82_FR_53752 82 FR 53532 - Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Its Fees for Physical Ports

82 FR 53532 - Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Its Fees for Physical Ports

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 220 (November 16, 2017)

Page Range53532-53534
FR Document2017-24782

Federal Register, Volume 82 Issue 220 (Thursday, November 16, 2017)
[Federal Register Volume 82, Number 220 (Thursday, November 16, 2017)]
[Notices]
[Pages 53532-53534]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-24782]


=======================================================================
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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82050; File No. SR-BatsBZX-2017-75]


Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Modify 
Its Fees for Physical Ports

November 9, 2017.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on November 2, 2017, Cboe BZX Exchange, Inc. (``BZX'' or the 
``Exchange'') (formerly known as Bats BZX Exchange, Inc.) filed with 
the Securities and Exchange Commission (``Commission'') the proposed 
rule change as described in Items I, II, and III below, which Items 
have been prepared by the Exchange. The Exchange has designated the 
proposed rule change as one establishing or changing a member due, fee, 
or other charge imposed by the Exchange under Section 19(b)(3)(A)(ii) 
of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ which renders the 
proposed rule change effective upon filing with the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange filed a proposal to amend the fee schedule applicable 
to Members \5\ and non-Members of the Exchange pursuant to BZX Rules 
15.1(a) and (c).
---------------------------------------------------------------------------

    \5\ The term ``Member'' is defined as ``any registered broker or 
dealer that has been admitted to membership in the Exchange.'' See 
Exchange Rule 1.5(n).
---------------------------------------------------------------------------

    The text of the proposed rule change is available at the Exchange's 
Web site at www.markets.cboe.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

[[Page 53533]]

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 parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    A physical port is utilized by a Member or non-Member to connect to 
the Exchange at the data centers where the Exchange's servers are 
located. The Exchange currently maintains a presence in two third-party 
data centers: (i) The primary data center where the Exchange's business 
is primarily conducted on a daily basis, and (ii) a secondary data 
center, which is predominantly maintained for business continuity 
purposes. The Exchange currently assesses the following physical 
connectivity fees for Members and non-Members on a monthly basis: 
$2,000 per physical port that connects to the System \6\ via 1 gigabyte 
circuit; and $6,000 per physical port that connects to the System via 
10 gigabyte circuit. The Exchange proposes to increase the fee per 
physical port that connects to the System via a 10 gigabyte circuit 
from $6,000 per month to $7,000 per month in order to cover its 
increased infrastructure costs associated with establishing physical 
ports to connect to the Exchange's Systems and enable it to continue to 
maintain and improve its market technology and services.\7\ The 
Exchange does not propose to amend the fee for a 1 gigabyte circuit, 
which will remain $2,000 per month. The Exchange proposes to implement 
this amendment to its fee schedule on January 2, 2018.
---------------------------------------------------------------------------

