83_FR_16485 83 FR 16412 - Self-Regulatory Organizations; Cboe BZX 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 16412 - Self-Regulatory Organizations; Cboe BZX 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 73 (April 16, 2018)

Page Range16412-16413
FR Document2018-07811

Federal Register, Volume 83 Issue 73 (Monday, April 16, 2018) 
[Federal Register Volume 83, Number 73 (Monday, April 16, 2018)]
[Notices]
[Pages 16412-16413]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-07811]



[[Page 16412]]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83031; File No. SR-CboeBZX-2018-027]


Self-Regulatory Organizations; Cboe BZX 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 10, 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 5, 2018, Cboe BZX Exchange, Inc. (the ``Exchange'' or 
``BZX'') 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 
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)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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 BZX Rules 
15.1(a) and (c).
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

    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 (``BZX Options'') to modify pricing for certain orders 
routed away from the Exchange and executed at various away options 
exchanges.\6\ Particularly, the Exchange proposes to amend routing fees 
for Directed ISO orders (as defined below), routed Non-Customer \7\ 
orders in Penny Pilot Securities and routed Customer orders to ARCA, 
C2, 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, 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, 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 Penny Pilot Securities would be increased to $0.90 
per contract; (iii) the fee for Customer orders to ARCA, C2, 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, 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.\8\
---------------------------------------------------------------------------

    \6\ The Exchange initially filed the proposed fee changes on 
April 2, 2018 (SR-CboeBZX-2018-024) for April 2, 2018 effectiveness. 
On business date April 4, 2018 [sic], the Exchange withdrew that 
filing and submitted this filing.
    \7\ ``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.
    \8\ See e.g., NYSE Arca Options Fees and Charges, Routing Fees.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 of the Act,\9\ in general, and 
furthers the objectives of Section 6(b)(4),\10\ 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.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f.
    \10\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    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.\11\ 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.
---------------------------------------------------------------------------

    \11\ See e.g., NYSE Arca Options Fees and Charges, Routing Fees.
---------------------------------------------------------------------------

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.

[[Page 16413]]

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 \12\ and paragraph (f) of Rule 19b-4 \13\ 
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.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

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-CboeBZX-2018-027 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-CboeBZX-2018-027. 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-CboeBZX-2018-027 and should be submitted 
on or before May 7, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-07811 Filed 4-13-18; 8:45 am]
 BILLING CODE 8011-01-P

