83_FR_38909 83 FR 38757 - Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Pilot Period for the Exchange's Retail Price Improvement Program

83 FR 38757 - Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Pilot Period for the Exchange's Retail Price Improvement Program

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 152 (August 7, 2018)

Page Range38757-38759
FR Document2018-16802

Federal Register, Volume 83 Issue 152 (Tuesday, August 7, 2018)
[Federal Register Volume 83, Number 152 (Tuesday, August 7, 2018)]
[Notices]
[Pages 38757-38759]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-16802]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83758; File No. SR-CboeBYX-2018-015]


Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Extend 
the Pilot Period for the Exchange's Retail Price Improvement Program

August 1, 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 30, 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 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 extend the pilot period for the 
Exchange's Retail Price Improvement Program, which is currently 
scheduled to expire on July 31, 2018, until the earlier of approval of 
the filing to make the Program permanent or December 31, 2018.
    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 purpose of the proposed rule change is to extend the pilot 
period for the Exchange's Retail Price Improvement Program (the 
``Program''), which is set to expire on July 31, 2018, until the 
earlier of approval of the filing to make the Program permanent or 
December 31, 2018.\5\
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    \5\ The Exchange has filed to make the pilot program permanent. 
See Cboe-BYX-2018-014 (pending publication).
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Background

    In November 2012, the Commission approved the Program on a pilot 
basis.\6\ The Program is designed to attract retail order flow to the 
Exchange, and allows such order flow to receive potential price 
improvement. The Program is currently limited to trades occurring at 
prices equal to or greater than $1.00 per share. Under the Program, all 
Exchange Users \7\ are permitted to provide potential price improvement 
for Retail Orders \8\ in the form of non-displayed interest that is 
better than the national best bid that is a Protected Quotation 
(``Protected NBB'') or the national best offer that is a Protected 
Quotation (``Protected NBO'', and together with the Protected NBB, the 
``Protected NBBO'').\9\
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    \6\ See Securities Exchange Act Release No. 68303 (November 27, 
2012), 77 FR 71652 (December 3, 2012) (``RPI Approval Order'') (SR-
BYX-2012-019).
    \7\ A ``User'' is defined in BYX Rule 1.5(cc) as any member or 
sponsored participant of the Exchange who is authorized to obtain 
access to the System.
    \8\ A ``Retail Order'' is defined in Rule 11.24(a)(2) as an 
agency order that originates from a natural person and is submitted 
to the Exchange by a RMO, provided that no change is made to the 
terms of the order with respect to price or side of market and the 
order does not originate from a trading algorithm or any 
computerized methodology. See Rule 11.24(a)(2).
    \9\ The term Protected Quotation is defined in BYX Rule 1.5(t) 
and has the same meaning as is set forth in Regulation NMS Rule 
600(b)(58). The terms Protected NBB and Protected NBO are defined in 
BYX Rule 1.5(s). The Protected NBB is the best-priced protected bid 
and the Protected NBO is the best-priced protected offer. Generally, 
the Protected NBB and Protected NBO and the national best bid 
(``NBB'') and national best offer (``NBO'', together with the NBB, 
the ``NBBO'') will be the same. However, a market center is not 
required to route to the NBB or NBO if that market center is subject 
to an exception under Regulation NMS Rule 611(b)(1) or if such NBB 
or NBO is otherwise not available for an automatic execution. In 
such case, the Protected NBB or Protected NBO would be the best-
priced protected bid or offer to which a market center must route 
interest pursuant to Regulation NMS Rule 611.

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[[Page 38758]]

    The Program was approved by the Commission on a pilot basis running 
one year from the date of implementation.\10\ The Commission approved 
the Program on November 27, 2012.\11\ The Exchange implemented the 
Program on January 11, 2013, and has extended the pilot period five 
times.\12\ The pilot period for the Program is set to expire on July 
31, 2018. This filing seeks to extend the pilot until the earlier of 
approval of the filing to make the Program permanent or December 31, 
2018.
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    \10\ See RPI Approval Order, supra note 6 at 71652.
    \11\ Id.
    \12\ See Securities Exchange Act Release Nos. 71249 (January 7, 
2014), 79 FR 2229 (January 13, 2014) (SR-BYX-2014-001); 74111 
(January 22, 2015), 80 FR 4598 (January 28, 2015) (SR-BYX-2015-05); 
76965 (January 22, 2016), 81 FR 4682 (January 27, 2016) (SR-BYX-
2016-01); 78180 (June 28, 2016), 81 FR 43306 (July 1, 2016) (SR-BYX-
2016-15); 81368 (August 10, 2017), 82 FR 38960 (August 16, 2017) 
(SR-BYX-2017-18).
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Proposal To Extend the Operation of the Program

