83_FR_16490 83 FR 16417 - Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Transaction Fees for Use on Cboe EDGX Exchange, Inc.'s Equity Platform

83 FR 16417 - Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Transaction Fees for Use on Cboe EDGX Exchange, Inc.'s Equity Platform

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 73 (April 16, 2018)

Page Range16417-16419
FR Document2018-07809

Federal Register, Volume 83 Issue 73 (Monday, April 16, 2018)
[Federal Register Volume 83, Number 73 (Monday, April 16, 2018)]
[Notices]
[Pages 16417-16419]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-07809]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83027; File No. SR-CboeEDGX-2018-009]


Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change Related 
to Transaction Fees for Use on Cboe EDGX Exchange, Inc.'s Equity 
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 March 29, 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 
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).
---------------------------------------------------------------------------

    \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

[[Page 16418]]

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 applicable to its 
equities trading platform (``EDGX Equities'') to modify the enhanced 
rebate provided pursuant to the Investor Depth Tier under footnote 1. 
The Exchange currently offers nine Add Volume Tiers under footnote 4 
[sic], which provide enhanced rebates ranging from of $0.0025 to 
$0.0033 per share for qualifying orders which yield fee codes B,\6\ 
V,\7\ Y,\8\ 3 \9\ and 4.\10\ The Exchange proposes to modify the 
criteria necessary to achieve the Investor Depth Tier as described 
below. Currently, under the Investor Depth Tier a Member may be 
provided an enhanced rebate of $0.0033 per share where that Member: (i) 
Adds an ADV \11\ greater than or equal to 0.12% of the TCV; \12\ (ii) 
has an ``added liquidity'' as a percentage of ``added plus removed 
liquidity'' greater than or equal to 85%; and (iii) adds an ADV greater 
than or equal to 400,000 shares as non-displayed orders that yield fee 
code HA,\13\ HI,\14\ and/or MM.\15\ The Exchange now proposes to 
decrease the enhanced rebate provided by the Investor Depth Tier from 
$0.0033 per share to $0.0031 per share. The Exchange does not propose 
to amend the Investor Depth Tier's required criteria or to make any 
other changes to the other tiers under footnote 1.
---------------------------------------------------------------------------

    \6\ Fee code B is appended to displayed orders which add 
liquidity to Tape B and is provided a rebate of $0.0020 per share. 
See the Exchange's fee schedule available at http://markets.cboe.com/us/equities/membership/fee_schedule/edgx/.
    \7\ Fee code V is appended to displayed orders which add 
liquidity to Tape A and is provided a rebate of $0.0020 per share. 
Id.
    \8\ Fee code Y is appended to displayed orders which add 
liquidity to Tape C and is provided a rebate of $0.0020 per share. 
Id.
    \9\ Fee code 3 is appended to displayed orders which add 
liquidity to Tape A or C during the post-market or pre-market 
sessions and is provided a rebate of $0.0020 per share. Id.
    \10\ Fee code 4 is appended to displayed orders which add 
liquidity to Tape B during the post-market or pre-market sessions 
and is provided a rebate of $0.0020 per share. Id.
    \11\ ``ADV'' means average daily volume calculated as the number 
of shares added to, removed from, or routed by, the Exchange, or any 
combination or subset thereof, per day. ADV is calculated on a 
monthly basis. Id.
    \12\ ``TCV'' means total consolidated volume calculated as the 
volume reported by all exchanges and trade reporting facilities to a 
consolidated transaction reporting plan for the month for which the 
fees apply. See the Exchange's fee schedule available at http://markets.cboe.com/us/equities/membership/fee_schedule/edgx/.
    \13\ Fee code HA is appended to non-displayed orders which add 
liquidity on the Exchange and are provided an enhanced rebate of 
$0.0015 for securities priced at or above $1.00, and $0.0003 [sic] 
for securities priced below $1.00. Id.
    \14\ Fee code HI is appended to non-displayed orders which 
receive price improvement and add liquidity on the Exchange and are 
neither charged a fee nor provided a rebate. Id.
    \15\ Fee code MM is appended to non-displayed orders which add 
liquidity on the Exchange using Mid-Point Peg and are provided an 
enhanced rebate of $0.0015 for securities priced at or above $1.00, 
and $0.0003 [sic] for securities priced below $1.00. Id.
---------------------------------------------------------------------------

