Federal Register / Vol. 83, No. 159 / Thursday, August 16, 2018 / Notices 40813 

24 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

from engaging in quoting activity that 

does not reach across the market, but 

that could result in a transaction that is 

a new high or low on the Exchange, but 

is not a new consolidated high or low 

price. The Exchange believes that the 

proposal is pro-competitive because 

revising which transactions would be 

prohibited would promote DMM 

quoting more aggressively in their 

assigned securities, thereby enhancing 

the ability of DMMs to meet their 

affirmative obligation under Rule 104. 

Similarly, shortening the time period 

restricting DMM trading, in addition to 

being more appropriate for the current 

high-speed trading environment, would 

provide DMMs with more time to 

engage in liquidating transactions before 

the prohibition begins, thereby 

enhancing DMM market making in the 

final minutes of trading. The Exchange 

further believes that its proposed rules 

governing DMMs would not impose any 

burden on competition that is not 

necessary or appropriate because the 

proposed rules are designed to foster a 

fair and orderly marketplace without 

diminishing the balance of benefits and 

obligations under Rule 104 or altering or 

diminishing the numerous obligations 

currently imposed by Rule 104 on 

DMMs. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or up to 90 days (i) as the 

Commission may designate if it finds 

such longer period to be appropriate 

and publishes its reasons for so finding 

or (ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve or disapprove 

the proposed rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be 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– 

NYSE–2018–34 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–NYSE–2018–34. 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–NYSE–2018–34 and should 

be submitted on or before September 6, 

2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.24

Brent J. Fields, 

Secretary. 

[FR Doc. 2018–17630 Filed 8–15–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83819; File No. SR–ICC– 

2018–009] 

Self-Regulatory Organizations; ICE 

Clear Credit LLC; Notice of Filing of 

Proposed Rule Change Relating to 

ICC’s Treasury Operations Policies 

and Procedures 

August 10, 2018. 

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

Securities Exchange Act of 1934,1 and 

Rule 19b–4,2 notice is hereby given that 

on July 31, 2018, ICE Clear Credit LLC 

(‘‘ICC’’) 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 ICC. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change, Security-Based Swap 

Submission, or Advance Notice 

The principal purpose of the 

proposed rule change is to revise the 

ICC Treasury Operations Policies and 

Procedures (‘‘Treasury Policy’’). These 

revisions do not require any changes to 

the ICC Clearing Rules (‘‘Rules’’). 

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change, Security-Based 

Swap Submission, or Advance Notice 

In its filing with the Commission, ICC 

included statements concerning the 

purpose of and basis for the proposed 

rule change, security-based swap 

submission, or advance notice and 

discussed any comments it received on 

the proposed rule change, securitybased swap submission, or advance 

notice. The text of these statements may 

be examined at the places specified in 

Item IV below. ICC has prepared 

summaries, set forth in sections (A), (B), 

and (C) below, of the most significant 

aspects of these statements. 

(A) Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change, Security-Based 

Swap Submission, or Advance Notice 

(a) Purpose 

ICC proposes revisions to its Treasury 

Policy. ICC believes such revisions will 

facilitate the prompt and accurate 

clearance and settlement of securities 

transactions and derivative agreements, 

contracts, and transactions for which it 


sradovich on DSK3GMQ082PROD with NOTICES
40814 Federal Register / Vol. 83, No. 159 / Thursday, August 16, 2018 / Notices 

3 83 FR 35241 (July 25, 2018). 

4 17 CFR 1.25. 

5 Id. 

6 83 FR 35241 (July 25, 2018). 

7 17 CFR 1.25. 

8 Id. 

9 83 FR 35241 (July 25, 2018). 

10See ICE Clearing House Application for 

Exemptive Order (June 22, 2017) for a discussion 

of the suitability of French and German sovereign 

debt, available at https://www.cftc.gov/sites/ 

default/files/idc/groups/public/@requestsand

actions/documents/ifdocs/icedcos4cappl6-22- 

17.pdf. 

11 17 CFR 1.25. 

12 Id. 

13 15 U.S.C. 78q–1(b)(3)(F). 

is responsible. The proposed revisions 

are described in detail as follows. 

