Federal Register / Vol. 83, No. 3 / Thursday, January 4, 2018 / Notices 553 

11 15 U.S.C. 78s(b)(3)(A). 

12 17 CFR 240.19b–4(f)(4)(ii). 13 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)(ii). 

4 17 CFR 240.19b–4(f)(2). 

5A ‘‘Distributor’’ is defined as ‘‘any entity that 

receives the Exchange Market Data product directly 

from the Exchange or indirectly through another 

entity and then distributes it internally or externally 

to a third party.’’ See the Exchange’s fee schedule 

available at http://markets.cboe.com/us/equities/ 

membership/fee_schedule/edgx/. An ‘‘Internal 

Distributor’’ is defined as ‘‘a Distributor that 

receives the Exchange Market Data product and 

then distributes that data to one or more Users 

within the Distributor’s own entity.’’ Id. 

Procedures applicable to the exercise of 

options to align the Procedures with 

recent changes to the Exchange rules, 

and to make certain other clarifications 

and updates. ICE Clear Europe does not 

believe the amendments would affect 

competition among clearing members or 

adversely affect the cost of clearing, the 

market for clearing services generally or 

access to clearing in these products by 

clearing members or other market 

participants. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants or Others 

Written comments relating to the 

proposed amendments have not been 

solicited or received by ICE Clear 

Europe. ICE Clear Europe will notify the 

Commission of any comments received 

with respect to the proposed 

amendments. 

III. Date of Effectiveness of the 

Proposed Rule Change, Security-Based 

Swap Submission and Advance Notice 

and Timing for Commission Action 

The foregoing rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 11 and Rule 19b–4(f)(4)(ii) 12

thereunder. 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 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, 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– 

ICEEU–2017–015 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–ICEEU–2017–015. 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 Section, 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 

filings will also be available for 

inspection and copying at the principal 

office of ICE Clear Europe and on ICE 

Clear Europe’s website at https://

www.theice.com/notices/ 

Notices.shtml?regulatoryFilings. 

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–ICEEU–2017–015 

and should be submitted on or before 

January 25, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2017–28437 Filed 1–3–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82424; File No. SR– 

CboeEDGX–2017–008] 

Self-Regulatory Organizations; Cboe 

EDGX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change Related to 

Market Data Fees 

December 29, 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 

15, 2017, Cboe EDGX Exchange, Inc. 

(the ‘‘Exchange’’ or ‘‘EDGX’’) 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 a 

mend [sic] the Market Data section of its 

fee schedule to lower the Internal 

Distribution 5 fees and to adopt per User 

fees for the Cboe One Summary Feed. 

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 


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6A ‘‘Professional User’’ is defined as ‘‘any User 

other than a Non-Professional User.’’ See the 

Exchange’s fee schedule available at http://

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

schedule/edgx/. 

7A ‘‘Non-Professional User’’ is currently defined 

as ‘‘a natural person who is not: (i) Registered or 

qualified in any capacity with the Commission, the 

Commodity Futures Trading Commission, any state 

securities agency, any securities exchange or 

association, or any commodities or futures contract 

market or association; (ii) engaged as an 

‘‘investment adviser’’ as that term is defined in 

Section 202(a)(11) of the Investment Advisers Act 

of 1940 (whether or not registered or qualified 

under that Act); or (iii) employed by a bank or other 

organization exempt from registration under federal 

or state securities laws to perform functions that 

would require registration or qualification if such 

functions were performed for an organization not so 

exempt.’’ Id. See SR–CboeEDGX–2017–006 (filed 

December 15, 2017) (amending the definition of 

Non-Professional User to harmonize it with that of 

its affiliate exchanges, Cboe Exchange, Inc. and C2 

Exchange, Inc. as of January 2, 2018). 

8EDGX’s affiliated exchanges are Cboe BYX 

Exchange, Inc. (‘‘BYX’’), Cboe EDGA Exchange, Inc. 

(‘‘EDGA’’), and Cboe BZX Exchange, Inc. (‘‘BZX’’, 

together with EDGX, EDGA, and BYX, the ‘‘Cboe 

Equity Exchanges’’). 

9See Exchange Rule 11.22(j). See also Securities 

Exchange Act Release No. 73918 (December 23, 

2014), 79 FR 78920 (December 31, 2014) (File Nos. 

