32170 Federal Register / Vol. 83, No. 133 / Wednesday, July 11, 2018 / Notices 

11 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 Exchange notes that even though Ports with 

Bulk Quoting Capabilities (‘‘Bulk Ports’’) already 

has its own line item in the logical connectivity fees 

table, it’s not explicitly excluded from the general 

‘‘Logical Ports’’ line item. The Exchange proposes 

to add a reference relating to its exclusion to 

maintain clarity in the Fees Schedule. 

6See Cboe BZX Options Exchange Fee Schedule, 

Options Logical Port Fees and Cboe C2 Options 

Exchange Fees Schedule, Logical Connectivity Fees. 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

CboeEDGX–2018–022 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–2018–022. 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–2018–022 and 

should be submitted on or before 

August 1, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–14848 Filed 7–10–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83600; File No. SR– 

CboeEDGX–2018–024] 

Self-Regulatory Organizations; Cboe 

EDGX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change Related to Fees 

for Use on the Exchange’s Equity 

Options Platform 

July 6, 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 29, 

2018, Cboe EDGX Exchange, Inc. (the 

‘‘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 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 

implement proposed changes to its fee 

schedule for its equity options platform 

(‘‘EDGX Options’’) relating to logical 

and physical connectivity fees, effective 

July 2, 2018. 

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 implement 

proposed changes to its fee schedule for 

its equity options platform (‘‘EDGX 

Options’’) relating to logical and 

physical connectivity fees, effective July 

2, 2018. 

Logical Connectivity 

The Exchange proposes to amend 

certain logical connectivity fees. 

Currently, EDGX Options market 

participants may utilize a variety of 

logical connectivity ports. A logical port 

provides users with the ability within 

the Exchange’s system to accomplish a 

specific function through a connection, 

such as order entry, data receipt, or 

access to information. Currently, with 

respect to logical port fees, the Exchange 

only assesses a fee for Purge Ports. 

Additionally, logical connectivity fees 

are limited to logical ports in the 

Exchange’s primary data center and no 

logical port fees are assessed for 

redundant secondary data center ports. 

The Exchange first proposes to adopt 

a $500 per month, per port fee for all 

logical ports excluding Purge, Multicast 

Pitch Spin Server, GRP and Bulk Ports.5

The Exchange notes that fees for these 

excluded ports are explicitly set forth in 

the Fees Schedule. The Exchange notes 

that the proposed fee of $500 per port 

is in line with the fee assessed for 

similar ports on BZX Options and C2 

Options.6

Next, the Exchange proposes to adopt 

fees for Multicast PITCH/Spin Server 

and GRP ports. Multicast PITCH Spin 

Server Ports and GRP Ports are used to 

request and receive a retransmission of 

data from the Exchange’s Multicast 

PITCH data feed. The Exchange’s 

Multicast PITCH/Top data feed is 

available from two primary feeds, 

identified as the ‘‘A feed’’ and the ‘‘C 

feed’’, which contain the same 

information but differ only in the way 

such feeds are received. The Exchange 

also offers two redundant feeds, 


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Federal Register / Vol. 83, No. 133 / Wednesday, July 11, 2018 / Notices 32171 

7 Id. 

8 Id. 

9See e.g., Cboe C2 Options Exchange Fees 

Schedule, Physical Connectivity Fees. 

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

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

12 15 U.S.C. 78f(b)(5). 

13See Affiliated Exchange Fee Schedules, Logical 

Port Fees. 

14 15 U.S.C. 78s(b)(3)(A). 

15 17 CFR 240.19b–4(f). 

identified as the ‘‘B feed’’ and the ‘‘D 

feed.’’ The Exchange proposes to adopt 

a $500 per month, per set fee. All 

secondary feed Multicast PITCH Spin 

Server and GRP Ports will be provided 

for redundancy at no additional cost. 

The Exchange notes that the proposed 

fee is in line with the fee assessed for 

the same ports on BZX Options and C2 

Options.7

Lastly, the Exchange proposes to 

amend fees for ports with bulk quoting 

capabilities (‘‘Bulk Ports’’). A Bulk Port 

is a logical port that provides users with 

the ability to submit bulk messages to 

enter, modify or cancel orders 

designated as Post Only Orders, 

provided such orders are entered with a 

Time-in-Force of DAY or a Time-inForce of GTD with an expiration time on 

that trading day. The Exchange does not 

currently assess fees for Bulk Ports. The 

Exchange now proposes to adopt a 

monthly fee of $600 per port. The 

Exchange notes that the proposed Bulk 

Port fee is less than the fee assessed for 

similar ports on BZX Options and C2 

Options.8

Physical Port Clarification 

The Exchange next proposes to add 

clarifying language relating to its 

Options Physical Connectivity Fees. 

First, the Exchange proposes to clarify 

that all Physical Connectivity Fees will 

be prorated based on the remaining 

trading days in the calendar month. The 

Exchange notes that while this is 

current practice, it is not currently 

codified under the Options Physical 

Connectivity Fees section (although 

similar language is found under the 

Options Logical Port Fees section). The 

Exchange also proposes to clarify that 

physical ports (other than Disaster 

Recovery physical ports) may be used to 

connect to C2 Options, Cboe BZX, Cboe 

BYX and Cboe EDGA. Disaster Recovery 

physical ports may be used to connect 

to the Disaster Recovery Systems for C2 

Options, Cboe BZX, Cboe BYX, Cboe 

EDGA, Cboe Options and CFE. 

Additionally, the Exchange proposes to 

make clear that Members and nonMembers will only be assessed a single 

fee for any physical port or Disaster 

Recovery physical port that accesses the 

identified exchanges, respectively. The 

Exchange notes that similar language 

appears in the Fees Schedule of C2 

Options.9

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.10 Specifically, 

the Exchange believes the proposed rule 

change is consistent with Section 6(b)(4) 

of the Act,11 which provides that 

Exchange rules may provide for the 

equitable allocation of reasonable dues, 

fees, and other charges among its Permit 

Holders and other persons using its 

facilities. Additionally, the Exchange 

believes the proposed rule change is 

consistent with the Section 6(b)(5) 12

requirement that the rules of an 

exchange not be designed to permit 

unfair discrimination between 

customers, issuers, brokers, or dealers. 

The Exchange believes it’s reasonable 

to assess the proposed fees for each of 

the logical connectivity ports described 

above as the proposed fees enable the 

Exchange to continue to maintain and 

improve its market technology and 

services. Additionally, the Exchange 

notes the proposed fees are in line with, 

and indeed less than, the fees assessed 

on certain of its affiliated exchanges for 

similar connectivity.13 The proposed 

logical connectivity fees are also 

equitable and not unfairly 

discriminatory because the Exchange 

will apply the same fees to all market 

participants that use the same respective 

connectivity options. 

The Exchange also believes it’s 

reasonable, equitable and not unfairly 

discriminatory to prorate physical 

connectivity fees because it provides for 

a more precise assessment of physical 

connectivity fees based on when a user 

obtains a new physical port or Disaster 

Recovery physical port. The Exchange 

believes it’s reasonable, equitable and 

not unfairly discriminatory to assess a 

physical 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. The 

Exchange believes listing the affiliate 

exchanges that physical ports and 

Disaster Recovery physical ports can 

connect to adds clarity to the fee 

schedule and avoids potential 

confusion. The alleviation of confusion 

removes impediments to and perfects 

the mechanism of a free and open 

market and a national market system. 

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 change represents a significant 

departure from pricing offered by the 

Exchange’s affiliates. Additionally, 

members may opt to disfavor the 

Exchange’s pricing if they believe that 

alternatives offer them better value. 

Accordingly, the Exchange does not 

believe that the proposed change will 

impair the ability of members or 

competing venues to maintain their 

competitive standing in the financial 

markets. 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, 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 members and non-members 

equally. 

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 14 and paragraph (f) of Rule 

19b–4 15 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, 


daltland on DSKBBV9HB2PROD with NOTICES
32172 Federal Register / Vol. 83, No. 133 / Wednesday, July 11, 2018 / Notices 

16 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. 

4See https://www.nyse.com/publicdocs/ctaplan/ 

notifications/trader-update/CTS_CQS%202018_

Failover%20Testing_Q1.pdf. 

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 

SRb–4CboeEDGX–2018–024 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 SRb–4CboeEDGX–2018–024. 

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 SRb–4CboeEDGX–2018–024 

and should be submitted on or before 

August 1, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–14849 Filed 7–10–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83601; File No. SR–NYSE– 

2018–31] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing of Proposed Rule Change, as 

Modified by Amendment No. 1, To 

Require Certain Member Organizations 

To Participate in Scheduled MarketWide Circuit Breaker Testing 

July 6, 2018. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that, on June 26, 

2018, the New York Stock Exchange 

LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) a 

proposed rule change. On July 5, 2018, 

the Exchange filed Amendment No. 1 to 

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, as amended, from 

interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to require 

certain member organizations to 

participate in scheduled Market-Wide 

Circuit Breaker testing. Amendment 

No.1 supersedes the original filing in its 

entirety. 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. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

NYSE Rule 49 to require certain member 

organizations to participate in 

scheduled Market-Wide Circuit Breaker 

(‘‘MWCB’’) testing. 

MWCBs are important, automatic 

mechanisms that are invoked to 

promote stability and investor 

confidence during a period of 

significant stress when securities 

markets experience extreme broad-based 

declines. MWCBs are designed to slow 

the effects of extreme price movement 

through coordinated trading halts across 

securities markets when severe price 

declines reach levels that may exhaust 

market liquidity. All U.S. equity and 

options exchanges have established 

procedures that allow for trading to be 

halted, or under extreme circumstances, 

for markets to be closed before the 

normal close of trading for a trading 

day. MWCBs provide for trading halts in 

all equities and options markets during 

a severe market decline as measured by 

a single-day decline in the S&P 500 

Index. 

Pursuant to NYSE Rule 80B (Trading 

Halts Due to Extraordinary Market 

Volatility), a market-wide trading halt 

will be triggered if the S&P 500 Index 

declines in price by specified 

percentages from the prior day’s closing 

price of that index. Currently, the 

triggers are set at three circuit breaker 

thresholds: 7% (Level 1), 13% (Level 2) 

and 20% (Level 3). A market decline 

that triggers a Level 1 or Level 2 circuit 

breaker after 9:30 a.m. ET and before 

3:25 p.m. ET would halt market-wide 

trading for 15 minutes, while a similar 

market decline at or after 3:25 p.m. ET 

would not halt market-wide trading. A 

market decline that triggers a Level 3 

circuit breaker, at any time during the 

trading day, would halt market-wide 

trading for the remainder of the trading 

day. 

The Security [sic] Information 

Processors (‘‘SIP’’) for the U.S. equity 

markets have established a quarterly 

MWCB testing schedule.4 On the 


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