83_FR_3248 83 FR 3233 - Self-Regulatory Organizations; CBOE EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Harmonize the Definition of Non-Professional User in Its Fee Schedule With That of Its Affiliates

83 FR 3233 - Self-Regulatory Organizations; CBOE EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Harmonize the Definition of Non-Professional User in Its Fee Schedule With That of Its Affiliates

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 15 (January 23, 2018)

Page Range3233-3235
FR Document2018-01090

Federal Register, Volume 83 Issue 15 (Tuesday, January 23, 2018)
[Federal Register Volume 83, Number 15 (Tuesday, January 23, 2018)]
[Notices]
[Pages 3233-3235]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-01090]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82519; File No. SR- CboeEDGX-2018-002]


Self-Regulatory Organizations; CBOE EDGX Exchange, Inc.; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change To 
Harmonize the Definition of Non-Professional User in Its Fee Schedule 
With That of Its Affiliates

January 17, 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 January 8, 2018, Cboe EDGX Exchange, Inc. (the ``Exchange'' or 
``EDGX'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I and II 
below, which Items have been prepared by the Exchange. The Exchange has 
designated this proposal as a ``non-controversial'' proposed rule 
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with 
the Commission. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6)(iii).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange filed a proposal to amend the Market Data section of 
its fee schedule applicable to its equity options platform (``EDGX 
Options'') to harmonize the definition of ``Non-Professional User'' 
with that of its affiliates, Cboe Exchange, Inc. (``Cboe'') and Cboe C2 
Exchange, Inc. (``C2'').
    The text of the proposed rule change is available at the Exchange's 
website at www.markets.cboe.com, at the principal office of the 
Exchange, and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
Sections A, B, and C below, of the most significant parts of such 
statements.

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

1. Purpose
    The Exchange proposes to amend the Market Data section of its fee 
schedule applicable to EDGX Options to harmonize the definition of 
``Non-Professional User'' with that of its affiliates, Cboe and C2. In 
late 2016, the Exchange and its affiliates Cboe EDGA Exchange, Inc. 
(``EDGA''), Cboe BYX Exchange, Inc. (``BYX''), and Cboe BZX Exchange, 
Inc. (``BZX'') received approval to effect a merger (the

[[Page 3234]]

``Merger'') of the Exchange's parent company, Bats Global Markets, 
Inc., the parent of EDGA, EDGX, BYX, and BZX with CBOE Holding, Inc. 
(now known as Cboe Global Markets, Inc.) the parent company of Cboe and 
C2.\5\ In order to provide consistent rules and terminology amongst the 
Exchange, Cboe, and C2, the Exchange proposes to amend the definition 
of ``Non-Professional User'' to harmonize it with that of its 
affiliates, Cboe and C2. The EDGX Option's fee schedule currently 
defines ``Non-Professional User'' as:
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 79585 (December 16, 
2016), 82 FR 6961 (December 22, 2016) (SR-BatsEDGX-2016-60; SR-
BatsEDGA-2016-24; SR-BatsBYX-2017-29; and SR-BatsBYX-2016-68).

a natural person who is not: (i) registered or qualified in any 
capacity with the Commission, the Commodity Futures Trading 
Commission, any state securities agency, any securities exchange or 
association, or any commodities or futures contract market or 
association; (ii) engaged as an ``investment adviser'' as that term 
is defined in Section 202(a)(11) of the Investment Advisers Act of 
1940 (whether or not registered or qualified under that Act); or 
(iii) employed by a bank or other organization exempt from 
registration under federal or state securities laws to perform 
functions that would require registration or qualification if such 
---------------------------------------------------------------------------
functions were performed for an organization not so exempt.

    As amended, ``Non-Professional User'' would be defined as:

a natural person or qualifying trust that uses Data only for 
personal purposes and not for any commercial purpose and, for a 
natural person who works in the United States, is not: (i) 
registered or qualified in any capacity with the Securities and 
Exchange Commission, the Commodities Futures Trading Commission, any 
state securities agency, any securities exchange or association, or 
any commodities or futures contract market or association; (ii) 
engaged as an ``investment adviser'' as that term is defined in 
Section 202(a)(11) of the Investment Advisors Act of 1940 (whether 
or not registered or qualified under that Act); or (iii) employed by 
a bank or other organization exempt from registration under federal 
or state securities laws to perform functions that would require 
registration or qualification if such functions were performed for 
an organization not so exempt; or, for a natural person who works 
outside of the United States, does not perform the same functions as 
would disqualify such person as a Non-Professional User if he or she 
worked in the United States.

