82_FR_54681 82 FR 54460 - Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Options Pricing at Chapter XV, Section 2

82 FR 54460 - Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Options Pricing at Chapter XV, Section 2

SECURITIES AND EXCHANGE COMMISSION

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

Page Range54460-54463
FR Document2017-24931

Federal Register, Volume 82 Issue 221 (Friday, November 17, 2017)
[Federal Register Volume 82, Number 221 (Friday, November 17, 2017)]
[Notices]
[Pages 54460-54463]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-24931]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82059; File No. SR-BX-2017-051]


Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend the 
Exchange's Options Pricing at Chapter XV, Section 2

November 13, 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

[[Page 54461]]

1, 2017, Nasdaq BX, Inc. (``BX'' or ``Exchange'') filed with the 
Securities and Exchange Commission (``SEC'' or ``Commission'') the 
proposed rule change as described in Items I, II, and III below, which 
Items have been prepared by the Exchange. The Commission is publishing 
this notice to solicit comments on the proposed rule change from 
interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the Options Pricing at Chapter XV, 
Section 2, entitled ``BX Options Market--Fees and Rebates,'' which 
governs pricing for BX members using the BX Options Market (``BX 
Options''). The Exchange proposes to modify certain fees for 
transactions in options overlying Select Symbols,\3\ as further 
discussed below.
---------------------------------------------------------------------------

    \3\ The following are Select Symbols: ASHR, DIA, DXJ, EEM, EFA, 
EWJ, EWT, EWW, EWY, EWZ, FAS, FAZ, FXE, FXI, FXP, GDX, GLD, HYG, 
IWM, IYR, KRE, OIH, QID, QLD, QQQ, RSX, SDS, SKF, SLV, SRS, SSO, 
TBT, TLT, TNA, TZA, UNG, URE, USO, UUP, UVXY, UYG, VXX, XHB, XLB, 
XLE, XLF, XLI, XLK, XLP, XLU, XLV, XLY, XME, XOP, XRT. See Chapter 
XV, Section 2(1).
---------------------------------------------------------------------------

    The text of the proposed rule change is available on the Exchange's 
Web site at http://nasdaqbx.cchwallstreet.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 aspects of such 
statements.

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

1. Purpose
    The Exchange proposes to amend Chapter XV, Section 2(1), which 
includes pricing for transactions in Select Symbol options, to increase 
the Firm \4\ fee to add liquidity and fee to remove liquidity in Select 
Symbols. Select Symbols represent some of the highest volume Penny 
Pilot options traded on the Exchange and in the industry. The fees and 
rebates applicable to Select Symbol options in Chapter XV, Section 2(1) 
are designed to attract more order flow to BX Options, particularly in 
these high volume symbols, and apply to Customers,\5\ BX Options Market 
Makers,\6\ Non-Customers \7\ and Firms as follows:
---------------------------------------------------------------------------

    \4\ The term ``Firm'' or (``F'') applies to any transaction that 
is identified by a Participant for clearing in the Firm range at 
OCC. See Chapter XV.
    \5\ The term ``Customer'' or (``C'') applies to any transaction 
that is identified by a Participant for clearing in the Customer 
range at OCC which is not for the account of broker or dealer or for 
the account of a ``Professional'' (as that term is defined in 
Chapter I, Section 1(a)(48)). See Chapter XV.
    \6\ The term ``BX Options Market Maker'' or (``M'') is a 
Participant that has registered as a Market Maker on BX Options 
pursuant to Chapter VII, Section 2, and must also remain in good 
standing pursuant to Chapter VII, Section 4. In order to receive 
Market Maker pricing in all securities, the Participant must be 
registered as a BX Options Market Maker in at least one security. 
See Chapter XV.
    \7\ As set forth in note 1 to Chapter XV, Section 2(1), a Non-
Customer includes a Professional, Broker-Dealer and Non-BX Options 
Market Maker.
---------------------------------------------------------------------------

    (1) Fees for Execution of Contracts on the BX Options Market:
* * * * *

                                                          Select Symbols Options Tier Schedule
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Rebate to add      Fee to add       Rebate to      Fee to remove      Fee to add
--------------------------------------------------------------------    liquidity        liquidity          remove         liquidity        liquidity
                                               When:                ----------------------------------    liquidity    ---------------------------------
--------------------------------------------------------------------     Customer        BX options   -----------------    BX options       BX options
                                                                    -----------------   market maker       Customer       market maker     market maker
                                                                                     -------------------------------------------------------------------
                                                                     Non-customer or                   Non-customer or                   Non-customer or
                                           Trading with:                BX options                        BX options                        BX options
                                                                      market maker,       Customer      market maker,       Customer      market maker,
                                                                         or firm                           or firm                           or firm
--------------------------------------------------------------------------------------------------------------------------------------------------------
Tier 1........................  Participant executes less than                 $0.00            $0.44            $0.00            $0.42            $0.14
                                 0.05% of total industry customer
                                 equity and ETF option ADV
                                 contracts per month.
Tier 2........................  Participant executes 0.05% to less              0.10             0.44             0.25             0.42             0.10
                                 than 0.15% of total industry
                                 customer equity and ETF option ADV
                                 contracts per month.
Tier 3........................  Participant executes 0.15% or more              0.20             0.40             0.37             0.39             0.04
                                 of total industry customer equity
                                 and ETF option ADV contracts per
                                 month.
Tier 4........................  Participant executes greater than               0.25             0.29             0.37             0.25             0.00
                                 10,000 PRISM Agency Contracts per
                                 month; or Participant executes BX
                                 Options Market Maker volume of
                                 0.30% or more of total industry
                                 customer equity and ETF options
                                 ADV per month.
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 54462]]

