83_FR_29010 83 FR 28890 - Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Physical Port Fees for EDGA

83 FR 28890 - Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Physical Port Fees for EDGA

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 120 (June 21, 2018)

Page Range28890-28891
FR Document2018-13298

Federal Register, Volume 83 Issue 120 (Thursday, June 21, 2018)
[Federal Register Volume 83, Number 120 (Thursday, June 21, 2018)]
[Notices]
[Pages 28890-28891]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-13298]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83449; File No. SR-CboeEDGA-2018-010]


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

June 15, 2018.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on June 1, 2018, Cboe EDGA Exchange, Inc. (the ``Exchange'' or 
``EDGA'') 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.
---------------------------------------------------------------------------

    \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 
EDGA 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 BYX 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 EDGA 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

[[Page 28891]]

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

    The Exchange believes that the proposed changes are equitable and 
non-discriminatory in that it applies uniformly to all Members. Members 
and 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\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

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

    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

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-CboeEDGA-2018-010 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to File Number SR-CboeEDGA-2018-010. 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-CboeEDGA-2018-010 and should be 
submitted on or before July 12, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-13298 Filed 6-20-18; 8:45 am]
 BILLING CODE 8011-01-P



                                              28890                         Federal Register / Vol. 83, No. 120 / Thursday, June 21, 2018 / Notices

                                              2017–012) be, and hereby is,                            Members 5 and non-Members of the                       with the amounts assessed by other
                                              approved.74                                             Exchange pursuant to EDGA Rule                         exchanges for similar connections.6
                                                It is therefore ordered pursuant to                   15.1(a) and (c) to modify its fees for                    The Exchange also proposes to adopt
                                              Section 19(b)(2) of the Act that the                    physical ports.                                        separate physical port fees for
                                              proposed rule change (SR–LCH SA–                           The text of the proposed rule change                connection to its secondary data center,
                                              2017–013) be, and hereby is,                            is available at the Exchange’s website at              which is predominantly maintained for
                                              approved.75                                             www.markets.cboe.com, at the principal                 business continuity purposes (‘‘Disaster
                                                For the Commission, by the Division of
                                                                                                      office of the Exchange, and at the                     Recovery Systems’’). Particularly, the
                                              Trading and Markets, pursuant to delegated              Commission’s Public Reference Room.                    Disaster Recovery Systems can be
                                              authority.76                                                                                                   accessed via physical ports in Chicago.
                                                                                                      II. Self-Regulatory Organization’s
                                              Eduardo A. Aleman,                                                                                             Members and Non-Members may
                                                                                                      Statement of the Purpose of, and
                                                                                                                                                             maintain physical ports in order to be
                                              Assistant Secretary.                                    Statutory Basis for, the Proposed Rule
                                                                                                                                                             able to connect to the Disaster Recovery
                                              [FR Doc. 2018–13300 Filed 6–20–18; 8:45 am]             Change
                                                                                                                                                             Systems in case of a disaster. Currently,
                                              BILLING CODE 8011–01–P                                     In its filing with the Commission, the              physical ports that are used to connect
                                                                                                      Exchange included statements                           to the Disaster Recovery Systems are
                                                                                                      concerning the purpose of and basis for                assessed the same fees as physical ports
                                              SECURITIES AND EXCHANGE                                 the proposed rule change and discussed                 used to connect to the Exchange’s
                                              COMMISSION                                              any comments it received on the                        trading system. The Exchange proposes
                                              [Release No. 34–83449; File No. SR–                     proposed rule change. The text of these                to establish separate pricing for physical
                                              CboeEDGA–2018–010]                                      statements may be examined at the                      ports that are used to connect to the
                                                                                                      places specified in Item IV below. The                 Disaster Recovery Systems (‘‘Disaster
                                              Self-Regulatory Organizations; Cboe                     Exchange has prepared summaries, set                   Recovery Physical Ports’’). Specifically,
                                              EDGA Exchange, Inc.; Notice of Filing                   forth in Sections A, B, and C below, of                the Exchange proposes to assess a
                                              and Immediate Effectiveness of a                        the most significant parts of such                     monthly fee of $2,000 per 1 gigabyte
                                              Proposed Rule Change Related to                         statements.                                            Disaster Recovery Physical Port and a
                                              Physical Port Fees for EDGA                                                                                    monthly fee of $6,000 per 10 gigabyte
                                                                                                      A. Self-Regulatory Organization’s
