83 FR 52605 - Self-Regulatory Organizations; Cboe EDGX 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 (“EDGX 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 | 52605-52608 | |
| FR Document | 2018-22537 |
[Federal Register Volume 83, Number 201 (Wednesday, October 17, 2018)] [Notices] [Pages 52605-52608] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-22537] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-84403; File No. SR-CboeEDGX-2018-042] Self-Regulatory Organizations; Cboe EDGX 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 (``EDGX 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 EDGX Exchange, Inc. (``Exchange'' or ``EDGX'') 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 11.10, Order Execution, to reflect the proposed Purge Ports, and (2) modify the fee schedule applicable to the Exchange's equities platform (``EDGX Equities'') 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 fee schedule applicable to EDGX Equities 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 Exchange's options trading platform (``EDGX Options''), the options trading platform of Cboe BZX Exchange, Inc. (``BZX 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 EDGX Equities. 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. 79957 (February 3, 2017), 82 FR 10070 (February 9, 2017) (SR-BatsEDGX-2017-07); 79956 (February 3, 2017), 82 FR 10102 (February 9, 2017) (SR-BatsBZX-2017- 05); 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 EDGX Equities 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 [[Page 52606]] 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 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 EDGX Equities 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 [[Page 52607]] 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 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. [[Page 52608]] 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 [email protected]. Please include File Number SR-CboeEDGX-2018-042 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-CboeEDGX-2018-042. 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-CboeEDGX-2018-042 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\ Eduardo A. Aleman, Assistant Secretary. --------------------------------------------------------------------------- \23\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- [FR Doc. 2018-22537 Filed 10-16-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 201 / Wednesday, October 17, 2018 / Notices 52605
Applicants’ Condition solicit comments on the proposed rule options trading platform of Cboe BZX
Applicants agree that any order change from interested persons. Exchange, Inc. (‘‘BZX Options’’), and
granting the requested relief will be Cboe C2 Exchange, Inc. (‘‘C2’’).7 Based
I. Self-Regulatory Organization’s
subject to the following condition: on the successful experience with Purge
Statement of the Terms of Substance of
Each Fund relying on the order will Ports for options, and in response to
the Proposed Rule Change
comply with the provisions of rules 6c– demand for similar functionality for
The Exchange is proposing to (1) equities trading, the Exchange has
10, 12b–1, 17d–3, 18f–3, 22d–1, and, establish Purge Ports for equities trading
where applicable, 11a–3 under the Act, determined to offer Purge Ports on
and amend the Interpretations and EDGX Equities. The Exchange believes
as amended from time to time, as if Policies to Rule 11.10, Order Execution,
those rules applied to closed-end that the proposed Purge Port
to reflect the proposed Purge Ports, and functionality will provide an effective
management investment companies, (2) modify the fee schedule applicable
and will comply with the FINRA Sales tool for Users to manage their risk
to the Exchange’s equities platform associated with equities trading.
Charge Rule, as amended from time to (‘‘EDGX Equities’’) to identify and to set
time, as if that rule applied to all closed- fees for Purge Ports. The Exchange has Background
end management investment designated this proposal as non- A logical port represents a port
companies. controversial and provided the established by the Exchange within the
For the Commission, by the Division of Commission with the notice required by Exchange’s system for trading and
Investment Management, under delegated Rule 19b–4(f)(6)(iii) under the Act.5 billing purposes. Each logical port
authority. The text of the proposed rule change established is specific to a Member or
Eduardo A. Aleman, is available at the Exchange’s website at non-Member and grants that Member or
Assistant Secretary. www.markets.cboe.com, at the principal non-Member the ability to accomplish a
[FR Doc. 2018–22541 Filed 10–16–18; 8:45 am] office of the Exchange, and at the specific function, such as order entry,
BILLING CODE 8011–01–P Commission’s Public Reference Room. order cancellation, or data receipt. In
II. Self-Regulatory Organization’s addition, logical ports enable Users to
Statement of the Purpose of, and access information such as execution
SECURITIES AND EXCHANGE reports, execution report messages,
Statutory Basis for, the Proposed Rule
COMMISSION auction notifications, and
Change
[Release No. 34–84403; File No. SR– administrative data through a single
In its filing with the Commission, the feed.
CboeEDGX–2018–042]
Exchange included statements
concerning the purpose of and basis for Purge Ports
Self-Regulatory Organizations; Cboe
EDGX Exchange, Inc.; Notice of Filing the proposed rule change and discussed The Exchange now proposes to amend
and Immediate Effectiveness of a any comments it received on the the Interpretations and Policies to Rule
Proposed Rule Change To Introduce proposed rule change. The text of these 11.10, Order Execution, to identify
Equities Purge Ports To (1) Establish statements may be examined at the Purge Ports, a new type of logical port
Purge Ports for Equities Trading and places specified in Item IV below. The that would enable Users to cancel all
Amend the Interpretations and Policies Exchange has prepared summaries, set open orders, or a subset thereof, across
to Rule 11.10, Order Execution, To forth in Sections A, B, and C below, of multiple logical ports through a single
Reflect the Proposed Purge Ports, and the most significant parts of such cancel message. The Exchange also
(2) Modify the Fee Schedule Applicable statements. proposes to amend the EDGX Equities
To the Exchange’s Equities Platform (A) Self-Regulatory Organization’s fee schedule to adopt fees for Purge
(‘‘EDGX Equities’’) to Identify and To Statement of the Purpose of, and Ports.
