Federal Register / Vol. 83, No. 120 / Thursday, June 21, 2018 / Notices 28873 

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

2 17 CFR 240.19b–4. 

3For example, if a market participant uses a 1 

Gbps Disaster Recovery Port to connect to the 

Disaster Recovery Systems for both Cboe Options 

and EDGX, the market participant would only be 

assessed one monthly fee of $2,000. 

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

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

DATES: The meeting will begin at 4:30 

p.m. on July 25, 2018. 

ADDRESSES: The meeting will be held at 

the Officers’ Club, 50 Moraga Avenue, 

Presidio of San Francisco. 

FOR FURTHER INFORMATION CONTACT: 

Nancy J. Koch, General Counsel, the 

Presidio Trust, 103 Montgomery Street, 

P.O. Box 29052, San Francisco, 

California 94129–0052, Telephone: 415– 

561–5300. 

Dated: June 15, 2018. 

Nancy J. Koch, 

General Counsel. 

[FR Doc. 2018–13357 Filed 6–20–18; 8:45 am] 

BILLING CODE 4310–4R–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83453; File No. SR–CBOE– 

2018–041] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Related to Physical Port 

Fees for Cboe Options 

June 15, 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 Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘Cboe Options’’) 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 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 

The Exchange proposes to amend its 

Fees Schedule. The text of the proposed 

rule change is also 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 

fees for Network Access Ports used for 

Disaster Recovery, effective June 1, 

2018. Currently, the Exchange assesses 

$250 per port, per month for 1 gigabit 

(Gbps) and 10 Gbps Network Access 

Ports that connect to the Exchange’s 

Disaster Recovery Systems in Chicago 

(‘‘Disaster Recovery Ports’’). The 

Exchange proposes to increase its fees 

for Disaster Recovery Ports. Specifically, 

the Exchange proposes to assess a 

monthly fee of $2,000 per 1 Gbps 

Disaster Recovery Port and a monthly 

fee of $6,000 per 10 Gbps Disaster 

Recovery Port. This amount will 

continue to enable the Exchange to 

maintain the Disaster Recovery Ports in 

case they become necessary. The 

Exchange notes that the Disaster 

Recovery Ports may now also be used to 

access the Disaster Recovery Systems for 

the following affiliate exchanges: Cboe 

BZX Exchange, Inc., Cboe EDGX 

Exchange, Inc., Cboe EDGA Exchange, 

Inc., Cboe C2 Exchange, Inc., Cboe BYX 

Exchange, Inc. and Cboe Futures 

Exchange, LLC (‘‘Affiliated Exchanges’’). 

The Exchange proposes to provide that 

market participants will only be 

assessed a single fee for any Disaster 

Recovery Port that also accesses the 

Disaster Recovery Systems for these 

exchanges.3

Lastly, the Exchange notes that the 

Fees Schedule currently provides that 

separate Network Access Port fees are 

assessed for unicast (orders, quotes) and 

multicast (market data) connectivity and 

includes a parenthetical that clarifies 

that ‘‘if a TPH uses the 1 Gbps Disaster 

Recovery Network Access Port for 

unicast and multicast connectivity, the 

TPH will be charged $500 per month’’. 

The exchange notes that certain 

Network Access Ports that connect to 

the Disaster Recovery Systems are able 

to receive both multicast and unicast 

traffic, whereas other Network Access 

Ports can only receive one type of 

connectivity each (thus requiring a 

market participants to maintain two 

ports if that market participant desires 

both types of connectivity). 