16412 Federal Register / Vol. 83, No. 73 / Monday, April 16, 2018 / Notices SECURITIES AND EXCHANGE places specified in Item IV below. The assessed for similar transaction on other COMMISSION Exchange has prepared summaries, set exchanges.8 forth in Sections A, B, and C below, of [Release No. 34–83031; File No. SR– 2. Statutory Basis CboeBZX–2018–027] the most significant parts of such statements. The Exchange believes that the Self-Regulatory Organizations; Cboe proposed rule change is consistent with A. Self-Regulatory Organization’s the objectives of Section 6 of the Act,9 BZX Exchange, Inc.; Notice of Filing Statement of the Purpose of, and and Immediate Effectiveness of a in general, and furthers the objectives of Statutory Basis for, the Proposed Rule Section 6(b)(4),10 in particular, as it is Proposed Rule Change Related to Fees Change designed to provide for the equitable for Use on the Exchange’s Equity Options Platform allocation of reasonable dues, fees and 1. Purpose other charges among its Members and April 10, 2018. The Exchange proposes to amend its other persons using its facilities. Pursuant to Section 19(b)(1) of the fee schedule for its equity options Particularly, the Exchange believes its Securities Exchange Act of 1934 (the platform (‘‘BZX Options’’) to modify proposed fees are reasonable taking into ‘‘Act’’),1 and Rule 19b–4 thereunder,2 pricing for certain orders routed away account routing costs and also notes that notice is hereby given that on April 5, from the Exchange and executed at the proposed changes are in line with 2018, Cboe BZX Exchange, Inc. (the various away options exchanges.6 amounts assessed by other exchanges.11 ‘‘Exchange’’ or ‘‘BZX’’) filed with the Particularly, the Exchange proposes to The Exchange believes the proposed Securities and Exchange Commission amend routing fees for Directed ISO changes to its fees are equitable and not (‘‘Commission’’) the proposed rule orders (as defined below), routed Non- unfairly discriminatory because the change as described in Items I, II and III Customer 7 orders in Penny Pilot proposed changes apply equally to all below, which Items have been prepared Members. The Exchange notes that Securities and routed Customer orders by the Exchange. The Exchange has routing through the Exchange is to ARCA, C2, ISE, ISE Gemini, MIAX designated the proposed rule change as voluntary and also notes that it operates Pearl or NOM in Penny and Non-Penny one establishing or changing a member in a highly competitive market in which Pilot Securities. The Exchange currently due, fee, or other charge imposed by the market participants can readily direct charges the following rates for these Exchange under Section 19(b)(3)(A)(ii) order flow to competing venues or orders: (i) Directed Intermarket Sweep of the Act 3 and Rule 19b–4(f)(2) providers of routing services if they Orders (‘‘ISOs’’) (that are not otherwise thereunder,4 which renders the deem fee levels to be excessive. specified in the Fee Schedule), which proposed rule change effective upon yield fee code D4, are charged $0.75 per B. Self-Regulatory Organization’s filing with the Commission. The contract, (ii) Non-Customer orders in Statement on Burden on Competition Commission is publishing this notice to Penny Pilot Securities, which yield fee The Exchange does not believe that solicit comments on the proposed rule code RN, are charged $0.85 per contract; the proposed rule change will impose change from interested persons. (iii) Customer orders to ARCA, C2, ISE, any burden on competition not I. Self-Regulatory Organization’s ISE