ICC proposes to update the ICC 

Treasury Policy in light of the 

exemptive order 3 (the ‘‘Order’’) that was 

issued by the Commodity Futures 

Trading Commission (‘‘CFTC’’) 

permitting ICC to invest, subject to 

certain conditions, Euro-denominated 

customer funds in French and German 

sovereign debt. ICC was prohibited from 

investing customer funds in foreign 

sovereign debt by CFTC Regulation 

1.25,4 which does not permit such 

investments. As such, ICC is proposing 

changes to its Treasury Policy to permit 

its Treasury Department to directly 

invest both US Dollar- (‘‘USD’’) and 

Euro-denominated Guaranty Fund 

(‘‘GF’’) and margin cash posted by 

Clearing Participants (‘‘CPs’’) (‘‘house 

origin cash’’); to invest Eurodenominated cash posted by CPs for 

their margin requirements related to 

client positions (‘‘customer origin 

cash’’) in French and German sovereign 

debt; to revise its Euro investment 

guidelines to limit investment to French 

and German sovereign debt; and to 

make additional clarification and cleanup changes throughout the document to 

enhance readability. 

ICC proposes to revise the ‘Funds 

Management’ section. ICC proposes 

clarifying changes that move reference 

to its default position of holding USDdenominated house origin cash in its 

Federal Reserve Account from the 

‘Investment Strategy’ subsection to the 

amended ‘ICC Investment of Guaranty 

Fund and Margin Cash’ subsection, 

which is separated into USD and Euro. 

ICC proposes clarifying language within 

the proposed ‘USD’ subsection to note 

that, if ICC is unable to deposit house 

origin cash in its Federal Reserve 

Account, ICC’s Treasury Department 

may hold or invest such USD cash as 

specified within the Treasury Policy. 

ICC also proposes a revision to correct 

a typographical error by adding the verb 

‘‘has’’ to the phrase ‘‘ICE Clear Credit 

arrangements.’’ 

In the proposed ‘Euro’ subsection, ICC 

proposes to permit its Treasury 

Department to directly invest Eurodenominated house origin cash. Under 

the current ICC Treasury Policy, the ICC 

Treasury Department is only permitted 

to directly invest USD-denominated 

house origin cash. Specifically, ICC 

proposes to state that Euro-denominated 

house origin cash will be (i) held in 

bank deposits, (ii) allocated to outside 

investment managers, or (iii) directly 

held/invested by the ICC Treasury 

Department pursuant to the Euro 

investment guidelines in the appendix. 

Under the proposed changes, ICC’s 

Treasury Department is permitted to 

directly execute the Euro investment 

guidelines. 

In the ‘Outside Investment 

Management of Guaranty Fund and 

Margin Cash’ subsection, ICC proposes 

removing reference to a specific outside 

investment manager to reflect ICC’s 

engagement of multiple outside 

investment managers. ICC also proposes 

to correct certain typographical errors in 

this section to improve readability, 

including removing the indefinite 

article ‘‘an’’ in the phrase ‘‘an 

alternative or additional outside 

investment managers’’, adding the 

definite article ‘‘the’’ to the phrase 

‘‘Investment Manager’s investment’’, 

and changing ‘‘Directory of Treasury’’ to 

‘‘Director of Treasury’’ in a footnote. 

ICC proposes removing language from 

the ‘Treasury Management for Client 

Business’ section that references the 

introduction of client trades to clarify 

that ICC has already commenced client 

clearing. 

ICC proposes the new ‘Investment of 

Client Margin Cash’ subsection within 

the ‘Treasury Management for Client 

Business’ section, which specifically 

relates to ICC’s investment of customer 

origin cash. Currently, the ICC Treasury 

Policy prohibits ICC from investing 

customer origin cash in foreign 

sovereign debt due to CFTC Regulation 

1.25,5 which does not permit such 

investments. In light of the CFTC’s 

Order,6 ICC proposes to state that it will 

invest customer origin cash in 

compliance with CFTC Regulation 

1.25,7 including any applicable 

exemptive orders and including, 

without limitation, the conditions in 

CFTC Regulation 1.25 8 related to the 

investment of customer origin cash in 

non-U.S. sovereign debt. 

