83 FR 46981 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change To Amend NYSE Arca Rule 1.1 Official Closing Price To Exclude From the TWAP Calculation a Midpoint That Is Based on an NBBO That Is Not Reflective of the Security's True and Current Value
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 180 (September 17, 2018)
Federal Register Volume 83, Issue 180 (September 17, 2018)
| Page Range | 46981-46983 | |
| FR Document | 2018-20073 |
[Federal Register Volume 83, Number 180 (Monday, September 17, 2018)] [Notices] [Pages 46981-46983] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-20073] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-84079; File No. SR-NYSEArca-2018-63] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change To Amend NYSE Arca Rule 1.1 Official Closing Price To Exclude From the TWAP Calculation a Midpoint That Is Based on an NBBO That Is Not Reflective of the Security's True and Current Value September 11, 2018. Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that on August 29, 2018, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE Arca'') 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 self-regulatory organization. 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\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend NYSE Arca Rule 1.1(ll) (``Official Closing Price''). The proposed change is available on the Exchange's website at www.nyse.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 self-regulatory organization 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 those 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 Exchange recently amended Rule 1.1(ll) to establish how the Official Closing Price is determined for an Exchange-listed security that is a Derivative Securities Product \4\ if the Exchange does not conduct a Closing Auction or if a Closing Auction trade is less than a round lot.\5\ The purpose of the OCP Filing was to adopt a method for deriving the Official Closing Price that would be more indicative of the actual value of the securities that are subject to the rule, in particular for listed securities that are thinly traded or generally illiquid. Prior to the recent rule change, the Official Closing Price for such securities would have been based on a last-sale trade that may have been hours, days, or even months old and therefore not necessarily indicative of their true and current value. The OCP Filing adopted a revised calculation to derive the value for securities that have a stale last-price. Specifically, for such securities, the Official Closing Price would be derived by adding a percentage of the time- weighted average price (``TWAP'') of the NBBO midpoint measured over the last five minutes before the end of Core Trading Hours and a percentage of the last consolidated last-sale eligible trade before the end of Core Trading Hours on that trading day.\6\ --------------------------------------------------------------------------- \4\ With respect to equities traded on the Exchange, the term ``Derivative Securities Product'' means a security that meets the definition of ``derivative securities product'' in Rule 19b-4(e) under the Securities Exchange Act of 1934. See NYSE Arca Rule 1.1(k). For purposes of Rule 19b-4(e), a ``derivative securities product'' means any type of option, warrant, hybrid securities product or any other security, other than a single equity option or a security futures product, whose value is based, in whole or in part, upon the performance of, or interest in, an underlying instrument. 17 CFR 240.19b-4(e). \5\ See Securities Exchange Act Release No. 82907 (March 20, 2018), 83 FR 12980 (March 26, 2018) (SR-NYSEArca-2018-08) (Approval Order) (the ``OCP Filing''). \6\ See Rule 1.1(ll)(1)(B)(i)-(vi). --------------------------------------------------------------------------- The Exchange proposes to further refine Rule 1.1(ll)(1)(B) to exclude from the TWAP calculation a midpoint that is based on an NBBO that is not reflective of the security's true and current value. As proposed, the Exchange would exclude a NBBO midpoint from the calculation of the Official Closing Price if that midpoint, when multiplied by ten percent (10%), is less than the spread of that NBBO. The Exchange would also exclude a crossed NBBO from the calculation. The proposed amendment to adopt a NBBO midpoint check is designed to validate whether an NBBO used in the calculation of the Official Closing Price bears a relation to the value of the underlying security. Under the proposal, the Exchange would calculate the midpoint of the NBBO and then multiply the midpoint by ten percent (10%) and compare this value to the spread of the NBBO. If the value of the midpoint when multiplied by ten percent (10%) is less than the spread of that NBBO, the Exchange would exclude the NBBO midpoint from the calculation. The Exchange believes that if the NBBO spread is greater than the value of the midpoint when multiplied by ten percent (10%), it would indicate that the spread is too wide, and therefore not representative of the value of