SR–EDGX–2014–25; SR–EDGA–2014–25; SR– 

BATS–2014–055; SR–BYX–2014–030) (Notice of 

Amendment No. 2 and Order Granting Accelerated 

Approval to Proposed Rule Changes, as Modified by 

Amendments Nos. 1 and 2, to Establish a New 

Market Data Product called the Cboe One Feed) 

(‘‘Cboe One Approval Order’’). 

10The Exchange also proposes a non-substantive, 

immaterial change to the fee table headings to 

conform to other heading within the Market Data 

Section of the fee schedule. In particular, the 

Exchange proposes to change the term ‘‘Distributor’’ 

to ‘‘Distribution’’ in both the Internal Distributor 

and External Distributor headings under the Cboe 

One Feed. 

11See Securities Exchange Act Release Nos. 

74282 (February 18, 2015); 80 FR 9487 (February 

23, 2015) (SR–EDGX–2015–09) (proposing fees for 

the Bats One Feed); 75397 (July 8, 2015), 80 FR 

41104 (July 14, 2015) (SR–EDGX–2015–28) 

(proposing user fees for the EDGX Top and Last 

Sale data feeds); and 75788 (August 28, 2015), 80 

FR 53364 (September 3, 2015) (SR–EDGX–2015–38) 

(proposing fees for EDGX Book Viewer). 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

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

the most significant parts of such 

statements. 

(A) Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend the 

Market Data section of its fee schedule 

to lower the fee for Internal Distribution 

and to adopt separate fees for 

Professional 6 and Non-Professional 

Users 7 for the Cboe One Summary Feed. 

The Cboe One Feed is an optional 

data feed that disseminates, on a realtime basis, the aggregate best bid and 

offer (‘‘BBO’’) of all displayed orders for 

securities traded on EDGX and its 

affiliated exchanges 8 and for which 

they report quotes under the 

Consolidated Tape Association (‘‘CTA’’) 

Plan or the Nasdaq/UTP Plan.9 The 

Cboe One Feed also contains the 

individual last sale information for the 

Cboe Equity Exchanges (collectively 

with the aggregate BBO, the ‘‘Cboe One 

Summary Feed’’). In addition, the Cboe 

One Feed contains optional 

functionality which enables recipients 

to receive aggregated two-sided 

quotations from the Cboe Equity 

Exchanges for up to five (5) price levels 

(‘‘Cboe One Premium Feed’’). 

The Exchange proposes to amend its 

fee schedule to lower the fee for Internal 

Distribution for the Cboe One Summary 

Feed and to adopt separate fees for 

Professional and Non-Professional 

Users.10 The Exchange does not propose 

to amend the fees for the Cboe One 

Premium Feed. 

Distribution Fees. Currently, each 

Internal Distributor that receives the 

Cboe One Summary Feed is charged a 

fee of $10,000 per month. The Exchange 

now proposes to lower the fee for 

Internal Distribution to $1,500 per 

month. 

User Fees. Like it does today for 

External Distributors, the Exchange 

proposes to adopt per User fees for 

Internal Distributors that receive the 

Cboe One Summary Feed. The Exchange 

currently charges External Distributors 

that redistribute the Cboe One Summary 

Feed different fees for their Professional 

Users and Non-Professional Users. 

Those fees are $10.00 per month for 

each Professional Users and $0.25 per 

month for each Non-Professional Users. 

To date, the Exchange has not charged 

per User fees to Internal Distributors for 

the Cboe One Summary Feed. To offset 

the proposed reduction to the monthly 

Internal Distribution fee, the Exchange 

proposes to adopt per User fees for 

Internal Distribution, the amounts of 

each fee would be the same as the per 

User fees currently charged to External 

Distributors described above. 

