Sunshine Act Meetings, 56234-56235 [2019-22962]
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56234
Federal Register / Vol. 84, No. 203 / Monday, October 21, 2019 / Notices
prices, products, and services in the
securities markets. Specifically, in
Regulation NMS, the Commission
highlighted the importance of market
forces in determining prices and SRO
revenues and, also, recognized that
current regulation of the market system
‘‘has been remarkably successful in
promoting market competition in its
broader forms that are most important to
investors and listed companies.’’ 18 The
fact that this market is competitive has
also long been recognized by the courts.
In NetCoalition v. Securities and
Exchange Commission, the D.C. Circuit
stated as follows: ‘‘[n]o one disputes
that competition for order flow is
‘fierce.’ . . . As the SEC explained, ‘[i]n
the U.S. national market system, buyers
and sellers of securities, and the brokerdealers that act as their order-routing
agents, have a wide range of choices of
where to route orders for execution’;
[and] ‘no exchange can afford to take its
market share percentages for granted’
because ‘no exchange possesses a
monopoly, regulatory or otherwise, in
the execution of order flow from broker
dealers’. . . .’’.19 Accordingly, the
Exchange does not believe its proposed
fee change imposes any burden on
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act.
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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 not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
Members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 20 and paragraph (f) of Rule
19b–4 21 thereunder. 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 necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
18 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005).
19 NetCoalition v. SEC, 615 F.3d 525, 539 (D.C.
Cir. 2010) (quoting Securities Exchange Act Release
No. 59039 (December 2, 2008), 73 FR 74770, 74782–
83 (December 9, 2008) (SR–NYSEArca–2006–21)).
20 15 U.S.C. 78s(b)(3)(A).
21 17 CFR 240.19b–4(f).
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Commission takes such action, the
Commission will institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Jill M. Peterson,
Assistant Secretary.
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:
[FR Doc. 2019–22833 Filed 10–18–19; 8:45 am]
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–
CboeBYX–2019–016 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-CboeBYX–2019–016. 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–CboeBYX–2019–016 and
should be submitted on or before
November 12, 2019.
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BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meetings
2:00 p.m. on Wednesday,
October 23, 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:
TIME AND DATE:
Institution and settlement of injunctive
actions;
Institution and settlement of administrative
proceedings;
Resolution of litigation claims;
Consideration of amicus participation; 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.
22 17
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CFR 200.30–3(a)(12).
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Federal Register / Vol. 84, No. 203 / Monday, October 21, 2019 / Notices
Dated: October 16, 2019.
Vanessa A. Countryman,
Secretary.
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
[FR Doc. 2019–22962 Filed 10–17–19; 11:15 am]
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
1. Purpose
[Release No. 34–87312; File No. SR–
CboeBZX–2019–086]
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Introduce a
Small Retail Broker Distribution
Program
October 15, 2019.
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 October
1,2019, Cboe BZX Exchange, Inc.
(‘‘Exchange’’ or ‘‘BZX’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III 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.