the security. For example, assume the percentage for purposes of the NBBO midpoint calculation is set at 10%. Assume further that the NBBO is $9.00 x $11.00. The NBBO spread is therefore $2.00, the midpoint of the NBBO is $10.00, and the value of the midpoint is $1.00 (10% of $10.00). Given that the spread of the NBBO ($2.00) is greater than the value of the NBBO midpoint ($1.00), the $9.00 x $11.00 NBBO would be excluded from the calculation. Conversely, assume the NBBO is $9.51 x $10.49. The NBBO spread is therefore $0.98, the midpoint of the NBBO is $10.00, and the value of the midpoint is $1.00 (10% of 10.00). Given that the spread of the NBBO ($0.98) is less than the value of the NBBO midpoint ($1.00), [[Page 46982]] the $9.51 x $10.49 NBBO would be included in the calculation. The proposed amendment is similar to, and based on, the term ``Auction NBBO'' as defined in Rule 7.35-E(a)(5).\7\ The Exchange currently uses the Auction NBBO as a basis for determining the Auction Reference Price for the Core Open Auction.\8\ If there is no Auction NBBO, then the Exchange uses the prior trading day's Official Closing Price. To qualify as an Auction NBBO for the Core Open Auction, there must be both a bid and an offer that is not zero, the NBBO cannot be crossed, and the midpoint of the NBBO when multiplied by a designated percentage, cannot be greater than or equal to the spread of the NBBO.\9\ Although Rule 7.35-E(a)(5) currently specifies that the designated percentage used for determining the Auction NBBO for the Core Open Auction would be determined by the Exchange upon prior notice to ETP Holders, the Exchange proposes to codify within the proposed amendment to Rule 1.1(ll)(1)(B) the percentage used in the TWAP calculation for the Official Closing Price at ten percent (10%). --------------------------------------------------------------------------- \7\ See Rule 7.35-E(a)(5). The term ``Auction NBBO'' means an NBBO that is used for purposes of pricing an auction. \8\ The Exchange also uses the Auction NBBO for determining the Indicative Match Price in specified situations for the Closing Auction. See Rule 7.35-E(a)(8)(C). \9\ See Rule 7.35-E(a)(5). --------------------------------------------------------------------------- The Exchange believes that the proposed NBBO midpoint check, which uses the same methodology as determining an Auction NBBO for the Core Open Auction, achieves the same purpose as the Auction NBBO because it would eliminate use of an NBBO that does not reflect the true value of a security. For the same reasons that the Exchange would not use an NBBO that does not pass the Auction NBBO test as an Auction Reference Price, the Exchange similarly proposes that if an NBBO fails that same test, it would not be used for determining the TWAP calculation for the Official Closing Price of a security. The Exchange also proposes a non-substantive clarifying change to Rule 1.1(ll). Under Rule 1.1(ll), if the Official Closing Price cannot be determined under paragraph (A) of Rule 1.1(ll), then the procedure under paragraph (B) would be utilized. If the Official Closing Price cannot be determined under paragraphs (A) and (B) of Rule 1.1(ll), then the procedure under paragraph (C) would be utilized. And lastly, if the Official Closing Price cannot be determined under paragraphs (A), (B), or (C) of Rule 1.1(ll) then the procedure under paragraph (D) would be utilized. To reflect this decision tree methodology, the Exchange proposes to adopt rule text to reflect that the process under paragraph (D) of Rule 1.1(ll)(1) would be utilized if the Official Closing Price cannot be determined under paragraphs (1)(A), (B) or (C) of the Rule. The Exchange is not proposing any substantive change to paragraph (D) of Rule 1.1(ll)(1). The Exchange believes that the proposed rule change would provide additional clarity in the Rules and reflect current practice for the purpose of determining the Official Closing Price. Because of the technology changes associated with this proposed rule change, the Exchange will announce the implementation date of this proposed rule change by Trader Update. The Exchange anticipates that the implementation date will be in the first quarter of 2019. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\10\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\11\ in particular, 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. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78f(b). \11\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that the proposed rule change would remove impediments to and perfect the mechanism of a free and open market and a national market system because creating a process to validate the NBBO midpoint to determine the Official Closing Price by comparing the midpoint value to the spread of the NBBO, and if the NBBO midpoint is not valid, to exclude it from the calculation, would ensure that the NBBO is sufficiently tight to guarantee that the midpoint of the NBBO would be a meaningful and accurate basis for determining the Official Closing Price. The Exchange also believes the proposed refined methodology for determining the Official Closing Price would remove impediments to and perfect the mechanism of a free and open market and a national market system because it would provide for a more up-to-date indication of the value of the underlying security if there have not been any last-sale eligible trades leading in to the close of trading. The Exchange believes the proposed NBBO midpoint check for purposes of determining the Official Closing Price would also provide a closing price that more accurately reflects the most recent and reliable market information possible. As noted above, the Exchange already uses this methodology for determining whether an NBBO can be used as an Auction Reference Price for the Core Open Auction. The Exchange further believes that the proposed TWAP calculation would remove impediments to and perfect the mechanism of a free and open market and a national market system because it would provide for a more robust mechanism to determine the value of an affected security for purposes of determining an Official Closing Price. By calculating the midpoint of the NBBO and then multiplying the midpoint by ten percent (10%) and comparing this value to the spread of the NBBO, the Exchange believes that the proposed methodology would result in the price of a security that is even more reflective of the true and current value of such security than the methodology in place today. The Exchange believes the proposed non-substantive amendment to current Rule 1.1(ll)(1)(D) is intended to provide additional clarity and detail and will eliminate confusion among market participants, which is in the interests of all investors and the general public. 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 Exchange believes that the proposed rule change will not impose any burden on competition because the proposal would simply provide for a more efficient manner to determine the Official Closing Price for a Derivative Securities Product. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 45 days of the date of publication of this notice in the Federal Register or up to 90 days (i) as the [[Page 46983]] Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (A) By order approve or disapprove the proposed rule change, or (B) institute proceedings to determine whether the proposed rule change should be disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected] . Please include File NumberSR-NYSEArca-2018-63 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090. All submissions should refer to File Number SR-NYSEArca-2018-63. 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 a.m. and 3 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-NYSEArca-2018-63 and should be submitted on or before October 9, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\12\ --------------------------------------------------------------------------- \12\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-20073 Filed 9-14-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 180 / Monday, September 17, 2018 / Notices 46981
Commission and any person, other than I. Self-Regulatory Organization’s of their true and current value. The OCP
those that may be withheld from the Statement of the Terms of Substance of Filing adopted a revised calculation to
public in accordance with the the Proposed Rule Change derive the value for securities that have
provisions of 5 U.S.C. 552, will be The Exchange proposes to amend a stale last-price. Specifically, for such
available for website viewing and NYSE Arca Rule 1.1(ll) (‘‘Official securities, the Official Closing Price
printing in the Commission’s Public Closing Price’’). The proposed change is would be derived by adding a
Reference Room, 100 F Street NE, available on the Exchange’s website at percentage of the time-weighted average
Washington, DC 20549 on official www.nyse.com, at the principal office of price (‘‘TWAP’’) of the NBBO midpoint
business days between the hours of the Exchange, and at the Commission’s measured over the last five minutes
10:00 a.m. and 3:00 p.m. Copies of the Public Reference Room. before the end of Core Trading Hours
filing also will be available for and a percentage of the last consolidated
inspection and copying at the principal II. Self-Regulatory Organization’s last-sale eligible trade before the end of
office of the Exchange. All comments Statement of the Purpose of, and Core Trading Hours on that trading
received will be posted without change. Statutory Basis for, the Proposed Rule day.6
Persons submitting comments are Change The Exchange proposes to further
cautioned that we do not redact or edit In its filing with the Commission, the refine Rule 1.1(ll)(1)(B) to exclude from
personal identifying information from self-regulatory organization included the TWAP calculation a midpoint that is
comment submissions. You should statements concerning the purpose of, based on an NBBO that is not reflective
submit only information that you wish and basis for, the proposed rule change of the security’s true and current value.