                                              June 15, 2018.                                          Statement of the Purpose of, and the                   Disaster Recovery Physical Port. This
                                                                                                      Statutory Basis for, the Proposed Rule                 amount will continue to enable the
                                                 Pursuant to Section 19(b)(1) of the
                                                                                                      Change                                                 Exchange to maintain the Disaster
                                              Securities Exchange Act of 1934 (the
                                                                                                                                                             Recovery Physical Ports in case they
                                              ‘‘Act’’),1 and Rule 19b–4 thereunder,2                  1. Purpose                                             become necessary. The Exchange notes
                                              notice is hereby given that on June 1,
                                                                                                         The Exchange proposes to implement                  that the Disaster Recovery Physical
                                              2018, Cboe EDGA Exchange, Inc. (the
                                                                                                      proposed changes to its fee schedule                   Ports may also be used to access the
                                              ‘‘Exchange’’ or ‘‘EDGA’’) filed with the                                                                       Disaster Recovery Systems for the
                                              Securities and Exchange Commission                      relating to physical connectivity fees,
                                                                                                      effective June 1, 2018. By way of                      following affiliate exchanges Cboe BZX
                                              (‘‘Commission’’) the proposed rule                                                                             Exchange, Inc., Cboe EDGX Exchange,
                                              change as described in Items I, II and III              background, a physical port is utilized
                                                                                                      by a Member or non-Member to connect                   Inc., Cboe BYX Exchange, Inc., Cboe C2
                                              below, which Items have been prepared                                                                          Exchange, Inc., Cboe Exchange, Inc. and
                                              by the Exchange. The Exchange has                       to the Exchange at the data centers
                                                                                                      where the Exchange’s servers are                       Cboe Futures Exchange, LLC as well.
                                              designated the proposed rule change as                                                                         The Exchange proposes to provide that
                                              one establishing or changing a member                   located. The Exchange currently
                                                                                                      maintains a presence in two third-party                market participants will only be
                                              due, fee, or other charge imposed by the                                                                       assessed a single fee for any Disaster
                                              Exchange under Section 19(b)(3)(A)(ii)                  data centers: (i) The primary data center
                                                                                                      where the Exchange’s business is                       Recovery Physical Port that also
                                              of the Act 3 and Rule 19b–4(f)(2)                                                                              accesses the Disaster Recover Systems
                                              thereunder,4 which renders the                          primarily conducted on a daily basis,
                                                                                                      and (ii) a secondary data center, which                for these exchanges.7
                                              proposed rule change effective upon
                                              filing with the Commission. The                         is predominantly maintained for                        2. Statutory Basis
                                              Commission is publishing this notice to                 business continuity purposes. The                         The Exchange believes that the
                                              solicit comments on the proposed rule                   Exchange currently assesses the                        proposed rule change is consistent with
                                              change from interested persons.                         following physical connectivity fees for               the objectives of Section 6 of the Act,8
                                                                                                      Members and non-Members on a                           in general, and furthers the objectives of
                                              I. Self-Regulatory Organization’s                       monthly basis: $2,000 per physical port
                                              Statement of the Terms of Substance of                                                                         Section 6(b)(4),9 in particular, as it is
                                                                                                      for a 1 gigabyte circuit and $7,000 per                designed to provide for the equitable
                                              the Proposed Rule Change                                physical port for a 10 gigabyte circuit.               allocation of reasonable dues, fees and
                                                The Exchange filed a proposal to                      The Exchange proposes to increase the                  other charges among its Members and
                                              amend its fees and rebates applicable to                fees per physical ports from (i) $2,000                other persons using its facilities. The
                                                                                                      to $2,500 per month, per port for a 1                  Exchange also notes that it operates in
                                                 74 In approving the proposed rule change, the        gigabyte circuit and (ii) $7,000 to $7,500
                                              Commission considered the proposal’s impacts on         per month, per port for a 10 gigabyte                    6 See e.g., NYSE Arca Equities Fees and Charges,
                                              efficiency, competition, and capital formation. 15      circuit. The Exchange notes the                        NYSE Arca Marketplace: Other Fees and Charges,
                                              U.S.C. 78c(f).
                                                 75 In approving the proposed rule change, the
                                                                                                      proposed fees enable it to continue to                 Connectivity Fees. See also, Nasdaq Phlx LLC
amozie on DSK3GDR082PROD with NOTICES1




