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

59 17 CFR 240.17Ad–22(e)(1). 

60 15 U.S.C. 78q–1(b)(3)(F). 

61 17 CFR 240.17Ad–22(e)(4) and (6). 

62 15 U.S.C. 78q–1(b)(3)(F). 

63 15 U.S.C. 78s(b)(2)(C)(iii). 

64 Id. 

65 Id. 

66 15 U.S.C. 78q–1. 

67 15 U.S.C. 78s(b)(2). 

68 In approving the proposed rule change, the 

Commission considered the proposal’s impact on 

efficiency, competition, and capital formation. 15 

U.S.C. 78c(f). 

69 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). 

all relevant jurisdictions, consistent 

with Rule 17Ad–22(e)(1).59

c. Other Provisions 

With respect to the proposed rule 

change replacing the definition of 

‘‘Member Uncovered Risk’’ with ‘‘Group 

Member Uncovered Risk,’’ the 

Commission believes the proposed 

changes will improve LCH SA’s ability 

to identify and measure the risks 

associated with clearing processes by 

taking into account the relevant LCH 

Group Risk Policy and considering 

whether Clearing Members belong to the 

same group for purposes of the relevant 

risk calculations As a result, the 

Commission believes that LCH SA will 

be better situated to collect the level of 

resources commensurate with the risks 

associated with affiliated Clearing 

Members and will thereby be able to 

more appropriately cover its credit 

exposures to its participants. Therefore, 

the Commission finds that the proposed 

rule change regarding the definition of 

Group Member Uncovered Risk will 

further the protection of investors and 

the public interest, consistent with 

Section 17A(b)(3)(F) of the Act.60 For 

the same reasons, the Commission also 

finds that the proposed rule change 

regarding the definition of Group 

Member Uncovered Risk is consistent 

with the applicable requirements of 

Rules 17Ad–22(e)(4) and (e)(6).61

The proposed rule change also revises 

LCH SA’s CDS Default Management 

Process to clarify the responsibilities 

between a Non-Defaulting Clearing 

Member and the Auction Member 

Representative appointed by the NonDefaulting Clearing Member to act in 

such Clearing Member’s place in the 

competitive bidding process. In doing 

so, the Commission finds the proposed 

rule change facilitates LCH SA’s CDS 

Default Management Process, thereby 

enabling LCH SA to limit its exposures 

to potential losses from defaults by its 

participants and the exposures of nondefaulting participants to losses that 

they cannot anticipate or control. As a 

result, the Commission finds that the 

proposed rule change regarding the 

responsibilities between a NonDefaulting Clearing Member and the 

Auction Member Representative 

appointed by the Non-Defaulting 

Clearing Member further the protection 

of investors and the public interest 

consistent with Section 17A(b)(3)(F) of 

the Act.62

In its filing, LCH SA requested that 

the Commission grant accelerated 

approval of the proposed rule change 

pursuant to Section 19(b)(2)(C)(iii) of 

the Exchange Act.63 Under Section 

19(b)(2)(C)(iii) of the Act,64 the 

Commission may grant accelerated 

approval of a proposed rule change if 

the Commission finds good cause for 

doing so. LCH SA believes that 

accelerated approval is warranted 

because the proposed rule change is 

required as of January 3, 2018 in order 

to comply with the requirements of 

MiFIR. 

The Commission finds good cause, 

pursuant to Section 19(b)(2)(C)(iii) of 

the Act,65 for approving the proposed 

rule change on an accelerated basis, 

prior to the 30th day after the date of 

publication of notice in the Federal 

Register, because the proposed rule 

change is required as of January 3, 2018 

in order to facilitate LCH SA’s efforts to 

comply with MiFIR, RTS 26, and the 

Indirect Clearing RTS. Additionally, the 

Commission notes that the proposed 

changes regarding indirect clearing do 

not apply to U.S. customers, and that 

LCH SA has represented that amending 

its Rulebook and Procedures to comply 

with requirements regarding indirect 

clearing do not impede compliance with 

relevant U.S. law, including Section 

17A(b)(3)(F) of the Act. 

IV. Conclusion 

On the basis of the foregoing, the 

Commission finds that the proposal is 

consistent with the requirements of the 

Act and in particular with the 

requirements of Section 17A of the 

Act 66 and the rules and regulations 

thereunder. 

It is therefore ordered pursuant to 

Section 19(b)(2) of the Act 67 that the 

proposed rule change (SR–LCH SA– 

2017–010) be, and hereby is, approved 

on an accelerated basis.68

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.69

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2017–28492 Filed 1–3–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82416; File No. SR– 

CboeBYX–2017–004] 

Self-Regulatory Organizations; Cboe 

BYX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change Related to 

Market Data Fees 

December 28, 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 BYX Exchange, Inc. 

(‘‘BYX’’ 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 the Market Data section of its fee 

schedule to lower the Internal 

Distribution 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 

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 


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5A ‘‘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/byx/. 

6A ‘‘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–CboeBYX–2017–003 (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). 

7BYX’s affiliated exchanges are Cboe EDGA 

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

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

(‘‘BZX’’, together with EDGX, EDGA, and BYX, the 

‘‘Cboe Equity Exchanges’’). 

8See 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’’). 

9The 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. 

10See Securities Exchange Act Release Nos. 

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

24, 2015) (SR–BYX–2015–09) (proposing fees for 

the Cboe One Feed); 75407 (July 9, 2015), 80 FR 

41532 (July 15, 2015) (SR–BYX–2015–30) 

(proposing user fees for the BYX Top and Last Sale 

data feeds); and 75786 (August 28, 2015), 80 FR 

53353 (September 3, 2015) (SR–BYX–2015–36) 

(proposing fees for BYX Book Viewer). 

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 5 and Non-Professional 

Users 6 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 BYX and its 

affiliated exchanges 7 and for which 

they report quotes under the 

Consolidated Tape Association (‘‘CTA’’) 

Plan or the Nasdaq/UTP Plan.8 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.9 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.10 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 

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. 


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11 15 U.S.C. 78f. 

12 15 U.S.C. 78f(b)(4). 

13 15 U.S.C. 78k–1. 

14 17 CFR 242.603. 

15The 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). 

• 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,11

in general, and furthers the objectives of 

Section 6(b)(4),12 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 13 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,14 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.15

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. 

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 


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16See 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. 

17See 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). 

18 Id. 

19 15 U.S.C. 78s(b)(3)(A). 

20 17 CFR 240.19b–4(f). 

available.16 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.17

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.18

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 19 and paragraph (f) of Rule 

19b–4 thereunder.20 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: 

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–2017–004 on the subject line. 


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

21 17 CFR 200.30–3(a)(12). 

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–CboeBYX–2017–004. 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–CboeBYX–2017–004 and 

should be submitted on or before 

January 25, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.21

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2017–28438 Filed 1–3–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Investment Company Act Release No. 

32957 ] 

Notice of Applications for 

Deregistration Under the Investment 

Company Act of 1940 

December 29, 2017. 

The following is a notice of 

applications for deregistration under 

section 8(f) of the Investment Company 

Act of 1940 for the month of December 

2017. A copy of each application may be 

obtained via the Commission’s website 

by searching for the file number, or for 

an applicant using the Company name 

box, at http://www.sec.gov/search/

search.htm or by calling (202) 551– 

8090. An order granting each 

application will be issued unless the 

SEC orders a hearing. Interested persons 

may request a hearing on any 

application by writing to the SEC’s 

Secretary at the address below and 

serving the relevant applicant with a 

copy of the request, personally or by 

mail. Hearing requests should be 

received by the SEC by 5:30 p.m. on 

January 23, 2018, and should be 

accompanied by proof of service on 

applicants, in the form of an affidavit or, 

for lawyers, a certificate of service. 

Pursuant to Rule 0–5 under the Act, 

hearing requests should state the nature 

of the writer’s interest, any facts bearing 

upon the desirability of a hearing on the 

matter, the reason for the request, and 

the issues contested. Persons who wish 

to be notified of a hearing may request 

notification by writing to the 

Commission’s Secretary. 

ADDRESSES: The Commission: Secretary, 

U.S. Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

FOR FURTHER INFORMATION CONTACT: Brad 

Gude, Senior Counsel, at (202) 551– 

5590 or Chief Counsel’s Office at (202) 

551–6821; SEC, Division of Investment 

Management, Chief Counsel’s Office, 

100 F Street NE, Washington, DC 

20549–8010. 

Korea Equity Fund, Inc. [File No. 811– 

08002] 

Summary: Applicant, a closed-end 

investment company, seeks an order 

declaring that it has ceased to be an 

investment company. On June 29, 2017 

and August 7, 2017, applicant made 

liquidating distributions to its 

shareholders, based on net asset value. 

Expenses of $147,554 incurred in 

connection with the liquidation were 

paid by the applicant. 

Filing Dates: The application was 

filed on November 28, 2017. 

Applicant’s Address: Worldwide 

Plaza, 309 West 49th Street, New York, 

New York, 10019. 

Center Coast Core MLP Fund II, LLC 

[File No. 811–22566] 

Summary: Applicant, a closed-end 

investment company, seeks an order 

declaring that it has ceased to be an 

investment company. Applicant has 

never made a public offering of its 

securities and does not propose to make 

a public offering or engage in business 

of any kind. 

Filing Dates: The application was 

filed on November 7, 2017, and 

amended on November 30, 2017. 

Applicant’s Address: 1600 Smith 

Street, Suite 3800, Houston, Texas, 

77002. 

Brookfield MLP & Energy Infrastructure 

Income Fund Inc. [File No. 811–22945] 

Summary: Applicant, a closed-end 

investment company, seeks an order 

declaring that it has ceased to be an 

investment company. Applicant has 

never made a public offering of its 

securities and does not propose to make 

a public offering or engage in business 

of any kind. 

Filing Dates: The application was 

filed on October 30, 2017, and amended 

on December 1, 2017. 

Applicant’s Address: Brookfield 

Place, 250 Vesey Street, New York, New 

York, 10281. 

The Finance Company of Pennsylvania 

[File No. 811–01144] 

Summary: Applicant, an open-end 

investment company, seeks an order 

declaring that it has ceased to be an 

investment company. On August 11, 

2017, applicant made liquidating 

distributions to its shareholders, based 

on net asset value. Expenses of $382,968 

incurred in connection with the 

liquidation were paid by the applicant. 

Filing Dates: The application was 

filed on September 20, 2017, and 

amended on December 1, 2017. 

Applicant’s Address: 400 Market 

Street, Suite 425, Philadelphia, 

Pennsylvania 19106. 

CCA Investments Trust [File No. 811– 

22753] 

Summary: Applicant, an open-end 

investment company, seeks an order 

declaring that it has ceased to be an 

investment company. The applicant has 

transferred its assets to CCA Aggressive 

Return Fund, a series of the MSS Series 

Trust, and, on October 16, 2017, made 

a final distribution to its shareholders 

based on net asset value. Expenses of 


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