83 FR 44114 - Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Amending the Fee Schedule To Eliminate Fee Code IX on Cboe BZX Exchange, Inc.
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 168 (August 29, 2018)
Federal Register Volume 83, Issue 168 (August 29, 2018)
| Page Range | 44114-44115 | |
| FR Document | 2018-18677 |
[Federal Register Volume 83, Number 168 (Wednesday, August 29, 2018)] [Notices] [Pages 44114-44115] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-18677] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83926; File No. SR-CboeBZX-2018-060] Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Amending the Fee Schedule To Eliminate Fee Code IX on Cboe BZX Exchange, Inc. August 23, 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 9, 2018, Cboe BZX Exchange, Inc. (the ``Exchange'' or ``BZX'') 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. --------------------------------------------------------------------------- \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). --------------------------------------------------------------------------- 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 eliminate fee code IX, which applies to orders routed to Investors Exchange LLC using the Exchange's TRIM or TRIM2 routing strategies. 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 amend the Exchange's fee schedule applicable to its equities trading platform (``BZX Equities'') to eliminate fee code IX,\5\ which applies to orders routed to Investors Exchange LLC (``IEX'') using the Exchange's TRIM or TRIM2 \6\ routing strategies. Currently, the fee schedule provides that orders routed to IEX using the TRIM or TRIM2 routing strategies are charged a fee of $0.0010 per share under fee code IX. In May 2018, the Exchange removed IEX from the System routing table for its TRIM and TRIM2 routing strategies,\7\ which are designed to route to low cost away markets, due to increased costs associated with routing to IEX. Since IEX is no longer considered as a potential routing destination for those strategies, the Exchange proposes to eliminate fee code IX. Orders routed to IEX using other routing strategies will not be impacted by this proposed rule change and will continue to be charged the same rates as in place today. --------------------------------------------------------------------------- \5\ IX is associated with order [sic] routed to IEX using TRIM or TRIM2 routing strategy. \6\ TRIM and TRIM2 are both routing options under which an order checks the System for available shares and then is sent to destinations on the applicable System routing table. See Rule 11.13(b)(3)(G). \7\ The term ``System routing table'' refers to the proprietary process for determining the specific trading venues to which the System routes orders and the order in which it routes them. See Rule 11.13(b)(3). Rule 11.13(b)(3) permits the Exchange to maintain a different System routing table for different routing options and to modify the System routing table at any time without notice. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act \8\ in general, and furthers the objectives of Section 6(b)(5) of the Act \9\ in particular, in that it is designed to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in 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. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78f(b). \9\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that the proposed change to eliminate fee code IX is consistent with the public interest and the protection [sic] investors as this is a non-substantive change being made because the Exchange no longer routes to IEX using the routing strategies specified in that fee code. The Exchange had previously routed orders to IEX using the TRIM and TRIM2 order routing strategies, which are designed to route to low cost venues, but recently stopped doing so due to increased routing costs associated with trading on IEX. As such, the Exchange believes that updating the fee schedule to reflect that these two routing strategies are not available for routing to IEX will increase transparency around the operation of the Exchange to the benefit of Members and investors. Because the proposed changes apply only to a fee code that is no longer in use on the Exchange, the proposed rule change will have no impact on the transaction fees actually assessed to Members. (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 [[Page 44115]] necessary or appropriate in furtherance of the purposes of the Act, as amended. The proposed rule change eliminates a fee code that is no longer in use by the Exchange due to the fact that IEX is no longer an eligible destination for the TRIM and TRIM2 routing strategies. As the proposed rule change only makes a non-substantive change to retire a fee code that is not currently in use, the Exchange believes that it will not cause any significant burden on competition. (C) Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b- 4(f)(6) thereunder.\11\ --------------------------------------------------------------------------- \10\ 15 U.S.C. 78s(b)(3)(A). \11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. --------------------------------------------------------------------------- A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the Act \12\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \13\ permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposed rule change may become operative immediately upon filing. The Exchange notes that waiver of the operative delay would allow it to immediately remove an outdated fee code from its fee schedule, the elimination of which would ensure that the fee schedule properly reflects the routing strategies currently available for routing to IEX. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because the proposed rule change is designed to increase transparency around the operation of the Exchange and the routing strategies that it provides. Accordingly, the Commission hereby waives the operative delay and designates the proposal operative upon filing.\14\ --------------------------------------------------------------------------- \12\ 17 CFR 240.19b-4(f)(6). \13\ 17 CFR 240.19b-4(f)(6)(iii). \14\ For purposes only of waiving the 30-day operative delay, the Commission has also 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 the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule change should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposal is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse 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-CboeBZX-2018-060 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-CboeBZX-2018-060. 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. 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-CboeBZX-2018-060 and should be submitted on or before September 19, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\15\ --------------------------------------------------------------------------- \15\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-18677 Filed 8-28-18; 8:45 am] BILLING CODE 8011-01-P
![44114 Federal Register / Vol. 83, No. 168 / Wednesday, August 29, 2018 / Notices
believes that the RWD Plan, which Act 3 and Rule 19b–4(f)(6)(iii) TRIM and TRIM2 routing strategies,7
indicates the cost at which OCC could thereunder,4 which renders it effective which are designed to route to low cost
effectuate an orderly wind-down, i.e., at upon filing with the Commission. The away markets, due to increased costs
a lower cost than the amount of its Commission is publishing this notice to associated with routing to IEX. Since
liquid resources is consistent with Rule solicit comments on the proposed rule IEX is no longer considered as a
17Ad–22(e)(15)(i).41 change from interested persons. potential routing destination for those
Therefore, the Commission believes strategies, the Exchange proposes to
I. Self-Regulatory Organization’s eliminate fee code IX. Orders routed to
that the proposed changes that would
Statement of the Terms of Substance of IEX using other routing strategies will
determine costs associated with an
the Proposed Rule Change not be impacted by this proposed rule
orderly wind-down and that would
further ensure that OCC holds liquid net The Exchange filed a proposal to change and will continue to be charged
assets greater than these costs, are amend the Exchange’s fee schedule the same rates as in place today.
consistent with Rule 17Ad– applicable to its equities trading 2. Statutory Basis
22(e)(15)(i).42 platform to eliminate fee code IX, which
applies to orders routed to Investors The Exchange believes that its
IV. Conclusion Exchange LLC using the Exchange’s proposal is consistent with Section 6(b)
It is therefore noticed, pursuant to TRIM or TRIM2 routing strategies. of the Act 8 in general, and furthers the
Section 806(e)(1)(I) of the Clearing The text of the proposed rule change objectives of Section 6(b)(5) of the Act 9
Supervision Act,43 that the Commission is available at the Exchange’s website at in particular, in that it is designed to
does not object to Advance Notice (SR– www.markets.cboe.com, at the principal promote just and equitable principles of
OCC–2017–810), as modified by Partial office of the Exchange, and at the trade, to foster cooperation and
Amendment No. 3, and that OCC is Commission’s Public Reference Room. coordination with persons engaged in
authorized to implement the proposed facilitating transactions in securities, to
change as of the date of this notice or II. Self-Regulatory Organization’s remove impediments to and perfect the
the date of an order by the Commission Statement of the Purpose of, and mechanism of a free and open market
approving proposed rule change SR– Statutory Basis for, the Proposed Rule and a national market system and, in
OCC–2017–021, as modified by Partial Change general, to protect investors and the
Amendment No. 3, whichever is later. In its filing with the Commission, the public interest.
The Exchange believes that the
By the Commission. Exchange included statements
proposed change to eliminate fee code
Eduardo A. Aleman, concerning the purpose of and basis for
IX is consistent with the public interest
the proposed rule change and discussed
Assistant Secretary. and the protection [sic] investors as this
any comments it received on the
[FR Doc. 2018–18656 Filed 8–28–18; 8:45 am] is a non-substantive change being made
proposed rule change. The text of these
BILLING CODE 8011–01–P because the Exchange no longer routes
statements may be examined at the
to IEX using the routing strategies
places specified in Item IV below. The
specified in that fee code. The Exchange
Exchange has prepared summaries, set
SECURITIES AND EXCHANGE had previously routed orders to IEX
forth in Sections A, B, and C below, of using the TRIM and TRIM2 order
COMMISSION
the most significant parts of such routing strategies, which are designed to
[Release No. 34–83926; File No. SR– statements. route to low cost venues, but recently
CboeBZX–2018–060] stopped doing so due to increased
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and routing costs associated with trading on
Self-Regulatory Organizations; Cboe
Statutory Basis for, the Proposed Rule IEX. As such, the Exchange believes that
BZX Exchange, Inc.; Notice of Filing
Change updating the fee schedule to reflect that
and Immediate Effectiveness of a
these two routing strategies are not
Proposed Rule Change Amending the 1. Purpose available for routing to IEX will increase
Fee Schedule To Eliminate Fee Code IX
The purpose of the proposed rule transparency around the operation of
on Cboe BZX Exchange, Inc.