    \6\ The term ``System'' is defined as ``the electronic 
communications and trading facility designated by the Board through 
which securities orders of Users are consolidated for ranking, 
execution and, when applicable, routing away.'' See Exchange Rule 
1.5(aa).
    \7\ The Exchange also proposes two minor technical amendments to 
this section of its fee schedule. First is to change the word 
``Connection'' to ``Connectivity'' in the section's title. The 
second is to change references to ``G'' for gigabyte to ``Gb''.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 of the Act,\8\ in general, and 
furthers the objectives of Section 6(b)(4),\9\ in particular, as it is 
designed to provide for the equitable allocation of reasonable dues, 
fees and other charges among its Members and other persons using its 
facilities. The Exchange also notes that it operates in a highly-
competitive market in which market participants can readily direct 
order flow to competing venues if they deem fee levels at a particular 
venue to be excessive. The proposed rule change reflects a competitive 
pricing structure designed to incent market participants to direct 
their order flow to the Exchange.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f.
    \9\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rate is equitable and non-
discriminatory in that it applies uniformly to all Members. Members and 
non-Members will continue to choose whether they want more than one 
physical port and choose the method of connectivity based on their 
specific needs. All Members that voluntarily select various service 
options will be charged the same amount for the same services. As is 
true of all physical connectivity, all Members and non-Members have the 
option to select any connectivity option, and there is no 
differentiation with regard to the fees charged for the service.
    The Exchange believes that the proposal represents an equitable 
allocation of reasonable dues, fees, and other charges as its fees for 
physical connectivity are reasonably constrained by competitive 
alternatives. If a particular exchange charges excessive fees for 
connectivity, affected Members and non-Members may opt to terminate 
their connectivity arrangements with that exchange, and adopt a 
possible range of alternative strategies, including routing to the 
applicable exchange through another participant or market center or 
taking that exchange's data indirectly. Accordingly, if the Exchange 
charges excessive fees, it would stand to lose not only connectivity 
revenues but also revenues associated with the execution of orders 
routed to it, and, to the extent applicable, market data revenues. The 
Exchange believes that this competitive dynamic imposes powerful 
restraints on the ability of any exchange to charge unreasonable fees 
for connectivity.
    Furthermore, the proposed rule change is also an equitable 
allocation of reasonable dues, fees, and other charges as the Exchange 
believes that the increased fees obtained will enable it to cover its 
increased infrastructure costs associated with establishing physical 
ports to connect to the Exchange's Systems. The additional revenue from 
the increased fee will also enable the Exchange to continue to maintain 
and improve its market technology and services.
    Lastly, the Exchange believes the fees and credits remain 
competitive with those charged by other venues and therefore continue 
to be reasonable and equitably allocated to Members. For instance, the 
proposed fees for a 10 gigabyte circuit of $7,000 per month is less 
than analogous fees charged by the Nasdaq Stock Market LLC (``Nasdaq'') 
and NYSE Arca, Inc. (``Arca''), which range from $10,000-$15,000 per 
month for 10 gigabyte circuits.\10\
---------------------------------------------------------------------------

    \10\ See Nasdaq Rule 7034(b) and the NYSE Arca fee schedule 
available at https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf (dated October 11, 2017).
---------------------------------------------------------------------------

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. As discussed above, the 
Exchange believes that fees for connectivity are constrained by the 
robust competition for order flow among exchanges and non-exchange 
markets. The Exchange does not believe that the proposed changes 
represent a significant departure from previous pricing offered by the 
Exchange or pricing offered by the Exchange's competitors. 
Additionally, Members may opt to disfavor the Exchange's pricing if 
they believe that alternatives offer them better value. Further, 
excessive fees for connectivity would serve to impair an exchange's 
ability to compete for order flow rather than burdening competition.

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

    The Exchange has not solicited, and does not intend to solicit, 
comments on this proposed rule change. The Exchange has not received 
any unsolicited written comments from Members or other interested 
parties.

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 \11\ and paragraph (f) of Rule 19b-4 
thereunder.\12\ At any time within 60 days of the filing of the 
proposed rule change, the Commission summarily may temporarily suspend 
such rule change if it appears to the Commission that such action is 
necessary or appropriate in the public interest, for the protection of

[[Page 53534]]

investors, or otherwise in furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 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 Number SR-BatsBZX-2017-75 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-BatsBZX-2017-75. 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 such 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-BatsBZX-2017-75, and should 
be submitted on or before December 7, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-24782 Filed 11-15-17; 8:45 am]
 BILLING CODE 8011-01-P