    The Exchange established the Program in an attempt to attract 
retail order flow to the Exchange by potentially providing price 
improvement to such order flow. The Exchange believes that the Program 
promotes competition for retail order flow by allowing Exchange members 
to submit Retail Price Improvement Orders (``RPI Orders'') \13\ to 
interact with Retail Orders. Such competition has the ability to 
promote efficiency by facilitating the price discovery process and 
generating additional investor interest in trading securities, thereby 
promoting capital formation. The Exchange believes that extending the 
pilot is appropriate because it will allow the Exchange and the 
Commission additional time to gather and analyze data regarding the 
Program that the Exchange has committed to provide.\14\ As such, the 
Exchange believes that it is appropriate to extend the current 
operation of the Program.\15\ Through this filing, the Exchange seeks 
to extend the current pilot period of the Program until the earlier of 
approval of the filing to make the Program permanent or December 31, 
2018.
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    \13\ A ``Retail Price Improvement Order'' is defined in Rule 
11.24(a)(3) as an order that consists of non-displayed interest on 
the Exchange that is priced better than the Protected NBB or 
Protected NBO by at least $0.001 and that is identified as such. See 
Rule 11.24(a)(3).
    \14\ See RPI Approval Order, supra note 6 at 71655.
    \15\ Concurrently with this filing, the Exchange has submitted a 
request for an extension of the exemption under Regulation NMS Rule 
612 previously granted by the Commission that permits it to accept 
and rank the RPI orders in sub-penny increments. See Letter from 
Anders Franzon, SVP, Deputy General Counsel, Cboe BYX Exchange, Inc. 
to Brent J. Fields, Secretary, Securities and Exchange Commission 
dated July 30, 2018.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with the 
requirements of the Act and the rules and regulations thereunder that 
are applicable to a national securities exchange, and, in particular, 
with the requirements of Section 6(b) of the Act.\16\ In particular, 
the Exchange believes the proposed change furthers the objectives of 
Section 6(b)(5) of the Act,\17\ in that it is designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade, to foster cooperation and coordination 
with persons engaged in facilitating transactions in securities, and to 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system. The Exchange believes that 
extending the pilot period for the Program is consistent with these 
principles because the Program is reasonably designed to attract retail 
order flow to the exchange environment, while helping to ensure that 
retail investors benefit from the better price that liquidity providers 
are willing to give their orders. Additionally, as previously stated, 
the competition promoted by the Program may facilitate the price 
discovery process and potentially generate additional investor interest 
in trading securities. The extension of the pilot period will allow the 
Commission and the Exchange to continue to monitor the Program for its 
potential effects on public price discovery, and on the broader market 
structure.
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    \16\ 15 U.S.C. 78f(b).
    \17\ 15 U.S.C. 78f(b)(5).
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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 that is not necessary or appropriate 
in furtherance of the purposes of the Act. The proposed rule change 
extends an established pilot program, thus allowing the Program to 
enhance competition for retail order flow and contribute to the public 
price discovery process.

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

    Because the foregoing proposed rule change does not: (A) 
Significantly affect the protection of investors or the public 
interest; (B) impose any significant burden on competition; and (C) by 
its terms, 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 \18\ and 
paragraph (f)(6) of Rule 19b-4 thereunder, provided that the self-
regulatory organization has given the Commission written notice of its 
intent to file 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,\19\ the proposed rule change has 
become effective pursuant to Section 19(b)(3)(A) of the Act \20\ and 
Rule 19b-4(f)(6) thereunder.\21\
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    \18\ 15 U.S.C. 78s(b)(3)(A).
    \19\ The Exchange has fulfilled this requirement.
    \20\ 15 U.S.C. 78s(b)(3)(A).
    \21\ 17 CFR 240.19b-4(f)(6).
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    The Exchange has requested that the Commission waive the 30-day 
operative delay period after which a proposed rule change under Rule 
19b-4(f)(6) becomes operative so that the proposal may become operative 
immediately upon filing. The Commission believes that waiver of the 30-
day operative delay is consistent with the protection of investors and 
the public interest because such waiver will allow the Exchange to 
extend the Program uninterrupted and will ensure that the Program 
continues while the Exchange and Commission continue to analyze data. 
Accordingly, the Commission hereby grants the Exchange's request and 
designates the proposal operative upon filing.\22\
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    \22\ For purposes only of waiving the operative delay, the 
Commission has considered the proposed rule's impact on efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings under 
Section 19(b)(2)(B) \23\ of the Act to determine whether the proposed 
rule

[[Page 38759]]

change should be approved or disapproved.
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    \23\ 15 U.S.C. 78s(b)(2)(B).
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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 proposal 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 No. SR-CboeBYX-2018-015 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 No. SR-CboeBYX-2018-015. 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 such filing will also be available for inspection 
and copying at the principal office of the Exchange. All comments 
received will be posted without change; the Commission does not edit 
personal identifying information from submissions. You should submit 
only information that you wish to make available publicly. All 
submissions should refer to File No. SR-CboeBYX-2018-015 and should be 
submitted on or before August 28, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\24\
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    \24\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2018-16802 Filed 8-6-18; 8:45 am]
BILLING CODE 8011-01-P



                                                                                Federal Register / Vol. 83, No. 152 / Tuesday, August 7, 2018 / Notices                                                    38757

                                                 • Send an email to rule-comments@                       SECURITIES AND EXCHANGE                               forth in Sections A, B, and C below, of
                                               sec.gov. Please include File Number SR–                   COMMISSION                                            the most significant parts of such
                                               NYSEArca–2018–54 on the subject line.                                                                           statements.
                                                                                                         [Release No. 34–83758; File No. SR–
                                               Paper Comments                                            CboeBYX–2018–015]                                     A. Self-Regulatory Organization’s
                                                                                                                                                               Statement of the Purpose of, and
                                                 • Send paper comments in triplicate                     Self-Regulatory Organizations; Cboe                   Statutory Basis for, the Proposed Rule
                                               to Secretary, Securities and Exchange                     BYX Exchange, Inc.; Notice of Filing                  Change
                                               Commission, 100 F Street NE,                              and Immediate Effectiveness of a
                                                                                                         Proposed Rule Change To Extend the                    1. Purpose
                                               Washington, DC 20549–1090.
                                                                                                         Pilot Period for the Exchange’s Retail                  The purpose of the proposed rule
                                               All submissions should refer to File                      Price Improvement Program                             change is to extend the pilot period for
                                               Number SR–NYSEArca–2018–54. This
                                                                                                         August 1, 2018.                                       the Exchange’s Retail Price
                                               file number should be included on the
                                                                                                            Pursuant to Section 19(b)(1) of the                Improvement Program (the ‘‘Program’’),
                                               subject line if email is used. To help the
                                                                                                         Securities Exchange Act of 1934 (the                  which is set to expire on July 31, 2018,
                                               Commission process and review your                                                                              until the earlier of approval of the filing
                                               comments more efficiently, please use                     ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                                                                         notice is hereby given that on July 30,               to make the Program permanent or
                                               only one method. The Commission will                                                                            December 31, 2018.5
                                               post all comments on the Commission’s                     2018, Cboe BYX Exchange, Inc. (the
                                                                                                         ‘‘Exchange’’ or ‘‘BYX’’) filed with the               Background
                                               internet website (http://www.sec.gov/
                                                                                                         Securities and Exchange Commission
                                               rules/sro.shtml). Copies of the                                                                                    In November 2012, the Commission
                                                                                                         (‘‘Commission’’) the proposed rule
                                               submission, all subsequent                                                                                      approved the Program on a pilot basis.6
                                                                                                         change as described in Items I and II
                                               amendments, all written statements                        below, which Items have been prepared                 The Program is designed to attract retail
                                               with respect to the proposed rule                         by the Exchange. The Exchange has                     order flow to the Exchange, and allows
                                               change that are filed with the                            designated this proposal as a ‘‘non-                  such order flow to receive potential
                                               Commission, and all written                               controversial’’ proposed rule change                  price improvement. The Program is
                                               communications relating to the                            pursuant to Section 19(b)(3)(A) of the                currently limited to trades occurring at
                                               proposed rule change between the                          Act 3 and Rule 19b–4(f)(6)(iii)                       prices equal to or greater than $1.00 per
                                               Commission and any person, other than                     thereunder,4 which renders it effective               share. Under the Program, all Exchange
                                               those that may be withheld from the                       upon filing with the Commission. The                  Users 7 are permitted to provide
                                               public in accordance with the                             Commission is publishing this notice to               potential price improvement for Retail
                                               provisions of 5 U.S.C. 552, will be                       solicit comments on the proposed rule                 Orders 8 in the form of non-displayed
                                               available for website viewing and                         change from interested persons.                       interest that is better than the national
                                               printing in the Commission’s Public                                                                             best bid that is a Protected Quotation
                                                                                                         I. Self-Regulatory Organization’s                     (‘‘Protected NBB’’) or the national best
                                               Reference Room, 100 F Street NE,                          Statement of the Terms of Substance of
                                               Washington, DC 20549 on official                                                                                offer that is a Protected Quotation
                                                                                                         the Proposed Rule Change                              (‘‘Protected NBO’’, and together with the
                                               business days between the hours of
                                               10:00 a.m. and 3:00 p.m. Copies of the                       The Exchange filed a proposal to                   Protected NBB, the ‘‘Protected NBBO’’).9
                                               filing also will be available for                         extend the pilot period for the
                                               inspection and copying at the principal                   Exchange’s Retail Price Improvement                      5 The Exchange has filed to make the pilot

                                                                                                         Program, which is currently scheduled                 program permanent. See Cboe–BYX–2018–014
                                               office of the Exchange. All comments                                                                            (pending publication).
                                                                                                         to expire on July 31, 2018, until the
                                               received will be posted without change.                                                                            6 See Securities Exchange Act Release No. 68303
                                                                                                         earlier of approval of the filing to make             (November 27, 2012), 77 FR 71652 (December 3,
                                               Persons submitting comments are
                                                                                                         the Program permanent or December 31,                 2012) (‘‘RPI Approval Order’’) (SR–BYX–2012–019).
                                               cautioned that we do not redact or edit                   2018.                                                    7 A ‘‘User’’ is defined in BYX Rule 1.5(cc) as any
                                               personal identifying information from                        The text of the proposed rule change               member or sponsored participant of the Exchange
                                               comment submissions. You should                           is available at the Exchange’s website at             who is authorized to obtain access to the System.
                                               submit only information that you wish                     www.markets.cboe.com, at the principal
                                                                                                                                                                  8 A ‘‘Retail Order’’ is defined in Rule 11.24(a)(2)

                                                                                                                                                               as an agency order that originates from a natural
                                               to make available publicly. All                           office of the Exchange, and at the                    person and is submitted to the Exchange by a RMO,
                                               submissions should refer to File                          Commission’s Public Reference Room.                   provided that no change is made to the terms of the
                                               Number SR–NYSEArca–2018–54 and                                                                                  order with respect to price or side of market and
                                               should be submitted on or before                          II. Self-Regulatory Organization’s                    the order does not originate from a trading
                                               August 28, 2018.                                          Statement of the Purpose of, and                      algorithm or any computerized methodology. See
                                                                                                         Statutory Basis for, the Proposed Rule                Rule 11.24(a)(2).
                                                                                                                                                                  9 The term Protected Quotation is defined in BYX
                                                 For the Commission, by the Division of                  Change                                                Rule 1.5(t) and has the same meaning as is set forth
                                               Trading and Markets, pursuant to delegated
                                                                                                           In its filing with the Commission, the              in Regulation NMS Rule 600(b)(58). The terms
                                               authority.22                                                                                                    Protected NBB and Protected NBO are defined in
                                                                                                         Exchange included statements                          BYX Rule 1.5(s). The Protected NBB is the best-
                                               Robert W. Errett,
                                                                                                         concerning the purpose of and basis for               priced protected bid and the Protected NBO is the
                                               Deputy Secretary.                                         the proposed rule change and discussed                best-priced protected offer. Generally, the Protected
                                               [FR Doc. 2018–16803 Filed 8–6–18; 8:45 am]                any comments it received on the                       NBB and Protected NBO and the national best bid
                                                                                                                                                               (‘‘NBB’’) and national best offer (‘‘NBO’’, together
                                               BILLING CODE 8011–01–P                                    proposed rule change. The text of these               with the NBB, the ‘‘NBBO’’) will be the same.
                                                                                                         statements may be examined at the
daltland on DSKBBV9HB2PROD with NOTICES




                                                                                                                                                               However, a market center is not required to route
                                                                                                         places specified in Item IV below. The                to the NBB or NBO if that market center is subject
                                                                                                         Exchange has prepared summaries, set                  to an exception under Regulation NMS Rule
                                                                                                                                                               611(b)(1) or if such NBB or NBO is otherwise not
                                                                                                           1 15
                                                                                                                                                               available for an automatic execution. In such case,
                                                                                                                U.S.C. 78s(b)(1).                              the Protected NBB or Protected NBO would be the
                                                                                                           2 17 CFR 240.19b–4.                                 best-priced protected bid or offer to which a market
                                                                                                           3 15 U.S.C. 78s(b)(3)(A).
                                                                                                                                                               center must route interest pursuant to Regulation
                                                 22 17   CFR 200.30–3(a)(12).                              4 17 CFR 240.19b–4(f)(6)(iii).                      NMS Rule 611.



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                                               38758                           Federal Register / Vol. 83, No. 152 / Tuesday, August 7, 2018 / Notices

                                                 The Program was approved by the                         the Program permanent or December 31,                   comments from Members or other
                                               Commission on a pilot basis running                       2018.                                                   interested parties.
                                               one year from the date of
                                                                                                         2. Statutory Basis                                      III. Date of Effectiveness of the
                                               implementation.10 The Commission
                                                                                                            The Exchange believes that its                       Proposed Rule Change and Timing for
                                               approved the Program on November 27,                                                                              Commission Action
                                               2012.11 The Exchange implemented the                      proposal is consistent with the
                                               Program on January 11, 2013, and has                      requirements of the Act and the rules                      Because the foregoing proposed rule
                                               extended the pilot period five times.12                   and regulations thereunder that are                     change does not: (A) Significantly affect
                                               The pilot period for the Program is set                   applicable to a national securities                     the protection of investors or the public
                                               to expire on July 31, 2018. This filing                   exchange, and, in particular, with the                  interest; (B) impose any significant
                                               seeks to extend the pilot until the earlier               requirements of Section 6(b) of the                     burden on competition; and (C) by its
                                               of approval of the filing to make the                     Act.16 In particular, the Exchange                      terms, become operative for 30 days
                                               Program permanent or December 31,                         believes the proposed change furthers                   from the date on which it was filed or
                                               2018.                                                     the objectives of Section 6(b)(5) of the                such shorter time as the Commission
                                                                                                         Act,17 in that it is designed to prevent                may designate it has become effective
                                               Proposal To Extend the Operation of                       fraudulent and manipulative acts and                    pursuant to Section 19(b)(3)(A) of the
                                               the Program                                               practices, to promote just and equitable                Act 18 and paragraph (f)(6) of Rule 19b–
                                                  The Exchange established the                           principles of trade, to foster cooperation              4 thereunder, provided that the self-
                                               Program in an attempt to attract retail                   and coordination with persons engaged                   regulatory organization has given the
                                               order flow to the Exchange by                             in facilitating transactions in securities,             Commission written notice of its intent
                                               potentially providing price                               and to remove impediments to and                        to file the proposed rule change at least
                                               improvement to such order flow. The                       perfect the mechanism of a free and                     five business days prior to the date of
                                               Exchange believes that the Program                        open market and a national market                       filing of the proposed rule change or
                                               promotes competition for retail order                     system. The Exchange believes that                      such shorter time as designated by the
                                               flow by allowing Exchange members to                      extending the pilot period for the                      Commission,19 the proposed rule
                                               submit Retail Price Improvement Orders                    Program is consistent with these                        change has become effective pursuant to
                                               (‘‘RPI Orders’’) 13 to interact with Retail               principles because the Program is                       Section 19(b)(3)(A) of the Act 20 and
                                               Orders. Such competition has the ability                  reasonably designed to attract retail                   Rule 19b–4(f)(6) thereunder.21
                                               to promote efficiency by facilitating the                 order flow to the exchange environment,                    The Exchange has requested that the
                                               price discovery process and generating                    while helping to ensure that retail                     Commission waive the 30-day operative
                                               additional investor interest in trading                   investors benefit from the better price                 delay period after which a proposed
                                               securities, thereby promoting capital                     that liquidity providers are willing to                 rule change under Rule 19b–4(f)(6)
                                                                                                         give their orders. Additionally, as                     becomes operative so that the proposal
                                               formation. The Exchange believes that
                                                                                                         previously stated, the competition                      may become operative immediately
                                               extending the pilot is appropriate
                                                                                                         promoted by the Program may facilitate                  upon filing. The Commission believes
                                               because it will allow the Exchange and
                                                                                                         the price discovery process and                         that waiver of the 30-day operative
                                               the Commission additional time to
                                                                                                         potentially generate additional investor                delay is consistent with the protection
                                               gather and analyze data regarding the
                                                                                                         interest in trading securities. The                     of investors and the public interest
                                               Program that the Exchange has
                                                                                                         extension of the pilot period will allow                because such waiver will allow the
                                               committed to provide.14 As such, the
                                                                                                         the Commission and the Exchange to                      Exchange to extend the Program
                                               Exchange believes that it is appropriate
                                                                                                         continue to monitor the Program for its                 uninterrupted and will ensure that the
                                               to extend the current operation of the
                                                                                                         potential effects on public price                       Program continues while the Exchange
                                               Program.15 Through this filing, the
                                                                                                         discovery, and on the broader market                    and Commission continue to analyze
                                               Exchange seeks to extend the current
                                                                                                         structure.                                              data. Accordingly, the Commission
                                               pilot period of the Program until the
                                                                                                                                                                 hereby grants the Exchange’s request
                                               earlier of approval of the filing to make                 B. Self-Regulatory Organization’s                       and designates the proposal operative
                                                                                                         Statement on Burden on Competition                      upon filing.22
                                                 10 See   RPI Approval Order, supra note 6 at 71652.
                                                 11 Id.                                                    The Exchange does not believe that                       At any time within 60 days of the
                                                  12 See Securities Exchange Act Release Nos.            the proposed rule change will impose                    filing of such proposed rule change, the
                                               71249 (January 7, 2014), 79 FR 2229 (January 13,          any burden on competition that is not                   Commission summarily may
                                               2014) (SR–BYX–2014–001); 74111 (January 22,               necessary or appropriate in furtherance                 temporarily suspend such rule change if
                                               2015), 80 FR 4598 (January 28, 2015) (SR–BYX–                                                                     it appears to the Commission that such
                                               2015–05); 76965 (January 22, 2016), 81 FR 4682            of the purposes of the Act. The
                                               (January 27, 2016) (SR–BYX–2016–01); 78180 (June          proposed rule change extends an                         action is necessary or appropriate in the
                                               28, 2016), 81 FR 43306 (July 1, 2016) (SR–BYX–            established pilot program, thus allowing                public interest, for the protection of
                                               2016–15); 81368 (August 10, 2017), 82 FR 38960            the Program to enhance competition for                  investors, or otherwise in furtherance of
                                               (August 16, 2017) (SR–BYX–2017–18).                                                                               the purposes of the Act. If the
                                                  13 A ‘‘Retail Price Improvement Order’’ is defined
                                                                                                         retail order flow and contribute to the
                                               in Rule 11.24(a)(3) as an order that consists of non-     public price discovery process.                         Commission takes such action, the
                                               displayed interest on the Exchange that is priced                                                                 Commission shall institute proceedings
                                               better than the Protected NBB or Protected NBO by
                                                                                                         C. Self-Regulatory Organization’s                       under Section 19(b)(2)(B) 23 of the Act to
                                               at least $0.001 and that is identified as such. See       Statement on Comments on the                            determine whether the proposed rule
                                               Rule 11.24(a)(3).                                         Proposed Rule Change Received From
                                                  14 See RPI Approval Order, supra note 6 at 71655.
                                                                                                         Members, Participants or Others                           18 15 U.S.C. 78s(b)(3)(A).
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                                                  15 Concurrently with this filing, the Exchange has
                                                                                                                                                                   19 The Exchange has fulfilled this requirement.
                                               submitted a request for an extension of the                 The Exchange has not solicited, and
                                                                                                                                                                   20 15 U.S.C. 78s(b)(3)(A).
                                               exemption under Regulation NMS Rule 612                   does not intend to solicit, comments on
                                                                                                                                                                   21 17 CFR 240.19b–4(f)(6).
                                               previously granted by the Commission that permits         this proposed rule change. The                            22 For purposes only of waiving the operative
                                               it to accept and rank the RPI orders in sub-penny
                                               increments. See Letter from Anders Franzon, SVP,
                                                                                                         Exchange has not received any written                   delay, the Commission has considered the proposed
                                               Deputy General Counsel, Cboe BYX Exchange, Inc.                                                                   rule’s impact on efficiency, competition, and capital
                                                                                                           16 15   U.S.C. 78f(b).                                formation. See 15 U.S.C. 78c(f).
                                               to Brent J. Fields, Secretary, Securities and
                                               Exchange Commission dated July 30, 2018.                    17 15   U.S.C. 78f(b)(5).                               23 15 U.S.C. 78s(b)(2)(B).




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                                                                             Federal Register / Vol. 83, No. 152 / Tuesday, August 7, 2018 / Notices                                                  38759

                                               change should be approved or                              For the Commission, by the Division of               SMALL BUSINESS ADMINISTRATION
                                               disapproved.                                            Trading and Markets, pursuant to delegated
                                                                                                       authority.24                                           [Disaster Declaration #15584 and #15585;
                                               IV. Solicitation of Comments                            Robert W. Errett,                                      Texas Disaster Number TX–00500]
                                                                                                       Deputy Secretary.                                      Presidential Declaration Amendment of
                                                 Interested persons are invited to
                                                                                                       [FR Doc. 2018–16802 Filed 8–6–18; 8:45 am]             a Major Disaster for the State of Texas
                                               submit written data, views and
                                                                                                       BILLING CODE 8011–01–P
                                               arguments concerning the foregoing,                                                                            AGENCY: U.S. Small Business
                                               including whether the proposal is                                                                              Administration.
                                               consistent with the Act. Comments may                   SECURITIES AND EXCHANGE                                ACTION: Amendment 2.
                                               be submitted by any of the following                    COMMISSION
                                               methods:                                                                                                       SUMMARY:   This is an amendment of the
                                                                                                       Sunshine Act Meetings                                  Presidential declaration of a major
                                               Electronic Comments                                                                                            disaster for the State of Texas (FEMA–
                                                 • Use the Commission’s internet                       TIME AND DATE:2:00 p.m. on Thursday,                   4377–DR), dated 07/06/2018.
                                               comment form (http://www.sec.gov/                       August 9, 2018.                                           Incident: Severe Storms and Flooding.
                                                                                                                                                                 Incident Period: 06/19/2018 through
                                               rules/sro.shtml); or                                    PLACE:Closed Commission Hearing                        07/13/2018.
                                                 • Send an email to rule-comments@                     Room 10800.                                            DATES: Issued on 07/31/2018.
                                               sec.gov. Please include File No. SR–                    STATUS: This meeting will be closed to                    Physical Loan Application Deadline
                                               CboeBYX–2018–015 on the subject line.                   the public.                                            Date: 09/04/2018.
                                                                                                                                                                 Economic Injury (EIDL) Loan
                                               Paper Comments                                          MATTERS TO BE CONSIDERED:
                                                                                                                                                              Application Deadline Date: 04/08/2019.
                                                                                                       Commissioners, Counsel to the
                                                 • Send paper comments in triplicate                   Commissioners, the Secretary to the
                                                                                                                                                              ADDRESSES: Submit completed loan
                                               to Secretary, Securities and Exchange                                                                          applications to: U.S. Small Business
                                                                                                       Commission, and recording secretaries
                                               Commission, 100 F Street NE,                                                                                   Administration, Processing and
                                                                                                       will attend the closed meeting. Certain
                                               Washington, DC 20549–1090.                                                                                     Disbursement Center, 14925 Kingsport
                                                                                                       staff members who have an interest in
                                                                                                                                                              Road, Fort Worth, TX 76155.
                                               All submissions should refer to File No.                the matters also may be present.
                                                                                                                                                              FOR FURTHER INFORMATION CONTACT: A.
                                               SR–CboeBYX–2018–015. This file                             The General Counsel of the                          Escobar, Office of Disaster Assistance,
                                               number should be included on the                        Commission, or his designee, has                       U.S. Small Business Administration,
                                               subject line if email is used. To help the              certified that, in his opinion, one or                 409 3rd Street SW, Suite 6050,
                                               Commission process and review your                      more of the exemptions set forth in 5                  Washington, DC 20416, (202) 205–6734.
                                               comments more efficiently, please use                   U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B)
                                                                                                                                                              SUPPLEMENTARY INFORMATION: The notice
                                               only one method. The Commission will                    and (10) and 17 CFR 200.402(a)(3),
                                                                                                       (a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and         of the President’s major disaster
                                               post all comments on the Commission’s                                                                          declaration for the State of Texas, dated
                                               internet website (http://www.sec.gov/                   (a)(10), permit consideration of the
                                                                                                       scheduled matters at the closed meeting.               07/06/2018, is hereby amended to
                                               rules/sro.shtml). Copies of the                                                                                include the following areas as adversely
                                               submission, all subsequent                                 Commissioner Stein, as duty officer,                affected by the disaster:
                                               amendments, all written statements                      voted to consider the items listed for the
                                                                                                                                                              Primary Counties (Physical Damage and
                                               with respect to the proposed rule                       closed meeting in closed session.
                                                                                                                                                                   Economic Injury Loans): Jim Wells
                                               change that are filed with the                             The subject matters of the closed                   Contiguous Counties (Economic Injury
                                               Commission, and all written                             meeting will be:                                            Loans Only):
                                               communications relating to the                             Institution and settlement of                          Texas: Duval, Kleberg, Live Oak,
                                               proposed rule change between the                        injunctive actions;                                         Nueces, San Patricio
                                               Commission and any person, other than                      Institution and settlement of                          All other information in the original
                                               those that may be withheld from the                     administrative proceedings;                            declaration remains unchanged.
                                               public in accordance with the                              Resolution of litigation claims; and                (Catalog of Federal Domestic Assistance
                                               provisions of 5 U.S.C. 552, will be                                                                            Number 59008)
                                               available for website viewing and                          Other matters relating to enforcement
                                                                                                       proceedings.                                           James Rivera,
                                               printing in the Commission’s Public
                                               Reference Room, 100 F Street NE,                           At times, changes in Commission                     Associate Administrator for Disaster
                                                                                                       priorities require alterations in the                  Assistance.
                                               Washington, DC 20549, on official
                                               business days between the hours of                      scheduling of meeting items.                           [FR Doc. 2018–16866 Filed 8–6–18; 8:45 am]
                                                                                                                                                              BILLING CODE 8025–01–P
                                               10:00 a.m. and 3:00 p.m. Copies of such                 CONTACT PERSON FOR MORE INFORMATION:
                                               filing will also be available for                       For further information and to ascertain
                                               inspection and copying at the principal                 what, if any, matters have been added,                 SMALL BUSINESS ADMINISTRATION
                                               office of the Exchange. All comments                    deleted or postponed; please contact
                                               received will be posted without change;                 Brent J. Fields from the Office of the                 [Disaster Declaration #15618 and #15619;
                                               the Commission does not edit personal                   Secretary at (202) 551–5400.                           Vermont Disaster Number VT–00035]
                                               identifying information from
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                                                                                                         Dated: August 2, 2018.                               Presidential Declaration of a Major
                                               submissions. You should submit only                     Brent J. Fields,                                       Disaster for Public Assistance Only for
                                               information that you wish to make                       Secretary.                                             the State of Vermont
                                               available publicly. All submissions                     [FR Doc. 2018–16903 Filed 8–3–18; 11:15 am]
                                               should refer to File No. SR–CboeBYX–                                                                           AGENCY: U.S. Small Business
                                                                                                       BILLING CODE 8011–01–P
                                               2018–015 and should be submitted on                                                                            Administration.
                                               or before August 28, 2018.                                24 17
                                                                                                                                                              ACTION: Notice.
                                                                                                                 CFR 200.30–3(a)(12).



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Document Created: 2018-11-06 10:39:17
Document Modified: 2018-11-06 10:39:17
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 38757 

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