Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Options Pricing at Chapter XV, Section 2, 54460-54463 [2017-24931]

Download as PDF sradovich on DSK3GMQ082PROD with NOTICES 54460 Federal Register / Vol. 82, No. 221 / Friday, November 17, 2017 / Notices volume threshold, and members may always elect to qualify for the corresponding fee by adding sufficient liquidity to the Exchange to meet the new volume requirement. As such, the Exchange believes that the proposed volume threshold will not negatively impact who will qualify for the corresponding transaction fee, but will rather have a positive impact on overall market quality as QMMs increase their participation in the market to qualify for those fees. If, however, the Exchange is incorrect and the changes proposed herein are unattractive to QMMs, it is likely that Nasdaq will lose market share as a result. Accordingly, Nasdaq does not believe that the proposed change will impair the ability of members or competing order execution venues to maintain their competitive standing in the financial markets. Similarly, Nasdaq believes that the elimination of the $0.0025 rebate tier for the Growth Program does not impose a burden on competition because the Exchange’s execution services are completely voluntary and subject to extensive competition both from other exchanges and from off-exchange venues. Nasdaq notes that the $0.0025 rebate tier will be eliminated for all members. Additionally, all members may continue to qualify for the remaining $0.0027 rebate tier if they meet the qualifying criteria, e.g., the member adds at least 0.04% or more of Consolidated Volume during the month through non-displayed orders through one or more of its Nasdaq Market Center MPIDs. The Exchange believes that eliminating the $0.0025 rebate tier, while maintaining the $0.0027 rebate tier, will not significantly impact the number of members that will qualify for the Growth Program. Unlike the $0.0025 rebate, which requires a member to show an increase in Consolidated Volume compared to the member’s Growth Baseline, with each successive month maintaining or improving upon that baseline to continue to qualify for the rebate, the $0.0027 rebate requires an initial significant increase in Consolidated Volume compared to that member’s share of liquidity provided in all securities in August 2016, with the member maintaining that level to continue receiving the $0.0027 rebate. Thus, the measure against which Consolidated Volume is compared remains static month to month under the criteria of the $0.0027 rebate, whereas it can vary month to month under the qualification criteria for the $0.0025 rebate. Nasdaq believes that members may therefore be more able to satisfy the criteria to qualify for the VerDate Sep<11>2014 18:32 Nov 16, 2017 Jkt 244001 $0.0027 rebate over successive months than the criteria to qualify for the $0.0025 rebate. Ultimately, if members conclude that the qualification requirements for the remaining tier in the Growth Program are set too high, or the rebate too low, it is likely that the Exchange will realize very little benefit from the Growth Program. Accordingly, the Exchange does not believe that this proposed change will impair the ability of members or competing order execution venues to maintain their competitive standing in the financial markets. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.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 (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– NASDAQ–2017–119 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–NASDAQ–2017–119. 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. 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–NASDAQ–2017–119, and should be submitted on or before December 8, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.15 Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017–24934 Filed 11–16–17; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–82059; File No. SR–BX– 2017–051] Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange’s Options Pricing at Chapter XV, Section 2 November 13, 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 November 15 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 14 15 PO 00000 U.S.C. 78s(b)(3)(A)(ii). Frm 00145 Fmt 4703 Sfmt 4703 E:\FR\FM\17NON1.SGM 17NON1 54461 Federal Register / Vol. 82, No. 221 / Friday, November 17, 2017 / Notices 1, 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 amend the Options Pricing at Chapter XV, Section 2, entitled ‘‘BX Options Market—Fees and Rebates,’’ which governs pricing for BX members using the BX Options Market (‘‘BX Options’’). The Exchange proposes to modify certain fees for transactions in options overlying Select Symbols,3 as further discussed below. The