                                                    53532                     Federal Register / Vol. 82, No. 220 / Thursday, November 16, 2017 / Notices

                                                    671), as amended by the Antarctic                       Agreements in the Mail Classification                 SECURITIES AND EXCHANGE
                                                    Science, Tourism and Conservation Act                   Schedule’s Competitive Products List.                 COMMISSION
                                                    of 1996, has developed regulations for
                                                    the establishment of a permit system for                DATES: Date of notice required under 39               [Release No. 34–82050; File No. SR–
                                                                                                            U.S.C. 3642(d)(1): November 16, 2017.                 BatsBZX–2017–75]
                                                    various activities in Antarctica and
                                                    designation of certain animals and                      FOR FURTHER INFORMATION CONTACT:                      Self-Regulatory Organizations; Cboe
                                                    certain geographic areas a requiring                    Elizabeth A. Reed, 202–268–3179.                      BZX Exchange, Inc.; Notice of Filing
                                                    special protection. The regulations                                                                           and Immediate Effectiveness of
                                                    establish such a permit system to                       SUPPLEMENTARY INFORMATION:      The
                                                                                                                                                                  Proposed Rule Change To Modify Its
                                                    designate Antarctic Specially Protected                 United States Postal Service® hereby                  Fees for Physical Ports
                                                    Areas.                                                  gives notice that, pursuant to 39 U.S.C.
                                                                                                            3642 and 3632(b)(3), on November 9,                   November 9, 2017.
                                                    Application Details                                     2017, it filed with the Postal Regulatory                Pursuant to Section 19(b)(1) of the
                                                    Permit Application: 2018–026                            Commission a USPS Request to Add                      Securities Exchange Act of 1934
                                                                                                            Priority Mail Contract 374 to                         (‘‘Act’’) 1 and Rule 19b–4 thereunder,2
                                                    1. Applicant Kasey Stewart, 1241                                                                              notice is hereby given that on November
                                                        Johnson Ave. #246, San Luis                         Competitive Product List. Documents
                                                                                                            are available at www.prc.gov, Docket                  2, 2017, Cboe BZX Exchange, Inc.
                                                        Obispo, CA 93401.                                                                                         (‘‘BZX’’ or the ‘‘Exchange’’) (formerly
                                                                                                            Nos. MC2018–23, CP2018–45.
                                                    Activity for Which Permit Is Requested                                                                        known as Bats BZX Exchange, Inc.) filed
                                                                                                            Elizabeth A. Reed,                                    with the Securities and Exchange
                                                      Waste Management. The applicant
                                                                                                            Attorney, Corporate and Postal Business Law.          Commission (‘‘Commission’’) the
                                                    proposes to operate a small, battery-
                                                                                                            [FR Doc. 2017–24764 Filed 11–15–17; 8:45 am]          proposed rule change as described in
                                                    operated remotely piloted aircraft
                                                                                                                                                                  Items I, II, and III below, which Items
                                                    system (RPAS) consisting, in part, of a                 BILLING CODE 7710–12–P
                                                                                                                                                                  have been prepared by the Exchange.
                                                    quadcopter equipped with a camera to
                                                                                                                                                                  The Exchange has designated the
                                                    collect footage for commercial purposes.
                                                                                                            POSTAL SERVICE                                        proposed rule change as one
                                                    The quadcopter would not be flown
                                                                                                                                                                  establishing or changing a member due,
                                                    over concentrations of birds or
                                                                                                            Product Change—Priority Mail                          fee, or other charge imposed by the
                                                    mammals, or over Antarctic Specially
                                                                                                            Negotiated Service Agreement                          Exchange under Section 19(b)(3)(A)(ii)
                                                    Protected Areas or Historic Sites and
                                                                                                                                                                  of the Act 3 and Rule 19b–4(f)(2)
                                                    Monuments. The RPAS would only be
                                                                                                            AGENCY:    Postal ServiceTM.                          thereunder,4 which renders the
                                                    operated by a pilot with adequate
                                                                                                                                                                  proposed rule change effective upon
                                                    experience. Several measures would be                   ACTION:   Notice.                                     filing with the Commission. The
                                                    taken to prevent against loss of the
                                                                                                                                                                  Commission is publishing this notice to
                                                    quadcopter including painting the them                  SUMMARY:    The Postal Service gives                  solicit comments on the proposed rule
                                                    a highly visible color; only flying when                notice of filing a request with the Postal            change from interested persons.
                                                    the wind is calm; flying for only 15                    Regulatory Commission to add a
                                                    minutes at a time to maintain adequate                  domestic shipping services contract to                I. Self-Regulatory Organization’s
                                                    battery charge; having a flotation device               the list of Negotiated Service                        Statement of the Terms of Substance of
                                                    for operations over water, and an ‘‘auto                                                                      the Proposed Rule Change
                                                                                                            Agreements in the Mail Classification
                                                    go home’’ feature in case of loss of                                                                             The Exchange filed a proposal to
                                                                                                            Schedule’s Competitive Products List.
                                                    control link or low battery; having an                                                                        amend the fee schedule applicable to
                                                    observer on the lookout for wildlife,                   DATES: Date of notice required under 39               Members 5 and non-Members of the
                                                    people, and other hazards; and ensuring                 U.S.C. 3642(d)(1): November 16, 2017.                 Exchange pursuant to BZX Rules 15.1(a)
                                                    that the separation between the operator                                                                      and (c).
                                                                                                            FOR FURTHER INFORMATION CONTACT:
                                                    and quadcopter does not exceed a                                                                                 The text of the proposed rule change
                                                    maximum distance of 300 meters.                         Elizabeth A. Reed, 202–268–3179.
                                                                                                                                                                  is available at the Exchange’s Web site
                                                      Location: Antarctic Peninsula region.                 SUPPLEMENTARY INFORMATION:      The                   at www.markets.cboe.com, at the
                                                      Dates: December 15–22, 2017.                          United States Postal Service® hereby                  principal office of the Exchange, and at
                                                    Nadene G. Kennedy,                                      gives notice that, pursuant to 39 U.S.C.              the Commission’s Public Reference
                                                    Polar Coordination Specialist, Office of Polar          3642 and 3632(b)(3), on November 9,                   Room.
                                                    Programs.                                               2017, it filed with the Postal Regulatory             II. Self-Regulatory Organization’s
                                                    [FR Doc. 2017–24808 Filed 11–15–17; 8:45 am]            Commission a USPS Request to Add                      Statement of the Purpose of, and
                                                    BILLING CODE 7555–01–P                                  Priority Mail Contract 373 to                         Statutory Basis for, the Proposed Rule
                                                                                                            Competitive Product List. Documents                   Change
                                                                                                            are available at www.prc.gov, Docket
                                                                                                                                                                     In its filing with the Commission, the
                                                    POSTAL SERVICE                                          Nos. MC2018–22, CP2018–44.
                                                                                                                                                                  Exchange included statements
                                                                                                            Elizabeth A. Reed,                                    concerning the purpose of and basis for
                                                    Product Change—Priority Mail
                                                                                                            Attorney, Corporate and Postal Business Law.          the proposed rule change and discussed
                                                    Negotiated Service Agreement
asabaliauskas on DSKBBXCHB2PROD with NOTICES




