Federal Register / Vol. 83, No. 140 / Friday, July 20, 2018 / Notices 34635 

23 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 83367 

(June 4, 2018), 83 FR 26719. 

4 15 U.S.C. 78s(b)(2). 

5 15 U.S.C. 78s(b)(2). 

6 17 CFR 200.30–3(a)(31). 

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. 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’’). 

10:00 a.m. and 3:00 p.m. Copies of such 

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–MRX–2018–24, and should 

be submitted on or before August 10, 

2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.23

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–15504 Filed 7–19–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83647; File No. SR–BOX– 

2018–14] 

Self-Regulatory Organizations; BOX 

Options Exchange LLC; Notice of 

Designation of Longer Period for 

Commission Action on Proposed Rule 

Change To Adopt Rules Governing the 

Trading of Complex Qualified 

Contingent Cross and Complex 

Customer Cross Orders 

July 16, 2018. 

On May 22, 2018, BOX Options 

Exchange LLC (the ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to adopt rules governing the 

trading of Complex Qualified 

Contingent Cross and Complex 

Customer Cross Orders. The proposed 

rule change was published for comment 

in the Federal Register on June 8, 2018.3

The Commission has received no 

comments regarding the proposal. 

Section 19(b)(2) of the Act 4 provides 

that within 45 days of the publication of 

notice of the filing of a proposed rule 

change, or within such longer period up 

to 90 days as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or as to which the 

self-regulatory organization consents, 

the Commission shall either approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether the 

proposed rule change should be 

disapproved. The 45th day for this filing 

is July 23, 2018. 

The Commission is extending the 45- 

day time period for Commission action 

on the proposed rule change. The 

Commission finds that it is appropriate 

to designate a longer period within 

which to take action on the proposed 

rule change so that it has sufficient time 

to consider the proposed rule change. 

Accordingly, pursuant to Section 

19(b)(2) of the Act,5 the Commission 

designates September 6, 2018, as the 

date by which the Commission should 

either approve or disapprove, or 

institute proceedings to determine 

whether to disapprove, the proposed 

rule change (File No. SR–BOX–2018– 

14). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–15507 Filed 7–19–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83644; File No. SR–ISE– 

2018–62] 

Self-Regulatory Organizations; Nasdaq 

ISE, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend ISE 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 ISE, LLC (‘‘ISE’’ 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 ISE 

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://ise.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 

ISE proposes to amend ISE 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 

ISE received approval to establish its 

PIM in 2004 that would allow an ISE 

Electronic Access Member (‘‘EAM’’) to 

enter matched trades (‘‘Crossing 

Transactions’’).4 A Crossing Transaction 


daltland on DSKBBV9HB2PROD with NOTICES
34636 Federal Register / Vol. 83, No. 140 / Friday, July 20, 2018 / Notices 

5The 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. 

6 Id. 

7The broadcast message would include the series, 

price, and size of the Agency Order and whether it 

is to buy or sell. 

8The ISE would broadcast Improvement Orders 

to all Members. Crossing Transactions and 

Improvement Orders would not be displayed in the 

ISE BBO and would not be disseminated to the 

Options Price Reporting Authority. 

9 ISE Rule 723(c)(2). 

10 ISE Rule 723(c)(4). 

11Phlx Rule 1087 permits any member to submit 

for execution an order it represents as agent on 

behalf of a public customer, broker-dealer, or any 

other entity (‘‘PIXL Order’’). 

12BX Rules at Chapter VI, Section 9 provides that 

‘‘A Participant may electronically submit for 

execution an order it represents as agent on behalf 

of a Public Customer, broker dealer, or any other 

entity (‘‘PRISM Order’’). 

13 ISE Rule 100(a)(51) provides the term 

‘‘Professional Order’’ means an order that is for the 

account of a person or entity that is not a Priority 

Customer. 

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’’).5 ISE Rule 723(c)(2) 

provided that Improvement Orders may 

be for the account of a Public Customer 

or for the Member’s own account.6 The 

ISE noted it would broadcast Crossing 

Orders to all Members.7 During a three 

second auction, all ISE Members could 

enter ‘‘Improvement Orders,’’ in penny 

increments, to improve the price of the 

Agency Order.8 Improvement Orders 

may be for the account of a Public 

Customer or for the Member’s own 

account.9 During the exposure period, 

the aggregate size of the best prices, 

including the Counter-Side Order, 

Improvement Orders, and any change to 

either, would continually be updated 

and broadcast to all Members.10

Rule 723(c)(2) 

With respect to the current limitation 

of Improvement Orders for the account 

of a Public Customer or for the 

Member’s own account, ISE noted in its 

Adopting Filing that ‘‘all ISE Members 

would be permitted to participate in a 

PIM . . . unrelated orders could 

compete in standard increments to trade 

with the Agency Order in the PIM. Such 

unrelated orders could include agency 

orders on behalf of Public Customers, 

market makers on other exchanges, and 

non-ISE member broker-dealers, as well 

as non-Improvement orders submitted 

by ISE members.’’ 

At this time, the Exchange proposes to 

permit any ISE Member to enter an 

Improvement Order marked as a 

response to a PIM auction similar to 

Nasdaq PHLX LLC (‘‘Phlx’’) 11 and 

Nasdaq BX, Inc. (‘‘BX’’) 12 rules. The 

Exchange no longer desires to limit 

Members who may enter Improvement 

Orders into PIM to simply those orders 

for the account of a Public Customer or 

for the Member’s own account. The 

Exchange desires to expand the types of 

orders that may be entered as 

Improvement Orders similar to Phlx and 

BX. The Exchange is therefore removing 

this limitation in Rule 723(c)(2) so that 

the proposed rule text would read: 

‘‘Improvement Orders may be entered 

by all Members in one-cent increments 

at the same price as the Crossing 

Transaction or at an improved price for 

the Agency Order, and for any size up 

to the size of the Agency Order.’’ 

Rule 723(d)(1)–(3) 

The Exchange proposes to amend 

Rule 723(d)(1)–(3), which explains the 

manner in which a PIM Order shall be 

allocated to conform this text to the 

change which is proposed in Rule 

723(c)(2). Rule 723(d)(1) currently 

provides, ‘‘At a given price, Priority 

Customer interest is executed in full 

before Professional Orders 13 and any 

other interest of Members (i.e., 

proprietary interest from Electronic 

Access Members and Exchange market 

makers).’’ The Exchange proposes to 

expand upon the term interest by 

adopting the defined terms ‘‘Priority 

Customer Interest’’ for Priority Customer 

Orders and Improvement Orders from 

Priority Customers, and ‘‘Professional 

Interest’’ for Professional Orders, 

Improvement Orders from non-Priority 

Customers, and Market Maker quotes. 

The Exchange believes that adding these 

defined terms would clarify what is 

meant by interest. As proposed, 

Professional Interest identifies all orders 

(including Improvement Orders) that are 

not for the account of a Priority 

Customer as well as Market Maker 

quotes, thereby incorporating the 

current reference to ‘‘Professional 

Orders’’ within its terms and 

eliminating the necessity to include the 

current rule text which provides, ‘‘any 

other interest of Members (i.e., 

proprietary interest from Electronic 

Access Members and Exchange market 

makers).’’ 

The Exchange proposes to amend 

Rule 723(d)(2) which currently 

provides, ‘‘After Priority Customer 

interest at a given price, Professional 

Orders and Members’ interest will 

participate in the execution of the 

Agency Order based upon the 

percentage of the total number of 

contracts available at the price that is 

represented by the size of the Members’ 

interest.’’ The Exchange proposes to 

replace the reference to ‘‘Priority 

Customer interest’’ with the defined 

term ‘‘Priority Customer Interest’’ 

proposed to be added in Rule 723(d)(1), 

as described above. The Exchange also 

proposes to change ‘‘Professional 

Orders’’ to ‘‘Professional Interest’’ 

which will be defined in Rule 723(d)(1) 

to include Professional Orders as well as 

Improvement Orders from non-Priority 

Customers and Market Maker quotes. 

Since Professional Interest is defined in 

this manner, the Exchange also proposes 

to remove the language referring to 

‘‘Members’ interest’’ from the sentence 

because Professional Interest would 

include all orders from non-Priority 

Customers and Market Maker quotes. 

The Exchange proposes to amend 

Rule 723(d)(3) to again remove the rule 

text relating to ‘‘Members’ interest’’ and 

instead utilize the defined ‘‘Professional 

Interest’’ term consistent with proposed 

changes to Rule 723(d)(1) and (2). The 

Exchange also proposes to make similar 

changes to add the term ‘‘Professional 

Interest’’ to the sentence in Rule 

723(d)(3) that currently reads: 

‘‘Thereafter, all other orders, Responses, 

and quotes at the price point will 

participate in the execution of the 

Agency Order based upon the 

percentage of the total number of 

contracts available at the price that is 

represented by the size of the order, 

Response or quote.’’ In particular, the 

language related to ‘‘other orders, 

Responses, and quotes’’ in this sentence 

will be replaced with ‘‘Professional 

Interest’’ since this term includes all 

orders from non-Priority Customers and 

Market Maker quotes, as described 

above. The Exchange notes that the 

references in this sentence to 

‘‘Responses,’’ currently an undefined 

term, should instead refer to the defined 

term ‘‘Improvement Orders,’’ and the 

proposed changes should therefore 

clarify how Rule 723(d)(3) will apply. 

Finally, the Exchange proposes to 

replace the word ‘‘Priority Customer 

Orders’’ with ‘‘Priority Customer 

Interest’’ as defined in proposed Rule 

723(d)(1) to clarify that those orders as 

well as responses (i.e., Improvement 

Orders from Priority Customers) are 

applicable. The proposed amendments 

add more specificity to the exact order/ 

quotes and responses which apply in 

this section. 

The amendments to Rule 723(d)(1)– 

(3) conform to the proposed amendment 

to Rule 723(c)(2) and other proposed 

amendments as described above which 

do not change the manner in which PIM 

operates today, rather the other word 

changes seek to bring specificity to the 


daltland on DSKBBV9HB2PROD with NOTICES
Federal Register / Vol. 83, No. 140 / Friday, July 20, 2018 / Notices 34637 

14 15 U.S.C. 78f(b). 

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

16 15 U.S.C. 78s(b)(3)(A). 

17 17 CFR 240.19b–4(f)(6). As required under Rule 

19b–4(f)(6)(iii), the Exchange provided the 

Commission with written notice of its intent to file 

the proposed rule change, along with a brief 

description and the text of the proposed rule 

change, at least five business days prior to the date 

of filing of the proposed rule change, or such 

shorter time as designated by the Commission. 

18 17 CFR 240.19b–4(f)(6). 

19 17 CFR 240.19b–4(f)(6)(iii). 

20For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

manner in which order, quotes and 

responses are treated. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,14 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,15

in particular, in that it is designed to 

promote just and equitable principles of 

trade, 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. 

The Exchange’s proposal to amend 

Rule 723(c)(2) seeks to broaden the 

types of orders that may be submitted as 

Improvement Orders into PIM. As ISE 

previously noted, all Members are able 

to participate in a PIM today as an 

unrelated order that rests on the Order 

Book. Unrelated orders that rest on the 

Order Book can participate in PIM and 

trade with the Agency Order in the PIM. 

The Exchange proposes to allow all 

Members to submit Improvement Orders 

directly into PIM to provide an even 

greater number of ISE Members to more 

directly participate in PIM and provide 

price improvement. The Exchange’s 

proposal is consistent with the Act 

because allowing a greater number of 

Members to directly respond with an 

Improvement Order in a PIM will 

increase the likelihood of price 

improvement in that auction thereby 

removing impediments to and 

perfecting the mechanism of a free and 

open market and a national market 

system. This approach will enable 

greater participation in PIM auctions. 

The Exchange’s proposal to amend 

Rule 723(d) conforms the text with 

changes made with respect to the 

proposal to amend Rule 723(c)(2) for 

consistency. The proposed changes to 

remove the more generic ‘‘Members’ 

interest’’ and instead substitute very 

specific terms to define interest and add 

quotes provide more specificity as to the 

manner in which interest entered into 

PIM will be allocated. The Exchange’s 

proposed amendments to Rule 

723(d)(1)–(3) are consistent with the Act 

because the amendments seek to 

conform the rule text to the proposed 

Rule 723(c)(2) amendment and describe 

in greater detail how interest will be 

allocated by defining terms and eligible 

interest and this transparency benefits 

investors and the public interest. 

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’s proposal to amend Rule 

723(c)(2) to broaden the types of orders 

that may be submitted as Improvement 

Orders into PIM does not unduly 

burden competition because all 

Members will be permitted to submit 

Improvement Orders directly into PIM 

to provide an even greater number of 

ISE Members to more directly 

participate in PIM. The amendments to 

Rule 723(d) will conform the rule text 

and bring clarity to the allocation 

method for PIM. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the proposed rule change 

does not (i) significantly affect the 

protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 16 and Rule 19b– 

4(f)(6) thereunder.17

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act 18 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6)(iii) 19

permits the Commission to designate a 

shorter time if such action is consistent 

with the protection of investors and the 

public interest. The Exchange has asked 

the Commission to waive the 30-day 

operative delay so that it may allow all 

Members to submit Improvement Orders 

directly into PIM to provide an even 

greater number of ISE Members an 

opportunity to more directly participate 

in PIM and provide price improvement. 

The Exchange states that it will issue an 

Options Trader Alert to notify Members 

of the date within which this 

functionality will be implemented. The 

Commission believes the waiver of the 

operative delay is consistent with the 

protection of investors and the public 

interest. Accordingly, the Commission 

hereby waives the operative delay and 

designates the proposed rule change 

operative upon filing.20

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 shall institute proceedings 

to determine whether the proposed rule 

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– 

ISE–2018–62 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE, Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–ISE–2018–62. 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 


daltland on DSKBBV9HB2PROD with NOTICES
34638 Federal Register / Vol. 83, No. 140 / Friday, July 20, 2018 / Notices 

21 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). 

5See e.g., Cboe BZX U.S. Securities Fee Schedule, 

Fee Codes and Associated Fees, fee code X. 

6 15 U.S.C. 78f. 

7 15 U.S.C. 78f(b)(4). 

8See e.g., Cboe BZX Equities Exchange Fee 

Schedule, Fee Codes and Associated Fees, fee code 

X. 

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

10 17 CFR 240.19b–4(f). 

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 such 

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–2018–62, and should 

be submitted on or before August 10, 

2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.21

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–15499 Filed 7–19–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83638; File No. SR– 

CboeBYX–2018–011] 

Self-Regulatory Organizations; Cboe 

BYX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change Related to Fees 

for Use on Cboe BYX Exchange, Inc. 

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 2, 

2018, Cboe BYX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BYX’’) 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 to modify 

certain Routing Fees. 

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, effective July 2, 2018, to 

modify pricing for orders in securities at 

or above $1.00 that are routed to a 

displayed market to remove liquidity 

using Parallel D, Parallel 2D, ROUT, 

ROUX or Post [sic] Away routing 

strategy, which orders yield fee code X. 

The Exchange currently assesses 

$0.00290 per share for these orders. The 

Exchange is proposing to increase the 

rate from $0.00290 per share to 

$0.00300 per share. The Exchange notes 

that the proposed amount is in line with 

amounts assessed for similar 

transactions on another exchange.5

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6 of the Act,6

in general, and furthers the objectives of 

Section 6(b)(4),7 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. 

Particularly, the Exchange believes its 

proposed routing fee change is 

reasonable taking into account routing 

costs and also notes that the proposed 

change is in line with the amount 

assessed for similar transactions by 

another exchange.8 The Exchange 

believes the proposed change is 

equitable and not unfairly 

discriminatory because it applies 

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 

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 believes the proposed routing 

fee will not impose an undue burden on 

competition because the Exchange will 

uniformly assess the affected routing 

fees on all Members. Additionally, 

Members may opt to disfavor the 

Exchange’s pricing if they believe that 

alternatives offer them better value or if 

they view the proposed fee as excessive. 

Further, excessive fees for participation 

would serve to impair an exchange’s 

ability to compete for order flow and 

members 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 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 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 


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