82_FR_54674 82 FR 54453 - Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify Its Fees for Physical Ports

82 FR 54453 - Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify Its Fees for Physical Ports

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 221 (November 17, 2017)

Page Range54453-54455
FR Document2017-24932

Federal Register, Volume 82 Issue 221 (Friday, November 17, 2017)
[Federal Register Volume 82, Number 221 (Friday, November 17, 2017)]
[Notices]
[Pages 54453-54455]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-24932]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82060; File No. SR-BatsEDGX-2017-47]


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

November 13, 2017.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on November 2, 2017, Cboe EDGX Exchange, Inc. (the ``Exchange'' or 
``EDGX'') (formerly known as Bats EDGX 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.
---------------------------------------------------------------------------

    \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 EDGX Rules 
15.1(a) and (c).
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    \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

[[Page 54454]]

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 
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.
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    \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(cc).
    \7\ The Exchange also proposes a minor technical amendment to 
change the title of the first column from ``Connection Service 
Type'' to Service''.
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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.
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f).

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[[Page 54455]]

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File No. SR-BatsEDGX-2017-47 on the subject line.

Paper Comments

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

All submissions should refer to File No. SR-BatsEDGX-2017-47. 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 will also 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 No. SR-BatsEDGX-2017-47 and should be 
submitted on or before December 8, 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. 2017-24932 Filed 11-16-17; 8:45 am]
 BILLING CODE 8011-01-P



                                                                             Federal Register / Vol. 82, No. 221 / Friday, November 17, 2017 / Notices                                                    54453

                                                adopting this requirement, the                           may be submitted by any of the                        SECURITIES AND EXCHANGE
                                                Commission stated that ‘‘[r]elevant                      following methods:                                    COMMISSION
                                                internationally accepted communication
                                                procedures and standards could include                   Electronic Comments                                   [Release No. 34–82060; File No. SR–
                                                                                                                                                               BatsEDGX–2017–47]
                                                messaging standards such as SWIFT,                         • Use the Commission’s Internet
                                                FIX and FpML.’’ [emphasis added].31                      comment form (http://www.sec.gov/                     Self-Regulatory Organizations; Cboe
                                                Accordingly, use of the SWIFT                            rules/sro.shtml); or                                  EDGX Exchange, Inc.; Notice of Filing
                                                messaging network as the primary                                                                               and Immediate Effectiveness of a
                                                process to support daily cash settlement                   • Send an email to rule-comments@
                                                                                                                                                               Proposed Rule Change To Modify Its
                                                is consistent with Rule 17Ad–22(e)(22).                  sec.gov. Please include File Number SR-               Fees for Physical Ports
                                                   In these ways, OCC believes the                       OCC–2017–805 on the subject line.
                                                proposed changes are consistent with                                                                           November 13, 2017.
                                                                                                         Paper Comments                                           Pursuant to Section 19(b)(1) of the
                                                Section 805(b)(2) of the Clearing
                                                Supervision Act 32 and Rule 17Ad–                          • Send paper comments in triplicate                 Securities Exchange Act of 1934 (the
                                                22(e)(22).33                                             to Secretary, Securities and Exchange                 ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                                                                         Commission, 100 F Street NE.,                         notice is hereby given that on November
                                                III. Date of Effectiveness of the Advance                                                                      2, 2017, Cboe EDGX Exchange, Inc. (the
                                                Notice and Timing for Commission                         Washington, DC 20549.
                                                                                                                                                               ‘‘Exchange’’ or ‘‘EDGX’’) (formerly
                                                Action                                                   All submissions should refer to File                  known as Bats EDGX Exchange, Inc.)
                                                   The proposed change may be                            Number SR–OCC–2017–805. This file                     filed with the Securities and Exchange
                                                implemented if the Commission does                       number should be included on the                      Commission (‘‘Commission’’) the
                                                not object to the proposed change                        subject line if email is used. To help the            proposed rule change as described in
                                                within 60 days of the later of: (i) The                  Commission process and review your                    Items I, II and III below, which Items
                                                date the proposed change was filed with                  comments more efficiently, please use                 have been prepared by the Exchange.
                                                the Commission or (ii) the date any                      only one method. The Commission will                  The Exchange has designated the
                                                additional information requested by the                  post all comments on the Commission’s                 proposed rule change as one
                                                Commission is received. OCC shall not                    Internet Web site (http://www.sec.gov/                establishing or changing a member due,
                                                implement the proposed change if the                     rules/sro.shtml). Copies of the                       fee, or other charge imposed by the
                                                Commission has any objection to the                      submission, all subsequent                            Exchange under Section 19(b)(3)(A)(ii)
                                                proposed change.                                         amendments, all written statements                    of the Act 3 and Rule 19b–4(f)(2)
                                                   The Commission may extend the                         with respect to the advance notice that               thereunder,4 which renders the
                                                period for review by an additional 60                    are filed with the Commission, and all                proposed rule change effective upon
                                                days if the proposed change raises novel                 written communications relating to the                filing with the Commission. The
                                                or complex issues, subject to the                        advance notice between the                            Commission is publishing this notice to
                                                Commission providing the clearing                        Commission and any person, other than                 solicit comments on the proposed rule
                                                agency with prompt written notice of                     those that may be withheld from the                   change from interested persons.
                                                the extension. A proposed change may                     public in accordance with the                         I. Self-Regulatory Organization’s
                                                be implemented in less than 60 days                      provisions of 5 U.S.C. 552, will be                   Statement of the Terms of Substance of
                                                from the date the advance notice is                      available for Web site viewing and                    the Proposed Rule Change
                                                filed, or the date further information                   printing in the Commission’s Public
                                                requested by the Commission is                                                                                    The Exchange filed a proposal to
                                                                                                         Reference Room, 100 F Street NE.,                     amend the fee schedule applicable to
                                                received, if the Commission notifies the
                                                                                                         Washington, DC 20549 on official                      Members 5 and non-Members of the
                                                clearing agency in writing that it does
                                                                                                         business days between the hours of                    Exchange pursuant to EDGX Rules
                                                not object to the proposed change and
                                                                                                         10:00 a.m. and 3:00 p.m. Copies of the                15.1(a) and (c).
                                                authorizes the clearing agency to
                                                                                                         filing also will be available for                        The text of the proposed rule change
                                                implement the proposed change on an
                                                earlier date, subject to any conditions                  inspection and copying at the principal               is available at the Exchange’s Web site
                                                imposed by the Commission.                               office of OCC and on OCC’s Web site at                at www.markets.cboe.com, at the
                                                   OCC shall post notice on its Web site                 http://www.theocc.com/components/                     principal office of the Exchange, and at
                                                of proposed changes that are                             docs/legal/rules_and_bylaws/sr_occ_17_                the Commission’s Public Reference
                                                implemented.                                             805.pdf.                                              Room.
                                                   The proposal shall not take effect                       All comments received will be posted               II. Self-Regulatory Organization’s
                                                until all regulatory actions required                    without change. Persons submitting                    Statement of the Purpose of, and
                                                with respect to the proposal are                         comments are cautioned that we do not                 Statutory Basis for, the Proposed Rule
                                                completed.                                               redact or edit personal identifying                   Change
                                                IV. Solicitation of Comments                             information from comment submissions.                    In its filing with the Commission, the
                                                                                                         You should submit only information                    Exchange included statements
                                                  Interested persons are invited to                      that you wish to make available                       concerning the purpose of and basis for
                                                submit written data, views and                           publicly. All submissions should refer                the proposed rule change and discussed
                                                arguments concerning the foregoing,                      to File Number SR–OCC–2017–805 and                    any comments it received on the
                                                including whether the advance notice is                  should be submitted on or before
sradovich on DSK3GMQ082PROD with NOTICES




                                                consistent with the Clearing                             December 8, 2017.                                       1 15 U.S.C. 78s(b)(1).
                                                Supervision Act and the Act. Comments                                                                            2 17 CFR 240.19b–4.
                                                                                                           By the Commission.                                    3 15 U.S.C. 78s(b)(3)(A)(ii).
                                                  31 SecuritiesExchange Act Release No. 78961            Eduardo A. Aleman,                                      4 17 CFR 240.19b–4(f)(2).
                                                (September 28, 2016), 81 FR 70786, 70842 (October        Assistant Secretary.                                    5 The term ‘‘Member’’ is defined as ‘‘any
                                                13, 2016).                                                                                                     registered broker or dealer that has been admitted
                                                  32 12 U.S.C. 5464(b)(2).                               [FR Doc. 2017–24919 Filed 11–16–17; 8:45 am]
                                                                                                                                                               to membership in the Exchange.’’ See Exchange
                                                  33 17 CFR 240.17Ad–22(e)(22).                          BILLING CODE 8011–01–P                                Rule 1.5(n).



