83_FR_52796 83 FR 52595 - Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Introduce Equities Purge Ports To (1) Establish Purge Ports for Equities Trading and Amend the Interpretations and Policies to Rule 11.10, Order Execution, To Reflect the Proposed Purge Ports, and (2) Modify the Fee Schedule Applicable to the Exchange's Equities Platform (“BYX Equities”) To Identify and To Set Fees for Purge Ports

83 FR 52595 - Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Introduce Equities Purge Ports To (1) Establish Purge Ports for Equities Trading and Amend the Interpretations and Policies to Rule 11.10, Order Execution, To Reflect the Proposed Purge Ports, and (2) Modify the Fee Schedule Applicable to the Exchange's Equities Platform (“BYX Equities”) To Identify and To Set Fees for Purge Ports

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 201 (October 17, 2018)

Page Range52595-52598
FR Document2018-22534

Federal Register, Volume 83 Issue 201 (Wednesday, October 17, 2018)
[Federal Register Volume 83, Number 201 (Wednesday, October 17, 2018)]
[Notices]
[Pages 52595-52598]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-22534]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84404; File No. SR-CboeBYX-2018-022]


Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To 
Introduce Equities Purge Ports To (1) Establish Purge Ports for 
Equities Trading and Amend the Interpretations and Policies to Rule 
11.10, Order Execution, To Reflect the Proposed Purge Ports, and (2) 
Modify the Fee Schedule Applicable to the Exchange's Equities Platform 
(``BYX Equities'') To Identify and To Set Fees for Purge Ports

October 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 28, 2018, Cboe BYX Exchange, Inc. (``Exchange'' or 
``BYX'') 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 is proposing to: (1) Establish Purge Ports for 
equities trading and amend the Interpretations and Policies to Rule 
11.13, Order Execution and Routing, to reflect the proposed Purge 
Ports, and (2) modify the BYX fee schedule to identify and to set fees 
for Purge Ports.
    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 offer Users \5\ an 
additional tool to manage risk and exercise additional control over 
their quotations in equity securities (i.e., ``Purge Ports''). 
Specifically, the Exchange proposes to: (1) Establish Purge Ports for 
equities trading and amend the Interpretations and Policies to Rule 
11.13, Order Execution and Routing, to reflect the proposed Purge 
Ports, and (2) modify the BYX fee schedule to identify and to set fees 
for Purge Ports.
---------------------------------------------------------------------------

    \5\ A ``User'' is any Member or Sponsored Participant who is 
authorized to obtain access to the System pursuant to Rule 11.3. See 
Rule 1.5(cc).
---------------------------------------------------------------------------

    Purge Ports are already available on the Exchange's affiliated 
options markets--i.e., the options trading

[[Page 52596]]

platform of Cboe BZX Exchange, Inc. (``BZX Options''), the options 
trading platform of Cboe EDGX Exchange, Inc. (``EDGX Options''), and 
Cboe C2 Exchange, Inc. (``C2'').\6\ Based on the successful experience 
with Purge Ports for options, and in response to demand for similar 
functionality for equities trading, the Exchange has determined to 
offer Purge Ports on BYX. The Exchange believes that the proposed Purge 
Port functionality will provide an effective tool for Users to manage 
their risk associated with equities trading.
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release Nos. 79956 (February 3, 
2017), 82 FR 10102 (February 9, 2017) (SR-BatsBZX-2017-05); 79957 
(February 3, 2017), 82 FR 10070 (February 9, 2017) (SR-BatsEDGX-
2017-07); 83201 (May 9, 2018), 83 FR 22546 (May 15, 2018) (SR-C2-
2018-006).
---------------------------------------------------------------------------

Background
    A logical port represents a port established by the Exchange within 
the Exchange's system for trading and billing purposes. Each logical 
port established is specific to a Member or non-Member and grants that 
Member or non-Member the ability to accomplish a specific function, 
such as order entry, order cancellation, or data receipt. In addition, 
logical ports enable Users to access information such as execution 
reports, execution report messages, auction notifications, and 
administrative data through a single feed.
Purge Ports
    The Exchange now proposes to amend the Interpretations and Policies 
to Rule 11.13, Order Execution and Routing, to identify Purge Ports, a 
new type of logical port that would enable Users to cancel all open 
orders, or a subset thereof, across multiple logical ports through a 
single cancel message. The Exchange also proposes to amend the BYX fee 
schedule to adopt fees for Purge Ports.
    The proposed ports are designed to assist Users, including Market 
Makers,\7\ in the management of, and risk control over, their quotes, 
particularly if the firm is quoting a large number of securities. For 
example, if a Market Maker detects market indications that may 
influence the direction or bias of his or her quotes, the Market Maker 
may use the proposed Purge Port(s) to reduce uncertainty and to manage 
risk by purging all quotes in a number of securities. This would allow 
the firm to seamlessly avoid unintended executions, while continuing to 
evaluate the direction of the market. While Purge Ports will be 
available to all Users, the Exchange anticipates they will be used 
primarily by Market Makers or firms that conduct similar business 
activity and are therefore exposed to a large amount of risk across a 
number securities.
---------------------------------------------------------------------------

    \7\ A ``Market Maker'' is a Member that acts as a Market Maker 
pursuant to Chapter XI. See Rule 1.5(l).
---------------------------------------------------------------------------

