[Federal Register Volume 78, Number 242 (Tuesday, December 17, 2013)]
[Rules and Regulations]
[Pages 76195-76196]
[FR Doc No: 2013-29858]

-----------------------------------------------------------------------

DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 117

[USCG-2013-0981]

Drawbridge Operation Regulations; Passaic River, Newark and
Harrison, NJ

AGENCY: Coast Guard, DHS.

ACTION: Notice of temporary deviation from regulations.

-----------------------------------------------------------------------

SUMMARY: The Commander, First Coast Guard District, has issued a
temporary deviation from the regulation governing the operation of the
National Railroad Passenger Corporation (AMTRAK) Dock Railroad Bridge
across Passaic River, mile 5.0, between Newark and Harrison, New
Jersey. This deviation allows the AMTRACK Dock Bridge, mile 5.0, across
the Passaic River to remain closed during the Super Bowl XLVIII weekend
to facilitate the movement of more than 150,000 visitors, guests and
area residents to various public events and activities in New York and
New Jersey.

DATES: This deviation is effective from 10:00 a.m. Saturday, February 1
through 1:00 a.m. Monday, February 3, 2014.

ADDRESSES: The docket for this deviation, [USCG-2013-0981] is available
at http://www.regulations.gov. Type the docket number in the ``SEARCH''
box and click ``SEARCH.'' Click on Open Docket Folder on the line
associated with this deviation. You may also visit the Docket
Management Facility in Room W12-140, on the ground floor of the
Department of Transportation West Building, 1200 New Jersey Avenue SE.,
Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: If you have questions on this
temporary deviation, call or email Mr. Joe Arca, Project Officer, First
Coast Guard

District<EMAIL_ADDRESS>or<PHONE_NUMBER>. If you have questions
on viewing the docket, call Barbara Hairston, Program Manager, Docket
Operations, telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The AMTRAK Dock Bridge has a vertical
clearance of 24 feet at mean high water, and 29 feet at mean low water
in the closed position. The existing drawbridge operating regulations
are found at 33 CFR 117.739(e).
    AMTRAK, requested that the Dock Bridge not open for marine traffic
from 10:00 a.m. Saturday, February 1 through 1:00 a.m. Monday, February
3, 2014, to facilitate the expected movement of more than 150,000
visitors, guests and area residents to various public events and
activities in the New York and New Jersey area during the Super Bowl
XLVIII weekend.
    Passaic River is transited primarily by commercial navigation. The
bridge owner reported that there were no requests for bridge openings
at the Dock Bridge for the past three years. Vessels that can pass
under the closed draw may do so at all times.
    Under this temporary deviation the Dock Bridge may remain closed
for marine traffic from 10:00 a.m. on Saturday, February 1 through 1:00
a.m. on Monday, February 3, 2014.
    In accordance with 33 CFR 117.35(e), the bridge must return to its
regular operating schedule immediately at the end of the designated
deviation period. This deviation from the operating regulations is
authorized under 33 CFR 117.35.

    Dated: December 2, 2013.
Gary Kassof,
Bridge Program Manager, First Coast Guard District.
[FR Doc. 2013-29858 Filed 12-16-13; 8:45 am]
BILLING CODE 9110-04-P


[Federal Register Volume 81, Number 144 (Wednesday, July 27, 2016)]
[Notices]
[Pages 49336-49341]
[FR Doc No: 2016-17676]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78390; File No. SR-BOX-2016-33]

Self-Regulatory Organizations; BOX Options Exchange LLC; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend the Fee Schedule on the BOX Market LLC (``BOX'') Options Facility

July 21, 2016.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on July 13, 2016, BOX Options Exchange LLC (the ``Exchange'')
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 Exchange filed the
proposed rule change pursuant to Section 19(b)(3)(A)(ii) of the Act,\3\
and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposal
effective upon filing with the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change

    The Exchange is filing with the Securities and Exchange Commission
(``Commission'') a proposed rule change to amend the Fee Schedule to
make changes to Section I (Exchange Fees for Non-Auction Transactions)
on the BOX Market LLC (``BOX'') options facility. The text of the
proposed rule change is available from the principal office of the
Exchange, at the Commission's Public Reference Room and also on the
Exchange's Internet Web site at http://boxexchange.com.

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 make changes to Section I (Exchange Fees
for Non-Auction Transactions).

Exchange Fees for Non-Auction Transactions
    The Exchange proposes to adjust certain fees for Non-Auction
Transactions. Currently, for all non-auction transactions, fees and
credits are assessed depending upon three factors: (i) The account type
of the Participant submitting the order; (ii) whether the Participant
is a liquidity provider or liquidity taker; and (iii) the account type
of the contra party. Non-Auction Transactions in Penny Pilot Classes
are assessed different fees or credits than Non-Auction Transactions in
Non-Penny Pilot Classes.
    The current fees for Non-Auction Transactions are:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Penny pilot classes           Non-penny pilot classes
                  Account type                                 Contra party              ---------------------------------------------------------------
                                                                                Maker fee       Taker fee       Maker fee       Taker fee
--------------------------------------------------------------------------------------------------------------------------------------------------------
Public Customer................................  Public Customer........................           $0.00           $0.00           $0.00           $0.00
                                                 Professional Customer/Broker Dealer....            0.00            0.00            0.00            0.00
                                                 Market Maker...........................            0.00            0.00            0.00            0.00
Professional Customer or Broker Dealer.........  Public Customer........................            0.60            0.50            0.95            1.07
                                                 Professional Customer/Broker Dealer....            0.25            0.40            0.35            0.40
                                                 Market Maker...........................            0.25            0.44            0.35            0.44
Market Maker...................................  Public Customer........................            0.51            0.50            0.85            1.03
                                                 Professional Customer/Broker Dealer....            0.00            0.05            0.00            0.10
                                                 Market Maker...........................            0.00            0.29            0.00            0.29
--------------------------------------------------------------------------------------------------------------------------------------------------------

