83 FR 15425 - Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To List and Trade the Shares of the GraniteShares Bitcoin ETF and the GraniteShares Short Bitcoin ETF Under BZX Rule 14.11(f)(4), Trust Issued Receipts
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 69 (April 10, 2018)
Federal Register Volume 83, Issue 69 (April 10, 2018)
| Page Range | 15425-15427 | |
| FR Document | 2018-07263 |
[Federal Register Volume 83, Number 69 (Tuesday, April 10, 2018)] [Notices] [Pages 15425-15427] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-07263] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82995; File No. SR-CboeBZX-2018-001] Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To List and Trade the Shares of the GraniteShares Bitcoin ETF and the GraniteShares Short Bitcoin ETF Under BZX Rule 14.11(f)(4), Trust Issued Receipts April 5, 2018. On January 5, 2018, Cboe BZX Exchange, Inc. (``BZX'' or ``Exchange'') 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 list and trade the shares (``Shares'') of the GraniteShares Bitcoin ETF (``Long Fund'') and the GraniteShares Short Bitcoin ETF (``Short Fund'') (each a ``Fund'' and, collectively, ``Funds'') issued by the GraniteShares ETP Trust (``Trust'') under BZX Rule 14.11(f)(4). The proposed rule change was published for comment in the Federal Register on January 18, 2018.\3\ On February 22, 2018, pursuant to Section 19(b)(2) of the Act,\4\ the Commission designated a longer period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to approve or disapprove the proposed rule change.\5\ The Commission has received no comment letters on the proposed rule change. This order institutes proceedings under Section 19(b)(2)(B) of the Act \6\ to determine whether to approve or disapprove the proposed rule change. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ See Securities Exchange Act Release No. 82484 (Jan. 11, 2018), 83 FR 2704 (Jan. 18, 2018) (``Notice''). \4\ 15 U.S.C. 78s(b)(2). \5\ See Securities Exchange Act Release No. 82759 (Feb. 22, 2018), 83 FR 8719 (Feb. 28, 2018). The Commission designated April 18, 2018 as the date by which the Commission shall approve or disapprove, or institute proceedings to determine whether to approve or disapprove, the proposed rule change. \6\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- I. Summary of the Proposal \7\ --------------------------------------------------------------------------- \7\ The Commission notes that additional information regarding the Trust, the Shares, and the Funds, including investment strategies, calculation of net asset value (``NAV'') and indicative fund value, creation and redemption procedures, and additional background information about bitcoin, the bitcoin network, and bitcoin futures contracts, among other things, can be found in the Notice (see supra note 3) and the registration statement filed with the Commission on Form S-1 (File No. 333-222109) under the Securities Act of 1933, as applicable. --------------------------------------------------------------------------- The Exchange proposes to list and trade the Shares under BZX Rule 14.11(f)(4), which governs the listing and trading of Trust Issued Receipts on the Exchange.\8\ Each Fund will be a series of the Trust, and the Trust and the Funds will be managed and controlled by GraniteShares Advisors LLC (``Sponsor''). Bank of New York Mellon will serve as administrator, custodian, and transfer agent for the Funds. Foreside Fund Services, LLC will serve as the distributor of the Shares (``Distributor''). The Trust will offer Shares of the Funds for sale through the Distributor in ``Creation Units'' in transactions with ``Authorized Participants'' who have entered into agreements with the Distributor.\9\ --------------------------------------------------------------------------- \8\ Rule 14.11(f)(4) applies to Trust Issued Receipts that invest in ``Financial Instruments.'' The term ``Financial Instruments,'' as defined in Rule 14.11(f)(4)(A)(iv), means any combination of investments, including cash; securities; options on securities and indices; futures contracts; options on futures contracts; forward contracts; equity caps, collars, and floors; and swap agreements. \9\ See Notice, supra note 3, at 2707. --------------------------------------------------------------------------- According to the Exchange, the Long Fund's investment objective will be to seek results (before fees and expenses) that, both for a single day and over time, correspond to the performance of lead month bitcoin futures contracts listed and traded on the Cboe Futures Exchange, Inc. (``Benchmark Futures Contract''). Conversely, the Short Fund's investment objective will be to seek results (before fees and expenses) that, on a daily basis, correspond to the inverse (-1x) of the daily performance of the Benchmark Futures Contracts for a single day. Each Fund generally intends to invest substantially all of its assets in the Benchmark Futures Contracts and cash and cash equivalents (which would be used to collateralize the Benchmark Futures Contracts), but may invest in other U.S. exchange listed bitcoin futures contracts, as available (together with Benchmark Futures [[Page 15426]] Contracts, collectively, ``Bitcoin Futures Contracts'').