Federal Register / Vol. 83, No. 140 / Friday, July 20, 2018 / Notices 34621 

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 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 ‘‘LMP Securities’’ means a list of securities 

included in the Liquidity Management Program, the 

universe of which will be determined by the 

Exchange and published in a circular distributed to 

Members and on the Exchange’s website. Such LMP 

Securities will include all Cboe-listed ETPs and 

certain non-Cboe-listed ETPs for which the 

Exchange wants to incentivize Members to provide 

enhanced market quality. All Cboe-listed securities 

will be LMP Securities immediately upon listing on 

the Exchange. The Exchange will not remove a 

security from the list of LMP Securities without 30 

days prior notice. See Cboe BZX U.S. Equities 

Exchange Fee Schedule. 

7 ‘‘NBBO Time’’ means the average of the 

percentage of time during regular trading hours 

during which the Member maintains at least 100 

shares at each of the NBB and NBO. See Cboe BZX 

U.S. Equities Exchange Fee Schedule. 

8 ‘‘NBBO Size Time’’ means the percentage of 

time during regular trading hours during which 

there are size-setting quotes at the NBBO on the 

Exchange. See Cboe BZX U.S. Equities Exchange 

Fee Schedule. 

9 ‘‘Displayed Size Time’’ means the percentage of 

time during regular trading hours during which the 

Member maintains at least 2,500 displayed shares 

on the bid and separately maintains at least 2,500 

displayed shares on the offer that are priced no 

more than 2% away from the NBB and NBO, 

respectively. See Cboe BZX U.S. Equities Exchange 

Fee Schedule. 

10The Exchange notes that all BZX-listed 

securities are by definition LMP Securities. 

11 15 U.S.C. 78f. 

12 15 U.S.C. 78f(b)(4). 

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–2018–023 and 

should be submitted on or before 

August 10, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–15498 Filed 7–19–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83640; File No. SR– 

CboeBZX–2018–050] 

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. 

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 5, 

2018, Cboe BZX Exchange, Inc. 

(‘‘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 of the Exchange pursuant to 

BZX 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 applicable to its equities 

trading platform (‘‘BZX Equities’’). 

Particularly, the Exchange proposes to 

amend the Tape B Volume and Quoting 

Tiers effective July 2, 2018. 

The Exchange currently offers one 

Tape B Volume and Quoting Tier under 

footnote 13, which provides an 

additional rebate of $0.0001 per share 

for orders that add liquidity in Tape B 

securities where a Member is enrolled 

in at least 50 LMP Securities 6 for which 

it meets the following criteria for at least 

50% of the trading days in the 

applicable month: (1) Member has a 

NBBO Time 7 greater than or equal to 

15% or NBBO Size Time 8 is equal to or 

greater than 25%; and (2) Member has 

a Displayed Size Time 9 equal to or 

greater than 90%. Such rebates are 

applicable to orders that add liquidity 

which are appended with fee code B. 

The Exchange proposes to make two 

changes to the Tape B Volume and 

Quoting Tier. 

First, the Exchange proposes to 

require that a Member is enrolled in and 

meets the requirements for at least 100 

LMP Securities, an increase from the 

current requirement of 50. Second, the 

Exchange is proposing to require that at 

least 10 of the LMP Securities that a 

Member is enrolled in and meets the 

requirements for are BZX-listed 

securities.10

2. Statutory Basis 

The Exchange believes that the 

proposed rule changes are consistent 

with the objectives of Section 6 of the 

Act,11 in general, and furthers the 

objectives of Section 6(b)(4),12 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 

proposal reflects a change to a 

competitive pricing structure designed 

to incent market participants to direct 

their order flow to the Exchange and 

enhance market quality in LMP 

Securities, including BZX-listed 

securities, and in Tape B securities. 

The Exchange believes that increasing 

the threshold for Members to be 

enrolled in and meet the requirements 

for at least 50 LMP Securities to 100 

LMP Securities is a reasonable means to 

incentivize Members to meet certain 

quoting standards in additional LMP 

Securities that the Exchange believes 

will narrow spreads, increase size at the 

inside, and increase liquidity depth on 


daltland on DSKBBV9HB2PROD with NOTICES
34622 Federal Register / Vol. 83, No. 140 / Friday, July 20, 2018 / Notices 

13 15 U.S.C. 78s(b)(3)(A). 

14 17 CFR 240.19b–4(f). 15 17 CFR 200.30–3(a)(12). 

the Exchange in such LMP Securities, 

which will increase market quality in 

LMP Securities, to the benefit of all 

market participants. Similarly, the 

Exchange believes that requiring that at 

least 10 of the LMP Securities that a 

Member is enrolled in and meets the 

requirements for are BZX-listed 

securities in order to receive the Tape B 

Volume and Quoting Tier rebate is a 

reasonable means to incentive enhanced 

quoting in BZX-listed securities in order 

to narrow spreads, increase size at the 

inside, and increase liquidity depth on 

the Exchange BZX-listed securities, to 

the benefit of all market participants 

and enhance the Exchange’s standing as 

a listing venue. 

The Exchange further believes that the 

proposed changes represent an equitable 

allocation of reasonable dues, fees, and 

other charges because the thresholds 

necessary to achieve the Tape B Volume 

and Quoting Tier would continue to 

encourage Members to add additional 

liquidity to the Exchange in LMP 

Securities, including BZX-listed 

securities. The proposed changes also 

are not unreasonably discriminatory as 

they apply equally to all Members. 

(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 the 

changes burden competition, but 

instead, enhance competition, as these 

changes are intended to increase the 

competitiveness of the Exchange as it is 

designed to enhance the market quality 

of LMP Securities, including BZX-listed 

securities, 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 market 

quality in LMP Securities, including 

BZX-listed securities, and Tape B 

securities. As such, the proposal is a 

competitive proposal that is intended to 

add additional liquidity to the 

Exchange, which will, in turn, benefit 

the Exchange and all Exchange 

participants and enhance the 

Exchange’s standing as a listing venue. 

(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 13 and paragraph (f) of Rule 

19b–4 thereunder.14 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–2018–050 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–2018–050. 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–2018–050 and 

should be submitted on or before 

August 10, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–15506 Filed 7–19–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meetings 

FEDERAL REGISTER CITATION OF PREVIOUS

ANNOUNCEMENT: 83 FR 32932, 16 July 

2018. 

PREVIOUSLY ANNOUNCED TIME AND DATE OF

THE MEETING: Wednesday, July 18, 2018 

at 10:00 a.m. 

CHANGES IN THE MEETING: The following 

item will not be considered during the 

Open Meeting on Wednesday, July 18, 

2018: 

• Whether to propose amendments to 

the disclosure requirements in Rule 3– 

10 and Rule 3–16 of Regulation S–X. 

CONTACT PERSON FOR MORE INFORMATION: 

For further information and to ascertain 

what, if any, matters have been added, 

deleted or postponed, please contact the 

Office of the Secretary at (202) 551– 

5400. 

Dated: July 18, 2018. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2018–15673 Filed 7–18–18; 4:15 pm] 

BILLING CODE 8011–01–P 


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