83_FR_16233 83 FR 16161 - Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use on the Exchange's Equity Options Platform

83 FR 16161 - Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use on the Exchange's Equity Options Platform

SECURITIES AND EXCHANGE COMMISSION

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

Page Range16161-16163
FR Document2018-07671

Federal Register, Volume 83 Issue 72 (Friday, April 13, 2018) 
[Federal Register Volume 83, Number 72 (Friday, April 13, 2018)]
[Notices]
[Pages 16161-16163]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-07671]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83015; File No. SR-CboeEDGX-2018-010]


Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change Related 
to Fees for Use on 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 2, 2018, Cboe EDGX Exchange, Inc. (the ``Exchange'' or 
``EDGX'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II 
and III below, which Items have been prepared by the Exchange. The 
Exchange has designated the proposed rule change as one establishing or 
changing a member due, fee, or other charge imposed by the Exchange 
under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) 
thereunder,\4\ which renders the proposed rule change effective upon 
filing with the Commission. The Commission is publishing this notice to

[[Page 16162]]

solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange filed a proposal to amend the fee schedule applicable 
to Members \5\ and non-Members of the Exchange pursuant to EDGX Rules 
15.1(a) and (c).
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    \5\ The term ``Member'' is defined as ``any registered broker or 
dealer that has been admitted to membership in the Exchange.'' See 
Exchange Rule 1.5(n).
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    The text of the proposed rule change is available at the Exchange's 
website at www.markets.cboe.com, at the principal office of the 
Exchange, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend its fee schedule for its equity 
options platform (``EDGX Options'') to modify pricing for certain 
orders routed away from the Exchange and executed at various away 
options exchanges. Particularly, the Exchange proposes to amend routing 
fees for Directed ISO orders (as defined below), routed Non-Customer 
\6\ orders in Penny Pilot Securities and routed Customer orders to 
ARCA, C2, BZX Options, ISE, ISE Gemini, MIAX Pearl or NOM in Penny and 
Non-Penny Pilot Securities. The Exchange currently charges the 
following rates for these orders: (i) Directed Intermarket Sweep Orders 
(``ISOs'') (that are not otherwise specified in the Fee Schedule), 
which yield fee code D4, are charged $0.75 per contract, (ii) Non-
Customer orders in Penny Pilot Securities, which yield fee code RN, are 
charged $0.85 per contract; (iii) Customer orders to ARCA, C2, BZX 
Options, ISE, ISE Gemini, MIAX Pearl or NOM in Penny Pilot Securities, 
which yield fee code RQ, are charged $0.70 per contract; and (iv) 
Customer orders to ARCA, C2, BZX Options ISE, ISE Gemini, MIAX Pearl or 
NOM in Non-Penny Pilot Securities, which yield fee code RR, are charged 
$1.10 per contract. The Exchange is proposing to amend those rates as 
follows: (i) The fee for Directed ISO Orders would be increased to 
$0.85 per contract; (ii) the fee for Non-Customer Orders in Non-Penny 
[sic] Pilot Securities would be increased to $0.90 per contract; (iii) 
the fee for Customer orders to ARCA, C2, BZX Options, ISE, ISE Gemini, 
MIAX Pearl or NOM in Penny Pilot Securities would be increased to $0.85 
and (iv) the fee for Customer orders to ARCA, C2, BZX Options, ISE, ISE 
Gemini, MIAX Pearl or NOM in Non-Penny Pilot Securities would be 
increased to $1.25. The Exchange notes that the proposed amounts are in 
line with amounts assessed for similar transaction on other 
exchanges.\7\
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    \6\ ``Non-Customer'' applies to any transaction that is not a 
Customer Order. ``Customer'' applies to any transaction identified 
by a Member for clearing in the Customer range at the OCC, excluding 
any transaction for a Broker Dealer or a ``Professional'' as defined 
in Exchange Rule 16.1.
    \7\ See e.g., NYSE Arca Options Fees and Charges, Routing Fees.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 of the Act,\8\ in general, and 
furthers the objectives of Section 6(b)(4),\9\ in particular, as it is 
designed to provide for the equitable allocation of reasonable dues, 
fees and other charges among its Members and other persons using its 
facilities.
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    \8\ 15 U.S.C. 78f.
    \9\ 15 U.S.C. 78f(b)(4).
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    Particularly, the Exchange believes its proposed fees are 
reasonable taking into account routing costs and also notes that the 
proposed changes are in line with amounts assessed by other 
exchanges.\10\ The Exchange believes the proposed changes to its fees 
are equitable and not unfairly discriminatory because the proposed 
changes apply equally to all Members. The Exchange notes that routing 
through the Exchange is voluntary and also notes that it operates in a 
highly competitive market in which market participants can readily 
direct order flow to competing venues or providers of routing services 
if they deem fee levels to be excessive.
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    \10\ See e.g., NYSE Arca Options Fees and Charges, Routing Fees.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. The Exchange believes the 
proposed routing fees will not impose an undue burden on competition 
because the Exchange will uniformly assess the affected routing fees on 
all Members. Additionally, Members may opt to disfavor the Exchange's 
pricing if they believe that alternatives offer them better value or if 
they view the proposed fee as excessive. Further, excessive fees for 
participation would serve to impair an exchange's ability to compete 
for order flow and members rather than burdening competition.

