83 FR 46983 - Self-Regulatory Organizations; Cboe C2 Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating To Amend Its Fees Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 180 (September 17, 2018)
Federal Register Volume 83, Issue 180 (September 17, 2018)
| Page Range | 46983-46984 | |
| FR Document | 2018-20072 |
[Federal Register Volume 83, Number 180 (Monday, September 17, 2018)] [Notices] [Pages 46983-46984] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-20072] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-84078; File No. SR-C2-2018-018] Self-Regulatory Organizations; Cboe C2 Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating To Amend Its Fees Schedule September 11, 2018. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on September 4, 2018 Cboe C2 Exchange, Inc. (the ``Exchange'' or ``C2'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change Cboe C2 Exchange, Inc. (the ``Exchange'' or ``C2 Options'') proposes to amend its Fees Schedule. The text of the proposed rule change is also available on the Exchange's website (http://www.c2exchange.com/Legal/), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend its Fees Schedule, effective September 4, 2018. The Exchange first proposes to reduce fees for Public Customer, Market-Maker and Non-Customer, Non-Market Maker orders that remove liquidity in Penny Classes. Particularly, the Exchange proposes to reduce the Penny Class Remove rate for Public Customers (which orders yield fee code PC) from $0.49 per contract to $0.43 per contract and reduce the Penny Class Remove rate for Market-Maker and Non-Customer, Non-Market Maker orders (which orders yield fee codes PR and PP, respectively) from $0.50 per contract to $0.49 per contract. The Exchange also proposes to reduce the current rebates given to Market Maker and Non-Customer, Non-Market Maker orders that add liquidity in Penny Classes. Specifically, the Exchange proposes reduce the Penny Class Add rebate for Market-Maker orders (which orders yield fee code PM) from $0.45 per contract to $0.41 per contract. The Exchange also proposes to reduce the Penny Class Add rebate for Non- Customer, Non-Market Maker orders (which orders yield fee code PN) from $0.40 per contract to $0.36 per contract. 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 (the ``Act'') and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.\3\ Specifically, the Exchange believes the proposed rule change is consistent with Section 6(b)(4) of the Act,\4\ which provides that Exchange rules may provide for the equitable allocation of reasonable dues, fees, and other charges among its TPHs and other persons using its facilities. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \5\ requirement that [[Page 46984]] the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \3\ 15 U.S.C. 78f(b). \4\ 15 U.S.C. 78f(b)(4). \5\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes the proposed fee changes to reduce transaction fees for orders that remove liquidity in Penny Classes is reasonable because the respective market participants would pay lower fees for these transactions. The Exchange believes the proposed rule change is equitable and not unfairly discriminatory because similarly situated market participants would be paying the same fees. The Exchange believes that reducing the rebates for Market-Maker and Non-Customer, Non-Market Maker orders that add liquidity in Penny Classes is reasonable because it still provides these market participants an opportunity to receive rebates for these transactions (now just a smaller amount). The Exchange believes the proposed rule change is equitable and not unfairly discriminatory because similarly situated market participants receive the same rebate. Additionally, the Exchange believes that it is equitable and not unfairly discriminatory to assess lower fees and provide higher rebates to Public Customers as compared to other market participants because Public Customer order flow enhances liquidity on the Exchange for the benefit of all market participants. Specifically, Public Customer liquidity benefits all market participants by providing more trading opportunities, which attracts Market-Makers. An increase in the activity of these market participants in turn facilitates tighter spreads, which may cause an additional corresponding increase in order flow from other market participants. The Exchange believes it's appropriate to provide a higher rebate to Market-Makers who add liquidity as compared to Non-Customer, Non-Market Makers because Market-Makers are valuable market participants that provide liquidity in the marketplace and incur costs that other market participants do not incur. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule changes will impose any burden on competition that are not necessary or appropriate in furtherance of the purposes of the Act. The Exchange does not believe that the proposed rule change will impose any burden on intramarket competition that is not necessary or appropriate in furtherance of the purposes of the Act because, while different fees and rebates are assessed to different market participants in some circumstances, these different market participants have different obligations and different circumstances as discussed above. The Exchange believes this proposal will not cause an unnecessary burden on intermarket competition because the Exchange does not believe that the proposed changes represent a significant departure from previous pricing offered by the Exchange or pricing offered by the Exchange's competitors. Market Participants may opt to disfavor the Exchange's pricing if they believe that alternatives offer them better value. To the extent that the proposed changes make C2 a more attractive marketplace for market participants at other exchanges, such market participants are welcome to become C2 market participants. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange neither solicited nor received comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \6\ and paragraph (f) of Rule 19b-4 \7\ thereunder. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission will institute proceedings to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78s(b)(3)(A). \7\ 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 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-C2-2018-018 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-C2-2018-018. 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-C2-2018-018 and should be submitted on or before October 9, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\8\ --------------------------------------------------------------------------- \8\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-20072 Filed 9-14-18; 8:45 am] BILLING CODE 8011-01-P
![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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![46984 Federal Register / Vol. 83, No. 180 / Monday, September 17, 2018 / Notices
the rules of an exchange not be designed these different market participants have Paper Comments
to permit unfair discrimination between different obligations and different
customers, issuers, brokers, or dealers. circumstances as discussed above. The • Send paper comments in triplicate
The Exchange believes the proposed Exchange believes this proposal will not to Brent J. Fields, Secretary, Securities
fee changes to reduce transaction fees cause an unnecessary burden on and Exchange Commission, 100 F Street
for orders that remove liquidity in intermarket competition because the NE, Washington, DC 20549–1090.
