Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule, 45945-45947 [2023-15125]
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Federal Register / Vol. 88, No. 136 / Tuesday, July 18, 2023 / Notices
Additionally, the Exchange represents a
small percentage of the overall market.
Based on publicly available information,
no single equities exchange has more
than 15% of the market share.15
Therefore, no exchange possesses
significant pricing power in the
execution of order flow. Indeed,
participants can readily choose to send
their orders to other exchange and offexchange venues if they deem fee levels
at those other venues to be more
favorable. Moreover, the Commission
has repeatedly expressed its preference
for competition over regulatory
intervention in determining 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.’’ 16 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’. . . .’’.17 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.
ddrumheller on DSK120RN23PROD with NOTICES1
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
15 Supra
note 1.
Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005).
17 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)).
16 See
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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 18 and paragraph (f) of Rule
19b–4 19 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.
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–
CboeEDGA–2023–010 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to file
number SR–CboeEDGA–2023–010. 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
a.m. and 3 p.m. Copies of the filing also
PO 00000
will be available for inspection and
copying at the principal office of the
Exchange. Do not include personal
identifiable information in submissions.
You should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–CboeEDGA–2023–010 and should
be submitted on or before August 8,
2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2023–15128 Filed 7–17–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–97881; File No. SR–
CboeEDGA–2023–009]
Self-Regulatory Organizations; Cboe
EDGA Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend Its
Fee Schedule
July 12, 2023.
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 June 30,
2023, Cboe EDGA Exchange, Inc.
(‘‘Exchange’’ or ‘‘EDGX’’) 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe EDGA Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGA’’) proposes to
amend its Fee Schedule. 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://markets.cboe.com/us/
equities/regulation/rule_filings/edga/),
at the Exchange’s Office of the
Secretary, and at the Commission’s
Public Reference Room.
20 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
18 15
U.S.C. 78s(b)(3)(A).
19 17 CFR 240.19b–4(f).
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Federal Register / Vol. 88, No. 136 / Tuesday, July 18, 2023 / Notices
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
ddrumheller on DSK120RN23PROD with NOTICES1
1. Purpose
The Exchange proposes to amend its
Fee Schedule applicable to its equities
trading platform (‘‘EDGA Equities’’) by
amending the definition of ADV and the
definition of the Russell Reconstitution
Day. The Exchange proposes to
implement these changes effective June
22, 2023.3
The ‘‘definitions’’ section of the
Exchange’s Fee Schedule defines
various terms used throughout the Fee
Schedule. As explained under the
definitions of ADAV, ADV, and TCV,4
the Exchange currently excludes the
Russell Reconstitution Day from the
calculation of ADAV, ADV, and TCV,
each of which are calculated on a
monthly basis.5 The Russell
Reconstitution Day is defined in the Fee
Schedule as ‘‘the last Friday in June.’’ 6
While generally the Russell
Reconstitution Day does occur on the
3 The Exchange initially filed the proposed fee
change on June 22, 2023 (SR–CboeEDGA–2023–
008). On June 30, 2023, the Exchange withdrew that
proposal and submitted this proposal.
4 ‘‘ADAV’’ means average daily added volume
calculated as the number of shares added per day
and ‘‘ADV’’ means daily volume calculated as the
number of shares added to, removed from, or routed
by, the Exchange, or any combination or subset
thereof, per day. ADAV and ADV are calculated on
a monthly basis. ‘‘TCV’’ means total consolidated
volume as the volume reported by all exchanges
and trade reporting facilities to a consolidated
transaction reporting plan for the month for which
the fees apply. The Exchange notes that it intends
to amend the definition of ADV, discussed infra.
5 The Russell Reconstitution Day is generally
characterized by high trading volumes, much of
which are derived from market participants who are
not generally as active entering the market to
rebalance their holdings in-line with the annual
rebalancing of the Russell indices. The Exchange,
along with other competing exchanges, excludes the
Russell Reconstitution Day from certain volume
calculations as the high trading volumes can
significantly impact trading and quoting
calculations.
6 See EDGA Equities Fee Schedule, Definitions.
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last Friday in June, in months [sic]
where there are five Fridays in June the
Russell Reconstitution Day instead falls
on the fourth Friday in June. The
Exchange proposes to amend the
definition of Russell Reconstitution Day
to ‘‘the fourth Friday in June’’ 7 in order
to provide a more accurate description
of the date which will not be included
in the calculation of ADAV, ADV, and
TCV to its Members.8
The Exchange also proposes to amend
the definition of ADV in order to correct
an inadvertent removal of the word
‘‘average’’. The proposed revised
definition of ADV would read ‘‘average
daily volume calculated as the number
of shares added to, removed from, or
routed by, the Exchange, or any
combination or subset thereof, per day.’’
