82 FR 59905 - Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing of Amendment No. 2 to the Proposed Rule Change To Amend the Schedule of Fees and Assessments To Adopt a Fee Schedule To Establish Fees for Industry Members Related to the National Market System Plan Governing the Consolidated Audit Trail

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 240 (December 15, 2017)

Page Range		59905-59907
FR Document		2017-27002

Federal Register, Volume 82 Issue 240 (Friday, December 15, 2017)

[Federal Register Volume 82, Number 240 (Friday, December 15, 2017)]
[Notices]
[Pages 59905-59907]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2017-27002]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82277; File No. SR-BatsEDGX-2017-22]

Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice
of Filing of Amendment No. 2 to the Proposed Rule Change To Amend the
Schedule of Fees and Assessments To Adopt a Fee Schedule To Establish
Fees for Industry Members Related to the National Market System Plan
Governing the Consolidated Audit Trail

December 11, 2017.

I. Introduction

On May 23, 2017, Bats EDGX Exchange, Inc., n/k/a Cboe EDGX
Exchange, Inc., (``Exchange'' or ``SRO'') filed with the Securities and
Exchange Commission (``Commission''), pursuant to Section 19(b)(1) of
the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4
thereunder,\2\ a proposed rule change to adopt a fee schedule to
establish the fees for Industry Members related to the National Market
System Plan Governing the Consolidated Audit Trail (``CAT NMS Plan'').
The proposed rule change was published in the Federal Register for
comment on June 6, 2017.\3\ The Commission received seven comment
letters on the proposed rule change,\4\ and a response to comments from
the CAT NMS Plan Participants.\5\ On June 30, 2017, the Commission
temporarily suspended and initiated proceedings to determine whether to
approve or disapprove the proposed rule change.\6\ The Commission
thereafter received seven comment letters,\7\ and a response to
comments from the Participants.\8\ On November 3, 2017, the Exchange
filed Amendment No. 1 to the proposed rule change.\9\ On November 9,
2017, the Commission extended the time period within which to approve
the proposed rule change or disapprove the proposed rule change to
January 14, 2018.\10\ On December 7, 2017, the Exchange filed Amendment
No. 2 to the proposed rule change, as described in Item II, which Item
has been prepared by the Exchange. The Commission is publishing this
notice to solicit comments from interested persons on Amendment No. 2.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 80821 (May 31,
2017), 82 FR 26177 (June 6, 2017) (``Original Proposal'').
\4\ Since the CAT NMS Plan Participants' proposed rule changes
to adopt fees to be charged to Industry Members to fund the
consolidated audit trail are substantively identical, the Commission
is considering all comments received on the proposed rule changes
regardless of the comment file to which they were submitted. See
text accompanying note 12 infra, for a list of the CAT NMS Plan
Participants. See Letter from Theodore R. Lazo, Managing Director
and Associate General Counsel, Securities Industry and Financial
Markets Association, to Brent J. Fields, Secretary, Commission
(dated June 6, 2017), available at: https://www.sec.gov/comments/sr-batsbzx-2017-38/batsbzx201738-1788188-153228.pdf; Letter from
Patricia L. Cerny and Steven O'Malley, Compliance Consultants, to
Brent J. Fields, Secretary, Commission (dated June 12, 2017),
available at: https://www.sec.gov/comments/sr-cboe-2017-040/cboe2017040-1799253-153675.pdf; Letter from Daniel Zinn, General
Counsel, OTC Markets Group Inc., to Eduardo A. Aleman, Assistant
Secretary, Commission (dated June 13, 2017), available at: https://www.sec.gov/comments/sr-finra-2017-011/finra2017011-1801717-153703.pdf; Letter from Joanna Mallers, Secretary, FIA Principal
Traders Group, to Brent J. Fields, Secretary, Commission (dated June
