83_FR_23611 83 FR 23513 - Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 2.12 To Add References to Cboe Options and C2

83 FR 23513 - Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 2.12 To Add References to Cboe Options and C2

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 98 (May 21, 2018)

Page Range23513-23515
FR Document2018-10712

Federal Register, Volume 83 Issue 98 (Monday, May 21, 2018) 
[Federal Register Volume 83, Number 98 (Monday, May 21, 2018)]
[Notices]
[Pages 23513-23515]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-10712]



[[Page 23513]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83247; File No. SR-CboeBZX-2018-035]


Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
Rule 2.12 To Add References to Cboe Options and C2

May 15, 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 14, 2018, Cboe BZX Exchange, Inc. (``BZX'' or the 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been prepared by the Exchange. The Exchange 
has designated this proposal as a ``non-controversial'' proposed rule 
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it 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).
    \4\ 17 CFR 240.19b-4(f)(6)(iii).
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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 Rule 2.12 to add references 
to Cboe Exchange, Inc. (``Cboe Options'') and Cboe C2 Exchange, Inc. 
(``C2''). The Exchange does not propose to amend the requirements of 
this rule.
(additions are italicized; deletions are [bracketed])
* * * * *

Cboe BZX Exchange, Inc.

Rules

* * * * *

Rule 2.12. Cboe Trading, Inc. as Inbound Router

    (a) For so long as the Exchange is affiliated with Cboe Exchange, 
Inc., Cboe C2 Exchange, Inc., Cboe BYX Exchange, Inc., Cboe EDGA 
Exchange, Inc. or Cboe EDGX Exchange Inc., (each, a ``Cboe [Bats 
]Exchange''), and Cboe Trading, Inc. in its capacity as a facility of 
each Cboe [Bats ]Exchange is utilized for the routing of orders from 
each Cboe [Bats ]Exchange to the Exchange, (such function of Cboe 
Trading, Inc. is referred to as the ``Inbound Router''), the Exchange 
undertakes as follows:
    (1)-(4) No change.
    (b) Provided the above conditions are complied with, and provided 
further that Cboe Trading, Inc. operates as an outbound router on 
behalf of each Cboe [Bats ]Exchange on the same terms and conditions as 
it does for the Exchange, and in accordance with the Rules of each Cboe 
[Bats ]Exchange, Cboe Trading, Inc. may provide inbound routing 
services to the Exchange from each Cboe [Bats ]Exchange.
* * * * *
    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.