                                                                                                            [FR Doc. 2017–24763 Filed 11–15–17; 8:45 am]          any comments it received on the
                                                    AGENCY: Postal ServiceTM.                               BILLING CODE 7710–12–P                                  1 15 U.S.C. 78s(b)(1).
                                                    ACTION: Notice.
                                                                                                                                                                    2 17 CFR 240.19b–4.
                                                                                                                                                                    3 15 U.S.C. 78s(b)(3)(A)(ii).
                                                    SUMMARY:    The Postal Service gives
                                                                                                                                                                    4 17 CFR 240.19b–4(f)(2).
                                                    notice of filing a request with the Postal                                                                      5 The term ‘‘Member’’ is defined as ‘‘any
                                                    Regulatory Commission to add a                                                                                registered broker or dealer that has been admitted
                                                    domestic shipping services contract to                                                                        to membership in the Exchange.’’ See Exchange
                                                    the list of Negotiated Service                                                                                Rule 1.5(n).



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                                                                                Federal Register / Vol. 82, No. 220 / Thursday, November 16, 2017 / Notices                                                 53533

                                                    proposed rule change. The text of these                    other charges among its Members and                    Lastly, the Exchange believes the fees
                                                    statements may be examined at the                          other persons using its facilities. The              and credits remain competitive with
                                                    places specified in Item IV below. The                     Exchange also notes that it operates in              those charged by other venues and
                                                    Exchange has prepared summaries, set                       a highly-competitive market in which                 therefore continue to be reasonable and
                                                    forth in Sections A, B, and C below, of                    market participants can readily direct               equitably allocated to Members. For
                                                    the most significant parts of such                         order flow to competing venues if they               instance, the proposed fees for a 10
                                                    statements.                                                deem fee levels at a particular venue to             gigabyte circuit of $7,000 per month is
                                                    A. Self-Regulatory Organization’s                          be excessive. The proposed rule change               less than analogous fees charged by the
                                                    Statement of the Purpose of, and the                       reflects a competitive pricing structure             Nasdaq Stock Market LLC (‘‘Nasdaq’’)
                                                    Statutory Basis for, the Proposed Rule                     designed to incent market participants               and NYSE Arca, Inc. (‘‘Arca’’), which
                                                    Change                                                     to direct their order flow to the                    range from $10,000–$15,000 per month
                                                                                                               Exchange.                                            for 10 gigabyte circuits.10
                                                    1. Purpose                                                    The Exchange believes that the
                                                                                                                                                                    B. Self-Regulatory Organization’s
                                                       A physical port is utilized by a                        proposed rate is equitable and non-
                                                                                                                                                                    Statement on Burden on Competition
                                                    Member or non-Member to connect to                         discriminatory in that it applies
                                                    the Exchange at the data centers where                     uniformly to all Members. Members and                   The Exchange does not believe that
                                                    the Exchange’s servers are located. The                    non-Members will continue to choose                  the proposed rule change will impose
                                                    Exchange currently maintains a                             whether they want more than one                      any burden on competition not
                                                    presence in two third-party data centers:                  physical port and choose the method of               necessary or appropriate in furtherance
                                                    (i) The primary data center where the                      connectivity based on their specific                 of the purposes of the Act. As discussed
                                                    Exchange’s business is primarily                           needs. All Members that voluntarily                  above, the Exchange believes that fees
                                                    conducted on a daily basis, and (ii) a                     select various service options will be               for connectivity are constrained by the
                                                    secondary data center, which is                            charged the same amount for the same                 robust competition for order flow among
                                                    predominantly maintained for business                      services. As is true of all physical                 exchanges and non-exchange markets.
                                                    continuity purposes. The Exchange                          connectivity, all Members and non-                   The Exchange does not believe that the
                                                    currently assesses the following                           Members have the option to select any                proposed changes represent a significant
                                                    physical connectivity fees for Members                     connectivity option, and there is no                 departure from previous pricing offered
                                                    and non-Members on a monthly basis:                        differentiation with regard to the fees              by the Exchange or pricing offered by
