83_FR_28803 83 FR 28684 - Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Related to Physical Port Fees for BYX

83 FR 28684 - Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Related to Physical Port Fees for BYX

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 119 (June 20, 2018)

Page Range28684-28685
FR Document2018-13167

Federal Register, Volume 83 Issue 119 (Wednesday, June 20, 2018)
[Federal Register Volume 83, Number 119 (Wednesday, June 20, 2018)]
[Notices]
[Pages 28684-28685]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-13167]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83441; File No. SR-CboeBYX-2018-006]


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

June 14, 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 June 1, 2018, Cboe BYX Exchange, Inc. (the ``Exchange'' or 
``BYX'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II 
and III below, which Items have been prepared by the Exchange. The 
Exchange has designated the proposed rule change as one establishing or 
changing a member due, fee, or other charge imposed by the Exchange 
under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) 
thereunder,\4\ which renders the proposed rule change effective upon 
filing with the Commission. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

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

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

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

1. Purpose
    The Exchange proposes to implement proposed changes to its fee 
schedule relating to physical connectivity fees, effective June 1, 
2018. By way of background, a physical port is utilized by a Member or 
non-Member to connect to the Exchange at the data centers where the 
Exchange's servers are located. The Exchange currently maintains a 
presence in two third-party data centers: (i) The primary data center 
where the Exchange's business is primarily conducted on a daily basis, 
and (ii) a secondary data center, which is predominantly maintained for 
business continuity purposes. The Exchange currently assesses the 
following physical connectivity fees for Members and non-Members on a 
monthly basis: $2,000 per physical port for a 1 gigabyte circuit and 
$7,000 per physical port for a 10 gigabyte circuit. The Exchange 
proposes to increase the fees per physical ports from (i) $2,000 to 
$2,500 per month, per port for a 1 gigabyte circuit and (ii) $7,000 to 
$7,500 per month, per port for a 10 gigabyte circuit. The Exchange 
notes the proposed fees enable it to continue to maintain and improve 
its market technology and services and also notes that the proposed fee 
changes are in line with the amounts assessed by other exchanges for 
similar connections.\6\
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    \6\ See e.g., NYSE Arca Equities Fees and Charges, NYSE Arca 
Marketplace: Other Fees and Charges, Connectivity Fees. See also, 
Nasdaq Phlx LLC Pricing Schedule, Section XI, Direct Connectivity to 
Phlx.
---------------------------------------------------------------------------

    The Exchange also proposes to adopt separate physical port fees for 
connection to its secondary data center, which is predominantly 
maintained for business continuity purposes (``Disaster Recovery 
Systems''). Particularly, the Disaster Recovery Systems can be accessed 
via physical ports in Chicago. Members and Non-Members may maintain 
physical ports in order to be able to connect to the Disaster Recovery 
Systems in case of a disaster. Currently, physical ports that are used 
to connect to the Disaster Recovery Systems are assessed the same fees 
as physical ports used to connect to the Exchange's trading system. The 
Exchange proposes to establish separate pricing for physical ports that 
are used to connect to the Disaster Recovery Systems (``Disaster 
Recovery Physical Ports''). Specifically, the Exchange proposes to 
assess a monthly fee of $2,000 per 1 gigabyte Disaster Recovery 
Physical Port and a monthly fee of $6,000 per 10 gigabyte Disaster 
Recovery Physical Port. This amount will continue to enable the 
Exchange to maintain the Disaster Recovery Physical Ports in case they 
become necessary. The Exchange notes that the Disaster Recovery 
Physical Ports may also be used to access the Disaster Recovery Systems 
for the following affiliate exchanges Cboe BZX Exchange, Inc., Cboe 
EDGX Exchange, Inc., Cboe EDGA Exchange, Inc., Cboe C2 Exchange, Inc., 
Cboe Exchange, Inc. and Cboe Futures Exchange, LLC as well. The 
Exchange proposes to provide that market participants will only be 
assessed a single fee for any Disaster Recovery Physical Port that also 
accesses the Disaster Recover Systems for these exchanges.\7\
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    \7\ For example, if a market participant uses a 1 gigabyte 
Disaster Recovery Physical Port to connect to the Disaster Recovery 
Systems for both BYX and EDGX, the market participant would only be 
assessed one monthly fee of $2,000.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 of the Act,\8\ in general, and 
furthers the objectives of Section 6(b)(4),\9\ in particular, as it is 
designed to provide for the equitable allocation of reasonable dues, 
fees and other charges among its Members and other persons using its 
facilities. The Exchange also notes that it operates in a highly-
competitive market in which market participants can readily direct 
order flow to competing venues if they deem fee levels at a particular 
venue to be excessive. The proposed rule change reflects a competitive 
pricing structure designed to incent market participants to direct 
their order flow to the Exchange.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f.
    \9\ 15 U.S.C. 78f(b)(4).
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    The Exchange believes that the proposed changes are equitable and 
non-discriminatory in that it applies uniformly to all Members. Members 
and

