[Federal Register Volume 76, Number 251 (Friday, December 30, 2011)]
[Proposed Rules]
[Pages 82205-82207]
[FR Doc No: 2011-33563]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2011-1414; Directorate Identifier 2011-NM-227-AD]
RIN 2120-AA64

Airworthiness Directives; Cessna Aircraft Company Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: We propose to adopt a new airworthiness directive (AD) for
certain Cessna Aircraft Company Model 560XL airplanes. This proposed AD
was prompted by reports of jammed or stiff rudder control due to water
freezing on the rudder bias cables and pulleys of the stinger. This
proposed AD would require modification of the drain installation of the
tailcone stinger on the aft canted bulkhead, inspections for drain
holes in the forward and aft frames, and modification of the drain
holes. We are proposing this AD to prevent ice accumulation on the
cables and pulleys of the stinger, which could result in jamming of the
rudder and consequent reduced controllability of the airplane.

DATES: We must receive comments on this proposed AD by February 13,
2012.

ADDRESSES: You may send comments using the procedures found in 14 CFR
11.43 and 11.45, by any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE., Washington, DC 20590.
     Hand Delivery: Deliver to Mail address above between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
    For service information identified in this proposed AD, contact
Cessna Aircraft Co., P.O. Box 7706, Wichita, Kansas 67277; telephone
(316) 517-6215; fax<PHONE_NUMBER>; email
<EMAIL_ADDRESS>Internet https://www.cessnasupport.com/newlogin.html. You may review copies of the
referenced service information at the FAA, Transport Airplane
Directorate, 1601 Lind Avenue SW., Renton, Washington. For information
on the availability of this material at the FAA, call<PHONE_NUMBER>.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://www.regulations.gov; or in person at the Docket Management Facility
between 9 a.m. and 5 p.m., Monday through Friday, except Federal
holidays. The AD docket contains this proposed AD, the regulatory
evaluation, any comments received, and other information. The street
address for the Docket Office (phone:<PHONE_NUMBER>) is in the
ADDRESSES section. Comments will be available in the AD docket shortly
after receipt.

FOR FURTHER INFORMATION CONTACT: David Fairback, Aerospace Engineer,
Mechanical Systems and Propulsion Branch, ACE-116W, FAA, Wichita
Aircraft Certification Office (ACO), 1801 Airport Road, Room 100, Mid-
Continent Airport, Wichita, Kansas 67209; phone:<PHONE_NUMBER>; fax:
(316) 946-4107; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Comments Invited

    We invite you to send any written relevant data, views, or
arguments about this proposal. Send your comments to an address listed
under the ADDRESSES section. Include ``Docket No. FAA-2011-1414;
Directorate Identifier 2011-NM-227-AD'' at the beginning of your
comments. We specifically invite comments on the overall regulatory,
economic, environmental, and energy aspects of this proposed AD. We
will consider all comments received by the closing date and may amend
this proposed AD because of those comments.
    We will post all comments we receive, without change, to http://www.regulations.gov, including any personal information you provide. We
will also post a report summarizing each substantive verbal contact we
receive about this proposed AD.

Discussion

    We have received reports of jammed or stiff rudder control due to
water freezing on the rudder bias cables and pulleys of the stinger.
The cause of this is attributed to a large amount of water entering the
stinger and pooling at the lowest point due to inadequate drainage.
This water sprays onto the rudder bias cables and pulleys due to the
inflow of air into the stinger. Therefore, as the airplane climbs to
temperatures below 32 degrees Fahrenheit the water freezes on the
cables, pulleys, and mounting brackets. The ice acts as an adhesive,
which prevents the pulleys from rotating and the cables from sliding on
the pulleys. These conditions, if not corrected, could result in
jamming of the rudder and consequent reduced controllability of the
airplane.