                                                    $2,000 per physical port that connects                     charged for the service.                             the Exchange’s competitors.
                                                    to the System 6 via 1 gigabyte circuit;                       The Exchange believes that the                    Additionally, Members may opt to
                                                    and $6,000 per physical port that                          proposal represents an equitable                     disfavor the Exchange’s pricing if they
                                                    connects to the System via 10 gigabyte                     allocation of reasonable dues, fees, and             believe that alternatives offer them
                                                    circuit. The Exchange proposes to                          other charges as its fees for physical               better value. Further, excessive fees for
                                                    increase the fee per physical port that                    connectivity are reasonably constrained              connectivity would serve to impair an
                                                    connects to the System via a 10 gigabyte                   by competitive alternatives. If a                    exchange’s ability to compete for order
                                                    circuit from $6,000 per month to $7,000                    particular exchange charges excessive                flow rather than burdening competition.
                                                    per month in order to cover its                            fees for connectivity, affected Members
                                                    increased infrastructure costs associated                  and non-Members may opt to terminate                 C. Self-Regulatory Organization’s
                                                    with establishing physical ports to                        their connectivity arrangements with                 Statement on Comments on the
                                                    connect to the Exchange’s Systems and                      that exchange, and adopt a possible                  Proposed Rule Change Received From
                                                    enable it to continue to maintain and                      range of alternative strategies, including           Members, Participants, or Others
                                                    improve its market technology and                          routing to the applicable exchange
                                                    services.7 The Exchange does not                                                                                  The Exchange has not solicited, and
                                                                                                               through another participant or market
                                                    propose to amend the fee for a 1                                                                                does not intend to solicit, comments on
                                                                                                               center or taking that exchange’s data
                                                    gigabyte circuit, which will remain                                                                             this proposed rule change. The
                                                                                                               indirectly. Accordingly, if the Exchange
                                                    $2,000 per month. The Exchange                                                                                  Exchange has not received any
                                                                                                               charges excessive fees, it would stand to
                                                    proposes to implement this amendment                                                                            unsolicited written comments from
                                                                                                               lose not only connectivity revenues but
                                                    to its fee schedule on January 2, 2018.                                                                         Members or other interested parties.
                                                                                                               also revenues associated with the
                                                    2. Statutory Basis                                         execution of orders routed to it, and, to            III. Date of Effectiveness of the
                                                                                                               the extent applicable, market data                   Proposed Rule Change and Timing for
                                                       The Exchange believes that the
                                                                                                               revenues. The Exchange believes that                 Commission Action
                                                    proposed rule change is consistent with
                                                                                                               this competitive dynamic imposes
                                                    the objectives of Section 6 of the Act,8                                                                           The foregoing rule change has become
                                                                                                               powerful restraints on the ability of any
                                                    in general, and furthers the objectives of                                                                      effective pursuant to Section 19(b)(3)(A)
                                                                                                               exchange to charge unreasonable fees
                                                    Section 6(b)(4),9 in particular, as it is                                                                       of the Act 11 and paragraph (f) of Rule
                                                                                                               for connectivity.
                                                    designed to provide for the equitable                                                                           19b–4 thereunder.12 At any time within
                                                    allocation of reasonable dues, fees and                       Furthermore, the proposed rule
                                                                                                               change is also an equitable allocation of            60 days of the filing of the proposed rule
                                                       6 The term ‘‘System’’ is defined as ‘‘the electronic    reasonable dues, fees, and other charges             change, the Commission summarily may
                                                    communications and trading facility designated by          as the Exchange believes that the                    temporarily suspend such rule change if
                                                                                                                                                                    it appears to the Commission that such
asabaliauskas on DSKBBXCHB2PROD with NOTICES




