34630 Federal Register / Vol. 83, No. 140 / Friday, July 20, 2018 / Notices 

32 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). 

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–ISE–2018–61. 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–ISE–2018–61 and should be 

submitted on or before August 10, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.32

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–15503 Filed 7–19–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83643; File No. SRCboeEDGA–2018–012] 

Self-Regulatory Organizations; Cboe 

EDGA Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change Related to Fees 

for Use on Cboe EDGA Exchange, Inc. 

July 16, 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 July 2, 

2018, Cboe EDGA Exchange, Inc. 

(‘‘Exchange’’ or ‘‘EDGA’’) 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 EDGA Rules 

15.1(a) and (c). 

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 to (i) amend its pricing 

model, (ii) eliminate Add Volume Tier 

1 and (iii) amend certain routing fees, 

effective July 2, 2018. 

Currently, the Exchange utilizes a low 

pricing model under which it charges a 

low fee or provides the execution free of 

charge. The Exchange proposes to 

amend its fee schedule to replace its 

current low pricing model to an 

inverted pricing model under which the 

Exchange will charge a fee to add 

liquidity and provide a rebate to remove 

liquidity. 

Displayed Order Fee Change 

In securities priced at or above $1.00, 

the Exchange currently charges a fee of 

$0.00030 per share for Displayed orders 

that add or remove liquidity. The 

Exchange proposes to assess a standard 

rate of $0.00080 per share for Displayed 

orders that add liquidity for securities at 

or above $1.00 that are appended with 

fee codes B, V, Y, 3 or 4. The Exchange 

also proposes to provide a rebate of 

$0.00040 per share for orders that 

remove liquidity for securities at or 

above $1.00 that are appended with fee 

codes N, W, 6, or BB. All Displayed 

orders in securities priced below $1.00 

would continue to be free. 

Non-Displayed Order Fee Change 

In securities priced at or above $1.00, 

the Exchange currently charges a fee of 

$0.00050 per share for Non-Displayed 

orders that remove liquidity other than 

orders that yield fee code DT and DR 

(i.e., orders that yield fee codes HR, MT, 

PT). The Exchange notes that it does not 

assess a fee or provide a rebate for NonDisplayed orders that remove liquidity 

using Midpoint Discretionary Orders 

within discretionary range and yield fee 

code DT. The Exchange does assess a fee 

of $0.00030 for Non-Displayed orders 

that remove liquidity using MidPoint 

Discretionary Orders that are not within 

discretionary range and yield fee code 

DR. The Exchange does not currently 

assess a fee or provide a rebate for NonDisplayed orders that add liquidity 

other than orders that yield fee code DA 

(i.e., orders that yield fee codes DM, HA, 

MM, RP, PA). The Exchange does assess 

a fee of $0.00030 per share for NonVerDate Sep<11>2014 18:06 Jul 19, 2018 Jkt 244001 PO 00000 Frm 00095 Fmt 4703 Sfmt 4703 E:\FR\FM\20JYN1.SGM 20JYN1

daltland on DSKBBV9HB2PROD with NOTICES
Federal Register / Vol. 83, No. 140 / Friday, July 20, 2018 / Notices 34631 

6See e.g., Cboe EDGX U.S. Securities Fee 

Schedule, Fee Codes and Associated Fees. See also 

NYSE National, Inc. Schedule of Fees and Rebates, 

Section II, Routing Fees. 7 15 U.S.C. 78f. 

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

9See e.g., Cboe BYX U.S. Equities Fee Schedule, 

Standard Rates, for transactions that add and 

remove liquidity. See also NYSE National, Inc. 

Schedule of Fees and Rebates, Section I.A General 

Rates, for transaction fees for adding liquidity. 10See e.g., Cboe EDGX U.S. Securities Fee 

Schedule, Fee Codes and Associated Fees. See also 

NYSE National, Inc. Schedule of Fees and Rebates, 

Section II, Routing Fees. 

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

12 17 CFR 240.19b–4(f). 

Displayed orders that add liquidity 

using Midpoint Discretionary orders not 

within dictionary range and yield fee 

code DA. In connection with its 

proposal to implement an inverted 

pricing model, and to simplify its fee 

schedule, the Exchange now proposes to 

provide a rebate of $0.00040 per share 

to all Non-Displayed orders in securities 

priced above $1.00 that remove liquidity 

and to charge $0.00080 per share to all 

Non-Displayed orders that add liquidity. 

