Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Expand the Types of Messages That Users May Submit Into Bulk Order Ports, 45472-45474 [2018-19375]
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45472
Federal Register / Vol. 83, No. 174 / Friday, September 7, 2018 / Notices
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• Federal Rulemaking Website: Go to
https://www.regulations.gov and search
for Docket ID NRC–2018–0035.
NRC’s Agencywide Documents Access
and Management System (ADAMS):
You may obtain publicly-available
documents online in the ADAMS Public
Documents collection at https://
www.nrc.gov/reading-rm/adams.html.
To begin the search, select ‘‘Begin Webbased ADAMS Search.’’ For problems
with ADAMS, please contact the NRC’s
Public Document Room (PDR) reference
staff at 1–800–397–4209, 301–415–4737,
or by email to pdr.resource@nrc.gov. A
copy of the collection of information
and related instructions may be
obtained without charge by accessing
ADAMS Accession No. ML18135A182.
The supporting statement is available in
ADAMS under Accession No.
ML18135A184.
• NRC’s PDR: You may examine and
purchase copies of public documents at
the NRC’s PDR, Room O1–F21, One
White Flint North, 11555 Rockville
Pike, Rockville, Maryland 20852.
• NRC’s Clearance Officer: A copy of
the collection of information and related
instructions may be obtained without
charge by contacting NRC’s Clearance
Officer, David Cullison, Office of the
Chief Information Officer, U.S. Nuclear
Regulatory Commission, Washington,
DC 20555–0001; telephone: 301–415–
2084; email: Infocollects.Resource@
nrc.gov.
B. Submitting Comments
Please include Docket ID NRC–2018–
0035 in the subject line of your
comment submission, in order to ensure
that the NRC is able to make your
comment submission available to the
public in this docket.
The NRC cautions you not to include
identifying or contact information in
comment submissions that you do not
want to be publicly disclosed in your
comment submission. The NRC will
post all comment submissions at https://
www.regulations.gov as well as enter the
comment submissions into ADAMS,
and the NRC does not routinely edit
comment submissions to remove
identifying or contact information.
If you are requesting or aggregating
comments from other persons for
submission to the NRC, then you should
inform those persons not to include
identifying or contact information that
they do not want to be publicly
disclosed in their comment submission.
Your request should state that the NRC
does not routinely edit comment
submissions to remove such information
before making the comment
submissions available to the public or
entering the comment into ADAMS.
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II. Background
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
Chapter 35), the NRC is requesting
public comment on its intention to
request the OMB’s approval for the
information collection summarized in
this notice.
1. The title of the information
collection: NRC Form 664, ‘‘General
Licensee Registration.’’
2. OMB approval number: 3150–0198.
3. Type of submission: Revision.
4. The form number, if applicable:
NRC Form 664.
5. How often the collection is required
or requested: Annually.
6. Who will be required or asked to
respond: General Licensees of the NRC
who possess certain generally licensed
devices subject to annual registration
authorized pursuant to section 31.5 of
title 10 of the Code of Federal
Regulations (10 CFR).
7. The estimated number of annual
responses: 525.
8. The estimated number of annual
respondents: 525.
9. The estimated number of hours
needed annually to comply with the
information collection requirement or
request: 175 hours (525 annual
responses × 1⁄3 hour).
10. Abstract: NRC Form 664 is used
by NRC general licensees to make
reports regarding certain generally
licensed devices subject to annual
registration. The registration program
allows NRC to better track general
licensees, so that they can be contacted
or inspected as necessary, and to make
sure that generally licensed devices can
be identified even if lost or damaged.
Also, the registration program ensures
that general licensees are aware of and
understand the requirements for the
possession, use, and disposal of devices
containing byproduct material. Greater
awareness helps to ensure that general
licensees will comply with the
regulatory requirements for proper
handling and disposal of generally
licensed devices and would reduce the
potential for incidents that could result
in unnecessary radiation exposure to the
public and contamination of property.
III. Specific Requests for Comments
The NRC is seeking comments that
address the following questions:
1. Is the proposed collection of
information necessary for the NRC to
properly perform its functions? Does the
information have practical utility?
2. Is the estimate of the burden of the
information collection accurate?
3. Is there a way to enhance the
quality, utility, and clarity of the
information to be collected?