    The revised definition is substantially identical to the definition 
of ``Non-Professional User' included within the Cboe and C2 fee 
schedules.\6\ The Exchange's current definition of ``Non-Professional 
User'' does differ from that contained in the Cboe and C2 fee schedules 
in following minor, non-substantive ways. First, the harmonized 
definition will make clear that a Non-Professional User may be a 
natural person or qualifying trust that uses Data only for personal 
purposes and not for any commercial purpose. To date, the Exchange is 
not aware of any entity that receives an Exchange market data product 
would be deemed a qualifying trust and, therefore, has not had to 
determine whether such entity is a Professional or Non-Professional 
User under the prior definition. Second, the harmonized definition 
would specify that a natural person who works outside of the United 
States would not be deemed a Non-Professional User where that person 
does not perform the same functions as would disqualify such person as 
a Non-Professional User if he or she worked in the United States. The 
definition with regard to natural persons who work in the United States 
are substantively identical amongst the old and harmonized definition.
---------------------------------------------------------------------------

    \6\ See the Cboe fee schedule available at https://www.cboe.org/general-info/pdfframed?content=/publish/mdxfees/cboe-cds-fees-schedule-for-cboe-datafeeds.pdf§ion=SEC_MDX_CSM&title=Cboe%20CDS%20Fees%20Schedule 
and the C2 fee schedule available at https://www.cboe.org/general-info/pdfframed?content=/publish/mdxfees/c2-cds-fees-schedule.pdf§ion=SEC_MDX_CSM&title=C2%20CDS%20Fees%20Schedule.
---------------------------------------------------------------------------

    None of these differences impact the manner in which the Exchange 
would characterize a User and a Professional or Non-Professional. The 
harmonized definition would provide additional specificity while 
harmonizing the definition with that of its affiliates. Doing so would 
ensure consistent terms amongst the Exchange and its affiliates, 
thereby reducing the potential for confusion amongst market data 
subscribers regarding the type of User they may be considered by the 
Exchange.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 of the Act,\7\ in general, and 
furthers the objectives of Section 6(b)(5) of the Act \8\ in 
particular, in that it is designed to promote just and equitable 
principles of trade, to foster cooperation and coordination with 
persons engaged in facilitating transactions in securities, to remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system and, in general, to protect investors and the 
public interest. The harmonized definition of Non-Professional User is 
equitable, reasonable, and removes impediments to and perfect the 
mechanism of a free and open market and a national market system it 
would provide additional specificity while harmonizing the definition 
with that of its affiliates. Doing so would ensure consistent terms 
amongst the Exchange and its affiliates, thereby reducing the potential 
for confusion amongst market data subscribers regarding the type of 
User they may be considered by the Exchange.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f.
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed rule change will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act, as amended. The 
harmonized definition of Non-Professional User would have no impact on 
competition because it does not materially alter the definition.

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

    The Exchange has neither solicited nor received written comments on 
the proposed rule change.

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

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \9\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\10\ In addition, Rule 
19b-4(f)(6) requires a self-regulatory organization to give the 
Commission written notice of its intent to file the proposed rule 
change, along with a brief description and text of the proposed rule 
change, at least five business days prior to the date of filing of the 
proposed rule change, or such shorter time as designated by the 
Commission. The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \10\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    In its filing, the Exchange requested that the Commission waive the 
30-day operative delay in order to enable the Exchange to immediately 
ensure consistent use of terms amongst the Exchange and its affiliates, 
thereby reducing the potential for confusion

[[Page 3235]]

amongst market data subscribers regarding the type of User they may be 
considered by the Exchange. The Commission believes that such waiver is 
consistent with the protection of investors and the public interest. 
Therefore, the Commission designates the proposed rule change to be 
operative upon filing. For purposes only of waiving the 30-day 
operative delay, the Commission has also considered the proposed rule's 
impact on efficiency, competition, and capital formation.\11\
---------------------------------------------------------------------------

