83 FR 8912 - Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend EDGX Rule 21.1(c) To Further Align the Exchange's Rules With That of Cboe BZX Exchange, Inc. as They Relate to the Equity Options Platform
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 41 (March 1, 2018)
Federal Register Volume 83, Issue 41 (March 1, 2018)
| Page Range | 8912-8913 | |
| FR Document | 2018-04127 |
[Federal Register Volume 83, Number 41 (Thursday, March 1, 2018)] [Notices] [Pages 8912-8913] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-04127] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82769; File No. SR-CboeEDGX-2018-006] Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend EDGX Rule 21.1(c) To Further Align the Exchange's Rules With That of Cboe BZX Exchange, Inc. as They Relate to the Equity Options Platform February 23, 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 February 13, 2018, Cboe EDGX Exchange, Inc. (the ``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 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 filed a proposal to amend Exchange Rule 21.1(c) to further align the Exchange's rules with the Rule 21.1(c) of Cboe BZX Exchange, Inc. (``BZX Options''), an options platform affiliated with the Exchange. (additions are italicized; deletions are [bracketed]) * * * * * Rules of Cboe EDGX Exchange, Inc. * * * * * Rule 21.1. Definitions The following definitions apply to Chapter XXI for the trading of options listed on EDGX Options. (a)-(b) (No change). (c) The term ``Order'' shall mean a single order submitted to the System by a User and shall include both Attributable and Non- Attributable Orders, as defined below. The System shall treat all Orders as Non-Attributable Orders unless a User has entered instructions to treat such Orders as [Non-]Attributable Orders. (1)-(2) (No change). (d)-(i) (No change). * * * * * 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 the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend Exchange Rule 21.1(c) to further align the Exchange's rules with the Rule 21.1(c) of Cboe BZX Exchange, Inc. (``BZX Options''), an options platform affiliated with the Exchange. Pursuant to EDGX Options Rule 21.1(c) the default treatment on EDGX Options is that an order is an Attributable Order unless a User directs otherwise. This is the opposite of BZX Options, which provides that the default treatment is that an order is a Non-Attributable Order unless a User directs otherwise. In order to align the Exchange's rules with BZX Options rules the Exchange seeks to amend EDGX Options Rule 21.1(c) to provide that an order is a Non-Attributable Order unless a User directs otherwise. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act \5\ in general, and furthers the objectives of Section 6(b)(5) of the Act \6\ in particular, in that it 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. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b). \6\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The proposed rule change does not propose to implement new or unique functionality that has not been previously filed with the Commission. The Exchange notes that the proposed rule text is based on BZX Options Rule 21.1(c). The proposed rule change is intended to further align BZX Options Rule 21.1(c) with the rules of BZX Options in order to provide consistent functionality across the Exchange and its affiliate. More consistent functionality between the Exchange and BZX Options will reduce complexity and may help to avoid potential confusion by Users of the Exchange that are also participants on BZX Options. As such, the proposed rule change will foster cooperation and coordination with persons engaged in facilitating transactions in securities and will remove impediments to and perfect the mechanism of a free and open market and national market system. [[Page 8913]] 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 notes that the proposal will provide consistent functionality between EDGX Options and BZX Options, thereby potentially reducing complexity and providing improvements to rules to avoid potential confusion by Users of the Exchange that are also participants on BZX Options. As noted elsewhere in the proposal, the Exchange is not proposing any new or unique functionality that has not been previously filed with the Commission. Thus, the Exchange does not believe the proposal creates any significant impact on competition. 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: (A) Significantly affect the protection of investors or the public interest; (B) impose any significant burden on competition; and (C) by its terms, 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) of the Act \7\ and paragraph (f)(6) of Rule 19b-4 thereunder,\8\ the Exchange has designated this rule filing as non-controversial. The Exchange has given 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. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78s(b)(3)(A). \8\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- 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: (1) Necessary or appropriate in the public interest; (2) for the protection of investors; or (3) 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-2018-006 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-2018-006. 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-2018-006, and should be submitted on or before March 22, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\9\ --------------------------------------------------------------------------- \9\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2018-04127 Filed 2-28-18; 8:45 am] BILLING CODE 8011-01-P
![8912 Federal Register / Vol. 83, No. 41 / Thursday, March 1, 2018 / Notices
options on VXX. The Commission notes 19b–4(f)(6)(iii) thereunder,4 which A. Self-Regulatory Organization’s
that Amendment No. 2 does not renders it effective upon filing with the Statement of the Purpose of, and the
otherwise modify the proposed rule Commission. The Commission is Statutory Basis for, the Proposed Rule
change, as modified by Amendment No. publishing this notice to solicit Change
1, which was subject to a full notice- comments on the proposed rule change 1. Purpose
and-comment period. Rather, from interested persons.
Amendment No. 2 serves to narrow the The Exchange proposes to amend
scope of the original proposal by I. Self-Regulatory Organization’s Exchange Rule 21.1(c) to further align
maintaining the existing position limit Statement of the Terms of Substance of the Exchange’s rules with the Rule
of 250,000 contracts for options on VXX. the Proposed Rule Change 21.1(c) of Cboe BZX Exchange, Inc.
Accordingly, the Commission finds (‘‘BZX Options’’), an options platform
The Exchange filed a proposal to affiliated with the Exchange.
good cause, pursuant to Section 19(b)(2) amend Exchange Rule 21.1(c) to further
of the Act,67 to approve the proposed Pursuant to EDGX Options Rule
align the Exchange’s rules with the Rule 21.1(c) the default treatment on EDGX
rule change, as modified by Amendment 21.1(c) of Cboe BZX Exchange, Inc.
Nos. 1 and 2, on an accelerated basis. Options is that an order is an
(‘‘BZX Options’’), an options platform Attributable Order unless a User directs
VII. Conclusion affiliated with the Exchange. otherwise. This is the opposite of BZX
It is therefore ordered, pursuant to (additions are italicized; deletions are Options, which provides that the default
Section 19(b)(2) of the Act,68 that the [bracketed]) treatment is that an order is a Non-
proposed rule change, as modified by Attributable Order unless a User directs
Amendment Nos. 1 and 2 (SR–CBOE– * * * * * otherwise. In order to align the
2017–057), be, and hereby is, approved Rules of Cboe EDGX Exchange, Inc. Exchange’s rules with BZX Options
on an accelerated basis. rules the Exchange seeks to amend
* * * * * EDGX Options Rule 21.1(c) to provide
For the Commission, by the Division of
Trading and Markets, pursuant to delegated that an order is a Non-Attributable
Rule 21.1. Definitions
authority.69 Order unless a User directs otherwise.
Robert W. Errett, The following definitions apply to 2. Statutory Basis
Deputy Secretary. Chapter XXI for the trading of options
listed on EDGX Options. The Exchange believes that its
[FR Doc. 2018–04128 Filed 2–28–18; 8:45 am] proposal is consistent with Section 6(b)
BILLING CODE 8011–01–P (a)–(b) (No change). of the Act 5 in general, and furthers the
(c) The term ‘‘Order’’ shall mean a objectives of Section 6(b)(5) of the Act 6
single order submitted to the System by in particular, in that it is designed to
SECURITIES AND EXCHANGE promote just and equitable principles of
a User and shall include both
COMMISSION trade, to foster cooperation and
Attributable and Non-Attributable
[Release No. 34–82769; File No. SR– Orders, as defined below. The System coordination with persons engaged in
CboeEDGX–2018–006] shall treat all Orders as Non- facilitating transactions in securities, to
Attributable Orders unless a User has remove impediments to and perfect the
Self-Regulatory Organizations; Cboe entered instructions to treat such Orders mechanism of a free and open market
EDGX Exchange, Inc.; Notice of Filing as [Non-]Attributable Orders. and a national market system and, in
and Immediate Effectiveness of a general, to protect investors and the
Proposed Rule Change To Amend (1)–(2) (No change).
public interest.
EDGX Rule 21.1(c) To Further Align the (d)–(i) (No change). The proposed rule change does not
Exchange’s Rules With That of Cboe * * * * * propose to implement new or unique
BZX Exchange, Inc. as They Relate to functionality that has not been
the Equity Options Platform The text of the proposed rule change
is available at the Exchange’s website at previously filed with the Commission.
February 23, 2018. www.markets.cboe.com, at the principal The Exchange notes that the proposed
Pursuant to Section 19(b)(1) of the office of the Exchange, and at the rule text is based on BZX Options Rule
Securities Exchange Act of 1934 (the Commission’s Public Reference Room. 21.1(c). The proposed rule change is
‘‘Act’’),1 and Rule 19b–4 thereunder,2 intended to further align BZX Options
notice is hereby given that on February II. Self-Regulatory Organization’s Rule 21.1(c) with the rules of BZX
13, 2018, Cboe EDGX Exchange, Inc. Statement of the Purpose of, and Options in order to provide consistent
(the ‘‘Exchange’’ or ‘‘EDGX’’) filed with Statutory Basis for, the Proposed Rule functionality across the Exchange and
the Securities and Exchange Change its affiliate. More consistent
Commission (‘‘Commission’’) the functionality between the Exchange and
In its filing with the Commission, the BZX Options will reduce complexity
proposed rule change as described in Exchange included statements
Items I, II, and III below, which Items and may help to avoid potential
concerning the purpose of and basis for confusion by Users of the Exchange that
have been prepared by the Exchange. the proposed rule change and discussed
The Exchange has designated this are also participants on BZX Options.
any comments it received on the As such, the proposed rule change will
proposal as a ‘‘non-controversial’’ proposed rule change. The text of these
proposed rule change pursuant to foster cooperation and coordination
statements may be examined at the with persons engaged in facilitating
Section 19(b)(3)(A) of the Act 3 and Rule
amozie on DSK30RV082PROD with NOTICES
places specified in Item IV below. The transactions in securities and will
67 15
Exchange has prepared summaries, set remove impediments to and perfect the
U.S.C. 78s(b)(2).
68 15
forth in Sections A, B, and C below, of mechanism of a free and open market
U.S.C. 78s(b)(2).
69 17 CFR 200.30–3(a)(12). the most significant parts of such and national market system.
1 15 U.S.C. 78s(b)(1). statements.
2 17 CFR 240.19b–4. 5 15 U.S.C. 78f(b).
3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b–4(f)(6)(iii). 6 15 U.S.C. 78f(b)(5).
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![Federal Register / Vol. 83, No. 41 / Thursday, March 1, 2018 / Notices 8913
B. Self-Regulatory Organization’s to determine whether the proposed rule For the Commission, by the Division of
Statement on Burden on Competition should be approved or disapproved. Trading and Markets, pursuant to delegated
authority.9
The Exchange does not believe that IV. Solicitation of Comments Robert W. Errett,
the proposed rule change will impose
any burden on competition that is not Interested persons are invited to Deputy Secretary.
necessary or appropriate in furtherance submit written data, views, and [FR Doc. 2018–04127 Filed 2–28–18; 8:45 am]
of the purposes of the Act. The arguments concerning the foregoing, BILLING CODE 8011–01–P
Exchange notes that the proposal will including whether the proposed rule
provide consistent functionality change is consistent with the Act.
between EDGX Options and BZX Comments may be submitted by any of SECURITIES AND EXCHANGE
Options, thereby potentially reducing the following methods: COMMISSION
complexity and providing Electronic Comments [Release No. 34–82765; File No. SR–Phlx–
improvements to rules to avoid 2018–16]
potential confusion by Users of the • Use the Commission’s internet
Exchange that are also participants on comment form (http://www.sec.gov/ Self-Regulatory Organizations; Nasdaq
BZX Options. As noted elsewhere in the rules/sro.shtml); or PHLX LLC; Notice of Filing and
proposal, the Exchange is not proposing • Send an email to rule-comments@ Immediate Effectiveness of Proposed
any new or unique functionality that sec.gov. Please include File Number SR– Rule Change To Amend Rule 1082 and
has not been previously filed with the CboeEDGX–2018–006 on the subject Eliminate Obsolete Language
Commission. Thus, the Exchange does line. Referring to Legacy Phlx XL System
not believe the proposal creates any
Paper Comments February 23, 2018.
significant impact on competition.
Pursuant to Section 19(b)(1) of the
C. Self-Regulatory Organization’s • Send paper comments in triplicate Securities Exchange Act of 1934
Statement on Comments on the to Secretary, Securities and Exchange (‘‘Act’’),1 and Rule 19b–4 thereunder,2
Proposed Rule Change Received From Commission, 100 F Street NE, notice is hereby given that on February
Members, Participants, or Others Washington, DC 20549–1090. 13, 2018, Nasdaq PHLX LLC (‘‘Phlx’’ or
No comments were solicited or All submissions should refer to File ‘‘Exchange’’) filed with the Securities
received on the proposed rule change. Number SR–CboeEDGX–2018–006. This and Exchange Commission (‘‘SEC’’ or
file number should be included on the ‘‘Commission’’) the proposed rule
III. Date of Effectiveness of the change as described in Items I, II, and
Proposed Rule Change and Timing for subject line if email is used. To help the
Commission process and review your III, below, which Items have been
Commission Action prepared by the Exchange. The
comments more efficiently, please use
Because the foregoing proposed rule only one method. The Commission will Commission is publishing this notice to
change does not: (A) Significantly affect post all comments on the Commission’s solicit comments on the proposed rule
the protection of investors or the public internet website (http://www.sec.gov/ change from interested persons.
interest; (B) impose any significant rules/sro.shtml). Copies of the
burden on competition; and (C) by its I. Self-Regulatory Organization’s
submission, all subsequent Statement of the Terms of Substance of
terms, become operative for 30 days amendments, all written statements
from the date on which it was filed or the Proposed Rule Change
with respect to the proposed rule
such shorter time as the Commission change that are filed with the The Exchange proposes to amend
may designate it has become effective Commission, and all written Rule 1082, as described below.
pursuant to Section 19(b)(3)(A) of the communications relating to the The text of the proposed rule change
Act 7 and paragraph (f)(6) of Rule 19b– proposed rule change between the is available on the Exchange’s website at
4 thereunder,8 the Exchange has Commission and any person, other than http://nasdaqphlx.cchwallstreet.com/,
designated this rule filing as non- at the principal office of the Exchange,
those that may be withheld from the
controversial. The Exchange has given and at the Commission’s Public
public in accordance with the
the Commission written notice of its Reference Room.
provisions of 5 U.S.C. 552, will be
intent to file the proposed rule change,
available for website viewing and II. Self-Regulatory Organization’s
along with a brief description and text
printing in the Commission’s Public Statement of the Purpose of, and
of the proposed rule change at least five
Reference Room, 100 F Street NE, Statutory Basis for, the Proposed Rule
business days prior to the date of filing
Washington, DC 20549, on official Change
of the proposed rule change, or such
business days between the hours of
shorter time as designated by the In its filing with the Commission, the
10:00 a.m. and 3:00 p.m. Copies of the
Commission. Exchange included statements
At any time within 60 days of the filing also will be available for
concerning the purpose of and basis for
filing of the proposed rule change, the inspection and copying at the principal
the proposed rule change and discussed
Commission summarily may office of the Exchange. All comments
any comments it received on the
temporarily suspend such rule change if received will be posted without change.
proposed rule change. The text of these
it appears to the Commission that such Persons submitting comments are
statements may be examined at the
action is: (1) Necessary or appropriate in cautioned that we do not redact or edit
places specified in Item IV below. The
the public interest; (2) for the protection personal identifying information from
Exchange has prepared summaries, set
amozie on DSK30RV082PROD with NOTICES
of investors; or (3) otherwise in comment submissions. You should
forth in sections A, B, and C below, of
furtherance of the purposes of the Act. submit only information that you wish
the most significant aspects of such
If the Commission takes such action, the to make available publicly. All
statements.
Commission shall institute proceedings submissions should refer to File
Number SR–CboeEDGX–2018–006, and 9 17 CFR 200.30–3(a)(12).
7 15 U.S.C. 78s(b)(3)(A). should be submitted on or before March 1 15 U.S.C. 78s(b)(1).
8 17 CFR 240.19b–4. 22, 2018. 2 17 CFR 240.19b–4.
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Document Created: 2018-02-28 23:58:23
Document Modified: 2018-02-28 23:58:23
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 83 FR 8912 |
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