to make available publicly. All and discussed any comments it received As proposed, the Exchange would
submissions should refer to File on the proposed rule change. The text exclude a NBBO midpoint from the
Number SR–NYSE–2018–40 and should of those statements may be examined at calculation of the Official Closing Price
be submitted on or before October 9, the places specified in Item IV below. if that midpoint, when multiplied by ten
2018. The Exchange has prepared summaries, percent (10%), is less than the spread of
set forth in sections A, B, and C below, that NBBO. The Exchange would also
For the Commission, by the Division of exclude a crossed NBBO from the
Trading and Markets, pursuant to delegated of the most significant parts of such
authority.17 statements. calculation.
The proposed amendment to adopt a
Eduardo A. Aleman, A. Self-Regulatory Organization’s NBBO midpoint check is designed to
Assistant Secretary. Statement of the Purpose of, and the validate whether an NBBO used in the
[FR Doc. 2018–20192 Filed 9–14–18; 8:45 am] Statutory Basis for, the Proposed Rule calculation of the Official Closing Price
BILLING CODE 8011–01–P Change bears a relation to the value of the
underlying security. Under the
1. Purpose
proposal, the Exchange would calculate
SECURITIES AND EXCHANGE The Exchange recently amended Rule the midpoint of the NBBO and then
COMMISSION 1.1(ll) to establish how the Official multiply the midpoint by ten percent
Closing Price is determined for an (10%) and compare this value to the
[Release No. 34–84079; File No. SR– Exchange-listed security that is a
NYSEArca–2018–63]
spread of the NBBO. If the value of the
Derivative Securities Product 4 if the midpoint when multiplied by ten
Self-Regulatory Organizations; NYSE Exchange does not conduct a Closing percent (10%) is less than the spread of
Arca, Inc.; Notice of Filing of Proposed Auction or if a Closing Auction trade is that NBBO, the Exchange would
Rule Change To Amend NYSE Arca less than a round lot.5 The purpose of exclude the NBBO midpoint from the
Rule 1.1 Official Closing Price To the OCP Filing was to adopt a method calculation. The Exchange believes that
Exclude From the TWAP Calculation a for deriving the Official Closing Price if the NBBO spread is greater than the
Midpoint That Is Based on an NBBO that would be more indicative of the value of the midpoint when multiplied
That Is Not Reflective of the Security’s actual value of the securities that are by ten percent (10%), it would indicate
True and Current Value subject to the rule, in particular for that the spread is too wide, and
listed securities that are thinly traded or therefore not representative of the value
September 11, 2018. generally illiquid. Prior to the recent of the security. For example, assume the
Pursuant to Section 19(b)(1) 1 of the rule change, the Official Closing Price percentage for purposes of the NBBO
Securities Exchange Act of 1934 (the for such securities would have been midpoint calculation is set at 10%.
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 based on a last-sale trade that may have Assume further that the NBBO is $9.00
notice is hereby given that on August been hours, days, or even months old × $11.00. The NBBO spread is therefore
29, 2018, NYSE Arca, Inc. (the and therefore not necessarily indicative $2.00, the midpoint of the NBBO is
‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with $10.00, and the value of the midpoint is
the Securities and Exchange 4 With respect to equities traded on the Exchange, $1.00 (10% of $10.00). Given that the
Commission (the ‘‘Commission’’) the the term ‘‘Derivative Securities Product’’ means a spread of the NBBO ($2.00) is greater
security that meets the definition of ‘‘derivative
proposed rule change as described in securities product’’ in Rule 19b–4(e) under the
than the value of the NBBO midpoint
Items I, II, and III below, which Items Securities Exchange Act of 1934. See NYSE Arca ($1.00), the $9.00 × $11.00 NBBO would
have been prepared by the self- Rule 1.1(k). For purposes of Rule 19b–4(e), a be excluded from the calculation.