    \11\ See 15 U.S.C. 78c(f).
---------------------------------------------------------------------------

    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: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) otherwise in furtherance of the 
purposes of the Act. If the Commission takes such action, the 
Commission shall institute proceedings to determine whether the 
proposed rule should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-CboeEDGX-2018-002 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 CboeEDGX-2018-002. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (http://www.sec.gov/rules/sro.shtml). 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for website viewing and printing in 
the Commission's Public Reference Room, 100 F Street NE, Washington, DC 
20549 on official business days between the hours of 10:00 a.m. and 
3:00 p.m. Copies of the filing also will be available for inspection 
and copying at the principal office of the Exchange. All comments 
received will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number CboeEDGX-2018-002 and should be submitted 
on or before February 13, 2018.
---------------------------------------------------------------------------

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

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-01090 Filed 1-22-18; 8:45 am]
 BILLING CODE 8011-01-P



                                                                              Federal Register / Vol. 83, No. 15 / Tuesday, January 23, 2018 / Notices                                               3233

                                                III. Date of Effectiveness of the Advance               comments more efficiently, please use                   ‘‘Exchange’’ or ‘‘EDGX’’) filed with the
                                                Notice and Timing for Commission                        only one method. The Commission will                    Securities and Exchange Commission
                                                Action                                                  post all comments on the Commission’s                   (the ‘‘Commission’’) the proposed rule
                                                   The proposed change may be                           internet website (http://www.sec.gov/                   change as described in Items I and II
                                                implemented if the Commission does                      rules/sro.shtml). Copies of the                         below, which Items have been prepared
                                                not object to the proposed change                       submission, all subsequent                              by the Exchange. The Exchange has
                                                within 60 days of the later of (i) the date             amendments, all written statements                      designated this proposal as a ‘‘non-
                                                the proposed change was filed with the                  with respect to the advance notice that                 controversial’’ proposed rule change
                                                                                                        are filed with the Commission, and all                  pursuant to Section 19(b)(3)(A) of the
                                                Commission or (ii) the date any
                                                                                                        written communications relating to the                  Act 3 and Rule 19b–4(f)(6)(iii)
                                                additional information requested by the
                                                                                                        advance notice between the                              thereunder,4 which renders it effective
                                                Commission is received. OCC shall not
                                                                                                        Commission and any person, other than                   upon filing with the Commission. The
                                                implement the proposed change if the
                                                                                                        those that may be withheld from the                     Commission is publishing this notice to
                                                Commission has any objection to the
                                                                                                        public in accordance with the                           solicit comments on the proposed rule
                                                proposed change.
                                                                                                        provisions of 5 U.S.C. 552, will be                     change from interested persons.
                                                   The Commission may extend the
                                                period for review by an additional 60                   available for website viewing and                       I. Self-Regulatory Organization’s
                                                days if the proposed change raises novel                printing in the Commission’s Public                     Statement of the Terms of Substance of
                                                or complex issues, subject to the                       Reference Room, 100 F Street NE,                        the Proposed Rule Change
                                                Commission providing the clearing                       Washington, DC 20549 on official
                                                                                                        business days between the hours of                         The Exchange filed a proposal to
                                                agency with prompt written notice of                                                                            amend the Market Data section of its fee
                                                the extension. A proposed change may                    10:00 a.m. and 3:00 p.m. Copies of the
                                                                                                        filing also will be available for                       schedule applicable to its equity options
                                                be implemented in less than 60 days                                                                             platform (‘‘EDGX Options’’) to
                                                from the date the advance notice is                     inspection and copying at the principal
                                                                                                        office of OCC and on OCC’s website at                   harmonize the definition of ‘‘Non-
                                                filed, or the date further information                                                                          Professional User’’ with that of its
                                                requested by the Commission is                          https://www.theocc.com/components/
                                                                                                        docs/legal/rules_and_bylaws/sr_occ_17_                  affiliates, Cboe Exchange, Inc. (‘‘Cboe’’)
                                                received, if the Commission notifies the                                                                        and Cboe C2 Exchange, Inc. (‘‘C2’’).
                                                clearing agency in writing that it does                 810.pdf.
                                                                                                                                                                   The text of the proposed rule change
