83_FR_42491 83 FR 42329 - Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use on Cboe EDGA Exchange, Inc.

83 FR 42329 - Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use on Cboe EDGA Exchange, Inc.

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 162 (August 21, 2018)

Page Range42329-42330
FR Document2018-17960

Federal Register, Volume 83 Issue 162 (Tuesday, August 21, 2018)
[Federal Register Volume 83, Number 162 (Tuesday, August 21, 2018)]
[Notices]
[Pages 42329-42330]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-17960]



[[Page 42329]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83855; File No. SR-CboeEDGA-2018-014]


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

August 15, 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 August 1, 2018, Cboe EDGA Exchange, Inc. (the ``Exchange'' or 
``EDGA'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II 
and III below, which Items have been prepared by the Exchange. The 
Exchange has designated the proposed rule change as one establishing or 
changing a member due, fee, or other charge imposed by the Exchange 
under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) 
thereunder,\4\ which renders the proposed rule change effective upon 
filing with the Commission. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange filed a proposal to amend the Exchange's fee schedule 
applicable to its equities trading platform to: (1) Eliminate rebates 
provided to orders in securities priced above $1.00 that remove 
liquidity from the Exchange's order book under fee codes DR, DT, HR, 
MT, and PT, and (2) increase the routing fee charged to orders routed 
to Investors Exchange LLC using the DIRC routing strategy under fee 
code IX.
    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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the proposed rule change is to amend the Exchange's 
fee schedule applicable to its equities trading platform (``EDGA 
Equities'') to: (1) Eliminate rebates provided to orders in securities 
priced above $1.00 that remove liquidity from the Exchange's order book 
under fee codes DR,\5\ DT,\6\ HR,\7\ MT,\8\ and PT,\9\ and (2) increase 
the routing fee charged to orders routed to Investors Exchange LLC 
(``IEX'') using the DIRC \10\ routing strategy under fee code IX.\11\
---------------------------------------------------------------------------

    \5\ DR and DT are associated with MidPoint Discretionary Orders 
(``MDOs'') that remove liquidity, either not within discretionary 
range (i.e., DR) or within discretionary range (i.e., DT).
    \6\ Id.
    \7\ HR is associated with Non-Displayed orders that remove 
liquidity.
    \8\ MT is associated with Non-Displayed orders that remove 
liquidity using Mid-Point Peg.
    \9\ PT is associated with orders that remove liquidity from EDGA 
using RMPT or RMPL routing strategy.
    \10\ Destination Specific or ``DIRC'' is a routing option under 
which an order checks the System for available shares and then is 
sent to an away trading center or centers specified by the User. See 
Rule 11.11(g)(14).
    \11\ IX is associated with orders routed to IEX using the DIRC 
routing strategy.
---------------------------------------------------------------------------

Fee Codes DR, DT, HR, MT, and PT: Non-Displayed Remove Fee
    The Exchange charges fees based on an inverted fee structure where 
orders are provided rebates for removing liquidity and charged a fee 
for adding liquidity. Currently, both displayed and non-displayed 
orders in securities priced at or above $1.00 are provided a rebate of 
$0.00040 for removing liquidity. The Exchange proposes to eliminate the 
rebate for orders that remove liquidity from the Exchange's order book 
under fee codes DR, DT, HR, MT, and PT, which all relate to liquidity 
removing orders that contain either an explicit non-displayed 
instruction or a non-displayed discretionary component.\12\ Orders 
executed under these fee codes will receive free executions instead of 
a rebate.
---------------------------------------------------------------------------

    \12\ While MDOs may be displayed or non-displayed, these orders 
contain a non-displayed discretionary component to execute at prices 
up (down) to and including the midpoint of the NBBO. See Rule 
11.8(e).
---------------------------------------------------------------------------