22, 2017), available at: https://www.sec.gov/comments/sr-cboe-2017-040/cboe2017040-1819670-154195.pdf; Letter from Stuart J. Kaswell,
Executive Vice President and Managing Director, General Counsel,
Managed Funds Association, to Brent J. Fields, Secretary, Commission
(dated June 23, 2017), available at: https://www.sec.gov/comments/sr-finra-2017-011/finra2017011-1822454-154283.pdf; and Letter from
Suzanne H. Shatto, Investor, to Commission (dated June 27, 2017),
available at: https://www.sec.gov/comments/sr-batsedgx-2017-22/batsedgx201722-154443.pdf. The Commission also received a comment
letter which is not pertinent to these proposed rule changes. See
Letter from Christina Crouch, Smart Ltd., to Brent J. Fields,
Secretary, Commission (dated June 5, 2017), available at: https://www.sec.gov/comments/sr-batsbzx-2017-38/batsbzx201738-1785545-153152.htm.
\5\ See Letter from CAT NMS Plan Participants to Brent J.
Fields, Secretary, Commission (dated June 29, 2017), available at:
https://www.sec.gov/comments/sr-batsbyx-2017-11/batsbyx201711-1832632-154584.pdf.
\6\ See Securities Exchange Act Release No. 81067 (June 30,
2017), 82 FR 31656 (July 7, 2017).
\7\ See Letter from W. Hardy Callcott, Partner, Sidley Austin
LLP, to Brent J. Fields, Secretary, Commission (dated July 27,
2017), available at: https://www.sec.gov/comments/sr-batsbyx-2017-11/batsbyx201711-2148338-157737.pdf; Letter from Kevin Coleman,
General Counsel and Chief Compliance Officer, Belvedere Trading LLC,
to Brent J. Fields, Secretary, Commission (dated July 28, 2017),
available at: https://www.sec.gov/comments/sr-batsbyx-2017-11/batsbyx201711-2148360-157740.pdf; Letter from Joanna Mallers,
Secretary, FIA Principal Traders Group, to Brent J. Fields,
Secretary, Commission (dated July 28, 2017), available at: https://www.sec.gov/comments/sr-batsbyx-2017-11/batsbyx201711-2151228-157745.pdf; Letter from Theodore R. Lazo, Managing Director and
Associate General Counsel, SIFMA, to Brent J. Fields, Secretary,
Commission (dated July 28, 2017), available at: https://www.sec.gov/comments/sr-batsbyx-2017-11/batsbyx201711-2150977-157744.pdf; Letter
from Stuart J. Kaswell, Executive Vice President and Managing
Director, General Counsel, Managed Funds Association, to Brent J.
Fields, Secretary, Commission (dated July 28, 2017), available at:
https://www.sec.gov/comments/sr-batsbyx-2017-11/batsbyx201711-2150818-157743.pdf; Letter from John Kinahan, Chief Executive
Officer, Group One Trading, L.P., to Brent J. Fields, Secretary,
Commission (dated August 10, 2017), available at: https://www.sec.gov/comments/sr-finra-2017-011/finra2017011-2214568-160619.pdf; Letter from Joseph Molluso, Executive Vice President and
CFO, Virtu Financial, to Brent J. Fields, Commission (dated August
18, 2017), available at: https://www.sec.gov/comments/sr-finra-2017-011/finra2017011-2238648-160830.pdf.
\8\ See Letter from Michael Simon, Chair, CAT NMS Plan Operating
Committee, to Brent J. Fields, Commission, Secretary (dated November
2, 2017), available at: https://www.sec.gov/comments/sr-batsbyx-2017-11/batsbyx201711-2674608-161412.pdf.
\9\ Amendment No. 1 to the proposed rule change replaced and
superseded the Original Proposal in its entirety. See Securities
Exchange Act Release No. 82276 (December 11, 2017).
\10\ See Securities Exchange Act Release No. 82049 (November 9,
2017), 82 FR 53549 (November 16, 2017).
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II. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Amendment

On May 23, 2017, Cboe EDGX Exchange, Inc. (``SRO'') filed with the
Securities and Exchange Commission (``Commission'' or ``SEC'') proposed
rule change SR-BatsEDGX-2017-22 (the ``Original Proposal''), pursuant
to which SRO proposed to adopt a fee schedule to establish the fees for
Industry Members related to the National Market System Plan Governing
the Consolidated Audit Trail (the ``CAT NMS Plan'' or ``Plan'').\11\ On
November

