83 FR 34638 - Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use on Cboe BYX Exchange, Inc.

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 140 (July 20, 2018)

Page Range		34638-34639
FR Document		2018-15497
Federal Register, Volume 83 Issue 140 (Friday, July 20, 2018)
[Federal Register Volume 83, Number 140 (Friday, July 20, 2018)]
[Notices]
[Pages 34638-34639]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-15497]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83638; File No. SR-CboeBYX-2018-011]


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

July 16, 2018.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on July 2, 2018, Cboe BYX Exchange, Inc. (the ``Exchange'' or 
``BYX'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II 
and III below, which Items have been prepared by the Exchange. The 
Exchange has designated the proposed rule change as one establishing or 
changing a member due, fee, or other charge imposed by the Exchange 
under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) 
thereunder,\4\ which renders the proposed rule change effective upon 
filing with the Commission. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange filed a proposal to amend the fee schedule to modify 
certain Routing Fees.
    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 its fee schedule, effective July 2, 
2018, to modify pricing for orders in securities at or above $1.00 that 
are routed to a displayed market to remove liquidity using Parallel D, 
Parallel 2D, ROUT, ROUX or Post [sic] Away routing strategy, which 
orders yield fee code X. The Exchange currently assesses $0.00290 per 
share for these orders. The Exchange is proposing to increase the rate 
from $0.00290 per share to $0.00300 per share. The Exchange notes that 
the proposed amount is in line with amounts assessed for similar 
transactions on another exchange.\5\
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    \5\ See e.g., Cboe BZX U.S. Securities Fee Schedule, Fee Codes 
and Associated Fees, fee code X.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 of the Act,\6\ in general, and 
furthers the objectives of Section 6(b)(4),\7\ in particular, as it is 
designed to provide for the equitable allocation of reasonable dues, 
fees and other charges among its Members and other persons using its 
facilities.
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    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(4).
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    Particularly, the Exchange believes its proposed routing fee change 
is reasonable taking into account routing costs and also notes that the 
proposed change is in line with the amount assessed for similar 
transactions by another exchange.\8\ The Exchange believes the proposed 
change is equitable and not unfairly discriminatory because it applies 
equally to all Members. The Exchange notes that routing through the 
Exchange is voluntary and also notes that it operates in a highly 
competitive market in which market participants can readily direct 
order flow to competing venues or providers of routing services if they 
deem fee levels to be excessive.
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    \8\ See e.g., Cboe BZX Equities Exchange Fee Schedule, Fee Codes 
and Associated Fees, fee code X.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. The Exchange believes the 
proposed routing fee will not impose an undue burden on competition 
because the Exchange will uniformly assess the affected routing fees on 
all Members. Additionally, Members may opt to disfavor the Exchange's 
pricing if they believe that alternatives offer them better value or if 
they view the proposed fee as excessive. Further, excessive fees for 
participation would serve to impair an exchange's ability to compete 
for order flow and members rather than burdening competition.

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

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

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \9\ and paragraph (f) of Rule 19b-4 
thereunder.\10\ At any time within 60 days of the filing of the 
proposed rule change, the Commission summarily may temporarily suspend 
such rule change if

[[Page 34639]]

it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act.
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-CboeBYX-2018-011 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CboeBYX-2018-011. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (http://www.sec.gov/rules/sro.shtml). 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for website viewing and printing in 
the Commission's Public Reference Room, 100 F Street NE, Washington, DC 
20549, on official business days between the hours of 10:00 a.m. and 
3:00 p.m. Copies of the filing also will be available for inspection 
and copying at the principal office of the Exchange. All comments 
received will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-CboeBYX-2018-011, and should be 
submitted on or before August 10, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
Eduardo A. Aleman,
Assistant Secretary.
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    \11\17 CFR 200.30-3(a)(12).
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[FR Doc. 2018-15497 Filed 7-19-18; 8:45 am]
BILLING CODE 8011-01-P
Federal Register / Vol. 83, No. 140 / Friday, July 20, 2018 / Notices 34639

it appears to the Commission that such For the Commission, by the Division of proposed rule change. The text of these
action is necessary or appropriate in the Trading and Markets, pursuant to delegated statements may be examined at the
public interest, for the protection of authority.11 places specified in Item IV below. The
investors, or otherwise in furtherance of Eduardo A. Aleman, Exchange has prepared summaries, set
the purposes of the Act. Assistant Secretary. forth in sections A, B, and C below, of
IV. Solicitation of Comments [FR Doc. 2018–15497 Filed 7–19–18; 8:45 am] the most significant aspects of such
BILLING CODE 8011–01–P statements.
Interested persons are invited to
submit written data, views, and A. Self-Regulatory Organization’s
arguments concerning the foregoing, SECURITIES AND EXCHANGE Statement of the Purpose of, and
including whether the proposed rule COMMISSION Statutory Basis for, the Proposed Rule
change is consistent with the Act. Change
Comments may be submitted by any of [Release No. 34–83642; File No. SR–BX–
2018–029] 1. Purpose
the following methods:
BX proposes to amend the current
Electronic Comments Self-Regulatory Organizations; Nasdaq rule text of Chapter VII, Section 6(d),
• Use the Commission’s internet BX, Inc.; Notice of Filing and Section 14 and Section 15 related to
comment form (http://www.sec.gov/ Immediate Effectiveness of Proposed quoting obligations for Market Makers,
rules/sro.shtml); or Rule Change To Amend BX Rules at Lead Market Makers and Directed
• Send an email to rule-comments@ Chapter VII, Section 6 Related to Market Makers, to restructure the
sec.gov. Please include File Number SR– Market Maker Quotations, Section 14 current rule to mirror rule text utilized
CboeBYX–2018–011 on the subject line. Related to Lead Market Maker on Nasdaq Phlx LLC.3 The Exchange
Quotations and Section 15 Related to does not propose to amend the current
Paper Comments Directed Market Maker Quotations quoting obligations, rather the Exchange
• Send paper comments in triplicate proposes to more clearly state the
July 16, 2018.
to Secretary, Securities and Exchange current quoting obligations utilizing the
Commission, 100 F Street NE, Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 same format as Phlx Rule 1081(c).
Washington, DC 20549–1090.
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 Chapter VII, Section 6(d)(i)
All submissions should refer to File
notice is hereby given that on July 2,
Number SR–CboeBYX–2018–011. This The Exchange proposes to amend
2018, Nasdaq BX, Inc. (‘‘BX’’ or
file number should be included on the Chapter VII, Section 6(d) to remove the
‘‘Exchange’’) filed with the Securities
subject line if email is used. To help the word ‘‘continuous’’ from this first
and Exchange Commission (‘‘SEC’’ or
Commission process and review your sentence in the rule. The Exchange is
‘‘Commission’’) the proposed rule
comments more efficiently, please use removing the word ‘‘continuous’’
change as described in Items I and II
only one method. The Commission will because the Exchange notes that Market
below, which Items have been prepared
post all comments on the Commission’s Makers quote a percentage of the day
by the Exchange. The Commission is
internet website (http://www.sec.gov/ and therefore the word continuous may
publishing this notice to solicit
rules/sro.shtml). Copies of the not accurately reflect the manner in
comments on the proposed rule change
submission, all subsequent which Market Makers quote on BX. The
from interested persons.
amendments, all written statements Exchange proposes to retitle Section
with respect to the proposed rule I. Self-Regulatory Organization’s 6(d) as ‘‘Intra-day Quotes.’’
change that are filed with the Statement of the Terms of Substance of The Exchange also proposes to
Commission, and all written the Proposed Rule Change replace references to ‘‘continuous’’ with
communications relating to the The Exchange proposes to amend BX ‘‘intra-day’’ within the Rulebook. The
proposed rule change between the Rules at Chapter VII, Section 6 related Exchange proposes to amend Chapter V,
Commission and any person, other than to Market Maker quotations, Section 14 Section 3 to replace ‘‘continuous
those that may be withheld from the related to Lead Market Maker quotations quoting’’ with ‘‘intra-day quoting.’’ The
public in accordance with the and Section 15 related to Directed Exchange proposes to amend proposed
provisions of 5 U.S.C. 552, will be Market Maker quotations. Chapter VII, Section 14(f)(4) to replace
available for website viewing and The text of the proposed rule change ‘‘continuous electronic quote
printing in the Commission’s Public is available on the Exchange’s website at obligation’’ with ‘‘intra-day electronic
Reference Room, 100 F Street NE, http://nasdaqbx.cchwallstreet.com/, at quote obligation.’’ The Exchange
Washington, DC 20549, on official the principal office of the Exchange, and proposes to amend proposed Chapter
business days between the hours of at the Commission’s Public Reference VII, Section 14(g) to replace
10:00 a.m. and 3:00 p.m. Copies of the Room. ‘‘continuous quotes’’ with ‘‘intra-day
filing also will be available for quotes.’’ The Exchange proposes to
inspection and copying at the principal II. Self-Regulatory Organization’s amend Chapter VII, Section 15(iii)(d) to
office of the Exchange. All comments Statement of the Purpose of, and replace ‘‘continuous electronic quote
received will be posted without change. Statutory Basis for, the Proposed Rule obligation’’ with ‘‘intra-day electronic
Persons submitting comments are Change quote obligation.’’ The Exchange
cautioned that we do not redact or edit In its filing with the Commission, the proposes to amend Chapter X, Section
personal identifying information from Exchange included statements 7(c) to replace ‘‘continuous quotes’’ and
daltland on DSKBBV9HB2PROD with NOTICES

comment submissions. You should concerning the purpose of and basis for ‘‘continuous bids and offers’’ with
submit only information that you wish the proposed rule change and discussed ‘‘intra-day quotes’’ and ‘‘intra-day bids
to make available publicly. All any comments it received on the and offers.’’
submissions should refer to File The Exchange proposes to amend
Number SR–CboeBYX–2018–011, and 1117 CFR 200.30–3(a)(12). Chapter VII, Section 6(d)(i) to delete the
should be submitted on or before 1 15 U.S.C. 78s(b)(1).
August 10, 2018. 2 17 CFR 240.19b–4. 3 Phlx Rule 1081(c)(ii).

VerDate Sep<11>2014 18:06 Jul 19, 2018 Jkt 244001 PO 00000 Frm 00104 Fmt 4703 Sfmt 4703 E:\FR\FM\20JYN1.SGM 20JYN1
Document Created: 2018-07-20 01:18:26
Document Modified: 2018-07-20 01:18:26
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		83 FR 34638