    First, the Exchange proposes to raise the fees assessed for Public
Customers that make or take liquidity against all account types in in
both Penny and Non-Penny Classes to $0.05 from $0.00.
    Next, the Exchange proposes to adjust the fees assessed for
Professional Customers and Broker Dealers. In Penny Pilot Classes, the
Exchange proposes to adjust the fees assessed for Professional
Customers and Broker Dealers that take liquidity from all other
Participants. Specifically, the Exchange proposes to lower the fee
assessed to Professional Customers and Broker Dealers that take
liquidity from Public Customers to $0.45 from $0.50. Further, the
Exchange proposes to increase the fees assessed to Professional
Customers and Broker Dealers that take liquidity from Professional
Customers/Broker Dealers and Market Makers to $0.45 from $0.40 and
$0.44, respectively. Additionally, the Exchange proposes to lower the
fees assessed for Professional Customers and Broker Dealers making
liquidity against Professional Customers and Broker Dealers and Market
Makers in Penny Pilot Classes to $0.05 from $0.25. For Non-Penny Pilot
Classes, the Exchange proposes to reduce the fees assessed for
Professional Customers and Broker Dealers making liquidity against Non-
Public Customers to $0.05 from $0.35. The Exchange also proposes to
decrease the fees assessed for Professional Customers and Broker
Dealers taking liquidity from Public Customers to $0.85 from $1.07.
Lastly, with regard to Professional Customers/Broker Dealers taking
liquidity from Professional Customers/Broker Dealers and Market Makers
in Non-Penny Pilot Classes, the Exchange proposes to increase the fees
assessed to $0.60 from $0.40 and $0.44, respectively.
    The Exchange then proposes to adjust the fees assessed for Market
Makers in Non-Auction Transactions. First, the Exchange proposes to
decrease the fees assessed on Market Makers making liquidity against a
Public Customer to $0.27 from $0.51. With regard to Market Makers
taking liquidity against Public Customers in Penny Pilot Classes, the
Exchange proposes to decrease the fee to $0.43 from $0.50. Further, the
Exchange proposes to increase the fee for Market Makers taking
liquidity against Professional Customers and Broker Dealers in Penny
Pilot Classes to $0.29 from $0.05. Lastly, the Exchange proposes to
adjust the fees assessed to Market Makers in Non-Penny Pilot Classes.
Specifically, the Exchange proposes to decrease the fee assessed to a
Market Maker when making liquidity from a Public Customer in Non-Penny
Pilot Classes to $0.65 from $0.85. In Non-Penny Pilot Classes, the
Exchange proposes to decrease the fee assessed to Market Makers taking
liquidity from a Public Customer to $0.80 from $1.03. Lastly, the
Exchange proposes to increase the fees assessed to Market Makers taking
liquidity from Professional Customers/Broker Dealers and Market Makers
in Non-Penny Pilot Classes, to $0.40 from $0.10 and $0.29,
respectively.
    The fees for Non-Auction Transactions will be as follows:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Penny pilot classes           Non-penny pilot classes
                  Account type                                 Contra party              ---------------------------------------------------------------
                                                                                Maker fee       Taker fee       Maker fee       Taker fee
--------------------------------------------------------------------------------------------------------------------------------------------------------
Public Customer................................  Public Customer........................           $0.05           $0.05           $0.05           $0.05
                                                 Professional Customer/Broker Dealer....            0.05            0.05            0.05            0.05
                                                 Market Maker...........................            0.05            0.05            0.05            0.05
Professional Customer or Broker Dealer.........  Public Customer........................            0.60            0.45            0.95            0.85
                                                 Professional Customer/Broker Dealer....            0.05            0.45            0.05            0.60
                                                 Market Maker...........................            0.05            0.45            0.05            0.60
Market Maker...................................  Public Customer........................            0.27            0.43            0.65            0.80
                                                 Professional Customer/Broker Dealer....            0.00            0.29            0.00            0.40
                                                 Market Maker...........................            0.00            0.29            0.00            0.40
--------------------------------------------------------------------------------------------------------------------------------------------------------

Tiered Volume Rebate for Non-Auction Transactions
    The Exchange proposes to amend Section I.A.1. of the BOX Fee
Schedule, Tiered Volume Rebate for Non-Auction Transactions.
Specifically, the Exchange proposes to specify that transactions in
which a Public Customer is a contra party will be considered exempt
from the Tiered Volume Rebate for Market Makers in Non-Auction
Transactions.\5\ Additionally, the Exchange proposes to adjust certain
rebates for Customers and Market Makers in Non-Auction Transactions.
Specifically, for the Tiered Volume Rebate for Market Makers in Non-
Auction Transactions, the Exchange proposes to increase the maker
rebate in Tier 3 to $0.07 from $0.05, and also increase the maker
rebate in Tier 4 to $0.15 from $0.10.
---------------------------------------------------------------------------

    \5\ As is the case today, Non-Auction Transactions that are not
a result of a Market Maker quote will continue to be exempt from the
Market Maker tiered volume rebate.
---------------------------------------------------------------------------

    The Exchange also proposes to adjust the rebates in the Tiered
Volume Rebate for Public Customers in Non Auction Transactions. The
current Tiered Volume Rebate for Public Customers in Non-Auction
Transactions is as follows:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Per contact rebate
                                                    Percentage thresholds of national    ---------------------------------------------------------------
                      Tier                          customer volume in multiply-listed          Penny pilot classes           Non-penny pilot classes
                                                        options classes (monthly)        ---------------------------------------------------------------
                                                                                Maker           Taker           Maker           Taker
--------------------------------------------------------------------------------------------------------------------------------------------------------
1..............................................  0.000%-0.129%..........................           $0.00           $0.00           $0.00           $0.00
2..............................................  0.130%-0.339%..........................          (0.15)          (0.15)          (0.40)          (0.40)
3..............................................  0.340%-0.549%..........................          (0.25)          (0.25)          (0.50)          (0.50)
4..............................................  0.550% and Above.......................          (0.40)          (0.40)          (0.90)          (0.70)
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Specifically, the Exchange proposes to reduce each of the maker and
taker rebates in Tiers 2 through 4 of the Tiered Volume Rebate
structure for Public Customers in both Penny Pilot Classes and Non-
Penny Pilot Classes. The new per contract rebate for Public Customers
in Non-Auction Transactions as set forth in Section I.A.1. of the BOX
Fee Schedule will be as follows:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Per contact rebate
                                                    Percentage thresholds of national    ---------------------------------------------------------------
                      Tier                          customer volume in multiply-listed          Penny pilot classes           Non-penny pilot classes
                                                        options classes (monthly)        ---------------------------------------------------------------
                                                                                Maker           Taker           Maker           Taker
--------------------------------------------------------------------------------------------------------------------------------------------------------
1..............................................  0.000%-0.129%..........................           $0.00           $0.00           $0.00           $0.00
2..............................................  0.130%-0.339%..........................          (0.05)          (0.05)          (0.20)          (0.20)
3..............................................  0.340%-0.549%..........................          (0.15)          (0.15)          (0.30)          (0.30)
4..............................................  0.550% and Above.......................          (0.25)          (0.25)          (0.50)          (0.50)
--------------------------------------------------------------------------------------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act, in general, and Section
6(b)(4) and 6(b)(5)of the Act,\6\ in particular, in that it provides
for the equitable allocation of reasonable dues, fees, and other
charges among BOX Participants and other persons using its facilities
and does not unfairly discriminate between customers, issuers, brokers
or dealers. The proposed changes will allow the Exchange to be
competitive with other exchanges and to apply fees and credits in a
manner that is equitable among all BOX Participants. Further, the
Exchange operates within a highly competitive market in which market
participants can readily direct order flow to any other competing
exchange if they determine fees at a particular exchange to be
excessive.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

Non-Auction Transactions
    The Exchange believes it is equitable, reasonable and not unfairly
discriminatory to assess fees according to the account type of the
Participant originating the order and the contra party. This fee
structure has been in place on the Exchange since 2014 and the Exchange
is simply adjusting certain fees within the structure.\7\ The result of
this structure is that a Participant does not know the fee it will be
charged when submitting certain orders. Therefore, the Participant must
recognize that it could be charged the highest applicable fee on the
Exchange's schedule, which may, instead, be lowered depending upon how
the order interacts.
---------------------------------------------------------------------------

    \7\ See Securities Exchange Release No. 73547 (November 6,
2014), 79 FR 67520 (November 13, 2014)(Notice of Filing and
Immediate Effectiveness SR-BOX-2014-25).
---------------------------------------------------------------------------

