Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Market Data Fees, 1391-1396 [2018-00309]
Download as PDF
<![CDATA[
Federal Register / Vol. 83, No. 8 / Thursday, January 11, 2018 / Notices
index options), is equitable and not
unfairly discriminatory because the
proposed changes will apply uniformly
to all similarly-situated market
participants.
Changes to the Fee for Responses to
Crossing Orders (Excluding PIM)
The Exchange believes that the
proposed fees for Responses to Crossing
Orders (excluding PIM orders), which
are being increased for all market
participants to $0.50 per contract in
Penny Symbols and SPY, and $1.00 per
contract in Non-Penny Symbols
(excluding index options), are
reasonable because they remain
competitive with similar fees assessed
by other options exchanges, including,
for example, BOX Options Exchange
(‘‘BOX’’), which charges up to $0.50 and
$1.15 per contract for responses in its
solicitation or facilitation auction
mechanisms for penny pilot and nonpenny pilot classes, respectively.19 As
such, the Exchange believes that the
response fees proposed herein are set at
levels that the Exchange believes will
remain attractive to market participants
that trade on GEMX.
Finally, the Exchange believes that
the proposed fees for Responses to
Crossing Orders (excluding PIM orders)
are equitable and not unfairly
discriminatory because they would
uniformly apply to all similarly-situated
market participants.
srobinson on DSK9F5VC42PROD with NOTICES
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 fees and rebates in Section I
of the Exchange’s Schedule of Fees
remain competitive with similar fees
and rebates offered on other options
exchanges. The Exchange 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
19 BOX charges a fee for responses in the
solicitation or facilitation auction mechanisms for
all account types that is $0.25 per contract (for
penny pilot classes) and $0.40 per contract (for nonpenny pilot classes). See BOX Fee Schedule,
Section I.C. As set forth in the BOX Fee Schedule,
‘‘[r]esponses to Facilitation and Solicitation Orders
executed in these mechanisms shall be charged the
‘‘add’’ fee.’’ Id. at Section III.B, second bullet. For
all account types, this fee (i.e., the Fee for Adding
Liquidity) is $0.25 (for penny pilot classes) and
$0.75 (for non-penny pilot classes). Id. Thus, BOX
may charge a fee for responses in its solicitation or
facilitation auction mechanisms of up to $0.50 per
contract (for penny pilot classes) and $1.15 per
contract (for non-penny pilot classes).
VerDate Sep<11>2014
00:05 Jan 11, 2018
Jkt 244001
excessive, or rebate opportunities
available at other venues to be more
favorable. In such an environment, the
Exchange must continually adjust its
fees to remain competitive. Because
competitors are free to modify their own
fees in response, and because market
participants may readily adjust their
order routing practices, the Exchange
believes that the degree to which fee
changes in this market may impose any
burden on competition is extremely
limited.
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,20 and Rule
19b–4(f)(2) 21 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: (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–
GEMX–2017–60 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–GEMX–2017–60. 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 website (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 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–GEMX–2017–60 and
should be submitted on or before
February 1, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–00308 Filed 1–10–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–82450; File No. SR–
CboeBZX–2017–019]
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change Related to
Market Data Fees
January 5, 2018.
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 December
28, 2017, Cboe BZX Exchange, Inc. (the
22 17
20 15
U.S.C. 78s(b)(3)(A)(ii).
21 17 CFR 240.19b–4(f)(2).
PO 00000
Frm 00065
Fmt 4703
Sfmt 4703
1391
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\11JAN1.SGM
11JAN1
1392
Federal Register / Vol. 83, No. 8 / Thursday, January 11, 2018 / Notices
‘‘Exchange’’ or ‘‘BZX’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II and III
below, which Items have been prepared
by the Exchange. The Exchange has
designated the proposed rule change as
one establishing or changing a member
due, fee, or other charge imposed by the
Exchange under Section 19(b)(3)(A)(ii)
of the Act 3 and Rule 19b–4(f)(2)
thereunder,4 which renders the
proposed rule change effective upon
filing with the Commission. 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 filed a proposal to
amend the Market Data section of its fee
schedule to lower the Internal
Distribution 5 fees and to adopt per User
fees for two market data products, the
Cboe One Summary Feed and the ETF
Implied Liquidity Feed.
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.
3 15
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
5 A ‘‘Distributor’’ is defined as ‘‘any entity that
receives the Exchange Market Data product directly
from the Exchange or indirectly through another
entity and then distributes it internally or externally
to a third party.’’ See the Exchange’s fee schedule
available at https://markets.cboe.com/us/equities/
membership/fee_schedule/bzx/. An ‘‘Internal
Distributor’’ is defined as ‘‘a Distributor that
receives the Exchange Market Data product and
then distributes that data to one or more Users
within the Distributor’s own entity.’’ Id.
srobinson on DSK9F5VC42PROD with NOTICES
4 17
VerDate Sep<11>2014
00:05 Jan 11, 2018
Jkt 244001
(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 the
Market Data section of its fee schedule
to lower the fee for Internal Distribution
and to adopt separate fees for
Professional 6 and Non-Professional
Users 7 for the Cboe One Summary Feed
and the ETF Implied Liquidity Feed.8
Cboe One Feed
The Cboe One Feed is an optional
data feed that disseminates, on a realtime basis, the aggregate best bid and
offer (‘‘BBO’’) of all displayed orders for
securities traded on BZX and its
affiliated exchanges 9 and for which
they report quotes under the
Consolidated Tape Association (‘‘CTA’’)
Plan or the Nasdaq/UTP Plan.10 The
Cboe One Feed also contains the
individual last sale information for the
Cboe Equity Exchanges (collectively
with the aggregate BBO, the ‘‘Cboe One
Summary Feed’’). In addition, the Cboe
One Feed contains optional
functionality which enables recipients
6 A ‘‘Professional User’’ is defined as ‘‘any User
other than a Non-Professional User.’’ See the
Exchange’s fee schedule available at https://
markets.cboe.com/us/equities/membership/fee_
schedule/bzx/.
7 A ‘‘Non-Professional User’’ is currently defined
as ‘‘a natural person who is not: (i) Registered or
qualified in any capacity with the Commission, the
Commodity Futures Trading Commission, any state
securities agency, any securities exchange or
association, or any commodities or futures contract
market or association; (ii) engaged as an
‘‘investment adviser’’ as that term is defined in
Section 202(a)(11) of the Investment Advisers Act
of 1940 (whether or not registered or qualified
under that Act); or (iii) employed by a bank or other
organization exempt from registration under federal
or state securities laws to perform functions that
would require registration or qualification if such
functions were performed for an organization not so
exempt.’’ Id. See SR–CboeBZX–2017–016 (filed
December 15, 2017) (amending the definition of
Non-Professional User to harmonize it with that of
its affiliate exchanges, Cboe Exchange, Inc. and C2
Exchange, Inc. as of January 2, 2018).
8 This Exchange initially filed the proposed rule
change on December 15, 2017 (SR–CboeBZX–2017–
017). On December 18, 2018 the Exchange
withdrew SR–CboeBZX–2017–017 and submitted
this filing.
9 BZX’s affiliated exchanges are Cboe EDGA
Exchange, Inc. (‘‘EDGA’’), Cboe EDGX Exchange,
Inc. (‘‘EDGX’’), and Cboe BYX Exchange, Inc.
(‘‘BYX’’, together with EDGX, EDGA, and BZX, the
‘‘Cboe Equity Exchanges’’).
10 See Exchange Rule 11.22(j). See also Securities
Exchange Act Release No. 73918 (December 23,
2014), 79 FR 78920 (December 31, 2014) (File Nos.
SR–EDGX–2014–25; SR–EDGA–2014–25; SR–
BATS–2014–055; SR–BYX–2014–030) (Notice of
Amendment No. 2 and Order Granting Accelerated
Approval to Proposed Rule Changes, as Modified by
Amendments Nos. 1 and 2, to Establish a New
Market Data Product called the Cboe One Feed)
(‘‘Cboe One Approval Order’’).
PO 00000
Frm 00066
Fmt 4703
Sfmt 4703
to receive aggregated two-sided
quotations from the Cboe Equity
Exchanges for up to five (5) price levels
(‘‘Cboe One Premium Feed’’).
