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

42 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)(2). 

5See SR–LCH SA–2017–010. 

Every order to trade Shares of the 

Fund is subject to the proxy price 

protection threshold of plus/minus 

$1.00, which determines the lower and 

upper threshold for the life of the order 

and whereby the order will be cancelled 

at any point if it exceeds $101.00 or falls 

below $99.00, the established 

thresholds. With certain exceptions, 

each order also must contain the 

applicable order attributes, including 

routing instructions and time-in-force 

information, as described in Nasdaq 

Rule 4703. 

The proposed rule change is designed 

to perfect the mechanism of a free and 

open market and, in general, to protect 

investors and the public interest in that 

it will facilitate the listing and trading 

of the Fund, which will seek to provide 

investors with access to actively 

managed investment strategies in a 

structure that offers the cost and tax 

efficiencies and shareholder protections 

of ETFs, while removing the 

requirement for daily portfolio holdings 

disclosure, and is designed to ensure a 

tight relationship between market 

trading prices and NAV. 

For the above reasons, Nasdaq 

believes the proposed rule change is 

consistent with the requirements of 

Section 6(b)(5) of the Act. 

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. In fact, the 

Exchange believes that the introduction 

of the Fund would promote competition 

by making available to investors actively 

managed investment strategies in a 

structure that offers the cost and tax 

efficiencies and shareholder protections 

of ETFs, while removing the 

requirement for daily portfolio holdings 

disclosure, and is designed to ensure a 

tight relationship between market 

trading prices and NAV. Moreover, the 

Exchange believes that the proposed 

method of Share trading would provide 

investors with transparency of trading 

costs, and the ability to control trading 

costs using limit orders, that is not 

available for conventionally traded 

ETFs. 

These developments could 

significantly enhance competition to the 

benefit of the markets and investors. 

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 

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 

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– 

NASDAQ–2017–131 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–NASDAQ–2017–131. 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 No. 

SR–NASDAQ–2017–131 and should be 

submitted on or before January 23, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.42

Brent J. Fields, 

Secretary. 

[FR Doc. 2017–28310 Filed 12–29–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82406; File No. SR–LCH 

SA–2017–011] 

Self-Regulatory Organizations; LCH 

SA; Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change Relating to the CDSClear Fee 

Grid for All Accounts Structures 

December 27, 2017. 

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 December 

20, 2017, Banque Centrale de 

Compensation, which conducts 

business under the name LCH SA (‘‘LCH 

SA’’), filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

the proposed rule change described in 

Items I, II, and III below, which Items 

have been prepared primarily by LCH 

SA. LCH SA filed the proposed rule 

changes pursuant to Section 

19(b)(3)(A) 3 of the Act and Rule 19b– 

4(f)(2) 4 thereunder, so that the proposal 

was effective upon filing with the 

Commission. 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 

LCH SA is filing a proposed fee grid 

for all accounts structures, including 

those introduced 5 to reflect the indirect 


daltland on DSKBBV9HB2PROD with NOTICES
Federal Register / Vol. 83, No. 1 / Tuesday, January 2, 2018 / Notices 193 

6Commission Delegated Regulation (EU) 2017/ 

2155 of 22 September 2017 amending Delegated 

Regulation (EU) No. 149/2013 supplementing the 

European Market Infrastructure Regulation (MiFIR) 

with regard to regulatory technical standards (RTS) 

on indirect clearing arrangements. 

7Regulation (EU) No 648/2012 of the European 

Parliament and of the Council of 4 July 2012 on 

OTC derivatives, central counterparties and trade 

repositories (EMIR). 

8Regulation (EU) No 600/2014 of the European 

Parliament and of the Council of 15 May 2014 on 

markets in financial instruments and amending 

Regulation (EU) No 648/2012. 

9 15 U.S.C. 78q–1(b)(3)(D). 

10 15 U.S.C. 78q–1. 

11 15 U.S.C. 78q–1(b)(3)(I). 

12 15 U.S.C. 78s(b)(3)(A). 

13 17 CFR 240.19b–4(f)(2). 

clearing requirements 6 under EMIR7

and MiFIR8 for authorized CCPs. The 

text of the proposed rule change has 

been annexed as Exhibit 5. 