Relevant Service Information

    We reviewed Cessna Service Bulletin SB560XL-53-16, dated October 4,
2011, including Service Bulletin Supplemental Data SB560XL-53-16,
Revision A, dated October 20, 2011, which describes procedures for
modifying the drain installation of the tailcone stinger on the aft
canted bulkhead. The modification includes installing a drain and
rubber seals to reduce the amount of water entering the stinger and
improve drainage. That service bulletin recommends prior or concurrent
accomplishment of Cessna Alert Service Letter ASL560XL-53-08, dated
January 21, 2011, which describes procedures for modification of the
drain holes. The modification includes inspections for a missing drain
hole and drilling a larger drain hole if there is not a number 7 (0.201
inch-diameter) drain hole at that location, sealing existing drain
holes in the tailcone stinger, or adding drain holes in the aft canted
bulkhead.

FAA's Determination

    We are proposing this AD because we evaluated all the relevant
information and determined the unsafe condition described previously is
likely to exist or develop in other products of this same type design.

Proposed AD Requirements

    This proposed AD would require accomplishing the actions specified
in the service information described previously, except as discussed
under ``Differences Between the Proposed AD and Service Information.''

Differences Between the Proposed AD and Service Information

    Cessna Service Bulletin SB560XL-53-16, dated October 4, 2011,
specifies a compliance time of ``within 1,200 flight hours or 18 months
from the date of receipt, whichever occurs first,'' for the
modification of the stinger drain installation. Cessna Alert Service
Letter ASL560XL-53-08, dated January 21, 2011, specifies a compliance
time of ``within 90 flight hours or 90 days from the date of receipt,
whichever occurs first,'' for modification of the drain holes. However,
this proposed AD would require accomplishment of the modification of
the stinger drain installation within 800 flight hours or 12 months
after the effective date of this

AD, whichever occurs first; and prior or concurrent accomplishment of
the modification of the drain holes. We find that these compliance
times represent appropriate intervals of time for affected airplanes to
continue to operate without compromising safety.
    Cessna Service Bulletin SB560XL-53-16, dated October 4, 2011; and
Cessna Alert Service Letter ASL560XL-53-08, dated January 21, 2011;
both recommend submitting certain maintenance information to the
manufacturer, but this proposed AD does not include that requirement.

Costs of Compliance

    We estimate that this proposed AD affects 475 airplanes of U.S.
registry.
    We estimate the following costs to comply with this proposed AD:

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per      Cost on U.S.
                Action                         Labor cost           Parts cost        product        operators
----------------------------------------------------------------------------------------------------------------
Modification of stinger drain           10 work-hours x $85 per             $489          $1,339        $636,025
 installation.                           hour = $850.
Prior/concurrent modification of drain  5 work-hours x $85 per               255             680         323,000
 holes.                                  hour = $425.
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Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. Subtitle I, section 106, describes the
authority of the FAA Administrator. Subtitle VII: Aviation Programs,
describes in more detail the scope of the Agency's authority.
    We are issuing this rulemaking under the authority described in
Subtitle VII, Part A, Subpart III, Section 44701: ``General
requirements.'' Under that section, Congress charges the FAA with
promoting safe flight of civil aircraft in air commerce by prescribing
regulations for practices, methods, and procedures the Administrator
finds necessary for safety in air commerce. This regulation is within
the scope of that authority because it addresses an unsafe condition
that is likely to exist or develop on products identified in this
rulemaking action.

Regulatory Findings

    We determined that this proposed AD would not have federalism
implications under Executive Order 13132. This proposed AD would not
have a substantial direct effect on the States, on the relationship
between the national Government and the States, or on the distribution
of power and responsibilities among the various levels of government.
    For the reasons discussed above, I certify this proposed
regulation:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866,
    (2) Is not a ``significant rule'' under the DOT Regulatory Policies
and Procedures (44 FR 11034, February 26, 1979),
    (3) Will not affect intrastate aviation in Alaska, and
    (4) Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 39

    Air transportation, Aircraft, Aviation safety, Incorporation by
reference, Safety.

The Proposed Amendment

    Accordingly, under the authority delegated to me by the
Administrator, the FAA proposes to amend 14 CFR part 39 as follows:

PART 39--AIRWORTHINESS DIRECTIVES

    1. The authority citation for part 39 continues to read as follows:

    Authority:  49 U.S.C. 106(g), 40113, 44701.