Fee Code IX: IEX Routing Fees
    Currently, the fee schedule provides that orders in securities 
priced at or above $1.00 routed to IEX using the Destination Specific 
(i.e., ``DIRC'') routing strategy are charged a fee of $0.0010 per 
share under fee code IX. The Exchange proposes to increase the routing 
fee charged to orders routed to IEX to $0.0030 so that the Exchange can 
recoup increased costs associated with routing order flow to that 
market.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 of the Act,\13\ in general, and 
furthers the objectives of Section 6(b)(4),\14\ in particular, as it is 
designed to provide for the equitable allocation of reasonable dues, 
fees and other charges among its members and other persons using its 
facilities.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78f.
    \14\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

Fee Codes DR, DT, HR, MT, and PT: Non-Displayed Remove Fee
    The Exchange believes that the proposed fees for non-displayed 
orders are reasonable. While the Exchange currently provides a rebate 
for both displayed and non-displayed orders that remove liquidity, the 
Exchange has determined to instead charge no fee for non-displayed 
orders. This change is designed to incentivize Members to enter 
displayed liquidity on the Exchange since displayed orders would be 
eligible for rebates when removing liquidity while non-displayed orders 
would not. Furthermore, the Exchange's inverted fee structure would 
continue to incentivize liquidity takers since orders that remove 
liquidity would remain eligible for better pricing--including rebates 
for displayed orders and free executions for non-displayed orders--than 
orders that add liquidity and are charged a fee. In addition, the 
Exchange believes that this change is equitable and not unfairly 
discriminatory because the proposed taker fees would apply equally to 
all Members that choose to enter non-displayed orders. Members that 
would prefer to receive a rebate for orders that remove liquidity can 
utilize a range of displayed order types offered by the Exchange, 
thereby promoting a more transparent market.
Fee Code IX: IEX Routing Fees
    As other exchanges amend the fees charged for accessing liquidity, 
the Exchange believes that it is appropriate

[[Page 42330]]

to amend its own routing fees so that it can recoup costs associated 
with routing orders to such away markets. The Exchange believes that 
the proposed fees for orders routed to IEX are reasonable and equitable 
because they reflect the costs associated with executing orders on IEX 
and additional operational expenses incurred by the Exchange. The 
Exchange is proposing to increase its routing fees due to an announced 
change in IEX's fee schedule that would result in a significant 
increase in the transaction fees being charged by IEX to some orders, 
including orders routed by the Exchange.\15\ The Exchange believes that 
it is reasonable and equitable to pass these increased costs to Members 
that use the Exchange to route orders to that market. Members that do 
not wish to pay the proposed fee can send their routable orders 
directly to IEX instead of using routing functionality provided by the 
Exchange. The Exchange also believes that this change is equitable and 
not unfairly discriminatory because the proposed fees would apply 
equally to all Members that use the Exchange to route orders to IEX 
using the DIRC routing strategy. Routing through the Exchange is 
voluntary, and the Exchange operates in a competitive environment where 
market participants can readily direct order flow to competing venues 
or providers of routing services if they deem fee levels to be 
excessive.
---------------------------------------------------------------------------

    \15\ See SR-IEX-2018-16 (pending publication).
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed rule change will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act, as amended. The 
proposed changes to the non-displayed remove fees are designed to 
incentivize displayed liquidity, which the Exchange believes will 
benefit all market participants by encouraging a transparent and 
competitive market. Furthermore, the proposed change to the IEX routing 
fee is meant to recoup costs associated with executing orders on that 
market, and is therefore not designed to have any significant impact on 
competition. The Exchange operates in a highly competitive market in 
which market participants can readily direct their order flow to 
competing venues. In such an environment, the Exchange must continually 
review, and consider adjusting, its fees and rebates to remain 
competitive with other exchanges. For the reasons described above, the 
Exchange believes that the proposed fee changes reflect this 
competitive environment.

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act\16\ and paragraph (f) of Rule 19b-4 
thereunder.\17\ 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.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78s(b)(3)(A).
    \17\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

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-CboeEDGA-2018-014 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-CboeEDGA-2018-014. 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 this filing will also 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-CboeEDGA-2018-014 and should be 
submitted on or before September 11, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\
---------------------------------------------------------------------------

    \18\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-17960 Filed 8-20-18; 8:45 am]
 BILLING CODE 8011-01-P



                                                                                  Federal Register / Vol. 83, No. 162 / Tuesday, August 21, 2018 / Notices                                             42329

                                                SECURITIES AND EXCHANGE                                  any comments it received on the                           these fee codes will receive free
                                                COMMISSION                                               proposed rule change. The text of these                   executions instead of a rebate.
                                                                                                         statements may be examined at the
                                                [Release No. 34–83855; File No. SR–                                                                                Fee Code IX: IEX Routing Fees
                                                CboeEDGA–2018–014]
                                                                                                         places specified in Item IV below. The
                                                                                                         Exchange has prepared summaries, set                        Currently, the fee schedule provides
                                                Self-Regulatory Organizations; Cboe                      forth in Sections A, B, and C below, of                   that orders in securities priced at or
                                                EDGA Exchange, Inc.; Notice of Filing                    the most significant parts of such                        above $1.00 routed to IEX using the
                                                and Immediate Effectiveness of a                         statements.                                               Destination Specific (i.e., ‘‘DIRC’’)
                                                Proposed Rule Change Related to Fees                                                                               routing strategy are charged a fee of
                                                                                                         A. Self-Regulatory Organization’s                         $0.0010 per share under fee code IX.
                                                for Use on Cboe EDGA Exchange, Inc.                      Statement of the Purpose of, and the                      The Exchange proposes to increase the
                                                August 15, 2018.                                         Statutory Basis for, the Proposed Rule                    routing fee charged to orders routed to
                                                   Pursuant to Section 19(b)(1) of the                   Change                                                    IEX to $0.0030 so that the Exchange can
                                                Securities Exchange Act of 1934 (the                     1. Purpose                                                recoup increased costs associated with
                                                ‘‘Act’’),1 and Rule 19b–4 thereunder,2                                                                             routing order flow to that market.
                                                                                                            The purpose of the proposed rule
                                                notice is hereby given that on August 1,                 change is to amend the Exchange’s fee                     2. Statutory Basis
                                                2018, Cboe EDGA Exchange, Inc. (the                      schedule applicable to its equities
                                                ‘‘Exchange’’ or ‘‘EDGA’’) filed with the                                                                              The Exchange believes that the
                                                                                                         trading platform (‘‘EDGA Equities’’) to:                  proposed rule change is consistent with
                                                Securities and Exchange Commission                       (1) Eliminate rebates provided to orders
                                                (‘‘Commission’’) the proposed rule                                                                                 the objectives of Section 6 of the Act,13
                                                                                                         in securities priced above $1.00 that                     in general, and furthers the objectives of
                                                change as described in Items I, II and III               remove liquidity from the Exchange’s
                                                below, which Items have been prepared                                                                              Section 6(b)(4),14 in particular, as it is
                                                                                                         order book under fee codes DR,5 DT,6                      designed to provide for the equitable
                                                by the Exchange. The Exchange has                        HR,7 MT,8 and PT,9 and (2) increase the
                                                designated the proposed rule change as                                                                             allocation of reasonable dues, fees and
                                                                                                         routing fee charged to orders routed to                   other charges among its members and
                                                one establishing or changing a member                    Investors Exchange LLC (‘‘IEX’’) using
                                                due, fee, or other charge imposed by the                                                                           other persons using its facilities.
                                                                                                         the DIRC 10 routing strategy under fee
                                                Exchange under Section 19(b)(3)(A)(ii)                   code IX.11                                                Fee Codes DR, DT, HR, MT, and PT:
                                                of the Act 3 and Rule 19b–4(f)(2)                                                                                  Non-Displayed Remove Fee
                                                thereunder,4 which renders the                           Fee Codes DR, DT, HR, MT, and PT:
                                                proposed rule change effective upon                      Non-Displayed Remove Fee                                     The Exchange believes that the
                                                filing with the Commission. The                                                                                    proposed fees for non-displayed orders
