82 FR 60090 - Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 11.8, Order Types

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 241 (December 18, 2017)

Page Range		60090-60093
FR Document		2017-27152
Federal Register, Volume 82 Issue 241 (Monday, December 18, 2017)
[Federal Register Volume 82, Number 241 (Monday, December 18, 2017)]
[Notices]
[Pages 60090-60093]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-27152]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82305; File No. SR-CboeEDGA-2017-002]


Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change To 
Amend Exchange Rule 11.8, Order Types

December 12, 2017.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on November 29, 2017, Cboe EDGA Exchange, Inc. (``EDGA'' or the 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been prepared by the Exchange. The Exchange 
has designated this proposal as a ``non-controversial'' proposed rule 
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6) thereunder,\4\ which renders it effective upon filing with the 
Commission. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange filed a proposal to amend paragraph (b) of Exchange 
Rule 11.8, Order Types, to restrict the Time-In-Force (``TIF'') 
instruction that a Limit Order with both a Display \5\ instruction and 
Primary Peg \6\ instruction that also include a Primary Offset Amount 
(defined below) may have to Regular Hours Only (``RHO'') \7\ or Day \8\ 
if entered during Regular Trading Hours.\9\
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    \5\ See Exchange Rule 11.6(e)(1).
    \6\ See Exchange Rule 11.6(j)(2).
    \7\ See Exchange Rule 11.6(q)(6) (defining a TIF of RHO as an 
instruction a User may attach to an order designating it for 
execution only during Regular Trading Hours).
    \8\ See Exchange Rule 11.6(q)(2) (defining a TIF of Day as an 
instruction a User may attach to an order stating that an order to 
buy or sell which, if not executed, expires at the end of Regular 
Trading Hours).
    \9\ Regular Trading Hours is defined as the time between 9:30 
a.m. and 4:00 p.m. Eastern Time. See Exchange Rule 1.5(y).
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    The text of the proposed rule change is available at the Exchange's 
website at www.markets.cboe.com, at the principal office of the 
Exchange, and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
Sections A, B, and C below, of the most significant parts of such 
statements.

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

1. Purpose
    The Exchange proposes to amend paragraph (b) of Exchange Rule 11.8, 
Order Types, to restrict the TIF instruction that a Limit Order with 
both a Display instruction and Primary Peg instruction and a Primary 
Offset Amount may have to RHO or, if entered during Regular Trading 
Hours, a TIF of Day. Exchange Rule 11.8(b)(9) allows for a Limit Order 
to include a Primary Peg instruction. Exchange Rule 11.6(j)(2) 
describes the Primary Peg instruction as an order with instructions to 
peg to the National Best Bid (``NBB''), for a buy order, or the 
National Best Offer (``NBO''), for a sell order. A User \10\ may, but 
is not required to, elect an offset equal to or greater than one 
Minimum Price Variation above or below the NBB or NBO that the order is 
pegged to (``Primary Offset Amount''). The Primary Offset Amount for an 
order with Primary Peg instruction that is to be displayed on the EDGA 
Book must result in the price of such order being inferior to or equal 
to the inside quote on the same side of the market.
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    \10\ See Exchange Rule 1.5(ee).
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    Exchange Rule 11.8(b)(2) sets forth the TIF instructions that may 
be attached to a Limit Order. Some available TIF instructions enable a 
Limit Order to expire at a time past the end of Regular Trading Hours 
at 4:00 p.m. Eastern Time. These TIF instructions are Good-`til 
Extended Day (``GTX''), Good-`til Day (``GTD''), Pre-Opening Session 
`til Extended Day (``PTX''), and Pre-Opening Session `til Day 
(``PTD'').\11\ The System automatically defaults the Limit Order to 
include a TIF instruction of Day if the User does not select a 
different TIF instruction.\12\
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    \11\ See Exchange Rule 11.6(q) (defining each of these TIF 
instructions).
    \12\ See Exchange Rule 11.8(b)(2).
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    The Exchange has observed that Limit Orders with a Primary Peg 
instruction displayed on the EDGA Book with non-aggressive Primary 
Offset Amounts and similar orders entered on away exchanges that remain 
active after the end of Regular Trading Hours may be pegged to and 
repriced off of each other during extended hours trading when no other 
reference price is available due to orders expiring or being cancelled 
at 4:00 p.m. Eastern Time. The following example illustrates this 
scenario. Assume the NBBO is $0.00 by $0.00. Market Maker 1 enters an 
order on Exchange A to buy 100 shares at $10.00

