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
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3Exchange Rule 21.15(b)(1). 

4Exchange Rule 21.20. See also Securities 

Exchange Act Release No. 81891 (October 17, 2017), 

82 FR 49058 (October 23, 2017) (order approving 

the Exchange’s proposal to adopt a complex order 

book) (SR–BatsEDGX–2017–29). 

5Exchange Rule 21.20.(a)(6). A ‘‘Complex Order’’ 

is any order involving the concurrent purchase and/ 

or sale of two or more different options in the same 

underlying security (the ‘‘legs’’ or ‘‘components’’ of 

the complex order), for the same account, in a ratio 

that is equal to or greater than one-to-three (.333) 

and less than or equal to three-to-one (3.00) and for 

the purposes of executing a particular investment 

strategy. Exchange Rule 21.20(a)(5). 

6Exchange Rule 21.20(a)(10). See also Exchange 

Rule 16.1(a)(9) (defining the EDGX Options Book). 

7Exchange Rule 21.15(b)(2). 

8Exchange Rule 21.15(b)(5). 

9A ‘‘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/options/ 

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. An 

‘‘External Distributor’’ is defined as ‘‘a Distributor 

that receives the Exchange Market Data product and 

then distributes that data to a third party or one or 

more Users outside the Distributor’s own entity.’’ 

Id.’’ 

10A ‘‘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/options/membership/fee_

schedule/edgx/. 

11A ‘‘Non-Professional User’’ is 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. 

12See 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). 

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 

applicable to 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 Exchange proposes to adopt fees 

for the following market data products: 

EDGX Options Depth (currently referred 

to as Multicast PITCH), EDGX Options 

Top (currently referred to Multicast 

Top), and EDGX Options Auction Feed. 

Each of these market data products are 

currently offered free of charge. The 

Exchange also proposes to amend Rule 

21.15(b) to revise the names of each of 

these market data products. 

Multicast Pitch, to be renamed as 

EDGX Options Depth, is a data feed that 

offers depth of book quotations and 

execution information based on options 

orders entered into the System.3 The 

Exchange offers separate EDGX Options 

Depth data feeds for the Exchange’s 

Simple Book and the Exchange’s 

Complex Order Book. The Exchange 

introduced Complex Order Book 

functionality on October 23, 2017.4 The 

Exchange’s Complex Book is the EDGX 

Options electronic book of Complex 

Orders.5 The Exchange’s Simple Book is 

its regular electronic book of orders.6

Multicast TOP, to be renamed as 

EDGX Options Top, is a data feed that 

offers top of book quotations and 

execution information based on options 

orders entered into the System.7 Like 

the EDGX Options Depth feed, the 

Exchange offers separate EDGX Options 

Top data feeds for the Exchange’s 

Simple Book and the Exchange’s 

Complex Order Book. 

Finally, the Auction Feed, to be 

renamed the EDGX Options Auctions 

Feed, is a data feed that provides 

information regarding the current status 

of price and size information related to 

auctions conducted by the Exchange.8

Like EDGX Options Depth and EDGX 

Options Top, the Exchange offers 

separate EDGX Options Auction data 

feeds for the Exchange’s Simple Book 

and the Exchange’s Complex Order 

Book. 

The Exchange now proposes to amend 

its fee schedule to incorporate fees for 

distribution of each of the above market 

data products to subscribers. The 

proposed fees include the following, 

each of which are described in detail 

below: (i) Distribution Fees for both 

Internal and External Distributors; 9 and 

(ii) Usage Fees for both Professional 10

and Non-Professional 11 Users. The 

Exchange is proposing identical 

Distribution and Users fees for each 

market data product described above. 

Also, Distributors and Users of any one 

of the market data products subject to 

this proposal may receive access to any 

or all of the other market data products 

at no additional charge. 

Distribution Fees. As proposed, each 

Internal Distributor and External 

Distributor that receives either the 

simple or complex versions of EDGX 

Options Depth, EDGX Options Top, 

and/or the EDGX Options Auction Feed 

shall pay a fee of $500 per month. 

User Fees. The Exchange proposes to 

charge Internal Distributors and 

External Distributors that redistribute 

either the simple or complex versions of 

EDGX Options Depth, EDGX Options 

Top, and/or the EDGX Options Auction 

Feed different fees for their Professional 

Users and Non-Professional Users. The 

Exchange will assess a monthly fee for 

Professional Users of $10.00 per User. 

Non-Professional Users will be assessed 

a monthly fee of $1.00 per User. 