This proposed definition will align the
definition of ADV on the Exchange with
the definition of ADV on the Exchange’s
affiliates.9 The Exchange is not
proposing to make any other changes to
the Definitions in its Fee Schedule and
will announce the change via a Trade
Desk notice to Members.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the Act
and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.10 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 11 requirements that the rules of
an exchange be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
securities, to remove impediments to
and perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
7 See Russell U.S. Equity Indices Construction
and Methodology, available at https://
research.ftserussell.com/products/downloads/
Russell-US-indexes.pdf (last accessed June 21,
2023).
8 See Rule 1.5(n) (‘‘Member’’). The term
‘‘Member’’ shall mean any registered broker or
dealer that has been admitted to membership in the
Exchange. A Member will have the status of a
‘‘member’’ of the Exchange as that term is defined
in Section 3(a)(3) of the Act. Membership may be
granted to a sole proprietor, partnership,
corporation, limited liability company or other
organization which is a registered broker or dealer
pursuant to Section 15 of the Act, and which has
been approved by the Exchange.
9 See, e.g., EDGX Equities Fee Schedule,
Definitions.
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00065
Fmt 4703
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investors and the public interest.
Additionally, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 12 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers as
well as Section 6(b)(4) 13 as it is
designed to provide for the equitable
allocation of reasonable dues, fees and
other charges among its Members and
other persons using its facilities.
In particular, the Exchange believes
its proposal to amend the definition of
the ‘‘Russell Reconstitution Day’’ is not
designed to permit unfair
discrimination between customer,
issuers, brokers, or dealers and is
designed to provide for the equitable
allocation of fees. Specifically, the
proposal is intended only to add clarity
to the Exchange’s Fee Schedule by
providing Members with additional
certainty as to their level of rebates and
costs for trading during the month of
June and involves no substantive
change. Further, the Exchange’s
proposal to amend the definition of
ADV is intended to correct an
inadvertent deletion of the word
‘‘average’’ and align the definition of
ADV with the definition found on the
Exchange’s affiliates. Additionally, the
proposed changes promote just and
equitable principles of trade and are
designed to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system as they provides transparency to
Members regarding how ADV is
calculated and which date in the month
of June will not be included in the
calculation of ADAV, ADV, and TCV.
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. Rather, as
discussed above, the Exchange believes
that the proposed changes would
encourage the submission of additional
order flow to a public exchange, thereby
promoting market depth, execution
incentives and enhanced execution
opportunities, as well as price discovery
and transparency for all Members. As a
result, the Exchange believes that the
proposed changes further the
Commission’s goal in adopting
Regulation NMS of fostering
competition among orders, which
promotes ‘‘more efficient pricing of
12 Id.
13 15
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U.S.C. 78f(b)(4).
18JYN1
Federal Register / Vol. 88, No. 136 / Tuesday, July 18, 2023 / Notices
individual stocks for all types of orders,
large and small.’’
The Exchange believes the proposed
rule changes do not impose any burden
on intramarket competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. Specifically,
the Exchange does not believe that its
proposal to revise the definitions of
‘‘ADV’’ and ‘‘Russell Reconstitution
Day’’ will have any impact on
competition as the changes are only
intended to add clarity to the
Exchange’s Fee Schedule and involve
no substantive change.
Next, the Exchange believes the
proposed rule changes does not impose
any burden on intermarket competition
that is not necessary or appropriate in
furtherance of the purposes of the Act.
As previously discussed, the Exchange
operates in a highly competitive market.
Members have numerous alternative
venues that they may participate on and
direct their order flow, including other
equities exchanges, off-exchange
venues, and alternative trading systems.
Additionally, the Exchange represents a
small percentage of the overall market.
By providing Members with a greater
level of certainty as to how their volume
is calculated and to which date in the
month of June will be excluded from the
calculation of ADAV, ADV, and TCV,
the Exchange is providing additional
certainty as to the level of rebates and
costs for trading during the month of the
Russell reconstitution, which could
promote competition between the
Exchange and other execution venues.