[[Page 60091]]

resulting in a new NBBO of $10.00 by $0.00. Market Maker 2 sends a 
Displayed Primary Peg order to Exchange B to buy 100 with a -$0.01 
Primary Offset Amount. That order is posted on Exchange B at $9.99. 
Market Maker 3 then also sends a Displayed Primary Peg order to 
Exchange C to buy 100 with a -$0.01 Primary Offset Amount. That order 
is posted on Exchange C at $9.99. The NBBO remains $10.00 by $0.00. 
Market Maker 1 cancels their order to buy 100 shares at $10.00. The 
NBBO is now $9.99 by $0.00. Exchange B re-prices Market Maker 2's 
Displayed Primary Peg order to buy to $9.98, one cent below Market 
Maker 3's Displayed Primary Peg order on Exchange C. The NBBO is now 
$9.98 by $0.00. Exchange C then re-prices Market Maker 3's Displayed 
Primary Peg order to buy to $9.97, one cent below Market Maker 2's 
Displayed Primary Peg order on Exchange B. In the absence of new 
additional liquidity being entered at the NBB, each order would 
continue to be re-priced off each other until each reach $0.00.\13\
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    \13\ While this behavior may occur in less liquid securities 
during Regular Trading Hours, the Exchange has only witnesses [sic] 
this occurring after the close of trading, on only one occasion, and 
not with the use of any other pegged order type or instruction. The 
Exchange intends to monitor the use of Limit Order [sic] with both a 
Display instruction and Primary Peg instruction that include a 
Primary Offset Amount during Regular Trading Hours to identify when 
the situation subject to this proposal may occur.
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    To prevent this from occurring, the Exchange proposes to restrict 
the TIF instruction that a Limit Order with both a Display instruction 
and Primary Peg instruction that include [sic] a Primary Offset Amount 
may have to RHO, or, if entered during Regular Trading Hours, a TIF 
instruction of Day. Doing so would cause Displayed Primary Peg orders 
resting on the EDGA Book to be eligible for execution from 9:30 a.m. to 
4:00 p.m. Eastern Time. Limiting the TIF instructions to RHO and Day 
only for Displayed Primary Peg orders with Primary Offsets Amounts 
would ensure that these orders are eligible for execution during 
Regular Trading Hours, which is the most liquid portion of the trading 
day, thereby significantly decreasing the possibility that such orders 
may re-price off similar orders entered on away exchanges in the 
absence of additional liquidity at the NBB or NBO. The proposed rule 
change would cause Displayed Primary Peg orders with Primary Offset 
Amounts to expire at the end of Regular Trading Hours when a vast 
majority of orders expire and do not participate in extended hours 
trading. As amended, paragraph (b)(9) of the Rule 11.8 would be amended 
to state that a Limit Order that includes a both [sic] Displayed 
instruction and Primary Peg instruction with a Primary Offset Amount 
(as defined in Rule 11.6(j)(2)) shall only include a TIF instruction of 
RHO or, if entered during Regular Trading Hours, a TIF instruction of 
Day. As is the case today, Users may continue to enter Displayed 
Primary Peg orders with Primary Offset Amounts and a TIF instruction of 
RHO beginning at 6:00 a.m. Eastern Time. However, those orders would 
not be eligible for execution until 9:30 a.m. Eastern Time, the start 
of Regular Trading Hours.\14\ Displayed Primary Peg orders with Primary 
Offset Amounts and a TIF of Day will be rejected if entered prior to 
9:30 a.m., the start of Regular Trading Hours. Primary Pegged orders 
that do not include a Primary Offset Amount or that are not displayed 
on the EDGA Book would have no restrictions on the TIF instructions 
that may be attached to the order pursuant to Exchange Rule 11.8(b)(2). 
Exchange Rule 11.8(b)(2) currently states that a Limit Order would be 
defaulted to a TIF instruction of Day. The Exchange proposes to amend 
Exchange Rule 11.8(b)(2) to state that the default behavior would be 
subject to the behavior proposed to be added to Exchange Rule 
