83 FR 3834 - Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Add a New Rule 4765 and Commentary Thereto To Codify Participant Risk Settings and To Authorize the Exchange To Share those Risk Settings With the Clearing Member That Clears Transactions on Behalf of the Participant
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 18 (January 26, 2018)
Federal Register Volume 83, Issue 18 (January 26, 2018)
| Page Range | 3834-3837 | |
| FR Document | 2018-01360 |
[Federal Register Volume 83, Number 18 (Friday, January 26, 2018)] [Notices] [Pages 3834-3837] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-01360] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82545; File No. SR-BX-2018-001] Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Add a New Rule 4765 and Commentary Thereto To Codify Participant Risk Settings and To Authorize the Exchange To Share those Risk Settings With the Clearing Member That Clears Transactions on Behalf of the Participant January 19, 2018. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on January 11, 2018, Nasdaq BX, Inc. (``BX'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to add a new Rule 4765 and commentary thereto to codify Participant risk settings in the Exchange's trading system and to authorize the Exchange to share such risk settings with the clearing member that clears transactions on behalf of the Participant. The text of the proposed rule change is set forth below. Proposed new language is italicized; deleted text is in brackets. * * * * * Rules of Nasdaq BX Equity Rules * * * * * Rule 4765. Exchange Sharing of Participant Risk Settings The Exchange may share any Participant risk settings in the trading system specified in the commentary below with the clearing member that clears transactions on behalf of the Participant. For purposes of this Rule, the term ``Participant'' has the meaning set forth in Rule 4701(c). Commentary The Exchange offers certain risk settings applicable to a Participant's activities on the Exchange. The risk settings currently offered by the Exchange are: (a) Share Size Control--When enabled by a Participant, this optional control will allow a Participant to limit the number of shares that the Participant may associate with an order placed on the Exchange; (b) ISO Control--When enabled by a Participant, this optional control will prevent a Participant from entering an ISO order onto the Exchange; (c) Cancel-on-Disconnect Control--When enabled by a Participant, this optional control will allow a Participant, when it experiences a disruption in its connection to the Exchange, to immediately cancel all pending Exchange orders except for Good-Till-Canceled orders (RASH & FIX only); (d) The BX Kill Switch--This control is described in Rule 4764; (e) Limit Order Protection--This control is described in Rule 4757(d); (f) Price Collar Check--This control will automatically restrict a routed order from executing at a price that differs from the NBBO (at the time of order entry) by more than five percent or $0.25, whichever difference is greater. The system will proceed to route an order unless and until it crosses the greater of these two price collars, and if it does so, then the system will block further routings of the order that fall outside of the collars. For example, if the NBBO is $99 x $100 at the time of entry of a buy order, then the system will route the order at prices at or below $105, but will stop doing so if the offer price rises above $105 (five percent of the NBO); (g) Maximum Order Volume Check--This control will automatically reject an order for routing away that exceeds a maximum volume of shares. As applied to equity orders, the default maximum order volume is set at 25,000 shares, but the Participant may request that the Exchange set a higher default based on historic volume; (h) Cumulative Order Volume Check--This control will automatically block an attempt by a Participant using a particular MPID to route orders away to buy or sell equity securities that, cumulatively, exceed 9.5 million shares during a five second time period; and (i) Duplication Control--This control will automatically reject an order that a Participant submits to the Exchange to the extent that it is duplicative of another order that the Participant submitted to the Exchange during the prior five seconds. * * * * * [[Page 3835]] 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 aspects 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 adopt proposed commentary to Rule 4765, which codifies a comprehensive list of Participant risk settings in the Exchange's trading system. The Exchange also proposes to adopt new Rule 4765 to authorize the Exchange to share these risk settings with the clearing member that clears transactions on behalf of the Participant. For purposes of Rule 4765, the term ``Participant'' has the meaning set forth in Rule 4701(c).