182 Federal Register / Vol. 83, No. 1 / Tuesday, January 2, 2018 / Notices 

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

6 17 CFR 200.30–3(a)(31). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 5 15 U.S.C. 78f(b)(4) and (5). 

ICE Clear Europe’s proposed rule 

change. 

Accordingly, the Commission, 

pursuant to Section 19(b)(2) 5 of the Act, 

designates February 15, 2018, as the 

date by which the Commission should 

either approve or disapprove, or 

institute proceedings to determine 

whether to disapprove, the proposed 

rule change (File No. SR–ICEEU–2017– 

011). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Brent J. Fields, 

Secretary. 

[FR Doc. 2017–28307 Filed 12–29–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82273; File No. SR–CBOE– 

2017–040] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing of 

Amendment No. 2 to the Proposed 

Rule Change To Amend the Schedule 

of Fees and Assessments To Adopt a 

Fee Schedule To Establish Fees for 

Industry Members Related to the 

National Market System Plan 

Governing the Consolidated Audit Trail 

December 11, 2017. 

Correction 

In notice document 2017–26995, 

appearing on pages 59683–59685, in the 

issue of Friday, December 15, 2017, 

please note the following correction: 

On page 59685, in the second column, 

in the tenth line from the top, ‘‘January 

5, 2017’’ should read ‘‘January 5, 2018’’. 

[FR Doc. C1–2017–26995 Filed 12–29–17; 8:45 am] 

BILLING CODE 1301–00–D 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82407; File No. SR–BOX– 

2017–39] 

Self-Regulatory Organizations; BOX 

Options Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change To Amend 

the Fee Schedule To Adjust the QOO 

Order Rebate 

December 27, 2017. 

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 December 

22, 2017, BOX Options Exchange LLC 

(the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the Exchange. The 

Exchange filed the proposed rule change 

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

Act,3 and Rule 19b–4(f)(2) thereunder,4

which renders the proposal 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 the Substance 

of the Proposed Rule Change 

The Exchange is filing with the 

Securities and Exchange Commission 

(‘‘Commission’’) a proposed rule change 

to amend the Fee Schedule to amend 

the Fee Schedule [sic]. While changes to 

the fee schedule pursuant to this 

proposal will be effective upon filing, 

the changes will become operative on 

January 2, 2018. The text of the 

proposed rule change is available from 

the principal office of the Exchange, at 

the Commission’s Public Reference 

Room and also on the Exchange’s 

internet website at http://

boxexchange.com. 

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 the 

Fee Schedule for trading on BOX to 

amend section II.C, QOO Order Rebate. 

Specifically, the Exchange proposes to 

adjust the QOO Order Rebate from $0.05 

per contract to $0.075 per contract for 

all QOO Orders presented to the 

Trading Floor. The Exchange notes that 

it is not making any other changes to the 

rebate and that the QOO rebate will 

continue to apply to both sides of the 

QOO Order. The rebate will not apply 

to Public Customer executions, 

executions subject to the Strategy QOO 

Order Fee Cap, and Broker Dealer 

executions where the Broker Dealer is 

facilitating a Public Customer. Further, 

the total monthly rebate for Broker 

Dealer executions will continue to be 

capped at $30,000 per month per Broker 

Dealer. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with the 

requirements of Section 6(b) of the Act, 

in general, and Section 6(b)(4) and 

6(b)(5)of the Act,5 in particular, in that 

it provides for the equitable allocation 

of reasonable dues, fees, and other 

charges among BOX Participants and 

other persons using its facilities and 

does not unfairly discriminate between 

customers, issuers, brokers or dealers. 

The Exchange believes that the 

proposed change to the QOO Order 

Rebate for Floor Brokers is reasonable, 

equitable and not unfairly 

discriminatory. 

The Exchange notes that it does not 

offer a front-end order entry on the 

Trading Floor, unlike some competing 

exchanges. The Exchange notes that 

Participants have two possible means of 

bringing orders to the Exchange’s 

Trading Floor for possible execution: (1) 

They can invest in the technology, 

systems and personnel to participate on 

the Trading Floor and deliver the order 

to the Exchange matching engines for 

validation and execution; or (2) they can 

utilize the services of another 

Participant acting as a Floor Broker. The 

Exchange believes that increasing the 

rebate will allow Floor Brokers to price 

their services at a level that would 

enable them to attract QOO order flow 

from participants who would otherwise 

utilize the front-end order entry 

mechanism offered by the Exchange’s 

competitors instead of incurring the cost 

in time and resources to install and 

develop their own internal systems to 

deliver QOO orders directly to the 

Exchange system. As such, the 

Exchange believes it is necessary from a 

competitive standpoint to continue to 

offer this rebate to the executing Floor 

Broker on a QOO Order. Further, the 

Exchange believes that the QOO Order 

Rebate is reasonable as it is similar to a 

rebate program offered to Floor Brokers 


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Federal Register / Vol. 83, No. 1 / Tuesday, January 2, 2018 / Notices 183 

6See NYSE Arca, Qualified Contingent Cross 

(‘‘QCC’’) Transactions Fees and Rebate. The Floor 

Broker Rebate for Executed Orders is a flat rebate 

and is applied to both sides of the QCC Order 

except when a Customer is on both sides of the QCC 

transaction. 