11.8(b)(9). As such, a Limit Order with both a Display instruction and 
Primary Peg instruction and a Primary Offset Amount that defaults to a 
TIF instruction of Day would be rejected if entered prior to the start 
of Regular Trading Hours. That order would need to be reentered with a 
TIF instruction of RHO. If entered during Regular Trading Hours, a 
Limit Order with both a Display instruction and Primary Peg instruction 
and a Primary Offset Amount that defaults to a TIF instruction of Day 
would be accepted by the System and handled in accordance with its 
order instructions.
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    \14\ See Exchange Rule 11.1(a)(1).
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    In light of the change proposed above, the Exchange also proposes 
the following clarifying change to Exchange Rule 11.8(b) to account for 
a TIF instruction of RHO or Day being applied to a Displayed Primary 
Peg order with a Primary Offset Amount. Exchange Rule 11.8(b) specifies 
that the functionality described in paragraphs (9), (10), and (11) of 
the rule is available for Limit Orders that include a Post Only or Book 
Only instruction or TIF instruction of Day, GTD or GTX. As described 
above, paragraph (9) of Rule 11.8(b) explains that a Limit Order may be 
accompanied by a Pegged instruction. Paragraph (10) of Rule 11.8(b) 
describes the default behavior of order [sic] to comply with Rule 610 
of Regulations NMS \15\ and states that a Limit Order to buy (sell) 
that would cross the market at the time of entry would not be executed 
at a price higher (lower) than the locking price. Lastly, paragraph 
(11) of Rule 11.8(b) states that a Limit Order that includes a Short 
Sale instruction \16\ that is not marked Short Exempt,\17\ and that 
cannot be executed in the System or displayed by the System on the EDGA 
Book at its limit price because a Short Sale Circuit Breaker \18\ is in 
effect, will be subject to the Re-Pricing Instruction to comply with 
Rule 201 of Regulation SHO,\19\ unless the User affirmatively elects to 
have the order immediately Cancel Back.\20\
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    \15\ 17 CFR 242.610.
    \16\ Exchange Rule 11.6(o).
    \17\ Exchange Rule 11.6(p).
    \18\ 17 CFR 242.201.
    \19\ 17 CFR 242.201.
    \20\ Exchange Rule 11.8(b).
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    The functionality described in each of these paragraphs by design 
only applies to orders once they are posted to the EDGA Book. For 
instance, an order would only be re-priced in to [sic] comply with Rule 
610 or Regulation NMS or Rule 201 of Regulation SHO once posted to the 
EDGA Book to ensure it is posted at a price that complies with both 
rules. Overtime [sic], this language preceding paragraph (9) of Rule 
11.8(b) has become outdated and does not account for TIF instructions 
that have been adopted since this provision of the rule was put into 
effect.\21\ These include TIF instructions of PRE, PTX and PTD.\22\ 
Therefore, the Exchange proposes to amend this provision to make it 
more general and simply state that paragraphs (9), (10), and (11) apply 
only to orders that are posted to the EDGA Book. This will include 
orders with a Post Only or Book Only instruction as well as orders with 
a TIF instruction of Day, GTD, GTX, RHO, PRE, PTX, and PTD. Paragraphs 
(9), (10), and (11) would not apply to orders that include a TIF of IOC 
or FOK as those orders are to be executed or cancelled upon entry and 
would never be placed on the EDGA Book.
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    \21\ These TIF instructions govern during which trading sessions 
an order remains eligible for execution and when that order expires 
if posted to the EDGA Book. See Exchange Rule 11.6(q)(7), (8), and 
(9). See also Securities Exchange Act Release No. 77537 (April 6, 
2016), 81 FR 21620 (April 12, 2016) (SR-EDGA-2016-02).
    \22\ See Exchange Rule 11.6(q) (defining each of these TIF 
instructions).
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b)