regulatory organization. The ‘‘derivative securities product’’ means any type of Conversely, assume the NBBO is $9.51
Commission is publishing this notice to
option, warrant, hybrid securities product or any
× $10.49. The NBBO spread is therefore
daltland on DSKBBV9HB2PROD with NOTICES
other security, other than a single equity option or
solicit comments on the proposed rule a security futures product, whose value is based, in $0.98, the midpoint of the NBBO is
change from interested persons. whole or in part, upon the performance of, or $10.00, and the value of the midpoint is
interest in, an underlying instrument. 17 CFR $1.00 (10% of 10.00). Given that the
240.19b–4(e).
17 17 CFR 200.30–3(a)(12). 5 See Securities Exchange Act Release No. 82907
spread of the NBBO ($0.98) is less than
1 15 U.S.C. 78s(b)(1). (March 20, 2018), 83 FR 12980 (March 26, 2018) the value of the NBBO midpoint ($1.00),
2 15 U.S.C. 78a.
(SR–NYSEArca–2018–08) (Approval Order) (the
3 17 CFR 240.19b–4. ‘‘OCP Filing’’). 6 See Rule 1.1(ll)(1)(B)(i)–(vi).
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![Federal Register / Vol. 83, No. 180 / Monday, September 17, 2018 / Notices 46983
Commission may designate if it finds information that you wish to make statements may be examined at the
such longer period to be appropriate available publicly. All submissions places specified in Item IV below. The
and publishes its reasons for so finding should refer to File Number SR– Exchange has prepared summaries, set
or (ii) as to which the self-regulatory NYSEArca–2018–63 and should be forth in sections A, B, and C below, of
organization consents, the Commission submitted on or before October 9, 2018. the most significant aspects of such
will: For the Commission, by the Division of statements.
(A) By order approve or disapprove Trading and Markets, pursuant to delegated
the proposed rule change, or A. Self-Regulatory Organization’s
authority.12
(B) institute proceedings to determine Statement of the Purpose of, and
Eduardo A. Aleman, Statutory Basis for, the Proposed Rule
whether the proposed rule change Assistant Secretary.
should be disapproved. Change
[FR Doc. 2018–20073 Filed 9–14–18; 8:45 am]
IV. Solicitation of Comments BILLING CODE 8011–01–P
1. Purpose
Interested persons are invited to The Exchange proposes to amend its
submit written data, views, and Fees Schedule, effective September 4,
arguments concerning the foregoing, SECURITIES AND EXCHANGE 2018.
including whether the proposed rule COMMISSION The Exchange first proposes to reduce
change is consistent with the Act. [Release No. 34–84078; File No. SR–C2– fees for Public Customer, Market-Maker
Comments may be submitted by any of 2018–018] and Non-Customer, Non-Market Maker
the following methods: orders that remove liquidity in Penny
Self-Regulatory Organizations; Cboe Classes. Particularly, the Exchange
Electronic Comments C2 Exchange, Inc.; Notice of Filing and proposes to reduce the Penny Class
• Use the Commission’s internet Immediate Effectiveness of a Proposed Remove rate for Public Customers
comment form (http://www.sec.gov/ Rule Change Relating To Amend Its (which orders yield fee code PC) from
rules/sro.shtml); or Fees Schedule $0.49 per contract to $0.43 per contract
• Send an email to rule-comments@ and reduce the Penny Class Remove rate
sec.gov . Please include File NumberSR– September 11, 2018.
for Market-Maker and Non-Customer,
NYSEArca–2018–63 on the subject line. Pursuant to Section 19(b)(1) of the
Non-Market Maker orders (which orders
Securities Exchange Act of 1934
Paper Comments yield fee codes PR and PP, respectively)
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
from $0.50 per contract to $0.49 per
• Send paper comments in triplicate notice is hereby given that on
contract.
