83 FR 6302 - Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use on the Exchange's Equity Options Platform

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 30 (February 13, 2018)

Page Range		6302-6303
FR Document		2018-02856

Federal Register, Volume 83 Issue 30 (Tuesday, February 13, 2018)

[Federal Register Volume 83, Number 30 (Tuesday, February 13, 2018)]
[Notices]
[Pages 6302-6303]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2018-02856]

[[Page 6302]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82645; File No. SR-CboeEDGX-2018-004]

Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change Related
to Fees for Use on the Exchange's Equity Options Platform

February 7, 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 January 31, 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, II
and III below, which Items have been prepared by the Exchange. The
Exchange has designated the proposed rule change as one establishing or
changing a member due, fee, or other charge imposed by the Exchange
under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2)
thereunder,\4\ which renders the proposed rule change effective upon
filing with the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

The Exchange filed a proposal to amend the fee schedule applicable
to Members \5\ and non-Members of the Exchange pursuant to EDGX Rules
15.1(a) and (c).
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\5\ The term ``Member'' is defined as ``any registered broker or
dealer that has been admitted to membership in the Exchange.'' See
Exchange Rule 1.5(n).
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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 Exchange proposes to amend its fee schedule for its equity
options platform (``EDGX Options'') to decrease the Exchange's standard
rebate for Customer \6\ orders. Fee codes PC and NC are currently
appended to all Customer orders in Penny Pilot Securities \7\ and Non-
Penny Pilot Securities,\8\ respectively, and result in a standard
rebate of $0.05 per contract. The Exchange proposes to decrease the
standard rebate for all Customer orders in Penny Pilot Securities and
Non-Penny Pilot Securities to a standard rebate of $0.01 per contract.
In addition to reflecting the increase in the Fee Codes and Associated
Fees portion of the Exchange's fee schedule for fee codes PC and NC,
the Exchange proposes to replace references to the $0.05 rebate with
$0.01 rebate on the Standard Rates table with respect to fee codes PC
and NC. The Standard Rates table provides a range of rebates and fees
applicable to executions on the Exchange in summary form.
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\6\ The term ``Customer'' applies to any transaction identified
by a Member for clearing in the Customer range at the Options
Clearing Corporation (``OCC''), excluding any transaction for a
Broker Dealer or a ``Professional'' as defined in Exchange Rule
16.1.
\7\ The term ``Penny Pilot Security'' applies to those issues
that are quoted pursuant to Exchange Rule 21.5, Interpretation and
Policy .01.
\8\ The term ``Non-Penny Pilot Security'' applies to those
issues that are not Penny Pilot Securities quoted pursuant to
Exchange Rule 21.5, Interpretation and Policy .01.
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The Exchange proposes to implement these amendments to its fee
schedule on February 1, 2018.
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 of the Act.\9\
Specifically, the Exchange believes that the proposed rule change is
consistent with Section 6(b)(4) of the Act,\10\ in that it provides for
the equitable allocation of reasonable dues, fees and other charges
among members and other persons using any facility or system which the
Exchange operates or controls.
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\9\ 15 U.S.C. 78f.
\10\ 15 U.S.C. 78f(b)(4).
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The Exchange believes that its proposal to reduce the rebate
provided by fee code PF [sic] is fair and equitable and reasonable
because the proposed rebate remains consistent with pricing previously
offered by the Exchange as well as its competitors and does not
represent a significant departure from the Exchange's general pricing
structure. Specifically, the Exchange notes that it previously provided
a rebate of $0.01 per share to orders that yielded fee codes PC and NC
prior to increasing the rebate to its current level.\11\ In addition,
the lower rebate is more than that offered by Nasdaq BX, Inc. (``BX''),
which does not provide a standard rebate for similar orders.\12\
Therefore, the Exchange believes the rebate for Customer orders remains
consistent with pricing previously offered by the Exchange as well as
other options exchanges and does not represent a significant departure
from such pricing.
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\11\ See Securities Exchange Act Release No. 78062 (June 14,
2016), 81 FR 39981 (June 20, 2016) (SR-BatsEDGX-2016-21).
\12\ See Section 2 of the BX fee schedule available at http://www.nasdaqtrader.com/Micro.aspx?id=BXOptionsPricing.
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(B) Self-Regulatory Organization's Statement on Burden on Competition

The Exchange believes the proposed amendments to its fee schedule
would not impose any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. The Exchange
does not believe that the proposed changes represent a significant
departure from previous pricing offered by the Exchange or pricing
offered by the Exchange's competitors. Members may opt to disfavor the
Exchange's pricing if they believe that alternatives offer them better
value. Accordingly, the Exchange does not believe that the proposed
change will impair the ability of Members or competing venues to
maintain their competitive standing in the financial markets.

(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.

[[Page 6303]]

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 \13\ and paragraph (f) of Rule 19b-4
thereunder.\14\ 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.
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments

Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-CboeEDGX-2018-004 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-2018-004. 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-2018-004 and should be
submitted on or before March 6, 2018.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-02856 Filed 2-12-18; 8:45 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 83, No. 30 / Tuesday, February 13, 2018 / Notices 6303

III. Date of Effectiveness of the filing also will be available for subject to public disclosure under 5
Proposed Rule Change and Timing for inspection and copying at the principal U.S.C. 552b(c)(1) and the public interest
Commission Action office of the Exchange. All comments requires that such activities be withheld
The foregoing rule change has become received will be posted without change. from disclosure.
effective pursuant to Section 19(b)(3)(A) Persons submitting comments are RSVP Instructions. Prior notification
of the Act 13 and paragraph (f) of Rule cautioned that we do not redact or edit and a valid government-issued photo ID
19b–4 thereunder.14 At any time within personal identifying information from (such as driver’s license, passport, U.S.
60 days of the filing of the proposed rule comment submissions. You should Government or military ID) are required
change, the Commission summarily may submit only information that you wish for entrance into the Department of
temporarily suspend such rule change if to make available publicly. All State building. Members of the public
it appears to the Commission that such submissions should refer to File planning to attend the open meetings
action is necessary or appropriate in the Number SR–CboeEDGX–2018–004 and should RSVP, by the dates indicated
public interest, for the protection of should be submitted on or before March above, to Julie Fort, Office of the
investors, or otherwise in furtherance of 6, 2018. Historian (202–955–0214). When
the purposes of the Act. For the Commission, by the Division of responding, please provide date of birth,
Trading and Markets, pursuant to delegated valid government-issued photo
IV. Solicitation of Comments authority.15 identification number and type (such as
Interested persons are invited to Eduardo A. Aleman, driver’s license number/state, passport
submit written data, views, and Assistant Secretary. number/country, or U.S. Government ID
arguments concerning the foregoing, [FR Doc. 2018–02856 Filed 2–12–18; 8:45 am]
number/agency or military ID number/
including whether the proposed rule branch), and relevant telephone
BILLING CODE 8011–01–P
change is consistent with the Act. numbers. If you cannot provide one of
Comments may be submitted by any of the specified forms of ID, please consult
the following methods: with Julie Fort for acceptable alternative
DEPARTMENT OF STATE forms of picture identification.
Electronic Comments
[Public Notice: 10311] Personal data is requested pursuant to
• Use the Commission’s internet Public Law 99–399 (Omnibus
comment form (http://www.sec.gov/ Advisory Committee on Historical Diplomatic Security and Antiterrorism
rules/sro.shtml); or Diplomatic Documentation—Notice of Act of 1986), as amended; Public Law
• Send an email to rule-comments@ Rescheduled Meeting 107–56 (USA PATRIOT Act); and
sec.gov. Please include File Number SR– Executive Order 13356. The purpose of
CboeEDGX–2018–004 on the subject The Advisory Committee on
Historical Diplomatic Documentation the collection is to validate the identity
line. of individuals who enter Department
has rescheduled the previously
Paper Comments announced September 10–11 meeting facilities. Please see the Security
• Send paper comments in triplicate (see 82 FR 55150). The new dates for the Records System of Records Notice
to Secretary, Securities and Exchange meeting are August 27–28. (State-36) at https://www.state.gov/
Commission, 100 F Street NE, The committee will meet on August documents/organization/242611.pdf, for
Washington, DC 20549–1090. 27, 2018, in open session to discuss additional information.
unclassified matters concerning Questions concerning the meeting
All submissions should refer to File
declassification and transfer of should be directed to Reneé A. Goings,
Number SR–CboeEDGX–2018–004. This
Department of State records to the or Adam Howard, Department of State,
file number should be included on the
National Archives and Records Office of the Historian, Washington, DC
subject line if email is used. To help the
Administration and the status of the 20372, telephone (202) 955–0200, (email
Commission process and review your
comments more efficiently, please use Foreign Relations series. history@state.gov).
only one method. The Commission will The Committee will meet in open Note that requests for reasonable
post all comments on the Commission’s session from 11:00 a.m. until noon in accommodation received after the date
internet website (http://www.sec.gov/ SA–4D Conference Room, Department indicated in this notice will be
rules/sro.shtml). Copies of the of State, 2300 E Street NW, Washington, considered, but might not be possible to
submission, all subsequent DC 20372 (Potomac Navy Hill Annex). fulfill.
amendments, all written statements RSVP should be sent not later than Julie L. Fort,
with respect to the proposed rule August 20, 2018. Requests for Designated Federal Officer, Advisory
change that are filed with the reasonable accommodation should be Committee on Historical Diplomatic
Commission, and all written made by August 13, 2018. Requests Documentation.
communications relating to the made after that date will be considered, [FR Doc. 2018–02873 Filed 2–12–18; 8:45 am]
proposed rule change between the but might not be possible to fulfill. BILLING CODE 4710–11–P
Commission and any person, other than Closed Session. The Committee’s
those that may be withheld from the session in the afternoon of Monday,
public in accordance with the August 27, 2018; in the morning of
provisions of 5 U.S.C. 552, will be Tuesday, August 28, 2018, will be SURFACE TRANSPORTATION BOARD
available for website viewing and closed in accordance with Section 10(d)
[Docket No. EP 558 (Sub-No. 21)]
sradovich on DSK3GMQ082PROD with NOTICES

printing in the Commission’s Public of the Federal Advisory Committee Act
Reference Room, 100 F Street NE, (Pub. L. 92–463). The agenda calls for
review of classified documentation Railroad Cost of Capital—2017
Washington, DC 20549, on official
business days between the hours of concerning the Foreign Relations series AGENCY: Surface Transportation Board.
10:00 a.m. and 3:00 p.m. Copies of the and other declassification issues. These ACTION: Notice of decision instituting a
are matters properly classified and not proceeding to determine the railroad
13 15 U.S.C. 78s(b)(3)(A).
14 17
industry’s 2017 cost of capital.
CFR 240.19b–4(f). 15 17 CFR 200.30–3(a)(12).

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Document Created: 2018-02-13 02:32:31
Document Modified: 2018-02-13 02:32:31

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 6302