    The Exchange believes raising the non-auction transaction fees for
Public Customers making or taking liquidity in Penny and Non-Penny
Pilot Classes to $0.05 from $0.00 is reasonable, equitable and not
unfairly discriminatory. While the Exchange proposes to slightly raise
the fees assessed to Public Customers for Non-Auction Transactions, the
Public Customers may still receive the benefit of a volume based
rebate, which in turn could offset the proposed $0.05 fee.\8\ Further,
the Exchange notes that a higher fee of $0.07 was assessed for Public
Customers in Non-Auction transactions on BOX in the past.\9\
---------------------------------------------------------------------------

    \8\ The Exchange notes that on a monthly basis, most Public
Customers on the Exchange reach one of these volume based rebate
tiers.
    \9\ See Securities Exchange Release No. 66979 (May 14, 2012), 77
FR 29740 (May 18, 2012) (Notice of Filing and Immediate
Effectiveness SR-BOX-2012-002).
---------------------------------------------------------------------------

    The Exchange believes that the proposed fees for Professional

Customers and Broker Dealers in Non-Auction Transactions are
reasonable. Under the proposed fee structure, a Professional Customer
or Broker Dealer making liquidity and interacting with a Professional
Customer, Broker Dealer or Market Marker will now be charged a fee of
$0.05 in both Penny and Non-Penny Pilot Classes. If the Professional
Customer or Broker Dealer is instead taking liquidity in the Penny
Pilot, it will be charged $0.45 against any other Participant. If the
Professional Customer or Broker Dealer is taking liquidity in the Non-
Penny Pilot, it will be charged $0.85 if it interacts with a Public
Customer or $0.60 if it interacts with a Professional Customer, Broker
Dealer or a Market Maker. The Exchange believes that reducing the fee
for making liquidity will promote liquidity on the Exchange, ultimately
benefitting all Participants trading on BOX. Further, the Exchange
believes the proposed fees are reasonable as they are in line with the
current fees assessed by another competing exchange.\10\
---------------------------------------------------------------------------

    \10\ See International Securities Exchange (``ISE'') Schedule of
Fees, Section I. On ISE, Professional Customer and Broker Dealers in
Penny Pilot Classes are charged a fee of $0.10 when making liquidity
and a $0.45 fee when taking liquidity. See also NYSE Arca Options
(``Arca'') Fees and Charges page 4. On Arca a Firm or Broker Dealer
is charged $0.50 when making liquidity and $1.08 when taking
liquidity in Non-Penny Pilot Issues, and $0.50 for taking liquidity
in Penny Pilot Issues.
---------------------------------------------------------------------------

    The Exchange believes that charging Professional Customers and
Broker Dealers higher fees than Public Customers for most of their Non-
Auction Transactions is equitable and not unfairly discriminatory.
Professional Customers, while Public Customers by virtue of not being
Broker Dealers, generally engage in trading activity more similar to
Broker Dealer proprietary trading accounts. The Exchange believes that
the higher level of trading activity from these Participants will draw
a greater amount of BOX system resources, which the Exchange aims to
recover its costs by assessing Professional Customers and Broker
Dealers higher fees for transactions.
    The Exchange notes that Professional Customers or Broker Dealers
will now be charged the same rate as Public Customers when making
liquidity against Professional Customers, Broker Dealers, and Market
Makers in both Penny and Non-Penny Pilot Classes. The Exchange believes
it is equitable and not unfairly discriminatory to assess the same low
rate for these transactions on both Public Customers and Professional
Customers/Broker Dealers to promote liquidity on the Exchange,
ultimately benefitting all Participants trading on BOX. Further, the
Exchange notes that Public Customers have the ability to achieve a
rebate for their Non-Auction transactions, and Professional Customer or
Broker Dealers do not.
    The Exchange believes that the proposed fees for Market Makers in
Non-Auction Transactions are reasonable. With the proposed fee changes,
a Market Maker making liquidity will now be charged a lower fee of
$0.27 (Penny Pilot) and $0.65 (Non-Penny Pilot) for interacting with a
Public Customer. Further, a Market Maker taking liquidity against a
Public Customer will now be charged a lower fee of $0.43 in Penny Pilot
Classes and a lower fee of $0.80 in Non-Penny Pilot Classes. If a
Market Maker is taking liquidity in Penny and Non-Penny Pilot Classes
and interacts with a Professional Customer, Broker Dealer or a Market
Maker, they will now be charged a fee of $0.29 in Penny Pilot Classes
and $0.40 in Non-Penny Pilot Classes. The Exchange believes the fees
listed above are reasonable and appropriate as they are in line with
what is currently charged by the industry.\11\
---------------------------------------------------------------------------

    \11\ Id. On ISE and Arca, the general range for Market Maker
fees is between $0.10 and $1.08.
---------------------------------------------------------------------------

    Further, the Exchange believes it is equitable and not unfairly
discriminatory to charge the Market Maker less for making or taking
liquidity than Professional Customers or Broker Dealers. Specifically,
Market Makers have certain obligations that other Participants do not
and can ultimately provide more value by directing liquidity to the
Exchange, which the Exchange believes will benefit all Participants
trading on BOX.
    Additionally, the Exchange believes that charging Market Makers who
interact with Professional Customers/Broker Dealers and Market Makers
in Penny and Non-Penny Pilot Classes less than Public Customers is
reasonable. As discussed above, Market Makers have certain obligations
that Public Customers do not and can provide value by directing more
liquidity to the Exchange. The Exchange believes that charging Market
Makers no fee for adding liquidity against Professional Customers,
Broker Dealers and Market Makers will promote liquidity on the
Exchange, ultimately benefitting all market participants. Further, the
Exchange believes that charging Market Makers less than Public
Customers when adding liquidity is reasonable, as other exchanges in
the industry also treat Market Makers more favorably than a Public
Customer for adding liquidity.\12\ Finally, the Exchange notes that
Public Customers have the ability to obtain a higher per contract
rebate than Market Makers under the Tiered Volume Rebates for Non-
Auction Transactions.\13\
---------------------------------------------------------------------------

    \12\ See Arca Fees and Charges page 4. On Arca, a Market Maker
making liquidity in Penny Pilot Classes receives a rebate of $0.28
where a Public Customer making liquidity in Penny Pilot Classes
receives a lower rebate of $0.25. See also C2 Options Exchange.
Incorporated (``C2'') Fee Schedule Section 1. Similar to Arca,
Market Makers on C2 who are making liquidity in Penny Pilot Classes
receive a rebate of $0.40 where Public Customers making liquidity in
Penny Pilot Classes receive a lower rebate of $0.37.
    \13\ Under the proposed Tiered Volume Rebates in Section I.A.1
Public Customers can receive a maximum per contract rebate of up to
$0.25 for Penny Pilot Classes and $0.50 in Non-Penny Pilot Classes.
Market Makers can only receive a maximum rebate of $0.15, regardless
of class.
---------------------------------------------------------------------------

