83_FR_16207 83 FR 16135 - Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify Rule 21.9 of the Exchange's Rules and Related Functionality Applicable to the Routing Options Made Available by the Exchange's Equity Options Platform

83 FR 16135 - Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify Rule 21.9 of the Exchange's Rules and Related Functionality Applicable to the Routing Options Made Available by the Exchange's Equity Options Platform

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 72 (April 13, 2018)

Page Range16135-16137
FR Document2018-07677

Federal Register, Volume 83 Issue 72 (Friday, April 13, 2018)
[Federal Register Volume 83, Number 72 (Friday, April 13, 2018)]
[Notices]
[Pages 16135-16137]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-07677]


=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83022; File No. SR-CboeEDGX-2018-012]


Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change To 
Modify Rule 21.9 of the Exchange's Rules and Related Functionality 
Applicable to the Routing Options Made Available by the Exchange's 
Equity Options Platform

April 9, 2018.
    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 April 9, 2018, Cboe EDGX Exchange, Inc. (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)(iii) 
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.
---------------------------------------------------------------------------

    \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)(iii).
---------------------------------------------------------------------------

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

    The Exchange filed a proposal to modify Rule 21.9 of Exchange's 
rules and related functionality applicable to the routing options made 
available by the Exchange's equity options platform (``EDGX Options'').
    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

[[Page 16136]]

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 modify Rule 21.9 to modify the description 
of two existing routing strategies (without modifying such strategies) 
and to adopt a new routing strategy. Exchange Rule 21.9 describes 
various options to route orders away from EDGX Options to other options 
exchanges. Rule 21.9(a)(2)(A) describes Parallel D routing as a routing 
option under which an order checks the System \5\ for available 
contracts and then is sent to destinations on the System routing table. 
Parallel 2D is described in Rule 21.9(a)(2)(B) in the same way. To 
distinguish the two options, however, Parallel D routing is described 
as a routing option that may route to multiple destinations at a single 
price level simultaneously whereas Parallel 2D routing is described as 
a routing option that may route to multiple destinations and at 
multiple price levels simultaneously. The Exchange proposes to retain 
this functionality but to change the refer to the routing strategy 
equivalent to both Parallel D and Parallel 2D as the ROUT routing 
option and then to specify that a User \6\ may select either Route To 
Improve (``RTI'') or Route To Fill (``RTF'') for the ROUT routing 
option, thus capturing the distinction between the two strategies. In 
other words, the RTI routing option would continue to function as the 
Parallel D routing option is described (i.e., routing at a single price 
level) and the RTF would continue to function as the Parallel 2D 
routing option is described (i.e., routing at multiple price levels). 
The proposed description is identical to and based on the description 
employed for the Exchange's cash equities trading platform (``EDGX 
Equities'').\7\ The Exchange does not propose any other changes to 
these routing options.
---------------------------------------------------------------------------

    \5\ The ``System'' is the automated trading system used by EDGX 
Options for the trading of options contracts. See Rule 16.1(a)(59).
    \6\ The term ``User'' means any Options Member or Sponsored 
Participant who is authorized to obtain access to the Exchange's 
System pursuant to Rule 11.3. See Rule 16.1(a)(63).
    \7\ See EDGX Rule 11.11(g)(13).
---------------------------------------------------------------------------

    The Exchange also proposes to adopt the SWPA routing option based 
on a similar routing option offered with respect to EDGX Equities. 
Specifically, as proposed, SWPA would be a routing option under which 
an order checks the System for available contracts and then is sent to 
only Protected Quotations \8\ and only for displayed size. Further, to 
the extent that any portion of the routed order is unexecuted, the 
remainder is posted to the EDGX Options Book at the order's limit 
price, unless otherwise instructed by the User. This proposed routing 
strategy is based on EDGX Rule 11.11(g)(9), and is identical except for 
references to ``contracts'' instead of ``shares'' and reference to the 
``EDGX Options Book'' instead of the ``EDGX Book.'' The Exchange also 
has not proposed to adopt the final sentence of the routing strategy as 
defined for EDGX Equities because that sentence is only necessary to 
differentiate the SWPA routing strategy from the SWPB routing strategy 
and the Exchange is not proposing to adopt SWPB routing for EDGX 
Options.
---------------------------------------------------------------------------