text of the proposed rule change is available on the Exchange’s Web site at https://nasdaqbx.cchwallstreet.com/, A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 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 1. Purpose 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. The Exchange proposes to amend Chapter XV, Section 2(1), which includes pricing for transactions in Select Symbol options, to increase the Firm 4 fee to add liquidity and fee to remove liquidity in Select Symbols. Select Symbols represent some of the highest volume Penny Pilot options traded on the Exchange and in the industry. The fees and rebates applicable to Select Symbol options in Chapter XV, Section 2(1) are designed to attract more order flow to BX Options, particularly in these high volume symbols, and apply to Customers,5 BX Options Market Makers,6 NonCustomers 7 and Firms as follows: (1) Fees for Execution of Contracts on the BX Options Market: * * * * * SELECT SYMBOLS OPTIONS TIER SCHEDULE Rebate to add liquidity Fee to add liquidity Rebate to remove liquidity Fee to remove liquidity Fee to add liquidity Customer BX options market maker Customer BX options market maker BX options market maker Customer Non-customer or BX options market maker, or firm Customer Non-customer or BX options market maker, or firm When: Non-customer or BX options market maker, or firm Trading with: Tier 1 ......... Tier 2 ......... Tier 3 ......... sradovich on DSK3GMQ082PROD with NOTICES Tier 4 ......... Participant executes less than 0.05% of total industry customer equity and ETF option ADV contracts per month. Participant executes 0.05% to less than 0.15% of total industry customer equity and ETF option ADV contracts per month. Participant executes 0.15% or more of total industry customer equity and ETF option ADV contracts per month. Participant executes greater than 10,000 PRISM Agency Contracts per month; or Participant executes BX Options Market Maker volume of 0.30% or more of total industry customer equity and ETF options ADV per month. 3 The following are Select Symbols: ASHR, DIA, DXJ, EEM, EFA, EWJ, EWT, EWW, EWY, EWZ, FAS, FAZ, FXE, FXI, FXP, GDX, GLD, HYG, IWM, IYR, KRE, OIH, QID, QLD, QQQ, RSX, SDS, SKF, SLV, SRS, SSO, TBT, TLT, TNA, TZA, UNG, URE, USO, UUP, UVXY, UYG, VXX, XHB, XLB, XLE, XLF, XLI, XLK, XLP, XLU, XLV, XLY, XME, XOP, XRT. See Chapter XV, Section 2(1). 4 The term ‘‘Firm’’ or (‘‘F’’) applies to any transaction that is identified by a Participant for clearing in the Firm range at OCC. See Chapter XV. VerDate Sep<11>2014 18:32 Nov 16, 2017 Jkt 244001 $0.00 $0.44 $0.00 $0.42 $0.14 0.10 0.44 0.25 0.42 0.10 0.20 0.40 0.37 0.39 0.04 0.25 0.29 0.37 0.25 0.00 5 The term ‘‘Customer’’ or (‘‘C’’) applies to any transaction that is identified by a Participant for clearing in the Customer range at OCC which is not for the account of broker or dealer or for the account of a ‘‘Professional’’ (as that term is defined in Chapter I, Section 1(a)(48)). See Chapter XV. 6 The term ‘‘BX Options Market Maker’’ or (‘‘M’’) is a Participant that has registered as a Market Maker on BX Options pursuant to Chapter VII, Section 2, and must also remain in good standing pursuant to Chapter VII, Section 4. In order to PO 00000 Frm 00146 Fmt 4703 Sfmt 4703 receive Market Maker pricing in all securities, the Participant must be registered as a BX Options Market Maker in at least one security. See Chapter XV. 7 As set forth in note 1 to Chapter XV, Section 2(1), a Non-Customer includes a Professional, Broker-Dealer and Non-BX Options Market Maker. E:\FR\FM\17NON1.SGM 17NON1 54462 Federal Register / Vol. 82, No. 221 / Friday, November 17, 2017 / Notices BX Options Select Symbol List The following are Select Symbols: ASHR, DIA, DXJ, EEM, EFA, EWJ, EWT, EWW, EWY, EWZ, FAS, FAZ, FXE, FXI, FXP, GDX, GLD, HYG, IWM, IYR, KRE, OIH, QID, QLD, QQQ, RSX, SDS, SKF, SLV, SRS, SSO, TBT, TLT, TNA, TZA, UNG, URE, USO, UUP, UVXY, UYG, VXX, XHB, XLB, XLE, XLF, XLI, XLK, XLP, XLU, XLV, XLY, XME, XOP, XRT. • Firm fee to add liquidity and fee to remove liquidity in Select Symbols Options will be $0.33 per contract, regardless of counterparty. • Non-Customer fee to add liquidity and fee to remove liquidity in Select Symbols Options will be $0.46 per contract, regardless of counterparty. • BX Options Market Maker fee to remove liquidity in Select Symbols Options will be $0.46 per contract when trading with Firm, Non-Customer, or BX Options Market Maker. • Customer fee to add liquidity in Select Symbols Options when contra to another Customer is $0.33 per contract. • Volume from all products listed on BX Options will apply to the Select Symbols Options Tiers. * * * * * The Exchange proposes to increase the $0.33 per contract Firm fee to add liquidity