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

1. Purpose
    In December 2016, the Exchange and its affiliates \5\ received 
approval to effect a merger (the ``Merger'') of the Exchange's parent 
company, Bats Global Markets, Inc. with CBOE Holdings, Inc. (now known 
as Cboe Global Markets, Inc.), the parent company of Cboe Options and 
C2.\6\ Hereinafter, the Exchange, BYX, EDGA, EDGX, Cboe Options, and C2 
will be collectively referred to as the ``Cboe Affiliated Exchanges.''
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    \5\ As of December 2016, the Exchange's affiliates included Cboe 
BYX Exchange, Inc. (formerly Bats BYX Exchange. Inc.) (``BYX''), 
Cboe EDGA Exchange, Inc. (formerly Bats EDGA Exchange, Inc.) 
(``EDGA''), and Cboe EDGX Exchange, Inc. (formerly Bats EDGX 
Exchange, Inc.) (``EDGX'').
    \6\ See Securities Exchange Act Release No. 79585 (December 16, 
2016), 81 FR 93988 (December 22, 2016) (SR-BatsBZX-2016-68; SR-
BatsBYX-2016-29; SR-BatsEDGA-2016-24; SR-BatsEDGX-2016-60).
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    In connection with the Merger, the Cboe Affiliated Exchanges are 
working to migrate Cboe Options and C2 onto the Bats technology 
platform, and align certain system functionality, retaining only 
intended differences between the Cboe Affiliated Exchanges.\7\ The 
Exchange proposes to amend Rule 2.12 to reflect that Cboe Options and 
C2 are affiliated with the Exchange and that upon completion of the 
migration, Cboe Trading, Inc. (``Cboe Trading'') may also act as the 
inbound router for routing orders from Cboe Options and C2 to the 
Exchange. The Exchange also proposes to amend Rule 2.12 to update the 
defined term ``Cboe Bats Exchange'' to ``Cboe Exchange'' to reflect 
that all Cboe Affiliated Exchanges, not just BYX, EDGA, and EDGX, are 
included in the definition. The Exchange previously implemented 
limitations and conditions on Cboe Trading's affiliation with the 
Exchange in order to permit the Exchange to accept inbound orders that 
Cboe Trading routes in its capacity as a facility of the Exchange, BYX, 
EDGA, and EDGX.\8\ Those same conditions and limitations will apply to 
any inbound orders that Cboe Trading routes in its capacity as a 
facility of Cboe Options and C2.
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    \7\ It is anticipated that the C2 migration onto the Bats 
technology platform will be completed on May 14, 2018, and the Cboe 
Options migration onto the Bats technology platform will be 
completed on October 7, 2019.
    \8\ See Securities Exchange Act Release No. 62901 (September 13, 
2010), 75 FR 57097 (September 17, 2010) (SR-BATS-2010-024) (notice 
of filing and immediate effectiveness of proposed rule change to 
adopt BATS Exchange, Inc. (currently named Cboe BZX Exchange, Inc.) 
Rule 2.12).
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    Cboe Trading currently provides Members of the Exchange, BYX, EDGA, 
and EDGX with optional routing services to other market centers. In 
certain circumstances, Cboe Trading provides inbound routing from BYX, 
EDGA, or EDGX to the Exchange. Exchange Rule 2.12 governs this inbound 
routing of orders by Cboe Trading to the Exchange in Cboe Trading's 
capacity as a facility of the Exchange. The Exchange proposes to amend 
Rule 2.12 to reflect that Cboe Options and C2 are affiliated with the 
Exchange and that Cboe Trading may also act as the inbound router for 
routing orders from Cboe Options and C2 to the Exchange upon migration 
of Cboe Options and C2 onto the Bats technology platform. The Exchange 
does not propose to amend the requirements of this rule. Therefore, the 
conditions and limitations set forth in Exchange Rule 2.12(a) will 
remain the same. The Exchange believes that Rule 2.12 will continue to 
adequately manage the potential for conflicts of interest that could 
arise from Cboe Trading routing orders to the Exchange.

[[Page 23514]]

Implementation Date
    With respect to C2, the Exchange intends to implement the proposed 
rule change on or about May 14, 2018, which is the anticipated date 
upon which the migration of C2 onto the Bats technology platform will 
be complete. With respect to Cboe Options, the Exchange intends to 
implement the proposed rule change on or about October 7, 2019, which 
is the anticipated date upon which the migration of Cboe Options onto 
the Bats technology platform will be complete.
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.\9\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \10\ 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 the 
Section 6(b)(5) \11\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
    \11\ Id.
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    The Exchange does not propose to amend the requirements of the rule 
and the proposed rule change is intended only to reflect that Cboe 
Options and C2 are affiliated with the Exchange and that Cboe Trading 
may also route inbound orders from Cboe Options and C2 to the Exchange 
upon migration of Cboe Options and C2 onto the Bats technology 
platform. A consistent technology offering through the use of Cboe 
Trading by each of the Cboe Affiliated Exchanges will, in turn, 
simplify the technology implementation, changes, and maintenance by 
users of the Exchange that are also participants on BYX, EDGA, EDGX, 
Cboe Options, and C2. As such, the proposed rule change would foster 
cooperation and coordination with persons engaged in facilitating 
transactions in securities and would remove impediments to and perfect 
the mechanism of a free and open market and a national market system.

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 that is not necessary or appropriate 
in furtherance of the purposes of the Act. The Exchange reiterates that 
the proposed rule change is being proposed in the context of the 
technology integration of the Cboe Affiliated Exchanges. Thus, the 
Exchange believes this proposed rule change is necessary to permit fair 
competition among national securities exchanges. In addition, the 
Exchange believes the proposed rule change will benefit Exchange 
participants in that it is one of several changes necessary to achieve 
a consistent technology offering by the Cboe Affiliated Exchanges.

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 written comments from members or other interested parties.