                                                                                                      maintain and improve its market                        Pricing Schedule, Section XI, Direct Connectivity to
                                              Commission considered the proposal’s impacts on                                                                Phlx.
                                              efficiency, competition, and capital formation. 15      technology and services and also notes                   7 For example, if a market participant uses a 1
                                              U.S.C. 78c(f).                                          that the proposed fee changes are in line              gigabyte Disaster Recovery Physical Port to connect
                                                 76 17 CFR 200.30–3(a)(12).
                                                                                                                                                             to the Disaster Recovery Systems for both EDGA
                                                 1 15 U.S.C. 78s(b)(1).
                                                                                                        5 The term ‘‘Member’’ is defined as ‘‘any            and EDGX, the market participant would only be
                                                 2 17 CFR 240.19b–4.                                                                                         assessed one monthly fee of $2,000.
                                                                                                      registered broker or dealer that has been admitted
                                                 3 15 U.S.C. 78s(b)(3)(A)(ii).                                                                                 8 15 U.S.C. 78f.
                                                                                                      to membership in the Exchange.’’ See Exchange
                                                 4 17 CFR 240.19b–4(f)(2).                            Rule 1.5(n).                                             9 15 U.S.C. 78f(b)(4).




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                                                                            Federal Register / Vol. 83, No. 120 / Thursday, June 21, 2018 / Notices                                                  28891

                                              a highly-competitive market in which                    to be reasonable and equitably allocated               Electronic Comments
                                              market participants can readily direct                  to Members.10
                                              order flow to competing venues if they                                                                            • Use the Commission’s internet
                                                                                                      B. Self-Regulatory Organization’s                      comment form (http://www.sec.gov/
                                              deem fee levels at a particular venue to
                                                                                                      Statement on Burden on Competition                     rules/sro.shtml); or
                                              be excessive. The proposed rule change
                                              reflects a competitive pricing structure                   The Exchange does not believe that                     • Send an email to rule-comments@
                                              designed to incent market participants                  the proposed rule change will impose                   sec.gov. Please include File Number SR–
                                              to direct their order flow to the                       any burden on competition not                          CboeEDGA–2018–010 on the subject
                                              Exchange.                                               necessary or appropriate in furtherance                line.
                                                 The Exchange believes that the                       of the purposes of the Act. As discussed
                                              proposed changes are equitable and                      above, the Exchange believes that fees                 Paper Comments
                                              non-discriminatory in that it applies                   for connectivity are constrained by the
                                              uniformly to all Members. Members and                   robust competition for order flow among                  • Send paper comments in triplicate
                                              non-Members will continue to choose                     exchanges and non-exchange markets.                    to Secretary, Securities and Exchange
                                              whether they want more than one                         The Exchange does not believe that the                 Commission, 100 F Street NE,
                                              physical port and/or Disaster Recovery                  proposed changes represent a significant               Washington, DC 20549–1090.
                                              Physical Port and choose the method of                  departure from previous pricing offered                All submissions should refer to File
                                              connectivity based on their specific                    by the Exchange or pricing offered by                  Number SR–CboeEDGA–2018–010. This
                                              needs. All Members that voluntarily                     the Exchange’s competitors.                            file number should be included on the
                                              select various service options will be                  Additionally, Members may opt to                       subject line if email is used. To help the
                                              charged the same amount for the same                    disfavor the Exchange’s pricing if they                Commission process and review your
                                              services.                                               believe that alternatives offer them
                                                 The Exchange believes that the                                                                              comments more efficiently, please use
                                                                                                      better value. Further, excessive fees for
                                              proposal represents an equitable                                                                               only one method. The Commission will
                                                                                                      connectivity would serve to impair an
                                              allocation of reasonable dues, fees, and                                                                       post all comments on the Commission’s
                                                                                                      exchange’s ability to compete for order
                                              other charges as its fees for physical                                                                         internet website (http://www.sec.gov/
                                                                                                      flow rather than burdening competition.
                                              connectivity are reasonably constrained                                                                        rules/sro.shtml). Copies of the
                                              by competitive alternatives. If a                       C. Self-Regulatory Organization’s                      submission, all subsequent
                                              particular exchange charges excessive                   Statement on Comments on the                           amendments, all written statements
                                              fees for connectivity, affected Members                 Proposed Rule Change Received From                     with respect to the proposed rule
                                              and non-Members may opt to terminate                    Members, Participants, or Others                       change that are filed with the
                                              their connectivity arrangements with                      The Exchange has not solicited, and                  Commission, and all written
                                              that exchange, and adopt a possible                     does not intend to solicit, comments on                communications relating to the
                                              range of alternative strategies, including              this proposed rule change. The                         proposed rule change between the
                                              routing to the applicable exchange                      Exchange has not received any                          Commission and any person, other than
                                              through another participant or market                   unsolicited written comments from                      those that may be withheld from the
                                              center or taking that exchange’s data                   Members or other interested parties.                   public in accordance with the
                                              indirectly. Accordingly, if the Exchange                                                                       provisions of 5 U.S.C. 552, will be
                                              charges excessive fees, it would stand to               III. Date of Effectiveness of the
                                                                                                      Proposed Rule Change and Timing for                    available for website viewing and
                                              lose not only connectivity revenues but                                                                        printing in the Commission’s Public
                                              also revenues associated with the                       Commission Action
                                                                                                                                                             Reference Room, 100 F Street NE,
                                              execution of orders routed to it, and, to                  The foregoing rule change has become                Washington, DC 20549, on official
                                              the extent applicable, market data                      effective pursuant to Section 19(b)(3)(A)              business days between the hours of
                                              revenues. The Exchange believes that                    of the Act 11 and paragraph (f) of Rule                10:00 a.m. and 3:00 p.m. Copies of this
                                              this competitive dynamic imposes                        19b–4 thereunder.12 At any time within                 filing will also be available for
                                              powerful restraints on the ability of any               60 days of the filing of the proposed rule             inspection and copying at the principal
                                              exchange to charge unreasonable fees                    change, the Commission summarily may
                                                                                                                                                             office of the Exchange. All comments
                                              for connectivity.                                       temporarily suspend such rule change if
                                                 Furthermore, the proposed rule                                                                              received will be posted without change.
                                                                                                      it appears to the Commission that such
                                              change is also an equitable allocation of                                                                      Persons submitting comments are
                                                                                                      action is necessary or appropriate in the
                                              reasonable dues, fees, and other charges                                                                       cautioned that we do not redact or edit
                                                                                                      public interest, for the protection of
                                              as the Exchange believes that the                                                                              personal identifying information from
                                                                                                      investors, or otherwise in furtherance of
                                              proposed increased physical port fees                   the purposes of the Act.                               comment submissions. You should
                                              will enable it to cover its infrastructure                                                                     submit only information that you wish
                                              costs associated with establishing                      IV. Solicitation of Comments                           to make available publicly. All
                                              physical ports to connect to the                          Interested persons are invited to                    submissions should refer to File
                                              Exchange’s systems. The additional                      submit written data, views, and                        Number SR–CboeEDGA–2018–010 and
                                              revenue from the increased fees will                    arguments concerning the foregoing,                    should be submitted on or before July
                                              also enable the Exchange to continue to                 including whether the proposed rule                    12, 2018.
                                              maintain and improve its market                         change is consistent with the Act.                       For the Commission, by the Division of
                                              technology and services. Similarly, the                 Comments may be submitted by any of                    Trading and Markets, pursuant to delegated
                                              Exchange believes the proposed fees for                 the following methods:                                 authority.13
amozie on DSK3GDR082PROD with NOTICES1




                                              the Disaster Recovery Physical Ports                                                                           Eduardo A. Aleman,
                                              will allow the Exchange to maintain the                   10 See e.g., NYSE Arca Equities Fees and Charges,

                                                                                                      NYSE Arca Marketplace: Other Fees and Charges,         Assistant Secretary.
                                              Disaster Recovery Physical Ports in case
                                                                                                      Connectivity Fees. See also, Nasdaq Phlx LLC           [FR Doc. 2018–13298 Filed 6–20–18; 8:45 am]
                                              they become necessary.                                  Pricing Schedule, Section XI, Direct Connectivity to
                                                 Lastly, the Exchange believes the fees               Phlx.                                                  BILLING CODE 8011–01–P
                                              remain competitive with those charged                     11 15 U.S.C. 78s(b)(3)(A).

                                              by other venues and therefore continue                    12 17 CFR 240.19b–4(f).                                13 17   CFR 200.30–3(a)(12).



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Document Created: 2018-06-21 01:23:25
Document Modified: 2018-06-21 01:23:25
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 28890 

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