change is to amend the Exchange’s fee the Exchange to the benefit of Members
August 23, 2018. schedule applicable to its equities and investors. Because the proposed
Pursuant to Section 19(b)(1) of the trading platform (‘‘BZX Equities’’) to changes apply only to a fee code that is
Securities Exchange Act of 1934 (the eliminate fee code IX,5 which applies to no longer in use on the Exchange, the
‘‘Act’’),1 and Rule 19b–4 thereunder,2 orders routed to Investors Exchange LLC proposed rule change will have no
notice is hereby given that on August 9, (‘‘IEX’’) using the Exchange’s TRIM or impact on the transaction fees actually
2018, Cboe BZX Exchange, Inc. (the TRIM2 6 routing strategies. Currently, assessed to Members.
‘‘Exchange’’ or ‘‘BZX’’) filed with the the fee schedule provides that orders (B) Self-Regulatory Organization’s
Securities and Exchange Commission routed to IEX using the TRIM or TRIM2 Statement on Burden on Competition
(‘‘Commission’’) the proposed rule routing strategies are charged a fee of
$0.0010 per share under fee code IX. In The Exchange does not believe that
change as described in Items I and II
May 2018, the Exchange removed IEX the proposed rule change will result in
below, which Items have been prepared
from the System routing table for its any burden on competition that is not
by the Exchange. The Exchange has
designated this proposal as a ‘‘non- 7 The term ‘‘System routing table’’ refers to the
sradovich on DSK3GMQ082PROD with NOTICES
controversial’’ proposed rule change 3 15 U.S.C. 78s(b)(3)(A). proprietary process for determining the specific
pursuant to Section 19(b)(3)(A) of the 4 17 CFR 240.19b–4(f)(6)(iii). trading venues to which the System routes orders
5 IX is associated with order [sic] routed to IEX and the order in which it routes them. See Rule
41 17
using TRIM or TRIM2 routing strategy. 11.13(b)(3). Rule 11.13(b)(3) permits the Exchange
CFR 240.17Ad–22(e)(15)(i). 6 TRIM and TRIM2 are both routing options under to maintain a different System routing table for
42 17 CFR 240.17Ad–22(e)(15)(i). which an order checks the System for available different routing options and to modify the System
43 12 U.S.C. 5465(e)(1)(I). routing table at any time without notice.
shares and then is sent to destinations on the
1 15 U.S.C. 78s(b)(1). 8 15 U.S.C. 78f(b).
applicable System routing table. See Rule
2 17 CFR 240.19b–4. 11.13(b)(3)(G). 9 15 U.S.C. 78f(b)(5).
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![Federal Register / Vol. 83, No. 168 / Wednesday, August 29, 2018 / Notices 44115
necessary or appropriate in furtherance rule change is designed to increase provisions of 5 U.S.C. 552, will be
of the purposes of the Act, as amended. transparency around the operation of available for website viewing and
The proposed rule change eliminates a the Exchange and the routing strategies printing in the Commission’s Public
fee code that is no longer in use by the that it provides. Accordingly, the Reference Room, 100 F Street NE,
Exchange due to the fact that IEX is no Commission hereby waives the Washington, DC 20549, on official
longer an eligible destination for the operative delay and designates the business days between the hours of
TRIM and TRIM2 routing strategies. As proposal operative upon filing.14 10:00 a.m. and 3:00 p.m. Copies of such
the proposed rule change only makes a At any time within 60 days of the filing will also be available for
non-substantive change to retire a fee filing of the proposed rule change, the inspection and copying at the principal
code that is not currently in use, the Commission summarily may office of the Exchange. All comments
Exchange believes that it will not cause temporarily suspend such rule change if received will be posted without change.
any significant burden on competition. it appears to the Commission that such Persons submitting comments are
action is: (i) Necessary or appropriate in cautioned that we do not redact or edit
(C) Self-Regulatory Organization’s the public interest; (ii) for the protection personal identifying information from
Statement on Comments on the of investors; or (iii) otherwise in comment submissions. You should
Proposed Rule Change Received From furtherance of the purposes of the Act. submit only information that you wish
Members, Participants or Others If the Commission takes such action, the to make available publicly. All
No written comments were either Commission shall institute proceedings submissions should refer to File
solicited or received. to determine whether the proposed rule Number SR–CboeBZX–2018–060 and
III. Date of Effectiveness of the change should be approved or should be submitted on or before
Proposed Rule Change and Timing for disapproved. September 19, 2018.
