1646 Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Notices 

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

2 17 CFR 240.19b–4. 

3See GEMX Schedule of Fees, Section III.C 

Regulatory Fees. 

4See Securities Exchange Act Release No. 71149 

(December 19, 2013), 78 FR 78447 (December 26, 

2013) (SR-Topaz-2013–16). 

5 In particular, the Exchange renamed Section IV, 

deleted Section IV.C, and added Sections IV.F–IV.I 

as part of a previous rule change to amend GEMX’s 

connectivity fees. See Securities Exchange Release 

No. 81902 (October 19, 2017), 82 FR 49453 (October 

25, 2017) (SR–GEMX–2017–48). 

6 15 U.S.C. 78f(b). 

7 15 U.S.C. 78f(b)(4) and (5). 

For the Commission, by the Division of 

Investment Management, under delegated 

authority. 

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–00431 Filed 1–11–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82460; File No. SR–GEMX– 

2017–62] 

Self-Regulatory Organizations; Nasdaq 

GEMX, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to Market 

Makers’ Regulatory Fees 

January 8, 2018. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on December 

26, 2017, Nasdaq GEMX, LLC (‘‘GEMX’’ 

or ‘‘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 

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 proposes to amend the 

Exchange’s Schedule of Fees, as 

described further below. 

While these amendments are effective 

upon filing, the Exchange has 

designated the proposed amendments to 

be operative on January 2, 2018. 

The text of the proposed rule change 

is available on the Exchange’s website at 

http://nasdaqgemx.cchwallstreet.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 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to amend the Exchange’s 

Schedule of Fees to (i) eliminate the 

annual regulatory fee currently assessed 

to Market Makers (i.e., Primary Market 

Makers and Competitive Market Makers) 

at Section III.C and (ii) make a number 

of non-substantive clean-up changes to 

update the Table of Contents. Each 

change is discussed further below. 

Eliminate Annual Regulatory Fee 

GEMX currently charges its members 

various non-transaction fees to trade on 

the Exchange and use its facilities, 

including a tiered annual regulatory fee. 

This fee is assessed to all Primary 

Market Makers (‘‘PMMs’’) and 

Competitive Market Makers (‘‘CMMs’’) 

to help defray the regulatory and 

administrative costs associated with a 

member’s use of the Exchange’s 

facilities. In particular, the regulatory 

fee is $1,000 per year for a PMM 

membership, and, for PMMs that are 

also CMMs, $250 per year for each CMM 

membership. For CMMs that are not 

also PMMs the regulatory fee is $500 per 

year for the first CMM membership, and 

$250 per year for each additional CMM 

membership.3 The Exchange does not 

charge a regulatory fee to Electronic 

Access Members (‘‘EAMs’’). 

The Exchange proposes to eliminate 

the annual regulatory fee and all related 

references from the Schedule of Fees 

because it has determined that this fee 

is outdated and no longer reflects the 

costs associated with supporting and 

regulating its members today. The 

annual regulatory fee was adopted in 

2013, and has not been amended since 

that time.4 And because GEMX charges 

its members various non-transaction 

fees outside of the annual regulatory fee 

to help defray such costs, as noted 

above, the Exchange believes that the 

proposed fee change will be a more 

accurate reflection of the administration 

and regulatory costs associated with a 

member’s use of the Exchange today. 

Update Table of Contents 

Currently, the Exchange’s Schedule of 

Fees contains a number of section 

headings that are not currently reflected 

in the Table of Contents. The Exchange 

added, eliminated, or renamed these 

headings as part of a previouslyapproved rule change, and inadvertently 

did not make the corresponding updates 

to the Table of Contents.5 Accordingly, 

the Exchange proposes to update the 

Table of Contents to make its Schedule 

of Fees easier to read. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,6 in general, and furthers the 

objectives of Sections 6(b)(4) and 6(b)(5) 

of the Act,7 in particular, in that it 

provides for the equitable allocation of 

reasonable dues, fees, and other charges 

among members and issuers and other 

persons using any facility, and is not 

designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers. 

Eliminate Annual Regulatory Fee 

The Exchange believes that the 

proposed elimination of the annual 

regulatory fee and all related references 

from the Schedule of Fees is reasonable 

because the Exchange has determined 

that the annual regulatory fee is 

outdated and no longer reflects the costs 

associated with supporting and 

regulating its members. This fee has not 

been amended since its adoption in 

2013. Furthermore, GEMX charges its 

members various non-transaction fees 

outside of the annual regulatory fee to 

help defray such costs, as noted above. 

The Exchange therefore believes that the 

proposed fee change will be a more 

accurate reflection of the administration 

and regulatory costs associated with a 

member’s use of the Exchange today. 

The Exchange also believes that the 

proposed elimination of the annual 

regulatory fee is equitable and not 

unfairly discriminatory because the 

proposed change will apply equally to 

all similarly situated members. 

Update Table of Contents 

The Exchange believes that the cleanup changes to update the Table of 

Contents is reasonable, equitable and 

not unfairly discriminatory because 

these are non-substantive changes 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Notices 1647 

8 15 U.S.C. 78s(b)(3)(A)(ii). 9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

intended to make the Schedule of Fees 

more transparent to members and 

investors. 

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. As discussed 

above, the proposed changes are 

intended to more accurately reflect the 

regulatory and administrative costs 

associated with a member’s use of the 

Exchange, or are clean-ups to make the 

Schedule of Fees more transparent to 

members and investors. The Exchange 

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. 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. 

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.8 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– 

GEMX–2017–62 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–GEMX–2017–62. 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–GEMX–2017–62 and 

should be submitted on or before 

February 2, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–00411 Filed 1–11–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82462; File No. SR– 

CboeEDGX–2017–010] 

Self-Regulatory Organizations; Cboe 

EDGX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Adopt Fees 

for Certain Market Data Products on 

the Exchange’s Equity Options 

Platform 

January 8, 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 EDGX Exchange, Inc. 

(the ‘‘Exchange’’ or ‘‘EDGX’’) 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 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 applicable to its equity options 

platform (‘‘EDGX Options’’) to adopt 

fees for certain of its market data 

products, which are currently offered 

free of charge. The Exchange also 

proposes to amend the names of these 

market data products in Exchange Rule 

21.15(b). 

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 

the most significant parts of such 

statements. 


sradovich on DSK3GMQ082PROD with NOTICES