Sec.  39.13  [Amended]

    2. The FAA amends Sec.  39.13 by adding the following new
airworthiness directive (AD):

Cessna Aircraft Company: Docket No. FAA-2011-1414; Directorate
Identifier 2011-NM-227-AD.

(a) Comments Due Date

    We must receive comments by February 13, 2012.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to Cessna Aircraft Company Model 560XL
airplanes; certificated in any category; serial numbers -5002
through -5372 inclusive, -5501 through -5830 inclusive, -6002
through -6080 inclusive, and -6082 through -6086 inclusive.

(d) Subject

    Joint Aircraft System Component (JASC)/Air Transport Association
(ATA) of America Code 53: Fuselage.

(e) Unsafe Condition

    This AD was prompted by reports of jammed or stiff rudder
control due to water freezing on the rudder bias cables and pulleys
of the stinger. We are issuing this AD to prevent ice accumulation
on the cables and pulleys of the stinger, which could result in
jamming of the rudder and consequent reduced controllability of the
airplane.

(f) Compliance

    Comply with this AD within the compliance times specified,
unless already done.

(g) Modification of the Drain Installation

    Within 800 flight hours or 12 months after the effective date of
this AD, whichever occurs first: Modify the drain installation of
the tailcone stinger on the aft canted bulkhead (i.e., install a
drain and rubber seals), in accordance with the Accomplishment
Instructions of Cessna Service Bulletin SB560XL-53-16, dated October
4, 2011.

(h) Modification of the Drain Holes

    For airplanes identified in Cessna Alert Service Letter
ASL560XL-53-08, dated January 21, 2011: Prior to or concurrently
with the modification required by paragraph (g) of this AD, modify
the drain holes, including inspecting for a missing drain hole and,
before further flight, drilling a larger drain hole as applicable;
in accordance with the Accomplishment Instructions of Cessna Alert
Service Letter ASL560XL-53-08, dated January 21, 2011.

    Note 1:  After accomplishing the actions required by paragraphs
(g) and (h) of this AD, maintenance and/or preventative maintenance
under 14 CFR part 43 is permitted provided the maintenance does not
result in changing the AD-mandated configuration (reference 14 CFR
39.7).

(i) No Reporting

    Although Cessna Service Bulletin SB560XL-53-16, dated October 4,
2011; and Cessna Alert Service Letter ASL560XL-53-08, dated January
21, 2011; both specify to submit certain maintenance information to
the manufacturer, this AD does not include that requirement.

(j) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, Wichita Aircraft Certification Office (ACO),
ACE-115W, FAA, has the authority to approve AMOCs for this AD, if
requested using the procedures found in 14 CFR 39.19. In accordance
with 14 CFR 39.19, send your request to your principal inspector or
local Flight Standards District

Office, as appropriate. If sending information directly to the
manager of the ACO, send it to the attention of the person
identified in the Related Information section of this AD.
    (2) Before using any approved AMOC, notify your appropriate
principal inspector, or lacking a principal inspector, the manager
of the local flight standards district office/certificate holding
district office.

(k) Related Information

    (1) For more information about this AD, contact David Fairback,
Aerospace Engineer, Mechanical Systems and Propulsion Branch, ACE-
116W, FAA, Wichita Aircraft Certification Office (ACO), 1801 Airport
Road, Room 100, Mid-Continent Airport, Wichita, Kansas 67209; phone:
(316) 946-4154; fax:<PHONE_NUMBER>; email<EMAIL_ADDRESS>    (2) For service information identified in this AD, contact
Cessna Aircraft Co., P.O. Box 7706, Wichita, Kansas 67277; telephone
(316) 517-6215; fax<PHONE_NUMBER>; email
<EMAIL_ADDRESS>Internet https://www.cessnasupport.com/newlogin.html. You may review copies of the
referenced service information at the FAA, Transport Airplane
Directorate, 1601 Lind Avenue SW., Renton, Washington. For
information on the availability of this material at the FAA, call
(425) 227-1221.

