66328 Federal Register / Vol. 83, No. 246 / Wednesday, December 26, 2018 / Notices 

22 17 CFR 200.30–3(a)(12) and (59). 

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). 

5A Member is defined as ‘‘any registered broker 

or dealer that has been admitted to membership in 

the Exchange.’’ See Exchange Rule 1.5(n). 

6 ‘‘ADV’’ means average daily volume calculated 

as the number of shares added or removed, 

combined, per day. ADAV and ADV are calculated 

on a monthly basis. 

7 ‘‘TCV’’ 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. 

8Fee code HI is appended to non-displayed 

orders that receive price improvement and add 

liquidity. 

9See New York Stock Exchange Price List 2018, 

which provides that the equity per share credit for 

all Midpoint Passive Liquidity (‘‘MPL’’) orders that 

provide liquidity, other than MPL orders from 

Designated Market Makers (‘‘DMMs’’), will receive 

a rebate of $0.00275 per share if a Member adds an 

ADV greater than or equal to 0.14% Tape A NYSE 

consolidated average daily volume (‘‘CADV’’), 

excluding any liquidity added by a DMM. 

10 15 U.S.C. 78f. 

11 15 U.S.C. 78f(b)(4). 

12See New York Stock Exchange Price List 2018, 

which provides that the equity per share credit for 

all MPL orders that provide liquidity, other than 

MPL orders from DMMs, will receive a rebate of 

$0.00275 per share if a Member adds an ADV 

greater than or equal to 0.14% Tape A CADV, 

excluding any liquidity added by a DMM. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.22

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2018–27822 Filed 12–21–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84844; File No. SR– 

CboeBZX–2018–087] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Amend the 

Fee Schedule 

December 18, 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 December 

3, 2018, Cboe BZX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BZX’’) 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange is filing with the 

Securities and Exchange Commission 

(‘‘Commission’’) a proposed rule change 

to amend the fee schedule applicable to 

Members and non-Members 5 of the 

Exchange pursuant to BZX Rules 15.1(a) 

and (c). Changes to the fee schedule 

pursuant to this proposal are effective 

upon filing. 

The text of the proposed rule change 

is available on the Exchange’s website 

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

CBOELegalRegulatoryHome.aspx), at 

the Exchange’s Office of the Secretary, 

and at the Commission’s Public 

Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend its 

fee schedule applicable to its equities 

trading platform (‘‘BZX Equities’’) to 

increase the rebate under the NonDisplayed Add Volume Tape A Tier 1, 

effective December 3, 2018. 

The Exchange currently provides a 

standard rebate of $0.00150 per share 

for non-displayed orders that add 

liquidity. The Exchange also provides 

an enhanced rebate under NonDisplayed Add Volume Tape A Volume 

Tier, Tier 1 under Footnote 1 (‘‘HV 

Volume Tier’’) which is available for 

qualifying non-displayed orders that 

add liquidity (Tape A), (i.e., orders 

which yield fee code HV). Particularly, 

under the HV Volume Tier, a Member 

may receive an enhanced rebate of 

$0.00260 per share where they add an 

ADV 6 greater than or equal to 0.20% of 

the TCV 7 as Non-Displayed orders that 

yield fee codes HI or HV.8 The Exchange 

proposes to increase the HV Volume 

Tier rebate from $0.00260 per share to 

$0.00275 per share. The Exchange 

believes the proposed change will 

encourage Members to increase nondisplayed add liquidity on the 

exchange. The Exchange also notes that 

another Exchange offers the same rebate 

amount for similar transactions.9

2. Statutory Basis 

The Exchange believes that the 

proposed rule changes are consistent 

with the objectives of Section 6 of the 

Act,10 in general, and furthers the 

objectives of Section 6(b)(4),11 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. The Exchange also notes that 

it 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 or 

incentives to be insufficient. The 

proposed rule changes reflect a 

competitive pricing structure designed 

to incentivize market participants to 

direct their order flow to the Exchange. 

The Exchange believes increasing the 

rebate under the HV Volume Tier is 

reasonable because Members are 

provided an opportunity to receive an 

enhanced rebate for Non-Displayed 

orders that add liquidity and is a 

reasonable means to encourage 

Members to increase their liquidity on 

the Exchange. The Exchange also notes 

that another Exchange offers a similar 

rebate.12 The Exchange also believes the 

proposed fee change is equitable and 

non-discriminatory because it applies 

uniformly to all Members. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 


amozie on DSK3GDR082PROD with NOTICES1
Federal Register / Vol. 83, No. 246 / Wednesday, December 26, 2018 / Notices 66329 

13 15 U.S.C. 78s(b)(3)(A). 

14 17 CFR 240.19b–4(f). 15 17 CFR 200.30–3(a)(12). 

1 17 CFR 242.612(c). 

2See Securities Exchange Act Release No. 68303 

(November 27, 2012), 77 FR 71652 (December 3, 

2012) (‘‘RPI Approval Order’’) (SR–BXY–2012–019). 

3See Securities Exchange Act Release Nos. 71249 

(January 7, 2014), 79 FR 2229 (January 13, 2012) 

(SR–BYX–2014–001) (Notice of Filing and 

Immediate Effectiveness of a Proposed Rule Change 

to Extend the Pilot Period for the RPI); 71250 

(January 7, 2014), 79 FR 2234 (January 13, 2012) 

(Order Granting an Extension to Limited Exemption 

From Rule 612(c) of Regulation NMS in Connection 

With the Exchange’s Retail Price Improvement 

Program); 74111 (January 22, 2015), 80 FR 4598 

(January 28, 2015) (SR–BYX–2015–05) (Notice of 

Filing and Immediate Effectiveness of a Proposed 

Rule Change to Extend the Pilot Period for the RPI); 

and 74115 (January 22, 2015), 80 FR 4324 (January 

27, 2015) (Order Granting an Extension to Limited 

Exemption From Rule 612(c) of Regulation NMS in 

Connection With the Exchange’s Retail Price 

Improvement Program); 76965 (January 22, 2016), 

81 FR 4682 (January 27, 2016) (SR–BYX–2016–01) 

(Notice of Filing and Immediate Effectiveness of a 

Proposed Rule Change to Extend the Pilot Period for 

the RPI); 76953 (January 21, 2016), 81 FR 4728 

(January 27, 2016) (Order Granting an Extension to 

Limited Exemption From Rule 612(c) of Regulation 

NMS in Connection With the Exchange’s Retail 

Price Improvement Program); 78180 (June 28, 2016), 

81 FR 43306 (July 1, 2016) (SR–BYX–2016–15) 

(Notice of Filing and Immediate Effectiveness of a 

Proposed Rule Change to Extend the Pilot Period for 

the RPI); 78178 (July 5, 2016), 81 FR 43689 (July 

5, 2016) (Order Granting an Extension to Limited 

Exemption From Rule 612(c) of Regulation NMS in 

Connection With the Exchange’s Retail Price 

Improvement Program); 81368 (August 10, 2017), 82 

FR 38960 (August 16, 2017) (SR–BatsBYX–2017–18) 

(Notice of Filing and Immediate Effectiveness of a 

Proposed Rule Change to Extend the Pilot Period for 

the RPI); 81364 (August 8, 2018), 82 FR 38733 

Continued 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange does not believe that the 

proposed change burdens competition, 

but instead, enhances competition as it 

is intended to increase the 

competitiveness of BZX by modifying 

pricing incentives in order to attract 

order flow and incentivize participants 

to increase their participation on the 

Exchange. The Exchange notes that it 

operates in a highly competitive market 

in which market participants can 

readily direct order flow to competing 

venues if they deem fee structures to be 

unreasonable or excessive. The 

proposed change is intended to enhance 

the rebate offered for certain nondisplayed liquidity added to the 

Exchange, which is intended to draw 

additional liquidity to the Exchange. 

The Exchange does not believe the 

proposed amendment would burden 

intramarket competition as it would be 

available to all Members uniformly. 

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 

unsolicited written comments from 

Members or other interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 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. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposal 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 No. SR– 

CboeBZX–2018–087 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 No. 

SR–CboeBZX–2018–087. 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 will also 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 

No. SR–CboeBZX–2018–087 and should 

be submitted on or before January 16, 

2019. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2018–27816 Filed 12–21–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84845; File No. SR–BYX– 

2012–019] 

Self-Regulatory Organization; Cboe 

BYX Exchange, Inc.; Order Granting an 

Extension to Limited Exemption From 

Rule 612(c) of Regulation NMS in 

Connection With the Exchange’s Retail 

Price Improvement Program 

December 18, 2018. 

On November 27, 2012, the Securities 

and Exchange Commission 

(‘‘Commission’’) issued an order 

pursuant to its authority under Rule 

612(c) of Regulation NMS (‘‘Sub-Penny 

Rule) 1 that granted the BATS BYXExchange, Inc. (k/n/a ‘‘Cboe BYX’’ or 

the ‘‘Exchange’’) a limited exemption 

from the Sub-Penny Rule in connection 

with the operation of the Exchange’s 

Retail Price Improvement (‘‘RPI’’) 

Program (the ‘‘Program’’). The limited 

exemption was granted concurrently 

with the Commission’s approval of the 

Exchange’s proposal to adopt the 

Program for a one-year pilot term.2 The 

exemption was granted coterminous 

with the effectiveness of the pilot 

Program and has been extended six 

times; 3 both the pilot Program and 


amozie on DSK3GDR082PROD with NOTICES1