\10\ --------------------------------------------------------------------------- \10\ See Notice, supra note 3, at 2705-2706. --------------------------------------------------------------------------- Further, the Exchange states that, in the event that position, price, or accountability limits are reached with respect to Bitcoin Futures Contracts, each Fund may invest in U.S. listed swaps on bitcoin or the Benchmark Futures Contracts (``Listed Bitcoin Swaps''). In the event that position, price, or accountability limits are reached with respect to Listed Bitcoin Swaps, each Fund may invest in over-the- counter swaps on bitcoin or the Benchmark Futures Contracts (``OTC Bitcoin Swaps,'' and together with Listed Bitcoin Swaps, collectively, ``Bitcoin Swaps'').\11\ --------------------------------------------------------------------------- \11\ See id. at 2706. --------------------------------------------------------------------------- II. Proceedings To Determine Whether To Approve or Disapprove SR- CboeBZX-2018-001 and Grounds for Disapproval Under Consideration The Commission is instituting proceedings pursuant to Section 19(b)(2)(B) of the Act \12\ to determine whether the proposed rule change should be approved or disapproved. Institution of such proceedings is appropriate at this time in view of the legal and policy issues raised by the proposed rule change. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as described below, the Commission seeks and encourages interested persons to provide comments on the proposed rule change. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- Pursuant to Section 19(b)(2)(B) of the Act,\13\ the Commission is providing notice of the grounds for disapproval under consideration. The Commission is instituting proceedings to allow for additional analysis of the proposed rule change's consistency with Section 6(b)(5) of the Act, which requires, among other things, that the rules of a national securities exchange be ``designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade,'' and ``to protect investors and the public interest.'' \14\ --------------------------------------------------------------------------- \13\ Id. \14\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- III. Procedure: Request for Written Comments The Commission requests that interested persons provide written submissions of their views, data, and arguments with respect to the issues identified above, as well as any other concerns they may have with the proposal. In particular, the Commission invites the written views of interested persons concerning whether the proposal is consistent with Section 6(b)(5) or any other provision of the Act, or the rules and regulations thereunder. Although there do not appear to be any issues relevant to approval or disapproval that would be facilitated by an oral presentation of views, data, and arguments, the Commission will consider, pursuant to Rule 19b-4, any request for an opportunity to make an oral presentation.\15\ --------------------------------------------------------------------------- \15\ Section 19(b)(2) of the Act, as amended by the Securities Act Amendments of 1975, Public Law 94-29 (June 4, 1975), grants the Commission flexibility to determine what type of proceeding--either oral or notice and opportunity for written comments--is appropriate for consideration of a particular proposal by a self-regulatory organization. See Securities Act Amendments of 1975, Senate Comm. on Banking, Housing & Urban Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30 (1975). --------------------------------------------------------------------------- Interested persons are invited to submit written data, views, and arguments regarding whether the proposal should be approved or disapproved by May 1, 2018. Any person who wishes to file a rebuttal to any other person's submission must file that rebuttal by May 15, 2018. The Commission asks that commenters address the sufficiency of the Exchange's statements in support of the proposal, which are set forth in the Notice,\16\ in addition to any other comments they may wish to submit about the proposed rule change. In particular, the Commission seeks comment on the following: --------------------------------------------------------------------------- \16\ See supra note 3. --------------------------------------------------------------------------- 1. In its proposal, the Exchange states that each Fund, in the event that position, price, or accountability limits are reached with respect to Bitcoin Futures Contracts, may also invest in Listed Bitcoin Swaps. What are commenters' views on the current availability of Listed Bitcoin Swaps for trading? What are commenters' views on the ability of the Funds to invest in Listed Bitcoin Swaps in the event that position, price, or accountability limits are reached with respect to Bitcoin Futures Contracts? 2. In its proposal, the Exchange states that each Fund, in the event that position, price, or accountability limits are reached with respect to Listed Bitcoin Swaps, may also invest in OTC Bitcoin Swaps. What are commenters' views on the current availability of OTC Bitcoin Swaps for trading? What are commenters' views on the ability of the Funds to invest in OTC Bitcoin Swaps in the event that position, price, or accountability limits are reached with respect to Listed Bitcoin Swaps? 3. What are commenters' views on whether the Funds would have the information necessary to adequately value, including fair value, the Bitcoin Futures Contracts and the Bitcoin Swaps when determining an appropriate end-of-day NAV for the Funds, taking into account any volatility, fragmentation, or general lack of regulation of the underlying bitcoin markets? 