83 FR 2237 - Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for the BZX Depth Market Data Product
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 10 (January 16, 2018)
Federal Register Volume 83, Issue 10 (January 16, 2018)
| Page Range | 2237-2240 | |
| FR Document | 2018-00532 |
[Federal Register Volume 83, Number 10 (Tuesday, January 16, 2018)] [Notices] [Pages 2237-2240] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-00532] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82475; File No. SR-CboeBZX-2017-018] Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for the BZX Depth Market Data Product January 9, 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 BZX Exchange, Inc. (the ``Exchange'' or ``BZX'') 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 Exchange has designated the proposed rule change as one establishing or changing a member due, fee, or other charge imposed by the Exchange under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposed rule change effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ 15 U.S.C. 78s(b)(3)(A)(ii). \4\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange filed a proposal to amend the Market Data section of its fee schedule to introduce new fees for Non-Display Usage of BZX Depth. 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 [[Page 2238]] any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend the Market Data section of its fee schedule to introduce new fees for Non-Display Usage \5\ of BZX Depth. BZX Depth is an uncompressed market data feed that provides depth-of- book quotations and execution information based on equity orders entered into the System.\6\ The Exchange currently charges subscribers to BZX Depth a fee of $5,000 per month for Non-Display Usage of BZX Depth by its Trading Platforms.\7\ Non-Display Usage is defined as ``any method of accessing a Market Data product that involves access or use by a machine or automated device without access or use of a display by a natural person or persons.'' \8\ Trading Platforms include registered National Securities Exchanges, Alternative Trading Systems (``ATSs''), and Electronic Communications Networks (``ECNs'') as those terms are defined in the Exchange Act and regulations and rules thereunder. Previously, subscribers of BZX Depth that used the feed for Non-Display purposes but did not utilize the feed within a Trading Platform were charged the existing Distributors fees. --------------------------------------------------------------------------- \5\ See the Exchange's fee schedule available at http://markets.cboe.com/us/equities/membership/fee_schedule/bzx/. \6\ See Exchange Rule 13.8(a). \7\ A Trading Platform is defined as ``any execution platform operated as or by a registered National Securities Exchange (as defined in Section 3(a)(1) of the Exchange Act), an Alternative Trading System (as defined in Rule 300(a) of Regulation ATS), or an Electronic Communications Network (as defined in Rule 600(b)(23) of Regulation NMS).'' See the Exchange's fee schedule available at http://markets.cboe.com/us/equities/membership/fee_schedule/bzx/. \8\ See the Exchange's fee schedule available at http://markets.cboe.com/us/equities/membership/fee_schedule/bzx/. --------------------------------------------------------------------------- Forms of Non-Display Use include, but are not limited to, algorithmic or automated trading, order routing, surveillance, order management, risk management, clearance and settlement activities, and account maintenance.\9\ Non-Display Usage does not include any use of BZX Depth that relates solely to transportation, dissemination, and redistribution of BZX Depth, or that results in the output of BZX Depth solely for display. Non-display uses of data for non-trading purposes benefits data recipients by allowing users to automate functions, to achieve greater speed and accuracy, and to reduce costs of labor. While some non-trading uses do not directly generate revenues, they can substantially reduce a data recipient's costs by automating many functions. Those functions can be carried out in a more efficient and accurate manner, with reduced errors and labor costs. --------------------------------------------------------------------------- \9\ See e.g., Nasdaq Rule IM-7023-1(c), U.S. Non-Display Information. --------------------------------------------------------------------------- The Exchange now proposes to adopt a separate fee of $2,000 per month to cover other forms of Non-Display Usage other than through a Trading Platform. The proposed fee would be assessed in addition to existing Distributor \10\ fees and would supplement the existing Non- Display Usage fee for Trading Platforms. Specifically, subscribers who are subject to the Non-Display Usage by Trading Platform fee but also utilize BZX Depth for other Non-Display purposes would be subject to both fees. However, subscribers who utilize BZX Depth for other Non- Display purposes