83 FR 61699 - Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating To the Modification of Certain Routing Fees
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 231 (November 30, 2018)
Federal Register Volume 83, Issue 231 (November 30, 2018)
| Page Range | 61699-61700 | |
| FR Document | 2018-26002 |
[Federal Register Volume 83, Number 231 (Friday, November 30, 2018)] [Notices] [Pages 61699-61700] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-26002] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-84653; File No. SR-CboeBZX-2018-083] Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating To the Modification of Certain Routing Fees November 26, 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 13, 2018, Cboe BZX Exchange, Inc. (the ``Exchange'' or ``BZX'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I, II, and III 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 BZX Exchange, Inc. (the ``Exchange'' or ``BZX'') is filing with the Securities and Exchange Commission (``Commission'') a proposed rule change to modify certain Routing Fees. 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. 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 The Exchange proposes to amend its fee schedule to amend pricing for orders routed to Cboe EDGA Exchange, Inc., (``EDGA''), which yield fee codes AA, BJ, and RA.\3\ Particularly, as of November 1, 2018, EDGA implemented pricing changes for transactions that add and remove liquidity.\4\ The filing generally proposes that orders that add liquidity will be assessed a fee of $0.00300 per share and orders that remove liquidity will be provided a rebate of $0.00240 per share. Based on the changes in pricing at EDGA, the Exchange proposes the pricing changes described below. --------------------------------------------------------------------------- \3\ The Exchange initially filed the proposed fee changes on November 1, 2018 (SR-CboeBZX-2018-080). On business date November 13, 2018, the Exchange withdrew that filing and submitted this filing. \4\ See SR-CboeEDGA-2018-017. --------------------------------------------------------------------------- First, the Exchange notes that orders routed to EDGA using ALLB routing strategy (which yield fee code AA) and orders routed to EDGA using a TRIM or TRIM2 routing strategy (which yield fee code BJ) are currently assessed $0.00030 per share. The Exchange proposes to eliminate this fee and instead provide a rebate of $0.00240 per share for these orders. Next, the Exchange notes that orders routed to EDGA that add liquidity (which yield fee code RA) are assessed $0.00030 per share. The Exchange proposes to increase the rate from $0.00030 per share to $0.00300 per share. 2. Statutory Basis The Exchange also believes the proposed rule change is consistent with Section 6(b)(4) of the Act, which requires that Exchange rules provide for the equitable allocation of reasonable dues, fees, and other charges among its members and other persons using its facilities. The Exchange believes the proposed changes are reasonable because they reflect a pass-through of the pricing changes by EDGA described above. The Exchange further believes the proposed fee change is non- discriminatory because it applies uniformly to all Members. The Exchange lastly notes that routing through the Exchange is voluntary and that it operates in a highly competitive market in which market participants can readily direct order flow to competing venues or providers of routing services if they deem fee levels to be excessive. [[Page 61700]] 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 not necessary or appropriate in furtherance of the purposes of the Act. The Exchange believes the proposed routing fee changes will not impose an undue burden on competition because the Exchange will uniformly assess the affected routing fees on all Members. Additionally, Members may opt to disfavor the Exchange's pricing if they believe that alternatives offer them better value or if they view the proposed fee as excessive. The Exchange also notes the proposed changes to the EDGA-related routing fees are meant to pass through the fees and rebates associated with executing orders on that market, and is therefore not designed to have any significant impact on competition. Further, excessive fees for participation would serve to impair an exchange's ability to compete for order flow and members rather than burdening competition. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange has not solicited, and does not intend to solicit, comments on this proposed rule change. The Exchange has not received any written comments from members or other interested parties. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \5\ and paragraph (f) of Rule 19b-4 \6\ thereunder. 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 necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission will institute proceedings to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78s(b)(3)(A). \6\ 17 CFR 240.19b-4(f). --------------------------------------------------------------------------- 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-CboeBZX-2018-083 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-CboeBZX-2018-083. 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-CboeBZX-2018-083 and should be submitted on or before December 21, 2018. --------------------------------------------------------------------------- \7\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\7\ Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-26002 Filed 11-29-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 231 / Friday, November 30, 2018 / Notices 61699
Paper Comments SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
COMMISSION Statement of the Purpose of, and
• Send paper comments in triplicate Statutory Basis for, the Proposed Rule
to Secretary, Securities and Exchange Change
[Release No. 34–84653; File No. SR–
Commission, 100 F Street NE,
CboeBZX–2018–083] 1. Purpose
Washington, DC 20549–1090.