The Exchange also proposes to extend 

the current $50,000 per month 

Enterprise Fee available to External 

Distributors of the Cboe One Summary 

Feed to Internal Distributors. In lieu of 

per User fees, the Enterprise fee will 

permit Internal Distributors who 

redistribute the Cboe One Summary 

Feed to an unlimited number of internal 

Professional and Non-Professional Users 

for a set fee of $50,000 per month. For 

example, if an Internal Distributor had 

15,000 Professional Users who each 

receive the Cboe One Summary Feed at 

$10.00 per month, then that Internal 

Distributor will pay $150,000 per month 

in Professional Users fees. Under the 

proposed Enterprise Fee, the Internal 

Distributor will pay a flat fee of $50,000 

for an unlimited number of internal 

Professional and Non-Professional Users 

of the Cboe One Summary Feed. An 

Internal Distributor that pays the 

Enterprise Fee will not have to report its 

number of such Users (as set forth 

below) on a monthly basis. However, 

every six months, an Internal Distributor 

must provide the Exchange with a count 

of the total number of natural person 

users of each product, including both 

Professional and Non-Professional 

Users. Like for External Distributors, the 

Enterprise Fee for Internal Distributors 

would be in addition to the applicable 

Distribution Fee. 

Like External Distributors of the Cboe 

One Summary Feed, Internal 

Distributors that receive the Cboe One 

Summary Feed will be required to count 

every Professional User and NonProfessional User to which they provide 

the Cboe One Summary Feed, the 

requirements for which are identical to 

that currently in place for External 

Distributors of the Cboe One Summary 

Feed and other market data products 

offered by the Exchange.11 Thus, the 

Internal Distributor’s count will include 

every person and device that accesses 

the data regardless of the purpose for 

which the individual or device uses the 

data. Internal Distributors must report 

all Professional and Non-Professional 

Users in accordance with the following: 

• In connection with an Internal 

Distributor’s distribution of the Cboe 

One Summary Feed, the Internal 

Distributor must count as one User each 

unique User that the Internal Distributor 

has entitled to have access to the Cboe 

One Summary Feed. However, where a 

device is dedicated specifically to a 

single individual, the Internal 

Distributor must count only the 

individual and need not count the 

device. 

• The Internal Distributor must 

identify and report each unique User. If 

a User uses the same unique method to 

gain access to the Cboe One Summary 

Feed, the Internal Distributor must 

count that as one User. However, if a 

unique User uses multiple methods to 

gain access to the Cboe One Summary 

Feed (e.g., a single User has multiple 

passwords and user identifications), the 


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12 15 U.S.C. 78f. 

13 15 U.S.C. 78f(b)(4). 

14 15 U.S.C. 78k–1. 

15 17 CFR 242.603. 

16The Exchange believes that cost-based pricing 

would be impractical because it would create 

enormous administrative burdens for all parties, 

including the Commission, to cost-regulate a large 

number of participants and standardize and analyze 

extraordinary amounts of information, accounts, 

and reports. In addition, it is impossible to regulate 

market data prices in isolation from prices charged 

by markets for other services that are joint products. 

Cost-based rate regulation would also lead to 

litigation and may distort incentives, including 

those to minimize costs and to innovate, leading to 

further waste. Under cost-based pricing, the 

Commission would be burdened with determining 

a fair rate of return, and the industry could 

experience frequent rate increases based on 

escalating expense levels. Even in industries 

historically subject to utility regulation, cost-based 

ratemaking has been discredited. As such, the 

Exchange believes that cost-based ratemaking 

would be inappropriate for proprietary market data 

and inconsistent with Congress’s direction that the 

Commission use its authority to foster the 

development of the national market system, and 

that market forces will continue to provide 

appropriate pricing discipline. See Appendix C to 

NYSE’s comments to the Commission’s 2000 

Concept Release on the Regulation of Market 

Information Fees and Revenues, which can be 

found on the Commission’s website at http://

www.sec.gov/rules/concept/s72899/buck1.htm. See 

also Securities Exchange Act Release No. 73816 

(December 11, 2014), 79 FR 75200 (December 17, 

2014) (SR–NYSE–2014–64) (Notice of Filing and 

Immediate Effectiveness of Proposed Rule Change 

to Establish an Access Fee for the NYSE Best Quote 

and Trades Data Feed, Operative December 1, 

2014). 

Internal Distributor must report each of 

those methods as an individual User. 

• Internal Distributors must report 

each unique individual person who 

receives access through multiple 

devices as one User so long as each 

device is dedicated specifically to that 

individual. 

• If an Internal Distributor entitles 

one or more individuals to use the same 

device, the Distributor must include 

only the individuals, and not the device, 

in the count. 

