Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Introduce a New Data Feed on the Exchange's Equity Options Platform, 9047-9049 [2018-04212]
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Federal Register / Vol. 83, No. 42 / Friday, March 2, 2018 / 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 proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 9 and Rule 19b–4(f)(3) 10
thereunder in that the proposed rule
change is concerned solely with the
administration of the Exchange.
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:
daltland on DSKBBV9HB2PROD 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–
NASDAQ–2018–014 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NASDAQ–2018–014. 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
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(3).
10 17
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Jkt 244001
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–NASDAQ–2018–014 and
should be submitted on or before March
23, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–04211 Filed 3–1–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–82776; File No. SR–
CboeBZX–2018–013]
9047
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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange filed a proposal to
introduce a new data feed on its equity
options platform (‘‘BZX Options’’) to be
known as BZX Options Top.
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
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Introduce a
New Data Feed on the Exchange’s
Equity Options Platform
February 26, 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 February
20, 2018, Cboe BZX Exchange, Inc.
(‘‘Exchange’’ or ‘‘BZX’’) 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 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)
The Exchange proposes to introduce a
new data feed on BZX Options to be
known as BZX Options Top. The
Exchange also proposes to amend
Exchange Rule 21.15(b) to add a
description of the BZX Options Top
feed and to change the name of the
Multicast PITCH feed to BZX Options
Depth.
A description of each market data
product offered by the Exchange is
described in Exchange Rule 21.15(b).
The Exchange proposes to amend Rule
21.15(b) to introduce and add a
description of the BZX Options Top
feed to Exchange under subparagraph
(2).5 The BZX Options Top feed would
be described as ‘‘a data feed that offers
top of book quotations and execution
information based on options orders
entered into the System.’’ 6 The
4 17
11 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
PO 00000
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Fmt 4703
Sfmt 4703
CFR 240.19b–4(f)(6)(iii).
Exchange also proposes to renumber
current subparagraph (2) as (3) and current
subparagraph (3) as (4).
6 Exchange Rule 21.15(b)(2).
5 The
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9048
Federal Register / Vol. 83, No. 42 / Friday, March 2, 2018 / Notices
Exchange notes that its affiliate, Cboe
EDGX Exchange, Inc. (‘‘EDGX’’) offers
an identical data feed for its equity
options platform (‘‘EDGX Options’’),
known as EDGX Options Top. The
description of the BZX Options Top
feed under Exchange Rule 21.15(b)(2) is
substantially similar to the description
of the EDGX Options Top feed under
EDGX Rule 21.15(b)(2).7
The Exchange also propose to rename
Multicast Pitch as BZX Options Depth
and amend its rules and fee schedule
accordingly. BZX Options Depth is a
data feed that offers depth of book
quotations and execution information
based on options orders entered into the
System.8
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,9 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,10 in particular, in that it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and to protect investors and the
public interest, and that it is not
designed to permit unfair
discrimination among customers,
brokers, or dealers. This proposal is in
keeping with those principles in that it
promotes increased transparency
through the dissemination of BZX
Options Top. The proposed rule change
would benefit investors by facilitating
their prompt access to real-time top-ofbook information contained in BZX
Options Top. The Exchange notes that
its affiliate, EDGX, offers an identical
data feed for EDGX Options, known as
EDGX Options Top. The description of
the BZX Options Top feed under
Exchange Rule 21.15(b)(2) is
substantially similar to the description
of the EDGX Options Top feed under
EDGX Rule 21.15(b)(2).11
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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
7 Unlike BZX, EDGX offers separate EDGX
Options Top data feeds for the EDGX’s Simple Book
and Complex Order Book. See EDGX Rule
21.15(b)(2).
8 Exchange Rule 21.15(b)(1).
9 15 U.S.C. 78f.
10 15 U.S.C. 78f(b)(5).
11 Unlike BZX, EDGX offers separate EDGX
Options Top data feeds for the EDGX’s Simple Book
and Complex Order Book. See EDGX Rule
21.15(b)(2).
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18:10 Mar 01, 2018
Jkt 244001
of the purposes of the Act. The
Exchange believes that the proposal will
promote competition by the Exchange
offering a service similar to that offered
by Nasdaq.12 Thus, the Exchange
believes this proposed rule change is
necessary to permit fair competition
among national securities exchanges.
Therefore, the Exchange does not
believe 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.
(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 13 and
subparagraph (f)(6) of Rule 19b–4
thereunder.14
A proposed rule change filed under
Rule 19b–4(f)(6) 15 normally does not
become operative prior to 30 days after
the date of the filing. However, Rule
19b–4(f)(6)(iii) 16 permits the
Commission to designate a shorter time
if such action is consistent with the
protection of investors and the public
interest. The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Exchange states that waiving
the operative delay will enable the
12 BONO stands for Best of Nasdaq Options
(‘‘BONOSM’’) is a data feed that provides The
Nasdaq Options Market (‘‘NOM’’) Best Bid and
Offer and last sale information for trades executed
on NOM. See Nasdaq Sec. 4(d), NASDAQ Options
Market Data Distributor Fees available at https://
www.nasdaqtrader.com/
Micro.aspx?id=optionsPricing.
13 15 U.S.C. 78s(b)(3)(A)(iii).
14 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s 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.
15 17 CFR 240.19b–4(f)(6).
16 17 CFR 240.19b–4(f)(6)(iii).
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Frm 00086
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Exchange to implement the proposed
rule change on March 9, 2018, the
anticipated date upon which the
Exchange hopes to offer BZX Options
Top.17 The Exchange further notes that
its affiliate, EDGX, offers a substantially
similar data feed as discussed earlier in
this proposed rule change. Based on the
foregoing, the Commission believes that
waiver of the 30-day operative delay is
consistent with the protection of
investors and the public interest.
Therefore, the Commission hereby
waives the operative delay and
designates the proposed rule change as
operative upon filing.18
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–
CboeBZX–2018–013 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–CboeBZX–2018–013. 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
17 See Cboe BZX and EDGX Options Exchanges to
Introduce Multicast Top Feed, available at https://
cdn.batstrading.com/resources/release_notes/2018/
Cboe-BZX-and-EDGX-Options-Exchanges-toIntroduce-Multicast-Top-Feed.pdf.
18 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. See
15 U.S.C. 78c(f).
E:\FR\FM\02MRN1.SGM
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Federal Register / Vol. 83, No. 42 / Friday, March 2, 2018 / Notices
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–2018–013 and
should be submitted on or before March
23, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–04212 Filed 3–1–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
33035; 812–14845]
Little Harbor Advisors, LLC and ETF
Series Solutions
February 26, 2018.
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice.
daltland on DSKBBV9HB2PROD with NOTICES
AGENCY:
Notice of an application for an order
under section 6(c) of the Investment
Company Act of 1940 (the ‘‘Act’’) for an
exemption from sections 2(a)(32),
5(a)(1), 22(d), and 22(e) of the Act and
rule 22c–1 under the Act, under
sections 6(c) and 17(b) of the Act for an
exemption from sections 17(a)(1) and
17(a)(2) of the Act, and under section
12(d)(1)(J) of the Act for an exemption
from sections 12(d)(1)(A) and
12(d)(1)(B) of the Act. The requested
19 17
CFR 200.30–3(a)(12).
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18:10 Mar 01, 2018
Jkt 244001
order would permit (a) activelymanaged series of certain open-end
management investment companies
(‘‘Funds’’) to issue shares redeemable in
large aggregations only (‘‘Creation
Units’’); (b) secondary market
transactions in Fund shares to occur at
negotiated market prices rather than at
net asset value (‘‘NAV’’); (c) certain
Funds to pay redemption proceeds,
under certain circumstances, more than
seven days after the tender of shares for
redemption; (d) certain affiliated
persons of a Fund to deposit securities
into, and receive securities from, the
Fund in connection with the purchase
and redemption of Creation Units; (e)
certain registered management
investment companies and unit
investment trusts outside of the same
group of investment companies as the
Funds (‘‘Funds of Funds’’) to acquire
shares of the Funds; and (f) certain
Funds (‘‘Feeder Funds’’) to create and
redeem Creation Units in-kind in a
master-feeder structure.
APPLICANTS: Little Harbor Advisors, LLC
(the ‘‘Initial Adviser’’), a Delaware
limited liability company registered as
an investment adviser under the
Investment Advisers Act of 1940, ETF
Series Solutions (the ‘‘Trust’’), a
Delaware statutory trust registered
under the Act as an open-end
management investment company with
multiple series.
FILING DATES: The application was filed
on November 22, 2017 and amended on
February 20, 2018.
HEARING OR NOTIFICATION OF HEARING: An
order granting the requested relief will
be issued unless the Commission orders
a hearing. Interested persons may
request a hearing by writing to the
Commission’s Secretary and serving
applicants with a copy of the request,
personally or by mail. Hearing requests
should be received by the Commission
by 5:30 p.m. on March 23, 2018, and
should be accompanied by proof of
service on applicants, in the form of an
affidavit, or for lawyers, a certificate of
service. Pursuant to rule 0–5 under the
Act, hearing requests should state the
nature of the writer’s interest, any facts
bearing upon the desirability of a
hearing on the matter, the reason for the
request, and the issues contested.
Persons who wish to be notified of a
hearing may request notification by
writing to the Commission’s Secretary.
ADDRESSES: Secretary, Securities and
Exchange Commission, 100 F Street NE,
Washington, DC 20549–1090;
Applicants: W. John McGuire, Esq.,
Morgan, Lewis & Bockius LLP, 1111
Pennsylvania Avenue NW, Washington,
DC 20004–2541 and Michael D.
PO 00000
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9049
Barolsky, Esq., U.S. Bancorp Fund
Services, LLC, 615 E. Michigan Street,
Milwaukee, WI 53202.
FOR FURTHER INFORMATION CONTACT:
James McGinnis, Senior Counsel, at
(202) 551–3025, or Parisa Haghshenas,
Branch Chief, at (202) 551–6723
(Division of Investment Management,
Chief Counsel’s Office).
SUPPLEMENTARY INFORMATION: The
following is a summary of the
application. The complete application
may be obtained via the Commission’s
website by searching for the file
number, or for an applicant using the
Company name box, at https://
www.sec.gov/search/search.htm or by
calling (202) 551–8090.
Summary of the Application
1. Applicants request an order that
would allow Funds to operate as
actively-managed exchange traded
funds (‘‘ETFs’’).1 Fund shares will be
purchased and redeemed at their NAV
in Creation Units only. All orders to
purchase Creation Units and all
redemption requests will be placed by
or through an ‘‘Authorized Participant’’
which will have signed a participant
agreement with the Distributor. Shares
will be listed and traded individually on
a national securities exchange, where
share prices will be based on the current
bid/offer market. Certain Funds may
operate as Feeder Funds in a masterfeeder structure. Any order granting the
requested relief would be subject to the
terms and conditions stated in the
application.
2. Each Fund will consist of a
portfolio of securities and other assets
and investment positions (‘‘Portfolio
Instruments’’). Each Fund will disclose
on its website the identities and
quantities of the Portfolio Instruments
that will form the basis for the Fund’s
calculation of NAV at the end of the
day.
3. Shares will be purchased and
redeemed in Creation Units only and
generally on an in-kind basis. Except
where the purchase or redemption will
include cash under the limited
1 Applicants request that the order apply to the
new series of the Trust as well as to additional
series of the Trust and any other open-end
management investment company or series thereof
that currently exist or that may be created in the
future (each, included in the term ‘‘Fund’’), each of
which will operate as an actively-managed ETF.
Any Fund will (a) be advised by the Initial Adviser
or an entity controlling, controlled by, or under
common control with the Initial Adviser (each such
entity and any successor thereto is included in the
term ‘‘Adviser’’) and (b) comply with the terms and
conditions of the application. For purposes of the
requested Order, the term ‘‘successor’’ is limited to
an entity that results from a reorganization into
another jurisdiction or a change in the type of
business organization.
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]]>Agencies
[Federal Register Volume 83, Number 42 (Friday, March 2, 2018)]
[Notices]
[Pages 9047-9049]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-04212]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-82776; File No. SR-CboeBZX-2018-013]
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To
Introduce a New Data Feed on the Exchange's Equity Options Platform
February 26, 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 February 20, 2018, Cboe BZX Exchange, Inc. (``Exchange'' or ``BZX'')
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 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 introduce a new data feed on its
equity options platform (``BZX Options'') to be known as BZX Options
Top.
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 introduce a new data feed on BZX Options
to be known as BZX Options Top. The Exchange also proposes to amend
Exchange Rule 21.15(b) to add a description of the BZX Options Top feed
and to change the name of the Multicast PITCH feed to BZX Options
Depth.
A description of each market data product offered by the Exchange
is described in Exchange Rule 21.15(b). The Exchange proposes to amend
Rule 21.15(b) to introduce and add a description of the BZX Options Top
feed to Exchange under subparagraph (2).\5\ The BZX Options Top feed
would be described as ``a data feed that offers top of book quotations
and execution information based on options orders entered into the
System.'' \6\ The
[[Page 9048]]
Exchange notes that its affiliate, Cboe EDGX Exchange, Inc. (``EDGX'')
offers an identical data feed for its equity options platform (``EDGX
Options''), known as EDGX Options Top. The description of the BZX
Options Top feed under Exchange Rule 21.15(b)(2) is substantially
similar to the description of the EDGX Options Top feed under EDGX Rule
21.15(b)(2).\7\
---------------------------------------------------------------------------
\5\ The Exchange also proposes to renumber current subparagraph
(2) as (3) and current subparagraph (3) as (4).
\6\ Exchange Rule 21.15(b)(2).
\7\ Unlike BZX, EDGX offers separate EDGX Options Top data feeds
for the EDGX's Simple Book and Complex Order Book. See EDGX Rule
21.15(b)(2).
---------------------------------------------------------------------------
The Exchange also propose to rename Multicast Pitch as BZX Options
Depth and amend its rules and fee schedule accordingly. BZX Options
Depth is a data feed that offers depth of book quotations and execution
information based on options orders entered into the System.\8\
---------------------------------------------------------------------------
\8\ Exchange Rule 21.15(b)(1).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\9\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\10\ in particular, in that it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and to protect investors and the public
interest, and that it is not designed to permit unfair discrimination
among customers, brokers, or dealers. This proposal is in keeping with
those principles in that it promotes increased transparency through the
dissemination of BZX Options Top. The proposed rule change would
benefit investors by facilitating their prompt access to real-time top-
of-book information contained in BZX Options Top. The Exchange notes
that its affiliate, EDGX, offers an identical data feed for EDGX
Options, known as EDGX Options Top. The description of the BZX Options
Top feed under Exchange Rule 21.15(b)(2) is substantially similar to
the description of the EDGX Options Top feed under EDGX Rule
21.15(b)(2).\11\
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f.
\10\ 15 U.S.C. 78f(b)(5).
\11\ Unlike BZX, EDGX offers separate EDGX Options Top data
feeds for the EDGX's Simple Book and Complex Order Book. See EDGX
Rule 21.15(b)(2).
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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. The Exchange
believes that the proposal will promote competition by the Exchange
offering a service similar to that offered by Nasdaq.\12\ Thus, the
Exchange believes this proposed rule change is necessary to permit fair
competition among national securities exchanges. Therefore, the
Exchange does not believe 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.
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\12\ BONO stands for Best of Nasdaq Options (``BONO\SM\'') is a
data feed that provides The Nasdaq Options Market (``NOM'') Best Bid
and Offer and last sale information for trades executed on NOM. See
Nasdaq Sec. 4(d), NASDAQ Options Market Data Distributor Fees
available at https://www.nasdaqtrader.com/Micro.aspx?id=optionsPricing.
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(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants or Others
The Exchange 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 \13\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\14\
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\13\ 15 U.S.C. 78s(b)(3)(A)(iii).
\14\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's 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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A proposed rule change filed under Rule 19b-4(f)(6) \15\ normally
does not become operative prior to 30 days after the date of the
filing. However, Rule 19b-4(f)(6)(iii) \16\ permits the Commission to
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing. The Exchange states that
waiving the operative delay will enable the Exchange to implement the
proposed rule change on March 9, 2018, the anticipated date upon which
the Exchange hopes to offer BZX Options Top.\17\ The Exchange further
notes that its affiliate, EDGX, offers a substantially similar data
feed as discussed earlier in this proposed rule change. Based on the
foregoing, the Commission believes that waiver of the 30-day operative
delay is consistent with the protection of investors and the public
interest. Therefore, the Commission hereby waives the operative delay
and designates the proposed rule change as operative upon filing.\18\
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\15\ 17 CFR 240.19b-4(f)(6).
\16\ 17 CFR 240.19b-4(f)(6)(iii).
\17\ See Cboe BZX and EDGX Options Exchanges to Introduce
Multicast Top Feed, available at https://cdn.batstrading.com/resources/release_notes/2018/Cboe-BZX-and-EDGX-Options-Exchanges-to-Introduce-Multicast-Top-Feed.pdf.
\18\ 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. 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-CboeBZX-2018-013 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-CboeBZX-2018-013. 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
[[Page 9049]]
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-2018-013 and should be submitted
on or before March 23, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-04212 Filed 3-1-18; 8:45 am]
BILLING CODE 8011-01-P