and not within a Trading Platform would be subject only to the proposed fee for Non-Display Use. --------------------------------------------------------------------------- \10\ 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/equities/membership/fee_schedule/bzx/. --------------------------------------------------------------------------- Certain subscribers that use an Exchange approved Managed Non- Display Service Provider would be exempt from proposed Non-Display Usage Fee. To be approved as Managed Non-Display Service Provider, the Distributor must host subscriber's applications that utilize BZX Depth must within the Managed Non-Display Service Provider's space/cage; fully manage and control access to BZX Depth, and not permit further redistribution of the Exchange Data internally or externally.\11\ In order to qualify for the exemption, the subscriber must meet the following requirements: --------------------------------------------------------------------------- \11\ See e.g., Securities Exchange Act Release No. 76900 at fn. 8 (January 14, 2016), 81 FR 3506 (January 21, 2016) (SR-NYSE-2016- 02). In this filing, the NYSE discontinued fees related to managed non-display for NYSE OpenBook. Id. ---------------------------------------------------------------------------Any subscriber applications that utilize BZX Depth must be hosted within the Managed Non-Display Service Provider's space/cage; the subscriber's access to BZX Depth is fully managed and controlled by the Managed Non-Display Service Provider, and no further redistribution of the Exchange Data internally or externally is permitted; and the subscriber is supported solely by one Managed Non- Display Service Provider, is not hosted by multiple Managed Non-Display Service Providers, and does not have their own data center-hosted environment that also receives BZX Depth. The Exchange intends to implement the proposed fee changes 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,\12\ in general, and furthers the objectives of Section 6(b)(4),\13\ 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. The Exchange believes the proposed fees are competitive with those charged by other venues and, therefore, reasonable and equitably allocated to recipients. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78f. \13\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- The Exchange also believes that the proposed rule change is consistent with Section 11(A) of the Act \14\ 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,\15\ 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. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78k-1. \15\ See 17 CFR 242.603. --------------------------------------------------------------------------- In addition, the proposed fees would not permit unfair discrimination because all of the Exchange's [[Page 2239]] subscribers will be subject to the proposed fees on an equivalent basis. BZX Depth is 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 BZX Depth further ensures that the Exchange cannot set unreasonable fees, or fees that are unreasonably discriminatory, when 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 consolidate and distribute its similar product than the Exchange charges to consolidate and distribute BZX Depth, prospective Users likely would not subscribe to, or would cease subscribing to, BZX Depth. 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.\16\ --------------------------------------------------------------------------- \16\ The Exchange believes that cost-based pricing would be impractical because it would create enormous administrative burdens for all parties, including the Commission, to cost-regulate a large number of participants and standardize and analyze extraordinary amounts of information, accounts, and reports. In addition, it is impossible to regulate market data prices in isolation from prices charged by markets for other services that are joint products. Cost- based rate regulation would also lead to litigation and may distort incentives, including those to minimize costs and to innovate, leading to further waste. Under cost-based pricing, the Commission would be burdened with determining a fair rate of return, and the industry could experience frequent rate increases based on escalating expense levels. Even in industries historically subject to utility regulation, cost-based ratemaking has been discredited. As such, the Exchange believes that cost-based ratemaking would be inappropriate for proprietary market data and inconsistent with Congress's direction that the Commission use its authority to foster the development of the national market system, and that market forces will continue to provide appropriate pricing discipline. See Appendix C to NYSE's comments to the Commission's 2000 Concept Release on the Regulation of Market Information Fees and Revenues, which can be found on the Commission's website at http://www.sec.gov/rules/concept/s72899/buck1.htm. See