    In light of the proposed reduction of the Investor Tier's enhanced 
rebate, the Exchange also proposes to no longer make the rebate provide 
by the tier available to orders that yield fee code ZA. Fee code ZA is 
appended to Retail Orders that add liquidity and are provided a rebate 
of $0.0032 per share.\16\ Due to the Investor Tier's rebate now 
proposed to be lower than the rebate provided to orders that yield fee 
code ZA, it is no longer necessary to make available the Investor 
Tier's rebate to fee code ZA.
---------------------------------------------------------------------------

    \16\ Id.
---------------------------------------------------------------------------

    The Exchange proposes to implement the above change to its fee 
schedule on April 2, 2018.
2. Statutory Basis
    The Exchange believes that the proposed rule changes are consistent 
with the objectives of Section 6 of the Act,\17\ in general, and 
furthers the objectives of Section 6(b)(4),\18\ 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. The Exchange also notes that it operates in a highly-
competitive market in which market participants can readily direct 
order flow to competing venues if they deem fee levels at a particular 
venue to be excessive or incentives to be insufficient. The proposed 
rule changes reflect a competitive pricing structure designed to 
incentivize market participants to direct their order flow to the 
Exchange.
---------------------------------------------------------------------------

    \17\ 15 U.S.C. 78f.
    \18\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange believes that the proposed modifications to the tiered 
pricing structure are reasonable, fair and equitable, and non-
discriminatory. The Exchange believes the reduced rebate for the 
Investor Depth Tier represents is reasonable and equitable because it 
is intended to reflect the difficulty in achieving the tier's required 
criteria. The Exchange notes that in June 2017, it eased the first 
prong of the tier's required by requiring the Member add an ADV greater 
than or equal to 0.12% of the TCV, rather than 0.15% as previously 
required.\19\ At that time, the Exchange did not make a corresponding 
change to the tier's rebate and now proposes to reduce the rebate to 
reflect the difficulty in achieving the tier's required criteria. The 
Exchange operates in a highly competitive market in which market 
participants may readily send order flow to many competing venues if 
they deem fees at the Exchange to be excessive or incentives provided 
to be insufficient. The proposed structure remains intended to attract 
order flow to the Exchange by offering market participants a 
competitive pricing structure. The Exchange believes it is reasonable 
to offer and incrementally modify incentives intended to help to 
contribute to the growth of the Exchange.
---------------------------------------------------------------------------

    \19\ See Securities Exchange Act Release No. 80977 (June 20, 
2017), 82 FR 28924 (June 26, 2017) (SR-BatsEDGX-2017-30).
---------------------------------------------------------------------------

    Volume-based pricing such as that proposed herein have been widely 
adopted by exchanges, including the Exchange, and are equitable because 
they are open to all Members on an equal basis and provide additional 
benefits or discounts that are reasonably related to: (i) The value to 
an exchange's market quality; (ii) associated higher levels of market 
activity, such as higher levels of liquidity provisions and/or growth 
patterns; and (iii) introduction of higher volumes of orders into the 
price and volume discovery processes.

(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 does not believe 
that the proposed change to the Exchange's tiered pricing structure 
burdens competition because it is designed to amend the rebate to 
reasonably reflect the tier's required criteria. The Exchange notes 
that it operates in a highly competitive market in which market 
participants can readily direct order flow to competing venues if they 
deem fee structures to be unreasonable or excessive. The Exchange does 
not believe the proposed amendments would burden intramarket 
competition

[[Page 16419]]

as they would be available to all Members uniformly.