and fee to remove liquidity in Select Symbols to raise revenue for the Exchange and help defray costs. As proposed, the Firm fee to add liquidity and fee to remove liquidity in Select Symbols will be $0.37 per contract, regardless of counterparty. The pricing for all other transactions in Select Symbol options as set forth above will remain unchanged. sradovich on DSK3GMQ082PROD with NOTICES 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,8 in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,9 in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using any facility, and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. The Exchange believes that its proposal to increase the Firm fee to add liquidity and fee to remove liquidity in Select Symbols, as discussed above, is reasonable because the proposed change is a modest increase to help defray costs and remains lower than the Firm fee to add liquidity and fee to remove liquidity in all other Penny Pilot options 8 15 9 15 U.S.C. 78f(b). U.S.C. 78f(b)(4) and (5). VerDate Sep<11>2014 18:32 Nov 16, 2017 Jkt 244001 that are not options in Select Symbols.10 As discussed above, the pricing for all other transactions in Select Symbol options will remain unchanged. Furthermore, the Exchange notes that the proposed Firm fees for Select Symbols remain competitive with the fees of other options markets.11 Accordingly, the Exchange believes that despite the proposed increase in Firm fees as described above, the pricing model in Chapter XV, Section 2(1) for Select Symbols will continue to attract order flow to BX Options, particularly in these high volume symbols, to the benefit of all market participants. The Exchange also believes that the proposed increase of the Firm fee to add liquidity and fee to remove liquidity in Select Symbols is equitable and not unfairly discriminatory because the Exchange will apply the same fee to all similarly situated members. For the reasons discussed above, the proposed fee continues to provide an incentive for Firms to transact order flow on the Exchange, which order flow brings increased liquidity to the Exchange for the benefit of all Exchange participants. To the extent the purpose of the proposed Firm fee is achieved, all market participants should benefit from the improved market liquidity. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. As discussed above, the Exchange believes that the proposed Firm fees for Select Symbol options remain competitive with those on other options markets and will continue to attract order flow to the Exchange. The Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive, or rebate opportunities available at other venues to be more favorable. In such an environment, the Exchange must continually review, and consider adjusting, its fees and rebates to remain competitive with other 10 The Exchange currently charges a $0.45 per contract Firm fee to add liquidity and a $0.46 per contract Firm fee to remove liquidity in all other Penny Pilot options that are not in Select Symbol options. See Chapter XV, Section 2(1). 11 See, e.g., MIAX Options Fee Schedule at: https://www.miaxoptions.com/sites/default/files/ fee_schedule-files/MIAX_Options_Fee_Schedule_ 10112017.pdf. See also, e.g., Nasdaq PHLX LLC Pricing Schedule at: https://nasdaqphlx.cchwall street.com/NASDAQPHLXTools/PlatformViewer. asp?selectednode=chp_1_4_1&manual=%2 Fnasdaqomxphlx%2Fphlx%2Fphlx-rulesbrd%2F. PO 00000 Frm 00147 Fmt 4703 Sfmt 4703 exchanges. For the reasons described above, the Exchange believes that the proposed fee changes reflect this competitive environment. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.12 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 (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– BX–2017–051 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–BX–2017–051. 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 12 15 E:\FR\FM\17NON1.SGM U.S.C. 78s(b)(3)(A)(ii). 17NON1 Federal Register / Vol. 82, No. 221 / Friday, November 17, 2017 / Notices 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–2017–051, and should be submitted on or before December 8, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017–24931 Filed 11–16–17; 8:45 am] BILLING CODE 8011–01–P SMALL BUSINESS ADMINISTRATION [Disaster Declaration #15298 and #15299; PUERTO RICO Disaster Number PR–00029] Presidential Declaration Amendment of a Major Disaster for the Commonwealth of Puerto Rico U.S. Small Business Administration. ACTION: Amendment 4. AGENCY: This is an amendment of the Presidential declaration of a major disaster for the Commonwealth of Puerto Rico (FEMA–4336–DR), dated 09/10/2017. Incident: Hurricane Irma. Incident Period: 09/05/2017 through 09/07/2017. DATES: Issued on 11/10/2017. Physical Loan Application Deadline Date: 03/20/2018. Economic Injury (EIDL) Loan Application Deadline Date: 06/11/2018. ADDRESSES: Submit completed loan applications to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. sradovich on DSK3GMQ082PROD with NOTICES SUMMARY: 13 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 18:32 Nov 16, 2017 Jkt 244001 A. Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street SW., Suite 6050, Washington, DC 20416, (202) 205–6734. SUPPLEMENTARY INFORMATION: The notice of the President’s major disaster declaration for the Commonwealth of PUERTO RICO, dated 09/10/2017, is hereby amended to extend the deadline for filing applications for physical damages as a result of this disaster to 03/20/2018. All other information in the original declaration remains unchanged. FOR FURTHER INFORMATION CONTACT: (Catalog of Federal Domestic Assistance Number 59008) James E. Rivera, Associate Administrator for Disaster Assistance. [FR Doc. 2017–24916 Filed 11–16–17; 8:45 am] BILLING CODE 8025–01–P DEPARTMENT OF STATE [Public Notice 10204] Determination Under Section 7070(c)(1) of the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2017 Regarding the Central Government of Nicaragua Pursuant to section 7070(c)(1) of the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2017 (Div. J, Pub. L. 115–31), I hereby determine that the Government of Nicaragua has recognized the independence of, or has established diplomatic relations with, the Georgian territories of Abkhazia and Tskhinvali Region/South Ossetia. This determination shall be published in the Federal Register and, along with the accompanying Memorandum of Justification, shall be reported to Congress. Rex W. Tillerson, Secretary of State. [FR Doc. 2017–24963 Filed 11–16–17; 8:45 am] 54463 Discontinuances of Service to discontinue service over approximately 13.65 miles of rail line from milepost ZF 0.0 to milepost ZF 13.65 on CSXT’s Southern Region, Florence Division, Kingsport Subdivision in Dickenson County, Va. (the Line). The Line traverses United States Postal Service Zip Codes 24226, 24228, and 24230. CSXT states that there are 12 internal CSXT stations on the line that can be closed.1 CSXT has certified that: (1) No local traffic has moved over the Line for at least two years; (2) overhead traffic on the Line can be rerouted over other lines; (3) no formal complaint filed by a user of a rail service on the Line (or by a state or local government entity acting on behalf of such user) regarding cessation of service over the Line is either pending with the Surface Transportation Board or with any U.S. District Court or has been decided in favor of a complainant within the twoyear period; and (4) the requirements at 49 CFR 1105.12 (newspaper publication) and 49 CFR 1152.50(d)(1) (notice to governmental agencies) have been met. As a condition to this exemption, any employee adversely affected by the discontinuance of service shall be protected under Oregon Short Line Railroad—Abandonment Portion Goshen Branch Between Firth & Ammon, in Bingham & Bonneville Counties, Idaho, 360 I.C.C. 91 (1979). To address whether this condition adequately protects affected employees, a petition for partial revocation under 49 U.S.C. 10502(d) must be filed. Provided no formal expression of intent to file an offer of financial assistance (OFA) to subsidize continued rail service has been received, this exemption will be effective on December 17, 2017, unless stayed pending reconsideration. Petitions to stay that do not involve environmental issues and formal expressions of intent to file an OFA to subsidize continued rail service under 49 CFR 1152.27(c)(2) 2 must be filed by November 27, 2017.3 BILLING CODE 4710–29–P SURFACE TRANSPORTATION BOARD [Docket No. AB 55 (Sub-No. 757X)] CSX Transportation, Inc.— Discontinuance of Service Exemption—in Dickenson County, VA CSX Transportation, Inc. (CSXT), has filed a verified notice of exemption under 49 CFR part 1152 subpart F— Exempt Abandonments and PO 00000 Frm 00148 Fmt 4703 Sfmt 4703 1 These stations are at Caney, Cranes Nest DTC, Dickenson, Cranes Nest, Holly Creek, Crabtree, Clintwood Mills, Mullin, Delp, Victor, Lick Fork, and Phipps. 2 Each OFA must be accompanied by the filing fee, which currently is set at $1,800. See Regulations Governing Fees for Servs. Performed in Connection with Licensing & Related Servs.—2017 Update, EP 542 (Sub-No. 25), slip op. App. C at 20 (STB served July 28, 2017). 3 Because this is a discontinuance proceeding and not an abandonment, trail use/rail banking and public use conditions are not appropriate. Because there will be an environmental review during abandonment, this discontinuance does not require environmental review. E:\FR\FM\17NON1.SGM 17NON1