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4. How can the burden of the
information collection on respondents
be minimized, including the use of
automated collection techniques or
other forms of information technology?
Dated at Rockville, Maryland, this 4th day
of September 2018.
For the Nuclear Regulatory Commission.
David C. Cullison,
NRC Clearance Officer, Office of the Chief
Information Officer.
[FR Doc. 2018–19417 Filed 9–6–18; 8:45 am]
BILLING CODE 7590–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84011; File No. SR–
CboeEDGX–2018–038]
Self-Regulatory Organizations; Cboe
EDGX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Expand the
Types of Messages That Users May
Submit Into Bulk Order Ports
August 31, 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 August
24, 2018, Cboe EDGX Exchange, Inc.
(the ‘‘Exchange’’ or ‘‘EDGX’’) 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is proposing to expand
the types of messages that Users may
submit into bulk order ports.
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.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6)(iii).
2 17
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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
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The proposed rule change expands
the types of messages that Users may
submit into bulk order ports. A bulk
order port is a logical port that provides
Users with the ability to submit bulk
messages to enter, modify, or cancel
orders designated as Post Only Orders,
provided such orders are entered with a
Time-in-Force of Day 5 or GTD 6 with an
expiration time on that trading day. Post
Only Orders 7 with a Time-in-Force of
Day or GTD are orders that will be
posted to and displayed by the
Exchange, rather than removing
liquidity or routing to another options
exchange. The Exchange currently
limits the use of bulk order ports to
these orders to limit the use of these
ports to liquidity provision. The
primary purpose of bulk order ports is
to encourage Users, and Market-Makers
in particular, to quote on the Exchange.
As a general matter, however, the
overall purpose of bulk order ports is to
allow Users to bundle multiple
instructions in a single message and
provide all Users (not just Market5 An order designated as ‘‘Day’’ means a limit
order to buy or sell that, if not executed expires at
market close. See Rule 21.1(f)(3).
6 An order designated as ‘‘GTD’’ means an order
(or unexecuted portion) that will remain available
for potential display and/or execution for the
amount of time specified by the entering User
unless cancelled by the entering party. See Rule
21.1(f)(1).
7 A ‘‘Post Only Order’’ is an order that is to be
ranked and executed on the Exchange pursuant to
Rule 21.8 (Order Display and Book Processing) or
cancelled, as appropriate, without routing away to
another options exchange except that the order will
not remove liquidity from the EDGX Options Book.
A Post Only Order that is not subject to the Price
adjust process that would lock or cross a Protected
Quotation of another options exchange or the
Exchange will be cancelled. See Rule 21.1(d)(8).
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Makers) with an efficient way to provide
liquidity on the Exchange.
The proposed rule change permits
Users to submit auction responses into
bulk order ports, in addition to Post
Only Orders with a Time-in-Force of
Day or GTD with an expiration time on
that trading day. The Exchange offers
various auction mechanisms that
provide Users with additional execution
opportunities and potential price
improvement for their orders.8 When
the Exchange initiates an auction, it
disseminates messages that contain the
relevant information about the auction
order.9 The purpose of these messages is
to encourage Users to provide liquidity
against which the auctioned orders may
trade. Users submit this liquidity in the
form of auction responses. Like Post
Only Orders with a Time-in-Force of
Day or GTD with an expiration time on
the applicable trading day, auction
responses will not remove liquidity
from the Exchange order book or route
to another options exchange. Auction
responses are similarly available for
execution for a limited time period.
Unexecuted auction responses are
cancelled at the end of the auction, and
thus do not last beyond the auction to
which they were submitted.10 Because
the purpose of auction responses is to
provide liquidity, which is the purpose
of bulk order ports, the Exchange
believes it is appropriate to permit Users
to submit auction responses into bulk
order ports.
Orders submitted to the Exchange
through all ports are subject to various
parameters, such as price reasonability
checks and volume restrictions.11 These
parameters may be configured either by
the Exchange or the Member. Orders are
also subject to other validation checks
and processes before execution, entry
into the book, or cancellation. Examples
of such validation checks include
validating an order’s Capacity, Time-inForce, order instructions, and routing
8 See Rules 21.18 (Step Up Mechanism (‘‘SUM’’),
pursuant to which eligible marketable orders are
auctioned when the Exchange’s disseminated quote
is not at the national best bid or offer (‘‘NBBO’’));
21.19 (Bats Auction Mechanism (‘‘BAM’’), pursuant
to which a Member may submit an eligible order
paired with contra interest for potential price
improvement); and 21.20(d) (Complex Order
Auction (‘‘COA’’), pursuant to which eligible
complex orders are auctioned for execution and
potential price improvement).