to Brent J. Fields, Secretary, Securities September 4, 2018 Cboe C2 Exchange,
The Exchange also proposes to reduce
and Exchange Commission, 100 F Street Inc. (the ‘‘Exchange’’ or ‘‘C2’’) filed with
the current rebates given to Market
NE, Washington, DC 20549–1090. the Securities and Exchange
Maker and Non-Customer, Non-Market
All submissions should refer to File Commission (the ‘‘Commission’’) the
Maker orders that add liquidity in
Number SR–NYSEArca–2018–63. This proposed rule change as described in
Penny Classes. Specifically, the
file number should be included on the Items I, II, and III below, which Items
Exchange proposes reduce the Penny
subject line if email is used. To help the have been prepared by the Exchange.
Class Add rebate for Market-Maker
Commission process and review your The Commission is publishing this
orders (which orders yield fee code PM)
comments more efficiently, please use notice to solicit comments on the
from $0.45 per contract to $0.41 per
only one method. The Commission will proposed rule change from interested
contract. The Exchange also proposes to
post all comments on the Commission’s persons.
reduce the Penny Class Add rebate for
internet website (http://www.sec.gov/ I. Self-Regulatory Organization’s Non-Customer, Non-Market Maker
rules/sro.shtml). Copies of the Statement of the Terms of Substance of orders (which orders yield fee code PN)
submission, all subsequent the Proposed Rule Change from $0.40 per contract to $0.36 per
amendments, all written statements contract.
Cboe C2 Exchange, Inc. (the
with respect to the proposed rule
‘‘Exchange’’ or ‘‘C2 Options’’) proposes 2. Statutory Basis
change that are filed with the
to amend its Fees Schedule.
Commission, and all written The text of the proposed rule change The Exchange believes the proposed
communications relating to the is also available on the Exchange’s rule change is consistent with the
proposed rule change between the website (http://www.c2exchange.com/ Securities Exchange Act of 1934 (the
Commission and any person, other than Legal/), at the Exchange’s Office of the ‘‘Act’’) and the rules and regulations
those that may be withheld from the Secretary, and at the Commission’s thereunder applicable to the Exchange
public in accordance with the Public Reference Room. and, in particular, the requirements of
provisions of 5 U.S.C. 552, will be Section 6(b) of the Act.3 Specifically,
available for website viewing and II. Self-Regulatory Organization’s the Exchange believes the proposed rule
printing in the Commission’s Public Statement of the Purpose of, and change is consistent with Section 6(b)(4)
Reference Room, 100 F Street NE, Statutory Basis for, the Proposed Rule of the Act,4 which provides that
Washington, DC 20549, on official Change Exchange rules may provide for the
business days between the hours of 10 In its filing with the Commission, the equitable allocation of reasonable dues,
a.m. and 3 p.m. Copies of the filing also Exchange included statements fees, and other charges among its TPHs
will be available for inspection and concerning the purpose of and basis for and other persons using its facilities.
daltland on DSKBBV9HB2PROD with NOTICES
copying at the principal office of the the proposed rule change and discussed Additionally, the Exchange believes the
Exchange. All comments received will any comments it received on the proposed rule change is consistent with
be posted without change. Persons proposed rule change. The text of these the Section 6(b)(5) 5 requirement that
submitting comments are cautioned that
we do not redact or edit personal 12 17 CFR 200.30–3(a)(12). 3 15 U.S.C. 78f(b).
identifying information from comment 1 15 U.S.C. 78s(b)(1). 4 15 U.S.C. 78f(b)(4).
submissions. You should submit only 2 17 CFR 240.19b–4. 5 15 U.S.C. 78f(b)(5).
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Document Created: 2018-09-15 01:38:06
Document Modified: 2018-09-15 01:38:06
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