28300 Federal Register / Vol. 83, No. 117 / Monday, June 18, 2018 / Notices 

22 15 U.S.C. 78s(b)(3)(A)(iii). 

23 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

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

the Commission written notice of its intent to file 

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. 24 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

efficient trading and hedging vehicles, 

to the benefit of investors, market 

participants, and the marketplace in 

general. The Exchange believes this 

proposed rule change is necessary to 

permit fair competition among the 

options exchanges and to establish 

uniform position limits for additional 

multiply listed option classes. 

Furthermore, the Exchange believes that 

the other options exchanges will file 

similar proposals with the Commission. 

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 

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)(iii) of the Act 22 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.23

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 

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– 

Phlx–2018–44 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE, Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–Phlx–2018–44. 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–Phlx–2018–44 and should 

be submitted on or before July 9, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.24

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–12928 Filed 6–15–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83410; File No. SR– 

NYSEArca–2018–42] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend the NYSE Arca 

Equities Fees and Charges To Extend 

the Effectiveness of the Decommission 

Extension Fee Until September 2018 

June 12, 2018. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on June 1, 

2018, NYSE Arca, Inc. (the ‘‘Exchange’’ 

or ‘‘NYSE Arca’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the self-regulatory 

organization. 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 the Substance 

of the Proposed Rule Change 

The Exchange proposes to amend the 

NYSE Arca Equities Fees and Charges 

(the ‘‘Fee Schedule’’) to extend the 

effectiveness of the Decommission 

Extension Fee until September 2018. 

The proposed rule change is available 

on the Exchange’s website at 

www.nyse.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 

self-regulatory organization 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 those 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. 


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Federal Register / Vol. 83, No. 117 / Monday, June 18, 2018 / Notices 28301 

4See Securities Exchange Act Release No. 81901 

(October 19, 2017), 82 FR 49426 (October 25, 2017) 

(SR–NYSEArca–2017–121). 5Port fees are not applicable to ports used for the 

Exchange’s Risk Management Gateway service. 

Further, no fee applies to ports in the backup 

datacenter that are not utilized during the relevant 

month. No fee applies to ports in the backup 

datacenter that are utilized when the primary 

datacenter is unavailable. However, if a port in the 

backup datacenter is utilized when the primary 

datacenter is available, then the fee would apply. 

6No fee applies to ports in the backup datacenter 

if configured such that it is duplicative of another 

drop copy port of the same user. Only one fee per 

drop copy port applies, even if the port receives 

drop copies from multiple order/quote entry ports 

and/or drop copies for activity on both NYSE Arca 

Equities and NYSE Arca Options. 

7See Trader Update at https://www.nyse.com/ 

publicdocs/nyse/markets/nyse/Pillar_Update_

NYSE_American_ARCA_NYSE_Tapes_B_and_

C.pdf. On June 22, 2017, the Exchange provided 

ETP Holders with notice that the phase II ports 

would be available on August 21, 2017. See Trader 

Update at https://www.nyse.com/publicdocs/nyse/ 

notifications/trader-update/Pillar_Phase_II_

Update_Native_gateways_June_16_2017.pdf. 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(4). 

10 15 U.S.C. 78f(b)(8). 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange currently charges a 

Decommission Extension Fee that 

applies to ETP Holders for the use of 

certain ports used to connect to NYSE 

Arca.4 The Decommission Extension 

Fee was adopted for a three-month 

period from March 2018 through May 

2018 (the ‘‘extension period’’) at a rate 

of $2,450 per port per month. The 

Exchange proposes to amend the Fee 

Schedule to extend the effectiveness of 

the Decommission Extension Fee for an 

additional four months, until September 

2018. The Exchange also proposes to 

charge incrementally higher fees for 

each of the additional months before use 

of ports subject to the proposed fee is 

decommissioned. The Exchange 

proposes to make the fee change 

effective June 1, 2018. 

ETP Holders enter orders and 

instructions by using communication 

protocols that map to the order types 

and modifiers described in Exchange 

rules. The Exchange currently makes 

ports available that provide connectivity 

to the Exchange’s trading systems (i.e., 

ports for the entry of orders and/or 

quotes (‘‘order/quote entry ports’’)) 

using Pillar phase I protocols (‘‘phase I 

ports’’) and Pillar phase II protocols 

(‘‘phase II ports’’) and charges $550 per 

port per month.5 Phase II ports are part 

of the Exchange’s efforts to upgrade its 

connectivity. Phase I ports are legacy 

connections used by ETP Holders to 

communicate with the Exchange. The 

Exchange also currently makes ports 

available for drop copies and charges 

$550 per port per month.6

On August 21, 2017, the Exchange 

notified ETP Holders to transition all 

connections to the Exchange through 

the use of phase II ports by the close of 

trading on February 28, 2018.7

Notwithstanding prior notice to ETP 

Holders to migrate fully to phase II ports 

by the end of February 2018, the 

Exchange determined to continue to 

make phase I ports available through the 

end of May 2018 to allow ETP Holders 

additional time to transition to phase II 

ports should an ETP Holder choose to 

do so. ETP Holders that use phase I 

ports during the extension period are 

currently subject to the Decommission 

Extension Fee. 

The Decommission Extension Fee was 

adopted by the Exchange as an incentive 

for ETP Holders to fully transition to the 

phase II ports within an initial sixmonth transition period before the fee 

became effective so the Exchange would 

not have to maintain and support both 

phase I ports and phase II ports at the 

end of the transition period. In addition, 

to the extent that ETP Holders did not 

fully transition to phase II ports within 

the initial six-month transition period, 

the Decommission Extension Fee was 

intended to cover the Exchange’s costs 

associated with continued support of 

phase I ports, including costs to 

maintain servers and their physical 

location, monitoring order activity, and 

other support, that are separate from the 

costs in maintaining phase II ports. 

Because continued support for phase 1 

ports requires the Exchange to dedicate 

resources, the Exchange adopted the 

Decommission Extension Fee for the use 

of such ports during the extension 

period. 

The Exchange now proposes to 

expand the extension period until the 

close of trading on September 28, 2018, 

the last trading day of the month (the 

‘‘new extension period’’). A small 

number of ETP Holders have not 

transitioned to phase II ports and have 

informed the Exchange of their need for 

additional time to do so. Therefore, 

during the new extension period, ETP 

Holders that continue to connect to the 

Exchange through phase I ports would 

be charged the Decommission Extension 

Fee, as follows: $2,450 per port per 

month for the month of June 2018; 

$2,950 per port per month for the month 

of July 2018; $3,450 per port per month 

for the month of August 2018; and 

$3,950 per port per month for the month 

of September 2018. The Decommission 

Extension Fee would be charged in 

addition to the existing port fees 

currently set forth in the Fee Schedule. 

The Exchange expects all ETP Holders 

to transition to the use of phase II ports 

by the end of the new extension period 

and that phase I ports would be fully 

decommissioned at that time. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,8 in general, and 

furthers the objectives of Sections 

6(b)(4) of the Act,9 in particular, because 

it provides for the equitable allocation 

of reasonable dues, fees, and other 

charges among its members, issuers and 

other persons using its facilities and 

does not unfairly discriminate between 

customers, issuers, brokers or dealers. In 

particular, the proposed rule change, 

including the adoption of graduated 

fees, is reasonable because it proposes to 

make a reasonable accommodation by 

providing ETP Holders additional time, 

at their request, to transition to phase II 

ports while incentivizing such ETP 

Holders to transition to phase II ports to 

avoid being charged the Decommission 

Extension Fee. Additionally, the 

Exchange believes that the 

Decommission Extension Fee for ETP 

Holders that choose to continue to 

connect to the Exchange through the use 

of phase I ports though the new 

extension period, which is scheduled to 

end at the close of trading on September 

28, 2018, is equitable and not unfairly 

discriminatory because the fee would 

continue to apply equally to all ETP 

Holders that choose to connect to the 

Exchange through the use of such ports 

during the new extension period. As 

noted above, the Exchange would 

continue to incur ongoing costs in 

maintaining phase I ports during the 

new extension period, including costs to 

maintain servers and their physical 

location, monitoring order activity, and 

other support, with no real benefit. Due 

to the fixed costs incurred by the 

Exchange to support phase I ports 

during the new extension period, the 

Exchange believes that it is fair and 

reasonable to charge increased fees to 

cover the costs of such support during 

the new extension period because of the 

small number of ETP Holders that have 

not transitioned to phase II ports. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

In accordance with Section 6(b)(8) of 

the Act,10 the Exchange does not believe 

that the proposed rule change will 

impose any burden on intermarket or 

intramarket competition that is not 

necessary or appropriate in furtherance 


amozie on DSK3GDR082PROD with NOTICES1
28302 Federal Register / Vol. 83, No. 117 / Monday, June 18, 2018 / Notices 

11 15 U.S.C. 78s(b)(3)(A). 

12 17 CFR 240.19b–4(f)(2). 

13 15 U.S.C. 78s(b)(2)(B). 14 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). 

4 17 CFR 240.19b–4(f)(6)(iii). 

of the purposes of the Act in that it is 

simply designed to set forth the 

Exchange’s continued assessment of a 

fee during the new extension period to 

provide an incentive to ETP Holders to 

transition to phase II ports. The 

Exchange believes that fees for 

connectivity are constrained by the 

robust competition for order flow among 

exchanges and non-exchange markets. 

Further, excessive fees for connectivity, 

including port fees, would serve to 

impair an exchange’s ability to compete 

for order flow rather than burdening 

competition. The Exchange also does 

not believe the proposed rule change 

would impact intramarket competition 

as it would apply to all ETP Holders 

equally that connect to the Exchange 

through the use of such ports. 

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 

The foregoing rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) 11 of the Act and 

subparagraph (f)(2) of Rule 19b–4 12

thereunder, because it establishes a due, 

fee, or other charge imposed by the 

Exchange. 

At any time within 60 days of the 

filing of such 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 

under Section 19(b)(2)(B) 13 of the Act 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–2018–42 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE, Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSEArca–2018–42. 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–NYSEArca–2018–42, and 

should be submitted on or before July 9, 

2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–12926 Filed 6–15–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83409; File No. SR–C2– 

2018–012] 

Self-Regulatory Organizations; Cboe 

C2 Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend the Fees 

Schedule in Connection With the 

Technology Migration of C2 Onto the 

Options Platform of the Exchange’s 

Affiliated Options Exchanges, Cboe 

EDGX Exchange, Inc. and Cboe BZX 

Exchange, Inc. 

June 12, 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 May 31, 

2018, Cboe C2 Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘C2’’) 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 has 

designated this proposal as a ‘‘noncontroversial’’ 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend its 

Fees Schedule in connection with the 

technology migration of C2 onto the 

options platform of the Exchange’s 

affiliated options exchanges, Cboe 

EDGX Exchange, Inc. (‘‘EDGX’’ or 

‘‘EDGX Options’’) and Cboe BZX 

Exchange, Inc. (‘‘BZX’’ or ‘‘BZX 

Options’’). 

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 


amozie on DSK3GDR082PROD with NOTICES1