Federal Register / Vol. 83, No. 157 / Tuesday, August 14, 2018 / Notices 40371 

36 15 U.S.C. 78s(b)(2)(B). 

37 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6)(iii). 

5 ‘‘Early Trading Session’’ means the time 

between 7:00 a.m. and 8:00 a.m. ET. See Rule 

1.5(ee). 

6 ‘‘Pre-Opening Session’’ means the time between 

8:00 a.m. and 9:30 a.m. ET. See Rule 1.5(r). 

7 ‘‘Regular Trading Hours’’ means the time 

between 9:30 a.m. and 4:00 p.m. ET. See Rule 

1.5(w). 

8 ‘‘After Hours Trading Session’’ means the time 

between 4:00 p.m. and 5:00 p.m. ET. See Rule 

1.5(c). 

9 ‘‘User’’ means any Member or Sponsored 

Participant who is authorized to obtain access to the 

System pursuant to Rule 11.3. See Rule 1.5(cc). 

10See Rule 11.9(b). 

11See EDGX and EDGA Rule 1.5(r), which both 

define ‘‘Post-Closing Session’’ as the time between 

4:00 p.m. and 8:00 p.m. ET. 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

under Section 19(b)(2)(B) 36 of the Act to 

determine whether the proposed rule 

change 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– 

IEX–2018–16 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–IEX–2018–16. 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–IEX–2018–16 and should 

be submitted on or before September 4, 

2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.37

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–17396 Filed 8–13–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83798; File No. SR– 

CboeBYX–2018–013] 

Self-Regulatory Organizations; Cboe 

BYX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Amend 

Exchange Rule 1.5 Definitions and 

Exchange Rule 14.1 Unlisted Trading 

Privileges 

August 8, 2018. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that on July 25, 

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)(iii) 

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 Rule 1.5(c), which defines the 

After Hours Trading Session, to allow 

trading until 8:00 p.m. ET. 

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 offers four distinct 

trading sessions where the Exchange 

accepts orders for potential execution: 

(1) The ‘‘Early Trading Session,’’ which 

begins at 7:00 a.m. Eastern Time (‘‘ET’’) 

and continues until 8:00 a.m. ET,5 (2) 

the ‘‘Pre-Opening Session,’’ which 

begins at 8:00 a.m. ET and continues 

until 9:30 a.m. ET,6 (3) ‘‘Regular Trading 

Hours,’’ which begin at 9:30 a.m. ET and 

continue until 4:00 p.m. ET,7 and (4) the 

‘‘After Hours Trading Session,’’ which 

begins at 4:00 p.m. ET and continues 

until 5:00 p.m. ET.8 Users 9 may 

designate when their orders are eligible 

for execution by selecting their desired 

Time-in-Force instruction.10

The purpose of the proposed rule 

change is to amend Rule 1.5(c), which 

defines the After Hours Trading Session, 

to allow trading until 8:00 p.m. ET, 

consistent with the hours currently 

available on the Exchange’s affiliates 

Cboe EDGX Exchange, Inc. (‘‘EDGX’’) 

and Cboe EDGA Exchange, Inc. 

(‘‘EDGA’’).11 The After Hours Trading 


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40372 Federal Register / Vol. 83, No. 157 / Tuesday, August 14, 2018 / Notices 

12See Securities Exchange Act Release No. 73744 

(December 4, 2014), 79 FR 73369 (December 10, 

2014) (SR–BYX–2014–036). 

13See SR–CboeBZX–2018–052 (pending 

publication). 

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

15 15 U.S.C. 78f(b)(5). 16See supra note 11. 

17 15 U.S.C. 78s(b)(3)(A). 

18 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. 

Session will continue to begin after 

Regular Trading Hours end at 4:00 p.m. 

ET but instead of ending at 5:00 p.m. 

ET, as is the case today, will now be 

available until 8:00 p.m. ET similar to 

the EGDX and EDGA markets. Rule 

11.1(a), which was inadvertently 

modified in November 2014 to include 

an 8:00 p.m. ET cutoff for entering 

orders as part of a proposed rule change 

to accept orders beginning at 6:00 a.m. 

ET,12 will not be amended by this 

proposed rule change as the Exchange 

will now accept orders until 8:00 p.m. 

ET as described in that rule. 

The Exchange’s affiliate Cboe BZX 

Exchange, Inc. (‘‘BZX’’) is also filing to 

extend its trading hours to 8:00 p.m. 

ET.13 The proposed rule change will 

therefore promote a consistent 

experience for market participants 

across all four equities markets operated 

by Cboe Global Markets, Inc. Orders 

entered for participation in the After 

Hours Trading Session will continue to 

be handled in the same manner as 

today, with the exception that the 

Exchange will now accept those orders 

until 8:00 p.m. ET, thereby providing 

additional time for market participants 

to source liquidity outside of Regular 

Trading Hours. The Exchange therefore 

believes that amending Rule 1.5(c) to 

extend the Exchange’s trading hours 

will be benefit investors that will now 

be able to trade on the Exchange later 

in the day. 

In addition, Rule 14.1(c)(2), which 

provides that the Exchange must 

distribute an information circular for 

UTP Derivative Securities that, among 

other things, includes information about 

the risks of trading during the 

Exchange’s various trading sessions also 

specifically references the time that the 

Exchange is open for trading (i.e., until 

5:00 p.m. ET today). The Exchange 

therefore proposes to update references 

to the Exchange’s hours of operation in 

that rule in connection with the changes 

to extend the After Hours Trading 

Session to 8:00 p.m. ET. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 14 in general, and furthers the 

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

in particular, in that it is designed to 

promote just and equitable principles of 

trade, to 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. Specifically, the 

Exchange believes that the proposed 

rule change will benefit market 

participants by providing additional 

opportunities to transact on the 

Exchange later in the trading day. 

As explained in the purpose section 

of this proposed rule change, the 

Exchange currently accepts orders in its 

After Hours Trading Session until 5:00 

p.m. ET, while two of its affiliated 

exchanges (i.e., EDGX and EDGA) 

currently have a Post-Closing Session 

that ends at 8:00 p.m. ET.16 The 

Exchange believes that market 

participants would benefit from a longer 

After Hours Trading Session on the 

Exchange too, and is therefore 

proposing to extend its After Hours 

Trading Session to the same time as its 

affiliated markets. The Exchange 

believes that this change will provide 

additional opportunities for firms to 

source liquidity for their orders on the 

Exchange. Furthermore, the proposed 

rule change will ensure that Members 

have a similar experience when trading 

on all four Cboe equities markets. 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. 

In addition, the Exchange believes 

that the proposed change to Rule 14.1 is 

consistent with the Act because that 

change updates the rule to reference the 

proposed 8:00 p.m. ET time that the 

Exchange would accept orders in the 

After Hours Trading Session. No further 

substantive changes to that rule is 

proposed. The Exchange believes that it 

is appropriate to update all rules that 

specifically reference the Exchange’s 

hours of operation so that the rules 

properly reflect the changes to the After 

Hours Trading Session being 

implemented in this proposed rule 

change. 

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

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. 

The Exchange does not believe that the 

proposed rule change would have any 

significant impact on inter-market 

competition as the Exchange’s affiliated 

exchanges already allow after hours 

trading until 8:00 p.m. ET, and other 

markets are free to provide similar 

trading hours. Furthermore, the 

Exchange does not believe that the 

proposed rule change would have any 

significant impact on intra-market 

competition as all Members would be 

able to enter orders later in the day due 

to the extended After Hours Trading 

Session. 

(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) of the Act 17 and Rule 19b– 

4(f)(6) thereunder.18

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 

change 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 proposal is 

consistent with the Act. Comments may 

be submitted by any of the following 

methods: 


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Federal Register / Vol. 83, No. 157 / Tuesday, August 14, 2018 / Notices 40373 

19 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 The term ‘‘Market Makers’’ refers to Lead 

Market Makers (‘‘LMMs’’), Primary Lead Market 

Makers (‘‘PLMMs’’), and Registered Market Makers 

(‘‘RMMs’’) collectively. See Exchange Rule 100. A 

Directed Order Lead Market Maker (‘‘DLMM’’) and 

Directed Primary Lead Market Maker (‘‘DPLMM’’) is 

a party to a transaction being allocated to the LMM 

or PLMM and is the result of an order that has been 

directed to the LMM or PLMM. See Fee Schedule 

note 2. 

4 See Securities Exchange Act Release No. 83515 

(June 25, 2018), 83 FR 30786 (June 29, 2018) (SR– 

MIAX–2018–12). 

5 A ‘‘complex order’’ is any order involving the 

concurrent purchase and/or sale of two or more 

different options in the same underlying security 

(the ‘‘legs’’ or ‘‘components’’ of the complex order), 

for the same account, in a ratio that is equal to or 

greater than one-to-three (.333) and less than or 

equal to three-to-one (3.00) and for the purposes of 

executing a particular investment strategy. A 

complex order can also be a ‘‘stock-option’’ order, 

which is an order to buy or sell a stated number 

of units of an underlying security coupled with the 

purchase or sale of options contract(s) on the 

opposite side of the market, subject to certain 

contingencies set forth in the proposed rules 

governing complex orders. For a complete 

definition of a ‘‘complex order,’’ see Exchange Rule 

518(a)(5). See also Securities Exchange Act Release 

No. 78620 (August 18, 2016), 81 FR 58770 (August 

25, 2016) (SR–MIAX–2016–26). 

6 ‘‘Priority Customer’’ means a person or entity 

that (i) is not a broker or dealer in securities, and 

(ii) does not place more than 390 orders in listed 

options per day on average during a calendar month 

for its own beneficial accounts(s). A ‘‘Priority 

Customer Order’’ means an order for the account of 

a Priority Customer. See Exchange Rule 100. 

7 The term ‘‘Member’’ means an individual or 

organization approved to exercise the trading rights 

associated with a Trading Permit. Members are 

deemed ‘‘members’’ under the Exchange Act. See 

Exchange Rule 100. 

8 Under the PCRP, MIAX Options credits each 

Member the per contract amount resulting from 

each Priority Customer order transmitted by that 

Member which is executed electronically on the 

Exchange in all multiply-listed option classes 

Continued 

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–2018–013 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–CboeBYX–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 such 

filing will also 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–2018–013 and 

should be submitted on or before 

September 4, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–17394 Filed 8–13–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83797; File No. SR–MIAX– 

2018–22] 

Self-Regulatory Organizations; Miami 

International Securities Exchange LLC; 

Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change To Amend Its Fee Schedule 

August 8, 2018. 

Pursuant to the provisions of 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 August 1, 2018, Miami International 

Securities Exchange LLC (‘‘MIAX 

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

the Securities and Exchange 

Commission (‘‘Commission’’) a 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the Exchange. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of the Substance 

of the Proposed Rule Change 

The Exchange is filing a proposal to 

amend the MIAX Options Fee Schedule 

(the ‘‘Fee Schedule’’). 

The text of the proposed rule change 

is available on the Exchange’s website at 

http://www.miaxoptions.com/rulefilings, at MIAX’s principal office, and 

at the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend its 

Fee Schedule to (i) increase certain fees 

in certain Tiers for options transactions 

by MIAX Options Market Makers 3 in 

standard option classes in the Penny 

Pilot Program 4 (‘‘Penny classes’’) and in 

standard option classes which are not in 

the Penny Pilot Program (‘‘non-Penny 

classes’’) executed in the complex 

order 5 book; (ii) increase the per 

contract surcharge assessed for 

transactions by all market participants, 

except for Priority Customers,6 which 

remove liquidity against a resting 

Priority Customer complex order on the 

strategy book for options in Penny 

classes and for options in non-Penny 

classes (‘‘Complex Taker Surcharge’’) 

and to broaden the application of the 

Complex Taker Surcharge to other types 

of transactions (described below) and 

consequently to rename it as the 

‘‘Complex Surcharge;’’ (iii) increase the 

per contract credit assessable to Agency 

Orders (defined below) in a cPRIME 

Auction (‘‘cPRIME Agency Order 

Credit’’) by Members 7 in Tier 4 of the 

Priority Customer Rebate Program 

(‘‘PCRP’’) 8 and establish a limit as to 


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