83 FR 22730 - Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use on Cboe BYX Exchange, Inc.

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 95 (May 16, 2018)

Page Range		22730-22731
FR Document		2018-10381

Federal Register, Volume 83 Issue 95 (Wednesday, May 16, 2018)

[Federal Register Volume 83, Number 95 (Wednesday, May 16, 2018)]
[Notices]
[Pages 22730-22731]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2018-10381]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83211; File No. SR-CboeBYX-2018-004]

Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Related to
Fees for Use on Cboe BYX Exchange, Inc.

May 10, 2018.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on May 1, 2018, Cboe BYX Exchange, Inc. (the ``Exchange'' or
``BYX'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II
and III below, which Items have been prepared by the Exchange. The
Exchange has designated the proposed rule change as one establishing or
changing a member due, fee, or other charge imposed by the Exchange
under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2)
thereunder,\4\ which renders the proposed rule change effective upon
filing with the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

The Exchange filed a proposal to amend the fee schedule applicable
to Members \5\ and non-Members of the Exchange pursuant to BYX Rules
15.1(a) and (c).
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\5\ The term ``Member'' is defined as ``any registered broker or
dealer that has been admitted to membership in the Exchange.'' See
Exchange Rule 1.5(n).
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The text of the proposed rule change is available at the Exchange's
website at www.markets.cboe.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The

[[Page 22731]]

Exchange has prepared summaries, set forth in Sections A, B, and C
below, of the most significant parts of such statements.

(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
The Exchange proposes to amend its fee schedule applicable to its
equities trading platform (``BYX Equities'') to increase the fee for
orders yielding fee code D, which results from an order routed to the
New York Stock Exchange (``NYSE'') using Destination Specific, RDOT,
RDOX, TRIM or SLIM routing strategy. Particularly, NYSE recently
implemented certain pricing changes related to Tapes B and C
securities, including adopting a per tape fee of $0.00280 per share to
remove liquidity from the Exchange for member organizations with an
Adding ADV of at least 50,000 shares for that respective Tape.\6\ Based
on the changes in pricing at NYSE, the Exchange is proposing to
increase its fee for orders executed at NYSE that yield fee code D from
$0.00265 to $0.00280.
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\6\ See NYSE Trader Update, NYSE--Fees for Trading Tapes B and C
securities, dated April 2, 2018, available at https://www.nyse.com/publicdocs/nyse/markets/nyse/NYSE_Fee_Change_BandC_April2018.pdf.
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2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\7\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \8\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. Additionally,
the Exchange believes the proposed rule change is consistent with
Section 6(b)(4) of the Act,\9\ which requires that Exchange rules
provide for the equitable allocation of reasonable dues, fees, and
other charges among its Members and other persons using its facilities.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
\9\ 15 U.S.C. 78f(b)(4).
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The Exchange believes the proposed fee is reasonable because it
reflects a pass-through of the pricing increase by NYSE noted above.
The Exchange further believes the proposed fee change is non-
discriminatory because it applies uniformly to all Members.

(B) Self-Regulatory Organization's Statement on Burden on Competition

The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange does not believe
that the proposed change to the Exchange's routing pricing burdens
competition, as it's based on the pricing of another venue and applies
uniformly to all Members. The Exchange notes that it operates in a
highly competitive market in which market participants can readily
direct order flow to competing venues if they deem fee structures to be
unreasonable or excessive. The Exchange does not believe the proposed
amendments would burden intramarket competition as they would be
available to all Members uniformly.

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

The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from Members or other interested
parties.

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

The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \10\ and paragraph (f) of Rule 19b-4
thereunder.\11\ 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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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 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 proposal 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 No. SR-CboeBYX-2018-004 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 No. SR-CboeBYX-2018-004. 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 such filing will also 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 No. SR-CboeBYX-2018-004 and should be submitted on
or before June 6, 2018.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-10381 Filed 5-15-18; 8:45 am]
BILLING CODE 8011-01-P

