2254 Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Notices 

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

12 17 CFR 200.30–3(a)(12). 

1Rule 13h–1(a)(1) defines ‘‘large trader’’ as any 

person that directly or indirectly, including through 

other persons controlled by such person, exercises 

investment discretion over one or more accounts 

and effects transactions for the purchase or sale of 

any NMS security for or on behalf of such accounts, 

by or through one or more registered broker-dealers, 

in an aggregate amount equal to or greater than the 

at or below the prices that competing 

exchanges charge for their data feeds. 

The Exchange notes that although fees 

for external distribution of data feeds 

are typically higher than internal 

distribution fees, the Exchange proposes 

to charge the same price for both 

internal and external distribution of the 

ISE Trade Feed as a means of 

incentivizing external distribution. 

The Exchange also notes that it 

proposes to price its Trade Feed higher 

than that of the Nasdaq GEMX product. 

The Exchange believes that this price 

differential is reasonable given the fact 

that the Exchange has more listings, 

strike volume, and market makers than 

does Nasdaq GEMX, such that the 

Exchange’s Trade Feed product has 

greater potential value to customers 

than does the Nasdaq GEMX product. 

The Exchange believes that the 

proposal is an equitable allocation and 

is not unfairly discriminatory because 

the Exchange will apply the same fee to 

all, regardless of membership. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. In terms of 

inter-market competition, the Exchange 

notes that it operates in a highly 

competitive market in which market 

participants can readily favor competing 

venues if they deem fee levels at a 

particular venue to be excessive, or 

rebate opportunities available at other 

venues to be more favorable. In such an 

environment, the Exchange must 

continually adjust its fees to remain 

competitive with other exchanges. 

Because competitors are free to modify 

their own fees in response, and because 

market participants may readily adjust 

their order routing practices, the 

Exchange believes that the degree to 

which fee changes in this market may 

impose any burden on competition is 

extremely limited. 

In this instance, the proposed 

establishment of the Nasdaq ISE Trade 

Feed fee does not impose an undue 

burden on competition because a 

subscription to the Nasdaq ISE Trade 

Feed is completely voluntary and 

subject to extensive competition from 

other exchanges. In sum, if the change 

proposed herein is unattractive to 

market participants, it is likely that the 

Exchange will lose market share as a 

result. Accordingly, the Exchange does 

not believe that the proposed change 

will impair the ability of members or 

competing order execution venues to 

maintain their competitive standing in 

the financial markets. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act.11 At any time 

within 60 days of the filing of the 

proposed rule change, the Commission 

summarily may temporarily suspend 

such rule change if it appears to the 

Commission that such action is: (i) 

Necessary or appropriate in the public 

interest; (ii) for the protection of 

investors; or (iii) otherwise in 

furtherance of the purposes of the Act. 

If the Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

ISE–2017–113 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–ISE–2017–113. 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–ISE–2017–113 and should 

be submitted on or before February 6, 

2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–00522 Filed 1–12–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–614, OMB Control No. 

3235–0682] 

Proposed Collection; Comment 

Request 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE, Washington, DC 

20549–2736 

Extension: 

Rule 13h–1 and Form 13H 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et seq.) (‘‘PRA’’), the 

Securities and Exchange Commission 

(‘‘Commission’’) is soliciting comments 

on the existing collection of information 

provided for Rule 13h–1 (17 CFR 

240.13h–1) and Form 13H—registration 

of large traders 1 submitted pursuant to 


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Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Notices 2255 

identifying activity level or voluntarily registers as 

a large trader by filing electronically with the 

Commission Form 13H. 

2See Securities Exchange Act Release No. 64976 

(July 27, 2011), 76 FR 46959 (August 3, 2011). 

3The Commission, pursuant to Rule 17a–25 (17 

CFR 240.17a–25), currently collects transaction data 

from registered broker-dealers through the 

Electronic Blue Sheets (‘‘EBS’’) system to support 

its regulatory and enforcement activities. The large 

trader framework added two new fields, the time of 

the trade and the identity of the trader, to the EBS 

system. 4See 5 U.S.C. 552 and 15 U.S.C. 78m(h)(7). 

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). 

Section 13(h) of the Securities Exchange 

Act of 1934 (15 U.S.C. 78a et seq.) 

(‘‘Exchange Act’’). The Commission 

plans to submit this existing collection 

of information to the Office of 

Management and Budget for extension 

and approval. 

Rule 13h–1 and Form 13H under 

Section 13(h) of the Exchange Act 

established a large trader reporting 

framework.2 The framework assists the 

Commission in identifying and 

obtaining certain baseline information 

about traders that conduct a substantial 

amount of trading activity, as measured 

by volume or market value, in the U.S. 

securities markets. 

The identification, recordkeeping, and 

reporting framework provides the 

Commission with a mechanism to 

identify large traders and obtain 

additional information on their trading 

activity. Specifically, the system 

requires large traders to identify 

themselves to the Commission and 

make certain disclosures to the 

Commission on Form 13H. Upon receipt 

of Form 13H, the Commission issues a 

unique identification number to the 

large trader, which the large trader then 

provides to its registered broker-dealers. 

Certain registered broker-dealers are 

required to maintain transaction records 

for each large trader, and are required to 

report that information to the 

Commission upon request.3 In addition, 

certain registered broker-dealers are 

required to adopt procedures to monitor 

their customers for activity that would 

trigger the identification requirements of 

the rule. 

The respondents to the collection of 

information are large traders. There are 

currently approximately 6,300 large 

traders and 300 registered brokerdealers. Based on its experience 

collecting initial Forms 13H in previous 

years, the Commission estimates that 

approximately 600 new large traders 

will register each year and thus be 

subject to quarterly and annual 

reporting requirements over the next 

three years. 

Each new large trader respondent files 

one response, which takes 

approximately 20 hours to complete. 

The average internal cost of compliance 

per response is $5,615, calculated as 

follows: (3 hours of compliance manager 

time at $307 per hour) + (7 hours of 

legal time at $362 per hour) + (10 hours 

of paralegal time at $212 per hour) = 

$5,615. Additionally, on average, each 

large trader respondent (including new 

respondents) files 2 responses per year, 

which take approximately 6 hours to 

complete. The average internal cost of 

compliance per response is $1,770, 

calculated as follows: (2 hours of 

compliance manager time at $307 per 

hour) + (2 hours of legal time at $362 

per hour) + (2 hours of paralegal time at 

$212 per hour) = $1,770. 

Each registered broker-dealer’s 

monitoring requirement takes 

approximately 15 hours per year. The 

average internal cost of compliance is 

$5,430, calculated as follows: 15 hours 

of legal time at $362 per hour = $5,430. 

The Commission estimates that it may 

send 100 requests specifically seeking 

large trader data per year to each 

registered broker-dealer subject to the 

rule, and it would take each registered 

broker-dealer 2 hours to comply with 

each request. Accordingly, the annual 

reporting hour burden for a brokerdealer is estimated to be 200 burden 

hours (100 requests × 2 burden hours/ 

request = 200 burden hours). The 

average internal cost of compliance per 

response is $432, calculated as follows: 

2 hours of paralegal time at $212 per 

hour = $432. 

Compliance with Rule 13h–1 is 

mandatory. The information collection 

under proposed Rule 13h–1 is 

considered confidential subject to the 

limited exceptions provided by the 

Freedom of Information Act.4

Written comments are invited on: (a) 

Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

Commission, including whether the 

information shall have practical utility; 

(b) the accuracy of the Commission’s 

estimates of the burden of the proposed 

collection of information; (c) ways to 

enhance the quality, utility, and clarity 

of the information collected; and (d) 

ways to minimize the burden of the 

collection of information on 

respondents, including through the use 

of automated collection techniques or 

other forms of information technology. 

Consideration will be given to 

comments and suggestions submitted in 

writing within 60 days of this 

publication. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

under the PRA unless it displays a 

currently valid OMB control number. 

Please direct your written comments 

to: Pamela C. Dyson, Director/Chief 

Information Officer, Securities and 

Exchange Commission, c/o Remi PavlikSimon, 100 F Street NE, Washington, 

DC 20549, or send an email to: PRA_

Mailbox@sec.gov. 

Dated: January 9, 2018. 

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–00492 Filed 1–12–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82468; File No. SR– 

CboeEDGA–2017–003] 

Self-Regulatory Organizations; Cboe 

EDGA Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change Related to Fees 

for the EDGA Depth Market Data 

Product 

January 9, 2018. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that on December 

27, 2017, Cboe EDGA Exchange, Inc. 

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

the Securities and Exchange 

Commission (the ‘‘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 introduce new fees for NonDisplay Usage of EDGA Depth. 

The text of the proposed rule change 

is available at the Exchange’s website at 

www.markets.cboe.com, at the principal 


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