Commission Action IV. Solicitation of Comments For the Commission, by the Division of
Trading and Markets, pursuant to delegated
Because the foregoing proposed rule Interested persons are invited to authority.15
change does not: (i) Significantly affect submit written data, views and
Eduardo A. Aleman,
the protection of investors or the public arguments concerning the foregoing,
interest; (ii) impose any significant Assistant Secretary.
including whether the proposal is
burden on competition; and (iii) become consistent with the Act. Comments may [FR Doc. 2018–18677 Filed 8–28–18; 8:45 am]
operative for 30 days from the date on be submitted by any of the following BILLING CODE 8011–01–P
which it was filed, or such shorter time methods:
as the Commission may designate, it has
become effective pursuant to Section Electronic Comments SECURITIES AND EXCHANGE
19(b)(3)(A) of the Act 10 and Rule 19b– • Use the Commission’s internet COMMISSION
4(f)(6) thereunder.11 comment form (http://www.sec.gov/ [Release No. 34–83929; File No. SR–NYSE–
A proposed rule change filed rules/sro.shtml); or 2018–37]
pursuant to Rule 19b–4(f)(6) under the • Send an email to rule-comments@
Act 12 normally does not become sec.gov. Please include File Number SR– Self-Regulatory Organizations; New
operative for 30 days after the date of its CboeBZX–2018–060 on the subject line. York Stock Exchange LLC; Notice of
filing. However, Rule 19b–4(f)(6)(iii) 13 Filing and Immediate Effectiveness of
Paper Comments
permits the Commission to designate a a Proposed Rule Change To Amend its
shorter time if such action is consistent • Send paper comments in triplicate Price List
with the protection of investors and the to Secretary, Securities and Exchange
Commission, 100 F Street NE, August 23, 2018.
public interest. The Exchange has asked
the Commission to waive the 30-day Washington, DC 20549–1090. Pursuant to Section 19(b)(1) 1 of the
operative delay so that the proposed All submissions should refer to File Securities Exchange Act of 1934 (the
rule change may become operative Number SR–CboeBZX–2018–060. This ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
immediately upon filing. The Exchange file number should be included on the notice is hereby given that, on August
notes that waiver of the operative delay subject line if email is used. To help the 10, 2018, New York Stock Exchange
would allow it to immediately remove Commission process and review your LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed
an outdated fee code from its fee comments more efficiently, please use with the Securities and Exchange
schedule, the elimination of which only one method. The Commission will Commission (the ‘‘Commission’’) the
would ensure that the fee schedule post all comments on the Commission’s proposed rule change as described in
properly reflects the routing strategies internet website (http://www.sec.gov/ Items I, II, and III below, which Items
currently available for routing to IEX. rules/sro.shtml). Copies of the have been prepared by the self-
The Commission believes that waiving submission, all subsequent regulatory organization. The
the 30-day operative delay is consistent amendments, all written statements Commission is publishing this notice to
with the protection of investors and the with respect to the proposed rule solicit comments on the proposed rule
public interest because the proposed change that are filed with the change from interested persons.
Commission, and all written I. Self-Regulatory Organization’s
10 15 U.S.C. 78s(b)(3)(A). communications relating to the Statement of the Terms of Substance of
11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
proposed rule change between the the Proposed Rule Change
4(f)(6) requires a self-regulatory organization to give Commission and any person, other than
sradovich on DSK3GMQ082PROD with NOTICES
the Commission written notice of its intent to file The Exchange proposes to amend its
the proposed rule change, along with a brief those that may be withheld from the
Price List to (1) amend the cap
description and text of the proposed rule change, public in accordance with the
at least five business days prior to the date of filing
applicable to certain transactions at the
of the proposed rule change, or such shorter time 14 For purposes only of waiving the 30-day
15 17 CFR 200.30–3(a)(12).
as designated by the Commission. The Exchange operative delay, the Commission has also
has satisfied this requirement. considered the proposed rule’s impact on
1 15 U.S.C. 78s(b)(1).
12 17 CFR 240.19b–4(f)(6). 2 15 U.S.C. 78a.
efficiency, competition, and capital formation. See
13 17 CFR 240.19b–4(f)(6)(iii). 15 U.S.C. 78c(f). 3 17 CFR 240.19b–4.
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Document Created: 2018-08-29 00:13:43
Document Modified: 2018-08-29 00:13:43
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 83 FR 44114 |
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