[Federal Register Volume 83, Number 42 (Friday, March 2, 2018)]
[Notices]
[Pages 9047-9049]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-04212]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-82776; File No. SR-CboeBZX-2018-013]
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To
Introduce a New Data Feed on the Exchange's Equity Options Platform
February 26, 2018.
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 February 20, 2018, Cboe BZX Exchange, Inc. (``Exchange'' or ``BZX'')
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.
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\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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange filed a proposal to introduce a new data feed on its
equity options platform (``BZX Options'') to be known as BZX Options
Top.
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.
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 Exchange proposes to introduce a new data feed on BZX Options
to be known as BZX Options Top. The Exchange also proposes to amend
Exchange Rule 21.15(b) to add a description of the BZX Options Top feed
and to change the name of the Multicast PITCH feed to BZX Options
Depth.
A description of each market data product offered by the Exchange
is described in Exchange Rule 21.15(b). The Exchange proposes to amend
Rule 21.15(b) to introduce and add a description of the BZX Options Top
feed to Exchange under subparagraph (2).\5\ The BZX Options Top feed
would be described as ``a data feed that offers top of book quotations
and execution information based on options orders entered into the
System.'' \6\ The
[[Page 9048]]
Exchange notes that its affiliate, Cboe EDGX Exchange, Inc. (``EDGX'')
offers an identical data feed for its equity options platform (``EDGX
Options''), known as EDGX Options Top. The description of the BZX
Options Top feed under Exchange Rule 21.15(b)(2) is substantially
similar to the description of the EDGX Options Top feed under EDGX Rule
21.15(b)(2).\7\
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\5\ The Exchange also proposes to renumber current subparagraph
(2) as (3) and current subparagraph (3) as (4).
\6\ Exchange Rule 21.15(b)(2).
\7\ Unlike BZX, EDGX offers separate EDGX Options Top data feeds
for the EDGX's Simple Book and Complex Order Book. See EDGX Rule
21.15(b)(2).
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The Exchange also propose to rename Multicast Pitch as BZX Options
Depth and amend its rules and fee schedule accordingly. BZX Options
Depth is a data feed that offers depth of book quotations and execution
information based on options orders entered into the System.\8\
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\8\ Exchange Rule 21.15(b)(1).
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\9\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\10\ in particular, in that it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and to protect investors and the public
interest, and that it is not designed to permit unfair discrimination
among customers, brokers, or dealers. This proposal is in keeping with
those principles in that it promotes increased transparency through the
dissemination of BZX Options Top. The proposed rule change would
benefit investors by facilitating their prompt access to real-time top-
of-book information contained in BZX Options Top. The Exchange notes
that its affiliate, EDGX, offers an identical data feed for EDGX
Options, known as EDGX Options Top. The description of the BZX Options
Top feed under Exchange Rule 21.15(b)(2) is substantially similar to
the description of the EDGX Options Top feed under EDGX Rule
21.15(b)(2).\11\
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\9\ 15 U.S.C. 78f.
\10\ 15 U.S.C. 78f(b)(5).
\11\ Unlike BZX, EDGX offers separate EDGX Options Top data
feeds for the EDGX's Simple Book and Complex Order Book. See EDGX
Rule 21.15(b)(2).
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(B) Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. The Exchange
believes that the proposal will promote competition by the Exchange
offering a service similar to that offered by Nasdaq.\12\ Thus, the
Exchange believes this proposed rule change is necessary to permit fair
competition among national securities exchanges. Therefore, the
Exchange does not believe the proposed rule change will result in any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
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\12\ BONO stands for Best of Nasdaq Options (``BONO\SM\'') is a
data feed that provides The Nasdaq Options Market (``NOM'') Best Bid
and Offer and last sale information for trades executed on NOM. See
Nasdaq Sec. 4(d), NASDAQ Options Market Data Distributor Fees
available at http://www.nasdaqtrader.com/Micro.aspx?id=optionsPricing.
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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 \13\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\14\
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\13\ 15 U.S.C. 78s(b)(3)(A)(iii).
\14\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's 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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A proposed rule change filed under Rule 19b-4(f)(6) \15\ normally
does not become operative prior to 30 days after the date of the
filing. However, Rule 19b-4(f)(6)(iii) \16\ permits the Commission to
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing. The Exchange states that
waiving the operative delay will enable the Exchange to implement the
proposed rule change on March 9, 2018, the anticipated date upon which
the Exchange hopes to offer BZX Options Top.\17\ The Exchange further
notes that its affiliate, EDGX, offers a substantially similar data
feed as discussed earlier in this proposed rule change. Based on the
foregoing, the Commission believes that waiver of the 30-day operative
delay is consistent with the protection of investors and the public
interest. Therefore, the Commission hereby waives the operative delay
and designates the proposed rule change as operative upon filing.\18\
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\15\ 17 CFR 240.19b-4(f)(6).
\16\ 17 CFR 240.19b-4(f)(6)(iii).
\17\ See Cboe BZX and EDGX Options Exchanges to Introduce
Multicast Top Feed, available at http://cdn.batstrading.com/resources/release_notes/2018/Cboe-BZX-and-EDGX-Options-Exchanges-to-Introduce-Multicast-Top-Feed.pdf.
\18\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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 (http://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-CboeBZX-2018-013 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-CboeBZX-2018-013. 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
[[Page 9049]]
internet website (http://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-CboeBZX-2018-013 and should be submitted
on or before March 23, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-04212 Filed 3-1-18; 8:45 am]
BILLING CODE 8011-01-P