83 FR 52586 - Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7.14E, Clearance and Settlement
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 201 (October 17, 2018)
Federal Register Volume 83, Issue 201 (October 17, 2018)
| Page Range | 52586-52588 | |
| FR Document | 2018-22532 |
[Federal Register Volume 83, Number 201 (Wednesday, October 17, 2018)] [Notices] [Pages 52586-52588] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-22532] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-84412; File No. SR-NYSEAMER-2018-45] Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7.14E, Clearance and Settlement October 11, 2018. Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that on September 27, 2018, NYSE American LLC (``Exchange'' or ``NYSE American'') 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 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 Rule 7.14E, Clearance and Settlement, to remove language that is inconsistent with the Exchange's Price List. The proposed rule 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 proposes to amend Rule 7.14E, Clearance and Settlement, to remove language that was inadvertently included when the rule was first adopted and that is inconsistent with the Exchange's Price List. The Exchange adopted Rule 7.14E as part of a proposed rule change to adopt rules for trading on the Exchange's new trading technology platform.\4\ Rule 7.14E was based on similar rules of its affiliate, NYSE Arca, Inc. (``NYSE Arca'') Rule 7.14-E and adopted by the Exchange without any substantive differences.\5\ --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release Nos. 79242 (November 4, 2016), 81 FR 79081 (November 10, 2016) (SR-NYSEMKT-2016-97); 80590 (May 4, 2017), 82 FR 21843 (May 10, 2017) (SR-NYSEMKT-2017-01); and 79982 (February 7, 2017), 82 FR 105008 (February 13, 2017) (Notice) and 80577 (May 2, 2017), 82 FR 21446 (May 8, 2017) (SR-NYSEMKT-2017- 04). \5\ Id. --------------------------------------------------------------------------- Paragraph (c) of Rule 7.14E states that ``[e]ach clearing firm must be admitted to the Exchange as an ETP Holder by meeting the qualification requirements set forth in Rule 2--Equities.'' Paragraph (c) of Rule 7.14E also includes language that exempts clearing firms from paying the regular ETP Holder fee where that clearing firm became an ETP Holder for the sole purpose of acting as a clearing firm on the Exchange. This language [[Page 52587]] was inadvertently included when Rule 7.14E was adopted and is inconsistent with the Exchange's Price List, which does not include language exempting clearing only ETP Holders from the fee's application.\6\ The Exchange notes that no such exemption exists in the Exchange's rule governing the trading of Exchange-listed securities. Therefore, the Exchange proposes to remove the following phrase from the first sentence of Exchange Rule 7.14E(c): ``provided, however, if the clearing firm has become an ETP Holder for the sole purpose of acting as a clearing firm on the Exchange, such clearing firm need not pay the regular ETP Holder fee''. --------------------------------------------------------------------------- \6\ The Exchange does not currently charge ETP Holders a separate ETP Holder fee. See the Exchange's Price List on page 4 available at https://www.nyse.com/publicdocs/nyse/markets/nyse-american/NYSE_America_Equities_Price_List.pdf (dated July 26, 2018). --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that the proposal is consistent with Section 6(b) of the Act,\7\ in general, and furthers the objectives of Sections 6(b)(5) of the Act,\8\ in particular, because it is designed to promote just and equitable principles of trade, remove impediments to, and perfect the mechanisms of, a free and open market and a national market system and, in general, to protect investors and the public interest. The Exchange believes that the proposed rule change would remove impediments to, and perfect the mechanisms of, a free and open market and a national market system and, in general, protect investors and the public interest because it would remove language from Exchange Rule 7.14E(c) that was inadvertently included when the rule was adopted and that is inconsistent with the Exchange's Price List. The proposed rule change would delete language from Rule 7.14E(c) that incorrectly exempts clearing only ETP Holders from the ETP Holder fee and would, therefore, remove an inconsistency between Rule 7.14E and the Exchange's Price List. The Exchange does not currently charge an ETP Holder fee.\9\ Further, no ETP Holders currently acts solely as a clearing firm and, therefore, no ETP Holder would be affected by the proposed rule change. The proposed rule change should avoid potential confusion about the applicability of the ETP Holder fee should an ETP Holder seek to act solely as a clearing firm on the Exchange. Lastly, the Exchange notes that no such exemption exists in the Exchange's rule governing the trading of Exchange-listed securities. Therefore, the proposed rule change would allow for the consistent application of the ETP Holder fee among ETP Holders that act solely as clearing firms. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f(b). \8\ 15 U.S.C. 78f(b)(5). \9\ See supra note 6. --------------------------------------------------------------------------- The Exchange also believes that the proposed rule change is consistent with Sections 6(b)(4) of the Act \10\ because it provides for the equitable allocation of reasonable dues, fees, and other charges among its members, issuers and other persons using its facilities and does not unfairly discriminate between customers, issuers, brokers or dealers. The proposed rule change is equitable, reasonable, and not unfairly discriminatory because it would clarify the application of the ETP Holder fee and apply it equally to ETP Holders that act solely as a clearing firm. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- For these reasons, the Exchange believes that the proposal is consistent with the Act. B. Self-Regulatory Organization's Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,\11\ the Exchange believes that the proposed rule change would not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change is not designed to have a competitive impact. It is simply intended to amend the Exchange's rules to remove language from Exchange Rule 7.14E(c) that was inadvertently included when the rule was adopted and that is inconsistent with the Exchange's Price List. It is not intended to address any competitive issues or to attract additional order flow the Exchange. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- 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 The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \12\ and Rule 19b-4(f)(6) thereunder.\13\ Because the 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 prior to 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b- 4(f)(6)(iii) thereunder. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78s(b)(3)(A)(iii). \13\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \14\ normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii) [sic],\15\ the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. --------------------------------------------------------------------------- \14\ 17 CFR 240.19b-4(f)(6). \15\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- At any time within 60 days of the filing of such 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 shall institute proceedings under Section 19(b)(2)(B) \16\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \16\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- 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-NYSEAMER-2018-45 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-NYSEAMER-2018-45. 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/ [[Page 52588]] 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 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-NYSEAMER-2018-45, and should be submitted on or before November 7, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\17\ --------------------------------------------------------------------------- \17\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-22532 Filed 10-16-18; 8:45 am] BILLING CODE 8011-01-P
![52586 Federal Register / Vol. 83, No. 201 / Wednesday, October 17, 2018 / Notices
communications failure. Thus, the Clients to act on their behalf in I. Self-Regulatory Organization’s
Commission believes that these exercising their CDS Options. Statement of the Terms of Substance of
alternative procedures would help Therefore, for the above reasons the the Proposed Rule Change
ensure the resiliency and operational Commission finds that the proposed The Exchange proposes to amend
reliability of the EEP by providing a rule change is consistent with Rule Rule 7.14E, Clearance and Settlement, to
means to exercise CDS Options where 17Ad–22(e)(18).72 remove language that is inconsistent
the EEP is unavailable or inaccessible. with the Exchange’s Price List. The
Therefore, for the above reasons the IV. Conclusion
proposed rule change is available on the
Commission finds that the proposed On the basis of the foregoing, the Exchange’s website at www.nyse.com, at
rule change is consistent with Rules Commission finds that the proposed the principal office of the Exchange, and
17Ad–22(e)(17)(i)–(ii).70 rule change is consistent with the at the Commission’s Public Reference
D. Consistency With Rule 17Ad– requirements of the Act, and in Room.
22(e)(18) particular, Section 17A(b)(3)(F) of the
Act 73 and Rules 17Ad–22(e)(1), II. Self-Regulatory Organization’s
Rule 17Ad–22(e)(18) requires that (e)(17)(i)–(ii), and (e)(18) thereunder.74 Statement of the Purpose of, and
LCH SA establish, implement, maintain It is therefore ordered pursuant to Statutory Basis for, the Proposed Rule
and enforce written policies and Section 19(b)(2) of the Act that the Change
procedures reasonably designed to proposed rule change (SR–LCH SA– In its filing with the Commission, the
establish objective, risk-based, and 2018–004) be, and hereby is, self-regulatory organization included
publicly disclosed criteria for approved.75 statements concerning the purpose of,
participation, which permit fair and and basis for, the proposed rule change
open access by direct and, where For the Commission by the Division of
Trading and Markets, pursuant to delegated and discussed any comments it received
relevant, indirect participants and other on the proposed rule change. The text
authority.76
financial market utilities, require of those statements may be examined at
Eduardo A. Aleman,
participants to have sufficient financial the places specified in Item IV below.
resources and robust operational Assistant Secretary.
[FR Doc. 2018–22540 Filed 10–16–18; 8:45 am]
The Exchange has prepared summaries,
capacity to meet obligations arising from set forth in sections A, B, and C below,
participation in the clearing agency, and BILLING CODE 8011–01–P
of the most significant parts of such
monitor compliance with such statements.
participation requirements on an
ongoing basis.71 SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
The Commission believes that by COMMISSION Statement of the Purpose of, and the
allowing Clients to exercise CDS Statutory Basis for, the Proposed Rule
Options in the EEP directly, the [Release No. 34–84412; File No. SR– Change
proposed rule change would establish NYSEAMER–2018–45]
1. Purpose
objective and publicly disclosed criteria
for Clients to participate in the EEP. Self-Regulatory Organizations; NYSE The Exchange proposes to amend
Specifically, the proposed rule change American LLC; Notice of Filing and Rule 7.14E, Clearance and Settlement, to
would, as discussed above, require Immediate Effectiveness of Proposed remove language that was inadvertently
Clearing Members to designate their Rule Change To Amend Rule 7.14E, included when the rule was first
relevant Clients to act on their behalf via Clearance and Settlement adopted and that is inconsistent with
the EEP with respect to those CDS October 11, 2018.
the Exchange’s Price List. The Exchange
Options transactions that are Client adopted Rule 7.14E as part of a
Pursuant to Section 19(b)(1) 1 of the
Cleared Transactions. The proposed rule proposed rule change to adopt rules for
Securities Exchange Act of 1934 trading on the Exchange’s new trading
change would also require that Clearing (‘‘Act’’) 2 and Rule 19b–4 thereunder,3
Members delegate to their Clients technology platform.4 Rule 7.14E was
notice is hereby given that on based on similar rules of its affiliate,
sufficient power to act on their behalf September 27, 2018, NYSE American
via the EEP and require Clients to NYSE Arca, Inc. (‘‘NYSE Arca’’) Rule
LLC (‘‘Exchange’’ or ‘‘NYSE American’’) 7.14–E and adopted by the Exchange
exercise that power through their Client filed with the Securities and Exchange
Portal Account on the EEP. Finally, the without any substantive differences.5
Commission (‘‘Commission’’) the Paragraph (c) of Rule 7.14E states that
proposed rule change would add proposed rule change as described in
provisions to Appendix VIII of the ‘‘[e]ach clearing firm must be admitted
Items I, II, and III below, which Items to the Exchange as an ETP Holder by
Supplement to incorporate these have been prepared by the self- meeting the qualification requirements
conditions directly into the terms of the regulatory organization. The set forth in Rule 2—Equities.’’ Paragraph
transaction between a Clearing Member Commission is publishing this notice to (c) of Rule 7.14E also includes language
and its Client. The Commission believes solicit comments on the proposed rule that exempts clearing firms from paying
that these aspects of the proposed rule change from interested persons. the regular ETP Holder fee where that
change would establish the objective
clearing firm became an ETP Holder for
and public criteria that Clients must 72 17 CFR 240.17Ad–22(e)(18). the sole purpose of acting as a clearing
follow to directly access the EEP and 73 15 U.S.C. 78q–1(b)(3)(F). firm on the Exchange. This language
participate in exercising CDS Options at 74 17 CFR 240.17Ad–22(e)(1), (e)(17)(i)–(ii),
LCH SA. Moreover, the Commission (e)(18).
daltland on DSKBBV9HB2PROD with NOTICES
4 See Securities Exchange Act Release Nos. 79242
75 In approving the proposed rule change, the
believes these aspects of the proposed (November 4, 2016), 81 FR 79081 (November 10,
Commission considered the proposal’s impacts on
rule change would permit fair and open efficiency, competition, and capital formation. 15
2016) (SR–NYSEMKT–2016–97); 80590 (May 4,
access by Clients by requiring Clearing 2017), 82 FR 21843 (May 10, 2017) (SR–NYSEMKT–
U.S.C. 78c(f). 2017–01); and 79982 (February 7, 2017), 82 FR
Members to designate their relevant 76 17 CFR 200.30–3(a)(12).
105008 (February 13, 2017) (Notice) and 80577
1 15 U.S.C.78s(b)(1).
(May 2, 2017), 82 FR 21446 (May 8, 2017) (SR–
70 17 CFR 240.17Ad–22(e)(17)(i)–(ii). 2 15 U.S.C. 78a. NYSEMKT–2017–04).
71 17 CFR 240.17Ad–22(e)(18). 3 17 CFR 240.19b–4. 5 Id.