Agencies

[Federal Register Volume 82, Number 221 (Friday, November 17, 2017)]
[Notices]
[Pages 54460-54463]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-24931]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82059; File No. SR-BX-2017-051]


Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend the 
Exchange's Options Pricing at Chapter XV, Section 2

November 13, 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 November

[[Page 54461]]

1, 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.
---------------------------------------------------------------------------

    \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 the Options Pricing at Chapter XV, 
Section 2, entitled ``BX Options Market--Fees and Rebates,'' which 
governs pricing for BX members using the BX Options Market (``BX 
Options''). The Exchange proposes to modify certain fees for 
transactions in options overlying Select Symbols,\3\ as further 
discussed below.
---------------------------------------------------------------------------

    \3\ The following are Select Symbols: ASHR, DIA, DXJ, EEM, EFA, 
EWJ, EWT, EWW, EWY, EWZ, FAS, FAZ, FXE, FXI, FXP, GDX, GLD, HYG, 
IWM, IYR, KRE, OIH, QID, QLD, QQQ, RSX, SDS, SKF, SLV, SRS, SSO, 
TBT, TLT, TNA, TZA, UNG, URE, USO, UUP, UVXY, UYG, VXX, XHB, XLB, 
XLE, XLF, XLI, XLK, XLP, XLU, XLV, XLY, XME, XOP, XRT. See Chapter 
XV, Section 2(1).
---------------------------------------------------------------------------

    The text of the proposed rule change is available on the Exchange's 
Web site at https://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.

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 Chapter XV, Section 2(1), which 
includes pricing for transactions in Select Symbol options, to increase 
the Firm \4\ fee to add liquidity and fee to remove liquidity in Select 
Symbols. Select Symbols represent some of the highest volume Penny 
Pilot options traded on the Exchange and in the industry. The fees and 
rebates applicable to Select Symbol options in Chapter XV, Section 2(1) 
are designed to attract more order flow to BX Options, particularly in 
these high volume symbols, and apply to Customers,\5\ BX Options Market 
Makers,\6\ Non-Customers \7\ and Firms as follows:
---------------------------------------------------------------------------

    \4\ The term ``Firm'' or (``F'') applies to any transaction that 
is identified by a Participant for clearing in the Firm range at 
OCC. See Chapter XV.
    \5\ The term ``Customer'' or (``C'') applies to any transaction 
that is identified by a Participant for clearing in the Customer 
range at OCC which is not for the account of broker or dealer or for 
the account of a ``Professional'' (as that term is defined in 
Chapter I, Section 1(a)(48)). See Chapter XV.
    \6\ The term ``BX Options Market Maker'' or (``M'') is a 
Participant that has registered as a Market Maker on BX Options 
pursuant to Chapter VII, Section 2, and must also remain in good 
standing pursuant to Chapter VII, Section 4. In order to receive 
Market Maker pricing in all securities, the Participant must be 
registered as a BX Options Market Maker in at least one security. 
See Chapter XV.
    \7\ As set forth in note 1 to Chapter XV, Section 2(1), a Non-
Customer includes a Professional, Broker-Dealer and Non-BX Options 
Market Maker.
---------------------------------------------------------------------------

    (1) Fees for Execution of Contracts on the BX Options Market:
* * * * *

                                                          Select Symbols Options Tier Schedule
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Rebate to add      Fee to add       Rebate to      Fee to remove      Fee to add
--------------------------------------------------------------------    liquidity        liquidity          remove         liquidity        liquidity
                                               When:                ----------------------------------    liquidity    ---------------------------------
--------------------------------------------------------------------     Customer        BX options   -----------------    BX options       BX options
                                                                    -----------------   market maker       Customer       market maker     market maker
                                                                                     -------------------------------------------------------------------
                                                                     Non-customer or                   Non-customer or                   Non-customer or
                                           Trading with:                BX options                        BX options                        BX options
                                                                      market maker,       Customer      market maker,       Customer      market maker,
                                                                         or firm                           or firm                           or firm
--------------------------------------------------------------------------------------------------------------------------------------------------------
Tier 1........................  Participant executes less than                 $0.00            $0.44            $0.00            $0.42            $0.14
                                 0.05% of total industry customer
                                 equity and ETF option ADV
                                 contracts per month.
Tier 2........................  Participant executes 0.05% to less              0.10             0.44             0.25             0.42             0.10
                                 than 0.15% of total industry
                                 customer equity and ETF option ADV
                                 contracts per month.
Tier 3........................  Participant executes 0.15% or more              0.20             0.40             0.37             0.39             0.04
                                 of total industry customer equity
                                 and ETF option ADV contracts per
                                 month.
Tier 4........................  Participant executes greater than               0.25             0.29             0.37             0.25             0.00
                                 10,000 PRISM Agency Contracts per
                                 month; or Participant executes BX
                                 Options Market Maker volume of
                                 0.30% or more of total industry
                                 customer equity and ETF options
                                 ADV per month.
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 54462]]

BX Options Select Symbol List

    The following are Select Symbols: ASHR, DIA, DXJ, EEM, EFA, EWJ, 
EWT, EWW, EWY, EWZ, FAS, FAZ, FXE, FXI, FXP, GDX, GLD, HYG, IWM, IYR, 
KRE, OIH, QID, QLD, QQQ, RSX, SDS, SKF, SLV, SRS, SSO, TBT, TLT, TNA, 
TZA, UNG, URE, USO, UUP, UVXY, UYG, VXX, XHB, XLB, XLE, XLF, XLI, XLK, 
XLP, XLU, XLV, XLY, XME, XOP, XRT.
     Firm fee to add liquidity and fee to remove liquidity in 
Select Symbols Options will be $0.33 per contract, regardless of 
counterparty.
     Non-Customer fee to add liquidity and fee to remove 
liquidity in Select Symbols Options will be $0.46 per contract, 
regardless of counterparty.
     BX Options Market Maker fee to remove liquidity in Select 
Symbols Options will be $0.46 per contract when trading with Firm, Non-
Customer, or BX Options Market Maker.
     Customer fee to add liquidity in Select Symbols Options 
when contra to another Customer is $0.33 per contract.
     Volume from all products listed on BX Options will apply 
to the Select Symbols Options Tiers.
* * * * *
    The Exchange proposes to increase the $0.33 per contract Firm fee 
to add liquidity and fee to remove liquidity in Select Symbols to raise 
revenue for the Exchange and help defray costs. As proposed, the Firm 
fee to add liquidity and fee to remove liquidity in Select Symbols will 
be $0.37 per contract, regardless of counterparty. The pricing for all 
other transactions in Select Symbol options as set forth above will 
remain unchanged.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\8\ in general, and furthers the objectives of Sections 
6(b)(4) and 6(b)(5) of the Act,\9\ in particular, in that it provides 
for the equitable allocation of reasonable dues, fees and other charges 
among members and issuers and other persons using any facility, and is 
not designed to permit unfair discrimination between customers, 
issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The Exchange believes that its proposal to increase the Firm fee to 
add liquidity and fee to remove liquidity in Select Symbols, as 
discussed above, is reasonable because the proposed change is a modest 
increase to help defray costs and remains lower than the Firm fee to 
add liquidity and fee to remove liquidity in all other Penny Pilot 
options that are not options in Select Symbols.\10\ As discussed above, 
the pricing for all other transactions in Select Symbol options will 
remain unchanged. Furthermore, the Exchange notes that the proposed 
Firm fees for Select Symbols remain competitive with the fees of other 
options markets.\11\ Accordingly, the Exchange believes that despite 
the proposed increase in Firm fees as described above, the pricing 
model in Chapter XV, Section 2(1) for Select Symbols will continue to 
attract order flow to BX Options, particularly in these high volume 
symbols, to the benefit of all market participants.
---------------------------------------------------------------------------

    \10\ The Exchange currently charges a $0.45 per contract Firm 
fee to add liquidity and a $0.46 per contract Firm fee to remove 
liquidity in all other Penny Pilot options that are not in Select 
Symbol options. See Chapter XV, Section 2(1).
    \11\ See, e.g., MIAX Options Fee Schedule at: https://www.miaxoptions.com/sites/default/files/fee_schedule-files/MIAX_Options_Fee_Schedule_10112017.pdf. See also, e.g., Nasdaq PHLX 
LLC Pricing Schedule at: https://nasdaqphlx.cchwallstreet.com/NASDAQPHLXTools/PlatformViewer.asp?selectednode=chp_1_4_1&manual=%2Fnasdaqomxphlx%2Fphlx%2Fphlx-rulesbrd%2F.
---------------------------------------------------------------------------

    The Exchange also believes that the proposed increase of the Firm 
fee to add liquidity and fee to remove liquidity in Select Symbols is 
equitable and not unfairly discriminatory because the Exchange will 
apply the same fee to all similarly situated members. For the reasons 
discussed above, the proposed fee continues to provide an incentive for 
Firms to transact order flow on the Exchange, which order flow brings 
increased liquidity to the Exchange for the benefit of all Exchange 
participants. To the extent the purpose of the proposed Firm fee is 
achieved, all market participants should benefit from the improved 
market liquidity.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. As discussed above, the 
Exchange believes that the proposed Firm fees for Select Symbol options 
remain competitive with those on other options markets and will 
continue to attract order flow to the Exchange. The Exchange notes that 
it operates in a highly competitive market in which market participants 
can readily favor competing venues if they deem fee levels at a 
particular venue to be excessive, or rebate opportunities available at 
other venues to be more favorable. In such an environment, the Exchange 
must continually review, and consider adjusting, its fees and rebates 
to remain competitive with other exchanges. For the reasons described 
above, the Exchange believes that the proposed fee changes reflect this 
competitive environment.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act.\12\
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

    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 (https://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-BX-2017-051 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-BX-2017-051. 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

[[Page 54463]]

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-
2017-051, and should be submitted on or before December 8, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-24931 Filed 11-16-17; 8:45 am]
 BILLING CODE 8011-01-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.