    \8\ The term Protected Quotation is defined in EDGX Rule 
27.1(a)(19) and has the same meaning as is set forth in Regulation 
NMS Rule 600(b)(58).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \9\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \10\ in particular, in that it is designed to 
promote just and equitable principles of trade, 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 change to the references to the Parallel D and Parallel 
2D routing options are intended to align the Exchange's routing 
strategies between EDGX Equities and EDGX Options. As noted above, 
there is no substantive change to the operation of the strategies.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The proposed rule change also is designed to support the principles 
of Section 11A(a)(1)\11\ of the Act in that it seeks to assure fair 
competition among brokers and dealers and among exchange markets. In 
particular, the proposed change to introduce an additional routing 
strategy will provide market participants with greater flexibility in 
routing orders consistent with the options market Options Order 
Protection and Locked/Crossed Market Plan without developing order 
routing strategies on their own. The Exchange again notes that the 
proposed routing strategy is based on and substantively identical to a 
routing option offered by EDGX Equities.\12\
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78k-1(a)(1).
    \12\ See EDGX Rule 11.11(g)(9).
---------------------------------------------------------------------------

(B) Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The Exchange notes that the 
proposal will further promote consistency between the Exchange's 
trading platforms for EDGX Equities and EDGX Options. The Exchange does 
not believe that the proposed changes will have any impact on inter-
market competition as the proposed SWPA routing strategy will be 
available to all Users. The Exchange does not believe that the proposed 
SWPA routing strategy will impose any burden on intra-market 
competition that is not necessary or appropriate in furtherance of the 
purposes of the Act. The Exchange provides routing services in a highly 
competitive market in which participants may avail themselves of a wide 
variety of routing options offered by self-regulatory organizations, 
other broker-dealers, market participants' own proprietary routing 
systems, and service bureaus. In such an environment, system 
enhancements such as the changes proposed in this rule filing do not 
burden competition, because they can succeed in attracting order flow 
to the Exchange only if they offer investors higher quality and better 
value than services offered by others.

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

    The Exchange has not solicited, and does not intend to solicit, 
comments on this proposed rule change. The Exchange has not received 
any written comments from members or other interested parties.

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) \13\ of the Act and Rule 19b-
4(f)(6) thereunder.\14\
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 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, along 
with a brief description and the text of 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.

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

[[Page 16137]]

    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \15\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \16\ 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 asked the Commission to waive the 30-day operative delay so that 
the proposal may become operative immediately upon filing. The Exchange 
states that waiver of the 30-day operative delay would allow Exchange 
Users to more quickly benefit from this proposed rule change and would 
be consistent with routing options that are already available on EDGX 
Equities. Based on the foregoing, the Commission believes the waiver of 
the operative delay is consistent with the protection of investors and 
the public interest. Therefore, the Commission hereby waives the 
operative delay and designates the proposal operative upon filing.\17\
---------------------------------------------------------------------------

    \15\ 17 CFR 240.19b-4(f)(6).
    \16\ 17 CFR 240.19b-4(f)(6)(iii).
    \17\ 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).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) otherwise in furtherance of the 
purposes of the Act. If the Commission takes such action, the 
Commission shall institute proceedings to determine whether the 
proposed rule should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File No. SR-CboeEDGX-2018-012 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-CboeEDGX-2018-012. 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 such filing will also be available for inspection 
and copying at the principal office of the Exchange. All comments 
received will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File No. SR-CboeEDGX-2018-012 and should be submitted 
on or before May 4, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\
---------------------------------------------------------------------------

    \18\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-07677 Filed 4-12-18; 8:45 am]
 BILLING CODE 8011-01-P