Implementation Date 

The Exchange intends to implement 

the proposed fees on January 2, 2018. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6 of the Act,12

in general, and furthers the objectives of 

Section 6(b)(4),13 in particular, as it is 

designed to provide for the equitable 

allocation of reasonable dues, fees and 

other charges among its members and 

other recipients of Exchange data. The 

Exchange believes that the proposed 

rates are equitable and nondiscriminatory in that they apply 

uniformly to all recipients of Exchange 

data. The Exchange believes the 

proposed fees are competitive with 

those charged by other venues and, 

therefore, reasonable and equitably 

allocated to recipients. 

The Exchange believes that the 

proposed rule change is consistent with 

Section 11(A) of the Act 14 in that it 

supports (i) fair competition among 

brokers and dealers, among exchange 

markets, and between exchange markets 

and markets other than exchange 

markets and (ii) the availability to 

brokers, dealers, and investors of 

information with respect to quotations 

for and transactions in securities. 

Furthermore, the proposed rule change 

is consistent with Rule 603 of 

Regulation NMS,15 which provides that 

any national securities exchange that 

distributes information with respect to 

quotations for or transactions in an NMS 

stock do so on terms that are not 

unreasonably discriminatory. In 

adopting Regulation NMS, the 

Commission granted self-regulatory 

organizations and broker-dealers 

increased authority and flexibility to 

offer new and unique market data to the 

public. It was believed that this 

authority would expand the amount of 

data available to consumers, and also 

spur innovation and competition for the 

provision of market data. 

In addition, the proposed fees would 

not permit unfair discrimination 

because all of the Exchange’s customers 

and market data vendors who subscribe 

to the Cboe One Summary Feed will be 

subject to the proposed fees. The Cboe 

One Summary Feed is distributed and 

purchased on a voluntary basis, in that 

neither the Exchange nor market data 

distributors are required by any rule or 

regulation purchase this data or to make 

this data available. Accordingly, 

Distributors and Users can discontinue 

use at any time and for any reason, 

including due to an assessment of the 

reasonableness of fees charged. Firms 

have a wide variety of alternative 

market data products from which to 

choose, such as similar proprietary data 

products offered by other exchanges and 

consolidated data. Moreover, the 

Exchange is not required to make any 

proprietary data products available or to 

offer any specific pricing alternatives to 

any customers. 

In addition, the fees that are the 

subject of this rule filing are constrained 

by competition. As explained below in 

the Exchange’s Statement on Burden on 

Competition, the existence of 

alternatives to the Cboe One Summary 

Feed further ensure that the Exchange 

cannot set unreasonable fees, or fees 

that are unreasonably discriminatory, 

when vendors and subscribers can elect 

such alternatives. That is, the Exchange 

competes with other exchanges (and 

their affiliates) that provide similar 

market data products. For example, the 

Cboe One Summary Feed provides 

investors with alternative market data 

and competes with similar market data 

product currently offered by other 

exchanges. If another exchange (or its 

affiliate) were to charge less to distribute 

its similar product than the Exchange 

charges to create the Cboe One 

Summary Feed, prospective Users likely 

would not subscribe to, or would cease 

subscribing to either market data 

product. 

The Exchange notes that the 

Commission is not required to 

undertake a cost-of-service or ratemaking approach. The Exchange 

believes that, even if it were possible as 

a matter of economic theory, cost-based 

pricing for non-core market data would 

be so complicated that it could not be 

done practically.16

The Exchange believes that lowering 

the Internal Distribution fee for the Cboe 

One Summary Feed is equitable and 

reasonable because the lower fee 

coupled with the adoption of per User 

fees is designed to provide a price 

structure for Internal Distributors that is 

competitive and attracts additional 

subscribers to each market data feed. 

The Exchange also believes that it is 

reasonable to charge a lower fee to 

Internal Distributors than External 

Distributors because External 

Distributors redistribute the data to their 

subscribers for a fee while Internal 

Distributors do not. 