                                                not object to the proposed change and                      All comments received will be posted
                                                                                                                                                                is available at the Exchange’s website at
                                                authorizes the clearing agency to                       without change. Persons submitting
                                                                                                                                                                www.markets.cboe.com, at the principal
                                                implement the proposed change on an                     comments are cautioned that we do not
                                                                                                                                                                office of the Exchange, and at the
                                                earlier date, subject to any conditions                 redact or edit personal identifying
                                                                                                                                                                Commission’s Public Reference Room.
                                                imposed by the Commission.                              information from comment submissions.
                                                   OCC shall post notice on its website                 You should submit only information                      II. Self-Regulatory Organization’s
                                                of proposed changes that are                            that you wish to make available                         Statement of the Purpose of, and
                                                implemented.                                            publicly.                                               Statutory Basis for, the Proposed Rule
                                                   The proposal shall not take effect                      All submissions should refer to File                 Change
                                                until all regulatory actions required                   Number SR–OCC–2017–810 and should                          In its filing with the Commission, the
                                                with respect to the proposal are                        be submitted on or before February 13,                  Exchange included statements
                                                completed.                                              2018.                                                   concerning the purpose of and basis for
                                                                                                          By the Commission.                                    the proposed rule change and discussed
                                                IV. Solicitation of Comments                                                                                    any comments it received on the
                                                                                                        Eduardo A. Aleman,
                                                  Interested persons are invited to                     Assistant Secretary.                                    proposed rule change. The text of these
                                                submit written data, views and                          [FR Doc. 2018–01071 Filed 1–22–18; 8:45 am]
                                                                                                                                                                statements may be examined at the
                                                arguments concerning the foregoing,                                                                             places specified in Item IV below. The
                                                                                                        BILLING CODE 8011–01–P
                                                including whether the advance notice is                                                                         Exchange has prepared summaries, set
                                                consistent with the Clearing                                                                                    forth in Sections A, B, and C below, of
                                                Supervision Act. Comments may be                        SECURITIES AND EXCHANGE                                 the most significant parts of such
                                                submitted by any of the following                       COMMISSION                                              statements.
                                                methods:                                                                                                        A. Self-Regulatory Organization’s
                                                                                                        [Release No. 34–82519; File No. SR–
                                                Electronic Comments                                     CboeEDGX–2018–002]                                      Statement of the Purpose of, and
                                                                                                                                                                Statutory Basis for, the Proposed Rule
                                                  • Use the Commission’s internet                                                                               Change
                                                                                                        Self-Regulatory Organizations; CBOE
                                                comment form (http://www.sec.gov/
                                                                                                        EDGX Exchange, Inc.; Notice of Filing                   1. Purpose
                                                rules/sro.shtml); or
                                                                                                        and Immediate Effectiveness of a
                                                  • Send an email to rule-comments@                                                                                The Exchange proposes to amend the
                                                                                                        Proposed Rule Change To Harmonize
                                                sec.gov. Please include File Number SR–                                                                         Market Data section of its fee schedule
                                                                                                        the Definition of Non-Professional User
                                                OCC–2017–810 on the subject line.                                                                               applicable to EDGX Options to
                                                                                                        in Its Fee Schedule With That of Its
                                                Paper Comments                                          Affiliates                                              harmonize the definition of ‘‘Non-
                                                                                                                                                                Professional User’’ with that of its
                                                  • Send paper comments in triplicate                   January 17, 2018.                                       affiliates, Cboe and C2. In late 2016, the
                                                to Brent J. Fields, Secretary, Securities
sradovich on DSK3GMQ082PROD with NOTICES