[[Page 60092]]

of the Act \23\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \24\ in particular, in that it is designed to 
promote just and equitable principles of trade, to foster cooperation 
and coordination with persons engaged in facilitating transactions in 
securities, to remove impediments to and perfect the mechanism of a 
free and open market and a national market system and, in general, to 
protect investors and the public interest. The proposed rule change 
removes impediments to and perfects the mechanism of a free and open 
market and a national market system by ensuring that Limit Orders with 
a Primary Pegged instruction and Primary Offset Amount displayed on the 
EDGA Book do not inadvertently re-price off similar orders on away 
exchanges in absence of other liquidity creating the illusion of 
aberrant prices for the security. The proposed rule change would 
restrict the use of the order type to Regular Trading Hours only, the 
most liquid part of the trading day, thereby significantly decreasing 
the possibility of such orders re-pricing off of each other in the 
absence of additional liquidity. The Exchange does not propose to amend 
or alter the operation of Limit Orders with a Pegged instruction in any 
other manner. The proposed rule change also promotes just and equitable 
principles of trade by limiting the times at which such orders are 
active so as to ensure that the order pegs to prices that reflect the 
true NBBO of the security and not the Primary Offset Amount of a pegged 
order in the absence of other liquidity. Lastly, the Exchange believes 
the proposed rule change removes impediments to and perfect [sic] the 
mechanism of a free and open market and a national market system by 
updating the rule to account for all scenarios in which a Limit Order 
may be placed on the EDGA Book and subject to the functionality covered 
in paragraphs (9), (10), and (11) of Rule 11.8(b).
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    \23\ 15 U.S.C. 78f(b).
    \24\ 15 U.S.C. 78f(b)(5).
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act, as amended. The 
proposed rule change is intended to ensure Limit Orders with a Primary 
Pegged instruction and Primary Offset Amount displayed on the EDGA Book 
do not inadvertently re-price off similar orders on away exchanges in 
absence of other liquidity. It is not intended to have a competitive 
impact.

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

    No comments were solicited or received on the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \25\ and paragraph 
(f)(6) of Rule 19b-4 thereunder.\26\
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    \25\ 15 U.S.C. 78s(b)(3)(A).
    \26\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative for 30 days after the date of its filing. However, 
Rule 19b-4(f)(6)(iii) \27\ permits the Commission to designate a 
shorter time if such action is consistent with the protection of 
investors and the public interest. The Exchange has requested that the 
Commission waive the 30-day operative delay so that the proposed rule 
change will become operative upon filing. The Exchange stated that such 
waiver will enable the Exchange to update its functionality during the 
operative delay period such that Limit Orders with a Primary Pegged 
instruction and Primary Offset Amount displayed on the EDGA Book do not 
inadvertently re-price off of similar orders on away exchanges in the 
absence of other liquidity. The Commission believes that waiver of the 
30-day operative delay is consistent with the protection of investors 
and the public interest because it would enable the Exchange to update 
its rule without delay to help prevent these types of pegged orders 
from inadvertently re-pricing to aberrant prices. Therefore, the 
Commission hereby waives the operative delay and designates the 
proposed rule change operative upon filing.\28\
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    \27\ 17 CFR 240.19b-4(f)(6)(iii).
    \28\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. 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-CboeEDGA-2017-002 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-CboeEDGA-2017-002. 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

[[Page 60093]]

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-CboeEDGA-2017-
002 and should be submitted on or before January 8, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\29\
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    \29\ 17 CFR 200.30-3(a)(12) and (59).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2017-27152 Filed 12-15-17; 8:45 am]
 BILLING CODE 8011-01-P
60090 Federal Register / Vol. 82, No. 241 / Monday, December 18, 2017 / Notices