    Users may currently cancel orders through their existing logical 
ports. In addition, the Exchange offers risk functionality pursuant to 
Interpretation and Policies .01 to Rule 11.13 that permits Users to 
block new orders from being submitted, to cancel all open orders, or to 
both block new orders and cancel all open orders. In addition to the 
current risk functionality, which is being retained, the Exchange now 
proposes to expand the ability of Users to cancel orders through the 
proposed Purge Ports, which would enable them to cancel all open 
orders, or a subset thereof, across multiple logical ports through a 
single cancel message. The mass cancel request may be limited to a 
subset of orders by identifying the range of orders to be purged. Users 
may also request via a Purge Port that the Exchange block all or a 
subset of new orders submitted, and the block will remain in effect 
until the User requests that the Exchange remove the block.
    The Exchange proposes to amend the Interpretations and Policies to 
Rule 11.13, Order Execution and Routing, to reflect the proposed Purge 
Port functionality. As described above, Interpretation and Policies .01 
to Rule 11.13 currently states that the Exchange offers risk 
functionality that permits Users to block new orders submitted, to 
cancel all open orders, or to both block new orders and cancel all open 
orders. The Exchange proposes to move this language to Interpretations 
and Policies .02(a) to Rule 11.13,\8\ and add additional language to 
describe the flexibility provided using the proposed Purge Ports. 
Specifically, as proposed, Interpretations and Policies .02(b) to Rule 
11.13 will state that a ``Purge Port'' is a dedicated port that permits 
a User to simultaneously cancel all or a subset of its orders in one or 
more symbols across multiple logical ports by requesting the Exchange 
to effect such cancellation. The proposed rule will also provide that a 
User initiating such a request may also request that the Exchange block 
all or a subset of its new inbound orders in one or more symbols across 
multiple logical ports. The block will remain in effect until the User 
requests the Exchange remove the block.
---------------------------------------------------------------------------

    \8\ The Exchange also proposes to make a non-substantive change 
that deletes the introductory clause of this sentence.
---------------------------------------------------------------------------

    In addition, the Exchange proposes to modify the Logical Port Fees 
section of the BYX fee schedule to adopt a fee for Purge Ports of $650 
per port/per month, which would compensate the Exchange for the 
investment that it has made in making Purge Ports available to firms 
that believe they would benefit from a dedicated purge mechanism. Only 
firms that request Purge Ports would be subject to the proposed fees, 
and other firms can continue to operate in exactly the same manner as 
they do today without dedicated Purge Ports.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder that are applicable to a national securities exchange, and, 
in particular, with the requirements of Section 6(b) of the Act.\9\ 
Specifically, the proposed rule change is consistent with Sections 
6(b)(4) and 6(b)(5) of the Act,\10\ because it is designed to provide 
for the equitable allocation of reasonable dues, fees and other charges 
among its members and other persons using its facilities, and 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.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change would promote 
just and equitable principles of trade and remove impediments to and 
perfect the mechanism of a free and open market because offering Users, 
including Market Makers, designated Purge Ports would enhance their 
ability to manage quotes, quote traffic, and their quoting 
obligations,\11\ which would, in turn, improve their risk controls to 
the benefit of all market participants. The Exchange believes that the 
Purge Ports would foster cooperation and coordination with persons 
engaged in facilitating transactions in securities because designating 
Purge Ports for purge messages (including blocking subsequent order 
entry) may encourage better use of such dedicated ports. This may, 
concurrent with the logical ports that carry quote and other 
information necessary for market making activities, enable more 
efficient, as well as fair and reasonable, use of Market Makers'

[[Page 52597]]

resources. Although dedicated Purge Ports are a new innovation for 
equities exchanges, similar connectivity and functionality is offered 
by options exchanges, including the Exchange's own affiliated options 
exchanges.\12\ The Exchange believes that proper risk management, 
including the ability to efficiently cancel multiple orders at once, is 
similarly important to firms that trade in the equities market, 
including Market Makers that have heightened quoting obligations that 
are not applicable to other market participants.
---------------------------------------------------------------------------

    \11\ See Rule 11.8(d).
    \12\ See supra note 7. See also e.g. Nasdaq ISE, LLC, Schedule 
of Fees, V. Connectivity Fees, C. Ports and Other Services, SQF 
Purge Port Fee.
---------------------------------------------------------------------------

    The proposed rule change will not relieve Market Makers of their 
continuous quoting obligations under Rule 11.8(d) or firm quote 
obligations under Regulation NMS Rule 602.\13\ Specifically, any 
interest that is executable against a User's or Market Maker's quotes 
and orders that is received by the Exchange prior to the time of the 
removal of quotes request will automatically execute at that price, up 
to the quote's size. Market Makers that purge their quotes will not be 
relieved of the obligation to provide continuous two-sided quotes on a 
daily basis, nor will it prohibit the Exchange from taking disciplinary 
action against a Market Maker for failing to meet their continuous 
quoting obligation each trading day.
---------------------------------------------------------------------------

    \13\ 17 CFR 242.602.
---------------------------------------------------------------------------

    Dedicated Purge Ports, which were originally introduced for options 
trading, are a new feature in the equities market, and the Exchange is 
the first equities exchange to offer this functionality to Users. The 
Exchange has incurred additional infrastructure and technology costs in 
offering the proposed Purge Ports, including costs associated with the 
purchase of new hardware to support these dedicated ports, and software 
development, testing, and certification work associated with the risk 
management functionality made available through such ports. The 
Exchange also has continuing costs associated with maintenance and 
monitoring of the proposed ports. The Exchange believes that its 
proposed fees should facilitate the ability of the Exchange to recoup 
some costs associated with Purge Ports as well as provide, maintain, 
and improve Purge Ports.\14\ The proposed fees therefore directly 
support the introduction of new and innovative risk management features 
to the market.
---------------------------------------------------------------------------

    \14\ Purge Ports will be fee liable on a monthly basis (and not 
only when such ports are active), which will help the Exchange to 
recoup the cost of these ports.
---------------------------------------------------------------------------

    The Exchange believes the proposed fee for Purge Ports is equitable 
and reasonable. The Exchange currently charges $550 per port/per month 
for logical ports.\15\ The Exchange believes it is equitable and 
reasonable to charge $650 per month for the proposed Purge Ports as 
such ports were specially developed to allow for the sending of a 
single message to cancel multiple orders, thereby assisting firms in 
effectively managing risk. In addition, Purge Port requests may cancel 
orders submitted over numerous ports and contain added functionality to 
purge only a subset of these orders. Effective risk management is 
important both for individual market participants that choose to 
utilize risk features provided by the Exchange, as well as for the 
market in general. As a result, the Exchange believes that it is 
appropriate to charge fees that compensate for the development of such 
functionality as doing so aids in the maintenance of a fair and orderly 
market.
---------------------------------------------------------------------------