    The Exchange believes it is reasonable, equitable and not unfairly
discriminatory for Professional Customers, Broker Dealers and Market
Makers to be charged higher fees when interacting with Public Customers
than interacting with other Participants on BOX. The Exchange believes
they are reasonable as they are in a similar range with the fees in the
options industry.\14\ Further, as stated above, the Exchange believes
charging a higher fee for interactions with a Public Customer when
compared to interactions with other Participants is equitable and not
unfairly discriminatory because it allows the Exchange to incentivize
Public Customer order flow by offering low fees and rebate potential to
Public Customers in Non-Auction Transactions. The Exchange believes
that providing these incentives for Non-Auction Transactions by Public
Customers will benefit all Participants trading on the Exchange by
attracting this Public Customer order flow.
---------------------------------------------------------------------------

    \14\ See supra note 6 [sic].
---------------------------------------------------------------------------

    The Exchange believes it is reasonable, equitable and not unfairly
discriminatory that Professional Customers, Broker Dealers and Market
Makers be charged a higher fee for certain orders removing liquidity,
when compared to the fee they receive for orders that add liquidity.
Charging a lower fee for orders that add liquidity will promote
liquidity on the Exchange and ultimately benefit all participants on
BOX. Further, the concept of incentivizing orders that add liquidity
over orders that remove liquidity is commonly accepted within the
industry as part of the ``Make/Take'' liquidity model.
    Finally, the Exchange also believes it is reasonable to charge
Professional Customers and Broker Dealers and Market Makers less for
certain

executions in Penny Pilot issues compared to Non-Penny Pilot issues
because these classes are typically more actively traded; assessing
lower fees will further incentivize order flow in Penny Pilot issues on
the Exchange, ultimately benefiting all Participants trading on BOX.
Tiered Volume Rebate for Non-Auction Transactions
    BOX believes it is reasonable, equitable and not unfairly
discriminatory to adjust certain rebates in the volume based thresholds
for Market Makers and Public Customers in all Non-Auction Transactions.
The volume thresholds and applicable rebates are meant to incentivize
Public Customers and Market Makers to direct order flow to the Exchange
to obtain the benefit of the rebate, which will in turn benefit all
market participants by increasing liquidity on the Exchange. Other
exchanges employ similar incentive programs; \15\ and the Exchange
believes that the proposed changes to the volume thresholds and rebates
are reasonable and competitive when compared to incentive structures at
other exchanges.
---------------------------------------------------------------------------

    \15\ See Section B of the PHLX Pricing Schedule entitled
``Customer Rebate Program;'' ISE Gemini's Qualifying Tier Thresholds
(page 6 of the ISE Gemini Fee Schedule); and CBOE's Volume Incentive
Program (VIP). CBOE's Volume Incentive Program (``VIP'') pays
certain tiered rebates to Trading Permit Holders for electronically
executed multiply-listed option orders which include AIM orders.
---------------------------------------------------------------------------

    With regard to the Public Customer Tiered Volume Rebate for Non-
Auction Transactions, the Exchange believes it is reasonable to offer a
higher per contract rebate for transactions in Non-Penny Pilot Classes
compared to Penny Pilot Classes because Non-Penny Pilot Classes are
typically less actively traded and have wider spreads. The Exchange
believes that offering a higher rebate will incentivize Public Customer
order flow in Non-Penny Pilot issues on the Exchange, ultimately
benefitting all Participants trading on BOX.
    The Exchange believes it is reasonable to increase the rebates in
Tiers 3 and 4 of the Tiered Volume Rebate for Market Makers making
liquidity in Non-Auction Transactions. The rebates are meant to
incentivize Market Makers to direct order flow to the Exchange to
obtain the benefit of the rebate, which will in turn benefit all market
participants by increasing liquidity on the Exchange.
    The Exchange continues to believe it is equitable and not unfairly
discriminatory to only have these rebate structures for Public
Customers and Market Makers in Non-Auction transactions. The practice
of incentivizing increased Public Customer and Market Maker order flow
is common in the options markets. While the Exchange proposes to
decrease the Public Customer rebates in Penny and Non-Penny Pilot
Classes, the Exchange believes that Public Customers will still benefit
from the opportunity to obtain a rebate. As discussed above, most
Public Customers currently achieve a volume based rebate in their Non-
Auction transactions, which will offset any exchange fees they are
assessed in Section I.A of the BOX Fee Schedule. Additionally, the
Exchange believes that Market Makers can provide high volumes of
liquidity and lowering certain Market Maker Non-Auction Transaction
fees and raising certain maker rebates in the Tiered Volume Rebates for
Market Makers in Non-Auction Transactions will potentially help attract
a higher level of Market Maker order flow and create liquidity, which
the Exchange believes will ultimately benefit all Participants trading
on BOX.
    Lastly, the Exchange believes that exempting transactions where a
Public Customer is a contra party from the Market Maker Tiered Volume
Rebate is reasonable, equitable and not unfairly discriminatory. BOX
provides these volume based rebates to incentivize Market Makers to
direct order flow to the Exchange to obtain the benefit of the rebate,
which will in turn benefit all market participants by increasing
liquidity on the Exchange. The Exchange believes by providing a rebate
to transactions that do not have a Public Customer as the contra party
will further encourage Market Makers to quote. Further, the Exchange
believes that Public Customer interaction does not need further
encouragement within the BOX fee schedule.

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 not necessary or appropriate in
furtherance of the purposes of the Act.
    The Exchange believes that the proposed adjustments to fees in the
Non-Auction Transactions fee structure will not impose a burden on
competition among various Exchange Participants. Rather, BOX believes
that the changes will result in the Participants being charged
appropriately for these transactions and are designed to enhance
competition in Non-Auction transactions on BOX. Submitting an order is
entirely voluntary and Participants can determine which type of order
they wish to submit, if any, to the Exchange. Further, the Exchange
believes that this proposal will enhance competition between exchanges
because it is designed to allow the Exchange to better compete with
other exchanges for order flow.
    The Exchange believes that amending the proposed rebate structure
for Customer and Market Maker Non-Auction Transactions will not impose
a burden on competition among various Exchange Participants. The
Exchange believes that the proposed changes will result in Customers
and Market Makers being rebated appropriately for these transactions.
Further, the Exchange believes that this proposal will enhance
competition between exchanges because it is designed to allow the
Exchange to better compete with other exchanges for order flow.
    Finally, the Exchange notes that it operates in a highly
competitive market in which market participants can readily favor
competing exchanges. In such an environment, the Exchange must
continually review, and consider adjusting, its fees and credits to
remain competitive with other exchanges. For the reasons described
above, the Exchange believes that the proposed rule change reflects
this competitive environment.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

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)(ii) of the Exchange Act \16\ and Rule 19b-4(f)(2)
thereunder,\17\ because it establishes or changes a due, or fee.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \17\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend the rule
change if it appears to the Commission that the action is necessary or
appropriate in the public interest, for the protection of investors, or
would otherwise further 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_ADDRESS>Please include
File Number SR-BOX-2016-33 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-BOX-2016-33. 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 Web site (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 Web site 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 such filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-BOX-2016-33, and should be
submitted on or before August 17, 2016.
---------------------------------------------------------------------------

    \18\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-17676 Filed 7-26-16; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register: March 27, 2007 (Volume 72, Number 58)]
[Notices]
[Page 14270]
[DOCID:fr27mr07-32]