number should be included on the (‘‘EDGA’’ or the ‘‘Exchange’’) filed with (A) Self-Regulatory Organization’s
subject line if email is used. To help the the Securities and Exchange Statement of the Purpose of, and
Commission process and review your Commission (‘‘Commission’’) the Statutory Basis for, the Proposed Rule
comments more efficiently, please use proposed rule change as described in Change
only one method. The Commission will Items I and II below, which Items have 1. Purpose
post all comments on the Commission’s been prepared by the Exchange. The
internet website (http://www.sec.gov/ Exchange has designated this proposal The Exchange proposes to amend
rules/sro.shtml). Copies of the paragraph (b) of Exchange Rule 11.8,
as a ‘‘non-controversial’’ proposed rule
submission, all subsequent Order Types, to restrict the TIF
change pursuant to Section 19(b)(3)(A)
amendments, all written statements instruction that a Limit Order with both
of the Act 3 and Rule 19b–4(f)(6) a Display instruction and Primary Peg
with respect to the proposed rule
thereunder,4 which renders it effective instruction and a Primary Offset
change that are filed with the
Commission, and all written upon filing with the Commission. The Amount may have to RHO or, if entered
communications relating to the Commission is publishing this notice to during Regular Trading Hours, a TIF of
proposed rule change between the solicit comments on the proposed rule Day. Exchange Rule 11.8(b)(9) allows for
Commission and any person, other than change from interested persons. a Limit Order to include a Primary Peg
those that may be withheld from the I. Self-Regulatory Organization’s instruction. Exchange Rule 11.6(j)(2)
public in accordance with the Statement of the Terms of Substance of describes the Primary Peg instruction as
provisions of 5 U.S.C. 552, will be the Proposed Rule Change an order with instructions to peg to the
available for website viewing and National Best Bid (‘‘NBB’’), for a buy
printing in the Commission’s Public The Exchange filed a proposal to order, or the National Best Offer
Reference Room, 100 F Street NE, amend paragraph (b) of Exchange Rule (‘‘NBO’’), for a sell order. A User 10 may,
Washington, DC 20549 on official 11.8, Order Types, to restrict the Time- but is not required to, elect an offset
business days between the hours of In-Force (‘‘TIF’’) instruction that a Limit equal to or greater than one Minimum
10:00 a.m. and 3:00 p.m. Copies of the Order with both a Display 5 instruction Price Variation above or below the NBB
filing also will be available for and Primary Peg 6 instruction that also or NBO that the order is pegged to
inspection and copying at the principal include a Primary Offset Amount (‘‘Primary Offset Amount’’). The
office of the Exchange. All comments Primary Offset Amount for an order
(defined below) may have to Regular
received will be posted without change. with Primary Peg instruction that is to
Persons submitting comments are Hours Only (‘‘RHO’’) 7 or Day 8 if
be displayed on the EDGA Book must
cautioned that we do not redact or edit entered during Regular Trading Hours.9
result in the price of such order being
personal identifying information from The text of the proposed rule change inferior to or equal to the inside quote
comment submissions. You should is available at the Exchange’s website at on the same side of the market.
submit only information that you wish www.markets.cboe.com, at the principal Exchange Rule 11.8(b)(2) sets forth the
to make available publicly. All office of the Exchange, and at the TIF instructions that may be attached to
submissions should refer to File Commission’s Public Reference Room. a Limit Order. Some available TIF
Number SR–NYSE–2017–63 and should instructions enable a Limit Order to
be submitted on or before January 8, II. Self-Regulatory Organization’s expire at a time past the end of Regular
2018. Statement of the Purpose of, and Trading Hours at 4:00 p.m. Eastern
Statutory Basis for, the Proposed Rule Time. These TIF instructions are Good-
For the Commission, by the Division of
Trading and Markets, pursuant to delegated Change ‘til Extended Day (‘‘GTX’’), Good-‘til
authority.20
In its filing with the Commission, the Day (‘‘GTD’’), Pre-Opening Session ‘til
Robert W. Errett, Extended Day (‘‘PTX’’), and Pre-
Exchange included statements
Deputy Secretary. Opening Session ‘til Day (‘‘PTD’’).11 The
concerning the purpose of and basis for
[FR Doc. 2017–27146 Filed 12–15–17; 8:45 am] System automatically defaults the Limit
the proposed rule change and discussed
BILLING CODE 8011–01–P Order to include a TIF instruction of
any comments it received on the Day if the User does not select a
proposed rule change. The text of these different TIF instruction.12
statements may be examined at the The Exchange has observed that Limit
SECURITIES AND EXCHANGE
COMMISSION places specified in Item IV below. The Orders with a Primary Peg instruction
Exchange has prepared summaries, set displayed on the EDGA Book with non-
[Release No. 34–82305; File No. SR– forth in Sections A, B, and C below, of aggressive Primary Offset Amounts and
CboeEDGA–2017–002] the most significant parts of such similar orders entered on away
Self-Regulatory Organizations; Cboe statements. exchanges that remain active after the
EDGA Exchange, Inc.; Notice of Filing end of Regular Trading Hours may be
and Immediate Effectiveness of a
3 15 U.S.C. 78s(b)(3)(A). pegged to and repriced off of each other
4 17 CFR 240.19b–4(f)(6).
Proposed Rule Change To Amend during extended hours trading when no
5 See Exchange Rule 11.6(e)(1).
Exchange Rule 11.8, Order Types other reference price is available due to
6 See Exchange Rule 11.6(j)(2).
7 See Exchange Rule 11.6(q)(6) (defining a TIF of
orders expiring or being cancelled at
December 12, 2017. 4:00 p.m. Eastern Time. The following
RHO as an instruction a User may attach to an order
Pursuant to Section 19(b)(1) of the designating it for execution only during Regular example illustrates this scenario.
Securities Exchange Act of 1934 (the Assume the NBBO is $0.00 by $0.00.
daltland on DSKBBV9HB2PROD with NOTICES