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.
ddrumheller on DSK120RN23PROD with NOTICES1
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
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 14 and paragraph (f) of Rule
19b–4 15 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
14 15
15 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
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19:16 Jul 17, 2023
Jkt 259001
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission will institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include file number SR–
CboeEDGA–2023–009 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to file
number SR–CboeEDGA–2023–009. 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
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. Do not include personal
identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
PO 00000
Frm 00066
Fmt 4703
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45947
submissions should refer to file number
SR–CboeEDGA–2023–009 and should
be submitted on or before August 8,
2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2023–15125 Filed 7–17–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–97884; File No. SR–
NYSEARCA–2023–44]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing of a
Proposed Rule Change To List and
Trade Shares of the Bitwise Bitcoin
ETP Trust Under NYSE Arca Rule
8.201–E (Commodity-Based Trust
Shares)
July 12, 2023.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on June 28,
2023, NYSE Arca, Inc. (‘‘NYSE Arca’’ or
the ‘‘Exchange’’) 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 self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to list and
trade shares of the Bitwise Bitcoin ETP
Trust under NYSE Arca Rule 8.201–E
(Commodity-Based Trust Shares). The
proposed rule change is available on the
Exchange’s website at www.nyse.com, at
the principal office of the Exchange, and
at the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
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]]>Agencies
[Federal Register Volume 88, Number 136 (Tuesday, July 18, 2023)]
[Notices]
[Pages 45945-45947]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-15125]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-97881; File No. SR-CboeEDGA-2023-009]
Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend Its Fee Schedule
July 12, 2023.
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 June 30, 2023, Cboe EDGA Exchange, Inc. (``Exchange'' or ``EDGX'')
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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Cboe EDGA Exchange, Inc. (the ``Exchange'' or ``EDGA'') proposes to
amend its Fee Schedule. 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://markets.cboe.com/us/equities/regulation/rule_filings/edga/), at the Exchange's Office of the Secretary, and at
the Commission's Public Reference Room.
[[Page 45946]]
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend its Fee Schedule applicable to its
equities trading platform (``EDGA Equities'') by amending the
definition of ADV and the definition of the Russell Reconstitution Day.
The Exchange proposes to implement these changes effective June 22,
2023.\3\
---------------------------------------------------------------------------
\3\ The Exchange initially filed the proposed fee change on June
22, 2023 (SR-CboeEDGA-2023-008). On June 30, 2023, the Exchange
withdrew that proposal and submitted this proposal.
---------------------------------------------------------------------------
The ``definitions'' section of the Exchange's Fee Schedule defines
various terms used throughout the Fee Schedule. As explained under the
definitions of ADAV, ADV, and TCV,\4\ the Exchange currently excludes
the Russell Reconstitution Day from the calculation of ADAV, ADV, and
TCV, each of which are calculated on a monthly basis.\5\ The Russell
Reconstitution Day is defined in the Fee Schedule as ``the last Friday
in June.'' \6\ While generally the Russell Reconstitution Day does
occur on the last Friday in June, in months [sic] where there are five
Fridays in June the Russell Reconstitution Day instead falls on the
fourth Friday in June. The Exchange proposes to amend the definition of
Russell Reconstitution Day to ``the fourth Friday in June'' \7\ in
order to provide a more accurate description of the date which will not
be included in the calculation of ADAV, ADV, and TCV to its Members.\8\
---------------------------------------------------------------------------
\4\ ``ADAV'' means average daily added volume calculated as the
number of shares added per day and ``ADV'' means daily volume
calculated as the number of shares added to, removed from, or routed
by, the Exchange, or any combination or subset thereof, per day.
ADAV and ADV are calculated on a monthly basis. ``TCV'' means total
consolidated volume as the volume reported by all exchanges and
trade reporting facilities to a consolidated transaction reporting
plan for the month for which the fees apply. The Exchange notes that
it intends to amend the definition of ADV, discussed infra.
\5\ The Russell Reconstitution Day is generally characterized by
high trading volumes, much of which are derived from market
participants who are not generally as active entering the market to
rebalance their holdings in-line with the annual rebalancing of the
Russell indices. The Exchange, along with other competing exchanges,
excludes the Russell Reconstitution Day from certain volume
calculations as the high trading volumes can significantly impact
trading and quoting calculations.
\6\ See EDGA Equities Fee Schedule, Definitions.
\7\ See Russell U.S. Equity Indices Construction and
Methodology, available at https://research.ftserussell.com/products/downloads/Russell-US-indexes.pdf (last accessed June 21, 2023).