                                                                                Federal Register / Vol. 83, No. 72 / Friday, April 13, 2018 / Notices                                              16135

                                               comment submission available to the                     reporting + 58,000 hours                              SECURITIES AND EXCHANGE
                                               public in this docket.                                  recordkeeping).                                       COMMISSION
                                                 The NRC cautions you not to include                     10. Abstract: Part 54 of 10 CFR                     [Release No. 34–83022; File No. SR–
                                               identifying or contact information in                   establishes license renewal                           CboeEDGX–2018–012]
                                               comment submissions that you do not                     requirements for commercial nuclear
                                               want to be publicly disclosed in your                   power plants and describes the                        Self-Regulatory Organizations; Cboe
                                               comment submission. All comment                                                                               EDGX Exchange, Inc.; Notice of Filing
                                                                                                       information that licensees must submit
                                               submissions are posted at http://                                                                             and Immediate Effectiveness of a
                                                                                                       to the NRC when applying for a license
                                               www.regulations.gov and entered into                                                                          Proposed Rule Change To Modify Rule
                                               ADAMS. Comment submissions are not                      renewal. The application must contain
                                                                                                       information on how the licensee will                  21.9 of the Exchange’s Rules and
                                               routinely edited to remove identifying                                                                        Related Functionality Applicable to the
                                               or contact information.                                 manage the detrimental effects of age-
                                                                                                                                                             Routing Options Made Available by the
                                                 If you are requesting or aggregating                  related degradation on certain plant
                                                                                                                                                             Exchange’s Equity Options Platform
                                               comments from other persons for                         systems, structures, and components so
                                               submission to the NRC, then you should                  as to continue the plant’s safe operation             April 9, 2018.
                                               inform those persons not to include                     during the renewal term. The NRC                         Pursuant to Section 19(b)(1) of the
                                               identifying or contact information that                 needs this information to determine                   Securities Exchange Act of 1934 (the
                                               they do not want to be publicly                         whether the licensee’s actions will be                ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                               disclosed in their comment submission.                  effective in assuring the plants’                     notice is hereby given that on April 9,
                                               Your request should state that the NRC                  continued safe operation during the                   2018, Cboe EDGX Exchange, Inc. (the
                                               does not routinely edit comment                         period of extended operation. Holders of              ‘‘Exchange’’) filed with the Securities
                                               submissions to remove such information                  renewed licenses must retain in an                    and Exchange Commission
                                               before making the comment                               auditable and retrievable form, for the               (‘‘Commission’’) the proposed rule
                                               submissions available to the public or                  term of the renewed operating license,                change as described in Items I and II
                                               entering the comment submissions into                   all information and documentation                     below, which Items have been prepared
                                               ADAMS.                                                  required to document compliance with                  by the Exchange. The Exchange has
                                                                                                       10 CFR part 54. The NRC needs access                  designated this proposal as a ‘‘non-
                                               II. Background                                                                                                controversial’’ proposed rule change
                                                                                                       to this information for continuing
                                                  In accordance with the Paperwork                                                                           pursuant to Section 19(b)(3)(A) of the
                                                                                                       effective regulatory oversight.
                                               Reduction Act of 1995 (44 U.S.C.                                                                              Act 3 and Rule 19b–4(f)(6)(iii)
                                               Chapter 35), the NRC is requesting                      III. Specific Requests for Comments                   thereunder,4 which renders it effective
                                               public comment on its intention to                                                                            upon filing with the Commission. The
                                               request the OMB’s approval for the                        The NRC is seeking comments that                    Commission is publishing this notice to
                                               information collection summarized                       address the following questions:                      solicit comments on the proposed rule
                                               below:                                                    1. Is the proposed collection of                    change from interested persons.
                                                  1. The title of the information                      information necessary for the NRC to                  I. Self-Regulatory Organization’s
                                               collection: 10 CFR part 54,                             properly perform its functions? Does the              Statement of the Terms of Substance of
                                               ‘‘Requirements for Renewal of Operating                 information have practical utility?                   the Proposed Rule Change
                                               Licenses for Nuclear Power Plants.’’                      2. Is the estimate of the burden of the
                                                  2. OMB approval number: 3150–0155.                                                                            The Exchange filed a proposal to
                                                                                                       information collection accurate?                      modify Rule 21.9 of Exchange’s rules
                                                  3. Type of submission: Extension.
                                                  4. The form number, if applicable:                     3. Is there a way to enhance the                    and related functionality applicable to
                                               Not applicable.                                         quality, utility, and clarity of the                  the routing options made available by
                                                  5. How often the collection is required              information to be collected?                          the Exchange’s equity options platform
                                               or requested: There is a one-time                                                                             (‘‘EDGX Options’’).
                                                                                                         4. How can the burden of the
                                               application for any licensee wishing to                                                                          The text of the proposed rule change
                                                                                                       information collection on respondents                 is available at the Exchange’s website at
                                               renew the operating license for its                     be minimized, including the use of
                                               nuclear power plant. There is a one-time                                                                      www.markets.cboe.com, at the principal
                                                                                                       automated collection techniques or                    office of the Exchange, and at the
                                               requirement for each licensee with a                    other forms of information technology?
                                               renewed operating license to submit a                                                                         Commission’s Public Reference Room.
                                               letter documenting the completion of                      Dated at Rockville, Maryland, this 10th day
                                                                                                                                                             II. Self-Regulatory Organization’s
                                               inspection and testing activities. All                  of April 2018.
                                                                                                                                                             Statement of the Purpose of, and
                                               holders of renewed licenses must                          For the Nuclear Regulatory Commission.
                                                                                                                                                             Statutory Basis for, the Proposed Rule
                                               perform yearly record keeping.                          David Cullison,                                       Change
                                                  6. Who will be required or asked to                  NRC Clearance Officer, Office of the Chief
                                                                                                                                                               In its filing with the Commission, the
                                               respond: Commercial nuclear power                       Information Officer.
                                                                                                                                                             Exchange included statements
                                               plant licensees who wish to renew their                 [FR Doc. 2018–07729 Filed 4–12–18; 8:45 am]
                                                                                                                                                             concerning the purpose of and basis for
                                               operating licenses and holders of                       BILLING CODE 7590–01–P                                the proposed rule change and discussed
                                               renewed licenses.                                                                                             any comments it received on the
                                                  7. The estimated number of annual                                                                          proposed rule change. The text of these
                                               responses: 66 (8 reporting responses +                                                                        statements may be examined at the
daltland on DSKBBV9HB2PROD with NOTICES