The Exchange does not propose to 

amend the fees charged for NonDisplayed orders in securities priced 

below $1.00. 

Additionally, in light of the change in 

pricing model, the Exchange does not 

wish to maintain Add Volume Tier 1 

and accordingly proposes to eliminate it 

from the fee schedule. 

The Exchange next proposes to amend 

certain routing fees. Particularly, for 

securities at or above $1.00, the 

Exchange proposes to amend routing 

fees for the following orders: (i) Routed 

orders, pre and post market, which yield 

fee code 7 and are charged $0.00270 per 

share, (ii) routed orders to EDGX, which 

yield fee code I and are charged 

$0.00290 per share; (iii) routed orders, 

which yield fee code X and are charged 

$0.00290 per share; (iv) routed orders 

using ROUX routing strategy, which 

yield fee code RX and are charged 

$0.00280 per share and (v) routed orders 

using ROUT routing strategy, which 

yield fee code RT and are charged 

$0.00260 per share. The Exchange is 

proposing to amend those rates as 

follows: (i) the fee for routed orders, pre 

and post market, which yield fee code 

7, would be increased to $0.00300 per 

share; (ii) the fee for routed orders to 

EDGX, which yield fee code I, would be 

increased to $0.00300 per share; (iii) the 

fee for routed orders, which yield fee 

code X, would be increased to $0.00300 

per share; (iv) the fee for routed orders 

using ROUX routing strategy, which 

yield fee code RX, would be increased 

to $0.00290 per share and (v) the fee for 

routed orders using ROUT routing 

strategy, which yield fee code RT, 

would be increased to $0.00280 per 

share. The Exchange notes that the 

proposed amounts are in line with 

amounts assessed for similar transaction 

on other exchanges.6

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is 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 believes its proposal to 

replace its current low fee model with 

a taker-maker pricing model where it 

would charge a fee for adding liquidity 

and provide a rebate for removing 

liquidity is equitable and reasonable as 

it would serve to simplify its fee 

schedule to provide a standard rate for 

orders that add liquidity and a standard 

rebate for orders that remove liquidity, 

while also eliminating its pricing 

incentive under Add Volume Tier 1. 

The proposed fee structure provides a 

simple and straightforward model that 

would treat Displayed and NonDisplayed orders equally. 

The Exchange believes providing 

rebates for orders removing liquidity is 

reasonable, equitable and not unfairly 

discriminatory because it provides an 

incentive to bring additional liquidity to 

the Exchange, thereby promoting price 

discovery and enhancing order 

execution opportunities for Members. 

The Exchange believes that assessing 

fees for orders that add liquidity is 

reasonable, equitable and not unfairly 

discriminatory because the Exchange 

must balance the cost of credits for 

orders that remove liquidity. The 

Exchange believes the proposed changes 

are equitable and not unfairly 

discriminatory because they apply 

equally to all members. The Exchange 

also notes that other exchanges utilize 

taker-maker pricing models and notes 

that the proposed fees and rebates are in 

line with the fees and rebates assessed 

on other exchanges for similar 

transactions.9

The elimination of Add Volume Tier 

1 is also equitable and reasonable 

because it would aid in simplifying the 

fee schedule and result in all Members 

being charged the same rates for all 

transactions regardless of their monthly 

volumes. The proposed change also 

applies to all Members. 

The Exchange lastly believes its 

proposed changes relating to certain 

routing fees are reasonable taking into 

account routing costs and also notes that 

the proposed changes are in line with 

amounts assessed by other exchanges.10

The Exchange believes the proposed 

changes to its routing fees are equitable 

and not unfairly discriminatory because 

the proposed changes apply equally to 

all Members. The Exchange notes that 

routing through the Exchange is 

voluntary and also notes that it operates 

in a highly competitive market in which 

market participants can readily direct 

order flow to competing venues or 

providers of routing services if they 

deem fee levels to be excessive. 