(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 unsolicited 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 \20\ and paragraph (f) of Rule 19b-4 
thereunder.\21\ 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.
---------------------------------------------------------------------------

    \20\ 15 U.S.C. 78s(b)(3)(A).
    \21\ 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-CboeEDGX-2018-009 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-2018-009. 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-2018-009 and should be 
submitted on or before May 7, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\22\
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    \22\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-07809 Filed 4-13-18; 8:45 am]
 BILLING CODE 8011-01-P



                                                                               Federal Register / Vol. 83, No. 73 / Monday, April 16, 2018 / Notices                                                     16417

                                                  Written comments are invited on: (a)                  (‘‘Exchange Act’’). Exchange Act Rule                 SECURITIES AND EXCHANGE
                                                Whether the proposed collection of                      15Ga–1 requires asset-backed                          COMMISSION
                                                information is necessary for the proper                 securitizers to provide disclosure
                                                                                                                                                              [Release No. 34–83027; File No. SR–
                                                performance of the functions of the                     regarding fulfilled an unfulfilled                    CboeEDGX–2018–009]
                                                agency, including whether the                           repurchase requests with respect to
                                                information shall have practical utility;               asset-backed securities. The purpose of               Self-Regulatory Organizations; Cboe
                                                (b) the accuracy of the agency’s                        the information collected on Form ABS–                EDGX Exchange, Inc.; Notice of Filing
                                                estimates of the burden of the proposed                 15G is to implement the disclosure                    and Immediate Effectiveness of a
                                                collection of information; (c) ways to                  requirements of Section 943 of the                    Proposed Rule Change Related to
                                                enhance the quality, utility, and clarity               Dodd-Frank Wall Street Reform and                     Transaction Fees for Use on Cboe
                                                of the information to be collected; and                 Consumer Protection Act to provide                    EDGX Exchange, Inc.’s Equity Platform
                                                (d) ways to minimize the burden of the                  information regarding the use of
                                                collection of information on                                                                                  April 10, 2018.
                                                                                                        representations and warranties in the                    Pursuant to Section 19(b)(1) of the
                                                respondents, including through the use
                                                                                                        asset-backed securities markets. We                   Securities Exchange Act of 1934 (the
                                                of automated collection techniques or
                                                other forms of information technology.                  estimate that approximately 810                       ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                Consideration will be given to                          securitizers will file Form ABS–15G                   notice is hereby given that on March 29,
                                                comments and suggestions submitted in                   annually at estimated 311.223 burden                  2018, Cboe EDGX Exchange, Inc. (the
                                                writing within 60 days of this                          hours per response. In addition, we                   ‘‘Exchange’’ or ‘‘EDGX’’) filed with the
                                                publication.                                            estimate that 75% of the 311.223 hours                Securities and Exchange Commission
                                                  An agency may not conduct or                          per response (233.417 hours) is carried               (‘‘Commission’’) the proposed rule
                                                sponsor, and a person is not required to                internally by the securitizers for a total            change as described in Items I, II and III
                                                respond to, a collection of information                 annual reporting burden of 189,068                    below, which Items have been prepared
                                                under the PRA unless it displays a                      hours (233.417 hours per response × 810               by the Exchange. The Exchange has
                                                currently valid OMB control number.                     responses).                                           designated the proposed rule change as
                                                  Please direct your written comments                                                                         one establishing or changing a member
                                                                                                           Written comments are invited on: (a)
                                                to: Pamela Dyson, Director/Chief                                                                              due, fee, or other charge imposed by the
                                                                                                        Whether the proposed collection of                    Exchange under Section 19(b)(3)(A)(ii)
                                                Information Officer, Securities and                     information is necessary for the proper
                                                Exchange Commission, c/o Remi Pavlik-                                                                         of the Act 3 and Rule 19b–4(f)(2)