                                               58 recordkeepers).                                                                                            places specified in Item IV below. The
                                                  8. The estimated number of annual                                                                          Exchange has prepared summaries, set
                                               respondents: 6.
                                                  9. The estimated number of hours                                                                             1 15 U.S.C. 78s(b)(1).
                                               needed annually to comply with the                                                                              2 17 CFR 240.19b–4.
                                               information collection requirement or                                                                           3 15 U.S.C. 78s(b)(3)(A).

                                               request: 226,320 (168,320 hours                                                                                 4 17 CFR 240.19b–4(f)(6)(iii).




                                          VerDate Sep<11>2014   19:04 Apr 12, 2018   Jkt 244001   PO 00000   Frm 00092   Fmt 4703   Sfmt 4703   E:\FR\FM\13APN1.SGM   13APN1


                                               16136                            Federal Register / Vol. 83, No. 72 / Friday, April 13, 2018 / Notices

                                               forth in Sections A, B, and C below, of                 option under which an order checks the                (B) Self-Regulatory Organization’s
                                               the most significant parts of such                      System for available contracts and then               Statement on Burden on Competition
                                               statements.                                             is sent to only Protected Quotations 8                   The Exchange does not believe that
                                                                                                       and only for displayed size. Further, to              the proposed rule change will impose
                                               (A) Self-Regulatory Organization’s
                                               Statement of the Purpose of, and                        the extent that any portion of the routed             any burden on competition that is not
                                               Statutory Basis for, the Proposed Rule                  order is unexecuted, the remainder is                 necessary or appropriate in furtherance
                                               Change                                                  posted to the EDGX Options Book at the                of the purposes of the Act. The
                                                                                                       order’s limit price, unless otherwise                 Exchange notes that the proposal will
                                               1. Purpose                                              instructed by the User. This proposed                 further promote consistency between
                                                  The Exchange proposes to modify                      routing strategy is based on EDGX Rule                the Exchange’s trading platforms for
                                               Rule 21.9 to modify the description of                  11.11(g)(9), and is identical except for              EDGX Equities and EDGX Options. The
                                               two existing routing strategies (without                references to ‘‘contracts’’ instead of                Exchange does not believe that the
                                               modifying such strategies) and to adopt                 ‘‘shares’’ and reference to the ‘‘EDGX                proposed changes will have any impact
                                               a new routing strategy. Exchange Rule                   Options Book’’ instead of the ‘‘EDGX                  on inter-market competition as the
                                               21.9 describes various options to route                 Book.’’ The Exchange also has not                     proposed SWPA routing strategy will be
                                               orders away from EDGX Options to                        proposed to adopt the final sentence of               available to all Users. The Exchange
                                               other options exchanges. Rule                           the routing strategy as defined for EDGX              does not believe that the proposed
                                               21.9(a)(2)(A) describes Parallel D                      Equities because that sentence is only                SWPA routing strategy will impose any
                                               routing as a routing option under which                 necessary to differentiate the SWPA                   burden on intra-market competition that
                                               an order checks the System 5 for                        routing strategy from the SWPB routing                is not necessary or appropriate in
                                               available contracts and then is sent to                 strategy and the Exchange is not                      furtherance of the purposes of the Act.
                                               destinations on the System routing                      proposing to adopt SWPB routing for                   The Exchange provides routing services
                                               table. Parallel 2D is described in Rule                 EDGX Options.                                         in a highly competitive market in which
                                               21.9(a)(2)(B) in the same way. To                       2. Statutory Basis                                    participants may avail themselves of a
                                               distinguish the two options, however,                                                                         wide variety of routing options offered
                                               Parallel D routing is described as a                       The Exchange believes that its
                                                                                                                                                             by self-regulatory organizations, other
                                               routing option that may route to                        proposal is consistent with Section 6(b)
                                                                                                                                                             broker-dealers, market participants’ own
                                               multiple destinations at a single price                 of the Act 9 in general, and furthers the
                                                                                                                                                             proprietary routing systems, and service
