Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 2.12 To Add References to Cboe Options and C2, 23750-23752 [2018-10828]
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Federal Register / Vol. 83, No. 99 / Tuesday, May 22, 2018 / Notices
negotiated service agreements. This
notice informs the public of the filing,
invites public comment, and takes other
administrative steps.
DATES: Comments are due: May 24,
2018.
ADDRESSES: Submit comments
electronically via the Commission’s
Filing Online system at https://
www.prc.gov. Those who cannot submit
comments electronically should contact
the person identified in the FOR FURTHER
INFORMATION CONTACT section by
telephone for advice on filing
alternatives.
FOR FURTHER INFORMATION CONTACT:
David A. Trissell, General Counsel, at
202–789–6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
amozie on DSK3GDR082PROD with NOTICES1
I. Introduction
II. Docketed Proceeding(s)
I. Introduction
The Commission gives notice that the
Postal Service has filed request(s) for the
Commission to consider matters related
to negotiated service agreement(s). The
requests(s) may propose the addition or
removal of a negotiated service
agreement from the market dominant or
the competitive product list, or the
modification of an existing product
currently appearing on the market
dominant or the competitive product
list.
Section II identifies the docket
number(s) associated with each Postal
Service request, the title of each Postal
Service request, the request’s acceptance
date, and the authority cited by the
Postal Service for each request. For each
request, the Commission appoints an
officer of the Commission to represent
the interests of the general public in the
proceeding, pursuant to 39 U.S.C. 505
(Public Representative). Section II also
establishes comment deadline(s)
pertaining to each request.
The public portions of the Postal
Service’s request(s) can be accessed via
the Commission’s website (https://
www.prc.gov). Non-public portions of
the Postal Service’s request(s), if any,
can be accessed through compliance
with the requirements of 39 CFR
3007.40.
The Commission invites comments on
whether the Postal Service’s request(s)
in the captioned docket(s) are consistent
with the policies of title 39. For
request(s) that the Postal Service states
concern market dominant product(s),
applicable statutory and regulatory
requirements include 39 U.S.C. 3622, 39
U.S.C. 3642, 39 CFR part 3010, and 39
CFR part 3020, subpart B. For request(s)
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that the Postal Service states concern
competitive product(s), applicable
statutory and regulatory requirements
include 39 U.S.C. 3632, 39 U.S.C. 3633,
39 U.S.C. 3642, 39 CFR part 3015, and
39 CFR part 3020, subpart B. Comment
deadline(s) for each request appear in
section II.
II. Docketed Proceeding(s)
1. Docket No(s).: CP2018–220; Filing
Title: Notice of United States Postal
Service of Filing a Functionally
Equivalent Global Expedited Package
Services 7 Negotiated Service
Agreement and Application for NonPublic Treatment of Material Filed
Under Seal; Filing Acceptance Date:
May 16, 2018; Filing Authority: 39 CFR
3015.5; Public Representative: Kenneth
R. Moeller; Comments Due: May 24,
2018.
This notice will be published in the
Federal Register.
Stacy L. Ruble,
Secretary.
[FR Doc. 2018–10857 Filed 5–21–18; 8:45 am]
BILLING CODE 7710–FW–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83255; File No. SR–
CboeEDGA–2018–008]
Self-Regulatory Organizations; Cboe
EDGA Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend Rule
2.12 To Add References to Cboe
Options and C2
May 16, 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 May 14,
2018, Cboe EDGA Exchange, Inc.
(‘‘EDGA’’ or the ‘‘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
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
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).
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Frm 00126
Fmt 4703
Sfmt 4703
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 Rule 2.12 to add references to
Cboe Exchange, Inc. (‘‘Cboe Options’’)
and Cboe C2 Exchange, Inc. (‘‘C2’’). The
Exchange does not propose to amend
the requirements of this rule.