ICC proposes revisions to the Euro 

investment guidelines appendix. ICC 

proposes to include a footnote, for 

clarity, stating that its Treasury 

Department can directly execute the 

Euro investment guidelines. ICC also 

proposes to extend the Euro investment 

guidelines to ICC’s segregated CFTC 

Cleared Swaps Customer initial margin 

portfolio. ICC’s Euro investment 

guidelines provide for the investment of 

Euro cash in overnight reverse 

repurchase (‘‘repo’’) transactions with 

high quality sovereign debt as collateral. 

If 100% of the allocated cash cannot be 

placed in overnight reverse repo, 

backup investments will be in term 

reverse repo and then direct investment 

in high quality sovereign debt. Under 

the current Euro investment guidelines, 

investment in reverse repo and foreign 

sovereign debt is utilized only with 

respect to house origin cash and not 

customer origin cash pursuant to CFTC 

regulation. Given the CFTC’s Order 9

that allows ICC to invest Eurodenominated customer funds in French 

and German sovereign debt, ICC 

proposes to make its investment policies 

for Euro-denominated cash applicable to 

both customer origin and house origin 

cash. ICC further proposes to make the 

Euro investment guidelines uniform for 

both customer origin and house origin 

cash. Specifically, ICC proposes to 

revise the Euro investment guidelines to 

limit permissible investment, both 

directly and through reverse repo, to 

French and German sovereign debt 

given the comparability of French and 

German sovereign debt to U.S. 

government securities in terms of 

creditworthiness, liquidity, and 

volatility.10 With respect to customer 

origin cash, the proposed changes 

require that investments comply with 

any applicable conditions or restrictions 

set forth in CFTC Regulation 1.25 11

including any applicable exemptive 

orders and allow the use of term reverse 

repo subject to a certain restriction. 

Additionally, should conditions change 

so that the French or German sovereign 

debt no longer meets the conditions or 

restrictions of CFTC Regulation 1.25,12

the outside investment manager shall 

discontinue making any additional 

investments in such sovereign debt 

issuers. 

(b) Statutory Basis 

Section 17A(b)(3)(F) of the Act 13

requires, among other things, that the 

rules of a clearing agency be designed to 

promote the prompt and accurate 

clearance and settlement of securities 

transactions, and to the extent 

applicable, derivative agreements, 

contracts and transactions; to assure the 

safeguarding of securities and funds 

which are in the custody or control of 

the clearing agency or for which it is 

responsible; and to comply with the 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 159 / Thursday, August 16, 2018 / Notices 40815 

14 Id. 

15 83 FR 35241 (July 25, 2018). 

16 15 U.S.C. 78q–1(b)(3)(F). 

17 17 CFR 240.17Ad–22. 

18 17 CFR 240.17Ad–22(b)(3). 

19 Id. 

20 17 CFR 240.17Ad–22(d)(3). 21 Id. 

provisions of the Act and the rules and 

regulations thereunder. ICC believes 

that the proposed rule changes are 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to ICC, in 

particular, to Section 17(A)(b)(3)(F),14

because ICC believes that the proposed 

rule changes will promote the prompt 

and accurate clearance and settlement of 

securities transactions, derivatives 

agreements, contracts, and transactions, 

and contribute to the safeguarding of 

securities and funds associated with 

security-based swap transactions in 

ICC’s custody or control, or for which 

ICC is responsible. The proposed 

changes permitting ICC to invest Eurodenominated customer funds in French 

and German sovereign debt are designed 

to further ensure the reliable investment 

of assets in ICC’s control with minimal 

risk. Euro-denominated customer fund 

balances must be held in unsecured 

bank demand deposits accounts, 

exposing ICC and its CPs and their 

customers to the credit risk of such 

banks. ICC believes that the proposed 

changes, given the CFTC’s Order,15 to 

invest Euro-denominated customer 

funds in French and German sovereign 

debt would provide for an important 

alternative for the protection of 

customer funds. Moreover, allowing the 

Treasury Department to directly invest 

both USD and Euro-denominated house 

origin cash will continue to ensure the 

reliable investment of assets in ICC’s 

control with minimal risk by allowing 

the Treasury Department to directly 

execute the Euro investment guidelines, 

thereby facilitating ICC’s ability to 

promptly and accurately clear and settle 

its cleared CDS contracts and enhancing 

ICC’s ability to assure the safeguarding 

of securities and funds which are in the 

custody or control of ICC or for which 

it is responsible. The clarification and 

clean-up changes that enhance 

readability will further ensure that the 

documentation of ICC’s Treasury Policy 

remains up-to-date, clear, and 

transparent. As such, the proposed rule 

changes are designed to promote the 

prompt and accurate clearance and 

settlement of securities transactions, 

derivatives agreements, contracts, and 

transactions and to contribute to the 

safeguarding of securities and funds 

associated with security-based swap 

transactions in ICC’s custody or control, 

or for which ICC is responsible within 

the meaning of Section 17A(b)(3)(F) of 

the Act.16

In addition, the proposed revisions to 

the ICC Treasury Policy are consistent 

with the relevant requirements of Rule 

17Ad–22.17 Rule 17Ad–22(b)(3) 18

requires ICC to establish, implement, 

maintain and enforce written policies 

and procedures reasonably designed to 

maintain sufficient financial resources 

to withstand, at a minimum, a default 

by the two CP families to which it has 

the largest exposures in extreme but 

plausible market conditions. The 

proposed changes to the Euro 

investment guidelines that limit 

investment to French and German 

sovereign debt and apply to both house 

origin and customer origin cash serve to 

preserve principle and maintain 

liquidity of funds as such debt has 

credit, liquidity, and volatility 

characteristics that are comparable to 

U.S. government securities, thereby 

ensuring that ICC continues to maintain 

sufficient financial resources to 

withstand, at a minimum, a default by 

the two CP families to which it has the 

largest exposures in extreme but 

plausible market conditions, consistent 

with the requirements of Rule 17Ad– 

22(b)(3).19

Rule 17Ad–22(d)(3) 20 requires ICC to 

establish, implement, maintain and 

enforce written policies and procedures 

reasonably designed to hold assets in a 

manner that minimizes risk of loss or of 

delay in its access to them and to invest 

assets in instruments with minimal 

credit, market, and liquidity risks. ICC 

believes that the proposed changes 

allowing ICC to invest Eurodenominated customer funds in French 

and German sovereign debt and 

allowing the Treasury Department to 

directly invest both USD and Eurodenominated house origin cash and 

directly execute the Euro investment 

guidelines will enhance ICC’s ability to 

hold assets in a manner that minimizes 

risk of loss or of delay in its access to 

them by serving as an important 

alternative for the protection of funds. 

Additionally, the proposed revisions to 

the Euro investment guidelines that 

limit investment to French and German 

sovereign debt for house origin cash 

allow ICC to continue to ensure to hold 

assets in a manner that minimizes risk 

of loss or of delay in its access to them 

and to invest assets in instruments with 

minimal credit, market, and liquidity 

risks given the comparability of French 

and German sovereign debt to U.S. 

government securities in terms of 

creditworthiness, liquidity, and 

volatility. Such changes are therefore 

reasonably designed to meet the 

requirements of Rule 17Ad–22(d)(3).21

(B) Clearing Agency’s Statement on 

Burden on Competition 

ICC does not believe the proposed 

rule changes would have any impact, or 

impose any burden, on competition. 

The proposed changes to ICC’s Treasury 

Policy will apply uniformly across all 

market participants. Therefore, ICC does 

not believe the proposed rule changes 

impose any burden on competition that 

is inappropriate in furtherance of the 

purposes of the Act. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change, Security-Based Swap 

Submission, or Advance Notice 

Received From Members, Participants or 

Others 

Written comments relating to the 

proposed rule change have not been 

solicited or received. ICC will notify the 

Commission of any written comments 

received by ICC. 

III. Date of Effectiveness of the 

Proposed Rule Change, Security-Based 

Swap Submission, or Advance Notice 

and Timing for Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the self-regulatory organization 

consents, the Commission will: 

(A) By order approve or disapprove 

such proposed rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be 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, security-based swap 

submission, or advance notice 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– 

ICC–2018–0 on the subject line. 


sradovich on DSK3GMQ082PROD with NOTICES
40816 Federal Register / Vol. 83, No. 159 / Thursday, August 16, 2018 / Notices 

22 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4A Retail Order is an agency order that originates 

from a natural person and is submitted to the 

Exchange by an ETP Holder, provided that no 

change is made to the terms of the order to price 

or side of market and the order does not originate 

from a trading algorithm or any other computerized 

methodology. See Securities Exchange Act Release 

No. 67540 (July 30, 2012), 77 FR 46539 (August 3, 

2012) (SR–NYSEArca–2012–77). 

5See Securities Exchange Act Release No. 83268 

(May 17, 2018), 83 FR 23983 (May 23, 2017) (SR– 

NYSEArca–2018–34). 

6The Exchange proposes a non-substantive 

amendment to the Fee Schedule to rename the 

current Retail Order Step-Up Tier as ‘‘Retail Order 

Step-Up Tier 1.’’ 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549. 

All submissions should refer to File 

Number SR–ICC–2018–009. 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, security-based swap 

submission, or advance notice that are 

filed with the Commission, and all 

written communications relating to the 

proposed rule change, security-based 

swap submission, or advance notice 

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 ICE Clear Credit and on ICE 

Clear Credit’s website at https://

www.theice.com/clear-credit/regulation. 

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–ICC–2018–009 and 

should be submitted on or before 

September 6, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.22

Brent J. Fields, 

Secretary. 

[FR Doc. 2018–17627 Filed 8–15–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83828; File No. SR– 

NYSEARCA–2018–58] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend the NYSE Arca 

Equities Fees and Charges To 

Introduce a New Pricing Tier 

August 10, 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 August 

1, 2018, NYSE Arca, Inc. (the 

‘‘Exchange’’ or ‘‘NYSE Arca’’) 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 the 

NYSE Arca Equities Fees and Charges 

(‘‘Fee Schedule’’) to introduce a new 

pricing tier, Retail Order Step-Up Tier 2. 

The Exchange proposes to implement 

the fee change effective August 1, 2018. 

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 

Fee Schedule, as described below, to 

introduce a new pricing tier, Retail 

Order Step-Up Tier 2, for securities with 

a per share price of $1.00 or above. 

The Exchange currently has a Retail 

Order Step-Up Tier pursuant to which 

ETP Holders, including Market Makers, 

that execute an ADV of Retail Orders 4

with a time-in-force designation of Day 

that add or remove liquidity during the 

month that is an increase of 0.12% or 

more of the U.S. CADV above their 

April 2018 ADV taken as a percentage 

of U.S. CADV receive a credit of $0.0033 

per share when such orders provide 

liquidity to the book during the month 

in Tape A, Tape B and Tape C 

Securities. Retail Orders with a time-inforce designation of Day that remove 

liquidity from the Book are not charged 

a fee.5

To encourage even greater 

participation from ETP Holders and 

promote additional liquidity in Retail 

Orders, the Exchange proposes a new 

pricing tier—Retail Order Step-Up Tier 

2.6

As proposed, a new Retail Order StepUp Tier 2 credit of $0.0035 per share for 

Retail Orders that provide displayed 

liquidity during the month in Tape A, 

Tape B and Tape C Securities would 

apply to ETP Holders, including Market 

Makers, that provide liquidity an 

average daily share volume per month 

of 1.10% or more of the U.S. CADV, and 

execute an ADV of Retail Orders with a 

time-in-force designation of Day that 

add or remove liquidity during the 

month that is an increase of 0.35% or 

more of the U.S. CADV above their 

April 2018 ADV taken as a percentage 

of U.S. CADV. Retail Orders with a 

time-in-force designation of Day that 

remove liquidity from the Book will not 

be charged a fee. 

Additionally, if an ETP Holder 

qualifies for the new Retail Order StepVerDate Sep<11>2014 17:15 Aug 15, 2018 Jkt 244001 PO 00000 Frm 00073 Fmt 4703 Sfmt 4703 E:\FR\FM\16AUN1.SGM 16AUN1

sradovich on DSK3GMQ082PROD with NOTICES