83_FR_23849 83 FR 23750 - Self-Regulatory Organizations; Cboe EDGA 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 23750 - Self-Regulatory Organizations; Cboe EDGA 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 99 (May 22, 2018)

Page Range23750-23752
FR Document2018-10828

Federal Register, Volume 83 Issue 99 (Tuesday, May 22, 2018)
[Federal Register Volume 83, Number 99 (Tuesday, May 22, 2018)]
[Notices]
[Pages 23750-23752]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-10828]


=======================================================================
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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83255; File No. SR-CboeEDGA-2018-008]


Self-Regulatory Organizations; Cboe EDGA 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 16, 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 EDGA Exchange, Inc. (``EDGA'' 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 EDGA 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 EDGX Exchange, Inc., Cboe BYX 
Exchange, Inc., or Cboe BZX Exchange, Inc. (each, a ``Cboe Exchange''), 
and Cboe Trading, Inc. (``Cboe Trading') in its capacity as a facility 
of each Cboe Exchange is utilized for the routing of orders from a Cboe 
Exchange to the Exchange, the Exchange undertakes as follows:
    (1)-(4) No change.
    (b) No change.
* * * * *
    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

[[Page 23751]]

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, BZX, BYX, 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 
BZX Exchange, Inc. (formerly Bats BZX Exchange, Inc.) (``BZX''), 
Cboe BYX Exchange, Inc. (formerly Bats BYX Exchange. Inc.) 
(``BYX''), 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 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, BZX, BYX, 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.
---------------------------------------------------------------------------

    \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. 61698 (March 12, 
2010), 75 FR 13151 (March 18, 2010) (order approving application of 
EDGA Exchange, Inc. (currently named Cboe EDGA Exchange, Inc.) for 
registration as a national securities exchange).
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    Cboe Trading currently provides Members of the Exchange, BZX, BYX, 
and EDGX with optional routing services to other market centers. In 
certain circumstances, Cboe Trading provides inbound routing from BZX, 
BYX, and 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.
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.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
    \11\ Id.
---------------------------------------------------------------------------

    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 BZX, BYX, 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

    No comments were solicited or received on the proposed rule change.

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\
---------------------------------------------------------------------------

    \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.

---------------------------------------------------------------------------

[[Page 23752]]

    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).
---------------------------------------------------------------------------

    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 rule-comments@sec.gov. Please include 
File Number SR-CboeEDGA-2018-008 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-CboeEDGA-2018-008. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (http://www.sec.gov/rules/sro.shtml). 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for website viewing and printing in 
the Commission's Public Reference Room, 100 F Street NE, Washington, DC 
20549 on official business days between the hours of 10:00 a.m. and 
3:00 p.m. Copies of the filing also will be available for inspection 
and copying at the principal office of the Exchange. All comments 
received will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-CboeEDGA-2018-008, and should be 
submitted on or before June 12, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-10828 Filed 5-21-18; 8:45 am]
 BILLING CODE 8011-01-P