-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP05-92-003]

Liberty Gas Storage, LLC; Notice of Compliance Filing

March 21, 2007.
    Take notice that on March 16, 2007, Liberty Gas Storage, LLC,
tendered for filing as part of its FERC Gas Tariff, Original Volume No.
1, the revised tariff sheets attached to the filing, with an effective
date of April 15, 2007.
    Any person desiring to protest this filing must file in accordance
with Rule 211 of the Commission's Rules of Practice and Procedure (18
CFR 385.211). Protests to this filing will be considered by the
Commission in determining the appropriate action to be taken but will
not serve to make protestants parties to the proceeding. Such protests
must be filed on or before the date as indicated below. Anyone filing a
protest must serve a copy of that document on all the parties to the
proceeding.
    The Commission encourages electronic submission of protests in lieu
of paper using the ``eFiling'' link at http://www.ferc.gov. Persons

unable to file electronically should submit an original and 14 copies
of the protest to the Federal Energy Regulatory Commission, 888 First
Street, NE., Washington, DC 20426.
    This filing is accessible on-line at http://www.ferc.gov, using the

``eLibrary'' link and is available for review in the Commission's
Public Reference Room in Washington, DC. There is an ``eSubscription''
link on the Web site that enables subscribers to receive e-mail
notification when a document is added to a subscribed docket(s). For
assistance with any FERC Online service, please e-mail
<EMAIL_ADDRESS>or call<PHONE_NUMBER> (toll free). For

TTY, call<PHONE_NUMBER>.
    Comment Date: 5 p.m. Eastern Time on March 28, 2007.

Philis J. Posey,
Acting Secretary.
[FR Doc. E7-5513 Filed 3-26-07; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register Volume 82, Number 225 (Friday, November 24, 2017)]
[Notices]
[Pages 55883-55888]
[FR Doc No: 2017-25352]

=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82107; File No. SR-BatsEDGX-2017-50]

Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change Related
to Fees for Use on Cboe EDGX Exchange, Inc.

November 17, 2017.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the

``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on November 8, 2017, Cboe EDGX Exchange, Inc. (formerly known as Bats
EDGX Exchange, Inc.) (the ``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 Exchange has designated the proposed
rule change as one establishing or changing a member due, fee, or other
charge imposed by the Exchange under Section 19(b)(3)(A)(ii) of the Act
\3\ and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposed rule
change effective upon filing with the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange filed a proposal to amend the fee schedule applicable
to Members \5\ and non-Members of the Exchange pursuant to EDGX Rules
15.1(a) and (c).
---------------------------------------------------------------------------

    \5\ The term ``Member'' is defined as ``any registered broker or
dealer that has been admitted to membership in the Exchange.'' See
Exchange Rule 1.5(n).
---------------------------------------------------------------------------

    The text of the proposed rule change is available at the Exchange's
Web site 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 modify the Fee Schedule applicable to the
Exchange's equity options platform (``EDGX Options'') to modify the
existing tiered pricing structure on EDGX Options and adopt new tiers
consistent with such tiered pricing, to adopt tiered pricing applicable
to complex orders on EDGX Options, and to modify the Marketing Fees
section of the Fee Schedule.\6\
---------------------------------------------------------------------------

    \6\ The Exchange initially filed the proposed rule changes on
November 1, 2017 (SR-BatsEDGX-2017-49). On November 8, 2017 the
Exchange withdrew SR-BatsEDGX-2017-49 and then subsequently
submitted this filing (SR-BatsEDGX-2017-50).
---------------------------------------------------------------------------

Existing Tiered Pricing Structure
Customer Volume Tiers
    The Exchange charges various reduced fees or enhanced rebates using
a tiered pricing structure pursuant to footnotes set forth on the Fee
Schedule. Under the tiers, Members that achieve certain volume criteria
may qualify for reduced fees or enhanced rebates for their orders. As
set forth in footnote 1, the Exchange offers enhanced rebates to
qualifying Members for Customer \7\ orders pursuant to certain Customer
Volume Tiers. The Exchange proposes to modify rebate provided and the
criteria necessary to achieve Customer Volume Tier 4 and to adopt a new
Customer Volume Tier 5.
---------------------------------------------------------------------------

    \7\ ``Customer'' applies to any transaction identified by a
Member for clearing in the Customer range at the OCC, excluding any
transaction for a Broker Dealer or a ``Professional'' as defined in
Exchange Rule 16.1. See the Exchange's Fee Schedule available at:
https://markets.cboe.com/us/options/membership/fee_schedule/edgx/.
---------------------------------------------------------------------------

    Fee codes PC and NC are currently appended to all Customer orders
in Penny Pilot Securities \8\ and Non-Penny Pilot Securities,\9\
respectively, and result in a standard rebate of $0.05 per contract.
The Customer Volume Tiers in footnote 1 consist of four separate tiers,
each providing an enhanced rebate to a Member's Customer order that
yields fee codes PC or NC upon satisfying monthly volume criteria
required by the respective tier. For instance, pursuant to Customer
Volume Tier 1, the lowest volume tier, a Member will currently receive
a rebate of $0.10 per contract where the Member has an ADV \10\ in
Customer orders equal to or greater than 0.20% of average OCV.\11\
---------------------------------------------------------------------------

    \8\ ``Penny Pilot Securities'' are those issues quoted pursuant
to Exchange Rule 21.5, Interpretation and Policy .01. Id.
    \9\ The term ``Non-Penny Pilot Security'' applies to those
issues that are not Penny Pilot Securities quoted pursuant to
Exchange Rule 21.5, Interpretation and Policy .01.
    \10\ ``ADV'' means average daily volume calculated as the number
of contracts added or removed, combined, per day. Additional details
regarding the calculation of ADV are contained on the Exchange's Fee
Schedule. See the Exchange's Fee Schedule available at: https://markets.cboe.com/us/options/membership/fee_schedule/edgx/.
    \11\ ``OCV'' stands for ``OCC Customer Volume'' and means the
total equity and ETF options volume that clears in the Customer
range at the OCC for the month for which the fees apply, excluding
volume on any day that the Exchange experiences an Exchange System
Disruption and on any day with a scheduled early market close. See
id.
---------------------------------------------------------------------------

    Pursuant to Customer Volume Tier 4, a Member currently will receive
a rebate of $0.21 per contract where: (i) The Member has an ADV in
Customer orders equal to or greater than 0.05% of average OCV; and (ii)
the Member has an ADV in Customer or Market Maker orders equal to or
greater than 0.35% of average OCV. To encourage the entry of additional
orders, the Exchange proposes to modify the first prong of the criteria
necessary to achieve Customer Volume Tier 4 to require that the Member
has an ADV in Customer orders equal to or greater than 0.15% of average
OCV. The Exchange does not propose to modify the second prong,
requiring the Member to have an ADV in Customer or Market Maker orders
equal to or greater than 0.35% of average OCV. The Exchange also
proposes to reduce the enhanced rebate provided under Customer Volume
Tier 4 from a rebate of $0.21 per contract to a rebate of $0.16 per
contract.
    The Exchange also proposes to offer an additional Customer Volume
Tier, Customer Volume Tier 5, to provide Members with another way to
achieve the highest rebate for Customer orders, a rebate of $0.21 per
contract.\12\ The Exchange proposes to adopt criteria for Tier 5 such
that the enhanced rebate of $0.21 per contract is provided to Members
that have: (i) An ADV in Customer orders equal to or greater than 0.30%
of average OCV; and (ii) an ADV in Customer or Market Maker orders
equal to or greater than 0.50% of average OCV.
---------------------------------------------------------------------------