also Securities Exchange Act Release No. 73816 (December 11, 2014), 79 FR 75200 (December 17, 2014) (SR-NYSE-2014-64) (Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Establish an Access Fee for the NYSE Best Quote and Trades Data Feed, Operative December 1, 2014). --------------------------------------------------------------------------- The proposed Non-Display fee for usage other than through a Trading Platform for BZX Depth is equitable and reasonable as the Exchange believes the proposed fee represents the value of the data provided by the feed and its use by market participants. The proposed fee changes reflects changing trends in the ways in which the industry uses market data. The proposed fee comport with the proliferation of the use of data for various non-display purposes and by non-display trading applications. It recognizes industry changes that have evolved as a result of numerous technological advances, the advent of trading algorithms and automated trading, different investment patterns, a plethora of new securities products, unprecedented levels of trading, decimalization, internationalization and developments in portfolio analysis and securities research. The Exchange believes the proposed fee reflects the value of the data provided. The Exchange notes that fees for non-display use have become commonplace in the industry. Several exchanges impose them as does the UTP, CTA/CQ, and OPRA Plans. In addition, the fee proposed is less than similar fees currently charged by other exchanges for their depth-of- book data products. For example, NYSE Arca, Inc. (``NYSE Arca'') and the New York Stock Exchange, Inc. (``NYSE'') charge $5,000 and $6,000 per month, respectively, for its depth-of-book data used for non- display purposes.\17\ --------------------------------------------------------------------------- \17\ See the non-display fees for NYSE OpenBook and NYSE ArcaBook in the NYSE and NYSE Arca fee schedules available at http://www.nyxdata.com/nysedata/default.aspx?tabid=518&folder=207656. --------------------------------------------------------------------------- The proposed fee is also equitable and reasonable in that it ensures that heavy users of the BZX Depth pay an equitable share of the total fees. Currently, External Distributors pay higher fees than Internal Distributors based upon their assumed higher usage levels. The Exchange believes that non-display users are generally high users of the data, using it to power a trading algorithms and other trading relates systems for millions or even billions of trading messages per day. 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 BZX Depth 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, BZX Depth competes with a number of alternative products. For instance, BZX Depth does not provide a complete picture of all trading activity in a security. Rather, the other national securities exchanges, the several TRFs of FINRA, and ECNs that produce proprietary data all produce trades and trade reports. Each is currently permitted to produce depth-of-book information products, and many currently do, including Nasdaq, NYSE, and NYSE Arca. 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 [[Page 2240]] 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 BZX Depth, 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 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. The Exchange believes the adoption of the fee for Non-Display Usage for BZX Depth would increase competition amongst the exchanges that offer depth-of-book products. In addition, the proposed Non-Display Usage fee is less than similar fees currently charged by the NYSE and NYSE Arca for their depth-of-book data.\18\ --------------------------------------------------------------------------- \18\ See supra note 17. --------------------------------------------------------------------------- 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 \19\ and paragraph (f) of Rule 19b-4 thereunder.\20\ 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. --------------------------------------------------------------------------- \19\ 15 U.S.C. 78s(b)(3)(A). \20\ 17 CFR 240.19b-4(f). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-CboeBZX-2017-018 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 CboeBZX-2017-018. 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 CboeBZX-2017-018 and should be submitted on or before February 6, 2018. --------------------------------------------------------------------------- \21\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\21\ Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-00532 Filed 1-12-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Notices 2237
All statements and representations 100 F Street NE, Washington, DC Dated: January 9, 2018.
made in this filing regarding the index 20549–2736. Eduardo A. Aleman,
composition, the description of the Extension: Assistant Secretary.