9 See Rules 21.18(b) (the Exchange exposes orders
received by SUM); 21.19(b)(1)(C) (the Exchange
sends an auction notification message when it
receives an order for BAM processing); and
21.20(d)(2) (the Exchange initiates the COA process
by sending a COA auction message).
10 See Rules 21.18(b)(3), 21.19(b)(5), and
21.20(d)(4).
11 See, e.g., Rules 21.16 and 21.17 and technical
specifications available at https://markets.cboe.com/
us/options/support/technical/.
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45473
options. While orders submitted
through bulk order ports pass through
these same validation checks and
processes, they are not subject to
parameters such as routing options and
are restricted to one order instruction
and two Time-in-Force options. As a
result, the System can perform these
validation checks with respect to orders
submitted through bulk order ports in a
more efficient manner.
Pursuant to Exchange technical
specifications,12 the order messages per
second that a User may submit through
a non-bulk order port is smaller than the
order messages per second that a User
may submit through a bulk order port.
The Exchange understands from certain
Members that they may restrict the
number of auction response messages
they submit to avoid having to obtain
additional ports. The Exchange believes
permitting Users to submit auction
responses through bulk order ports will
encourage Users to provide increased
liquidity to auction mechanisms in a
more cost-efficient manner. While bulk
order ports have a higher monthly cost,
the higher order message/second rate
may ultimately be more cost-efficient
than a User having to obtain multiple
additional non-bulk ports to
accommodate the submission of auction
responses. Additionally, Users that have
both bulk and non-bulk order ports
would be able to increase their
submission of auction responses
without additional monthly fees.13
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.14 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 15 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
12 These technical specifications are available at
https://markets.cboe.com/us/options/support/
technical/.
13 The Exchange notes certain Market-Makers
currently only have bulk order ports, and thus are
unable to provide liquidity to auction mechanisms
without obtaining additional non-bulk order ports.
14 15 U.S.C. 78f(b).
15 15 U.S.C. 78f(b)(5).
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45474
Federal Register / Vol. 83, No. 174 / Friday, September 7, 2018 / Notices
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) 16 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
In particular, the Exchange believes
the proposed rule change protects
investors and the public interest
because it provides all Users with an
efficient process to enter and update
auction responses. Like quoting, auction
responses are a critical form of liquidity
on the Exchange. Auction mechanisms
and the execution and price
improvement opportunities they
provide are dependent on auction
responses submitted during the
auctions. Permitting Users to submit
auction responses into bulk order ports
is consistent with the purpose of these
ports and have a similar purpose as the
orders that Users are currently
permitted to enter into bulk order ports.
The Exchange believes the proposed
rule change may encourage the
provision of additional liquidity in
auctions, which will provide additional
execution and price improvement
opportunities to auctioned orders,
which ultimately benefit investors.
daltland on DSKBBV9HB2PROD with NOTICES
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange does not believe the proposed
rule change will impose any burden on
intramarket competition, as the use of
bulk order ports and the proposed
functionality is voluntary and available
to all Users of the Exchange. Bulk order
entry functionality is available to all
Users of the Exchange, as is the
proposed functionality to submit
auction responses into bulk order ports.
Users may already submit auction
responses to the Exchange using other
types of ports—the proposed rule
change merely provides Users of the
Exchange with an additional method to
submit auction responses to the
Exchange. The Exchange does not
believe the proposed rule change will
have any direct impact on intermarket
competition, as the proposed rule
change relates solely to the manner in
which Users may submit auction
responses into auctions occurring on the
Exchange.
16 Id.
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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 17 and
subparagraph (f)(6) of Rule 19b–4
thereunder.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–
CboeEDGX–2018–038 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–CboeEDGX–2018–038. 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–CboeEDGX–2018–038 and
should be submitted on or before
September 28, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–19375 Filed 9–6–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
33216]
Notice of Applications for
Deregistration Under Section 8(f) of the
Investment Company Act of 1940
August 31, 2018.
17 15
U.S.C. 78s(b)(3)(A)(iii).
18 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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The following is a notice of
applications for deregistration under
section 8(f) of the Investment Company
Act of 1940 for the month of August
2018. A copy of each application may be
obtained via the Commission’s website
19 17
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CFR 200.30–3(a)(12).
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]]>Agencies
[Federal Register Volume 83, Number 174 (Friday, September 7, 2018)]
[Notices]
[Pages 45472-45474]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-19375]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-84011; File No. SR-CboeEDGX-2018-038]
Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Expand the Types of Messages That Users May Submit Into Bulk Order
Ports
August 31, 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 August 24, 2018, Cboe EDGX Exchange, Inc. (the ``Exchange'' or
``EDGX'') 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 is proposing to expand the types of messages that
Users may submit into bulk order ports.
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.
[[Page 45473]]
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 proposed rule change expands the types of messages that Users
may submit into bulk order ports. A bulk order port is a logical port
that provides Users with the ability to submit bulk messages to enter,
modify, or cancel orders designated as Post Only Orders, provided such
orders are entered with a Time-in-Force of Day \5\ or GTD \6\ with an
expiration time on that trading day. Post Only Orders \7\ with a Time-
in-Force of Day or GTD are orders that will be posted to and displayed
by the Exchange, rather than removing liquidity or routing to another
options exchange. The Exchange currently limits the use of bulk order
ports to these orders to limit the use of these ports to liquidity
provision. The primary purpose of bulk order ports is to encourage
Users, and Market-Makers in particular, to quote on the Exchange. As a
general matter, however, the overall purpose of bulk order ports is to
allow Users to bundle multiple instructions in a single message and
provide all Users (not just Market-Makers) with an efficient way to
provide liquidity on the Exchange.
---------------------------------------------------------------------------
\5\ An order designated as ``Day'' means a limit order to buy or
sell that, if not executed expires at market close. See Rule
21.1(f)(3).
\6\ An order designated as ``GTD'' means an order (or unexecuted
portion) that will remain available for potential display and/or
execution for the amount of time specified by the entering User
unless cancelled by the entering party. See Rule 21.1(f)(1).
\7\ A ``Post Only Order'' is an order that is to be ranked and
executed on the Exchange pursuant to Rule 21.8 (Order Display and
Book Processing) or cancelled, as appropriate, without routing away
to another options exchange except that the order will not remove
liquidity from the EDGX Options Book. A Post Only Order that is not
subject to the Price adjust process that would lock or cross a
Protected Quotation of another options exchange or the Exchange will
be cancelled. See Rule 21.1(d)(8).
---------------------------------------------------------------------------
The proposed rule change permits Users to submit auction responses
into bulk order ports, in addition to Post Only Orders with a Time-in-
Force of Day or GTD with an expiration time on that trading day. The
Exchange offers various auction mechanisms that provide Users with
additional execution opportunities and potential price improvement for
their orders.\8\ When the Exchange initiates an auction, it
disseminates messages that contain the relevant information about the
auction order.\9\ The purpose of these messages is to encourage Users
to provide liquidity against which the auctioned orders may trade.
Users submit this liquidity in the form of auction responses. Like Post
Only Orders with a Time-in-Force of Day or GTD with an expiration time
on the applicable trading day, auction responses will not remove
liquidity from the Exchange order book or route to another options
exchange. Auction responses are similarly available for execution for a
limited time period. Unexecuted auction responses are cancelled at the
end of the auction, and thus do not last beyond the auction to which
they were submitted.\10\ Because the purpose of auction responses is to
provide liquidity, which is the purpose of bulk order ports, the
Exchange believes it is appropriate to permit Users to submit auction
responses into bulk order ports.
---------------------------------------------------------------------------
\8\ See Rules 21.18 (Step Up Mechanism (``SUM''), pursuant to
which eligible marketable orders are auctioned when the Exchange's
disseminated quote is not at the national best bid or offer
(``NBBO'')); 21.19 (Bats Auction Mechanism (``BAM''), pursuant to
which a Member may submit an eligible order paired with contra
interest for potential price improvement); and 21.20(d) (Complex
Order Auction (``COA''), pursuant to which eligible complex orders
are auctioned for execution and potential price improvement).
\9\ See Rules 21.18(b) (the Exchange exposes orders received by
SUM); 21.19(b)(1)(C) (the Exchange sends an auction notification
message when it receives an order for BAM processing); and
21.20(d)(2) (the Exchange initiates the COA process by sending a COA
auction message).
\10\ See Rules 21.18(b)(3), 21.19(b)(5), and 21.20(d)(4).
---------------------------------------------------------------------------
Orders submitted to the Exchange through all ports are subject to
various parameters, such as price reasonability checks and volume
restrictions.\11\ These parameters may be configured either by the
Exchange or the Member. Orders are also subject to other validation
checks and processes before execution, entry into the book, or
cancellation. Examples of such validation checks include validating an
order's Capacity, Time-in-Force, order instructions, and routing
options. While orders submitted through bulk order ports pass through
these same validation checks and processes, they are not subject to
parameters such as routing options and are restricted to one order
instruction and two Time-in-Force options. As a result, the System can
perform these validation checks with respect to orders submitted
through bulk order ports in a more efficient manner.
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\11\ See, e.g., Rules 21.16 and 21.17 and technical
specifications available at https://markets.cboe.com/us/options/support/technical/.
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Pursuant to Exchange technical specifications,\12\ the order
messages per second that a User may submit through a non-bulk order
port is smaller than the order messages per second that a User may
submit through a bulk order port. The Exchange understands from certain
Members that they may restrict the number of auction response messages
they submit to avoid having to obtain additional ports. The Exchange
believes permitting Users to submit auction responses through bulk
order ports will encourage Users to provide increased liquidity to
auction mechanisms in a more cost-efficient manner. While bulk order
ports have a higher monthly cost, the higher order message/second rate
may ultimately be more cost-efficient than a User having to obtain
multiple additional non-bulk ports to accommodate the submission of
auction responses. Additionally, Users that have both bulk and non-bulk
order ports would be able to increase their submission of auction
responses without additional monthly fees.\13\
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\12\ These technical specifications are available at https://markets.cboe.com/us/options/support/technical/.
\13\ The Exchange notes certain Market-Makers currently only
have bulk order ports, and thus are unable to provide liquidity to
auction mechanisms without obtaining additional non-bulk order
ports.
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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.\14\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \15\ 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
[[Page 45474]]
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) \16\
requirement that the rules of an exchange not be designed to permit
unfair discrimination between customers, issuers, brokers, or dealers.
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\14\ 15 U.S.C. 78f(b).
\15\ 15 U.S.C. 78f(b)(5).
\16\ Id.
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In particular, the Exchange believes the proposed rule change
protects investors and the public interest because it provides all
Users with an efficient process to enter and update auction responses.
Like quoting, auction responses are a critical form of liquidity on the
Exchange. Auction mechanisms and the execution and price improvement
opportunities they provide are dependent on auction responses submitted
during the auctions. Permitting Users to submit auction responses into
bulk order ports is consistent with the purpose of these ports and have
a similar purpose as the orders that Users are currently permitted to
enter into bulk order ports. The Exchange believes the proposed rule
change may encourage the provision of additional liquidity in auctions,
which will provide additional execution and price improvement
opportunities to auctioned orders, which ultimately benefit investors.
(B) Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange does not
believe the proposed rule change will impose any burden on intramarket
competition, as the use of bulk order ports and the proposed
functionality is voluntary and available to all Users of the Exchange.
Bulk order entry functionality is available to all Users of the
Exchange, as is the proposed functionality to submit auction responses
into bulk order ports. Users may already submit auction responses to
the Exchange using other types of ports--the proposed rule change
merely provides Users of the Exchange with an additional method to
submit auction responses to the Exchange. The Exchange does not believe
the proposed rule change will have any direct impact on intermarket
competition, as the proposed rule change relates solely to the manner
in which Users may submit auction responses into auctions occurring on
the Exchange.
(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 \17\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\18\
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\17\ 15 U.S.C. 78s(b)(3)(A)(iii).
\18\ 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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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-2018-038 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-CboeEDGX-2018-038. 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-CboeEDGX-2018-038 and should be
submitted on or before September 28, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
Eduardo A. Aleman,
Assistant Secretary.
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\19\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2018-19375 Filed 9-6-18; 8:45 am]
BILLING CODE 8011-01-P