BX Options Select Symbol List

    The following are Select Symbols: ASHR, DIA, DXJ, EEM, EFA, EWJ, 
EWT, EWW, EWY, EWZ, FAS, FAZ, FXE, FXI, FXP, GDX, GLD, HYG, IWM, IYR, 
KRE, OIH, QID, QLD, QQQ, RSX, SDS, SKF, SLV, SRS, SSO, TBT, TLT, TNA, 
TZA, UNG, URE, USO, UUP, UVXY, UYG, VXX, XHB, XLB, XLE, XLF, XLI, XLK, 
XLP, XLU, XLV, XLY, XME, XOP, XRT.
     Firm fee to add liquidity and fee to remove liquidity in 
Select Symbols Options will be $0.33 per contract, regardless of 
counterparty.
     Non-Customer fee to add liquidity and fee to remove 
liquidity in Select Symbols Options will be $0.46 per contract, 
regardless of counterparty.
     BX Options Market Maker fee to remove liquidity in Select 
Symbols Options will be $0.46 per contract when trading with Firm, Non-
Customer, or BX Options Market Maker.
     Customer fee to add liquidity in Select Symbols Options 
when contra to another Customer is $0.33 per contract.
     Volume from all products listed on BX Options will apply 
to the Select Symbols Options Tiers.
* * * * *
    The Exchange proposes to increase the $0.33 per contract Firm fee 
to add liquidity and fee to remove liquidity in Select Symbols to raise 
revenue for the Exchange and help defray costs. As proposed, the Firm 
fee to add liquidity and fee to remove liquidity in Select Symbols will 
be $0.37 per contract, regardless of counterparty. The pricing for all 
other transactions in Select Symbol options as set forth above will 
remain unchanged.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\8\ in general, and furthers the objectives of Sections 
6(b)(4) and 6(b)(5) of the Act,\9\ in particular, in that it provides 
for the equitable allocation of reasonable dues, fees and other charges 
among members and issuers and other persons using any facility, and is 
not designed to permit unfair discrimination between customers, 
issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The Exchange believes that its proposal to increase the Firm fee to 
add liquidity and fee to remove liquidity in Select Symbols, as 
discussed above, is reasonable because the proposed change is a modest 
increase to help defray costs and remains lower than the Firm fee to 
add liquidity and fee to remove liquidity in all other Penny Pilot 
options that are not options in Select Symbols.\10\ As discussed above, 
the pricing for all other transactions in Select Symbol options will 
remain unchanged. Furthermore, the Exchange notes that the proposed 
Firm fees for Select Symbols remain competitive with the fees of other 
options markets.\11\ Accordingly, the Exchange believes that despite 
the proposed increase in Firm fees as described above, the pricing 
model in Chapter XV, Section 2(1) for Select Symbols will continue to 
attract order flow to BX Options, particularly in these high volume 
symbols, to the benefit of all market participants.
---------------------------------------------------------------------------

    \10\ The Exchange currently charges a $0.45 per contract Firm 
fee to add liquidity and a $0.46 per contract Firm fee to remove 
liquidity in all other Penny Pilot options that are not in Select 
Symbol options. See Chapter XV, Section 2(1).
    \11\ See, e.g., MIAX Options Fee Schedule at: https://www.miaxoptions.com/sites/default/files/fee_schedule-files/MIAX_Options_Fee_Schedule_10112017.pdf. See also, e.g., Nasdaq PHLX 
LLC Pricing Schedule at: http://nasdaqphlx.cchwallstreet.com/NASDAQPHLXTools/PlatformViewer.asp?selectednode=chp_1_4_1&manual=%2Fnasdaqomxphlx%2Fphlx%2Fphlx-rulesbrd%2F.
---------------------------------------------------------------------------

    The Exchange also believes that the proposed increase of the Firm 
fee to add liquidity and fee to remove liquidity in Select Symbols is 
equitable and not unfairly discriminatory because the Exchange will 
apply the same fee to all similarly situated members. For the reasons 
discussed above, the proposed fee continues to provide an incentive for 
Firms to transact order flow on the Exchange, which order flow brings 
increased liquidity to the Exchange for the benefit of all Exchange 
participants. To the extent the purpose of the proposed Firm fee is 
achieved, all market participants should benefit from the improved 
market liquidity.

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 the proposed Firm fees for Select Symbol options 
remain competitive with those on other options markets and will 
continue to attract order flow to the Exchange. The Exchange notes that 
it operates in a highly competitive market in which market participants 
can readily favor competing venues if they deem fee levels at a 
particular venue to be excessive, or rebate opportunities available at 
other venues to be more favorable. In such an environment, the Exchange 
must continually review, and consider adjusting, its fees and rebates 
to remain competitive with other exchanges. For the reasons described 
above, the Exchange believes that the proposed fee changes reflect this 
competitive environment.

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

    No written comments were either solicited or received.

