Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Market Makers' Regulatory Fees, 1646-1647 [2018-00411]
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Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Notices
For the Commission, by the Division of
Investment Management, under delegated
authority.
Eduardo A. Aleman,
Assistant Secretary.
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
[FR Doc. 2018–00431 Filed 1–11–18; 8:45 am]
BILLING CODE 8011–01–P
1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–82460; File No. SR–GEMX–
2017–62]
Self-Regulatory Organizations; Nasdaq
GEMX, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Market
Makers’ Regulatory Fees
January 8, 2018.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on December
26, 2017, Nasdaq GEMX, LLC (‘‘GEMX’’
or ‘‘Exchange’’) 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
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
Exchange’s Schedule of Fees, as
described further below.
While these amendments are effective
upon filing, the Exchange has
designated the proposed amendments to
be operative on January 2, 2018.
The text of the proposed rule change
is available on the Exchange’s website at
https://nasdaqgemx.cchwallstreet.com/,
at the principal office of the Exchange,
and at the Commission’s Public
Reference Room.
sradovich on DSK3GMQ082PROD with NOTICES
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
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Sep<11>2014
17:47 Jan 11, 2018
Jkt 244001
The purpose of the proposed rule
change is to amend the Exchange’s
Schedule of Fees to (i) eliminate the
annual regulatory fee currently assessed
to Market Makers (i.e., Primary Market
Makers and Competitive Market Makers)
at Section III.C and (ii) make a number
of non-substantive clean-up changes to
update the Table of Contents. Each
change is discussed further below.
Eliminate Annual Regulatory Fee
GEMX currently charges its members
various non-transaction fees to trade on
the Exchange and use its facilities,
including a tiered annual regulatory fee.
This fee is assessed to all Primary
Market Makers (‘‘PMMs’’) and
Competitive Market Makers (‘‘CMMs’’)
to help defray the regulatory and
administrative costs associated with a
member’s use of the Exchange’s
facilities. In particular, the regulatory
fee is $1,000 per year for a PMM
membership, and, for PMMs that are
also CMMs, $250 per year for each CMM
membership. For CMMs that are not
also PMMs the regulatory fee is $500 per
year for the first CMM membership, and
$250 per year for each additional CMM
membership.3 The Exchange does not
charge a regulatory fee to Electronic
Access Members (‘‘EAMs’’).
The Exchange proposes to eliminate
the annual regulatory fee and all related
references from the Schedule of Fees
because it has determined that this fee
is outdated and no longer reflects the
costs associated with supporting and
regulating its members today. The
annual regulatory fee was adopted in
2013, and has not been amended since
that time.4 And because GEMX charges
its members various non-transaction
fees outside of the annual regulatory fee
to help defray such costs, as noted
above, the Exchange believes that the
proposed fee change will be a more
accurate reflection of the administration
and regulatory costs associated with a
member’s use of the Exchange today.
3 See GEMX Schedule of Fees, Section III.C
Regulatory Fees.
4 See Securities Exchange Act Release No. 71149
(December 19, 2013), 78 FR 78447 (December 26,
2013) (SR-Topaz-2013–16).
PO 00000
Frm 00042
Fmt 4703
Sfmt 4703
Update Table of Contents
Currently, the Exchange’s Schedule of
Fees contains a number of section
headings that are not currently reflected
in the Table of Contents. The Exchange
added, eliminated, or renamed these
headings as part of a previouslyapproved rule change, and inadvertently
did not make the corresponding updates
to the Table of Contents.5 Accordingly,
the Exchange proposes to update the
Table of Contents to make its Schedule
of Fees easier to read.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,6 in general, and furthers the
objectives of Sections 6(b)(4) and 6(b)(5)
of the Act,7 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.
Eliminate Annual Regulatory Fee
The Exchange believes that the
proposed elimination of the annual
regulatory fee and all related references
from the Schedule of Fees is reasonable
because the Exchange has determined
that the annual regulatory fee is
outdated and no longer reflects the costs
associated with supporting and
regulating its members. This fee has not
been amended since its adoption in
2013. Furthermore, GEMX charges its
members various non-transaction fees
outside of the annual regulatory fee to
help defray such costs, as noted above.
The Exchange therefore believes that the
proposed fee change will be a more
accurate reflection of the administration
and regulatory costs associated with a
member’s use of the Exchange today.
The Exchange also believes that the
proposed elimination of the annual
regulatory fee is equitable and not
unfairly discriminatory because the
proposed change will apply equally to
all similarly situated members.
Update Table of Contents
The Exchange believes that the cleanup changes to update the Table of
Contents is reasonable, equitable and
not unfairly discriminatory because
these are non-substantive changes
5 In particular, the Exchange renamed Section IV,
deleted Section IV.C, and added Sections IV.F–IV.I
as part of a previous rule change to amend GEMX’s
connectivity fees. See Securities Exchange Release
No. 81902 (October 19, 2017), 82 FR 49453 (October
25, 2017) (SR–GEMX–2017–48).
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(4) and (5).
E:\FR\FM\12JAN1.SGM
12JAN1
Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Notices
intended to make the Schedule of Fees
more transparent to members and
investors.
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 proposed changes are
intended to more accurately reflect the
regulatory and administrative costs
associated with a member’s use of the
Exchange, or are clean-ups to make the
Schedule of Fees more transparent to
members and investors. 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 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.
sradovich on DSK3GMQ082PROD with NOTICES
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.8 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–2017–62 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–2017–62. 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–2017–62 and
should be submitted on or before
February 2, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–00411 Filed 1–11–18; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–82462; File No. SR–
CboeEDGX–2017–010]
Self-Regulatory Organizations; Cboe
EDGX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Adopt Fees
for Certain Market Data Products on
the Exchange’s Equity Options
Platform
January 8, 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
27, 2017, Cboe EDGX Exchange, Inc.
(the ‘‘Exchange’’ or ‘‘EDGX’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the Exchange.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange filed a proposal to
amend the Market Data section of its fee
schedule applicable to its equity options
platform (‘‘EDGX Options’’) to adopt
fees for certain of its market data
products, which are currently offered
free of charge. The Exchange also
proposes to amend the names of these
market data products in Exchange Rule
21.15(b).
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.
BILLING CODE 8011–01–P
1 15
8 15
U.S.C. 78s(b)(3)(A)(ii).
VerDate Sep<11>2014
17:47 Jan 11, 2018
9 17
Jkt 244001
PO 00000
CFR 200.30–3(a)(12).
Frm 00043
Fmt 4703
2 17
Sfmt 4703
1647
E:\FR\FM\12JAN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
12JAN1
]]>Agencies
[Federal Register Volume 83, Number 9 (Friday, January 12, 2018)]
[Notices]
[Pages 1646-1647]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-00411]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-82460; File No. SR-GEMX-2017-62]
Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Relating to Market
Makers' Regulatory Fees
January 8, 2018.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on December 26, 2017, Nasdaq GEMX, LLC (``GEMX'' or ``Exchange'') 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 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 Exchange's Schedule of Fees, as
described further below.
While these amendments are effective upon filing, the Exchange has
designated the proposed amendments to be operative on January 2, 2018.
The text of the proposed rule change is available on the Exchange's
website at https://nasdaqgemx.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 purpose of the proposed rule change is to amend the Exchange's
Schedule of Fees to (i) eliminate the annual regulatory fee currently
assessed to Market Makers (i.e., Primary Market Makers and Competitive
Market Makers) at Section III.C and (ii) make a number of non-
substantive clean-up changes to update the Table of Contents. Each
change is discussed further below.
Eliminate Annual Regulatory Fee
GEMX currently charges its members various non-transaction fees to
trade on the Exchange and use its facilities, including a tiered annual
regulatory fee. This fee is assessed to all Primary Market Makers
(``PMMs'') and Competitive Market Makers (``CMMs'') to help defray the
regulatory and administrative costs associated with a member's use of
the Exchange's facilities. In particular, the regulatory fee is $1,000
per year for a PMM membership, and, for PMMs that are also CMMs, $250
per year for each CMM membership. For CMMs that are not also PMMs the
regulatory fee is $500 per year for the first CMM membership, and $250
per year for each additional CMM membership.\3\ The Exchange does not
charge a regulatory fee to Electronic Access Members (``EAMs'').
---------------------------------------------------------------------------
\3\ See GEMX Schedule of Fees, Section III.C Regulatory Fees.
---------------------------------------------------------------------------
The Exchange proposes to eliminate the annual regulatory fee and
all related references from the Schedule of Fees because it has
determined that this fee is outdated and no longer reflects the costs
associated with supporting and regulating its members today. The annual
regulatory fee was adopted in 2013, and has not been amended since that
time.\4\ And because GEMX charges its members various non-transaction
fees outside of the annual regulatory fee to help defray such costs, as
noted above, the Exchange believes that the proposed fee change will be
a more accurate reflection of the administration and regulatory costs
associated with a member's use of the Exchange today.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 71149 (December 19,
2013), 78 FR 78447 (December 26, 2013) (SR-Topaz-2013-16).
---------------------------------------------------------------------------
Update Table of Contents
Currently, the Exchange's Schedule of Fees contains a number of
section headings that are not currently reflected in the Table of
Contents. The Exchange added, eliminated, or renamed these headings as
part of a previously-approved rule change, and inadvertently did not
make the corresponding updates to the Table of Contents.\5\
Accordingly, the Exchange proposes to update the Table of Contents to
make its Schedule of Fees easier to read.
---------------------------------------------------------------------------
\5\ In particular, the Exchange renamed Section IV, deleted
Section IV.C, and added Sections IV.F-IV.I as part of a previous
rule change to amend GEMX's connectivity fees. See Securities
Exchange Release No. 81902 (October 19, 2017), 82 FR 49453 (October
25, 2017) (SR-GEMX-2017-48).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\6\ in general, and furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,\7\ 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.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
Eliminate Annual Regulatory Fee
The Exchange believes that the proposed elimination of the annual
regulatory fee and all related references from the Schedule of Fees is
reasonable because the Exchange has determined that the annual
regulatory fee is outdated and no longer reflects the costs associated
with supporting and regulating its members. This fee has not been
amended since its adoption in 2013. Furthermore, GEMX charges its
members various non-transaction fees outside of the annual regulatory
fee to help defray such costs, as noted above. The Exchange therefore
believes that the proposed fee change will be a more accurate
reflection of the administration and regulatory costs associated with a
member's use of the Exchange today.
The Exchange also believes that the proposed elimination of the
annual regulatory fee is equitable and not unfairly discriminatory
because the proposed change will apply equally to all similarly
situated members.
Update Table of Contents
The Exchange believes that the clean-up changes to update the Table
of Contents is reasonable, equitable and not unfairly discriminatory
because these are non-substantive changes
[[Page 1647]]
intended to make the Schedule of Fees more transparent to members and
investors.
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
proposed changes are intended to more accurately reflect the regulatory
and administrative costs associated with a member's use of the
Exchange, or are clean-ups to make the Schedule of Fees more
transparent to members and investors. 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
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.\8\ 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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------
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-GEMX-2017-62 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-2017-62. 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-2017-62 and should be submitted on
or before February 2, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-00411 Filed 1-11-18; 8:45 am]
BILLING CODE 8011-01-P
