64618 Federal Register / Vol. 83, No. 241 / Monday, December 17, 2018 / Notices 

21 15 U.S.C. 78s(b)(3)(A). 

22 17 CFR 240.19b–4(f)(6). As required under Rule 

19b–4(f)(6)(iii), the Exchange provided the 

Commission with written notice of its intent to file 

the proposed rule change, along with a brief 

description and the 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. 

23 17 CFR 240.19b–4(f)(6)(iii). 

24See Approval Order, supra note 5. 

25For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

26 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A)(iii). 

4 17 CFR 240.19b–4(f)(6). 

municipal bond index that will enhance 

competition among market participants, 

to the benefit of investors and the 

marketplace. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to 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) of the Act 21 and Rule 19b– 

4(f)(6) thereunder.22

A proposed rule change filed under 

Rule 19b–4(f)(6) normally does not 

become operative for 30 days after the 

date of filing. However, Rule 19b– 

4(f)(6)(iii) 23 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. In its 

filing with the Commission, the 

Exchange requests that the Commission 

waive the 30-day operative delay such 

that the proposed rule change will 

become operative on the date the Trust 

implements the New Index for the 

Fund. 

The Exchange notes that the 

Commission previously approved a 

proposed rule change to allow the 

continued listing and trading of Shares 

on the Exchange based on the Current 

Index.24 The Exchange represents that 

the New Index is the sub-set of the 

Current Index with effective maturities 

of 1–25 years. The Exchange further 

represents that other than the 

substitution of the New Index for the 

Current Index, the continued listing 

requirements of the Shares will remain 

the same as those approved by the 

Commission in the Approval Order. The 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

continued listing requirements for the 

Shares will remain the same. Therefore, 

the Commission hereby waives the 30- 

day operative delay.25

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 

change 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 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– 

NYSEArca–2018–88 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–NYSEArca-2018–88. 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–NYSEArca–2018–88 and 

should be submitted on or before 

January 7, 2019. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.26

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2018–27207 Filed 12–14–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84787; File No. SR–C2– 

2018–024] 

Self-Regulatory Organizations; Cboe 

C2 Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Amending Provisions 

Related to Its Risk Monitor Mechanism 

December 11, 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 

30, 2018, Cboe C2 Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘C2’’) 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 Exchange filed the 

proposal as a ‘‘non-controversial’’ 

proposed rule change pursuant to 

Section 19(b)(3)(A)(iii) of the Act 3 and 

Rule 19b–4(f)(6) thereunder.4 The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 


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5The term ‘‘User’’ means any Trading Permit 

Holder or Sponsored User who is authorized to 

obtain access to the System pursuant to Rule 6.8. 

As discussed below, the Exchange is proposing to 

replace references to ‘‘User’’ in Rule 6.14(c)(5) with 

‘‘TPH’’. 

6The term ‘‘EFID’’ means an Executing Firm ID. 

The Exchange assigns an EFID to a Trading Permit 

Holder, which the System uses to identify the 

Trading Permit Holder and clearing number for the 

execution of orders and quotes submitted to the 

System with that EFID. See C2 Rule 6.8(b). 

7The system determines the percentage by 

calculating the percentage of a TPH’s [sic] 

outstanding contracts that executed on each side of 

the market during the time period or trading day, 

as applicable, and then summing the series 

percentages on each side in the underlying [sic]. 

8See Exchange Rule 1.1 (‘‘Trading Permit 

Holder’’ or ‘‘TPH’’). The term ‘‘Trading Permit 

Holder’’ or ‘‘TPH’’ mean an Exchange-recognized 

holder of a Trading Permit. A Trading Permit 

Holder is deemed a ‘‘member’’ under the Exchange 

Act. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Cboe C2 Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘C2’’) proposes to amend 

its provision related to its Risk Monitor 

Mechanism. The text of the proposed 

rule change is provided in Exhibit 5. 

The text of the proposed rule change 

is also available on the Exchange’s 

website (http://www.cboe.com/ 

AboutCBOE/CBOELegalRegulatory

Home.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 

Rule 6.14 which governs, among other 

things, the Risk Monitor Mechanism. 

Background 

By way of background, the Risk 

Monitor Mechanism providers Users 5

with the ability to manage their order 

and execution risk. Each User may 

establish limits for various parameters 

in the Exchange’s counting program. 

The system counts each of the following 

within a class (‘‘class limit’’) and across 

all classes for an EFID 6 (‘‘firm limit’’) 

over a User-established time period 

(‘‘interval’’) on a rolling basis up to five 

minutes (except as set forth in Rule 

6.14(c)(5)(A)(iv)) and on an absolute 

basis for a trading day (‘‘absolute 

limits’’): (i) Number of contracts 

executed (‘‘volume’’); (ii) notional value 

of executions (‘‘notional’’); (iii) number 

of executions (‘‘count’’); and (iv) 

number of contracts executed as a 

percentage of number of contracts 

outstanding within an Exchangedesignated time period or during the 

trading day, as applicable 

(‘‘percentage’’) 7 (collectively, ‘‘risk 

parameters’’). Additionally, when the 

system determines a risk parameter 

exceeds a User’s class limit within the 

interval or the absolute limit for the 

class, the Risk Monitor Mechanism 

cancels or rejects such User’s orders or 

quotes in all series of the class and 

cancels or rejects any additional orders 

or quotes from the User in the class 

until the counting program resets. 

Similarly, when the system determines 

a risk parameter exceeds a User’s firm 

limit within the interval or the absolute 

limit for the firm, the Risk Monitor 

Mechanism cancels or rejects such 

User’s orders or quotes in all classes and 

cancels or rejects any additional orders 

or quotes from the User in all classes 

until the counting program resets. 

Proposed Rule Change 

The Exchange proposes to amend 

Rule 6.14 to (i) make clarifying and 

miscellaneous non-substantive changes, 

(ii) provide the ability for Users [sic] to 

establish limits for a group of EFIDs, 

and (iii) adopt a new risk parameter. 

Clarifying and Miscellaneous Changes 

First, the Exchange proposes to 

eliminate the term ‘‘User’’ in Rule 

6.14(c)(5) and replace it with the term 

‘‘TPH’’ (which stands for Trading Permit 

Holder).8 The Exchange notes that the 

definition of User is broader than TPH, 

as it specifically captures Sponsored 

Users. The Exchange believes ‘‘TPH’’ is 

the more appropriate term to use with 

respect to the Risk Monitor Mechanism 

as the rule describes how the 

functionality works with respect to 

TPHs, and not necessarily Sponsored 

Users. The Exchange notes that it 

currently does not have any Sponsored 

Users, and to the extent it expects to 

have any in the future, it will revise the 

rule as needed to incorporate how the 

Risk Monitor Mechanism would 

function with respect to Sponsored 

Participants. The Exchange notes that 

‘‘User’’ will be referred to herein as 

‘‘TPH’’. 

Next, the Exchange proposes to 

eliminate the term ‘‘class’’ and replace 

it with ‘‘underlying’’. Specifically, the 

Exchange notes that the Risk Monitor 

Mechanism is configured to count the 

risk parameters across underlying 

securities or indexes. As an example, 

any option related to Apple (AAPL), 

would be considered to have the same 

underlying. Accordingly, if a corporate 

action resulted in AAPL1, AAPL and 

APPL1 one [sic] would be considered to 

share the same underlying symbol 

AAPL. Only a single symbol-level rule 

for underlying AAPL would be 

configurable by the Risk Monitor 

Mechanism. The Exchange notes that 

the term ‘‘underlying’’ is also utilized in 

the Exchange’s technical specification 

documents. The Exchange therefore 

believes underlying is a more accurate 

term to use. 

The Exchange also proposes to 

eliminate the requirement that the 

‘‘interval’’ time periods be on a rolling 

basis up to five minutes. The Exchange 

notes that its system is not configured 

to limit intervals to 5 minutes and as 

such believes the proposal to eliminate 

the language will alleviate confusion 

and more accurately reflect current 

functionality. 

The Exchange also proposes to clarify 

and codify what were to occur in the 

event a TPH does not reactivate its 

ability to send quotes or orders after its 

configured risk parameter limits have 

been reached. Currently, subparagraph 

(c)(5)(D) of Rule 6.14 governs how the 

counting program is reset. In the event 

an underlying limit, EFID limit or EFID 

Group limit (as proposed), is exceeded, 

the rules provide that the System will 

not accept new orders or quotes from 

that TPH (in a underlying, from an 

EFID, or EFID Group, as applicable) 

until the TPH instructs the System or 

Exchange, as applicable, to reset the 

counting program. The Exchange 

proposes to add new subparagraph 

(c)(5)(D)(v) to explicitly provide that if 

the Exchange cancels all of a TPH’s 

quotes and orders resting in the Book, 

and the TPH does not reactivate its 

ability to send quotes or orders, the 

block will be in effect only for the 

trading day that the TPH reached its 

underlying, EFID and/or EFID Group 

limit. The Exchange notes this is not a 

substantive change, but rather current 

practice, and that its affiliated 

Exchange, Cboe Options, includes 


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9See Cboe Options Rule 8.18. 

10An EFID may not belong to more than one EFID 

Group. The Exchange notes that the Users [sic] 

determine how many, if any, EFID Groups to 

establish and determine which EFIDs belong to a 

particular EFID Group, if any. 

11See Cboe Options Rule 8.18. 

12See Cboe Options Rule 8.18, which provides 

that a Hybrid Market Maker or a TPH Organization 

may specify a maximum number of Quote Risk 

Monitor Mechanism (‘‘QRM’’) QRM Incidents on an 

Exchange-wide basis. 

13 15 U.S.C. 78f(b). 

14 15 U.S.C. 78f(b)(5). 

15 Id. 

similar language in its rules.9 The 

Exchange believes adding this provision 

to the rules provides further 

transparency in its rules and reduces 

potential confusion as to what would 

happen in the situation where a TPH 

fails to reset the counting program. 

The Exchange also proposes to add 

language regarding resets from its 

affiliated Exchanges’ rules governing 

their Risk Monitor Mechanism 

functionality, which is substantively the 

same as the Risk Monitor Mechanism 

functionality on C2. Particularly, Cboe 

EDGX and Cboe BZX Rule 21.16(d) 

currently provides that the System will 

reset the counting period for absolute 

limits when a TPH refreshes its risk 

limit thresholds and the System will 

reset the counting program and 

commence a new interval time period 

when (i) a previous interval time period 

has expired and a transaction occurs in 

any series of a underlying [sic] or (ii) a 

TPH refreshes its risk limit thresholds 

prior to the expiration of the interval 

time period. The Exchange proposes to 

add this language under subparagraph 

(D)(vi) of C2 Rule 6.14(c)(5) (‘‘Counting 

Program Reset’’), which provision 

would govern ‘‘other resets’’ (i.e., resets 

that are not a result from a limit being 

reached). The Exchange believes adding 

this provision to C2’s rules provides 

transparency in the rules that TPH’s 

may refresh their limits for both 

absolute and interval time periods 

(which results in a ‘‘reset of the 

counting program’’) and also clarifies 

that the interval time periods are reset 

after the prior interval time period 

ended and a transaction in a series of a 

underlying occurred. The Exchange 

notes this is not a substantive change, 

but rather current practice. The 

Exchange believes adding this provision 

to the rules provides further 

transparency in its rules and reduces 

potential confusion as to whether a TPH 

can refresh its limits and when interval 

time periods commence. 

The Exchange also proposes to 

include language from BZX and EDGX 

Rule 21.16(e) that provides that a TPH 

may engage the Risk Monitor 

Mechanism to cancel resting bids and 

offers, as well as subsequent orders as 

set forth in Rule 6.14(c)(7), which adds 

transparency in the rules that the Risk 

Monitor Mechanism may be utilized in 

this context. The Exchange notes this is 

not a substantive change, but rather 

current practice. 

The Exchange also proposes other 

non-substantive clarifying changes. For 

example, the Exchange proposes to 

replace references to ‘‘firm limit’’ with 

‘‘EFID limit’’; clarify that resets will 

occur when limits are reached, instead 

of ‘‘exceeded’’; and replace certain 

references to ‘‘User’’ with ‘‘EFID’’. The 

Exchange notes that the proposed 

changes do not reflect a change in 

practice, but rather are intended to 

adopt language the Exchange believes is 

more accurate and would be less 

confusing to investors. 

EFID Groups 

The Exchange next proposes to 

provide in the rules that in addition to 

underlying limits and EFID limits, the 

System will be able to count each of the 

risk parameters across all underlyings 

for a group of EFIDs (‘‘EFID 

Group’’)(‘‘EFID Group limit’’).10 Similar 

to when a underlying limit or EFID limit 

are reached, when a TPH’s EFID 

Group(s) limit is reached, the Risk 

Monitor Mechanism will cancel or reject 

such TPH’s orders or quotes in all 

underlyings and cancel or reject any 

additional orders or quotes from any 

EFID within the EFID Group(s) in all 

underlyings until the counting program 

resets. The System will not accept new 

orders or quotes from any EFID within 

an EFID Group after an EFID Group 

limit is reached until the TPH manually 

notifies the Trade Desk to reset the 

counting program for the EFID Group, 

unless the TPH instructs the Exchange 

to permit it to reset the counting 

program by submitting an electronic 

message to the System. The Exchange 

believes each TPH is in the best position 

to determine risk settings appropriate 

for its firm based on its trading activity 

and business needs and that it may be 

based on a single EFID or EFID 

Group(s). The Exchange notes that its 

affiliate Exchange, Cboe Exchange, Inc. 

(‘‘Cboe Options’’) similarly allows its 

members to set similar risk parameters 

at the acronym-level (which is similar to 

an EFID) or firm level (similar to an 

EFID Group).11

New Risk Parameter 

The Exchange lastly proposes to adopt 

a new risk parameter. Specifically, 

under the proposed functionality, a TPH 

may specify a maximum number of 

times that the risk parameters (i.e., 

volume, notional, count and/or 

percentage) are reached over a specified 

interval or absolute period (‘‘risk trips’’). 

When a risk trip limit has been reached, 

the Risk Monitor Mechanism will cancel 

or reject a TPH’s orders or quotes 

pursuant to subparagraph (c)(5)(B) of 

Rule 6.14. The Exchange notes that a 

similar risk parameter (i.e., a parameter 

based on the number of risk ‘‘incidents’’ 

that occur over a specified time) is 

available on its affiliate Exchange, Cboe 

Options.12 The Exchange believes the 

proposed changes to its Risk Monitor 

Mechanism rule sufficiently allows 

TPHs to adjust and adopt parameter 

inputs in accordance with their business 

models and risk management needs. 

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.13 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 14 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) 15 requirement that 

the rules of an exchange not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

First, the Exchange believes its 

changes to codify existing functionality 

alleviates potential confusion, provides 

transparency in the rules and makes the 

rules easier to read. For example, the 

proposal to remove the reference to the 

requirement that the interval time 

periods be on a rolling basis up to five 

minutes alleviates confusion as the 

system is in fact not configured to have 

a five minute limit. Providing language 

regarding (i) a TPH’s failure to reset or 

initiate a reset of the counting program, 

(ii) other resets due to a TPH’s refresh 

of its limits or a new interval time 

period commencing and (iii) the use of 

the Risk Monitor Mechanism with 

respect to C2 Rule 6.14(c)(7), provides 


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16See Cboe Options Rule 8.18. 

17See Cboe Options Rule 8.18. 

18 15 U.S.C. 78s(b)(3)(A). 

19 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires a self-regulatory organization to 

give the Commission written notice of its intent to 

file the proposed rule change, along with a brief 

description and text of the proposed rule change, 

at least five business days prior to the date of filing 

of the proposed rule change, or such shorter time 

as designated by the Commission. The Exchange 

has satisfied this requirement. 

20 17 CFR 240.19b–4(f)(6). 

21 17 CFR 240.19b–4(f)(6)(iii). 

22For purposes only of waiving the 30-day 

operative delay, the Commission also has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

transparency in the rules as to what 

occurs in those situations, harmonizes 

rule language with that of the 

Exchange’s affiliated Exchanges, and 

reduces potential confusion. The 

alleviation of confusion removes 

impediments to, and perfects the 

mechanism of, a free and open market 

and a national market system, and, in 

general, protects investors and the 

public interest. Similarly, the Exchange 

believes using the term ‘‘underlying’’ 

instead of ‘‘class’’ and ‘‘TPH’’ instead of 

‘‘User’’ alleviates potential confusion as 

the proposed terms more accurately 

reflect how the Risk Monitor 

Mechanism operates. 

The Exchange believes providing 

TPHs the ability to configure certain risk 

parameters across underlyings for an 

EFID Group is also appropriate because 

it permits a TPH to protect itself from 

inadvertent exposure to excessive risk 

on an additional level (i.e., on an EFID 

group-level, not just underlying- or 

EFID-level). Reducing such risk will 

enable TPHs to enter quotes and orders 

with protection against inadvertent 

exposure to excessive risk, which in 

turn will benefit investors through 

increased liquidity for the execution of 

their orders. Such increased liquidity 

benefits investors because they may 

receive better prices and because it may 

lower volatility in the options market. 

The Exchange also believes each TPH is 

in the best position to determine risk 

settings appropriate for its firm based on 

its trading activity and business needs 

and that that may be based on an EFID 

Group(s). Additionally, as discussed 

above, Cboe Options similarly allows its 

TPHs to set risk parameters at the 

acronym-level (which is similar to an 

EFID) or firm-level (similar to an EFID 

Group).16

Lastly, the Exchange believes the 

proposal to adopt the new risk 

parameter based on number of times a 

risk parameter or group of risk 

parameters are reached will provide 

TPHs with an additional tool for 

managing risks. Furthermore, as noted 

above, the Exchange’s affiliated 

exchange offers similar functionality.17

Overall, the proposed rule change 

provides TPHs more protections that 

reduce the risks from potential system 

errors and market events. As a result, 

the proposed changes, including the 

new risk parameter for the Risk Monitor 

Mechanism, have the potential to 

promote just and equitable principles of 

trade. Additionally, the proposed 

changes apply to all TPHs. 

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. Rather, the 

Exchange believes that the proposed 

changes with respect to its Risk Monitor 

Mechanism help promote fair and 

orderly markets and provide clarity and 

transparency the Rule. For example, the 

proposed rule change adds an 

additional risk control parameter and 

flexibility to help further prevent 

potentially erroneous executions, which 

benefits all market participants. The 

proposed changes apply uniformly to all 

TPHs and the Exchange notes that the 

proposed changes apply to all quotes 

and orders in the same manner. 

Additionally, the Exchange does not 

believe that the proposed rule change 

will impose any burden on intermarket 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act because the 

proposed enhancements apply only to 

trading on the Exchange. Additionally, 

the Exchange notes that it is voluntary 

for the TPHs to determine whether to 

make use of the new enhancements of 

the Risk Monitor Mechanism. To the 

extent that the proposed changes may 

make the Exchange a more attractive 

trading venue for market participants on 

other exchanges, such market 

participants may elect to become 

Exchange market participants. 

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) of the Act 18 and Rule 19b– 

4(f)(6) thereunder.19

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act 20 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6)(iii) 21

permits the Commission to designate a 

shorter time if such action is consistent 

with the protection of investors and the 

public interest. The Exchange has asked 

the Commission to waive the 30-day 

operative delay to provide TPHs with 

additional tools and greater flexibility 

for managing their potential risk as soon 

as possible. Accordingly, 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 

operative delay and designates the 

proposal as operative upon filing.22

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 shall institute proceedings 

to determine whether the proposed rule 

change 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 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– 

C2–2018–024 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. 


amozie on DSK3GDR082PROD with NOTICES1
64622 Federal Register / Vol. 83, No. 241 / Monday, December 17, 2018 / Notices 

23 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A)(iii). 

4 17 CFR 240.19b–4(f)(6). 

5The Exchange notes that the Commission 

previously approved a proposal to list and trade 

shares of the Fund on Arca. See Securities 

Exchange Act Release No. 73004 (September 5, 

2014), 79 FR 54333 (September 11, 2014) (SR– 

NYSEArca–2014–76) (the ‘‘Prior Proposal’’). This 

proposal is substantively identical to the Prior 

Proposal and the issuer represents that all material 

representations contained within the Prior Proposal 

remain true. As further described below, the 

Exchange believes that its surveillance procedures 

are adequate to properly monitor the trading of the 

Shares on the Exchange during all trading sessions 

and to deter and detect violations of Exchange rules 

and the applicable federal securities laws. Trading 

of the Shares through the Exchange will be subject 

to the Exchange’s surveillance procedures for 

derivative products, including Managed Fund 

Shares. 

6The Commission approved BZX Rule 14.11(i) in 

Securities Exchange Act Release No. 65225 (August 

30, 2011), 76 FR 55148 (September 6, 2011) (SR– 

BATS–2011–018). 

7The Exchange notes that the Commission 

previously approved a proposal to list and trade 

shares of the Fund on Arca. See Securities 

Exchange Act Release No. 73004 (September 5, 

2014), 79 FR 54333 (September 11, 2014) (SR– 

NYSEArca–2014–76) (the ‘‘Prior Proposal’’). This 

proposal is substantively identical to the Prior 

Proposal and the issuer represents that all material 

representations contained within the Prior Proposal 

remain true. As further described below, the 

Exchange believes that its surveillance procedures 

are adequate to properly monitor the trading of the 

Shares on the Exchange during all trading sessions 

and to deter and detect violations of Exchange rules 

and the applicable federal securities laws. Trading 

of the Shares through the Exchange will be subject 

to the Exchange’s surveillance procedures for 

derivative products, including Managed Fund 

Shares. 

8The Commission approved BZX Rule 14.11(i) in 

Securities Exchange Act Release No. 65225 (August 

30, 2011), 76 FR 55148 (September 6, 2011) (SR– 

BATS–2011–018). 

9The Trust is registered under the 1940 Act. On 

September 21, 2018, the Trust filed an amendment 

to the Trust’s registration statement on Form N–1A 

under the Securities Act of 1933 (the ‘‘1933 Act’’) 

(15 U.S.C. 77a), and under the 1940 Act relating to 

the Fund (File Nos. 333–180879 and 811–22704) 

(the ‘‘Registration Statement’’). The description of 

the operation of the Trust and the Fund herein is 

based, in part, on the Registration Statement. In 

addition, the Commission has issued an order 

granting certain exemptive relief to the Trust under 

the 1940 Act. See Investment Company Act Release 

No. 30340 (January 4, 2013) (‘‘Exemptive Order’’). 

Investments made by the Fund will comply with 

the conditions set forth in the Exemptive Order. 

All submissions should refer to File 

Number SR–C2–2018–024. 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 such 

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–C2–2018–024, and should 

be submitted on or before January 7, 

2019. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.23

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2018–27203 Filed 12–14–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84789; File No. SR– 

CboeBZX–2018–085] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To List Shares 

of the Cambria Global Momentum ETF 

Under Rule 14.11(i), Managed Fund 

Shares 

December 11, 2018. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on November 

28, 2018, Cboe BZX Exchange, Inc. 

(‘‘Exchange’’ or ‘‘BZX’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Exchange filed the 

proposal as a ‘‘non-controversial’’ 

proposed rule change pursuant to 

Section 19(b)(3)(A)(iii) of the Act 3 and 

Rule 19b–4(f)(6) thereunder.4 The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to list shares 

of the Cambria Global Momentum ETF 

(the ‘‘Fund’’) under Rule 14.11(i), 

(‘‘Managed Fund Shares’’),5 which 

governs the listing and trading of 

Managed Fund Shares on the 

Exchange.6 The Exchange notes that the 

Fund is currently listed on Arca and the 

Shares are already trading on the 

Exchange pursuant to unlisted trading 

privileges, as provided in Rule 14.11(j). 

The text of the proposed rule change 

is also available on the Exchange’s 

website (www.cboe.com), 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 list shares 

of the Cambria Global Momentum ETF 

(the ‘‘Fund’’) under Rule 14.11(i), 

(‘‘Managed Fund Shares’’),7 which 

governs the listing and trading of 

Managed Fund Shares on the 

Exchange.8 The Exchange notes that the 

Fund is currently listed on Arca and the 

Shares are already trading on the 

Exchange pursuant to unlisted trading 

privileges, as provided in Rule 14.11(j). 

The Shares are offered by the Cambria 

ETF Trust (the ‘‘Trust’’), a Delaware 

statutory trust which is registered with 

the Commission as an open-end 

management investment company.9

Description of the Shares and the Fund 

Cambria Investment Management, 

L.P. (‘‘Cambria’’ or the ‘‘Adviser’’) 

serves as the investment adviser of the 

Fund. SEI Investments Distribution Co. 

(the ‘‘Distributor’’) is the principal 


amozie on DSK3GDR082PROD with NOTICES1