\8\ See Rule 1.5(n) (``Member''). The term ``Member'' shall mean
any registered broker or dealer that has been admitted to membership
in the Exchange. A Member will have the status of a ``member'' of
the Exchange as that term is defined in Section 3(a)(3) of the Act.
Membership may be granted to a sole proprietor, partnership,
corporation, limited liability company or other organization which
is a registered broker or dealer pursuant to Section 15 of the Act,
and which has been approved by the Exchange.
---------------------------------------------------------------------------
The Exchange also proposes to amend the definition of ADV in order
to correct an inadvertent removal of the word ``average''. The proposed
revised definition of ADV would read ``average daily volume calculated
as the number of shares added to, removed from, or routed by, the
Exchange, or any combination or subset thereof, per day.'' This
proposed definition will align the definition of ADV on the Exchange
with the definition of ADV on the Exchange's affiliates.\9\ The
Exchange is not proposing to make any other changes to the Definitions
in its Fee Schedule and will announce the change via a Trade Desk
notice to Members.
---------------------------------------------------------------------------
\9\ See, e.g., EDGX Equities Fee Schedule, Definitions.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act.\10\ Specifically, the Exchange believes the proposed rule change
is consistent with the Section 6(b)(5) \11\ requirements that the rules
of an exchange be designed to prevent fraudulent and manipulative acts
and practices, to promote just and equitable principles of trade, to
foster cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general, to protect investors and the public interest.
Additionally, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \12\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers as well as Section 6(b)(4) \13\
as it is designed to provide for the equitable allocation of reasonable
dues, fees and other charges among its Members and other persons using
its facilities.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
\12\ Id.
\13\ 15 U.S.C. 78f(b)(4).
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In particular, the Exchange believes its proposal to amend the
definition of the ``Russell Reconstitution Day'' is not designed to
permit unfair discrimination between customer, issuers, brokers, or
dealers and is designed to provide for the equitable allocation of
fees. Specifically, the proposal is intended only to add clarity to the
Exchange's Fee Schedule by providing Members with additional certainty
as to their level of rebates and costs for trading during the month of
June and involves no substantive change. Further, the Exchange's
proposal to amend the definition of ADV is intended to correct an
inadvertent deletion of the word ``average'' and align the definition
of ADV with the definition found on the Exchange's affiliates.
Additionally, the proposed changes promote just and equitable
principles of trade and are designed to remove impediments to and
perfect the mechanism of a free and open market and a national market
system as they provides transparency to Members regarding how ADV is
calculated and which date in the month of June will not be included in
the calculation of ADAV, ADV, and TCV.
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. Rather, as discussed above,
the Exchange believes that the proposed changes would encourage the
submission of additional order flow to a public exchange, thereby
promoting market depth, execution incentives and enhanced execution
opportunities, as well as price discovery and transparency for all
Members. As a result, the Exchange believes that the proposed changes
further the Commission's goal in adopting Regulation NMS of fostering
competition among orders, which promotes ``more efficient pricing of
[[Page 45947]]
individual stocks for all types of orders, large and small.''
The Exchange believes the proposed rule changes do not impose any
burden on intramarket competition that is not necessary or appropriate
in furtherance of the purposes of the Act. Specifically, the Exchange
does not believe that its proposal to revise the definitions of ``ADV''
and ``Russell Reconstitution Day'' will have any impact on competition
as the changes are only intended to add clarity to the Exchange's Fee
Schedule and involve no substantive change.
Next, the Exchange believes the proposed rule changes does not
impose any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act. As previously
discussed, the Exchange operates in a highly competitive market.
Members have numerous alternative venues that they may participate on
and direct their order flow, including other equities exchanges, off-
exchange venues, and alternative trading systems. Additionally, the
Exchange represents a small percentage of the overall market. By
providing Members with a greater level of certainty as to how their
volume is calculated and to which date in the month of June will be
excluded from the calculation of ADAV, ADV, and TCV, the Exchange is
providing additional certainty as to the level of rebates and costs for
trading during the month of the Russell reconstitution, which could
promote competition between the Exchange and other execution venues.
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.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
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 \14\ and paragraph (f) of Rule 19b-4 \15\
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 Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
file number SR-CboeEDGA-2023-009 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to file number SR-CboeEDGA-2023-009. 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
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. Do not
include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We
may redact in part or withhold entirely from publication submitted
material that is obscene or subject to copyright protection. All
submissions should refer to file number SR-CboeEDGA-2023-009 and should
be submitted on or before August 8, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2023-15125 Filed 7-17-23; 8:45 am]
BILLING CODE 8011-01-P
