Federal Register / Vol. 83, No. 150 / Friday, August 3, 2018 / Notices 38191 

29 17 CFR 200.30–3(a)(12) and (59). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

5The Exchange also proposes to remove the 

extraneous word ‘‘solely’’ from the second sentence 

of Rule 11.6(n)(2). The removal of this word does 

not alter the operation of the Super Aggressive 

order instruction. 

6The Exchange notes that its affiliates, Cboe BZX 

Exchange, Inc. and Cboe EDGX Exchange, Inc., also 

recently filed to adopt the functionality described 

in this filing and such functionality is applicable on 

such exchanges because orders equivalent to orders 

with a Post Only instruction can be entered on such 

exchanges and do not always remove against 

contra-side interest on entry pursuant to such 

exchanges’ fee schedules. See SR–CboeBZX–2018– 

051 and SR–CboeEDGX–2018–025, each filed July 

11, 2018. 

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– 

CboeBYX–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–CboeBYX–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–CboeBYX–2018–012, and 

should be submitted on or before 

August 24, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.29

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2018–16596 Filed 8–2–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83739; File No. SR– 

CboeEDGA–2018–013] 

Self-Regulatory Organizations; Cboe 

EDGA Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change to Exchange 

Rule 11.6, Definitions, To Amend the 

Operation of the Super Aggressive 

Order Instruction 

July 30, 2018. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on July 16, 

2018, Cboe EDGA Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGA’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Exchange has 

designated this proposal as a ‘‘noncontroversial’’ proposed rule change 

pursuant to Section 19(b)(3)(A) of the 

Act 3 and Rule 19b–4(f)(6) thereunder,4

which renders it 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 proposed rule 

change to amend paragraph (n)(2) of 

Exchange Rule 11.6 related to Super 

Aggressive order instructions. 

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 the 

description of the Super Aggressive 

instruction under paragraph (n)(2) of 

Exchange Rule 11.6, Routing/Posting 

Instructions to: (i) Specify that an 

incoming order with a Post Only 

instruction that would lock a resting 

order with a Super Aggressive 

instruction must include a Displayed 

instruction for the order with a Super 

Aggressive instruction to engage in a 

liquidity swap and execute against that 

incoming order; and (ii) modify 

language from the description of the 

Super Aggressive instruction that states 

if an order that does not contain a Super 

Aggressive instruction maintains higher 

priority than one or more Super 

Aggressive eligible orders, the Super 

Aggressive eligible order(s) with lower 

priority would not be converted and the 

incoming order with a Post Only 

instruction would be posted or 

cancelled in accordance with Exchange 

Rule 11.6(n)(4).5

At the outset, the Exchange notes that 

based on the Exchange’s current pricing 

schedule, because EDGA offers rebates 

to remove liquidity and charges fees to 

add liquidity, orders with a Post Only 

instruction remove liquidity on entry 

against resting interest and are not 

booked/displayed if there is contra-side 

interest. As such, the descriptions below 

of the changes to Rule 11.6(n)(2), 

including the examples of the revised 

operation of the Super Aggressive 

functionality are currently inapplicable 

because orders with a Post Only 

instruction execute against resting 

liquidity first, before the logic discussed 

below is triggered. However, consistent 

with its prior practice, the Exchange is 

proposing the changes to Rule 11.6(n)(2) 

related to the Super Aggressive 

instruction in this filing in order to 

retain consistent rules and functionality 

with its affiliated exchanges 6 to the 


amozie on DSK3GDR082PROD with NOTICES1
38192 Federal Register / Vol. 83, No. 150 / Friday, August 3, 2018 / Notices 

7The term ‘‘System’’ is defined as ‘‘the electronic 

communications and trading facility designated by 

the Board through which securities orders of Users 

are consolidated for ranking, execution and, when 

applicable, routing away.’’ See Exchange Rule 

1.5(cc). 

8See Exchange Rule 1.5(d). 

9The Exchange will execute an order with a Post 

Only instruction priced at or above $1.00 in certain 

circumstances where the value of such execution 

when removing liquidity equals or exceeds the 

value of such execution if the order instead posted 

to the EDGA Book and subsequently provided 

liquidity, including the applicable fees charged or 

rebates provided. See Exchange Rule 11.6(n)(4). As 

noted above, due to the current EDGA pricing 

schedule, which offers rebates to remove liquidity, 

orders with a Post Only instruction are not booked/ 

displayed if there is contra-side interest and instead 

remove liquidity against resting interest. 

Accordingly, an order with a Super Aggressive 

instruction will not be converted under the current 

fee schedule. 

10But see supra note 9. 

11See id. 

12See Exchange Rule 11.6(n)(7). 13See supra note 9. 

extent the Exchange decides to propose 

changes to its fee structure in the future 

such that ‘‘Post Only’’ functionality is 

more relevant to the operation of the 

Exchange. 

Super Aggressive is an optional order 

instruction that directs the System 7 to 

route an order when an away Trading 

Center locks or crosses the limit price of 

the order resting on the EDGA Book.8 If 

an order with a Super Aggressive 

instruction were to be locked by an 

incoming order with a Post Only 

instruction that does not remove 

liquidity pursuant to Rule 11.6(n)(4),9

the order with a Super Aggressive 

instruction would be converted to an 

executable order and would remove 

liquidity against such incoming order. 

First, the Exchange proposes to 

modify the Super Aggressive instruction 

to require that the incoming order with 

a Post Only instruction that would lock 

a resting order with a Super Aggressive 

instruction must include a Displayed 

instruction for an execution to occur. 

The Super Aggressive instruction is 

generally utilized for best execution 

purposes because it enables the order to 

immediately attempt to access displayed 

liquidity on another Trading Center that 

is either priced equal to or better than 

the order with a Super Aggressive 

instruction’s limit price. The Super 

Aggressive instruction would also 

enable the order to execute against an 

equally priced incoming order with a 

Post Only instruction that would 

otherwise not execute by being willing 

to act as the liquidity remover in such 

a scenario.10 Under EDGA Rules, the 

incoming order with a Post Only 

instruction could include either a 

Displayed or Non-Displayed instruction 

for it to engage in a liquidity swap with 

an order with a Super Aggressive 

instruction resting on the EDGA Book. 

Consistent with the Super Aggressive 

instruction to access liquidity displayed 

on other Trading Centers, the Exchange 

proposes to amend the Super Aggressive 

instruction such that an order with such 

instruction would execute against an 

equally priced incoming order with a 

Post Only instruction only when such 

order would be displayed on the EDGA 

Book. The order with a Super 

Aggressive instruction would act as a 

liquidity remover in such a scenario. 

Should an equally priced incoming 

order with a Post Only instruction not 

include a Displayed instruction, the 

resting order with a Super Aggressive 

instruction would remain on the EDGA 

Book and await an execution where it 

may act as a liquidity provider. An 

incoming order with a Post Only 

instruction and a Non-Displayed 

instruction would be posted to the 

EDGA Book at its limit price, creating an 

internally locked non-displayed book. 

As is the case today, an execution 

would continue to occur where an 

incoming order with a Post Only 

instruction is priced more aggressively 

than the order with a Super Aggressive 

instruction resting on the EDGA Book, 

regardless of whether the incoming 

order included a Displayed or NonDisplayed instruction.11

The Exchange notes that Users 

seeking to act as a liquidity remover 

once resting on the EDGA Book in all 

cases (i.e., seeking to execute against 

incoming Post Only orders regardless of 

the display instruction) would be able to 

attach the Non-Displayed Swap (‘‘NDS’’) 

instruction to their order.12 The NDS 

instruction is similar to the Super 

Aggressive instruction, in that it also 

would be an optional order instruction 

that a User may include on an order that 

directs the Exchange to have such order, 

when resting on the EDGA Book, 

execute against an incoming order with 

a Post Only instruction rather than have 

it be locked by the incoming order. 

Under EDGA Rules, because orders with 

either instruction (i.e., Super Aggressive 

and NDS) would execute against 

incoming orders with a Post Only 

instruction regardless of whether the 

order is to be displayed, the instructions 

are currently identical with two 

exceptions. First, an order with a Super 

Aggressive instruction would not 

convert into a liquidity removing order 

and execute against an order with a Post 

Only instruction if there is an order on 

the order book with priority over such 

order that does not also contain a Super 

Aggressive instruction. As further 

described below, the Exchange is 

proposing to modify this feature of the 

Super Aggressive instruction. The 

second current distinction between the 

two instructions, which would remain, 

is that an order with a Super Aggressive 

instruction can be displayed on the 

Exchange whereas an order with the 

NDS instruction must be non-displayed. 

As amended, the additional distinction 

between the two instructions would be 

whether an order would become a 

liquidity removing order against any 

order with a Post Only instruction that 

would lock it (i.e., NDS) or only when 

the order with a Post Only instruction 

that would lock it also contains a 

Displayed instruction (i.e., Super 

Aggressive). 

The below examples illustrate the 

proposed behavior should the Exchange 

propose to change its fee schedule such 

that ‘‘Post Only’’ functionality is more 

relevant to the operation of the 

Exchange.13 Assume the National Best 

Bid and Offer (‘‘NBBO’’) is $10.00 by 

$10.10. An order to buy is displayed on 

the EDGA Book at $10.00 with a Super 

Aggressive instruction. There are no 

other orders resting on the EDGA Book. 

An order to sell at $10.00 with a Post 

Only and Displayed instruction is 

entered. The incoming order to sell 

would execute against the resting order 

to buy at $10.00, the locking price, 

because the incoming order included a 

Displayed instruction. The order to buy 

would act as the liquidity remover and 

the order to sell would act as the 

liquidity adder. However, no execution 

would occur if the incoming order to 

sell included a Non-Displayed 

instruction. Instead, the incoming order 

to sell would be posted non-displayed 

to the EDGA Book at $10.00, its limit 

price, causing the EDGA Book to be 

internally locked. 

Second, the Exchange proposes to 

enable an incoming order with a Post 

Only instruction and Displayed 

instruction to execute against an equally 

priced non-displayed order with a 

Super Aggressive instruction where a 

non-displayed order without a Super 

Aggressive instruction maintains time 

priority over the Super Aggressive 

eligible order at that price. In such case, 

the non-displayed, non-Super 

Aggressive order would seek to remain 

a liquidity provider and would cede 

time priority to the order with a Super 

Aggressive instruction, which is willing 

to act as a liquidity remover to facilitate 

the execution. The Exchange proposes 

to effect this change by modifying 

language in the description of the Super 

Aggressive instruction to state that if an 

order displayed on the EDGA Book does 


amozie on DSK3GDR082PROD with NOTICES1
Federal Register / Vol. 83, No. 150 / Friday, August 3, 2018 / Notices 38193 

14See Exchange Rule 11.6(n)(7). See also 

Securities Exchange Act Release No. 83521 (June 

26, 2018) (SR-CboeEDGA–2018–011) (including an 

example where an order cedes execution priority to 

an order with an NDS instruction). 

15See supra note 9. 

16Such order would be posted to the EDGA Book 

in accordance with the Exchange’s re-pricing 

instructions to comply with Rule 610(d) of 

Regulation NMS. See Exchange Rule 11.6(l)(1). See 

also 242 CFR 242.610(d). 

17This behavior is consistent with the operation 

of the Exchange’s NDS instruction. See supra note 

14. 

18The execution occurs here because the value of 

the execution against the buy order when removing 

liquidity exceeds the value of such execution if the 

order instead posted to the EDGA Book and 

subsequently provided liquidity, including the 

applicable fees charged or rebates provided. See 

supra note 9. 

19 15 U.S.C. 78f(b). 

20 15 U.S.C. 78f(b)(5). 

21See Exchange Rule 11.6(n)(7). 

not contain a Super Aggressive 

instruction and maintains higher 

priority than one or more Super 

Aggressive eligible orders, the Super 

Aggressive eligible order(s) with lower 

priority will not be converted and the 

incoming order with a Post Only 

instruction will be posted or cancelled 

in accordance with Exchange Rule 

11.6(n)(4). Thus, an order with a Super 

Aggressive instruction, whether 

displayed on the Exchange or nondisplayed, would never execute ahead 

of a displayed order that maintains time 

priority. 

Should the Exchange determine to 

change its fee schedule, the operation of 

the Super Aggressive instruction with 

respect to incoming contra-side orders 

received by the Exchange, would be 

designed to facilitate executions that 

would otherwise not occur due to the 

Post Only instruction requirement to not 

remove liquidity. Users entering orders 

with the Super Aggressive instruction 

tend to be fee agnostic because an order 

with a Super Aggressive instruction is 

willing to route to an away Trading 

Center displaying an equally or better 

priced order (i.e., pay a fee at such 

Trading Center). Meanwhile, an order 

without the Super Aggressive 

instruction elects to remain on the 

EDGA Book as the liquidity provider 

until it may execute against an incoming 

order that would act as the liquidity 

remover. Therefore, if the fee schedule 

is changed in the future, the proposed 

change to enable the Super Aggressive 

order to execute against an incoming 

order, regardless of whether a nondisplayed order without a Super 

Aggressive instruction maintains 

priority, would be consistent with the 

User’s intent for both orders—one 

choses to remain the liquidity provider 

and forgo the execution while the other 

is willing to execute irrespective of 

whether it is the liquidity provider or 

remover. The Exchange notes that 

similar behavior occurs for orders 

utilizing the NDS instruction,14 which 

also would seek to engage in a liquidity 

swap against incoming orders with a 

Post Only instruction. The Exchange, 

however, has proposed to retain the 

existing limitation with respect to 

orders displayed on the EDGA Book. 

The following example illustrates the 

operation of an order with a Super 

Aggressive instruction under the 

proposed rule change should the 

Exchange propose to change its fee 

schedule such that ‘‘Post Only’’ 

functionality is more relevant to the 

operation of the Exchange.15 Assume 

the NBBO is $10.00 by $10.04. There is 

a non-displayed Limit Order to buy 

resting on the EDGA Book at $10.03 

(‘‘Order A’’). A second non-displayed 

Limit Order to buy at $10.03 is then 

entered with a Super Aggressive 

instruction and has time priority behind 

the first Limit Order (‘‘Order B’’). An 

order to sell with a Post Only 

instruction priced at $10.03 is entered. 

Under current behavior, the incoming 

sell order with a Post Only instruction 

would not execute against Order A and 

would post to the EDGA Book 16 because 

the value of such execution against the 

resting buy order when removing 

liquidity does not equal or exceed the 

value of such execution if the order 

instead posted to the EDGA Book and 

subsequently provided liquidity, 

including the applicable fees charged or 

rebates provided. Further, the incoming 

sell order with a Post Only instruction 

could not execute against Order B 

because Order A is on the EDGA Book 

and maintains time priority over Order 

B. Under the proposed change, the 

incoming sell order, if it contained a 

Displayed instruction, would execute 

against Order B and Order B would 

become the remover of liquidity while 

the incoming sell order with a Post Only 

instruction would become the liquidity 

provider. In such case, Order A cedes 

priority to Order B because Order A did 

not also include a Super Aggressive 

instruction 17 and thus the User that 

submitted the order did not indicate the 

preference to be treated as the remover 

of liquidity in favor of an execution; 

instead, by not using Super Aggressive, 

a User indicates the preference to 

remain posted on the EDGA Book as a 

liquidity provider. However, if the 

incoming sell order was priced at 

$10.02, it would receive sufficient price 

improvement to execute upon entry 

against all resting buy Limit Orders in 

time priority at $10.03.18 Also, if Order 

A was displayed on the EDGA Book, no 

execution would occur, as the proposed 

change would only apply to nondisplayed liquidity. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 19 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 20

in particular, in that it is designed to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

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. 

The proposed changes to the Super 

Aggressive order instruction are 

designed to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in 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. The Super 

Aggressive instruction is an optional 

feature that is intended to reflect the 

order management practices of various 

market participants. The proposal to 

limit the execution of an order with a 

Super Aggressive instruction to execute 

against incoming orders with a Post 

Only instruction that also contain a 

Displayed instruction promotes just and 

equitable principles of trade because it 

would enable Users to elect an order 

instruction consistent with their intent 

to execute only against displayed 

orders, in part, for best execution 

purposes. The amended Super 

Aggressive instruction would ensure 

executions at the best available price 

displayed on another Trading Center or 

against an incoming order that would 

have been displayed on the EDGA Book. 

Users seeking to act as a liquidity 

remover once resting on the EDGA Book 

and execute against an incoming order 

with a Post Only and Non-Displayed 

instruction may attach the NDS 

instruction to their order.21

Should the Exchange determine to 

change its fee schedule such that ‘‘Post 

Only’’ functionality is more relevant to 

the operation of the Exchange, the 

proposed change to the Super 

Aggressive instruction would also 

remove impediments to and perfect the 

mechanism of a free and open market 

and a national market system because it 

would be designed to facilitate 


amozie on DSK3GDR082PROD with NOTICES1
38194 Federal Register / Vol. 83, No. 150 / Friday, August 3, 2018 / Notices 

22See supra note 9. 

23See supra note 14. 

24See supra note 9. 

25 15 U.S.C. 78s(b)(3)(A)(iii). 26 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

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. The Exchange has satisfied this 

requirement. 

27 17 CFR 240.19b-4(f)(6)(iii). 

28See note 6 supra. 

executions that would otherwise not 

occur due to the Post Only instruction 

requirement to not remove liquidity 

under such amended fee schedule.22

The proposal enables non-displayed 

Super Aggressive orders to execute 

against an incoming order, regardless of 

whether another non-displayed order 

without a Super Aggressive instruction 

maintains priority consistent with the 

User’s intent for both orders—one 

chooses to remain the liquidity provider 

and forgo the execution while the other 

is willing to execute irrespective of 

whether it is the liquidity provider or 

remover. The non-Super Aggressive 

order would seek to remain a liquidity 

provider and would cede its time 

priority to the order with a Super 

Aggressive instruction, which would be 

willing to act as a liquidity remover to 

facilitate the execution. It also would 

enable an order without the Super 

Aggressive instruction to remain on the 

EDGA Book as a liquidity provider, 

consistent with the expected operation 

of their resting order. The Exchange 

notes that similar behavior occurs for 

orders utilizing the NDS 23 instruction, 

which also seeks to engage in a liquidity 

swap against incoming orders with a 

Post Only instruction. Finally, by 

limiting the proposed change to nondisplayed orders, the proposal would 

remain consistent with NDS and also 

would retain existing functionality with 

respect to the handling of displayed 

orders. 

For the reasons set forth above, the 

Exchange believes the proposal removes 

impediments to and perfects the 

mechanism of a free and open market 

and a national market system, and, in 

general, protects investors and the 

public interest. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange notes that there will be 

no burden on competition based on the 

Exchange’s current fee schedule, 

because as described above, Post Only 

Orders remove against resting contraside interest on entry, and thus, the 

revised functionality is inapplicable.24

Further, in the event the Exchange 

modifies its fee schedule, the Exchange 

does not believe that the proposed rule 

change will result in any burden on 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act, as amended. On the 

contrary, the proposed changes to the 

Super Aggressive order instruction are 

intended to improve the usefulness of 

the instruction and to align its operation 

with the intention of the User, resulting 

in enhanced competition through 

increased usage and execution quality 

on the Exchange. Thus, to the extent the 

change is intended to improve 

functionality on the Exchange to 

encourage Users to direct their orders to 

the Exchange, the change is competitive, 

but the Exchange does not believe the 

proposed change will result in any 

burden on intermarket competition as it 

is a minor change to available 

functionality. The proposed changes to 

the Super Aggressive order instruction 

also promote intramarket competition 

because they will facilitate the 

execution of orders that would 

otherwise remain unexecuted consistent 

with the intent of the User entering the 

order, thereby increasing the efficient 

functioning of the Exchange. Further, 

the Super Aggressive order instruction 

will remain available to all Users in the 

same way it is today. Thus, Users can 

continue to choose between various 

optional order instructions, including 

Super Aggressive, NDS, and others, 

depending on the order handling they 

prefer the Exchange to utilize. 

Therefore, the Exchange does not 

believe the proposed rule change will 

result in any burden on intramarket 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No comments were solicited or 

received on the proposed rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing 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)(iii) of the Act 25 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.26

A proposed rule change filed under 

Rule 19b–4(f)(6) normally does not 

become operative for 30 days after the 

date of the filing. However, Rule 19b– 

4(f)(6)(iii) 27 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. In its 

filing, EDGA requested that the 

Commission waive the 30-day operative 

delay so that the Exchange can 

implement the proposed rule change 

promptly after filing. The proposed 

changes to the Super Aggressive 

instruction would not impact trading 

under the current pricing schedule, but 

the Exchange noted that it intends to 

update its systems to implement the 

proposed changes on a similar schedule 

to its affiliates.28 EDGA indicated its 

desire to maintain rules and 

functionality similar to its affiliated 

exchanges and noted that the proposed 

rule changes would be relevant if the 

Exchange decides to alter its pricing. 

Should EDGA determine to change its 

fee schedule such that the Post Only 

functionality is more relevant to the 

operation of the Exchange, EDGA stated 

that the proposal to allow an order with 

a Super Aggressive instruction to 

execute against an incoming Post Only 

order only if the Post Only order is 

displayable would be consistent with 

the use of the Super Aggressive 

instruction to access liquidity displayed 

on other Trading Centers. Further, 

according to the Exchange, users 

seeking to execute against incoming 

non-displayable Post Only orders would 

continue to be able to attach the NDS 

order instruction, as well as other order 

instructions that may permit such 

executions. In addition, the Exchange 

stated that the proposed priority change 

where non-displayed orders without a 

Super Aggressive instruction would 

cede priority to non-displayed orders 

with a Super Aggressive instruction is 

similar to, and consistent with, the 

Exchange’s priority ceding functionality 

for orders with an NDS instruction and 

would facilitate executions that would 

otherwise not occur due to an incoming 

Post Only order’s requirement not to 

remove liquidity. 

The Commission believes that waiver 

of the 30-day operative delay is 

consistent with the protection of 

investors and the public interest, as 

such waiver will permit the Exchange to 

promptly update its rules and systems 

to maintain consistency with its affiliate 

exchanges. The Commission also notes 

that the proposed rule change relates to 

optional functionality that is consistent 

with existing functionality and, if 

selected by Exchange users, may enable 


amozie on DSK3GDR082PROD with NOTICES1
Federal Register / Vol. 83, No. 150 / Friday, August 3, 2018 / Notices 38195 

29For 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). 

30 17 CFR 200.30–3(a)(12) and (59). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange Act Release No. 56654 

(October 12, 2007), 72 FR 59129 (October 18, 2007) 

(SR–NYSE–2007–67). 

them to better manage their orders and 

may increase order interaction on the 

Exchange in the event the Exchange 

changes its fee schedule such that the 

Post Only functionality is more relevant 

to the operation of the Exchange. 

Accordingly, the Commission hereby 

waives the 30-day operative delay and 

designates the proposed rule change 

operative upon filing.29

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: (i) Necessary or appropriate in 

the public interest; (ii) for the protection 

of investors; or (iii) 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– 

CboeEDGA–2018–013 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–2018–013. 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–2018–013, and 

should be submitted on or before 

August 24, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.30

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2018–16597 Filed 8–2–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83740; File No. SR–NYSE– 

2018–33] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing of Proposed Rule Change To 

Amend Rule 2 To Remove 

Requirement That a Registered BrokerDealer Be a Member of the Financial 

Industry Regulatory Authority, Inc. or 

Another National Securities Exchange 

July 30, 2018. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that, on July 25, 

2018, New York Stock Exchange LLC 

(‘‘NYSE’’ or the ‘‘Exchange’’) 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 selfregulatory organization. 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 

Rule 2 to remove a requirement that a 

registered broker-dealer be a member of 

the Financial Industry Regulatory 

Authority, Inc. or another national 

securities exchange. 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 the 

definition of ‘‘member organization’’ 

under Rule 2 (‘‘Member,’’ 

‘‘Membership,’’ ‘‘Membership [sic] 

Firm,’’ etc.) to remove a requirement 

that a registered broker-dealer seeking to 

be a member organization be a member 

of FINRA or another national securities 

exchange. In 2007, the Exchange 

amended Rule 2 to require FINRA 

membership as part of the consolidation 

of member firm regulatory functions of 

then NASD and NYSE Regulation, Inc. 

(‘‘NYSE Regulation’’) that resulted in a 

combined self-regulatory organization 

(‘‘SRO’’) that is now known as FINRA.4

As part of the consolidation, NYSE 

Regulation and NASD sought to 

harmonize certain of their member firm 

rules. At that time, it was anticipated 

that the rule harmonization would not 

be completed by the time NASD and 

NYSE Regulation completed their 

combination. Therefore, the 

combination contemplated a transition 

period during which FINRA would 

apply to NYSE member organizations 


amozie on DSK3GDR082PROD with NOTICES1