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

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \12\ and Rule 19b-
4(f)(6) thereunder.\13\
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    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change, along 
with a brief description and text of the proposed rule change, at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative for 30 days after the date of its filing. However, 
Rule 19b-4(f)(6)(iii) \14\ permits the Commission to designate a 
shorter time if such action is consistent with the protection of 
investors and the public interest. The Exchange has requested that the 
Commission waive the 30-day operative delay so that the proposed rule 
change will become operative on filing. Waiver of the operative delay 
would allow the Exchange to implement the proposed rule change on May 
14, 2018, which is same day as the anticipated date for the migration 
of C2 to the Bats technology platform. The Exchange stated that the 
proposed rule change promotes the protection of investors and the 
public interest because it would minimize the amount of disruption as 
C2 (and eventually Cboe Options) migrates to the Bats technology 
platform. Therefore, the Commission believes that waiver of the 30-day 
operative delay is consistent with the protection of investors and the 
public interest. Accordingly, the Commission hereby waives the 
operative delay and designates the proposed rule change operative upon 
filing.\15\
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    \14\ 17 CFR 240.19b-4(f)(6)(iii).
    \15\ For purposes only of waiving the 30-day operative delay, 
the Commission also has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of such 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. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule change should be approved or 
disapproved.

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-2018-035 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-CboeBZX-2018-035. This

[[Page 23515]]

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-CboeBZX-2018-035, and should be 
submitted on or before June 11, 2018.
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    \16\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-10712 Filed 5-18-18; 8:45 am]
 BILLING CODE 8011-01-P

