83_FR_23854 83 FR 23755 - Self-Regulatory Organizations; Cboe EDGX 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 23755 - Self-Regulatory Organizations; Cboe EDGX 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 Range23755-23757
FR Document2018-10829

Federal Register, Volume 83 Issue 99 (Tuesday, May 22, 2018)
[Federal Register Volume 83, Number 99 (Tuesday, May 22, 2018)]
[Notices]
[Pages 23755-23757]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-10829]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83256; File No. SR-CboeEDGX-2018-015]


Self-Regulatory Organizations; Cboe EDGX 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 EDGX Exchange, Inc. (``EDGX'' 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 EDGX 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 EDGA 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 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

[[Page 23756]]

Exchange, BZX, BYX, EDGA, Cboe Options, and C2 will be collectively 
referred to as the ``Cboe Affiliated Exchanges.''
---------------------------------------------------------------------------

    \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 EDGA Exchange, Inc. (formerly Bats EDGA 
Exchange, Inc.) (``EDGA'').
    \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).
---------------------------------------------------------------------------

    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 EDGA.\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 
EDGX Exchange, Inc. (currently named Cboe EDGX Exchange, Inc.) for 
registration as a national securities exchange).
---------------------------------------------------------------------------

    Cboe Trading currently provides Members of the Exchange, BZX, BYX, 
and EDGA with optional routing services to other market centers. In 
certain circumstances, Cboe Trading provides inbound routing from BZX, 
BYX, and EDGA 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, EDGA, 
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 neither solicited nor received written comments on 
the proposed rule change.

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

    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.
---------------------------------------------------------------------------

    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

[[Page 23757]]

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

    \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-CboeEDGX-2018-015 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-CboeEDGX-2018-015. 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-CboeEDGX-2018-015, 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\
---------------------------------------------------------------------------

    \16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-10829 Filed 5-21-18; 8:45 am]
 BILLING CODE 8011-01-P



                                                                               Federal Register / Vol. 83, No. 99 / Tuesday, May 22, 2018 / Notices                                                    23755

                                              19b–4(f)(2) 12 thereunder. At any time                    received will be posted without change.               (additions are italicized; deletions are
                                              within 60 days of the filing of the                       Persons submitting comments are                       [bracketed])
                                              proposed rule change, the Commission                      cautioned that we do not redact or edit               *    *     *      *     *
                                              summarily may temporarily suspend                         personal identifying information from
                                              such rule change if it appears to the                     comment submissions. You should                       Cboe EDGX Exchange, Inc.
                                              Commission that such action is: (i)                       submit only information that you wish                 Rules
                                              Necessary or appropriate in the public                    to make available publicly. All                       *        *      *     *    *
                                              interest; (ii) for the protection of                      submissions should refer to File
                                              investors; or (iii) otherwise in                          Number SR–ISE–2018–42 and should be                   Rule 2.12. Cboe Trading, Inc. as
                                              furtherance of the purposes of the Act.                   submitted on or before June 12, 2018.                 Inbound Router
                                              If the Commission takes such action, the                    For the Commission, by the Division of                 (a) For so long as the Exchange is
                                              Commission shall institute proceedings                    Trading and Markets, pursuant to delegated            affiliated with Cboe Exchange, Inc.,
                                              to determine whether the proposed rule                    authority.13                                          Cboe C2 Exchange, Inc., Cboe EDGA
                                              should be approved or disapproved.                        Eduardo A. Aleman,                                    Exchange, Inc., Cboe BYX Exchange,
                                              IV. Solicitation of Comments                              Assistant Secretary.                                  Inc., or Cboe BZX Exchange, Inc. (each,
                                                                                                        [FR Doc. 2018–10830 Filed 5–21–18; 8:45 am]           a ‘‘Cboe Exchange’’), and Cboe Trading,
                                                Interested persons are invited to
                                                                                                                                                              Inc. (‘‘Cboe Trading’) in its capacity as
                                              submit written data, views, and                           BILLING CODE 8011–01–P
                                                                                                                                                              a facility of each Cboe Exchange is
                                              arguments concerning the foregoing,
                                                                                                                                                              utilized for the routing of orders from a
                                              including whether the proposed rule
                                                                                                        SECURITIES AND EXCHANGE                               Cboe Exchange to the Exchange, the
                                              change is consistent with the Act.
                                                                                                        COMMISSION                                            Exchange undertakes as follows:
                                              Comments may be submitted by any of                                                                                (1)–(4) No change.
                                              the following methods:                                                                                             (b) No change.
                                                                                                        [Release No. 34–83256; File No. SR–
                                              Electronic Comments                                       CboeEDGX–2018–015]                                    *      *     *    *     *
                                                • Use the Commission’s internet                                                                                  The text of the proposed rule change
                                                                                                        Self-Regulatory Organizations; Cboe                   is available at the Exchange’s website at
                                              comment form (http://www.sec.gov/
                                                                                                        EDGX Exchange, Inc.; Notice of Filing                 www.markets.cboe.com, at the principal
                                              rules/sro.shtml); or
                                                • Send an email to rule-comments@                       and Immediate Effectiveness of a                      office of the Exchange, and at the
                                              sec.gov. Please include File Number SR–                   Proposed Rule Change To Amend Rule                    Commission’s Public Reference Room.
                                              ISE–2018–42 on the subject line.                          2.12 To Add References to Cboe
                                                                                                        Options and C2                                        II. Self-Regulatory Organization’s
                                              Paper Comments                                                                                                  Statement of the Purpose of, and
                                                                                                        May 16, 2018.                                         Statutory Basis for, the Proposed Rule
                                                 • Send paper comments in triplicate                                                                          Change
                                                                                                           Pursuant to Section 19(b)(1) of the
                                              to Secretary, Securities and Exchange
                                                                                                        Securities Exchange Act of 1934 (the                     In its filing with the Commission, the
                                              Commission, 100 F Street NE,
                                                                                                        ‘‘Act’’),1 and Rule 19b–4 thereunder,2                Exchange included statements
                                              Washington, DC 20549–1090.
                                                                                                        notice is hereby given that on May 14,                concerning the purpose of and basis for
                                              All submissions should refer to File                      2018, Cboe EDGX Exchange, Inc.                        the proposed rule change and discussed
                                              Number SR–ISE–2018–42. This file                          (‘‘EDGX’’ or the ‘‘Exchange’’) filed with             any comments it received on the
                                              number should be included on the                          the Securities and Exchange                           proposed rule change. The text of these
                                              subject line if email is used. To help the                Commission (‘‘Commission’’) the                       statements may be examined at the
                                              Commission process and review your                        proposed rule change as described in                  places specified in Item IV below. The
                                              comments more efficiently, please use                     Items I and II below, which Items have                Exchange has prepared summaries, set
                                              only one method. The Commission will                      been prepared by the Exchange. The                    forth in Sections A, B, and C below, of
                                              post all comments on the Commission’s                     Exchange has designated this proposal                 the most significant parts of such
                                              internet website (http://www.sec.gov/                     as a ‘‘non-controversial’’ proposed rule              statements.
                                              rules/sro.shtml). Copies of the                           change pursuant to Section 19(b)(3)(A)
                                              submission, all subsequent                                                                                      A. Self-Regulatory Organization’s
                                                                                                        of the Act 3 and Rule 19b–4(f)(6)(iii)
                                              amendments, all written statements                                                                              Statement of the Purpose of, and
                                                                                                        thereunder,4 which renders it effective
                                              with respect to the proposed rule                                                                               Statutory Basis for, the Proposed Rule
                                                                                                        upon filing with the Commission. The
                                              change that are filed with the                                                                                  Change
                                                                                                        Commission is publishing this notice to
                                              Commission, and all written                               solicit comments on the proposed rule                 1. Purpose
                                              communications relating to the                            change from interested persons.
                                              proposed rule change between the                                                                                   In December 2016, the Exchange and
                                              Commission and any person, other than                     I. Self-Regulatory Organization’s                     its affiliates 5 received approval to effect
                                              those that may be withheld from the                       Statement of the Terms of Substance of                a merger (the ‘‘Merger’’) of the
                                              public in accordance with the                             the Proposed Rule Change                              Exchange’s parent company, Bats Global
                                              provisions of 5 U.S.C. 552, will be                                                                             Markets, Inc. with CBOE Holdings, Inc.
                                                                                                          The Exchange filed a proposal to                    (now known as Cboe Global Markets,
                                              available for website viewing and                         amend Rule 2.12 to add references to
                                              printing in the Commission’s Public                                                                             Inc.), the parent company of Cboe
                                                                                                        Cboe Exchange, Inc. (‘‘Cboe Options’’)                Options and C2.6 Hereinafter, the
                                              Reference Room, 100 F Street NE,                          and Cboe C2 Exchange, Inc. (‘‘C2’’). The
                                              Washington, DC 20549, on official                         Exchange does not propose to amend
amozie on DSK3GDR082PROD with NOTICES1




                                                                                                                                                                5 As of December 2016, the Exchange’s affiliates
                                              business days between the hours of                        the requirements of this rule.                        included Cboe BZX Exchange, Inc. (formerly Bats
                                              10:00 a.m. and 3:00 p.m. Copies of the                                                                          BZX Exchange, Inc.) (‘‘BZX’’), Cboe BYX Exchange,
                                              filing also will be available for                           13 17 CFR 200.30–3(a)(12).
                                                                                                                                                              Inc. (formerly Bats BYX Exchange. Inc.) (‘‘BYX’’),
                                              inspection and copying at the principal                                                                         and Cboe EDGA Exchange, Inc. (formerly Bats
                                                                                                          1 15 U.S.C. 78s(b)(1).                              EDGA Exchange, Inc.) (‘‘EDGA’’).
                                              office of the Exchange. All comments                        2 17 CFR 240.19b–4.                                   6 See Securities Exchange Act Release No. 79585
                                                                                                          3 15 U.S.C. 78s(b)(3)(A).
                                                                                                                                                              (December 16, 2016), 81 FR 93988 (December 22,
                                                12 17   CFR 240.19b–4(f)(2).                              4 17 CFR 240.19b–4(f)(6)(iii).                                                                Continued




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                                              23756                           Federal Register / Vol. 83, No. 99 / Tuesday, May 22, 2018 / Notices

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




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                                                                              Federal Register / Vol. 83, No. 99 / Tuesday, May 22, 2018 / Notices                                                23757