(additions are italicized; deletions are
[bracketed])
*
*
*
*
*
Cboe EDGA Exchange, Inc. Rules
*
*
*
*
*
Rule 2.12. Cboe Trading, Inc. as
Inbound Router
(a) For so long as the Exchange is
affiliated with Cboe Exchange, Inc.,
Cboe C2 Exchange, Inc., Cboe EDGX
Exchange, Inc., Cboe BYX Exchange,
Inc., or Cboe BZX Exchange, Inc. (each,
a ‘‘Cboe Exchange’’), and Cboe Trading,
Inc. (‘‘Cboe Trading’) in its capacity as
a facility of each Cboe Exchange is
utilized for the routing of orders from a
Cboe Exchange to the Exchange, the
Exchange undertakes as follows:
(1)–(4) No change.
(b) No change.
*
*
*
*
*
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
In December 2016, the Exchange and
its affiliates 5 received approval to effect
5 As of December 2016, the Exchange’s affiliates
included Cboe BZX Exchange, Inc. (formerly Bats
E:\FR\FM\22MYN1.SGM
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Federal Register / Vol. 83, No. 99 / Tuesday, May 22, 2018 / Notices
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a merger (the ‘‘Merger’’) of the
Exchange’s parent company, Bats Global
Markets, Inc. with CBOE Holdings, Inc.
(now known as Cboe Global Markets,
Inc.), the parent company of Cboe
Options and C2.6 Hereinafter, the
Exchange, BZX, BYX, EDGX, Cboe
Options, and C2 will be collectively
referred to as the ‘‘Cboe Affiliated
Exchanges.’’
In connection with the Merger, the
Cboe Affiliated Exchanges are working
to migrate Cboe Options and C2 onto the
Bats technology platform, and align
certain system functionality, retaining
only intended differences between the
Cboe Affiliated Exchanges.7 The
Exchange proposes to amend Rule 2.12
to reflect that Cboe Options and C2 are
affiliated with the Exchange and that
upon completion of the migration, Cboe
Trading, Inc. (‘‘Cboe Trading’’) may also
act as the inbound router for routing
orders from Cboe Options and C2 to the
Exchange. The Exchange previously
implemented limitations and conditions
on Cboe Trading’s affiliation with the
Exchange in order to permit the
Exchange to accept inbound orders that
Cboe Trading routes in its capacity as a
facility of the Exchange, BZX, BYX, and
EDGX.8 Those same conditions and
limitations will apply to any inbound
orders that Cboe Trading routes in its
capacity as a facility of Cboe Options
and C2.
Cboe Trading currently provides
Members of the Exchange, BZX, BYX,
and EDGX with optional routing
services to other market centers. In
certain circumstances, Cboe Trading
provides inbound routing from BZX,
BYX, and EDGX to the Exchange.
Exchange Rule 2.12 governs this
inbound routing of orders by Cboe
Trading to the Exchange in Cboe
Trading’s capacity as a facility of the
Exchange. The Exchange proposes to
amend Rule 2.12 to reflect that Cboe
Options and C2 are affiliated with the
Exchange and that Cboe Trading may
also act as the inbound router for
BZX Exchange, Inc.) (‘‘BZX’’), Cboe BYX Exchange,
Inc. (formerly Bats BYX Exchange. Inc.) (‘‘BYX’’),
and Cboe EDGX Exchange, Inc. (formerly Bats
EDGX Exchange, Inc.) (‘‘EDGX’’).
6 See Securities Exchange Act Release No. 79585
(December 16, 2016), 81 FR 93988 (December 22,
2016) (SR–BatsBZX–2016–68; SR–BatsBYX–2016–
29; SR–BatsEDGA–2016–24; SR–BatsEDGX–2016–
60).
7 It is anticipated that the C2 migration onto the
Bats technology platform will be completed on May
14, 2018, and the Cboe Options migration onto the
Bats technology platform will be completed on
October 7, 2019.
8 See Securities Exchange Act Release No. 61698
(March 12, 2010), 75 FR 13151 (March 18, 2010)
(order approving application of EDGA Exchange,
Inc. (currently named Cboe EDGA Exchange, Inc.)
for registration as a national securities exchange).