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was inadvertently included when Rule securities. Therefore, the proposed rule it was filed, or such shorter time as the
7.14E was adopted and is inconsistent change would allow for the consistent Commission may designate, if
with the Exchange’s Price List, which application of the ETP Holder fee among consistent with the protection of
does not include language exempting ETP Holders that act solely as clearing investors and the public interest, the
clearing only ETP Holders from the fee’s firms. proposed rule change has become
application.6 The Exchange notes that The Exchange also believes that the effective pursuant to Section 19(b)(3)(A)
no such exemption exists in the proposed rule change is consistent with of the Act and Rule 19b–4(f)(6)(iii)
Exchange’s rule governing the trading of Sections 6(b)(4) of the Act 10 because it thereunder.
Exchange-listed securities. Therefore, provides for the equitable allocation of A proposed rule change filed under
the Exchange proposes to remove the reasonable dues, fees, and other charges Rule 19b–4(f)(6) 14 normally does not
following phrase from the first sentence among its members, issuers and other become operative prior to 30 days after
of Exchange Rule 7.14E(c): ‘‘provided, persons using its facilities and does not the date of the filing. However, pursuant
however, if the clearing firm has become unfairly discriminate between to Rule 19b–4(f)(6)(iii) [sic],15 the
an ETP Holder for the sole purpose of customers, issuers, brokers or dealers. Commission may designate a shorter
acting as a clearing firm on the The proposed rule change is equitable, time if such action is consistent with the
Exchange, such clearing firm need not reasonable, and not unfairly protection of investors and the public
pay the regular ETP Holder fee’’. discriminatory because it would clarify interest.
2. Statutory Basis the application of the ETP Holder fee At any time within 60 days of the
and apply it equally to ETP Holders that filing of such proposed rule change, the
The Exchange believes that the act solely as a clearing firm. Commission summarily may
proposal is consistent with Section 6(b) For these reasons, the Exchange temporarily suspend such rule change if
of the Act,7 in general, and furthers the believes that the proposal is consistent it appears to the Commission that such
objectives of Sections 6(b)(5) of the Act,8 with the Act. action is necessary or appropriate in the
in particular, because it is designed to public interest, for the protection of
promote just and equitable principles of B. Self-Regulatory Organization’s
investors, or otherwise in furtherance of
trade, remove impediments to, and Statement on Burden on Competition
the purposes of the Act. If the
perfect the mechanisms of, a free and In accordance with Section 6(b)(8) of Commission takes such action, the
open market and a national market the Act,11 the Exchange believes that the Commission shall institute proceedings
system and, in general, to protect proposed rule change would not impose under Section 19(b)(2)(B) 16 of the Act to
investors and the public interest. The any burden on competition that is not determine whether the proposed rule
Exchange believes that the proposed necessary or appropriate in furtherance change should be approved or
rule change would remove impediments of the purposes of the Act. The disapproved.
to, and perfect the mechanisms of, a free proposed rule change is not designed to
and open market and a national market have a competitive impact. It is simply IV. Solicitation of Comments
system and, in general, protect investors intended to amend the Exchange’s rules Interested persons are invited to
and the public interest because it would to remove language from Exchange Rule submit written data, views, and
remove language from Exchange Rule 7.14E(c) that was inadvertently included arguments concerning the foregoing,
7.14E(c) that was inadvertently included when the rule was adopted and that is including whether the proposed rule
when the rule was adopted and that is inconsistent with the Exchange’s Price change is consistent with the Act.
inconsistent with the Exchange’s Price List. It is not intended to address any Comments may be submitted by any of
List. The proposed rule change would competitive issues or to attract the following methods:
delete language from Rule 7.14E(c) that additional order flow the Exchange.
incorrectly exempts clearing only ETP Electronic Comments
Holders from the ETP Holder fee and C. Self-Regulatory Organization’s • Use the Commission’s internet
would, therefore, remove an Statement on Comments on the comment form (http://www.sec.gov/
inconsistency between Rule 7.14E and Proposed Rule Change Received From rules/sro.shtml); or
the Exchange’s Price List. The Exchange Members, Participants, or Others • Send an email to rule-comments@
does not currently charge an ETP Holder No written comments were solicited sec.gov. Please include File Number SR–
fee.9 Further, no ETP Holders currently or received with respect to the proposed NYSEAMER–2018–45 on the subject
acts solely as a clearing firm and, rule change. line.
therefore, no ETP Holder would be
affected by the proposed rule change. III. Date of Effectiveness of the Paper Comments
The proposed rule change should avoid Proposed Rule Change and Timing for • Send paper comments in triplicate
potential confusion about the Commission Action to Secretary, Securities and Exchange
applicability of the ETP Holder fee The Exchange has filed the proposed Commission, 100 F Street NE,
should an ETP Holder seek to act solely rule change pursuant to Section Washington, DC 20549–1090.
