Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Updating the CBOE Fees Schedule Concerning LVCX Fees, 32739-32741 [2017-14888]
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Federal Register / Vol. 82, No. 135 / Monday, July 17, 2017 / Notices
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
PEARL–2017–31 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.
asabaliauskas on DSKBBXCHB2PROD with NOTICES
All submissions should refer to File
Number SR–PEARL–2017–31. 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 (https://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–
PEARL–2017–31, and should be
submitted on or before August 7, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Jill M. Peterson,
Assistant Secretary.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81118; File No. SR–CBOE–
2017–052]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Updating the CBOE Fees
Schedule Concerning LVCX Fees
July 11, 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 June 29,
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, II, and
III below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
Fees Schedule relating to Livevol Core
X (‘‘LVCX’’) fees.
The text of the proposed rule change
is available on the Exchange’s Web site
(https://www.cboe.com/AboutCBOE/
CBOELegalRegulatoryHome.aspx), at
the Exchange’s Office of the Secretary,
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.
[FR Doc. 2017–14889 Filed 7–14–17; 8:45 am]
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 its
Fees Schedule relating to Livevol Core
X (‘‘LVCX’’) fees. By way of background,
LVCX is a front-end order entry and
management tool for listed stocks and
options that supports both simple and
complex orders. Particularly, LVCX is a
web-based application integrated into
the application programming interface
of the user’s proprietary system. The
application provides users with the
capability to send option orders to U.S.
options exchanges and stock orders to
U.S. stock exchanges (and other trading
centers). Additionally, LVCX allows
users to input parameters to control the
size, timing and other variables of their
trades. Use of the application is
completely optional and LVCX users
may sublicense LVCX to their
customers.
The Exchange proposes a new tiered
fee schedule for LVCX. Specifically, the
Exchange proposes to eliminate the
current flat fees of $100/month (per Login ID) and implement a new tiered fee
schedule for the LVCX application fees.
The Exchange believes the proposed
change will encourage greater
application of the LVCX platform by
reducing the prices as users purchase
more Log-In IDs. The proposed LVXC
tiered pricing is below.
Livevol Core X (LVCX)
Application Fees by Number of
Login IDs:
0–0 ..........................................
11–30 ......................................
31–100 ....................................
101–200 ..................................
201–500 ..................................
501–1,000 ...............................
>1,000 .....................................
1 15
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
17:45 Jul 14, 2017
2 17
Jkt 241001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00064
Fmt 4703
3 15
4 15
Sfmt 4703
Fee per
login ID
per month
$100
75
50
40
30
20
15
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’) and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.3 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 4 requirements that the rules of
an exchange be designed to prevent
fraudulent and manipulative acts and
BILLING CODE 8011–01–P
12 17
32739
E:\FR\FM\17JYN1.SGM
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
17JYN1
32740
Federal Register / Vol. 82, No. 135 / Monday, July 17, 2017 / Notices
asabaliauskas on DSKBBXCHB2PROD with NOTICES
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
securities, 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.
Additionally, the Exchange believes the
proposed rule change is consistent with
Section 6(b)(4) of the Act,5 which
requires that Exchange rules provide for
the equitable allocation of reasonable
dues, fees, and other charges among its
Trading Permit Holders and other
persons using its facilities.
In particular, the Exchange believes
the tiered fee schedule is reasonable
because broker-dealer clients will see an
overall reduction of prices as they
increase their Log-In IDs. Additionally,
the proposed change continues to
provide for the recoupment of the costs
of developing, maintaining, supporting
and enhancing the application.
The Exchange believes the proposed
rule change is equitably [sic] and not
unfairly discriminatory because it
applies to all users of LVCX uniformly.
Additionally, the use of LVCX is
completely voluntary. The LVCX
application is available as a
convenience to market participants,
who will continue to have the option to
use any order entry and management
system available in the marketplace to
send orders to the Exchange and other
exchanges. The Exchange also believes
these fees are reasonable and
appropriate as they are competitive with
similar applications available
throughout the market.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule changes will impose
any burden on competition that are not
necessary or appropriate in furtherance
of the purposes of the Act. Particularly,
any market participant will be able to
access LVCX and its tiered platform
fees, which will apply uniformly to all
users. Additionally, the proposed tiered
fee schedule will offer heightened
incentives for all broker-dealer clients to
promote use of LVCX. The Exchange
notes that the LVCX application is
available to all market participants on
the same terms and conditions, and use
of the application is completely
voluntary. LVCX is merely an
alternative application to other similar
products already available in the market
5 15
U.S.C. 78f(b)(4).
VerDate Sep<11>2014
17:45 Jul 14, 2017
Jkt 241001
and market participants can develop
their own proprietary products with the
same functionality.
The Exchange notes that when
Congress charged the Commission with
supervising the development of a
‘‘national market system’’ for securities,
a premise of its action was that prices,
products and services ordinarily would
be determined by market forces.6
Consistent with this purpose, Congress
and the Commission have repeatedly
stated their preference for competition,
rather than regulatory intervention, to
determine prices, products and services
in the securities markets.7 Many
exchanges and other market participants
make technology products, including
products similar to the LVCX, available
to the industry. Other market
participants that offer these products
can adjust pricing or add functionality
to attract users to their products to
compete with the Exchange-offered
products based on all competitive forces
in the marketplace, as the Exchange
expects these other market participants
currently do. The Exchange believes
that other market participants that offer
these products will continue to remain
competitive in the market for orderentry, management and routing
products, as they currently are in this
market in which at least two exchanges
(including CBOE) offer similar
technology products. For example,
CBOE currently offers PULSe, and ISE
currently offers PrecISE. The Exchange
believes that many investors will
continue to elect to use competing
products available from non-exchange
technology providers.
6 See, e.g., H.R. Rep. No. 94–229, at 92 (1975)
(Conf. Rep.) (stating Congress’s intent that the
‘‘national market system evolve through the
interplay of competitive forces as unnecessary
regulatory restrictions are removed’’).
7 See S. Rep. No. 94–75, 94th Cong., 1st Sess. 8
(1975) (‘‘The objective [in enacting the 1975
amendments to the Exchange Act] would be to
enhance competition and to allow economic forces,
interacting within a fair regulatory field, to arrive
at appropriate variations in practices and
services.’’); Order Approving Proposed Rule Change
Relating to NYSE Arca Data, Securities Exchange
Act Release No. 59039 (December 2, 2008), 73 FR
74770 (Dec. 9, 2008) at 74781 (‘‘The Exchange Act
and its legislative history strongly support the
Commission’s reliance on competition, whenever
possible, in meeting its regulatory responsibilities
for overseeing the SROs and the national market
system. Indeed, competition among multiple
markets and market participants trading the same
products is the hallmark of the national market
system.’’) (SR–NYSEArca–2006–21); Regulation
NMS, 70 FR at 37499 (observing that NMS
regulation ‘‘has been remarkably successful in
promoting market competition in [the] forms that
are most important to investors and listed
companies’’).
PO 00000
Frm 00065
Fmt 4703
Sfmt 4703
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
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 8 and paragraph (f) of Rule
19b–4 9 thereunder. 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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
CBOE–2017–052 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–CBOE–2017–052. 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 (https://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
8 15
9 17
E:\FR\FM\17JYN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
17JYN1
Federal Register / Vol. 82, No. 135 / Monday, July 17, 2017 / Notices
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–CBOE–
2017–052 and should be submitted on
or before August 7, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2017–14888 Filed 7–14–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81116; File No. SR–Phlx–
2017–48]
Self-Regulatory Organizations;
NASDAQ PHLX LLC; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change Regarding
Quote Mitigation
asabaliauskas on DSKBBXCHB2PROD with NOTICES
July 11, 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 June 30,
2017, NASDAQ PHLX LLC (‘‘Phlx’’ 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.
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Sep<11>2014
17:45 Jul 14, 2017
Jkt 241001
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Phlx Rule 1082, regarding quote
mitigation.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://nasdaqphlx.cchwallstreet
.com/, at the principal office of the
Exchange, and at the Commission’s
Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
Phlx Rule 1082, entitled ‘‘Firm
Quotations,’’ to specifically remove Phlx
Rule 1082(a)(ii)(C)(4), which process is
not currently in effect on Phlx.
Today, Phlx Rule 1082(a)(ii)(C) sets
forth the conditions under which Phlx
disseminates updated quotations based
on changes in the Exchange’s
disseminated price and/or size. Phlx
disseminates an updated bid and offer
price, together with the size associated
with such bid and offer, when: (1)
Phlx’s disseminated bid or offer price
increases or decreases; (2) the size
associated with Phlx’s disseminated bid
or offer decreases; or (3) the size
associated with Phlx’s bid (offer)
increases by an amount greater than or
equal to a percentage (never to exceed
20%) 3 of the size associated with the
previously disseminated bid (offer); 4
3 Phlx has set its percentage to 10%. See https://
www.nasdaqtrader.com/content/phlxmemos/2007/
jan/0197-07.pdf.
4 Such percentage, which would never exceed
20%, would be determined on an issue-by-issue
basis by the Exchange and announced to
membership via Exchange circular. The percentage
size increase necessary to give rise to a refreshed
quote may vary from issue to issue, depending,
without limitation, on the liquidity, average
volume, and average number of quotations
submitted in the issue.