                                               level simultaneously whereas Parallel                   objectives of Section 6(b)(5) of the Act 10
                                                                                                                                                             bureaus. In such an environment,
                                               2D routing is described as a routing                    in particular, in that it is designed to
                                                                                                                                                             system enhancements such as the
                                               option that may route to multiple                       promote just and equitable principles of
                                                                                                                                                             changes proposed in this rule filing do
                                               destinations and at multiple price levels               trade, to remove impediments to and
                                                                                                                                                             not burden competition, because they
                                               simultaneously. The Exchange proposes                   perfect the mechanism of a free and
                                                                                                                                                             can succeed in attracting order flow to
                                               to retain this functionality but to change              open market and a national market
                                                                                                                                                             the Exchange only if they offer investors
                                               the refer to the routing strategy                       system, and, in general to protect
                                                                                                                                                             higher quality and better value than
                                               equivalent to both Parallel D and                       investors and the public interest. The
                                                                                                                                                             services offered by others.
                                               Parallel 2D as the ROUT routing option                  change to the references to the Parallel
                                               and then to specify that a User 6 may                   D and Parallel 2D routing options are                 (C) Self-Regulatory Organization’s
                                               select either Route To Improve (‘‘RTI’’)                intended to align the Exchange’s routing              Statement on Comments on the
                                               or Route To Fill (‘‘RTF’’) for the ROUT                 strategies between EDGX Equities and                  Proposed Rule Change Received From
                                               routing option, thus capturing the                      EDGX Options. As noted above, there is                Members, Participants or Others
                                               distinction between the two strategies.                 no substantive change to the operation                  The Exchange has not solicited, and
                                               In other words, the RTI routing option                  of the strategies.                                    does not intend to solicit, comments on
                                               would continue to function as the                          The proposed rule change also is                   this proposed rule change. The
                                               Parallel D routing option is described                  designed to support the principles of                 Exchange has not received any written
                                               (i.e., routing at a single price level) and             Section 11A(a)(1)11 of the Act in that it             comments from members or other
                                               the RTF would continue to function as                   seeks to assure fair competition among                interested parties.
                                               the Parallel 2D routing option is                       brokers and dealers and among
                                               described (i.e., routing at multiple price              exchange markets. In particular, the                  III. Date of Effectiveness of the
                                               levels). The proposed description is                    proposed change to introduce an                       Proposed Rule Change and Timing for
                                               identical to and based on the                           additional routing strategy will provide              Commission Action
                                               description employed for the                            market participants with greater                        Because the foregoing proposed rule
                                               Exchange’s cash equities trading                        flexibility in routing orders consistent              change does not: (i) Significantly affect
                                               platform (‘‘EDGX Equities’’).7 The                      with the options market Options Order                 the protection of investors or the public
                                               Exchange does not propose any other                     Protection and Locked/Crossed Market                  interest; (ii) impose any significant
                                               changes to these routing options.                       Plan without developing order routing                 burden on competition; and (iii) become
                                                  The Exchange also proposes to adopt                  strategies on their own. The Exchange                 operative for 30 days from the date on
                                               the SWPA routing option based on a                      again notes that the proposed routing                 which it was filed, or such shorter time
                                               similar routing option offered with                     strategy is based on and substantively                as the Commission may designate, it has
                                               respect to EDGX Equities. Specifically,                 identical to a routing option offered by              become effective pursuant to Section
                                               as proposed, SWPA would be a routing                    EDGX Equities.12                                      19(b)(3)(A) 13 of the Act and Rule 19b–
daltland on DSKBBV9HB2PROD with NOTICES