                                                                                                            The Exchange charges fees based on                     are reasonable. While the Exchange
                                                Commission is publishing this notice to                  an inverted fee structure where orders
                                                solicit comments on the proposed rule                                                                              currently provides a rebate for both
                                                                                                         are provided rebates for removing                         displayed and non-displayed orders that
                                                change from interested persons.                          liquidity and charged a fee for adding                    remove liquidity, the Exchange has
                                                I. Self-Regulatory Organization’s                        liquidity. Currently, both displayed and                  determined to instead charge no fee for
                                                Statement of the Terms of Substance of                   non-displayed orders in securities                        non-displayed orders. This change is
                                                the Proposed Rule Change                                 priced at or above $1.00 are provided a                   designed to incentivize Members to
                                                                                                         rebate of $0.00040 for removing                           enter displayed liquidity on the
                                                   The Exchange filed a proposal to                      liquidity. The Exchange proposes to
                                                amend the Exchange’s fee schedule                                                                                  Exchange since displayed orders would
                                                                                                         eliminate the rebate for orders that                      be eligible for rebates when removing
                                                applicable to its equities trading                       remove liquidity from the Exchange’s
                                                platform to: (1) Eliminate rebates                                                                                 liquidity while non-displayed orders
                                                                                                         order book under fee codes DR, DT, HR,                    would not. Furthermore, the Exchange’s
                                                provided to orders in securities priced                  MT, and PT, which all relate to liquidity
                                                above $1.00 that remove liquidity from                                                                             inverted fee structure would continue to
                                                                                                         removing orders that contain either an                    incentivize liquidity takers since orders
                                                the Exchange’s order book under fee                      explicit non-displayed instruction or a
                                                codes DR, DT, HR, MT, and PT, and (2)                                                                              that remove liquidity would remain
                                                                                                         non-displayed discretionary                               eligible for better pricing—including
                                                increase the routing fee charged to                      component.12 Orders executed under
                                                orders routed to Investors Exchange LLC                                                                            rebates for displayed orders and free
                                                using the DIRC routing strategy under                       5 DR and DT are associated with MidPoint
                                                                                                                                                                   executions for non-displayed orders—
                                                fee code IX.                                             Discretionary Orders (‘‘MDOs’’) that remove
                                                                                                                                                                   than orders that add liquidity and are
                                                   The text of the proposed rule change                  liquidity, either not within discretionary range (i.e.,   charged a fee. In addition, the Exchange
                                                is available at the Exchange’s website at                DR) or within discretionary range (i.e., DT).             believes that this change is equitable
                                                www.markets.cboe.com, at the principal
                                                                                                            6 Id.
                                                                                                                                                                   and not unfairly discriminatory because
                                                                                                            7 HR is associated with Non-Displayed orders that
                                                office of the Exchange, and at the                                                                                 the proposed taker fees would apply
                                                                                                         remove liquidity.
                                                Commission’s Public Reference Room.                         8 MT is associated with Non-Displayed orders
                                                                                                                                                                   equally to all Members that choose to
                                                                                                         that remove liquidity using Mid-Point Peg.                enter non-displayed orders. Members
                                                II. Self-Regulatory Organization’s                          9 PT is associated with orders that remove             that would prefer to receive a rebate for
                                                Statement of the Purpose of, and                         liquidity from EDGA using RMPT or RMPL routing            orders that remove liquidity can utilize
                                                Statutory Basis for, the Proposed Rule                   strategy.                                                 a range of displayed order types offered
                                                Change                                                      10 Destination Specific or ‘‘DIRC’’ is a routing
                                                                                                                                                                   by the Exchange, thereby promoting a
                                                                                                         option under which an order checks the System for
                                                  In its filing with the Commission, the                 available shares and then is sent to an away trading      more transparent market.
sradovich on DSK3GMQ082PROD with NOTICES




                                                Exchange included statements                             center or centers specified by the User. See Rule
                                                                                                         11.11(g)(14).
                                                                                                                                                                   Fee Code IX: IEX Routing Fees
                                                concerning the purpose of and basis for
                                                the proposed rule change and discussed                      11 IX is associated with orders routed to IEX using
                                                                                                                                                                     As other exchanges amend the fees
                                                                                                         the DIRC routing strategy.                                charged for accessing liquidity, the
                                                                                                            12 While MDOs may be displayed or non-
                                                  1 15 U.S.C. 78s(b)(1).                                 displayed, these orders contain a non-displayed
                                                                                                                                                                   Exchange believes that it is appropriate
                                                  2 17 CFR 240.19b–4.                                    discretionary component to execute at prices up
                                                  3 15 U.S.C. 78s(b)(3)(A)(ii).                                                                                     13 15   U.S.C. 78f.
                                                                                                         (down) to and including the midpoint of the NBBO.
                                                  4 17 CFR 240.19b–4(f)(2).                              See Rule 11.8(e).                                          14 15   U.S.C. 78f(b)(4).



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                                                42330                         Federal Register / Vol. 83, No. 162 / Tuesday, August 21, 2018 / Notices

                                                to amend its own routing fees so that it                 changes reflect this competitive                        Commission and any person, other than
                                                can recoup costs associated with routing                 environment.                                            those that may be withheld from the
                                                orders to such away markets. The                                                                                 public in accordance with the
                                                                                                         C. Self-Regulatory Organization’s
                                                Exchange believes that the proposed                                                                              provisions of 5 U.S.C. 552, will be
                                                                                                         Statement on Comments on the
                                                fees for orders routed to IEX are                                                                                available for website viewing and
                                                                                                         Proposed Rule Change Received From
                                                reasonable and equitable because they                                                                            printing in the Commission’s Public
                                                reflect the costs associated with                        Members, Participants, or Others
                                                                                                                                                                 Reference Room, 100 F Street NE,
                                                executing orders on IEX and additional                     No written comments were either                       Washington, DC 20549, on official
                                                operational expenses incurred by the                     solicited or received.                                  business days between the hours of
                                                Exchange. The Exchange is proposing to                                                                           10:00 a.m. and 3:00 p.m. Copies of this
                                                                                                         III. Date of Effectiveness of the
                                                increase its routing fees due to an                                                                              filing will also be available for
                                                                                                         Proposed Rule Change and Timing for
                                                announced change in IEX’s fee schedule                                                                           inspection and copying at the principal
                                                                                                         Commission Action
                                                that would result in a significant
                                                                                                            The foregoing rule change has become                 office of the Exchange. All comments
                                                increase in the transaction fees being
                                                                                                         effective pursuant to Section 19(b)(3)(A)               received will be posted without change.
                                                charged by IEX to some orders,
                                                including orders routed by the                           of the Act16 and paragraph (f) of Rule                  Persons submitting comments are
                                                Exchange.15 The Exchange believes that                   19b–4 thereunder.17 At any time within                  cautioned that we do not redact or edit
                                                it is reasonable and equitable to pass                   60 days of the filing of the proposed rule              personal identifying information from
                                                these increased costs to Members that                    change, the Commission summarily may                    comment submissions. You should
                                                use the Exchange to route orders to that                 temporarily suspend such rule change if                 submit only information that you wish
                                                market. Members that do not wish to                      it appears to the Commission that such                  to make available publicly. All
                                                pay the proposed fee can send their                      action is necessary or appropriate in the               submissions should refer to File
                                                routable orders directly to IEX instead of               public interest, for the protection of                  Number SR–CboeEDGA–2018–014 and
                                                using routing functionality provided by                  investors, or otherwise in furtherance of               should be submitted on or before
                                                the Exchange. The Exchange also                          the purposes of the Act.                                September 11, 2018.
                                                believes that this change is equitable                                                                             For the Commission, by the Division of
                                                                                                         IV. Solicitation of Comments
                                                and not unfairly discriminatory because                                                                          Trading and Markets, pursuant to delegated
