Federal Register / Vol. 83, No. 245 / Friday, December 21, 2018 / Notices 65777 

32 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See EDGX Rule 11.21(a)(1). A ‘‘Retail Order’’ is 

an agency or riskless principal order that meets the 

criteria of FINRA Rule 5320.03 that originates from 

a natural person and is submitted to the Exchange 

by a Retail Member Organization, provided that no 

change is made to the terms of the order with 

respect to price or side of market and the order does 

not originate from a trading algorithm or any other 

computerized methodology. See EDGX Rule 

11.21(a)(2). 

4 ‘‘ZA’’ is associated with Retail Orders that add 

liquidity. 

5ADAV means average daily added volume 

calculated as the number of shares added per day 

and ADV means average daily volume calculated as 

the number of shares added to, removed from, or 

routed by, the Exchange, or any combination or 

subset thereof, per day. ADAV and ADV is 

calculated on a monthly basis. 

The Exchange excludes from its calculation of 

ADAV and ADV shares added, removed, or routed 

on any day that the Exchange’s system experiences 

a disruption that lasts for more than 60 minutes 

during Regular Trading Hours (‘‘Exchange System 

Disruption’’), on any day with a scheduled early 

market close, and on the last Friday in June (the 

‘‘Russell Reconstitution Day’’). 

With prior notice to the Exchange, a Member may 

aggregate ADAV and ADV with other Members that 

control, are controlled by, or are under common 

control with such Member (as evidenced on such 

Member’s Form BD). 

6TCV means total consolidated volume 

calculated as the volume reported by all exchanges 

and trade reporting facilities to a consolidated 

transaction reporting plan for the month for which 

the fees apply. 

The Exchange excludes from its calculation of 

TCV volume on any day that the Exchange 

experiences an Exchange System Disruption, on any 

day with a scheduled early market close, and the 

Russell Reconstitution Day. 

7 ‘‘B’’ is associated with displayed orders that add 

liquidity on EDGX for Tape B. 

8 ‘‘V’’ is associated with displayed orders that add 

liquidity on EDGX for Tape A. 

9 ‘‘Y’’ is associated with displayed orders that add 

liquidity on EDGX for Tape C. 

10 ‘‘3’’ is associated with displayed orders that 

add liquidity on EDGX for Tape A or C during the 

post-market or pre-market trading sessions. 

11 ‘‘4’’ is associated with displayed orders that 

add liquidity on EDGX for Tape B during the postmarket or pre-market trading sessions. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.32

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2018–27612 Filed 12–20–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84832; File No. SR– 

CboeEDGX–2018–059] 

Self-Regulatory Organizations; Cboe 

EDGX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change Relating To 

Amend the Exchange’s Fee Schedule 

Applicable to Its Equities Trading 

Platform 

December 17, 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 December 

3, 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 

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 

Cboe EDGX Exchange, Inc. (‘‘EDGX’’ 

or the ‘‘Exchange’’) is filing with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) a proposed rule 

change to amend the Exchange’s fee 

schedule applicable to its equities 

trading platform (‘‘EDGX Equities’’) to 

introduce: (1) A ‘‘Retail Volume Tier’’ 

for firms that execute a significant 

volume of liquidity providing retail 

order flow on EDGX, and (2) a ‘‘Step-Up 

Tier’’ based on growth in the member’s 

liquidity provided on EDGX. 

The text of the proposed changes to 

the fee schedule are attached as 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 purpose of the proposed rule 

change is to amend the EDGX Equities 

fee schedule to introduce: (1) A ‘‘Retail 

Volume Tier’’ for firms that execute a 

significant volume of liquidity 

providing retail order flow on EDGX, 

and (2) a ‘‘Step-Up Tier’’ based on 

growth in the member’s liquidity 

provided on EDGX. The Exchange 

believes that both of the proposed 

changes would encourage more 

liquidity and opportunities for investors 

to trade on the Exchange. 

I. Retail Volume Tier 

A ‘‘Retail Member Organization’’ or 

‘‘RMO’’ is a member (or a division 

thereof) that has been approved by the 

Exchange to submit Retail Orders.3 Due 

to the intense competition for retail 

order flow, the Exchange provides 

special pricing for Retail Orders as an 

incentive for members to bring such 

orders to EDGX instead of another 

exchange or off-exchange venue. 

Specifically, Retail Orders that add 

liquidity and yield fee code ZA 4

currently benefit from an enhanced 

rebate of $0.0032 per share. The 

Exchange is interested in attracting 

additional retail order flow, and 

therefore proposes to introduce a Retail 

Volume Tier that is designed to 

encourage more retail participation. The 

Retail Volume Tier would provide 

further enhanced rebates to liquidity 

providing Retail Orders, provided that 

the member executes a specified average 

daily volume (‘‘ADV’’) 5 in such orders 

on EDGX. As proposed, a Retail Order 

that adds liquidity under fee code ZA 

would be eligible for a rebate of $0.0037 

per share if the member’s ADV in Retail 

Orders that add liquidity (i.e., yielding 

fee code ZA) is greater than or equal to 

0.35% of Total Consolidated Volume 

(‘‘TCV’’).6

II. Step-Up Tier 

Currently, the EDGX Equities fee 

schedule contains six Add Volume Tiers 

that provide enhanced rebates, ranging 

from of $0.0025 to $0.0032 per share, for 

displayed orders that add liquidity in 

Tapes A, B, and C and yield fee codes 

B,7 V,8 Y,9 3 10 and 4.11 To encourage 

market participants to provide more 

liquidity on EDGX, the Exchange 

proposes to introduce a seventh Add 

Volume Tier that is based on the growth 

in liquidity providing orders that the 

member executes on EDGX—i.e., the 

‘‘Step-Up Tier.’’ As proposed, the 

Exchange would provide rebate of 

$0.0033 per share for displayed orders 

that add liquidity to members that 

execute a Step-Up Add TCV from 

October 2018 that is equal to or greater 


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65778 Federal Register / Vol. 83, No. 245 / Friday, December 21, 2018 / Notices 

12 15 U.S.C. 78f. 

13 15 U.S.C. 78f(b)(4). 

14See Arca Equities Fees and Charges, Trade 

Related Fees and Credits, Retail Order Tier and 

Retail Order Step-Up Tiers. 15See Securities Exchange Act Release No. 77394 

(March 17, 2016), 81 FR 15596 (March 23, 2016) 

(SR–BatsEDGX–2016–02). 

16See Securities Exchange Act Release No. 80034 

(February 14, 2017), 82 FR 11275 (February 21, 

2017) (SR–BatsEDGX–2017–09). 

than 0.35%. As currently defined in the 

EDGX Equities fee schedule, Step-Up 

Add TCV means ADAV as a percentage 

of TCV in the relevant baseline month 

subtracted from current ADAV as a 

percentage of TCV. Members that 

achieve the proposed Step-Up Tier must 

therefore increase the amount of 

liquidity that they provide on EDGX, 

thereby contributing to a deeper and 

more liquid market. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6 of the Act,12 in general, and 

furthers the requirements of Section 

6(b)(4),13 in particular, as it is designed 

to provide for the equitable allocation of 

reasonable dues, fees and other charges 

among its members and other persons 

using its facilities. Specifically, the 

Exchange believes that the proposed 

changes to the EDGX Equities fee 

schedule are appropriately designed to 

encourage market participants to send 

additional liquidity providing orders to 

the Exchange, and thereby contribute to 

a vibrant and competitive market. 

Volume-based rebates such as those 

proposed herein have been widely 

adopted by equities exchanges, and 

provide benefits to market participants 

that are reasonably related to: (i) The 

value to an exchange’s market quality; 

(ii) associated higher levels of market 

activity, such as higher levels of 

liquidity provision and/or growth 

patterns; and (iii) introduction of higher 

volumes of orders into the price and 

volume discovery processes. As 

described in more detail below, the 

Exchange believes that the proposed 

tiers are reasonable, equitable, and not 

unfairly discriminatory as they will 

continue to provide members with an 

incentive to provide more liquidity on 

EDGX, to the benefit of investors. 

I. Retail Volume Tier 

The Exchange currently provides 

pricing incentives to Retail Member 

Organizations that execute liquidity 

providing Retail Orders on EDGX, and 

desires to further enhance those 

incentives in order to encourage 

additional retail participation. The 

proposed Retail Volume Tier would 

achieve that result by providing a higher 

rebate to Retail Orders that provide 

liquidity if submitted by a member that 

executes a significant volume of 

liquidity providing Retail Orders on 

EDGX. NYSE Arca, Inc. (‘‘Arca’’) also 

operates a similar volume-based rebate 

program that provides tiered rebates of 

up to $0.0035 [sic] per share to attract 

retail order flow.14

The Exchange believes that the 

proposed Retail Volume Tier is 

reasonable and equitable as it would 

allow EDGX to effectively compete for 

retail order flow with Arca as well as 

other exchanges and the many offexchange venues that execute the 

majority of retail order flow today. The 

Exchange previously offered volume 

based incentives for Retail Orders. That 

program, which was discontinued in 

March 2016 when the Exchange 

increased the base rebate for Retail 

Orders that add liquidity,15 was 

substantially similar to the one 

proposed herein, except that both the 

rebate amount and the volume required 

to achieve that rebate were lower than 

proposed today. The Exchange believes 

that the current proposal is 

appropriately designed to attract Retail 

Orders to EDGX given the high degree 

of competition for such orders in today’s 

market. The Exchange believes that 

attracting liquidity in Retail Orders 

would incentivize other members to 

send order flow to EDGX to trade with 

such Retail Orders. In addition, the 

Exchange believes that this increased 

liquidity would potentially stimulate 

further price competition for Retail 

Orders, thereby deepening the 

Exchange’s liquidity pool in both and 

retail and other orders, supporting the 

quality of price discovery, and 

promoting market transparency. 

The Exchange also believes that the 

proposed Retail Volume Tier is not 

unfairly discriminatory because it 

applies equally to all members that 

execute liquidity providing Retail 

Orders and meet the specified volume 

threshold. Retail Member Organizations 

that do not meet the proposed volume 

threshold would continue to earn the 

current rebate, which already provides a 

significant incentive for executing retail 

order flow on EDGX. The Exchange 

believes that it is appropriate to limit 

the proposed enhanced rebates to Retail 

Orders as the Exchange is attempting to 

increase retail participation. Retail 

participation is more likely to reflect 

long-term investment intentions, and 

may therefore positively impact market 

quality. Accordingly, the presence of 

Retail Orders on EDGX has the potential 

to benefit all market participants. As 

explained in the purpose section of this 

proposed rule change, competition for 

retail order flow is particularly fierce, 

with Arca also providing a high rebate 

to market participants that execute a 

significant amount of such orders on 

that exchange. In that context, the 

Exchange believes that it is appropriate 

to provide additional incentives to 

Retail Orders in order to attract that 

order flow. 

II. Step-Up Tier 

The Exchange believes the proposed 

Step-Up Tier is a reasonable means to 

encourage members to increase the 

liquidity that they provide on EDGX 

based on increasing their volume above 

a predetermined baseline. The Exchange 

has previously offered similar 

incentives that were designed to 

encourage additional growth in liquidity 

provided on EDGX,16 and believes that 

introducing such a tier again would be 

helpful in attracting liquidity to the 

Exchange to the benefit of all market 

participants. Deepening the Exchange’s 

liquidity pool benefits investors by 

encouraging more price competition and 

providing additional opportunities to 

trade. The Exchange believes that the 

proposed new tier represents an 

equitable allocation of reasonable dues, 

fees, and other charges because the 

thresholds necessary to achieve the tier 

encourages members to add increased 

liquidity to EDGX each month. 

Furthermore, the Exchange believes that 

the proposed Step-Up Tier is not 

unfairly discriminatory as it applies 

uniformly to all members that increase 

the volume of liquidity that they 

provide on EDGX. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change would result 

in any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. Rather, the 

proposed changes are designed to 

enhance competition by attracting 

additional liquidity and increasing the 

competitiveness of the Exchange. The 

proposed rebate tiers would apply to all 

members uniformly based on the 

amount and type of order flow that they 

route to EDGX. The Exchange operates 

in a highly-competitive market in which 

market participants can readily direct 

order flow to competing venues if they 

deem fee levels at a particular venue to 

be excessive. The proposed rule change 

reflects a competitive pricing structure 

designed to encourage market 

participants to direct their order flow to 

the Exchange. 


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Federal Register / Vol. 83, No. 245 / Friday, December 21, 2018 / Notices 65779 

17 15 U.S.C. 78s(b)(3)(A). 

18 17 CFR 240.19b–4(f). 19 17 CFR 200.30–3(a)(12). 

1Historical data provides characteristics about 

specific incidents that occurred in the past. 

Longitudinal data is information provided at 

intervals over time to indicate change over time, 

e.g., benefit amounts in each months from 1994 

through the end of the file. One-time data provides 

information about a beneficiary that does not 

change over time, e.g., sex or date of birth. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

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 17 and paragraph (f) of Rule 

19b–4 18 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. 

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–2018–059 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–2018–059. 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–2018–059 and 

should be submitted on or before 

January 11, 2019. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2018–27611 Filed 12–20–18; 8:45 am] 

BILLING CODE 8011–01–P 

SOCIAL SECURITY ADMINISTRATION 

[Docket No. SSA–2018–0042] 

Privacy Act of 1974; System of 

Records 

AGENCY: Office of Retirement and 

Disability Policy, Office of Research, 

Demonstration, and Employment 

Support, Social Security Administration 

(SSA). 

ACTION: Notice of a New System of 

Records. 

SUMMARY: In accordance with the 

Privacy Act of 1974, we are issuing 

public notice of our intent to establish 

a new system of records entitled the 

Disability Analysis File (DAF) and the 

National Beneficiary Survey (NBS) Data 

System, (60–0382). This notice 

publishes details of the system as set 

forth under the caption SUPPLEMENTARY

INFORMATION. 

DATES: This system of records is 

effective upon its publication in today’s 

Federal Register, with the exception of 

the routine uses, which are effective 

January 22, 2019. We invite public 

comment on the routine uses or other 

aspects of this system of records. In 

accordance with 5 U.S.C. 552a(e)(4) and 

(e)(11), the public is given a 30-day 

period in which to submit comments. 

Please submit any comments by January 

22, 2019. 

ADDRESSES: The public, Office of 

Management and Budget (OMB), and 

Congress may comment on this 

publication by writing to the Executive 

Director, Office of Privacy and 

Disclosure, Office of the General 

Counsel, Social Security 

Administration, Room G–401 West High 

Rise, 6401 Security Boulevard, 

Baltimore, Maryland 21235–6401, or 

through the Federal e-Rulemaking Portal 

at http://www.regulations.gov, please 

reference docket number SSA–2018– 

0042. All comments we receive will be 

available for public inspection at the 

above address and we will post them to 

http://www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Andrea Huseth, Government 

Information Specialist, Privacy 

Implementation Division, Office of 

Privacy and Disclosure, Office of the 

General Counsel, SSA, Room G–401 

West High Rise, 6401 Security 

Boulevard, Baltimore, Maryland 21235– 

6401, telephone: (410) 965–6868, email: 

andrea.huseth@ssa.gov and Tristin 

Dorsey, Government Information 

Specialist, Privacy Implementation 

Division, Office of Privacy and 

Disclosure, Office of the General 

Counsel, SSA, Room G–401 West High 

Rise, 6401 Security Boulevard, 

Baltimore, Maryland 21235–6401, 

telephone: (410) 965–2950, email: 

tristin.dorsey@ssa.gov. 

SUPPLEMENTARY INFORMATION: The DAF 

is an analytical file consisting of agency 

program data in an easy-to-use format. 

Each year, we create a new version of 

the file. The DAF contains historical, 

longitudinal, and one-time data 1 on all 

beneficiaries with disabilities who were 

between age 18 and retirement age and 

who participated in the Social Security 

Disability Insurance (SSDI) or 

Supplemental Security Income (SSI) 

programs at any time between 1996 and 

the year of the file. The file also 

includes data on SSI child beneficiaries 

who participated in the SSI program. 

The NBS collects data from a national 

sample of SSDI and SSI beneficiaries, 

covering a wide range of topics 

including socio-demographic 

information, limiting conditions, health 


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