83_FR_3257 83 FR 3242 - Self-Regulatory Organizations; Cboe BZX 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 3242 - Self-Regulatory Organizations; Cboe BZX 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 Range3242-3244
FR Document2018-01088

Federal Register, Volume 83 Issue 15 (Tuesday, January 23, 2018)
[Federal Register Volume 83, Number 15 (Tuesday, January 23, 2018)]
[Notices]
[Pages 3242-3244]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-01088]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82517; File No. SR-CboeBZX-2018-003]


Self-Regulatory Organizations; Cboe BZX 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 BZX Exchange, Inc. (the ``Exchange'' or 
``BZX'') 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 (``BZX 
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

[[Page 3243]]

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 BZX 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 EDGX Exchange, 
Inc. (``EDGX'') received approval to effect a merger (the ``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 BZX 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

[[Page 3244]]

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 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-CboeBZX-2018-003 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 CboeBZX-2018-003. 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 CboeBZX-2018-003 and should be submitted on 
or before February 13, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-01088 Filed 1-22-18; 8:45 am]
 BILLING CODE 8011-01-P



                                                3242                             Federal Register / Vol. 83, No. 15 / Tuesday, January 23, 2018 / Notices

                                                subparagraph (f)(6) of Rule 19b–4                         Paper Comments                                          SECURITIES AND EXCHANGE
                                                thereunder.10 In addition, Rule 19b–                                                                              COMMISSION
                                                4(f)(6) requires a self-regulatory                          • Send paper comments in triplicate
                                                                                                          to Secretary, Securities and Exchange                   [Release No. 34–82517; File No. SR–
                                                organization to give the Commission                                                                               CboeBZX–2018–003]
                                                written notice of its intent to file the                  Commission, 100 F Street NE,
                                                proposed rule change, along with a brief                  Washington, DC 20549–1090.                              Self-Regulatory Organizations; Cboe
                                                description and text of the proposed                      All submissions should refer to File                    BZX Exchange, Inc.; Notice of Filing
                                                rule change, at least five business days                  Number CboeBYX–2018–001. This file                      and Immediate Effectiveness of a
                                                prior to the date of filing of the                        number should be included on the                        Proposed Rule Change To Harmonize
                                                proposed rule change, or such shorter                     subject line if email is used. To help the              the Definition of Non-Professional User
                                                time as designated by the Commission.                     Commission process and review your                      in Its Fee Schedule With That of Its
                                                The Exchange has satisfied this                           comments more efficiently, please use                   Affiliates
                                                requirement.                                              only one method. The Commission will                    January 17, 2018.
                                                   In its filing, the Exchange requested                  post all comments on the Commission’s                      Pursuant to Section 19(b)(1) of the
                                                that the Commission waive the 30-day                      internet website (http://www.sec.gov/                   Securities Exchange Act of 1934 (the
                                                operative delay in order to enable the                    rules/sro.shtml). Copies of the                         ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                Exchange to immediately ensure                            submission, all subsequent                              notice is hereby given that on January 8,
                                                consistent use of terms amongst the                       amendments, all written statements                      2018, Cboe BZX Exchange, Inc. (the
                                                Exchange and its affiliates, thereby                      with respect to the proposed rule                       ‘‘Exchange’’ or ‘‘BZX’’) filed with the
                                                reducing the potential for confusion                      change that are filed with the                          Securities and Exchange Commission
                                                amongst market data subscribers                           Commission, and all written                             (the ‘‘Commission’’) the proposed rule
                                                regarding the type of User they may be                    communications relating to the                          change as described in Items I and II
                                                considered by the Exchange. The                           proposed rule change between the                        below, which Items have been prepared
                                                Commission believes that such waiver is                   Commission and any person, other than                   by the Exchange. The Exchange has
                                                consistent with the protection of                         those that may be withheld from the                     designated this proposal as a ‘‘non-
                                                investors and the public interest.                                                                                controversial’’ proposed rule change
                                                                                                          public in accordance with the
                                                Therefore, the Commission designates                                                                              pursuant to Section 19(b)(3)(A) of the
                                                                                                          provisions of 5 U.S.C. 552, will be
                                                the proposed rule change to be operative                                                                          Act 3 and Rule 19b–4(f)(6)(iii)
                                                                                                          available for website viewing and
                                                upon filing. For purposes only of                                                                                 thereunder,4 which renders it effective
                                                                                                          printing in the Commission’s Public
                                                waiving the 30-day operative delay, the                                                                           upon filing with the Commission. The
                                                Commission has also considered the                        Reference Room, 100 F Street NE,