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)(ii) of the Act.\12\
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

    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: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) otherwise in furtherance of the 
purposes of the Act. If the Commission takes such action, the 
Commission shall institute proceedings to determine whether the 
proposed rule should be approved or disapproved.

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-BX-2017-051 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 Number SR-BX-2017-051. 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

[[Page 54463]]

change that are filed with the Commission, and all written 
communications relating to the proposed rule change between the 
Commission and any person, other than those that may be withheld from 
the public in accordance with the provisions of 5 U.S.C. 552, will be 
available for Web site viewing and printing in the Commission's Public 
Reference Room, 100 F Street NE., Washington, DC 20549 on official 
business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of 
the filing also will be available for inspection and copying at the 
principal office of the Exchange. All comments received will be posted 
without change. 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-BX-
2017-051, 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\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-24931 Filed 11-16-17; 8:45 am]
 BILLING CODE 8011-01-P



                                                54460                       Federal Register / Vol. 82, No. 221 / Friday, November 17, 2017 / Notices

                                                volume threshold, and members may                       $0.0027 rebate over successive months                    file number should be included on the
                                                always elect to qualify for the                         than the criteria to qualify for the                     subject line if email is used. To help the
                                                corresponding fee by adding sufficient                  $0.0025 rebate. Ultimately, if members                   Commission process and review your
                                                liquidity to the Exchange to meet the                   conclude that the qualification                          comments more efficiently, please use
                                                new volume requirement. As such, the                    requirements for the remaining tier in                   only one method. The Commission will
                                                Exchange believes that the proposed                     the Growth Program are set too high, or                  post all comments on the Commission’s
                                                volume threshold will not negatively                    the rebate too low, it is likely that the                Internet Web site (http://www.sec.gov/
                                                impact who will qualify for the                         Exchange will realize very little benefit                rules/sro.shtml). Copies of the
                                                corresponding transaction fee, but will                 from the Growth Program. Accordingly,                    submission, all subsequent
                                                rather have a positive impact on overall                the Exchange does not believe that this                  amendments, all written statements
                                                market quality as QMMs increase their                   proposed change will impair the ability                  with respect to the proposed rule
                                                participation in the market to qualify for              of members or competing order                            change that are filed with the
                                                those fees. If, however, the Exchange is                execution venues to maintain their                       Commission, and all written
                                                incorrect and the changes proposed                      competitive standing in the financial                    communications relating to the
                                                herein are unattractive to QMMs, it is                  markets.                                                 proposed rule change between the
                                                likely that Nasdaq will lose market                                                                              Commission and any person, other than
                                                                                                        C. Self-Regulatory Organization’s                        those that may be withheld from the
                                                share as a result. Accordingly, Nasdaq
                                                                                                        Statement on Comments on the                             public in accordance with the
                                                does not believe that the proposed
                                                                                                        Proposed Rule Change Received From                       provisions of 5 U.S.C. 552, will be
                                                change will impair the ability of
                                                                                                        Members, Participants, or Others                         available for Web site viewing and
                                                members or competing order execution
                                                venues to maintain their competitive                      No written comments were either                        printing in the Commission’s Public
                                                standing in the financial markets.                      solicited or received.                                   Reference Room, 100 F Street NE.,
                                                   Similarly, Nasdaq believes that the                                                                           Washington, DC 20549 on official
                                                                                                        III. Date of Effectiveness of the                        business days between the hours of
                                                elimination of the $0.0025 rebate tier for              Proposed Rule Change and Timing for
                                                the Growth Program does not impose a                                                                             10:00 a.m. and 3:00 p.m. Copies of the
                                                                                                        Commission Action                                        filing also will be available for
                                                burden on competition because the
                                                                                                           The foregoing rule change has become                  inspection and copying at the principal
                                                Exchange’s execution services are
                                                                                                        effective pursuant to Section                            office of the Exchange. All comments
                                                completely voluntary and subject to
                                                                                                        19(b)(3)(A)(ii) of the Act.14                            received will be posted without change.
                                                extensive competition both from other                      At any time within 60 days of the                     Persons submitting comments are
                                                exchanges and from off-exchange                         filing of the proposed rule change, the                  cautioned that we do not redact or edit
                                                venues. Nasdaq notes that the $0.0025                   Commission summarily may                                 personal identifying information from
                                                rebate tier will be eliminated for all                  temporarily suspend such rule change if                  comment submissions. You should
                                                members. Additionally, all members                      it appears to the Commission that such                   submit only information that you wish
                                                may continue to qualify for the                         action is: (i) Necessary or appropriate in               to make available publicly. All
                                                remaining $0.0027 rebate tier if they                   the public interest; (ii) for the protection             submissions should refer to File
                                                meet the qualifying criteria, e.g., the                 of investors; or (iii) otherwise in                      Number SR–NASDAQ–2017–119, and
                                                member adds at least 0.04% or more of                   furtherance of the purposes of the Act.                  should be submitted on or before
                                                Consolidated Volume during the month                    If the Commission takes such action, the                 December 8, 2017.
                                                through non-displayed orders through                    Commission shall institute proceedings
                                                one or more of its Nasdaq Market Center                                                                            For the Commission, by the Division of
                                                                                                        to determine whether the proposed rule                   Trading and Markets, pursuant to delegated
                                                MPIDs. The Exchange believes that                       should be approved or disapproved.                       authority.15
                                                eliminating the $0.0025 rebate tier,
                                                                                                        IV. Solicitation of Comments                             Eduardo A. Aleman,
                                                while maintaining the $0.0027 rebate
                                                tier, will not significantly impact the                                                                          Assistant Secretary.
                                                                                                          Interested persons are invited to
                                                number of members that will qualify for                                                                          [FR Doc. 2017–24934 Filed 11–16–17; 8:45 am]
                                                                                                        submit written data, views, and
                                                the Growth Program. Unlike the $0.0025                  arguments concerning the foregoing,
                                                                                                                                                                 BILLING CODE 8011–01–P
                                                rebate, which requires a member to                      including whether the proposed rule
                                                show an increase in Consolidated                        change is consistent with the Act.
                                                Volume compared to the member’s                                                                                  SECURITIES AND EXCHANGE
                                                                                                        Comments may be submitted by any of                      COMMISSION
                                                Growth Baseline, with each successive                   the following methods:
                                                month maintaining or improving upon                                                                              [Release No. 34–82059; File No. SR–BX–
                                                that baseline to continue to qualify for                Electronic Comments                                      2017–051]
                                                the rebate, the $0.0027 rebate requires                   • Use the Commission’s Internet
                                                an initial significant increase in                      comment form (http://www.sec.gov/                        Self-Regulatory Organizations; Nasdaq
                                                Consolidated Volume compared to that                    rules/sro.shtml); or                                     BX, Inc.; Notice of Filing and
                                                member’s share of liquidity provided in                   • Send an email to rule-comments@                      Immediate Effectiveness of Proposed
                                                all securities in August 2016, with the                 sec.gov. Please include File Number SR–                  Rule Change To Amend the
                                                member maintaining that level to                        NASDAQ–2017–119 on the subject line.                     Exchange’s Options Pricing at Chapter
                                                continue receiving the $0.0027 rebate.                                                                           XV, Section 2
                                                Thus, the measure against which                         Paper Comments
                                                                                                                                                                 November 13, 2017.
                                                Consolidated Volume is compared                           • Send paper comments in triplicate
sradovich on DSK3GMQ082PROD with NOTICES