                                                                                                           Pursuant to Section 19(b)(1) of the                  Exchange and its affiliates Cboe EDGA
                                                and Exchange Commission, 100 F Street                   Securities Exchange Act of 1934 (the                    Exchange, Inc. (‘‘EDGA’’), Cboe BYX
                                                NE, Washington, DC 20549.                               ‘‘Act’’),1 and Rule 19b–4 thereunder,2                  Exchange, Inc. (‘‘BYX’’), and Cboe BZX
                                                All submissions should refer to File                    notice is hereby given that on January 8,               Exchange, Inc. (‘‘BZX’’) received
                                                Number SR–OCC–2017–810. This file                       2018, Cboe EDGX Exchange, Inc. (the                     approval to effect a merger (the
                                                number should be included on the
                                                subject line if email is used. To help the                1 15   U.S.C. 78s(b)(1).                                3 15   U.S.C. 78s(b)(3)(A).
                                                Commission process and review your                        2 17   CFR 240.19b–4.                                   4 17   CFR 240.19b–4(f)(6)(iii).



                                           VerDate Sep<11>2014   17:59 Jan 22, 2018   Jkt 244001   PO 00000   Frm 00124    Fmt 4703   Sfmt 4703   E:\FR\FM\23JAN1.SGM     23JAN1