Penny Classes is reasonable because the Exchange does not believe that the All submissions should refer to File
respective market participants would proposed changes represent a significant
pay lower fees for these transactions. Number SR–C2–2018–018. This file
departure from previous pricing offered number should be included on the
The Exchange believes the proposed by the Exchange or pricing offered by
rule change is equitable and not unfairly subject line if email is used. To help the
the Exchange’s competitors. Market
discriminatory because similarly Commission process and review your
Participants may opt to disfavor the
situated market participants would be Exchange’s pricing if they believe that comments more efficiently, please use
paying the same fees. alternatives offer them better value. To only one method. The Commission will
The Exchange believes that reducing the extent that the proposed changes post all comments on the Commission’s
the rebates for Market-Maker and Non- make C2 a more attractive marketplace internet website (http://www.sec.gov/
Customer, Non-Market Maker orders for market participants at other rules/sro.shtml). Copies of the
that add liquidity in Penny Classes is exchanges, such market participants are submission, all subsequent
reasonable because it still provides welcome to become C2 market amendments, all written statements
these market participants an participants. with respect to the proposed rule
opportunity to receive rebates for these change that are filed with the
transactions (now just a smaller C. Self-Regulatory Organization’s Commission, and all written
amount). The Exchange believes the Statement on Comments on the
communications relating to the
proposed rule change is equitable and Proposed Rule Change Received From
proposed rule change between the
not unfairly discriminatory because Members, Participants, or Others
Commission and any person, other than
similarly situated market participants The Exchange neither solicited nor those that may be withheld from the
receive the same rebate. received comments on the proposed
Additionally, the Exchange believes public in accordance with the
rule change. provisions of 5 U.S.C. 552, will be
that it is equitable and not unfairly
discriminatory to assess lower fees and III. Date of Effectiveness of the available for website viewing and
provide higher rebates to Public Proposed Rule Change and Timing for printing in the Commission’s Public
Customers as compared to other market Commission Action Reference Room, 100 F Street NE,
participants because Public Customer The foregoing rule change has become Washington, DC 20549, on official
order flow enhances liquidity on the effective pursuant to Section 19(b)(3)(A) business days between the hours of 10
Exchange for the benefit of all market of the Act 6 and paragraph (f) of Rule a.m. and 3 p.m. Copies of the filing also
participants. Specifically, Public 19b–4 7 thereunder. At any time within will be available for inspection and
Customer liquidity benefits all market 60 days of the filing of the proposed rule copying at the principal office of the
participants by providing more trading change, the Commission summarily may Exchange. All comments received will
opportunities, which attracts Market- temporarily suspend such rule change if be posted without change.
Makers. An increase in the activity of it appears to the Commission that such Persons submitting comments are
these market participants in turn action is necessary or appropriate in the cautioned that we do not redact or edit
facilitates tighter spreads, which may public interest, for the protection of
cause an additional corresponding personal identifying information from
investors, or otherwise in furtherance of comment submissions. You should
increase in order flow from other market the purposes of the Act. If the
participants. The Exchange believes it’s submit only information that you wish
Commission takes such action, the to make available publicly. All
appropriate to provide a higher rebate to Commission will institute proceedings
Market-Makers who add liquidity as submissions should refer to File
to determine whether the proposed rule
compared to Non-Customer, Non- Number SR–C2–2018–018 and should
change should be approved or
Market Makers because Market-Makers be submitted on or before October 9,
disapproved.
are valuable market participants that 2018.
provide liquidity in the marketplace and IV. Solicitation of Comments For the Commission, by the Division of
incur costs that other market Interested persons are invited to Trading and Markets, pursuant to delegated
participants do not incur. submit written data, views, and authority.8
B. Self-Regulatory Organization’s arguments concerning the foregoing, Eduardo A. Aleman,
Statement on Burden on Competition including whether the proposed rule Assistant Secretary.
change is consistent with the Act.
The Exchange does not believe that [FR Doc. 2018–20072 Filed 9–14–18; 8:45 am]
Comments may be submitted by any of
the proposed rule changes will impose the following methods: BILLING CODE 8011–01–P
any burden on competition that are not
necessary or appropriate in furtherance Electronic Comments
of the purposes of the Act. The • Use the Commission’s internet
Exchange does not believe that the comment form (http://www.sec.gov/
daltland on DSKBBV9HB2PROD with NOTICES
proposed rule change will impose any rules/sro.shtml); or
burden on intramarket competition that • Send an email to rule-comments@
is not necessary or appropriate in sec.gov. Please include File Number SR–
furtherance of the purposes of the Act C2–2018–018 on the subject line.
because, while different fees and rebates
are assessed to different market 6 15 U.S.C. 78s(b)(3)(A).
participants in some circumstances, 7 17 CFR 240.19b–4(f). 8 17 CFR 200.30–3(a)(12).
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Document Created: 2018-09-15 01:37:17
Document Modified: 2018-09-15 01:37:17
| 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 46983 |
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