                                                                                                                                                                    Pursuant to Section 19(b)(1) of the
                                                remains static month to month under                     to Secretary, Securities and Exchange                    Securities Exchange Act of 1934
                                                the criteria of the $0.0027 rebate,                     Commission, 100 F Street NE.,                            (‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                whereas it can vary month to month                      Washington, DC 20549–1090.                               notice is hereby given that on November
                                                under the qualification criteria for the                All submissions should refer to File
                                                $0.0025 rebate. Nasdaq believes that                    Number SR–NASDAQ–2017–119. This                            15 17 CFR 200.30–3(a)(12).
                                                members may therefore be more able to                                                                              1 15 U.S.C. 78s(b)(1).
                                                satisfy the criteria to qualify for the                   14 15   U.S.C. 78s(b)(3)(A)(ii).                         2 17 CFR 240.19b–4.




                                           VerDate Sep<11>2014   18:32 Nov 16, 2017   Jkt 244001   PO 00000   Frm 00145     Fmt 4703    Sfmt 4703   E:\FR\FM\17NON1.SGM    17NON1


                                                                              Federal Register / Vol. 82, No. 221 / Friday, November 17, 2017 / Notices                                                       54461

                                                1, 2017, Nasdaq BX, Inc. (‘‘BX’’ or                       at the principal office of the Exchange,                 A. Self-Regulatory Organization’s
                                                ‘‘Exchange’’) filed with the Securities                   and at the Commission’s Public                           Statement of the Purpose of, and
                                                and Exchange Commission (‘‘SEC’’ or                       Reference Room.                                          Statutory Basis for, the Proposed Rule
                                                ‘‘Commission’’) the proposed rule                                                                                  Change
                                                change as described in Items I, II, and                   II. Self-Regulatory Organization’s
                                                                                                          Statement of the Purpose of, and                         1. Purpose
                                                III below, which Items have been
                                                prepared by the Exchange. The                             Statutory Basis for, the Proposed Rule                      The Exchange proposes to amend
                                                Commission is publishing this notice to                   Change                                                   Chapter XV, Section 2(1), which
                                                solicit comments on the proposed rule                                                                              includes pricing for transactions in
                                                                                                            In its filing with the Commission, the                 Select Symbol options, to increase the
                                                change from interested persons.
                                                                                                          Exchange included statements                             Firm 4 fee to add liquidity and fee to
                                                I. Self-Regulatory Organization’s                         concerning the purpose of and basis for                  remove liquidity in Select Symbols.
                                                Statement of the Terms of Substance of                    the proposed rule change and discussed                   Select Symbols represent some of the
                                                the Proposed Rule Change                                  any comments it received on the                          highest volume Penny Pilot options
                                                   The Exchange proposes to amend the                     proposed rule change. The text of these                  traded on the Exchange and in the
                                                Options Pricing at Chapter XV, Section                    statements may be examined at the                        industry. The fees and rebates
                                                2, entitled ‘‘BX Options Market—Fees                      places specified in Item IV below. The                   applicable to Select Symbol options in
                                                and Rebates,’’ which governs pricing for                  Exchange has prepared summaries, set                     Chapter XV, Section 2(1) are designed to
                                                BX members using the BX Options                           forth in sections A, B, and C below, of                  attract more order flow to BX Options,
                                                Market (‘‘BX Options’’). The Exchange                     the most significant aspects of such                     particularly in these high volume
                                                proposes to modify certain fees for                       statements.                                              symbols, and apply to Customers,5 BX
                                                transactions in options overlying Select                                                                           Options Market Makers,6 Non-
                                                Symbols,3 as further discussed below.                                                                              Customers 7 and Firms as follows:
                                                   The text of the proposed rule change                                                                               (1) Fees for Execution of Contracts on
                                                is available on the Exchange’s Web site                                                                            the BX Options Market:
                                                at http://nasdaqbx.cchwallstreet.com/,                                                                             *      *     *    *     *

