28694 Federal Register / Vol. 83, No. 119 / Wednesday, June 20, 2018 / Notices 

19 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)(ii). 

4 17 CFR 240.19b–4(f)(2). 

5The term ‘‘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 ‘‘Setter Add TCV’’ [sic] 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. 

7 15 U.S.C. 78f. 

8 15 U.S.C. 78f(b)(4). 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSEArca–2018–39. 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–2018–39 and 

should be submitted on or before July 

11, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–13172 Filed 6–19–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83438; File No. SR– 

CboeBZX–2018–039] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change Related to Fees 

for Use on Cboe BZX Exchange, Inc. 

June 14, 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 June 1, 

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 filed a proposal to 

amend the fee schedule applicable to 

Members 5 and non-Members of the 

Exchange pursuant to BZX Rules 15.1(a) 

and (c). OR [sic] 

The text of the proposed rule change 

is available at the Exchange’s website at 

www.markets.cboe.com, at the principal 

office of the Exchange, and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

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

the most significant parts of such 

statements. 

(A) Self-Regulatory Organization’s 

Statement of the Purpose of, and 

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’’). 

Particularly, the Exchange proposes to 

amend the NBBO Setter Tiers effective 

June 1, 2018. 

The Exchange currently offers two 

NBBO Setter Tiers under footnote 19, 

which provide an additional rebate of 

$0.00015 to $0.0004 per share for orders 

that establish a new National Best Bid 

or Offer (‘‘NBBO’’) and which are 

appended with fee code B, V or Y. The 

Exchange notes that the proposed [sic] 

the NBBO Setter Tiers are additive 

rebates, and thus, can be combined with 

other incentives and structures offered 

by the Exchange. The Exchange 

proposes to amend both NBBO Setter 

Tiers 1 and 2. 

First, the Exchange proposes to 

amend NBBO Setter Tier 1. Currently, a 

Member will receive a rebate of 

$0.00015 per share where a Member has 

a Setter Add TCV 6 of greater than or 

equal to 0.10%. The Exchange proposes 

to increase the rebate for NBBO Setter 

Tier 1 from $0.00015 to $0.0003 per 

share. The Exchange also proposes to 

increase the Setter Add TCV 

requirement from 0.10% to 0.15%. 

Lastly, the Exchange proposes to 

amend NBBO Setter Tier 2. Currently, a 

Member will receive a rebate of $0.0004 

per share where a Member has a Setter 

Add TCV of greater than or equal to 

0.15%. The Exchange proposes to 

increase the Setter Add TCV 

requirement from 0.15% to 0.20%. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule changes are consistent 

with the objectives of Section 6 of the 

Act,7 in general, and furthers the 

objectives of Section 6(b)(4),8 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 the 

modification to the additional rebate 

provided by the NBBO Setter Tier 1 

under footnote 19 is a reasonable means 

to encourage Members to not only 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 119 / Wednesday, June 20, 2018 / Notices 28695 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f). 

11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

increase their liquidity on the Exchange, 

but also to contribute to the market 

quality of the Exchange by offering 

aggressively priced liquidity. The 

Exchange further believes that the 

proposed increased rebate represents an 

equitable allocation of reasonable dues, 

fees, and other charges because the 

thresholds necessary to achieve the tiers 

would continue to encourage Members 

to add additional liquidity to the 

Exchange. The revised additional rebate 

was modestly changed and continues to 

reasonably reflect the difficulty of 

achieving each tier’s required criteria. 

The proposed change also is not 

unreasonably discriminatory as it 

applies equally to all Members. 

The Exchange also notes that volumebased discounts such as those currently 

maintained on the Exchange have been 

widely adopted by exchanges and are 

equitable and non-discriminatory 

because they are open to all Members on 

an equal basis and provide additional 

benefits or discounts that are reasonably 

related to the value of an exchange’s 

market quality associated with higher 

levels of market activity, such as higher 

levels of liquidity provision and/or 

growth patterns, and introduction of 

higher volumes of orders into the price 

and volume discovery processes. While 

the proposed modification to the criteria 

set forth in NBBO Setter Tiers 1 and 2 

makes such tiers slightly more difficult 

to attain, it is intended to incentivize 

Members to send additional volume and 

aggressively priced liquidity, in an effort 

to qualify or continue to qualify for the 

rebates made available by the tiers. As 

such, the Exchange also believes that 

the proposed changes are reasonable. 

The Exchange notes that increased 

volume on the Exchange provides 

greater trading opportunities for all 

market participants. 

(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 not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange does not believe that any of 

the proposed change to the Exchange’s 

tiered pricing structure burden 

competition, but instead, that they 

enhance competition as they are 

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 changes are generally 

intended to enhance the rebates for 

liquidity added to the Exchange, which 

is intended to draw additional liquidity 

to the Exchange. The Exchange does not 

believe the proposed amendments 

would burden intramarket competition 

as they 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 9 and paragraph (f) of Rule 

19b–4 thereunder.10 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 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– 

CboeBZX–2018–039 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–CboeBZX–2018–039. 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–CboeBZX–2018–039 and 

should be submitted on or before July 

11, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–13164 Filed 6–19–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83430; File No. SR– 

CboeEDGX–2018–017] 

Self-Regulatory Organizations; Cboe 

EDGX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change Related to 

Physical Port Fees for EDGX Options 

June 14, 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 June 1, 

2018, Cboe EDGX Exchange, Inc. 

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

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 


sradovich on DSK3GMQ082PROD with NOTICES