portfolio or reference assets, limitations Form 8–K. [FR Doc. 2018–00496 Filed 1–12–18; 8:45 am]
on portfolio holdings or reference assets, BILLING CODE 8011–01–P
dissemination and availability of index, Notice is hereby given that, pursuant
reference asset, and intraday indicative to the Paperwork Reduction Act of 1995
values, and the applicability of (44 U.S.C. 3501 et seq.), the Securities SECURITIES AND EXCHANGE
Exchange rules specified in this filing and Exchange Commission COMMISSION
shall constitute continued listing (‘‘Commission’’) is soliciting comments
on the collection of information [Release No. 34–82475; File No. SR–
requirements for the Fund. The issuer
summarized below. The Commission CboeBZX–2017–018]
has represented to the Exchange that it
will advise the Exchange of any failure plans to submit this existing collection
of information to the Office of Self-Regulatory Organizations; Cboe
by the Fund or the Shares to comply BZX Exchange, Inc.; Notice of Filing
with the continued listing requirements, Management and Budget for extension
and approval. and Immediate Effectiveness of a
and, pursuant to its obligations under Proposed Rule Change Related to Fees
Section 19(g)(1) of the Act, the Exchange Form 8–K (17 CFR 249.308) is filed by for the BZX Depth Market Data Product
will surveil for compliance with the issuers to satisfy their current reporting
continued listing requirements. If the obligations pursuant to Sections 13 and January 9, 2018.
Fund or the Shares are not in 15(d) of the Securities Exchange Act of Pursuant to Section 19(b)(1) of the
compliance with the applicable listing 1934 (15 U.S.C. 78m and 78o(d)) in Securities Exchange Act of 1934 (the
requirements, the Exchange will connection with the occurrence of ‘‘Act’’),1 and Rule 19b–4 thereunder,2
commence delisting procedures under significant corporate events. The notice is hereby given that on December
BZX Rule 14.12. This approval order is purpose of Form 8–K is to provide 27, 2017, Cboe BZX Exchange, Inc. (the
based on all of the Exchange’s investors with prompt disclosure of ‘‘Exchange’’ or ‘‘BZX’’) filed with the
representations, including those set material information so that investors Securities and Exchange Commission
forth above and in Amendment No. 2. will be able to make investment and (the ‘‘Commission’’) the proposed rule
For the foregoing reasons, the voting decisions better informed and change as described in Items I, II, and
Commission finds that the proposed receive information more timely. We III below, which Items have been
rule change is consistent with Section estimate that Form 8–K takes 5 hours prepared by the Exchange. The
6(b)(5) of the Exchange Act 29 and per response and is filed by 121,600 Exchange has designated the proposed
Section 11A(a)(1)(C)(iii) of the Exchange responses annually. We estimate that rule change as one establishing or
Act 30 and the rules and regulations 75% of the 5 hours per response (3.75 changing a member due, fee, or other
thereunder applicable to a national hours) is prepared by the issuer for a charge imposed by the Exchange under
securities exchange. total annual reporting burden of 456,000 Section 19(b)(3)(A)(ii) of the Act 3 and
hours (3.75 hours per response x Rule 19b–4(f)(2) thereunder,4 which
IV. Conclusion 121,600 responses). renders the proposed rule change
It is therefore ordered, pursuant to Written comments are invited on: (a) effective upon filing with the
Section 19(b)(2) of the Exchange Act,31 Whether this collection of information Commission. The Commission is
that the proposed rule change (SR– is necessary for the proper performance publishing this notice to solicit
BATSBZX–2017–58), as modified by of the functions of the agency, including comments on the proposed rule change
Amendment No. 2, be, and hereby is, whether the information will have from interested persons.
approved. practical utility; (b) the accuracy of the
I. Self-Regulatory Organization’s
For the Commission, by the Division of agency’s estimate of the burden imposed
Statement of the Terms of Substance of
Trading and Markets, pursuant to delegated by the collection of information; (c)
the Proposed Rule Change
authority.32 ways to enhance the quality, utility, and
Eduardo A. Aleman, clarity of the information collected; and The Exchange filed a proposal to
(d) ways to minimize the burden of the amend the Market Data section of its fee
Assistant Secretary.
collection of information on schedule to introduce new fees for Non-
[FR Doc. 2018–00533 Filed 1–12–18; 8:45 am]
respondents, including through the use Display Usage of BZX Depth.
BILLING CODE 8011–01–P The text of the proposed rule change
of automated collection techniques or
other forms of information technology. is available at the Exchange’s website at
Consideration will be given to www.markets.cboe.com, at the principal
SECURITIES AND EXCHANGE
comments and suggestions submitted in office of the Exchange, and at the
COMMISSION
writing within 60 days of this Commission’s Public Reference Room.
[SEC File No. 270–50, OMB Control No. publication. II. Self-Regulatory Organization’s
3235–0060] An agency may not conduct or Statement of the Purpose of, and
sponsor, and a person is not required to Statutory Basis for, the Proposed Rule
Proposed Collection; Comment respond to, a collection of information Change
Request unless it displays a currently valid
In its filing with the Commission, the
Upon Written Request Copies Available control number.
Exchange included statements
daltland on DSKBBV9HB2PROD with NOTICES
From: Securities and Exchange Please direct your written comment to concerning the purpose of and basis for
Commission, Office of FOIA Services, Pamela Dyson, Director/Chief the proposed rule change and discussed
Information Officer, Securities and
29 15 U.S.C. 78f(b)(5). Exchange Commission, c/o Remi Pavlik- 1 15 U.S.C. 78s(b)(1).
30 15 U.S.C. 78k–1(a)(1)(C)(iii). Simon, 100 F Street NE, Washington, 2 17 CFR 240.19b–4.
31 15 U.S.C. 78s(b)(2). DC 20549 or send an email to: PRA_ 3 15 U.S.C. 78s(b)(3)(A)(ii).
32 17 CFR 200.30–3(a)(12). Mailbox@sec.gov. 4 17 CFR 240.19b–4(f)(2).
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![2240 Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Notices
considered irrelevant factors in order to • Send an email to rule-comments@ SECURITIES AND EXCHANGE
establish fair, reasonable, and not sec.gov. Please include File Number SR– COMMISSION
unreasonably discriminatory fees and an CboeBZX–2017–018 on the subject line.
[Release No. 34–82474; File No. SR–Phlx–
equitable allocation of fees among all 2017–75]
Users. The existence of alternatives to Paper Comments
BZX Depth, including existing similar • Send paper comments in triplicate Self-Regulatory Organizations; Nasdaq
feeds by other exchanges, consolidated to Secretary, Securities and Exchange PHLX LLC; Order Granting Approval of
data, and proprietary data from other a Proposed Rule Change To Amend
Commission, 100 F Street NE,
sources, ensures that the Exchange Rule 1009 To Modify the Criteria for
Washington, DC 20549–1090.
cannot set unreasonable fees, or fees Listing an Option on an Underlying
that are unreasonably discriminatory, All submissions should refer to File Covered Security
when subscribers can elect these Number CboeBZX–2017–018. This file
alternatives or choose not to purchase a number should be included on the January 9, 2018.
specific proprietary data product if its subject line if email is used. To help the I. Introduction
cost to purchase is not justified by the Commission process and review your
returns any particular vendor or On September 27, 2017, Nasdaq PHLX
comments more efficiently, please use
subscriber would achieve through the LLC (‘‘Phlx’’ or ‘‘Exchange’’) filed with
only one method. The Commission will the Securities and Exchange
purchase. post all comments on the Commission’s
The Exchange believes the adoption Commission (‘‘Commission’’), pursuant
internet website (http://www.sec.gov/ to Section 19(b)(1) of the Securities
of the fee for Non-Display Usage for rules/sro.shtml). Copies of the
BZX Depth would increase competition Exchange Act of 1934 (‘‘Act’’) 1 and Rule
submission, all subsequent 19b–4 thereunder,2 a proposed rule
amongst the exchanges that offer depth-
amendments, all written statements change to amend the criteria for listing
of-book products. In addition, the
with respect to the proposed rule an option on an underlying covered
proposed Non-Display Usage fee is less
than similar fees currently charged by change that are filed with the security in Phlx Rule 1009, Commentary
the NYSE and NYSE Arca for their Commission, and all written .01. The proposed rule change was
depth-of-book data.18 communications relating to the published for comment in the Federal
proposed rule change between the Register on October 11, 2017.3 On
C. Self-Regulatory Organization’s Commission and any person, other than November 15, 2017 the Exchange
Statement on Comments on the those that may be withheld from the submitted a comment letter on the
Proposed Rule Change Received From public in accordance with the proposed rule change.4 The Commission
Members, Participants, or Others provisions of 5 U.S.C. 552, will be received no other comment letters. On
The Exchange has neither solicited available for website viewing and November 22, 2017, pursuant to Section
nor received written comments on the printing in the Commission’s Public 19(b)(2) of the Act,5 the Commission
proposed rule change. Reference Room, 100 F Street NE, designated a longer period within which
Washington, DC 20549 on official to approve the proposed rule change,
III. Date of Effectiveness of the disapprove the proposed rule change, or
Proposed Rule Change and Timing for business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the institute proceedings to determine
Commission Action whether the proposed rule change
filing also will be available for
The foregoing rule change has become should be disapproved.6 This order
inspection and copying at the principal
effective pursuant to Section 19(b)(3)(A) approves the proposed rule change.