[[Page 28685]]

non-Members will continue to choose whether they want more than one 
physical port and/or Disaster Recovery Physical Port and choose the 
method of connectivity based on their specific needs. All Members that 
voluntarily select various service options will be charged the same 
amount for the same services.
    The Exchange believes that the proposal represents an equitable 
allocation of reasonable dues, fees, and other charges as its fees for 
physical connectivity are reasonably constrained by competitive 
alternatives. If a particular exchange charges excessive fees for 
connectivity, affected Members and non-Members may opt to terminate 
their connectivity arrangements with that exchange, and adopt a 
possible range of alternative strategies, including routing to the 
applicable exchange through another participant or market center or 
taking that exchange's data indirectly. Accordingly, if the Exchange 
charges excessive fees, it would stand to lose not only connectivity 
revenues but also revenues associated with the execution of orders 
routed to it, and, to the extent applicable, market data revenues. The 
Exchange believes that this competitive dynamic imposes powerful 
restraints on the ability of any exchange to charge unreasonable fees 
for connectivity.
    Furthermore, the proposed rule change is also an equitable 
allocation of reasonable dues, fees, and other charges as the Exchange 
believes that the proposed increased physical port fees will enable it 
to cover its infrastructure costs associated with establishing physical 
ports to connect to the Exchange's systems. The additional revenue from 
the increased fees will also enable the Exchange to continue to 
maintain and improve its market technology and services. Similarly, the 
Exchange believes the proposed fees for the Disaster Recovery Physical 
Ports will allow the Exchange to maintain the Disaster Recovery 
Physical Ports in case they become necessary.
    Lastly, the Exchange believes the fees remain competitive with 
those charged by other venues and therefore continue to be reasonable 
and equitably allocated to Members.\10\
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    \10\ See e.g., NYSE Arca Equities Fees and Charges, NYSE Arca 
Marketplace: Other Fees and Charges, Connectivity Fees. See also, 
Nasdaq Phlx LLC Pricing Schedule, Section XI, Direct Connectivity to 
Phlx.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. As discussed above, the 
Exchange believes that fees for connectivity are constrained by the 
robust competition for order flow among exchanges and non-exchange 
markets. The Exchange does not believe that the proposed changes 
represent a significant departure from previous pricing offered by the 
Exchange or pricing offered by the Exchange's competitors. 
Additionally, Members may opt to disfavor the Exchange's pricing if 
they believe that alternatives offer them better value. Further, 
excessive fees for connectivity would serve to impair an exchange's 
ability to compete for order flow rather than burdening competition.

