Federal Register / Vol. 82, No. 179 / Monday, September 18, 2017 / Notices 43627 

43 17 CFR 200.30–3(a)(57). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4 15 U.S.C. 78s(b)(1). 

5 17 CRF 240.19b–4. 

6Non-displayed priority refers to an order or 

portion of a reserve order that is booked and ranked 

with non-display priority on the Order Book. See 

Rules 11.190(b)(3) and 11.190(b)(2). 

7This pricing is referred to by the Exchange as 

the ‘‘Non-Displayed Match Fee’’ on the Fee 

Schedule with a Fee Code of ‘I’ which is provided 

by the Exchange on execution reports. 

8See Rule 11.190(b)(3). 

comments they may wish to submit 

about the proposed rule change. 

Specifically, the Commission seeks 

comment on the statements of the 

Exchange contained in the Notice, the 

issues raised by the commenters, and 

any other issues raised by the proposed 

rule change. In addition, the 

Commission seeks comment on whether 

the trading of the Shares would be 

consistent with the maintenance of fair 

and orderly markets. In this regard, the 

Commission specifically seeks comment 

regarding market makers’ ability to 

make markets in the Shares and the 

sufficiency of the proposed VIIV as 

pricing information to market 

participants. Further, the Commission 

solicits comments on whether the 

selective disclosure of portfolio 

holdings to a Trusted Agent, as well as 

the non-transparent structure of the 

Funds, could result in any information 

asymmetry that would be inconsistent 

with the Act or other federal securities 

laws or rules and regulations 

thereunder. 

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– 

BatsBZX–2017–30 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–BatsBZX–2017–30. 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 Web site (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 Web site 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; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR– 

BatsBZX–2017–30 and should be 

submitted on or before October 10, 

2017. Rebuttal comments should be 

submitted by October 23, 2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.43

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–19808 Filed 9–15–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81602; File No. SR–IEX– 

2017–29] 

Self-Regulatory Organizations; 

Investors Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Related to Fees 

Pursuant to Rule 15.110 

September 13, 2017. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on August 

30, 2017, the Investors Exchange LLC 

(‘‘IEX’’ or the ‘‘Exchange’’) 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 self-regulatory organization. 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 

Pursuant to the provisions of Section 

19(b)(1) under the Securities Exchange 

Act of 1934 (‘‘Act’’),4 and Rule 19b–4 

thereunder,5 Investors Exchange LLC 

(‘‘IEX’’ or ‘‘Exchange’’) is filing with the 

Commission a proposed rule change to 

make a correction to the Exchange Fee 

Schedule related to fees for executions 

that involve taking resting interest with 

non-displayed priority with a 

displayable order. The Exchange 

proposes to implement the change 

beginning on September 1, 2017. The 

text of the proposed rule change is 

available at the Exchange’s Web site at 

www.iextrading.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 

self-regulatory organization 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 self-regulatory organization 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend its 

Fee Schedule, pursuant to IEX Rule 

15.110 (a) and (c), to make a correction 

related to the fees for executions that 

involve taking non-displayed resting 

interest with a displayable order. 

Subject to certain exceptions, the 

Exchange charges $0.0009 per share (or 

0.30% of the total dollar value of the 

transaction for securities priced below 

$1.00) to Members for executions on IEX 

that include resting non-displayed 

interest 6 for both the liquidity 

providing and liquidity removing order 

(the ‘‘Non-Displayed Match Fee’’).7 One 

such exception relates to certain 

displayable orders that remove nondisplayed liquidity upon entry. The 

Exchange Fee Schedule provides that 

the Non-Displayed Match Fee is not 

charged for displayable orders 8 that 

remove non-displayed liquidity upon 

entry if, on a monthly basis, at least 

90% of the liquidity removing MPID’s 

aggregate executed shares of displayable 

orders added liquidity during the month 


sradovich on DSKBBY8HB2PROD with NOTICES
43628 Federal Register / Vol. 82, No. 179 / Monday, September 18, 2017 / Notices 

9However, in such transactions, the nondisplayed liquidity adding interest will be subject 

to the Non-Displayed Match Fee. The Exchange also 

does not charge a fee where the adding and 

removing order originated from the same Exchange 

Member. 

10See Securities and Exchange Act Release No. 

81346 (August 8, 2017), 82 FR 37973 (August 14, 

2017). 

11See Securities Exchange Act Release No. 78550 

(August 11, 2016), 81 FR 54873 (August 17, 2016). 

12See the Investors Exchange Fee Schedule, Fee 

Code ‘L’, Taking Displayed Liquidity. 

13A Max Floor of zero is an instruction not to 

display any portion of an order. 

14See IEX Rule 11.190(c)(1). 

15See IEX Rule 11.190(c)(2). 

16 15 U.S.C. 78f. 17 15 U.S.C. 78f(b)(4). 

in question (the ‘‘90% display 

discount’’).9

On August 7, 2017, the Exchange filed 

an immediately effective rule change to 

reflect that the calculation used to 

determine if a Member’s MPID(s) qualify 

for the 90% display discount is done on 

a per MPID basis (rather than a per 

Member basis, as originally reflected in 

the Fee Schedule).10 The Exchange 

recently identified several typographical 

errors in the parenthetical in the single 

asterisked footnote related to the NonDisplayed Match Fee that describes the 

calculation of the 90% display discount. 

While the single asterisked footnote 

appurtenant to the Non-Displayed 

Match Fee is itself correct regarding the 

conditions of the 90% display discount, 

the parenthetical contains several 

typographical errors (as described 

below) and thus does not accurately 

reflect the exact calculation of such fee. 

Further, the rule change filing adopting 

the IEX Fee Schedule accurately 

described the application of the 90% 

display discount.11

Specifically, the parenthetical, which 

was intended to describe the 

mechanical calculation of the 90% 

display discount, contains several 

typographical errors. It currently states 

that the 90% display discount is 

applicable if a Member’s execution 

reports reflect that the sum of 

executions with Fee Code L and a Last 

Liquidity Indicator (FIX tag 851) of ’1’ 

(Added Liquidity) (i.e., collectively, the 

numerator), divided by the sum of 

executions with Fee Code L (i.e., the 

denominator), is at least 90% for the 

calendar month. As currently written, 

the calculation as described in the 

parenthetical would include an MPID’s 

non-displayable orders that take 

displayed liquidity in the denominator, 

because such orders would receive Fee 

Code ‘‘L’’ on their execution reports, 

which satisfies the conditions for 

inclusion in the denominator.12 Thus, 

the current parenthetical describing the 

90% display discount is not reflective of 

the Exchange’s Fee Schedule, in that it 

is too broad in its description of the 

denominator of the 90% display 

discount. 

Accordingly, the Exchange proposes 

to correct the parenthetical in the single 

asterisked footnote appurtenant to the 

Non-Displayed Match Fee in the IEX 

Fee Schedule to correctly describe the 

mechanical calculation of the 90% 

display discount as follows (proposed 

new language is underlined; proposed 

deletions are in brackets): 

• * $0.0009 (0.30% of TDVT for 

<$1.00), otherwise FREE if Taking NonDisplayed Liquidity with a Displayable 

Order and at least 90% of TMVD, on a 

per MPID basis, was identified by IEX 

as Providing Displayed Liquidity (i.e., 

the [Member’s] MPID’s execution 

reports reflect that the sum of 

executions with Fee Code L and a Last 

Liquidity Indicator (FIX tag 851) of ‘1’ 

(Added Liquidity) on orders with 

neither a Max Floor (FIX tag 111) equal 

to zero, nor a time-in-force (FIX tag 59) 

of ‘3’ (IOC) or ‘4’ (FOK), divided by the 

sum of all executions on orders with 

neither a Max Floor (FIX tag 111) equal 

to zero, nor a time-in-force (FIX tag 59) 

of ‘3’ (IOC) or ‘4’ (FOK) [with Fee Code 

L], is at least 90% for the calendar 

month). 

As modified, the parenthetical would 

make clear that all of an MPID’s 

executions that receive Fee Code L and 

a Last Liquidity Indicator of ‘1’ (which 

together indicate that an order added 

displayed liquidity) on all of an MPID’s 

displayable orders (which necessarily 

includes all orders that have neither a 

Max Floor value of zero,13 nor a timein-force of immediate-or-cancel 14 or fillor-kill time 15) contribute to the 

numerator of the 90% display discount. 

Further, the denominator would be 

equal to the sum of all executions of an 

MPID’s displayable orders (i.e., all 

orders that have neither a Max Floor 

value of zero, nor a time-in-force of 

immediate-or-cancel or fill-or-kill time), 

regardless of the Fee Code and Last 

Liquidity Indicator. To provide 

additional clarity, the Exchange also 

proposes to revise the language 

describing the numerator to align such 

description with the proposed 

description of the denominator. 

2. Statutory Basis 

IEX believes that the proposed rule 

change is consistent with the provisions 

of Section 6(b) 16 of the Act in general, 

and furthers the objectives of Sections 

6(b)(4) 17 of the Act, in particular, in that 

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. In addition, the Exchange 

believes that it is consistent with the 

Act to correct the Fee Schedule so that 

the Fee Schedule is accurate, avoiding 

any potential confusion among 

Members. The Exchange further believes 

that the correction to the Fee Schedule 

is reasonable, equitable, and not 

unfairly discriminatory because all 

similar situated Members will continue 

to be subject to the same fee structure. 

Moreover, the Exchange believes it is 

consistent with the Act to clarify the 

calculation used to determine the 90% 

display discount, so that the Exchange’s 

Fee Schedule remains transparent and 

consistent with the expectations of its 

Members. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

IEX 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. The 

proposed rule change is designed to 

correct an inadvertent error rather than 

a competitive issue. The Exchange does 

not believe the proposed rule change 

will result in a burden on intramarket 

competition because all Members will 

continue to be subject to the NonDisplayed Match Fee and will be 

eligible for the 90% display discount in 

the same manner on a fair and 

consistent basis. While different fees 

will be assessed in some circumstances, 

these different fees are not based on the 

type of Member entering the order and 

all Members can submit any type of 

order. Lastly, the Exchange operates in 

a highly competitive environment in 

which market participants can readily 

favor competing venues if fee schedules 

at other venues are viewed as more 

favorable. 

The Exchange also does not believe 

that the proposed rule change will result 

in any burden on intermarket 

competition because other venues are 

free to adopt comparable pricing. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 


sradovich on DSKBBY8HB2PROD with NOTICES
Federal Register / Vol. 82, No. 179 / Monday, September 18, 2017 / Notices 43629 

18 15 U.S.C. 78s(b)(3)(A)(ii). 

19 15 U.S.C. 78s(b)(2)(B). 

20 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

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) 18 of the Act. 

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. If the 

Commission takes such action, the 

Commission shall institute proceedings 

under Section 19(b)(2)(B) 19 of the Act to 

determine whether the proposed rule 

change 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– 

IEX–2017–29 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–IEX–2017–29. 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 Web site (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 Web site 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; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–IEX– 

2017–29, and should be submitted on or 

before October 10, 2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.20

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–19811 Filed 9–15–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81586; File No. SR–CBOE– 

2017–059] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Relating to the On-Floor 

Lead Market-Maker Program 

September 12, 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 August 

31, 2017, Chicago Board Options 

Exchange, Incorporated (the ‘‘Exchange’’ 

or ‘‘CBOE’’) filed with the Securities 

and Exchange Commission (the 

‘‘Commission’’) the proposed rule 

change as described in Items I and II 

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 

On-Floor Lead Market-Maker (‘‘LMM’’) 

program. The text of the proposed rule 

change is provided below. 

(additions are italicized; deletions are 

[bracketed]) 

* * * * * 

Chicago Board Options Exchange, 

Incorporated 

Rules 

* * * * * 

Rule 8.15. Lead Market-Makers 

(a) No change. 

(b) LMM Obligations: Each LMM must 

fulfill all the obligations of a MarketMaker under the Rules and satisfy each 

of the following requirements: 

(i) Provide continuous electronic 

quotes (as defined in Rule 1.1 (ccc)) in 

at least the lesser of 99% of the nonadjusted option series or 100% of the 

non-adjusted option series minus one 

call-put pair, with the term ‘‘call-put 

pair’’ referring to one call and one put 

that cover the same underlying 

instrument and have the same 

expiration date and exercise price. This 

obligation does not apply to intra-day 

add-on series on the day during which 

such series are added for trading. 

Compliance with this quoting obligation 

applies to all of an LMM’s appointed 

classes on each platform collectively. 

The Exchange will determine 

compliance by an LMM with this 

quoting obligation on a monthly basis. 

However, determining compliance with 

this obligation on a monthly basis does 

not relieve an LMM from meeting this 

obligation on a daily basis, nor does it 

prohibit the Exchange from taking 

disciplinary action against an LMM for 

failing to meet this obligation each 

trading day. In option classes in which 

both an On-Floor LMM and an Off-Floor 

DPM or Off-Floor LMM have been 

appointed, the On-Floor LMM will not 

be obligated to comply with this 

paragraph (b)(i) and instead will be 

obligated to comply with the obligations 

of Market-Makers in Rule 8.7(d). In an 

option class in which the Exchange 

appointed an On-Floor LMM that has 

open-outcry obligations only, that OnFloor LMM will not be obligated to 

comply with this paragraph (b)(i) and 

instead will be obligated to comply with 

the obligations of Market-Makers in Rule 

8.7(d) and have a designee in the class’s 

crowd on the trading floor for the entire 

trading day (except for a de minimis 

amount of time); 

(ii)–(iv) No change. 

(v) enter opening quotes within one 

minute of the initiation of an opening 

rotation in any series that is not open 

due to the lack of a quote (see Rule 

6.2B(d)(i)(A) or (ii)(A)) and participate 

in other rotations described in Rule 6.2B 

(including the modified opening 

rotation set forth in Interpretation and 

Policy .01) or 24.13, as applicable. In 

option classes in which both an OnFloor LMM and an Off-Floor DPM or 


sradovich on DSKBBY8HB2PROD with NOTICES