    \15\ The fee for Multicast PITCH Spin Server ports provides 
access to a set of primary ports (A or C feed) and the fee for 
Multicast PITCH GRP Ports provides access to a primary port (A or C 
feed).
---------------------------------------------------------------------------

    The Exchange also believes that offering such functionality at the 
Exchange level promotes robust risk management across the industry, and 
thereby facilitates investor protection. Some market participants, and, 
in particular, the larger firms could build similar risk functionality 
on their trading systems that permit the flexible cancellation of 
orders entered on the Exchange. Offering Exchange level protections 
ensures that such functionality is widely available to all firms, 
including smaller firms that may otherwise not be willing to incur the 
costs and development work necessary to support their own customized 
mass cancel functionality.
    Although the Exchange is the first exchange to develop and offer 
dedicated Purge Ports for equities trading, the proposed rate is lower 
than that charged by options exchanges for similar functionality, 
including the fees charged by the Exchange's affiliated options 
exchanges for Options Purge Ports, which are billed at a rate of $750 
per month, and fees charged by unaffiliated options exchanges, such as 
ISE, which charges a fee of $1,100 per month for SQF Purge Ports. The 
Exchange operates in a highly competitive market in which exchanges 
offer connectivity and related services as a means to facilitate the 
trading activities of Members and other participants. As the proposed 
Purge Ports provide voluntary risk management functionality, excessive 
fees would simply serve to reduce demand for this optional product.
    The Exchange also believes that the proposed amendments to its fee 
schedule are not unfairly discriminatory because they will apply 
uniformly to all Members that choose to use dedicated Purge Ports. The 
proposed Purge Ports are completely voluntary and, as they relate 
solely to optional risk management functionality, no Member is required 
or under any regulatory obligation to utilize them. The Exchange 
believes that adopting separate fees for these ports ensures that the 
associated costs are borne exclusively by Members that determine to use 
them based on their business needs, including Market Makers or 
similarly situated market participants that enter orders simultaneously 
in a number of securities. All Members that voluntarily select this 
service option will be charged the same amount for the same services. 
All Members have the option to select any connectivity option, and 
there is no differentiation among Members with regard to the fees 
charged for the services offered by the Exchange.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change would 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. To the contrary, the 
Exchange believes the proposed rule change will enhance competition 
because it will enable the Exchange to innovate and offer similar 
equities Purge Port functionality to that offered on options markets 
today, at a competitive price.\16\ The proposed Purge Ports are 
completely voluntary and will be made available to all Members on an 
equal basis. While the Exchange believes that the proposed Purge Ports 
provide a valuable service, Members can choose to purchase, or not 
purchase, these ports based on their business needs. No Member is 
required or under any regulatory obligation to utilize Purge Ports. 
Furthermore, fees for Purge Ports, and connectivity in general, are 
constrained by the robust competition for order flow among exchanges 
and non-exchange markets. Members may opt to disfavor the Exchange's 
pricing if they believe that alternatives offer them better value. As a 
result, excessive fees for connectivity, including Purge Port fees, 
would serve to impair the Exchange's ability to compete for order flow 
rather than

[[Page 52598]]

burdening competition. Accordingly, the Exchange believes that the 
proposed rule change is designed to offer appropriate risk management 
functionality to firms that trade on the Exchange without imposing an 
unnecessary or inappropriate burden on competition.
---------------------------------------------------------------------------

    \16\ See supra note 13.
---------------------------------------------------------------------------

(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received From Members, Participants or Others

    No comments were solicited or received on the proposed rule change.

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)(iii) of the Act \17\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\18\
---------------------------------------------------------------------------

    \17\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \18\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
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 under Rule 19b-4(f)(6) \19\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, Rule 19b-4(f)(6)(iii) \20\ 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 effective and operative immediately upon filing. 
The Exchange noted that its affiliated options exchanges provide Purge 
Ports and that they have been successful for options. The Exchange 
noted that there is a demand for Purge Ports for equities and that it 
believes that the Purge Ports will provide an effective risk management 
tool for Users trading equities. The Commission believes that Purge 
Ports may be a helpful tool for managing the risk associated with 
trading equities, and notes that this can be important both for 
individual market participants and the market in general. Accordingly, 
the Commission believes that permitting this feature to be operative 
upon filing is consistent with the protection of investors and the 
public interest. Therefore, the Commission hereby waives the 30-day 
operative delay and designates the proposed rule change as operative 
upon filing.\21\
---------------------------------------------------------------------------

    \19\ 17 CFR 240.19b-4(f)(6).
    \20\ 17 CFR 240.19b-4(f)(6)(iii).
    \21\ 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 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 proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-CboeBYX-2018-022 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-CboeBYX-2018-022. 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 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-CboeBYX-2018-022 and should be submitted 
on or before November 7, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\22\
---------------------------------------------------------------------------

    \22\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-22534 Filed 10-16-18; 8:45 am]
 BILLING CODE 8011-01-P



                                                                             Federal Register / Vol. 83, No. 201 / Wednesday, October 17, 2018 / Notices                                                   52595

