82_FR_53760 82 FR 53540 - Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Its Fees for Physical Ports

82 FR 53540 - Self-Regulatory Organizations; Cboe BYX 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 Range53540-53542
FR Document2017-24783

Federal Register, Volume 82 Issue 220 (Thursday, November 16, 2017)
[Federal Register Volume 82, Number 220 (Thursday, November 16, 2017)]
[Notices]
[Pages 53540-53542]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-24783]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82051; File No. SR-BatsBYX-2017-28]


Self-Regulatory Organizations; Cboe BYX 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 BYX Exchange, Inc. (``BYX'' or the 
``Exchange'') (formerly known as Bats BYX 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 BYX 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).
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    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 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

[[Page 53541]]

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 
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).
---------------------------------------------------------------------------

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-BatsBYX-2017-28 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-BatsBYX-2017-28. 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

[[Page 53542]]

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-BatsBYX-2017-28, 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. 2017-24783 Filed 11-15-17; 8:45 am]
 BILLING CODE 8011-01-P



                                                    53540                     Federal Register / Vol. 82, No. 220 / Thursday, November 16, 2017 / Notices

                                                    SECURITIES AND EXCHANGE                                 disapprove, the proposed rule change                  the Commission’s Public Reference
                                                    COMMISSION                                              (File No. SR–NYSEArca–2017–107).                      Room.
                                                                                                              For the Commission, by the Division of              II. Self-Regulatory Organization’s
                                                    [Release No. 34–82044; File No. SR–                     Trading and Markets, pursuant to delegated            Statement of the Purpose of, and
                                                    NYSEArca–2017–107]                                      authority.6
                                                                                                                                                                  Statutory Basis for, the Proposed Rule
                                                                                                            Eduardo A. Aleman,                                    Change
                                                    Self-Regulatory Organizations; NYSE                     Assistant Secretary.
                                                    Arca, Inc.; Notice of Designation of a                                                                           In its filing with the Commission, the
                                                                                                            [FR Doc. 2017–24778 Filed 11–15–17; 8:45 am]
                                                    Longer Period for Commission Action                                                                           Exchange included statements
                                                                                                            BILLING CODE 8011–01–P
                                                    on a Proposed Rule Change To List                                                                             concerning the purpose of and basis for
                                                    and Trade Shares of the Breakwave                                                                             the proposed rule change and discussed
                                                    Dry Bulk Shipping ETF Under NYSE                        SECURITIES AND EXCHANGE                               any comments it received on the
                                                    Arca Rule 8.200–E, Commentary .02                       COMMISSION                                            proposed rule change. The text of these
                                                                                                                                                                  statements may be examined at the
                                                    November 9, 2017.                                       [Release No. 34–82051; File No. SR–                   places specified in Item IV below. The
                                                                                                            BatsBYX–2017–28]                                      Exchange has prepared summaries, set
                                                       On September 8, 2017, NYSE Arca,
                                                    Inc. (‘‘Exchange’’) filed with the                                                                            forth in Sections A, B, and C below, of
                                                                                                            Self-Regulatory Organizations; Cboe
                                                    Securities and Exchange Commission                      BYX Exchange, Inc.; Notice of Filing                  the most significant parts of such
                                                    (‘‘Commission’’), pursuant to Section                   and Immediate Effectiveness of                        statements.
                                                    19(b)(1) of the Securities Exchange Act                 Proposed Rule Change To Modify Its                    A. Self-Regulatory Organization’s
                                                    of 1934 (‘‘Act’’) 1 and Rule 19b–4                      Fees for Physical Ports                               Statement of the Purpose of, and the
                                                    thereunder,2 a proposed rule change to                                                                        Statutory Basis for, the Proposed Rule
                                                    list and trade shares of the Breakwave                  November 9, 2017.
                                                                                                                                                                  Change
                                                    Dry Bulk Shipping ETF under NYSE                           Pursuant to Section 19(b)(1) of the
                                                    Arca Rule 8.200–E, Commentary .02.                      Securities Exchange Act of 1934                       1. Purpose
                                                    The proposed rule change was                            (‘‘Act’’) 1 and Rule 19b–4 thereunder,2                  A physical port is utilized by a
                                                    published for comment in the Federal                    notice is hereby given that on November               Member or non-Member to connect to
                                                    Register on September 28, 2017.3 The                    2, 2017, Cboe BYX Exchange, Inc.                      the Exchange at the data centers where
                                                    Commission has received no comments                     (‘‘BYX’’ or the ‘‘Exchange’’) (formerly               the Exchange’s servers are located. The
                                                    on the proposal.                                        known as Bats BYX Exchange, Inc.) filed               Exchange currently maintains a