office of the Exchange. All comments
of the Act 19 and paragraph (f) of Rule
received will be posted without change. II. Description of the Proposal
19b–4 thereunder.20 At any time within
60 days of the filing of the proposed rule Persons submitting comments are The Exchange proposes to amend
change, the Commission summarily may cautioned that we do not redact or edit Phlx Rule 1009, Commentary .01 to
temporarily suspend such rule change if personal identifying information from modify the criteria for listing options on
it appears to the Commission that such comment submissions. You should an underlying security as defined in
action is necessary or appropriate in the submit only information that you wish Section 18(b)(1)(A) of the Securities Act
public interest, for the protection of to make available publicly. All of 1933 (hereinafter ‘‘covered security’’).
investors, or otherwise in furtherance of submissions should refer to File In particular, the Exchange proposes to
the purposes of the Act. Number CboeBZX–2017–018 and modify Phlx Rule 1009, Commentary
should be submitted on or before .01(4)(i) which currently requires that to
IV. Solicitation of Comments February 6, 2018. list an option, the underlying covered
Interested persons are invited to security has to have a market price of at
For the Commission, by the Division of
submit written data, views, and Trading and Markets, pursuant to delegated
least $3.00 per share for the previous
arguments concerning the foregoing, authority.21
including whether the proposed rule 1 15 U.S.C. 78s(b)(1).
Eduardo A. Aleman, 2 17 CFR 240.19b–4.
change is consistent with the Act.
Comments may be submitted by any of Assistant Secretary. 3 See Securities Exchange Act Release No. 81814
[FR Doc. 2018–00532 Filed 1–12–18; 8:45 am] (Oct. 4, 2017), 82 FR 47254 (‘‘Notice’’).
the following methods: 4 See Letter to Brett J. Fields, Secretary,
BILLING CODE 8011–01–P Commission, from Sun Kim, Assistant General
Electronic Comments
daltland on DSKBBV9HB2PROD with NOTICES
Counsel, Exchange, dated November 15, 2017
• Use the Commission’s internet (‘‘Exchange Letter’’).
5 15 U.S.C. 78s(b)(2).
comment form (http://www.sec.gov/
6 See Securities Exchange Act Release No. 82147,
rules/sro.shtml); or
82 FR 47254 (November 25, 2017). The Commission
designated January 9, 2017, as the date by which
18 See supra note 17. it should approve, disapprove, or institute
19 15 U.S.C. 78s(b)(3)(A). proceedings to determine whether the proposed
20 17 CFR 240.19b–4(f). 21 17 CFR 200.30–3(a)(12). rule change should be disapproved.
VerDate Sep<11>2014 22:48 Jan 12, 2018 Jkt 244001 PO 00000 Frm 00110 Fmt 4703 Sfmt 4703 E:\FR\FM\16JAN1.SGM 16JAN1](https://thefederalregister.org/doc/83_FR_2247/page/4.svg)
Document Created: 2018-01-13 02:02:24
Document Modified: 2018-01-13 02:02:24
| 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 2237 |
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