                                                                                                          Washington, DC 20549 on official                        Commission is publishing this notice to
                                                proposed rule’s impact on efficiency,                                                                             solicit comments on the proposed rule
                                                competition, and capital formation.11                     business days between the hours of
                                                                                                                                                                  change from interested persons.
                                                                                                          10:00 a.m. and 3:00 p.m. Copies of the
                                                   At any time within 60 days of the                      filing also will be available for                       I. Self-Regulatory Organization’s
                                                filing of the proposed rule change, the                   inspection and copying at the principal                 Statement of the Terms of Substance of
                                                Commission summarily may                                  office of the Exchange. All comments                    the Proposed Rule Change
                                                temporarily suspend such rule change if
                                                                                                          received will be posted without change.                    The Exchange filed a proposal to
                                                it appears to the Commission that such
                                                                                                          Persons submitting comments are                         amend the Market Data section of its fee
                                                action is: (i) Necessary or appropriate in
                                                                                                          cautioned that we do not redact or edit                 schedule applicable to its equity options
                                                the public interest; (ii) for the protection
                                                of investors; or (iii) otherwise in                       personal identifying information from                   platform (‘‘BZX Options’’) to harmonize
                                                furtherance of the purposes of the Act.                   comment submissions. You should                         the definition of ‘‘Non-Professional
                                                If the Commission takes such action, the                  submit only information that you wish                   User’’ with that of its affiliates, Cboe
                                                Commission shall institute proceedings                    to make available publicly. All                         Exchange, Inc. (‘‘Cboe’’) and Cboe C2
                                                to determine whether the proposed rule                    submissions should refer to File                        Exchange, Inc. (‘‘C2’’).
                                                                                                          Number CboeBYX–2018–001 and                                The text of the proposed rule change
                                                should be approved or disapproved.
                                                                                                          should be submitted on or before                        is available at the Exchange’s website at
                                                IV. Solicitation of Comments                              February 13, 2018.                                      www.markets.cboe.com, at the principal
                                                                                                                                                                  office of the Exchange, and at the
                                                  Interested persons are invited to                         For the Commission, by the Division of                Commission’s Public Reference Room.
                                                submit written data, views, and                           Trading and Markets, pursuant to delegated
                                                arguments concerning the foregoing,                       authority.12                                            II. Self-Regulatory Organization’s
                                                including whether the proposed rule                       Eduardo A. Aleman,                                      Statement of the Purpose of, and
                                                change is consistent with the Act.                                                                                Statutory Basis for, the Proposed Rule
                                                                                                          Assistant Secretary.
                                                Comments may be submitted by any of                                                                               Change
                                                                                                          [FR Doc. 2018–01086 Filed 1–22–18; 8:45 am]
                                                the following methods:                                    BILLING CODE 8011–01–P
                                                                                                                                                                    In its filing with the Commission, the
                                                                                                                                                                  Exchange included statements
                                                Electronic Comments                                                                                               concerning the purpose of and basis for
                                                  • Use the Commission’s internet                                                                                 the proposed rule change and discussed
                                                comment form (http://www.sec.gov/                                                                                 any comments it received on the
sradovich on DSK3GMQ082PROD with NOTICES




                                                rules/sro.shtml); or                                                                                              proposed rule change. The text of these
                                                                                                                                                                  statements may be examined at the
                                                  • Send an email to rule-comments@                                                                               places specified in Item IV below. The
                                                sec.gov. Please include File Number SR–
                                                CboeBYX–2018–001 on the subject line.                                                                               1 15 U.S.C. 78s(b)(1).
                                                                                                                                                                    2 17 CFR 240.19b–4.
                                                  10 17   CFR 240.19b–4(f)(6).                                                                                      3 15 U.S.C. 78s(b)(3)(A).
                                                  11 See   15 U.S.C. 78c(f).                                12 17   CFR 200.30–3(a)(12).                            4 17 CFR 240.19b–4(f)(6)(iii).