Distributors that receive either the 

simple or complex versions of EDGX 

Options Depth, EDGX Options Top, 

and/or the EDGX Options Auction Feed 

will be required to count every 

Professional User and Non-Professional 

User to which they provide the market 

data product(s), the requirements for 

which are identical to that currently in 

place for other market data products 

offered by the Exchange’s equity trading 

platform.12 Thus, the 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. Distributors must 

report all Professional and NonProfessional Users in accordance with 

the following: 

• In connection with a Distributor’s 

distribution of the market data product, 

the Distributor should count as one User 

each unique User that the Distributor 

has entitled to have access to the market 

data product. However, where a device 

is dedicated specifically to a single 

individual, the Distributor should count 

only the individual and need not count 

the device. 

• The Distributor should identify and 

report each unique User. If a User uses 

the same unique method to gain access 

to the market data product, the 

Distributor should count that as one 

User. However, if a unique User uses 

multiple methods to gain access to the 

market data product (e.g., a single User 

has multiple passwords and user 

identifications), the Distributor should 

report all of those methods as an 

individual User. 

• Distributors should 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 a Distributor entitles one or more 

individuals to use the same device, the 

Distributor should include only the 

individuals, and not the device, in the 

count. 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Notices 1649 

13 15 U.S.C. 78f. 

14 15 U.S.C. 78f(b)(4). 

15 15 U.S.C. 78k–1. 

16 17 CFR 242.603. 

17See a description of TOPO Plus Orders 

available at http://www.nasdaqtrader.com/ 

Micro.aspx?id=topoplusorders. See also Section IV 

of PHLX Rules outlining the fees for the TOPO Plus 

Orders feed. 

18See Section IV of PHLX Rules outlining the fees 

for the Top of PHLX Options feed. 

19See Section IV of PHLX Rules outlining the fees 

for the PHLX Depth Data feed. 

20See 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). See also, e.g., 

Securities Exchange Act Release No. 20002, File No. 

S7–433 (July 22, 1983) (establishing 

Continued 

The Exchange intends to implement 

the proposed 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,13

in general, and furthers the objectives of 

Section 6(b)(4),14 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 and that the proposed fees are 

competitive with those charged by other 

venues and, therefore, reasonable and 

equitably allocated to recipients. 

The Exchange also believes that the 

proposed rule change is consistent with 

Section 11(A) of the Act 15 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,16 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 will be subject 

to the proposed fees on an equivalent 

basis. EDGX Options Depth, EDGX 

Options Top, and the EDGX Options 

Auction Feed are distributed and 

purchased on a voluntary basis, in that 

neither the Exchange nor market data 

distributors are required by any rule or 

regulation 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 EDGX Options Depth, 

EDGX Options Top, and the EDGX 

Options Auction Feed further ensures 

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. If another 

exchange (or its affiliate) were to charge 

less to distribute its similar product 

than the Exchange charges to distribute 

EDGX Options Depth, EDGX Options 

Top, and the EDGX Options Auction 

Feed, prospective Users likely would 

not subscribe to, or would cease 

subscribing to, EDGX Options Depth, 

EDGX Options Top, and the EDGX 

Options Auction Feed. 

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. 

Distribution Fee. The Exchange 

believes that the proposed Distribution 

Fees are also reasonable, equitably 

allocated, and not unreasonably 

discriminatory. The fees for Members 

and non-Members are uniform except 

with respect to reasonable distinctions 

with respect to internal and external 

distribution, the fee for both are equal 

for each of the market data products 

subject to this proposal. The Exchange 

believes that the Distribution Fees for 

EDGX Options Depth, EDGX Options 

Top, and the EDGX Options Auction 

Feed are reasonable and fair in light of 

alternatives offered by other market 

centers. For example, EDGX Options 

Depth, EDGX Options Top, and the 

EDGX Options Auction Feed provides 

investors with alternative market data 

and competes with similar market data 

product currently offered by Nasdaq 

PHLX LLC (‘‘PHLX’’). Specifically, 

PHLX charges a fee of $5,000 per month 

to External Distributors and $4,000 per 

month to Internal Distributors for the 

TOPO Plus Orders feed,17 which 

included PHLX’s complex order book. 

PHLX also charges Internal Distributors 

$2,000 per month and External 

Distributors $2,500 per month for the 

Top of PHLX Options, which includes 

PHLX top of book data.18 PHLX charges 

Internal Distributors $4,000 per month 

and External Distributors $4,500 per 

month for the PHLX Depth Data, which 

includes PHLX depth of book 

quotations.19 Each of these fees charged 

by PHLX are higher than that proposed 

herein. 

User Fees. The Exchange believes that 

implementing the Professional and NonProfessional User fees for EDGX Options 

Depth, EDGX Options Top, and the 

EDGX Options Auction Feed are 

equitable and reasonable because they 

will result in greater availability to 

Professional and Non-Professional 

Users. Moreover, introducing a modest 

Non-Professional User fee for EDGX 

Options Depth, EDGX Options Top, and 

the EDGX Options Auction Feed is 

reasonable because it provides an 

additional method for retail investors to 

access EDGX Options Depth, EDGX 

Options Top, and the EDGX Options 

Auction Feed 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 recipient firms 

and Users. The fee structure of 

differentiated Professional and NonProfessional 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.20 Offering EDGX 


sradovich on DSK3GMQ082PROD with NOTICES
1650 Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Notices 

nonprofessional fees for CTA data); and Nasdaq 

Rules 7023(b), 7047. 

21See 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). 

22See Section IV of PHLX Rules outlining the fees 

for each of these PHLX market data products. 

23 15 U.S.C. 78s(b)(3)(A). 

24 17 CFR 240.19b–4(f). 

Options Depth, EDGX Options Top, and 

the EDGX Options Auction Feed to NonProfessional Users with the same data 

available to Professional Users results in 

greater equity among data recipients. 

The requirement that Distributors count 

every Professional User and NonProfessional User to which they provide 

the market data product(s) is also 

equitable and reasonable because the 

requirements are identical to that 

currently in place for other market data 

products offered by the Exchange’s 

equity trading platform.21

In addition, the proposed fees are 

reasonable when compared to similar 

fees for comparable products offered by 

PHLX. Specifically, PHLX charges a fee 

of $40 per month to professional users 

and $1.00 per month to nonprofessional users of TOPO Plus Orders 

feed, Top of PHLX Options, and PHLX 

Depth Data.22 Each of these fees charged 

by PHLX are either equal to or higher 

than that proposed herein. 

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 EDGX 

Options Depth, EDGX Options Top, and 

the EDGX Options Auction 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 real-time consolidated data 

and market-specific 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. 

In addition, EDGX Options Depth, 

EDGX Options Top, and the EDGX 

Options Auction Feed compete with a 

number of alternative products. For 

instance, EDGX Options Depth, EDGX 

Options Top, and the EDGX Options 

Auction Feed do not provide a complete 

picture of all trading activity in a 

security. Rather, the other national 

securities exchanges, the several TRFs 

of FINRA, and Electronic 

Communication Networks (‘‘ECN’’) that 

produce proprietary data all produce 

trades and trade reports. Each is 

currently permitted to produce last sale 

information products, and many 

currently do, including Nasdaq and 

NYSE. In addition, market participants 

can gain access to EDGX Options last 

sale and depth-of-book quotations, 

though integrated with the prices of 

other markets, on feeds made available 

through the SIPs. 

In sum, the availability of a variety of 

alternative sources of information 

imposes significant competitive 

pressures on Exchange data products 

and the Exchange’s compelling need to 

attract order flow imposes significant 

competitive pressure on the Exchange to 

act equitably, fairly, and reasonably in 

setting the proposed data product fees. 

The proposed data product fees are, in 

part, responses to that pressure. The 

Exchange believes that the proposed 

fees would reflect an equitable 

allocation of its overall costs to users of 

its facilities. 

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 

EDGX Options Depth, EDGX Options 

Top, and the EDGX Options Auction 

Feed, including existing similar feeds by 

other exchanges, consolidated data, and 

proprietary data from other sources, 

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. 

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 23 and paragraph (f) of Rule 

19b–4 thereunder.24 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– 

CboeEDGX–2017–010 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 CboeEDGX–2017–010. 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 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Notices 1651 

25 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 82112 

(November 17, 2017), 82 FR 55895 (‘‘Notice’’). 

4For a more detailed description of the proposed 

rule change, see Notice, supra note 3. 

5See BOX Rule 7600(f). 

6See BOX Rule 7600(f)(2). Pursuant to BOX Rule 

7600(f)(2), the Exchange is required to communicate 

any changes to the eligible order size to Participants 

via circular. 

7See proposed BOX Rule 7600(f)(2). 

8 In approving this proposed rule change, the 

Commission notes that it has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

9 15 U.S.C. 78f(b)(5). 

10See BOX Rule 100(a)(10) (defining BOX Book). 

11See BOX Rule 7600(c). 

12See Cboe Options Rule 6.74(d) and NYSE Arca 

Inc. Rule 6.47–O(b)(1). 

13 15 U.S.C. 78f(b)(5). 

14 15 U.S.C. 78s(b)(2). 

15 17 CFR 200.30–3(a)(12). 

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 CboeEDGX–2017–010 and 

should be submitted on or before 

February 2, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.25

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–00413 Filed 1–11–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82456; File No. SR–BOX– 

2017–33] 

Self-Regulatory Organizations; BOX 

Options Exchange LLC; Order 

Approving a Proposed Rule Change To 

Amend the Minimum Order Size for the 

Floor Broker Guarantee Provided in 

BOX Rule 7600(f) 

January 8, 2018. 

I. Introduction 

On November 6, 2017, BOX Options 

Exchange LLC (the ‘‘Exchange’’ or 

‘‘BOX’’) filed with the Securities and 

Exchange Commission (‘‘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 amend the 

minimum eligible order size from 500 

contracts to 50 contracts to qualify for 

the Floor Broker guarantee described in 

BOX Rule 7600(f). The proposed rule 

change was published for comment in 

the Federal Register on November 24, 

2017.3 The Commission received no 

comments on the proposed rule change. 

This order approves the proposed rule 

change. 

II. Description of the Proposed Rule 

Change 4

Currently, BOX Rule 7600(f) provides 

that a Floor Broker holding an order of 

the eligible order size or greater is 

entitled to cross, after all equal or better 

priced Public Customer bids or offers on 

the BOX Book and any non-Public 

Customer bids or offers that are ranked 

ahead of such Public Customer bids or 

offers are filled, 40% of the remaining 

contracts in the order with other orders 

he is holding.5 Under the current rule, 

the Exchange may determine, on an 

option by option basis, the eligible order 

size for an order that may be transacted 

pursuant to BOX Rule 7600(f), but the 

minimum eligible order size may not be 

less than 500 contracts.6 Under the 

proposed rule change, the Exchange 

proposes to reduce the minimum 

eligible order size from 500 contracts to 

50 contracts.7

III. Discussion and Commission 

Findings 

After careful review, the Commission 

finds that the proposed rule change is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 

securities exchange.8 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,9 which requires, 

among other things, that the Exchange’s 

rules be designed to prevent fraudulent 

and manipulative acts and practices, to 

promote just and equitable principles of 

trade, to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. 

The Commission notes that the 

proposed rule change does not modify 

the size of the Floor Broker guarantee, 

but rather modifies the size of the order 

necessary in order to receive the 

guarantee. Orders submitted by Floor 

Brokers for execution must execute at a 

price equal to or better than the NBBO 

and (1) may not trade through any equal 

or better priced Public Customer bids or 

offers on the BOX Book 10 or any nonPublic Customer bids or offers on the 

BOX Book that are ranked ahead of such 

equal or better priced Public Customer 

bids or offers, and (2) may not trade 

through any non-Public Customer bids 

or offers on the BOX Book that are 

priced better than the proposed 

execution price.11 In addition, the 

Commission notes that the proposed 

change is similar to the rules of other 

options exchanges 12 and therefore, the 

Commission does not believe that the 

reduction in the minimum order size 

requirement raises any new regulatory 

issues. 

For the foregoing reasons, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act 13 and the rules and 

regulations thereunder applicable to a 

national securities exchange. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,14 that the 

proposed rule change (SR–BOX–2017– 

33), be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–00407 Filed 1–11–18; 8:45 am] 

BILLING CODE 8011–01–P 

SOCIAL SECURITY ADMINISTRATION 

[Docket No: SSA–2017–0069] 

Agency Information Collection 

Activities: Proposed Request and 

Comment Request 

The Social Security Administration 

(SSA) publishes a list of information 

collection packages requiring clearance 

by the Office of Management and 

Budget (OMB) in compliance with 

Public Law 104–13, the Paperwork 

Reduction Act of 1995, effective October 

1, 1995. This notice includes revisions 

of OMB-approved information 

collections. 

SSA is soliciting comments on the 

accuracy of the agency’s burden 

estimate; the need for the information; 

its practical utility; ways to enhance its 

quality, utility, and clarity; and ways to 

minimize burden on respondents, 

including the use of automated 


sradovich on DSK3GMQ082PROD with NOTICES