                                               C. Self-Regulatory Organization’s                          those that may be withheld from the                   change pursuant to Section 19(b)(3)(A)
                                               Statement on Comments on the                               public in accordance with the                         of the Act 3 and Rule 19b–4(f)(6)(iii)
                                               Proposed Rule Change Received From                         provisions of 5 U.S.C. 552, will be                   thereunder,4 which renders it effective
                                               Members, Participants, or Others                           available for website viewing and                     upon filing with the Commission. The
                                                 No written comments were either                          printing in the Commission’s Public                   Commission is publishing this notice to
                                               solicited or received.                                     Reference Room, 100 F Street NE,                      solicit comments on the proposed rule
                                                                                                          Washington, DC 20549, on official                     change from interested persons.
                                               III. Date of Effectiveness of the                          business days between the hours of
                                               Proposed Rule Change and Timing for                        10:00 a.m. and 3:00 p.m. Copies of the                I. Self-Regulatory Organization’s
                                               Commission Action                                          filing also will be available for                     Statement of the Terms of Substance of
                                                                                                          inspection and copying at the principal               the Proposed Rule Change
                                                  The foregoing rule change has become
                                               effective pursuant to Section                              office of the Exchange. All comments                     The Exchange is proposing to: (1)
                                               19(b)(3)(A)(ii) of the Act.14 At any time                  received will be posted without change.               Establish Purge Ports for equities trading
                                               within 60 days of the filing of the                        Persons submitting comments are                       and amend the Interpretations and
                                               proposed rule change, the Commission                       cautioned that we do not redact or edit               Policies to Rule 11.13, Order Execution
                                               summarily may temporarily suspend                          personal identifying information from                 and Routing, to reflect the proposed
                                               such rule change if it appears to the                      comment submissions. You should                       Purge Ports, and (2) modify the BYX fee
                                               Commission that such action is: (i)                        submit only information that you wish                 schedule to identify and to set fees for
                                               Necessary or appropriate in the public                     to make available publicly. All                       Purge Ports.
                                               interest; (ii) for the protection of                       submissions should refer to File                         The text of the proposed rule change
                                               investors; or (iii) otherwise in                           Number SR–ISE–2018–83 and should be                   is available at the Exchange’s website at
                                               furtherance of the purposes of the Act.                    submitted on or before November 7,                    www.markets.cboe.com, at the principal
                                               If the Commission takes such action, the                   2018.                                                 office of the Exchange, and at the
                                               Commission shall institute proceedings                       For the Commission, by the Division of              Commission’s Public Reference Room.
                                               to determine whether the proposed rule                     Trading and Markets, pursuant to delegated            II. Self-Regulatory Organization’s
                                               should be approved or disapproved.                         authority.15
                                                                                                                                                                Statement of the Purpose of, and
                                                                                                          Eduardo A. Aleman,                                    Statutory Basis for, the Proposed Rule
                                               IV. Solicitation of Comments
                                                                                                          Assistant Secretary.                                  Change
                                                 Interested persons are invited to                        [FR Doc. 2018–22538 Filed 10–16–18; 8:45 am]
                                               submit written data, views, and                                                                                     In its filing with the Commission, the
                                                                                                          BILLING CODE 8011–01–P
                                               arguments concerning the foregoing,                                                                              Exchange included statements
                                               including whether the proposed rule                                                                              concerning the purpose of and basis for
                                               change is consistent with the Act.                         SECURITIES AND EXCHANGE                               the proposed rule change and discussed
                                               Comments may be submitted by any of                        COMMISSION                                            any comments it received on the
                                               the following methods:                                                                                           proposed rule change. The text of these
                                                                                                          [Release No. 34–84404; File No. SR–                   statements may be examined at the
                                               Electronic Comments                                        CboeBYX–2018–022]                                     places specified in Item IV below. The
                                                 • Use the Commission’s internet                                                                                Exchange has prepared summaries, set
                                               comment form (http://www.sec.gov/                          Self-Regulatory Organizations; Cboe
                                                                                                                                                                forth in Sections A, B, and C below, of
                                               rules/sro.shtml); or                                       BYX Exchange, Inc.; Notice of Filing
                                                                                                                                                                the most significant parts of such
                                                 • Send an email to rule-comments@                        and Immediate Effectiveness of a
                                                                                                          Proposed Rule Change To Introduce                     statements.
                                               sec.gov. Please include File Number SR–
                                               ISE–2018–83 on the subject line.                           Equities Purge Ports To (1) Establish                 (A) Self-Regulatory Organization’s
                                                                                                          Purge Ports for Equities Trading and                  Statement of the Purpose of, and
                                               Paper Comments                                             Amend the Interpretations and Policies                Statutory Basis for, the Proposed Rule
                                                 • Send paper comments in triplicate                      to Rule 11.10, Order Execution, To                    Change
                                               to Secretary, Securities and Exchange                      Reflect the Proposed Purge Ports, and
                                                                                                          (2) Modify the Fee Schedule Applicable                1. Purpose
                                               Commission, 100 F Street NE,
                                               Washington, DC 20549–1090.                                 to the Exchange’s Equities Platform                      The purpose of the proposed rule
                                               All submissions should refer to File                       (‘‘BYX Equities’’) To Identify and To Set             change is to offer Users 5 an additional
                                               Number SR–ISE–2018–83. This file                           Fees for Purge Ports                                  tool to manage risk and exercise
                                               number should be included on the                                                                                 additional control over their quotations
                                                                                                          October 11, 2018.                                     in equity securities (i.e., ‘‘Purge Ports’’).
                                               subject line if email is used. To help the                    Pursuant to Section 19(b)(1) of the
                                               Commission process and review your                                                                               Specifically, the Exchange proposes to:
                                                                                                          Securities Exchange Act of 1934                       (1) Establish Purge Ports for equities
                                               comments more efficiently, please use                      (‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                               only one method. The Commission will                                                                             trading and amend the Interpretations
                                                                                                          notice is hereby given that on                        and Policies to Rule 11.13, Order
                                               post all comments on the Commission’s                      September 28, 2018, Cboe BYX
                                               internet website (http://www.sec.gov/                                                                            Execution and Routing, to reflect the
                                                                                                          Exchange, Inc. (‘‘Exchange’’ or ‘‘BYX’’)              proposed Purge Ports, and (2) modify
                                               rules/sro.shtml). Copies of the                            filed with the Securities and Exchange
                                               submission, all subsequent                                                                                       the BYX fee schedule to identify and to
                                                                                                          Commission (‘‘Commission’’) the                       set fees for Purge Ports.
                                               amendments, all written statements                         proposed rule change as described in
                                               with respect to the proposed rule                                                                                   Purge Ports are already available on
                                                                                                          Items I and II below, which Items have
daltland on DSKBBV9HB2PROD with NOTICES




                                               change that are filed with the                                                                                   the Exchange’s affiliated options
                                                                                                          been prepared by the Exchange. The                    markets—i.e., the options trading
                                               Commission, and all written                                Exchange has designated this proposal
                                               communications relating to the                             as a ‘‘non-controversial’’ proposed rule                3 15 U.S.C. 78s(b)(3)(A).
                                               proposed rule change between the                                                                                   4 17 CFR 240.19b–4(f)(6)(iii).
                                               Commission and any person, other than                        15 17 CFR 200.30–3(a)(12).                            5 A ‘‘User’’ is any Member or Sponsored
                                                                                                            1 15 U.S.C. 78s(b)(1).                              Participant who is authorized to obtain access to the
                                                 14 15   U.S.C. 78s(b)(3)(A)(ii).                           2 17 CFR 240.19b–4.                                 System pursuant to Rule 11.3. See Rule 1.5(cc).