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                                                54454                        Federal Register / Vol. 82, No. 221 / Friday, November 17, 2017 / Notices

                                                proposed rule change. The text of these                  other persons using its facilities. The               those charged by other venues and
                                                statements may be examined at the                        Exchange also notes that it operates in               therefore continue to be reasonable and
                                                places specified in Item IV below. The                   a highly-competitive market in which                  equitably allocated to Members. For
                                                Exchange has prepared summaries, set                     market participants can readily direct                instance, the proposed fees for a 10
                                                forth in Sections A, B, and C below, of                  order flow to competing venues if they                gigabyte circuit of $7,000 per month is
                                                the most significant parts of such                       deem fee levels at a particular venue to              less than analogous fees charged by the
                                                statements.                                              be excessive. The proposed rule change                Nasdaq Stock Market LLC (‘‘Nasdaq’’)
                                                                                                         reflects a competitive pricing structure              and NYSE Arca, Inc. (‘‘Arca’’), which
                                                (A) Self-Regulatory Organization’s
                                                                                                         designed to incent market participants                range from $10,000–$15,000 per month
                                                Statement of the Purpose of, and
                                                                                                         to direct their order flow to the                     for 10 gigabyte circuits.10
                                                Statutory Basis for, the Proposed Rule
                                                                                                         Exchange.
                                                Change                                                      The Exchange believes that the                     (B) Self-Regulatory Organization’s
                                                1. Purpose                                               proposed rate is equitable and non-                   Statement on Burden on Competition
                                                   A physical port is utilized by a                      discriminatory in that it applies
                                                                                                                                                                  The Exchange does not believe that
                                                Member or non-Member to connect to                       uniformly to all Members. Members and
                                                                                                                                                               the proposed rule change will impose
                                                the Exchange at the data centers where                   non-Members will continue to choose
                                                                                                                                                               any burden on competition not
                                                the Exchange’s servers are located. The                  whether they want more than one
                                                                                                                                                               necessary or appropriate in furtherance
                                                Exchange currently maintains a                           physical port and choose the method of
                                                                                                         connectivity based on their specific                  of the purposes of the Act. As discussed
                                                presence in two third-party data centers:                                                                      above, the Exchange believes that fees
                                                (i) The primary data center where the                    needs. All Members that voluntarily
                                                                                                         select various service options will be                for connectivity are constrained by the
                                                Exchange’s business is primarily                                                                               robust competition for order flow among
                                                conducted on a daily basis, and (ii) a                   charged the same amount for the same
                                                                                                         services. As is true of all physical                  exchanges and non-exchange markets.
                                                secondary data center, which is                                                                                The Exchange does not believe that the
                                                predominantly maintained for business                    connectivity, all Members and non-
                                                                                                         Members have the option to select any                 proposed changes represent a significant
                                                continuity purposes. The Exchange                                                                              departure from previous pricing offered
                                                                                                         connectivity option, and there is no
                                                currently assesses the following                                                                               by the Exchange or pricing offered by
                                                                                                         differentiation with regard to the fees
                                                physical connectivity fees for Members                                                                         the Exchange’s competitors.
                                                                                                         charged for the service.
                                                and non-Members on a monthly basis:                         The Exchange believes that the                     Additionally, Members may opt to
                                                $2,000 per physical port that connects                   proposal represents an equitable                      disfavor the Exchange’s pricing if they
                                                to the System 6 via 1 gigabyte circuit;                  allocation of reasonable dues, fees, and              believe that alternatives offer them
                                                and $6,000 per physical port that                        other charges as its fees for physical                better value. Further, excessive fees for
                                                connects to the System via 10 gigabyte                   connectivity are reasonably constrained               connectivity would serve to impair an
                                                circuit. The Exchange proposes to                        by competitive alternatives. If a                     exchange’s ability to compete for order
                                                increase the fee per physical port that                  particular exchange charges excessive                 flow rather than burdening competition.
                                                connects to the System via a 10 gigabyte                 fees for connectivity, affected Members
                                                circuit from $6,000 per month to $7,000                                                                        (C) Self-Regulatory Organization’s
                                                                                                         and non-Members may opt to terminate                  Statement on Comments on the
                                                per month in order to cover its                          their connectivity arrangements with
                                                increased infrastructure costs associated                                                                      Proposed Rule Change Received From
                                                                                                         that exchange, and adopt a possible                   Members, Participants or Others
                                                with establishing physical ports to                      range of alternative strategies, including
                                                connect to the Exchange’s Systems and                    routing to the applicable exchange                      The Exchange has not solicited, and
                                                enable it to continue to maintain and                    through another participant or market                 does not intend to solicit, comments on
                                                improve its market technology and                        center or taking that exchange’s data                 this proposed rule change. The
                                                services.7 The Exchange does not                         indirectly. Accordingly, if the Exchange              Exchange has not received any
                                                propose to amend the fee for a 1                         charges excessive fees, it would stand to             unsolicited written comments from
                                                gigabyte circuit, which will remain                      lose not only connectivity revenues but               Members or other interested parties.
                                                $2,000 per month. The Exchange                           also revenues associated with the
                                                proposes to implement this amendment                     execution of orders routed to it, and, to             III. Date of Effectiveness of the
                                                to its fee schedule on January 2, 2018.                  the extent applicable, market data                    Proposed Rule Change and Timing for
                                                                                                         revenues. The Exchange believes that                  Commission Action
                                                2. Statutory Basis
                                                                                                         this competitive dynamic imposes
                                                   The Exchange believes that the                                                                                 The foregoing rule change has become
                                                                                                         powerful restraints on the ability of any
                                                proposed rule change is consistent with                                                                        effective pursuant to Section 19(b)(3)(A)
                                                                                                         exchange to charge unreasonable fees
                                                the objectives of Section 6 of the Act,8                                                                       of the Act 11 and paragraph (f) of Rule
                                                                                                         for connectivity.
                                                in general, and furthers the objectives of                  Furthermore, the proposed rule                     19b–4 thereunder.12 At any time within
                                                Section 6(b)(4),9 in particular, as it is                change is also an equitable allocation of             60 days of the filing of the proposed rule
                                                designed to provide for the equitable                    reasonable dues, fees, and other charges              change, the Commission summarily may
                                                allocation of reasonable dues, fees and                  as the Exchange believes that the                     temporarily suspend such rule change if
                                                other charges among its Members and                      increased fees obtained will enable it to             it appears to the Commission that such
                                                                                                         cover its increased infrastructure costs              action is necessary or appropriate in the
                                                  6 The term ‘‘System’’ is defined as ‘‘the electronic
                                                                                                         associated with establishing physical                 public interest, for the protection of
                                                communications and trading facility designated by                                                              investors, or otherwise in furtherance of
sradovich on DSK3GMQ082PROD with NOTICES