                                                                                                            with the Securities and Exchange                      presence in two third-party data centers:
                                                       Section 19(b)(2) of the Act 4 provides               Commission (‘‘Commission’’) the
                                                    that, within 45 days of the publication                                                                       (i) The primary data center where the
                                                                                                            proposed rule change as described in                  Exchange’s business is primarily
                                                    of notice of the filing of a proposed rule              Items I, II, and III below, which Items
                                                    change, or within such longer period up                                                                       conducted on a daily basis, and (ii) a
                                                                                                            have been prepared by the Exchange.                   secondary data center, which is
                                                    to 90 days as the Commission may                        The Exchange has designated the
                                                    designate if it finds such longer period                                                                      predominantly maintained for business
                                                                                                            proposed rule change as one                           continuity purposes. The Exchange
                                                    to be appropriate and publishes its                     establishing or changing a member due,
                                                    reasons for so finding, or as to which the                                                                    currently assesses the following
                                                                                                            fee, or other charge imposed by the
                                                    self-regulatory organization consents,                                                                        physical connectivity fees for Members
                                                                                                            Exchange under Section 19(b)(3)(A)(ii)
                                                    the Commission shall either approve the                                                                       and non-Members on a monthly basis:
                                                                                                            of the Act 3 and Rule 19b–4(f)(2)
                                                    proposed rule change, disapprove the                                                                          $2,000 per physical port that connects
                                                                                                            thereunder,4 which renders the
                                                    proposed rule change, or institute                                                                            to the System 6 via 1 gigabyte circuit;
                                                                                                            proposed rule change effective upon
                                                    proceedings to determine whether the                                                                          and $6,000 per physical port that
                                                                                                            filing with the Commission. The
                                                    proposed rule change should be                                                                                connects to the System via 10 gigabyte
                                                                                                            Commission is publishing this notice to
                                                    disapproved. The 45th day after                                                                               circuit. The Exchange proposes to
                                                                                                            solicit comments on the proposed rule
                                                    publication of the notice for this                                                                            increase the fee per physical port that
                                                                                                            change from interested persons.
                                                    proposed rule change is November 12,                                                                          connects to the System via a 10 gigabyte
                                                    2017. The Commission is extending this                  I. Self-Regulatory Organization’s                     circuit from $6,000 per month to $7,000
                                                    45-day time period.                                     Statement of the Terms of Substance of                per month in order to cover its
                                                                                                            the Proposed Rule Change                              increased infrastructure costs associated
                                                       The Commission finds that it is
                                                                                                               The Exchange filed a proposal to                   with establishing physical ports to
                                                    appropriate to designate a longer period
                                                                                                            amend the fee schedule applicable to                  connect to the Exchange’s Systems and
                                                    within which to take action on the
                                                                                                            Members 5 and non-Members of the                      enable it to continue to maintain and
                                                    proposed rule change so that it has
                                                                                                            Exchange pursuant to BYX Rules 15.1(a)                improve its market technology and
                                                    sufficient time to consider the proposed
                                                                                                            and (c).                                              services.7 The Exchange does not
                                                    rule change. Accordingly, the
                                                                                                               The text of the proposed rule change               propose to amend the fee for a 1
                                                    Commission, pursuant to Section
                                                                                                            is available at the Exchange’s Web site               gigabyte circuit, which will remain
                                                    19(b)(2) of the Act,5 designates
                                                                                                            at www.markets.cboe.com, at the                       $2,000 per month. The Exchange
                                                    December 27, 2017, as the date by
                                                    which the Commission shall either                       principal office of the Exchange, and at
asabaliauskas on DSKBBXCHB2PROD with NOTICES