                                              23750                          Federal Register / Vol. 83, No. 99 / Tuesday, May 22, 2018 / Notices

                                              negotiated service agreements. This                     that the Postal Service states concern                solicit comments on the proposed rule
                                              notice informs the public of the filing,                competitive product(s), applicable                    change from interested persons.
                                              invites public comment, and takes other                 statutory and regulatory requirements
                                                                                                                                                            I. Self-Regulatory Organization’s
                                              administrative steps.                                   include 39 U.S.C. 3632, 39 U.S.C. 3633,
                                                                                                                                                            Statement of the Terms of Substance of
                                              DATES: Comments are due: May 24,                        39 U.S.C. 3642, 39 CFR part 3015, and
                                                                                                                                                            the Proposed Rule Change
                                              2018.                                                   39 CFR part 3020, subpart B. Comment
                                                                                                      deadline(s) for each request appear in                  The Exchange filed a proposal to
                                              ADDRESSES: Submit comments
                                                                                                      section II.                                           amend Rule 2.12 to add references to
                                              electronically via the Commission’s                                                                           Cboe Exchange, Inc. (‘‘Cboe Options’’)
                                              Filing Online system at http://                         II. Docketed Proceeding(s)                            and Cboe C2 Exchange, Inc. (‘‘C2’’). The
                                              www.prc.gov. Those who cannot submit                                                                          Exchange does not propose to amend
                                              comments electronically should contact                    1. Docket No(s).: CP2018–220; Filing
                                                                                                      Title: Notice of United States Postal                 the requirements of this rule.
                                              the person identified in the FOR FURTHER
                                              INFORMATION CONTACT section by                          Service of Filing a Functionally                      (additions are italicized; deletions are
                                              telephone for advice on filing                          Equivalent Global Expedited Package                   [bracketed])
                                              alternatives.                                           Services 7 Negotiated Service                         *     *    *      *     *
                                                                                                      Agreement and Application for Non-
                                              FOR FURTHER INFORMATION CONTACT:                        Public Treatment of Material Filed                    Cboe EDGA Exchange, Inc. Rules
                                              David A. Trissell, General Counsel, at                  Under Seal; Filing Acceptance Date:                   *        *      *     *     *
                                              202–789–6820.                                           May 16, 2018; Filing Authority: 39 CFR
                                              SUPPLEMENTARY INFORMATION:                              3015.5; Public Representative: Kenneth                Rule 2.12. Cboe Trading, Inc. as
                                                                                                      R. Moeller; Comments Due: May 24,                     Inbound Router
                                              Table of Contents
                                                                                                      2018.                                                    (a) For so long as the Exchange is
                                              I. Introduction                                                                                               affiliated with Cboe Exchange, Inc.,
                                              II. Docketed Proceeding(s)                                This notice will be published in the
                                                                                                      Federal Register.                                     Cboe C2 Exchange, Inc., Cboe EDGX
                                              I. Introduction                                         Stacy L. Ruble,                                       Exchange, Inc., Cboe BYX Exchange,
                                                 The Commission gives notice that the                 Secretary.
                                                                                                                                                            Inc., or Cboe BZX Exchange, Inc. (each,
                                              Postal Service has filed request(s) for the                                                                   a ‘‘Cboe Exchange’’), and Cboe Trading,
                                                                                                      [FR Doc. 2018–10857 Filed 5–21–18; 8:45 am]
                                              Commission to consider matters related                                                                        Inc. (‘‘Cboe Trading’) in its capacity as
                                                                                                      BILLING CODE 7710–FW–P
                                              to negotiated service agreement(s). The                                                                       a facility of each Cboe Exchange is
                                              requests(s) may propose the addition or                                                                       utilized for the routing of orders from a
                                              removal of a negotiated service                                                                               Cboe Exchange to the Exchange, the
                                              agreement from the market dominant or                                                                         Exchange undertakes as follows:
                                                                                                      SECURITIES AND EXCHANGE
                                              the competitive product list, or the                                                                             (1)–(4) No change.
                                                                                                      COMMISSION                                               (b) No change.
                                              modification of an existing product
                                              currently appearing on the market                                                                             *      *     *    *     *
                                                                                                      [Release No. 34–83255; File No. SR–                      The text of the proposed rule change
                                              dominant or the competitive product                     CboeEDGA–2018–008]
                                              list.                                                                                                         is available at the Exchange’s website at
                                                 Section II identifies the docket                     Self-Regulatory Organizations; Cboe                   www.markets.cboe.com, at the principal
                                              number(s) associated with each Postal                   EDGA Exchange, Inc.; Notice of Filing                 office of the Exchange, and at the
                                              Service request, the title of each Postal               and Immediate Effectiveness of a                      Commission’s Public Reference Room.
                                              Service request, the request’s acceptance               Proposed Rule Change To Amend Rule                    II. Self-Regulatory Organization’s
                                              date, and the authority cited by the                    2.12 To Add References to Cboe                        Statement of the Purpose of, and
                                              Postal Service for each request. For each               Options and C2                                        Statutory Basis for, the Proposed Rule
                                              request, the Commission appoints an                                                                           Change
                                              officer of the Commission to represent                  May 16, 2018.
                                              the interests of the general public in the                 Pursuant to Section 19(b)(1) of the                  In its filing with the Commission, the
                                              proceeding, pursuant to 39 U.S.C. 505                   Securities Exchange Act of 1934 (the                  Exchange included statements
                                              (Public Representative). Section II also                ‘‘Act’’),1 and Rule 19b–4 thereunder,2                concerning the purpose of and basis for
                                              establishes comment deadline(s)                         notice is hereby given that on May 14,                the proposed rule change and discussed
                                              pertaining to each request.                             2018, Cboe EDGA Exchange, Inc.                        any comments it received on the
                                                 The public portions of the Postal                    (‘‘EDGA’’ or the ‘‘Exchange’’) filed with             proposed rule change. The text of these
                                              Service’s request(s) can be accessed via                the Securities and Exchange                           statements may be examined at the
                                              the Commission’s website (http://                       Commission (‘‘Commission’’) the                       places specified in Item IV below. The
                                              www.prc.gov). Non-public portions of                    proposed rule change as described in                  Exchange has prepared summaries, set
                                              the Postal Service’s request(s), if any,                Items I and II below, which Items have                forth in Sections A, B, and C below, of
                                              can be accessed through compliance                      been prepared by the Exchange. The                    the most significant parts of such
                                              with the requirements of 39 CFR                         Exchange has designated this proposal                 statements.
                                              3007.40.                                                as a ‘‘non-controversial’’ proposed rule              A. Self-Regulatory Organization’s
                                                 The Commission invites comments on                   change pursuant to Section 19(b)(3)(A)                Statement of the Purpose of, and
                                              whether the Postal Service’s request(s)                 of the Act 3 and Rule 19b–4(f)(6)(iii)                Statutory Basis for, the Proposed Rule
                                              in the captioned docket(s) are consistent               thereunder,4 which renders it effective
amozie on DSK3GDR082PROD with NOTICES1




                                                                                                                                                            Change
                                              with the policies of title 39. For                      upon filing with the Commission. The
                                              request(s) that the Postal Service states               Commission is publishing this notice to               1. Purpose
                                              concern market dominant product(s),                                                                              In December 2016, the Exchange and
                                              applicable statutory and regulatory                       1 15 U.S.C. 78s(b)(1).                              its affiliates 5 received approval to effect
                                              requirements include 39 U.S.C. 3622, 39                   2 17 CFR 240.19b–4.

                                              U.S.C. 3642, 39 CFR part 3010, and 39                     3 15 U.S.C. 78s(b)(3)(A).                             5 As of December 2016, the Exchange’s affiliates

                                              CFR part 3020, subpart B. For request(s)                  4 17 CFR 240.19b–4(f)(6)(iii).                      included Cboe BZX Exchange, Inc. (formerly Bats



                                         VerDate Sep<11>2014   16:47 May 21, 2018   Jkt 241001   PO 00000   Frm 00126   Fmt 4703   Sfmt 4703   E:\FR\FM\22MYN1.SGM       22MYN1


                                                                              Federal Register / Vol. 83, No. 99 / Tuesday, May 22, 2018 / Notices                                                        23751

                                              a merger (the ‘‘Merger’’) of the                        routing orders from Cboe Options and                  orders from Cboe Options and C2 to the
                                              Exchange’s parent company, Bats Global                  C2 to the Exchange upon migration of                  Exchange upon migration of Cboe
                                              Markets, Inc. with CBOE Holdings, Inc.                  Cboe Options and C2 onto the Bats                     Options and C2 onto the Bats
                                              (now known as Cboe Global Markets,                      technology platform. The Exchange does                technology platform. A consistent
                                              Inc.), the parent company of Cboe                       not propose to amend the requirements                 technology offering through the use of
                                              Options and C2.6 Hereinafter, the                       of this rule. Therefore, the conditions               Cboe Trading by each of the Cboe
                                              Exchange, BZX, BYX, EDGX, Cboe                          and limitations set forth in Exchange                 Affiliated Exchanges will, in turn,
                                              Options, and C2 will be collectively                    Rule 2.12(a) will remain the same. The                simplify the technology
                                              referred to as the ‘‘Cboe Affiliated                    Exchange believes that Rule 2.12 will                 implementation, changes, and
                                              Exchanges.’’                                            continue to adequately manage the                     maintenance by users of the Exchange
                                                 In connection with the Merger, the                   potential for conflicts of interest that              that are also participants on BZX, BYX,
                                              Cboe Affiliated Exchanges are working                   could arise from Cboe Trading routing                 EDGX, Cboe Options, and C2. As such,
                                              to migrate Cboe Options and C2 onto the                 orders to the Exchange.                               the proposed rule change would foster
                                              Bats technology platform, and align                                                                           cooperation and coordination with
                                              certain system functionality, retaining                 Implementation Date
                                                                                                                                                            persons engaged in facilitating
                                              only intended differences between the                      With respect to C2, the Exchange                   transactions in securities and would
                                              Cboe Affiliated Exchanges.7 The                         intends to implement the proposed rule                remove impediments to and perfect the
                                              Exchange proposes to amend Rule 2.12                    change on or about May 14, 2018, which                mechanism of a free and open market
                                              to reflect that Cboe Options and C2 are                 is the anticipated date upon which the                and a national market system.
                                              affiliated with the Exchange and that                   migration of C2 onto the Bats
                                              upon completion of the migration, Cboe                  technology platform will be complete.                 B. Self-Regulatory Organization’s
                                              Trading, Inc. (‘‘Cboe Trading’’) may also               With respect to Cboe Options, the                     Statement on Burden on Competition
                                              act as the inbound router for routing                   Exchange intends to implement the                        The Exchange does not believe that
                                              orders from Cboe Options and C2 to the                  proposed rule change on or about                      the proposed rule change will impose
                                              Exchange. The Exchange previously                       October 7, 2019, which is the                         any burden on competition that is not
                                              implemented limitations and conditions                  anticipated date upon which the                       necessary or appropriate in furtherance
                                              on Cboe Trading’s affiliation with the                  migration of Cboe Options onto the Bats               of the purposes of the Act. The
                                              Exchange in order to permit the                         technology platform will be complete.                 Exchange reiterates that the proposed
                                              Exchange to accept inbound orders that                                                                        rule change is being proposed in the
                                              Cboe Trading routes in its capacity as a                2. Statutory Basis
                                                                                                                                                            context of the technology integration of
                                              facility of the Exchange, BZX, BYX, and                    The Exchange believes the proposed                 the Cboe Affiliated Exchanges. Thus, the
                                              EDGX.8 Those same conditions and                        rule change is consistent with the                    Exchange believes this proposed rule
                                              limitations will apply to any inbound                   Securities Exchange Act of 1934 (the                  change is necessary to permit fair
                                              orders that Cboe Trading routes in its                  ‘‘Act’’) and the rules and regulations                competition among national securities
                                              capacity as a facility of Cboe Options                  thereunder applicable to the Exchange                 exchanges. In addition, the Exchange
                                              and C2.                                                 and, in particular, the requirements of               believes the proposed rule change will
                                                 Cboe Trading currently provides                      Section 6(b) of the Act.9 Specifically,               benefit Exchange participants in that it
                                              Members of the Exchange, BZX, BYX,                      the Exchange believes the proposed rule               is one of several changes necessary to
                                              and EDGX with optional routing                          change is consistent with the Section                 achieve a consistent technology offering
                                              services to other market centers. In                    6(b)(5) 10 requirements that the rules of             by the Cboe Affiliated Exchanges.
                                              certain circumstances, Cboe Trading                     an exchange be designed to prevent
                                              provides inbound routing from BZX,                      fraudulent and manipulative acts and                  C. Self-Regulatory Organization’s
                                              BYX, and EDGX to the Exchange.                          practices, to promote just and equitable              Statement on Comments on the
                                              Exchange Rule 2.12 governs this                         principles of trade, to foster cooperation            Proposed Rule Change Received From
                                              inbound routing of orders by Cboe                       and coordination with persons engaged                 Members, Participants, or Others
                                              Trading to the Exchange in Cboe                         in regulating, clearing, settling,                      No comments were solicited or
                                              Trading’s capacity as a facility of the                 processing information with respect to,               received on the proposed rule change.
                                              Exchange. The Exchange proposes to                      and facilitating transactions in
                                                                                                                                                            III. Date of Effectiveness of the
                                              amend Rule 2.12 to reflect that Cboe                    securities, to remove impediments to
                                                                                                                                                            Proposed Rule Change and Timing for
                                              Options and C2 are affiliated with the                  and perfect the mechanism of a free and
                                                                                                                                                            Commission Action
                                              Exchange and that Cboe Trading may                      open market and a national market
                                              also act as the inbound router for                      system, and, in general, to protect                      Because the foregoing proposed rule
                                                                                                      investors and the public interest.                    change does not: (i) Significantly affect
                                              BZX Exchange, Inc.) (‘‘BZX’’), Cboe BYX Exchange,       Additionally, the Exchange believes the               the protection of investors or the public
                                              Inc. (formerly Bats BYX Exchange. Inc.) (‘‘BYX’’),      proposed rule change is consistent with               interest; (ii) impose any significant
                                              and Cboe EDGX Exchange, Inc. (formerly Bats                                                                   burden on competition; and (iii) become
                                              EDGX Exchange, Inc.) (‘‘EDGX’’).
                                                                                                      the Section 6(b)(5) 11 requirement that
                                                6 See Securities Exchange Act Release No. 79585       the rules of an exchange not be designed              operative for 30 days from the date on
                                              (December 16, 2016), 81 FR 93988 (December 22,          to permit unfair discrimination between               which it was filed, or such shorter time
                                              2016) (SR–BatsBZX–2016–68; SR–BatsBYX–2016–             customers, issuers, brokers, or dealers.              as the Commission may designate, it has
                                              29; SR–BatsEDGA–2016–24; SR–BatsEDGX–2016–                 The Exchange does not propose to                   become effective pursuant to Section
                                              60).
                                                7 It is anticipated that the C2 migration onto the
                                                                                                      amend the requirements of the rule and                19(b)(3)(A) of the Act 12 and Rule 19b–
                                                                                                      the proposed rule change is intended                  4(f)(6) thereunder.13
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                                              Bats technology platform will be completed on May
                                              14, 2018, and the Cboe Options migration onto the       only to reflect that Cboe Options and C2
                                              Bats technology platform will be completed on           are affiliated with the Exchange and that               12 15  U.S.C. 78s(b)(3)(A).
                                              October 7, 2019.                                                                                                13 17  CFR 240.19b–4(f)(6). In addition, Rule 19b–
                                                8 See Securities Exchange Act Release No. 61698
                                                                                                      Cboe Trading may also route inbound
                                                                                                                                                            4(f)(6)(iii) requires a self-regulatory organization to
                                              (March 12, 2010), 75 FR 13151 (March 18, 2010)                                                                give the Commission written notice of its intent to
                                                                                                       9 15 U.S.C. 78f(b).
                                              (order approving application of EDGA Exchange,                                                                file the proposed rule change, along with a brief
                                                                                                       10 15  U.S.C. 78f(b)(5).
                                              Inc. (currently named Cboe EDGA Exchange, Inc.)                                                               description and text of the proposed rule change,
                                              for registration as a national securities exchange).     11 Id.                                                                                             Continued




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                                              23752                             Federal Register / Vol. 83, No. 99 / Tuesday, May 22, 2018 / Notices

                                                 A proposed rule change filed under                        • Send an email to rule-comments@                   SECURITIES AND EXCHANGE
                                              Rule 19b–4(f)(6) normally does not                        sec.gov. Please include File Number SR–                COMMISSION
                                              become operative for 30 days after the                    CboeEDGA–2018–008 on the subject
                                              date of its filing. However, Rule 19b–                                                                           [Release No. 34–83257; File No. SR–ISE–
                                                                                                        line.
                                              4(f)(6)(iii) 14 permits the Commission to                                                                        2018–42]
                                              designate a shorter time if such action                   Paper Comments
                                                                                                                                                               Self-Regulatory Organizations; Nasdaq
                                              is consistent with the protection of
                                                                                                          • Send paper comments in triplicate                  ISE, LLC; Notice of Filing and
                                              investors and the public interest. The
                                                                                                        to Secretary, Securities and Exchange                  Immediate Effectiveness of Proposed
                                              Exchange has requested that the
                                                                                                        Commission, 100 F Street NE,                           Rule Change To Amend the Exchanges
                                              Commission waive the 30-day operative
                                                                                                        Washington, DC 20549–1090.                             Schedule of Fees
                                              delay so that the proposed rule change
                                              will become operative on filing. Waiver                   All submissions should refer to File                   May 16, 2018.
                                              of the operative delay would allow the                    Number SR–CboeEDGA–2018–008. This                         Pursuant to Section 19(b)(1) of the
                                              Exchange to implement the proposed                        file number should be included on the                  Securities Exchange Act of 1934
                                              rule change on May 14, 2018, which is                     subject line if email is used. To help the             (‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                              same day as the anticipated date for the                  Commission process and review your                     notice is hereby given that on May 1,
                                              migration of C2 to the Bats technology                    comments more efficiently, please use                  2018, Nasdaq ISE, LLC (‘‘ISE’’ or
                                              platform. The Exchange stated that the                                                                           ‘‘Exchange’’) filed with the Securities
                                                                                                        only one method. The Commission will
                                              proposed rule change promotes the                                                                                and Exchange Commission
                                                                                                        post all comments on the Commission’s
                                              protection of investors and the public                                                                           (‘‘Commission’’) the proposed rule
                                              interest because it would minimize the                    internet website (http://www.sec.gov/
                                                                                                        rules/sro.shtml). Copies of the                        change as described in Items I and II
                                              amount of disruption as C2 (and                                                                                  below, which Items have been prepared
                                              eventually Cboe Options) migrates to                      submission, all subsequent
                                                                                                        amendments, all written statements                     by the Exchange. The Commission is
                                              the Bats technology platform. Therefore,                                                                         publishing this notice to solicit
                                              the Commission believes that waiver of                    with respect to the proposed rule
                                                                                                                                                               comments on the proposed rule change
                                              the 30-day operative delay is consistent                  change that are filed with the
                                                                                                                                                               from interested persons.
                                              with the protection of investors and the                  Commission, and all written
                                              public interest. Accordingly, the                         communications relating to the                         I. Self-Regulatory Organization’s
                                              Commission hereby waives the                              proposed rule change between the                       Statement of the Terms of Substance of
                                              operative delay and designates the                        Commission and any person, other than                  the Proposed Rule Change
                                              proposed rule change operative upon                       those that may be withheld from the                       The Exchange proposes to amend the
                                              filing.15                                                 public in accordance with the                          Exchanges Schedule of Fees.
                                                 At any time within 60 days of the                      provisions of 5 U.S.C. 552, will be                       The text of the proposed rule change
                                              filing of such proposed rule change, the                  available for website viewing and                      is available on the Exchange’s website at
                                              Commission summarily may                                  printing in the Commission’s Public                    http://ise.cchwallstreet.com/, at the