                                                the proposed fees would apply equally                      Interested persons are invited to                     authority.18
                                                to all Members that use the Exchange to                  submit written data, views, and
                                                                                                                                                                 Eduardo A. Aleman,
                                                route orders to IEX using the DIRC                       arguments concerning the foregoing,
                                                routing strategy. Routing through the                    including whether the proposed rule                     Assistant Secretary.
                                                Exchange is voluntary, and the                           change is consistent with the Act.                      [FR Doc. 2018–17960 Filed 8–20–18; 8:45 am]
                                                Exchange operates in a competitive                       Comments may be submitted by any of                     BILLING CODE 8011–01–P
                                                environment where market participants                    the following methods:
                                                can readily direct order flow to
                                                                                                         Electronic Comments
                                                competing venues or providers of                                                                                 SECURITIES AND EXCHANGE
                                                routing services if they deem fee levels                    • Use the Commission’s internet                      COMMISSION
                                                to be excessive.                                         comment form (http://www.sec.gov/
                                                                                                         rules/sro.shtml); or                                    [Release No. 34–83852; File No. SR–
                                                B. Self-Regulatory Organization’s                           • Send an email to rule-comments@
                                                Statement on Burden on Competition                                                                               CboeBZX–2018–058]
                                                                                                         sec.gov. Please include File Number SR–
                                                   The Exchange does not believe that                    CboeEDGA–2018–014 on the subject                        Self-Regulatory Organizations; Cboe
                                                the proposed rule change will result in                  line.                                                   BZX Exchange, Inc.; Notice of Filing of
                                                any burden on competition that is not                                                                            a Proposed Rule Change To Permit the
                                                necessary or appropriate in furtherance                  Paper Comments
                                                                                                                                                                 Listing and Trading of Options That
                                                of the purposes of the Act, as amended.                     • Send paper comments in triplicate
                                                                                                                                                                 Overlie the Mini-SPX Index, the Russell
                                                The proposed changes to the non-                         to Secretary, Securities and Exchange
                                                                                                                                                                 2000 Index, and the Dow Jones
                                                displayed remove fees are designed to                    Commission, 100 F Street NE,
                                                                                                                                                                 Industrial Average
                                                incentivize displayed liquidity, which                   Washington, DC 20549–1090.
                                                the Exchange believes will benefit all                   All submissions should refer to File                    August 15, 2018.
                                                market participants by encouraging a                     Number SR–CboeEDGA–2018–014. This
                                                transparent and competitive market.                      file number should be included on the                      Pursuant to Section 19(b)(1) of the
                                                Furthermore, the proposed change to                      subject line if email is used. To help the              Securities Exchange Act of 1934 (the
                                                the IEX routing fee is meant to recoup                   Commission process and review your                      ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                costs associated with executing orders                   comments more efficiently, please use                   notice is hereby given that on August 2,
                                                on that market, and is therefore not                     only one method. The Commission will                    2018, Cboe BZX Exchange, Inc. (the
                                                designed to have any significant impact                  post all comments on the Commission’s                   ‘‘Exchange’’ or ‘‘BZX’’) filed with the
                                                on competition. The Exchange operates                    internet website (http://www.sec.gov/                   Securities and Exchange Commission
                                                in a highly competitive market in which                  rules/sro.shtml). Copies of the                         (‘‘Commission’’) the proposed rule
                                                market participants can readily direct                   submission, all subsequent                              change as described in Items I, II and III
                                                their order flow to competing venues. In                 amendments, all written statements                      below, which Items have been prepared
sradovich on DSK3GMQ082PROD with NOTICES




                                                such an environment, the Exchange                        with respect to the proposed rule                       by the Exchange. The Commission is
                                                must continually review, and consider                    change that are filed with the                          publishing this notice to solicit
                                                adjusting, its fees and rebates to remain                Commission, and all written                             comments on the proposed rule change
                                                competitive with other exchanges. For                    communications relating to the                          from interested persons.
                                                the reasons described above, the                         proposed rule change between the
                                                Exchange believes that the proposed fee                                                                            18 17 CFR 200.30–3(a)(12).
                                                                                                           16 15 U.S.C. 78s(b)(3)(A).                              1 15 U.S.C. 78s(b)(1).
                                                  15 See   SR–IEX–2018–16 (pending publication).           17 17 CFR 240.19b–4(f).                                 2 17 CFR 240.19b–4.




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Document Created: 2018-08-21 00:07:40
Document Modified: 2018-08-21 00:07:40
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 42329 

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