                                                                                                                                                                     6 The term ‘‘System’’ is defined as ‘‘the electronic
                                                    approve or disapprove, or institute                       6 17                                                communications and trading facility designated by
                                                                                                                   CFR 200.30–3(a)(31).
                                                    proceedings to determine whether to                       1 15 U.S.C. 78s(b)(1).
                                                                                                                                                                  the Board through which securities orders of Users
                                                                                                                                                                  are consolidated for ranking, execution and, when
                                                                                                              2 17 CFR 240.19b–4.
                                                      1 15
                                                                                                                                                                  applicable, routing away.’’ See Exchange Rule
                                                            U.S.C. 78s(b)(1).                                 3 15 U.S.C. 78s(b)(3)(A)(ii).
                                                                                                                                                                  1.5(aa).
                                                      2 17  CFR 240.19b–4.                                    4 17 CFR 240.19b–4(f)(2).                              7 The Exchange also proposes two minor
                                                      3 See Securities Exchange Act Release No. 81681         5 The term ‘‘Member’’ is defined as ‘‘any           technical amendments to this section of its fee
                                                    (September 22, 2017), 82 FR 45342.                      registered broker or dealer that has been admitted    schedule. First is to change the word ‘‘Connection’’
                                                      4 15 U.S.C. 78s(b)(2).
                                                                                                            to membership in the Exchange.’’ See Exchange         to ‘‘Connectivity’’ in the section’s title. The second
                                                      5 Id.                                                 Rule 1.5(n).                                          is to change references to ‘‘G’’ for gigabyte to ‘‘Gb’’.



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                                                                                 Federal Register / Vol. 82, No. 220 / Thursday, November 16, 2017 / Notices                                           53541