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

This proposed rule change does not 

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 this 

change represents a significant 

departure from previous pricing offered 

by the Exchange’s competitors. The 

proposed rates and rebates would apply 

uniformly to all Members, and 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 changes will impair the ability 

of Members or competing venues to 

maintain their competitive standing in 

the financial markets. Further, excessive 

fees would serve to impair an 

exchange’s ability to compete for order 

flow and members rather than 

burdening competition. The Exchange 

believes that its proposal would not 

burden intramarket competition because 

the proposed rate would apply 

uniformly to all Members. 

(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 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 11 and paragraph (f) of Rule 

19b–4 thereunder.12 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 


daltland on DSKBBV9HB2PROD with NOTICES
34632 Federal Register / Vol. 83, No. 140 / Friday, July 20, 2018 / Notices 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Rule 723(c)(1) defines an Improvement Order. 

The Exchange will designate via circular a time of 

no less than 100 milliseconds and no more than 1 

second for Members to indicate the size and price 

at which they want to participate in the execution 

of the Agency Order (‘‘Improvement Orders’’). 

4See Securities Exchange Act Release No. 76998 

(January 29, 2016), 81 FR 6066 (February 4, 2016) 

(File No. 10–221) (Exchange Approval Order).The 

Exchange subsequently changed its name to ISE 

Mercury and then later Nasdaq MRX. 

5 Id. 

6See Securities Exchange Act Release No. 50819 

(December 8, 2004), 69 FR 75093 (December 15, 

2004) (SR–ISE–2003–06) (Order Granting Approval 

of Proposed Rule Change and Amendment No. 1 

Thereto and Notice of Filing and Order Granting 

Accelerated Approval to Amendments No. 2 and 3 

Thereto by the International Securities Exchange, 

Inc. To Establish Rules Implementing a Price 

Improvement Mechanism) (‘‘Adopting Filing’’). 

7The Counter-Side Order may represent interest 

for the EAM’s own account, or interest the EAM has 

solicited from one or more other parties, or a 

combination of both. 

8 Id. 

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– 

CboeEDGA–2018–012 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-CboeEDGA–2018–012. 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–CboeEDGA–2018–012 and 

should be submitted on or before 

August 10, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–15505 Filed 7–19–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83646; File No. SR–MRX– 

2018–24] 

Self-Regulatory Organizations; Nasdaq 

MRX, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change to Amend MRX Rule 723 

July 16, 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 July 5, 

2018, Nasdaq MRX, LLC (‘‘MRX’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change as described in Items I and II 

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 

MRX Rule 723, entitled ‘‘Price 

Improvement Mechanism for Crossing 

Transactions.’’ 

The text of the proposed rule change 

is available on the Exchange’s website at 

http://nasdaqmrx.cchwallstreet.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 aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

MRX proposes to amend Rule 723, 

entitled ‘‘Price Improvement 

Mechanism for Crossing Transactions.’’ 

Specifically, the Exchange proposes to 

amend Rule 723(c)(2) to expand the 

types of Improvement Orders 3 that may 

be entered into the Price Improvement 

Mechanism or ‘‘PIM.’’ The Exchange 

also proposes to amend Rule 723(d)(1)– 

(3) to more specifically clarify terms 

such as ‘‘orders’’ and ‘‘responses’’ in 

that section. 

Background 

The Exchange adopted PIM as part of 

its application to be registered as a 

national securities exchange.4 In 

approving PIM, the Commission noted 

that it was largely based on a similar 

functionality offered by the 

International Securities Exchange, LLC 

(now Nasdaq ISE, LLC) (‘‘ISE’’).5 ISE 

received approval to establish its PIM in 

2004 that would allow an ISE Electronic 

Access Member (‘‘EAM’’) to enter 

matched trades (‘‘Crossing 

Transactions’’).6 As noted in the 

Adopting Filing, a Crossing Transaction 

would be comprised of an order that the 

EAM represents as agent (‘‘Agency 

Order’’) and an order that is executable 

against the Agency Order for the full 

size of the Agency Order (the ‘‘CounterSide Order’’).7 In the Adopting Filing, 

ISE specified in Rule 723(c)(2) that 

Improvement Orders may be for the 

account of a Public Customer or for the 

Member’s own account.8 The Adopting 

Filing noted that ISE would broadcast 


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