83 FR 1647 - Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt Fees for Certain Market Data Products on the Exchange's Equity Options Platform

SECURITIES AND EXCHANGE COMMISSION

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

Page Range		1647-1651
FR Document		2018-00413

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

[Federal Register Volume 83, Number 9 (Friday, January 12, 2018)]
[Notices]
[Pages 1647-1651]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2018-00413]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82462; File No. SR-CboeEDGX-2017-010]

Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Adopt Fees for Certain Market Data Products on the Exchange's Equity
Options Platform

January 8, 2018.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on December 27, 2017, Cboe EDGX Exchange, Inc. (the ``Exchange''
or ``EDGX'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

The Exchange filed a proposal to amend the Market Data section of
its fee schedule applicable to its equity options platform (``EDGX
Options'') to adopt fees for certain of its market data products, which
are currently offered free of charge. The Exchange also proposes to
amend the names of these market data products in Exchange Rule
21.15(b).
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.

[[Page 1648]]

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 the Market Data section of its fee
schedule applicable to EDGX Options to adopt fees for certain of its
market data products, which are currently offered free of charge. The
Exchange also proposes to amend the names of these market data products
in Exchange Rule 21.15(b).
The Exchange proposes to adopt fees for the following market data
products: EDGX Options Depth (currently referred to as Multicast
PITCH), EDGX Options Top (currently referred to Multicast Top), and
EDGX Options Auction Feed. Each of these market data products are
currently offered free of charge. The Exchange also proposes to amend
Rule 21.15(b) to revise the names of each of these market data
products.
Multicast Pitch, to be renamed as EDGX Options Depth, is a data
feed that offers depth of book quotations and execution information
based on options orders entered into the System.\3\ The Exchange offers
separate EDGX Options Depth data feeds for the Exchange's Simple Book
and the Exchange's Complex Order Book. The Exchange introduced Complex
Order Book functionality on October 23, 2017.\4\ The Exchange's Complex
Book is the EDGX Options electronic book of Complex Orders.\5\ The
Exchange's Simple Book is its regular electronic book of orders.\6\
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\3\ Exchange Rule 21.15(b)(1).
\4\ Exchange Rule 21.20. See also Securities Exchange Act
Release No. 81891 (October 17, 2017), 82 FR 49058 (October 23, 2017)
(order approving the Exchange's proposal to adopt a complex order
book) (SR-BatsEDGX-2017-29).
\5\ Exchange Rule 21.20.(a)(6). A ``Complex Order'' is any order
involving the concurrent purchase and/or sale of two or more
different options in the same underlying security (the ``legs'' or
``components'' of the complex order), for the same account, in a
ratio that is equal to or greater than one-to-three (.333) and less
than or equal to three-to-one (3.00) and for the purposes of
executing a particular investment strategy. Exchange Rule
21.20(a)(5).
\6\ Exchange Rule 21.20(a)(10). See also Exchange Rule
16.1(a)(9) (defining the EDGX Options Book).
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Multicast TOP, to be renamed as EDGX Options Top, is a data feed
that offers top of book quotations and execution information based on
options orders entered into the System.\7\ Like the EDGX Options Depth
feed, the Exchange offers separate EDGX Options Top data feeds for the
Exchange's Simple Book and the Exchange's Complex Order Book.
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\7\ Exchange Rule 21.15(b)(2).
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Finally, the Auction Feed, to be renamed the EDGX Options Auctions
Feed, is a data feed that provides information regarding the current
status of price and size information related to auctions conducted by
the Exchange.\8\ Like EDGX Options Depth and EDGX Options Top, the
Exchange offers separate EDGX Options Auction data feeds for the
Exchange's Simple Book and the Exchange's Complex Order Book.
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\8\ Exchange Rule 21.15(b)(5).
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The Exchange now proposes to amend its fee schedule to incorporate
fees for distribution of each of the above market data products to
subscribers. The proposed fees include the following, each of which are
described in detail below: (i) Distribution Fees for both Internal and
External Distributors; \9\ and (ii) Usage Fees for both Professional
\10\ and Non-Professional \11\ Users. The Exchange is proposing
identical Distribution and Users fees for each market data product