[[Page 59906]]

3, 2017, SRO filed an amendment to the Original Proposal (``First
Amendment''). SRO files this proposed rule change (the ``Second
Amendment'') to amend the Original Proposal as amended by the First
Amendment.
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\11\ Unless otherwise specified, capitalized terms used in this
fee filing are defined as set forth herein, the CAT Compliance Rule
Series, in the CAT NMS Plan, or the Original Proposal.
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With this Second Amendment, SRO is including Exhibits 4A and 4B,
which reflect the changes to the text of the proposed rule change as
set forth in the First Amendment, and Exhibits 5A and 5B, which reflect
all proposed changes to SRO's current rule text.
BOX Options Exchange LLC, Cboe BYX Exchange, Inc., Cboe BZX
Exchange, Inc., Cboe EDGA Exchange, Inc., Cboe EDGX Exchange, Inc.,
Cboe C2 Exchange, Inc., Cboe Exchange, Inc., Chicago Stock Exchange,
Inc., Financial Industry Regulatory Authority, Inc. (``FINRA''),
Investors' Exchange LLC, Miami International Securities Exchange, LLC,
MIAX PEARL, LLC, NASDAQ BX, Inc., Nasdaq GEMX, LLC, Nasdaq ISE, LLC,
Nasdaq MRX, LLC, NASDAQ PHLX LLC, The NASDAQ Stock Market LLC, New York
Stock Exchange LLC, NYSE American LLC, NYSE Arca, Inc. and NYSE
National, Inc.\12\ (collectively, the ``Participants'') filed with the
Commission, pursuant to Section 11A of the Exchange Act \13\ and Rule
608 of Regulation NMS thereunder,\14\ the CAT NMS Plan.\15\ The
Participants filed the Plan to comply with Rule 613 of Regulation NMS
under the Exchange Act. The Plan was published for comment in the
Federal Register on May 17, 2016,\16\ and approved by the Commission,
as modified, on November 15, 2016.\17\ The Plan is designed to create,
implement and maintain a consolidated audit trail (``CAT'') that would
capture customer and order event information for orders in NMS
Securities and OTC Equity Securities, across all markets, from the time
of order inception through routing, cancellation, modification, or
execution in a single consolidated data source. The Plan accomplishes
this by creating CAT NMS, LLC (the ``Company''), of which each
Participant is a member, to operate the CAT.\18\ Under the CAT NMS
Plan, the Operating Committee of the Company (``Operating Committee'')
has discretion to establish funding for the Company to operate the CAT,
including establishing fees that the Participants will pay, and
establishing fees for Industry Members that will be implemented by the
Participants (``CAT Fees'').\19\ The Participants are required to file
with the SEC under Section 19(b) of the Exchange Act any such CAT Fees
applicable to Industry Members that the Operating Committee
approves.\20\ Accordingly, SRO submitted the Original Proposal to
propose the Consolidated Audit Trail Funding Fees, which would require
Industry Members that are SRO members to pay the CAT Fees determined by
the Operating Committee.
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\12\ Note that Bats BYX Exchange, Inc., Bats BZX Exchange, Inc.,
Bats EDGA Exchange, Inc., Bats EDGX Exchange, Inc., LLC, C2 Options
Exchange, Incorporated, and Chicago Board Options Exchange,
Incorporated, have been renamed Cboe BYX Exchange, Inc., Cboe BZX
Exchange, Inc., Cboe EDGA Exchange, Inc., Cboe EDGX Exchange, Inc.,
Cboe C2 Exchange, Inc., Cboe Exchange, Inc., respectively.
\13\ 15 U.S.C. 78k-1.
\14\ 17 CFR 242.608.
\15\ See Letter from the Participants to Brent J. Fields,
Secretary, Commission, dated September 30, 2014; and Letter from
Participants to Brent J. Fields, Secretary, Commission, dated
February 27, 2015. On December 24, 2015, the Participants submitted
an amendment to the CAT NMS Plan. See Letter from Participants to
Brent J. Fields, Secretary, Commission, dated December 23, 2015.
\16\ Securities Exchange Act Rel. No. 77724 (Apr. 27, 2016), 81
FR 30614 (May 17, 2016).
\17\ Securities Exchange Act Rel. No. 79318 (Nov. 15, 2016), 81
FR 84696 (Nov. 23, 2016) (``Approval Order'').
\18\ The Plan also serves as the limited liability company
agreement for the Company.
\19\ Section 11.1(b) of the CAT NMS Plan.
\20\ Id.
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The Commission published the Original Proposal for public comment