Accordingly, market participants are 

currently assessed fees based on 

connectivity (i.e., a TPH is charged two 

port fees regardless of whether it 

receives both unicast and multicast 

connectivity over a single port or each 

type of connectivity over two separate 

ports). The Exchange notes that physical 

ports, including Disaster Recovery Ports, 

at its Affiliated Exchanges allow for 

unicast and multicast connectivity to be 

received through a single port and that 

those Exchanges therefore assess only a 

‘‘per port’’ fee (instead of a ‘‘per 

connectivity type’’ fee). Since market 

participants will be able to use Disaster 

Recovery Ports to access the Disaster 

Recovery Systems of Cboe Options and 

its Affiliated Exchanges, the Exchange 

proposes to no longer charge for unicast 

and multicast connectivity separately 

for Disaster Recovery Ports. Therefore, 

the Exchange proposes to eliminate the 

clarification pertaining to Disaster 

Recovery Ports currently in the 

parenthetical in the Notes section. 

Similarly, the Exchange also proposes to 

make clear in the Fees Schedule that if 

a market participant maintains two 

Disaster Recovery Ports of the same size 

in order to receive unicast and multicast 

connectivity (i.e., they cannot receive 

both connectivity types over 1 port), 

then the Exchange will only assess one 

Disaster Recovery Port fee (e.g., if a TPH 

has two 1 Gb Disaster Recovery Ports, 

one of which receives unicast traffic and 

the other of which only receives 

multicast traffic, that TPH will be 

assessed $2,000, instead of $4,000). 

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.4 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 5 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, 


amozie on DSK3GDR082PROD with NOTICES1
28874 Federal Register / Vol. 83, No. 120 / Thursday, June 21, 2018 / Notices 

6 Id. 

7See Securities Exchange Act Release No. 68342 

(December 3, 2012) 77 FR 73096 (December 7, 2012) 

(SR–CBOE–2012–114). 

8See e.g., NYSE Arca Equities Fees and Charges, 

NYSE Arca Marketplace: Other Fees and Charges, 

Connectivity Fees. See also, Nasdaq Phlx LLC 

Pricing Schedule, Section XI. 

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. 

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) 6 requirement that 

the rules of an exchange not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

The Exchange believes the proposed 

fee increase is reasonable because it will 

assist the Exchange in recouping costs 

associated with maintaining its Disaster 

Recovery Ports and Disaster Recovery 

Systems in case of necessity. The 

Exchange also notes that it hasn’t 

amended the fee amount since it 

adopted the fee in 2012.7 Additionally, 

the proposed fees are the same as are 

concurrently being proposed for its 

Affiliate Exchanges and other exchanges 

assess similar fees for connection to 

their Disaster Recovery Systems by their 

market participants.8 The Exchange 

believes it’s reasonable, equitable and 

not unfairly discriminatory to assess the 

Disaster Recovery Port fee only once if 

it connects with another affiliate 

exchange because only one port is being 

used and the Exchange does not wish to 

charge multiple fees for the same port. 

Similarly, the Exchange believes it’s 

reasonable to assess only one fee for 

multicast and unicast connectivity, 

regardless if both connectivity types are 

available on a single port or separate 

ports, because the Exchange’s affiliate 

exchanges do not charge port fees based 

on connectivity types. Lastly, the 

Exchange believes the proposed changes 

are equitable and nondiscriminatory 

because it applies uniformly to 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 that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange does not believe that the 

proposed rule change will impose any 

burden on intramarket competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act 

because the proposed change applies 

uniformly to all market participants. 

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. Market participants 

may opt to disfavor the Exchange’s 

pricing if they believe that alternatives 

offer them better value. Further, 

excessive fees for connectivity would 

serve to impair an exchange’s ability to 

compete for order flow rather than 

burdening competition. 

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 

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 10 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– 

CBOE–2018–041 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–CBOE–2018–041. 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–CBOE–2018–041 and 

should be submitted on or before July 

12, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–13302 Filed 6–20–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83454; File No. SR–NYSE– 

2018–28] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing of Proposed Rule Change To 

Make Permanent the Retail Liquidity 

Program Pilot, Rule 107C, Which Is 

Currently Set To Expire on June 30, 

2018 

June 15, 2018. 

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

Securities Exchange Act of 1934 

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


amozie on DSK3GDR082PROD with NOTICES1