\3\ --------------------------------------------------------------------------- \3\ Rule 4701(c) defines a ``Participant'' as an entity that fulfills the obligations contained in Rule 4611 regarding participation in the System, and includes Equities ECNs, Equities Market Makers, and Order Entry Firms. --------------------------------------------------------------------------- Participants are required to be members of the Exchange. Rule 4618 states that ``all transactions through the facilities of the Nasdaq BX Equities Market shall be cleared and settled through a registered clearing agency using a continuous net settlement system.'' It further provides that this requirement may be satisfied by ``direct participation, use of direct clearing services, by entry into a correspondent clearing arrangement with another member that clears trades through such a clearing agency. . . .'' Further, pursuant to Rule 4627, every clearing member acting on a Participant's behalf that constitutes a side of a system trade is responsible for honoring such trades of that Participant. All Participants that are not clearing members require a clearing member's consent to clear transactions on their behalf in order to conduct business on the Exchange. Each Participant that transacts through a clearing member on the Exchange must have an arrangement between the Participant and the clearing member. The Exchange is provided notice of which clearing members have relationships with which Participants. The clearing member that guarantees the Participant's transactions on the Exchange has a financial interest in understanding the risk tolerance of the Participant. The proposal would provide the Exchange with authority to directly provide clearing members with information that may otherwise be available to such clearing members by virtue of their relationship with the respective Participants.\4\ --------------------------------------------------------------------------- \4\ The Exchange notes that its proposal would cover Sponsored Participants, as set forth in Rule 4615, meaning that the proposal would authorize the Exchange to share the risk settings of Sponsored Participants with clearing members that clear trades on their behalf. --------------------------------------------------------------------------- The proposed commentary to Rule 4765 would codify a list of risk settings that are currently offered by the Exchange and would be covered by proposed Rule 4765. This list is comprehensive with respect to the risk settings that the Exchange presently offers. Certain of these risk settings are mandatory for Participants, meaning that the Exchange either imposes specific risk tolerances that are uniform for all Participants or it sets default risk tolerances, but it affords flexibility to Participants to select their own risk tolerance levels. In certain instances, the Exchange does not require Participants to utilize risk settings, but instead makes them available for use at the option of Participants. The risk settings set forth in the proposed commentary to Rule 4765 comprise the following:Share Size Control--When enabled by a Participant, this optional control will allow a Participant to limit the number of shares that the Participant may associate with an order placed on the Exchange; ISO Control--When enabled by a Participant, this optional control will prevent a Participant from entering an ISO order onto the Exchange; Cancel-on-Disconnect Control--When enabled by a Participant, this optional control will allow a Participant, when it experiences a disruption in its connection to the Exchange, to immediately cancel all pending Exchange orders except for Good-Till- Canceled orders (RASH & FIX only); The BX Kill Switch--This control is described in Rule 4764; Limit Order Protection--This control is described in Rule 4757(d); Price Collar Check -This control will automatically restrict a routed order from executing at a price that differs from the NBBO (at the time of order entry) by more than five percent or $0.25, whichever difference is greater. The system will proceed to route an order unless and until it crosses the greater of these two price collars, and if it does so, then the system will block further routings of the order that fall outside of the collars. For example, if the NBBO is $99 x $100 at the time of entry of a buy order, then the system will route the order at prices at or below $105, but will stop doing so if the offer price rises above $105 (five percent of the NBO); Maximum Order Volume Check--This control will automatically reject an order for routing away that exceeds a maximum volume of shares. As applied to equity orders, the default maximum order volume is set at 25,000 shares, but the Participant may request that the Exchange set a higher default based on historic volume; Cumulative Order Volume Check--This control will automatically block an attempt by a Participant using a particular MPID to route orders away to buy or sell equity securities that, cumulatively, exceed 9.5 million shares during a five second time period; and Duplication Control--This control will automatically reject an order that a Participant submits to the Exchange to the extent that it is duplicative of another order that the Participant submitted to the Exchange during the prior five seconds. As set forth above, the proposal to authorize the Exchange to share any of the Participant's risk settings with the clearing member that clears transactions on behalf of the Participant would be limited to the risk settings specified in the proposed commentary to Rule 4765. The Exchange notes that use by a Participant of the risk settings offered by the Exchange is optional for share size, ISO, kill switch, and cancel-on disconnect controls, and is required in other instances.