The Exchange proposes to amend its
fee schedule to lower the fee for Internal
Distribution for the Cboe One Summary
Feed and to adopt separate fees for
Professional and Non-Professional
Users.11 The Exchange does not propose
to amend the fees for the Cboe One
Premium Feed.
Distribution Fees. Currently, each
Internal Distributor that receives the
Cboe One Summary Feed is charged a
fee of $10,000 per month. The Exchange
now proposes to lower the fee for
Internal Distribution to $1,500 per
month.
User Fees. Like it does today for
External Distributors, the Exchange
proposes to adopt per User fees for
Internal Distributors that receive the
Cboe One Summary Feed. The Exchange
currently charges External Distributors
that redistribute the Cboe One Summary
Feed different fees for their Professional
Users and Non-Professional Users.
Those fees are $10.00 per month for
each Professional Users and $0.25 per
month for each Non-Professional Users.
To date, the Exchange has not charged
per User fees to Internal Distributors for
the Cboe One Summary Feed. To offset
the proposed reduction to the monthly
Internal Distribution fee, the Exchange
proposes to adopt per User fees for
Internal Distribution, the amounts of
each fee would be the same as the per
User fees currently charged to External
Distributors described above.
The Exchange also proposes to extend
the current $50,000 per month
Enterprise Fee available to External
Distributors of the Cboe One Summary
Feed to Internal Distributors. In lieu of
per User fees, the Enterprise fee will
permit Internal Distributors who
redistribute the Cboe One Summary
Feed to an unlimited number of internal
Professional and Non-Professional Users
for a set fee of $50,000 per month. For
example, if an Internal Distributor had
15,000 Professional Users who each
receive the Cboe One Summary Feed at
$10.00 per month, then that Internal
Distributor will pay $150,000 per month
in Professional Users fees. Under the
proposed Enterprise Fee, the Internal
Distributor will pay a flat fee of $50,000
for an unlimited number of internal
11 The Exchange also proposes a non-substantive,
immaterial change to the fee table headings to
conform to other heading within the Market Data
Section of the fee schedule. In particular, the
Exchange proposes to change the term ‘‘Distributor’’
to ‘‘Distribution’’ in both the Internal Distributor
and External Distributor headings under the Cboe
One Feed.
E:\FR\FM\11JAN1.SGM
11JAN1
Federal Register / Vol. 83, No. 8 / Thursday, January 11, 2018 / Notices
Professional and Non-Professional Users
of the Cboe One Summary Feed. An
Internal Distributor that pays the
Enterprise Fee will not have to report its
number of such Users (as set forth
below) on a monthly basis. However,
every six months, an Internal Distributor
must provide the Exchange with a count
of the total number of natural person
users of each product, including both
Professional and Non-Professional
Users. Like for External Distributors, the
Enterprise Fee for Internal Distributors
would be in addition to the applicable
Distribution Fee.
srobinson on DSK9F5VC42PROD with NOTICES
ETF Implied Liquidity Feed
The ETF Implied Liquidity feed is an
optional data feed that provides the
Exchange’s proprietary calculation of
the implied liquidity and the aggregate
best bid and offer (‘‘BBO’’) of all
displayed orders on the Cboe Equity
Exchange for all standard, nonleveraged U.S. equity Exchange Traded
Funds (‘‘ETFs’’) 12 traded on the
System.13 An ETF’s implied liquidity
disseminated via the proposed feed
would consist of the ETF’s implied BBO
(including the implied size) calculated
via a proprietary methodology based on
the national best bid and offer
(‘‘NBBO’’), the number of shares of
securities underlying one creation unit
of the ETF, and the estimated cash
included in one creation unit of the
ETF.
Similar to as proposed above for the
Cboe One Summary Feed, the Exchange
proposes to amend its fee schedule to
lower the fee for Internal Distribution
and to adopt separate fees for
Professional and Non-Professional
Users.
Distribution Fees. Currently, each
Internal Distributor that receives the
ETF Implied Liquidity Feed is charged
a fee of $5,000 per month. The Exchange
now proposes to lower the fee for
Internal Distribution to $1,500 per
month. Like it does for External
Distributors today, the Exchange
proposes to waive the Distribution fee
for Internal Distributors of the ETF
Implied Liquidity Feed that also receive
the Cboe One Feed. The ETF Implied
Liquidity Feed and the Cboe One Feed
are similar in that both include the
12 The securities underlying each of the U.S.
equity ETFs included in the feed must be
considered NMS Securities as defined under Rule
600(b)(46) of Regulation NMS. 17 CFR
242.600(b)(46).
13 See Exchange Rule 11.22(n). See also Securities
Exchange Act Release No. 80580 (May 3, 2017) (SR–
BatsBZX–2017–25) (Notice of Filing and Immediate
Effectiveness of a Proposed Rule Change to Amend
Rule 11.22, Data Products, to Adopt a New Market
Data Product Known as the ETF Implied Liquidity
Feed).
VerDate Sep<11>2014
00:05 Jan 11, 2018
Jkt 244001
aggregate BBO for all displayed orders
on the Cboe Equity Exchanges. The key
difference here is that the ETF Implied
Liquidity Feed also contains the
Exchange’s proprietary calculation of
the ETF’s implied liquidity. As such,
the Exchange believes it is reasonable to
waive the Distributor fee for Internal
Distributors of the ETF Implied
Liquidity Feed where that Internal
Distributor also receives and is charged
the Internal Distributor fee for the Cboe
One Feed. The Exchange notes that the
proposed lower Internal Distribution fee
for the ETF Implied Liquidity Feed of
$1,500 per month would equal the
proposed Internal Distribution fee for
Cboe One Summary and less than the
existing $15,000 per month Internal
Distribution fee for Cboe One Premium.
User Fees. Like it does today for
External Distributors, the Exchange
proposes to charge per User fees to
Internal Distributors that receive the
ETF Implied Liquidity Feed. The
Exchange currently charges External
Distributors that redistribute the ETF
Implied Liquidity Feed different fees for
their Professional Users and NonProfessional Users. Those fees are
$25.00 per month for each Professional
Users and $1.00 per month for each
Non-Professional Users. To date, the
Exchange has not charged per User fees
to Internal Distributors. To offset the
proposed reduction to the monthly
Internal Distribution fee, the Exchange
proposes to adopt per User fees for
Internal Distribution, the amounts of
each would be the same as the per User
fees currently charged to External
Distributors.
User Count Policy
Like External Distributors of the Cboe
One Summary Feed and the ETF
Implied Liquidity Feed, Internal
Distributors that receive the Cboe One
Summary Feed and/or ETF Implied
Liquidity Feed will be required to count
every Professional User and NonProfessional User to which they provide
the Cboe One Summary Feed and/or
ETF Implied Liquidity Feed, the
requirements for which are identical to
that currently in place for External
Distributors of the Cboe One Summary
Feed and ETF Implied Liquidity Feed,
as well as other market data products
offered by the Exchange.14 Thus, the
14 See Securities Exchange Act Release Nos.
74285 (February 18, 2015); 80 FR 9828 (February
24, 2015) (SR–BATS–2015–11) (proposing fees for
the Cboe One Feed); 75406 (July 9, 2015), 80 FR
41522 (July 15, 2015) (SR–BATS–2015–48)
(proposing user fees for the BZX Top and Last Sale
data feeds); 75785 (August 28, 2015), 80 FR 53360
(September 3, 2015) (SR–BATS–2015–64)
(proposing fees for BZX Book Viewer); and 79636
PO 00000
Frm 00067
Fmt 4703
Sfmt 4703
1393
Internal Distributor’s count will include
every person and device that accesses
the data regardless of the purpose for
which the individual or device uses the
data. Internal Distributors must report
all Professional and Non-Professional
Users in accordance with the following:
• In connection with an Internal
Distributor’s distribution of the Cboe
One Summary Feed and/or ETF Implied
Liquidity Feed, the Internal Distributor
must count as one User each unique
User that the Internal Distributor has
entitled to have access to the Cboe One
Summary Feed and/or ETF Implied
Liquidity Feed. However, where a
device is dedicated specifically to a
single individual, the Internal
Distributor must count only the
individual and need not count the
device.
• The Internal Distributor must
identify and report each unique User. If
a User uses the same unique method to
gain access to the Cboe One Summary
Feed and/or ETF Implied Liquidity
Feed, the Internal Distributor must
count that as one User. However, if a
unique User uses multiple methods to
gain access to the Cboe One Summary
Feed and/or the ETF Implied Liquidity
Feed (e.g., a single User has multiple
passwords and user identifications), the
Internal Distributor must report each of
those methods as an individual User.