as a clearing firm on the Exchange. 19(b)(3)(A)(iii) of the Act 12 and Rule All submissions should refer to File
Lastly, the Exchange notes that no such 19b–4(f)(6) thereunder.13 Because the Number SR–NYSEAMER–2018–45. This
exemption exists in the Exchange’s rule proposed rule change does not: (i) file number should be included on the
governing the trading of Exchange-listed Significantly affect the protection of subject line if email is used. To help the
investors or the public interest; (ii) Commission process and review your
6 The Exchange does not currently charge ETP
impose any significant burden on comments more efficiently, please use
daltland on DSKBBV9HB2PROD with NOTICES
Holders a separate ETP Holder fee. See the competition; and (iii) become operative only one method. The Commission will
Exchange’s Price List on page 4 available at https://
www.nyse.com/publicdocs/nyse/markets/nyse- prior to 30 days from the date on which post all comments on the Commission’s
american/NYSE_America_Equities_Price_List.pdf internet website (http://www.sec.gov/
(dated July 26, 2018). 10 15 U.S.C. 78f(b)(4).
7 15 U.S.C. 78f(b). 11 15 U.S.C. 78f(b)(8). 14 17 CFR 240.19b–4(f)(6).
8 15 U.S.C. 78f(b)(5). 12 15 U.S.C. 78s(b)(3)(A)(iii). 15 17 CFR 240.19b–4(f)(6)(iii).
9 See supra note 6. 13 17 CFR 240.19b–4(f)(6). 16 15 U.S.C. 78s(b)(2)(B).
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![52588 Federal Register / Vol. 83, No. 201 / Wednesday, October 17, 2018 / Notices
rules/sro.shtml). Copies of the September 28, 2018, Cboe BZX (1) Establish Purge Ports for equities
submission, all subsequent Exchange, Inc. (‘‘Exchange’’ or ‘‘BZX’’) trading and amend the Interpretations
amendments, all written statements filed with the Securities and Exchange and Policies to Rule 11.13, Order
with respect to the proposed rule Commission (‘‘Commission’’) the Execution and Routing, to reflect the
change that are filed with the proposed rule change as described in proposed Purge Ports, and (2) modify
Commission, and all written Items I and II below, which Items have the fee schedule applicable to BZX
communications relating to the been prepared by the Exchange. The Equities to identify and to set fees for
proposed rule change between the Exchange has designated this proposal Purge Ports.
Commission and any person, other than as a ‘‘non-controversial’’ proposed rule Purge Ports are already available on
those that may be withheld from the change pursuant to Section 19(b)(3)(A) the Exchange’s affiliated options
public in accordance with the of the Act 3 and Rule 19b–4(f)(6)(iii) markets—i.e., the Exchange’s options
provisions of 5 U.S.C. 552, will be thereunder,4 which renders it effective trading platform (‘‘BZX Options’’), the
available for website viewing and upon filing with the Commission. The options trading platform of Cboe EDGX
printing in the Commission’s Public Commission is publishing this notice to Exchange, Inc. (‘‘EDGX Options’’), and
Reference Room, 100 F Street NE, solicit comments on the proposed rule Cboe C2 Exchange, Inc. (‘‘C2’’).6 Based
Washington, DC 20549, on official change from interested persons. on the successful experience with Purge
business days between the hours of Ports for options, and in response to
10:00 a.m. and 3:00 p.m. Copies of the I. Self-Regulatory Organization’s
demand for similar functionality for
filing also will be available for Statement of the Terms of Substance of
equities trading, the Exchange has
inspection and copying at the principal the Proposed Rule Change
determined to offer Purge Ports on BZX
office of the Exchange. All comments The Exchange is proposing to (1) Equities. The Exchange believes that the
received will be posted without change; establish Purge Ports for equities trading proposed Purge Port functionality will
Persons submitting comments are and amend the Interpretations and provide an effective tool for Users to
cautioned that we do not redact or edit Policies to Rule 11.13, Order Execution manage their risk associated with
personal identifying information from and Routing, to reflect the proposed equities trading.
comment submissions. You should Purge Ports, and (2) modify the fee
submit only information that you wish schedule applicable to the Exchange’s Background
to make available publicly. All equities platform (‘‘BZX Equities’’) to A logical port represents a port
submissions should refer to File identify and to set fees for Purge Ports. established by the Exchange within the
Number SR–NYSEAMER–2018–45, and The text of the proposed rule change Exchange’s system for trading and
should be submitted on or before is available at the Exchange’s website at billing purposes. Each logical port
November 7, 2018. www.markets.cboe.com, at the principal established is specific to a Member or
For the Commission, by the Division of office of the Exchange, and at the non-Member and grants that Member or
Trading and Markets, pursuant to delegated Commission’s Public Reference Room. non-Member the ability to accomplish a
authority.17 specific function, such as order entry,
II. Self-Regulatory Organization’s
Eduardo A. Aleman, order cancellation, or data receipt. In
Statement of the Purpose of, and
Assistant Secretary. Statutory Basis for, the Proposed Rule addition, logical ports enable Users to
[FR Doc. 2018–22532 Filed 10–16–18; 8:45 am] Change access information such as execution
BILLING CODE 8011–01–P reports, execution report messages,
In its filing with the Commission, the auction notifications, and
Exchange included statements administrative data through a single
SECURITIES AND EXCHANGE concerning the purpose of and basis for feed.
COMMISSION the proposed rule change and discussed
any comments it received on the Purge Ports
[Release No. 34–84406; File No. SR– proposed rule change. The text of these
CboeBZX–2018–074] The Exchange now proposes to amend
statements may be examined at the the Interpretations and Policies to Rule
Self-Regulatory Organizations; Cboe places specified in Item IV below. The 11.13, Order Execution and Routing, to
BZX Exchange, Inc.; Notice of Filing Exchange has prepared summaries, set identify Purge Ports, a new type of
and Immediate Effectiveness of a forth in Sections A, B, and C below, of logical port that would enable Users to
Proposed Rule Change To Introduce the most significant parts of such cancel all open orders, or a subset
Equities Purge Ports To (1) Establish statements. thereof, across multiple logical ports
Purge Ports for Equities Trading and (A) Self-Regulatory Organization’s through a single cancel message. The
Amend the Interpretations and Policies Statement of the Purpose of, and Exchange also proposes to amend the
to Rule 11.10, Order Execution, To Statutory Basis for, the Proposed Rule BZX Equities fee schedule to adopt fees
Reflect the Proposed Purge Ports, and Change for Purge Ports.
(2) Modify the Fee Schedule Applicable The proposed ports are designed to
to the Exchange’s Equities Platform 1. Purpose assist Users, including Market Makers,7
(‘‘BZX Equities’’) To Identify and To Set The purpose of the proposed rule in the management of, and risk control
Fees for Purge Ports change is to offer Users 5 an additional over, their quotes, particularly if the
tool to manage risk and exercise firm is quoting a large number of
October 11, 2018.
additional control over their quotations
Pursuant to Section 19(b)(1) of the
daltland on DSKBBV9HB2PROD with NOTICES
6 See Securities Exchange Act Release Nos. 79956
in equity securities (i.e., ‘‘Purge Ports’’).
Securities Exchange Act of 1934 Specifically, the Exchange proposes to: (February 3, 2017), 82 FR 10102 (February 9, 2017)
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 (SR–BatsBZX–2017–05); 79957 (February 3, 2017),
82 FR 10070 (February 9, 2017) (SR–BatsEDGX–
notice is hereby given that on 3 15 U.S.C. 78s(b)(3)(A). 2017–07); 83201 (May 9, 2018), 83 FR 22546 (May
4 17 CFR 240.19b–4(f)(6)(iii). 15, 2018) (SR–C2–2018–006).
17 17 CFR 200.30–3(a)(12). 5 A ‘‘User’’ is any Member or Sponsored 7 A ‘‘Market Maker’’ is a Member that acts as a
1 15 U.S.C. 78s(b)(1). Participant who is authorized to obtain access to the Market Maker pursuant to Chapter XI. See Rule
2 17 CFR 240.19b–4. System pursuant to Rule 11.3. See Rule 1.5(cc). 1.5(l).
VerDate Sep<11>2014 19:46 Oct 16, 2018 Jkt 247001 PO 00000 Frm 00213 Fmt 4703 Sfmt 4703 E:\FR\FM\17OCN1.SGM 17OCN1](https://thefederalregister.org/doc/83_FR_52787/page/3.svg)
Document Created: 2018-10-17 01:47:31
Document Modified: 2018-10-17 01:47:31
| 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 52586 |
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