83 FR 52598 - Self-Regulatory Organizations; Cboe EDGA 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 (“EDGA Equities”) To Identify and To Set Fees for Purge Ports
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 201 (October 17, 2018)
Federal Register Volume 83, Issue 201 (October 17, 2018)
| Page Range | 52598-52602 | |
| FR Document | 2018-22536 |
[Federal Register Volume 83, Number 201 (Wednesday, October 17, 2018)] [Notices] [Pages 52598-52602] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-22536] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-84405; File No. SR-CboeEDGA-2018-016] Self-Regulatory Organizations; Cboe EDGA 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 (``EDGA 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 EDGA Exchange, Inc. (``Exchange'' or ``EDGA'') 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) [[Page 52599]] of the Act \3\ and Rule 19b4(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 11.10, Order Execution, to reflect the proposed Purge Ports, and (2) modify the EDGA fee schedule to identify and to set fees for Purge Ports. The Exchange has designated this proposal as non-controversial and provided the Commission with the notice required by Rule 19b-4(f)(6)(iii) under the Act.\5\ --------------------------------------------------------------------------- \5\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- 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 \6\ 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 11.10, Order Execution, to reflect the proposed Purge Ports, and (2) modify the EDGA fee schedule to identify and to set fees for Purge Ports. --------------------------------------------------------------------------- \6\ 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(ee). --------------------------------------------------------------------------- Purge Ports are already available on the Exchange's affiliated options markets--i.e., the options trading 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'').\7\ 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 EDGA. The Exchange believes that the proposed Purge Port functionality will provide an effective tool for Users to manage their risk associated with equities trading. --------------------------------------------------------------------------- \7\ 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 11.10, Order Execution, 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 EDGA fee schedule to adopt fees for Purge Ports. The proposed ports are designed to assist Users, including Market Makers,\8\ 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. --------------------------------------------------------------------------- \8\ 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 11.10 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 11.10, Order Execution, to reflect the proposed Purge Port functionality. As described above, Interpretation and Policies .01 to Rule 11.10 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 11.10,\9\ and add additional language to describe the flexibility provided using the proposed Purge Ports. Specifically, as proposed, Interpretations and Policies .02(b) to Rule 11.10 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 [[Page 52600]] across multiple logical ports. The block will remain in effect until the User requests the Exchange remove the block. --------------------------------------------------------------------------- \9\ 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 EDGA 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.\10\ Specifically, the proposed rule change is consistent with Sections 6(b)(4) and 6(b)(5) of the Act,\11\ 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. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78f(b). \11\ 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,\12\ 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' 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.\13\ 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. --------------------------------------------------------------------------- \12\ See Rule 11.20(d). \13\ See supra note 8. 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 11.20(d) or firm quote obligations under Regulation NMS Rule 602.\14\ 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. --------------------------------------------------------------------------- \14\ 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.\15\ The proposed fees therefore directly support the introduction of new and innovative risk management features to the market. --------------------------------------------------------------------------- \15\ 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.\16\ 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. --------------------------------------------------------------------------- \16\ 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 [[Page 52601]] 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.\17\ 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 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. --------------------------------------------------------------------------- \17\ See supra note 14. --------------------------------------------------------------------------- (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 \18\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\19\ --------------------------------------------------------------------------- \18\ 15 U.S.C. 78s(b)(3)(A)(iii). \19\ 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) \20\ normally does not become operative prior to 30 days after the date of the filing. However, Rule 19b-4(f)(6)(iii) \21\ 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.\22\ --------------------------------------------------------------------------- \20\ 17 CFR 240.19b-4(f)(6). \21\ 17 CFR 240.19b-4(f)(6)(iii). \22\ 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 CommentsUse the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to rule-comments@sec.gov. Please include File Number SR-CboeEDGA-2018-016 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-CboeEDGA-2018-016. 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 [[Page 52602]] 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-CboeEDGA-2018-016 and should be submitted on or before November 7, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\23\ --------------------------------------------------------------------------- \23\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-22536 Filed 10-16-18; 8:45 am] BILLING CODE 8011-01-P
![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.
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proposed rule change between the APPLICANTS: Destra International & fee and expense structure, and to
Commission and any person, other than Event-Driven Credit Fund (the ‘‘Initial impose asset-based distribution and/or
those that may be withheld from the Fund’’) and Destra Capital Advisors LLC service fees with respect to certain
public in accordance with the (the ‘‘Adviser’’). classes and EWCs.
provisions of 5 U.S.C. 552, will be FILING DATES: The application was filed 4. Applicants request that the order
available for website viewing and on May 4, 2018 and an amendment on also apply to any continuously offered
printing in the Commission’s Public August 22, 2018. registered closed-end management
Reference Room, 100 F Street NE, HEARING OR NOTIFICATION OF HEARING: An investment company that has been
Washington, DC 20549, on official order granting the requested relief will previously organized or that may be
business days between the hours of be issued unless the Commission orders organized in the future for which the
10:00 a.m. and 3:00 p.m. Copies of the a hearing. Interested persons may Adviser, or any entity controlling,
filing also will be available for request a hearing by writing to the controlled by, or under common control
inspection and copying at the principal Commission’s Secretary and serving with the Adviser, or any successor in
office of the Exchange. All comments applicants with a copy of the request, interest to any such entity,1 acts as
received will be posted without change. personally or by mail. Hearing requests investment adviser and which operates
Persons submitting comments are should be received by the Commission as an interval fund pursuant to rule
cautioned that we do not redact or edit by 5:30 p.m. on November 5, 2018, and 23c–3 under the Act or provides
personal identifying information from should be accompanied by proof of periodic liquidity with respect to its
comment submissions. You should service on the applicants, in the form of shares pursuant to rule 13e–4 under the
submit only information that you wish an affidavit, or, for lawyers, a certificate Securities Exchange Act of 1934
to make available publicly. All of service. Pursuant to rule 0–5 under (‘‘Exchange Act’’) (each, a ‘‘Future
submissions should refer to File the Act, hearing requests should state Fund’’ and together with the Initial
Number SR–CboeEDGA–2018–016 and the nature of the writer’s interest, any Fund, the ‘‘Funds’’).2
should be submitted on or before facts bearing upon the desirability of a 5. The Initial Fund currently issues a
November 7, 2018. hearing on the matter, the reason for the single class of common shares in
request, and the issues contested. connection with its registration
For the Commission, by the Division of
Trading and Markets, pursuant to delegated Persons who wish to be notified of a statement. Applicants state that
authority.23 hearing may request notification by additional offerings by any Fund relying
Eduardo A. Aleman, writing to the Commission’s Secretary. on the order may be on a private
placement or public offering basis.
Assistant Secretary. ADDRESSES: Secretary, U.S. Securities
Shares of the Funds will not be listed on
[FR Doc. 2018–22536 Filed 10–16–18; 8:45 am] and Exchange Commission, 100 F Street
any securities exchange, nor quoted on
BILLING CODE 8011–01–P NE, Washington, DC 20549–1090;
any quotation medium. The Funds do
Applicants, 444 West Lake Street, Suite
not expect there to be a secondary
1700, Chicago, IL 60606.
trading market for their shares.
SECURITIES AND EXCHANGE FOR FURTHER INFORMATION CONTACT: 6. If the requested relief is granted, the
COMMISSION Benjamin Kalish, Attorney-Advisor, at Initial Fund intends to redesignate its
(202) 551–7361 or Parisa Haghshenas, common shares as ‘‘Class I Shares’’ and
[Investment Company Act Release No. Branch Chief, at (202) 551–6723 to file an amendment to its registration
33268; 812–14903] (Division of Investment Management, statement in order to continuously offer
Chief Counsel’s Office). additional classes of shares, currently
Destra International & Event-Driven SUPPLEMENTARY INFORMATION: The contemplated to be named ‘‘Class A
Credit Fund and Destra Capital following is a summary of the Shares,’’ ‘‘Class L Shares’’, and ‘‘Class T
Advisors LLC; Notice of Application application. The complete application Shares.’’ Because of the different
October 11, 2018. may be obtained via the Commission’s distribution fees, shareholder services
AGENCY: Securities and Exchange website by searching for the file fees, and any other class expenses that
Commission (‘‘Commission’’). number, or for an applicant using the may be attributable to the Class I Shares,
Company name box, at http:// Class A Shares, Class L Shares, and
ACTION: Notice.
www.sec.gov/search/search.htm or by Class T Shares, the net income
Notice of an application under section calling (202) 551–8090. attributable to, and any dividends
6(c) of the Investment Company Act of Applicants’ Representations payable on, each class of shares may
1940 (the ‘‘Act’’) for an exemption from differ from each other. The Fund’s Class
1. The Initial Fund is a Delaware I Shares will be subject to other
sections 18(a)(2), 18(c) and 18(i) of the
statutory trust that is registered under expenses but not a front-end sales
Act, under sections 6(c) and 23(c) of the
the Act as a non-diversified, closed-end charge nor a distribution fee or a service
Act for an exemption from rule 23c–3
management investment company. The fee. The Fund’s Class A Shares will be
under the Act, and for an order pursuant
Initial Fund’s investment objective is to subject to other expenses including a
to section 17(d) of the Act and rule 17d–
provide attractive total returns, front-end sales charge and a service fee
1 under the Act.
consisting of income and capital but not a distribution fee. The Fund’s
SUMMARY OF APPLICATION: Applicants appreciation.
request an order to permit certain Class L Shares and Class T Shares will
2. The Adviser, a Delaware limited
registered closed-end management liability company, is registered as an
daltland on DSKBBV9HB2PROD with NOTICES
1 A successor in interest is limited to an entity
investment companies to issue multiple investment adviser under the that results from a reorganization into another
classes of shares and to impose asset- Investment Advisers Act of 1940, as jurisdiction or a change in the type of business
based distribution and/or service fees, amended. The Adviser serves as organization.
early withdrawal charges (‘‘EWCs’’), and investment adviser to the Initial Fund.
2 Any Fund relying on this relief in the future will
early repurchase fees. do so in a manner consistent with the terms and
3. The applicants seek an order to conditions of the application. Applicants represent
permit the Initial Fund to issue multiple that each entity presently intending to rely on the
23 17 CFR 200.30–3(a)(12). classes of shares, each having its own requested relief is listed as an applicant.
VerDate Sep<11>2014 19:46 Oct 16, 2018 Jkt 247001 PO 00000 Frm 00227 Fmt 4703 Sfmt 4703 E:\FR\FM\17OCN1.SGM 17OCN1](https://thefederalregister.org/doc/83_FR_52799/page/5.svg)
Document Created: 2018-10-17 01:47:35
Document Modified: 2018-10-17 01:47:35
| 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 52598 |
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