• Internal Distributors must report
each unique individual person who
receives access through multiple
devices as one User so long as each
device is dedicated specifically to that
individual.
• If an Internal Distributor entitles
one or more individuals to use the same
device, the Distributor must include
only the individuals, and not the device,
in the count.
Implementation Date
The Exchange intends to implement
the proposed fees on January 2, 2018.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the objectives of Section 6 of the Act,15
in general, and furthers the objectives of
Section 6(b)(4),16 in particular, as it is
designed to provide for the equitable
allocation of reasonable dues, fees and
other charges among its members and
other recipients of Exchange data. The
Exchange believes that the proposed
rates are equitable and nondiscriminatory in that they apply
(December 21, 2016), 81 FR 95693 (December 28,
2016) (SR–BatsBZX–2016–87) (proposing fees for
BZX Summary Depth).
15 15 U.S.C. 78f.
16 15 U.S.C. 78f(b)(4).
E:\FR\FM\11JAN1.SGM
11JAN1
srobinson on DSK9F5VC42PROD with NOTICES
1394
Federal Register / Vol. 83, No. 8 / Thursday, January 11, 2018 / Notices
uniformly to all recipients of Exchange
data. The Exchange believes the
proposed fees are competitive with
those charged by other venues and,
therefore, reasonable and equitably
allocated to recipients.
The Exchange believes that the
proposed rule change is consistent with
Section 11(A) of the Act 17 in that it
supports (i) fair competition among
brokers and dealers, among exchange
markets, and between exchange markets
and markets other than exchange
markets and (ii) the availability to
brokers, dealers, and investors of
information with respect to quotations
for and transactions in securities.
Furthermore, the proposed rule change
is consistent with Rule 603 of
Regulation NMS,18 which provides that
any national securities exchange that
distributes information with respect to
quotations for or transactions in an NMS
stock do so on terms that are not
unreasonably discriminatory. In
adopting Regulation NMS, the
Commission granted self-regulatory
organizations and broker-dealers
increased authority and flexibility to
offer new and unique market data to the
public. It was believed that this
authority would expand the amount of
data available to consumers, and also
spur innovation and competition for the
provision of market data.
In addition, the proposed fees would
not permit unfair discrimination
because all of the Exchange’s customers
and market data vendors who subscribe
to the Cboe One Summary Feed and
ETF Implied Liquidity Feed will be
subject to the proposed fees. The Cboe
One Summary Feed and ETF Implied
Liquidity Feed are distributed and
purchased on a voluntary basis, in that
neither the Exchange nor market data
distributors are required by any rule or
regulation purchase this data or to make
this data available. Accordingly,
Distributors and Users can discontinue
use at any time and for any reason,
including due to an assessment of the
reasonableness of fees charged. Firms
have a wide variety of alternative
market data products from which to
choose, such as similar proprietary data
products offered by other exchanges and
consolidated data. Moreover, the
Exchange is not required to make any
proprietary data products available or to
offer any specific pricing alternatives to
any customers.
In addition, the fees that are the
subject of this rule filing are constrained
by competition. As explained below in
the Exchange’s Statement on Burden on
17 15
18 17
U.S.C. 78k–1.
CFR 242.603.
VerDate Sep<11>2014
00:05 Jan 11, 2018
Jkt 244001
Competition, the existence of
alternatives to the Cboe One Summary
Feed and ETF Implied Liquidity Feed
further ensure that the Exchange cannot
set unreasonable fees, or fees that are
unreasonably discriminatory, when
vendors and subscribers can elect such
alternatives. That is, the Exchange
competes with other exchanges (and
their affiliates) that provide similar
market data products. For example, the
Cboe One Summary Feed and/or ETF
Implied Liquidity Feed provides
investors with alternative market data
and competes with similar market data
product currently offered by other
exchanges. If another exchange (or its
affiliate) were to charge less to distribute
its similar product than the Exchange
charges to create the Cboe One
Summary Feed and/or ETF Implied
Liquidity Feed, prospective Users likely
would not subscribe to, or would cease
subscribing to either market data
product.
The Exchange notes that the
Commission is not required to
undertake a cost-of-service or ratemaking approach. The Exchange
believes that, even if it were possible as
a matter of economic theory, cost-based
pricing for non-core market data would
be so complicated that it could not be
done practically.19
The Exchange believes that lowering
the Internal Distribution fee for both the
Cboe One Summary Feed and the ETF
19 The Exchange believes that cost-based pricing
would be impractical because it would create
enormous administrative burdens for all parties,
including the Commission, to cost-regulate a large
number of participants and standardize and analyze
extraordinary amounts of information, accounts,
and reports. In addition, it is impossible to regulate
market data prices in isolation from prices charged
by markets for other services that are joint products.
Cost-based rate regulation would also lead to
litigation and may distort incentives, including
those to minimize costs and to innovate, leading to
further waste. Under cost-based pricing, the
Commission would be burdened with determining
a fair rate of return, and the industry could
experience frequent rate increases based on
escalating expense levels. Even in industries
historically subject to utility regulation, cost-based
ratemaking has been discredited. As such, the
Exchange believes that cost-based ratemaking
would be inappropriate for proprietary market data
and inconsistent with Congress’s direction that the
Commission use its authority to foster the
development of the national market system, and
that market forces will continue to provide
appropriate pricing discipline. See Appendix C to
NYSE’s comments to the Commission’s 2000
Concept Release on the Regulation of Market
Information Fees and Revenues, which can be
found on the Commission’s website at https://
www.sec.gov/rules/concept/s72899/buck1.htm. See
also Securities Exchange Act Release No. 73816
(December 11, 2014), 79 FR 75200 (December 17,
2014) (SR–NYSE–2014–64) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change
to Establish an Access Fee for the NYSE Best Quote
and Trades Data Feed, Operative December 1,
2014).
PO 00000
Frm 00068
Fmt 4703
Sfmt 4703
Implied Liquidity Feed is equitable and
reasonable because the lower fee
coupled with the adoption of per User
fees is designed to provide a price
structure for Internal Distributors that is
competitive and attracts additional
subscribers to each market data feed.
The Exchange also believes that it is
reasonable to charge a lower fee to
Internal Distributors than External
Distributors because External
Distributors redistribute the data to their
subscribers for a fee while Internal
Distributors do not.
The Exchange believes it is reasonable
to waive the Distributor fee for Internal
Distributors of the ETF Implied
Liquidity Feed that also receive the
Cboe One Feed as both include the
aggregate BBO for all displayed orders
on the Cboe Equity Exchanges and an
identical waiver is currently granted to
External Distributors. The key difference
here is that the ETF Implied Liquidity
Feed also contains the Exchange’s
proprietary calculation of the ETF’s
implied liquidity. Waiver of the
Distributor fee for Internal Distributors
that also receive and pay the Internal
Distributor for the Cboe One Feed is
equitable and reasonable because those
Internal Distributors are being charged
the Internal Distributor fees for the Cboe
One Feed, which would be charged the
proposed rate of $1,500 per month for
Cboe One Summary and the existing
rate of $15,000 per month for Cboe One
Premium. The fee waiver here is
equitable due to both products
providing the same key data element—
the aggregated BBO of the Cboe Equity
Exchanges. While the ETF Implied
Liquidity Feed also includes the
Exchange’s proprietary calculation of an
ETF’s implied liquidity, the Exchange
notes that Internal Distributors of the
ETF Implied Liquidity Feed would now
be subject to the per User fees.
Therefore, the Exchange believes it is
equitable and reasonable to waive the
Internal Distributor fees in such case.
The Exchange did not previously extend
this waiver to Internal Distributors
because Internal Distributors of the Cboe
One Feed were not charged User fees
like External Distributors. Since that is
no longer the case, the Exchange
believes it is reasonable to extend the
waiver to Internal Distributors as
proposed herein.
The Exchange believes that
implementing the Professional and NonProfessional User fees for the Cboe One
Summary Feed and the ETF Implied
Liquidity Feed are equitable and
reasonable because they will result in
greater availability to Professional and
Non-Professional Users. The addition of
per User fees also enables the fee for
E:\FR\FM\11JAN1.SGM
11JAN1
Federal Register / Vol. 83, No. 8 / Thursday, January 11, 2018 / Notices
srobinson on DSK9F5VC42PROD with NOTICES
Internal Distribution, thereby lowering
their overall costs where the number of
Users they account for is low. Moreover,
introducing a modest Non-Professional
User fee is reasonable because it
provides an additional method for NonProfessional investors to access the data
by providing the same data that is
available to Professional Users. The
Exchange believes that the proposed
fees are equitable and not unfairly
discriminatory because they will be
charged uniformly to Internal
Distributors and Users. The Exchange
notes that the amount of the per User
fees for Internal Distribution equal those
charged for External Distribution for
both the Cboe One Summary Feed and
ETF Implied Liquidity Feed.
The fee structure of differentiated
Professional and Non-Professional fees
is utilized by the Exchange for the Cboe
One Feed and has long been used by
other exchanges for their proprietary
data products, and by the Nasdaq UTP
and the CTA and CQ Plans in order to
reduce the price of data to retail
investors and make it more broadly
available.20 Offering the Cboe One
Summary Feed and ETF Implied
Liquidity Feed to Non-Professional
Users with the same data available to
Professional Users results in greater
equity among data recipients.
The proposed expansion of the
Enterprise Fee to Internal Distributors of
the Cboe One Summary Feed is
reasonable because it could result in a
fee reduction for Internal Distributors
with a large number of Professional and
Non-Professional Users. If an Internal
Distributor has a smaller number of
Professional Users of the Cboe One
Summary Feed, then it may continue
using the per User structure. By
reducing prices for Internal Distributors
with a large number of Professional and
Non-Professional Users, the Exchange
believes that more Internal Distributors
may choose to receive and to distribute
the Cboe One Summary Feed, thereby
expanding the distribution of this
market data for the benefit of investors.
The Exchange further believes that the
proposed Enterprise Fee is reasonable
because it will simplify reporting for
certain Internal Distributors that have
large numbers of Professional and Non20 See Securities Exchange Act Release Nos.
74285 (February 18, 2015), 80 FR 9828 (February
24, 2015) (SR–BATS–2015–11); 74283 (February 18,
2015), 80 FR 9809 (February 24, 2015) (SR–EDGA–
2015–09); 74282 (February 17, 2015), 80 FR 9487
(February 23, 2015) (SR–EDGX–2015–09); and
74284 (February 18, 2015), 80 FR 9792 (February
24, 2015) (SR–BYX–2015–09) (‘‘Initial Cboe One
Feed Fee Filings’’). See also, e.g., Securities
Exchange Act Release No. 20002, File No. S7–433
(July 22, 1983) (establishing nonprofessional fees
for CTA data); and Nasdaq Rules 7023(b) and 7047.
VerDate Sep<11>2014
00:05 Jan 11, 2018
Jkt 244001
Professional Users. Internal Distributors
that pay the proposed Enterprise Fee
will not have to report the number of
Users on a monthly basis as they
currently do, but rather will only have
to count natural person users every six
months, which is a significant reduction
in administrative burden. Finally, the
Exchange believes that it is equitable
and not unfairly discriminatory to
establish an Enterprise Fee because it
reduces the Exchange’s costs and the
Distributor’s administrative burdens in
tracking and auditing large numbers of
Users.
(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, as amended.
The Exchange’s ability to price the Cboe
One Summary Feed and the ETF
Implied Liquidity Feed is constrained
by: (i) Competition among exchanges,
other trading platforms, and Trade
Reporting Facilities (‘‘TRF’’) that
compete with each other in a variety of
dimensions; (ii) the existence of
inexpensive real-time consolidated data
and market-specific data and free
delayed data; and (iii) the inherent
contestability of the market for
proprietary data.
The Exchange and its market data
products are subject to significant
competitive forces and the proposed
fees represent responses to that
competition. To start, the Exchange
competes intensely for order flow. It
competes with the other national
securities exchanges that currently trade
equities, with electronic communication
networks, with quotes posted in
FINRA’s Alternative Display Facility,
with alternative trading systems, and
with securities firms that primarily
trade as principal with their customer
order flow. The Cboe One Summary
Feed will enhance competition because
it not only provides content that is
competitive with the similar products
offered by other exchanges, but will
provide pricing that is competitive as
well. The Cboe One Summary Feed
provides investors with an alternative
option for receiving market data and
competes directly with similar market
data products currently offered by the
NYSE and Nasdaq.21
21 See Nasdaq Basic, https://
www.nasdaqtrader.com/Trader.aspx?
id=nasdaqbasic (data feed offering the BBO and
Last Sale information for all U.S. exchange-listed
securities based on liquidity within the Nasdaq
market center, as well as trades reported to the
FINRA/Nasdaq Trade Reporting Facility
PO 00000
Frm 00069
Fmt 4703
Sfmt 4703
1395
In addition, when establishing the
proposed fees, the Exchange considered
the competitiveness of the market for
proprietary data and all of the
implications of that competition. The
Exchange believes that it has considered
all relevant factors and has not
considered irrelevant factors in order to
establish fair, reasonable, and not
unreasonably discriminatory fees and an
equitable allocation of fees among all
Users. The existence of alternatives to
the Cboe One Summary Feed and the
ETF Implied Liquidity Feed ensures that
the Exchange cannot set unreasonable
fees, or fees that are unreasonably
discriminatory, when vendors and
subscribers can elect these alternatives
or choose not to purchase a specific
proprietary data product if its cost to
purchase is not justified by the returns
any particular vendor or subscriber
would achieve through the purchase.
Lastly, the Exchange represents that
the proposed pricing of the Cboe One
Summary Feed and the ETF Implied
Liquidity Feed provides investors with
alternative market data and competes
with similar market data product
currently offered by other exchanges.22
In addition, the Exchange notes the
concerns regarding whether a competing
vendor could create a similar product
on the same price basis as the Exchange
(‘‘TRF’’));Nasdaq NLS Plus, https://
www.nasdaqtrader.com/Trader.aspx?id=NLSplus
(data feed providing last sale data as well as
consolidated volume from the following Nasdaq
OMX markets for U.S. exchange-listed securities:
Nasdaq, FINRA/Nasdaq TRF, Nasdaq OMX BX, and
Nasdaq OMX PSX); Securities Exchange Act
Release No. 73553 (November 6, 2014), 79 FR 67491
(November 13, 2014) (SR–NYSE–2014–40) (Notice
of Amendment No. 1 and Order Granting
Accelerated Approval to a Proposed Rule Change,
as Modified by Amendment No.1, To Establish the
NYSE Best Quote & Trades (‘‘BQT’’) Data Feed);
https://www.nyse.com/market-data/real-time/nysebqt (data feed providing unified view of BBO and
last sale information for the NYSE, NYSE Arca, and
NYSE MKT).
22 Id. See also Nasdaq’s Global Index Data Service
(‘‘GIDS’’) available at https://business.nasdaq.com/
intel/indexes/index-data/#!/tcm:504412151 (providing on a real-time basis intraday
portfolio values, daily valuation information, such
as NAV per Share, estimated cash per Share,
estimated cash per creation unit, total cash per
creation unit and total shares outstanding of the
fund and ETF directory messages designed to
provide the symbols of the ETF valuations). See
footnote 28 of Securities Exchange Act Release No.
77714 (April 26, 2016), 81 FR 26281 (May 2, 2016)
(describing Nasdaq’s GIDS within the order
approving SR–Nasdaq–2016–028). See also footnote
29 of Securities Exchange Act Release No. 78592
(August 16, 2016), 81 FR 56729 (August 22, 2016)
(describing Nasdaq’s GIDS within the order
approving SR–Nasdaq–2016–061). See, e.g., the
NYSE Arca, Inc.’s (‘‘NYSE Arca’’) EOD ETF Report
available at https://www.nyxdata.com/DataProducts/NYSE-Arca-EOD-ETF-Report (providing
information such as the ETF’s closing trades and
quotes at different key points during the trading
day, as well referential information such as shares
outstanding, the primary market, and NAV).
E:\FR\FM\11JAN1.SGM
11JAN1
1396
Federal Register / Vol. 83, No. 8 / Thursday, January 11, 2018 / Notices
are not present here. The proposed
changes are limited to fees for Internal
Distributers who use the data for
internal use only and not for the
redistribution and sale to external
parties.
(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
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 23 and paragraph (f) of Rule
19b–4 thereunder.24 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.
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:
srobinson on DSK9F5VC42PROD with NOTICES
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–
CboeBZX–2017–019 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE, Washington, DC 20549–1090.
All submissions should refer to File
Number SR–CboeBZX–2017–019. 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 website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
23 15
24 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
VerDate Sep<11>2014
00:05 Jan 11, 2018
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–2017–019 and
should be submitted on or before
February 1, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.25
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–00309 Filed 1–10–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release Nos. 33–10451; 34–82455; IA–
4842; IC–32963]
Adjustments to Civil Monetary Penalty
Amounts
Securities and Exchange
Commission.
ACTION: Notice of annual inflation
adjustment of civil monetary penalties.
I. Background
This notice is being published
pursuant to the 2015 Act,1 which
amended the Federal Civil Penalties
Inflation Adjustment Act of 1990 (the
‘‘Inflation Adjustment Act’’).2 The
Inflation Adjustment Act previously had
been amended by the Debt Collection
Improvement Act of 1996 (the ‘‘DCIA’’) 3
to require that each federal agency adopt
regulations at least once every four years
that adjust for inflation the CMPs that
can be imposed under the statutes
administered by the agency. Pursuant to
this requirement, the Commission
previously adopted regulations in 1996,
2001, 2005, 2009, and 2013 to adjust the
maximum amount of the CMPs that
could be imposed under the statutes the
Commission administers.4
The 2015 Act replaces the inflation
adjustment formula prescribed in the
DCIA with a new formula for calculating
the inflation-adjusted amount of CMPs.
The 2015 Act requires that agencies use
this new formula to re-calculate the
inflation-adjusted amounts of the
AGENCY:
The Securities and Exchange
Commission (the ‘‘Commission’’) is
publishing this notice pursuant to the
Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015 (the ‘‘2015 Act’’). This Act requires
all agencies to annually adjust for
inflation the civil monetary penalties
that can be imposed under the statutes
administered by the agency and publish
the adjusted amounts in the Federal
Register. This notice sets forth the
annual inflation adjustment of the
maximum amount of civil monetary
penalties (‘‘CMPs’’) administered by the
Commission under the Securities Act of
1933, the Securities Exchange Act of
SUMMARY:
25 17
Jkt 244001
1934 (the ‘‘Exchange Act’’), the
Investment Company Act of 1940, the
Investment Advisers Act of 1940, and
certain penalties under the SarbanesOxley Act of 2002. These amounts are
effective beginning on January 15, 2018,
and will apply to all penalties imposed
after that date for violations of the
aforementioned statutes that occurred
after November 2, 2015.
FOR FURTHER INFORMATION CONTACT:
James A. Cappoli, Assistant General
Counsel, Office of the General Counsel,
at (202) 551–7923, or Stephen M. Ng,
Senior Special Counsel, Office of the
General Counsel, at (202) 551–7957.
SUPPLEMENTARY INFORMATION:
PO 00000
CFR 200.30–3(a)(12).
Frm 00070
Fmt 4703
Sfmt 4703
1 Public Law 114–74 Sec. 701, 129 Stat. 599–601
(Nov. 2, 2015), codified at 28 U.S.C. 2461 note.
2 Public Law 101–410, 104 Stat. 890–892 (1990),
codified at 28 U.S.C. 2461 note.
3 Public Law 104–134, Title III, § 31001(s)(1), 110
Stat. 1321–373 (1996), codified at 28 U.S.C. 2461
note.
4 See Release Nos. 33–7361, 34–37912, IA–1596,
IC–22310, dated November 1, 1996 (effective
December 9, 1996), previously found at 17 CFR
201.1001 and Table I to Subpart E of Part 201;
Release Nos. 33–7946, 34–43897, IA–1921, IC–
24846, dated January 31, 2001 (effective February
2, 2001), previously found at 17 CFR 201.1002 and
Table II to Subpart E of Part 201; Release Nos. 33–
8530, 34–51136, IA–2348, IC–26748, dated
February 9, 2005 (effective February 14, 2005),
previously found at 17 CFR 201.1003 and Table III
to Subpart E of Part 201; Release Nos. 33–9009, 34–
59449, IA–2845, IC–28635, dated February 25, 2009
(effective March 3, 2009), previously found at 17
CFR 201.1004 and Table IV to Subpart E of Part 201;
and Release Nos. 33–9387, 34–68994, IA–3557, IC–
30408, dated February 27, 2013 (effective March 5,
2013), previously found at 17 CFR 201.1005 and
Table V to Subpart E of Part 201. The penalty
amounts contained in these releases have now been
consolidated into Table I to 17 CFR 201.1001.
E:\FR\FM\11JAN1.SGM
11JAN1
]]>Agencies
[Federal Register Volume 83, Number 8 (Thursday, January 11, 2018)]
[Notices]
[Pages 1391-1396]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-00309]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-82450; File No. SR-CboeBZX-2017-019]
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Related to
Market Data Fees
January 5, 2018.
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 December 28, 2017, Cboe BZX Exchange, Inc. (the
[[Page 1392]]
``Exchange'' or ``BZX'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I, II and III below, which Items have been prepared by the
Exchange. The Exchange has designated the proposed rule change as one
establishing or changing a member due, fee, or other charge imposed by
the Exchange under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-
4(f)(2) thereunder,\4\ which renders the proposed rule change effective
upon filing with the Commission. 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.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange filed a proposal to amend the Market Data section of
its fee schedule to lower the Internal Distribution \5\ fees and to
adopt per User fees for two market data products, the Cboe One Summary
Feed and the ETF Implied Liquidity Feed.
---------------------------------------------------------------------------
\5\ A ``Distributor'' is defined as ``any entity that receives
the Exchange Market Data product directly from the Exchange or
indirectly through another entity and then distributes it internally
or externally to a third party.'' See the Exchange's fee schedule
available at https://markets.cboe.com/us/equities/membership/fee_schedule/bzx/. An ``Internal Distributor'' is defined as ``a
Distributor that receives the Exchange Market Data product and then
distributes that data to one or more Users within the Distributor's
own entity.'' Id.
---------------------------------------------------------------------------
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 amend the Market Data section of its fee
schedule to lower the fee for Internal Distribution and to adopt
separate fees for Professional \6\ and Non-Professional Users \7\ for
the Cboe One Summary Feed and the ETF Implied Liquidity Feed.\8\
---------------------------------------------------------------------------
\6\ A ``Professional User'' is defined as ``any User other than
a Non-Professional User.'' See the Exchange's fee schedule available
at https://markets.cboe.com/us/equities/membership/fee_schedule/bzx/.
\7\ A ``Non-Professional User'' is currently defined as ``a
natural person who is not: (i) Registered or qualified in any
capacity with the Commission, the Commodity Futures Trading
Commission, any state securities agency, any securities exchange or
association, or any commodities or futures contract market or
association; (ii) engaged as an ``investment adviser'' as that term
is defined in Section 202(a)(11) of the Investment Advisers Act of
1940 (whether or not registered or qualified under that Act); or
(iii) employed by a bank or other organization exempt from
registration under federal or state securities laws to perform
functions that would require registration or qualification if such
functions were performed for an organization not so exempt.'' Id.
See SR-CboeBZX-2017-016 (filed December 15, 2017) (amending the
definition of Non-Professional User to harmonize it with that of its
affiliate exchanges, Cboe Exchange, Inc. and C2 Exchange, Inc. as of
January 2, 2018).
\8\ This Exchange initially filed the proposed rule change on
December 15, 2017 (SR-CboeBZX-2017-017). On December 18, 2018 the
Exchange withdrew SR-CboeBZX-2017-017 and submitted this filing.
---------------------------------------------------------------------------
Cboe One Feed
The Cboe One Feed is an optional data feed that disseminates, on a
real-time basis, the aggregate best bid and offer (``BBO'') of all
displayed orders for securities traded on BZX and its affiliated
exchanges \9\ and for which they report quotes under the Consolidated
Tape Association (``CTA'') Plan or the Nasdaq/UTP Plan.\10\ The Cboe
One Feed also contains the individual last sale information for the
Cboe Equity Exchanges (collectively with the aggregate BBO, the ``Cboe
One Summary Feed''). In addition, the Cboe One Feed contains optional
functionality which enables recipients to receive aggregated two-sided
quotations from the Cboe Equity Exchanges for up to five (5) price
levels (``Cboe One Premium Feed'').
---------------------------------------------------------------------------
\9\ BZX's affiliated exchanges are Cboe EDGA Exchange, Inc.
(``EDGA''), Cboe EDGX Exchange, Inc. (``EDGX''), and Cboe BYX
Exchange, Inc. (``BYX'', together with EDGX, EDGA, and BZX, the
``Cboe Equity Exchanges'').
\10\ See Exchange Rule 11.22(j). See also Securities Exchange
Act Release No. 73918 (December 23, 2014), 79 FR 78920 (December 31,
2014) (File Nos. SR-EDGX-2014-25; SR-EDGA-2014-25; SR-BATS-2014-055;
SR-BYX-2014-030) (Notice of Amendment No. 2 and Order Granting
Accelerated Approval to Proposed Rule Changes, as Modified by
Amendments Nos. 1 and 2, to Establish a New Market Data Product
called the Cboe One Feed) (``Cboe One Approval Order'').
---------------------------------------------------------------------------
The Exchange proposes to amend its fee schedule to lower the fee
for Internal Distribution for the Cboe One Summary Feed and to adopt
separate fees for Professional and Non-Professional Users.\11\ The
Exchange does not propose to amend the fees for the Cboe One Premium
Feed.
---------------------------------------------------------------------------
\11\ The Exchange also proposes a non-substantive, immaterial
change to the fee table headings to conform to other heading within
the Market Data Section of the fee schedule. In particular, the
Exchange proposes to change the term ``Distributor'' to
``Distribution'' in both the Internal Distributor and External
Distributor headings under the Cboe One Feed.
---------------------------------------------------------------------------
Distribution Fees. Currently, each Internal Distributor that
receives the Cboe One Summary Feed is charged a fee of $10,000 per
month. The Exchange now proposes to lower the fee for Internal
Distribution to $1,500 per month.
User Fees. Like it does today for External Distributors, the
Exchange proposes to adopt per User fees for Internal Distributors that
receive the Cboe One Summary Feed. The Exchange currently charges
External Distributors that redistribute the Cboe One Summary Feed
different fees for their Professional Users and Non-Professional Users.
Those fees are $10.00 per month for each Professional Users and $0.25
per month for each Non-Professional Users. To date, the Exchange has
not charged per User fees to Internal Distributors for the Cboe One
Summary Feed. To offset the proposed reduction to the monthly Internal
Distribution fee, the Exchange proposes to adopt per User fees for
Internal Distribution, the amounts of each fee would be the same as the
per User fees currently charged to External Distributors described
above.
The Exchange also proposes to extend the current $50,000 per month
Enterprise Fee available to External Distributors of the Cboe One
Summary Feed to Internal Distributors. In lieu of per User fees, the
Enterprise fee will permit Internal Distributors who redistribute the
Cboe One Summary Feed to an unlimited number of internal Professional
and Non-Professional Users for a set fee of $50,000 per month. For
example, if an Internal Distributor had 15,000 Professional Users who
each receive the Cboe One Summary Feed at $10.00 per month, then that
Internal Distributor will pay $150,000 per month in Professional Users
fees. Under the proposed Enterprise Fee, the Internal Distributor will
pay a flat fee of $50,000 for an unlimited number of internal
[[Page 1393]]
Professional and Non-Professional Users of the Cboe One Summary Feed.
An Internal Distributor that pays the Enterprise Fee will not have to
report its number of such Users (as set forth below) on a monthly
basis. However, every six months, an Internal Distributor must provide
the Exchange with a count of the total number of natural person users
of each product, including both Professional and Non-Professional
Users. Like for External Distributors, the Enterprise Fee for Internal
Distributors would be in addition to the applicable Distribution Fee.
ETF Implied Liquidity Feed
The ETF Implied Liquidity feed is an optional data feed that
provides the Exchange's proprietary calculation of the implied
liquidity and the aggregate best bid and offer (``BBO'') of all
displayed orders on the Cboe Equity Exchange for all standard, non-
leveraged U.S. equity Exchange Traded Funds (``ETFs'') \12\ traded on
the System.\13\ An ETF's implied liquidity disseminated via the
proposed feed would consist of the ETF's implied BBO (including the
implied size) calculated via a proprietary methodology based on the
national best bid and offer (``NBBO''), the number of shares of
securities underlying one creation unit of the ETF, and the estimated
cash included in one creation unit of the ETF.
---------------------------------------------------------------------------
\12\ The securities underlying each of the U.S. equity ETFs
included in the feed must be considered NMS Securities as defined
under Rule 600(b)(46) of Regulation NMS. 17 CFR 242.600(b)(46).
\13\ See Exchange Rule 11.22(n). See also Securities Exchange
Act Release No. 80580 (May 3, 2017) (SR-BatsBZX-2017-25) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change to
Amend Rule 11.22, Data Products, to Adopt a New Market Data Product
Known as the ETF Implied Liquidity Feed).
---------------------------------------------------------------------------
Similar to as proposed above for the Cboe One Summary Feed, the
Exchange proposes to amend its fee schedule to lower the fee for
Internal Distribution and to adopt separate fees for Professional and
Non-Professional Users.
Distribution Fees. Currently, each Internal Distributor that
receives the ETF Implied Liquidity Feed is charged a fee of $5,000 per
month. The Exchange now proposes to lower the fee for Internal
Distribution to $1,500 per month. Like it does for External
Distributors today, the Exchange proposes to waive the Distribution fee
for Internal Distributors of the ETF Implied Liquidity Feed that also
receive the Cboe One Feed. The ETF Implied Liquidity Feed and the Cboe
One Feed are similar in that both include the aggregate BBO for all
displayed orders on the Cboe Equity Exchanges. The key difference here
is that the ETF Implied Liquidity Feed also contains the Exchange's
proprietary calculation of the ETF's implied liquidity. As such, the
Exchange believes it is reasonable to waive the Distributor fee for
Internal Distributors of the ETF Implied Liquidity Feed where that
Internal Distributor also receives and is charged the Internal
Distributor fee for the Cboe One Feed. The Exchange notes that the
proposed lower Internal Distribution fee for the ETF Implied Liquidity
Feed of $1,500 per month would equal the proposed Internal Distribution
fee for Cboe One Summary and less than the existing $15,000 per month
Internal Distribution fee for Cboe One Premium.
User Fees. Like it does today for External Distributors, the
Exchange proposes to charge per User fees to Internal Distributors that
receive the ETF Implied Liquidity Feed. The Exchange currently charges
External Distributors that redistribute the ETF Implied Liquidity Feed
different fees for their Professional Users and Non-Professional Users.
Those fees are $25.00 per month for each Professional Users and $1.00
per month for each Non-Professional Users. To date, the Exchange has
not charged per User fees to Internal Distributors. To offset the
proposed reduction to the monthly Internal Distribution fee, the
Exchange proposes to adopt per User fees for Internal Distribution, the
amounts of each would be the same as the per User fees currently
charged to External Distributors.
User Count Policy
Like External Distributors of the Cboe One Summary Feed and the ETF
Implied Liquidity Feed, Internal Distributors that receive the Cboe One
Summary Feed and/or ETF Implied Liquidity Feed will be required to
count every Professional User and Non-Professional User to which they
provide the Cboe One Summary Feed and/or ETF Implied Liquidity Feed,
the requirements for which are identical to that currently in place for
External Distributors of the Cboe One Summary Feed and ETF Implied
Liquidity Feed, as well as other market data products offered by the
Exchange.\14\ Thus, the Internal Distributor's count will include every
person and device that accesses the data regardless of the purpose for
which the individual or device uses the data. Internal Distributors
must report all Professional and Non-Professional Users in accordance
with the following:
---------------------------------------------------------------------------
\14\ See Securities Exchange Act Release Nos. 74285 (February
18, 2015); 80 FR 9828 (February 24, 2015) (SR-BATS-2015-11)
(proposing fees for the Cboe One Feed); 75406 (July 9, 2015), 80 FR
41522 (July 15, 2015) (SR-BATS-2015-48) (proposing user fees for the
BZX Top and Last Sale data feeds); 75785 (August 28, 2015), 80 FR
53360 (September 3, 2015) (SR-BATS-2015-64) (proposing fees for BZX
Book Viewer); and 79636 (December 21, 2016), 81 FR 95693 (December
28, 2016) (SR-BatsBZX-2016-87) (proposing fees for BZX Summary
Depth).
---------------------------------------------------------------------------
In connection with an Internal Distributor's distribution
of the Cboe One Summary Feed and/or ETF Implied Liquidity Feed, the
Internal Distributor must count as one User each unique User that the
Internal Distributor has entitled to have access to the Cboe One
Summary Feed and/or ETF Implied Liquidity Feed. However, where a device
is dedicated specifically to a single individual, the Internal
Distributor must count only the individual and need not count the
device.
The Internal Distributor must identify and report each
unique User. If a User uses the same unique method to gain access to
the Cboe One Summary Feed and/or ETF Implied Liquidity Feed, the
Internal Distributor must count that as one User. However, if a unique
User uses multiple methods to gain access to the Cboe One Summary Feed
and/or the ETF Implied Liquidity Feed (e.g., a single User has multiple
passwords and user identifications), the Internal Distributor must
report each of those methods as an individual User.
Internal Distributors must report each unique individual
person who receives access through multiple devices as one User so long
as each device is dedicated specifically to that individual.
If an Internal Distributor entitles one or more
individuals to use the same device, the Distributor must include only
the individuals, and not the device, in the count.
Implementation Date
The Exchange intends to implement the proposed fees on January 2,
2018.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\15\ in general, and
furthers the objectives of Section 6(b)(4),\16\ in particular, as it is
designed to provide for the equitable allocation of reasonable dues,
fees and other charges among its members and other recipients of
Exchange data. The Exchange believes that the proposed rates are
equitable and non-discriminatory in that they apply
[[Page 1394]]
uniformly to all recipients of Exchange data. The Exchange believes the
proposed fees are competitive with those charged by other venues and,
therefore, reasonable and equitably allocated to recipients.
---------------------------------------------------------------------------
\15\ 15 U.S.C. 78f.
\16\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange believes that the proposed rule change is consistent
with Section 11(A) of the Act \17\ in that it supports (i) fair
competition among brokers and dealers, among exchange markets, and
between exchange markets and markets other than exchange markets and
(ii) the availability to brokers, dealers, and investors of information
with respect to quotations for and transactions in securities.
Furthermore, the proposed rule change is consistent with Rule 603 of
Regulation NMS,\18\ which provides that any national securities
exchange that distributes information with respect to quotations for or
transactions in an NMS stock do so on terms that are not unreasonably
discriminatory. In adopting Regulation NMS, the Commission granted
self-regulatory organizations and broker-dealers increased authority
and flexibility to offer new and unique market data to the public. It
was believed that this authority would expand the amount of data
available to consumers, and also spur innovation and competition for
the provision of market data.
---------------------------------------------------------------------------
\17\ 15 U.S.C. 78k-1.
\18\ 17 CFR 242.603.
---------------------------------------------------------------------------
In addition, the proposed fees would not permit unfair
discrimination because all of the Exchange's customers and market data
vendors who subscribe to the Cboe One Summary Feed and ETF Implied
Liquidity Feed will be subject to the proposed fees. The Cboe One
Summary Feed and ETF Implied Liquidity Feed are distributed and
purchased on a voluntary basis, in that neither the Exchange nor market
data distributors are required by any rule or regulation purchase this
data or to make this data available. Accordingly, Distributors and
Users can discontinue use at any time and for any reason, including due
to an assessment of the reasonableness of fees charged. Firms have a
wide variety of alternative market data products from which to choose,
such as similar proprietary data products offered by other exchanges
and consolidated data. Moreover, the Exchange is not required to make
any proprietary data products available or to offer any specific
pricing alternatives to any customers.
In addition, the fees that are the subject of this rule filing are
constrained by competition. As explained below in the Exchange's
Statement on Burden on Competition, the existence of alternatives to
the Cboe One Summary Feed and ETF Implied Liquidity Feed further ensure
that the Exchange cannot set unreasonable fees, or fees that are
unreasonably discriminatory, when vendors and subscribers can elect
such alternatives. That is, the Exchange competes with other exchanges
(and their affiliates) that provide similar market data products. For
example, the Cboe One Summary Feed and/or ETF Implied Liquidity Feed
provides investors with alternative market data and competes with
similar market data product currently offered by other exchanges. If
another exchange (or its affiliate) were to charge less to distribute
its similar product than the Exchange charges to create the Cboe One
Summary Feed and/or ETF Implied Liquidity Feed, prospective Users
likely would not subscribe to, or would cease subscribing to either
market data product.
The Exchange notes that the Commission is not required to undertake
a cost-of-service or rate-making approach. The Exchange believes that,
even if it were possible as a matter of economic theory, cost-based
pricing for non-core market data would be so complicated that it could
not be done practically.\19\
---------------------------------------------------------------------------
\19\ The Exchange believes that cost-based pricing would be
impractical because it would create enormous administrative burdens
for all parties, including the Commission, to cost-regulate a large
number of participants and standardize and analyze extraordinary
amounts of information, accounts, and reports. In addition, it is
impossible to regulate market data prices in isolation from prices
charged by markets for other services that are joint products. Cost-
based rate regulation would also lead to litigation and may distort
incentives, including those to minimize costs and to innovate,
leading to further waste. Under cost-based pricing, the Commission
would be burdened with determining a fair rate of return, and the
industry could experience frequent rate increases based on
escalating expense levels. Even in industries historically subject
to utility regulation, cost-based ratemaking has been discredited.
As such, the Exchange believes that cost-based ratemaking would be
inappropriate for proprietary market data and inconsistent with
Congress's direction that the Commission use its authority to foster
the development of the national market system, and that market
forces will continue to provide appropriate pricing discipline. See
Appendix C to NYSE's comments to the Commission's 2000 Concept
Release on the Regulation of Market Information Fees and Revenues,
which can be found on the Commission's website at https://www.sec.gov/rules/concept/s72899/buck1.htm. See also Securities
Exchange Act Release No. 73816 (December 11, 2014), 79 FR 75200
(December 17, 2014) (SR-NYSE-2014-64) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change to Establish an
Access Fee for the NYSE Best Quote and Trades Data Feed, Operative
December 1, 2014).
---------------------------------------------------------------------------
The Exchange believes that lowering the Internal Distribution fee
for both the Cboe One Summary Feed and the ETF Implied Liquidity Feed
is equitable and reasonable because the lower fee coupled with the
adoption of per User fees is designed to provide a price structure for
Internal Distributors that is competitive and attracts additional
subscribers to each market data feed. The Exchange also believes that
it is reasonable to charge a lower fee to Internal Distributors than
External Distributors because External Distributors redistribute the
data to their subscribers for a fee while Internal Distributors do not.
The Exchange believes it is reasonable to waive the Distributor fee
for Internal Distributors of the ETF Implied Liquidity Feed that also
receive the Cboe One Feed as both include the aggregate BBO for all
displayed orders on the Cboe Equity Exchanges and an identical waiver
is currently granted to External Distributors. The key difference here
is that the ETF Implied Liquidity Feed also contains the Exchange's
proprietary calculation of the ETF's implied liquidity. Waiver of the
Distributor fee for Internal Distributors that also receive and pay the
Internal Distributor for the Cboe One Feed is equitable and reasonable
because those Internal Distributors are being charged the Internal
Distributor fees for the Cboe One Feed, which would be charged the
proposed rate of $1,500 per month for Cboe One Summary and the existing
rate of $15,000 per month for Cboe One Premium. The fee waiver here is
equitable due to both products providing the same key data element--the
aggregated BBO of the Cboe Equity Exchanges. While the ETF Implied
Liquidity Feed also includes the Exchange's proprietary calculation of
an ETF's implied liquidity, the Exchange notes that Internal
Distributors of the ETF Implied Liquidity Feed would now be subject to
the per User fees. Therefore, the Exchange believes it is equitable and
reasonable to waive the Internal Distributor fees in such case. The
Exchange did not previously extend this waiver to Internal Distributors
because Internal Distributors of the Cboe One Feed were not charged
User fees like External Distributors. Since that is no longer the case,
the Exchange believes it is reasonable to extend the waiver to Internal
Distributors as proposed herein.
The Exchange believes that implementing the Professional and Non-
Professional User fees for the Cboe One Summary Feed and the ETF
Implied Liquidity Feed are equitable and reasonable because they will
result in greater availability to Professional and Non-Professional
Users. The addition of per User fees also enables the fee for
[[Page 1395]]
Internal Distribution, thereby lowering their overall costs where the
number of Users they account for is low. Moreover, introducing a modest
Non-Professional User fee is reasonable because it provides an
additional method for Non-Professional investors to access the data by
providing the same data that is available to Professional Users. The
Exchange believes that the proposed fees are equitable and not unfairly
discriminatory because they will be charged uniformly to Internal
Distributors and Users. The Exchange notes that the amount of the per
User fees for Internal Distribution equal those charged for External
Distribution for both the Cboe One Summary Feed and ETF Implied
Liquidity Feed.
The fee structure of differentiated Professional and Non-
Professional fees is utilized by the Exchange for the Cboe One Feed and
has long been used by other exchanges for their proprietary data
products, and by the Nasdaq UTP and the CTA and CQ Plans in order to
reduce the price of data to retail investors and make it more broadly
available.\20\ Offering the Cboe One Summary Feed and ETF Implied
Liquidity Feed to Non-Professional Users with the same data available
to Professional Users results in greater equity among data recipients.
---------------------------------------------------------------------------
\20\ See Securities Exchange Act Release Nos. 74285 (February
18, 2015), 80 FR 9828 (February 24, 2015) (SR-BATS-2015-11); 74283
(February 18, 2015), 80 FR 9809 (February 24, 2015) (SR-EDGA-2015-
09); 74282 (February 17, 2015), 80 FR 9487 (February 23, 2015) (SR-
EDGX-2015-09); and 74284 (February 18, 2015), 80 FR 9792 (February
24, 2015) (SR-BYX-2015-09) (``Initial Cboe One Feed Fee Filings'').
See also, e.g., Securities Exchange Act Release No. 20002, File No.
S7-433 (July 22, 1983) (establishing nonprofessional fees for CTA
data); and Nasdaq Rules 7023(b) and 7047.
---------------------------------------------------------------------------
The proposed expansion of the Enterprise Fee to Internal
Distributors of the Cboe One Summary Feed is reasonable because it
could result in a fee reduction for Internal Distributors with a large
number of Professional and Non-Professional Users. If an Internal
Distributor has a smaller number of Professional Users of the Cboe One
Summary Feed, then it may continue using the per User structure. By
reducing prices for Internal Distributors with a large number of
Professional and Non-Professional Users, the Exchange believes that
more Internal Distributors may choose to receive and to distribute the
Cboe One Summary Feed, thereby expanding the distribution of this
market data for the benefit of investors.
The Exchange further believes that the proposed Enterprise Fee is
reasonable because it will simplify reporting for certain Internal
Distributors that have large numbers of Professional and Non-
Professional Users. Internal Distributors that pay the proposed
Enterprise Fee will not have to report the number of Users on a monthly
basis as they currently do, but rather will only have to count natural
person users every six months, which is a significant reduction in
administrative burden. Finally, the Exchange believes that it is
equitable and not unfairly discriminatory to establish an Enterprise
Fee because it reduces the Exchange's costs and the Distributor's
administrative burdens in tracking and auditing large numbers of Users.
(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, as amended. The
Exchange's ability to price the Cboe One Summary Feed and the ETF
Implied Liquidity Feed is constrained by: (i) Competition among
exchanges, other trading platforms, and Trade Reporting Facilities
(``TRF'') that compete with each other in a variety of dimensions; (ii)
the existence of inexpensive real-time consolidated data and market-
specific data and free delayed data; and (iii) the inherent
contestability of the market for proprietary data.
The Exchange and its market data products are subject to
significant competitive forces and the proposed fees represent
responses to that competition. To start, the Exchange competes
intensely for order flow. It competes with the other national
securities exchanges that currently trade equities, with electronic
communication networks, with quotes posted in FINRA's Alternative
Display Facility, with alternative trading systems, and with securities
firms that primarily trade as principal with their customer order flow.
The Cboe One Summary Feed will enhance competition because it not only
provides content that is competitive with the similar products offered
by other exchanges, but will provide pricing that is competitive as
well. The Cboe One Summary Feed provides investors with an alternative
option for receiving market data and competes directly with similar
market data products currently offered by the NYSE and Nasdaq.\21\
---------------------------------------------------------------------------
\21\ See Nasdaq Basic, https://www.nasdaqtrader.com/Trader.aspx?id=nasdaqbasic (data feed offering the BBO and Last Sale
information for all U.S. exchange-listed securities based on
liquidity within the Nasdaq market center, as well as trades
reported to the FINRA/Nasdaq Trade Reporting Facility
(``TRF''));Nasdaq NLS Plus, https://www.nasdaqtrader.com/Trader.aspx?id=NLSplus (data feed providing last sale data as well
as consolidated volume from the following Nasdaq OMX markets for
U.S. exchange-listed securities: Nasdaq, FINRA/Nasdaq TRF, Nasdaq
OMX BX, and Nasdaq OMX PSX); Securities Exchange Act Release No.
73553 (November 6, 2014), 79 FR 67491 (November 13, 2014) (SR-NYSE-
2014-40) (Notice of Amendment No. 1 and Order Granting Accelerated
Approval to a Proposed Rule Change, as Modified by Amendment No.1,
To Establish the NYSE Best Quote & Trades (``BQT'') Data Feed);
https://www.nyse.com/market-data/real-time/nyse-bqt (data feed
providing unified view of BBO and last sale information for the
NYSE, NYSE Arca, and NYSE MKT).
---------------------------------------------------------------------------
In addition, when establishing the proposed fees, the Exchange
considered the competitiveness of the market for proprietary data and
all of the implications of that competition. The Exchange believes that
it has considered all relevant factors and has not considered
irrelevant factors in order to establish fair, reasonable, and not
unreasonably discriminatory fees and an equitable allocation of fees
among all Users. The existence of alternatives to the Cboe One Summary
Feed and the ETF Implied Liquidity Feed ensures that the Exchange
cannot set unreasonable fees, or fees that are unreasonably
discriminatory, when vendors and subscribers can elect these
alternatives or choose not to purchase a specific proprietary data
product if its cost to purchase is not justified by the returns any
particular vendor or subscriber would achieve through the purchase.
Lastly, the Exchange represents that the proposed pricing of the
Cboe One Summary Feed and the ETF Implied Liquidity Feed provides
investors with alternative market data and competes with similar market
data product currently offered by other exchanges.\22\ In addition, the
Exchange notes the concerns regarding whether a competing vendor could
create a similar product on the same price basis as the Exchange
[[Page 1396]]
are not present here. The proposed changes are limited to fees for
Internal Distributers who use the data for internal use only and not
for the redistribution and sale to external parties.
---------------------------------------------------------------------------
\22\ Id. See also Nasdaq's Global Index Data Service (``GIDS'')
available at https://business.nasdaq.com/intel/indexes/index-data/#!/tcm:5044-12151 (providing on a real-time basis intraday
portfolio values, daily valuation information, such as NAV per
Share, estimated cash per Share, estimated cash per creation unit,
total cash per creation unit and total shares outstanding of the
fund and ETF directory messages designed to provide the symbols of
the ETF valuations). See footnote 28 of Securities Exchange Act
Release No. 77714 (April 26, 2016), 81 FR 26281 (May 2, 2016)
(describing Nasdaq's GIDS within the order approving SR-Nasdaq-2016-
028). See also footnote 29 of Securities Exchange Act Release No.
78592 (August 16, 2016), 81 FR 56729 (August 22, 2016) (describing
Nasdaq's GIDS within the order approving SR-Nasdaq-2016-061). See,
e.g., the NYSE Arca, Inc.'s (``NYSE Arca'') EOD ETF Report available
at https://www.nyxdata.com/Data-Products/NYSE-Arca-EOD-ETF-Report
(providing information such as the ETF's closing trades and quotes
at different key points during the trading day, as well referential
information such as shares outstanding, the primary market, and
NAV).
---------------------------------------------------------------------------
(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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \23\ and paragraph (f) of Rule 19b-4
thereunder.\24\ 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.
---------------------------------------------------------------------------
\23\ 15 U.S.C. 78s(b)(3)(A).
\24\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------
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 [email protected]. Please include
File Number SR-CboeBZX-2017-019 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-CboeBZX-2017-019. 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 website (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 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-2017-019 and should be submitted
on or before February 1, 2018.
---------------------------------------------------------------------------
\25\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\25\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-00309 Filed 1-10-18; 8:45 am]
BILLING CODE 8011-01-P