    Issued in Renton, Washington, on December 23, 2011.
John P. Piccola,
Acting Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2011-33563 Filed 12-29-11; 8:45 a.m.]
BILLING CODE 4910-13-P


[Federal Register: July 10, 2009 (Volume 74, Number 131)]
[Notices]
[Page 33308]
[DOCID:fr10jy09-88]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60198; File No. SR-BX-2009-034]

 Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Order Granting Accelerated Approval of Proposed Rule Change
to Amend the Fee Schedule of the Boston Options Exchange Facility

Correction

    In notice document E9-16036 beginning on page 32212 in the issue of
Tuesday, July 7, 2009, make the following correction:
    On page 32213, in the third column, in the 17th line from the top,
``July 29, 2009'' should read ``July 28, 2009''.

[FR Doc. Z9-16036 Filed 7-9-09; 8:45 am]

BILLING CODE 1505-01-D


[Federal Register Volume 88, Number 145 (Monday, July 31, 2023)]
[Notices]
[Pages 49518-49521]
[FR Doc No: 2023-16122]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-97977; File No. SR-CboeBZX-2023-049]

Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Its Fee Schedule

July 25, 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 July 12, 2023, 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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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    Cboe BZX Exchange, Inc. (the ``Exchange'' or ``BZX'' or ``BZX
Equities'') 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 (http://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 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 (``BZX Equities'') as follows: (1) adopt a
new Add Volume Tier and renumber the remaining tiers; (2) adopt a new
Step-Up Tier; and (3) modifying the rates associated with certain fee
codes. The Exchange proposes to implement the proposed change to its
fee schedule on July 3, 2023.\3\
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    \3\ The Exchange initially filed the proposed fee change on June
30, 2023 (SR-CboeBZX-2023-045). On July 12, 2023, the Exchange
withdrew that proposal and submitted this proposal.
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    The Exchange first notes that it operates in a highly competitive
market in which market participants can readily direct order flow to
competing venues if they deem fee levels at a particular venue to be
excessive or incentives to be insufficient. More specifically, the
Exchange is only one of 16 registered equities exchanges, as well as a
number of alternative trading systems and other off-exchange venues
that do not have similar self-regulatory responsibilities under the
Exchange Act, to which market participants may direct their order flow.
Based on publicly available information,\4\ no single registered
equities exchange has more than 15% of the market share. Thus, in such
a low-concentrated and highly competitive market, no single equities