4. What are commenters' views on the potential impact of manipulation in the underlying bitcoin markets on the Funds' NAV? What are commenters' views on the potential effect of such manipulation on the valuation of a Fund's Bitcoin Futures Contracts? What are commenters' views on the potential effect of such manipulation on the pricing of a Fund's Bitcoin Swaps? 5. What are commenters' views on how the Funds' valuation policies would address the potential for the bitcoin blockchain to diverge into different paths (i.e., a ``fork'')? 6. What are commenters' views on the price differentials and trading volumes across bitcoin trading platforms (including during periods of market stress) and on the extent to which these differing prices may affect the trading of the Bitcoin Futures Contracts and, accordingly, trading in the Shares of the Funds? 7. What are commenters' views on how the substantial margin requirements for Bitcoin Futures Contracts, and the nature of liquidity and volatility in the market for Bitcoin Futures Contracts, might affect the Trust's ability to meet redemption orders? What are commenters' views on whether and how the margin requirements for Bitcoin Futures Contracts, and the nature of liquidity and volatility in the market for Bitcoin Futures Contracts, might affect a Fund's use of available cash to achieve its investment strategy? 8. What are commenters' views on the possibility that the Funds-- along with other exchange-traded products with similar investment objectives--could acquire a substantial portion of the market for Bitcoin Futures Contracts or the Bitcoin Swaps? What are commenters' views on whether such a concentration of holdings could affect the Funds' portfolio management, the liquidity of the Funds' respective portfolios, or the pricing of the Bitcoin Futures Contracts or the Bitcoin Swaps? What are commenters' views on the Exchange's representation that it expects significant liquidity to exist in [[Page 15427]] the market for Bitcoin Futures Contracts? 9. What are commenters' views on possible factors that might impair the ability of the arbitrage mechanism to keep the trading price of the Shares tied to the NAV of each Fund? With respect to the market for Bitcoin Futures Contracts, what are commenters' views on the potential impact on the arbitrage mechanism of the price volatility and the potential for trading halts? What are commenters' views on whether or how these potential impairments of the arbitrage mechanism may affect the Funds' ability to ensure adequate participation by Authorized Participants? What are commenters' views on the potential effects on investors if the arbitrage mechanism is impaired? 10. What are commenters' views on the risks of price manipulation and fraud in the underlying bitcoin trading platforms and how these risks might affect the Bitcoin Futures Contracts market or the Bitcoin Swaps? What are commenters' views on how these risks might affect trading in the Shares of the Funds? 11. What are commenters' views on how an investor may evaluate the price of the Shares in light of the risk of potential price manipulation and fraud in the underlying bitcoin trading platforms and in light of the potentially significant spread between the price of the Bitcoin Futures Contracts or the Bitcoin Swaps and the spot price of bitcoin? 12. What are commenters' views on whether the two bitcoin futures exchanges represent a significant market, i.e., a market of significant size? Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File No. SR-CboeBZX-2018-001 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090. All submissions should refer to File No. SR-CboeBZX-2018-001. The 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 No. SR-CboeBZX-2018-001 and should be submitted by May 1, 2018. Rebuttal comments should be submitted by May 15, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\17\ --------------------------------------------------------------------------- \17\ 17 CFR 200.30-3(a)(57). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-07263 Filed 4-9-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 69 / Tuesday, April 10, 2018 / Notices 15425
views to the Department of State, the 5. The Secretary shall arrange for 19(b)(2)(B) of the Act 6 to determine
Commission establishes July 3, 2018, as publication of this order in the Federal whether to approve or disapprove the
the deadline for submission of Register. proposed rule change.
comments on the principles that should By the Commission.
guide development of its views, as well I. Summary of the Proposal 7
Stacy L. Ruble,
as those on the consistency of proposals The Exchange proposes to list and
Secretary.
subject to subchapter I of chapter 36 trade the Shares under BZX Rule
[FR Doc. 2018–07340 Filed 4–9–18; 8:45 am]
with the standards and criteria of 39
BILLING CODE 7710–FW–P 14.11(f)(4), which governs the listing
U.S.C. 3622. Comments are to be
and trading of Trust Issued Receipts on
submitted in the above captioned docket
the Exchange.8 Each Fund will be a
via the Commission’s website at http://
www.prc.gov unless a request for waiver SECURITIES AND EXCHANGE series of the Trust, and the Trust and the
is approved. For assistance with filing, COMMISSION Funds will be managed and controlled
contact the Commission’s docket section by GraniteShares Advisors LLC
at 202–789–6846 or dockets@prc.gov. [Release No. 34–82995; File No. SR– (‘‘Sponsor’’). Bank of New York Mellon
CboeBZX–2018–001] will serve as administrator, custodian,
Public Representative. Section 505 of
title 39 requires the designation of an and transfer agent for the Funds.