PO 00000
Frm 00066
Fmt 4703
Sfmt 4703
32741
and (4) automatic executions will
decrement the disseminated size by the
amount of the automatic execution.
The Exchange notes that it is
removing Phlx Rule 1082(a)(ii)(C)(4)
because this functionality is not
necessary today. By way of background,
the Exchange initially adopted the quote
mitigation rule text in Phlx Rule
1082(a)(ii)(C)(4) to enhance the ability of
Exchange Streaming Quote Traders
(‘‘SQTs’’),5 Remote Streaming Quote
Traders (‘‘RSQTs’’),6 non-SQT ROTs,7
and specialists 8 (collectively, ‘‘Phlx XL
participants’’) to better manage risk by
modifying the legacy Phlx XL system 9
such that when a trade occured [sic], the
Exchange caused the Phlx XL system to
decrement the quote size by the number
of contracts traded in the affected option
series on the side of the market that has
traded (i.e., bid size for sell transactions
and offer size for buy transactions). At
that time, the Exchange did not
decrement quotation size in real time,10
rather it updated quotes and executions
separately in two applications. The
Exchange would update the quote sent
to OPRA with each decrement. However
with a size increase the Exchange would
only update the quote sent to OPRA if
it was beyond the 10% threshold. At
this time, a Phlx XL participant, who
controlled his or her quotation size,
could refresh the size (and price) for
which he or she was firm at the
disseminated price. Phlx adopted the
rule because participants experienced
situations where they executed more
contracts at a particular price than they
intended due to the fact that Phlx XL
5 An SQT is an ROT who has received permission
from the Exchange to generate and submit option
quotations electronically in options to which such
SQT is assigned. An SQT may only submit such
quotations while such SQT is physically present on
the floor of the Exchange. An SQT may only trade
in a market making capacity in classes of options
in which the SQT is assigned. See Rule
1014(b)(ii)(A).
6 An RSQT is an ROT that is a member affiliated
with and RSQTO with no physical trading floor
presence who has received permission from the
Exchange to generate and submit option quotations
electronically in options to which such RSQT has
been assigned. A qualified RSQT may function as
a Remote Specialist upon Exchange approval. See
Rule 1014(b)(ii)(B).
7 A non-SQT ROT is an ROT who is neither an
SQT nor an RSQT. See Rule 1014(b)(ii)(C).
8 A Specialist is an Exchange member who is
registered as an options specialist pursuant to Rule
501(a). An options Specialist includes a Remote
Specialist which is defined as an options specialist
in one or more classes that does not have a physical
presence on an Exchange floor and is approved by
the Exchange pursuant to Rule 501.
9 See Securities Exchange Act Release No. 58582
(September 18, 2008), 73 FR 55190 (September 24,
2008) (SR–Phlx–2008–66) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change
Relating to Quotation Size Decrementation).
10 The Exchange was disseminating a size which
was not necessarily on the Exchange’s book.
E:\FR\FM\17JYN1.SGM
17JYN1
]]>Agencies
[Federal Register Volume 82, Number 135 (Monday, July 17, 2017)]
[Notices]
[Pages 32739-32741]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-14888]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-81118; File No. SR-CBOE-2017-052]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change Updating the CBOE Fees Schedule Concerning LVCX
Fees
July 11, 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 June 29, 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, 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its Fees Schedule relating to
Livevol Core X (``LVCX'') fees.
The text of the proposed rule change is available on the Exchange's
Web site (https://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx),
at the Exchange's Office of the Secretary, and at the Commission's
Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend its Fees Schedule relating to
Livevol Core X (``LVCX'') fees. By way of background, LVCX is a front-
end order entry and management tool for listed stocks and options that
supports both simple and complex orders. Particularly, LVCX is a web-
based application integrated into the application programming interface
of the user's proprietary system. The application provides users with
the capability to send option orders to U.S. options exchanges and
stock orders to U.S. stock exchanges (and other trading centers).
Additionally, LVCX allows users to input parameters to control the
size, timing and other variables of their trades. Use of the
application is completely optional and LVCX users may sublicense LVCX
to their customers.
The Exchange proposes a new tiered fee schedule for LVCX.
Specifically, the Exchange proposes to eliminate the current flat fees
of $100/month (per Log-in ID) and implement a new tiered fee schedule
for the LVCX application fees. The Exchange believes the proposed
change will encourage greater application of the LVCX platform by
reducing the prices as users purchase more Log-In IDs. The proposed
LVXC tiered pricing is below.
------------------------------------------------------------------------
Fee per
Livevol Core X (LVCX) login ID
per month
------------------------------------------------------------------------
Application Fees by Number of Login IDs:
0-0....................................................... $100
11-30..................................................... 75
31-100.................................................... 50
101-200................................................... 40
201-500................................................... 30
501-1,000................................................. 20
>1,000.................................................... 15
------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\3\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \4\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and
[[Page 32740]]
practices, to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, 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.
Additionally, the Exchange believes the proposed rule change is
consistent with Section 6(b)(4) of the Act,\5\ which requires that
Exchange rules provide for the equitable allocation of reasonable dues,
fees, and other charges among its Trading Permit Holders and other
persons using its facilities.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(5).
\5\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
In particular, the Exchange believes the tiered fee schedule is
reasonable because broker-dealer clients will see an overall reduction
of prices as they increase their Log-In IDs. Additionally, the proposed
change continues to provide for the recoupment of the costs of
developing, maintaining, supporting and enhancing the application.
The Exchange believes the proposed rule change is equitably [sic]
and not unfairly discriminatory because it applies to all users of LVCX
uniformly. Additionally, the use of LVCX is completely voluntary. The
LVCX application is available as a convenience to market participants,
who will continue to have the option to use any order entry and
management system available in the marketplace to send orders to the
Exchange and other exchanges. The Exchange also believes these fees are
reasonable and appropriate as they are competitive with similar
applications available throughout the market.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule changes will
impose any burden on competition that are not necessary or appropriate
in furtherance of the purposes of the Act. Particularly, any market
participant will be able to access LVCX and its tiered platform fees,
which will apply uniformly to all users. Additionally, the proposed
tiered fee schedule will offer heightened incentives for all broker-
dealer clients to promote use of LVCX. The Exchange notes that the LVCX
application is available to all market participants on the same terms
and conditions, and use of the application is completely voluntary.
LVCX is merely an alternative application to other similar products
already available in the market and market participants can develop
their own proprietary products with the same functionality.
The Exchange notes that when Congress charged the Commission with
supervising the development of a ``national market system'' for
securities, a premise of its action was that prices, products and
services ordinarily would be determined by market forces.\6\ Consistent
with this purpose, Congress and the Commission have repeatedly stated
their preference for competition, rather than regulatory intervention,
to determine prices, products and services in the securities
markets.\7\ Many exchanges and other market participants make
technology products, including products similar to the LVCX, available
to the industry. Other market participants that offer these products
can adjust pricing or add functionality to attract users to their
products to compete with the Exchange-offered products based on all
competitive forces in the marketplace, as the Exchange expects these
other market participants currently do. The Exchange believes that
other market participants that offer these products will continue to
remain competitive in the market for order-entry, management and
routing products, as they currently are in this market in which at
least two exchanges (including CBOE) offer similar technology products.
For example, CBOE currently offers PULSe, and ISE currently offers
PrecISE. The Exchange believes that many investors will continue to
elect to use competing products available from non-exchange technology
providers.
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\6\ See, e.g., H.R. Rep. No. 94-229, at 92 (1975) (Conf. Rep.)
(stating Congress's intent that the ``national market system evolve
through the interplay of competitive forces as unnecessary
regulatory restrictions are removed'').
\7\ See S. Rep. No. 94-75, 94th Cong., 1st Sess. 8 (1975) (``The
objective [in enacting the 1975 amendments to the Exchange Act]
would be to enhance competition and to allow economic forces,
interacting within a fair regulatory field, to arrive at appropriate
variations in practices and services.''); Order Approving Proposed
Rule Change Relating to NYSE Arca Data, Securities Exchange Act
Release No. 59039 (December 2, 2008), 73 FR 74770 (Dec. 9, 2008) at
74781 (``The Exchange Act and its legislative history strongly
support the Commission's reliance on competition, whenever possible,
in meeting its regulatory responsibilities for overseeing the SROs
and the national market system. Indeed, competition among multiple
markets and market participants trading the same products is the
hallmark of the national market system.'') (SR-NYSEArca-2006-21);
Regulation NMS, 70 FR at 37499 (observing that NMS regulation ``has
been remarkably successful in promoting market competition in [the]
forms that are most important to investors and listed companies'').
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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 neither solicited nor received 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 \8\ and paragraph (f) of Rule 19b-4 \9\
thereunder. 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.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f).
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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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-CBOE-2017-052 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-CBOE-2017-052. 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 (https://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
[[Page 32741]]
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-CBOE-2017-052 and should be submitted on or before
August 7, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2017-14888 Filed 7-14-17; 8:45 am]
BILLING CODE 8011-01-P