    \12\ A rebate of $0.21 per contract will continue to be
available to Members that achieve the criteria for Customer Volume
Tier 3, which the Exchange has not proposed to modify, but will no
longer be available through Customer Volume Tier 4.
---------------------------------------------------------------------------

Market Maker Volume Tiers
    As set forth in footnote 2, the Exchange offers enhanced rebates to
qualifying Members for Market Maker \13\

orders pursuant to certain Market Maker Volume Tiers. The Exchange
proposes to modify the criteria necessary to achieve Market Maker
Volume Tiers 7 and 8.
---------------------------------------------------------------------------

    \13\ ``Market Maker'' applies to any transaction identified by a
Member for clearing in the Market Maker range at the OCC, where such
Member is registered with the Exchange as a Market Maker as defined
in Rule 16.1(a)(37). See the Exchange's Fee Schedule available at:
https://markets.cboe.com/us/options/membership/fee_schedule/edgx/.
---------------------------------------------------------------------------

    Fee codes PM and NM are currently appended to all Market Maker
orders in Penny Pilot Securities and Non-Penny Pilot Securities,
respectively, and result in a standard fee of $0.19 per contract. The
Market Maker Volume Tiers in footnote 2 consist of eight separate
tiers, each providing a reduced fee or rebate to a Member's Market
Maker order that yields fee codes PM or NM upon satisfying the monthly
volume criteria required by the respective tier. For instance, pursuant
to Market Maker Volume Tier 1, the lowest volume tier, a Member will
currently be charged a reduced fee of $0.16 per contract where the
Member has an ADV in Market Maker orders equal to or greater than 0.05%
of average OCV.
    Pursuant to Market Maker Volume Tier 7, a Member will currently be
charged a reduced fee of $0.03 per contract where the Member has an ADV
in: (i) Customer orders equal to or greater than 0.05% of average OCV;
and (ii) Customer or Market Maker orders equal to or greater than 0.35%
of average OCV. To encourage the entry of additional orders to the
Exchange, the Exchange proposes to modify the first prong of the
criteria necessary to achieve Market Maker Volume Tier 7 to require
that the Member has an ADV in Customer orders equal to or greater than
0.15% of average OCV. The Exchange does not propose to modify the
second prong, requiring the Member to have an ADV in Customer or Market
Maker orders equal to or greater than 0.35% of average OCV.
    Pursuant to Market Maker Volume Tier 8, a Member will currently be
charged a reduced fee of $0.02 per contract where the Member has an ADV
in: (i) Customer orders equal to or greater than 0.05% of average OCV;
(ii) Customer or Market Maker orders equal to or greater than 0.35% of
average OCV; and (iii) BAM Agency Orders \14\ equal to or greater than
10,000 contracts. The Exchange proposes to modify each of these
criteria as follows: increase the ADV requirement of the first prong to
0.30% of average OCV, increase the ADV requirement of the second prong
to 0.50% of average OCV, and increase the ADV requirement of the third
prong to 25,000 contracts. In addition, the Exchange proposes to adopt
a new prong also necessary to qualify for Market Maker Volume Tier 8,
which is intended to incentivize the entry of complex orders to the
Exchange. Specifically, in order to qualify for Market Maker Volume
Tier 8, the Exchange also proposes to require a Member to have an ADV
in complex Customer orders (yielding fee codes ZA, ZB, ZC, or ZD) equal
to or greater than 5,000 contracts.
---------------------------------------------------------------------------

    \14\ BAM Agency Orders are orders represented as agent by a
Member on behalf of another party and submitted to BAM for potential
price improvement pursuant to Rule 21.19. See the Exchange's Fee
Schedule available at: https://markets.cboe.com/us/options/membership/fee_schedule/edgx/.
---------------------------------------------------------------------------

    Thus, as proposed, pursuant to Market Maker Volume Tier 8, a Member
will be charged a reduced fee of $0.02 per contract where the Member
has an ADV in: (i) Customer orders equal to or greater than 0.30% of
average OCV; (ii) Customer or Market Maker orders equal to or greater
than 0.50% of average OCV; (iii) BAM Agency Orders equal to or greater
than 25,000 contracts; and (iv) complex Customer orders (yielding fee
codes ZA, ZB, ZC, or ZD) equal to or greater than 5,000 contracts.
Tiered Pricing--Complex Orders
    The Exchange recently began accepting complex orders in connection
with the launch of the EDGX Options complex order book (``COB'').\15\
In turn, the Exchange adopted base fees and rebates applicable to
complex orders to accommodate the acceptance of complex orders.\16\ The
Exchange now proposes to adopt various tiers to incentivize the entry
of complex orders to the Exchange. As noted above, the Exchange also
proposes to add criteria to existing Market Maker Volume Tier 8 to
incentivize the entry of complex orders to the Exchange.
---------------------------------------------------------------------------

    \15\ See Securities Exchange Act Release No. 81891 (October 17,
2017) (SR-BatsEDGX-2017-29) (order approving rules for EDGX complex
order book).
    \16\ The Exchange initially filed to adopt complex order pricing
on October 23, 2017 (SR-BatsEDGX-2017-42). On October 31, 2017 the
Exchange withdrew SR-BatsEDGX-2017-42 and submitted a filing to
replace such filing (SR-BatsEDGX-2017-48).
---------------------------------------------------------------------------

Customer Volume Tiers--Complex Orders
    Under the recently adopted fees, the Exchange applies fee code ZA
to Customer complex orders that are executed on the COB with a non-
Customer \17\ as the contra-party in Penny Pilot Securities and
provides such orders a standard rebate of $0.47 per contract.
Similarly, the Exchange applies fee code ZB to Customer complex orders
that are executed on the COB with a non-Customer as the contra-party in
Non-Penny Pilot Securities and provides such orders a standard rebate
of $0.97 per contract.
---------------------------------------------------------------------------

    \17\ ``Non-Customer'' applies to any transaction that is not a
Customer order. Id.
---------------------------------------------------------------------------

    The Exchange proposes to adopt two sets of tiers applicable to the
Customer Volume Tiers under footnote 1 that would provide enhanced
rebates for orders yielding fee codes ZA and ZB.
    The Exchange proposes to provide enhanced rebates for orders
yielding fee code ZA (i.e., Customer complex orders executed on the
COB/non-Customer contra-party/Penny Pilot Securities) under Tiers 1
through 3. As proposed, pursuant to Tier 1 the Exchange would provide
an enhanced rebate of $0.48 per contract for Members with an ADV in
Customer orders equal to or greater than 0.30% of average OCV. Pursuant
to Tier 2 the Exchange would provide an enhanced rebate of $0.49 per
contract for Members with an ADV in Customer orders equal to or greater
than 0.40% of average OCV. Pursuant to Tier 3 the Exchange would
provide an enhanced rebate of $0.50 per contract for Members with an
ADV in Customer orders equal to or greater than 0.65% of average OCV.
    The Exchange proposes to provide enhanced rebates for orders
yielding fee code ZB (i.e., Customer complex orders executed on the
COB/non-Customer contra-party/Non-Penny Pilot Securities) under Tiers 1
through 3 with criteria identical to that described above with respect
to tiers applicable to fee code ZA (but rebates that are an enhancement
to the standard rebate for orders yielding fee code ZB). Thus, pursuant
to Tier 1 the Exchange would provide an enhanced rebate of $0.98 per
contract for Members with an ADV in Customer orders equal to or greater
than 0.30% of average OCV. Pursuant to Tier 2 the Exchange would
provide an enhanced rebate of $0.99 per contract for Members with an
ADV in Customer orders equal to or greater than 0.40% of average OCV.
Pursuant to Tier 3 the Exchange would provide an enhanced rebate of
$1.00 per contract for Members with an ADV in Customer orders equal to
or greater than 0.65% of average OCV.
    In connection with these changes, the Exchange proposes to append
footnote 1 to fee codes ZA and ZB on the Fee Codes and Associated Fees
table of the Fee Schedule.
Market Maker Volume Tiers--Complex Orders
    Under the recently adopted fees, the Exchange applies fee code ZM
to Market Maker complex orders that are executed on the COB with a
Customer as the contra-party in Penny Pilot Securities and charges such
orders a standard fee of $0.50 per contract. The Exchange applies fee
code ZN to Market Maker complex orders that are executed on the

COB with a Customer as the contra-party in Non-Penny Pilot Securities
and charges such orders a standard fee of $1.10 per contract.
    Similar to the new tiers proposed for footnote 1 as described
above, the Exchange proposes to adopt new tiers under footnote 2
applicable to fee codes ZM and ZN, respectively. The Exchange proposes
to adopt a single tier applicable to fee code ZM, Tier 1, under which
the Exchange would charge a reduced fee of $0.48 per contract for
Members with an ADV in complex Customer orders (yielding fee codes ZA,
ZB, ZC, or ZD) equal to or greater than 10,000 contracts. The Exchange
proposes a similar tier applicable to fee code ZN, again Tier 1, under
which the Exchange would charge a reduced fee of $1.05 per contract for
Members with an ADV in complex Customer orders (yielding fee codes ZA,
ZB, ZC, or ZD) equal to or greater than 10,000 contracts.
    In connection with these changes, the Exchange proposes to append
footnote 2 to fee codes ZM and ZN on the Fee Codes and Associated Fees
table of the Fee Schedule.
Marketing Fees
    The Fee Schedule currently contains a section entitled ``Marketing
Fees'' that specifies that marketing fees are charged to all Market
Makers who are counterparties to a trade with a Customer. In connection
with the recent adoption of fees applicable to complex orders, the
Exchange specified that marketing fees shall not apply to executions of
complex orders on the COB.\18\ The Exchange proposes to extend this
exclusion to orders subject to BAM Pricing set forth in footnote 6 and
Qualified Contingent Cross Orders. The Exchange notes with respect to
the proposed language regarding BAM Pricing that certain orders
executed through BAM are assessed standard fee rates as set forth in
footnote 6 and that marketing fees will continue to be assessed for
such transactions. Accordingly, the Exchange has proposed to limit the
exclusion from marketing fees being assessed to those orders that are
subject to BAM Pricing and not all orders executed through BAM.
---------------------------------------------------------------------------

    \18\ See supra, note 16.
---------------------------------------------------------------------------

Implementation Date
    The Exchange proposes to implement the proposed changes
immediately.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder that are applicable to a national securities exchange, and,
in particular, with the requirements of Section 6 of the Act.\19\
Specifically, the Exchange believes that the proposed rule change is
consistent with Section 6(b)(4) of the Act,\20\ in that it provides for
the equitable allocation of reasonable dues, fees and other charges
among Members and other persons using any facility or system which the
Exchange operates or controls.
---------------------------------------------------------------------------

    \19\ 15 U.S.C. 78f.
    \20\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    In sum, the Exchange believes that the proposed fee and rebate
structure is designed to promote the growth of EDGX Options, including
the EDGX Options COB, which benefits all market participants by
providing additional trading opportunities. The goal is to attract both
Customers and liquidity providers and an increase in the activity of
these market participants in turn facilitates tighter spreads, which
may cause an additional corresponding increase in order flow
originating from other market participants.
    Volume-based rebates such as those currently maintained on the
Exchange have been widely adopted by options exchanges and are
equitable because they are open to all Members on an equal basis and
provide additional benefits or discounts that are reasonably related to
the value of an exchange's market quality associated with higher levels
of market activity, such as higher levels of liquidity provision and/or
growth patterns, and introduction of higher volumes of orders into the
price and volume discovery processes. The proposed modifications to the
existing Customer Volume Tiers and Market Maker Volume tiers that make
such tiers more difficult to attain are each intended to incentivize
Members to send additional Customer and/or Market Maker orders to the
Exchange, and in the case of Market Maker Volume Tier 8, also to
encourage the submission of complex orders to the Exchange in an effort
to qualify or continue to qualify for the enhanced rebate or lower fee
made available by the tiers. With respect to the reduction of the
rebate provided for Customer Volume Tier 4, this change is reasonable,
fair and equitable because the Exchange is adopting an additional Tier,
Tier 5, as another means to achieve the rebate previously provided by
Tier 4 (in addition to Tier 3, which also provides such rebate and
remains unchanged). With respect to Tier 5, the Exchange believes this
Tier is reasonable, equitably allocated and non-discriminatory for the
reasons set forth regarding tiered pricing generally, and also because
the proposed tier is consistent with existing Tier 4 (which the
Exchange has proposed to modify), only with higher criteria and a
higher rebate as an incentive to achieve such criteria.
    The Exchange's recent launch of a complex order book is a
competitive offering, and the Exchange believes it is necessary to
adopt certain incentives to encourage Members to enter complex orders
to the Exchange. In particular, the Exchange believes that
incentivizing the submission of Customer orders to the Exchange,
including the Exchange's COB, will help to grow participation in the
COB generally, and that providing enhanced rebates and reduced fees for
such participation will help to grow liquidity on the COB to the
benefit of all participants on the Exchange. The proposed criteria for
each tier applicable to complex orders is in-line with existing
criteria on the Exchange as well as criteria proposed herein, and does
not represent a significant departure in pricing applied by the
Exchange. Similarly, the enhanced rebates and reduced fees provide
modest incentives to Members to increase their participation on the
Exchange generally, including the submission of complex orders.
    The Exchange believes that the proposed tiers are reasonable, fair
and equitable, and non-discriminatory, for the reasons set forth above
with respect to volume-based pricing generally and because such changes
will incentivize participants to further contribute to market quality.
The proposed tiers will provide an additional way for market
participants to qualify for enhanced rebates or reduced fees. Further,
the COB is fully available to all Members, and the proposed thresholds
are intended to encourage Members to do the development work necessary
to participate on the COB and send complex orders to the Exchange.
    Continuing to provide Customer orders a rebate for complex orders,
including a potentially enhanced rebate, while assessing Non-Customers
a fee for complex orders, is reasonable because of the desirability of
Customer activity. The proposed fees and rebates for complex orders
continue to be intended to encourage greater Customer volume on the
Exchange. As set forth above, Customer activity enhances liquidity on
the Exchange for the benefit of all market participants and benefits
all market participants by providing more trading opportunities, which
attracts market makers and other liquidity providers. The fee and
rebate schedule as proposed continues to reflect

differentiation among different market participants typically found in
options fee and rebate schedules.\21\ The Exchange believes that the
differentiation is reasonable and notes that unlike others (e.g.,
Customers) some market participants like EDGX Options Market Makers
commit to various obligations. For example, transactions of an EDGX
Options Market Maker must constitute a course of dealings reasonably
calculated to contribute to the maintenance of a fair and orderly
market, and Market Makers should not make bids or offers or enter into
transactions that are inconsistent with such course of dealings.\22\
Further, all Market Makers are designated as specialists on EDGX
Options for all purposes under the Act or rules thereunder.\23\
---------------------------------------------------------------------------