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

In its filing with the Commission, 

LCH SA 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. LCH SA 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 

1. Purpose 

The purpose of the proposed rule 

change is to adopt the applicable 

CDSClear fee grid for all accounts 

structures, including the indirect client 

account structures proposed in 

accordance with the provisions of 

MiFIR Article 30. 

The proposed rule change introduces 

a fixed annual fee payable to CDSClear 

by its Clearing Members semi annually 

for the 6-month periods beginning 

January 1st and July 1st in accordance 

with the amount and currency specified 

in the fee grid attached in Exhibit 5. 

The Account structure fees will be 

calculated on the day immediately 

preceding each 6-month period, being 

December 31st and June 30th of each 

year, based on the number of live 

accounts at that date. It will apply for 

existing client accounts from 1st January 

2018. 

Any Clearing Member will make its 

own pricing arrangements with its 

clients. 

The Account structure fee does not 

apply to house accounts. 

2. Statutory Basis 

Section 17A(b)(3)(D) of the Act 

requires that the rules of a clearing 

agency provide for the equitable 

allocation of reasonable dues, fees, and 

other charges.9

As noted above, the proposed fee grid 

will apply equally to all existing and 

new client accounts, whether Indirect or 

not, and LCH SA believes that it is 

reasonable and appropriate. The fee 

amount applied is constant across all 

account types reflecting the even 

workload for each account opened by 

clients. 

LCH believes that the proposed rule 

change is consistent with the 

requirements of Section 17A of the 

Act 10 and regulations thereunder 

applicable to it, because it provides for 

the equitable allocation of reasonable 

fees, dues, and other charges among 

clearing members including their clients 

and market participants by ensuring that 

they pay reasonable fees and dues for 

the services that LCH SA provides. 

B. Clearing Agency’s Statement on 

Burden on Competition 

Section 17A(b)(3)(I) of the Act 

requires that the rules of a clearing 

agency not impose any burden on 

competition not necessary or 

appropriate in furtherance of the 

purposes of the Act.11 LCH SA does not 

believe that the proposed rule change 

would impose any burden on 

competition that are not necessary or 

appropriate in furtherance of the 

purposes of the Act. 

The proposed rule change will apply 

equally to all existing and new client 

accounts and does not adversely affect 

the ability of Clearing Members and 

their clients or other market participants 

generally to engage in cleared 

transactions or to access clearing 

services. Therefore, LCH SA does not 

believe that the proposed rule change 

would impose a burden on competition 

not necessary or appropriate in 

furtherance of the purposes of the Act. 

C. Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants or Others 

Written comments relating to the 

proposed rule change have not been 

solicited or received. LCH SA will 

notify the Commission of any written 

comments received by LCH SA. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Subject to any regulatory review or 

approval process duly completed, the 

foregoing proposed rule change has 

become effective upon filing pursuant to 

Section 19(b)(3)(A) 12 of the Act and 

Rule 19b–4(f)(2) 13 thereunder because it 

establishes a fee or other charge 

imposed by LCH SA on its Clearing 

Members. At any time within 60 days of 

the filing of the proposed rule change, 

the Commission summarily may 

temporarily suspend such proposed 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. 

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– 

LCH SA–2017–011 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–LCH SA–2017–011. 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 


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

14 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. 

4 15 U.S.C. 78s(b)(1). 

5 17 CFR 240.19b–4. 

6See Rule 1.160(p). 

7See the Investors Exchange Fee Schedule, 

available on the Exchange’s public website. 

8 Id. 

inspection and copying at the principal 

office of LCH SA and on LCH SA’s 

website at http://www.lch.com/assetclasses/cdsclear. 

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–LCH SA–2017–011 

and should be submitted on or before 

January 23, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Brent J. Fields, 

Secretary. 

[FR Doc. 2017–28308 Filed 12–29–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82409; File No. SR–IEX– 

2017–43] 

Self-Regulatory Organizations; 

Investors Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Related to the 

Displayed Match Fee 

December 27, 2017. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on December 

14, 2017, the Investors Exchange LLC 

(‘‘IEX’’ 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 self-regulatory 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 

Pursuant to the provisions of Section 

19(b)(1) under the Securities Exchange 

Act of 1934 (‘‘Act’’),4 and Rule 19b–4 

thereunder,5 Investors Exchange LLC 

(‘‘IEX’’ or ‘‘Exchange’’) is filing with the 

Commission a proposed rule change to 

modify its Fee Schedule, pursuant to 

IEX Rule 15.110(a) and (c), to: (i) To 

increase the fee for orders that provide 

or take resting interest with displayed 

priority (i.e., displayed liquidity) during 

continuous trading, (ii) eliminate the 

exception to the Non-Displayed Match 

Fee for taking non-displayed liquidity 

with a displayable order for Members 

that predominantly provide displayed 

liquidity (iii) increase the fee for orders 

displayed on the Continuous Book that 

execute as part of the Opening Process 

for Non-IEX-Listed Securities (the 

‘‘Opening Process’’) while continuing to 

provide such orders free execution in 

the Opening and Closing Auction when 

IEX begins to list securities as a primary 

listing exchange, and (iv) make two 

nonsubstantive clarifying changes to its 

Fee Schedule. Changes to the Fee 

Schedule pursuant to this proposal are 

effective upon filing, and will be 

operative on January 1, 2018.The text of 

the proposed rule change is available at 

the Exchange’s website at 

www.iextrading.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 these statement may be examined at 

the places specified in Item IV below. 

The self-regulatory organization 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 modify its 

Fee Schedule, pursuant to IEX Rule 

15.110(a) and (c), to (i) to increase the 

fee for orders that provide or take 

displayed liquidity during continuous 

trading, (ii) eliminate the exception to 

the Non-Displayed Match Fee for taking 

non-displayed liquidity with a 

displayable order for Members that 

predominantly provide displayed 

liquidity, (iii) increase the fee for orders 

displayed on the Continuous Book that 

execute as part of the Opening Process 

while continuing to provide such orders 

free execution in the Opening and 

Closing Auction when IEX begins to list 

securities as a primary listing exchange, 

and (iv) make two nonsubstantive 

clarifying changes to its Fee Schedule. 

Displayed Match Fee 

Pursuant to the existing Fee Schedule, 

the Exchange currently does not charge 

any fee to Members for executions on 

IEX that provide or take displayed 

liquidity (i.e., an order or portion of a 

reserve order that is booked and ranked 

with display priority on the Order 

Book 6 either as the IEX best bid or best 

offer (‘‘BBO’’), or at a less aggressive 

price). This pricing is referred to by the 

Exchange as the ‘‘Displayed Match Fee’’, 

resulting in a Fee Code of ‘L’ provided 

by the Exchange on execution reports to 

Members.7 The Exchange proposes to 

update its Fee Schedule, pursuant to 

IEX Rule 15.110(a) and (c), to (i) 

increase the Displayed Match Fee from 

$0 to $0.0003 for securities with an 

execution price at or above $1.00, or 

0.30% of the total dollar value of the 

transaction for securities with an 

execution price below $1.00, calculated 

as the execution price multiplied by the 

number of shares executed in the 

transaction. 

The current Displayed Match Fee of 

$0 was adopted in connection with 

IEX’s launch as a national securities 

exchange in August 2016, and was 

designed to attract displayed order flow 

to the Exchange, without offering 

rebates, thereby contributing to price 

discovery and consistent with the 

overall goal of enhancing market 

quality. The Exchange periodically 

assesses its fee structure. Based upon a 

recent assessment, the Exchange 

determined that the modest proposed 

fee increase for the Displayed Match Fee 

would continue to attract and 

incentivize displayed order flow in a 

comparable manner, while also 

increasing revenue. 

The Exchange is not proposing any 

change to the Internalization Fee 

whereby no fee is charged for 

executions when the adding and 

removing order originated from the 

same Exchange Member. Accordingly, 

transactions that qualify for the 

Internalization Fee will not be charged 

the Displayed Match Fee, since the IEX 

Fee Schedule provides that to the extent 

a Member receives multiple Fee Codes 

on an execution, the lower fee shall 

apply.8

Non-Displayed Match Fee 

The Exchange currently charges the 

Non-Displayed Match Fee of $0.0009 


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