83 FR 60530 - Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating To Amend Its Rules Regarding How the System Handles Market Orders in Series With No Bid or No Offer
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 227 (November 26, 2018)
Federal Register Volume 83, Issue 227 (November 26, 2018)
| Page Range | 60530-60533 | |
| FR Document | 2018-25734 |
[Federal Register Volume 83, Number 227 (Monday, November 26, 2018)] [Notices] [Pages 60530-60533] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-25734] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-84632; File No. SR-CboeEDGX-2018-052] Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating To Amend Its Rules Regarding How the System Handles Market Orders in Series With No Bid or No Offer November 20, 2018. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on November 16, 2018, Cboe EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change Cboe EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX Options'') proposes to amend its Rules regarding how the System handles Market Orders in series with no bid or no offer. (additions are italicized; deletions are [bracketed]) * * * * * Rules of Cboe EDGX Exchange, Inc. * * * * * Rule 21.17. Additional Price Protection Mechanisms and Risk Controls The System's acceptance and execution of orders and quotes are subject to the price protection mechanisms and risk controls in Rule 21.16, this Rule 21.17 (related to all orders other than complex orders), Rule 21.20 (related to complex orders) and as otherwise set forth in the Rules. All numeric values established by the Exchange pursuant to this Rule will be maintained by the Exchange in publicly available specifications and/or published in a Regulatory Circular. Unless otherwise specified the price protections set forth in this Rule, including the numeric values established by the Exchange, may not be disabled or adjusted. The Exchange may share any of a User's risk settings with the Clearing Member that clears transactions on behalf of the User. (a)-(d) No change. (e) Market Orders in No-Bid (Offer) Series. (1) If the System receives a sell Market Order in a series after it is open for trading with an NBB of zero: (A) if the NBO in the series is less than or equal to $0.50, then the System converts the Market Order to a Limit Order with a limit price equal to the minimum trading increment applicable to the series and enters the order into the EDGX Options Book with a timestamp based on the time it enters the Book. If the order has a Time-in-Force of GTC or GTD that expires on a subsequent day, the order remains on the Book as a Limit Order until it executes, expires, or the User cancels it. (B) if the NBO in the series is greater than $0.50, then the System cancels or rejects the market order. (2) If the System receives a buy market order in a series after it is open for trading with an NBO of zero, the System cancels or rejects the market order. * * * * * The text of the proposed rule change is also available on the Exchange's website (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room. [[Page 60531]] II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose In 2016, the Exchange's parent company, Cboe Global Markets, Inc. (formerly named CBOE Holdings, Inc.) (``Cboe Global''), which is the parent company of Cboe Exchange, Inc. (``Cboe Options'') and Cboe C2 Exchange, Inc., acquired the Exchange, Cboe EDGA Exchange, Inc. (``EDGA''), Cboe BZX Exchange, Inc. (``BZX or BZX Options''), and Cboe BYX Exchange, Inc. (``BYX'' and, together with C2, Cboe Options, EDGX, EDGA, and BZX, the ``Cboe Affiliated Exchanges''). The Cboe Affiliated Exchanges are working to align certain system functionality, retaining only intended differences between the Cboe Affiliated Exchanges, in the context of a technology migration. Thus, the proposals set forth below are intended to add certain functionality to the Exchange's System that is more similar to functionality offered by Cboe Options in order to ultimately provide a consistent technology offering for market participants who interact with the Cboe Affiliated Exchanges. Although the Exchange intentionally offers certain features that differ from those offered by its affiliates and will continue to do so, the Exchange believes that offering similar functionality to the extent practicable will reduce potential confusion for Users. The Exchange proposes to amend its Rules regarding how the System handles a market order when there is no bid or offer, as applicable, against which the order may execute. A market order is an order to buy or sell at the best price available at the time of execution.\3\ Currently, based on this definition, if the System receives a sell market order when there are no bids against which the order may execute, the System cancels the order. Similarly, if the System receives a buy market order when there are no offers against which the order may execute, the System cancels the order. The proposed rule change first codifies this handling of a buy market order when there national best offer (``NBO'') is zero, which is consistent with current functionality.\4\ As noted above, this handling is consistent with the definition of a market order.\5\ It provides protection for these orders to prevent execution at potentially erroneous prices when a buy order is submitted in a series with no offer. --------------------------------------------------------------------------- \3\ See Rule 21.1(d)(5). \4\ See proposed Rule 21.17(e)(2). \5\ The proposed rule change is also consistent with Cboe Options functionality and C2 Rule 6.14(a)(1). --------------------------------------------------------------------------- The Exchange also proposes to amend how the System handles sell Market Orders submitted in a series with no bid. Currently, if the System receives a Market Order to sell in a no-bid series, the System cancels or rejects the order. Pursuant to the proposed rule change, if the System receives a Market Order to sell in an option series with an NBB of zero: (1) if the NBO in the series is less than or equal to $0.50, then the System converts the Market Order to a limit order with a limit price equal to the minimum trading increment applicable to the series and enters the order into the EDGX Options Book with a timestamp based on the time it enters the Book. If the order has a Time-in-Force of GTC or GTD that expires on a subsequent day, the order remains on the Book as a Limit Order until it executes, expires, or the User cancels it. (2) if the NBO in the series is greater than $0.50, then the System cancels the Market Order.\6\ --------------------------------------------------------------------------- \6\ See proposed Rule 21.17(e)(1). --------------------------------------------------------------------------- The proposed handling of sell Market Orders in no-bid series when the NBO in the series is greater than $0.50 is consistent with current functionality. The proposed rule change serves as a protection feature for investors in certain situations, such as when a series is no-bid because the last bid traded just prior to entry of the sell Market Order. The purpose of this threshold is to limit the automatic booking of Market Orders to sell at minimum increments to only those for true zero-bid options, as options in no-bid series with an offer of greater than $0.50 are less likely to be worthless. For example, if the System receives a sell Market Order in a no-bid series with a minimum increment of $0.01 and the NBO is $0.01, the System will convert the order to a Limit Order with a price of $0.01 and enter it on the EDGX Options Book. Because the order will have a timestamp based on that time of Book entry, it will have priority behind any other Limit Orders to sell at $0.01 that were already resting on the Book. At that point, even if the series is no-bid because, for example, the last bid just traded and the limit order trades at $0.01, the next bid entered after the trade would not be higher than $0.01. If the order has a Time-in-Force of GTC or GTD that expires on a subsequent day, the order remains on the Book until it executes, expires, or the User cancels it.\7\ --------------------------------------------------------------------------- \7\ This functionality is consistent with the purpose of a GTC or GTD that expires on a subsequent trading day, which is to remain on the Book and available for execution until the User cancels it or until the time specified by the User. The Exchange notes that market orders with any other Time-in-Force would no longer be on the Book if they did not execute during the trading day. --------------------------------------------------------------------------- However, if the System receives a sell Market Order in a no-bid series with a minimum increment of $0.01 and the NBO is $1.20 (because, for example, the last bid of $1.00 just traded and a new bid has not yet populated the disseminated quote), the System will cancel or reject the order. Cancellation prevents an anomalous execution price, since the next bid entered in that series is likely to be much higher than $0.01. It would be unfair to the User to let is Market Order trade as a limit order for $0.01 because, for example, the firm submitted the order during the brief time when there were no disseminated bids in a series trading significantly higher than the minimum increment. The Exchange believes the threshold of $0.50 is reasonable. The Exchange notes that this threshold is the same as the threshold in the Cboe Options rule,\8\ and is less than the current width for the Market Order NBBO width protection, pursuant to which the System will reject or cancel back to the User a Market Order submitted to the System when the NBBO width is greater than 100% of the midpoint of the NBBO, subject to a $5 minimum and $10 maximum.\9\ Notwithstanding this provision, the proposed rule change would allow for the potential execution [[Page 60532]] of sell Market Orders in no-bid series with offers less than or equal to $0.50. If the threshold in the proposed rule change was higher, there would be increased risk of having a Market Order trade a minimum increment in a series that is not truly no-bid. The proposed rule change is substantially the same as Cboe Options Rule 6.13(b)(vi). --------------------------------------------------------------------------- \8\ See Cboe Options Rule 6.13(b)(vi). \9\ See Rule 21.17(a); see also Exchange Notice, BZX and EDGX Options Exchanges Feature Pack 2--Update (December 14, 2017), available at http://markets.cboe.com/resources/release_notes/2017/Update-2-Cboe-BZX-and-EDGX-Options-Exchanges-Feature-Pack-2.pdf, for current settings. Pursuant to this protection, if the NBBO for a series was $0.00-$0.50, the width of the NBBO (0.50) is greater than 100% of the midpoint (0.25); however, pursuant to the minimum, a market order would be accepted pursuant to this protection because the width is less than the 5.00 minimum. The proposed rule change provides additional price protection for market orders in no-bid series. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 (the ``Act'') and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.\10\ Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \11\ requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and 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. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \12\ requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78f(b). \11\ 15 U.S.C. 78f(b)(5). \12\ Id. --------------------------------------------------------------------------- In particular, the Exchange believes the proposed rule change regarding the handling of sell Market Orders in no-bid series assists with the maintenance of fair and orderly markets and protects investors and the public interest, because it provides for automated handling of orders in series that are likely truly no-bid, ultimately resulting in more efficient executions of these orders. Additionally, the proposed rule change prevents executions of sell Market Orders in no-bid series with higher offers at potentially extreme prices in series that are not truly no-bid. The Exchange believes this threshold appropriately reflects the interests of investors, as options in no-bid series with offers higher than $0.50 are less likely to be worthless than no-bid series with offers no higher than $0.50, and cancelling the orders will prevent execution of these orders at unfavorable prices. The Exchange also believes the $0.50 threshold promotes fair and orderly markets, because sell Market Orders in no-bid series with offers of $0.50 or less are likely to be individuals seeking to close out a worthless position, for which the proposed automatic handling is appropriate. The proposed change is also substantially the same as Cboe Options Rule 6.13(b)(vi). The proposed handling of buy Market Orders in no-offer series benefits investors, because it codifies current order handling and thus provides investors with more transparency in the Rules with respect to how the System will handle these orders. The proposed change is also substantially the same as C2 Rule 6.14(a)(1). When Cboe Options migrates to the same technology as that of the Exchange and other Cboe Affiliated Exchanges, Users of the Exchange and other Cboe Affiliated Exchanges will have access to similar functionality on all Cboe Affiliated Exchanges and similar language can be incorporated into the rules of all Cboe Affiliated Exchanges. As such, the proposed rule change would foster cooperation and coordination with persons engaged in facilitating transactions in securities and would remove impediments to and perfect the mechanism of a free and open market and a national market system. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange does not believe the proposed rule changes will impose any burden on intramarket competition, because it will apply in the same manner to all buy or sell Market Orders submitted in no-offer or no-bid series, respectively. Additionally, the proposed rule change has no impact on sell Market Orders submitted in no-bid series with an offer of more than $0.50 or on buy Market Orders submitted in no-offer series, which orders will continue to be handled in the same manner as they are today (i.e. they will be cancelled or rejected). The Exchange does not believe the proposed rule change will impose any burden on intermarket competition, as it will provide sell Market Orders in true no-bid series with additional execution opportunities (either on the Exchange or at away markets pursuant to linkage rules) while providing an additional protection measure for sell Market Orders in no-bid series that may not be truly no-bid. As noted above, the proposed rule change has no impact on the handling of all other sell Market Orders in no-bid series or on buy Market Orders in no-offer series. The Exchange believes this price protection will allow Members to sell Market Orders with reduced fear of inadvertent exposure to excessive risk, which will benefit investors through increased liquidity for the execution of their orders. The proposed rule change related to the handling of buy Market Orders is consistent with current Exchange functionality and will have no impact on how those orders will handled, and it is substantially the same as C2 Rule 6.14(a)(1). The proposed rule change related to the handling of sell Market Orders is substantially the same as Cboe Options Rule 6.13(b)(vi).\13\ --------------------------------------------------------------------------- \13\ The Exchange notes other options exchanges have similar rules that convert sell market orders in no-bid series to limit orders with a price of a minimum increment if the offer in the series is below a certain threshold (the thresholds differ in those rules). See, e.g., Miami International Securities Exchange, LLC (``MIAX'') Rule 519(a)(1); and NASDAQ ISE, LLC (``ISE'') Rule 713(b). --------------------------------------------------------------------------- C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange neither solicited nor received comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action 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 \14\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\15\ --------------------------------------------------------------------------- \14\ 15 U.S.C. 78s(b)(3)(A)(iii). \15\ 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)\16\ normally does not become operative prior to 30 days after the date of the filing. However, Rule 19b-4(f)(6)(iii)\17\ permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public [[Page 60533]] 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 on November 29, 2018. The Exchange states that waiver of the operative delay will provide Users with additional flexibility to manage and display their orders and provide additional control over their executions on the Exchange as soon as possible. The Exchange further states that waiver of the operative delay will allow the Exchange to continue to strive towards a complete technology integration of the Cboe Affiliated Exchanges, with gradual roll-outs of new functionality to ensure the stability of the System. The Exchange notes that the proposed rule change is generally intended to codify and to add certain system functionality to the Exchange's System in order to provide a consistent technology offering for the Cboe Affiliated Exchanges. The Exchange further notes that a consistent technology offering will simplify the technology implementation changes and maintenance by Trading Permit Holders of the Exchange that are also participants on Cboe Affiliated Exchanges. The Commission believes that waiver of the 30-day operative delay 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 on November 29, 2018.\18\ --------------------------------------------------------------------------- \16\ 17 CFR 240.19b-4(f)(6). \17\ 17 CFR 240.19b-4(f)(6)(iii). \18\ 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-CboeEDGX-2018-052 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-2018-052. 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-2018-052 and should be submitted on or before December 17, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\19\ --------------------------------------------------------------------------- \19\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-25734 Filed 11-23-18; 8:45 am] BILLING CODE 8011-01-P
![60530 Federal Register / Vol. 83, No. 227 / Monday, November 26, 2018 / Notices
III. Date of Effectiveness of the printing in the Commission’s Public (additions are italicized; deletions are
Proposed Rule Change and Timing for Reference Room, 100 F Street NE, [bracketed])
Commission Action Washington, DC 20549, on official * * * * *
The foregoing rule change has become business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also Rules of Cboe EDGX Exchange, Inc.
effective pursuant to Section 19(b)(3)(A)
of the Act 6 and paragraph (f) of Rule will be available for inspection and * * * * *
19b–4 7 thereunder. At any time within copying at the principal office of the Rule 21.17. Additional Price
60 days of the filing of the proposed rule Exchange. All comments received will Protection Mechanisms and Risk
change, the Commission summarily may be posted without change. Persons Controls
temporarily suspend such rule change if submitting comments are cautioned that
we do not redact or edit personal The System’s acceptance and
it appears to the Commission that such execution of orders and quotes are
action is necessary or appropriate in the identifying information from comment
submissions. You should submit only subject to the price protection
public interest, for the protection of
information that you wish to make mechanisms and risk controls in Rule
investors, or otherwise in furtherance of
available publicly. All submissions 21.16, this Rule 21.17 (related to all
the purposes of the Act. If the
Commission takes such action, the should refer to File Number SR– orders other than complex orders), Rule
Commission will institute proceedings CboeEDGA–2018–018 and should be 21.20 (related to complex orders) and as
to determine whether the proposed rule submitted on or before December 17, otherwise set forth in the Rules. All
change should be approved or 2018. numeric values established by the
disapproved. For the Commission, by the Division of Exchange pursuant to this Rule will be
Trading and Markets, pursuant to delegated maintained by the Exchange in publicly
IV. Solicitation of Comments authority.8 available specifications and/or
Interested persons are invited to Eduardo A. Aleman, published in a Regulatory Circular.
submit written data, views, and Assistant Secretary. Unless otherwise specified the price
arguments concerning the foregoing, [FR Doc. 2018–25600 Filed 11–23–18; 8:45 am] protections set forth in this Rule,
including whether the proposed rule BILLING CODE 8011–01–P including the numeric values
change is consistent with the Act. established by the Exchange, may not be
Comments may be submitted by any of disabled or adjusted. The Exchange may
the following methods: SECURITIES AND EXCHANGE share any of a User’s risk settings with
Electronic Comments COMMISSION the Clearing Member that clears
transactions on behalf of the User.
• Use the Commission’s internet [Release No. 34–84632; File No. SR–
comment form (http://www.sec.gov/ CboeEDGX–2018–052] (a)–(d) No change.
rules/sro.shtml); or Self-Regulatory Organizations; Cboe (e) Market Orders in No-Bid (Offer)
• Send an email to rule-comments@ Series.
EDGX Exchange, Inc.; Notice of Filing
sec.gov. Please include File Number SR–
and Immediate Effectiveness of a (1) If the System receives a sell Market
CboeEDGA–2018–018 on the subject
Proposed Rule Change Relating To Order in a series after it is open for
line.
Amend Its Rules Regarding How the trading with an NBB of zero:
Paper Comments System Handles Market Orders in (A) if the NBO in the series is less
• Send paper comments in triplicate Series With No Bid or No Offer
than or equal to $0.50, then the System
to Secretary, Securities and Exchange November 20, 2018. converts the Market Order to a Limit
Commission, 100 F Street NE, Pursuant to Section 19(b)(1) of the Order with a limit price equal to the
Washington, DC 20549–1090. Securities Exchange Act of 1934 (the minimum trading increment applicable
All submissions should refer to File ‘‘Act’’),1 and Rule 19b–4 thereunder,2 to the series and enters the order into
Number SR–CboeEDGA–2018–018. This notice is hereby given that on November the EDGX Options Book with a
file number should be included on the 16, 2018, Cboe EDGX Exchange, Inc. timestamp based on the time it enters
subject line if email is used. To help the (the ‘‘Exchange’’ or ‘‘EDGX’’) filed with the Book. If the order has a Time-in-
Commission process and review your the Securities and Exchange Force of GTC or GTD that expires on a
comments more efficiently, please use Commission (the ‘‘Commission’’) the subsequent day, the order remains on
only one method. The Commission will proposed rule change as described in the Book as a Limit Order until it
post all comments on the Commission’s Items I and II below, which Items have executes, expires, or the User cancels it.
internet website (http://www.sec.gov/ been prepared by the Exchange. The
rules/sro.shtml). Copies of the (B) if the NBO in the series is greater
Commission is publishing this notice to than $0.50, then the System cancels or
submission, all subsequent solicit comments on the proposed rule
amendments, all written statements rejects the market order.
change from interested persons.
with respect to the proposed rule (2) If the System receives a buy market
change that are filed with the I. Self-Regulatory Organization’s order in a series after it is open for
Commission, and all written Statement of the Terms of Substance of trading with an NBO of zero, the System
communications relating to the the Proposed Rule Change cancels or rejects the market order.
proposed rule change between the Cboe EDGX Exchange, Inc. (the * * * * *
Commission and any person, other than ‘‘Exchange’’ or ‘‘EDGX Options’’)
those that may be withheld from the proposes to amend its Rules regarding The text of the proposed rule change
public in accordance with the how the System handles Market Orders is also available on the Exchange’s
provisions of 5 U.S.C. 552, will be in series with no bid or no offer. website (http://www.cboe.com/About
available for website viewing and CBOE/CBOELegalRegulatoryHome.
8 17 CFR 200.30–3(a)(12). aspx), at the Exchange’s Office of the
6 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1). Secretary, and at the Commission’s
7 17 CFR 240.19b–4(f). 2 17 CFR 240.19b–4. Public Reference Room.
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![Federal Register / Vol. 83, No. 227 / Monday, November 26, 2018 / Notices 60533
interest. The Exchange has asked the Electronic Comments SECURITIES AND EXCHANGE
Commission to waive the 30-day COMMISSION
operative delay so that the proposed • Use the Commission’s internet
rule change may become effective and comment form (http://www.sec.gov/ Proposed Collection; Comment
operative on November 29, 2018. The rules/sro.shtml); or Request
Exchange states that waiver of the • Send an email to rule-comments@ Upon Written Request Copies Available
operative delay will provide Users with sec.gov. Please include File Number SR– From: Securities and Exchange
additional flexibility to manage and CboeEDGX–2018–052 on the subject Commission, Office of FOIA Services,
display their orders and provide line. 100 F Street NE, Washington, DC
additional control over their executions Paper Comments 20549–2736.
on the Exchange as soon as possible. Extension:
The Exchange further states that waiver • Send paper comments in triplicate Interactive Data, SEC File No. 270–330,
of the operative delay will allow the to Secretary, Securities and Exchange OMB Control No. 3235–0645.
Exchange to continue to strive towards Commission, 100 F Street NE, Notice is hereby given that, pursuant
a complete technology integration of the Washington, DC 20549–1090. to the Paperwork Reduction Act of 1995
Cboe Affiliated Exchanges, with gradual (44 U.S.C. 3501 et seq.), the Securities
All submissions should refer to File
roll-outs of new functionality to ensure and Exchange Commission
Number SR–CboeEDGX–2018–052. This
the stability of the System. The (‘‘Commission’’) is soliciting comments
file number should be included on the
Exchange notes that the proposed rule on the collection of information
subject line if email is used. To help the summarized below. The Commission
change is generally intended to codify
Commission process and review your plans to submit this existing collection
and to add certain system functionality comments more efficiently, please use
to the Exchange’s System in order to of information to the Office of
only one method. The Commission will Management and Budget for extension
provide a consistent technology offering post all comments on the Commission’s
for the Cboe Affiliated Exchanges. The and approval.
internet website (http://www.sec.gov/ The ‘‘Interactive Data’’ collection of
Exchange further notes that a consistent rules/sro.shtml). Copies of the information requires issuers filing
technology offering will simplify the submission, all subsequent registration statements under the
technology implementation changes and amendments, all written statements Securities Act of 1933 (15 U.S.C. 77a et
maintenance by Trading Permit Holders with respect to the proposed rule seq.) and reports under the Securities
of the Exchange that are also change that are filed with the Exchange Act of 1934 (15 U.S.C. 78a et
participants on Cboe Affiliated Commission, and all written seq.) to submit specified financial
Exchanges. The Commission believes communications relating to the information to the Commission and post
that waiver of the 30-day operative proposed rule change between the it on their corporate websites, if any, in
delay is consistent with the protection Commission and any person, other than interactive data format using eXtensible
of investors and the public interest. those that may be withheld from the Business Reporting Language (XBRL).
Therefore, the Commission hereby public in accordance with the This collection of information is located
waives the 30-day operative delay and provisions of 5 U.S.C. 552, will be primarily in registration statement and
designates the proposed rule change as available for website viewing and report exhibit provisions, which require
operative on November 29, 2018.18 printing in the Commission’s Public interactive data, and Rule 405 of
At any time within 60 days of the Reference Room, 100 F Street NE, Regulation S–T (17 CFR 232.405), which
Washington, DC 20549 on official specifies how to submit and post
filing of the proposed rule change, the
interactive data. The exhibit provisions
Commission summarily may business days between the hours of
are in Item 601(b)(101) of Regulation S–
temporarily suspend such rule change if 10:00 a.m. and 3:00 p.m. Copies of the
K (17 CFR 229.601(b)(101), F–10 under
it appears to the Commission that such filing also will be available for
the Securities Act (17 CFR 239.40) and
action is: (i) necessary or appropriate in inspection and copying at the principal Forms 20–F, 40–F and 6–K under the
the public interest; (ii) for the protection office of the Exchange. All comments Exchange Act (17 CFR 249.220f, 17 CFR
of investors; or (iii) otherwise in received will be posted without change. 249.240f and 17 CFR 249.306).
furtherance of the purposes of the Act. Persons submitting comments are In interactive data format, financial
If the Commission takes such action, the cautioned that we do not redact or edit statement information could be
Commission shall institute proceedings personal identifying information from downloaded directly into spreedsheets
to determine whether the proposed rule comment submissions. You should and analyzed in a variety of ways using
should be approved or disapproved. submit only information that you wish commercial off-the-shelf software. The
to make available publicly. All specified financial information already
IV. Solicitation of Comments submissions should refer to File is and will continue to be required to be
Number SR–CboeEDGX–2018–052 and submitted to the Commission in
Interested persons are invited to
should be submitted on or before traditional format under existing
submit written data, views, and
December 17, 2018. requirements. The purpose of the
arguments concerning the foregoing,
For the Commission, by the Division of interactive data requirement is to make
including whether the proposed rule
Trading and Markets, pursuant to delegated financial information easier for
change is consistent with the Act.
authority.19 investors to analyze and assist issuers in
Comments may be submitted by any of automating regulatory filings and
the following methods: Eduardo A. Aleman,
business information processing. We
Assistant Secretary. estimate that 10,229 respondents per
18 For purposes only of waiving the 30-day [FR Doc. 2018–25734 Filed 11–23–18; 8:45 am] year will each submit an average of 4.5
operative delay, the Commission has also
considered the proposed rule’s impact on
BILLING CODE 8011–01–P reponses per year for an estimated total
efficiency, competition, and capital formation. See of 46,031 responses. We further estimate
15 U.S.C. 78c(f). 19 17 CFR 200.30–3(a)(12). an internal burden of 59 hours per
VerDate Sep<11>2014 17:28 Nov 23, 2018 Jkt 247001 PO 00000 Frm 00143 Fmt 4703 Sfmt 4703 E:\FR\FM\26NON1.SGM 26NON1](https://thefederalregister.org/doc/83_FR_60757/page/4.svg)
Document Created: 2018-11-24 00:51:33
Document Modified: 2018-11-24 00:51:33
| 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 60530 |
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