in the Federal Register on June 6, 2017,\21\ and received comments in
response to the Original Proposal or similar fee filings by other
Participants.\22\ On June 30, 2017, the Commission suspended, and
instituted proceedings to determine whether to approve or disapprove,
the Original Proposal.\23\ The Commission received seven comment
letters in response to those proceedings.\24\
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\21\ Securities Exchange Act Rel. No. 80821 (May 31, 2017), 82
FR 26177 (June 6, 2017) (SR-BatsEDGX-2017-22).
\22\ For a summary of comments, see generally Securities
Exchange Act Rel. No. 81067 (June 30, 2017), 82 FR 31656 (July 7,
2017) (``Suspension Order'').
\23\ Suspension Order.
\24\ See Letter from Stuart J. Kaswell, Executive Vice
President, Managing Director and General Counsel, Managed Funds
Association, to Brent J. Fields, Secretary, SEC (July 28, 2017);
Letter from Theodore R. Lazo, Managing Director and Associate
General Counsel, SIFMA, to Brent J. Fields, Secretary, SEC (July 28,
2017); Joanna Mallers, Secretary, FIA Principal Traders Group, to
Brent J. Fields, Secretary, SEC (July 28, 2017); Letter from Kevin
Coleman, General Counsel & Chief Compliance Officer, Belvedere
Trading LLC, to Brent J. Fields, Secretary, SEC (July 28, 2017);
Letter from W. Hardy Callcott, Sidley Austin LLP, to Brent J.
Fields, Secretary, SEC (July 27, 2017); Letter from John Kinahan,
Chief Executive Officer, Group One Trading, L.P., to Brent J.
Fields, Secretary, SEC (Aug. 10, 2017); and Letter from Joseph
Molluso, Executive Vice President, Virtu Financial, to Brent J.
Fields, Secretary, SEC (Aug. 18, 2017).
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In response to the comments on the Original Proposal, the Operating
Committee determined to make the following changes to the funding
model: (1) Adds two additional CAT Fee tiers for Equity Execution
Venues; (2) discounts the market share of Execution Venue ATSs
exclusively trading OTC Equity Securities as well as the market share
of the FINRA over-the-counter reporting facility (``ORF'') by the
average shares per trade ratio between NMS Stocks and OTC Equity
Securities (calculated as 0.17% based on available data from the second
quarter of 2017) when calculating the market share of Execution Venue
ATS exclusively trading OTC Equity Securities and FINRA; (3) discounts
the Options Market Maker quotes by the trade to quote ratio for options
(calculated as 0.01% based on available data for June 2016 through June
2017) when calculating message traffic for Options Market Makers; (4)
discounts equity market maker quotes by the trade to quote ratio for
equities (calculated as 5.43% based on available data for June 2016
through June 2017) when calculating message traffic for equity market
makers; (5) decreases the number of tiers for Industry Members (other
than the Execution Venue ATSs) from nine to seven; (6) changes the
allocation of CAT costs between Equity Execution Venues and Options
Execution Venues from 75%/25% to 67%/33%; (7) adjusts tier percentages
and recovery allocations for Equity Execution Venues, Options Execution
Venues and Industry Members (other than Execution Venue ATSs); (8)
focuses the comparability of CAT Fees on the individual entity level,
rather than primarily on the comparability of affiliated entities; (9)
commences invoicing of CAT Reporters as promptly as possible following
the latest of the operative date of the Consolidated Audit Trail
Funding Fees for each of the Participants and the operative date of the
CAT NMS Plan amendment adopting CAT Fees for Participants; and (10)
requires the proposed fees to automatically expire two years from the
operative date of the CAT NMS Plan amendment adopting CAT Fees for
Participants. On November 3, 2017, SRO filed the First Amendment and
proposed to amend the Original Proposal to reflect these changes.
SRO submits this Second Amendment to the revise the proposal as set
forth in the First Amendment to discount the OTC Equity Securities
market share of all Execution Venue ATSs trading OTC Equity Securities,
rather than applying the discount solely to those Execution Venue ATSs
that exclusively trade OTC Equity Securities, when calculating the
market share of Execution Venue ATS