                                                                                                       SELECT SYMBOLS OPTIONS TIER SCHEDULE
                                                                                                                 Rebate to add           Fee to add          Rebate to           Fee to remove          Fee to add
                                                                                                                   liquidity              liquidity        remove liquidity         liquidity            liquidity
                                                                   When:
                                                                                                                    Customer            BX options             Customer           BX options           BX options
                                                                                                                                       market maker                              market maker         market maker
                                                                                                                 Non-customer                               Non-customer                              Non-customer
                                                                   Trading with:                                 or BX options                              or BX options                             or BX options
                                                                                                                 market maker,           Customer           market maker,           Customer          market maker,
                                                                                                                     or firm                                    or firm                                   or firm

                                                Tier 1 .........   Participant executes less than 0.05%                     $0.00                  $0.44               $0.00                $0.42                $0.14
                                                                     of total industry customer equity
                                                                     and ETF option ADV contracts per
                                                                     month.
                                                Tier 2 .........   Participant executes 0.05% to less                         0.10                  0.44                 0.25                0.42                 0.10
                                                                     than 0.15% of total industry cus-
                                                                     tomer equity and ETF option ADV
                                                                     contracts per month.
                                                Tier 3 .........   Participant executes 0.15% or more                         0.20                  0.40                 0.37                 0.39                0.04
                                                                     of total industry customer equity
                                                                     and ETF option ADV contracts per
                                                                     month.
                                                Tier 4 .........   Participant executes greater than                          0.25                  0.29                 0.37                 0.25                0.00
                                                                     10,000 PRISM Agency Contracts
                                                                     per month; or Participant executes
                                                                     BX Options Market Maker volume
                                                                     of 0.30% or more of total industry
                                                                     customer equity and ETF options
                                                                     ADV per month.




                                                   3 The following are Select Symbols: ASHR, DIA,            5 The term ‘‘Customer’’ or (‘‘C’’) applies to any     receive Market Maker pricing in all securities, the
                                                DXJ, EEM, EFA, EWJ, EWT, EWW, EWY, EWZ,                   transaction that is identified by a Participant for
sradovich on DSK3GMQ082PROD with NOTICES




                                                                                                                                                                   Participant must be registered as a BX Options
                                                FAS, FAZ, FXE, FXI, FXP, GDX, GLD, HYG, IWM,              clearing in the Customer range at OCC which is not       Market Maker in at least one security. See Chapter
                                                IYR, KRE, OIH, QID, QLD, QQQ, RSX, SDS, SKF,              for the account of broker or dealer or for the account   XV.
                                                SLV, SRS, SSO, TBT, TLT, TNA, TZA, UNG, URE,              of a ‘‘Professional’’ (as that term is defined in          7 As set forth in note 1 to Chapter XV, Section
                                                USO, UUP, UVXY, UYG, VXX, XHB, XLB, XLE,                  Chapter I, Section 1(a)(48)). See Chapter XV.
                                                XLF, XLI, XLK, XLP, XLU, XLV, XLY, XME, XOP,                 6 The term ‘‘BX Options Market Maker’’ or (‘‘M’’)     2(1), a Non-Customer includes a Professional,
                                                XRT. See Chapter XV, Section 2(1).                        is a Participant that has registered as a Market         Broker-Dealer and Non-BX Options Market Maker.
                                                   4 The term ‘‘Firm’’ or (‘‘F’’) applies to any          Maker on BX Options pursuant to Chapter VII,
                                                transaction that is identified by a Participant for       Section 2, and must also remain in good standing
                                                clearing in the Firm range at OCC. See Chapter XV.        pursuant to Chapter VII, Section 4. In order to



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                                                54462                           Federal Register / Vol. 82, No. 221 / Friday, November 17, 2017 / Notices