                                                    the Board through which securities orders of Users         increased fees obtained will enable it to
                                                    are consolidated for ranking, execution and, when          cover its increased infrastructure costs             action is necessary or appropriate in the
                                                    applicable, routing away.’’ See Exchange Rule                                                                   public interest, for the protection of
                                                    1.5(aa).                                                   associated with establishing physical
                                                       7 The Exchange also proposes two minor                  ports to connect to the Exchange’s
                                                                                                                                                                      10 See Nasdaq Rule 7034(b) and the NYSE Arca
                                                    technical amendments to this section of its fee            Systems. The additional revenue from
                                                    schedule. First is to change the word ‘‘Connection’’                                                            fee schedule available at https://www.nyse.com/
                                                                                                               the increased fee will also enable the               publicdocs/nyse/markets/nyse-arca/NYSE_Arca_
                                                    to ‘‘Connectivity’’ in the section’s title. The second
                                                    is to change references to ‘‘G’’ for gigabyte to ‘‘Gb’’.   Exchange to continue to maintain and                 Marketplace_Fees.pdf (dated October 11, 2017).
                                                       8 15 U.S.C. 78f.                                        improve its market technology and                      11 15 U.S.C. 78s(b)(3)(A).
                                                       9 15 U.S.C. 78f(b)(4).                                  services.                                              12 17 CFR 240.19b–4(f).




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                                                    53534                     Federal Register / Vol. 82, No. 220 / Thursday, November 16, 2017 / Notices

