Federal Register / Vol. 83, No. 150 / Friday, August 3, 2018 / Notices 38187 

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 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 BYX 

Post Only Orders and/or Partial Post Only at Limit 

Orders 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. 

6The 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(aa). 

7See Exchange Rule 1.5(e). 

8A BYX Post Only Order will remove contra-side 

liquidity from the BYX Book if the order is an order 

to buy or sell a security priced below $1.00 or if 

the value of such execution when removing 

liquidity equals or exceeds the value of such 

execution if the order instead posted to the BYX 

Book and subsequently provided liquidity, 

including the applicable fees charged or rebates 

provided. See Exchange Rule 11.9(c)(6). A Partial 

Post Only at Limit Order will remove liquidity from 

the BYX Book up to the full size of the order if, at 

the time of receipt, it can be executed at prices 

better than its limit price. See Exchange Rule 

11.9(c)(7). As noted above, due to the current BYX 

pricing schedule, which offers rebates to remove 

Continued 

of the functions of the agency, including 

whether the information will have 

practical utility; (b) the accuracy of the 

agency’s estimate of the burden imposed 

by the collection of information; (c) 

ways to enhance the quality, utility, and 

clarity of the information collected; and 

(d) ways to minimize the burden of the 

collection of information on 

respondents, including through the use 

of automated collection techniques or 

other forms of information technology. 

Consideration will be given to 

comments and suggestions submitted in 

writing within 60 days of this 

publication. Please direct your written 

comments to Pamela Dyson, Director/ 

Chief Information Officer, Securities 

and Exchange Commission, c/o Candace 

Kenner, 100 F St. NE, Washington DC 

20549; or send an email to: PRA_

Mailbox@sec.gov. 

Dated: July 30, 2018. 

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2018–16601 Filed 8–2–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83738; File No. SR– 

CboeBYX–2018–012] 

Self-Regulatory Organizations; Cboe 

BYX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change to Exchange 

Rule 11.13, Order Execution and 

Routing, 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 19b–4 thereunder,2

notice is hereby given that on July 16, 

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 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 proposal to 

amend paragraph (b)(4)(C) of Exchange 

Rule 11.13 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 ReRoute instruction (‘‘Super Aggressive 

instruction’’) under paragraph (b)(4)(C) 

of Exchange Rule 11.13, Order 

Execution and Routing to: (i) Specify 

that an incoming BYX Post Only Order 

or Partial Post Only at Limit Order that 

would lock a resting order with a Super 

Aggressive instruction must be 

designated as eligible for display on the 

Exchange (a ‘‘displayed order’’) 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 an 

incoming BYX Post Only Order or 

Partial Post Only at Limit Order would 

be posted or cancelled in accordance 

with Exchange Rule 11.9(c)(6) or 

11.9(c)(7). 

At the outset, the Exchange notes that 

based on the Exchange’s current pricing 

schedule, because BYX offers rebates to 

remove liquidity and charges fees to add 

liquidity, BYX Post Only Orders and 

Partial Post Only at Limit Orders 

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 11.13(b)(4)(C), including the 

examples of the revised operation of the 

Super Aggressive functionality are 

currently inapplicable because BYX 

Post Only Orders and Partial Post Only 

at Limit Orders 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 

11.13(b)(4)(C) related to the Super 

Aggressive instruction in this filing in 

order to retain consistent rules and 

functionality with its affiliated 

exchanges 5 to the 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 6 to 

route an order when an away Trading 

Center locks or crosses the limit price of 

the order resting on the BYX Book.7 If 

an order with a Super Aggressive 

instruction were to be locked by an 

incoming BYX Post Only Order or 

Partial Post Only at Limit Order 

(hereafter collectively referred to as a 

‘‘Post Only Order’’) that does not 

remove liquidity pursuant to Rule 

11.9(c)(6) or 11.9(c)(7), respectively,8


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liquidity, Post Only Orders 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. 

9But see supra note 8. 

10See id. 

11See Exchange Rule 11.9(c)(12). 

12See supra note 8. 

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 Post Only 

Order that would lock a resting order 

with a Super Aggressive instruction 

must be designated as a displayed order 

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 Post Only 

Order that would otherwise not execute 

by being willing to act as the liquidity 

remover in such a scenario.9 Under BYX 

Rules, the incoming Post Only Order 

could either be a displayed order or a 

non-displayed order for it to engage in 

a liquidity swap with an order with a 

Super Aggressive instruction resting on 

the BYX 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 Post Only 

Order only when such order would be 

displayed on the BYX Book. The order 

with a Super Aggressive instruction 

would act as a liquidity remover in such 

a scenario. Should an equally priced 

incoming Post Only Order not be 

designated as a displayed order, the 

resting order with a Super Aggressive 

instruction would remain on the BYX 

Book and await an execution where it 

may act as a liquidity provider. An 

incoming Post Only Order that would 

also be designated as a non-displayed 

order would be posted to the BYX 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 

Post Only Order is priced more 

aggressively than the order with a Super 

Aggressive instruction resting on the 

BYX Book, regardless of whether the 

incoming Post Only Order was 

designated as a displayed order or a 

non-displayed order.10

The Exchange notes that Users 

seeking to act as a liquidity remover 

once resting on the BYX 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.11 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 BYX Book, execute 

against an incoming Post Only Order 

rather than have it be locked by the 

incoming order. Under BYX Rules, 

because orders with either instruction 

(i.e., Super Aggressive and NDS) would 

execute against incoming Post Only 

Orders 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 a Post Only Order 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 

Post Only Order that would lock it (i.e., 

NDS) or only when the Post Only Order 

that would lock it also is a displayed 

order (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.12 Assume the National Best 

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

$10.10. An order to buy is displayed on 

the BYX Book at $10.00 with a Super 

Aggressive instruction. There are no 

other orders resting on the BYX Book. 

An order to sell at $10.00 with a Post 

Only that is designated as a displayed 

order 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 was 

designated as a displayed order. 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 was designated as a nondisplayed order. Instead, the incoming 

order to sell would be posted nondisplayed to the BYX Book at $10.00, its 

limit price, causing the BYX Book to be 

internally locked. 

Second, the Exchange proposes to 

enable a Post Only Order that is 

designated as a displayed order to 

execute against an equally priced nondisplayed 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 BYX Book does 

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 Post Only Order will be 

posted or cancelled in accordance with 

Exchange Rule 11.9(c)(6) or Rule 

11.9(c)(7). 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 Order 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 BYX 

Book as the liquidity provider until it 

may execute against an incoming order 

that would act as the liquidity remover. 


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13See Exchange Rule 11.9(c)(12). See also 

Securities Exchange Act Release No. 83536 (June 

28, 2018), (SR–CboeBYX–2018–009) (including an 

example where an order cedes execution priority to 

an order with an NDS instruction). 14See supra note 8. 15Such order would be posted to the BYX Book 

in accordance with the Exchange’s re-pricing 

instructions to comply with Rule 610(d) of 

Regulation NMS. See Exchange Rules 11.9(g)(1) and 

(g)(2). See also 242 CFR 242.610(d). 

16This behavior is consistent with the operation 

of the Exchange’s NDS instruction. See supra note 

13. 

17The 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 BYX Book and 

subsequently provided liquidity, including the 

applicable fees charged or rebates provided. See 

supra note 8. 

18 15 U.S.C. 78f(b). 

19 15 U.S.C. 78f(b)(5). 

20See Exchange Rule 11.9(c)(12). 

21See supra note 8. 

22See supra note 13. 

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 non-displayed 

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,13 which also would seek to 

engage in a liquidity swap against 

incoming Post Only Orders. The 

Exchange, however, has proposed to 

retain the existing limitation with 

respect to orders displayed on the BYX 

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.14 Assume 

the NBBO is $10.00 by $10.04. There is 

a non-displayed Limit Order to buy 

resting on the BYX 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’’). A Post 

Only Order to sell priced at $10.03 is 

entered. Under current behavior, the 

incoming sell Post Only Order would 

not execute against Order A and would 

post to the BYX Book 15 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 BYX Book and 

subsequently provided liquidity, 

including the applicable fees charged or 

rebates provided. Further, the incoming 

sell Post Only Order could not execute 

against Order B because Order A is on 

the BYX Book and maintains time 

priority over Order B. Under the 

proposed change, the incoming sell 

order, if it was designated as a displayed 

order, would execute against Order B 

and Order B would become the remover 

of liquidity while the incoming sell Post 

Only Order 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 16 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 BYX 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 $10.03.17 Also, if Order 

A was displayed on the BYX 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 18 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 19

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 Post Only Orders that 

also are designated as displayed orders 

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 BYX 

Book. Users seeking to act as a liquidity 

remover once resting on the BYX Book 

and execute against an incoming Post 

Only Order that is also designated as a 

non-displayed order may attach the 

NDS instruction to their order.20

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 

executions that would otherwise not 

occur due to the Post Only Order 

requirement to not remove liquidity 

under such amended fee schedule.21

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 

BYX 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 22 instruction, 

which also seeks to engage in a liquidity 

swap against incoming Post Only 

Orders. Finally, by limiting the 

proposed change to non-displayed 

orders, the proposal would remain 

consistent with NDS and also would 

retain existing functionality with 

respect to the handling of displayed 

orders. 


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23See supra note 8. 

24 15 U.S.C. 78s(b)(3)(A)(iii). 

25 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. 

26 17 CFR 240.19b–4(f)(6)(iii). 

27See note 4 supra. 

28For 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). 

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.23

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 

The Exchange has neither solicited 

nor received written comments 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 24 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.25

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) 26 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, BYX 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.27 BYX 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 BYX determine to change its 

fee schedule such that the Post Only 

functionality is more relevant to the 

operation of the Exchange, BYX 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 

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.28

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. 


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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 


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