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

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

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \11\ and paragraph (f) of Rule 19b-4 
thereunder.\12\ At any time within 60 days of the filing of the 
proposed rule change, the Commission summarily may temporarily suspend 
such rule change if it appears to the Commission that such action is 
necessary or appropriate in the public interest, for the protection of 
investors, or otherwise in furtherance of the purposes of the Act.
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-CboeBYX-2018-006 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-2018-006. 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 this filing will also be available for inspection 
and copying at the principal office of the Exchange. All comments 
received will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-CboeBYX-2018-006 and should be submitted 
on or before July 11, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-13167 Filed 6-19-18; 8:45 am]
BILLING CODE 8011-01-P



                                                28684                        Federal Register / Vol. 83, No. 119 / Wednesday, June 20, 2018 / Notices

                                                  For the Commission, by the Division of                II. Self-Regulatory Organization’s                     accessed via physical ports in Chicago.
                                                Trading and Markets, pursuant to delegated              Statement of the Purpose of, and                       Members and Non-Members may
                                                authority.16                                            Statutory Basis for, the Proposed Rule                 maintain physical ports in order to be
                                                Eduardo A. Aleman,                                      Change                                                 able to connect to the Disaster Recovery
                                                Assistant Secretary.                                       In its filing with the Commission, the              Systems in case of a disaster. Currently,
                                                [FR Doc. 2018–13161 Filed 6–19–18; 8:45 am]             Exchange included statements                           physical ports that are used to connect
                                                BILLING CODE 8011–01–P                                  concerning the purpose of and basis for                to the Disaster Recovery Systems are
                                                                                                        the proposed rule change and discussed                 assessed the same fees as physical ports
                                                                                                        any comments it received on the                        used to connect to the Exchange’s
                                                SECURITIES AND EXCHANGE                                 proposed rule change. The text of these                trading system. The Exchange proposes
                                                COMMISSION                                              statements may be examined at the                      to establish separate pricing for physical
                                                                                                        places specified in Item IV below. The                 ports that are used to connect to the
                                                [Release No. 34–83441; File No. SR–                     Exchange has prepared summaries, set                   Disaster Recovery Systems (‘‘Disaster
                                                CboeBYX–2018–006]                                       forth in Sections A, B, and C below, of                Recovery Physical Ports’’). Specifically,
                                                                                                        the most significant parts of such                     the Exchange proposes to assess a
                                                Self-Regulatory Organizations; Cboe                     statements.                                            monthly fee of $2,000 per 1 gigabyte
                                                BYX Exchange, Inc.; Notice of Filing                                                                           Disaster Recovery Physical Port and a
                                                and Immediate Effectiveness of                          A. Self-Regulatory Organization’s                      monthly fee of $6,000 per 10 gigabyte
                                                Proposed Rule Change Related to                         Statement of the Purpose of, and the                   Disaster Recovery Physical Port. This
                                                Physical Port Fees for BYX                              Statutory Basis for, the Proposed Rule                 amount will continue to enable the
                                                                                                        Change                                                 Exchange to maintain the Disaster
                                                June 14, 2018.                                                                                                 Recovery Physical Ports in case they
                                                                                                        1. Purpose
                                                   Pursuant to Section 19(b)(1) of the                                                                         become necessary. The Exchange notes
                                                Securities Exchange Act of 1934 (the                       The Exchange proposes to implement                  that the Disaster Recovery Physical
                                                ‘‘Act’’),1 and Rule 19b–4 thereunder,2                  proposed changes to its fee schedule                   Ports may also be used to access the
                                                notice is hereby given that on June 1,                  relating to physical connectivity fees,                Disaster Recovery Systems for the
                                                2018, Cboe BYX Exchange, Inc. (the                      effective June 1, 2018. By way of                      following affiliate exchanges Cboe BZX
                                                ‘‘Exchange’’ or ‘‘BYX’’) filed with the                 background, a physical port is utilized                Exchange, Inc., Cboe EDGX Exchange,
                                                Securities and Exchange Commission                      by a Member or non-Member to connect                   Inc., Cboe EDGA Exchange, Inc., Cboe
                                                (‘‘Commission’’) the proposed rule                      to the Exchange at the data centers                    C2 Exchange, Inc., Cboe Exchange, Inc.