Trading Hours).
‘‘Act’’),1 and Rule 19b–4 thereunder,2 8 See Exchange Rule 11.6(q)(2) (defining a TIF of
Market Maker 1 enters an order on
notice is hereby given that on November Day as an instruction a User may attach to an order
stating that an order to buy or sell which, if not
Exchange A to buy 100 shares at $10.00
29, 2017, Cboe EDGA Exchange, Inc. executed, expires at the end of Regular Trading
10 See Exchange Rule 1.5(ee).
Hours).
20 17 CFR 200.30–3(a)(12). 11 See
9 Regular Trading Hours is defined as the time Exchange Rule 11.6(q) (defining each of
1 15 U.S.C. 78s(b)(1). these TIF instructions).
between 9:30 a.m. and 4:00 p.m. Eastern Time. See
2 17 CFR 240.19b–4. Exchange Rule 1.5(y). 12 See Exchange Rule 11.8(b)(2).

VerDate Sep<11>2014 17:53 Dec 15, 2017 Jkt 244001 PO 00000 Frm 00091 Fmt 4703 Sfmt 4703 E:\FR\FM\18DEN1.SGM 18DEN1
60092 Federal Register / Vol. 82, No. 241 / Monday, December 18, 2017 / Notices

of the Act 23 in general, and furthers the other liquidity. It is not intended to At any time within 60 days of the
objectives of Section 6(b)(5) of the Act 24 have a competitive impact. filing of the proposed rule change, the
in particular, in that it is designed to Commission summarily may
(C) Self-Regulatory Organization’s
promote just and equitable principles of temporarily suspend such rule change if
Statement on Comments on the
trade, to foster cooperation and Proposed Rule Change Received From it appears to the Commission that such
coordination with persons engaged in Members, Participants or Others action is necessary or appropriate in the
facilitating transactions in securities, to public interest, for the protection of
remove impediments to and perfect the No comments were solicited or investors, or otherwise in furtherance of
mechanism of a free and open market received on the proposed rule change. the purposes of the Act. If the
and a national market system and, in III. Date of Effectiveness of the Commission takes such action, the
general, to protect investors and the Proposed Rule Change and Timing for Commission shall institute proceedings
public interest. The proposed rule Commission Action to determine whether the proposed rule
change removes impediments to and should be approved or disapproved.
Because the foregoing proposed rule
perfects the mechanism of a free and
change does not: (i) Significantly affect IV. Solicitation of Comments
open market and a national market
the protection of investors or the public Interested persons are invited to
system by ensuring that Limit Orders
interest; (ii) impose any significant submit written data, views, and
with a Primary Pegged instruction and
burden on competition; and (iii) become arguments concerning the foregoing,
Primary Offset Amount displayed on the
operative for 30 days from the date on including whether the proposed rule
EDGA Book do not inadvertently re-
which it was filed, or such shorter time change is consistent with the Act.
price off similar orders on away
as the Commission may designate, it has Comments may be submitted by any of
exchanges in absence of other liquidity
become effective pursuant to Section the following methods:
creating the illusion of aberrant prices
19(b)(3)(A) of the Act 25 and paragraph
for the security. The proposed rule Electronic Comments
(f)(6) of Rule 19b–4 thereunder.26
change would restrict the use of the
order type to Regular Trading Hours
A proposed rule change filed under • Use the Commission’s internet
Rule 19b–4(f)(6) normally does not comment form (http://www.sec.gov/
only, the most liquid part of the trading become operative for 30 days after the
day, thereby significantly decreasing the rules/sro.shtml); or