                                                    proposes to implement this amendment                         Furthermore, the proposed rule                      III. Date of Effectiveness of the
                                                    to its fee schedule on January 2, 2018.                    change is also an equitable allocation of             Proposed Rule Change and Timing for
                                                                                                               reasonable dues, fees, and other charges              Commission Action
                                                    2. Statutory Basis
                                                                                                               as the Exchange believes that the                        The foregoing rule change has become
                                                       The Exchange believes that the                          increased fees obtained will enable it to             effective pursuant to Section 19(b)(3)(A)
                                                    proposed rule change is consistent with                    cover its increased infrastructure costs              of the Act 11 and paragraph (f) of Rule
                                                    the objectives of Section 6 of the Act,8
                                                                                                               associated with establishing physical                 19b–4 thereunder.12 At any time within
                                                    in general, and furthers the objectives of
                                                                                                               ports to connect to the Exchange’s                    60 days of the filing of the proposed rule
                                                    Section 6(b)(4),9 in particular, as it is
                                                                                                               Systems. The additional revenue from                  change, the Commission summarily may
                                                    designed to provide for the equitable
                                                                                                               the increased fee will also enable the                temporarily suspend such rule change if
                                                    allocation of reasonable dues, fees and
                                                                                                               Exchange to continue to maintain and                  it appears to the Commission that such
                                                    other charges among its Members and
                                                                                                               improve its market technology and                     action is necessary or appropriate in the
                                                    other persons using its facilities. The
                                                                                                               services.                                             public interest, for the protection of
                                                    Exchange also notes that it operates in
                                                                                                                                                                     investors, or otherwise in furtherance of
                                                    a highly-competitive market in which                         Lastly, the Exchange believes the fees              the purposes of the Act.
                                                    market participants can readily direct                     and credits remain competitive with
                                                    order flow to competing venues if they                     those charged by other venues and                     IV. Solicitation of Comments
                                                    deem fee levels at a particular venue to                   therefore continue to be reasonable and                 Interested persons are invited to
                                                    be excessive. The proposed rule change                     equitably allocated to Members. For                   submit written data, views, and
                                                    reflects a competitive pricing structure                   instance, the proposed fees for a 10                  arguments concerning the foregoing,
                                                    designed to incent market participants                     gigabyte circuit of $7,000 per month is               including whether the proposed rule
                                                    to direct their order flow to the                                                                                change is consistent with the Act.
                                                                                                               less than analogous fees charged by the
                                                    Exchange.                                                                                                        Comments may be submitted by any of
                                                       The Exchange believes that the                          Nasdaq Stock Market LLC (‘‘Nasdaq’’)
                                                                                                               and NYSE Arca, Inc. (‘‘Arca’’), which                 the following methods:
                                                    proposed rate is equitable and non-
                                                    discriminatory in that it applies                          range from $10,000—$15,000 per month                  Electronic Comments
                                                                                                               for 10 gigabyte circuits.10
                                                    uniformly to all Members. Members and                                                                              • Use the Commission’s Internet
                                                    non-Members will continue to choose                        B. Self-Regulatory Organization’s                     comment form (http://www.sec.gov/
                                                    whether they want more than one                            Statement on Burden on Competition                    rules/sro.shtml); or
                                                    physical port and choose the method of                                                                             • Send an email to rule-comments@
                                                    connectivity based on their specific                          The Exchange does not believe that                 sec.gov. Please include File Number SR–
                                                    needs. All Members that voluntarily                        the proposed rule change will impose                  BatsBYX–2017–28 on the subject line.
                                                    select various service options will be                     any burden on competition not
                                                    charged the same amount for the same                                                                             Paper Comments
                                                                                                               necessary or appropriate in furtherance
                                                    services. As is true of all physical                       of the purposes of the Act. As discussed                 • Send paper comments in triplicate
                                                    connectivity, all Members and non-                         above, the Exchange believes that fees                to Brent J. Fields, Secretary, Securities
                                                    Members have the option to select any                      for connectivity are constrained by the               and Exchange Commission, 100 F Street
                                                    connectivity option, and there is no                                                                             NE., Washington, DC 20549–1090.
                                                                                                               robust competition for order flow among
                                                    differentiation with regard to the fees                                                                          All submissions should refer to File
                                                                                                               exchanges and non-exchange markets.
                                                    charged for the service.                                                                                         Number SR–BatsBYX–2017–28. This
                                                       The Exchange believes that the                          The Exchange does not believe that the
                                                                                                                                                                     file number should be included on the
                                                    proposal represents an equitable                           proposed changes represent a significant
                                                                                                                                                                     subject line if email is used. To help the
                                                    allocation of reasonable dues, fees, and                   departure from previous pricing offered               Commission process and review your
                                                    other charges as its fees for physical                     by the Exchange or pricing offered by                 comments more efficiently, please use
                                                    connectivity are reasonably constrained                    the Exchange’s competitors.                           only one method. The Commission will
                                                    by competitive alternatives. If a                          Additionally, Members may opt to                      post all comments on the Commission’s
                                                    particular exchange charges excessive                      disfavor the Exchange’s pricing if they               Internet Web site (http://www.sec.gov/
                                                    fees for connectivity, affected Members                    believe that alternatives offer them                  rules/sro.shtml). Copies of the
                                                    and non-Members may opt to terminate                       better value. Further, excessive fees for             submission, all subsequent
                                                    their connectivity arrangements with                       connectivity would serve to impair an                 amendments, all written statements
                                                    that exchange, and adopt a possible                        exchange’s ability to compete for order               with respect to the proposed rule
                                                    range of alternative strategies, including                 flow rather than burdening competition.               change that are filed with the
                                                    routing to the applicable exchange                                                                               Commission, and all written
                                                    through another participant or market                      C. Self-Regulatory Organization’s                     communications relating to the
                                                    center or taking that exchange’s data                      Statement on Comments on the                          proposed rule change between the
                                                    indirectly. Accordingly, if the Exchange                   Proposed Rule Change Received From                    Commission and any person, other than
                                                    charges excessive fees, it would stand to                  Members, Participants, or Others                      those that may be withheld from the
                                                    lose not only connectivity revenues but                                                                          public in accordance with the
                                                                                                                 The Exchange has not solicited, and
                                                    also revenues associated with the                                                                                provisions of 5 U.S.C. 552, will be
                                                                                                               does not intend to solicit, comments on
                                                    execution of orders routed to it, and, to                                                                        available for Web site viewing and
                                                                                                               this proposed rule change. The
asabaliauskas on DSKBBXCHB2PROD with NOTICES




                                                    the extent applicable, market data                                                                               printing in the Commission’s Public
                                                    revenues. The Exchange believes that                       Exchange has not received any                         Reference Room, 100 F Street NE.,
                                                    this competitive dynamic imposes                           unsolicited written comments from                     Washington, DC 20549 on official
                                                    powerful restraints on the ability of any                  Members or other interested parties.                  business days between the hours of
                                                    exchange to charge unreasonable fees                                                                             10:00 a.m. and 3:00 p.m. Copies of such
                                                    for connectivity.                                            10 See Nasdaq Rule 7034(b) and the NYSE Arca        filing also will be available for
                                                                                                               fee schedule available at https://www.nyse.com/
                                                      8 15   U.S.C. 78f.                                       publicdocs/nyse/markets/nyse-arca/NYSE_Arca_            11 15   U.S.C. 78s(b)(3)(A).
                                                      9 15   U.S.C. 78f(b)(4).                                 Marketplace_Fees.pdf (dated October 11, 2017).          12 17   CFR 240.19b–4(f).