    \21\ See the Exchange's Fee Schedule, available at:https://markets.cboe.com/us/options/membership/fee_schedule/edgx/; see also,
e.g., MIAX Fee Schedule, NYSE Amex Options Fee Schedule, BX Options
Fee Schedule and Nasdaq Options Market Fee Schedule.
    \22\ See Exchange Rule 22.5, entitled ``Obligations of Market
Makers''.
    \23\ See Exchange Rule 22.2, entitled ``Options Market Maker
Registration and Appointment''.
---------------------------------------------------------------------------

    Continuing to provide a rebate for Customer orders and a fee for
Non-Customer Orders is also equitable and not unfairly discriminatory.
This is because the Exchange's proposal to provide rebates and assess
fees will apply the same to all similarly situated participants.
Moreover, all similarly situated complex orders are subject to the same
proposed Fee Schedule, and access to the Exchange is offered on terms
that are not unfairly discriminatory. Similarly, the Exchange believes
that providing different rates for Penny Pilot Securities and Non-Penny
Pilot Securities is well-established in the options industry, including
on the Exchange's current fee schedule.\24\ The Exchange believes it is
reasonable, equitably allocated and non-discriminatory to impose higher
fees and provide higher rebates in Non-Penny Pilot Securities than
Penny Pilot Securities because Penny Pilot Securities and Non-Penny
Pilot Securities have different liquidity, spread and trading
characteristics. In particular, spreads in Penny Pilot Securities are
tighter than those in Non-Penny Pilot Securities (which trade in
increments of $0.05 or greater). The wider spreads in Non-Penny Pilot
Securities allow for greater profit potential.
---------------------------------------------------------------------------

    \24\ See the Exchange's Fee Schedule, available at:https://markets.cboe.com/us/options/membership/fee_schedule/edgx/; see also,
e.g., MIAX Fee Schedule, NYSE Amex Options Fee Schedule.
---------------------------------------------------------------------------

    In connection with the adoption of fees applicable to complex
orders, the Exchange modified the description of Marketing Fees
applicable on the Exchange to make clear that such fees do not apply to
complex orders.\25\ The Exchange proposes to expand the exclusions
listed in this section to also exclude orders subject to BAM Pricing
set forth in footnote 6 and Qualified Contingent Cross Orders. The
Exchange believes this proposal is a reasonable and equitable
allocation of fees and dues and is not unreasonably discriminatory
because the rates for Market Makers for orders subject to BAM Pricing
and Qualified Contingent Cross Orders are more reasonable and equitably
allocated as an all-inclusive rate but would increase such rates to a
level higher than that paid by other non-Customers if Marketing Fees
were also assessed on such transactions.
---------------------------------------------------------------------------

    \25\ See supra, note 16.
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe the proposed fee changes would impose
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange does not believe
that the proposed tiered pricing structure, including the tiered
pricing structure for complex orders, represents a significant
departure from previous pricing offered by the Exchange or pricing
offered by the Exchange's competitors. Rather, the Exchange believes
the proposal will enhance competition as it is a competitive proposal
that seeks to further the growth of the Exchange by encouraging Members
to enter orders to the Exchange, including Customer orders generally
and complex orders.
    The Exchange's proposal to adopt complex order functionality was a
competitive response to complex order books operated by other options
exchanges. The Exchange believes this proposed rule change is necessary
to permit fair competition among the options exchanges. While the
proposed fees and rebates are intended to attract participation on the
Exchange, particularly complex orders, the Exchange does not believe
that its proposed pricing significantly departs from pricing in place
on other options exchanges that accept complex orders. Accordingly, the
Exchange does not believe that the proposal creates an undue burden on
inter-market competition.
    The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. In terms of inter-market
competition, the Exchange notes that it operates in a highly
competitive market in which market participants can readily favor
competing venues if they deem fee levels at a particular venue to be
excessive, or rebate opportunities available at other venues to be more
favorable. In such an environment, the Exchange must continually adjust
its fees to remain competitive with other exchanges. Because
competitors are free to modify their own fees in response, and because
market participants may readily adjust their order routing practices,
the Exchange believes that the degree to which fee changes in this
market may impose any burden on competition is extremely limited.
    In this instance, the proposed charges assessed and credits
available to Members under the proposed tiered pricing structure do not
impose a burden on competition because the Exchange's execution
services are completely voluntary and subject to extensive competition.
If the changes proposed herein are unattractive to market participants,
it is likely that the Exchange will lose market share as a result and/
or will be unable to attract participants to the Exchange or the COB.
Accordingly, the Exchange does not believe that the proposed changes
will impair the ability of members or competing order execution venues
to maintain their competitive standing in the financial markets.
Additionally, the changes proposed herein are pro-competitive to the
extent that they allow the Exchange to promote and maintain the COB,
which has the potential to result in efficient executions to the
benefit of market participants.
    The Exchange believes that the proposed change would increase both
inter-market and intra-market competition by incentivizing members to
direct their orders, and particularly Customer orders, to the Exchange,
which benefits all market participants by providing more trading
opportunities, which attracts Market Makers. To the extent that there
is a differentiation between proposed fees assessed and rebates offered
to Customers as opposed to other market participants, the Exchange
believes that this is appropriate because the fees and rebates should
incentivize Members to direct additional order flow to the Exchange and
thus provide additional liquidity that enhances the quality of its
markets and increases the volume of

contracts traded on the Exchange. To the extent that this purpose is
achieved, all the Exchange's market participants should benefit from
the improved market liquidity. Enhanced market quality and increased
transaction volume that results from the anticipated increase in order
flow directed to the Exchange will benefit all market participants and
improve competition on the Exchange.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any written comments from members or other interested parties.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \26\ and paragraph (f) of Rule 19b-4
thereunder.\27\ 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.
---------------------------------------------------------------------------

    \26\ 15 U.S.C. 78s(b)(3)(A).
    \27\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

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-BatsEDGX-2017-50 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-BatsEDGX-2017-50. 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 Web site (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 Web site 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 such 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-BatsEDGX-2017-50, and should
be submitted on or before December 15, 2017.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\28\
---------------------------------------------------------------------------

    \28\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-25352 Filed 11-22-17; 8:45 am]
BILLING CODE 8011-01-P