Self-Regulatory Organizations; Cboe Foreside Fund Services, LLC will serve
officer of the Commission (public BZX Exchange, Inc.; Order Instituting
representative) to represent the interests as the distributor of the Shares
Proceedings To Determine Whether To
of the general public in all public (‘‘Distributor’’). The Trust will offer
Approve or Disapprove a Proposed
proceedings. The Commission Shares of the Funds for sale through the
Rule Change To List and Trade the
designates Kenneth E. Richardson as Distributor in ‘‘Creation Units’’ in
Shares of the GraniteShares Bitcoin
Public Representative in this ETF and the GraniteShares Short transactions with ‘‘Authorized
proceeding. Bitcoin ETF Under BZX Rule Participants’’ who have entered into
Availability of documents. Pursuant 14.11(f)(4), Trust Issued Receipts agreements with the Distributor.9
to rule 3017.3(b), the Commission According to the Exchange, the Long
directs the Secretary of the Commission April 5, 2018. Fund’s investment objective will be to
to arrange for the prompt posting on the On January 5, 2018, Cboe BZX seek results (before fees and expenses)
Commission’s website of the Exchange, Inc. (‘‘BZX’’ or ‘‘Exchange’’) that, both for a single day and over time,
correspondence identified in this Order. filed with the Securities and Exchange correspond to the performance of lead
The Commission will post other Commission (‘‘Commission’’), pursuant month bitcoin futures contracts listed
documents in this docket when the to Section 19(b)(1) of the Securities and traded on the Cboe Futures
Commission determines such other Exchange Act of 1934 (‘‘Act’’) 1 and Rule Exchange, Inc. (‘‘Benchmark Futures
documents are applicable and are able 19b–4 thereunder,2 a proposed rule
Contract’’). Conversely, the Short Fund’s
to be made publicly available. change to list and trade the shares
investment objective will be to seek
Federal Register publication. Rule (‘‘Shares’’) of the GraniteShares Bitcoin
results (before fees and expenses) that,
3017.3(c) requires publication in the ETF (‘‘Long Fund’’) and the
GraniteShares Short Bitcoin ETF (‘‘Short on a daily basis, correspond to the
Federal Register of the notice
establishing a docket authorized under Fund’’) (each a ‘‘Fund’’ and, inverse (¥1x) of the daily performance
part 3017. 39 CFR 3017.3(c). Pursuant to collectively, ‘‘Funds’’) issued by the of the Benchmark Futures Contracts for
this rule, the Commission directs the GraniteShares ETP Trust (‘‘Trust’’) a single day. Each Fund generally
Secretary of the Commission to arrange under BZX Rule 14.11(f)(4). The intends to invest substantially all of its
for prompt publication of this Order in proposed rule change was published for assets in the Benchmark Futures
the Federal Register. comment in the Federal Register on Contracts and cash and cash equivalents
January 18, 2018.3 On February 22, (which would be used to collateralize
III. Ordering Paragraphs the Benchmark Futures Contracts), but
2018, pursuant to Section 19(b)(2) of the
It is ordered: Act,4 the Commission designated a may invest in other U.S. exchange listed
1. The Commission establishes Docket longer period within which to approve bitcoin futures contracts, as available
No. IM2018–1 for purposes related to the proposed rule change, disapprove (together with Benchmark Futures
the development of section 407(c)(1) the proposed rule change, or institute
views and invites public comments proceedings to determine whether to 6 15 U.S.C. 78s(b)(2)(B).