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16:47 May 21, 2018
Jkt 241001
routing orders from Cboe Options and
C2 to the Exchange upon migration of
Cboe Options and C2 onto the Bats
technology platform. The Exchange does
not propose to amend the requirements
of this rule. Therefore, the conditions
and limitations set forth in Exchange
Rule 2.12(a) will remain the same. The
Exchange believes that Rule 2.12 will
continue to adequately manage the
potential for conflicts of interest that
could arise from Cboe Trading routing
orders to the Exchange.
Implementation Date
With respect to C2, the Exchange
intends to implement the proposed rule
change on or about May 14, 2018, which
is the anticipated date upon which the
migration of C2 onto the Bats
technology platform will be complete.
With respect to Cboe Options, the
Exchange intends to implement the
proposed rule change on or about
October 7, 2019, which is the
anticipated date upon which the
migration of Cboe Options onto the Bats
technology platform will be complete.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’) and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.9 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 10 requirements that the rules of
an exchange be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and 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.
Additionally, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 11 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
The Exchange does not propose to
amend the requirements of the rule and
the proposed rule change is intended
only to reflect that Cboe Options and C2
are affiliated with the Exchange and that
Cboe Trading may also route inbound
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
11 Id.
10 15
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Frm 00127
Fmt 4703
23751
orders from Cboe Options and C2 to the
Exchange upon migration of Cboe
Options and C2 onto the Bats
technology platform. A consistent
technology offering through the use of
Cboe Trading by each of the Cboe
Affiliated Exchanges will, in turn,
simplify the technology
implementation, changes, and
maintenance by users of the Exchange
that are also participants on BZX, BYX,
EDGX, Cboe Options, and C2. As such,
the proposed rule change would foster
cooperation and coordination with
persons engaged in facilitating
transactions in securities and would
remove impediments to and perfect the
mechanism of a free and open market
and a national market system.
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 that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange reiterates that the proposed
rule change is being proposed in the
context of the technology integration of
the Cboe Affiliated Exchanges. Thus, the
Exchange believes this proposed rule
change is necessary to permit fair
competition among national securities
exchanges. In addition, the Exchange
believes the proposed rule change will
benefit Exchange participants in that it
is one of several changes necessary to
achieve a consistent technology offering
by the Cboe Affiliated Exchanges.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No comments were solicited or
received 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) of the Act 12 and Rule 19b–
4(f)(6) thereunder.13
12 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) 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,
13 17
Continued
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Federal Register / Vol. 83, No. 99 / Tuesday, May 22, 2018 / Notices
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative for 30 days after the
date of its filing. However, Rule 19b–
4(f)(6)(iii) 14 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 requested that the
Commission waive the 30-day operative
delay so that the proposed rule change
will become operative on filing. Waiver
of the operative delay would allow the
Exchange to implement the proposed
rule change on May 14, 2018, which is
same day as the anticipated date for the
migration of C2 to the Bats technology
platform. The Exchange stated that the
proposed rule change promotes the
protection of investors and the public
interest because it would minimize the
amount of disruption as C2 (and
eventually Cboe Options) migrates to
the Bats technology platform. Therefore,
the Commission believes that waiver of
the 30-day operative delay is consistent
with the protection of investors and the
public interest. Accordingly, the
Commission hereby waives the
operative delay and designates the
proposed rule change operative upon
filing.15
At any time within 60 days of the
filing of such proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
change 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:
amozie on DSK3GDR082PROD with NOTICES1
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
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.
14 17 CFR 240.19b–4(f)(6)(iii).
15 For purposes only of waiving the 30-day
operative delay, the Commission also has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
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16:47 May 21, 2018
Jkt 241001
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
CboeEDGA–2018–008 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–CboeEDGA–2018–008. 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–CboeEDGA–2018–008, and
should be submitted on or before June
12, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–10828 Filed 5–21–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83257; File No. SR–ISE–
2018–42]
Self-Regulatory Organizations; Nasdaq
ISE, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend the Exchanges
Schedule of Fees
May 16, 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 May 1,
2018, Nasdaq ISE, LLC (‘‘ISE’’ 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
Exchanges Schedule of Fees.
The text of the proposed rule change
is available on the Exchange’s website at
https://ise.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, as described further
below.
1 15
16 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00128
Fmt 4703
Sfmt 4703
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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]]>Agencies
[Federal Register Volume 83, Number 99 (Tuesday, May 22, 2018)]
[Notices]
[Pages 23750-23752]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-10828]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-83255; File No. SR-CboeEDGA-2018-008]
Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend Rule 2.12 To Add References to Cboe Options and C2
May 16, 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 May 14, 2018, Cboe EDGA Exchange, Inc. (``EDGA'' or the
``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 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 Rule 2.12 to add references
to Cboe Exchange, Inc. (``Cboe Options'') and Cboe C2 Exchange, Inc.
(``C2''). The Exchange does not propose to amend the requirements of
this rule.
(additions are italicized; deletions are [bracketed])
* * * * *
Cboe EDGA Exchange, Inc. Rules
* * * * *
Rule 2.12. Cboe Trading, Inc. as Inbound Router
(a) For so long as the Exchange is affiliated with Cboe Exchange,
Inc., Cboe C2 Exchange, Inc., Cboe EDGX Exchange, Inc., Cboe BYX
Exchange, Inc., or Cboe BZX Exchange, Inc. (each, a ``Cboe Exchange''),
and Cboe Trading, Inc. (``Cboe Trading') in its capacity as a facility
of each Cboe Exchange is utilized for the routing of orders from a Cboe
Exchange to the Exchange, the Exchange undertakes as follows:
(1)-(4) No change.
(b) No change.
* * * * *
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
In December 2016, the Exchange and its affiliates \5\ received
approval to effect
[[Page 23751]]
a merger (the ``Merger'') of the Exchange's parent company, Bats Global
Markets, Inc. with CBOE Holdings, Inc. (now known as Cboe Global
Markets, Inc.), the parent company of Cboe Options and C2.\6\
Hereinafter, the Exchange, BZX, BYX, EDGX, Cboe Options, and C2 will be
collectively referred to as the ``Cboe Affiliated Exchanges.''
---------------------------------------------------------------------------
\5\ As of December 2016, the Exchange's affiliates included Cboe
BZX Exchange, Inc. (formerly Bats BZX Exchange, Inc.) (``BZX''),
Cboe BYX Exchange, Inc. (formerly Bats BYX Exchange. Inc.)
(``BYX''), and Cboe EDGX Exchange, Inc. (formerly Bats EDGX
Exchange, Inc.) (``EDGX'').
\6\ See Securities Exchange Act Release No. 79585 (December 16,
2016), 81 FR 93988 (December 22, 2016) (SR-BatsBZX-2016-68; SR-
BatsBYX-2016-29; SR-BatsEDGA-2016-24; SR-BatsEDGX-2016-60).
---------------------------------------------------------------------------
In connection with the Merger, the Cboe Affiliated Exchanges are
working to migrate Cboe Options and C2 onto the Bats technology
platform, and align certain system functionality, retaining only
intended differences between the Cboe Affiliated Exchanges.\7\ The
Exchange proposes to amend Rule 2.12 to reflect that Cboe Options and
C2 are affiliated with the Exchange and that upon completion of the
migration, Cboe Trading, Inc. (``Cboe Trading'') may also act as the
inbound router for routing orders from Cboe Options and C2 to the
Exchange. The Exchange previously implemented limitations and
conditions on Cboe Trading's affiliation with the Exchange in order to
permit the Exchange to accept inbound orders that Cboe Trading routes
in its capacity as a facility of the Exchange, BZX, BYX, and EDGX.\8\
Those same conditions and limitations will apply to any inbound orders
that Cboe Trading routes in its capacity as a facility of Cboe Options
and C2.
---------------------------------------------------------------------------
\7\ It is anticipated that the C2 migration onto the Bats
technology platform will be completed on May 14, 2018, and the Cboe
Options migration onto the Bats technology platform will be
completed on October 7, 2019.
\8\ See Securities Exchange Act Release No. 61698 (March 12,
2010), 75 FR 13151 (March 18, 2010) (order approving application of
EDGA Exchange, Inc. (currently named Cboe EDGA Exchange, Inc.) for
registration as a national securities exchange).
---------------------------------------------------------------------------
Cboe Trading currently provides Members of the Exchange, BZX, BYX,
and EDGX with optional routing services to other market centers. In
certain circumstances, Cboe Trading provides inbound routing from BZX,
BYX, and EDGX to the Exchange. Exchange Rule 2.12 governs this inbound
routing of orders by Cboe Trading to the Exchange in Cboe Trading's
capacity as a facility of the Exchange. The Exchange proposes to amend
Rule 2.12 to reflect that Cboe Options and C2 are affiliated with the
Exchange and that Cboe Trading may also act as the inbound router for
routing orders from Cboe Options and C2 to the Exchange upon migration
of Cboe Options and C2 onto the Bats technology platform. The Exchange
does not propose to amend the requirements of this rule. Therefore, the
conditions and limitations set forth in Exchange Rule 2.12(a) will
remain the same. The Exchange believes that Rule 2.12 will continue to
adequately manage the potential for conflicts of interest that could
arise from Cboe Trading routing orders to the Exchange.
Implementation Date
With respect to C2, the Exchange intends to implement the proposed
rule change on or about May 14, 2018, which is the anticipated date
upon which the migration of C2 onto the Bats technology platform will
be complete. With respect to Cboe Options, the Exchange intends to
implement the proposed rule change on or about October 7, 2019, which
is the anticipated date upon which the migration of Cboe Options onto
the Bats technology platform will be complete.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\9\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \10\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and 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. Additionally,
the Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \11\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
\11\ Id.
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The Exchange does not propose to amend the requirements of the rule
and the proposed rule change is intended only to reflect that Cboe
Options and C2 are affiliated with the Exchange and that Cboe Trading
may also route inbound orders from Cboe Options and C2 to the Exchange
upon migration of Cboe Options and C2 onto the Bats technology
platform. A consistent technology offering through the use of Cboe
Trading by each of the Cboe Affiliated Exchanges will, in turn,
simplify the technology implementation, changes, and maintenance by
users of the Exchange that are also participants on BZX, BYX, EDGX,
Cboe Options, and C2. As such, the proposed rule change would foster
cooperation and coordination with persons engaged in facilitating
transactions in securities and would remove impediments to and perfect
the mechanism of a free and open market and a national market system.
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 that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange reiterates that
the proposed rule change is being proposed in the context of the
technology integration of the Cboe Affiliated Exchanges. Thus, the
Exchange believes this proposed rule change is necessary to permit fair
competition among national securities exchanges. In addition, the
Exchange believes the proposed rule change will benefit Exchange
participants in that it is one of several changes necessary to achieve
a consistent technology offering by the Cboe Affiliated Exchanges.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No comments were solicited or received 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) of the Act \12\ and Rule 19b-
4(f)(6) thereunder.\13\
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
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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[[Page 23752]]
A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 30 days after the date of its filing. However,
Rule 19b-4(f)(6)(iii) \14\ 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 requested that the
Commission waive the 30-day operative delay so that the proposed rule
change will become operative on filing. Waiver of the operative delay
would allow the Exchange to implement the proposed rule change on May
14, 2018, which is same day as the anticipated date for the migration
of C2 to the Bats technology platform. The Exchange stated that the
proposed rule change promotes the protection of investors and the
public interest because it would minimize the amount of disruption as
C2 (and eventually Cboe Options) migrates to the Bats technology
platform. Therefore, the Commission believes that waiver of the 30-day
operative delay is consistent with the protection of investors and the
public interest. Accordingly, the Commission hereby waives the
operative delay and designates the proposed rule change operative upon
filing.\15\
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\14\ 17 CFR 240.19b-4(f)(6)(iii).
\15\ For purposes only of waiving the 30-day operative delay,
the Commission also has 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 such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule change 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-CboeEDGA-2018-008 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-CboeEDGA-2018-008. 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-CboeEDGA-2018-008, and should be
submitted on or before June 12, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-10828 Filed 5-21-18; 8:45 am]
BILLING CODE 8011-01-P