                                                    investors, or otherwise in furtherance of                 For the Commission, by the Division of              II. Self-Regulatory Organization’s
                                                    the purposes of the Act.                                Trading and Markets, pursuant to delegated            Statement of the Purpose of, and
                                                                                                            authority.13                                          Statutory Basis for, the Proposed Rule
                                                    IV. Solicitation of Comments                            Eduardo A. Aleman,                                    Change
                                                                                                            Assistant Secretary.
                                                      Interested persons are invited to                                                                              In its filing with the Commission, the
                                                                                                            [FR Doc. 2017–24782 Filed 11–15–17; 8:45 am]          Exchange included statements
                                                    submit written data, views, and
                                                    arguments concerning the foregoing,                     BILLING CODE 8011–01–P                                concerning the purpose of and basis for
                                                    including whether the proposed rule                                                                           the proposed rule change and discussed
                                                    change is consistent with the Act.                                                                            any comments it received on the
                                                                                                            SECURITIES AND EXCHANGE                               proposed rule change. The text of these
                                                    Comments may be submitted by any of
                                                                                                            COMMISSION                                            statements may be examined at the
                                                    the following methods:
                                                                                                            [Release No. 34–82048; File No. SR–                   places specified in Item IV below. The
                                                    Electronic Comments                                     BatsBYX–2017–29]                                      Exchange has prepared summaries, set
                                                                                                                                                                  forth in Sections A, B, and C below, of
                                                      • Use the Commission’s Internet                       Self-Regulatory Organizations; Cboe                   the most significant parts of such
                                                    comment form (http://www.sec.gov/                       BYX Exchange, Inc.; Notice of Filing                  statements.
                                                    rules/sro.shtml); or                                    and Immediate Effectiveness of a
                                                      • Send an email to rule-comments@                     Proposed Rule Change Related to Fees                  (A) Self-Regulatory Organization’s
                                                    sec.gov. Please include File Number SR–                 for Use on Cboe BYX Exchange, Inc.                    Statement of the Purpose of, and
                                                    BatsBZX–2017–75 on the subject line.                                                                          Statutory Basis for, the Proposed Rule
                                                                                                            November 9, 2017.                                     Change
                                                    Paper Comments                                             Pursuant to Section 19(b)(1) of the
                                                                                                                                                                  1. Purpose
                                                                                                            Securities Exchange Act of 1934 (the
                                                      • Send paper comments in triplicate                   ‘‘Act’’),1 and Rule 19b–4 thereunder,2                   The Exchange proposes to amend its
                                                    to Brent J. Fields, Secretary, Securities               notice is hereby given that on October                fee schedule to amend Tier 7 under
                                                    and Exchange Commission, 100 F Street                   31, 2017, Cboe BYX Exchange, Inc. (the                footnote 1, Add/Remove Volume Tiers.
                                                    NE., Washington, DC 20549–1090.                         ‘‘Exchange’’ or ‘‘BYX’’) (formerly known              The Exchange currently offers eight tiers
                                                                                                            as Bats BYX Exchange, Inc.) filed with                under footnote 1 that offer reduced fees
                                                    All submissions should refer to File
                                                                                                            the Securities and Exchange                           for displayed orders that yield fee codes
                                                    Number SR–BatsBZX–2017–75. This file
                                                                                                            Commission (‘‘Commission’’) the                       B,6 V 7 and Y,8 and an enhanced rebate
                                                    number should be included on the
                                                                                                            proposed rule change as described in                  for orders that remove liquidity yielding
                                                    subject line if email is used. To help the                                                                    fee codes BB,9 N 10 and W.11 The
                                                    Commission process and review your                      Items I, II and III below, which Items
                                                                                                            have been prepared by the Exchange.                   Exchange proposes to amend Tier 7
                                                    comments more efficiently, please use                                                                         under footnote 1, under which a
                                                    only one method. The Commission will                    The Exchange has designated the
                                                                                                            proposed rule change as one                           Member currently receives an enhanced
                                                    post all comments on the Commission’s                                                                         rebate of $0.0015 per share on orders
                                                    Internet Web site (http://www.sec.gov/                  establishing or changing a member due,
                                                                                                            fee, or other charge imposed by the                   that yield fee codes BB, N or W, where
                                                    rules/sro.shtml). Copies of the                                                                               that Member has an ADV 12 equal to or
                                                    submission, all subsequent                              Exchange under Section 19(b)(3)(A)(ii)
                                                                                                            of the Act 3 and Rule 19b–4(f)(2)                     greater than 0.05%of the TCV.13 The
                                                    amendments, all written statements                                                                            Exchange proposes to increase the tier’s
                                                    with respect to the proposed rule                       thereunder,4 which renders the
                                                                                                            proposed rule change effective upon                   criteria by also requiring that the
                                                    change that are filed with the                                                                                Member have an ADAV 14 equal to or
                                                    Commission, and all written                             filing with the Commission. The
                                                    communications relating to the                          Commission is publishing this notice to                  6 Fee code B is appended to displayed orders that