                                                3234                          Federal Register / Vol. 83, No. 15 / Tuesday, January 23, 2018 / Notices

                                                ‘‘Merger’’) of the Exchange’s parent                    Exchange’s current definition of ‘‘Non-                impediments to and perfect the
                                                company, Bats Global Markets, Inc., the                 Professional User’’ does differ from that              mechanism of a free and open market
                                                parent of EDGA, EDGX, BYX, and BZX                      contained in the Cboe and C2 fee                       and a national market system it would
                                                with CBOE Holding, Inc. (now known as                   schedules in following minor, non-                     provide additional specificity while
                                                Cboe Global Markets, Inc.) the parent                   substantive ways. First, the harmonized                harmonizing the definition with that of
                                                company of Cboe and C2.5 In order to                    definition will make clear that a Non-                 its affiliates. Doing so would ensure
                                                provide consistent rules and                            Professional User may be a natural                     consistent terms amongst the Exchange
                                                terminology amongst the Exchange,                       person or qualifying trust that uses Data              and its affiliates, thereby reducing the
                                                Cboe, and C2, the Exchange proposes to                  only for personal purposes and not for                 potential for confusion amongst market
                                                amend the definition of ‘‘Non-                          any commercial purpose. To date, the                   data subscribers regarding the type of
                                                Professional User’’ to harmonize it with                Exchange is not aware of any entity that               User they may be considered by the
                                                that of its affiliates, Cboe and C2. The                receives an Exchange market data                       Exchange.
                                                EDGX Option’s fee schedule currently                    product would be deemed a qualifying
                                                                                                        trust and, therefore, has not had to                   B. Self-Regulatory Organization’s
                                                defines ‘‘Non-Professional User’’ as:
                                                                                                        determine whether such entity is a                     Statement on Burden on Competition
                                                a natural person who is not: (i) registered or
                                                qualified in any capacity with the                      Professional or Non-Professional User                    The Exchange does not believe that
                                                Commission, the Commodity Futures                       under the prior definition. Second, the                the proposed rule change will result in
                                                Trading Commission, any state securities                harmonized definition would specify                    any burden on competition that is not
                                                agency, any securities exchange or                      that a natural person who works outside                necessary or appropriate in furtherance
                                                association, or any commodities or futures              of the United States would not be                      of the purposes of the Act, as amended.
                                                contract market or association; (ii) engaged as         deemed a Non-Professional User where                   The harmonized definition of Non-
                                                an ‘‘investment adviser’’ as that term is               that person does not perform the same                  Professional User would have no impact
                                                defined in Section 202(a)(11) of the                    functions as would disqualify such                     on competition because it does not
                                                Investment Advisers Act of 1940 (whether or
                                                not registered or qualified under that Act); or
                                                                                                        person as a Non-Professional User if he                materially alter the definition.
                                                (iii) employed by a bank or other                       or she worked in the United States. The
                                                                                                                                                               C. Self-Regulatory Organization’s
                                                organization exempt from registration under             definition with regard to natural persons
                                                                                                        who work in the United States are                      Statement on Comments on the
                                                federal or state securities laws to perform
                                                functions that would require registration or            substantively identical amongst the old                Proposed Rule Change Received From
                                                qualification if such functions were                    and harmonized definition.                             Members, Participants, or Others
                                                performed for an organization not so exempt.              None of these differences impact the                   The Exchange has neither solicited
                                                 As amended, ‘‘Non-Professional User’’                  manner in which the Exchange would                     nor received written comments on the
                                                would be defined as:                                    characterize a User and a Professional or              proposed rule change.
                                                                                                        Non-Professional. The harmonized
                                                a natural person or qualifying trust that uses                                                                 III. Date of Effectiveness of the
                                                Data only for personal purposes and not for
                                                                                                        definition would provide additional
                                                                                                                                                               Proposed Rule Change and Timing for
                                                any commercial purpose and, for a natural               specificity while harmonizing the
                                                                                                                                                               Commission Action