                                                BX Options Select Symbol List                              that are not options in Select Symbols.10             exchanges. For the reasons described
                                                   The following are Select Symbols:                       As discussed above, the pricing for all               above, the Exchange believes that the
                                                ASHR, DIA, DXJ, EEM, EFA, EWJ, EWT,                        other transactions in Select Symbol                   proposed fee changes reflect this
                                                EWW, EWY, EWZ, FAS, FAZ, FXE, FXI,                         options will remain unchanged.                        competitive environment.
                                                FXP, GDX, GLD, HYG, IWM, IYR, KRE,                         Furthermore, the Exchange notes that
                                                                                                                                                                 C. Self-Regulatory Organization’s
                                                OIH, QID, QLD, QQQ, RSX, SDS, SKF,                         the proposed Firm fees for Select
                                                                                                           Symbols remain competitive with the                   Statement on Comments on the
                                                SLV, SRS, SSO, TBT, TLT, TNA, TZA,                                                                               Proposed Rule Change Received From
                                                UNG, URE, USO, UUP, UVXY, UYG,                             fees of other options markets.11
                                                                                                           Accordingly, the Exchange believes that               Members, Participants, or Others
                                                VXX, XHB, XLB, XLE, XLF, XLI, XLK,
                                                                                                           despite the proposed increase in Firm                   No written comments were either
                                                XLP, XLU, XLV, XLY, XME, XOP, XRT.
                                                                                                           fees as described above, the pricing                  solicited or received.
                                                   • Firm fee to add liquidity and fee to
                                                                                                           model in Chapter XV, Section 2(1) for                 III. Date of Effectiveness of the
                                                remove liquidity in Select Symbols
                                                                                                           Select Symbols will continue to attract
                                                Options will be $0.33 per contract,                                                                              Proposed Rule Change and Timing for
                                                                                                           order flow to BX Options, particularly
                                                regardless of counterparty.                                                                                      Commission Action
                                                                                                           in these high volume symbols, to the
                                                   • Non-Customer fee to add liquidity                                                                              The foregoing rule change has become
                                                                                                           benefit of all market participants.
                                                and fee to remove liquidity in Select                         The Exchange also believes that the                effective pursuant to Section
                                                Symbols Options will be $0.46 per                          proposed increase of the Firm fee to add              19(b)(3)(A)(ii) of the Act.12
                                                contract, regardless of counterparty.                      liquidity and fee to remove liquidity in                 At any time within 60 days of the
                                                   • BX Options Market Maker fee to                        Select Symbols is equitable and not                   filing of the proposed rule change, the
                                                remove liquidity in Select Symbols                         unfairly discriminatory because the                   Commission summarily may
                                                Options will be $0.46 per contract when                    Exchange will apply the same fee to all               temporarily suspend such rule change if
                                                trading with Firm, Non-Customer, or BX                     similarly situated members. For the                   it appears to the Commission that such
                                                Options Market Maker.                                      reasons discussed above, the proposed                 action is: (i) Necessary or appropriate in
                                                   • Customer fee to add liquidity in                                                                            the public interest; (ii) for the protection
                                                                                                           fee continues to provide an incentive for
                                                Select Symbols Options when contra to                                                                            of investors; or (iii) otherwise in
                                                                                                           Firms to transact order flow on the
                                                another Customer is $0.33 per contract.                                                                          furtherance of the purposes of the Act.
                                                                                                           Exchange, which order flow brings
                                                   • Volume from all products listed on                                                                          If the Commission takes such action, the
                                                                                                           increased liquidity to the Exchange for
                                                BX Options will apply to the Select                                                                              Commission shall institute proceedings
                                                                                                           the benefit of all Exchange participants.
                                                Symbols Options Tiers.                                                                                           to determine whether the proposed rule
                                                                                                           To the extent the purpose of the
                                                *     *     *     *     *                                  proposed Firm fee is achieved, all                    should be approved or disapproved.
                                                   The Exchange proposes to increase                       market participants should benefit from
                                                the $0.33 per contract Firm fee to add                                                                           IV. Solicitation of Comments
                                                                                                           the improved market liquidity.
                                                liquidity and fee to remove liquidity in                                                                           Interested persons are invited to
                                                Select Symbols to raise revenue for the                    B. Self-Regulatory Organization’s                     submit written data, views, and
                                                Exchange and help defray costs. As                         Statement on Burden on Competition                    arguments concerning the foregoing,
                                                proposed, the Firm fee to add liquidity                      The Exchange does not believe that                  including whether the proposed rule
                                                and fee to remove liquidity in Select                      the proposed rule change will impose                  change is consistent with the Act.
                                                Symbols will be $0.37 per contract,                        any burden on competition not                         Comments may be submitted by any of
                                                regardless of counterparty. The pricing                    necessary or appropriate in furtherance               the following methods:
                                                for all other transactions in Select                       of the purposes of the Act. As discussed              Electronic Comments
                                                Symbol options as set forth above will                     above, the Exchange believes that the
                                                remain unchanged.                                          proposed Firm fees for Select Symbol                    • Use the Commission’s Internet
                                                                                                           options remain competitive with those                 comment form (http://www.sec.gov/
                                                2. Statutory Basis                                                                                               rules/sro.shtml); or
                                                                                                           on other options markets and will
                                                   The Exchange believes that its                          continue to attract order flow to the                   • Send an email to rule-comments@
                                                proposal is consistent with Section 6(b)                   Exchange. The Exchange notes that it                  sec.gov. Please include File Number SR–
                                                of the Act,8 in general, and furthers the                  operates in a highly competitive market               BX–2017–051 on the subject line.
                                                objectives of Sections 6(b)(4) and 6(b)(5)                 in which market participants can                      Paper Comments
                                                of the Act,9 in particular, in that it                     readily favor competing venues if they
                                                provides for the equitable allocation of                   deem fee levels at a particular venue to                • Send paper comments in triplicate
                                                reasonable dues, fees and other charges                    be excessive, or rebate opportunities                 to Secretary, Securities and Exchange
                                                among members and issuers and other                        available at other venues to be more                  Commission, 100 F Street NE.,
                                                persons using any facility, and is not                     favorable. In such an environment, the                Washington, DC 20549–1090.
                                                designed to permit unfair                                  Exchange must continually review, and                 All submissions should refer to File
                                                discrimination between customers,                          consider adjusting, its fees and rebates              Number SR–BX–2017–051. This file
                                                issuers, brokers, or dealers.                              to remain competitive with other                      number should be included on the
                                                   The Exchange believes that its                                                                                subject line if email is used. To help the
                                                proposal to increase the Firm fee to add                      10 The Exchange currently charges a $0.45 per      Commission process and review your
                                                liquidity and fee to remove liquidity in                   contract Firm fee to add liquidity and a $0.46 per    comments more efficiently, please use
                                                Select Symbols, as discussed above, is                     contract Firm fee to remove liquidity in all other    only one method. The Commission will
                                                                                                           Penny Pilot options that are not in Select Symbol
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                                                reasonable because the proposed change                     options. See Chapter XV, Section 2(1).
                                                                                                                                                                 post all comments on the Commission’s
                                                is a modest increase to help defray costs                     11 See, e.g., MIAX Options Fee Schedule at:        Internet Web site (http://www.sec.gov/
                                                and remains lower than the Firm fee to                     https://www.miaxoptions.com/sites/default/files/      rules/sro.shtml). Copies of the
                                                add liquidity and fee to remove                            fee_schedule-files/MIAX_Options_Fee_Schedule_         submission, all subsequent
                                                                                                           10112017.pdf. See also, e.g., Nasdaq PHLX LLC         amendments, all written statements
                                                liquidity in all other Penny Pilot options                 Pricing Schedule at: http://nasdaqphlx.cchwall
                                                                                                           street.com/NASDAQPHLXTools/PlatformViewer.            with respect to the proposed rule
                                                  8 15   U.S.C. 78f(b).                                    asp?selectednode=chp_1_4_1&manual=%2
                                                  9 15   U.S.C. 78f(b)(4) and (5).                         Fnasdaqomxphlx%2Fphlx%2Fphlx-rulesbrd%2F.               12 15   U.S.C. 78s(b)(3)(A)(ii).