                                          VerDate Sep<11>2014      19:46 Oct 16, 2018   Jkt 247001   PO 00000   Frm 00220   Fmt 4703   Sfmt 4703   E:\FR\FM\17OCN1.SGM   17OCN1


                                               52596                     Federal Register / Vol. 83, No. 201 / Wednesday, October 17, 2018 / Notices

                                               platform of Cboe BZX Exchange, Inc.                     Ports will be available to all Users, the                In addition, the Exchange proposes to
                                               (‘‘BZX Options’’), the options trading                  Exchange anticipates they will be used                modify the Logical Port Fees section of
                                               platform of Cboe EDGX Exchange, Inc.                    primarily by Market Makers or firms                   the BYX fee schedule to adopt a fee for
                                               (‘‘EDGX Options’’), and Cboe C2                         that conduct similar business activity                Purge Ports of $650 per port/per month,
                                               Exchange, Inc. (‘‘C2’’).6 Based on the                  and are therefore exposed to a large                  which would compensate the Exchange
                                               successful experience with Purge Ports                  amount of risk across a number                        for the investment that it has made in
                                               for options, and in response to demand                  securities.                                           making Purge Ports available to firms
                                               for similar functionality for equities                     Users may currently cancel orders                  that believe they would benefit from a
                                               trading, the Exchange has determined to                 through their existing logical ports. In              dedicated purge mechanism. Only firms
                                               offer Purge Ports on BYX. The Exchange                  addition, the Exchange offers risk                    that request Purge Ports would be
                                               believes that the proposed Purge Port                   functionality pursuant to Interpretation              subject to the proposed fees, and other
                                               functionality will provide an effective                 and Policies .01 to Rule 11.13 that                   firms can continue to operate in exactly
                                               tool for Users to manage their risk                     permits Users to block new orders from                the same manner as they do today
                                               associated with equities trading.                       being submitted, to cancel all open                   without dedicated Purge Ports.
                                               Background                                              orders, or to both block new orders and               2. Statutory Basis
                                                                                                       cancel all open orders. In addition to the               The Exchange believes that the
                                                 A logical port represents a port                      current risk functionality, which is
                                               established by the Exchange within the                                                                        proposed rule change is consistent with
                                                                                                       being retained, the Exchange now                      the requirements of the Act and the
                                               Exchange’s system for trading and                       proposes to expand the ability of Users
                                               billing purposes. Each logical port                                                                           rules and regulations thereunder that
                                                                                                       to cancel orders through the proposed                 are applicable to a national securities
                                               established is specific to a Member or                  Purge Ports, which would enable them
                                               non-Member and grants that Member or                                                                          exchange, and, in particular, with the
                                                                                                       to cancel all open orders, or a subset                requirements of Section 6(b) of the Act.9
                                               non-Member the ability to accomplish a                  thereof, across multiple logical ports
                                               specific function, such as order entry,                                                                       Specifically, the proposed rule change is
                                                                                                       through a single cancel message. The                  consistent with Sections 6(b)(4) and
                                               order cancellation, or data receipt. In                 mass cancel request may be limited to
                                               addition, logical ports enable Users to                                                                       6(b)(5) of the Act,10 because it is
                                                                                                       a subset of orders by identifying the                 designed to provide for the equitable
                                               access information such as execution                    range of orders to be purged. Users may
                                               reports, execution report messages,                                                                           allocation of reasonable dues, fees and
                                                                                                       also request via a Purge Port that the                other charges among its members and
                                               auction notifications, and                              Exchange block all or a subset of new
                                               administrative data through a single                                                                          other persons using its facilities, and is
                                                                                                       orders submitted, and the block will                  designed to promote just and equitable
                                               feed.                                                   remain in effect until the User requests              principles of trade, to foster cooperation
                                               Purge Ports                                             that the Exchange remove the block.                   and coordination with persons engaged
                                                  The Exchange now proposes to amend                      The Exchange proposes to amend the                 in facilitating transactions in securities,
                                               the Interpretations and Policies to Rule                Interpretations and Policies to Rule                  to remove impediments to and perfect
                                               11.13, Order Execution and Routing, to                  11.13, Order Execution and Routing, to                the mechanism of a free and open
                                               identify Purge Ports, a new type of                     reflect the proposed Purge Port                       market and a national market system
                                               logical port that would enable Users to                 functionality. As described above,                    and, in general, to protect investors and
                                               cancel all open orders, or a subset                     Interpretation and Policies .01 to Rule               the public interest.
                                               thereof, across multiple logical ports                  11.13 currently states that the Exchange                 The Exchange believes that the
                                               through a single cancel message. The                    offers risk functionality that permits                proposed rule change would promote
                                               Exchange also proposes to amend the                     Users to block new orders submitted, to               just and equitable principles of trade
                                               BYX fee schedule to adopt fees for Purge                cancel all open orders, or to both block              and remove impediments to and perfect
                                               Ports.                                                  new orders and cancel all open orders.                the mechanism of a free and open
                                                  The proposed ports are designed to                   The Exchange proposes to move this                    market because offering Users,
                                               assist Users, including Market Makers,7                 language to Interpretations and Policies              including Market Makers, designated
                                               in the management of, and risk control                  .02(a) to Rule 11.13,8 and add additional             Purge Ports would enhance their ability
                                               over, their quotes, particularly if the                 language to describe the flexibility                  to manage quotes, quote traffic, and
                                               firm is quoting a large number of                       provided using the proposed Purge                     their quoting obligations,11 which
                                               securities. For example, if a Market                    Ports. Specifically, as proposed,                     would, in turn, improve their risk
                                               Maker detects market indications that                   Interpretations and Policies .02(b) to                controls to the benefit of all market
                                               may influence the direction or bias of                  Rule 11.13 will state that a ‘‘Purge Port’’           participants. The Exchange believes that
                                               his or her quotes, the Market Maker may                 is a dedicated port that permits a User               the Purge Ports would foster
                                               use the proposed Purge Port(s) to reduce                to simultaneously cancel all or a subset              cooperation and coordination with
                                               uncertainty and to manage risk by                       of its orders in one or more symbols                  persons engaged in facilitating
                                               purging all quotes in a number of                       across multiple logical ports by                      transactions in securities because
                                               securities. This would allow the firm to                requesting the Exchange to effect such                designating Purge Ports for purge
                                               seamlessly avoid unintended                             cancellation. The proposed rule will                  messages (including blocking
                                               executions, while continuing to evaluate                also provide that a User initiating such              subsequent order entry) may encourage
                                               the direction of the market. While Purge                a request may also request that the                   better use of such dedicated ports. This
                                                                                                       Exchange block all or a subset of its new             may, concurrent with the logical ports
                                                                                                       inbound orders in one or more symbols                 that carry quote and other information
daltland on DSKBBV9HB2PROD with NOTICES