                                                                                                        performance of the functions of the                   thereunder,4 which renders the
                                                Simon, 100 F Street NE, Washington,
                                                                                                        agency, including whether the                         proposed rule change effective upon
                                                DC 20549 or send an email to PRA_
                                                Mailbox@sec.gov.                                        information will have practical utility;              filing with the Commission. The
                                                                                                        (b) the accuracy of the agency’s estimate             Commission is publishing this notice to
                                                  Dated: April 10, 2018.                                of the burden imposed by the collection               solicit comments on the proposed rule
                                                Eduardo A. Aleman,                                      of information; (c) ways to enhance the               change from interested persons.
                                                Assistant Secretary.                                    quality, utility, and clarity of the
                                                [FR Doc. 2018–07789 Filed 4–13–18; 8:45 am]             information collected; and (d) ways to                I. Self-Regulatory Organization’s
                                                                                                                                                              Statement of the Terms of Substance of
                                                BILLING CODE 8011–01–P                                  minimize the burden of the collection of
                                                                                                                                                              the Proposed Rule Change
                                                                                                        information on respondents, including
                                                                                                        through the use of automated collection                  The Exchange filed a proposal to
                                                SECURITIES AND EXCHANGE                                 techniques or other forms of information              amend the fee schedule applicable to
                                                COMMISSION                                              technology. Consideration will be given               Members 5 and non-Members of the
                                                                                                        to comments and suggestions submitted                 Exchange pursuant to EDGX Rules
                                                Proposed Collection; Comment                                                                                  15.1(a) and (c).
                                                Request                                                 in writing within 60 days of this
                                                                                                                                                                 The text of the proposed rule change
                                                                                                        publication.
                                                Upon Written Request Copies Available                                                                         is available at the Exchange’s website at
                                                                                                           An agency may not conduct or                       www.markets.cboe.com, at the principal
                                                 From: Securities and Exchange
                                                 Commission, Office of Investor                         sponsor, and a person is not required to              office of the Exchange, and at the
                                                 Education and Advocacy,                                respond to, a collection of information               Commission’s Public Reference Room.
                                                 Washington, DC 20549–0213                              unless it displays a currently valid
                                                                                                                                                              II. Self-Regulatory Organization’s
                                                                                                        control number.
                                                Extension:                                                                                                    Statement of the Purpose of, and
                                                  Form ABS–15G, SEC File No. 270–620,                      Please direct your written comment to              Statutory Basis for, the Proposed Rule
                                                    OMB Control No. 3235–0675                           Pamela Dyson, Director/Chief                          Change
                                                   Notice is hereby given that, pursuant                Information Officer, Securities and                      In its filing with the Commission, the
                                                to the Paperwork Reduction Act of 1995                  Exchange Commission, c/o Remi Pavlik-                 Exchange included statements
                                                (44 U.S.C. 3501 et seq.), the Securities                Simon, 100 F Street NE, Washington,                   concerning the purpose of and basis for
                                                and Exchange Commission                                 DC 20549 or send an email to: PRA_                    the proposed rule change and discussed
                                                (‘‘Commission’’) is soliciting comments                 Mailbox@sec.gov.                                      any comments it received on the
                                                on the collection of information                          Dated: April 9, 2018.                               proposed rule change. The text of these
                                                summarized below. The Commission                        Eduardo A. Aleman,                                    statements may be examined at the
                                                plans to submit this existing collection
srobinson on DSK3G9T082PROD with NOTICES




                                                                                                        Assistant Secretary.
                                                of information to the Office of                                                                                 1 15 U.S.C. 78s(b)(1).
                                                                                                        [FR Doc. 2018–07792 Filed 4–13–18; 8:45 am]
                                                Management and Budget for extension                                                                             2 17 CFR 240.19b–4.
                                                                                                                                                                3 15 U.S.C. 78s(b)(3)(A)(ii).
                                                and approval.                                           BILLING CODE 8011–01–P
                                                                                                                                                                4 17 CFR 240.19b–4(f)(2).
                                                   Form ABS–15G (17 CFR 249.1300) is                                                                            5 The term ‘‘Member’’ is defined as ‘‘any
                                                used for reports of information required                                                                      registered broker or dealer that has been admitted
                                                under Rule 15Ga–1 (17 CFR 240.15Ga–                                                                           to membership in the Exchange.’’ See Exchange
                                                1) of the Exchange Act of 1934                                                                                Rule 1.5(n).



                                           VerDate Sep<11>2014   19:42 Apr 13, 2018   Jkt 244001   PO 00000   Frm 00133   Fmt 4703   Sfmt 4703   E:\FR\FM\16APN1.SGM   16APN1


                                                16418                          Federal Register / Vol. 83, No. 73 / Monday, April 16, 2018 / Notices

                                                places specified in Item IV below. The                  yield fee code HA,13 HI,14 and/or MM.15                for the Investor Depth Tier represents is
                                                Exchange has prepared summaries, set                    The Exchange now proposes to decrease                  reasonable and equitable because it is
                                                forth in Sections A, B, and C below, of                 the enhanced rebate provided by the                    intended to reflect the difficulty in
                                                the most significant parts of such                      Investor Depth Tier from $0.0033 per                   achieving the tier’s required criteria.
                                                statements.                                             share to $0.0031 per share. The                        The Exchange notes that in June 2017,
                                                                                                        Exchange does not propose to amend                     it eased the first prong of the tier’s
                                                (A) Self-Regulatory Organization’s                      the Investor Depth Tier’s required                     required by requiring the Member add
                                                Statement of the Purpose of, and                        criteria or to make any other changes to               an ADV greater than or equal to 0.12%
                                                Statutory Basis for, the Proposed Rule                  the other tiers under footnote 1.                      of the TCV, rather than 0.15% as
                                                Change                                                    In light of the proposed reduction of                previously required.19 At that time, the
                                                                                                        the Investor Tier’s enhanced rebate, the               Exchange did not make a corresponding
                                                1. Purpose                                              Exchange also proposes to no longer                    change to the tier’s rebate and now
                                                   The Exchange proposes to amend its                   make the rebate provide by the tier                    proposes to reduce the rebate to reflect
                                                fee schedule applicable to its equities                 available to orders that yield fee code                the difficulty in achieving the tier’s
                                                                                                        ZA. Fee code ZA is appended to Retail                  required criteria. The Exchange operates
                                                trading platform (‘‘EDGX Equities’’) to
                                                                                                        Orders that add liquidity and are                      in a highly competitive market in which
                                                modify the enhanced rebate provided
                                                                                                        provided a rebate of $0.0032 per                       market participants may readily send
                                                pursuant to the Investor Depth Tier                     share.16 Due to the Investor Tier’s rebate
                                                under footnote 1. The Exchange                                                                                 order flow to many competing venues if
                                                                                                        now proposed to be lower than the                      they deem fees at the Exchange to be
                                                currently offers nine Add Volume Tiers                  rebate provided to orders that yield fee               excessive or incentives provided to be
                                                under footnote 4 [sic], which provide                   code ZA, it is no longer necessary to                  insufficient. The proposed structure
                                                enhanced rebates ranging from of                        make available the Investor Tier’s rebate              remains intended to attract order flow to
                                                $0.0025 to $0.0033 per share for                        to fee code ZA.                                        the Exchange by offering market
                                                qualifying orders which yield fee codes                   The Exchange proposes to implement                   participants a competitive pricing
                                                B,6 V,7 Y,8 3 9 and 4.10 The Exchange                   the above change to its fee schedule on                structure. The Exchange believes it is
                                                proposes to modify the criteria                         April 2, 2018.                                         reasonable to offer and incrementally
                                                necessary to achieve the Investor Depth                 2. Statutory Basis                                     modify incentives intended to help to
                                                Tier as described below. Currently,                                                                            contribute to the growth of the
                                                under the Investor Depth Tier a Member                     The Exchange believes that the
                                                                                                                                                               Exchange.
                                                may be provided an enhanced rebate of                   proposed rule changes are consistent                      Volume-based pricing such as that
                                                                                                        with the objectives of Section 6 of the
                                                $0.0033 per share where that Member:                                                                           proposed herein have been widely
                                                                                                        Act,17 in general, and furthers the
                                                (i) Adds an ADV 11 greater than or equal                                                                       adopted by exchanges, including the
                                                                                                        objectives of Section 6(b)(4),18 in
                                                to 0.12% of the TCV; 12 (ii) has an                                                                            Exchange, and are equitable because
                                                                                                        particular, as it is designed to provide
                                                ‘‘added liquidity’’ as a percentage of                                                                         they are open to all Members on an
                                                                                                        for the equitable allocation of reasonable
                                                ‘‘added plus removed liquidity’’ greater                                                                       equal basis and provide additional
                                                                                                        dues, fees and other charges among its
                                                than or equal to 85%; and (iii) adds an                                                                        benefits or discounts that are reasonably
                                                                                                        Members and other persons using its
                                                ADV greater than or equal to 400,000                                                                           related to: (i) The value to an exchange’s
                                                                                                        facilities. The Exchange also notes that
                                                shares as non-displayed orders that                                                                            market quality; (ii) associated higher
                                                                                                        it operates in a highly-competitive
                                                                                                                                                               levels of market activity, such as higher
                                                                                                        market in which market participants can
                                                                                                        readily direct order flow to competing                 levels of liquidity provisions and/or
                                                   6 Fee code B is appended to displayed orders
                                                                                                        venues if they deem fee levels at a                    growth patterns; and (iii) introduction of
                                                which add liquidity to Tape B and is provided a         particular venue to be excessive or                    higher volumes of orders into the price
                                                rebate of $0.0020 per share. See the Exchange’s fee     incentives to be insufficient. The                     and volume discovery processes.
                                                schedule available at http://markets.cboe.com/us/
                                                                                                        proposed rule changes reflect a                        (B) Self-Regulatory Organization’s
                                                equities/membership/fee_schedule/edgx/.
                                                   7 Fee code V is appended to displayed orders
                                                                                                        competitive pricing structure designed                 Statement on Burden on Competition
                                                which add liquidity to Tape A and is provided a         to incentivize market participants to                     The Exchange does not believe that
                                                rebate of $0.0020 per share. Id.                        direct their order flow to the Exchange.               the proposed rule change will impose
                                                   8 Fee code Y is appended to displayed orders            The Exchange believes that the
                                                                                                                                                               any burden on competition not
                                                which add liquidity to Tape C and is provided a         proposed modifications to the tiered
                                                                                                                                                               necessary or appropriate in furtherance
                                                rebate of $0.0020 per share. Id.                        pricing structure are reasonable, fair and
                                                                                                                                                               of the purposes of the Act. The
                                                   9 Fee code 3 is appended to displayed orders         equitable, and non-discriminatory. The
                                                                                                                                                               Exchange does not believe that the
                                                which add liquidity to Tape A or C during the post-     Exchange believes the reduced rebate
                                                market or pre-market sessions and is provided a                                                                proposed change to the Exchange’s
                                                rebate of $0.0020 per share. Id.                           13 Fee code HA is appended to non-displayed
                                                                                                                                                               tiered pricing structure burdens
                                                   10 Fee code 4 is appended to displayed orders
                                                                                                        orders which add liquidity on the Exchange and are     competition because it is designed to
                                                which add liquidity to Tape B during the post-          provided an enhanced rebate of $0.0015 for             amend the rebate to reasonably reflect
                                                market or pre-market sessions and is provided a         securities priced at or above $1.00, and $0.0003       the tier’s required criteria. The
                                                rebate of $0.0020 per share. Id.                        [sic] for securities priced below $1.00. Id.
                                                                                                           14 Fee code HI is appended to non-displayed
                                                                                                                                                               Exchange notes that it operates in a
                                                   11 ‘‘ADV’’ means average daily volume calculated
                                                                                                        orders which receive price improvement and add         highly competitive market in which
                                                as the number of shares added to, removed from,
                                                                                                        liquidity on the Exchange and are neither charged      market participants can readily direct
                                                or routed by, the Exchange, or any combination or
                                                subset thereof, per day. ADV is calculated on a
                                                                                                        a fee nor provided a rebate. Id.                       order flow to competing venues if they
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                                                                                                           15 Fee code MM is appended to non-displayed
                                                monthly basis. Id.                                                                                             deem fee structures to be unreasonable
                                                                                                        orders which add liquidity on the Exchange using
                                                   12 ‘‘TCV’’ means total consolidated volume
                                                                                                        Mid-Point Peg and are provided an enhanced rebate
                                                                                                                                                               or excessive. The Exchange does not
                                                calculated as the volume reported by all exchanges      of $0.0015 for securities priced at or above $1.00,    believe the proposed amendments
                                                and trade reporting facilities to a consolidated        and $0.0003 [sic] for securities priced below $1.00.   would burden intramarket competition
                                                transaction reporting plan for the month for which      Id.
                                                the fees apply. See the Exchange’s fee schedule            16 Id.                                                 19 See Securities Exchange Act Release No. 80977
                                                available at http://markets.cboe.com/us/equities/          17 15 U.S.C. 78f.
                                                                                                                                                               (June 20, 2017), 82 FR 28924 (June 26, 2017) (SR–
                                                membership/fee_schedule/edgx/.                             18 15 U.S.C. 78f(b)(4).                             BatsEDGX–2017–30).