described above. Also, Distributors and Users of any one of the market
data products subject to this proposal may receive access to any or all
of the other market data products at no additional charge.
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\9\ A ``Distributor'' is defined as ``any entity that receives
the Exchange Market Data product directly from the Exchange or
indirectly through another entity and then distributes it internally
or externally to a third party.'' See the Exchange's fee schedule
available at http://markets.cboe.com/us/options/membership/fee_schedule/edgx/. An ``Internal Distributor'' is defined as ``a
Distributor that receives the Exchange Market Data product and then
distributes that data to one or more Users within the Distributor's
own entity.'' Id. An ``External Distributor'' is defined as ``a
Distributor that receives the Exchange Market Data product and then
distributes that data to a third party or one or more Users outside
the Distributor's own entity.'' Id.''
\10\ A ``Professional User'' is defined as ``any User other than
a Non-Professional User.'' See the Exchange's fee schedule available
at http://markets.cboe.com/us/options/membership/fee_schedule/edgx/.
\11\ A ``Non-Professional User'' is defined as ``a natural
person who is not: (i) Registered or qualified in any capacity with
the Commission, the Commodity Futures Trading Commission, any state
securities agency, any securities exchange or association, or any
commodities or futures contract market or association; (ii) engaged
as an ``investment adviser'' as that term is defined in Section
202(a)(11) of the Investment Advisers Act of 1940 (whether or not
registered or qualified under that Act); or (iii) employed by a bank
or other organization exempt from registration under federal or
state securities laws to perform functions that would require
registration or qualification if such functions were performed for
an organization not so exempt.'' Id.
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Distribution Fees. As proposed, each Internal Distributor and
External Distributor that receives either the simple or complex
versions of EDGX Options Depth, EDGX Options Top, and/or the EDGX
Options Auction Feed shall pay a fee of $500 per month.
User Fees. The Exchange proposes to charge Internal Distributors
and External Distributors that redistribute either the simple or
complex versions of EDGX Options Depth, EDGX Options Top, and/or the
EDGX Options Auction Feed different fees for their Professional Users
and Non-Professional Users. The Exchange will assess a monthly fee for
Professional Users of $10.00 per User. Non-Professional Users will be
assessed a monthly fee of $1.00 per User.
Distributors that receive either the simple or complex versions of
EDGX Options Depth, EDGX Options Top, and/or the EDGX Options Auction
Feed will be required to count every Professional User and Non-
Professional User to which they provide the market data product(s), the
requirements for which are identical to that currently in place for
other market data products offered by the Exchange's equity trading
platform.\12\ Thus, the Distributor's count will include every person
and device that accesses the data regardless of the purpose for which
the individual or device uses the data. Distributors must report all
Professional and Non-Professional Users in accordance with the
following:
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\12\ See Securities Exchange Act Release Nos. 74282 (February
18, 2015); 80 FR 9487 (February 23, 2015) (SR-EDGX-2015-09)
(proposing fees for the Bats One Feed); 75397 (July 8, 2015), 80 FR
41104 (July 14, 2015) (SR-EDGX-2015-28) (proposing user fees for the
EDGX Top and Last Sale data feeds); and 75788 (August 28, 2015), 80
FR 53364 (September 3, 2015) (SR-EDGX-2015-38) (proposing fees for
EDGX Book Viewer).
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In connection with a Distributor's distribution of the
market data product, the Distributor should count as one User each
unique User that the Distributor has entitled to have access to the
market data product. However, where a device is dedicated specifically
to a single individual, the Distributor should count only the
individual and need not count the device.
The Distributor should identify and report each unique
User. If a User uses the same unique method to gain access to the
market data product, the Distributor should count that as one User.
However, if a unique User uses multiple methods to gain access to the
market data product (e.g., a single User has multiple passwords and
user identifications), the Distributor should report all of those
methods as an individual User.
Distributors should report each unique individual person
who receives access through multiple devices as one User so long as
each device is dedicated specifically to that individual.
If a Distributor entitles one or more individuals to use
the same device, the Distributor should include only the individuals,
and not the device, in the count.

[[Page 1649]]

The Exchange intends to implement the proposed changes to its fee
schedule on January 2, 2018.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\13\ in general, and
furthers the objectives of Section 6(b)(4),\14\ in particular, as it is
designed to provide for the equitable allocation of reasonable dues,
fees and other charges among its members and other recipients of
Exchange data. The Exchange believes that the proposed rates are
equitable and non-discriminatory in that they apply uniformly to all
recipients of Exchange data and that the proposed fees are competitive
with those charged by other venues and, therefore, reasonable and
equitably allocated to recipients.
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\13\ 15 U.S.C. 78f.
\14\ 15 U.S.C. 78f(b)(4).
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The Exchange also believes that the proposed rule change is
consistent with Section 11(A) of the Act \15\ in that it supports (i)
fair competition among brokers and dealers, among exchange markets, and
between exchange markets and markets other than exchange markets and
(ii) the availability to brokers, dealers, and investors of information
with respect to quotations for and transactions in securities.
Furthermore, the proposed rule change is consistent with Rule 603 of
Regulation NMS,\16\ which provides that any national securities
exchange that distributes information with respect to quotations for or
transactions in an NMS stock do so on terms that are not unreasonably
discriminatory. In adopting Regulation NMS, the Commission granted
self-regulatory organizations and broker-dealers increased authority
and flexibility to offer new and unique market data to the public. It
was believed that this authority would expand the amount of data
available to consumers, and also spur innovation and competition for
the provision of market data.
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\15\ 15 U.S.C. 78k-1.
\16\ 17 CFR 242.603.
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In addition, the proposed fees would not permit unfair
discrimination because all of the Exchange's customers and market data
vendors will be subject to the proposed fees on an equivalent basis.
EDGX Options Depth, EDGX Options Top, and the EDGX Options Auction Feed
are distributed and purchased on a voluntary basis, in that neither the
Exchange nor market data distributors are required by any rule or
regulation to make this data available. Accordingly, Distributors and
Users can discontinue use at any time and for any reason, including due
to an assessment of the reasonableness of fees charged. Firms have a
wide variety of alternative market data products from which to choose,
such as similar proprietary data products offered by other exchanges
and consolidated data. Moreover, the Exchange is not required to make
any proprietary data products available or to offer any specific
pricing alternatives to any customers.
In addition, the fees that are the subject of this rule filing are
constrained by competition. As explained below in the Exchange's
Statement on Burden on Competition, the existence of alternatives to
EDGX Options Depth, EDGX Options Top, and the EDGX Options Auction Feed
further ensures that the Exchange cannot set unreasonable fees, or fees
that are unreasonably discriminatory, when vendors and subscribers can
elect such alternatives. That is, the Exchange competes with other
exchanges (and their affiliates) that provide similar market data
products. If another exchange (or its affiliate) were to charge less to
distribute its similar product than the Exchange charges to distribute
EDGX Options Depth, EDGX Options Top, and the EDGX Options Auction
Feed, prospective Users likely would not subscribe to, or would cease
subscribing to, EDGX Options Depth, EDGX Options Top, and the EDGX
Options Auction Feed.
The Exchange notes that the Commission is not required to undertake
a cost-of-service or rate-making approach. The Exchange believes that,
even if it were possible as a matter of economic theory, cost-based
pricing for non-core market data would be so complicated that it could
not be done practically.
Distribution Fee. The Exchange believes that the proposed
Distribution Fees are also reasonable, equitably allocated, and not
unreasonably discriminatory. The fees for Members and non-Members are
uniform except with respect to reasonable distinctions with respect to
internal and external distribution, the fee for both are equal for each
of the market data products subject to this proposal. The Exchange
believes that the Distribution Fees for EDGX Options Depth, EDGX
Options Top, and the EDGX Options Auction Feed are reasonable and fair
in light of alternatives offered by other market centers. For example,
EDGX Options Depth, EDGX Options Top, and the EDGX Options Auction Feed
provides investors with alternative market data and competes with
similar market data product currently offered by Nasdaq PHLX LLC
(``PHLX''). Specifically, PHLX charges a fee of $5,000 per month to
External Distributors and $4,000 per month to Internal Distributors for
the TOPO Plus Orders feed,\17\ which included PHLX's complex order
book. PHLX also charges Internal Distributors $2,000 per month and
External Distributors $2,500 per month for the Top of PHLX Options,
which includes PHLX top of book data.\18\ PHLX charges Internal
Distributors $4,000 per month and External Distributors $4,500 per
month for the PHLX Depth Data, which includes PHLX depth of book
quotations.\19\ Each of these fees charged by PHLX are higher than that
proposed herein.
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\17\ See a description of TOPO Plus Orders available at http://www.nasdaqtrader.com/Micro.aspx?id=topoplusorders. See also Section
IV of PHLX Rules outlining the fees for the TOPO Plus Orders feed.
\18\ See Section IV of PHLX Rules outlining the fees for the Top
of PHLX Options feed.
\19\ See Section IV of PHLX Rules outlining the fees for the
PHLX Depth Data feed.
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User Fees. The Exchange believes that implementing the Professional
and Non-Professional User fees for EDGX Options Depth, EDGX Options
Top, and the EDGX Options Auction Feed are equitable and reasonable
because they will result in greater availability to Professional and
Non-Professional Users. Moreover, introducing a modest Non-Professional
User fee for EDGX Options Depth, EDGX Options Top, and the EDGX Options
Auction Feed is reasonable because it provides an additional method for
retail investors to access EDGX Options Depth, EDGX Options Top, and
the EDGX Options Auction Feed data by providing the same data that is
available to Professional Users. The Exchange believes that the
proposed fees are equitable and not unfairly discriminatory because
they will be charged uniformly to recipient firms and Users. The fee
structure of differentiated Professional and Non-Professional fees is
utilized by the Exchange for the Cboe One Feed and has long been used
by other exchanges for their proprietary data products, and by the
Nasdaq UTP and the CTA and CQ Plans in order to reduce the price of
data to retail investors and make it more broadly available.\20\
Offering EDGX

[[Page 1650]]

Options Depth, EDGX Options Top, and the EDGX Options Auction Feed to
Non-Professional Users with the same data available to Professional
Users results in greater equity among data recipients. The requirement
that Distributors count every Professional User and Non-Professional
User to which they provide the market data product(s) is also equitable
and reasonable because the requirements are identical to that currently
in place for other market data products offered by the Exchange's
equity trading platform.\21\
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\20\ See Securities Exchange Act Release Nos. 74285 (February
18, 2015), 80 FR 9828 (February 24, 2015) (SR-BATS-2015-11); 74283
(February 18, 2015), 80 FR 9809 (February 24, 2015) (SR-EDGA-2015-
09); 74282 (February 17, 2015), 80 FR 9487 (February 23, 2015) (SR-
EDGX-2015-09); and 74284 (February 18, 2015), 80 FR 9792 (February
24, 2015) (SR-BYX-2015-09). See also, e.g., Securities Exchange Act
Release No. 20002, File No. S7-433 (July 22, 1983) (establishing
nonprofessional fees for CTA data); and Nasdaq Rules 7023(b), 7047.
\21\ See Securities Exchange Act Release Nos. 74282 (February
18, 2015); 80 FR 9487 (February 23, 2015) (SR-EDGX-2015-09)
(proposing fees for the Bats One Feed); 75397 (July 8, 2015), 80 FR
41104 (July 14, 2015) (SR-EDGX-2015-28) (proposing user fees for the
EDGX Top and Last Sale data feeds); and 75788 (August 28, 2015), 80
FR 53364 (September 3, 2015) (SR-EDGX-2015-38) (proposing fees for
EDGX Book Viewer).
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In addition, the proposed fees are reasonable when compared to
similar fees for comparable products offered by PHLX. Specifically,
PHLX charges a fee of $40 per month to professional users and $1.00 per
month to non-professional users of TOPO Plus Orders feed, Top of PHLX
Options, and PHLX Depth Data.\22\ Each of these fees charged by PHLX
are either equal to or higher than that proposed herein.
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\22\ See Section IV of PHLX Rules outlining the fees for each of
these PHLX market data products.
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B. Self-Regulatory Organization's Statement on Burden on Competition

The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act, as amended. The
Exchange's ability to price EDGX Options Depth, EDGX Options Top, and
the EDGX Options Auction Feed is constrained by: (i) Competition among
exchanges, other trading platforms, and Trade Reporting Facilities
(``TRF'') that compete with each other in a variety of dimensions; (ii)
the existence of inexpensive real-time consolidated data and market-
specific data and free delayed data; and (iii) the inherent
contestability of the market for proprietary data.
The Exchange and its market data products are subject to
significant competitive forces and the proposed fees represent
responses to that competition. To start, the Exchange competes
intensely for order flow. It competes with the other national
securities exchanges that currently trade equities, with electronic
communication networks, with quotes posted in FINRA's Alternative
Display Facility, with alternative trading systems, and with securities
firms that primarily trade as principal with their customer order flow.
In addition, EDGX Options Depth, EDGX Options Top, and the EDGX
Options Auction Feed compete with a number of alternative products. For
instance, EDGX Options Depth, EDGX Options Top, and the EDGX Options
Auction Feed do not provide a complete picture of all trading activity
in a security. Rather, the other national securities exchanges, the
several TRFs of FINRA, and Electronic Communication Networks (``ECN'')
that produce proprietary data all produce trades and trade reports.
Each is currently permitted to produce last sale information products,
and many currently do, including Nasdaq and NYSE. In addition, market
participants can gain access to EDGX Options last sale and depth-of-
book quotations, though integrated with the prices of other markets, on
feeds made available through the SIPs.
In sum, the availability of a variety of alternative sources of
information imposes significant competitive pressures on Exchange data
products and the Exchange's compelling need to attract order flow
imposes significant competitive pressure on the Exchange to act
equitably, fairly, and reasonably in setting the proposed data product
fees. The proposed data product fees are, in part, responses to that
pressure. The Exchange believes that the proposed fees would reflect an
equitable allocation of its overall costs to users of its facilities.
In addition, when establishing the proposed fees, the Exchange
considered the competitiveness of the market for proprietary data and
all of the implications of that competition. The Exchange believes that
it has considered all relevant factors and has not considered
irrelevant factors in order to establish fair, reasonable, and not
unreasonably discriminatory fees and an equitable allocation of fees
among all Users. The existence of alternatives to EDGX Options Depth,
EDGX Options Top, and the EDGX Options Auction Feed, including existing
similar feeds by other exchanges, consolidated data, and proprietary
data from other sources, ensures that the Exchange cannot set
unreasonable fees, or fees that are unreasonably discriminatory, when
vendors and subscribers can elect these alternatives or choose not to
purchase a specific proprietary data product if its cost to purchase is
not justified by the returns any particular vendor or subscriber would
achieve through the purchase.

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

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

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \23\ and paragraph (f) of Rule 19b-4
thereunder.\24\ 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.
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\23\ 15 U.S.C. 78s(b)(3)(A).
\24\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments

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

Electronic Comments

Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-CboeEDGX-2017-010 on the subject line.

Paper Comments

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

All submissions should refer to File Number CboeEDGX-2017-010. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the

[[Page 1651]]

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
CboeEDGX-2017-010 and should be submitted on or before February 2,
2018.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\25\
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\25\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-00413 Filed 1-11-18; 8:45 am]
BILLING CODE 8011-01-P

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 09:52:46
Document Modified: 2018-10-26 09:52:46

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 1647