                                                 6 See Securities Exchange Act Release Nos. 79956

                                               (February 3, 2017), 82 FR 10102 (February 9, 2017)      across multiple logical ports. The block              necessary for market making activities,
                                               (SR–BatsBZX–2017–05); 79957 (February 3, 2017),         will remain in effect until the User                  enable more efficient, as well as fair and
                                               82 FR 10070 (February 9, 2017) (SR–BatsEDGX–
                                               2017–07); 83201 (May 9, 2018), 83 FR 22546 (May
                                                                                                       requests the Exchange remove the block.               reasonable, use of Market Makers’
                                               15, 2018) (SR–C2–2018–006).
                                                 7 A ‘‘Market Maker’’ is a Member that acts as a         8 The Exchange also proposes to make a non-           9 15 U.S.C. 78f(b).
                                                                                                                                                               10 15 U.S.C. 78f(b)(4) and (5).
                                               Market Maker pursuant to Chapter XI. See Rule           substantive change that deletes the introductory
                                               1.5(l).                                                 clause of this sentence.                                11 See Rule 11.8(d).




                                          VerDate Sep<11>2014   19:46 Oct 16, 2018   Jkt 247001   PO 00000   Frm 00221   Fmt 4703   Sfmt 4703   E:\FR\FM\17OCN1.SGM    17OCN1


                                                                         Federal Register / Vol. 83, No. 201 / Wednesday, October 17, 2018 / Notices                                           52597

                                               resources. Although dedicated Purge                     introduction of new and innovative risk               Ports provide voluntary risk
                                               Ports are a new innovation for equities                 management features to the market.                    management functionality, excessive
                                               exchanges, similar connectivity and                        The Exchange believes the proposed                 fees would simply serve to reduce
                                               functionality is offered by options                     fee for Purge Ports is equitable and                  demand for this optional product.
                                               exchanges, including the Exchange’s                     reasonable. The Exchange currently                       The Exchange also believes that the
                                               own affiliated options exchanges.12 The                 charges $550 per port/per month for                   proposed amendments to its fee
                                               Exchange believes that proper risk                      logical ports.15 The Exchange believes it             schedule are not unfairly discriminatory
                                               management, including the ability to                    is equitable and reasonable to charge                 because they will apply uniformly to all
                                               efficiently cancel multiple orders at                   $650 per month for the proposed Purge                 Members that choose to use dedicated
                                               once, is similarly important to firms that              Ports as such ports were specially                    Purge Ports. The proposed Purge Ports
                                               trade in the equities market, including                 developed to allow for the sending of a               are completely voluntary and, as they
                                               Market Makers that have heightened                      single message to cancel multiple                     relate solely to optional risk
                                               quoting obligations that are not                        orders, thereby assisting firms in                    management functionality, no Member
                                               applicable to other market participants.                effectively managing risk. In addition,               is required or under any regulatory
                                                                                                       Purge Port requests may cancel orders                 obligation to utilize them. The Exchange
                                                  The proposed rule change will not                    submitted over numerous ports and                     believes that adopting separate fees for
                                               relieve Market Makers of their                          contain added functionality to purge                  these ports ensures that the associated
                                               continuous quoting obligations under                    only a subset of these orders. Effective              costs are borne exclusively by Members
                                               Rule 11.8(d) or firm quote obligations                  risk management is important both for                 that determine to use them based on
                                               under Regulation NMS Rule 602.13                        individual market participants that                   their business needs, including Market
                                               Specifically, any interest that is                      choose to utilize risk features provided              Makers or similarly situated market
                                               executable against a User’s or Market                   by the Exchange, as well as for the                   participants that enter orders
                                               Maker’s quotes and orders that is                       market in general. As a result, the                   simultaneously in a number of
                                               received by the Exchange prior to the                   Exchange believes that it is appropriate              securities. All Members that voluntarily
                                               time of the removal of quotes request                   to charge fees that compensate for the                select this service option will be
                                               will automatically execute at that price,               development of such functionality as                  charged the same amount for the same
                                               up to the quote’s size. Market Makers                   doing so aids in the maintenance of a                 services. All Members have the option
                                               that purge their quotes will not be                     fair and orderly market.                              to select any connectivity option, and
                                               relieved of the obligation to provide                      The Exchange also believes that                    there is no differentiation among
                                               continuous two-sided quotes on a daily                  offering such functionality at the                    Members with regard to the fees charged
                                               basis, nor will it prohibit the Exchange                Exchange level promotes robust risk                   for the services offered by the Exchange.
                                               from taking disciplinary action against a               management across the industry, and                   (B) Self-Regulatory Organization’s
                                               Market Maker for failing to meet their                  thereby facilitates investor protection.              Statement on Burden on Competition
                                               continuous quoting obligation each                      Some market participants, and, in
                                               trading day.                                                                                                     The Exchange does not believe that
                                                                                                       particular, the larger firms could build
                                                                                                                                                             the proposed rule change would impose
                                                  Dedicated Purge Ports, which were                    similar risk functionality on their
                                                                                                                                                             any burden on competition that is not
                                               originally introduced for options                       trading systems that permit the flexible
                                                                                                                                                             necessary or appropriate in furtherance
                                               trading, are a new feature in the equities              cancellation of orders entered on the
                                                                                                                                                             of the purposes of the Act. To the
                                               market, and the Exchange is the first                   Exchange. Offering Exchange level
                                                                                                                                                             contrary, the Exchange believes the
                                               equities exchange to offer this                         protections ensures that such
                                                                                                                                                             proposed rule change will enhance
                                               functionality to Users. The Exchange                    functionality is widely available to all              competition because it will enable the
                                               has incurred additional infrastructure                  firms, including smaller firms that may               Exchange to innovate and offer similar
                                               and technology costs in offering the                    otherwise not be willing to incur the                 equities Purge Port functionality to that
                                               proposed Purge Ports, including costs                   costs and development work necessary                  offered on options markets today, at a
                                               associated with the purchase of new                     to support their own customized mass                  competitive price.16 The proposed
                                               hardware to support these dedicated                     cancel functionality.                                 Purge Ports are completely voluntary
                                               ports, and software development,                           Although the Exchange is the first                 and will be made available to all
                                               testing, and certification work                         exchange to develop and offer dedicated               Members on an equal basis. While the
                                               associated with the risk management                     Purge Ports for equities trading, the                 Exchange believes that the proposed
                                               functionality made available through                    proposed rate is lower than that charged              Purge Ports provide a valuable service,
                                               such ports. The Exchange also has                       by options exchanges for similar                      Members can choose to purchase, or not
                                               continuing costs associated with                        functionality, including the fees charged             purchase, these ports based on their
                                               maintenance and monitoring of the                       by the Exchange’s affiliated options                  business needs. No Member is required
                                               proposed ports. The Exchange believes                   exchanges for Options Purge Ports,                    or under any regulatory obligation to
                                               that its proposed fees should facilitate                which are billed at a rate of $750 per                utilize Purge Ports. Furthermore, fees for
                                               the ability of the Exchange to recoup                   month, and fees charged by unaffiliated               Purge Ports, and connectivity in general,
                                               some costs associated with Purge Ports                  options exchanges, such as ISE, which                 are constrained by the robust
                                               as well as provide, maintain, and                       charges a fee of $1,100 per month for                 competition for order flow among
                                               improve Purge Ports.14 The proposed                     SQF Purge Ports. The Exchange operates                exchanges and non-exchange markets.
                                                                                                       in a highly competitive market in which               Members may opt to disfavor the
                                               fees therefore directly support the
                                                                                                       exchanges offer connectivity and related              Exchange’s pricing if they believe that
daltland on DSKBBV9HB2PROD with NOTICES




