Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Designation of Longer Period for Commission Action on Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To Amend the Fee Schedule Assessed on Members To Establish a Monthly Trading Rights Fee, 63700-63701 [2019-24859]
Download as PDF
63700
Federal Register / Vol. 84, No. 222 / Monday, November 18, 2019 / Notices
the Commission designated a longer
period within which to approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether to
approve or disapprove the proposed
rule change.5 On May 7, 2019, NYSE
Arca filed Amendment No. 1 to the
proposed rule change, which replaced
and superseded the proposed rule
change as originally filed, and on May
14, 2019, the Commission published the
proposed rule change, as modified by
Amendment No. 1, for notice and
comment and instituted proceedings
under Section 19(b)(2)(B) of the
Exchange Act 6 to determine whether to
approve or disapprove the proposed
rule change, as modified by Amendment
No. 1.7 On August 12, 2019, the
Commission extended the period for
consideration of the proposed rule
change, as modified by Amendment No.
1, to October 13, 2019.8
On October 9, 2019, the Division of
Trading and Markets, pursuant to
delegated authority,9 issued an order
disapproving the proposed rule change,
as modified by Amendment No. 1.10 On
October 15, 2019, the Secretary of the
Commission notified NYSE Arca that,
pursuant to Commission Rule of
Practice 431,11 the Commission would
review the Division’s action pursuant to
delegated authority and that the
Division’s action pursuant to delegated
authority had been automatically
stayed.12
Accordingly, it is ordered, pursuant to
Commission Rule of Practice 431, that
by December 18, 2019, any party or
other person may file a statement in
support of, or in opposition to, the
action made pursuant to delegated
authority.
It is further ordered that the order
disapproving proposed rule change SR–
NYSEArca–2019–01 shall remain in
effect pending the Commission’s review.
By the Commission.
Jill M. Peterson,
Assistant Secretary.
[Release No. 34–87508; File No. SR–
CboeEDGX–2019–051]
[Release No. 34–87500; File No. SR–
CboeBZX–2019–041]
Self-Regulatory Organizations; Cboe
EDGX Exchange, Inc.; Notice of
Withdrawal of Proposed Rule Change
To Amend the Cboe EDGX Exchange,
Inc. Fee Schedule To Modify the
Options Regulatory Fee
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Notice of
Designation of Longer Period for
Commission Action on Proceedings To
Determine Whether To Approve or
Disapprove a Proposed Rule Change
To Amend the Fee Schedule Assessed
on Members To Establish a Monthly
Trading Rights Fee
November 12, 2019.
On August 1, 2019, Cboe EDGX
Exchange, Inc. (‘‘EDGX’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (the ‘‘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 No. SR–
CboeEDGX–2019–051) to modify the
amount of its Options Regulatory Fee
(‘‘ORF’’).3 The proposed rule change
was immediately effective upon filing
with the Commission pursuant to
Section 19(b)(3)(A) of the Act.4 The
proposed rule change was published for
comment in the Federal Register on
August 14, 2019.5 The Commission
received one comment letter on the
proposal.6 On September 30, 2019,
pursuant to Section 19(b)(3)(C) of the
Act, the Commission temporarily
suspended the proposed rule change
and instituted proceedings under
Section 19(b)(2)(B) of the Act to
determine whether to approve or
disapprove the proposed rule change.7
On November 7, 2019, the Exchange
withdrew the proposed rule change
(SR–CboeEDGX–2019–051).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–24870 Filed 11–15–19; 8:45 am]
1 15
5 See Securities Exchange Act Release No. 85461
(Mar. 29, 2019), 84 FR 13339 (Apr. 4, 2019).
6 15 U.S.C. 78s(b)(2)(B).
7 See Securities Exchange Act Release No. 85854
(May 14, 2019), 84 FR 23125 (May 21, 2019).
8 See Securities Exchange Act Release No. 86629
(Aug. 12, 2019), 84 FR 42036 (Aug. 16, 2019).
9 17 CFR 200.30–3(a)(12).
10 See Securities Exchange Act Release No. 87267
(Oct. 9, 2019), 84 FR 55382 (Oct. 16, 2019).
11 See 17 CFR 201.431.
12 See Letter from Secretary of the Commission to
Michael Cavalier, Counsel, and David De Gregorio
Senior Counsel, Intercontinental Exchange/NYSE
(Oct. 15, 2019), available at https://www.sec.gov/
rules/sro/nysearca/2019/34-87267-letter.pdf.
Jkt 250001
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 86611
(August 8, 2019), 84 FR 40447 (August 14, 2019)
(‘‘Notice’’).
4 15 U.S.C. 78s(b)(3)(A). A proposed rule change
may take effect upon filing with the Commission if
it is designated by the exchange as ‘‘establishing or
changing a due, fee, or other charge imposed by the
self-regulatory organization on any person, whether
or not the person is a member of the self-regulatory
organization.’’ 15 U.S.C. 78s(b)(3)(A)(ii).
5 See Notice, supra note 3.
6 See Letter to Vanessa Countryman, Secretary,
Commission, from Ellen Greene, Managing Director,
Securities Industry and Financial Markets
Association (‘‘SIFMA’’), dated August 27, 2019
(‘‘SIFMA Letter’’).
7 See Securities Exchange Act Release No. 87172,
84 FR 53192 (October 4, 2019).
8 17 CFR 200.30–3(a)(12).
2 17
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November 12, 2019.
On May 2, 2019, Cboe BZX Exchange,
Inc. (‘‘BZX’’ 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 to amend the BZX 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 May 16,
2019.4 On June 28, 2019, the
Commission temporarily suspended the
proposed rule change and instituted
proceedings to determine whether to
approve or disapprove the proposed
rule change.5 In response to the OIP, the
Commission received three comment
letters, including a response letter from
the Exchange.6
Section 19(b)(2) of the Act 7 provides
that, after initiating proceedings, the
Commission shall issue an order
approving or disapproving the proposed
rule change not later than 180 days after
the date of publication of notice of filing
of the proposed rule change. The
Commission may extend the period for
issuing an order approving or
disapproving the proposed rule change,
however, by not more than 60 days if
the Commission determines that a
longer period is appropriate and
publishes the reasons for such
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. 85840
(May 10, 2019), 84 FR 22190 (‘‘Notice’’).
5 See Securities Exchange Act Release No. 86233,
84 FR 32230 (July 05, 2019) (‘‘OIP’’).
6 See Letters from Theodore R. Lazo, Managing
Director and Associate General Counsel, SIFMA,
dated July 26, 2019 (‘‘SIFMA Letter’’); Tyler
Gellasch, Executive Director, Healthy Markets,
dated July 26, 2019 (‘‘Healthy Markets Letter’’); and
Rebecca Tenuta, Counsel, Cboe Global Markets,
dated August 9, 2019 (‘‘Exchange Response’’).
7 15 U.S.C. 78s(b)(2).
2 17
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Federal Register / Vol. 84, No. 222 / Monday, November 18, 2019 / Notices
determination. The proposed rule
change was published for notice and
comment in the Federal Register on
May 16, 2019.8 November 12, 2019 is
180 days from that date, and January 11,
2020 is 240 days from that date.
The Commission finds it appropriate
to designate a longer period within
which to issue an order approving or
disapproving the proposed rule change
so that it has sufficient time to consider
the proposed rule change, the issues
raised in the comment letters that have
been submitted in connection therewith,
and the Exchange’s response to
comments.9 Accordingly, the
Commission, pursuant to Section
19(b)(2) of the Act,10 designates January
11, 2020 as the date by which the
Commission should either approve or
disapprove the proposed rule change
(File No. SR–CboeBZX–2019–041).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–24859 Filed 11–15–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87495; File No. SR–CBOE–
2019–106]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Its Fees
Schedule in Connection With Migration
November 8, 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 November
8 See
Notice, supra note 4.
Commission notes that the Exchange
subsequently filed a proposed rule change to
institute an identical trading rights fee which
contained additional information and analysis with
regard to the proposed fee. See Securities Exchange
Act Release No. 86686 (August 15, 2019), 84 FR
43633 (August 21, 2019) (SR–CboeBZX–2019–072).
The Commission suspended and instituted
proceedings for that filing to allow for additional
analysis of the proposed rule change. See Securities
Exchange Act Release No. 87142 (September 27,
2019), 84 FR 52902 (October 03, 2019) (SR–
CboeBZX–2019–072).
10 15 U.S.C. 78s(b)(2).
11 17 CFR 200.30–3(a)(57).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
9 The
VerDate Sep<11>2014
17:41 Nov 15, 2019
Jkt 250001
1, 2019, Cboe Exchange, Inc.
(‘‘Exchange’’ or ‘‘Cboe Options’’) filed
with the Securities and Exchange
Commission (the ‘‘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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe Exchange, Inc. (the ‘‘Exchange’’
or ‘‘Cboe Options’’) proposes to amend
its Fees Schedule in connection with
migration. The text of the proposed rule
change is provided in Exhibit 5.
The text of the proposed rule change
is also available on the Exchange’s
website (https://www.cboe.com/
AboutCBOE/CBOELegalRegulatory
Home.aspx), 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
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
In 2016, the Exchange’s parent
company, Cboe Global Markets, Inc.
(formerly named CBOE Holdings, Inc.)
(‘‘Cboe Global’’), which is also the
parent company of Cboe C2 Exchange,
Inc. (‘‘C2’’), acquired Cboe EDGA
Exchange, Inc. (‘‘EDGA’’), Cboe EDGX
Exchange, Inc. (‘‘EDGX’’ or ‘‘EDGX
Options’’), Cboe BZX Exchange, Inc.
(‘‘BZX’’ or ‘‘BZX Options’’), and Cboe
BYX Exchange, Inc. (‘‘BYX’’ and,
together with Cboe Options, C2, EDGX,
EDGA, and BZX, the ‘‘Cboe Affiliated
Exchanges’’). Cboe Options intends to
PO 00000
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Fmt 4703
Sfmt 4703
63701
migrate its trading platform to the same
system used by the Cboe Affiliated
Exchanges, and also migrate its current
billing system to a new billing system,
on October 7, 2019 (the ‘‘migration’’).
Accordingly, the Exchange proposes to
amend certain fees in the Fees Schedule
in connection with the migration.3
Consolidated Rate Tables
First, the Exchange proposes to
reorganize and rename its standard
transaction fee tables. Particularly, the
Exchange proposes to consolidate its
current rate tables for equity, ETF and
ETN, and Index Products excluding
Underlying Symbol List A into a single
table and relocate its transaction fees
relating to Sector Indexes into that table.
As proposed, the Fees Schedule will
consist of two transaction fee tables
renamed as: (1) ‘‘Rate Table—All
Products Excluding Underlying Symbol
List A’’ and (2) ‘‘Rate Table—
Underlying Symbol List A’’. The
Exchange also proposes to make other
clarifying, non-substantive changes such
as: (i) Separating out Clearing Trading
Permit Holder Proprietary fees for
Underlying Symbol List A into two line
items: (1) Underlying Symbol List A
excluding VIX and (2) VIX and (ii)
consolidating and relocating fees for
Broker-Dealer, Non-Trading Permit
Holder Market Maker, Professional and
Joint Back Office orders in RUT, RLG,
RLV, RUI and UKXM into the section
immediately above it (i.e., for fees for
Broker-Dealer, Non-Trading Permit
Holder Market Maker, Professional and
Joint Back Office orders in OEX, XEO,
SPX (incl SPXW) and VIX). The
Exchange also proposes to indicate in
the rate table that fees for RLG, RLV,
RUI and UKXM are $0.00, as such fees
are currently waived.4 The Exchange
notes the proposed consolidation and
non-substantive changes are intended to
make the Fees Schedule easier to read
and not intended to change any fees
other than what is discussed below.
3 The Exchange initially filed the proposed fee
changes on October 4, 2019 (SR–CBOE–2019–097).
On October 18, 2019, (but business date October 21,
2019) the Exchange withdrew that filing and
replaced it with SR–CBOE–2019–101. On
November 1, 2019, the Exchange withdrew that
filing and submitted this filing.
4 The Exchange notes such waiver is in place
through December 31, 2019. See Cboe Options
Footnote 40, which footnote is appended to
corresponding rates in the rate table as applicable.
The proposed addition of Fee Code WR in the rate
table is not intended to make such waiver
permanent and Footnote 40 continues to apply.
E:\FR\FM\18NON1.SGM
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Agencies
[Federal Register Volume 84, Number 222 (Monday, November 18, 2019)]
[Notices]
[Pages 63700-63701]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-24859]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87500; File No. SR-CboeBZX-2019-041]
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Designation of Longer Period for Commission Action on Proceedings To
Determine Whether To Approve or Disapprove a Proposed Rule Change To
Amend the Fee Schedule Assessed on Members To Establish a Monthly
Trading Rights Fee
November 12, 2019.
On May 2, 2019, Cboe BZX Exchange, Inc. (``BZX'' 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 to amend the BZX 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 May 16, 2019.\4\
On June 28, 2019, the Commission temporarily suspended the proposed
rule change and instituted proceedings to determine whether to approve
or disapprove the proposed rule change.\5\ In response to the OIP, the
Commission received three comment letters, including a response letter
from the Exchange.\6\
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ See Securities Exchange Act Release No. 85840 (May 10,
2019), 84 FR 22190 (``Notice'').
\5\ See Securities Exchange Act Release No. 86233, 84 FR 32230
(July 05, 2019) (``OIP'').
\6\ See Letters from Theodore R. Lazo, Managing Director and
Associate General Counsel, SIFMA, dated July 26, 2019 (``SIFMA
Letter''); Tyler Gellasch, Executive Director, Healthy Markets,
dated July 26, 2019 (``Healthy Markets Letter''); and Rebecca
Tenuta, Counsel, Cboe Global Markets, dated August 9, 2019
(``Exchange Response'').
---------------------------------------------------------------------------
Section 19(b)(2) of the Act \7\ provides that, after initiating
proceedings, the Commission shall issue an order approving or
disapproving the proposed rule change not later than 180 days after the
date of publication of notice of filing of the proposed rule change.
The Commission may extend the period for issuing an order approving or
disapproving the proposed rule change, however, by not more than 60
days if the Commission determines that a longer period is appropriate
and publishes the reasons for such
[[Page 63701]]
determination. The proposed rule change was published for notice and
comment in the Federal Register on May 16, 2019.\8\ November 12, 2019
is 180 days from that date, and January 11, 2020 is 240 days from that
date.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(2).
\8\ See Notice, supra note 4.
---------------------------------------------------------------------------
The Commission finds it appropriate to designate a longer period
within which to issue an order approving or disapproving the proposed
rule change so that it has sufficient time to consider the proposed
rule change, the issues raised in the comment letters that have been
submitted in connection therewith, and the Exchange's response to
comments.\9\ Accordingly, the Commission, pursuant to Section 19(b)(2)
of the Act,\10\ designates January 11, 2020 as the date by which the
Commission should either approve or disapprove the proposed rule change
(File No. SR-CboeBZX-2019-041).
---------------------------------------------------------------------------
\9\ The Commission notes that the Exchange subsequently filed a
proposed rule change to institute an identical trading rights fee
which contained additional information and analysis with regard to
the proposed fee. See Securities Exchange Act Release No. 86686
(August 15, 2019), 84 FR 43633 (August 21, 2019) (SR-CboeBZX-2019-
072). The Commission suspended and instituted proceedings for that
filing to allow for additional analysis of the proposed rule change.
See Securities Exchange Act Release No. 87142 (September 27, 2019),
84 FR 52902 (October 03, 2019) (SR-CboeBZX-2019-072).
\10\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(57).
---------------------------------------------------------------------------
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-24859 Filed 11-15-19; 8:45 am]
BILLING CODE 8011-01-P