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                                                    53542                       Federal Register / Vol. 82, No. 220 / Thursday, November 16, 2017 / Notices

                                                    inspection and copying at the principal                   3,249 portfolios holding no equity                         securities and the number of voting
                                                    office of the Exchange. All comments                      securities, and 1,458 portfolios holding                   matters relative to portfolios holding
                                                    received will be posted without change.                   fund securities (i.e., fund of funds).1 The                equity securities. Therefore, the
                                                    Persons submitting comments are                           currently approved burden of Form N–                       aggregate cost burden, when calculated
                                                    cautioned that we do not redact or edit                   PX for portfolios holding equity                           using the current number of portfolios,
                                                    personal identifying information from                     securities is 7.2 hours per response, the                  is approximately $7.3 million in
                                                    comment submissions. You should                           current burden estimate for funds                          external costs.5 We continue to believe
                                                    submit only information that you wish                     holding no equity securities is 0.17                       that these estimates for Form N–PX’s
                                                    to make available publicly. All                           hours (10 minutes) per response, and                       current cost burden are appropriate.
                                                    submissions should refer to File                          the current burden estimate for fund of
                                                    Number SR–BatsBYX–2017–28, and                            funds is 1 hour per response. Therefore,                      Estimates of average burden hours
                                                    should be submitted on or before                          the number of aggregate burden hours,                      and costs are made solely for the
                                                    December 7, 2017.                                         when calculated using the current                          purposes of the Paperwork Reduction
                                                      For the Commission, by the Division of                  number of portfolios, is approximately                     Act and are not derived from a
                                                    Trading and Markets, pursuant to delegated                53,210 hours.2 We continue to believe                      comprehensive or even representative
                                                    authority.13                                              that these estimates for Form N–PX’s                       survey or study of the costs of
                                                    Eduardo A. Aleman,                                        current burden are appropriate. Based                      Commission rules and forms.
                                                    Assistant Secretary.                                      on the Commission’s estimate of 53,210                     Compliance with the collection of
                                                    [FR Doc. 2017–24783 Filed 11–15–17; 8:45 am]              burden hours and an estimated wage                         information requirements of Form N–PX
                                                    BILLING CODE 8011–01–P                                    rate of approximately $345 per hour,3                      is mandatory. Responses to the
                                                                                                              the total cost to reporting persons of the                 collection of information will not be
                                                                                                              hour burden for filing Form N–PX is                        kept confidential. An agency may not
                                                    SECURITIES AND EXCHANGE                                   approximately $18.44 million.4                             conduct or sponsor, and a person is not
                                                    COMMISSION                                                   The estimated cost burden of Form N–                    required to respond to, a collection of
                                                                                                              PX is $1,000 in external costs per                         information unless it displays a
                                                    Submission for OMB Review;                                portfolio holding equity securities that                   currently valid OMB control number.
                                                    Comment Request                                           is paid to third-party service providers.
                                                                                                              External costs for portfolios holding no                      The public may view the background
                                                    Upon Written Request, Copies Available                                                                               documentation for this information
                                                     From: Securities and Exchange                            equity securities have previously been
                                                                                                              estimated to be zero because portfolios                    collection at the following Web site,
                                                     Commission, Office of FOIA Services,                                                                                www.reginfo.gov. Comments should be
                                                     100 F Street NE., Washington, DC                         holding no equity securities generally
                                                                                                              have no proxy votes to report and                          directed to: (i) Desk Officer for the
                                                     20549–2736                                                                                                          Securities and Exchange Commission,
                                                                                                              therefore do not require third-party
                                                    Extension:                                                                                                           Office of Information and Regulatory
                                                                                                              service providers to assist with proxy
                                                      Form N–PX; SEC File No. 270–524, OMB                                                                               Affairs, Office of Management and
                                                        Control No. 3235–0582                                 voting and preparing reports on Form
                                                                                                              N–PX. The estimated cost burden of                         Budget, Room 10102, New Executive
                                                       Notice is hereby given that, pursuant                  Form N–PX for fund of funds is                             Office Building, Washington, DC 20503,
                                                    to the Paperwork Reduction Act of 1995                    estimated to be $100 per portfolio                         or by sending an email to: Shagufta_
                                                    (44 U.S.C. 3501 et seq.) (‘‘Paperwork                     because fund of funds generally either                     Ahmed@omb.eop.gov; and (ii) Pamela
                                                    Reduction Act’’), the Securities and                      have no proxy votes to report; or if                       Dyson, Director/Chief Information
                                                    Exchange Commission (the                                  proxy votes are reported, they are                         Officer, Securities and Exchange
                                                    ‘‘Commission’’) has submitted to the                      generally limited in the number of                         Commission, c/o Remi Pavlik-Simon,
                                                    Office of Management and Budget
                                                    (‘‘OMB’’) a request for extension of the                                                                             100 F Street NE., Washington, DC 20549
                                                                                                                 1 The estimate of 2,376 funds is based on the
                                                    previously approved collection of                                                                                    or send an email to: PRA_Mailbox@
                                                                                                              number of management investment companies
                                                    information discussed below.                              currently registered with the Commission. The              sec.gov. Comments must be submitted to
                                                       Rule 30b1–4 (17 CFR 270.30b1–4)                        Commission staff estimates that there are                  OMB within 30 days of this notice.
                                                                                                              approximately 6,385 portfolios that invest primarily
                                                    under the Investment Company Act of                       in equity securities, 726 ‘‘hybrid’’ or bond portfolios      Dated: November 9, 2017.
                                                    1940 (15 U.S.C. 80a–1 et seq.) requires                   that may hold some equity securities, 2,831 bond           Eduardo A. Aleman,
                                                    every registered management                               portfolios that hold no equity securities, and 418
                                                                                                              money market fund portfolios, and 1,458 fund of            Assistant Secretary.
                                                    investment company, other than a small
                                                                                                              funds, for a total of 11,818 portfolios required to file   [FR Doc. 2017–24753 Filed 11–15–17; 8:45 am]
                                                    business investment company registered                    Form N–PX reports. The staff has based its portfolio
                                                    on Form N–5 (‘‘funds’’), to file a report                 estimates on a number of publications. See
                                                                                                                                                                         BILLING CODE 8011–01–P
                                                    on Form N–PX not later than August 31                     Investment Company Institute, Trends in Mutual
                                                    of each year. Funds use Form N–PX to                      Fund Investing (April 2017); Investment Company
                                                    file annual reports with the Commission                   Institute, Closed-End Fund Assets and Net Issuance
                                                                                                              (First Quarter 2017); Investment Company Institute,
                                                    containing their complete proxy voting                    ETF Assets and Net Issuance (April 2017).
                                                    record for the most recent twelve-month                      2 (7,111 portfolios that hold equity securities × 7.2

                                                    period ended June 30.                                     hours per year) + (3,249 portfolios holding no
                                                       The Commission estimates that there                    equity securities × 0.17 hours per year) + (1,458
                                                                                                              portfolios holding fund securities × 1 hour per year)
asabaliauskas on DSKBBXCHB2PROD with NOTICES




                                                    are approximately 2,376 funds
                                                                                                              = 53,210 hours.
                                                    registered with the Commission,                              3 The hourly wage figure for a compliance
                                                    representing approximately 11,818 fund                    attorney is from the Securities Industry and
                                                    portfolios that are required to file Form                 Financial Markets Association’s Management &
                                                    N–PX reports. The 11,818 portfolios are                   Professional Salaries in the Securities Industry
                                                                                                              2013, modified by Commission staff to account for
                                                    comprised of approximately 7,111                          an 1800-hour work-year and inflation and                     5 (7,111 portfolios holding equity securities ×
                                                    portfolios holding equity securities,                     multiplied by5.35 to account for bonuses, firm size,       $1,000 per year) + (3,249 portfolios holding no
                                                                                                              employee benefits and overhead.                            equity securities × $0 per year) + (1,458 fund of
                                                      13 17   CFR 200.30–3(a)(12).                               4 53,210 hours × $345 per hour = $18,357,288.           funds × $100) = $7,256,800.



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Document Created: 2017-11-16 03:52:54
Document Modified: 2017-11-16 03:52:54
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 53540 

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