                                                 12 See supra note 7. See also e.g. Nasdaq ISE, LLC,
                                                                                                       services as a means to facilitate the                 alternatives offer them better value. As
                                               Schedule of Fees, V. Connectivity Fees, C. Ports and    trading activities of Members and other               a result, excessive fees for connectivity,
                                               Other Services, SQF Purge Port Fee.                     participants. As the proposed Purge                   including Purge Port fees, would serve
                                                 13 17 CFR 242.602.
                                                 14 Purge Ports will be fee liable on a monthly          15 The fee for Multicast PITCH Spin Server ports
                                                                                                                                                             to impair the Exchange’s ability to
                                               basis (and not only when such ports are active),        provides access to a set of primary ports (A or C     compete for order flow rather than
                                               which will help the Exchange to recoup the cost of      feed) and the fee for Multicast PITCH GRP Ports
                                               these ports.                                            provides access to a primary port (A or C feed).        16 See   supra note 13.



                                          VerDate Sep<11>2014   19:46 Oct 16, 2018   Jkt 247001   PO 00000   Frm 00222   Fmt 4703   Sfmt 4703   E:\FR\FM\17OCN1.SGM     17OCN1


                                               52598                       Federal Register / Vol. 83, No. 201 / Wednesday, October 17, 2018 / Notices

                                               burdening competition. Accordingly,                       Accordingly, the Commission believes                  public in accordance with the
                                               the Exchange believes that the proposed                   that permitting this feature to be                    provisions of 5 U.S.C. 552, will be
                                               rule change is designed to offer                          operative upon filing is consistent with              available for website viewing and
                                               appropriate risk management                               the protection of investors and the                   printing in the Commission’s Public
                                               functionality to firms that trade on the                  public interest. Therefore, the                       Reference Room, 100 F Street NE,
                                               Exchange without imposing an                              Commission hereby waives the 30-day                   Washington, DC 20549, on official
                                               unnecessary or inappropriate burden on                    operative delay and designates the                    business days between the hours of
                                               competition.                                              proposed rule change as operative upon                10:00 a.m. and 3:00 p.m. Copies of the
                                                                                                         filing.21                                             filing also will be available for
                                               (C) Self-Regulatory Organization’s                           At any time within 60 days of the                  inspection and copying at the principal
                                               Statement on Comments on the                              filing of the proposed rule change, the               office of the Exchange. All comments
                                               Proposed Rule Change Received From                        Commission summarily may                              received will be posted without change.
                                               Members, Participants or Others                           temporarily suspend such rule change if               Persons submitting comments are
                                                 No comments were solicited or                           it appears to the Commission that such                cautioned that we do not redact or edit
                                               received on the proposed rule change.                     action is: (i) Necessary or appropriate in            personal identifying information from
                                               III. Date of Effectiveness of the                         the public interest; (ii) for the protection          comment submissions. You should
                                               Proposed Rule Change and Timing for                       of investors; or (iii) otherwise in                   submit only information that you wish
                                               Commission Action                                         furtherance of the purposes of the Act.               to make available publicly. All
                                                                                                         If the Commission takes such action, the              submissions should refer to File
                                                  Because the foregoing proposed rule                    Commission shall institute proceedings                Number SR–CboeBYX–2018–022 and
                                               change does not: (i) Significantly affect                 to determine whether the proposed rule                should be submitted on or before
                                               the protection of investors or the public                 should be approved or disapproved.                    November 7, 2018.
                                               interest; (ii) impose any significant
                                               burden on competition; and (iii) become                   IV. Solicitation of Comments                            For the Commission, by the Division of
                                                                                                                                                               Trading and Markets, pursuant to delegated
                                               operative for 30 days from the date on                      Interested persons are invited to                   authority.22
                                               which it was filed, or such shorter time                  submit written data, views, and                       Eduardo A. Aleman,
                                               as the Commission may designate, it has                   arguments concerning the foregoing,
                                               become effective pursuant to Section                                                                            Assistant Secretary.
                                                                                                         including whether the proposed rule
                                               19(b)(3)(A)(iii) of the Act 17 and                                                                              [FR Doc. 2018–22534 Filed 10–16–18; 8:45 am]
                                                                                                         change is consistent with the Act.
                                               subparagraph (f)(6) of Rule 19b–4                         Comments may be submitted by any of                   BILLING CODE 8011–01–P
                                               thereunder.18                                             the following methods:
                                                  A proposed rule change filed under
                                               Rule 19b–4(f)(6) 19 normally does not                     Electronic Comments                                   SECURITIES AND EXCHANGE
                                               become operative prior to 30 days after                     • Use the Commission’s internet                     COMMISSION
                                               the date of the filing. However, Rule                     comment form (http://www.sec.gov/                     [Release No. 34–84405; File No. SR–
