83_FR_23856 83 FR 23757 - Self-Regulatory Organizations; Cboe BYX 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 23757 - Self-Regulatory Organizations; Cboe BYX 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 Range23757-23759
FR Document2018-10827

Federal Register, Volume 83 Issue 99 (Tuesday, May 22, 2018)
[Federal Register Volume 83, Number 99 (Tuesday, May 22, 2018)]
[Notices]
[Pages 23757-23759]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-10827]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83254; File No. SR-CboeBYX-2018-005]


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

[[Page 23758]]

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.

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

1. Purpose
    In December 2016, the Exchange and its affiliates \5\ received 
approval to effect a merger (the ``Merger'') of the Exchange's parent 
company, Bats Global Markets, Inc. with CBOE Holdings, Inc. (now known 
as Cboe Global Markets, Inc.), the parent company of Cboe Options and 
C2.\6\ Hereinafter, the Exchange, BZX, EDGA, EDGX, 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 EDGA Exchange, Inc. (formerly Bats EDGA Exchange. Inc.) 
(``EDGA''), and Cboe EDGX Exchange, Inc. (formerly Bats EDGX 
Exchange, Inc.) (``EDGX'').
    \6\ See Securities Exchange Act Release No. 79585 (December 16, 
2016), 81 FR 93988 (December 22, 2016) (SR-BatsBZX-2016-68; SR-
BatsBYX-2016-29; SR-BatsEDGA-2016-24; SR-BatsEDGX-2016-60).
---------------------------------------------------------------------------

    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 \8\ 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, EDGA, and 
EDGX. 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. 62716 (August 13, 
2010), 75 FR 51295 (August 19, 2010) (order approving application of 
BATS Y-Exchange, Inc. (currently named Cboe BYX Exchange, Inc.) for 
registration as a national securities exchange).
---------------------------------------------------------------------------

    Cboe Trading currently provides Members of the Exchange, BZX, EDGA, 
and EDGX with optional routing services to other market centers. In 
certain circumstances, Cboe Trading provides inbound routing from BZX, 
EDGA, 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, EDGA, EDGX, 
Cboe Options, and C2. As such, the proposed rule change would foster 
cooperation and coordination with persons engaged in facilitating 
transactions in securities and would remove impediments to and perfect 
the mechanism of a free and open market and a national market system.

B. Self-Regulatory Organization's Statement on Burden on Competition

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

[[Page 23759]]

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

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

    \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-CboeBYX-2018-005 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-CboeBYX-2018-005. 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-CboeBYX-2018-005, 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. 2018-10827 Filed 5-21-18; 8:45 am]
BILLING CODE 8011-01-P



                                                                              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
amozie on DSK3GDR082PROD with NOTICES1




                                              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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                                              23758                           Federal Register / Vol. 83, No. 99 / Tuesday, May 22, 2018 / Notices