[[Page 59907]]

trading OTC Equity Securities. As discussed in the First Amendment:

The Operating Committee determined to discount the market share
of Execution Venue ATSs exclusively trading OTC Equity Securities as
well as the market share of the FINRA ORF in recognition of the
different trading characteristics of the OTC Equity Securities
market as compared to the market in NMS Stocks. Many OTC Equity
Securities are priced at less than one dollar--and a significant
number at less than one penny--per share and low-priced shares tend
to trade in larger quantities. Accordingly, a disproportionately
large number of shares are involved in transactions involving OTC
Equity Securities versus NMS Stocks. Because the proposed fee tiers
are based on market share calculated by share volume, Execution
Venue ATSs exclusively trading OTC Equity Securities and FINRA would
likely be subject to higher tiers than their operations may
warrant.\25\
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\25\ SR-BatsEDGX-2017-22, Amendment No. 1 at page 30.

The Operating Committee believes that this argument applies equally
to both Execution Venue ATSs exclusively trading OTC Equity Securities
and to Execution Venue ATSs that trade OTC Equity Securities as well as
other securities. Accordingly, SRO proposes to amend paragraph (b)(2)
of the Consolidated Audit Trail Funding Fees to apply the discount to
all Execution Venue ATSs trading OTC Equity Securities. Specifically,
SRO proposes to change the parenthetical regarding the OTC Equity
Securities discount in paragraph (b)(2) of the proposed fee schedule
from ``with a discount for Equity ATSs exclusively trading OTC Equity
Securities based on the average shares per trade ratio between NMS
Stocks and OTC Equity Securities'' to ``with a discount for OTC Equity
Securities market share of Equity ATSs trading OTC Equity Securities
based on the average shares per trade ratio between NMS Stocks and OTC
Equity Securities.''

III. Solicitation of Comments

Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposal, as
amended by Amendment No. 1 and Amendment No. 2, 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-BatsEDGX-2017-22 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-BatsEDGX-2017-22. 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 website (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 website 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-BatsEDGX-2017-22, and should be
submitted on or before January 5, 2018.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\26\
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\26\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2017-27002 Filed 12-14-17; 8:45 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 82, No. 240 / Friday, December 15, 2017 / Notices 59905

Commission, and all written Plan Governing the Consolidated Audit from the Participants.8 On November 3,
communications relating to the Trail (‘‘CAT NMS Plan’’). The proposed 2017, the Exchange filed Amendment
proposed rule change between the rule change was published in the No. 1 to the proposed rule change.9 On
Commission and any person, other than Federal Register for comment on June 6, November 9, 2017, the Commission
those that may be withheld from the 2017.3 The Commission received seven extended the time period within which
public in accordance with the comment letters on the proposed rule to approve the proposed rule change or
provisions of 5 U.S.C. 552, will be change,4 and a response to comments disapprove the proposed rule change to
available for website viewing and from the CAT NMS Plan Participants.5 January 14, 2018.10 On December 7,
printing in the Commission’s Public On June 30, 2017, the Commission 2017, the Exchange filed Amendment
Reference Room, 100 F Street NE, temporarily suspended and initiated No. 2 to the proposed rule change, as
Washington, DC 20549, on official proceedings to determine whether to described in Item II, which Item has
business days between the hours of approve or disapprove the proposed been prepared by the Exchange. The
10:00 a.m. and 3:00 p.m. Copies of the rule change.6 The Commission Commission is publishing this notice to
filing also will be available for thereafter received seven comment solicit comments from interested
inspection and copying at the principal letters,7 and a response to comments persons on Amendment No. 2.
office of the Exchange. All comments
II. Self-Regulatory Organization’s
received will be posted without change. 3 See Securities Exchange Act Release No. 80821

(May 31, 2017), 82 FR 26177 (June 6, 2017) Statement of the Terms of Substance of
Persons submitting comments are
(‘‘Original Proposal’’). the Proposed Amendment
cautioned that we do not redact or edit 4 Since the CAT NMS Plan Participants’ proposed
personal identifying information from rule changes to adopt fees to be charged to Industry
On May 23, 2017, Cboe EDGX
comment submissions. You should Members to fund the consolidated audit trail are Exchange, Inc. (‘‘SRO’’) filed with the
submit only information that you wish substantively identical, the Commission is Securities and Exchange Commission
to make available publicly. All considering all comments received on the proposed (‘‘Commission’’ or ‘‘SEC’’) proposed rule
rule changes regardless of the comment file to
submissions should refer to File which they were submitted. See text accompanying
change SR–BatsEDGX–2017–22 (the
Number SR–BatsEDGA–2017–13, and note 12 infra, for a list of the CAT NMS Plan ‘‘Original Proposal’’), pursuant to which
should be submitted on or before Participants. See Letter from Theodore R. Lazo, SRO proposed to adopt a fee schedule
Managing Director and Associate General Counsel, to establish the fees for Industry
January 5, 2018. Securities Industry and Financial Markets
For the Commission, by the Division of Association, to Brent J. Fields, Secretary, Members related to the National Market
Trading and Markets, pursuant to delegated Commission (dated June 6, 2017), available at: System Plan Governing the
authority.26 https://www.sec.gov/comments/sr-batsbzx-2017-38/ Consolidated Audit Trail (the ‘‘CAT
batsbzx201738-1788188-153228.pdf; Letter from NMS Plan’’ or ‘‘Plan’’).11 On November
Robert W. Errett, Patricia L. Cerny and Steven O’Malley, Compliance
Deputy Secretary. Consultants, to Brent J. Fields, Secretary,
Commission (dated June 12, 2017), available at: comments/sr-batsbyx-2017-11/batsbyx201711-
[FR Doc. 2017–26991 Filed 12–14–17; 8:45 am] 2148360-157740.pdf; Letter from Joanna Mallers,
https://www.sec.gov/comments/sr-cboe-2017-040/
BILLING CODE 8011–01–P cboe2017040-1799253-153675.pdf; Letter from Secretary, FIA Principal Traders Group, to Brent J.
Daniel Zinn, General Counsel, OTC Markets Group Fields, Secretary, Commission (dated July 28, 2017),
Inc., to Eduardo A. Aleman, Assistant Secretary, available at: https://www.sec.gov/comments/sr-
Commission (dated June 13, 2017), available at: batsbyx-2017-11/batsbyx201711-2151228-
SECURITIES AND EXCHANGE 157745.pdf; Letter from Theodore R. Lazo,
https://www.sec.gov/comments/sr-finra-2017-011/
COMMISSION finra2017011-1801717-153703.pdf; Letter from Managing Director and Associate General Counsel,
Joanna Mallers, Secretary, FIA Principal Traders SIFMA, to Brent J. Fields, Secretary, Commission
[Release No. 34–82277; File No. SR– (dated July 28, 2017), available at: https://
Group, to Brent J. Fields, Secretary, Commission
BatsEDGX–2017–22] www.sec.gov/comments/sr-batsbyx-2017-11/
(dated June 22, 2017), available at: https://
www.sec.gov/comments/sr-cboe-2017-040/ batsbyx201711-2150977-157744.pdf; Letter from
Self-Regulatory Organizations; Cboe cboe2017040-1819670-154195.pdf; Letter from Stuart J. Kaswell, Executive Vice President and
EDGX Exchange, Inc.; Notice of Filing Stuart J. Kaswell, Executive Vice President and Managing Director, General Counsel, Managed
of Amendment No. 2 to the Proposed Managing Director, General Counsel, Managed Funds Association, to Brent J. Fields, Secretary,
Funds Association, to Brent J. Fields, Secretary, Commission (dated July 28, 2017), available at:
Rule Change To Amend the Schedule Commission (dated June 23, 2017), available at: https://www.sec.gov/comments/sr-batsbyx-2017-11/
of Fees and Assessments To Adopt a https://www.sec.gov/comments/sr-finra-2017-011/ batsbyx201711-2150818-157743.pdf; Letter from
Fee Schedule To Establish Fees for finra2017011-1822454-154283.pdf; and Letter from John Kinahan, Chief Executive Officer, Group One
Industry Members Related to the Suzanne H. Shatto, Investor, to Commission (dated Trading, L.P., to Brent J. Fields, Secretary,
June 27, 2017), available at: https://www.sec.gov/ Commission (dated August 10, 2017), available at:
National Market System Plan comments/sr-batsedgx-2017-22/batsedgx201722- https://www.sec.gov/comments/sr-finra-2017-011/
Governing the Consolidated Audit Trail 154443.pdf. The Commission also received a finra2017011-2214568-160619.pdf; Letter from
comment letter which is not pertinent to these Joseph Molluso, Executive Vice President and CFO,
December 11, 2017. proposed rule changes. See Letter from Christina Virtu Financial, to Brent J. Fields, Commission
Crouch, Smart Ltd., to Brent J. Fields, Secretary, (dated August 18, 2017), available at: https://
I. Introduction Commission (dated June 5, 2017), available at: www.sec.gov/comments/sr-finra-2017-011/
On May 23, 2017, Bats EDGX https://www.sec.gov/comments/sr-batsbzx-2017-38/ finra2017011-2238648-160830.pdf.
batsbzx201738-1785545-153152.htm. 8 See Letter from Michael Simon, Chair, CAT
Exchange, Inc., n/k/a Cboe EDGX 5 See Letter from CAT NMS Plan Participants to NMS Plan Operating Committee, to Brent J. Fields,
Exchange, Inc., (‘‘Exchange’’ or ‘‘SRO’’) Brent J. Fields, Secretary, Commission (dated June Commission, Secretary (dated November 2, 2017),
filed with the Securities and Exchange 29, 2017), available at: https://www.sec.gov/ available at: https://www.sec.gov/comments/sr-
Commission (‘‘Commission’’), pursuant comments/sr-batsbyx-2017-11/batsbyx201711- batsbyx-2017-11/batsbyx201711-2674608-
1832632-154584.pdf. 161412.pdf.
to Section 19(b)(1) of the Securities 9 Amendment No. 1 to the proposed rule change
6 See Securities Exchange Act Release No. 81067
Exchange Act of 1934 (‘‘Act’’) 1 and Rule (June 30, 2017), 82 FR 31656 (July 7, 2017). replaced and superseded the Original Proposal in
sradovich on DSK3GMQ082PROD with NOTICES

19b–4 thereunder,2 a proposed rule 7 See Letter from W. Hardy Callcott, Partner, its entirety. See Securities Exchange Act Release
change to adopt a fee schedule to Sidley Austin LLP, to Brent J. Fields, Secretary, No. 82276 (December 11, 2017).
10 See Securities Exchange Act Release No. 82049
establish the fees for Industry Members Commission (dated July 27, 2017), available at:
https://www.sec.gov/comments/sr-batsbyx-2017-11/ (November 9, 2017), 82 FR 53549 (November 16,
related to the National Market System 2017).
batsbyx201711-2148338-157737.pdf; Letter from
Kevin Coleman, General Counsel and Chief 11 Unless otherwise specified, capitalized terms
26 17 CFR 200.30–3(a)(12). Compliance Officer, Belvedere Trading LLC, to used in this fee filing are defined as set forth herein,
1 15 U.S.C. 78s(b)(1). Brent J. Fields, Secretary, Commission (dated July the CAT Compliance Rule Series, in the CAT NMS
2 17 CFR 240.19b–4. 28, 2017), available at: https://www.sec.gov/ Plan, or the Original Proposal.

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Document Created: 2017-12-15 03:37:34
Document Modified: 2017-12-15 03:37:34

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		82 FR 59905