                                                                                                        where the Exchange’s servers are                       and Cboe Futures Exchange, LLC as
                                                change as described in Items I, II and III
                                                                                                        located. The Exchange currently                        well. The Exchange proposes to provide
                                                below, which Items have been prepared
                                                                                                        maintains a presence in two third-party                that market participants will only be
                                                by the Exchange. The Exchange has
                                                                                                        data centers: (i) The primary data center              assessed a single fee for any Disaster
                                                designated the proposed rule change as
                                                                                                        where the Exchange’s business is                       Recovery Physical Port that also
                                                one establishing or changing a member
                                                                                                        primarily conducted on a daily basis,                  accesses the Disaster Recover Systems
                                                due, fee, or other charge imposed by the
                                                                                                        and (ii) a secondary data center, which                for these exchanges.7
                                                Exchange under Section 19(b)(3)(A)(ii)
                                                                                                        is predominantly maintained for
                                                of the Act 3 and Rule 19b–4(f)(2)                                                                              2. Statutory Basis
                                                                                                        business continuity purposes. The
                                                thereunder,4 which renders the                          Exchange currently assesses the
                                                proposed rule change effective upon                                                                               The Exchange believes that the
                                                                                                        following physical connectivity fees for               proposed rule change is consistent with
                                                filing with the Commission. The                         Members and non-Members on a
                                                Commission is publishing this notice to                                                                        the objectives of Section 6 of the Act,8
                                                                                                        monthly basis: $2,000 per physical port                in general, and furthers the objectives of
                                                solicit comments on the proposed rule                   for a 1 gigabyte circuit and $7,000 per
                                                change from interested persons.                                                                                Section 6(b)(4),9 in particular, as it is
                                                                                                        physical port for a 10 gigabyte circuit.               designed to provide for the equitable
                                                I. Self-Regulatory Organization’s                       The Exchange proposes to increase the                  allocation of reasonable dues, fees and
                                                Statement of the Terms of Substance of                  fees per physical ports from (i) $2,000                other charges among its Members and
                                                the Proposed Rule Change                                to $2,500 per month, per port for a 1                  other persons using its facilities. The
                                                                                                        gigabyte circuit and (ii) $7,000 to $7,500             Exchange also notes that it operates in
                                                   The Exchange filed a proposal to                     per month, per port for a 10 gigabyte                  a highly-competitive market in which
                                                amend its fees and rebates applicable to                circuit. The Exchange notes the                        market participants can readily direct
                                                Members 5 and non-Members of the                        proposed fees enable it to continue to                 order flow to competing venues if they
                                                Exchange pursuant to BYX Rule 15.1(a)                   maintain and improve its market                        deem fee levels at a particular venue to
                                                and (c) to modify its fees for physical                 technology and services and also notes                 be excessive. The proposed rule change
                                                ports.                                                  that the proposed fee changes are in line              reflects a competitive pricing structure
                                                   The text of the proposed rule change                 with the amounts assessed by other                     designed to incent market participants
                                                is available at the Exchange’s website at               exchanges for similar connections.6                    to direct their order flow to the
                                                www.markets.cboe.com, at the principal                     The Exchange also proposes to adopt                 Exchange.
                                                office of the Exchange, and at the                      separate physical port fees for                           The Exchange believes that the
                                                Commission’s Public Reference Room.                     connection to its secondary data center,               proposed changes are equitable and
                                                                                                        which is predominantly maintained for                  non-discriminatory in that it applies
                                                                                                        business continuity purposes (‘‘Disaster
sradovich on DSK3GMQ082PROD with NOTICES




                                                  16 17 CFR 200.30–3(a)(12).                                                                                   uniformly to all Members. Members and
                                                  1 15 U.S.C. 78s(b)(1).                                Recovery Systems’’). Particularly, the
                                                  2 17 CFR 240.19b–4.                                   Disaster Recovery Systems can be                         7 For example, if a market participant uses a 1
                                                  3 15 U.S.C. 78s(b)(3)(A)(ii).                                                                                gigabyte Disaster Recovery Physical Port to connect
                                                  4 17 CFR 240.19b–4(f)(2).                               6 See e.g., NYSE Arca Equities Fees and Charges,     to the Disaster Recovery Systems for both BYX and
                                                  5 The term ‘‘Member’’ is defined as ‘‘any             NYSE Arca Marketplace: Other Fees and Charges,         EDGX, the market participant would only be
                                                registered broker or dealer that has been admitted      Connectivity Fees. See also, Nasdaq Phlx LLC           assessed one monthly fee of $2,000.
                                                                                                                                                                 8 15 U.S.C. 78f.
                                                to membership in the Exchange.’’ See Exchange           Pricing Schedule, Section XI, Direct Connectivity to
                                                Rule 1.5(n).                                            Phlx.                                                    9 15 U.S.C. 78f(b)(4).




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                                                                             Federal Register / Vol. 83, No. 119 / Wednesday, June 20, 2018 / Notices                                                      28685

                                                non-Members will continue to choose                     necessary or appropriate in furtherance                    Commission, 100 F Street NE,
                                                whether they want more than one                         of the purposes of the Act. As discussed                   Washington, DC 20549–1090.
                                                physical port and/or Disaster Recovery                  above, the Exchange believes that fees                     All submissions should refer to File
                                                Physical Port and choose the method of                  for connectivity are constrained by the                    Number SR–CboeBYX–2018–006. This
                                                connectivity based on their specific                    robust competition for order flow among                    file number should be included on the
                                                needs. All Members that voluntarily                     exchanges and non-exchange markets.                        subject line if email is used. To help the
                                                select various service options will be                  The Exchange does not believe that the                     Commission process and review your
                                                charged the same amount for the same                    proposed changes represent a significant                   comments more efficiently, please use
                                                services.                                               departure from previous pricing offered                    only one method. The Commission will
                                                   The Exchange believes that the                       by the Exchange or pricing offered by                      post all comments on the Commission’s
                                                proposal represents an equitable                        the Exchange’s competitors.                                internet website (http://www.sec.gov/
                                                allocation of reasonable dues, fees, and                Additionally, Members may opt to                           rules/sro.shtml). Copies of the
                                                other charges as its fees for physical                  disfavor the Exchange’s pricing if they                    submission, all subsequent
                                                connectivity are reasonably constrained                 believe that alternatives offer them                       amendments, all written statements
                                                by competitive alternatives. If a                       better value. Further, excessive fees for                  with respect to the proposed rule
                                                particular exchange charges excessive                   connectivity would serve to impair an                      change that are filed with the
                                                fees for connectivity, affected Members                 exchange’s ability to compete for order                    Commission, and all written
                                                and non-Members may opt to terminate                    flow rather than burdening competition.                    communications relating to the
                                                their connectivity arrangements with                                                                               proposed rule change between the
                                                that exchange, and adopt a possible                     C. Self-Regulatory Organization’s
                                                                                                        Statement on Comments on the                               Commission and any person, other than
                                                range of alternative strategies, including                                                                         those that may be withheld from the
                                                routing to the applicable exchange                      Proposed Rule Change Received From
                                                                                                        Members, Participants, or Others                           public in accordance with the
                                                through another participant or market                                                                              provisions of 5 U.S.C. 552, will be
                                                center or taking that exchange’s data                     The Exchange has not solicited, and                      available for website viewing and
                                                indirectly. Accordingly, if the Exchange                does not intend to solicit, comments on                    printing in the Commission’s Public
                                                charges excessive fees, it would stand to               this proposed rule change. The                             Reference Room, 100 F Street NE,
                                                lose not only connectivity revenues but                 Exchange has not received any                              Washington, DC 20549, on official
                                                also revenues associated with the                       unsolicited written comments from                          business days between the hours of
                                                execution of orders routed to it, and, to               Members or other interested parties.                       10:00 a.m. and 3:00 p.m. Copies of this
                                                the extent applicable, market data
                                                                                                        III. Date of Effectiveness of the                          filing will also be available for
                                                revenues. The Exchange believes that
                                                                                                        Proposed Rule Change and Timing for                        inspection and copying at the principal