                                              II. Self-Regulatory Organization’s                      Exchange in order to permit the                       6(b)(5) 10 requirements that the rules of
                                              Statement of the Purpose of, and                        Exchange to accept inbound orders that                an exchange be designed to prevent
                                              Statutory Basis for, the Proposed Rule                  Cboe Trading routes in its capacity as a              fraudulent and manipulative acts and
                                              Change                                                  facility of the Exchange, BZX, EDGA,                  practices, to promote just and equitable
                                                 In its filing with the Commission, the               and EDGX. Those same conditions and                   principles of trade, to foster cooperation
                                              Exchange included statements                            limitations will apply to any inbound                 and coordination with persons engaged
                                              concerning the purpose of and basis for                 orders that Cboe Trading routes in its                in regulating, clearing, settling,
                                              the proposed rule change and discussed                  capacity as a facility of Cboe Options                processing information with respect to,
                                              any comments it received on the                         and C2.                                               and facilitating transactions in
                                              proposed rule change. The text of these                   Cboe Trading currently provides                     securities, to remove impediments to
                                              statements may be examined at the                       Members of the Exchange, BZX, EDGA,                   and perfect the mechanism of a free and
                                              places specified in Item IV below. The                  and EDGX with optional routing                        open market and a national market
                                              Exchange has prepared summaries, set                    services to other market centers. In                  system, and, in general, to protect
                                                                                                      certain circumstances, Cboe Trading                   investors and the public interest.
                                              forth in Sections A, B, and C below, of
                                                                                                      provides inbound routing from BZX,                    Additionally, the Exchange believes the
                                              the most significant parts of such
                                                                                                      EDGA, and EDGX to the Exchange.                       proposed rule change is consistent with
                                              statements.
                                                                                                      Exchange Rule 2.12 governs this                       the Section 6(b)(5) 11 requirement that
                                              Self-Regulatory Organization’s                          inbound routing of orders by Cboe                     the rules of an exchange not be designed
                                              Statement of the Purpose of, and                        Trading to the Exchange in Cboe                       to permit unfair discrimination between
                                              Statutory Basis for, the Proposed Rule                  Trading’s capacity as a facility of the               customers, issuers, brokers, or dealers.
                                              Change                                                                                                           The Exchange does not propose to
                                                                                                      Exchange. The Exchange proposes to
                                                                                                                                                            amend the requirements of the rule and
                                              1. Purpose                                              amend Rule 2.12 to reflect that Cboe
                                                                                                                                                            the proposed rule change is intended
                                                                                                      Options and C2 are affiliated with the
                                                 In December 2016, the Exchange and                                                                         only to reflect that Cboe Options and C2
                                                                                                      Exchange and that Cboe Trading may
                                              its affiliates 5 received approval to effect                                                                  are affiliated with the Exchange and that
                                                                                                      also act as the inbound router for
                                              a merger (the ‘‘Merger’’) of the                                                                              Cboe Trading may also route inbound
                                                                                                      routing orders from Cboe Options and
                                              Exchange’s parent company, Bats Global                                                                        orders from Cboe Options and C2 to the
                                                                                                      C2 to the Exchange upon migration of
                                              Markets, Inc. with CBOE Holdings, Inc.                                                                        Exchange upon migration of Cboe
                                                                                                      Cboe Options and C2 onto the Bats
                                              (now known as Cboe Global Markets,                                                                            Options and C2 onto the Bats
                                                                                                      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, EDGA, 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.’’
                                                 In connection with the Merger, the                   continue to adequately manage the                     maintenance by users of the Exchange
                                              Cboe Affiliated Exchanges are working                   potential for conflicts of interest that              that are also participants on BZX,
                                              to migrate Cboe Options and C2 onto the                 could arise from Cboe Trading routing                 EDGA, EDGX, Cboe Options, and C2. As
                                              Bats technology platform, and align                     orders to the Exchange.                               such, the proposed rule change would
                                              certain system functionality, retaining                 Implementation Date                                   foster cooperation and coordination
                                              only intended differences between the                                                                         with persons engaged in facilitating
                                              Cboe Affiliated Exchanges.7 The                            With respect to C2, the Exchange                   transactions in securities and would
                                              Exchange proposes to amend Rule 2.12                    intends to implement the proposed rule                remove impediments to and perfect the
                                              to reflect that Cboe Options and C2 are                 change on or about May 14, 2018, which                mechanism of a free and open market
                                              affiliated with the Exchange and that                   is the anticipated date upon which the                and a national market system.
                                              upon completion of the migration, Cboe                  migration of C2 onto the Bats
                                                                                                      technology platform will be complete.                 B. Self-Regulatory Organization’s
                                              Trading, Inc. (‘‘Cboe Trading’’) may also                                                                     Statement on Burden on Competition
                                              act as the inbound router for routing                   With respect to Cboe Options, the
                                              orders from Cboe Options and C2 to the                  Exchange intends to implement the                        The Exchange does not believe that
                                              Exchange. The Exchange previously                       proposed rule change on or about                      the proposed rule change will impose
                                              implemented limitations and conditions                  October 7, 2019, which is the                         any burden on competition that is not
                                              on Cboe Trading’s affiliation 8 with the                anticipated date upon which the                       necessary or appropriate in furtherance
                                                                                                      migration of Cboe Options onto the Bats               of the purposes of the Act. The
                                                 5 As of December 2016, the Exchange’s affiliates     technology platform will be complete.                 Exchange reiterates that the proposed
                                              included Cboe BZX Exchange, Inc. (formerly Bats
                                                                                                      2. Statutory Basis                                    rule change is being proposed in the
                                              BZX Exchange, Inc.) (‘‘BZX’’), Cboe EDGA                                                                      context of the technology integration of
                                              Exchange, Inc. (formerly Bats EDGA Exchange. Inc.)
                                              (‘‘EDGA’’), and Cboe EDGX Exchange, Inc. (formerly         The Exchange believes the proposed                 the Cboe Affiliated Exchanges. Thus, the
                                              Bats EDGX Exchange, Inc.) (‘‘EDGX’’).                   rule change is consistent with the                    Exchange believes this proposed rule
                                                 6 See Securities Exchange Act Release No. 79585      Securities Exchange Act of 1934 (the                  change is necessary to permit fair
                                              (December 16, 2016), 81 FR 93988 (December 22,          ‘‘Act’’) and the rules and regulations                competition among national securities
                                              2016) (SR–BatsBZX–2016–68; SR–BatsBYX–2016–
                                              29; SR–BatsEDGA–2016–24; SR–BatsEDGX–2016–
                                                                                                      thereunder applicable to the Exchange                 exchanges. In addition, the Exchange
                                                                                                      and, in particular, the requirements of               believes the proposed rule change will
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                                              60).
                                                 7 It is anticipated that the C2 migration onto the   Section 6(b) of the Act.9 Specifically,               benefit Exchange participants in that it
                                              Bats technology platform will be completed on May       the Exchange believes the proposed rule               is one of several changes necessary to
                                              14, 2018, and the Cboe Options migration onto the       change is consistent with the Section                 achieve a consistent technology offering
                                              Bats technology platform will be completed on
                                              October 7, 2019.                                                                                              by the Cboe Affiliated Exchanges.
                                                 8 See Securities Exchange Act Release No. 62716      Inc. (currently named Cboe BYX Exchange, Inc.) for
                                              (August 13, 2010), 75 FR 51295 (August 19, 2010)        registration as a national securities exchange).        10 15    U.S.C. 78f(b)(5).
                                              (order approving application of BATS Y-Exchange,          9 15 U.S.C. 78f(b).                                   11 Id.




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                                                                                Federal Register / Vol. 83, No. 99 / Tuesday, May 22, 2018 / Notices                                                  23759

                                              C. Self-Regulatory Organization’s                             At any time within 60 days of the                 cautioned that we do not redact or edit
                                              Statement on Comments on the                               filing of such proposed rule change, the             personal identifying information from
                                              Proposed Rule Change Received From                         Commission summarily may                             comment submissions. You should
                                              Members, Participants, or Others                           temporarily suspend such rule change if              submit only information that you wish
                                                                                                         it appears to the Commission that such               to make available publicly. All
                                                No comments were solicited or                            action is necessary or appropriate in the            submissions should refer to File
                                              received on the proposed rule change.                      public interest, for the protection of               Number SR–CboeBYX–2018–005, and
                                              III. Date of Effectiveness of the                          investors, or otherwise in furtherance of            should be submitted on or before June
                                              Proposed Rule Change and Timing for                        the purposes of the Act. If the                      12, 2018.
                                              Commission Action                                          Commission takes such action, the                      For the Commission, by the Division of
                                                                                                         Commission shall institute proceedings               Trading and Markets, pursuant to delegated
                                                 Because the foregoing proposed rule                     to determine whether the proposed rule               authority.16
                                              change does not: (i) Significantly affect                  change should be approved or                         Eduardo A. Aleman,
                                              the protection of investors or the public                  disapproved.
                                              interest; (ii) impose any significant                                                                           Assistant Secretary.
                                              burden on competition; and (iii) become                    IV. Solicitation of Comments                         [FR Doc. 2018–10827 Filed 5–21–18; 8:45 am]
                                              operative for 30 days from the date on                       Interested persons are invited to                  BILLING CODE 8011–01–P
                                              which it was filed, or such shorter time                   submit written data, views, and
                                              as the Commission may designate, it has                    arguments concerning the foregoing,
                                              become effective pursuant to Section                       including whether the proposed rule                  DEPARTMENT OF TRANSPORTATION
                                              19(b)(3)(A) of the Act 12 and Rule 19b–                    change is consistent with the Act.
                                              4 (f)(6) thereunder.13                                     Comments may be submitted by any of                  Federal Aviation Administration
                                                 A proposed rule change filed under                      the following methods:
                                                                                                                                                              Notice of Availability of Categorical
                                              Rule 19b–4 (f)(6) normally does not                        Electronic Comments                                  Exclusion and Record of Decision for
                                              become operative for 30 days after the
                                              date of its filing. However, Rule 19b–4                      • Use the Commission’s internet                    the Proposed West Flow Area
                                                                                                         comment form (http://www.sec.gov/                    Navigation Standard Instrument
                                              (f)(6)(iii) 14 permits the Commission to                                                                        Departure Procedures at Phoenix Sky
                                              designate a shorter time if such action                    rules/sro.shtml); or
                                                                                                           • Send an email to rule-comments@                  Harbor International
                                              is consistent with the protection of
                                                                                                         sec.gov. Please include File Number SR–
                                              investors and the public interest. The                                                                          AGENCY: Federal Aviation
                                                                                                         CboeBYX–2018–005 on the subject line.
                                              Exchange has requested that the                                                                                 Administration, (FAA), Department of
                                              Commission waive the 30-day operative                      Paper Comments                                       Transportation.
                                              delay so that the proposed rule change                        • Send paper comments in triplicate               ACTION: Notice of availability.
                                              will become operative on filing. Waiver                    to Secretary, Securities and Exchange
                                              of the operative delay would allow the                     Commission, 100 F Street NE,                         SUMMARY:   The FAA, Western Service
                                              Exchange to implement the proposed                         Washington, DC 20549–1090.                           Area is issuing this notice to advise the
                                              rule change on May 14, 2018, which is                      All submissions should refer to File                 public of the availability of the
                                              same day as the anticipated date for the                   Number SR–CboeBYX–2018–005. This                     Categorical Exclusion/Record of
                                              migration of C2 to the Bats technology                     file number should be included on the                Decision (CATEX/ROD) for the
                                              platform. The Exchange stated that the                     subject line if email is used. To help the           Proposed West Flow Area Navigation
                                              proposed rule change promotes the                          Commission process and review your                   (RNAV) Standard Instrument Departure
                                              protection of investors and the public                     comments more efficiently, please use                (SID) Procedures at Phoenix Sky Harbor
                                              interest because it would minimize the                     only one method. The Commission will                 International Airport in Phoenix, AZ.
                                              amount of disruption as C2 (and                            post all comments on the Commission’s                The FAA reviewed the action and
                                              eventually Cboe Options) migrates to                       internet website (http://www.sec.gov/                determined it to be categorically
                                              the Bats technology platform. Therefore,                   rules/sro.shtml). Copies of the                      excluded from further environmental
                                              the Commission believes that waiver of                     submission, all subsequent                           documentation.
                                              the 30-day operative delay is consistent                   amendments, all written statements                   FOR FURTHER INFORMATION CONTACT:
                                              with the protection of investors and the                   with respect to the proposed rule                    Marina Landis, Federal Aviation
                                              public interest. Accordingly, the                          change that are filed with the                       Administration, Operations Support
                                              Commission hereby waives the                               Commission, and all written                          Group, Western Service Center, 2200 S
                                              operative delay and designates the                         communications relating to the                       216th St., Des Moines, WA 98198–6547
                                              proposed rule change operative upon                        proposed rule change between the                     or (206) 231–2238 or https://
                                              filing.15                                                  Commission and any person, other than                www.faa.gov/nextgen/nextgen_near_
                                                                                                         those that may be withheld from the                  you/community_involvement/phx/.
                                                12 15  U.S.C. 78s(b)(3)(A).
                                                13 17
                                                                                                         public in accordance with the                        SUPPLEMENTARY INFORMATION:
                                                       CFR 240.19b–4 (f)(6). In addition, Rule 19b–
                                              4 (f)(6)(iii) requires a self-regulatory organization to
                                                                                                         provisions of 5 U.S.C. 552, will be
                                                                                                         available for website viewing and                    Background
                                              give the Commission written notice of its intent to
                                              file the proposed rule change, along with a brief          printing in the Commission’s Public                     The FAA is proposing to amend the
                                              description and text of the proposed rule change,          Reference Room, 100 F Street NE,                     west flow RNAV SID procedures from
                                              at least five business days prior to the date of filing
                                                                                                         Washington, DC 20549 on official                     Runways 25 Left, 25 Right and 26 at
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                                              of the proposed rule change, or such shorter time
                                              as designated by the Commission. The Exchange              business days between the hours of                   Phoenix Sky Harbor International
                                              has satisfied this requirement.                            10:00 a.m. and 3:00 p.m. Copies of the               Airport, Phoenix, Arizona. The
                                                 14 17 CFR 240.19b–4 (f)(6)(iii).
                                                                                                         filing also will be available for                    proposed amendments are consistent
                                                 15 For purposes only of waiving the 30-day
                                                                                                         inspection and copying at the principal              with the resolution of the parties as
                                              operative delay, the Commission also has
                                              considered the proposed rule’s impact on
                                                                                                         office of the Exchange. All comments                 stipulated in the Memorandum
                                              efficiency, competition, and capital formation. See        received will be posted without change.
                                              15 U.S.C. 78c(f).                                          Persons submitting comments are                        16 17   CFR 200.30–3(a)(12).



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Document Created: 2018-11-02 11:10:12
Document Modified: 2018-11-02 11:10:12
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 23757 

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