                                                    proposed rule change between the                        solicit comments on the proposed rule                 add liquidity to BYX (Tape B) and is assessed a fee
                                                    Commission and any person, other than                   change from interested persons.                       of $0.0018 per share. See the Exchange’s fee
                                                                                                                                                                  schedule available at http://www.bats.com/us/
                                                    those that may be withheld from the                     I. Self-Regulatory Organization’s                     equities/membership/fee_schedule/byx/.
                                                    public in accordance with the                           Statement of the Terms of Substance of                   7 Fee code V is appended to displayed orders that

                                                    provisions of 5 U.S.C. 552, will be                     the Proposed Rule Change                              add liquidity to BYX (Tape A) and is assessed a fee
                                                    available for Web site viewing and                                                                            of $0.0018 per share. Id.
                                                                                                               The Exchange filed a proposal to                      8 Fee code Y is appended to displayed orders that
                                                    printing in the Commission’s Public                     amend the fee schedule applicable to                  add liquidity to BYX (Tape C) and is assessed a fee
                                                    Reference Room, 100 F Street NE.,                       Members 5 and non-Members of the                      of $0.0018 per share. Id.
                                                    Washington, DC 20549 on official                        Exchange pursuant to BYX Rules 15.1(a)
                                                                                                                                                                     9 Fee code BB is appended to orders that remove

                                                    business days between the hours of                      and (c).
                                                                                                                                                                  liquidity from BYX (Tape B) and is assessed a
                                                                                                                                                                  rebate of $0.0010 [sic] per share. Id.
                                                    10:00 a.m. and 3:00 p.m. Copies of such                    The text of the proposed rule change                  10 Fee code N is appended to orders that remove
                                                    filing also will be available for                       is available at the Exchange’s Web site               liquidity from BYX (Tape C) and is assessed a
                                                    inspection and copying at the principal                 at www.markets.cboe.com, at the                       rebate of $0.0010 [sic] per share. Id.
                                                    office of the Exchange. All comments                    principal office of the Exchange, and at
                                                                                                                                                                     11 Fee code W is appended to orders that remove

                                                    received will be posted without change.                                                                       liquidity from BYX (Tape A) and is assessed a
                                                                                                            the Commission’s Public Reference                     rebate of $0.0010 [sic] per share. See the Exchange’s
                                                    Persons submitting comments are                         Room.                                                 fee schedule available at http://www.bats.com/us/
                                                    cautioned that we do not redact or edit
asabaliauskas on DSKBBXCHB2PROD with NOTICES




                                                                                                                                                                  equities/membership/fee_schedule/byx/.
                                                    personal identifying information from                     13 17 CFR 200.30–3(a)(12).
                                                                                                                                                                     12 ADV is defined as average daily volume

                                                    comment submissions. You should                           1 15
                                                                                                                                                                  calculated as the number of shares added or
                                                                                                                   U.S.C. 78s(b)(1).                              removed, combined, per day. Id.
                                                    submit only information that you wish                     2 17 CFR 240.19b–4.
                                                                                                                                                                     13 TCV is defined as the total consolidated
                                                    to make available publicly. All                           3 15 U.S.C. 78s(b)(3)(A)(ii).
                                                                                                                                                                  volume calculated as the volume reported by all
                                                    submissions should refer to File                          4 17 CFR 240.19b–4(f)(2).
                                                                                                                                                                  exchanges and trade reporting facilities to a
                                                    Number SR–BatsBZX–2017–75, and                            5 The term ‘‘Member’’ is defined as ‘‘any           consolidated transaction reporting plan for the
                                                                                                            registered broker or dealer that has been admitted    month for which the fees apply. Id.
                                                    should be submitted on or before                        to membership in the Exchange.’’ See Exchange            14 ADAV is defined as the average daily volume
                                                    December 7, 2017.                                       Rule 1.5(n).                                          calculated as the number of shares added per day.



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Document Created: 2017-11-16 03:52:59
Document Modified: 2017-11-16 03:52:59
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 53532 

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