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                                                                              Federal Register / Vol. 82, No. 221 / Friday, November 17, 2017 / Notices                                                  54463

                                                change that are filed with the                            FOR FURTHER INFORMATION CONTACT:      A.              Discontinuances of Service to
                                                Commission, and all written                               Escobar, Office of Disaster Assistance,               discontinue service over approximately
                                                communications relating to the                            U.S. Small Business Administration,                   13.65 miles of rail line from milepost ZF
                                                proposed rule change between the                          409 3rd Street SW., Suite 6050,                       0.0 to milepost ZF 13.65 on CSXT’s
                                                Commission and any person, other than                     Washington, DC 20416, (202) 205–6734.                 Southern Region, Florence Division,
                                                those that may be withheld from the                       SUPPLEMENTARY INFORMATION: The notice                 Kingsport Subdivision in Dickenson
                                                public in accordance with the                             of the President’s major disaster                     County, Va. (the Line). The Line
                                                provisions of 5 U.S.C. 552, will be                       declaration for the Commonwealth of                   traverses United States Postal Service
                                                available for Web site viewing and                        PUERTO RICO, dated 09/10/2017, is                     Zip Codes 24226, 24228, and 24230.
                                                printing in the Commission’s Public                       hereby amended to extend the deadline                 CSXT states that there are 12 internal
                                                Reference Room, 100 F Street NE.,                         for filing applications for physical                  CSXT stations on the line that can be
                                                Washington, DC 20549 on official                          damages as a result of this disaster to               closed.1
                                                business days between the hours of                        03/20/2018.                                              CSXT has certified that: (1) No local
                                                10:00 a.m. and 3:00 p.m. Copies of the                      All other information in the original               traffic has moved over the Line for at
                                                filing also will be available for                         declaration remains unchanged.                        least two years; (2) overhead traffic on
                                                inspection and copying at the principal                                                                         the Line can be rerouted over other
                                                office of the Exchange. All comments                      (Catalog of Federal Domestic Assistance
                                                                                                          Number 59008)
                                                                                                                                                                lines; (3) no formal complaint filed by
                                                received will be posted without change.                                                                         a user of a rail service on the Line (or
                                                Persons submitting comments are                           James E. Rivera,                                      by a state or local government entity
                                                cautioned that we do not redact or edit                   Associate Administrator for Disaster                  acting on behalf of such user) regarding
                                                personal identifying information from                     Assistance.                                           cessation of service over the Line is
                                                comment submissions. You should                           [FR Doc. 2017–24916 Filed 11–16–17; 8:45 am]          either pending with the Surface
                                                submit only information that you wish                     BILLING CODE 8025–01–P                                Transportation Board or with any U.S.
                                                to make available publicly. All                                                                                 District Court or has been decided in
                                                submissions should refer to File                                                                                favor of a complainant within the two-
                                                Number SR–BX–2017–051, and should                                                                               year period; and (4) the requirements at
                                                be submitted on or before December 8,                     DEPARTMENT OF STATE
                                                                                                                                                                49 CFR 1105.12 (newspaper
                                                2017.                                                     [Public Notice 10204]                                 publication) and 49 CFR 1152.50(d)(1)
                                                  For the Commission, by the Division of                                                                        (notice to governmental agencies) have
                                                Trading and Markets, pursuant to delegated                Determination Under Section                           been met.
                                                authority.13                                              7070(c)(1) of the Department of State,                   As a condition to this exemption, any
                                                Eduardo A. Aleman,                                        Foreign Operations, and Related                       employee adversely affected by the
                                                Assistant Secretary.                                      Programs Appropriations Act, 2017                     discontinuance of service shall be
                                                [FR Doc. 2017–24931 Filed 11–16–17; 8:45 am]
                                                                                                          Regarding the Central Government of                   protected under Oregon Short Line
                                                                                                          Nicaragua                                             Railroad—Abandonment Portion
                                                BILLING CODE 8011–01–P
                                                                                                            Pursuant to section 7070(c)(1) of the               Goshen Branch Between Firth &
                                                                                                          Department of State, Foreign                          Ammon, in Bingham & Bonneville
                                                SMALL BUSINESS ADMINISTRATION                             Operations, and Related Programs                      Counties, Idaho, 360 I.C.C. 91 (1979). To
                                                                                                          Appropriations Act, 2017 (Div. J, Pub. L.             address whether this condition
                                                [Disaster Declaration #15298 and #15299;                                                                        adequately protects affected employees,
                                                PUERTO RICO Disaster Number PR–00029]                     115–31), I hereby determine that the
                                                                                                          Government of Nicaragua has                           a petition for partial revocation under
                                                Presidential Declaration Amendment of                     recognized the independence of, or has                49 U.S.C. 10502(d) must be filed.
                                                a Major Disaster for the                                  established diplomatic relations with,                   Provided no formal expression of
                                                Commonwealth of Puerto Rico                               the Georgian territories of Abkhazia and              intent to file an offer of financial
                                                                                                          Tskhinvali Region/South Ossetia.                      assistance (OFA) to subsidize continued
                                                AGENCY: U.S. Small Business                                                                                     rail service has been received, this
                                                                                                            This determination shall be published
                                                Administration.                                                                                                 exemption will be effective on
                                                                                                          in the Federal Register and, along with
                                                ACTION: Amendment 4.                                      the accompanying Memorandum of                        December 17, 2017, unless stayed
                                                                                                          Justification, shall be reported to                   pending reconsideration. Petitions to
                                                SUMMARY:   This is an amendment of the
                                                                                                          Congress.                                             stay that do not involve environmental
                                                Presidential declaration of a major
                                                                                                                                                                issues and formal expressions of intent
                                                disaster for the Commonwealth of                          Rex W. Tillerson,                                     to file an OFA to subsidize continued
                                                Puerto Rico (FEMA–4336–DR), dated                         Secretary of State.                                   rail service under 49 CFR 1152.27(c)(2) 2
                                                09/10/2017.
                                                  Incident: Hurricane Irma.                               [FR Doc. 2017–24963 Filed 11–16–17; 8:45 am]          must be filed by November 27, 2017.3
                                                  Incident Period: 09/05/2017 through                     BILLING CODE 4710–29–P
                                                                                                                                                                  1 These stations are at Caney, Cranes Nest DTC,
                                                09/07/2017.
                                                                                                                                                                Dickenson, Cranes Nest, Holly Creek, Crabtree,
                                                DATES: Issued on 11/10/2017.                                                                                    Clintwood Mills, Mullin, Delp, Victor, Lick Fork,
                                                  Physical Loan Application Deadline                      SURFACE TRANSPORTATION BOARD                          and Phipps.
                                                Date: 03/20/2018.                                                                                                 2 Each OFA must be accompanied by the filing
                                                                                                          [Docket No. AB 55 (Sub-No. 757X)]                     fee, which currently is set at $1,800. See
                                                  Economic Injury (EIDL) Loan
                                                                                                                                                                Regulations Governing Fees for Servs. Performed in
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                                                Application Deadline Date: 06/11/2018.                    CSX Transportation, Inc.—                             Connection with Licensing & Related Servs.—2017
                                                ADDRESSES: Submit completed loan                          Discontinuance of Service                             Update, EP 542 (Sub-No. 25), slip op. App. C at 20
                                                applications to: U.S. Small Business                      Exemption—in Dickenson County, VA                     (STB served July 28, 2017).
                                                                                                                                                                  3 Because this is a discontinuance proceeding and
                                                Administration, Processing and
                                                Disbursement Center, 14925 Kingsport                         CSX Transportation, Inc. (CSXT), has               not an abandonment, trail use/rail banking and
                                                                                                                                                                public use conditions are not appropriate. Because
                                                Road, Fort Worth, TX 76155.                               filed a verified notice of exemption                  there will be an environmental review during
                                                                                                          under 49 CFR part 1152 subpart F—                     abandonment, this discontinuance does not require
                                                  13 17   CFR 200.30–3(a)(12).                            Exempt Abandonments and                               environmental review.



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Document Created: 2017-11-17 05:15:15
Document Modified: 2017-11-17 05:15:15
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 54460 

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