related to this effort, as described in the approve or disapprove the proposed 7 The Commission notes that additional
body of this Order. rule change.5 The Commission has information regarding the Trust, the Shares, and the
Funds, including investment strategies, calculation
2. Comments are due no later than received no comment letters on the of net asset value (‘‘NAV’’) and indicative fund
July 3, 2018. proposed rule change. This order value, creation and redemption procedures, and
3. Pursuant to 39 U.S.C. 505, Kenneth institutes proceedings under Section additional background information about bitcoin,
the bitcoin network, and bitcoin futures contracts,
E. Richardson is appointed to serve as among other things, can be found in the Notice (see
an officer of the Commission (Public 1 15 U.S.C. 78s(b)(1). supra note 3) and the registration statement filed
Representative) to represent the 2 17 CFR 240.19b–4. with the Commission on Form S–1 (File No. 333–
3 See Securities Exchange Act Release No. 82484 222109) under the Securities Act of 1933, as
interests of the general public in this
(Jan. 11, 2018), 83 FR 2704 (Jan. 18, 2018) applicable.
docket.
daltland on DSKBBV9HB2PROD with NOTICES
(‘‘Notice’’). 8 Rule 14.11(f)(4) applies to Trust Issued Receipts
4. The Secretary is directed to post the 4 15 U.S.C. 78s(b)(2). that invest in ‘‘Financial Instruments.’’ The term
correspondence referred to in this Order 5 See Securities Exchange Act Release No. 82759 ‘‘Financial Instruments,’’ as defined in Rule
on the Commission’s website, along (Feb. 22, 2018), 83 FR 8719 (Feb. 28, 2018). The 14.11(f)(4)(A)(iv), means any combination of
with other documents that the Commission designated April 18, 2018 as the date investments, including cash; securities; options on
by which the Commission shall approve or securities and indices; futures contracts; options on
Commission determines are applicable disapprove, or institute proceedings to determine futures contracts; forward contracts; equity caps,
and are able to be made publicly whether to approve or disapprove, the proposed collars, and floors; and swap agreements.
available. rule change. 9 See Notice, supra note 3, at 2707.
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![Federal Register / Vol. 83, No. 69 / Tuesday, April 10, 2018 / Notices 15427
the market for Bitcoin Futures rules/sro.shtml). Copies of the The Exchange has designated the
Contracts? submission, all subsequent proposed rule change as one
9. What are commenters’ views on amendments, all written statements establishing or changing a member due,
possible factors that might impair the with respect to the proposed rule fee, or other charge imposed by the
ability of the arbitrage mechanism to change that are filed with the Exchange under Section 19(b)(3)(A)(ii)
keep the trading price of the Shares tied Commission, and all written of the Act 3 and Rule 19b–4(f)(2)
to the NAV of each Fund? With respect communications relating to the thereunder,4 which renders the
to the market for Bitcoin Futures proposed rule change between the proposed rule change effective upon
Contracts, what are commenters’ views Commission and any person, other than filing with the Commission. The
on the potential impact on the arbitrage those that may be withheld from the Commission is publishing this notice to
mechanism of the price volatility and public in accordance with the solicit comments on the proposed rule
the potential for trading halts? What are provisions of 5 U.S.C. 552, will be change from interested persons.
commenters’ views on whether or how available for website viewing and
I. Self-Regulatory Organization’s
these potential impairments of the printing in the Commission’s Public
Statement of the Terms of Substance of
arbitrage mechanism may affect the Reference Room, 100 F Street NE,
the Proposed Rule Change
Funds’ ability to ensure adequate Washington, DC 20549, on official
participation by Authorized business days between the hours of The Exchange proposes to amend the
Participants? What are commenters’ 10:00 a.m. and 3:00 p.m. Copies of the Cboe Data Services (‘‘CDS’’) fee
views on the potential effects on filing also will be available for schedule to establish an optional
investors if the arbitrage mechanism is inspection and copying at the principal Enhanced Controlled Data Distribution
impaired? office of the Exchange. All comments Fee to further the distribution of the
10. What are commenters’ views on received will be posted without change. BBO,5 Book Depth,6 and Complex Order
the risks of price manipulation and Persons submitting comments are Book 7 (‘‘COB’’) data feeds (collectively,
fraud in the underlying bitcoin trading cautioned that we do not redact or edit ‘‘Cboe Options Data Feeds’’).8
platforms and how these risks might personal identifying information from The text of the proposed rule
affect the Bitcoin Futures Contracts comment submissions. You should change is also available on the
market or the Bitcoin Swaps? What are submit only information that you wish Exchange’s website (http://
commenters’ views on how these risks to make available publicly. All www.cboe.com/AboutCBOE/CBOELegal
might affect trading in the Shares of the submissions should refer to File No. RegulatoryHome.aspx), at the
Funds? SR–CboeBZX–2018–001 and should be
3 15 U.S.C. 78s(b)(3)(A)(ii).