Gemini, MIAX Pearl or NOM in necessary or appropriate in furtherance Statement of the Terms of Substance of Penny Pilot Securities, which yield fee of the purposes of the Act. The the Proposed Rule Change code RQ, are charged $0.70 per contract; Exchange believes the proposed routing and (iv) Customer orders to ARCA, C2, fees will not impose an undue burden The Exchange filed a proposal to ISE, ISE Gemini, MIAX Pearl or NOM in on competition because the Exchange amend the fee schedule applicable to Non-Penny Pilot Securities, which yield will uniformly assess the affected Members 5 and non-Members of the fee code RR, are charged $1.10 per routing fees on all Members. Exchange pursuant to BZX Rules 15.1(a) contract. The Exchange is proposing to Additionally, Members may opt to and (c). amend those rates as follows: (i) The fee disfavor the Exchange’s pricing if they The text of the proposed rule change for Directed ISO Orders would be believe that alternatives offer them is available at the Exchange’s website at increased to $0.85 per contract; (ii) the better value or if they view the proposed www.markets.cboe.com, at the principal fee for Non-Customer Orders in Penny fee as excessive. Further, excessive fees office of the Exchange, and at the Pilot Securities would be increased to for participation would serve to impair Commission’s Public Reference Room. $0.90 per contract; (iii) the fee for an exchange’s ability to compete for II. Self-Regulatory Organization’s Customer orders to ARCA, C2, ISE, ISE order flow and members rather than Statement of the Purpose of, and Gemini, MIAX Pearl or NOM in Penny burdening competition. Statutory Basis for, the Proposed Rule Pilot Securities would be increased to Change $0.85 and (iv) the fee for Customer C. Self-Regulatory Organization’s orders to ARCA, C2, ISE, ISE Gemini, Statement on Comments on the In its filing with the Commission, the Proposed Rule Change Received From Exchange included statements MIAX Pearl or NOM in Non-Penny Pilot Securities would be increased to $1.25. Members, Participants or Others concerning the purpose of and basis for the proposed rule change and discussed The Exchange notes that the proposed The Exchange has not solicited, and any comments it received on the amounts are in line with amounts does not intend to solicit, comments on proposed rule change. The text of these this proposed rule change. The statements may be examined at the 6 The Exchange initially filed the proposed fee Exchange has not received any written changes on April 2, 2018 (SR–CboeBZX–2018–024) comments from members or other srobinson on DSK3G9T082PROD with NOTICES 1 15 for April 2, 2018 effectiveness. On business date interested parties. U.S.C. 78s(b)(1). April 4, 2018 [sic], the Exchange withdrew that 2 17 CFR 240.19b–4. filing and submitted this filing. 3 15 U.S.C. 78s(b)(3)(A)(ii). 8 See e.g., NYSE Arca Options Fees and Charges, 7 ‘‘Non-Customer’’ applies to any transaction that 4 17 CFR 240.19b–4(f)(2). is not a Customer Order. ‘‘Customer’’ applies to any Routing Fees. 5 The term ‘‘Member’’ is defined as ‘‘any 9 15 U.S.C. 78f. transaction identified by a Member for clearing in 10 15 U.S.C. 78f(b)(4). registered broker or dealer that has been admitted the Customer range at the OCC, excluding any to membership in the Exchange.’’ See Exchange transaction for a Broker Dealer or a ‘‘Professional’’ 11 See e.g., NYSE Arca Options Fees and Charges, Rule 1.5(n). as defined in Exchange Rule 16.1. Routing Fees. VerDate Sep<11>2014 19:42 Apr 13, 2018 Jkt 244001 PO 00000 Frm 00128 Fmt 4703 Sfmt 4703 E:\FR\FM\16APN1.SGM 16APN1

Federal Register / Vol. 83, No. 73 / Monday, April 16, 2018 / Notices 16413 III. Date of Effectiveness of the printing in the Commission’s Public 306(a) of the Act prohibits any director Proposed Rule Change and Timing for Reference Room, 100 F Street NE, or executive officer of an issuer of any Commission Action Washington, DC 20549, on official equity security, directly or indirectly, The foregoing rule change has become business days between the hours of from purchasing, selling or otherwise effective pursuant to Section 19(b)(3)(A) 10:00 a.m. and 3:00 p.m. Copies of the acquiring or transferring any equity of the Act 12 and paragraph (f) of Rule filing also will be available for security of that issuer during any 19b–4 13 thereunder. At any time within inspection and copying at the principal blackout period with respect to such 60 days of the filing of the proposed rule office of the Exchange. All comments equity security, if the director or change, the Commission summarily may received will be posted without change. executive officer acquired the equity temporarily suspend such rule change if Persons submitting comments are security in connection with his or her it appears to the Commission that such cautioned that we do not redact or edit service or employment. Approximately action is necessary or appropriate in the personal identifying information from 1,230 issuers file Regulation BTR public interest, for the protection of comment submissions. You should notices approximately 5 times a year for investors, or otherwise in furtherance of submit only information that you wish a total of 6,150 responses. We estimate the purposes of the Act. If the to make available publicly. All submissions should refer to File that it takes approximately 2 hours to Commission takes such action, the prepare the blackout notice for a total Commission will institute proceedings Number SR–CboeBZX–2018–027 and should be submitted on or before May annual burden of 2,460 hours. The to determine whether the proposed rule issuer prepares 75% of the 2,460 annual change should be approved or 7, 2018. burden hours for a total reporting disapproved. For the Commission, by the Division of Trading and Markets, pursuant to delegated burden of (1,230 x 2 × 0.75) 1,845 hours. IV. Solicitation of Comments authority.14 In addition, we estimate that an issuer Eduardo A. Aleman, distributes a notice to five directors and Interested persons are invited to submit written data, views, and Assistant Secretary. executive officers at an estimated 5 arguments concerning the foregoing, minutes per notice (1,230 blackout [FR Doc. 2018–07811 Filed 4–13–18; 8:45 am] including whether the proposed rule period × 5 notices × 5 minutes) for a BILLING CODE 8011–01–P change is consistent with the Act. total reporting burden of 512 hours. The Comments may be submitted by any of combined annual reporting burden is the following methods: SECURITIES AND EXCHANGE (1,845 hours + 512 hours) 2,357 hours. COMMISSION Written comments are invited on: (a) Electronic Comments Whether this collection of information • Use the Commission’s internet Proposed Collection; Comment is necessary for the proper performance comment form (http://www.sec.gov/ Request of the functions of the agency, including rules/sro.shtml); or whether the information will have Upon Written Request Copies Available • Send an email to rule-comments@ practical utility; (b) the accuracy of the From: Securities and Exchange sec.gov. Please include File Number SR– Commission, Office of FOIA Services, agency’s estimate of the burden imposed CboeBZX–2018–027 on the subject line. 100 F Street NE, Washington, DC by the collection of information; (c) Paper Comments 20549–2736. ways to enhance the quality, utility, and • Send paper comments in triplicate Extension: clarity of the information collected; and to Secretary, Securities and Exchange Regulation BTR, SEC File No. 270–521, (d) ways to minimize the burden of the Commission, 100 F Street NE, OMB Control No. 3235–0579. collection of information on Washington, DC 20549–1090. Notice is hereby given that, pursuant respondents, including through the use All submissions should refer to File to the Paperwork Reduction Act of 1995 of automated collection techniques or Number SR–CboeBZX–2018–027. This (44 U.S.C. 3501 et seq.), the Securities other forms of information technology. file number should be included on the and Exchange Commission Consideration will be given to subject line if email is used. To help the (‘‘Commission’’) is soliciting comments comments and suggestions submitted in Commission process and review your on the collection of information writing within 60 days of this comments more efficiently, please use summarized below. The Commission publication. only one method. The Commission will plans to submit this existing collection An agency may not conduct or post all comments on the Commission’s of information to the Office of sponsor, and a person is not required to internet website (http://www.sec.gov/ Management and Budget for extension respond to, a collection of information rules/sro.shtml). Copies of the and approval. unless it displays a currently valid submission, all subsequent Regulation Blackout Trade Restriction control number. amendments, all written statements (‘‘Regulation BTR’’) (17 CFR 245.100– with respect to the proposed rule 245.104) clarifies the scope and Please direct your written comment to change that are filed with the application of Section 306(a) of the Pamela Dyson, Director/Chief Commission, and all written Sarbanes-Oxley Act of 2002 (‘‘Act’’) (15 Information Officer, Securities and communications relating to the U.S.C. 7244(a)). Section 306(a)(6) [15 Exchange Commission, c/o Remi Pavlik- proposed rule change between the U.S.C. 7244(a)(6)] of the Act requires an Simon, 100 F Street NE, Washington, Commission and any person, other than issuer to provide timely notice to its DC 20549 or send an email to: PRA_ srobinson on DSK3G9T082PROD with NOTICES those that may be withheld from the directors and executive officers and to Mailbox@sec.gov. public in accordance with the the Commission of the imposition of a Dated: April 9, 2018. provisions of 5 U.S.C. 552, will be blackout period that would trigger the Eduardo A. Aleman, available for website viewing and statutory trading prohibition of Section 306(a)(1) [15 U.S.C. 7244(a)(1)]. Section Assistant Secretary. 12 15 U.S.C. 78s(b)(3)(A). [FR Doc. 2018–07795 Filed 4–13–18; 8:45 am] 13 17 CFR 240.19b–4(f). 14 17 CFR 200.30–3(a)(12). BILLING CODE 8011–01–P VerDate Sep<11>2014 19:42 Apr 13, 2018 Jkt 244001 PO 00000 Frm 00129 Fmt 4703 Sfmt 4703 E:\FR\FM\16APN1.SGM 16APN1


Document Created: 2018-04-14 02:19:07
Document Modified: 2018-04-14 02:19:07
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 16412 
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR