83 FR 1646 - Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Market Makers' Regulatory Fees

SECURITIES AND EXCHANGE COMMISSION

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

Page Range		1646-1647
FR Document		2018-00411
Federal Register, Volume 83 Issue 9 (Friday, January 12, 2018)
[Federal Register Volume 83, Number 9 (Friday, January 12, 2018)]
[Notices]
[Pages 1646-1647]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-00411]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82460; File No. SR-GEMX-2017-62]


Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Relating to Market 
Makers' Regulatory Fees

January 8, 2018.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on December 26, 2017, Nasdaq GEMX, LLC (``GEMX'' or ``Exchange'') 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 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 the Exchange's Schedule of Fees, as 
described further below.
    While these amendments are effective upon filing, the Exchange has 
designated the proposed amendments to be operative on January 2, 2018.
    The text of the proposed rule change is available on the Exchange's 
website at http://nasdaqgemx.cchwallstreet.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 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 purpose of the proposed rule change is to amend the Exchange's 
Schedule of Fees to (i) eliminate the annual regulatory fee currently 
assessed to Market Makers (i.e., Primary Market Makers and Competitive 
Market Makers) at Section III.C and (ii) make a number of non-
substantive clean-up changes to update the Table of Contents. Each 
change is discussed further below.
Eliminate Annual Regulatory Fee
    GEMX currently charges its members various non-transaction fees to 
trade on the Exchange and use its facilities, including a tiered annual 
regulatory fee. This fee is assessed to all Primary Market Makers 
(``PMMs'') and Competitive Market Makers (``CMMs'') to help defray the 
regulatory and administrative costs associated with a member's use of 
the Exchange's facilities. In particular, the regulatory fee is $1,000 
per year for a PMM membership, and, for PMMs that are also CMMs, $250 
per year for each CMM membership. For CMMs that are not also PMMs the 
regulatory fee is $500 per year for the first CMM membership, and $250 
per year for each additional CMM membership.\3\ The Exchange does not 
charge a regulatory fee to Electronic Access Members (``EAMs'').
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    \3\ See GEMX Schedule of Fees, Section III.C Regulatory Fees.
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    The Exchange proposes to eliminate the annual regulatory fee and 
all related references from the Schedule of Fees because it has 
determined that this fee is outdated and no longer reflects the costs 
associated with supporting and regulating its members today. The annual 
regulatory fee was adopted in 2013, and has not been amended since that 
time.\4\ And because GEMX charges its members various non-transaction 
fees outside of the annual regulatory fee to help defray such costs, as 
noted above, the Exchange believes that the proposed fee change will be 
a more accurate reflection of the administration and regulatory costs 
associated with a member's use of the Exchange today.
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    \4\ See Securities Exchange Act Release No. 71149 (December 19, 
2013), 78 FR 78447 (December 26, 2013) (SR-Topaz-2013-16).
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Update Table of Contents
    Currently, the Exchange's Schedule of Fees contains a number of 
section headings that are not currently reflected in the Table of 
Contents. The Exchange added, eliminated, or renamed these headings as 
part of a previously-approved rule change, and inadvertently did not 
make the corresponding updates to the Table of Contents.\5\ 
Accordingly, the Exchange proposes to update the Table of Contents to 
make its Schedule of Fees easier to read.
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    \5\ In particular, the Exchange renamed Section IV, deleted 
Section IV.C, and added Sections IV.F-IV.I as part of a previous 
rule change to amend GEMX's connectivity fees. See Securities 
Exchange Release No. 81902 (October 19, 2017), 82 FR 49453 (October 
25, 2017) (SR-GEMX-2017-48).
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\6\ in general, and furthers the objectives of Sections 
6(b)(4) and 6(b)(5) of the Act,\7\ in particular, in that it provides 
for the equitable allocation of reasonable dues, fees, and other 
charges among members and issuers and other persons using any facility, 
and is not designed to permit unfair discrimination between customers, 
issuers, brokers, or dealers.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4) and (5).
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Eliminate Annual Regulatory Fee
    The Exchange believes that the proposed elimination of the annual 
regulatory fee and all related references from the Schedule of Fees is 
reasonable because the Exchange has determined that the annual 
regulatory fee is outdated and no longer reflects the costs associated 
with supporting and regulating its members. This fee has not been 
amended since its adoption in 2013. Furthermore, GEMX charges its 
members various non-transaction fees outside of the annual regulatory 
fee to help defray such costs, as noted above. The Exchange therefore 
believes that the proposed fee change will be a more accurate 
reflection of the administration and regulatory costs associated with a 
member's use of the Exchange today.
    The Exchange also believes that the proposed elimination of the 
annual regulatory fee is equitable and not unfairly discriminatory 
because the proposed change will apply equally to all similarly 
situated members.
Update Table of Contents
    The Exchange believes that the clean-up changes to update the Table 
of Contents is reasonable, equitable and not unfairly discriminatory 
because these are non-substantive changes

[[Page 1647]]

intended to make the Schedule of Fees more transparent to members and 
investors.

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. As discussed above, the 
proposed changes are intended to more accurately reflect the regulatory 
and administrative costs associated with a member's use of the 
Exchange, or are clean-ups to make the Schedule of Fees more 
transparent to members and investors. The Exchange operates in a highly 
competitive market in which market participants can readily favor 
competing venues if they deem fee levels at a particular venue to be 
excessive, or rebate opportunities available at other venues to be more 
favorable. In such an environment, the Exchange must continually adjust 
its fees to remain competitive. Because competitors are free to modify 
their own fees in response, and because market participants may readily 
adjust their order routing practices, the Exchange believes that the 
degree to which fee changes in this market may impose any burden on 
competition is extremely limited.

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

    No written comments were either solicited or received.

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)(ii) of the Act.\8\ At any time within 60 days of the filing 
of the proposed rule change, the Commission summarily may temporarily 
suspend such rule change if it appears to the Commission that such 
action is: (i) Necessary or appropriate in the public interest; (ii) 
for the protection of investors; or (iii) otherwise in furtherance of 
the purposes of the Act. If the Commission takes such action, the 
Commission shall institute proceedings to determine whether the 
proposed rule should be approved or disapproved.
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    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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-GEMX-2017-62 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-GEMX-2017-62. 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-GEMX-2017-62 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. 2018-00411 Filed 1-11-18; 8:45 am]
 BILLING CODE 8011-01-P
1646 Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Notices

For the Commission, by the Division of forth in sections A, B, and C below, of Update Table of Contents
Investment Management, under delegated the most significant aspects of such
authority. Currently, the Exchange’s Schedule of
statements. Fees contains a number of section
Eduardo A. Aleman,
A. Self-Regulatory Organization’s headings that are not currently reflected
Assistant Secretary. in the Table of Contents. The Exchange
[FR Doc. 2018–00431 Filed 1–11–18; 8:45 am] Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule added, eliminated, or renamed these
BILLING CODE 8011–01–P headings as part of a previously-
Change
approved rule change, and inadvertently
1. Purpose did not make the corresponding updates
SECURITIES AND EXCHANGE to the Table of Contents.5 Accordingly,
COMMISSION The purpose of the proposed rule the Exchange proposes to update the
[Release No. 34–82460; File No. SR–GEMX– change is to amend the Exchange’s Table of Contents to make its Schedule
2017–62] Schedule of Fees to (i) eliminate the of Fees easier to read.
annual regulatory fee currently assessed
Self-Regulatory Organizations; Nasdaq 2. Statutory Basis
to Market Makers (i.e., Primary Market
GEMX, LLC; Notice of Filing and Makers and Competitive Market Makers) The Exchange believes that its
Immediate Effectiveness of Proposed at Section III.C and (ii) make a number proposal is consistent with Section 6(b)
Rule Change Relating to Market of non-substantive clean-up changes to of the Act,6 in general, and furthers the
Makers’ Regulatory Fees update the Table of Contents. Each objectives of Sections 6(b)(4) and 6(b)(5)
change is discussed further below. of the Act,7 in particular, in that it
January 8, 2018. provides for the equitable allocation of
Pursuant to Section 19(b)(1) of the Eliminate Annual Regulatory Fee reasonable dues, fees, and other charges
Securities Exchange Act of 1934 among members and issuers and other
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 GEMX currently charges its members persons using any facility, and is not
notice is hereby given that on December various non-transaction fees to trade on designed to permit unfair
26, 2017, Nasdaq GEMX, LLC (‘‘GEMX’’ the Exchange and use its facilities, discrimination between customers,
or ‘‘Exchange’’) filed with the Securities including a tiered annual regulatory fee. issuers, brokers, or dealers.
and Exchange Commission This fee is assessed to all Primary
(‘‘Commission’’) the proposed rule Market Makers (‘‘PMMs’’) and Eliminate Annual Regulatory Fee
change as described in Items I, II, and Competitive Market Makers (‘‘CMMs’’) The Exchange believes that the
III, below, which Items have been to help defray the regulatory and proposed elimination of the annual
prepared by the Exchange. The administrative costs associated with a regulatory fee and all related references
Commission is publishing this notice to member’s use of the Exchange’s from the Schedule of Fees is reasonable
solicit comments on the proposed rule facilities. In particular, the regulatory because the Exchange has determined
change from interested persons. fee is $1,000 per year for a PMM that the annual regulatory fee is
membership, and, for PMMs that are outdated and no longer reflects the costs
I. Self-Regulatory Organization’s
also CMMs, $250 per year for each CMM associated with supporting and
Statement of the Terms of Substance of
membership. For CMMs that are not regulating its members. This fee has not
the Proposed Rule Change
also PMMs the regulatory fee is $500 per been amended since its adoption in
The Exchange proposes to amend the 2013. Furthermore, GEMX charges its
year for the first CMM membership, and
Exchange’s Schedule of Fees, as members various non-transaction fees
$250 per year for each additional CMM
described further below. outside of the annual regulatory fee to
While these amendments are effective membership.3 The Exchange does not
charge a regulatory fee to Electronic help defray such costs, as noted above.
upon filing, the Exchange has The Exchange therefore believes that the
designated the proposed amendments to Access Members (‘‘EAMs’’).
proposed fee change will be a more
be operative on January 2, 2018. The Exchange proposes to eliminate accurate reflection of the administration
The text of the proposed rule change the annual regulatory fee and all related and regulatory costs associated with a
is available on the Exchange’s website at references from the Schedule of Fees member’s use of the Exchange today.
http://nasdaqgemx.cchwallstreet.com/, because it has determined that this fee The Exchange also believes that the
at the principal office of the Exchange, is outdated and no longer reflects the proposed elimination of the annual
and at the Commission’s Public costs associated with supporting and regulatory fee is equitable and not
Reference Room. regulating its members today. The unfairly discriminatory because the
II. Self-Regulatory Organization’s annual regulatory fee was adopted in proposed change will apply equally to
Statement of the Purpose of, and 2013, and has not been amended since all similarly situated members.
Statutory Basis for, the Proposed Rule that time.4 And because GEMX charges
Update Table of Contents
Change its members various non-transaction
fees outside of the annual regulatory fee The Exchange believes that the clean-
In its filing with the Commission, the to help defray such costs, as noted up changes to update the Table of
Exchange included statements above, the Exchange believes that the Contents is reasonable, equitable and
concerning the purpose of and basis for proposed fee change will be a more not unfairly discriminatory because
the proposed rule change and discussed accurate reflection of the administration these are non-substantive changes
sradovich on DSK3GMQ082PROD with NOTICES

any comments it received on the and regulatory costs associated with a
proposed rule change. The text of these member’s use of the Exchange today.
5 In particular, the Exchange renamed Section IV,

statements may be examined at the deleted Section IV.C, and added Sections IV.F–IV.I
as part of a previous rule change to amend GEMX’s
places specified in Item IV below. The 3 See GEMX Schedule of Fees, Section III.C connectivity fees. See Securities Exchange Release
Exchange has prepared summaries, set Regulatory Fees. No. 81902 (October 19, 2017), 82 FR 49453 (October
4 See Securities Exchange Act Release No. 71149 25, 2017) (SR–GEMX–2017–48).
1 15 U.S.C. 78s(b)(1). 6 15 U.S.C. 78f(b).
(December 19, 2013), 78 FR 78447 (December 26,
2 17 CFR 240.19b–4. 2013) (SR-Topaz-2013–16). 7 15 U.S.C. 78f(b)(4) and (5).

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Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Notices 1647

intended to make the Schedule of Fees including whether the proposed rule SECURITIES AND EXCHANGE
more transparent to members and change is consistent with the Act. COMMISSION
investors. Comments may be submitted by any of
the following methods: [Release No. 34–82462; File No. SR–
B. Self-Regulatory Organization’s CboeEDGX–2017–010]
Statement on Burden on Competition Electronic Comments
The Exchange does not believe that • Use the Commission’s internet Self-Regulatory Organizations; Cboe
the proposed rule change will impose comment form (http://www.sec.gov/ EDGX Exchange, Inc.; Notice of Filing
any burden on competition not rules/sro.shtml); or and Immediate Effectiveness of a
necessary or appropriate in furtherance • Send an email to rule-comments@ Proposed Rule Change To Adopt Fees
of the purposes of the Act. As discussed sec.gov. Please include File Number SR– for Certain Market Data Products on
above, the proposed changes are GEMX–2017–62 on the subject line. the Exchange’s Equity Options
intended to more accurately reflect the Platform
Paper Comments
regulatory and administrative costs
associated with a member’s use of the • Send paper comments in triplicate January 8, 2018.
Exchange, or are clean-ups to make the to Secretary, Securities and Exchange Pursuant to Section 19(b)(1) of the
Schedule of Fees more transparent to Commission, 100 F Street NE, Securities Exchange Act of 1934 (the
members and investors. The Exchange Washington, DC 20549–1090. ‘‘Act’’),1 and Rule 19b–4 thereunder,2
operates in a highly competitive market All submissions should refer to File notice is hereby given that on December
in which market participants can Number SR–GEMX–2017–62. This file 27, 2017, Cboe EDGX Exchange, Inc.
readily favor competing venues if they number should be included on the (the ‘‘Exchange’’ or ‘‘EDGX’’) filed with
deem fee levels at a particular venue to subject line if email is used. To help the the Securities and Exchange
be excessive, or rebate opportunities Commission process and review your Commission (the ‘‘Commission’’) the
available at other venues to be more comments more efficiently, please use proposed rule change as described in
favorable. In such an environment, the only one method. The Commission will Items I, II, and III below, which Items
Exchange must continually adjust its post all comments on the Commission’s have been prepared by the Exchange.
fees to remain competitive. Because internet website (http://www.sec.gov/ The Commission is publishing this
competitors are free to modify their own rules/sro.shtml). Copies of the notice to solicit comments on the
fees in response, and because market submission, all subsequent proposed rule change from interested
participants may readily adjust their amendments, all written statements persons.
order routing practices, the Exchange with respect to the proposed rule I. Self-Regulatory Organization’s
believes that the degree to which fee change that are filed with the Statement of the Terms of Substance of
changes in this market may impose any Commission, and all written the Proposed Rule Change
burden on competition is extremely communications relating to the
proposed rule change between the The Exchange filed a proposal to
limited.
Commission and any person, other than amend the Market Data section of its fee
C. Self-Regulatory Organization’s those that may be withheld from the schedule applicable to its equity options
Statement on Comments on the public in accordance with the platform (‘‘EDGX Options’’) to adopt
Proposed Rule Change Received From provisions of 5 U.S.C. 552, will be fees for certain of its market data
Members, Participants, or Others available for website viewing and products, which are currently offered
No written comments were either printing in the Commission’s Public free of charge. The Exchange also
solicited or received. Reference Room, 100 F Street NE, proposes to amend the names of these
Washington, DC 20549, on official market data products in Exchange Rule
III. Date of Effectiveness of the 21.15(b).
Proposed Rule Change and Timing for business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the The text of the proposed rule change
Commission Action is available at the Exchange’s website at
filing also will be available for
The foregoing rule change has become inspection and copying at the principal www.markets.cboe.com, at the principal
effective pursuant to Section office of the Exchange. All comments office of the Exchange, and at the
19(b)(3)(A)(ii) of the Act.8 At any time received will be posted without change. Commission’s Public Reference Room.
within 60 days of the filing of the Persons submitting comments are II. Self-Regulatory Organization’s
proposed rule change, the Commission cautioned that we do not redact or edit Statement of the Purpose of, and
summarily may temporarily suspend personal identifying information from Statutory Basis for, the Proposed Rule
such rule change if it appears to the comment submissions. You should Change
Commission that such action is: (i) submit only information that you wish
Necessary or appropriate in the public In its filing with the Commission, the
to make available publicly. All
interest; (ii) for the protection of Exchange included statements
submissions should refer to File
investors; or (iii) otherwise in concerning the purpose of and basis for
Number SR–GEMX–2017–62 and
furtherance of the purposes of the Act. the proposed rule change and discussed
should be submitted on or before
If the Commission takes such action, the any comments it received on the
February 2, 2018.
Commission shall institute proceedings proposed rule change. The text of these
to determine whether the proposed rule For the Commission, by the Division of statements may be examined at the
Trading and Markets, pursuant to delegated places specified in Item IV below. The
sradovich on DSK3GMQ082PROD with NOTICES

should be approved or disapproved. authority.9 Exchange has prepared summaries, set
IV. Solicitation of Comments Eduardo A. Aleman, forth in Sections A, B, and C below, of
Interested persons are invited to Assistant Secretary. the most significant parts of such
submit written data, views, and [FR Doc. 2018–00411 Filed 1–11–18; 8:45 am] statements.
arguments concerning the foregoing, BILLING CODE 8011–01–P
1 15 U.S.C. 78s(b)(1).
8 15 U.S.C. 78s(b)(3)(A)(ii). 9 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4.

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Document Created: 2018-10-26 09:53:21
Document Modified: 2018-10-26 09:53:21
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		83 FR 1646