11. What are commenters’ views on submitted by May 1, 2018. Rebuttal 4 17 CFR 240.19b–4(f)(2).
how an investor may evaluate the price comments should be submitted by May 5 The BBO Data Feed is a real-time data feed that
of the Shares in light of the risk of 15, 2018. includes the following information: (i) Outstanding
potential price manipulation and fraud For the Commission, by the Division of quotes and standing orders at the best available
in the underlying bitcoin trading Trading and Markets, pursuant to delegated price level on each side of the market; (ii) executed
trades time, size, and price; (iii) totals of customer
platforms and in light of the potentially authority.17
versus non-customer contracts at the best bid and
significant spread between the price of Eduardo A. Aleman, offer (‘‘BBO’’); (iv) all-or-none contingency orders
the Bitcoin Futures Contracts or the Assistant Secretary. priced better than or equal to the BBO; (v) expected
Bitcoin Swaps and the spot price of opening price and expected opening size; (vi) end-
[FR Doc. 2018–07263 Filed 4–9–18; 8:45 am] of-day summaries by product, including open, high,
bitcoin? BILLING CODE 8011–01–P low, and closing price during the trading session;
12. What are commenters’ views on (vi) recap messages any time there is a change in
whether the two bitcoin futures the open, high, low or last sale price of a listed
exchanges represent a significant option; (vii) COB information; and (viii) product IDs
SECURITIES AND EXCHANGE and codes for all listed options contracts. The quote
market, i.e., a market of significant size? COMMISSION and last sale data contained in the BBO data feed
Comments may be submitted by any is identical to the data sent to the Options Price
of the following methods: [Release No. 34–82991; File No. SR–CBOE– Reporting Authority (‘‘OPRA’’) for redistribution to
2018–026] the public.
Electronic Comments 6 The Book Depth Data Feed is a real-time, low
• Use the Commission’s internet Self-Regulatory Organizations; Cboe latency data feed that includes all data contained
comment form (http://www.sec.gov/ Exchange, Inc.; Notice of Filing and in the BBO Data Feed described above plus
Immediate Effectiveness of a Proposed outstanding quotes and standing orders up to the
rules/sro.shtml); or first four price levels on each side of the market,
• Send an email to rule-comments@ Rule Change Relating to Market Data with aggregate size.
sec.gov. Please include File No. SR– Fees 7 The COB Data Feed is a real-time data feed that
CboeBZX–2018–001 on the subject line. includes data regarding the Exchange’s Complex
April 4, 2018. Order Book and related complex order information.
Paper Comments Pursuant to Section 19(b)(1) of the The COB Data Feed contains the following
Securities Exchange Act of 1934 (the information for all Exchange-traded complex order
• Send paper comments in triplicate ‘‘Act’’),1 and Rule 19b–4 thereunder,2 strategies (multi-leg strategies such as spreads,
to Secretary, Securities and Exchange straddles and buy-writes): (i) Outstanding quotes
notice is hereby given that on March 28, and standing orders on each side of the market with
Commission, 100 F Street NE, 2018, Cboe Exchange, Inc. (the aggregate size, (ii) data with respect to executed
Washington, DC 20549–1090. ‘‘Exchange’’ or ‘‘Cboe Options’’) filed trades (‘‘last sale data’’), and (iii) totals of customer
All submissions should refer to File No. with the Securities and Exchange versus non-customer contracts.
8 The ECDD Fee is based on The Nasdaq Stock
SR–CboeBZX–2018–001. The file Commission (‘‘Commission’’) the
daltland on DSKBBV9HB2PROD with NOTICES
Market LLC’s (‘‘Nasdaq’’) Enhanced Display
number should be included on the proposed rule change as described in Solution fee. See Nasdaq Rule 7026(a). See also
subject line if email is used. To help the Items I, II and III below, which Items Securities Exchange Act Release Nos. 66165
Commission process and review your have been prepared by the Exchange. (January 17, 2012), 77 FR 3313 (January 23, 2012)
comments more efficiently, please use (Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change to Establish an Enhanced
only one method. The Commission will 17 17 CFR 200.30–3(a)(57). Display Distributor Fee); and 73807 (December 10,
post all comments on the Commission’s 1 15 U.S.C. 78s(b)(1). 2014), 79 FR 74784 (December 16, 2014) (SR–
internet website (http://www.sec.gov/ 2 17 CFR 240.19b–4. Nasdaq–2014–117).
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Document Created: 2018-04-09 23:52:06
Document Modified: 2018-04-09 23:52:06
| 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 | 83 FR 15425 |
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