\5\ By using the optional risk settings, following this proposed Rule change a Participant therefore also opts-in to the Exchange sharing its risk settings with its clearing member. The Exchange notes that any Participant that does not wish to share its mandatory risk settings with its clearing member could avoid sharing such settings by becoming a clearing member. --------------------------------------------------------------------------- \5\ As noted above, for the Maximum Order Volume Check, the Exchange sets a default order volume but Participants have flexibility to adjust this level. --------------------------------------------------------------------------- To the extent that a clearing member might reasonably require a Participant to provide access to its risk settings as a prerequisite to continuing to clear trades on the Participant's behalf, the Exchange's proposal to share those risk settings directly reduces the [[Page 3836]] administrative burden on Participants and ensures that clearing members are receiving information that is up-to-date and conforms to the settings active in the Exchange's trading system. Further, the Exchange believes that the proposal will help such clearing members to better monitor and manage the potential risks that they assume when clearing for Participants of the Exchange. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\6\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\7\ in particular, in that it is designed to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and 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. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b). \7\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The proposed rule change will allow the Exchange to directly provide a Participant's risk settings to the clearing member that clears trades on behalf of the Participant. A clearing member guarantees transactions executed on BX for members with whom it has entered into a clearing arrangement, and therefore bears the risk associated with those transactions. The Exchange therefore believes that it is appropriate for the clearing member to have knowledge of what risk settings the Participant may utilize within the Exchange's trading system. The proposal will permit clearing members who have a financial interest in the risk settings of Participants with whom the Participants have entered into clearing arrangements to better monitor and manage the potential risks assumed by clearing members, thereby providing clearing members with greater control and flexibility over setting their own risk tolerance and exposure and aiding clearing members in complying with the Act. To the extent a clearing member might reasonably require a Participant to provide access to its risk settings as a prerequisite to continuing to clear trades on the Participant's behalf, the Exchange's proposal to share those risk settings directly reduces the administrative burden on Participants and ensures that clearing members are receiving information that is up-to- date and conforms to the settings active in the Exchange's trading system. Moreover, the proposal will foster cooperation and coordination with persons engaged in facilitating transactions in securities and more generally, will protect investors and the public interest, by reducing administrative burdens on both clearing members and other Participants and by allowing clearing members to better monitor their risk exposure. The Exchange further believes that codifying the risk settings described above in proposed commentary to Rule 4765 is consistent with the Act. These settings assist Participants in managing and controlling the risks associated with their access to and activity on the Exchange, both for the benefit of Participants and investors. The Exchange's risk settings, moreover, are consistent with risk settings employed by other exchanges, such as Cboe BYX. Although the Exchange presently offers these risk settings, codifying them will provide additional transparency to Participants regarding the risk settings offered by the Exchange. It will also foster cooperation and coordination with persons engaged in facilitating transactions in securities and more generally, will protect investors and the public interest, by providing additional transparency regarding risk settings offered by the Exchange. 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 that is not necessary or appropriate in furtherance of the purposes of the Act, as amended. The proposed rule change is not designed to address any competitive issues and does not pose an undue burden on non-clearing members because, unlike clearing members, non-clearing members do not guarantee the execution of a Participant's transactions on the Exchange. Moreover, the proposal to share risk settings with clearing members will not burden competition among clearing members because it will apply to all clearing members equally and regardless of size. The Exchange notes that this proposal will not affect competition among Participants because the proposal provides for sharing of all of Participants' risk settings set forth in the commentary to Rule 4765. Any Participant that does not wish to share its risk settings with its clearing member could avoid sharing such settings by becoming a clearing member. Lastly, the proposal to codify the Exchange's risk settings will not burden competition among Participants because the risk settings are already available to or required of Participants and will continue to be available or required of all Participants going forward. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. 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) of the Act \8\ and Rule 19b- 4(f)(6) thereunder.\9\ --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A). \9\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 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. --------------------------------------------------------------------------- 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-BX-2018-001 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange [[Page 3837]] Commission, 100 F Street NE, Washington, DC 20549-1090. All submissions should refer to File Number SR-BX-2018-001. 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-BX-2018-001 and should be submitted on or before February 16, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\ Eduardo A. Aleman, Assistant Secretary. --------------------------------------------------------------------------- \10\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- [FR Doc. 2018-01360 Filed 1-25-18; 8:45 am] BILLING CODE 8011-01-P
![3834 Federal Register / Vol. 83, No. 18 / Friday, January 26, 2018 / Notices
Paper Comments SECURITIES AND EXCHANGE The Exchange offers certain risk
COMMISSION settings applicable to a Participant’s
• Send paper comments in triplicate activities on the Exchange. The risk
to Secretary, Securities and Exchange settings currently offered by the
[Release No. 34–82545; File No. SR–BX–
Commission, 100 F Street NE, 2018–001] Exchange are:
Washington, DC 20549–1090. (a) Share Size Control—When enabled
Self-Regulatory Organizations; Nasdaq by a Participant, this optional control
All submissions should refer to File
BX, Inc.; Notice of Filing and will allow a Participant to limit the
Number SR–CBOE–2018–007. This file number of shares that the Participant
number should be included on the Immediate Effectiveness of Proposed
Rule Change To Add a New Rule 4765 may associate with an order placed on
subject line if email is used. To help the the Exchange;
and Commentary Thereto To Codify
Commission process and review your (b) ISO Control—When enabled by a
Participant Risk Settings and To
comments more efficiently, please use Authorize the Exchange To Share Participant, this optional control will
only one method. The Commission will those Risk Settings With the Clearing prevent a Participant from entering an
post all comments on the Commission’s Member That Clears Transactions on ISO order onto the Exchange;
internet website (http://www.sec.gov/ Behalf of the Participant (c) Cancel-on-Disconnect Control—
rules/sro.shtml). Copies of the When enabled by a Participant, this
submission, all subsequent January 19, 2018. optional control will allow a Participant,
amendments, all written statements Pursuant to Section 19(b)(1) of the when it experiences a disruption in its
with respect to the proposed rule Securities Exchange Act of 1934 connection to the Exchange, to
change that are filed with the (‘‘Act’’),1 and Rule 19b–4 thereunder,2 immediately cancel all pending
Commission, and all written notice is hereby given that on January Exchange orders except for Good-Till-
communications relating to the 11, 2018, Nasdaq BX, Inc. (‘‘BX’’ or Canceled orders (RASH & FIX only);
‘‘Exchange’’) filed with the Securities (d) The BX Kill Switch—This control
proposed rule change between the
and Exchange Commission is described in Rule 4764;
Commission and any person, other than (e) Limit Order Protection—This
those that may be withheld from the (‘‘Commission’’) the proposed rule
change as described in Items I and II control is described in Rule 4757(d);
public in accordance with the (f) Price Collar Check—This control
below, which Items have been prepared
provisions of 5 U.S.C. 552, will be will automatically restrict a routed order
by the Exchange. The Commission is
available for website viewing and from executing at a price that differs
publishing this notice to solicit
printing in the Commission’s Public comments on the proposed rule change from the NBBO (at the time of order
Reference Room, 100 F Street NE, from interested persons. entry) by more than five percent or
Washington, DC 20549 on official $0.25, whichever difference is greater.
business days between the hours of I. Self-Regulatory Organization’s The system will proceed to route an
10:00 a.m. and 3:00 p.m. Copies of the Statement of the Terms of Substance of order unless and until it crosses the
filing also will be available for the Proposed Rule Change greater of these two price collars, and if
inspection and copying at the principal The Exchange proposes to add a new it does so, then the system will block
office of the Exchange. All comments Rule 4765 and commentary thereto to further routings of the order that fall
received will be posted without change. codify Participant risk settings in the outside of the collars. For example, if
Persons submitting comments are Exchange’s trading system and to the NBBO is $99 x $100 at the time of
cautioned that we do not redact or edit authorize the Exchange to share such entry of a buy order, then the system
personal identifying information from risk settings with the clearing member will route the order at prices at or below
that clears transactions on behalf of the $105, but will stop doing so if the offer
comment submissions. You should
Participant. price rises above $105 (five percent of
submit only information that you wish
The text of the proposed rule change the NBO);
to make available publicly. All (g) Maximum Order Volume Check—
submissions should refer to File is set forth below. Proposed new
language is italicized; deleted text is in This control will automatically reject an
Number SR–CBOE–2018–007, and order for routing away that exceeds a
should be submitted on or before brackets.
maximum volume of shares. As applied
February 16, 2018. * * * * * to equity orders, the default maximum
For the Commission, by the Division of Rules of Nasdaq BX order volume is set at 25,000 shares, but
Trading and Markets, pursuant to delegated the Participant may request that the
Equity Rules
authority.35 Exchange set a higher default based on
Eduardo A. Aleman, * * * * * historic volume;
(h) Cumulative Order Volume
Assistant Secretary. Rule 4765. Exchange Sharing of
Check—This control will automatically
[FR Doc. 2018–01367 Filed 1–25–18; 8:45 am] Participant Risk Settings
block an attempt by a Participant using
BILLING CODE 8011–01–P The Exchange may share any a particular MPID to route orders away
Participant risk settings in the trading to buy or sell equity securities that,
system specified in the commentary cumulatively, exceed 9.5 million shares
below with the clearing member that during a five second time period; and
clears transactions on behalf of the (i) Duplication Control—This control
daltland on DSKBBV9HB2PROD with NOTICES
Participant. For purposes of this Rule, will automatically reject an order that a
the term ‘‘Participant’’ has the meaning Participant submits to the Exchange to
set forth in Rule 4701(c). the extent that it is duplicative of
Commentary another order that the Participant
submitted to the Exchange during the
1 15 U.S.C. 78s(b)(1). prior five seconds.
35 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. * * * * *
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![Federal Register / Vol. 83, No. 18 / Friday, January 26, 2018 / Notices 3837
Commission, 100 F Street NE, SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
Washington, DC 20549–1090. COMMISSION Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
All submissions should refer to File Change
Number SR–BX–2018–001. This file [Release No. 34–82540; File No. SR–CBOE–
number should be included on the 2018–004] 1. Purpose
subject line if email is used. To help the The purpose of this filing is to adopt
Self-Regulatory Organizations; Cboe
Commission process and review your fees for customized functionality and/or
Exchange, Inc.; Notice of Filing and
comments more efficiently, please use connectivity on Silexx.3 Silexx is a
Immediate Effectiveness of a Proposed
only one method. The Commission will front-end, broker-neutral, multi-asset
Rule Change To Establish Fees for
post all comments on the Commission’s class order entry and management
Customized Functionality and/or
internet website (http://www.sec.gov/ trading platform owned by Cboe Silexx,
Connectivity on the Silexx Trading
rules/sro.shtml). Copies of the LLC (‘‘Cboe Silexx’’ a wholly owned
Platform
submission, all subsequent subsidiary of Cboe Options’ parent
amendments, all written statements January 19, 2018. company, Cboe Global Markets, Inc.).
with respect to the proposed rule Silexx is an order entry and
Pursuant to Section 19(b)(1) of the management trading platform for listed
change that are filed with the Securities Exchange Act of 1934 (the stocks and options that support [sic]
Commission, and all written ‘‘Act’’),1 and Rule 19b–4 thereunder,2 both simple and complex orders.4 The
communications relating to the notice is hereby given that on January 8, platform is a software application that is
proposed rule change between the 2018, Cboe Exchange, Inc. (the installed locally on a user’s desktop.
Commission and any person, other than ‘‘Exchange’’ or ‘‘Cboe Options’’) filed The platform provides users with the
those that may be withheld from the with the Securities and Exchange capability to send option orders to U.S.
public in accordance with the Commission (the ‘‘Commission’’) the options exchanges and stock orders to
provisions of 5 U.S.C. 552, will be proposed rule change as described in U.S. stock exchanges (and other trading
available for website viewing and Items I, II, and III below, which Items centers), and allows users to input
printing in the Commission’s Public have been prepared by the Exchange. parameters to control the size, timing
Reference Room, 100 F Street NE, The Commission is publishing this and other variables of their trades.
Washington, DC 20549, on official notice to solicit comments on the Silexx includes access to real-time
business days between the hours of proposed rule change from interested options and stock market data, as well
10:00 a.m. and 3:00 p.m. Copies of the persons. as access to certain historical data. The
filing also will be available for I. Self-Regulatory Organization’s platform provides users with the ability
inspection and copying at the principal Statement of the Terms of Substance of to maintain an electronic audit trail and
office of the Exchange. All comments the Proposed Rule Change provide detailed trade reporting. In
received will be posted without change. addition, Silexx offers other
Persons submitting comments are The Exchange proposes to establish functionality such as access to crossing
cautioned that we do not redact or edit fees for customized functionality and/or orders tickets, equity order reports and
connectivity on the Silexx trading market data feeds (for specific fees).
personal identifying information from The Exchange is now proposing an
comment submissions. You should platform (‘‘Silexx’’ or the ‘‘platform’’).
The text of the proposed rule change is addition to the Silexx fee schedule
submit only information that you wish related to customized development of
to make available publicly. All provided in Exhibit 5.
new functionality and/or connectivity.
submissions should refer to File The text of the proposed rule change Pursuant to a Silexx user’s request, Cboe
Number SR–BX–2018–001 and should is also available on the Exchange’s Silexx will develop specifications and a
be submitted on or before February 16, website (http://www.cboe.com/ statement of work relating to
2018. AboutCBOE/CBOELegalRegulatory customized functionality and/or
Home.aspx), at the Exchange’s Office of connectivity. The statement of work will
For the Commission, by the Division of the Secretary, and at the Commission’s
Trading and Markets, pursuant to delegated show the time and materials costs
Public Reference Room. associated with building Silexx to
authority.10
II. Self-Regulatory Organization’s support the user’s request. This addition
Eduardo A. Aleman,
Statement of the Purpose of, and to the Silexx fee schedule will allow
Assistant Secretary. Cboe Silexx to support users with user-
Statutory Basis for, the Proposed Rule
[FR Doc. 2018–01360 Filed 1–25–18; 8:45 am] specific functionality and connectivity.
Change
BILLING CODE 8011–01–P The same reasonable hourly and
In its filing with the Commission, the materials rates will apply to all users
Exchange included statements based on then-current rates in line with
concerning the purpose of and basis for industry standards, which costs (and
the proposed rule change and discussed any reasonable, standard mark-up) will
any comments it received on the be passed through to users. As such, the
proposed rule change. The text of these Exchange believes the addition
statements may be examined at the
3 The Exchange initially filed the proposed fee
places specified in Item IV below. The
daltland on DSKBBV9HB2PROD with NOTICES
changes on January 2, 2018 (SR–CBOE–2018–002).
Exchange has prepared summaries, set On January 8, 2018, the Exchange withdrew that
forth in sections A, B, and C below, of filing and submitted this filing.
the most significant aspects of such 4 The platform also permits users to submit orders
statements. for commodity futures, commodity options and
other non-security products to be sent to designated
contract markets, futures commission merchants,
1 15 U.S.C. 78s(b)(1). introducing brokers or other applicable destinations
10 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. of the users’ choice.
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Document Created: 2018-10-26 10:05:24
Document Modified: 2018-10-26 10:05:24
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 83 FR 3834 |
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