                                              temporarily suspend such rule change if                   Reference Room, 100 F Street NE,                       principal office of the Exchange, and at
                                              it appears to the Commission that such                                                                           the Commission’s Public Reference
                                                                                                        Washington, DC 20549 on official
                                              action is necessary or appropriate in the                                                                        Room.
                                                                                                        business days between the hours of
                                              public interest, for the protection of
                                              investors, or otherwise in furtherance of                 10:00 a.m. and 3:00 p.m. Copies of the                 II. Self-Regulatory Organization’s
                                              the purposes of the Act. If the                           filing also will be available for                      Statement of the Purpose of, and
                                              Commission takes such action, the                         inspection and copying at the principal                Statutory Basis for, the Proposed Rule
                                              Commission shall institute proceedings                    office of the Exchange. All comments                   Change
                                              to determine whether the proposed rule                    received will be posted without change.
                                                                                                        Persons submitting comments are                          In its filing with the Commission, the
                                              change should be approved or                                                                                     Exchange included statements
                                              disapproved.                                              cautioned that we do not redact or edit
                                                                                                                                                               concerning the purpose of and basis for
                                                                                                        personal identifying information from
                                              IV. Solicitation of Comments                                                                                     the proposed rule change and discussed
                                                                                                        comment submissions. You should
                                                Interested persons are invited to                                                                              any comments it received on the
                                                                                                        submit only information that you wish                  proposed rule change. The text of these
                                              submit written data, views, and                           to make available publicly. All
                                              arguments concerning the foregoing,                                                                              statements may be examined at the
                                                                                                        submissions should refer to File                       places specified in Item IV below. The
                                              including whether the proposed rule                       Number SR–CboeEDGA–2018–008, and
                                              change is consistent with the Act.                                                                               Exchange has prepared summaries, set
                                                                                                        should be submitted on or before June                  forth in sections A, B, and C below, of
                                              Comments may be submitted by any of                       12, 2018.
                                              the following methods:                                                                                           the most significant aspects of such
                                                                                                          For the Commission, by the Division of               statements.
                                              Electronic Comments                                       Trading and Markets, pursuant to delegated             A. Self-Regulatory Organization’s
                                                • Use the Commission’s internet                         authority.16                                           Statement of the Purpose of, and
                                              comment form (http://www.sec.gov/                         Eduardo A. Aleman,                                     Statutory Basis for, the Proposed Rule
                                              rules/sro.shtml); or                                      Assistant Secretary.                                   Change
                                                                                                        [FR Doc. 2018–10828 Filed 5–21–18; 8:45 am]
                                              at least five business days prior to the date of filing                                                          1. Purpose
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                                              of the proposed rule change, or such shorter time         BILLING CODE 8011–01–P
                                              as designated by the Commission. The Exchange                                                                      The purpose of the proposed rule
                                              has satisfied this requirement.                                                                                  change is to amend the Exchange’s
                                                 14 17 CFR 240.19b–4(f)(6)(iii).
                                                                                                                                                               Schedule of Fees, as described further
                                                 15 For purposes only of waiving the 30-day
                                                                                                                                                               below.
                                              operative delay, the Commission also has
                                              considered the proposed rule’s impact on
                                                                                                                                                                 1 15   U.S.C. 78s(b)(1).
                                              efficiency, competition, and capital formation. See
                                              15 U.S.C. 78c(f).                                           16 17   CFR 200.30–3(a)(12).                           2 17   CFR 240.19b–4.



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Document Created: 2018-11-02 11:10:05
Document Modified: 2018-11-02 11:10:05
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 23750 

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