                                                the Board through which securities orders of Users       ports to connect to the Exchange’s
                                                are consolidated for ranking, execution and, when        Systems. The additional revenue from                  the purposes of the Act.
                                                applicable, routing away.’’ See Exchange Rule            the increased fee will also enable the
                                                1.5(cc).                                                                                                         10 See Nasdaq Rule 7034(b) and the NYSE Arca
                                                  7 The Exchange also proposes a minor technical
                                                                                                         Exchange to continue to maintain and
                                                                                                                                                               fee schedule available at https://www.nyse.com/
                                                amendment to change the title of the first column        improve its market technology and                     publicdocs/nyse/markets/nyse-arca/NYSE_Arca_
                                                from ‘‘Connection Service Type’’ to Service’’.           services.                                             Marketplace_Fees.pdf (dated October 11, 2017).
                                                  8 15 U.S.C. 78f.                                          Lastly, the Exchange believes the fees               11 15 U.S.C. 78s(b)(3)(A).
                                                  9 15 U.S.C. 78f(b)(4).                                 and credits remain competitive with                     12 17 CFR 240.19b–4(f).




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                                                                            Federal Register / Vol. 82, No. 221 / Friday, November 17, 2017 / Notices                                                   54455

                                                IV. Solicitation of Comments                              For the Commission, by the Division of                October 18, 2017, the MSRB granted an
                                                                                                        Trading and Markets, pursuant to delegated              extension of time for the Commission to
                                                  Interested persons are invited to                     authority.13                                            act on the filing until December 15,
                                                submit written data, views and                          Eduardo A. Aleman,                                      2017. On November 7, 2017, the MSRB
                                                arguments concerning the foregoing,                     Assistant Secretary.                                    responded to the comments 5 and filed
                                                including whether the proposed rule                     [FR Doc. 2017–24932 Filed 11–16–17; 8:45 am]            Amendment No. 1 to the proposed rule
                                                change is consistent with the Act.                      BILLING CODE 8011–01–P                                  change (‘‘Amendment No. 1’’). The text
                                                Comments may be submitted by any of                                                                             of Amendment No. 1 is available on the
                                                the following methods:                                                                                          MSRB’s Web site.6 The Commission is
                                                                                                        SECURITIES AND EXCHANGE                                 publishing this notice to solicit
                                                Electronic Comments                                     COMMISSION                                              comments on Amendment No. 1 to the
                                                  • Use the Commission’s Internet                       [Release No. 34–82053; File No. SR–MSRB–                proposed rule change from interested
                                                comment form (http://www.sec.gov/                       2017–06]                                                persons.
                                                rules/sro.shtml); or                                                                                            II. Self-Regulatory Organization’s
                                                                                                        Self-Regulatory Organizations;                          Statement of the Terms of Substance of
                                                  • Send an email to rule-comments@                     Municipal Securities Rulemaking
                                                sec.gov. Please include File No. SR–                                                                            the Proposed Amendment
                                                                                                        Board; Notice of Filing of Amendment
                                                BatsEDGX–2017–47 on the subject line.                   No. 1 to Proposed Rule Change To                           In response to concerns raised in the
                                                                                                        Amend MSRB Rule G–34, on CUSIP                          comments, the MSRB is proposing to
                                                Paper Comments                                                                                                  amend proposed paragraph Rule G–
                                                                                                        Numbers, New Issue, and Market
                                                  • Send paper comments in triplicate                   Information Requirements                                34(a)(i)(F) of the proposed rule change
                                                                                                                                                                to require dealers (and municipal
                                                to Secretary, Securities and Exchange                   November 13, 2017.                                      advisors in a competitive sale) seeking
                                                Commission, 100 F Street NE.,
                                                                                                        I. Introduction                                         to rely on the principles-based
                                                Washington, DC 20549–1090.                                                                                      exception to reasonably believe the
                                                All submissions should refer to File No.                   On August 30, 2017, the Municipal                    purchaser’s present intent is to hold the
                                                SR–BatsEDGX–2017–47. This file                          Securities Rulemaking Board (‘‘MSRB’’)                  municipal securities to maturity ‘‘or
                                                                                                        filed with the Securities and Exchange                  earlier redemption or mandatory
                                                number should be included on the
                                                                                                        Commission (‘‘SEC’’ or ‘‘Commission’’),                 tender.’’ 7 The MSRB believes the
                                                subject line if email is used. To help the
                                                                                                        pursuant to Section 19(b)(1) of the                     proposed rule change should be
                                                Commission process and review your
                                                                                                        Securities Exchange Act of 1934                         amended to more accurately reflect the
                                                comments more efficiently, please use                   (‘‘Exchange Act’’ or ‘‘Act’’) 1 and Rule
                                                only one method. The Commission will                                                                            terms of direct purchase transactions
                                                                                                        19b–4 thereunder,2 a proposed rule                      including the potential for earlier
                                                post all comments on the Commission’s                   change consisting of amendments to                      redemption or mandatory tender.8 The
                                                Internet Web site (http://www.sec.gov/                  Rule G–34 on CUSIP numbers, new                         MSRB is proposing this same
                                                rules/sro.shtml). Copies of the                         issue, and market information                           amendment to the proposed principles-
                                                submission, all subsequent                              requirements. The proposed rule change                  based exception for dealers from the
                                                amendments, all written statements                      was published for comment in the                        depository eligibility requirements of
                                                with respect to the proposed rule                       Federal Register on September 18,                       the rule set forth in proposed
                                                change that are filed with the                          2017.3 The Commission received eleven                   subparagraph Rule G–34(a)(ii)(A)(3) for
                                                Commission, and all written                             comment letters on the proposal.4 On                    consistency.9 The MSRB stated that this
                                                communications relating to the                                                                                  provision would clarify that the
                                                proposed rule change between the                          13 17  CFR 200.30–3(a)(12).                           depository eligibility requirements of
                                                                                                          1 15  U.S.C. 78s(b)(1).
                                                Commission and any person, other than                      2 17 CFR 240.19b–4.
                                                                                                                                                                Rule G–34(a)(ii)(A) do not apply to
                                                those that may be withheld from the                        3 Exchange Act Release No. 81595 (September 13,
                                                                                                                                                                municipal securities included in the
                                                public in accordance with the                           2017), 82 FR 43587 (‘‘Notice’’). The comment            principles-based exception.10
                                                provisions of 5 U.S.C. 552, will be                     period closed on October 10, 2017.                         In response to concerns raised in the
                                                available for Web site viewing and                         4 See Letter to Secretary, Commission, from Leslie   comments, the MSRB also is proposing
                                                printing in the Commission’s Public                     M. Norwood, Managing Director and Associate             amending the proposed rule change to
                                                                                                        General Counsel, Securities Industry and Financial
                                                Reference Room, 100 F Street NE.,                       Markets Association (‘‘SIFMA’’), dated October 10,
                                                                                                                                                                Income, Entity, Regulatory Content and Symbology,
                                                Washington, DC 20549, on official                       2017; Letter to Secretary, Commission, from Susan
                                                                                                                                                                Bloomberg L.P., dated October 10, 2017; Letter to
                                                business days between the hours of                      Gaffney, Executive Director, National Association of
                                                                                                                                                                Secretary, Commission, from Dennis Dix, Principal,
                                                                                                        Municipal Advisors (‘‘NAMA’’), dated October 10,
                                                10:00 a.m. and 3:00 p.m. Copies of such                                                                         DIXWORKS LLC, dated October 10, 2017; Letter to
                                                                                                        2017; Letter to Secretary, Commission, from Steve
                                                                                                                                                                Secretary, Commission, from Stephan Wolf, CEO,
                                                filing will also be available for                       Apfelbacher, President, EHLERS Inc., dated October
                                                                                                                                                                Global Legal Entity Identifier Foundation
                                                inspection and copying at the principal                 10, 2017; Letter to Secretary, Commission, from
                                                                                                                                                                (‘‘GLEIF’’), dated October 9, 2017. Staff from the
                                                                                                        Noreen P. White, Co-President, and Kim W.
                                                office of the Exchange. All comments                    Whelan, Co-President, Acacia Financial Group, Inc.,
                                                                                                                                                                Office of Municipal Securities discussed the
                                                                                                                                                                proposed rule change with representatives from
                                                received will be posted without change.                 dated October 10, 2017; Letter to Secretary,            PFM Financial Advisors LLC and PFM Asset
                                                Persons submitting comments are                         Commission, from Cristeena G. Naser, Vice               Management LLC on October 26, 2017.
                                                                                                        President and Senior Counsel, American Bankers
                                                cautioned that we do not redact or edit                 Association (‘‘ABA’’), dated October 10, 2017;
                                                                                                                                                                   5 See Letter from Margaret R. Blake, Associate

                                                personal identifying information from                                                                           General Counsel, MSRB, to Secretary, SEC, dated
                                                                                                        Letter to Secretary, Commission, from Michael G.
                                                                                                                                                                November 7, 2017 (‘‘MSRB Response Letter’’),
                                                comment submissions. You should                         Sudsina, President, Sudsina & Associates, LLC,
sradovich on DSK3GMQ082PROD with NOTICES




                                                                                                                                                                available at https://www.sec.gov/comments/sr-msrb-
                                                submit only information that you wish                   dated October 10, 2017; Letter to Secretary,
                                                                                                                                                                2017-06/msrb201706-2674227-161458.pdf.
                                                                                                        Commission, from Marianne F. Edmonds, Senior
                                                to make available publicly. All                         Managing Director, Public Resources Advisory
                                                                                                                                                                   6 Amendment No. 1 is available at http://

                                                submissions should refer to File No.                                                                            www.msrb.org/∼/media/Files/SEC-Filings/2017/
                                                                                                        Group (‘‘PRAG’’), dated October 10, 2017; Letter to
                                                                                                                                                                MSRB-2017-06-A-1.ashx.
                                                SR–BatsEDGX–2017–47 and should be                       Secretary, Commission, from Emily Swenson Brock,           7 See Amendment No. 1.
                                                                                                        Director, Federal Liaison Center, Government
                                                submitted on or before December 8,                      Finance Officers Association (‘‘GFOA’’), dated
                                                                                                                                                                   8 Id.

                                                2017.                                                   October 10, 2017; Letter to Secretary, Commission,         9 Id.

                                                                                                        from Peter Warms, Senior Manager of Fixed                  10 Id.




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Document Created: 2017-11-17 05:15:01
Document Modified: 2017-11-17 05:15:01
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 54453 

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