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I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe BZX Exchange, Inc. (‘‘BZX’’ or
the ‘‘Exchange’’) is filing with the
Securities and Exchange Commission
(the ‘‘Commission’’) a proposed rule
change to introduce a Small Retail
Broker Distribution Program. The text of
the proposed changes to the fee
schedule are enclosed as Exhibit 5. [sic]
The text of the proposed rule change
is also available on the Exchange’s
website (https://markets.cboe.com/us/
equities/regulation/rule_filings/bzx/), at
the Exchange’s Office of the Secretary,
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
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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The purpose of the proposed rule
change is to introduce a pricing program
that would allow small retail brokers
that purchase top of book market data
from the Exchange to benefit from
discounted fees for access to such
market data. The Small Retail Broker
Distribution Program (the ‘‘Program’’)
would reduce the distribution and
consolidation fees paid by small brokerdealers that operate a retail business. In
turn, the Program may increase retail
investor access to real-time U.S. equity
quote and trade information, and allow
the Exchange to better compete for this
business with competitors that offer
similar optional products. The Exchange
initially filed to introduce the Program
on August 1, 2019 (‘‘Initial Proposal’’) to
further ensure that retail investors
served by smaller firms have cost
effective access to its market data
products, and as part of its ongoing
efforts to improve the retail investor
experience in the public markets. The
Initial Proposal was published in the
Federal Register on August 20, 2019,3
and the Commission received no
commenter letters on the proposal. The
Program remained in effect until the fee
change was temporarily suspended
pursuant to a suspension order (the
‘‘Suspension Order’’).4 The Suspension
Order also instituted proceedings to
determine whether to approve or
disapprove the Initial Proposal.5
56235
exchanges. The Cboe One Summary
Feed also contains the individual last
sale information for the Exchange and
each of its affiliated exchanges, and
consolidated volume for all listed equity
securities. The fee for external
distribution of the Cboe One Summary
Feed is $5,000 per month, and external
distributors are also liable for a Data
Consolidation Fee of $1,000 per month,
and User fees equal to $10 per month for
each Professional User, and $0.25 per
month for each Non-Professional User.6
The Cboe One Summary Feed is a top
of book data feed that provides real-time
U.S. equity quote and trade information
to investors based on equity orders
submitted to the Exchange and its
affiliated equities exchanges—i.e., Cboe
BYX Exchange, Inc., Cboe EDGX
Exchange, Inc., and Cboe EDGA
Exchange, Inc. Specifically, the Cboe
One Summary Feed is a data feed that
contains the aggregate best bid and offer
of all displayed orders for securities
traded on the Exchange and its affiliated
Small Retail Broker Eligibility
Requirements
The Exchange proposes to introduce a
Program that would reduce costs for
small retail brokers that provide top of
book data to their clients. In order to be
approved for the Small Retail Broker
Distribution Program, Distributors
would have to provide Cboe One
Summary Feed Data to a limited number
of clients with which the firm has
established a brokerage relationship,
and would have to provide such data
primarily to Non-Professional Data
Users. Specifically, distributors would
have to attest that they meet the
following criteria: (1) Distributor is a
broker-dealer distributing Cboe One
Summary Feed Data to Non-Professional
Data Users with whom the broker-dealer
has a brokerage relationship; (2) More
than 50% of the Distributor’s total Data
User population must consist of NonProfessional Data Users, inclusive of
those not receiving Cboe One Summary
Feed Data ; and (3) Distributor
distributes Cboe One Summary Feed
Data to no more than 5,000 NonProfessional Data Users.
These proposed requirements for
participating in the Program are
designed to ensure that the benefits
provided by the Program inure to the
benefit of small retail brokers that
provide Cboe One Summary Feed Data
to a limited number of subscribers. As
explained later in this filing,
distributors that provide BZX Exchange
Data to a larger number of subscribers
can benefit from the current pricing
structure through scale, due to
subscriber fees that are significantly
lower than those charged by the
Exchange’s competitors, and an
Enterprise license that caps the total
fees to be paid by firms that distribute
market data to a sizeable customer base.
The Exchange believes that offering
3 See Securities Exchange Act Release No. 86667
(August 14, 2019), 84 FR 43233 (August 20, 2019)
(SR–CboeBZX–2019–069).
4 See Securities Exchange Act Release No. 87164
(September 30, 2019) (SR–CboeBZX–2019–069)
(Federal Register publication pending).
5 Id.
6 The Exchange also offers an Enterprise license
for the Cboe One Summary Feed at a cost of $50,000
per month. An Enterprise license permits
distribution to an unlimited number of Professional
and Non-Professional Users, keeping costs down for
firms that provide access to a large number of
subscribers.
Current Fees
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Agencies
[Federal Register Volume 84, Number 203 (Monday, October 21, 2019)]
[Notices]
[Pages 56234-56235]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-22962]
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SECURITIES AND EXCHANGE COMMISSION
Sunshine Act Meetings
TIME AND DATE: 2:00 p.m. on Wednesday, October 23, 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;
Consideration of amicus participation; 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 56235]]
Dated: October 16, 2019.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2019-22962 Filed 10-17-19; 11:15 am]
BILLING CODE 8011-01-P