                                                 5 The ‘‘System’’ is the automated trading system                                                            4(f)(6) thereunder.14
                                                                                                         8 The term Protected Quotation is defined in
                                               used by EDGX Options for the trading of options
                                               contracts. See Rule 16.1(a)(59).                        EDGX Rule 27.1(a)(19) and has the same meaning          13 15  U.S.C. 78s(b)(3)(A).
                                                 6 The term ‘‘User’’ means any Options Member or       as is set forth in Regulation NMS Rule 600(b)(58).      14 17
                                                                                                         9 15 U.S.C. 78f(b).
                                                                                                                                                                      CFR 240.19b–4(f)(6). In addition, Rule 19b–
                                               Sponsored Participant who is authorized to obtain                                                             4(f)(6) requires a self-regulatory organization to give
                                                                                                         10 15 U.S.C. 78f(b)(5).
                                               access to the Exchange’s System pursuant to Rule                                                              the Commission written notice of its intent to file
                                               11.3. See Rule 16.1(a)(63).                               11 15 U.S.C. 78k–1(a)(1).
                                                                                                                                                             the proposed rule change, along with a brief
                                                 7 See EDGX Rule 11.11(g)(13).                           12 See EDGX Rule 11.11(g)(9).                       description and the text of the proposed rule



                                          VerDate Sep<11>2014   17:41 Apr 12, 2018   Jkt 244001   PO 00000   Frm 00093   Fmt 4703   Sfmt 4703   E:\FR\FM\13APN1.SGM    13APN1


                                                                                Federal Register / Vol. 83, No. 72 / Friday, April 13, 2018 / Notices                                                   16137