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                                                                                  Federal Register / Vol. 83, No. 73 / Monday, April 16, 2018 / Notices                                                  16419

                                                as they would be available to all                          change that are filed with the                        U.S.C. 77a et seq.), or filing periodic
                                                Members uniformly.                                         Commission, and all written                           reports on Form 40–F under the
                                                                                                           communications relating to the                        Exchange Act of 1934 (15 U.S.C. 78a et
                                                (C) Self-Regulatory Organization’s
                                                                                                           proposed rule change between the                      seq.). The information collected must be
                                                Statement on Comments on the
                                                                                                           Commission and any person, other than                 filed with the Commission and is
                                                Proposed Rule Change Received From                         those that may be withheld from the                   publicly available. We estimate that it
                                                Members, Participants or Others                            public in accordance with the                         takes approximately 2 hours per
                                                  The Exchange has not solicited, and                      provisions of 5 U.S.C. 552, will be                   response to prepare Form F–X and that
                                                does not intend to solicit, comments on                    available for website viewing and                     the information is filed by
                                                this proposed rule change. The                             printing in the Commission’s Public                   approximately 114 respondents for a
                                                Exchange has not received any                              Reference Room, 100 F Street NE,                      total annual reporting burden of 228
                                                unsolicited written comments from                          Washington, DC 20549, on official                     hours (2 hours per response × 114
                                                Members or other interested parties.                       business days between the hours of                    responses).
                                                                                                           10:00 a.m. and 3:00 p.m. Copies of the                   Written comments are invited on: (a)
                                                III. Date of Effectiveness of the
                                                                                                           filing also will be available for                     Whether this proposed collection of
                                                Proposed Rule Change and Timing for
                                                                                                           inspection and copying at the principal               information is necessary for the
                                                Commission Action
                                                                                                           office of the Exchange. All comments                  performance of the functions of the
                                                   The foregoing rule change has become                    received will be posted without change.               agency, including whether the
                                                effective pursuant to Section 19(b)(3)(A)                  Persons submitting comments are                       information will have practical utility;
                                                of the Act 20 and paragraph (f) of Rule                    cautioned that we do not redact or edit               (b) the accuracy of the agency’s estimate
                                                19b–4 thereunder.21 At any time within                     personal identifying information from                 of the burden imposed by the collection
                                                60 days of the filing of the proposed rule                 comment submissions. You should                       of information; (c) ways to enhance the
                                                change, the Commission summarily may                       submit only information that you wish                 quality, utility, and clarity of the
                                                temporarily suspend such rule change if                    to make available publicly. All                       information collected; and (d) ways to
                                                it appears to the Commission that such                     submissions should refer to File                      minimize the burden of the collection of
                                                action is necessary or appropriate in the                  Number SR–CboeEDGX–2018–009 and                       information on respondents, including
                                                public interest, for the protection of                     should be submitted on or before May                  through the use of automated collection
                                                investors, or otherwise in furtherance of                  7, 2018.                                              techniques or other forms of information
                                                the purposes of the Act.                                     For the Commission, by the Division of              technology. Consideration will be given
                                                IV. Solicitation of Comments                               Trading and Markets, pursuant to delegated            to comments and suggestions submitted
                                                                                                           authority.22                                          in writing within 60 days of this
                                                  Interested persons are invited to                        Eduardo A. Aleman,                                    publication.
                                                submit written data, views, and                            Assistant Secretary.                                     An agency may not conduct or
                                                arguments concerning the foregoing,                                                                              sponsor, and a person is not required to
