83 FR 1641 - Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 9 (January 12, 2018)

[Federal Register Volume 83, Number 9 (Friday, January 12, 2018)]
[Notices]
[Pages 1641-1642]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-00412]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82461; File No. SR-CBOE-2017-083]


Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
the Fees Schedule

January 8, 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 December 26, 2017, Cboe Exchange, Inc. (the ``Exchange'' or 
``Cboe Options'') filed with the Securities and Exchange Commission 
(the ``Commission'') the proposed rule change as described in Items I, 
II, and III below, which Items have been prepared by the Exchange. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend its Fees Schedule. Footnotes 24 and 
25 describe the Market-Maker Trading Permit Sliding Scale and Floor 
Broker Trading Permit Sliding Scale programs, respectively.
    The text of the proposed rule change is also available on the 
Exchange's website (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the 
Secretary, 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 aspects 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 Fees Schedule. Footnotes 24 and 
25 describe the Market-Maker Trading Permit Sliding Scale and Floor 
Broker Trading Permit Sliding Scale programs, respectively.\3\ Each 
program requires a Trading Permit Holder to commit in advance to a 
specific tier that includes a minimum number of eligible Market-Maker 
Trading Permits or Floor Broker Trading Permits, as applicable, for 
each calendar. To do so, a Trading Permit Holder must notify the 
Registration Services Department by December 25th (or the preceding 
business day if the 25th is not a business day) of the year prior to 
each year in which the Trading Permit Holder would like to commit to 
the sliding scale of the tier of eligible Trading Permits committed to 
by that Trading Permit Holder for that year.
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    \3\ This filing was originally submitted on December 26, 2017 as 
SR-CBOE-2017-081. SR-CBOE-2017-081 was withdrawn on December 26, 
2017 and replaced by SR-CBOE-2017-082. SR-CBOE-2017-082 was 
withdrawn on December 26, 2017 and replaced by this filing.
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    Generally, the Exchange issues a Regulatory Circular to remind 
Trading Permit Holders of this notification deadline, including a 
description of how Trading Permit Holders should notify the 
Registration Services Department. However, for the 2018 sliding scale 
program, the Exchange was unable to issue a reminder until December 22, 
2017, which is the business day prior to December 25, 2017, and thus 
the notification deadline. To ensure Trading Permit Holders have 
sufficient time to provide notification to the Exchange regarding their 
tier commitments for 2018, the Exchange

[[Page 1642]]

proposes to amend the descriptions of these programs in footnotes 24 
and 25 to require Trading Permit Holders to notify the Registration 
Services Department by December 29th (or the preceding business day if 
the 29th is not a business day).
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Securities Exchange Act of 1934 (the ``Act'') and the rules and 
regulations thereunder applicable to the Exchange and, in particular, 
the requirements of Section 6(b) of the Act.\4\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \5\ requirements that the rules of an exchange be 
designed to prevent fraudulent and manipulative acts and practices, to 
promote just and equitable principles of trade, to foster cooperation 
and coordination with persons engaged in regulating, clearing, 
settling, processing information with respect to, and facilitating 
transactions in securities, to remove impediments to and perfect the 
mechanism of a free and open market and a national market system, and, 
in general, to protect investors and the public interest. Additionally, 
the Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \6\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers. In particular, the proposed rule change removes 
impediments to and perfects the mechanism of a free and open market and 
a national market system, and, in general, to protects investors and 
the public interest because it ensures Trading Permit Holders will have 
sufficient time to notify the Exchange regarding their tier commitments 
in the Market-Maker and Floor Broker Trading Permit sliding scale 
programs for 2018, if Trading Permit Holders decide to participate in 
these programs, and thus take advantage of the benefits of these 
programs. The change to the commitment deadline is equitable and not 
unfairly discriminatory because all Trading Permit Holders will be 
subject to that same deadline. Trading Permit Holder participation in 
these programs benefits all market participants, because the lower fees 
encourage more Market-Makers and Floor Brokers, as applicable, to 
access the Exchange, which gives market participants more trading 
options and increased trading activity, volume, and liquidity.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
    \6\ Id.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    Cboe Options 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 proposed rule change 
will impose no burden on competition, as it only modifies a deadline 
for participation in fee programs available at the Exchange, which 
participation is voluntary, and which deadline will apply to all 
Trading Permit Holders that elect to participate in these programs.

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

    The Exchange neither solicited nor received comments on the 
proposed rule change.

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 \7\ and paragraph (f) of Rule 19b-4 \8\ 
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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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 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:

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-CBOE-2017-083 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-CBOE-2017-083. 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-CBOE-2017-083 and should be submitted on 
or before February 2, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-00412 Filed 1-11-18; 8:45 am]
 BILLING CODE 8011-01-P