                                                person who works in the United States, is               definition with that of its affiliates.
                                                not: (i) registered or qualified in any capacity        Doing so would ensure consistent terms                    Because the foregoing proposed rule
                                                with the Securities and Exchange                        amongst the Exchange and its affiliates,               change does not: (i) Significantly affect
                                                Commission, the Commodities Futures                     thereby reducing the potential for                     the protection of investors or the public
                                                Trading Commission, any state securities                confusion amongst market data                          interest; (ii) impose any significant
                                                agency, any securities exchange or                      subscribers regarding the type of User                 burden on competition; and (iii) become
                                                association, or any commodities or futures              they may be considered by the                          operative for 30 days from the date on
                                                contract market or association; (ii) engaged as                                                                which it was filed, or such shorter time
                                                an ‘‘investment adviser’’ as that term is
                                                                                                        Exchange.
                                                defined in Section 202(a)(11) of the                                                                           as the Commission may designate, it has
                                                                                                        2. Statutory Basis                                     become effective pursuant to Section
                                                Investment Advisors Act of 1940 (whether or
                                                not registered or qualified under that Act); or            The Exchange believes that the                      19(b)(3)(A)(iii) of the Act 9 and
                                                (iii) employed by a bank or other                       proposed rule change is consistent with                subparagraph (f)(6) of Rule 19b–4
                                                organization exempt from registration under             the objectives of Section 6 of the Act,7               thereunder.10 In addition, Rule 19b–
                                                federal or state securities laws to perform             in general, and furthers the objectives of             4(f)(6) requires a self-regulatory
                                                functions that would require registration or            Section 6(b)(5) of the Act 8 in particular,            organization to give the Commission
                                                qualification if such functions were                    in that it is designed to promote just and             written notice of its intent to file the
                                                performed for an organization not so exempt;            equitable principles of trade, to foster
                                                or, for a natural person who works outside
                                                                                                                                                               proposed rule change, along with a brief
                                                                                                        cooperation and coordination with                      description and text of the proposed
                                                of the United States, does not perform the
                                                same functions as would disqualify such
                                                                                                        persons engaged in facilitating                        rule change, at least five business days
                                                person as a Non-Professional User if he or              transactions in securities, to remove                  prior to the date of filing of the
                                                she worked in the United States.                        impediments to and perfect the                         proposed rule change, or such shorter
                                                                                                        mechanism of a free and open market                    time as designated by the Commission.
                                                  The revised definition is substantially               and a national market system and, in
                                                identical to the definition of ‘‘Non-                                                                          The Exchange has satisfied this
                                                                                                        general, to protect investors and the                  requirement.
                                                Professional User’ included within the                  public interest. The harmonized                           In its filing, the Exchange requested
                                                Cboe and C2 fee schedules.6 The                         definition of Non-Professional User is                 that the Commission waive the 30-day
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                                                  5 See Securities Exchange Act Release No. 79585
                                                                                                        equitable, reasonable, and removes                     operative delay in order to enable the
                                                (December 16, 2016), 82 FR 6961 (December 22,                                                                  Exchange to immediately ensure
                                                2016) (SR–BatsEDGX–2016–60; SR–BatsEDGA–                Cboe%20CDS%20Fees%20Schedule and the C2 fee            consistent use of terms amongst the
                                                2016–24; SR–BatsBYX–2017–29; and SR–BatsBYX–            schedule available at https://www.cboe.org/general-
                                                                                                        info/pdfframed?content=/publish/mdxfees/c2-cds-
                                                                                                                                                               Exchange and its affiliates, thereby
                                                2016–68).
                                                  6 See the Cboe fee schedule available at https://     fees-schedule.pdf&section=SEC_MDX_CSM&title=           reducing the potential for confusion
                                                www.cboe.org/general-info/pdfframed?content=/           C2%20CDS%20Fees%20Schedule.
                                                                                                          7 15 U.S.C. 78f.                                       9 15   U.S.C. 78s(b)(3)(A)(iii).
                                                publish/mdxfees/cboe-cds-fees-schedule-for-cboe-
                                                datafeeds.pdf&section=SEC_MDX_CSM&title=                  8 15 U.S.C. 78f(b)(5).                                 10 17   CFR 240.19b–4(f)(6).