                                                  A proposed rule change filed                         Paper Comments                                        SECURITIES AND EXCHANGE
                                               pursuant to Rule 19b–4(f)(6) under the                                                                        COMMISSION
                                               Act 15 normally does not become                           • Send paper comments in triplicate
                                                                                                       to Secretary, Securities and Exchange                 [Release No. 34–83019; File No. SR–
                                               operative for 30 days after the date of its                                                                   CboeBZX–2018–023]
                                               filing. However, Rule 19b–4(f)(6)(iii) 16               Commission, 100 F Street NE,
                                               permits the Commission to designate a                   Washington, DC 20549–1090.                            Self-Regulatory Organizations; Cboe
                                               shorter time if such action is consistent               All submissions should refer to File No.              BZX Exchange, Inc.; Notice of Filing
                                               with the protection of investors and the                SR–CboeEDGX–2018–012. This file                       and Immediate Effectiveness of a
                                               public interest. The Exchange has asked                 number should be included on the                      Proposed Rule Change Related to
                                               the Commission to waive the 30-day                                                                            Transaction Fees for Use on Cboe BZX
                                                                                                       subject line if email is used. To help the
                                               operative delay so that the proposal may                                                                      Exchange, Inc.’s Equity Platform
                                                                                                       Commission process and review your
                                               become operative immediately upon
                                               filing. The Exchange states that waiver                 comments more efficiently, please use                 April 9, 2018.
                                               of the 30-day operative delay would                     only one method. The Commission will                     Pursuant to Section 19(b)(1) of the
                                               allow Exchange Users to more quickly                    post all comments on the Commission’s                 Securities Exchange Act of 1934 (the
                                               benefit from this proposed rule change                  internet website (http://www.sec.gov/                 ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                               and would be consistent with routing                    rules/sro.shtml). Copies of the                       notice is hereby given that on March 29,
                                               options that are already available on                   submission, all subsequent                            2018, Cboe BZX Exchange, Inc. (the
                                               EDGX Equities. Based on the foregoing,                  amendments, all written statements                    ‘‘Exchange’’ or ‘‘BZX’’) filed with the
                                               the Commission believes the waiver of                   with respect to the proposed rule                     Securities and Exchange Commission
                                               the operative delay is consistent with                  change that are filed with the                        (‘‘Commission’’) the proposed rule
                                               the protection of investors and the                     Commission, and all written                           change as described in Items I, II and III
                                               public interest. Therefore, the                         communications relating to the                        below, which Items have been prepared
                                               Commission hereby waives the                            proposed rule change between the                      by the Exchange. The Exchange has
                                               operative delay and designates the                      Commission and any person, other than                 designated the proposed rule change as
                                               proposal operative upon filing.17                       those that may be withheld from the                   one establishing or changing a member
                                                                                                       public in accordance with the                         due, fee, or other charge imposed by the
                                                  At any time within 60 days of the
                                                                                                       provisions of 5 U.S.C. 552, will be                   Exchange under Section 19(b)(3)(A)(ii)
                                               filing of the proposed rule change, the
                                                                                                                                                             of the Act 3 and Rule 19b–4(f)(2)
                                               Commission summarily may                                available for website viewing and
                                                                                                                                                             thereunder,4 which renders the
                                               temporarily suspend such rule change if                 printing in the Commission’s Public
                                                                                                                                                             proposed rule change effective upon
                                               it appears to the Commission that such                  Reference Room, 100 F Street NE,                      filing with the Commission. The
                                               action is: (i) Necessary or appropriate in              Washington, DC 20549, on official                     Commission is publishing this notice to
                                               the public interest; (ii) for the protection            business days between the hours of                    solicit comments on the proposed rule
                                               of investors; or (iii) otherwise in                     10:00 a.m. and 3:00 p.m. Copies of such               change from interested persons.
                                               furtherance of the purposes of the Act.                 filing will also be available for
                                               If the Commission takes such action, the                inspection and copying at the principal               I. Self-Regulatory Organization’s
                                               Commission shall institute proceedings                  office of the Exchange. All comments                  Statement of the Terms of Substance of
                                               to determine whether the proposed rule                  received will be posted without change.               the Proposed Rule Change
                                               should be approved or disapproved.                      Persons submitting comments are                          The Exchange filed a proposal to
                                               IV. Solicitation of Comments                            cautioned that we do not redact or edit               amend the fee schedule applicable to
                                                                                                       personal identifying information from                 Members 5 and non-Members of the
                                                 Interested persons are invited to                     comment submissions. You should                       Exchange pursuant to BZX Rules 15.1(a)
                                               submit written data, views and                          submit only information that you wish                 and (c).
                                               arguments concerning the foregoing,                     to make available publicly. All                          The text of the proposed rule change
                                               including whether the proposal is                                                                             is available at the Exchange’s website at
                                                                                                       submissions should refer to File No.
                                               consistent with the Act. Comments may                                                                         www.markets.cboe.com, at the principal
                                                                                                       SR–CboeEDGX–2018–012 and should be
                                               be submitted by any of the following                                                                          office of the Exchange, and at the
                                                                                                       submitted on or before May 4, 2018.
                                               methods:                                                                                                      Commission’s Public Reference Room.
                                                                                                         For the Commission, by the Division of
                                               Electronic Comments                                     Trading and Markets, pursuant to delegated            II. Self-Regulatory Organization’s
                                                                                                                                                             Statement of the Purpose of, and
                                                  • Use the Commission’s internet                      authority.18
                                                                                                                                                             Statutory Basis for, the Proposed Rule
                                               comment form (http://www.sec.gov/                       Eduardo A. Aleman,
                                                                                                                                                             Change
                                               rules/sro.shtml); or                                    Assistant Secretary.
                                                                                                                                                                In its filing with the Commission, the
                                                  • Send an email to rule-comments@                    [FR Doc. 2018–07677 Filed 4–12–18; 8:45 am]
                                                                                                                                                             Exchange included statements
                                               sec.gov. Please include File No. SR–                    BILLING CODE 8011–01–P
                                                                                                                                                             concerning the purpose of and basis for
                                               CboeEDGX–2018–012 on the subject
                                                                                                                                                             the proposed rule change and discussed
                                               line.
                                                                                                                                                             any comments it received on the
                                                                                                                                                             proposed rule change. The text of these
                                               change, at least five business days prior to the date
                                               of filing of the proposed rule change, or such
                                                                                                                                                             statements may be examined at the
                                               shorter time as designated by the Commission. The
daltland on DSKBBV9HB2PROD with NOTICES




