2244 Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Notices 

1The fifteen options markets are as follows: The 

fifteen options markets are as follows: BOX Options 

Exchange LLC, Cboe BZX Exchange, Inc., Cboe C2 

Exchange, Inc., Cboe EDGX Exchange, Inc., Cboe 

Exchange, Inc., Miami International Securities 

Exchange LLC, MIAX PEARL, LLC, Nasdaq BX, 

Inc., Nasdaq GEMX, LLC, Nasdaq ISE, LLC, Nasdaq 

MRX, LLC, Nasdaq PHLX LLC, the Nasdaq Options 

Market (NOM), NYSE Arca, Inc., and NYSE 

American LLC. 

2SIFMA did its last annual survey in 2013 and 

will not resume the survey process. Accordingly, 

the $412 figure is based on the 2013 figure ($380) 

adjusted by the inflation rate calculated using the 

Bureau of Labor Statistics’ CPI Inflation Calculator. 

The $380 per hour figure for an Attorney is from 

SIFMA’s Management & Professional Earnings in 

the Securities Industry 2013, modified by 

Commission staff to account for an 1800-hour workyear and multiplied by 5.35 to account for bonuses, 

firm size, employee benefits and overhead. 

3The estimate of 1,144 broker-dealers required to 

comply with Rule 9b–1 is derived from Item 12 of 

the Form BD (OMB Control No. 3235–0012). This 

estimate may be high as it includes broker-dealers 

that engage in only a proprietary business, and as 

a result are not required to deliver an ODD, as well 

as those broker-dealers subject to Rule 9b–1. 

4The $62 figure is based on the 2013 figure ($57) 

adjusted for inflation. See supra note 1. The $57 per 

hour figure for a General Clerk is from SIFMA’s 

Office Salaries in the Securities Industry 2013, 

modified by Commission staff to account for an 

1800-hour work-year and multiplied by 2.93 to 

account for bonuses, firm size, employee benefits 

and overhead. The staff believes that the ODD 

would be mailed or electronically delivered to 

customers by a general clerk of the broker-dealer or 

some other equivalent position. 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

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

registered broker or dealer that has been admitted 

to membership in the Exchange.’’ See Exchange 

Rule 1.5(n). 

Securities and Exchange Commission 

(‘‘Commission’’) is soliciting comments 

on the existing collection of information 

provided for in Rule 9b–1, Options 

Disclosure Document (17 CFR 240.9b– 

1), under the Securities Exchange Act of 

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

Commission plans to submit this 

existing collection of information to the 

Office of Management and Budget 

(‘‘OMB’’) for extension and approval. 

Rule 9b–1 (17 CFR 240.9b–1) sets 

forth the categories of information 

required to be disclosed in an options 

disclosure document (‘‘ODD’’) and 

requires the options markets to file an 

ODD with the Commission 60 days prior 

to the date it is distributed to investors. 

In addition, Rule 9b–1 provides that the 

ODD must be amended if the 

information in the document becomes 

materially inaccurate or incomplete and 

that amendments must be filed with the 

Commission 30 days prior to the 

distribution to customers. Finally, Rule 

9b–1 requires a broker-dealer to furnish 

to each customer an ODD and any 

amendments, prior to accepting an order 

to purchase or sell an option on behalf 

of that customer. 

There are 15 options markets 1 that 

must comply with Rule 9b–1. These 

respondents work together to prepare a 

single ODD covering options traded on 

each market, as well as amendments to 

the ODD. These respondents file 

approximately 3 amendments per year. 

The staff calculates that the preparation 

and filing of amendments should take 

no more than eight hours per options 

market. Thus, the total time burden for 

options markets per year is 360 hours 

(15 options markets x 8 hours per 

amendment × 3 amendments). The 

estimated cost for an in-house attorney 

is $412 per hour,2 resulting in a total 

internal cost of compliance for these 

respondents of $148,320 per year (360 

hours at $412 per hour). 

In addition, approximately 1,144 

broker-dealers 3 must comply with Rule 

9b–1. Each of these respondents will 

process an average of 3 new customers 

for options each week and, therefore, 

will have to furnish approximately 156 

ODDs per year. The postal mailing or 

electronic delivery of the ODD takes 

respondents no more than 30 seconds to 

complete for an annual time burden for 

each of these respondents of 78 minutes 

or 1.3 hours. Thus, the total time burden 

per year for broker-dealers is 1,487 

hours (1,144 broker-dealers × 1.3 hours). 

The estimated cost for a general clerk of 

a broker-dealer is $62 per hour,4

resulting in a total internal cost of 

compliance for these respondents of 

$92,194 per year (1,487 hours at $62 per 

hour). 

The total time burden for all 

respondents under this rule (both 

options markets and broker-dealers) is 

1,847 hours per year (360 + 1,487), and 

the total internal cost of compliance is 

$240,514 ($148,320 + $92,194). 

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 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. 2018–00489 Filed 1–12–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82477; File No. SR– 

CboeBYX–2017–005] 

Self-Regulatory Organizations; Cboe 

BYX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change Related to 

Transaction Fees 

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 BYX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BYX’’) 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 fee schedule applicable to 

Members 5 and non-Members of the 

Exchange pursuant to BYX Rules 15.1(a) 

and (c). 

The text of the proposed rule change 

is available at the Exchange’s website at 

www.markets.cboe.com, at the principal 

office of the Exchange, and at the 

Commission’s Public Reference Room. 


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Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Notices 2245 

6Fee code BB is appended to orders that remove 

liquidity from BYX (Tape B). See the Exchange’s fee 

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

equities/membership/fee_schedule/byx/. 

7Fee code N is appended to orders that remove 

liquidity from BYX (Tape C). Id. 

8Fee code W is appended to orders that remove 

liquidity from BYX (Tape A). Id. 

9Fee code B is appended to displayed orders that 

add liquidity to BYX (Tape B). Id. 

10Fee code V is appended to displayed orders 

that add liquidity to BYX (Tape A). Id. 

11Fee code Y is appended to displayed orders 

that add liquidity to BYX (Tape C). Id. 

12 ‘‘Step-Up Remove TCV’’ means remove ADV as 

a percentage of TCV in the relevant baseline month 

subtracted from current remove ADV as a 

percentage of TCV. See the Exchange’s fee schedule 

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

membership/fee_schedule/byx/. 

13 ‘‘ADAV’’ means average daily volume 

calculated as the number of shares added per day 

and ‘‘ADV’’ means average daily volume calculated 

as the number of shares added or removed, 

combined, per day. ADAV and ADV are calculated 

on a monthly basis. Id. 

14 ‘‘TCV’’ means total consolidated volume 

calculated as the volume reported by all exchanges 

and trade reporting facilities to a consolidated 

transaction reporting plan for the month for which 

the fees apply. Id. 

15 15 U.S.C. 78f. 

16 15 U.S.C. 78f(b)(4). 

17See the Nasdaq BX fee schedule available at 

http://www.nasdaqtrader.com/Trader.aspx?id=bx_

pricing. 

18 Id. 

19 Id. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

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

the most significant parts of such 

statements. 

(A) Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

As further described below, the 

Exchange proposes to amend its fee 

schedule to: (i) Modify its standard 

rebate to remove liquidity yielding fee 

codes BB,6 N,7 and W; 8 (ii) modify its 

standard fee to add liquidity yielding 

fee codes B,9 V 10 and Y; 11 and (iii) 

adopt a new tier under footnote 1, Add/ 

Remove Volume Tiers. 

Standard Rebates to Remove Liquidity 

The Exchange currently provides a 

standard rebate of $0.0008 per share for 

orders that remove liquidity from the 

Exchange in securities priced at or 

above $1.00. The Exchange appends fee 

codes W, BB and N for orders removing 

liquidity in Tape A, Tape B, and Tape 

C securities, respectively. The Exchange 

proposes to reduce the standard rebate 

provided for orders yielding these fee 

codes to a rebate of $0.0005 per share. 

In connection with this change, the 

Exchange proposes to modify the 

Standard Rates chart contained on the 

fee schedule to reflect the new standard 

rebate of $0.0005 per share to remove 

liquidity. 

Standard Fee To Add Liquidity 

The Exchange currently charges a 

standard fee of $0.0018 per share for 

orders that add liquidity to the 

Exchange in securities priced at or 

above $1.00. The Exchange appends fee 

codes V, B, and Y for orders adding 

liquidity in Tape A, Tape B, and Tape 

C securities, respectively. The Exchange 

proposes to increase the standard fee 

charged for orders yielding these fee 

codes to a fee of $0.0019 per share. In 

connection with this change, the 

Exchange proposes to modify the 

Standard Rates chart contained on the 

fee schedule to reflect the new standard 

fee of $0.0019 per share to add liquidity. 

New Remove Volume Tier 

The Exchange currently offers six [sic] 

tiers under footnote 1 that offer reduced 

fees for displayed orders that add 

liquidity yielding fee codes B, V and Y, 

and an enhanced rebate for orders that 

remove liquidity yielding fee codes BB, 

N and W, as described above. The 

Exchange proposes to add a new tier 

under footnote 1, to be known as Tier 

9, under which a Member would receive 

an enhanced rebate of $0.0017 per share 

on orders that yield fee codes BB, N and 

W, where a Member has: (i) A Step-Up 

Remove TCV12 from December 2017 

equal to or greater than 0.075%; and (ii) 

an ADAV 13 equal to or greater than 

0.10% of the TCV.14

Implementation Date 

The Exchange proposes to implement 

the above changes to its fee schedule 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,15

in general, and furthers the objectives of 

Section 6(b)(4),16 in particular, as it is 

designed to provide for the equitable 

allocation of reasonable dues, fees and 

other charges among its Members and 

other persons using its facilities. 

The Exchange believes that proposed 

changes to fee codes BB, N, and W 

represent an equitable allocation of 

reasonable dues, fees, and other charges 

because the Exchange’s standard rebate 

for removing liquidity continues to be 

higher than that provided by other 

exchanges. For example, Nasdaq BX, 

Inc. (‘‘Nasdaq BX’’) provides a standard 

rebate of $0.0001 per share for orders 

that remove liquidity.17 The Exchange 

further believes that the standard rebate 

for fee codes BB, N, and W remains 

equitably allocated and not 

unreasonably discriminatory because 

such rebate is provided to all Members 

unless they qualify for enhanced rebates 

based on other factors. 

The Exchange believes that proposed 

changes to fee codes B, V, and Y 

represent an equitable allocation of 

reasonable dues, fees, and other charges 

because the Exchange’s standard fee for 

adding liquidity continues to be lower 

than that provided by other exchanges. 

For example, Nasdaq BX charges a 

standard fee of $0.0020 per share for 

orders that remove liquidity.18 The 

Exchange further believes that the 

standard fee for fee codes B, V, and Y 

remains equitably allocated and not 

unreasonably discriminatory because 

such fee is provided to all Members 

unless they qualify for reduced fees 

based on other factors. 

The Exchange believes that the 

proposed Tier 9 to be added to footnote 

1 is equitably allocated and reasonable 

because it will reward a Member’s 

growth pattern on the Exchange and 

such increased volume will allow the 

Exchange to continue to provide and 

potentially expand its incentive 

programs. The Exchange further 

believes that the proposed tier is 

reasonable, fair and equitable because 

the liquidity from the proposed change 

would benefit all investors by 

deepening the Exchange’s liquidity 

pool, offering additional flexibility for 

all investors to enjoy cost savings, 

supporting the quality of price 

discovery, promoting market 

transparency and improving investor 

protection. The Exchange also believes 

the proposed rebate of $0.0017 per share 

for Tier 9 is reasonable in that it is 

equivalent to the top tier rebate to 

remove liquidity provided by Nasdaq 

BX.19 The proposed pricing structure is 

also not unfairly discriminatory in that 

it is available to all Members. 

In addition, volume-based fees such 

as that proposed herein have been 

widely adopted by exchanges and are 

equitable because they are open to all 

Members on an equal basis and provide 


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2246 Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Notices 

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

21 17 CFR 240.19b–4(f). 22 17 CFR 200.30–3(a)(12). 

additional benefits or discounts that are 

reasonably related to: (i) The value to an 

exchange’s market quality; (ii) 

associated higher levels of market 

activity, such as higher levels of 

liquidity provision and/or growth 

patterns; and (iii) the introduction of 

higher volumes of orders into the price 

and volume discovery processes. The 

Exchange believes that the proposed tier 

is a reasonable, fair and equitable, and 

not an unfairly discriminatory 

allocation of fees and rebates, because it 

will provide Members with an 

additional incentive to reach certain 

thresholds on the Exchange. 

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange does not believe that this 

change represents a significant 

departure from previous pricing offered 

by the Exchange or from pricing offered 

by the Exchange’s competitors. The 

proposed rates would apply uniformly 

to all Members, and Members may opt 

to disfavor the Exchange’s pricing if 

they believe that alternatives offer them 

better value. Accordingly, the Exchange 

does not believe that the proposed 

changes will impair the ability of 

Members or competing venues to 

maintain their competitive standing in 

the financial markets. Further, excessive 

fees would serve to impair an 

exchange’s ability to compete for order 

flow and members rather than 

burdening competition. The Exchange 

believes that its proposal would not 

burden intramarket competition because 

the proposed rate would apply 

uniformly to all Members. 

(C) Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any 

unsolicited written comments from 

Members or other interested parties. 

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: 

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–2017–005 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–CboeBYX–2017–005. 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–2017–005 and 

should be submitted on or before 

February 6, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.22

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–00534 Filed 1–12–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–638, OMB Control No. 

3235–0690] 

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: 

Form SF–3 

Notice is hereby given that, pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et seq.), the Securities 

and Exchange Commission 

(‘‘Commission’’) is soliciting comments 

on the collection of information 

summarized below. The Commission 

plans to submit this existing collection 

of information to the Office of 

Management and Budget for extension 

and approval. 

Form SF–3 (17 CFR 239.45) is a short 

form registration statement used for 

non-shelf issuers of asset-backed 

securities to register a public offering of 

their securities under the Securities Act 

of 1933 (15 U.S.C. 77a et seq.). Form 

SF–3 takes approximately 1,380 hours 

per response and is filed by 

approximately 71 issuers annually. The 

information collected is intended to 

ensure that the information required to 

be filed by the Commission permits 

verification of compliance with 

securities law requirements and assures 

the public availability of such 

information in the asset-backed 

securities market. We estimate that 25% 

of the 1,380 hours per response (345 

hours) is prepared by the issuer for a 

total annual reporting burden of 24,495 

hours (345 hours per response × 71 

responses). 

Written comments are invited on: (a) 

Whether this proposed collection of 

information is necessary for the proper 

performance of the functions of the 

agency, including whether the 

information will have practical utility; 


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