                                              investors and the public interest. The                  All submissions should refer to File                   ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                              Exchange has requested that the                         Number SR–CboeEDGX–2018–015. This                      notice is hereby given that on May 14,
                                              Commission waive the 30-day operative                   file number should be included on the                  2018, Cboe BYX Exchange, Inc. (‘‘BYX’’
                                              delay so that the proposed rule change                  subject line if email is used. To help the             or the ‘‘Exchange’’) filed with the
                                              will become operative on filing. Waiver                 Commission process and review your                     Securities and Exchange Commission
                                              of the operative delay would allow the                  comments more efficiently, please use                  (‘‘Commission’’) the proposed rule
                                              Exchange to implement the proposed                      only one method. The Commission will                   change as described in Items I and II
                                              rule change on May 14, 2018, which is                   post all comments on the Commission’s                  below, which Items have been prepared
                                              same day as the anticipated date for the                internet website (http://www.sec.gov/                  by the Exchange. The Exchange has
                                              migration of C2 to the Bats technology                  rules/sro.shtml). Copies of the                        designated this proposal as a ‘‘non-
                                              platform. The Exchange stated that the                  submission, all subsequent                             controversial’’ proposed rule change
                                              proposed rule change promotes the                       amendments, all written statements                     pursuant to Section 19(b)(3)(A) of the
                                              protection of investors and the public                  with respect to the proposed rule                      Act 3 and Rule 19b–4(f)(6)(iii)
                                              interest because it would minimize the                  change that are filed with the                         thereunder,4 which renders it effective
                                              amount of disruption as C2 (and                         Commission, and all written                            upon filing with the Commission. The
                                              eventually Cboe Options) migrates to                    communications relating to the                         Commission is publishing this notice to
                                              the Bats technology platform. Therefore,                proposed rule change between the                       solicit comments on the proposed rule
                                              the Commission believes that waiver of                  Commission and any person, other than
                                                                                                                                                             change from interested persons.
                                              the 30-day operative delay is consistent                those that may be withheld from the
                                              with the protection of investors and the                public in accordance with the                          I. Self-Regulatory Organization’s
                                              public interest. Accordingly, the                       provisions of 5 U.S.C. 552, will be                    Statement of the Terms of Substance of
                                              Commission hereby waives the                            available for website viewing and                      the Proposed Rule Change
                                              operative delay and designates the                      printing in the Commission’s Public
                                              proposed rule change operative upon                     Reference Room, 100 F Street NE,                         The Exchange filed a proposal to
                                              filing.15                                               Washington, DC 20549 on official                       amend Rule 2.12 to add references to
                                                 At any time within 60 days of the                    business days between the hours of                     Cboe Exchange, Inc. (‘‘Cboe Options’’)
                                              filing of such proposed rule change, the                10:00 a.m. and 3:00 p.m. Copies of the                 and Cboe C2 Exchange, Inc. (‘‘C2’’). The
                                              Commission summarily may                                filing also will be available for                      Exchange does not propose to amend
                                              temporarily suspend such rule change if                 inspection and copying at the principal                the requirements of this rule.
                                              it appears to the Commission that such                  office of the Exchange. All comments
                                                                                                                                                             (additions are italicized; deletions are
                                              action is necessary or appropriate in the               received will be posted without change.
                                                                                                                                                             [bracketed])
                                              public interest, for the protection of                  Persons submitting comments are
                                              investors, or otherwise in furtherance of               cautioned that we do not redact or edit                *          *      *     *      *
                                              the purposes of the Act. If the                         personal identifying information from
                                                                                                      comment submissions. You should                        Cboe BYX Exchange, Inc.
                                              Commission takes such action, the
                                              Commission shall institute proceedings                  submit only information that you wish                  Rules
                                              to determine whether the proposed rule                  to make available publicly. All
                                                                                                                                                             *          *      *     *      *
                                              change should be approved or                            submissions should refer to File
                                              disapproved.                                            Number SR–CboeEDGX–2018–015, and                       Rule 2.12. Cboe Trading, Inc. as
                                                                                                      should be submitted on or before June                  Inbound Router
                                              IV. Solicitation of Comments
                                                                                                      12, 2018.
                                                Interested persons are invited to                                                                               (a) For so long as the Exchange is
                                                                                                        For the Commission, by the Division of
                                              submit written data, views, and                         Trading and Markets, pursuant to delegated             affiliated with Cboe Exchange, Inc.,
                                              arguments concerning the foregoing,                     authority.16                                           Cboe C2 Exchange, Inc., Cboe BZX
                                              including whether the proposed rule                     Eduardo A. Aleman,                                     Exchange, Inc., Cboe EDGA Exchange,
                                              change is consistent with the Act.                      Assistant Secretary.                                   Inc. or Cboe EDGX Exchange, Inc.,
                                              Comments may be submitted by any of                                                                            (each, a ‘‘Cboe Exchange’’), and Cboe
                                                                                                      [FR Doc. 2018–10829 Filed 5–21–18; 8:45 am]
                                              the following methods:                                                                                         Trading, Inc. in its capacity as a facility
                                                                                                      BILLING CODE 8011–01–P
                                                                                                                                                             of each Cboe Exchange is utilized for the
                                              Electronic Comments
                                                                                                                                                             routing of orders from each Cboe
                                                 • Use the Commission’s internet                      SECURITIES AND EXCHANGE                                Exchange to the Exchange, (such
                                              comment form (http://www.sec.gov/                       COMMISSION                                             function of Cboe Trading, Inc. is
                                              rules/sro.shtml); or                                                                                           referred to as the ‘‘Inbound Router’’), the
                                                 • Send an email to rule-comments@                                                                           Exchange undertakes as follows:
                                              sec.gov. Please include File Number SR–                 [Release No. 34–83254; File No. SR-
                                                                                                      CboeBYX–2018–005]                                         (1)–(4) No change.
                                              CboeEDGX–2018–015 on the subject
                                              line.                                                                                                             (b) No change.
                                                                                                      Self-Regulatory Organizations; Cboe
                                                                                                      BYX Exchange, Inc.; Notice of Filing                   *      *     *    *     *
                                              Paper Comments
                                                                                                      and Immediate Effectiveness of a                          The text of the proposed rule change
                                                • Send paper comments in triplicate                   Proposed Rule Change To Amend Rule                     is available at the Exchange’s website at
                                              to Secretary, Securities and Exchange                   2.12 To Add References to Cboe                         www.markets.cboe.com, at the principal
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                                              Commission, 100 F Street NE,                            Options and C2                                         office of the Exchange, and at the
                                              Washington, DC 20549–1090.
                                                                                                                                                             Commission’s Public Reference Room.
                                                                                                      May 16, 2018.
                                                15 For purposes only of waiving the 30-day              Pursuant to Section 19(b)(1) of the                      1 15 U.S.C. 78s(b)(1).
                                              operative delay, the Commission also has                Securities Exchange Act of 1934 (the                       2 17 CFR 240.19b–4 .
                                              considered the proposed rule’s impact on
                                                                                                                                                                 3 15 U.S.C. 78s(b)(3)(A).
                                              efficiency, competition, and capital formation. See
                                              15 U.S.C. 78c(f).                                         16 17   CFR 200.30–3(a)(12).                             4 17 CFR 240.19b–4(f)(6)(iii).




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Document Created: 2018-11-02 11:09:26
Document Modified: 2018-11-02 11:09:26
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 23755 

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