                                                this competitive dynamic imposes
                                                                                                        Commission Action                                          office of the Exchange. All comments
                                                powerful restraints on the ability of any
                                                                                                                                                                   received will be posted without change.
                                                exchange to charge unreasonable fees                       The foregoing rule change has become                    Persons submitting comments are
                                                for connectivity.                                       effective pursuant to Section 19(b)(3)(A)
                                                   Furthermore, the proposed rule                                                                                  cautioned that we do not redact or edit
                                                                                                        of the Act 11 and paragraph (f) of Rule                    personal identifying information from
                                                change is also an equitable allocation of               19b–4 thereunder.12 At any time within
                                                reasonable dues, fees, and other charges                                                                           comment submissions. You should
                                                                                                        60 days of the filing of the proposed rule                 submit only information that you wish
                                                as the Exchange believes that the                       change, the Commission summarily may
                                                proposed increased physical port fees                                                                              to make available publicly. All
                                                                                                        temporarily suspend such rule change if                    submissions should refer to File
                                                will enable it to cover its infrastructure              it appears to the Commission that such
                                                costs associated with establishing                                                                                 Number SR–CboeBYX–2018–006 and
                                                                                                        action is necessary or appropriate in the                  should be submitted on or before July
                                                physical ports to connect to the                        public interest, for the protection of
                                                Exchange’s systems. The additional                                                                                 11, 2018.
                                                                                                        investors, or otherwise in furtherance of
                                                revenue from the increased fees will                    the purposes of the Act.                                     For the Commission, by the Division of
                                                also enable the Exchange to continue to                                                                            Trading and Markets, pursuant to delegated
                                                maintain and improve its market                         IV. Solicitation of Comments                               authority.13
                                                technology and services. Similarly, the                   Interested persons are invited to                        Eduardo A. Aleman,
                                                Exchange believes the proposed fees for                 submit written data, views, and                            Assistant Secretary.
                                                the Disaster Recovery Physical Ports                    arguments concerning the foregoing,                        [FR Doc. 2018–13167 Filed 6–19–18; 8:45 am]
                                                will allow the Exchange to maintain the                 including whether the proposed rule                        BILLING CODE 8011–01–P
                                                Disaster Recovery Physical Ports in case                change is consistent with the Act.
                                                they become necessary.                                  Comments may be submitted by any of
                                                   Lastly, the Exchange believes the fees               the following methods:                                     SECURITIES AND EXCHANGE
                                                remain competitive with those charged                                                                              COMMISSION
                                                by other venues and therefore continue                  Electronic Comments
                                                to be reasonable and equitably allocated                                                                           [Release No. 34–83429; File No. SR–
                                                                                                          • Use the Commission’s internet                          CboeBZX–2018–038]
                                                to Members.10                                           comment form (http://www.sec.gov/
                                                B. Self-Regulatory Organization’s                       rules/sro.shtml); or                                       Self-Regulatory Organizations; Cboe
                                                Statement on Burden on Competition                        • Send an email to rule-comments@                        BZX Exchange, Inc.; Notice of Filing
                                                                                                        sec.gov. Please include File Number SR–                    and Immediate Effectiveness of
                                                  The Exchange does not believe that
sradovich on DSK3GMQ082PROD with NOTICES




                                                                                                        CboeBYX–2018–006 on the subject line.                      Proposed Rule Change Related to
                                                the proposed rule change will impose
                                                any burden on competition not                           Paper Comments                                             Physical Port Fees for BZX Options
                                                                                                          • Send paper comments in triplicate                      June 14, 2018.
                                                  10 See e.g., NYSE Arca Equities Fees and Charges,
                                                                                                        to Secretary, Securities and Exchange                        Pursuant to Section 19(b)(1) of the
                                                NYSE Arca Marketplace: Other Fees and Charges,
                                                Connectivity Fees. See also, Nasdaq Phlx LLC                                                                       Securities Exchange Act of 1934
                                                                                                          11 15   U.S.C. 78s(b)(3)(A).
                                                Pricing Schedule, Section XI, Direct Connectivity to
                                                Phlx.                                                     12 17   CFR 240.19b–4(f).                                  13 17   CFR 200.30–3(a)(12).



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Document Created: 2018-06-20 00:20:27
Document Modified: 2018-06-20 00:20:27
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 28684 

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