date of its filing. However, Rule 19b– • Send an email to rule-comments@
possibility of such orders re-pricing off 4(f)(6)(iii) 27 permits the Commission to sec.gov. Please include File Number SR–
of each other in the absence of designate a shorter time if such action CboeEDGA–2017–002 on the subject
additional liquidity. The Exchange does is consistent with the protection of line.
not propose to amend or alter the investors and the public interest. The
operation of Limit Orders with a Pegged Exchange has requested that the Paper Comments
instruction in any other manner. The Commission waive the 30-day operative • Send paper comments in triplicate
proposed rule change also promotes just delay so that the proposed rule change to Secretary, Securities and Exchange
and equitable principles of trade by will become operative upon filing. The Commission, 100 F Street NE,
limiting the times at which such orders Exchange stated that such waiver will Washington, DC 20549–1090.
are active so as to ensure that the order enable the Exchange to update its All submissions should refer to File
pegs to prices that reflect the true NBBO functionality during the operative delay Number SR–CboeEDGA–2017–002. This
of the security and not the Primary period such that Limit Orders with a file number should be included on the
Offset Amount of a pegged order in the Primary Pegged instruction and Primary subject line if email is used. To help the
absence of other liquidity. Lastly, the Offset Amount displayed on the EDGA Commission process and review your
Exchange believes the proposed rule Book do not inadvertently re-price off of comments more efficiently, please use
change removes impediments to and similar orders on away exchanges in the only one method. The Commission will
perfect [sic] the mechanism of a free and absence of other liquidity. The post all comments on the Commission’s
open market and a national market Commission believes that waiver of the internet website (http://www.sec.gov/
system by updating the rule to account 30-day operative delay is consistent rules/sro.shtml). Copies of the
for all scenarios in which a Limit Order with the protection of investors and the submission, all subsequent
may be placed on the EDGA Book and public interest because it would enable amendments, all written statements
subject to the functionality covered in the Exchange to update its rule without with respect to the proposed rule
paragraphs (9), (10), and (11) of Rule delay to help prevent these types of change that are filed with the
11.8(b). pegged orders from inadvertently re- Commission, and all written
(B) Self-Regulatory Organization’s pricing to aberrant prices. Therefore, the communications relating to the
Statement on Burden on Competition Commission hereby waives the proposed rule change between the
operative delay and designates the Commission and any person, other than
The Exchange does not believe that proposed rule change operative upon those that may be withheld from the
the proposed rule change will result in filing.28 public in accordance with the
any burden on competition that is not provisions of 5 U.S.C. 552, will be
necessary or appropriate in furtherance 25 15 U.S.C. 78s(b)(3)(A). available for website viewing and
of the purposes of the Act, as amended. 26 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– printing in the Commission’s Public
The proposed rule change is intended to 4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file Reference Room, 100 F Street NE,
ensure Limit Orders with a Primary Washington, DC 20549, on official
daltland on DSKBBV9HB2PROD with NOTICES

