
                                                (ii) executed trades time, size, and price;             separate market data agreement in place               Customer unless it has a market data
                                                (iii) totals of customer versus non-                    with MDX) and accordingly are not                     agreement in place with MDX. In
                                                customer contracts at the BBO; (iv) all-                charged the BBO Data Fee. Additionally,               addition, the Exchange is changing the
                                                or-none contingency orders priced                       a third-party vendor of an Approved                   name of ‘‘User fees’’ payable for external
                                                better than or equal to the BBO; (v)                    Third-Party Device is not a Customer                  Display Only Service Users to ‘‘Display
                                                expected opening price and expected                     unless it has a market data agreement in              Only User fees’’ in order to reduce
                                                opening size; (vi) end-of-day summaries                 place with MDX.                                       confusion with the BBO Data fee or
                                                by product, including open, high, low,                     In addition to Floor Broker User Fees,             Floor Broker User fees. Finally, the
                                                and closing price during the trading                    the Exchange assesses User fees payable               Exchange is deleting language on the
                                                session; (vi) recap messages any time                   for external Display Only Service users               MDX schedule stating that ‘‘Floor
                                                                                                        (Devices or user IDs of Display Only                  Broker Users may directly interact with
                                                there is a change in the open, high, low
                                                                                                        Service users who receive data from a                 the CBOE Hybrid Order Handling
                                                or last sale price of a listed option; (vii)
                                                                                                        Customer and are not employees or                     System and view and manipulate data
                                                Complex Order Book (‘‘COB’’)
                                                                                                        natural person independent contractors                using their Approved Third-Party
                                                information; and (viii) product IDs and
                                                                                                        of the Customer, the Customer’s                       Devices, but not save, copy, export or
                                                codes for all listed options contracts.
                                                                                                        affiliates or an authorized service                   transfer the data or any results of a
                                                The quote and last sale data contained
                                                                                                        facilitator). For the purpose of Display              manipulation to any other computer
                                                in the BBO data feed is identical to the
                                                                                                        Only Service users, a ‘‘Device’’ means                hardware, software or media, except for
                                                data sent to the Options Price Reporting
                                                                                                        any computer, workstation or other item               printing it to paper or other non-
                                                Authority for redistribution to the
                                                                                                        of equipment, fixed or portable, that                 magnetic media’’. The Exchange
                                                public.
                                                                                                        receives, accesses and/or displays data               believes that, as outlined above, ‘‘Floor
                                                Background                                              in visual, audible or other form.                     Broker Users’’ and ‘‘Approved Third-
                                                   Fees for the BBO data feed are payable                                                                     Party Devices’’ are adequately defined
                                                by all ‘‘Customers.’’ A ‘‘Customer’’ is                 Fee Cap                                               elsewhere in the MDX fee schedule. The
                                                any person, company or other entity                        The Exchange is proposing Floor                    Exchange does not believe the deleted
                                                that, pursuant to a market data                         Broker User fees be subject to a monthly              language is necessary to further clarify
                                                agreement with MDX, is entitled to                      cap of $1000 per Trading Permit Holder                or limit what a Floor Broker User may
                                                receive data, either directly from MDX                  (‘‘TPH’’) firm. The cap will limit the                or may not do with the BBO data it
                                                or through an authorized redistributor                  amount of Floor Broker User fees a TPH                receives via Approved Third-Party
                                                (i.e., a Customer or an extranet service                firm will pay in a calendar month to                  Device.
                                                provider), whether that data is                         $1000 in the event said TPH firm                      Display Only User and Floor Broker
                                                distributed externally or used                          accesses the BBO data feed through                    User Fee Reporting
                                                internally.3 In addition to the BBO Data                more than 10 Approved Third-Party
                                                                                                                                                                In addition to the clarifications above,
                                                Fee assessed to Customers, the                          Devices. As Floor Broker Users are using
                                                                                                                                                              the Exchange is adding language to the
                                                Exchange assesses reduced ‘‘user fees’’                 the BBO data primarily to meet their
                                                                                                                                                              MDX schedule to explain the reporting
                                                for entities who access BBO data                        priority obligations (and not for
                                                                                                                                                              process used to determine applicable
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                                                through a Display Only Service or as a                  proprietary trading purposes), the
                                                                                                                                                              Display Only User fees and Floor Broker
                                                Floor Broker User.                                      Exchange believes it is appropriate to
                                                                                                                                                              User fees. With regard to the Display
                                                   In March 2017, the Exchange adopted                  limit the amount of Floor Broker User
                                                                                                                                                              Only User fees, the proposed language
                                                a fee of $100 per month, per Approved                   fees to be assessed to a TPH firm.
                                                                                                                                                              states, ‘‘Customers who distribute BBO
                                                   3 The MDX fee schedule for CBOE data is located        4 See Securities Exchange Act Release No. 80286     Data to external users via a Display Only
                                                at https://www.cboe.org/MDX/CSM/                        (March 21, 2017), 82 FR 15247 (March 27, 2015)        service must report to MDX the number
                                                OBOOKMain.aspx.                                         (SR–CBOE–2017–022).                                   of authorized external devices that


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                                                18804                             Federal Register / Vol. 82, No. 76 / Friday, April 21, 2017 / Notices

                                                receive BBO data from the Customer                          The Exchange believes the additional                  change, the Commission summarily may
                                                during a calendar month within 15 days                   updates to the MDX fee schedule related                  temporarily suspend such rule change if
                                                after such month in the manner and                       to further defining Floor Broker users                   it appears to the Commission that such
                                                format specified by MDX from time to                     and the reporting obligations of                         action is necessary or appropriate in the
                                                time to determine applicable fees.’’ With                Customers and third-party vendors of                     public interest, for the protection of
                                                regard to the Floor Broker User fees, the                Approved Third Party Devices are                         investors, or otherwise in furtherance of
                                                proposed language states, ‘‘Third-party                  designed to add clarity and reduce                       the purposes of the Act. If the
                                                vendors who distribute BBO Data to                       confusion related to the BBO Data Feed                   Commission takes such action, the
                                                Floor Broker Users via Approved Third-                   and will therefore lead to the equitable                 Commission will institute proceedings
                                                Party Devices must report to MDX the                     allocation of reasonable dues, fees, and                 to determine whether the proposed rule
                                                number of Approved Third-Party                           other charges among its TPHs and other                   change should be approved or
                                                Devices that receive BBO data from such                  persons using its facilities.                            disapproved.
                                                third party vendor during a calendar
                                                                                                         B. Self-Regulatory Organization’s                        IV. Solicitation of Comments
                                                month within 15 days after such month
                                                in the manner and format specified by                    Statement on Burden on Competition                         Interested persons are invited to
                                                MDX from time to time to determine                         The Exchange does not believe that                     submit written data, views, and
                                                applicable fees.’’ Including the reporting               the proposed rule change will impose                     arguments concerning the foregoing,
                                                processes used to determine applicable                   any burden on competition that is not                    including whether the proposed rule
                                                Display Only User fees and Floor Broker                  necessary or appropriate in furtherance                  change is consistent with the Act.
                                                User fees on the MDX fee schedule will                   of the purposes of the Act. The                          Comments may be submitted by any of
                                                provide greater clarity to both                          proposed fee cap on Floor Broker User                    the following methods:
                                                Customers who provide Display Only                       Fees will not have an impact on                          Electronic Comments
                                                Services to users and third-party                        intramarket competition as it will apply
                                                vendors of Approved Third-Party                          to all TPH firms equally who use more                      • Use the Commission’s Internet
                                                Devices. Furthermore, including the                      than 10 Approved Third-Party Devices.                    comment form (http://www.sec.gov/
                                                reporting processes will ensure the                      The other clarifications made to the fee                 rules/sro.shtml); or
                                                Exchange accurately charges fees for                                                                                • Send an email to rule-comments@
                                                                                                         schedule related to further defining
                                                these services.                                                                                                   sec.gov. Please include File No. SR–
                                                                                                         Floor Broker users and the reporting
                                                                                                                                                                  CBOE–2017–030 on the subject line.
                                                2. Statutory Basis                                       obligations of Customers and third-party
                                                                                                         vendors of Approved Third Party                          Paper Comments
                                                   The Exchange believes the proposed                    Devices will not have an impact on
                                                rule change is consistent with the                                                                                   • Send paper comments in triplicate
                                                                                                         intramarket competition as they are                      to Secretary, Securities and Exchange
                                                Securities Exchange Act of 1934 (the                     non-substantive and only designed to
                                                ‘‘Act’’) and the rules and regulations                                                                            Commission, 100 F Street NE.,
                                                                                                         add clarity to the fee schedule and                      Washington, DC 20549–1090.
                                                thereunder applicable to the Exchange                    reduce confusion among TPHs and
                                                and, in particular, the requirements of                                                                           All submissions should refer to File No.
                                                                                                         other persons accessing the BBO data                     SR–CBOE–2017–030. This file number
                                                Section 6(b) of the Act.5 Specifically,                  feed.
                                                the Exchange believes the proposed rule                                                                           should be included on the subject line
                                                                                                           Furthermore, the Exchange does not
                                                change is consistent with Section 6(b)(4)                                                                         if email is used. To help the
                                                                                                         believe that the proposed fee cap will
                                                of the Act,6 which requires that                                                                                  Commission process and review your
                                                                                                         cause any unnecessary burden on
                                                Exchange rules provide for the equitable                                                                          comments more efficiently, please use
                                                                                                         intermarket competition because the
                                                allocation of reasonable dues, fees, and                                                                          only one method. The Commission will
                                                                                                         proposed change only affects trading on
                                                other charges among its Trading Permit                                                                            post all comments on the Commission’s
                                                                                                         the Exchange’s trading floor. To the
                                                Holders and other persons using its                                                                               Internet Web site (http://www.sec.gov/
                                                                                                         extent that the proposed changes make
                                                facilities. The Exchange also believes                                                                            rules/sro.shtml). Copies of the
                                                                                                         the Exchange a more attractive
                                                the proposed rule change is consistent                                                                            submission, all subsequent
                                                                                                         marketplace for market participants at
                                                with the Section 6(b)(5) 7 requirement                                                                            amendments, all written statements
                                                                                                         other exchanges, such market
                                                that the rules of an exchange not be                                                                              with respect to the proposed rule
                                                                                                         participants are welcome to become
                                                designed to permit unfair                                                                                         change that are filed with the
                                                                                                         CBOE market participants.
                                                discrimination between customers,                                                                                 Commission, and all written
                                                issuers, brokers, or dealers.                            C. Self-Regulatory Organization’s                        communications relating to the
                                                   The Exchange believes the proposed                    Statement on Comments on the                             proposed rule change between the
                                                Floor Broker User fee cap is equitable                   Proposed Rule Change Received From                       Commission and any person, other than
                                                and not unfairly discriminatory because                  Members, Participants, or Others                         those that may be withheld from the
                                                it would apply equally to all TPH firms                    The Exchange neither solicited nor                     public in accordance with the
                                                using Approved Third-Party Devices on                    received comments on the proposed                        provisions of 5 U.S.C. 552, will be
                                                the Exchange trading floor.                              rule change.                                             available for Web site viewing and
                                                Furthermore, the Exchange believes it is                                                                          printing in the Commission’s Public
                                                reasonable, equitable and not unfairly                   III. Date of Effectiveness of the                        Reference Room, 100 F Street NE.,
                                                discriminatory to cap Floor Broker User                  Proposed Rule Change and Timing for                      Washington, DC 20549, on official
                                                Fees because Floor Broker Users                          Commission Action                                        business days between the hours of
                                                                                                                                                                  10:00 a.m. and 3:00 p.m. Copies of the
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                                                generally use the data for the limited                      The foregoing rule change has become
                                                purpose of meeting their order priority                  effective pursuant to Section 19(b)(3)(A)                filing also will be available for
                                                obligations (as opposed to using the data                of the Act 8 and paragraph (f) of Rule                   inspection and copying at the principal
                                                for proprietary trading activity).                       19b–4 9 thereunder. At any time within                   office of the Exchange. All comments
                                                                                                         60 days of the filing of the proposed rule               received will be posted without change;
                                                  5 15 U.S.C. 78f(b).                                                                                             the Commission does not edit personal
                                                  6 15 U.S.C. 78f(b)(4).                                   8 15   U.S.C. 78s(b)(3)(A).                            identifying information from
                                                  7 15 U.S.C. 78f(b)(5).                                   9 17   CFR 240.19b–4(f).                               submissions. You should submit only


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                                                                                   Federal Register / Vol. 82, No. 76 / Friday, April 21, 2017 / Notices                                              18805

                                                information that you wish to make                                                                      Percent     $3,500 and $150,000) set aside for small
                                                available publicly. All submissions                                                                                business, service-disabled veteran-
                                                should refer to File No. SR–CBOE–                         Businesses and Small Agricultural                        owned small business (SDVOSB),
                                                2017–030, and should be submitted on                        Cooperatives Without Credit                            women-owned small business (WOSB),
                                                or before May 12, 2017.                                     Available Elsewhere ..................         3.125   economically disadvantaged women-
                                                                                                          Non-Profit Organizations Without                         owned small business (EDWOSB), or
                                                  For the Commission, by the Division of                    Credit Available Elsewhere .......             2.625
                                                Trading and Markets, pursuant to delegated                                                                         participants in the SBA’s 8(a) Business
                                                authority.10                                                                                                       Development (BD) program provide the
                                                                                                            The number assigned to this disaster
                                                Brent J. Fields,                                                                                                   product of a small business
                                                                                                          for economic injury is 151060.
                                                Secretary.                                                                                                         manufacturer or processor, if the
                                                                                                            The States which received an EIDL
                                                                                                                                                                   recipient is other than the actual
                                                [FR Doc. 2017–08059 Filed 4–20–17; 8:45 am]               Declaration # are Oregon, Washington.
                                                                                                                                                                   manufacturer or processor of the
                                                BILLING CODE 8011–01–P                                    (Catalog of Federal Domestic Assistance                  product. This requirement is commonly
                                                                                                          Number 59002)                                            referred to as the Nonmanufacturer Rule
                                                                                                            Dated: April 11, 2017.                                 (NMR). 13 CFR 121.406(b). Sections
                                                SMALL BUSINESS ADMINISTRATION                             Linda E. McMahon,                                        8(a)(17)(B)(iv)(II) and 46(a)(4)(B) of the
                                                                                                          Administrator.                                           Act authorize SBA to waive the NMR for
                                                                                                          [FR Doc. 2017–07792 Filed 4–20–17; 8:45 am]
                                                                                                                                                                   a ‘‘class of products’’ for which there are
                                                [Disaster Declaration #15106]
                                                                                                                                                                   no small business manufacturers or
                                                                                                          BILLING CODE 8025–01–P
                                                Oregon Disaster #OR–00085                                                                                          processors available to participate in the
                                                Declaration of Economic Injury                                                                                     Federal market.
                                                                                                          SMALL BUSINESS ADMINISTRATION                               As implemented in SBA’s regulations
                                                AGENCY: U.S. Small Business                                                                                        at 13 CFR 121.1204(a)(7), SBA will
                                                Administration.                                           Small Business Size Standards:                           periodically review existing class
                                                ACTION: Notice.                                           Termination of Nonmanufacturer Rule                      waivers to the NMR in order to
                                                                                                          Class Waiver                                             determine whether small business
                                                SUMMARY:   This is a notice of an                                                                                  manufacturers or processors have
                                                Economic Injury Disaster Loan (EIDL)                      AGENCY:   U.S. Small Business                            become available to participate in the
                                                declaration for the State of Oregon,                      Administration.                                          Federal market. Upon receipt of
                                                dated 04/11/2017.                                         ACTION: Notice of termination of the                     information that such a small business
                                                  Incident: Severe Winter Storm.                          class waiver to the nonmanufacturer                      manufacturer or processor exists, the
                                                  Incident Period: 01/08/2017 through                     rule for rubber gloves.                                  SBA will announce its intent to
                                                01/20/2017.                                                                                                        terminate the NMR waiver for a class of
                                                                                                          SUMMARY:   The U.S. Small Business                       products. 13 CFR 121.1204(a)(7)(ii).
                                                DATES: Effective 04/11/2017.
                                                                                                          Administration (SBA) is terminating a                    Unless public comment reveals that no
                                                  EIDL Loan Application Deadline Date:
                                                                                                          class waiver of the Nonmanufacturer                      small business manufacturer exists for
                                                01/11/2018.
                                                                                                          Rule (NMR) for ‘‘Gloves, rubber (e.g.,                   the class of products in question, SBA
                                                ADDRESSES: Submit completed loan                          electrician’s, examination, household-                   will publish a final Notice of
                                                applications to: U.S. Small Business                      type, surgeon’s), manufacturing’’ based                  Termination in the Federal Register. 13
                                                Administration, Processing and                            on SBA’s discovery of small business                     CFR 121.1204(a)(7)(iii).
                                                Disbursement Center, 14925 Kingsport                      manufacturers. Terminating this waiver                      On October 27, 2016, SBA received a
                                                Road, Fort Worth, TX 76155.                               will require recipients of Federal                       request to terminate the current class
                                                FOR FURTHER INFORMATION CONTACT: A                        contracts (except those valued between                   waiver to the NMR for ‘‘Gloves, rubber
                                                Escobar, Office of Disaster Assistance,                   $3,500 and $150,000) set aside for small                 (e.g., electrician’s, examination,
                                                U.S. Small Business Administration,                       business, service-disabled veteran-                      household-type, surgeon’s),
                                                409 3rd Street SW., Suite 6050,                           owned small business (SDVOSB),                           manufacturing’’ under North American
                                                Washington, DC 20416. Telephone:                          women-owned small business (WOSB),                       Industry Classification System (NAICS)
                                                (202) 205–6098.                                           economically disadvantaged women-                        code 339113 (Surgical Appliance and
                                                SUPPLEMENTARY INFORMATION: Notice is                      owned small business (EDWOSB), or                        Supplies Manufacturing), Product
                                                hereby given that as a result of the                      participants in the SBA’s 8(a) Business                  Service Code (PSC) 9320 (Rubber
                                                Administrator’s EIDL declaration,                         Development (BD) program, to provide                     Fabricated Materials). The requester
                                                applications for economic injury                          the products of small business                           provided evidence that there is a small
                                                disaster loans may be filed at the                        manufacturers or processors on such                      business manufacturer that has
                                                address listed above or other locally                     contracts for rubber gloves, unless a                    submitted offers on solicitations for
                                                announced locations.                                      Federal Contracting Officer obtains an                   government contracts within the last 24
                                                  The following areas have been                           individual waiver to the NMR.                            months. SBA issued a Federal Register
                                                determined to be adversely affected by                    DATES: This action is effective May 8,                   notice of its intent to terminate the class
                                                the disaster:                                             2017.                                                    waiver on March 14, 2017, 82 FR 13704.
                                                Primary Counties: Clackamas, Hood                                                                                  In response to this notice, SBA did not
                                                                                                          FOR FURTHER INFORMATION CONTACT:                         receive any comments from the public.
                                                  River, Multnomah                                        Roman Ivey, Program Analyst, by                             As a result of this NMR class waiver
                                                Contiguous Counties:                                      telephone at 202–401–1420; or by email                   termination, under a small business set-
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                                                  Oregon: Columbia, Marion, Wasco,                        at roman.ivey@sba.gov.                                   aside, small business dealers are no
                                                    Washington, Yamhill
                                                                                                          SUPPLEMENTARY INFORMATION: Section                       longer able to provide the product of an
                                                  Washington: Clark, Klickitat,
                                                                                                          8(a)(17) and 46 of the Small Business                    other than small manufacturer on
                                                    Skamania
                                                                                                          Act (Act), 15 U.S.C. 637(a)(17) and 657,                 contracts of those types for ‘‘Gloves,
                                                   The Interest Rates are:                                and SBA’s implementing regulations                       rubber (e.g., electrician’s, examination,
                                                                                                          require that recipients of Federal supply                household-type, surgeon’s),
                                                  10 17   CFR 200.30–3(a)(12).                            contracts (except those valued between                   manufacturing,’’ unless a Federal


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Document Created: 2017-04-21 01:19:00
Document Modified: 2017-04-21 01:19:00
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation82 FR 18802 

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