The Exchange believes that 

implementing the Professional and NonProfessional User fees for the Cboe One 

Summary Feed are equitable and 

reasonable because they will result in 

greater availability to Professional and 

Non-Professional Users. The addition of 

per User fees also enables the fee for 

Internal Distribution, thereby lowering 

their overall costs where the number of 

Users they account for is low. Moreover, 

introducing a modest Non-Professional 

User fee is reasonable because it 

provides an additional method for NonProfessional investors to access the data 

by providing the same data that is 

available to Professional Users. The 

Exchange believes that the proposed 

fees are equitable and not unfairly 

discriminatory because they will be 

charged uniformly to Internal 

Distributors and Users. The Exchange 

notes that the amount of the per User 

fees for Internal Distribution equal those 

charged for External Distribution for the 

Cboe One Summary Feed. 


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17See Securities Exchange Act Release Nos. 

74285 (February 18, 2015), 80 FR 9828 (February 

24, 2015) (SR–BATS–2015–11); 74283 (February 18, 

2015), 80 FR 9809 (February 24, 2015) (SR–EDGA– 

2015–09); 74282 (February 17, 2015), 80 FR 9487 

(February 23, 2015) (SR–EDGX–2015–09); and 

74284 (February 18, 2015), 80 FR 9792 (February 

24, 2015) (SR–BYX–2015–09) (‘‘Initial Cboe One 

Feed Fee Filings’’). See also, e.g., Securities 

Exchange Act Release No. 20002, File No. S7–433 

(July 22, 1983) (establishing nonprofessional fees 

for CTA data); and Nasdaq Rules 7023(b) and 7047. 

18See Nasdaq Basic, http://

www.nasdaqtrader.com/ 

Trader.aspx?id=nasdaqbasic (data feed offering the 

BBO and Last Sale information for all U.S. 

exchange-listed securities based on liquidity within 

the Nasdaq market center, as well as trades reported 

to the FINRA/Nasdaq Trade Reporting Facility 

(‘‘TRF’’)); Nasdaq NLS Plus, http://

www.nasdaqtrader.com/Trader.aspx?id=NLSplus 

(data feed providing last sale data as well as 

consolidated volume from the following Nasdaq 

OMX markets for U.S. exchange-listed securities: 

Nasdaq, FINRA/Nasdaq TRF, Nasdaq OMX BX, and 

Nasdaq OMX PSX); Securities Exchange Act 

Release No. 73553 (November 6, 2014), 79 FR 67491 

(November 13, 2014) (SR–NYSE–2014–40) (Notice 

of Amendment No. 1 and Order Granting 

Accelerated Approval to a Proposed Rule Change, 

as Modified by Amendment No.1, To Establish the 

NYSE Best Quote & Trades (‘‘BQT’’) Data Feed); 

https://www.nyse.com/market-data/real-time/nysebqt (data feed providing unified view of BBO and 

last sale information for the NYSE, NYSE Arca, and 

NYSE MKT). 

19 Id. 

20 15 U.S.C. 78s(b)(3)(A). 

21 17 CFR 240.19b–4(f). 

The fee structure of differentiated 

Professional and Non-Professional fees 

is utilized by the Exchange for the Cboe 

One Feed and has long been used by 

other exchanges for their proprietary 

data products, and by the Nasdaq UTP 

and the CTA and CQ Plans in order to 

reduce the price of data to retail 

investors and make it more broadly 

available.17 Offering the Cboe One 

Summary Feed to Non-Professional 

Users with the same data available to 

Professional Users results in greater 

equity among data recipients. 

The proposed expansion of the 

Enterprise Fee to Internal Distributors of 

the Cboe One Summary Feed is 

reasonable because it could result in a 

fee reduction for Internal Distributors 

with a large number of Professional and 

Non-Professional Users. If an Internal 

Distributor has a smaller number of 

Professional Users of the Cboe One 

Summary Feed, then it may continue 

using the per User structure. By 

reducing prices for Internal Distributors 

with a large number of Professional and 

Non-Professional Users, the Exchange 

believes that more Internal Distributors 

may choose to receive and to distribute 

the Cboe One Summary Feed, thereby 

expanding the distribution of this 

market data for the benefit of investors. 

The Exchange further believes that the 

proposed Enterprise Fee is reasonable 

because it will simplify reporting for 

certain Internal Distributors that have 

large numbers of Professional and NonProfessional Users. Internal Distributors 

that pay the proposed Enterprise Fee 

will not have to report the number of 

Users on a monthly basis as they 

currently do, but rather will only have 

to count natural person users every six 

months, which is a significant reduction 

in administrative burden. Finally, the 

Exchange believes that it is equitable 

and not unfairly discriminatory to 

establish an Enterprise Fee because it 

reduces the Exchange’s costs and the 

Distributor’s administrative burdens in 

tracking and auditing large numbers of 

Users. 

(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’s ability to price the Cboe 

One Summary Feed is constrained by: 

(i) Competition among exchanges, other 

trading platforms, and Trade Reporting 

Facilities (‘‘TRF’’) that compete with 

each other in a variety of dimensions; 

(ii) the existence of inexpensive realtime consolidated data and marketspecific data and free delayed data; and 

(iii) the inherent contestability of the 

market for proprietary data. 

The Exchange and its market data 

products are subject to significant 

competitive forces and the proposed 

fees represent responses to that 

competition. To start, the Exchange 

competes intensely for order flow. It 

competes with the other national 

securities exchanges that currently trade 

equities, with electronic communication 

networks, with quotes posted in 

FINRA’s Alternative Display Facility, 

with alternative trading systems, and 

with securities firms that primarily 

trade as principal with their customer 

order flow. The Cboe One Summary 

Feed will enhance competition because 

it not only provides content that is 

competitive with the similar products 

offered by other exchanges, but will 

provide pricing that is competitive as 

well. The Cboe One Summary Feed 

provides investors with an alternative 

option for receiving market data and 

competes directly with similar market 

data products currently offered by the 

NYSE and Nasdaq.18

In addition, when establishing the 

proposed fees, the Exchange considered 

the competitiveness of the market for 

proprietary data and all of the 

implications of that competition. The 

Exchange believes that it has considered 

all relevant factors and has not 

considered irrelevant factors in order to 

establish fair, reasonable, and not 

unreasonably discriminatory fees and an 

equitable allocation of fees among all 

Users. The existence of alternatives to 

the Cboe One Summary Feed ensures 

that the Exchange cannot set 

unreasonable fees, or fees that are 

unreasonably discriminatory, when 

vendors and subscribers can elect these 

alternatives or choose not to purchase a 

specific proprietary data product if its 

cost to purchase is not justified by the 

returns any particular vendor or 

subscriber would achieve through the 

purchase. 

Lastly, the Exchange represents that 

the proposed pricing of the Cboe One 

Summary Feed provides investors with 

alternative market data and competes 

with similar market data product 

currently offered by other exchanges.19

In addition, the Exchange notes the 

concerns regarding whether a competing 

vendor could create a similar product 

on the same price basis as the Exchange 

are not present here. The proposed 

changes are limited to fees for Internal 

Distributers who use the data for 

internal use only and not for the 

redistribution and sale to external 

parties. 

(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 

The foregoing rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 20 and paragraph (f) of Rule 

19b–4 thereunder.21 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 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: 


ethrower on DSK3G9T082PROD with NOTICES
Federal Register / Vol. 83, No. 3 / Thursday, January 4, 2018 / Notices 557 

22 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Regulation (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. 

4Securities Exchange Act Release No. 34–82194 

(December 1, 2017), 82 FR 57803 (December 7, 

2017) (SR–LCH–2017–010) (‘‘Notice’’). 

5Regulation (EU) No 648/2012 of the European 

Parliament and of the Council of 4 July 2012 on 

OTC derivatives, central counterparties and trade 

reporting. 

6Capitalized terms not otherwise defined herein 

have the meanings ascribed to them in the 

Rulebook. 

7 In this context, the Commission understands 

STP to mean that an authorized CCP must have 

systems, procedures, and arrangements in place to 

ensure derivatives are cleared as quickly as 

technologically practicable using automated 

systems. Notice, 82 FR at 57804. The Commission 

understands that RTS 26 provides detailed 

additional requirements regarding the transfer of 

information and related authorized CCP rulebook 

requirements, as well as timelines for the transfer 

of information, among other things. See id. at 57803 

& n.5 (citing RTS 26). 

8Notice, 82 FR at 57803. 

