Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Harmonize the Definition of Non-Professional User in Its Fee Schedule With That of Its Affiliates, 3194-3196 [2018-01091]
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Federal Register / Vol. 83, No. 15 / Tuesday, January 23, 2018 / Notices
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[FR Doc. 2018–01067 Filed 1–22–18; 8:45 am]
BILLING CODE 3270–F8–P
SECURITIES AND EXCHANGE
COMMISSION
Self-Regulatory Organizations; Cboe
EDGX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Harmonize
the Definition of Non-Professional User
in Its Fee Schedule With That of Its
Affiliates
sradovich on DSK3GMQ082PROD with NOTICES
January 17, 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 January 8,
2018, Cboe EDGX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGX’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Sep<11>2014
17:59 Jan 22, 2018
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 harmonize the definition of
‘‘Non-Professional User’’ with that of its
affiliates, Cboe Exchange, Inc. (‘‘Cboe’’)
and Cboe C2 Exchange, Inc. (‘‘C2’’).
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
[Release No. 34–82520; File No. SR–
CboeEDGX–2018–001]
1 15
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange has
designated this proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6)(iii)
thereunder,4 which renders it effective
upon filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
1. Purpose
The Exchange proposes to amend the
Market Data section of its fee schedule
to harmonize the definition of ‘‘NonProfessional User’’ with that of its
affiliates, Cboe and C2. In late 2016, the
Exchange and its affiliates Cboe EDGA
Exchange, Inc. (‘‘EDGA’’), Cboe BYX
Exchange, Inc. (‘‘BYX’’), and Cboe BZX
Exchange, Inc. (‘‘BZX’’) received
approval to effect a merger (the
‘‘Merger’’) of the Exchange’s parent
company, Bats Global Markets, Inc., the
parent of EDGA, EDGX, BYX, and BZX
with CBOE Holding, Inc. (now known as
Cboe Global Markets, Inc.) the parent
3 15
4 17
Jkt 244001
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U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6)(iii).
Frm 00085
Fmt 4703
Sfmt 4703
company of Cboe and C2.5 In order to
provide consistent rules and
terminology amongst the Exchange,
Cboe, and C2, the Exchange proposes to
amend the definition of ‘‘NonProfessional User’’ to harmonize it with
that of its affiliates, Cboe and C2. The
EDGX Option’s fee schedule currently
defines ‘‘Non-Professional User’’ 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.
As amended, ‘‘Non-Professional User’’
would be defined as:
a natural person or qualifying trust that uses
Data only for personal purposes and not for
any commercial purpose and, for a natural
person who works in the United States, is
not: (i) registered or qualified in any capacity
with the Securities and Exchange
Commission, the Commodities 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 Advisors 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;
or, for a natural person who works outside
of the United States, does not perform the
same functions as would disqualify such
person as a Non-Professional User if he or
she worked in the United States.
The revised definition is substantially
identical to the definition of ‘‘NonProfessional User’ included within the
Cboe and C2 fee schedules.6 The
Exchange’s current definition of ‘‘Non5 See Securities Exchange Act Release No. 79585
(December 16, 2016), 82 FR 6961 (December 22,
2016) (SR–BatsEDGX–2016–60; SR–BatsEDGA–
2016–24; SR–BatsBYX–2017–29; and SR–BatsBYX–
2016–68).
6 See the Cboe fee schedule available at https://
www.cboe.org/general-info/pdfframed?content=/
publish/mdxfees/cboe-cds-fees-schedule-for-cboedatafeeds.pdf§ion=SEC_MDX_CSM&title=
Cboe%20CDS%20Fees%20Schedule and the C2 fee
schedule available at https://www.cboe.org/generalinfo/pdfframed?content=/publish/mdxfees/c2-cdsfees-schedule.pdf§ion=SEC_MDX_CSM&title=
C2%20CDS%20Fees%20Schedule.
E:\FR\FM\23JAN1.SGM
23JAN1
Federal Register / Vol. 83, No. 15 / Tuesday, January 23, 2018 / Notices
sradovich on DSK3GMQ082PROD with NOTICES
Professional User’’ does differ from that
contained in the Cboe and C2 fee
schedules in following minor, nonsubstantive ways. First, the harmonized
definition will make clear that a NonProfessional User may be a natural
person or qualifying trust that uses Data
only for personal purposes and not for
any commercial purpose. To date, the
Exchange is not aware of any entity that
receives an Exchange market data
product would be deemed a qualifying
trust and, therefore, has not had to
determine whether such entity is a
Professional or Non-Professional User
under the prior definition. Second, the
harmonized definition would specify
that a natural person who works outside
of the United States would not be
deemed a Non-Professional User where
that person does not perform the same
functions as would disqualify such
person as a Non-Professional User if he
or she worked in the United States. The
definition with regard to natural persons
who work in the United States are
substantively identical amongst the old
and harmonized definition.
None of these differences impact the
manner in which the Exchange would
characterize a User and a Professional or
Non-Professional. The harmonized
definition would provide additional
specificity while harmonizing the
definition with that of its affiliates.
Doing so would ensure consistent terms
amongst the Exchange and its affiliates,
thereby reducing the potential for
confusion amongst market data
subscribers regarding the type of User
they may be considered by the
Exchange.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the objectives of Section 6 of the Act,7
in general, and furthers the objectives of
Section 6(b)(5) of the Act 8 in particular,
in that it is designed to promote just and
equitable principles of trade, to foster
cooperation and coordination with
persons engaged in facilitating
transactions in securities, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system and, in
general, to protect investors and the
public interest. The harmonized
definition of Non-Professional User is
equitable, reasonable, and removes
impediments to and perfect the
mechanism of a free and open market
and a national market system it would
provide additional specificity while
harmonizing the definition with that of
7 15
8 15
U.S.C. 78f.
U.S.C. 78f(b)(5).
VerDate Sep<11>2014
17:59 Jan 22, 2018
its affiliates. Doing so would ensure
consistent terms amongst the Exchange
and its affiliates, thereby reducing the
potential for confusion amongst market
data subscribers regarding the type of
User they may be considered by the
Exchange.
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 harmonized definition of NonProfessional User would have no impact
on competition because it does not
materially alter the definition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A)(iii) of the Act 9 and
subparagraph (f)(6) of Rule 19b–4
thereunder.10 In addition, Rule 19b–
4(f)(6) requires a self-regulatory
organization to give the Commission
written notice of its intent to file the
proposed rule change, along with a brief
description and text of the proposed
rule change, at least five business days
prior to the date of filing of the
proposed rule change, or such shorter
time as designated by the Commission.
The Exchange has satisfied this
requirement.
In its filing, the Exchange requested
that the Commission waive the 30-day
operative delay in order to enable the
Exchange to immediately ensure
consistent use of terms amongst the
Exchange and its affiliates, thereby
reducing the potential for confusion
amongst market data subscribers
regarding the type of User they may be
considered by the Exchange. The
Commission believes that such waiver is
consistent with the protection of
9 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
10 17
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Frm 00086
Fmt 4703
Sfmt 4703
3195
investors and the public interest.
Therefore, the Commission designates
the proposed rule change to be operative
upon filing. For purposes only of
waiving the 30-day operative delay, the
Commission has also considered the
proposed rule’s impact on efficiency,
competition, and capital formation.11
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–
CboeEDGX–2018–001 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 CboeEDGX–2018–001. 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
11 See
E:\FR\FM\23JAN1.SGM
15 U.S.C. 78c(f).
23JAN1
3196
Federal Register / Vol. 83, No. 15 / Tuesday, January 23, 2018 / Notices
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 CboeEDGX–2018–001 and
should be submitted on or before
February 13, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–01091 Filed 1–22–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–82523; File No. SR–MRX–
2018–02]
Self-Regulatory Organizations; Nasdaq
MRX, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Market Maker
Orders
January 17, 2018.
sradovich on DSK3GMQ082PROD with NOTICES
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 January 5,
2018, Nasdaq MRX, LLC (‘‘MRX’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
The text of the proposed rule change
is set forth below. Proposed new
language is italicized; deleted text is in
[brackets].
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
MRX Rule 805 to permit Market
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
17:59 Jan 22, 2018
Nasdaq MRX Rulebook
*
*
*
*
*
Rule 805. Market Maker Orders
(a) Options Classes to Which
Appointed. Market makers may enter all
order types defined in Rule 715 in the
options classes to which they are
appointed under Rule 802, except
Stopped Orders, Reserve Orders and
Customer Cross Orders.[not place
principal orders to buy or sell options
in the options classes to which they are
appointed under Rule 802, other than
opening only orders, immediate-orcancel orders, market orders, fill-or-kill
orders, sweep orders, and block-size
orders executed through the Block
Order Mechanism pursuant to Rule
716(c).] Competitive Market Makers
shall comply with the provisions of
Rule 804(e)(2)(iii) upon the entry of
such orders if they were not previously
quoting in the series.
(b) Options Classes Other Than Those
to Which Appointed.
(1) A market maker may enter all
order types permitted to be entered by
non-customer participants under the
Rules to buy or sell options in classes
of options listed on the Exchange to
which the market maker is not
appointed under Rule 802, except for
Reserve Orders, provided that:
(i) and (ii) No change.
(2) and (3) No change.
*
*
*
*
*
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.
3 Market Makers refers to ‘‘Competitive Market
Makers’’ and ‘‘Primary Market Makers’’ collectively.
See MRX Rule 100(a)(25).
1 15
VerDate Sep<11>2014
Makers 3 to enter additional order types
in the options classes to which they are
appointed.
*
*
*
*
*
Jkt 244001
PO 00000
Frm 00087
Fmt 4703
Sfmt 4703
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this rule change is to
permit Market Makers to enter principal
orders to buy or sell options in the
options classes to which they are
appointed under Rule 802 4 for all order
types listed in Rule 715 except for
Stopped Orders,5 Reserve Orders 6 and
Customer Cross Orders.7 This filing is
intended to permit Market Makers to
execute most of the same order types,
which today they are permitted to enter
on other options markets.8 In addition,
this filing is intended to amend MRX
Rule 805(b)(1) to indicate that Reserve
Orders are not permitted to be entered
by MRX Market Makers in non4 MRX Rule 802 concerns the appointment of
Market Makers.
5 A stopped order is a limit order that meets the
requirements of Rule 1901(b)(8). To execute
stopped orders, Members must enter them into the
Facilitation Mechanism or Solicited Order
Mechanism pursuant to Rule 716. See MRX Rule
715(b)(6).
6 A Reserve Order is a limit order that contains
both a displayed portion and a non-displayed
portion. Both the displayed and non-displayed
portions of a Reserve Order are available for
potential execution against incoming marketable
orders. A non-marketable Reserve Order will rest on
the order book. The displayed portion of a Reserve
Order shall be ranked at the specified limit price
and the time of order entry. The displayed portion
of a Reserve Order will trade in accordance with
Rule 713(c) and (d) for Priority Customer Orders,
and Rule 713(e) and Supplementary Material .01,
for Professional Orders. When the displayed portion
of a Reserve Order is decremented, either in full or
in part, it shall be refreshed from the non-displayed
portion of the resting Reserve Order. If the
displayed portion is refreshed in part, the new
displayed portion shall include the previously
displayed portion. Upon any refresh, the entire
displayed portion shall be ranked at the specified
limit price and obtain a new time stamp, i.e., the
time that the new displayed portion of the order
was refreshed. The new displayed portion will
trade in accordance with Rule 713(c) and (d) for
Priority Customer Orders, and Rule 713(e) and
Supplementary Material .01, for Professional
Orders. The initial non-displayed portion of a
Reserve Order rests on the order book and is ranked
based on the specified limit price and time of order
entry. Thereafter, non-displayed portions, if any,
always obtain the same time stamp as that of the
new displayed portion in subparagraph 4 above.
The non-displayed portion of any Reserve Order is
available for execution only after all displayed
interest has been executed. The non-displayed
portion of any Reserve Order will trade in
accordance with Rule 713(c) and (d) for Priority
Customer Orders, and Rule 713(e) and
Supplementary Material .01, for Professional
Orders. See MRX Rule 715(g).
7 A Customer Cross Order is comprised of a
Priority Customer Order to buy and a Priority
Customer Order to sell at the same price and for the
same quantity. See MRX Rule 715(i).
8 NYSE Arca, Inc. (‘‘NYSE Arca’’) and NYSE
American LLC (‘‘NYSE American’’) do not limit the
types of orders that can be entered by market
makers. See NYSE Arca Rule 6.37C–O and NYSE
American Rule 925.2NY.
E:\FR\FM\23JAN1.SGM
23JAN1
]]>Agencies
[Federal Register Volume 83, Number 15 (Tuesday, January 23, 2018)]
[Notices]
[Pages 3194-3196]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-01091]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-82520; File No. SR-CboeEDGX-2018-001]
Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Harmonize the Definition of Non-Professional User in Its Fee Schedule
With That of Its Affiliates
January 17, 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 January 8, 2018, 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 and II
below, which Items have been prepared by the Exchange. The Exchange has
designated this proposal as a ``non-controversial'' proposed rule
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with
the Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
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 harmonize the definition of ``Non-Professional
User'' with that of its affiliates, Cboe Exchange, Inc. (``Cboe'') and
Cboe C2 Exchange, Inc. (``C2'').
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 harmonize the definition of ``Non-Professional User'' with
that of its affiliates, Cboe and C2. In late 2016, the Exchange and its
affiliates Cboe EDGA Exchange, Inc. (``EDGA''), Cboe BYX Exchange, Inc.
(``BYX''), and Cboe BZX Exchange, Inc. (``BZX'') received approval to
effect a merger (the ``Merger'') of the Exchange's parent company, Bats
Global Markets, Inc., the parent of EDGA, EDGX, BYX, and BZX with CBOE
Holding, Inc. (now known as Cboe Global Markets, Inc.) the parent
company of Cboe and C2.\5\ In order to provide consistent rules and
terminology amongst the Exchange, Cboe, and C2, the Exchange proposes
to amend the definition of ``Non-Professional User'' to harmonize it
with that of its affiliates, Cboe and C2. The EDGX Option's fee
schedule currently defines ``Non-Professional User'' as:
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 79585 (December 16,
2016), 82 FR 6961 (December 22, 2016) (SR-BatsEDGX-2016-60; SR-
BatsEDGA-2016-24; SR-BatsBYX-2017-29; and SR-BatsBYX-2016-68).
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.
As amended, ``Non-Professional User'' would be defined as:
a natural person or qualifying trust that uses Data only for
personal purposes and not for any commercial purpose and, for a
natural person who works in the United States, is not: (i)
registered or qualified in any capacity with the Securities and
Exchange Commission, the Commodities 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 Advisors 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; or, for a natural person who works
outside of the United States, does not perform the same functions as
would disqualify such person as a Non-Professional User if he or she
worked in the United States.
The revised definition is substantially identical to the definition
of ``Non-Professional User' included within the Cboe and C2 fee
schedules.\6\ The Exchange's current definition of ``Non-
[[Page 3195]]
Professional User'' does differ from that contained in the Cboe and C2
fee schedules in following minor, non-substantive ways. First, the
harmonized definition will make clear that a Non-Professional User may
be a natural person or qualifying trust that uses Data only for
personal purposes and not for any commercial purpose. To date, the
Exchange is not aware of any entity that receives an Exchange market
data product would be deemed a qualifying trust and, therefore, has not
had to determine whether such entity is a Professional or Non-
Professional User under the prior definition. Second, the harmonized
definition would specify that a natural person who works outside of the
United States would not be deemed a Non-Professional User where that
person does not perform the same functions as would disqualify such
person as a Non-Professional User if he or she worked in the United
States. The definition with regard to natural persons who work in the
United States are substantively identical amongst the old and
harmonized definition.
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\6\ See the Cboe fee schedule available at https://www.cboe.org/general-info/pdfframed?content=/publish/mdxfees/cboe-cds-fees-schedule-for-cboe-datafeeds.pdf§ion=SEC_MDX_CSM&title=Cboe%20CDS%20Fees%20Schedule
and the C2 fee schedule available at https://www.cboe.org/general-info/pdfframed?content=/publish/mdxfees/c2-cds-fees-schedule.pdf§ion=SEC_MDX_CSM&title=C2%20CDS%20Fees%20Schedule.
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None of these differences impact the manner in which the Exchange
would characterize a User and a Professional or Non-Professional. The
harmonized definition would provide additional specificity while
harmonizing the definition with that of its affiliates. Doing so would
ensure consistent terms amongst the Exchange and its affiliates,
thereby reducing the potential for confusion amongst market data
subscribers regarding the type of User they may be considered by the
Exchange.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\7\ in general, and
furthers the objectives of Section 6(b)(5) of the Act \8\ in
particular, in that it is designed to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in facilitating transactions in securities, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system and, in general, to protect investors and the
public interest. The harmonized definition of Non-Professional User is
equitable, reasonable, and removes impediments to and perfect the
mechanism of a free and open market and a national market system it
would provide additional specificity while harmonizing the definition
with that of its affiliates. Doing so would ensure consistent terms
amongst the Exchange and its affiliates, thereby reducing the potential
for confusion amongst market data subscribers regarding the type of
User they may be considered by the Exchange.
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\7\ 15 U.S.C. 78f.
\8\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act, as amended. The
harmonized definition of Non-Professional User would have no impact on
competition because it does not materially alter the definition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \9\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\10\ In addition, Rule
19b-4(f)(6) requires a self-regulatory organization to give the
Commission written notice of its intent to file the proposed rule
change, along with a brief description and text of the proposed rule
change, at least five business days prior to the date of filing of the
proposed rule change, or such shorter time as designated by the
Commission. The Exchange has satisfied this requirement.
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\9\ 15 U.S.C. 78s(b)(3)(A)(iii).
\10\ 17 CFR 240.19b-4(f)(6).
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In its filing, the Exchange requested that the Commission waive the
30-day operative delay in order to enable the Exchange to immediately
ensure consistent use of terms amongst the Exchange and its affiliates,
thereby reducing the potential for confusion amongst market data
subscribers regarding the type of User they may be considered by the
Exchange. The Commission believes that such waiver is consistent with
the protection of investors and the public interest. Therefore, the
Commission designates the proposed rule change to be operative upon
filing. For purposes only of waiving the 30-day operative delay, the
Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation.\11\
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\11\ See 15 U.S.C. 78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-CboeEDGX-2018-001 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 CboeEDGX-2018-001. 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
[[Page 3196]]
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 CboeEDGX-2018-001 and should be
submitted on or before February 13, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-01091 Filed 1-22-18; 8:45 am]
BILLING CODE 8011-01-P