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \11\ and paragraph (f) of Rule 19b-4 \12\ 
thereunder. At any time within 60 days of the filing of the proposed 
rule change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission will institute proceedings to 
determine whether the proposed rule change should be approved or 
disapproved.
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments

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

[[Page 16163]]

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-CboeEDGX-2018-010 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to File Number SR-CboeEDGX-2018-010. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (http://www.sec.gov/rules/sro.shtml). 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for website viewing and printing in 
the Commission's Public Reference Room, 100 F Street NE, Washington, DC 
20549, on official business days between the hours of 10:00 a.m. and 
3:00 p.m. Copies of the filing also will be available for inspection 
and copying at the principal office of the Exchange. All comments 
received will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-CboeEDGX-2018-010 and should be 
submitted on or before May 4, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-07671 Filed 4-12-18; 8:45 am]
 BILLING CODE 8011-01-P

Federal Register / Vol. 83, No. 72 / Friday, April 13, 2018 / Notices 16161 of members or competing order the Commission believes that waiver of public in accordance with the execution venues to maintain their the 30-day operative delay is consistent provisions of 5 U.S.C. 552, will be competitive standing in the financial with the protection of investors and the available for website viewing and markets. public interest. Accordingly, the printing in the Commission’s Public Furthermore, the Exchange does not Commission hereby waives the Reference Room, 100 F Street NE, expect that its proposals to eliminate or operative delay and designates the Washington, DC 20549 on official replace expired or obsolete language proposed rule change operative upon business days between the hours of from its Rulebook or to eliminate an filing.18 10:00 a.m. and 3:00 p.m. Copies of the obsolete $1,000 Direct Edge installation At any time within 60 days of the filing also will be available for fee will have any impact on filing of the proposed rule change, the inspection and copying at the principal competition. Commission summarily may office of the Exchange. All comments temporarily suspend such rule change if received will be posted without change. C. Self-Regulatory Organization’s it appears to the Commission that such Persons submitting comments are Statement on Comments on the action is necessary or appropriate in the cautioned that we do not redact or edit Proposed Rule Change Received From public interest, for the protection of personal identifying information from Members, Participants, or Others investors, or otherwise in furtherance of comment submissions. You should No written comments were either the purposes of the Act. If the submit only information that you wish solicited or received. Commission takes such action, the to make available publicly. All Commission shall institute proceedings submissions should refer to File III. Date of Effectiveness of the to determine whether the proposed rule Number SR–Phlx–2018–26, and should Proposed Rule Change and Timing for change should be approved or be submitted on or before May 4, 2018. Commission Action disapproved. For the Commission, by the Division of Because the foregoing proposed rule Trading and Markets, pursuant to delegated IV. Solicitation of Comments change does not: (i) Significantly affect authority.19 the protection of investors or the public Interested persons are invited to Eduardo A. Aleman, interest; (ii) impose any significant submit written data, views, and Assistant Secretary. burden on competition; and (iii) become arguments concerning the foregoing, [FR Doc. 2018–07672 Filed 4–12–18; 8:45 am] operative for 30 days from the date on including whether the proposed rule change is consistent with the Act. BILLING CODE 8011–01–P which it was filed, or such shorter time as the