the proposed rule change at least five business days
Pegged instruction and Primary Offset prior to the date of filing of the proposed rule business days between the hours of
Amount displayed on the EDGA Book change, or such shorter time as designated by the 10:00 a.m. and 3:00 p.m. Copies of the
do not inadvertently re-price off similar Commission. The Exchange has satisfied this
requirement. filing also will be available for
orders on away exchanges in absence of 27 17 CFR 240.19b–4(f)(6)(iii). inspection and copying at the principal
28 For purposes only of waiving the 30-day
23 15 U.S.C. 78f(b). operative delay, the Commission has also efficiency, competition, and capital formation. See
24 15 U.S.C. 78f(b)(5). considered the proposed rule’s impact on 15 U.S.C. 78c(f).

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Federal Register / Vol. 82, No. 241 / Monday, December 18, 2017 / Notices 60093

office of the Exchange. All comments said license is hereby declared null and Solicitation of Public Comments
received will be posted without change. void. Comments may be submitted on (a)
Persons submitting comments are United States Small Business whether the collection of information is
cautioned that we do not redact or edit Administration. necessary for the agency to properly
personal identifying information from Dated: December 6, 2017. perform its functions; (b) whether the
comment submissions. You should burden estimates are accurate; (c)
A. Joseph Shepard,
submit only information that you wish whether there are ways to minimize the
Associate Administrator for Investment and
to make available publicly. All burden, including through the use of
Innovation.
submissions should refer to File
[FR Doc. 2017–27119 Filed 12–15–17; 8:45 am] automated techniques or other forms of
Number SR–CboeEDGA–2017–002 and
BILLING CODE P information technology; and (d) whether
should be submitted on or before
there are ways to enhance the quality,
January 8, 2018.
utility, and clarity of the information.
For the Commission, by the Division of SMALL BUSINESS ADMINISTRATION
Trading and Markets, pursuant to delegated Summary of Information Collections
authority.29 Reporting and Recordkeeping (1) Title: Disaster Business
Robert W. Errett, Requirements Under OMB Review Application.
Deputy Secretary. Description of Respondents: Governs
[FR Doc. 2017–27152 Filed 12–15–17; 8:45 am] AGENCY: Small Business Administration. Request for Disaster Declaration.
BILLING CODE 8011–01–P ACTION: 30-Day notice. Form Number: N/A.
Estimated Annual Respondents: 29.
SUMMARY: The Small Business Estimated Annual Responses: 61.
SMALL BUSINESS ADMINISTRATION Administration (SBA) is publishing this Estimated Annual Hour Burden:
notice to comply with requirements of 1,220.
Surrender of License of Small the Paperwork Reduction Act (PRA), Curtis B. Rich,
Business Investment Company which requires agencies to submit Management Analyst.
Pursuant to the authority granted to proposed reporting and recordkeeping
[FR Doc. 2017–27131 Filed 12–15–17; 8:45 am]
the United States Small Business requirements to OMB for review and
BILLING CODE 8025–01–P
Administration under the Small approval, and to publish a notice in the
Business Investment Act of 1958, as Federal Register notifying the public
amended, under Section 309 of the Act that the agency has made such a
submission. This notice also allows an DEPARTMENT OF TRANSPORTATION
and Section 107.1900 of the Small
Business Administration Rules and additional 30 days for public comments.
Federal Aviation Administration
Regulations (13 CFR 107.1900) to DATES: Submit comments on or before
function as a small business investment [Summary Notice No. 2017–97]
January 17, 2018.
company under the Small Business
ADDRESSES: Comments should refer to Petition for Exemption; Summary of
Investment Company License
the information collection by name and/ Petition Received; Debra Plymate
No. 04/74–0282 issued to Frontier Fund
or OMB Control Number and should be
I, LP., said license is hereby declared AGENCY: Federal Aviation
sent to: Agency Clearance Officer, Curtis
null and void. Administration (FAA), DOT.
Rich, Small Business Administration,
United States Small Business 409 3rd Street SW, 5th Floor, ACTION: Notice.
Administration. Washington, DC 20416; and SBA Desk
Dated: December 6, 2017. SUMMARY: This notice contains a
Officer, Office of Information and summary of a petition seeking relief
A. Joseph Shepard, Regulatory Affairs, Office of
Associate Administrator for Investment and
from specified requirements of Federal
Management and Budget, New Aviation Regulations. The purpose of
Innovation. Executive Office Building, Washington, this notice is to improve the public’s
[FR Doc. 2017–27118 Filed 12–15–17; 8:45 am] DC 20503. awareness of, and participation in, the
BILLING CODE P
FOR FURTHER INFORMATION CONTACT: FAA’s exemption process. Neither
Curtis Rich, Agency Clearance Officer, publication of this notice nor the
SMALL BUSINESS ADMINISTRATION (202) 205–7030 curtis.rich@sba.gov. inclusion or omission of information in
Copies: A copy of the Form OMB 83– the summary is intended to affect the
Surrender of License of Small 1, supporting statement, and other legal status of the petition or its final
Business Investment Company documents submitted to OMB for disposition.
review may be obtained from the DATES: Comments on this petition must
Pursuant to the authority granted to
Agency Clearance Officer. identify the petition docket number and
the United States Small Business
Administration under the Small SUPPLEMENTARY INFORMATION: The must be received on or before January 8,
Business Investment Act of 1958, as Governor of the State U.S. territory or 2018.
amended, under Section 309 of the Act possession affected by a disaster ADDRESSES: Send comments identified
and Section 107.1900 of the Small submits this information collection to by docket number FAA–2017–0995
Business Administration Rules and request that SBA issue a disaster using any of the following methods:
daltland on DSKBBV9HB2PROD with NOTICES

Regulations (13 CFR 107.1900) to declaration. The information identifies • Federal eRulemaking Portal: Go to
function as a small business investment the time, place and nature of the http://www.regulations.gov and follow
company under the Small Business incident and helps SBA to determine the online instructions for sending your
Investment Company License No. 08/ whether the regulatory criteria for a comments electronically.
08–0171 issued to UTFC Fund II, LLC, disaster declaration have been met, and • Mail: Send comments to Docket
disaster assistance can be made Operations, M–30; U.S. Department of
29 17 CFR 200.30–3(a)(12) and (59). available to the affected region. Transportation (DOT), 1200 New Jersey

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Document Created: 2017-12-15 23:54:47
Document Modified: 2017-12-15 23:54:47
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 60090