The Exchange proposes to amend its
All submissions should refer to File Self-Regulatory Organizations; Cboe
fee schedule to amend pricing for orders
Number SR–NYSEArca–2018–85. This BZX Exchange, Inc.; Notice of Filing
routed to Cboe EDGA Exchange, Inc.,
file number should be included on the and Immediate Effectiveness of a (‘‘EDGA’’), which yield fee codes AA,
subject line if email is used. To help the Proposed Rule Change Relating To the BJ, and RA.3 Particularly, as of
Commission process and review your Modification of Certain Routing Fees November 1, 2018, EDGA implemented
comments more efficiently, please use November 26, 2018. pricing changes for transactions that add
only one method. The Commission will and remove liquidity.4 The filing
post all comments on the Commission’s Pursuant to Section 19(b)(1) of the generally proposes that orders that add
internet website (http://www.sec.gov/ Securities Exchange Act of 1934 (the liquidity will be assessed a fee of
rules/sro.shtml). Copies of the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 $0.00300 per share and orders that
submission, all subsequent notice is hereby given that on November remove liquidity will be provided a
amendments, all written statements 13, 2018, Cboe BZX Exchange, Inc. (the rebate of $0.00240 per share. Based on
with respect to the proposed rule ‘‘Exchange’’ or ‘‘BZX’’) filed with the the changes in pricing at EDGA, the
change that are filed with the Securities and Exchange Commission Exchange proposes the pricing changes
(the ‘‘Commission’’) the proposed rule described below.
Commission, and all written First, the Exchange notes that orders
communications relating to the change as described in Items I, II, and
III below, which Items have been routed to EDGA using ALLB routing
proposed rule change between the strategy (which yield fee code AA) and
Commission and any person, other than prepared by the Exchange. The
Commission is publishing this notice to orders routed to EDGA using a TRIM or
those that may be withheld from the TRIM2 routing strategy (which yield fee
public in accordance with the solicit comments on the proposed rule
code BJ) are currently assessed $0.00030
provisions of 5 U.S.C. 552, will be change from interested persons.
per share. The Exchange proposes to
available for website viewing and I. Self-Regulatory Organization’s eliminate this fee and instead provide a
printing in the Commission’s Public Statement of the Terms of Substance of rebate of $0.00240 per share for these
Reference Room, 100 F Street NE, the Proposed Rule Change orders. Next, the Exchange notes that
Washington, DC 20549, on official orders routed to EDGA that add
business days between the hours of Cboe BZX Exchange, Inc. (the liquidity (which yield fee code RA) are
10:00 a.m. and 3:00 p.m. Copies of the ‘‘Exchange’’ or ‘‘BZX’’) is filing with the assessed $0.00030 per share. The
filing also will be available for Securities and Exchange Commission Exchange proposes to increase the rate
inspection and copying at the principal (‘‘Commission’’) a proposed rule change from $0.00030 per share to $0.00300 per
office of the Exchange. All comments to modify certain Routing Fees. share.
received will be posted without change. The text of the proposed rule change 2. Statutory Basis
Persons submitting comments are is also available on the Exchange’s The Exchange also believes the
cautioned that we do not redact or edit website (http://www.cboe.com/ proposed rule change is consistent with
personal identifying information from AboutCBOE/CBOELegal Section 6(b)(4) of the Act, which
comment submissions. You should RegulatoryHome.aspx), at the requires that Exchange rules provide for
submit only information that you wish Exchange’s Office of the Secretary, and the equitable allocation of reasonable
to make available publicly. All at the Commission’s Public Reference dues, fees, and other charges among its
ubmissions should refer to File Number Room. members and other persons using its
SR–NYSEArca–2018–85 and should be facilities.
submitted on or before December 21, II. Self-Regulatory Organization’s The Exchange believes the proposed
2018. Statement of the Purpose of, and changes are reasonable because they
Statutory Basis for, the Proposed Rule reflect a pass-through of the pricing
For the Commission, by the Division of Change
Trading and Markets, pursuant to delegated changes by EDGA described above. The
authority.42 In its filing with the Commission, the Exchange further believes the proposed
fee change is non-discriminatory
Eduardo A. Aleman, Exchange included statements
because it applies uniformly to all
Assistant Secretary. concerning the purpose of and basis for
Members. The Exchange lastly notes
[FR Doc. 2018–25998 Filed 11–29–18; 8:45 am] the proposed rule change and discussed that routing through the Exchange is
BILLING CODE 8011–01–P
any comments it received on the voluntary and that it operates in a
proposed rule change. The text of these highly competitive market in which
statements may be examined at the market participants can readily direct
places specified in Item IV below. The order flow to competing venues or
Exchange has prepared summaries, set providers of routing services if they
amozie on DSK3GDR082PROD with NOTICES1
forth in sections A, B, and C below, of deem fee levels to be excessive.
the most significant aspects of such
statements. 3 The Exchange initially filed the proposed fee
changes on November 1, 2018 (SR-CboeBZX–2018–
080). On business date November 13, 2018, the
Exchange withdrew that filing and submitted this
1 15 U.S.C. 78s(b)(1). filing.
42 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. 4 See SR-CboeEDGA–2018–017.
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![61700 Federal Register / Vol. 83, No. 231 / Friday, November 30, 2018 / Notices
B. Self-Regulatory Organization’s change is consistent with the Act. SECURITIES AND EXCHANGE
Statement on Burden on Competition Comments may be submitted by any of COMMISSION
The Exchange does not believe that the following methods:
[Release No. 34–84645; File No. SR–Phlx–
the proposed rule change will impose Electronic Comments 2018–73]
any burden on competition not
necessary or appropriate in furtherance • Use the Commission’s internet Self-Regulatory Organizations; Nasdaq
of the purposes of the Act. The comment form (http://www.sec.gov/ PHLX LLC; Notice of Filing and
Exchange believes the proposed routing rules/sro.shtml); or Immediate Effectiveness of Proposed
fee changes will not impose an undue • Send an email to rule-comments@ Rule Change To Amend the
burden on competition because the sec.gov. Please include File Number SR- Exchange’s Provisions for Excluding
Exchange will uniformly assess the CboeBZX–2018–083 on the subject line. Days for Purposes of Pricing Tiers
affected routing fees on all Members.
Paper Comments November 26, 2018.
Additionally, Members may opt to
Pursuant to Section 19(b)(1) of the
disfavor the Exchange’s pricing if they • Send paper comments in triplicate
Securities Exchange Act of 1934
believe that alternatives offer them to Secretary, Securities and Exchange
(‘‘Act’’) 1, and Rule 19b–4 thereunder,2
better value or if they view the proposed Commission, 100 F Street NE,
notice is hereby given that on November
fee as excessive. The Exchange also Washington, DC 20549–1090.
14, 2018, Nasdaq PHLX LLC (‘‘Phlx’’ or
notes the proposed changes to the All submissions should refer to File ‘‘Exchange’’) filed with the Securities
EDGA-related routing fees are meant to Number SR–CboeBZX–2018–083. This and Exchange Commission (‘‘SEC’’ or
pass through the fees and rebates
file number should be included on the ‘‘Commission’’) the proposed rule
associated with executing orders on that
subject line if email is used. To help the change as described in Items I and II,
market, and is therefore not designed to
Commission process and review your below, which Items have been prepared
have any significant impact on
comments more efficiently, please use by the Exchange. The Commission is
competition. Further, excessive fees for
only one method. The Commission will publishing this notice to solicit
participation would serve to impair an
post all comments on the Commission’s comments on the proposed rule change
exchange’s ability to compete for order
internet website (http://www.sec.gov/ from interested persons.
flow and members rather than
rules/sro.shtml). Copies of the
burdening competition. I. Self-Regulatory Organization’s
submission, all subsequent
Statement of the Terms of Substance of
C. Self-Regulatory Organization’s amendments, all written statements
the Proposed Rule Change
Statement on Comments on the with respect to the proposed rule
Proposed Rule Change Received From change that are filed with the The Exchange proposes to amend the
Members, Participants, or Others Commission, and all written Exchange’s provisions for excluding a
communications relating to the day from its volume calculations for
The Exchange has not solicited, and
proposed rule change between the purposes of determining pricing tiers.
does not intend to solicit, comments on
Commission and any person, other than The text of the proposed rule change
this proposed rule change. The
those that may be withheld from the is available on the Exchange’s website at
Exchange has not received any written
public in accordance with the http://nasdaqphlx.cchwallstreet.com/,
comments from members or other
provisions of 5 U.S.C. 552, will be at the principal office of the Exchange,
interested parties.
available for website viewing and and at the Commission’s Public
III. Date of Effectiveness of the printing in the Commission’s Public Reference Room.
Proposed Rule Change and Timing for Reference Room, 100 F Street NE, II. Self-Regulatory Organization’s
Commission Action Washington, DC 20549 on official Statement of the Purpose of, and
The foregoing rule change has become business days between the hours of Statutory Basis for, the Proposed Rule
effective pursuant to Section 19(b)(3)(A) 10:00 a.m. and 3:00 p.m. Copies of the Change
of the Act 5 and paragraph (f) of Rule filing also will be available for
In its filing with the Commission, the
19b–4 6 thereunder. At any time within inspection and copying at the principal
Exchange included statements
60 days of the filing of the proposed rule office of the Exchange. All comments
concerning the purpose of and basis for
change, the Commission summarily may received will be posted without change.
the proposed rule change and discussed
temporarily suspend such rule change if Persons submitting comments are
any comments it received on the
it appears to the Commission that such cautioned that we do not redact or edit
proposed rule change. The text of these
action is necessary or appropriate in the personal identifying information from
statements may be examined at the
public interest, for the protection of comment submissions. You should
places specified in Item IV below. The
investors, or otherwise in furtherance of submit only information that you wish
Exchange has prepared summaries, set
the purposes of the Act. If the to make available publicly. All
forth in sections A, B, and C below, of
Commission takes such action, the submissions should refer to File
the most significant aspects of such
Commission will institute proceedings Number SR–CboeBZX–2018–083 and
statements.
to determine whether the proposed rule should be submitted on or before
change should be approved or December 21, 2018. A. Self-Regulatory Organization’s
disapproved. For the Commission, by the Division of Statement of the Purpose of, and
Trading and Markets, pursuant to delegated Statutory Basis for, the Proposed Rule
IV. Solicitation of Comments
Change
amozie on DSK3GDR082PROD with NOTICES1
authority.7
Interested persons are invited to
Eduardo A. Aleman, 1. Purpose
submit written data, views, and
Assistant Secretary.
arguments concerning the foregoing, The purpose of the proposed rule
including whether the proposed rule [FR Doc. 2018–26002 Filed 11–29–18; 8:45 am] change is to amend the Exchange’s
BILLING CODE 8011–01–P
5 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1).
6 17 CFR 240.19b–4(f). 7 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4.
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Document Created: 2018-11-30 04:35:59
Document Modified: 2018-11-30 04:35:59
| 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 61699 |
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