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                                                                                 Federal Register / Vol. 83, No. 15 / Tuesday, January 23, 2018 / Notices                                                     3235

                                                amongst market data subscribers                            Commission and any person, other than                  I. Self-Regulatory Organization’s
                                                regarding the type of User they may be                     those that may be withheld from the                    Statement of the Terms of Substance of
                                                considered by the Exchange. The                            public in accordance with the                          the Proposed Rule Change
                                                Commission believes that such waiver is                    provisions of 5 U.S.C. 552, will be                      The Exchange proposes to amend
                                                consistent with the protection of                          available for website viewing and                      GEMX Rule 805 to permit Market
                                                investors and the public interest.                         printing in the Commission’s Public                    Makers 3 to enter additional order types
                                                Therefore, the Commission designates                       Reference Room, 100 F Street NE,                       in the options classes to which they are
                                                the proposed rule change to be operative                   Washington, DC 20549 on official                       appointed.
                                                upon filing. For purposes only of                          business days between the hours of
                                                waiving the 30-day operative delay, the                    10:00 a.m. and 3:00 p.m. Copies of the                 *     *     *    *     *
                                                Commission has also considered the                         filing also will be available for                      Nasdaq GEMX Rulebook
                                                proposed rule’s impact on efficiency,                      inspection and copying at the principal
                                                competition, and capital formation.11                                                                             *       *     *      *      *
                                                                                                           office of the Exchange. All comments
                                                   At any time within 60 days of the                       received will be posted without change.                Rule 805. Market Maker Orders
                                                filing of the proposed rule change, the                    Persons submitting comments are
                                                Commission summarily may                                                                                            (a) Options Classes to Which
                                                                                                           cautioned that we do not redact or edit                Appointed. Market makers may enter all
                                                temporarily suspend such rule change if                    personal identifying information from
                                                it appears to the Commission that such                                                                            order types defined in Rule 715 in the
                                                                                                           comment submissions. You should                        options classes to which they are
                                                action is: (i) Necessary or appropriate in                 submit only information that you wish
                                                the public interest; (ii) for the protection                                                                      appointed under Rule 802, except
                                                                                                           to make available publicly. All                        Stopped Orders, Reserve Orders and
                                                of investors; or (iii) otherwise in                        submissions should refer to File
                                                furtherance of the purposes of the Act.                                                                           Customer Cross Orders.[not place
                                                                                                           Number CboeEDGX–2018–002 and                           principal orders to buy or sell options
                                                If the Commission takes such action, the                   should be submitted on or before
                                                Commission shall institute proceedings                                                                            in the options classes to which they are
                                                                                                           February 13, 2018.                                     appointed under Rule 802, other than
                                                to determine whether the proposed rule
                                                                                                             For the Commission, by the Division of               opening only orders, immediate-or-
                                                should be approved or disapproved.                         Trading and Markets, pursuant to delegated             cancel orders, market orders, fill-or-kill
                                                IV. Solicitation of Comments                               authority.12                                           orders, sweep orders, and block-size
                                                                                                           Eduardo A. Aleman,                                     orders executed through the Block
                                                  Interested persons are invited to
                                                submit written data, views, and                            Assistant Secretary.                                   Order Mechanism pursuant to Rule
                                                arguments concerning the foregoing,                        [FR Doc. 2018–01090 Filed 1–22–18; 8:45 am]            716(c).] Competitive Market Makers
                                                including whether the proposed rule                        BILLING CODE 8011–01–P                                 shall comply with the provisions of
                                                change is consistent with the Act.                                                                                Rule 804(e)(2)(iii) upon the entry of
                                                Comments may be submitted by any of                                                                               such orders if they were not previously
                                                the following methods:                                     SECURITIES AND EXCHANGE                                quoting in the series.
                                                                                                           COMMISSION                                               (b) Options Classes Other Than Those
                                                Electronic Comments                                                                                               to Which Appointed.
                                                   • Use the Commission’s internet                         [Release No. 34–82516; File No. SR–GEMX–                 (1) A market maker may enter all
                                                comment form (http://www.sec.gov/                          2018–01]                                               order types permitted to be entered by
                                                rules/sro.shtml); or                                                                                              non-customer participants under the
                                                   • Send an email to rule-comments@                       Self-Regulatory Organizations; Nasdaq                  Rules to buy or sell options in classes
                                                sec.gov. Please include File Number SR–                    GEMX, LLC; Notice of Filing and                        of options listed on the Exchange to
                                                CboeEDGX–2018–002 on the subject                           Immediate Effectiveness of Proposed                    which the market maker is not
                                                line.                                                      Rule Change Relating to Market Maker                   appointed under Rule 802, except for
                                                                                                           Orders                                                 Reserve Orders, provided that:
                                                Paper Comments
                                                                                                                                                                    (i) and (ii) No change.
                                                  • Send paper comments in triplicate                      January 17, 2018.
                                                                                                                                                                    (2) and (3) No change.
                                                to Secretary, Securities and Exchange                         Pursuant to Section 19(b)(1) of the
                                                                                                                                                                  *      *    *     *    *
                                                Commission, 100 F Street NE,                               Securities Exchange Act of 1934
                                                Washington, DC 20549–1090.                                 (‘‘Act’’),1 and Rule 19b–4 thereunder,2                II. Self-Regulatory Organization’s
                                                All submissions should refer to File                       notice is hereby given that on January 5,              Statement of the Purpose of, and
                                                Number CboeEDGX–2018–002. This file                        2018, Nasdaq GEMX, LLC (‘‘GEMX’’ or                    Statutory Basis for, the Proposed Rule
                                                number should be included on the                           ‘‘Exchange’’) filed with the Securities                Change
                                                subject line if email is used. To help the                 and Exchange Commission                                  In its filing with the Commission, the
                                                Commission process and review your                         (‘‘Commission’’) the proposed rule                     Exchange included statements
                                                comments more efficiently, please use                      change as described in Items I and II                  concerning the purpose of and basis for
                                                only one method. The Commission will                       below, which Items have been prepared                  the proposed rule change and discussed
                                                post all comments on the Commission’s                      by the Exchange. The Commission is                     any comments it received on the
                                                internet website (http://www.sec.gov/                      publishing this notice to solicit                      proposed rule change. The text of these
                                                rules/sro.shtml). Copies of the                            comments on the proposed rule change                   statements may be examined at the
                                                submission, all subsequent                                 from interested persons.                               places specified in Item IV below. The
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                                                amendments, all written statements                            The text of the proposed rule change                Exchange has prepared summaries, set
                                                with respect to the proposed rule                          is set forth below. Proposed new                       forth in sections A, B, and C below, of
                                                change that are filed with the                             language is italicized; deleted text is in             the most significant aspects of such
                                                Commission, and all written                                [brackets].                                            statements.
                                                communications relating to the
                                                proposed rule change between the                             12 17 CFR 200.30–3(a)(12).                             3 Market Makers refers to ‘‘Competitive Market
                                                                                                             1 15 U.S.C. 78s(b)(1).                               Makers’’ and ‘‘Primary Market Makers’’ collectively.
                                                  11 See   15 U.S.C. 78c(f).                                 2 17 CFR 240.19b–4.                                  See GEMX Rule 100(a)(25).



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Document Created: 2018-01-23 01:08:59
Document Modified: 2018-01-23 01:08:59
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 3233 

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