Federal Register / Vol. 83, No. 98 / Monday, May 21, 2018 / Notices 23513 SECURITIES AND EXCHANGE function of Cboe Trading, Inc. is to migrate Cboe Options and C2 onto the COMMISSION referred to as the ‘‘Inbound Router’’), the Bats technology platform, and align Exchange undertakes as follows: certain system functionality, retaining [Release No. 34–83247; File No. SR– (1)–(4) No change. only intended differences between the CboeBZX–2018–035] (b) Provided the above conditions are Cboe Affiliated Exchanges.7 The Self-Regulatory Organizations; Cboe complied with, and provided further Exchange proposes to amend Rule 2.12 BZX Exchange, Inc.; Notice of Filing that Cboe Trading, Inc. operates as an to reflect that Cboe Options and C2 are and Immediate Effectiveness of a outbound router on behalf of each Cboe affiliated with the Exchange and that Proposed Rule Change To Amend Rule [Bats ]Exchange on the same terms and upon completion of the migration, Cboe 2.12 To Add References to Cboe conditions as it does for the Exchange, Trading, Inc. (‘‘Cboe Trading’’) may also Options and C2 and in accordance with the Rules of act as the inbound router for routing each Cboe [Bats ]Exchange, Cboe orders from Cboe Options and C2 to the May 15, 2018. Trading, Inc. may provide inbound Exchange. The Exchange also proposes Pursuant to Section 19(b)(1) of the routing services to the Exchange from to amend Rule 2.12 to update the Securities Exchange Act of 1934 (the each Cboe [Bats ]Exchange. defined term ‘‘Cboe Bats Exchange’’ to ‘‘Act’’),1 and Rule 19b–4 thereunder,2 * * * * * ‘‘Cboe Exchange’’ to reflect that all Cboe notice is hereby given that on May 14, The text of the proposed rule change Affiliated Exchanges, not just BYX, 2018, Cboe BZX Exchange, Inc. (‘‘BZX’’ is available at the Exchange’s website at EDGA, and EDGX, are included in the or the ‘‘Exchange’’) filed with the www.markets.cboe.com, at the principal definition. The Exchange previously Securities and Exchange Commission office of the Exchange, and at the implemented limitations and conditions (‘‘Commission’’) the proposed rule Commission’s Public Reference Room. on Cboe Trading’s affiliation with the change as described in Items I and II Exchange in order to permit the below, which Items have been prepared II. Self-Regulatory Organization’s Exchange to accept inbound orders that by the Exchange. The Exchange has Statement of the Purpose of, and Cboe Trading routes in its capacity as a designated this proposal as a ‘‘non- Statutory Basis for, the Proposed Rule facility of the Exchange, BYX, EDGA, controversial’’ proposed rule change Change and EDGX.8 Those same conditions and pursuant to Section 19(b)(3)(A) of the In its filing with the Commission, the limitations will apply to any inbound Act 3 and Rule 19b–4(f)(6)(iii) Exchange included statements orders that Cboe Trading routes in its thereunder,4 which renders it effective concerning the purpose of and basis for capacity as a facility of Cboe Options upon filing with the Commission. The the proposed rule change and discussed and C2. Commission is publishing this notice to any comments it received on the Cboe Trading currently provides solicit comments on the proposed rule proposed rule change. The text of these Members of the Exchange, BYX, EDGA, change from interested persons. statements may be examined at the and EDGX with optional routing places specified in Item IV below. The services to other market centers. In I. Self-Regulatory Organization’s certain circumstances, Cboe Trading Statement of the Terms of Substance of Exchange has prepared summaries, set forth in Sections A, B, and C below, of provides inbound routing from BYX, the Proposed Rule Change EDGA, or EDGX to the Exchange. the most significant parts of such The Exchange filed a proposal to statements. Exchange Rule 2.12 governs this amend Rule 2.12 to add references to inbound routing of orders by Cboe Cboe Exchange, Inc. (‘‘Cboe Options’’) A. Self-Regulatory Organization’s Trading to the Exchange in Cboe and Cboe C2 Exchange, Inc. (‘‘C2’’). The Statement of the Purpose of, and Trading’s capacity as a facility of the Exchange does not propose to amend Statutory Basis for, the Proposed Rule Exchange. The Exchange proposes to the requirements of this rule. Change amend Rule 2.12 to reflect that Cboe 1. Purpose Options and C2 are affiliated with the (additions are italicized; deletions are Exchange and that Cboe Trading may [bracketed]) In December 2016, the Exchange and also act as the inbound router for * * * * * its affiliates 5 received approval to effect routing orders from Cboe Options and a merger (the ‘‘Merger’’) of the C2 to the Exchange upon migration of Cboe BZX Exchange, Inc. Exchange’s parent company, Bats Global Cboe Options and C2 onto the Bats Rules Markets, Inc. with CBOE Holdings, Inc. technology platform. The Exchange does (now known as Cboe Global Markets, not propose to amend the requirements * * * * * Inc.), the parent company of Cboe of this rule. Therefore, the conditions Rule 2.12. Cboe Trading, Inc. as Options and C2.6 Hereinafter, the and limitations set forth in Exchange Inbound Router Exchange, BYX, EDGA, EDGX, Cboe Rule 2.12(a) will remain the same. The (a) For so long as the Exchange is Options, and C2 will be collectively Exchange believes that Rule 2.12 will affiliated with Cboe Exchange, Inc., referred to as the ‘‘Cboe Affiliated continue to adequately manage the Cboe C2 Exchange, Inc., Cboe BYX Exchanges.’’ potential for conflicts of interest that Exchange, Inc., Cboe EDGA Exchange, In connection with the Merger, the could arise from Cboe Trading routing Inc. or Cboe EDGX Exchange Inc., (each, Cboe Affiliated Exchanges are working orders to the Exchange. a ‘‘Cboe [Bats ]Exchange’’), and Cboe 5 As of December 2016, the Exchange’s affiliates 7 It is anticipated that the C2 migration onto the Trading, Inc. in its capacity as a facility included Cboe BYX Exchange, Inc. (formerly Bats Bats technology platform will be completed on May sradovich on DSK3GMQ082PROD with NOTICES of each Cboe [Bats ]Exchange is utilized BYX Exchange. Inc.) (‘‘BYX’’), Cboe EDGA 14, 2018, and the Cboe Options migration onto the for the routing of orders from each Cboe Exchange, Inc. (formerly Bats EDGA Exchange, Inc.) Bats technology platform will be completed on [Bats ]Exchange to the Exchange, (such (‘‘EDGA’’), and Cboe EDGX Exchange, Inc. (formerly October 7, 2019. Bats EDGX Exchange, Inc.) (‘‘EDGX’’). 8 See Securities Exchange Act Release No. 62901 6 See Securities Exchange Act Release No. 79585 1 15 (September 13, 2010), 75 FR 57097 (September 17, U.S.C. 78s(b)(1). (December 16, 2016), 81 FR 93988 (December 22, 2010) (SR–BATS–2010–024) (notice of filing and 2 17 CFR 240.19b–4. 2016) (SR–BatsBZX–2016–68; SR–BatsBYX–2016– immediate effectiveness of proposed rule change to 3 15 U.S.C. 78s(b)(3)(A). 29; SR–BatsEDGA–2016–24; SR–BatsEDGX–2016– adopt BATS Exchange, Inc. (currently named Cboe 4 17 CFR 240.19b–4(f)(6)(iii). 60). BZX Exchange, Inc.) Rule 2.12). 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23514 Federal Register / Vol. 83, No. 98 / Monday, May 21, 2018 / Notices Implementation Date with persons engaged in facilitating investors and the public interest. The With respect to C2, the Exchange transactions in securities and would Exchange has requested that the intends to implement the proposed rule remove impediments to and perfect the Commission waive the 30-day operative change on or about May 14, 2018, which mechanism of a free and open market delay so that the proposed rule change is the anticipated date upon which the and a national market system. will become operative on filing. Waiver migration of C2 onto the Bats of the operative delay would allow the B. Self-Regulatory Organization’s technology platform will be complete. Exchange to implement the proposed Statement on Burden on Competition With respect to Cboe Options, the rule change on May 14, 2018, which is The Exchange does not believe that same day as the anticipated date for the Exchange intends to implement the the proposed rule change will impose migration of C2 to the Bats technology proposed rule change on or about any burden on competition that is not platform. The Exchange stated that the October 7, 2019, which is the necessary or appropriate in furtherance proposed rule change promotes the anticipated date upon which the of the purposes of the Act. The protection of investors and the public migration of Cboe Options onto the Bats Exchange reiterates that the proposed interest because it would minimize the technology platform will be complete. rule change is being proposed in the amount of disruption as C2 (and 2. Statutory Basis context of the technology integration of eventually Cboe Options) migrates to The Exchange believes the proposed the Cboe Affiliated Exchanges. Thus, the the Bats technology platform. Therefore, rule change is consistent with the Exchange believes this proposed rule the Commission believes that waiver of Securities Exchange Act of 1934 (the change is necessary to permit fair the 30-day operative delay is consistent ‘‘Act’’) and the rules and regulations competition among national securities with the protection of investors and the thereunder applicable to the Exchange exchanges. In addition, the Exchange public interest. Accordingly, the and, in particular, the requirements of believes the proposed rule change will Commission hereby waives the Section 6(b) of the Act.9 Specifically, benefit Exchange participants in that it operative delay and designates the the Exchange believes the proposed rule is one of several changes