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                                                                              Federal Register / Vol. 83, No. 15 / Tuesday, January 23, 2018 / Notices                                             3243

                                                Exchange has prepared summaries, set                    an ‘‘investment adviser’’ as that term is              2. Statutory Basis
                                                forth in Sections A, B, and C below, of                 defined in Section 202(a)(11) of the
                                                                                                        Investment Advisors Act of 1940 (whether or               The Exchange believes that the
                                                the most significant parts of such                                                                             proposed rule change is consistent with
                                                                                                        not registered or qualified under that Act); or
                                                statements.                                             (iii) employed by a bank or other                      the objectives of Section 6 of the Act,7
                                                A. Self-Regulatory Organization’s                       organization exempt from registration under            in general, and furthers the objectives of
                                                Statement of the Purpose of, and                        federal or state securities laws to perform            Section 6(b)(5) of the Act 8 in particular,
                                                                                                        functions that would require registration or           in that it is designed to promote just and
                                                Statutory Basis for, the Proposed Rule
                                                                                                        qualification if such functions were
                                                Change                                                  performed for an organization not so exempt;           equitable principles of trade, to foster
                                                                                                        or, for a natural person who works outside             cooperation and coordination with
                                                1. Purpose
                                                                                                        of the United States, does not perform the             persons engaged in facilitating
                                                   The Exchange proposes to amend the                   same functions as would disqualify such                transactions in securities, to remove
                                                Market Data section of its fee schedule                 person as a Non-Professional User if he or             impediments to and perfect the
                                                applicable to BZX Options to harmonize                  she worked in the United States.                       mechanism of a free and open market
                                                the definition of ‘‘Non-Professional                      The revised definition is substantially              and a national market system and, in
                                                User’’ with that of its affiliates, Cboe                identical to the definition of ‘‘Non-                  general, to protect investors and the
                                                and C2. In late 2016, the Exchange and                  Professional User’ included within the                 public interest. The harmonized
                                                its affiliates Cboe EDGA Exchange, Inc.                 Cboe and C2 fee schedules.6 The                        definition of Non-Professional User is
                                                (‘‘EDGA’’), Cboe BYX Exchange, Inc.                     Exchange’s current definition of ‘‘Non-                equitable, reasonable, and removes
                                                (‘‘BYX’’), and Cboe EDGX Exchange,                      Professional User’’ does differ from that              impediments to and perfect the
                                                Inc. (‘‘EDGX’’) received approval to                    contained in the Cboe and C2 fee                       mechanism of a free and open market
                                                effect a merger (the ‘‘Merger’’) of the                 schedules in following minor, non-                     and a national market system it would
                                                Exchange’s parent company, Bats Global                  substantive ways. First, the harmonized                provide additional specificity while
                                                Markets, Inc., the parent of EDGA,                      definition will make clear that a Non-                 harmonizing the definition with that of
                                                EDGX, BYX, and BZX with CBOE                            Professional User may be a natural                     its affiliates. Doing so would ensure
                                                Holding, Inc. (now known as Cboe                        person or qualifying trust that uses Data              consistent terms amongst the Exchange
                                                Global Markets, Inc.) the parent                        only for personal purposes and not for                 and its affiliates, thereby reducing the
                                                company of Cboe and C2.5 In order to                    any commercial purpose. To date, the                   potential for confusion amongst market
                                                provide consistent rules and                            Exchange is not aware of any entity that               data subscribers regarding the type of
                                                terminology amongst the Exchange,                       receives an Exchange market data                       User they may be considered by the
                                                Cboe, and C2, the Exchange proposes to                  product would be deemed a qualifying                   Exchange.
                                                amend the definition of ‘‘Non-                          trust and, therefore, has not had to
                                                Professional User’’ to harmonize it with                determine whether such entity is a                     B. Self-Regulatory Organization’s
                                                that of its affiliates, Cboe and C2. The                Professional or Non-Professional User                  Statement on Burden on Competition
                                                BZX Option’s fee schedule currently                     under the prior definition. Second, the                  The Exchange does not believe that
                                                defines ‘‘Non-Professional User’’ as:                   harmonized definition would specify                    the proposed rule change will result in
                                                a natural person who is not: (i) registered or          that a natural person who works outside                any burden on competition that is not
                                                qualified in any capacity with the                      of the United States would not be                      necessary or appropriate in furtherance
                                                Commission, the Commodity Futures                       deemed a Non-Professional User where                   of the purposes of the Act, as amended.
                                                Trading Commission, any state securities                that person does not perform the same                  The harmonized definition of Non-
                                                agency, any securities exchange or                      functions as would disqualify such                     Professional User would have no impact
                                                association, or any commodities or futures              person as a Non-Professional User if he
                                                contract market or association; (ii) engaged as
                                                                                                                                                               on competition because it does not
                                                                                                        or she worked in the United States. The                materially alter the definition.
                                                an ‘‘investment adviser’’ as that term is
                                                defined in Section 202(a)(11) of the                    definition with regard to natural persons
                                                                                                        who work in the United States are                      C. Self-Regulatory Organization’s
                                                Investment Advisers Act of 1940 (whether or
                                                                                                        substantively identical amongst the old                Statement on Comments on the
                                                not registered or qualified under that Act); or
                                                (iii) employed by a bank or other                       and harmonized definition.                             Proposed Rule Change Received From
                                                organization exempt from registration under               None of these differences impact the                 Members, Participants, or Others
                                                federal or state securities laws to perform             manner in which the Exchange would                       The Exchange has neither solicited
                                                functions that would require registration or            characterize a User and a Professional or
                                                qualification if such functions were
                                                                                                                                                               nor received written comments on the
                                                                                                        Non-Professional. The harmonized                       proposed rule change.
                                                performed for an organization not so exempt.
                                                                                                        definition would provide additional
                                                As amended, ‘‘Non-Professional User’’                   specificity while harmonizing the                      III. Date of Effectiveness of the
                                                would be defined as:                                    definition with that of its affiliates.                Proposed Rule Change and Timing for
                                                a natural person or qualifying trust that uses          Doing so would ensure consistent terms                 Commission Action
                                                Data only for personal purposes and not for             amongst the Exchange and its affiliates,                 Because the foregoing proposed rule
                                                any commercial purpose and, for a natural               thereby reducing the potential for                     change does not: (i) Significantly affect
                                                person who works in the United States, is               confusion amongst market data                          the protection of investors or the public
                                                not: (i) registered or qualified in any capacity        subscribers regarding the type of User
                                                with the Securities and Exchange                                                                               interest; (ii) impose any significant
                                                                                                        they may be considered by the                          burden on competition; and (iii) become
                                                Commission, the Commodities Futures
                                                Trading Commission, any state securities                Exchange.                                              operative for 30 days from the date on
sradovich on DSK3GMQ082PROD with NOTICES




                                                agency, any securities exchange or                                                                             which it was filed, or such shorter time
                                                                                                          6 See the Cboe fee schedule available at https://
                                                association, or any commodities or futures                                                                     as the Commission may designate, it has
                                                contract market or association; (ii) engaged as         www.cboe.org/general-info/pdfframed?content=/
                                                                                                        publish/mdxfees/cboe-cds-fees-schedule-for-cboe-       become effective pursuant to Section
                                                                                                        datafeeds.pdf&section=SEC_MDX_CSM&title=               19(b)(3)(A)(iii) of the Act 9 and
                                                  5 See Securities Exchange Act Release No. 79585
                                                                                                        Cboe%20CDS%20Fees%20Schedule and the C2 fee
                                                (December 16, 2016), 82 FR 6961 (December 22,           schedule available at https://www.cboe.org/general-
                                                                                                                                                                 7 15 U.S.C. 78f.
                                                2016) (SR–BatsEDGX–2016–60; SR–BatsEDGA–                info/pdfframed?content=/publish/mdxfees/c2-cds-
                                                                                                                                                                 8 15 U.S.C. 78f(b)(5).
                                                2016–24; SR–BatsBYX–2017–29; and SR–BatsBYX–            fees-schedule.pdf&section=SEC_MDX_CSM&title=
                                                2016–68).                                               C2%20CDS%20Fees%20Schedule.                              9 15 U.S.C. 78s(b)(3)(A)(iii).




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                                                3244                             Federal Register / Vol. 83, No. 15 / Tuesday, January 23, 2018 / Notices

                                                subparagraph (f)(6) of Rule 19b–4                         Paper Comments                                          SECURITIES AND EXCHANGE
                                                thereunder.10 In addition, Rule 19b–                                                                              COMMISSION
                                                4(f)(6) requires a self-regulatory                          • Send paper comments in triplicate
                                                organization to give the Commission                       to Secretary, Securities and Exchange
                                                                                                                                                                  [Release No. 34–82513; File No. SR–OCC–
                                                written notice of its intent to file the                  Commission, 100 F Street NE,
                                                                                                                                                                  2017–809]
                                                proposed rule change, along with a brief                  Washington, DC 20549–1090.
                                                description and text of the proposed                      All submissions should refer to File                    Self-Regulatory Organizations; The
                                                rule change, at least five business days                  Number CboeBZX–2018–003. This file                      Options Clearing Corporation; Notice
                                                prior to the date of filing of the                        number should be included on the                        of Filing of Advance Notice
                                                proposed rule change, or such shorter                     subject line if email is used. To help the              Concerning Enhanced and New Tools
                                                time as designated by the Commission.                     Commission process and review your                      for Recovery Scenarios
                                                The Exchange has satisfied this                           comments more efficiently, please use
                                                requirement.                                                                                                      January 17, 2018.
                                                                                                          only one method. The Commission will
                                                   In its filing, the Exchange requested                  post all comments on the Commission’s                      Pursuant to Section 806(e)(1) of Title
                                                that the Commission waive the 30-day                      internet website (http://www.sec.gov/                   VIII of the Dodd-Frank Wall Street
                                                operative delay in order to enable the                    rules/sro.shtml). Copies of the                         Reform and Consumer Protection Act,
                                                Exchange to immediately ensure                            submission, all subsequent                              entitled Payment, Clearing and
                                                consistent use of terms amongst the                       amendments, all written statements                      Settlement Supervision Act of 2010
                                                Exchange and its affiliates, thereby                      with respect to the proposed rule                       (‘‘Clearing Supervision Act’’) 1 and Rule
                                                reducing the potential for confusion                                                                              19b–4(n)(1)(i) under the Securities
                                                                                                          change that are filed with the
                                                amongst market data subscribers                                                                                   Exchange Act of 1934 (‘‘Act’’),2 notice is
                                                                                                          Commission, and all written
                                                regarding the type of User they may be                                                                            hereby given that on December 8, 2017,
                                                                                                          communications relating to the
                                                considered by the Exchange. The                                                                                   The Options Clearing Corporation
                                                                                                          proposed rule change between the                        (‘‘OCC’’) filed with the Securities and
                                                Commission believes that such waiver is                   Commission and any person, other than
                                                consistent with the protection of                                                                                 Exchange Commission (‘‘Commission’’)
                                                                                                          those that may be withheld from the                     an advance notice as described in Items
                                                investors and the public interest.
                                                                                                          public in accordance with the                           I, II and III below, which Items have
                                                Therefore, the Commission designates
                                                                                                          provisions of 5 U.S.C. 552, will be                     been prepared by OCC. The Commission
                                                the proposed rule change to be operative
                                                                                                          available for website viewing and                       is publishing this notice to solicit
                                                upon filing. For purposes only of
                                                                                                          printing in the Commission’s Public                     comments on the advance notice from
                                                waiving the 30-day operative delay, the
                                                Commission has also considered the                        Reference Room, 100 F Street NE,                        interested persons.
                                                proposed rule’s impact on efficiency,                     Washington, DC 20549 on official
                                                                                                          business days between the hours of                      I. Clearing Agency’s Statement of the
                                                competition, and capital formation.11                                                                             Terms of Substance of the Advance
                                                                                                          10:00 a.m. and 3:00 p.m. Copies of the
                                                   At any time within 60 days of the                      filing also will be available for                       Notice
                                                filing of the proposed rule change, the                   inspection and copying at the principal
                                                Commission summarily may                                                                                            This advance notice is filed in
                                                                                                          office of the Exchange. All comments                    connection with a proposed change to
                                                temporarily suspend such rule change if
                                                                                                          received will be posted without change.                 make certain revisions to OCC’s Rules
                                                it appears to the Commission that such
                                                                                                          Persons submitting comments are                         and By-Laws to enhance OCC’s existing
                                                action is: (i) Necessary or appropriate in
                                                                                                          cautioned that we do not redact or edit                 tools to address the risks of liquidity
                                                the public interest; (ii) for the protection
                                                of investors; or (iii) otherwise in                       personal identifying information from                   shortfalls and credit losses and to
                                                furtherance of the purposes of the Act.                   comment submissions. You should                         establish new tools by which OCC could
                                                If the Commission takes such action, the                  submit only information that you wish                   re-establish a matched book following a
                                                Commission shall institute proceedings                    to make available publicly. All                         default. Each of the tools proposed
                                                to determine whether the proposed rule                    submissions should refer to File                        herein is contemplated to be deployed
                                                should be approved or disapproved.                        Number CboeBZX–2018–003 and                             by OCC in an extreme stress event that
                                                                                                          should be submitted on or before                        has placed OCC into a recovery or
                                                IV. Solicitation of Comments                              February 13, 2018.                                      orderly wind-down scenario.
                                                  Interested persons are invited to                         For the Commission, by the Division of                  The proposed changes to OCC’s By-
                                                submit written data, views, and                           Trading and Markets, pursuant to delegated              Laws and Rules were submitted as
                                                arguments concerning the foregoing,                       authority.12                                            Exhibits 5A and 5B of the filing, and
                                                including whether the proposed rule                       Eduardo A. Aleman,                                      proposed changes to OCC’s Default
                                                change is consistent with the Act.                                                                                Management Policy were submitted as
                                                                                                          Assistant Secretary.
                                                Comments may be submitted by any of                                                                               confidential Exhibit 5C of the filing.3
                                                                                                          [FR Doc. 2018–01088 Filed 1–22–18; 8:45 am]
                                                the following methods:                                                                                            The proposed change is described in
                                                                                                          BILLING CODE 8011–01–P                                  detail in Item II below. All terms with
                                                Electronic Comments                                                                                               initial capitalization not defined herein
                                                                                                                                                                  have the same meaning as set forth in
                                                  • Use the Commission’s internet                                                                                 OCC’s By-Laws and Rules.4
                                                comment form (http://www.sec.gov/
sradovich on DSK3GMQ082PROD with NOTICES




                                                rules/sro.shtml); or                                                                                                1 12U.S.C. 5465(e)(1).
                                                  • Send an email to rule-comments@                                                                                 2 17CFR 240.19b–4(n)(1)(i).
                                                sec.gov. Please include File Number SR–                                                                             3 OCC has filed a proposed rule change with the

                                                CboeBZX–2018–003 on the subject line.                                                                             Commission in connection with the proposed
                                                                                                                                                                  change. See SR–OCC–2017–017.
                                                                                                                                                                    4 OCC’s By-Laws and Rules can be found on
                                                  10 17   CFR 240.19b–4(f)(6).                                                                                    OCC’s public website: http://optionsclearing.com/
                                                  11 See   15 U.S.C. 78c(f).                                12 17   CFR 200.30–3(a)(12).                          about/publications/bylaws.jsp.



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Document Created: 2018-01-23 01:08:52
Document Modified: 2018-01-23 01:08:52
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 3242 

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