Commission may designate, it has Comments may be submitted by any of become effective pursuant to Section the following methods: SECURITIES AND EXCHANGE 19(b)(3)(A) of the Act 13 and Rule 19b– Electronic Comments COMMISSION 4(f)(6) thereunder.14 A proposed rule change filed • Use the Commission’s internet [Release No. 34–83015; File No. SR– pursuant to Rule 19b–4(f)(6) under the comment form (http://www.sec.gov/ CboeEDGX–2018–010] Act 15 normally does not become rules/sro.shtml); or • Send an email to rule-comments@ Self-Regulatory Organizations; Cboe operative for 30 days after the date of its EDGX Exchange, Inc.; Notice of Filing sec.gov. Please include File Number SR– filing. However, Rule 19b–4(f)(6)(iii) 16 and Immediate Effectiveness of a Phlx–2018–26 on the subject line. permits the Commission to designate a Proposed Rule Change Related to Fees shorter time if such action is consistent Paper Comments for Use on the Exchange’s Equity with the protection of investors and the • Send paper comments in triplicate Options Platform public interest. The Exchange has to Secretary, Securities and Exchange requested that the Commission waive Commission, 100 F Street NE, April 9, 2018. the 30-day operative delay so that the Washington, DC 20549–1090. Pursuant to Section 19(b)(1) of the proposed rule change may become All submissions should refer to File Securities Exchange Act of 1934 (the operative upon filing. The Commission Number SR–Phlx–2018–26. This file ‘‘Act’’),1 and Rule 19b–4 thereunder,2 notes that the proposal updates the number should be included on the notice is hereby given that on April 2, Exchange’s rules to reflect current and subject line if email is used. To help the 2018, Cboe EDGX Exchange, Inc. (the accurate information with respect to the Commission process and review your ‘‘Exchange’’ or ‘‘EDGX’’) filed with the Exchange’s services and fees. The comments more efficiently, please use Securities and Exchange Commission Commission also notes that the proposal only one method. The Commission will (‘‘Commission’’) the proposed rule harmonizes the Exchange’s services and post all comments on the Commission’s change as described in Items I, II and III fees with those of the other Nasdaq, Inc. internet website (http://www.sec.gov/ below, which Items have been prepared Exchanges, and that BX recently made rules/sro.shtml). Copies of the by the Exchange. The Exchange has similar changes to its rules.17 Therefore, submission, all subsequent designated the proposed rule change as amendments, all written statements one establishing or changing a member 13 15 U.S.C. 78s(b)(3)(A). with respect to the proposed rule due, fee, or other charge imposed by the 14 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– change that are filed with the Exchange under Section 19(b)(3)(A)(ii) 4(f)(6)(iii) requires a self-regulatory organization to give the Commission written notice of its intent to Commission, and all written of the Act 3 and Rule 19b–4(f)(2) file the proposed rule change, along with a brief communications relating to the thereunder,4 which renders the description and text of the proposed rule change, proposed rule change between the proposed rule change effective upon at least five business days prior to the date of filing filing with the Commission. The daltland on DSKBBV9HB2PROD with NOTICES of the proposed rule change, or such shorter time Commission and any person, other than as designated by the Commission. The Exchange those that may be withheld from the Commission is publishing this notice to has satisfied this requirement. 15 17 CFR 240.19b–4(f)(6). 19 17 CFR 200.30–3(a)(12). 18 For purposes only of waiving the 30-day 16 17 CFR 240.19b–4(f)(6)(iii). 1 15 U.S.C. 78s(b)(1). operative delay, the Commission also has 17 See Securities Exchange Act Release No. 82628 2 17 CFR 240.19b–4. considered the proposed rule’s impact on 3 15 U.S.C. 78s(b)(3)(A)(ii). (February 5, 2018), 83 FR 5818 (February 9, 2018) efficiency, competition, and capital formation. See (SR–BX–2018–006). 15 U.S.C. 78c(f). 4 17 CFR 240.19b–4(f)(2). VerDate Sep<11>2014 17:41 Apr 12, 2018 Jkt 244001 PO 00000 Frm 00118 Fmt 4703 Sfmt 4703 E:\FR\FM\13APN1.SGM 13APN1

16162 Federal Register / Vol. 83, No. 72 / Friday, April 13, 2018 / Notices solicit comments on the proposed rule contract, (ii) Non-Customer orders in B. Self-Regulatory Organization’s change from interested persons. Penny Pilot Securities, which yield fee Statement on Burden on Competition I. Self-Regulatory Organization’s code RN, are charged $0.85 per contract; (iii) Customer orders to ARCA, C2, BZX The Exchange does not believe that Statement of the Terms of Substance of the proposed rule change will impose the Proposed Rule Change Options, ISE, ISE Gemini, MIAX Pearl or NOM in Penny Pilot Securities, any burden on competition not The Exchange filed a proposal to which yield fee code RQ, are charged necessary or appropriate in furtherance amend the fee schedule applicable to of the purposes of the Act. The $0.70 per contract; and (iv) Customer Members 5 and non-Members of the Exchange believes the proposed routing orders to ARCA, C2, BZX Options ISE, Exchange pursuant to EDGX Rules fees will not impose an undue burden ISE Gemini, MIAX Pearl or NOM in 15.1(a) and (c). on competition because the Exchange The text of the proposed rule change Non-Penny Pilot Securities, which yield fee code RR, are charged $1.10 per will uniformly assess the affected is available at the Exchange’s website at routing fees on all Members. www.markets.cboe.com, at the principal contract. The Exchange is proposing to amend those rates as follows: (i) The fee Additionally, Members may opt to office of the Exchange, and at the disfavor the Exchange’s pricing if they Commission’s Public Reference Room. for Directed ISO Orders would be increased to $0.85 per contract; (ii) the believe that alternatives offer them II. Self-Regulatory Organization’s better value or if they view the proposed fee for Non-Customer Orders in Non- Statement of the Purpose of, and fee as excessive. Further, excessive fees Penny [sic] Pilot Securities would be Statutory Basis for, the Proposed Rule for participation would serve to impair increased to $0.90 per contract; (iii) the Change an exchange’s ability to compete for fee for Customer orders to ARCA, C2, In its filing with the Commission, the order flow and members rather than BZX Options, ISE, ISE Gemini, MIAX Exchange included statements burdening competition. Pearl or NOM in Penny Pilot Securities concerning the purpose of and basis for would be increased to $0.85 and (iv) the C. Self-Regulatory Organization’s the proposed rule change and discussed fee for Customer orders to ARCA, C2, Statement on Comments on the any comments it received on the BZX Options, ISE, ISE Gemini, MIAX Proposed Rule Change Received From proposed rule change. The text of these Pearl or NOM in Non-Penny Pilot Members, Participants or Others statements may be examined at the Securities would be increased to $1.25. places specified in Item IV below. The The Exchange has not solicited, and The Exchange notes that the proposed Exchange has prepared summaries, set does not intend to solicit, comments on amounts are in line with amounts forth in Sections A, B, and C below, of this proposed rule change. The the most significant parts of such assessed for similar transaction on other exchanges.7 Exchange has not received any written statements. comments from members or other A. Self-Regulatory Organization’s 2. Statutory Basis interested parties. Statement of the Purpose of, and The Exchange believes that the III. Date of Effectiveness of the Statutory Basis for, the Proposed Rule proposed rule change is consistent with Proposed Rule Change and Timing for Change Commission Action the objectives of Section 6 of the Act,8 1. Purpose in general, and furthers the objectives of Section 6(b)(4),9 in particular, as it is The foregoing rule change has become The Exchange proposes to amend its effective pursuant to Section 19(b)(3)(A) fee schedule for its equity options designed to provide for the equitable allocation of reasonable dues, fees and of the Act 11 and paragraph (f) of Rule platform (‘‘EDGX Options’’) to modify 19b–4 12 thereunder. At any time within pricing for certain orders routed away other charges among its Members and 60 days of the filing of the proposed rule from the Exchange and executed at other persons using its facilities. change, the Commission summarily may various away options exchanges. Particularly, the Exchange believes its temporarily suspend such rule change if Particularly, the Exchange proposes to proposed fees are reasonable taking into it appears to the Commission that such amend routing fees for Directed ISO account routing costs and also notes that action is necessary or appropriate in the orders (as defined below), routed Non- the proposed changes are in line with Customer 6 orders in Penny Pilot public interest, for the protection of amounts assessed by other exchanges.10 investors, or otherwise in furtherance of Securities and routed Customer orders The Exchange believes the proposed to ARCA, C2, BZX Options, ISE, ISE the purposes of the Act. If the changes to its fees are equitable and not Commission takes such action, the Gemini, MIAX Pearl or NOM in Penny unfairly discriminatory because the Commission will institute proceedings and Non-Penny Pilot Securities. The proposed changes apply equally to all to determine whether the proposed rule Exchange currently charges the following rates for these orders: (i) Members. The Exchange notes that change should be approved or Directed Intermarket Sweep Orders routing through the Exchange is disapproved. (‘‘ISOs’’) (that are not otherwise voluntary and also notes that it operates in a highly competitive market in which IV. Solicitation of Comments specified in the Fee Schedule), which yield fee code D4, are charged $0.75 per market participants can readily direct Interested persons are invited to order flow to competing venues or submit written data, views, and 5 The term ‘‘Member’’ is defined as ‘‘any providers of routing services if they arguments concerning the foregoing, daltland on DSKBBV9HB2PROD with NOTICES registered broker or dealer that has been admitted deem fee levels to be excessive. including whether the proposed rule to membership in the Exchange.’’ See Exchange Rule 1.5(n). change is consistent with the Act. 7 See e.g., NYSE Arca Options Fees and Charges, 6 ‘‘Non-Customer’’ applies to any transaction that Comments may be submitted by any of is not a Customer Order. ‘‘Customer’’ applies to any Routing Fees. 8 15 U.S.C. 78f. the following methods: transaction identified by a Member for clearing in 9 15 U.S.C. 78f(b)(4). the Customer range at the OCC, excluding any 11 15 U.S.C. 78s(b)(3)(A). transaction for a Broker Dealer or a ‘‘Professional’’ 10 See e.g., NYSE Arca Options Fees and Charges, as defined in Exchange Rule 16.1. Routing Fees. 12 17 CFR 240.19b–4(f). VerDate Sep<11>2014 17:41 Apr 12, 2018 Jkt 244001 PO 00000 Frm 00119 Fmt 4703 Sfmt 4703 E:\FR\FM\13APN1.SGM 13APN1

Federal Register / Vol. 83, No. 72 / Friday, April 13, 2018 / Notices 16163 Electronic Comments SECURITIES AND EXCHANGE Exchange’s parent holding company, COMMISSION Miami International Holdings, Inc. • Use the Commission’s internet (‘‘MIH’’) would be issued to a comment form (http://www.sec.gov/ [Release No. 34–83012; File No. SR– PEARL–2018–08] participating Member in exchange for rules/sro.shtml); or payment of an initial purchase price or • Send an email to rule-comments@ Self-Regulatory Organizations; MIAX the prepayment of certain ERP Exchange sec.gov. Please include File Number SR– PEARL, LLC; Notice of Filing and Fees 3 and the achievement of certain CboeEDGX–2018–010 on the subject Immediate Effectiveness of a Proposed liquidity volume thresholds on the line. Rule Change To Implement an Equity Exchange over a 32-month period. The Rights Program purpose of the Program is to promote Paper Comments the long-term interests of MIAX PEARL April 9, 2018. • Send paper comments in triplicate by providing incentives designed to Pursuant to the provisions of Section to Secretary, Securities and Exchange encourage future MIH owners and 19(b)(1) of the Securities Exchange Act Commission, 100 F Street NE, MIAX PEARL market participants to of 1934 (‘‘Act’’) 1 and Rule 19b–4 Washington, DC 20549–1090. thereunder,2 notice is hereby given that contribute to the growth and success of on April 6, 2018, MIAX PEARL, LLC MIAX PEARL, by being active liquidity All submissions should refer to File providers and takers to provide Number SR–CboeEDGX–2018–010. This (‘‘MIAX PEARL’’ or ‘‘Exchange’’) filed with the Securities and Exchange enhanced levels of trading volume to file number should be included on the MIAX PEARL’s market, through an Commission (‘‘Commission’’) a subject line if email is used. To help the opportunity to increase their proprietary proposed rule change as described in Commission process and review your Items I, II, and III below, which Items interests in MIAX PEARL’s enterprise comments more efficiently, please use have been prepared by the Exchange. value. only one method. The Commission will The Commission is publishing this Members that participate in the post all comments on the Commission’s notice to solicit comments on the Program will have two options to internet website (http://www.sec.gov/ proposed rule change from interested choose from: (i) An offering of I-Units; rules/sro.shtml). Copies of the persons. and/or (ii) an offering of J-Units.4 submission, all subsequent amendments, all written statements I. Self-Regulatory Organization’s I-Units Option with respect to the proposed rule Statement of the Terms of Substance of change that are filed with the the Proposed Rule Change Members that participate in the I-Unit The Exchange is filing a proposal to option of the Program will be issued for Commission, and all written implement an equity rights program. each unit (i) 31,870 shares of MIH communications relating to the The text of the proposed rule change common stock and (ii) warrants to proposed rule change between the is available on the Exchange’s website at purchase 384,474 shares of common Commission and any person, other than http://www.miaxoptions.com/rule- stock of MIH in exchange for such those that may be withheld from the filings/pearl at MIAX PEARL’s principal participant Member’s initial cash capital public in accordance with the office, and at the Commission’s Public contribution of $215,122.50, and with provisions of 5 U.S.C. 552, will be such warrants being exercisable upon available for website viewing and Reference Room. the achievement by the participating printing in the Commission’s Public II. Self-Regulatory Organization’s Member of certain volume thresholds on Reference Room, 100 F Street NE, Statement of the Purpose of, and the Exchange during a 32-month Washington, DC 20549, on official Statutory Basis for, the Proposed Rule measurement period commencing May business days between the hours of Change 1, 2018. A total of 2 I-Units will be 10:00 a.m. and 3:00 p.m. Copies of the In its filing with the Commission, the offered. The total equity ownership of filing also will be available for Exchange included statements MIH common stock held by any one inspection and copying at the principal concerning the purpose of and basis for office of the Exchange. All comments the proposed rule change and discussed 3 The ERP Exchange fees consist of: (a) received will be posted without change. any comments it received on the Transaction fees as set forth in Section 1)a of the Persons submitting comments are proposed rule change. The text of these MIAX PEARL Exchange Fee Schedule; (b) cautioned that we do not redact or edit membership fees as set forth in Section 3 of the statements may be examined at the MIAX PEARL Exchange Fee Schedule; (c) system personal identifying information from places specified in Item IV below. The connectivity fees as set forth in Section 5 of the comment submissions. You should Exchange has prepared summaries, set MIAX PEARL Exchange Fee Schedule; and (d) submit only information that you wish forth in sections A, B, and C below, of market data fees as set forth in Section 6 of the to make available publicly. All MIAX PEARL Exchange Fee Schedule (collectively, the most significant aspects of such the ‘‘ERP Exchange Fees’’). submissions should refer to File statements. 4 The Program which provides equity-like Number SR–CboeEDGX–2018–010 and consideration in exchange for market making or the A. Self-Regulatory Organization’s should be submitted on or before May provision of liquidity, order flow or volume is open Statement of the Purpose of, and to market participants generally. All MIAX PEARL 4, 2018. Statutory Basis for, the Proposed Rule Members may participate subject to their For the Commission, by the Division of Change satisfaction of eligibility requirements. To be Trading and Markets, pursuant to delegated designated as a participant Member, an applicant authority.13 1. Purpose must: (i) Be a Member in good standing of MIAX daltland on DSKBBV9HB2PROD with NOTICES PEARL; (ii) qualify as an ‘‘accredited investor’’ as Eduardo A. Aleman, The Exchange proposes to implement such term is defined in Regulation D of the an equity rights program (‘‘Program’’) Securities Act of 1933; and (iii) have executed all Assistant Secretary. required documentation for Program participation. pursuant to which units representing [FR Doc. 2018–07671 Filed 4–12–18; 8:45 am] Members may elect to participate in either or both the right to acquire equity in the of the options. If either the I-Unit or the J-Unit BILLING CODE 8011–01–P option is oversubscribed, the units in the 1 15 U.S.C. 78s(b)(1). oversubscribed option will be allocated on a pro- 13 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. rata basis that may result in a fractional allocation. VerDate Sep<11>2014 17:41 Apr 12, 2018 Jkt 244001 PO 00000 Frm 00120 Fmt 4703 Sfmt 4703 E:\FR\FM\13APN1.SGM 13APN1


Document Created: 2018-04-13 00:18:20
Document Modified: 2018-04-13 00:18:20
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 16161 
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