9Commission Delegated Regulation (EU) 2017/ 

582 of 29.6.2016 supplementing Regulation (EU) No 

600/2014 of the European Parliament and of the 

Council with regard to regulatory technical 

standards specifying the obligation to clear 

derivatives traded on regulated markets and timing 

of acceptance for clearing. 

10Commission Delegated Regulation (EU) of 

22.9.2017 amending Commission Delegated 

Regulation (EU) No 149/2013 with regard to 

regulatory technical standards on indirect clearing 

arrangements. A separate, but identical, set of RTS 

apply to indirect clearing of exchange-traded 

derivatives. See, Commission Delegated Regulation 

(EU) of 22.9.2017 supplementing Regulation (EU) 

No 600/2014 with regard to regulatory technical 

standards on indirect clearing arrangements. 

11The Commission understands that the term 

‘‘trading venue,’’ as used in RTS 26, refers to EUbased venues only (i.e., regulated markets, 

multilateral trading facilities and organized trading 

facilities). LCH SA therefore represents that thirdContinued 

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– 

CboeEDGX–2017–008 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE, Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–CboeEDGX–2017–008. 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–CboeEDGX–2017–008 and 

should be submitted on or before 

January 25, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.22

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2017–28495 Filed 1–3–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82421; File No. SR–LCH 

SA–2017–010] 

Self-Regulatory Organizations; LCH 

SA; Order Granting Accelerated 

Approval of a Proposed Rule Change 

Relating to the Implementation of the 

Markets in Financial Instruments 

Regulation 

December 29, 2017. 

I. Introduction 

On November 21, 2017, Banque 

Centrale de Compensation, which 

conducts business under the name LCH 

SA (‘‘LCH SA’’), filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’), pursuant to 

Section 19(b)(1) of the Securities 

Exchange Act of 1934 (‘‘Act’’),1 and 

Rule 19b–4 thereunder,2 a proposed rule 

change to make conforming and 

clarifying changes necessary to 

implement certain provisions of the 

European Union’s Markets in Financial 

Instruments Regulation (‘‘MiFIR’’).3 The 

proposed rule change was published for 

comment in the Federal Register on 

December 7, 2017.4 The Commission 

received no comment letters regarding 

the proposed rule change. For the 

reasons discussed below, the 

Commission is approving the proposed 

rule change on an accelerated basis. 

II. Description of the Proposed Rule 

Change 

a. Overview 

The principal purpose of this 

proposed rule change is to amend LCH 

SA’s CDS Clearing Rulebook (the 

‘‘Rulebook’’) and CDS Clearing 

Procedures (the ‘‘Procedures’’) to 

implement provisions of MiFIR that are 

applicable to central counterparties 

(‘‘CCPs’’) authorized under the 

European Markets Infrastructure 

Regulation (‘‘EMIR’’) 5 (each such CCP, 

an ‘‘authorized CCP’’).6 In particular, 

the proposed rule changes are intended 

to implement Article 29 of MiFIR, 

which the Commission understands 

requires authorized CCPs to establish 

effective systems, procedures and 

arrangements to ensure that cleared 

derivatives transactions are submitted 

and accepted for clearing on a straightthrough processing (‘‘STP’’) basis,7 and 

Article 30 of MiFIR, which the 

Commission understands requires 

authorized CCPs to establish indirect 

clearing arrangements with respect to 

exchange-traded derivatives (‘‘ETDs’’) 

that are of ‘‘equivalent effect’’ to the 

corresponding requirements under 

EMIR.8

In addition, the Commission 

understands that the European 

Commission has adopted regulatory 

technical standards to set more specific 

requirements that authorized CCPs must 

meet in order to comply with MiFIR. 

The regulatory technical standards for 

straight-through processing (‘‘RTS 26’’) 

were adopted in 2016.9 More recently, 

the European Commission adopted 

regulatory technical standards, which 

align the indirect clearing requirements 

under EMIR and MiFIR (‘‘Indirect 

Clearing RTS’’).10 MiFIR takes effect 

January 3, 2018 and it is expected that 

the Indirect Clearing RTS will also take 

effect on the same date. 

b. Straight-Through Processing 

The Commission understands that 

RTS 26 establishes the specific 

requirements with which authorized 

CCPs, trading venues,11 and clearing 


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