exchange possesses significant pricing power in the execution of order
flow. The Exchange in particular operates a ``Maker-Taker'' model
whereby it pays credits to Members that add liquidity and assesses fees
to those that remove liquidity. The Exchange's fee schedule sets forth
the standard rebates and rates applied per share for orders that
provide and remove liquidity, respectively. Currently, for orders in
securities priced at or above $1.00, the Exchange provides a standard
rebate of $0.00160 per share for orders that add liquidity and assesses
a fee of $0.0030 per share for orders that remove liquidity.\5\ For
orders in securities priced below $1.00, the Exchange does not provide
a rebate or assess a fee for orders that add liquidity and assesses a
fee of 0.30% of total dollar value for orders that remove liquidity.\6\
Additionally, in response to the competitive environment, the Exchange
also offers tiered pricing which provides Members opportunities to
qualify for higher rebates or reduced fees where certain volume
criteria and thresholds are met. Tiered pricing provides an incremental
incentive for Members to strive for higher tier levels, which provides
increasingly higher benefits or discounts for satisfying increasingly
more stringent criteria.
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    \4\ See Cboe Global Markets, U.S. Equities Market Volume
Summary, Month-to-Date (June 22, 2023), available at https://www.cboe.com//equities/market_statistics/.
    \5\ See BZX Equities Fee Schedule, Standard Rates.
    \6\ Id.
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Add Volume Tiers
    Pursuant to footnote 1 of the Fee Schedule, the Exchange currently
offers various Add/Remove Volume Tiers. In particular, the Exchange
offers seven Add Volume Tiers that provide Members an opportunity to
receive enhanced rebates for orders yielding fee codes B,\7\ V,\8\ and
Y \9\ where a Member reaches certain add volume-based criteria offered
in each tier. The Exchange now proposes to introduce a new Add Volume
Tier 4 and renumber existing Add Volume Tiers 4-7. The proposed
criteria of new Add Volume Tier 4 is as follows:
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    \7\ Orders yielding Fee Code ``B'' are displayed orders adding
liquidity to BZX (Tape B).
    \8\ Orders yielding Fee Code ``V'' are displayed orders adding
liquidity to BZX (Tape A).
    \9\ Orders yielding Fee Code ``Y'' are displayed orders adding
liquidity to BZX (Tape C).
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     Proposed Add Volume Tier 4 will provide a rebate of
$0.0028 per share for qualifying orders (i.e., orders yielding fee
codes B, V, or Y) where (1) Member is enrolled in at least 50 BZX-
listed LMP Securities \10\ for which it meets the following criteria
for at least 50% of the trading days in the applicable month: (i)
Member has an NBBO Time \11\ >=15% or an NBBO Size Time \12\ >=25%; and
(ii) Member has a Displayed Size Time \13\ >=90%; and (2) Member is
enrolled in at least 30 LMM Securities; \14\ and (3) Member has an ADAV
as a percentage of TCV \15\ >=0.15%.
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    \10\ ``LMP Securities'' means a list of securities included in
the Liquidity Management Program, the universe of which will be
determined by the Exchange and published in a circular distributed
to Members and on the Exchange's website. Such LMP Securities will
include all Cboe-listed ETPs and certain non-Cboe listed-ETPs for
which the Exchange wants to incentive Members to provide enhanced
market quality. All Cboe-listed securities will be LMP Securities
immediately upon listing on the Exchange. The Exchange will not
remove a security from the list of LMP Securities without 30 days
prior notice.
    \11\ ``NBBO Time'' means the average of the percentage of time
during regular trading hours during which the Member maintains at
least 100 shares at each of the NBB and NBO.
    \12\ ``NBBO Size Time'' means the percentage of time during
regular trading hours during which there are size-setting quotes at
the NBBO on the Exchange.
    \13\ ``Displayed Size Time'' means the percentage of time during
regular trading hours during which the Member maintains at least
2,500 displayed shares on the bid and separately maintains at least
2,500 displayed shares on the offer that are priced no more than 2%
away from the NBB and NBO, respectively.
    \14\ ``LMM Securities'' are BZX-listed securities for which a
Lead Market Maker (``LMM'') for which the Member is the LMM.
    \15\ ``TCV'' means total consolidated volume calculated 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.
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    The Exchange's proposal to introduce a new Add Volume Tier 4 is
designed to provide Members with an additional way in which to receive
an enhanced rebate if certain criteria are satisfied, specifically by
incentivizing additional volume in securities identified by the
Exchange, including BZX-listed securities. The Exchange believes that
by introducing proposed Add Volume Tier 4 Members are incentivized to
add displayed volume on the Exchange, thereby contributing to a deeper
and more liquid market, which benefits all market participants and
provides greater execution opportunities on the Exchange.
Step-Up Tiers
    Pursuant to footnote 2 of the Fee Schedule, the Exchange currently
offers two Step Up Tiers that provide Members an opportunity to receive
an enhanced rebate from the standard rebate for liquidity adding orders
that yield fee codes B, V, and Y where they increase their relative
liquidity each month over a predetermined baseline. The Exchange now
proposes to add a new Step-Up Tier 1. Proposed Step-Up Tier 1 would
provide for the following:
     Proposed Step-Up Tier 1 would offer an enhanced rebate of
$0.0028 per share for qualifying orders (i.e., orders yielding fee
codes B, V, or Y) where Member has a Step-Up ADAV \16\ from June 2023
>=10,000,000.
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    \16\ ``Step-Up ADAV'' means ADAV in the relevant baseline month
subtracted from current ADAV.
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    Additionally, the Exchange notes that Proposed Step-Up Tier 1 will
expire no later than September 30, 2023, which the Exchange will
indicate on the Exchange's fee schedule.
    The Exchange notes that the Step-Up Tiers in general are designed
to provide Members with additional opportunities to receive enhanced
rebates by increasing their order flow to the Exchange, which further
contributes to a deeper, more liquid market and provides even more
execution opportunities for active market participants. Like other
Step-Up Tiers, the proposed Step-Up Tier 1 is designed to give members
an additional opportunity to receive an enhanced rebate for orders
meeting the applicable criteria. Increased overall order flow benefits
all Members by contributing towards a robust and well-balanced market
ecosystem.
Fee Code Changes
    The Exchange offers various fee codes for orders routed away from
the Exchange. The Exchange is proposing to modify the routing fees
associated with fee codes BY,\17\ BJ,\18\ AX,\19\ AA,\20\ AY,\21\
P,\22\ and RY \23\ to match the base add or remove rate for the
associated market center to which the order is routed. The rebates for
fee codes BJ, AA, and P will be revised to $0.0016 per share in
securities priced above $1.00.\24\ The rebates for fee codes BY and AY
will be revised to $0.0002 per share in securities priced above
$1.00.\25\ The fee for fee code RY will be revised to $0.0020 per share
in securities priced above $1.00.\26\ The fee for fee code AX will be
revised to $0.0030 per share in securities priced above $1.00.\27\
There

are no changes to the fees or rebates associated with securities priced
below $1.00.
---------------------------------------------------------------------------

    \17\ Fee code BY is appended to orders routed to BYX using
Destination Specific, TRIM or SLIM routing strategy.
    \18\ Fee code BJ is appended to orders routed to EDGA using TRIM
or SLIM routing strategy.
    \19\ Fee code AX is appended to orders routed to EDGX using ALLB
routing strategy.
    \20\ Fee code AA is appended to orders routed to EDGA using ALLB
routing strategy.
    \21\ Fee code AY is appended to orders routed to BYX using the
ALLB routing strategy.
    \22\ Fee code P is appended to orders routed to EDGX that add
liquidity.
    \23\ Fee code RY is appended to orders routed to BYX that add
liquidity.
    \24\ See BZX Equities Fee Schedule, Standard Rates; EDGA
Equities Fee Schedule, Standard Rates.
    \25\ See BYX Equities Fee Schedule, Standard Rates.
    \26\ Id.
    \27\ See EDGX Equities Fee Schedule, Standard Rates.
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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.\28\ Specifically, the Exchange believes the proposed rule change
is consistent with the section 6(b)(5) \29\ 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) \30\ 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) \31\
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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    \28\ 15 U.S.C. 78f(b).
    \29\ 15 U.S.C. 78f(b)(5).
    \30\ Id.
    \31\ 15 U.S.C. 78f(b)(4)
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    As described above, the Exchange operates in a highly competitive
market in which market participants can readily direct order flow to
competing venues if they deem fee levels at a particular venue to be
excessive or incentives to be insufficient. The Exchange believes that
its proposal to introduce a new Add Volume Tier 4 and a new Step-Up
Tier 1 reflects a competitive pricing structure designed to incentivize
market participants to direct their order flow to the Exchange, which
the Exchange believes would enhance market quality to the benefit of
all Members. The Exchange believes the proposed Add Volume Tier 4 and
Step-Up Tier 1 are reasonable as they serve to incentivize Members to
increase their liquidity-adding, displayed volume, which benefit all
market participants by incentivizing continuous liquidity and thus,
deeper, more liquid markets as well as increased execution
opportunities. Particularly, the proposed incentives are designed to
incentivize continuous displayed liquidity, which signals other market
participants to take the additional execution opportunities provided by
such liquidity. This overall increase in activity deepens the
Exchange's liquidity pool, offers additional cost savings, supports the
quality of price discovery, promotes market transparency, and improves
market quality for all investors.
    The Exchange believes the proposed changes to fee codes BY, BJ, AX,
AA, AY, P, and RY are reasonable and not unfairly discriminatory as
these changes will apply to all Members and do not represent a
significant departure from the Exchange's general pricing structure.
Indeed, the proposed changes to these fee codes are intended to match
the base add or remove rates on the Exchanges affiliates.\32\ The
Exchange also believes the proposed Add Volume Tier 4 and Step-Up Tier
1 represent an equitable allocation of rebates and are not unfairly
discriminatory because all Members are eligible for those tiers and
would have the opportunity to meet a tier's criteria and would receive
the proposed rebate if such criteria is met. Further, the proposed
rebates are commensurate with the proposed criteria. That is, the
rebates reasonably reflect the difficulty in achieving the applicable
criteria as proposed. Without having a view of activity on other
markets and off-exchange venues, the Exchange has no way of knowing
whether this proposed rule change would definitely result in any
Members qualifying for the proposed tier. While the Exchange has no way
of predicting with certainty how the proposed tiers will impact Member
activity, the Exchange anticipates that at least one Member will be
able to satisfy the criteria proposed under proposed Add Volume Tier 4
and at least one Member will be able to satisfy the criteria proposed
under proposed Step-Up Tier 1. The Exchange also notes that proposed
tier/rebate will not adversely impact any Member's ability to qualify
for other reduced fee or enhanced rebate tiers. Should a Member not
meet the proposed criteria under the modified tier, the Member will
merely not receive that corresponding enhanced rebate.
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    \32\ Supra notes 24-27.
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    Additionally, the Exchange notes that relative volume-based
incentives and discounts have been widely adopted by exchanges,\33\
including the Exchange,\34\ and are reasonable, equitable and non-
discriminatory because they are open to all Members on an equal basis
and provide additional benefits or discounts that are reasonably
related to (i) the value to an exchange's market quality and (ii)
associated higher levels of market activity, such as higher levels of
liquidity provision and/or growth patterns. Competing equity exchanges
offer similar tiered pricing structures, including schedules of rebates
and fees that apply based upon members achieving certain volume and/or
growth thresholds, as well as assess similar fees or rebates for
similar types of orders, to that of the Exchange.
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    \33\ See e.g., EDGX Equities Fee Schedule, Footnote 1, Add/
Remove Volume Tiers.
    \34\ See e.g., BZX Equities Fee Schedule, Footnote 1, Add/Remove
Volume Tiers.
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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
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
individual stocks for all types of orders, large and small.'' \35\
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    \35\ Securities Exchange Act Release No. 51808, 70 FR 37495,
37498-99 (June 29, 2005) (S7-10-04) (Final Rule).
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    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. Particularly, the proposed
tier changes apply to all Members equally in that all Members are
eligible for the proposed Add Volume Tier 4 and proposed Step-Up Tier
1, have a reasonable opportunity to meet the tiers' criteria and will
receive the corresponding additional rebates if such criteria are met.
Additionally, the proposed tiers are designed to attract additional
order flow to the Exchange. The Exchange believes that the proposed
tier criteria would incentivize market participants to direct liquidity
adding displayed order flow to the Exchange, bringing with it
additional execution opportunities for market participants and improved
price transparency. Greater overall order flow, trading opportunities,
and pricing transparency benefits all market participants on the
Exchange by

enhancing market quality and continuing to encourage Members to send
orders, thereby contributing towards a robust and well-balanced market
ecosystem.
    The Exchange believes the proposal to revise the applicable fees or
rebates associated with routing orders away from the Exchange does not
a burden on intramarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act. The fees and
rebates associated with routing orders away from the Exchange apply to
all Members on an equal and non-discriminatory basis and Members can
choose to use (or not use) the Exchange's routing functionality as part
of their decision to submit order flow to the Exchange.
    Next, the Exchange believes the proposed rule change 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 15 other equities exchanges and
off exchange venues and alternative trading systems. Additionally, the
Exchange represents a small percentage of the overall market. Based on
publicly available information, no single equities exchange has more
than 15% \36\ of the market share. 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 off-exchange 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.'' \37\ 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 broker-dealers 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'. . ..''.\38\ 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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    \36\ Supra note 4.
    \37\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005).
    \38\ 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)).
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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 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 \39\ and paragraph (f) of Rule 19b-4 \40\
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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    \39\ 15 U.S.C. 78s(b)(3)(A).
    \40\ 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-CboeBZX-2023-049 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-2023-049. 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-CboeBZX-2023-049 and should
be submitted on or before August 21, 2023.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\41\
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    \41\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2023-16122 Filed 7-28-23; 8:45 am]
BILLING CODE 8011-01-P