Set Fees for Purge Ports Statutory Basis for, the Proposed Rule The proposed ports are designed to
Change assist Users, including Market Makers,8
October 11, 2018. in the management of, and risk control
Pursuant to Section 19(b)(1) of the 1. Purpose over, their quotes, particularly if the
Securities Exchange Act of 1934 The purpose of the proposed rule firm is quoting a large number of
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 change is to offer Users 6 an additional securities. For example, if a Market
notice is hereby given that on tool to manage risk and exercise Maker detects market indications that
September 28, 2018, Cboe EDGX additional control over their quotations may influence the direction or bias of
Exchange, Inc. (‘‘Exchange’’ or ‘‘EDGX’’) in equity securities (i.e., ‘‘Purge Ports’’). his or her quotes, the Market Maker may
filed with the Securities and Exchange Specifically, the Exchange proposes to: use the proposed Purge Port(s) to reduce
Commission (‘‘Commission’’) the (1) Establish Purge Ports for equities uncertainty and to manage risk by
proposed rule change as described in trading and amend the Interpretations purging all quotes in a number of
Items I and II below, which Items have and Policies to Rule 11.10, Order securities. This would allow the firm to
been prepared by the Exchange. The Execution, to reflect the proposed Purge seamlessly avoid unintended
Exchange has designated this proposal Ports, and (2) modify the fee schedule executions, while continuing to evaluate
as a ‘‘non-controversial’’ proposed rule applicable to EDGX Equities to identify the direction of the market. While Purge
change pursuant to Section 19(b)(3)(A) and to set fees for Purge Ports. Ports will be available to all Users, the
of the Act 3 and Rule 19b–4(f)(6)(iii) Purge Ports are already available on
thereunder,4 which renders it effective
daltland on DSKBBV9HB2PROD with NOTICES
the Exchange’s affiliated options 7 See Securities Exchange Act Release Nos. 79957
upon filing with the Commission. The markets—i.e., the Exchange’s options (February 3, 2017), 82 FR 10070 (February 9, 2017)
Commission is publishing this notice to (SR–BatsEDGX–2017–07); 79956 (February 3, 2017),
trading platform (‘‘EDGX Options’’), the 82 FR 10102 (February 9, 2017) (SR–BatsBZX–
2017–05); 83201 (May 9, 2018), 83 FR 22546 (May
1 15 U.S.C. 78s(b)(1). 5 17 CFR 240.19b–4(f)(6)(iii). 15, 2018) (SR–C2–2018–006).
2 17 CFR 240.19b–4. 6A ‘‘User’’ is any Member or Sponsored 8 A ‘‘Market Maker’’ is a Member that acts as a
3 15 U.S.C. 78s(b)(3)(A).
Participant who is authorized to obtain access to the Market Maker pursuant to Chapter XI. See Rule
4 17 CFR 240.19b–4(f)(6)(iii). System pursuant to Rule 11.3. See Rule 1.5(ee). 1.5(l).
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![52608 Federal Register / Vol. 83, No. 201 / Wednesday, October 17, 2018 / Notices
Accordingly, the Commission believes those that may be withheld from the Management and the Chief Financial
that permitting this feature to be public in accordance with the Officer, 409 3rd St. SW, Suite 6000,
operative upon filing is consistent with provisions of 5 U.S.C. 552, will be Washington, DC 20416.
the protection of investors and the available for website viewing and Hand/Delivery/Courier: Same as mail
public interest. Therefore, the printing in the Commission’s Public address.
Commission hereby waives the 30-day Reference Room, 100 F Street NE, FOR FURTHER INFORMATION CONTACT:
operative delay and designates the Washington, DC 20549, on official Brittany Borg, Lead Program Evaluator,
proposed rule change as operative upon business days between the hours of Small Business Administration at
filing.22 10:00 a.m. and 3:00 p.m. Copies of the brittany.borg@sba.gov.
At any time within 60 days of the filing also will be available for SUPPLEMENTARY INFORMATION: The SBA
filing of the proposed rule change, the inspection and copying at the principal has developed an Enterprise Learning
Commission summarily may office of the Exchange. All comments Agenda (ELA) to help program managers
temporarily suspend such rule change if received will be posted without change. continue to build and use evidence and
it appears to the Commission that such Persons submitting comments are to foster an environment of continuous
action is: (i) Necessary or appropriate in cautioned that we do not redact or edit learning. The ELA is a five-year plan
the public interest; (ii) for the protection personal identifying information from that identifies priorities based on SBA’s
of investors; or (iii) otherwise in comment submissions. You should four strategic goals in the FY 2018–2022
furtherance of the purposes of the Act. submit only information that you wish Strategic Plan where evaluations could
If the Commission takes such action, the to make available publicly. All provide insights about program
Commission shall institute proceedings submissions should refer to File effectiveness, progress toward
to determine whether the proposed rule Number SR–CboeEDGX–2018–042 and outcomes, or test pilot initiatives. The
should be approved or disapproved. should be submitted on or before Small Business Administration FY 2018
IV. Solicitation of Comments November 7, 2018. Enterprise Learning Agenda is provided
For the Commission, by the Division of for public input to ensure that the
Interested persons are invited to
Trading and Markets, pursuant to delegated public and stakeholders are provided an
submit written data, views, and
authority.23 opportunity to comment. Comments
arguments concerning the foregoing,
Eduardo A. Aleman, received on the FY 2018 Enterprise
including whether the proposed rule
Assistant Secretary. Learning Agenda will be considered
change is consistent with the Act.
[FR Doc. 2018–22537 Filed 10–16–18; 8:45 am] during the creation of the FY 2019
Comments may be submitted by any of
Enterprise Learning Agenda to be
the following methods: BILLING CODE 8011–01–P
published in February 2019.
Electronic Comments
Tim Gribben,
• Use the Commission’s internet SMALL BUSINESS ADMINISTRATION Chief Financial Officer and Associate
comment form (http://www.sec.gov/ Administrator for Performance Management.
rules/sro.shtml); or Request for Comments on Small [FR Doc. 2018–22643 Filed 10–16–18; 8:45 am]
• Send an email to rule-comments@ Business Administration Enterprise
BILLING CODE P
sec.gov. Please include File Number SR– Learning Agenda
CboeEDGX–2018–042 on the subject
line. AGENCY: Small Business Administration
(SBA). SMALL BUSINESS ADMINISTRATION
Paper Comments ACTION: Notice and request for comment. [Disaster Declaration #15714 and #15715;
• Send paper comments in triplicate Connecticut Disaster Number CT–00042]
to Secretary, Securities and Exchange SUMMARY: The Small Business
Commission, 100 F Street NE, Administration (SBA) is requesting Administrative Declaration of a
Washington, DC 20549–1090. comments on its Enterprise Learning Disaster for the State of Connecticut
All submissions should refer to File Agenda (ELA) to inform an update for
AGENCY: U.S. Small Business
Number SR–CboeEDGX–2018–042. This FY 2019. The FY 2018 ELA is available
Administration.
file number should be included on the on SBA’s website at https://
ACTION: Notice.
subject line if email is used. To help the www.sba.gov/sites/default/files/
Commission process and review your aboutsbaarticle/FY_2018_Enterprise_ SUMMARY: This is a notice of an
comments more efficiently, please use Learning_Agenda_OMB_SBA_Final_2_ Administrative declaration of a disaster
only one method. The Commission will 08_2018-Final_1.pdf. for the State of Connecticut dated 10/09/
post all comments on the Commission’s DATES: Comments must be received on 2018.
internet website (http://www.sec.gov/ or before Friday, November 16, 2017 to Incident: Severe Storms, Tornadoes
rules/sro.shtml). Copies of the be assured for consideration. and Straight-Line Winds.
submission, all subsequent ADDRESSES: You may submit comments Incident Period: 05/15/2018.
amendments, all written statements by the following methods (Please send DATES: Issued on 10/09/2018.
with respect to the proposed rule comments by one method only): Physical Loan Application Deadline
change that are filed with the Email: Address to Date: 12/10/2018.
Commission, and all written Performance.Management@sba.gov. Economic Injury (EIDL) Loan
communications relating to the Include ‘‘Comments on SBA ELA’’ in Application Deadline Date: 07/09/2019.
daltland on DSKBBV9HB2PROD with NOTICES
proposed rule change between the the email subject line. ADDRESSES: Submit completed loan
Commission and any person, other than Mail: Address to Jason Bossie, applications to: U.S. Small Business
Director, Office of Performance Administration, Processing and
22 For purposes only of waiving the 30-day
Management, U.S. Small Business Disbursement Center, 14925 Kingsport
operative delay, the Commission has also Road, Fort Worth, TX 76155.
considered the proposed rule’s impact on Administration, Office of Performance
efficiency, competition, and capital formation. See FOR FURTHER INFORMATION CONTACT: A.
15 U.S.C. 78c(f). 23 17 CFR 200.30–3(a)(12). Escobar, Office of Disaster Assistance,
VerDate Sep<11>2014 19:46 Oct 16, 2018 Jkt 247001 PO 00000 Frm 00233 Fmt 4703 Sfmt 4703 E:\FR\FM\17OCN1.SGM 17OCN1](https://thefederalregister.org/doc/83_FR_52806/page/4.svg)
Document Created: 2018-10-17 01:47:08
Document Modified: 2018-10-17 01:47:08
| 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 52605 |
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