Sunshine Act Meetings, 52921-52922 [2019-21721]
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Federal Register / Vol. 84, No. 192 / Thursday, October 3, 2019 / Notices
approval of the Exchange’s proposal to
adopt its Program for a one-year pilot
term.3 The exemption was granted
coterminous with the effectiveness of
the pilot Program; both the pilot
Program and exemption are scheduled
to expire on September 30, 2019.4
3 See
id.
March 19, 2015, the Exchange requested an
extension of the exemption for the Program. See
letter from Martha Redding, Senior Counsel and
Assistant Secretary, to Brent J. Fields, Secretary,
Commission, dated March 19, 2015. The pilot
period for the Program was extended until
September 30, 2015. See Securities Exchange Act
Release No. 74572 (Mar. 24, 2015), 80 FR 16705
(Mar. 30, 2015) (SR–NYSEArca–2015–22).
On September 17, 2015, the Exchange requested
another extension of the exemption for the Program.
See letter from Martha Redding, Senior Counsel and
Assistant Secretary, to Brent J. Fields, Secretary,
Commission, dated September 17, 2015. The pilot
period for the Program was extended until March
31, 2016. See Securities Exchange Act Release Nos.
75994 (Sept. 28, 2015), 80 FR 59834 (Oct. 2, 2015)
(SR–NYSEArca–2015–84) and 77236 (Feb. 25,
2016), 81 FR 10943 (Mar. 2, 2016) (SR–NYSEArca–
2016–30). On March 17, 2016, the Exchange
requested another extension of the exemption for
the Program. See letter from Martha Redding,
Senior Counsel and Assistant Secretary, to Brent J.
Fields, Secretary, Commission, dated March 17,
2016. The pilot period for the Program was
extended until August 31, 2016. See Securities
Exchange Act Release No. 77425 (Mar. 23, 2016), 81
FR 17523 (Mar. 29, 2016) (SR–NYSEArca–2016–47).
On August 8, 2016, the Exchange requested another
extension of the exemption for the Program. See
Letter from Martha Redding, Associate General
Counsel and Assistant Secretary, to Brent J. Fields,
Secretary, Commission, dated August 8, 2016. The
pilot period for the Program was extended until
December 31, 2016. See Securities Exchange Act
Release No. 78601 (Aug. 17, 2016), 81 FR 57632
(Aug. 23, 2016) (SR–NYSEArca–2016–113). On
November 28, 2016, the Exchange requested
another extension of the exemption for the program.
See Letter from Martha Redding, Associate General
Counsel and Assistant Secretary, to Brent J. Fields,
Secretary, Commission, dated November 28, 2016.
The pilot period for the Program was extended until
June 30, 2017. See Securities Exchange Act Release
No. 79495 (Dec. 7, 2016), 81 FR 90033 (Dec. 13,
2016) (SR–NYSEArca–2016–157). On May 23, 2017,
the Exchange requested another extension of the
exemption for the program. See Letter from Martha
Redding, Associate General Counsel and Assistant
Secretary, to Brent J. Fields, Secretary, Commission,
dated May 23, 2017. The pilot period for the
Program was extended until December 31, 2017.
See Securities Exchange Act Release No.80851
(June 2, 2017), 82 FR 26722 (June 8, 2017) (SR–
NYSEArca–2017–63). On November 30, 2017, the
Exchange requested another extension of the
exemption to the program. See Letter from Martha
Redding, Assistant Secretary, NYSE, to Brent J.
Fields, Secretary, Commission, dated November 30,
2017. The pilot period for the Program was
extended until June 30, 2018. See Securities
Exchange Act Release No. 82289 (December 11,
2017), 82 FR 59677 (December 15, 2017) (SR–
NYSEArca–2017–137). On June 14, 2018, the
Exchange requested another extension of the
exemption for the Program. See Letter from Martha
Redding, Associate General Counsel and Assistant
Secretary, NYSE to Brent J. Fields, Secretary,
Commission, dated June 14, 2018. The pilot period
for the Program was extended until December 31,
2018. See Securities Exchange Act Release No.
83538 (June 28, 2018), 83 FR 31210 (July 3, 2018)
(SR–NYSEArca–2018–46). On November 30, 2018,
the Exchange requested another extension of the
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The Exchange now seeks to extend
the exemptions until October 31, 2019.5
The Exchange’s request was made in
conjunction with an immediately
effective filing that extends the
operation of the Program through the
same date.6 In its request to extend the
exemption, the Exchange notes that the
participation in the Program has
increased more recently with additional
Retail Liquidity Providers. Accordingly,
the Exchange has asked for additional
time to both allow for additional
opportunities for greater participation in
the Program and allow for further
assessment of the results of such
participation. For this reason and the
reasons stated in the Order originally
granting the limited exemptions, the
Commission finds that extending the
exemption, pursuant to its authority
under Rule 612(c) of Regulation NMS, is
appropriate in the public interest and
consistent with the protection of
investors.
Therefore, it is hereby ordered that,
pursuant to Rule 612(c) of Regulation
NMS, the Exchange is granted a limited
exemption from Rule 612 of Regulation
NMS that allows it to accept and rank
orders priced equal to or greater than
$1.00 per share in increments of $0.001,
in connection with the operation of its
Retail Liquidity Program, until October
31, 2019.
The limited and temporary exemption
extended by this Order is subject to
modification or revocation if at any time
the Commission determines that such
action is necessary or appropriate in
furtherance of the purposes of the
Securities Exchange Act of 1934.
Responsibility for compliance with any
applicable provisions of the Federal
securities laws must rest with the
persons relying on the exemptions that
are the subject of this Order.
exemption for the Program. See Letter from Martha
Redding, Associate General Counsel and Assistant
Secretary, NYSE to Brent J. Fields, Secretary,
Commission, dated November 30, 2018. The pilot
period for the Program was extended until June 30,
2019. See Securities Exchange Act Release No.
84773 (December 10, 2018), 83 FR 64419 (December
14, 2018) (SR–NYSEArca–2018–89). On June 19,
2019, the Exchange requested another extension of
the exemption for the Program. See Letter from
Martha Redding, Associate General Counsel and
Assistant Secretary, NYSE to Vanessa Countryman,
Secretary, Commission, dated June 19, 2019. The
pilot period for the Program was extended until
September 30, 2019. See Securities Exchange Act
Release No. 86198 (June 26, 2019), 84 FR 31648
(July 2, 2019) (SR–NYSEArca–2019–45).
5 See Letter from Martha Redding, Associate
General Counsel and Assistant Secretary, NYSE to
Vanessa Countryman, Secretary, Commission, dated
September 26, 2019.
6 See SR–NYSEArca–2019–67.
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52921
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–21493 Filed 10–2–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meetings
2:00 p.m. on Tuesday,
October 8, 2019.
PLACE: The meeting will be held at the
Commission’s headquarters, 100 F
Street NE, Washington, DC 20549.
STATUS: This meeting will be closed to
the public.
MATTERS TO BE CONSIDERED:
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the closed meeting. Certain
staff members who have an interest in
the matters also may be present.
In the event that the time, date, or
location of this meeting changes, an
announcement of the change, along with
the new time, date, and/or place of the
meeting will be posted on the
Commission’s website at https://
www.sec.gov.
The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B)
and (10) and 17 CFR 200.402(a)(3),
(a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and
(a)(10), permit consideration of the
scheduled matters at the closed meeting.
The subject matters of the closed
meeting will consist of the following
topics:
Institution and settlement of injunctive
actions;
Institution and settlement of
administrative proceedings;
Resolution of litigation claims;
Regulatory matters regarding certain
financial institutions; and
Other matters relating to enforcement
proceedings.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting agenda items that
may consist of adjudicatory,
examination, litigation, or regulatory
matters.
CONTACT PERSON FOR MORE INFORMATION:
For further information; please contact
Vanessa A. Countryman from the Office
of the Secretary at (202) 551–5400.
TIME AND DATE:
7 17
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CFR 200.30–3(a)(83).
03OCN1
52922
Federal Register / Vol. 84, No. 192 / Thursday, October 3, 2019 / Notices
Dated: October 1, 2019.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2019–21721 Filed 10–1–19; 4:15 pm]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87143; File No. SR–
CboeEDGA–2019–014]
Self-Regulatory Organizations; Cboe
EDGA Exchange, Inc.; Suspension of
and Order Instituting Proceedings To
Determine Whether To Approve or
Disapprove a Proposed Rule Change
Amending the Fee Schedule Assessed
on Members To Establish a Monthly
Trading Rights Fee
September 27, 2019.
I. Introduction
On August 1, 2019, Cboe EDGA
Exchange, Inc. (‘‘EDGA’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’),1 and Rule 19b–4
thereunder,2 a proposed rule change
(File Number SR–CboeEDGA–2019–014)
to amend the EDGA fee schedule to
establish a monthly Trading Rights Fee
to be assessed on Members. The
proposed rule change was immediately
effective upon filing with the
Commission pursuant to Section
19(b)(3)(A) of the Act.3 The proposed
rule change was published for comment
in the Federal Register on August 20,
2019.4 The Commission has received
one comment letter on the proposal, and
one response letter from the Exchange.5
Under Section 19(b)(3)(C) of the Act,6
the Commission is hereby: (i)
Temporarily suspending the proposed
rule change; and (ii) instituting
proceedings to determine whether to
approve or disapprove the proposed
rule change.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 See Securities Exchange Act Release No. 86684
(August 14, 2019), 84 FR 43242 (‘‘Notice’’).
5 See Letters from: Theodore R. Lazo, Managing
Director and Associate General Counsel, SIFMA,
dated September 12, 2019 (‘‘SIFMA Letter’’); Adrian
Griffiths, Assistant General Counsel, Cboe, dated
September 25, 2019 (‘‘Exchange Response Letter’’).
Comment letters are available on the Commission’s
website at: https://www.sec.gov/comments/srcboeedga-2019-014/srcboeedga2019014.htm.
6 15 U.S.C. 78s(b)(3)(C).
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II. Description of the Proposed Rule
Change
The Exchange proposes to amend the
Membership Fees section of the EDGA
fee schedule to establish a monthly
Trading Rights Fee, which would be
assessed on Members that trade more
than a specified volume in U.S.
equities.7 Specifically, the Exchange
proposes to charge Members a Trading
Rights Fee of $250 per month for the
ability to trade on the Exchange.8 A
Member would not be charged the
monthly Trading Rights Fee if it
qualifies for one of the following
waivers: (1) The Member has a monthly
ADV 9 of less than 100,000 shares, or (2)
a new Member is within the first three
months of their membership.10
III. Suspension of the Proposed Rule
Change
Pursuant to Section 19(b)(3)(C) of the
Act,11 at any time within 60 days of the
date of filing of a proposed rule change
pursuant to Section 19(b)(1) of the
Act,12 the Commission summarily may
temporarily suspend the change in the
rules of a self-regulatory organization
(’’SRO’’) 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. As discussed below, the
Commission believes a temporary
suspension of the proposed rule change
is necessary and appropriate to allow for
additional analysis of the proposed rule
change’s consistency with the Act and
the rules thereunder.
The Exchange asserts that the
proposed Trading Rights Fee ‘‘is
reasonable because it will assist in
funding the overall regulation and
maintenance of the Exchange’’ and will
contribute to ‘‘ensuring that adequate
resources are devoted to regulation.’’ 13
The Exchange also believes the
7 See Notice, supra note 4, at 43242. The
Commission notes that the Exchange’s affiliates,
Cboe BYX Exchange, Inc., Cboe BZX Exchange, Inc.,
and Cboe EDGX Exchange, Inc., each also filed a
proposed rule change to amend their fee schedules
to establish a monthly Trading Rights Fee to be
assessed on Members: CboeBYX–2019–013,
CboeBZX–2019–072, and CboeEDGX–2019–050,
respectively.
8 See id.
9 See id. ‘‘ADV’’ means average daily volume
calculated as the number of shares added or
removed, combined, per day. ADV is calculated on
a monthly basis. See id. at n.5.
10 See id. at 43242. For any month in which a firm
is approved for Membership with the Exchange, the
monthly Trading Rights Fee would be pro-rated in
accordance with the date on which Membership is
approved. See id. at 43243.
11 15 U.S.C. 78s(b)(3)(C).
12 15 U.S.C. 78s(b)(1).
13 See Notice, supra note 4, at 43243–44.
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proposed fee is reasonable because it
‘‘represents a modest charge’’ applied to
firms that ‘‘have chosen to become
members of the Exchange,’’ and such
firms consume more regulatory
resources and ‘‘benefit from the
Exchange’s regulatory efforts by having
access to a well-regulated market.’’ 14
The Exchange notes that its Regulatory
Services Agreement (‘‘RSA’’) costs,
which cover regulatory services in
connection with market and financial
surveillance, examinations,
investigations, and disciplinary
procedure, have increased 18.9%, while
the Exchange’s overall regulatory costs
have grown 115.1%, from 2016 to
2019.15 The Exchange also asserts that
the proposed Trading Rights Fee is
reasonable because the ‘‘cost of this
membership fee is generally less than
the analogous membership fees of other
markets’’ and that a number of national
securities exchanges currently charge
similar Trading Rights fees to assist in
funding their regulatory efforts.16
The Exchange states that it believes
the proposed Trading Rights Fee is
equitable and not unfairly
discriminatory because it will apply
equally to all Members that do not
qualify for a waiver.17 The Exchange
further asserts that the proposed fee is
equitable and not unfairly
discriminatory because it will
‘‘contribute to a portion of the costs
incurred by the Exchange in providing
its Members with an efficient and wellregulated market, which benefits all
Members.’’ 18
In regard to the proposed waivers
pursuant to which Members would not
be charged the Trading Rights Fee, the
Exchange states that it believes that
such waivers are reasonable.19
Specifically, the Exchange states that
the proposed waiver for Members that
trade less than a monthly ADV of
100,000 shares is reasonable because it
would allow such smaller Members to
continue to trade at a lower cost.20 In
addition, the Exchange states the waiver
is reasonable because such firms
consume fewer regulatory resources.21
The Exchange also asserts that the
proposed ADV threshold of 100,000 is
14 See
id. at 43244.
id.
16 See id. The Exchange notes, for example, that
the Exchange’s proposed Trading Rights Fee of $250
a month is ‘‘substantially lower’’ than the monthly
$1,250 Trading Rights Fee that Nasdaq assesses on
its members. Id.
17 See id. at 43244.
18 See id.
19 See id. The Exchange also asserts that the
waivers are equitable and not unfairly
discriminatory in the Notice. See id.
20 See id.
21 See id.
15 See
E:\FR\FM\03OCN1.SGM
03OCN1
Agencies
[Federal Register Volume 84, Number 192 (Thursday, October 3, 2019)]
[Notices]
[Pages 52921-52922]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-21721]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Sunshine Act Meetings
TIME AND DATE: 2:00 p.m. on Tuesday, October 8, 2019.
PLACE: The meeting will be held at the Commission's headquarters, 100 F
Street NE, Washington, DC 20549.
STATUS: This meeting will be closed to the public.
MATTERS TO BE CONSIDERED: Commissioners, Counsel to the Commissioners,
the Secretary to the Commission, and recording secretaries will attend
the closed meeting. Certain staff members who have an interest in the
matters also may be present.
In the event that the time, date, or location of this meeting
changes, an announcement of the change, along with the new time, date,
and/or place of the meeting will be posted on the Commission's website
at https://www.sec.gov.
The General Counsel of the Commission, or his designee, has
certified that, in his opinion, one or more of the exemptions set forth
in 5 U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B) and (10) and 17 CFR
200.402(a)(3), (a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and (a)(10),
permit consideration of the scheduled matters at the closed meeting.
The subject matters of the closed meeting will consist of the
following topics:
Institution and settlement of injunctive actions;
Institution and settlement of administrative proceedings;
Resolution of litigation claims;
Regulatory matters regarding certain financial institutions; and
Other matters relating to enforcement proceedings.
At times, changes in Commission priorities require alterations in
the scheduling of meeting agenda items that may consist of
adjudicatory, examination, litigation, or regulatory matters.
CONTACT PERSON FOR MORE INFORMATION: For further information; please
contact Vanessa A. Countryman from the Office of the Secretary at (202)
551-5400.
[[Page 52922]]
Dated: October 1, 2019.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2019-21721 Filed 10-1-19; 4:15 pm]
BILLING CODE 8011-01-P