necessary to proposed rule change operative upon change is consistent with the Section achieve a consistent technology offering filing.15 6(b)(5) 10 requirements that the rules of by the Cboe Affiliated Exchanges. At any time within 60 days of the an exchange be designed to prevent C. Self-Regulatory Organization’s filing of such proposed rule change, the fraudulent and manipulative acts and Statement on Comments on the Commission summarily may practices, to promote just and equitable Proposed Rule Change Received From temporarily suspend such rule change if principles of trade, to foster cooperation Members, Participants, or Others it appears to the Commission that such and coordination with persons engaged action is necessary or appropriate in the The Exchange has not solicited, and public interest, for the protection of in regulating, clearing, settling, does not intend to solicit, comments on investors, or otherwise in furtherance of processing information with respect to, this proposed rule change. The the purposes of the Act. If the and facilitating transactions in Exchange has not received any written Commission takes such action, the securities, to remove impediments to comments from members or other Commission shall institute proceedings and perfect the mechanism of a free and interested parties. to determine whether the proposed rule open market and a national market system, and, in general, to protect III. Date of Effectiveness of the change should be approved or investors and the public interest. Proposed Rule Change and Timing for disapproved. Additionally, the Exchange believes the Commission Action IV. Solicitation of Comments proposed rule change is consistent with Because the foregoing proposed rule the Section 6(b)(5) 11 requirement that Interested persons are invited to change does not: (i) Significantly affect submit written data, views, and the rules of an exchange not be designed the protection of investors or the public to permit unfair discrimination between arguments concerning the foregoing, interest; (ii) impose any significant including whether the proposed rule customers, issuers, brokers, or dealers. burden on competition; and (iii) become The Exchange does not propose to change is consistent with the Act. operative for 30 days from the date on Comments may be submitted by any of amend the requirements of the rule and which it was filed, or such shorter time the following methods: the proposed rule change is intended as the Commission may designate, it has only to reflect that Cboe Options and C2 Electronic Comments become effective pursuant to Section are affiliated with the Exchange and that Cboe Trading may also route inbound 19(b)(3)(A) of the Act 12 and Rule 19b– • Use the Commission’s internet orders from Cboe Options and C2 to the 4(f)(6) thereunder.13 comment form (http://www.sec.gov/ A proposed rule change filed under rules/sro.shtml); or Exchange upon migration of Cboe Options and C2 onto the Bats Rule 19b–4(f)(6) normally does not • Send an email to rule-comments@ become operative for 30 days after the sec.gov. Please include File Number SR– technology platform. A consistent date of its filing. However, Rule 19b– CboeBZX–2018–035 on the subject line. technology offering through the use of 4(f)(6)(iii) 14 permits the Commission to Cboe Trading by each of the Cboe Paper Comments designate a shorter time if such action Affiliated Exchanges will, in turn, • Send paper comments in triplicate is consistent with the protection of simplify the technology to Secretary, Securities and Exchange implementation, changes, and 12 15 Commission, 100 F Street NE, U.S.C. 78s(b)(3)(A). maintenance by users of the Exchange 13 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– Washington, DC 20549–1090. sradovich on DSK3GMQ082PROD with NOTICES that are also participants on BYX, 4(f)(6)(iii) requires a self-regulatory organization to EDGA, EDGX, Cboe Options, and C2. As give the Commission written notice of its intent to All submissions should refer to File such, the proposed rule change would file the proposed rule change, along with a brief Number SR–CboeBZX–2018–035. This description and text of the proposed rule change, foster cooperation and coordination at least five business days prior to the date of filing 15 For purposes only of waiving the 30-day of the proposed rule change, or such shorter time operative delay, the Commission also has 9 15 U.S.C. 78f(b). as designated by the Commission. The Exchange considered the proposed rule’s impact on 10 15 U.S.C. 78f(b)(5). has satisfied this requirement. efficiency, competition, and capital formation. See 11 Id. 14 17 CFR 240.19b–4(f)(6)(iii). 15 U.S.C. 78c(f). VerDate Sep<11>2014 18:20 May 18, 2018 Jkt 244001 PO 00000 Frm 00101 Fmt 4703 Sfmt 4703 E:\FR\FM\21MYN1.SGM 21MYN1