7See NASDQ [sic] PHLX LLC (‘‘Phlx’’) Pricing 

Schedule. Phlx assesses a per contract rebate for 

QCC transactions ranging from $0.00 to $0.11. 

8 15 U.S.C. 78s(b)(3)(A)(ii). 

9 17 CFR 240.19b–4(f)(2). 10 17 CFR 200.30–3(a)(12). 

on a competing exchange.6 Similar to 

the Floor Broker Rebate for Executed 

QCC Transactions on Arca, BOX’s QOO 

Order Rebate is applied to both sides of 

the paired order and is directed to the 

Floor Broker, and not to the Participant 

who is assessed the QOO Order fee. 

Finally, similar to the BOX QOO Rebate, 

the NYSE Arca QCC rebate is only 

applied when the Floor Broker executes 

the QCC Order manually on the NYSE 

Arca trading floor. No rebate is given 

when the QCC Order is executed 

electronically. 

The Exchange believes that this rebate 

structure is appropriate as it allows 

Floor Brokers to price their services at 

a level that would enable them to attract 

QOO order flow from participants who 

would otherwise utilize the front-end 

order entry mechanism offered by the 

Exchange’s competitors instead of 

incurring the cost in time and resources 

to install and develop their own internal 

systems to deliver QOO orders directly 

to the Exchange system. 

Lastly, the Exchange believes that the 

increased rebate is reasonable and 

appropriate. The BOX Trading Floor is 

a new functionality for the Exchange, 

and assessing a higher rebate will help 

generate additional trading on the BOX 

Trading Floor. The Exchange believes 

that the proposed rebate reflects a 

competitive environment and falls in 

line with rebate levels assessed on 

another options exchange in the 

industry.7

The Exchange believes that it is 

equitable and not unfairly 

discriminatory to only apply the rebate 

to Floor Brokers and not to Floor Market 

Makers. Floor Market Makers only 

represent their own interest on the 

Trading Floor and therefore do not need 

additional incentive. Further, the 

Exchange believes it is equitable and not 

unfairly discriminatory to not apply the 

rebate to Public Customer executions or 

Broker Dealer executions where the 

Broker Dealer is facilitating a Public 

Customer, as these executions are not 

assessed a fee for their QOO Orders. 

Further, the Exchange believes it is 

equitable and not unfairly 

discriminatory to continue to not apply 

the rebate to executions subject to the 

Strategy QOO Order Fee Cap because 

additional incentives for these orders 

are not necessary. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange notes that it operates in a 

highly competitive market in which 

market participants can readily favor 

competing venues if they deem fee 

levels at a particular venue to be 

excessive, or rebate opportunities 

available at other venues to be more 

favorable. In such an environment, the 

Exchange must continually adjust its 

fees to remain competitive with other 

exchanges. Because competitors are free 

to modify their own fees in response, 

the Exchange believes that the degree to 

which fee changes in this market may 

impose any burden on competition is 

limited. For the reasons discussed 

above, the Exchange believes that the 

proposed changes do not impose an 

undue burden on competition. 

Further, the Exchange does not 

believe that offering a rebate to Floor 

Brokers will impose an undue burden 

on intra-market competition because all 

Floor Brokers are eligible to transact 

QOO Orders and receive a rebate. 

Further, the Exchange believes that the 

rebate will promote competition by 

allowing Floor Brokers to competitively 

price their services and for the Exchange 

to remain competitive with other 

exchanges that offer front-end order 

entry on their trading floors. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Exchange Act 8 and 

Rule 19b–4(f)(2) thereunder,9 because it 

establishes or changes a due, or fee. 

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend the rule change if 

it appears to the Commission that the 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or would otherwise further 

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– 

BOX–2017–39 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–BOX–2017–39. 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 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–BOX–2017–39, and should 

be submitted on or before January 23, 

2018. 


daltland on DSKBBV9HB2PROD with NOTICES
184 Federal Register / Vol. 83, No. 1 / Tuesday, January 2, 2018 / Notices 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

5The term ‘‘Member’’ is defined as ‘‘any 

registered broker or dealer that has been admitted 

to membership in the Exchange.’’ See Exchange 

Rule 1.5(n). 

6 ‘‘Firm’’ applies to any transaction identified by 

a Member for clearing in the Firm range at the OCC, 

excluding any Joint Back Office transaction. See the 

Exchange’s fee schedule available at http://

markets.cboe.com/us/options/membership/fee_

schedule/bzx/. 

7 ‘‘Broker Dealer’’ applies to any order for the 

account of a broker dealer, including a foreign 

broker dealer, that clears in the Customer range at 

the Options Clearing Corporation (‘‘OCC’’). See id. 

8 ‘‘Joint Back Office’’ applies to any transaction 

identified by a Member for clearing in the Firm 

range at the OCC that is identified with an origin 

code as Joint Back Office. A Joint Back Office 

participant is a Member that maintains a Joint Back 

Office arrangement with a clearing broker-dealer. 

See id. 

9 ‘‘Penny Pilot Securities’’ are those issues quoted 

pursuant to Exchange Rule 21.5, Interpretation and 

Policy .01. 

10The Exchange initially filed the proposed rule 

changes on December 1, 2017 (SR–CboeBZX–2017– 

10). On December 12, 2017 the Exchange withdrew 

SR–CboeBZX–2017–10 and then subsequently 

submitted this filing (SR–CboeBZX–2017–14). 

11Fee code PF is appended to Firm, Broker Dealer 

and Joint Back Office orders in Penny Pilot 

Securities that add liquidity. Orders that yield fee 

code PF are provided a standard rebate of $0.25 per 

contract. See the Exchange’s fee schedule available 

at http://markets.cboe.com/us/options/ 

membership/fee_schedule/bzx/. 

12 ‘‘ADAV’’ means average daily added volume 

calculated as the number of contracts added per 

day. See id. 

13 ‘‘Away Market Maker’’ applies to any 

transaction identified by a Member for clearing in 

the Market Maker range at the OCC, where such 

Member is not registered with the Exchange as a 

Market Maker, but is registered as a market maker 

on another options exchange. See id. 

14 ‘‘OCV’’ means the total equity and ETF options 

volume that clears in the Customer range at the 

Options Clearing Corporation (‘‘OCC’’) for the 

month for which the fees apply, excluding volume 

on any day that the Exchange experiences an 

Exchange System Disruption and on any day with 

a scheduled early market close. See id. 

15 ‘‘ADV’’ means average daily volume calculated 

as the number of contracts added or removed, 

combined, per day. See id. 

16 15 U.S.C. 78f. 

17 15 U.S.C. 78f(b)(4). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Brent J. Fields, 

Secretary. 

[FR Doc. 2017–28309 Filed 12–29–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82401; File No. SR– 

CboeBZX–2017–014] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change Related to Fees 

for Use on the Cboe BZX Exchange, 

Inc. Equity Options Platform 

December 26, 2017. 

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 December 

12, 2017, Cboe BZX Exchange, Inc. 

(‘‘BZX’’ or the ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I, II and III below, which Items 

have been prepared by the Exchange. 

The Exchange has designated the 

proposed rule change as one 

establishing or changing a member due, 

fee, or other charge imposed by the 

Exchange under Section 19(b)(3)(A)(ii) 

of the Act 3 and Rule 19b–4(f)(2) 

thereunder,4 which renders the 

proposed rule change effective upon 

filing with the Commission. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange filed a proposal to 

amend its fees and rebates applicable to 

Members 5 and non-Members of the 

Exchange pursuant to BZX Rule 15.1(a) 

and (c). 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend its 

fee schedule for its equity options 

platform (‘‘BZX Options’’) to adopt a 

new Firm,6 Broker Dealer 7 and Joint 

Back Office 8 Penny Pilot 9 Add Volume 

Tier under footnote 2, effective 

immediately.10

The Exchange currently offers one 

Firm, Broker Dealer and Joint Back 

Office Penny Add Volume Tier under 

footnote 2, which provides an enhanced 

rebate of $0.46 per contract for 

qualifying orders that add liquidity in 

Penny Pilot Securities and yield fee 

code PF.11 The Exchange now proposes 

to add a new Tier 1 and to re-number 

current Tier 1 as Tier 2. 

Currently under Tier 1, to be renumbered as Tier 2, a Member’s orders 

that yield fee code PF receive an 

enhanced rebate of $0.46 per contract 

where the Member has an: (i) ADAV 12

in Away Market Maker 13, Firm, Broker 

Dealer and Joint Back Office orders 

greater than or equal to 1.05% of 

average OCV 14; and (ii) ADV 15 equal to 

or greater than 1.95% of average OCV. 

The Exchange proposes to adopt new 

Tier 1, which would be similar to renumbered Tier 2 but would have lower 

criteria (but with different qualifying 

volume, as described below) and a 

lower rebate. In order to provide an 

incentive to encourage additional 

participation by Members that do not 

participate on the Exchange as Market 

Makers or Away Market Makers, new 

Tier 1 would not take Away Market 

Maker volume into account for purposes 

of the Tier calculation. Specifically, 

pursuant to new Tier 1 a Member’s 

orders that yield fee code PF would 

receive an enhanced rebate of $0.38 per 

contract where the Member has an 

ADAV in Firm, Broker Dealer and Joint 

Back Office orders greater than or equal 

to 0.20% of average OCV. 

Implementation Date 

The Exchange proposes to implement 

the above changes to its fee schedule 

immediately. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule changes are consistent 

with the objectives of Section 6 of the 

Act,16 in general, and furthers the 

objectives of Section 6(b)(4),17 in 

particular, as it is designed to provide 

for the equitable allocation of reasonable 

dues, fees and other charges among its 

Members and other persons using its 

facilities. The Exchange believes that 

the proposed modification to the 

Exchange’s tiered pricing structure is 

reasonable, fair and equitable, and nondiscriminatory. The Exchange operates 

in a highly competitive market in which 


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