22730 Federal Register / Vol. 83, No. 95 / Wednesday, May 16, 2018 / Notices

(B) Self-Regulatory Organization’s consistent with the Act. Comments may SECURITIES AND EXCHANGE
Statement on Burden on Competition be submitted by any of the following COMMISSION
The Exchange does not believe that methods:
[Release No. 34–83211; File No. SR–
the proposed rule change will impose Electronic Comments CboeBYX–2018–004]
any burden on competition not
necessary or appropriate in furtherance • Use the Commission’s internet Self-Regulatory Organizations; Cboe
of the purposes of the Act. The comment form (http://www.sec.gov/ BYX Exchange, Inc.; Notice of Filing
Exchange does not believe that any of rules/sro.shtml); or and Immediate Effectiveness of a
the proposed change to the Exchange’s • Send an email to rule-comments@ Proposed Rule Change Related to Fees
tiered pricing structure burden sec.gov. Please include File No. SR– for Use on Cboe BYX Exchange, Inc.
competition, but instead, that they CboeBZX–2018–030 on the subject line. May 10, 2018.
enhance competition as they are
Paper Comments Pursuant to Section 19(b)(1) of the
intended to increase the
Securities Exchange Act of 1934 (the
competitiveness of BZX by modifying
pricing incentives in order to attract • Send paper comments in triplicate ‘‘Act’’),1 and Rule 19b–4 thereunder,2
to Secretary, Securities and Exchange notice is hereby given that on May 1,
order flow and incentivize participants
to increase their participation on the Commission, 100 F Street NE, 2018, Cboe BYX Exchange, Inc. (the
Exchange and to reflect a pass through Washington, DC 20549–1090. ‘‘Exchange’’ or ‘‘BYX’’) filed with the
of a pricing increase by NYSE. The Securities and Exchange Commission
All submissions should refer to File No. (‘‘Commission’’) the proposed rule
Exchange notes that it operates in a SR–CboeBZX–2018–030. This file
highly competitive market in which change as described in Items I, II and III
number should be included on the below, which Items have been prepared
market participants can readily direct subject line if email is used. To help the
order flow to competing venues if they by the Exchange. The Exchange has
Commission process and review your designated the proposed rule change as
deem fee structures to be unreasonable comments more efficiently, please use
or excessive. The proposed changes are one establishing or changing a member
only one method. The Commission will due, fee, or other charge imposed by the
generally intended to enhance the post all comments on the Commission’s
rebates for liquidity added to the Exchange under Section 19(b)(3)(A)(ii)
internet website (http://www.sec.gov/ of the Act 3 and Rule 19b–4(f)(2)
Exchange, which is intended to draw rules/sro.shtml). Copies of the
additional liquidity to the Exchange. thereunder,4 which renders the
submission, all subsequent proposed rule change effective upon
The Exchange does not believe the amendments, all written statements
proposed amendments would burden filing with the Commission. The
with respect to the proposed rule Commission is publishing this notice to
intramarket competition as they would change that are filed with the
be available to all Members uniformly. solicit comments on the proposed rule
Commission, and all written change from interested persons.
(C) Self-Regulatory Organization’s communications relating to the
Statement on Comments on the proposed rule change between the I. Self-Regulatory Organization’s
Proposed Rule Change Received From Commission and any person, other than Statement of the Terms of Substance of
Members, Participants or Others those that may be withheld from the the Proposed Rule Change
The Exchange has not solicited, and public in accordance with the The Exchange filed a proposal to
does not intend to solicit, comments on provisions of 5 U.S.C. 552, will be amend the fee schedule applicable to
this proposed rule change. The available for website viewing and Members 5 and non-Members of the
Exchange has not received any printing in the Commission’s Public Exchange pursuant to BYX Rules 15.1(a)
unsolicited written comments from Reference Room, 100 F Street NE, and (c).
Members or other interested parties. Washington, DC 20549, on official The text of the proposed rule change
business days between the hours of is available at the Exchange’s website at
III. Date of Effectiveness of the 10:00 a.m. and 3:00 p.m. Copies of such www.markets.cboe.com, at the principal
Proposed Rule Change and Timing for filing will also be available for office of the Exchange, and at the
Commission Action inspection and copying at the principal Commission’s Public Reference Room.
The foregoing rule change has become office of the Exchange. All comments
received will be posted without change. II. Self-Regulatory Organization’s
effective pursuant to Section 19(b)(3)(A) Statement of the Purpose of, and
of the Act 17 and paragraph (f) of Rule Persons submitting comments are
cautioned that we do not redact or edit Statutory Basis for, the Proposed Rule
19b–4 thereunder.18 At any time within Change
60 days of the filing of the proposed rule personal identifying information from
change, the Commission summarily may comment submissions. You should In its filing with the Commission, the
temporarily suspend such rule change if submit only information that you wish Exchange included statements
it appears to the Commission that such to make available publicly. All concerning the purpose of and basis for
action is necessary or appropriate in the submissions should refer to File No. the proposed rule change and discussed
public interest, for the protection of SR–CboeBZX–2018–030 and should be any comments it received on the
investors, or otherwise in furtherance of submitted on or before June 6, 2018. proposed rule change. The text of these
the purposes of the Act. statements may be examined at the
For the Commission, by the Division of
Trading and Markets, pursuant to delegated places specified in Item IV below. The
IV. Solicitation of Comments
sradovich on DSK3GMQ082PROD with NOTICES

authority.19
1 15 U.S.C. 78s(b)(1).
Interested persons are invited to Eduardo A. Aleman, 2 17 CFR 240.19b–4.
submit written data, views and
Assistant Secretary. 3 15 U.S.C. 78s(b)(3)(A)(ii).
arguments concerning the foregoing, 4 17 CFR 240.19b–4(f)(2).
[FR Doc. 2018–10380 Filed 5–15–18; 8:45 am]
including whether the proposal is 5 The term ‘‘Member’’ is defined as ‘‘any
BILLING CODE 8011–01–P
registered broker or dealer that has been admitted
17 15 U.S.C. 78s(b)(3)(A). to membership in the Exchange.’’ See Exchange
18 17 CFR 240.19b–4(f). 19 17 CFR 200.30–3(a)(12). Rule 1.5(n).

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Document Created: 2018-11-02 09:13:52
Document Modified: 2018-11-02 09:13:52

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 22730