                                                                                                           [FR Doc. 2018–07809 Filed 4–13–18; 8:45 am]
                                                including whether the proposed rule                                                                              respond to, a collection of information
                                                                                                           BILLING CODE 8011–01–P
                                                change is consistent with the Act.                                                                               unless it displays a currently valid
                                                Comments may be submitted by any of                                                                              control number.
                                                the following methods:                                     SECURITIES AND EXCHANGE                                  Please direct your written comment to
                                                Electronic Comments                                        COMMISSION                                            Pamela Dyson, Director/Chief
                                                                                                                                                                 Information Officer, Securities and
                                                   • Use the Commission’s internet                         Proposed Collection; Comment                          Exchange Commission, c/o Remi Pavlik-
                                                comment form (http://www.sec.gov/                          Request                                               Simon, 100 F Street NE, Washington,
                                                rules/sro.shtml); or
                                                   • Send an email to rule-comments@                       Upon Written Request Copies Available                 DC 20549; or send an email to: PRA_
                                                sec.gov. Please include File Number SR–                     From: Securities and Exchange                        Mailbox@sec.gov.
                                                CboeEDGX–2018–009 on the subject                            Commission, Office of FOIA Services,                   Dated: April 9, 2018.
                                                line.                                                       100 F Street NE, Washington, DC                      Eduardo A. Aleman,
                                                                                                            20549–2736                                           Assistant Secretary.
                                                Paper Comments
                                                                                                           Extension:                                            [FR Doc. 2018–07793 Filed 4–13–18; 8:45 am]
                                                   • Send paper comments in triplicate                       Form F–X, SEC File No. 270–336, OMB                 BILLING CODE 8011–01–P
                                                to Secretary, Securities and Exchange                          Control No. 3235–0379
                                                Commission, 100 F Street NE,                                  Notice is hereby given that, pursuant
                                                Washington, DC 20549–1090.                                 to the Paperwork Reduction Act of 1995                SECURITIES AND EXCHANGE
                                                All submissions should refer to File                       (44 U.S.C. 3501 et seq.), the Securities              COMMISSION
                                                Number SR–CboeEDGX–2018–009. This                          and Exchange Commission
                                                file number should be included on the                      (‘‘Commission’’) is soliciting comments               Proposed Collection; Comment
                                                subject line if email is used. To help the                 on the collection of information                      Request
                                                Commission process and review your                         summarized below. The Commission                      Upon Written Request, Copies Available
                                                comments more efficiently, please use                      plans to submit this existing collection               From: Securities and Exchange
                                                only one method. The Commission will                       of information to the Office of                        Commission, Office of FOIA Services,
                                                post all comments on the Commission’s                      Management and Budget for extension                    100 F Street NE, Washington, DC
                                                internet website (http://www.sec.gov/                      and approval.
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                                                                                                                                                                  20549–2736
                                                rules/sro.shtml). Copies of the                               Form F–X (17 CFR 239.42) is used to
                                                submission, all subsequent                                 appoint an agent for service of process               Extension:
                                                amendments, all written statements                         by Canadian issuers registering                         Exchange Act Rules 13n–1—13n–12; Form
                                                                                                           securities on Forms F–7, F–8, F–9 or F–                   SDR, SEC File No. 270–629, OMB
                                                with respect to the proposed rule
                                                                                                                                                                     Control No. 3235–0719
                                                                                                           10 under the Securities Act of 1933 (15
                                                  20 15   U.S.C. 78s(b)(3)(A).                                                                                     Notice is hereby given that pursuant
                                                  21 17   CFR 240.19b–4(f).                                  22 17   CFR 200.30–3(a)(12).                        to the Paperwork Reduction Act of 1995


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Document Created: 2018-04-14 02:19:17
Document Modified: 2018-04-14 02:19:17
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 16417 

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