                                                                                                                                                               1 15 U.S.C. 78s(b)(1).
                                               Exchange has satisfied this requirement.
                                                  15 17 CFR 240.19b–4(f)(6).                                                                                   2 17 CFR 240.19b–4.
                                                  16 17 CFR 240.19b–4(f)(6)(iii).                                                                              3 15 U.S.C. 78s(b)(3)(A)(ii).

                                                  17 For purposes only of waiving the 30-day                                                                   4 17 CFR 240.19b–4(f)(2).

                                               operative delay, the Commission has also                                                                        5 The term ‘‘Member’’ is defined as ‘‘any

                                               considered the proposed rule’s impact on                                                                      registered broker or dealer that has been admitted
                                               efficiency, competition, and capital formation. See                                                           to membership in the Exchange.’’ See Exchange
                                               15 U.S.C. 78c(f).                                         18 17   CFR 200.30–3(a)(12).                        Rule 1.5(n).



                                          VerDate Sep<11>2014   17:41 Apr 12, 2018   Jkt 244001   PO 00000   Frm 00094   Fmt 4703   Sfmt 4703   E:\FR\FM\13APN1.SGM   13APN1



Document Created: 2018-04-13 00:18:13
Document Modified: 2018-04-13 00:18:13
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation83 FR 16135 

2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR