83 FR 39804 - Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Silexx Trading Platform Fees Schedule

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 155 (August 10, 2018)

[Federal Register Volume 83, Number 155 (Friday, August 10, 2018)]
[Notices]
[Pages 39804-39806]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-17122]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83782; File No. SR-CBOE-2018-053]


Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change Relating 
to the Silexx Trading Platform Fees Schedule

August 6, 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 31, 2018, Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe 
Options'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I, II, 
and III 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The purpose of this filing is to amend the Silexx Fees Schedule to 
introduce a waiver of Login ID fees for the first month for new users 
of any of the Silexx platforms and eliminate obsolete language.
    The text of the proposed rule change is also available on the 
Exchange's website (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the 
Secretary, 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 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 purpose of this filing is to amend the Silexx Fees Schedule to 
introduce a waiver of Login ID fees for the first month for new users 
of any of the Silexx platforms and eliminate obsolete language.
    By way of background, Silexx is an order entry and management 
trading platform for listed stocks and options that support both simple 
and complex orders.\3\ The platform is a software application that is 
installed locally on a user's desktop. It provides users with the 
capability to send option orders to U.S. options exchanges and stock 
orders to U.S. stock exchanges (and other trading centers), and allows 
users to input parameters to control the size, timing, and other 
variables of their trades. Silexx includes access to real-time options 
and stock market data, as well as access to certain historical data. 
The platform also provides users with the ability to maintain an 
electronic audit trail and provide detailed trade reporting. In 
addition, Silexx offers other functionality such as access to crossing 
orders tickets, equity order reports, and market data feeds (for 
specific fees). Use of Silexx is completely optional.
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    \3\ The platform also permits users to submit orders for 
commodity futures, commodity options and other non-security products 
to be sent to designated contract markets, futures commission 
merchants, introducing brokers or other applicable destinations of 
the users' choice.
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Login IDs
    Platform Login IDs may be purchased for different versions of the 
platform, including Basic, Pro, Sell-Side, Pro Plus

[[Page 39805]]

Risk, and Buy-Side Manager. The Exchange now proposes to provide that 
Login ID fees are waived for the first month for any new user firm 
(i.e., a firm that has never used any Silexx platform before).\4\ The 
proposed fee waivers apply during the calendar month in which Login IDs 
are first subscribed.\5\
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    \4\ For example, if a new firm subscribes to 3 Basic Login IDs 
and 4 Pro Login IDs in August 2018, all 7 Login IDs will be waived 
for the month of August 2018. All other applicable Silexx fees would 
apply.
    \5\ For example, if a new firm subscribes to a Silexx Login ID 
on August 15th, the firm's Login ID fee would be waived for the 
month of August 2018 only.
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Clean Up Change
    The Exchange recently introduced a two-month free-upgrade period 
for users that are currently on Silexx Basic. The upgrade allowed users 
of Silexx Basic to use the functionality of Silexx Pro for a period of 
two months (May 1, 2018 through June 30, 2018) at the current Silexx 
Basic rate of $200 per month per Login ID. After the two-month period 
ends, beginning July 1, 2018, the users were to be charged at the 
Silexx Pro rate of $400 per month until they choose to downgrade. As 
the free-upgrade period has since ended, the Exchange proposes to 
delete the obsolete language and eliminate the reference in the Silexx 
Fees Schedule
    These proposed changes to the Silexx Fees Schedule are to take 
effect on August 1, 2018.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Securities Exchange Act of 1934 (the ``Act'') and the rules and 
regulations thereunder applicable to the Exchange and, in particular, 
the requirements of Section 6(b) of the Act.\6\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \7\ requirements that the rules of an exchange be 
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 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. Additionally, 
the Exchange believes the proposed rule change is consistent with 
Section 6(b)(4) of the Act,\8\ which requires that Exchange rules 
provide for the equitable allocation of reasonable dues, fees, and 
other charges among its Trading Permit Holders and other persons using 
its facilities.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
    \8\ 15 U.S.C. 78f(b)(4).
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    Particularly, the Exchange believes the proposed fee waiver 
provides for the equitable allocation of reasonable fees because the 
waiver of Platform Login ID fees for the first month will apply to all 
new users of new firms, regardless of which version of the platform 
they subscribe to. Additionally, the Exchange believes the proposed fee 
waiver is reasonable because new user firms will not have to pay those 
fees and because it serves as an incentive to market participants to 
start using the Silexx platform as an additional trading tool on their 
trading desks. The Exchange also notes that use of the platform is 
discretionary and not compulsory.
    Lastly, the Exchange believes eliminating obsolete language 
maintains clarity in the Silexx Fees Schedule and alleviates potential 
confusion, thereby removing impediments to and perfecting the mechanism 
of a free and open market and a national market system, and, in 
general, protecting investors and the public interest.

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

    Cboe Options 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 Exchange believes that 
the proposed rule change will not impose any burden on intramarket 
competition because the proposed rule change applies to all new user 
firms of Silexx. The Exchange notes that each version of Silexx is 
available to all market participants, and users have discretion to 
determine which version of the platform they register for based on 
functionality.
    The Exchange does not believe that the proposed rule changes will 
impose any burden on intermarket competition that is not necessary or 
appropriate in furtherance of the purposes of the Act because the 
proposed change applies only to Cboe Options. To the extent that the 
proposed changes make Cboe Options a more attractive marketplace for 
market participants at other exchanges, such market participants are 
welcome to become Cboe Options market participants.

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

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

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \9\ and paragraph (f) of Rule 19b-4 \10\ 
thereunder. 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 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 will institute proceedings to 
determine whether the proposed rule change should be approved or 
disapproved.
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-CBOE-2018-053 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CBOE-2018-053. 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

[[Page 39806]]

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. All submissions should refer to File Number SR-CBOE-2018-
053 and should be submitted on or before August 31, 2018.
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    \11\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-17122 Filed 8-9-18; 8:45 am]
 BILLING CODE 8011-01-P