                                               19b–4(f)(6)(iii) 20 permits the                           rules/sro.shtml); or                                  CboeEDGA–2018–016]
                                               Commission to designate a shorter time                      • Send an email to rule-comments@
                                               if such action is consistent with the                     sec.gov. Please include File Number SR-               Self-Regulatory Organizations; Cboe
                                               protection of investors and the public                    CboeBYX–2018–022 on the subject line.                 EDGA Exchange, Inc.; Notice of Filing
                                               interest. The Exchange has asked the                                                                            and Immediate Effectiveness of a
                                                                                                         Paper Comments                                        Proposed Rule Change To Introduce
                                               Commission to waive the 30-day
                                               operative delay so that the proposed                         • Send paper comments in triplicate                Equities Purge Ports to (1) Establish
                                               rule change may become effective and                      to Secretary, Securities and Exchange                 Purge Ports for Equities Trading and
                                               operative immediately upon filing. The                    Commission, 100 F Street NE,                          Amend the Interpretations and Policies
                                               Exchange noted that its affiliated                        Washington, DC 20549–1090.                            to Rule 11.10, Order Execution, To
                                               options exchanges provide Purge Ports                     All submissions should refer to File                  Reflect the Proposed Purge Ports, and
                                               and that they have been successful for                    Number SR-CboeBYX–2018–022. This                      (2) Modify the Fee Schedule Applicable
                                               options. The Exchange noted that there                    file number should be included on the                 to the Exchange’s Equities Platform
                                               is a demand for Purge Ports for equities                  subject line if email is used. To help the            (‘‘EDGA Equities’’) To Identify and To
                                               and that it believes that the Purge Ports                 Commission process and review your                    Set Fees for Purge Ports
                                               will provide an effective risk                            comments more efficiently, please use
                                                                                                                                                               October 11, 2018.
                                               management tool for Users trading                         only one method. The Commission will
                                                                                                                                                                  Pursuant to Section 19(b)(1) of the
                                               equities. The Commission believes that                    post all comments on the Commission’s
                                                                                                                                                               Securities Exchange Act of 1934
                                               Purge Ports may be a helpful tool for                     internet website (http://www.sec.gov/
                                                                                                                                                               (‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                               managing the risk associated with                         rules/sro.shtml). Copies of the
                                                                                                                                                               notice is hereby given that on
                                               trading equities, and notes that this can                 submission, all subsequent
                                                                                                                                                               September 28, 2018, Cboe EDGA
                                               be important both for individual market                   amendments, all written statements
                                                                                                                                                               Exchange, Inc. (‘‘Exchange’’ or ‘‘EDGA’’)
                                               participants and the market in general.                   with respect to the proposed rule                     filed with the Securities and Exchange
                                                                                                         change that are filed with the                        Commission (‘‘Commission’’) the
                                                 17 15  U.S.C. 78s(b)(3)(A)(iii).                        Commission, and all written                           proposed rule change as described in
                                                 18 17  CFR 240.19b–4(f)(6). In addition, Rule 19b–      communications relating to the                        Items I and II below, which Items have
                                               4(f)(6)(iii) requires a self-regulatory organization to   proposed rule change between the                      been prepared by the Exchange. The
daltland on DSKBBV9HB2PROD with NOTICES




                                               give the Commission written notice of its intent to
                                               file the proposed rule change, along with a brief         Commission and any person, other than                 Exchange has designated this proposal
                                               description and text of the proposed rule change,         those that may be withheld from the                   as a ‘‘non-controversial’’ proposed rule
                                               at least five business days prior to the date of filing
                                               of the proposed rule change, or such shorter time            21 For purposes only of waiving the 30-day
                                                                                                                                                               change pursuant to Section 19(b)(3)(A)
                                               as designated by the Commission. The Exchange             operative delay, the Commission has also
                                               has satisfied this requirement.                           considered the proposed rule’s impact on
                                                                                                                                                                 22 17 CFR 200.30–3(a)(12).
                                                  19 17 CFR 240.19b–4(f)(6).                                                                                     1 15 U.S.C. 78s(b)(1).
                                                                                                         efficiency, competition, and capital formation. See
                                                  20 17 CFR 240.19b–4(f)(6)(iii).                        15 U.S.C. 78c(f).                                       2 17 CFR 240.19b–4.




                                          VerDate Sep<11>2014    19:46 Oct 16, 2018   Jkt 247001   PO 00000   Frm 00223   Fmt 4703   Sfmt 4703   E:\FR\FM\17OCN1.SGM     17OCN1



Document Created: 2018-10-17 01:48:08
Document Modified: 2018-10-17 01:48:08
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation83 FR 52595 

2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR