Document ID: SEC-2018-0368-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Cboe BZX Exchange, Inc.
Posted Date: 2018-03-02T05:00Z

[Federal Register Volume 83, Number 42 (Friday, March 2, 2018)]
[Notices]
[Pages 9047-9049]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-04212]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82776; File No. SR-CboeBZX-2018-013]

Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To 
Introduce a New Data Feed on the Exchange's Equity Options Platform

February 26, 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 February 20, 2018, Cboe BZX Exchange, Inc. (``Exchange'' or ``BZX'') 
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 Exchange has designated this 
proposal as a ``non-controversial'' proposed rule change pursuant to 
Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6)(iii) 
thereunder,\4\ which renders it effective upon filing with the 
Commission. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6)(iii).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange filed a proposal to introduce a new data feed on its 
equity options platform (``BZX Options'') to be known as BZX Options 
Top.
    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.

(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to introduce a new data feed on BZX Options 
to be known as BZX Options Top. The Exchange also proposes to amend 
Exchange Rule 21.15(b) to add a description of the BZX Options Top feed 
and to change the name of the Multicast PITCH feed to BZX Options 
Depth.
    A description of each market data product offered by the Exchange 
is described in Exchange Rule 21.15(b). The Exchange proposes to amend 
Rule 21.15(b) to introduce and add a description of the BZX Options Top 
feed to Exchange under subparagraph (2).\5\ The BZX Options Top feed 
would be described as ``a data feed that offers top of book quotations 
and execution information based on options orders entered into the 
System.'' \6\ The

[[Page 9048]]

Exchange notes that its affiliate, Cboe EDGX Exchange, Inc. (``EDGX'') 
offers an identical data feed for its equity options platform (``EDGX 
Options''), known as EDGX Options Top. The description of the BZX 
Options Top feed under Exchange Rule 21.15(b)(2) is substantially 
similar to the description of the EDGX Options Top feed under EDGX Rule 
21.15(b)(2).\7\
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    \5\ The Exchange also proposes to renumber current subparagraph 
(2) as (3) and current subparagraph (3) as (4).
    \6\ Exchange Rule 21.15(b)(2).
    \7\ Unlike BZX, EDGX offers separate EDGX Options Top data feeds 
for the EDGX's Simple Book and Complex Order Book. See EDGX Rule 
21.15(b)(2).
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    The Exchange also propose to rename Multicast Pitch as BZX Options 
Depth and amend its rules and fee schedule accordingly. BZX Options 
Depth is a data feed that offers depth of book quotations and execution 
information based on options orders entered into the System.\8\
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    \8\ Exchange Rule 21.15(b)(1).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\9\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act,\10\ in particular, in that it 
is 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 to protect investors and the public 
interest, and that it is not designed to permit unfair discrimination 
among customers, brokers, or dealers. This proposal is in keeping with 
those principles in that it promotes increased transparency through the 
dissemination of BZX Options Top. The proposed rule change would 
benefit investors by facilitating their prompt access to real-time top-
of-book information contained in BZX Options Top. The Exchange notes 
that its affiliate, EDGX, offers an identical data feed for EDGX 
Options, known as EDGX Options Top. The description of the BZX Options 
Top feed under Exchange Rule 21.15(b)(2) is substantially similar to 
the description of the EDGX Options Top feed under EDGX Rule 
21.15(b)(2).\11\
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    \9\ 15 U.S.C. 78f.
    \10\ 15 U.S.C. 78f(b)(5).
    \11\ Unlike BZX, EDGX offers separate EDGX Options Top data 
feeds for the EDGX's Simple Book and Complex Order Book. See EDGX 
Rule 21.15(b)(2).
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(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. The Exchange 
believes that the proposal will promote competition by the Exchange 
offering a service similar to that offered by Nasdaq.\12\ Thus, the 
Exchange believes this proposed rule change is necessary to permit fair 
competition among national securities exchanges. Therefore, the 
Exchange does not believe 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.
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    \12\ BONO stands for Best of Nasdaq Options (``BONO\SM\'') is a 
data feed that provides The Nasdaq Options Market (``NOM'') Best Bid 
and Offer and last sale information for trades executed on NOM. See 
Nasdaq Sec. 4(d), NASDAQ Options Market Data Distributor Fees 
available at http://www.nasdaqtrader.com/Micro.aspx?id=optionsPricing.
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(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

    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\
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    \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)(iii) 
requires the Exchange to give the Commission written notice of the 
Exchange's intent to file the proposed rule change, along with a 
brief description and text of 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.
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    A proposed rule change filed under Rule 19b-4(f)(6) \15\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, Rule 19b-4(f)(6)(iii) \16\ permits the Commission to 
designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay so that the proposal 
may become operative immediately upon filing. The Exchange states that 
waiving the operative delay will enable the Exchange to implement the 
proposed rule change on March 9, 2018, the anticipated date upon which 
the Exchange hopes to offer BZX Options Top.\17\ The Exchange further 
notes that its affiliate, EDGX, offers a substantially similar data 
feed as discussed earlier in this proposed rule change. Based on the 
foregoing, the Commission believes that waiver of the 30-day operative 
delay is consistent with the protection of investors and the public 
interest. Therefore, the Commission hereby waives the operative delay 
and designates the proposed rule change as operative upon filing.\18\
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    \15\ 17 CFR 240.19b-4(f)(6).
    \16\ 17 CFR 240.19b-4(f)(6)(iii).
    \17\ See Cboe BZX and EDGX Options Exchanges to Introduce 
Multicast Top Feed, available at http://cdn.batstrading.com/resources/release_notes/2018/Cboe-BZX-and-EDGX-Options-Exchanges-to-Introduce-Multicast-Top-Feed.pdf.
    \18\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    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 [email protected]. Please include 
File Number SR-CboeBZX-2018-013 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-CboeBZX-2018-013. 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

[[Page 9049]]

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-CboeBZX-2018-013 and should be submitted 
on or before March 23, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-04212 Filed 3-1-18; 8:45 am]
BILLING CODE 8011-01-P