50714 Federal Register / Vol. 82, No. 210 / Wednesday, November 1, 2017 / Notices 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(3). 10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

operative documents accurately reflect 

the new legal names, the proposed rule 

change would reduce potential investor 

or market participant confusion. 

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 that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed rule change is not intended to 

address competitive issues but rather is 

concerned solely with updating the 

Company’s and Exchange’s governance 

and operative documents to reflect the 

abovementioned name changes. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither solicited nor 

received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Pursuant to Section 19(b)(3)(A) of the 

Act 8 and Rule 19b–4(f)(3) thereunder,9

the Exchange has designated this 

proposal as one that is concerned solely 

with the administration of the selfregulatory organization, and therefore 

has become effective. 

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 will institute proceedings 

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– 

BatsBZX–2017–70 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–BatsBZX–2017–70. 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. 

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–BatsBZX–2017–70 and 

should be submitted on or before 

November 22, 2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–23738 Filed 10–31–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81953; File No. SR–BX– 

2017–044] 

Self-Regulatory Organizations; 

NASDAQ BX, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change to Remove References To 

Surrender Feature for Auto-Match 

Submissions in the Price Improvement 

Auction 

October 26, 2017. 

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 October 

16, 2017, NASDAQ BX, Inc. (‘‘BX’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘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 modify BX 

rules at Chapter VI, Section 9, entitled 

‘‘Price Improvement Auction 

(‘‘PRISM’’)’’ to correct an error. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://nasdaqbx.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. 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 82, No. 210 / Wednesday, November 1, 2017 / Notices 50715 

3See Securities Exchange Act Release No. 76301 

(October 29, 2015), 80 FR 68347 (November 4, 2015) 

(SR–BX–2015–032). 

4BX only conducts auctions for Simple Orders. 

Only one Auction may be conducted at a time in 

any given series. Once commenced, an Auction may 

not be cancelled. 

5This is accomplished by marking the Initiating 

Order with a market (MKT) price. 

6Surrender is not applied if both the Initiating 

Order and PRISM Order are Public Customer 

Orders. 

7See note 3 above. 

8See Chapter VI, Section 9(ii)(E)(2)(a) and Section 

9(ii)(F)(2)(a). 

9See Chapter VI, Section 9(ii)(E)(2)(b), which 

states, ‘‘If the Initiating Participant selected the 

auto-match option of the PRISM Auction the 

Initiating Participant shall be allocated an equal 

number of contracts as the aggregate size of all other 

quotes, orders and PAN responses at each price 

point until a price point is reached where the 

balance of the order can be fully executed, except 

that the Initiating Participant shall be entitled to 

receive up to 40% (multiple competing quotes, 

orders or PAN responses) or 50% (one competing 

quote, order or PAN response) of the contracts 

remaining at the final price point (including 

situations where the stop price is the final price) 

after Public Customer interest has been satisfied but 

before remaining interest. If there are other quotes, 

orders and PAN responses at the final price point 

the contracts will be allocated to such interest 

pursuant to Chapter VI, Section 9(ii)(E)(3) through 

(5) below. Any remaining contracts shall be 

allocated to the Initiating Participant.’’ There is no 

reference to the Surrender provision in this 

paragraph similar to reference at Chapter VI, 

Section 9(ii)(E)(2)(a). 

10See Chapter VI, Section 9(ii)(F)(2)(b), which 

states, ‘‘If the Initiating Participant selected the 

auto-match option of the PRISM Auction the 

Initiating Participant shall be allocated an equal 

number of contracts as the aggregate size of all other 

quotes, orders and PAN responses at each price 

point until a price point is reached where the 

balance of the order can be fully executed, except 

that the Initiating Participant shall be entitled to 

receive up to 40% (multiple competing quotes, 

orders or PAN responses) or 50% (one competing 

quote, order or PAN response) of the contracts 

remaining at the final price point (including 

situations where the stop price is the final price), 

after Public Customer interest has been satisfied but 

before remaining interest. If there are other quotes, 

orders and PAN responses at the final price point 

the contracts will be allocated to such interest 

pursuant to Chapter VI, Section 9(ii)(F)(3) through 

(4) below. Any remaining contracts shall be 

allocated to the Initiating Participant.’’ There is no 

reference to the Surrender provision in this 

paragraph similar to reference at Chapter VI, 

Section 9(ii)(F)(2)(a). 

11 15 U.S.C. 78f(b). 

12 15 U.S.C. 78f(b)(5). 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange filed a proposed rule 

change to establish a price improvement 

mechanism.3 By way of background, 

this price improvement mechanism or 

‘‘PRISM’’ includes auto-match 

functionality in which a Participant (an 

‘‘Initiating Participant’’) may 

electronically submit for execution an 

order it represents as agent on behalf of 

a Public Customer, Professional 

customer, broker dealer, or any other 

entity (‘‘PRISM Order’’) against 

principal interest or against any other 

order it represents as agent (an 

‘‘Initiating Order’’) provided it submits 

the PRISM Order for electronic 

execution into the PRISM Auction 

(‘‘Auction’’) pursuant to the proposed 

Rule.4 To initiate the Auction, the 

Initiating Participant must mark the 

PRISM Order for Auction processing, 

and specify either: (a) A single price at 

which it seeks to execute the PRISM 

Order (a ‘‘stop price’’); (b) that it is 

willing to automatically match as 

principal or as agent on behalf of an 

Initiating Order the price and size of all 

PRISM Auction Notifications (‘‘PAN’’) 

responses, and trading interest (‘‘automatch’’) in which case the PRISM Order 

will be stopped at the NBBO on the 

Initiating Order side; 5 or (c) that it is 

willing to either: (i) Stop the entire 

order at a single stop price and automatch PAN responses and trading 

interest at a price or prices that improve 

the stop price to a specified price (a ‘‘No 

Worse Than’’ or ‘‘NWT’’ price); (ii) stop 

the entire order at a single stop price 

and auto-match all PAN responses and 

trading interest at or better than the stop 

price; or (iii) stop the entire order at the 

NBBO on the Initiating Order side, and 

auto-match PAN responses and trading 

interest at a price or prices that improve 

the stop price up to the NWT price. In 

all cases, if the BX BBO on the same 

side of the market as the PRISM Order 

represents a limit order on the book, the 

stop price must be at least the Minimum 

Increment better than the booked limit 

order’s limit price. 

When starting an Auction, the 

Initiating Participant may submit the 

Initiating Order with a designation of 

‘‘surrender’’ to other PRISM Participants 

(‘‘Surrender’’), which will result in the 

Initiating Participant forfeiting priority 

and trade allocation privileges. If 

Surrender is specified the Initiating 

Order will only trade if there is not 

enough interest available to fully 

execute the PRISM Order at prices 

which are equal to or improve upon the 

stop price.6 At the time the Exchange 

filed to permit Surrender within the BX 

PRISM auction,7 the rule text at Chapter 

VI, Section 9(ii)(A)(1) provided that, 

‘‘When starting an Auction, the 

Initiating Participant may submit the 

Initiating Order with a designation of 

‘‘surrender’’ to the other PRISM 

Participants (‘‘Surrender’’) which will 

result in the Initiating Participant 

forfeiting the priority and trade 

allocation privileges which he is 

otherwise entitled to as per Section 

9(ii)(E)(2)(a) and (b) and Section 

9(ii)(F)(2)(a) and (b).’’ Section 

9(ii)(E)(2)(b) and Section 9(ii)(F)(2)(b) 

refer to the auto-match functionality. 

The Exchange has not offered Surrender 

with respect to auto-match. The 

Exchange does not believe that automatch is suitable for Surrender. By 

definition the purpose of the auto-match 

feature is that the Initiating Participant 

is going to match all responses and seek 

a greater allocation. This language is at 

odds with the Surrender feature where 

the Initiating Participant is not seeking 

allocation. Depending on the option 

selected, the Initiating Participant may 

elect in the single stop option selection 

to give up the allocation priority, if 

Surrender is selected,8 or with the automatch option the Initiating Participant 

will only be allocated the remainder in 

accordance with the allocation 

percentages in Section 9(ii)(E)(2)(b).9

This similarly applies to Section 

9(ii)(F)(2)(b).10

The Exchange inadvertently included 

the references to Section 9(ii)(E)(2)(b) 

and Section 9(ii)(F)(2)(b) when 

discussing Surrender. Surrender only 

applies to the single stop price feature. 

The Exchange proposes to amend its 

rule text to update its rules to delete 

these references to make the rule text 

accurate. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,11 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,12

in particular, in that it is designed 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, by 

updating references in the PRISM rule 

which indicate Surrender applies to the 

auto-match feature. The Exchange 

inadvertently referenced the auto-match 

feature. The Surrender feature only 

applies to the single stop price feature. 

The Exchange does not believe that 

auto-match is suitable for Surrender. By 

definition the purpose of the auto-match 

feature is that the Initiating Participant 

is going to match all responses and seek 

a greater allocation. This language is at 

odds with the Surrender feature where 

the Initiating Participant is not seeking 

allocation. The Exchange believes that 

correcting the rule text to remove the 

references to auto-match will perfect the 

mechanism of a free and open market 

and a national market system, and, in 


sradovich on DSK3GMQ082PROD with NOTICES
50716 Federal Register / Vol. 82, No. 210 / Wednesday, November 1, 2017 / Notices 

13 15 U.S.C. 78s(b)(3)(A)(iii). 

14 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

the proposed rule change at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 

15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

general to protect investors and the 

public interest, by updating these 

references to the BX PRISM rule. This 

amendment will correct the references 

within the BX PRISM rule to make clear 

the manner in which the auction 

operates. 

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 inadvertently referenced the 

auto-match feature as applicable to 

Surrender provision. No BX Participant 

is able today to utilize the Surrender 

feature when selecting auto-match. This 

amendment will correct the references 

within the BX PRISM rule to make clear 

the manner in which the auction 

operates. 

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 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A)(iii) of the Act 13 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.14

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– 

BX–2017–044 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–BX–2017–044. 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. 

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–BX–2017–044 and should 

be submitted on or before November 22, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–23734 Filed 10–31–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81957; File No. SR– 

BatsEDGA–2017–28] 

Self-Regulatory Organizations; Bats 

EDGA Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Reflect in 

the Exchange’s Governing Documents, 

Rulebook and Fee Schedule, a NonSubstantive Corporate Branding 

Change, Including Changes to the 

Company’s Name, the Intermediate’s 

Name, and the Exchange’s Name 

October 26, 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 October 

16, 2017, Bats EDGA Exchange, Inc. (the 

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

Securities and Exchange Commission 

(‘‘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 a rule change 

with respect to amendments of the 

Second Amended and Restated 

Certificate of Incorporation (the 

‘‘Company’s Certificate’’) and Third 

Amended and Restated Bylaws (the 

‘‘Company’s Bylaws’’) of its parent 

corporation, CBOE Holdings, Inc. 

(‘‘CBOE Holdings’’ or the ‘‘Company’’) 

to change the name of the Company to 

Cboe Global Markets, Inc. With respect 

to CBOE V, LLC, an intermediate 

Holding Company of the Exchange (the 

‘‘Intermediate’’), the Exchange proposes 

to amend the Certificate of Formation 

and Limited Liability Company 

Operating Agreement of CBOE V, LLC 

(the ‘‘Operating Agreement’’), in 

connection with a related name change 

for the Intermediate. The Exchange also 

proposes to amend its Second Amended 


sradovich on DSK3GMQ082PROD with NOTICES