Federal Register / Vol. 83, No. 98 / Monday, May 21, 2018 / Notices 23515 file number should be included on the ‘‘Exchange’’ or ‘‘EDGX’’) filed with the The Exchange first proposes to subject line if email is used. To help the Securities and Exchange Commission eliminate Mega Tier 2. Mega Tier 2 Commission process and review your (‘‘Commission’’) the proposed rule currently provides Members a rebate of comments more efficiently, please use change as described in Items I, II and III $0.0032 per share where a Member (i) only one method. The Commission will below, which Items have been prepared adds or routes a combined ADV 6 greater post all comments on the Commission’s by the Exchange. The Exchange has than or equal to 4,000,000 shares prior internet website (http://www.sec.gov/ designated the proposed rule change as to 9:30 a.m. or after 4:00 p.m. and (ii) rules/sro.shtml). Copies of the one establishing or changing a member adds an ADV greater than or equal to submission, all subsequent due, fee, or other charge imposed by the 0.65% of the TCV,7 including during amendments, all written statements Exchange under Section 19(b)(3)(A)(ii) both market hours and pre and post- with respect to the proposed rule of the Act 3 and Rule 19b–4(f)(2) trading hours. The Exchange no longer change that are filed with the thereunder,4 which renders the wishes to maintain this tier level. As Commission, and all written proposed rule change effective upon such, the Exchange proposes to communications relating to the filing with the Commission. The eliminate Mega Tier 2 and rename Mega proposed rule change between the Commission is publishing this notice to Tier 3 accordingly. Commission and any person, other than solicit comments on the proposed rule The Exchange next proposes to those that may be withheld from the change from interested persons. eliminate the Step-Up Tier, which public in accordance with the provides a $0.0032 per share rebate provisions of 5 U.S.C. 552, will be I. Self-Regulatory Organization’s where a Member (i) adds an ADV greater available for website viewing and Statement of the Terms of Substance of than or equal to 0.40% of the TCV and printing in the Commission’s Public the Proposed Rule Change (ii) has a Step-Up Add TCV from Reference Room, 100 F Street NE, The Exchange filed a proposal to January 2017 greater than or equal to Washington, DC 20549 on official amend the fee schedule applicable to 0.10%. The Exchange no longer wishes business days between the hours of Members 5 and non-Members of the to maintain this tier level and therefore 10:00 a.m. and 3:00 p.m. Copies of the Exchange pursuant to EDGX Rules proposes to delete it. filing also will be available for 15.1(a) and (c). The Exchange also proposes to modify inspection and copying at the principal The text of the proposed rule change Tape B Tier 1. Currently, for orders that office of the Exchange. All comments is available at the Exchange’s website at yield fee codes B and 4, the Exchange received will be posted without change. www.markets.cboe.com, at the principal provides a rebate of $0.0020 per share Persons submitting comments are office of the Exchange, and at the for orders that add liquidity for cautioned that we do not redact or edit Commission’s Public Reference Room. securities at or above $1.00, and a rebate personal identifying information from of $0.00003 per share for orders that add comment submissions. You should II. Self-Regulatory Organization’s Statement of the Purpose of, and liquidity for securities below $1.00. submit only information that you wish Pursuant to Tape B Volume Tier 1, a to make available publicly. All Statutory Basis for, the Proposed Rule Change Member will receive an enhanced rebate submissions should refer to File of $0.0027 where a Member adds an Number SR–CboeBZX–2018–035, and In its filing with the Commission, the ADV greater than or equal to 0.02% of should be submitted on or before June Exchange included statements the TCV in Tape B Securities. The 11, 2018. concerning the purpose of and basis for Exchange proposes to increase the ADV For the Commission, by the Division of the proposed rule change and discussed requirement to greater than or equal to Trading and Markets, pursuant to delegated any comments it received on the 0.03% of the TCV in Tape B securities. authority.16 proposed rule change. The text of these The Exchange believes the proposed Eduardo A. Aleman, statements may be examined at the change to the Tape B Volume Tier 1 Assistant Secretary. places specified in Item IV below. The criteria will encourage the entry of [FR Doc. 2018–10712 Filed 5–18–18; 8:45 am] Exchange has prepared summaries, set additional orders to the Exchange. The BILLING CODE 8011–01–P forth in Sections A, B, and C below, of Exchange also no longer desires to the most significant parts of such maintain Tape B Volume Tier 2 and statements. therefore proposes to delete it. SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s Lastly, the Exchange proposes to COMMISSION Statement of the Purpose of, and increase the fee for orders yielding fee [Release No. 34–83240; File No. SR– Statutory Basis for, the Proposed Rule code D, which results from an order CboeEDGX–2018–014] Change routed to the New York Stock Exchange (‘‘NYSE’’) or routed using the RDOT Self-Regulatory Organizations; Cboe 1. Purpose routing strategy. Particularly, NYSE EDGX Exchange, Inc.; Notice of Filing The Exchange proposes to amend its recently implemented certain pricing and Immediate Effectiveness of a fee schedule applicable to its equities changes related to Tapes B and C Proposed Rule Change Related to Fees trading platform (‘‘EDGX Equities’’) to securities, including adopting a per tape for Use on Cboe EDGX Exchange, Inc. (i) eliminate Mega Tier 2, (ii) eliminate fee of $0.00280 per share to remove May 15, 2018. the Step-Up Tier, (iii) modify Tape B liquidity from the Exchange for member Pursuant to Section 19(b)(1) of the Tier 1 and eliminate Tape B Tier 2 and 6 ADV means average daily volume calculated as (iv) increase the fee for orders that yield sradovich on DSK3GMQ082PROD with NOTICES Securities Exchange Act of 1934 (the the number of shares added to, removed from, or ‘‘Act’’),1 and Rule 19b–4 thereunder,2 fee code D, effective May 1, 2018. routed by, the Exchange, or any combination or notice is hereby given that on May 1, subset thereof, per day. ADV is calculated on a 3 15 U.S.C. 78s(b)(3)(A)(ii). monthly basis. See Exchange’s fee schedule. 2018, Cboe EDGX Exchange, Inc. (the 4 17 CFR 240.19b–4(f)(2). 7 TCV means total consolidated volume 5 The term ‘‘Member’’ is defined as ‘‘any calculated as the volume reported by all exchanges 16 17 CFR 200.30–3(a)(12). registered broker or dealer that has been admitted and trade reporting facilities to a consolidated 1 15 U.S.C. 78s(b)(1). to membership in the Exchange.’’ See Exchange transaction reporting plan for the month for which 2 17 CFR 240.19b–4. Rule 1.5(n). the fees apply. See Exchange’s fee schedule. VerDate Sep<11>2014 18:20 May 18, 2018 Jkt 244001 PO 00000 Frm 00102 Fmt 4703 Sfmt 4703 E:\FR\FM\21MYN1.SGM 21MYN1


Document Created: 2018-11-02 11:07:36
Document Modified: 2018-11-02 11:07:36
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation83 FR 23513 
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