[Federal Register Volume 77, Number 86 (Thursday, May 3, 2012)]
[Notices]
[Pages 26343-26348]
[FR Doc No: 2012-10643]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66873; File No. SR-EDGX-2012-15]

Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
New EDGX Rule Regarding Telemarketing

April 27, 2012.
    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 April 16, 2012, EDGX Exchange, Inc. (the ``Exchange'' or
``EDGX'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, and
II below, which items have been prepared by the Exchange. The
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

    The Exchange proposes to add Rule 3.26, Telemarketing,\3\ to its
rulebook to codify provisions that are substantially similar to Federal
Trade Commission (``FTC'') rules that prohibit deceptive and other
abusive telemarketing acts or practices. The text of the proposed rule
change is available on the Exchange's Web site at www.directedge.com,
at the Exchange's principal office, on the Commission's Web site at
www.sec.gov, and at the Public Reference Room of the Commission.
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    \3\ The proposed rule change is substantially similar in all
material respects to Financial Industry Regulatory Authority, Inc.
(``FINRA'') Rule 3230 (Telemarketing), which the Commission recently
approved. See Securities Exchange Act Release No. 66279 (Jan. 30,
2012), 77 FR 5611 (Feb. 3, 2012) (SR-FINRA-2011-059) (approval order
of proposed rule change to adopt telemarketing rule).
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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 add Rule 3.26, Telemarketing, to its
rulebook to codify provisions that are substantially similar to FTC
rules that prohibit deceptive and other abusive telemarketing acts or
practices. Rule 3.26 will require Members to, among other things,
maintain do-not-call lists, limit the hours of telephone solicitations,
and not use deceptive and abusive acts and practices in connection with
telemarketing. The Commission directed EDGX to enact these
telemarketing rules in accordance with the Telemarketing Consumer Fraud
and Abuse Prevention Act of 1994 (``Prevention Act'').\4\ The
Prevention Act requires the Commission to promulgate, or direct any
national securities exchange or registered securities association to
promulgate, rules substantially similar to the FTC rules \5\ to
prohibit deceptive and other abusive telemarketing acts or practices,
unless the Commission determines either that the rules are not
necessary or appropriate for the protection of investors or the
maintenance of orderly markets, or that existing federal securities
laws or Commission rules already provide for such protection.\6\
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    \4\ 15 U.S.C. 6101-6108.
    \5\ 16 CFR 310.1-.9. The FTC adopted these rules under the
Prevention Act in 1995. See Federal Trade Commission, Telemarketing
Sales Rule, 60 FR 43842 (Aug. 23, 1995).
    \6\ 15 U.S.C. 6102.
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    In 1997, the Commission determined that telemarketing rules
promulgated and expected to be promulgated by self-regulatory
organizations, together with the other rules of the self-regulatory
organizations, the federal securities laws and the Commission's rules
thereunder, satisfied the requirements of the Prevention Act because,
at the time, the applicable provisions of those laws and rules were
substantially similar to the FTC's telemarketing rules.\7\ Since 1997,
the FTC has amended its telemarketing rules in light of changing
telemarketing practices and technology.\8\
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    \7\ See Telemarketing and Consumer Fraud and Abuse Prevention
Act; Determination that No Additional Rulemaking Required,
Securities Exchange Act Release No. 38480 (Apr. 7, 1997), 62 FR
18666 (Apr. 16, 1997). The Commission also determined that some
provisions of the FTC's telemarketing rules related to areas already
extensively regulated by existing securities laws or activities not
applicable to securities transactions See id.
    \8\ See, e.g., Federal Trade Commission, Telemarketing Sales
Rule, 73 FR 51164 (Aug. 29, 2008) (amendments to the Telemarketing
Sales Rule relating to prerecorded messages and call abandonments);
and Federal Trade Commission, Telemarketing Sales Rule, 68 FR 4580
(Jan. 29, 2003) (amendments to the Telemarketing Sales Rule
establishing requirements for sellers and telemarketers to
participate in the national do-not-call registry).
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    As mentioned above, the Prevention Act requires the Commission to
promulgate, or direct any national securities exchange or registered
securities association to promulgate, rules substantially similar to
the FTC rules to prohibit deceptive and other abusive telemarketing
acts or practices.\9\ In May 2011, Commission staff directed EDGX to
conduct a review of its telemarketing rule and propose rule amendments
that provide protections that are at least as strong as those provided
by the FTC's telemarketing rules.\10\ Commission staff had concerns
``that the [Exchange] rules overall have not kept pace with the FTC's
rules, and thus may no longer meet the standards of the [Prevention]
Act.'' \11\
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    \9\ See supra note 6.
    \10\ See Letter from Robert W. Cook, Director, Division of
Trading and Markets, Securities and Exchange Commission, to William
O'Brien, Chief Executive Officer, Direct Edge Holdings LLC, dated
May 12, 2011.
    \11\ Id.
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    The proposed rule change, as directed by the Commission staff,
adopts provisions in Rule 3.26 that are substantially similar to the
FTC's current rules that prohibit deceptive and other abusive
telemarketing acts or practices as described below.\12\
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    \12\ The proposed rule change is also substantially similar to
FINRA Rule 3230. See supra note 3.
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Telemarketing Restrictions
    The proposed rule change codifies the telemarketing restrictions in
Rule 3.26(a) to provide that no Member or

associated person of a Member \13\ may make an outbound telephone call
\14\ to:
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    \13\ An ``associated person of a Member'' is any partner,
officer, director, or branch manager of a Member (or person
occupying a similar status or performing similar functions), any
person directly or indirectly controlling, controlled by, or under
common control with such Member, or any employee of such Member,
except that any person associated with a Member whose functions are
solely clerical or ministerial shall not be included in the meaning
of such term. See Rule 1.5(q).
    \14\ An ``outbound telephone call'' is a telephone call
initiated by a telemarketer to induce the purchase of goods or
services or to solicit a charitable contribution from a donor. A
``telemarketer'' is any person who, in connection with
telemarketing, initiates or receives telephone calls to or from a
customer or donor. A ``customer'' is any person who is or may be
required to pay for goods or services through telemarketing. A
``donor'' means any person solicited to make a charitable
contribution. A ``person'' is any individual, group, unincorporated
association, limited or general partnership, corporation, or other
business entity. ``Telemarketing'' means consisting of or relating
to a plan, program, or campaign involving at least one outbound
telephone call, for example cold-calling. The term does not include
the solicitation of sales through the mailing of written marketing
materials, when the person making the solicitation does not solicit
customers by telephone but only receives calls initiated by
customers in response to the marketing materials and during those
calls takes orders only without further solicitation. For purposes
of the previous sentence, the term ``further solicitation'' does not
include providing the customer with information about, or attempting
to sell, anything promoted in the same marketing materials that
prompted the customer's call. A ``charitable contribution'' means
any donation or gift of money or any other thing of value, for
example a transfer to a pooled income fund. See proposed Rule
3.26(n)(3), (11), (16), (17), (20), and (21); see also FINRA Rule
3230(m)(11), (14), (16), (17), and (20); and 16 CFR 310.2(f), (l),
(n), (v), (w), (cc), and (dd).
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    (1) Any person's residence at any time other than between 8 a.m.
and 9 p.m. local time at the called person's locations;
    (2) any person that previously has stated that he or she does not
wish to receive any outbound telephone calls made by or on behalf of
the Member; or
    (3) any person who has registered his or her telephone number on
the FTC's national do-not-call registry.
    The proposed rule change is substantially similar to the FTC's
provisions regarding abusive telemarketing acts or practices.\15\ The
FTC provided a discussion of the provision when it was adopted pursuant
to the Prevention Act.\16\
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    \15\ See 16 CFR 310.4(b)(1)(iii)(A) and (B) and (c); see also
FINRA Rule 3230(a). See proposed Rule 3.26(n)(16) and (21) and supra
note 14.
    \16\ See Federal Trade Commission, Telemarketing Sales Rule, 68
FR 4580 (Jan. 29, 2003) at 4628; and Federal Trade Commission,
Telemarketing Sales Rule, 60 FR 43842 (Aug. 23, 1995) at 43855.
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Caller Disclosures
    The proposed rule change codifies in Rule 3.26(b) that no Member or
associated person of a Member shall make an outbound telephone call to
any person without disclosing truthfully, promptly and in a clear and
conspicuous manner to the called person the following information: (i)
The identity of the caller and the Member; (ii) the telephone number or
address at which the caller may be contacted; and (iii) that the
purpose of the call is to solicit the purchase of securities or related
services. The proposed rule change also provides that the telephone
number that a caller provides to a person as the number at which the
caller may be contacted may not be a 900 number or any other number for
which charges exceed local or long-distance transmission charges.\17\
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    \17\ See proposed Rule 3.26(b); see also FINRA Rule 3230(d)(4).
The proposed rule change is substantially similar to the Federal
Communications Commission's regulations regarding call disclosures.
See 47 CFR 64.1200(d)(4).
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Exceptions
    The proposed rule change adds Rule 3.26(c) to provide that the
prohibition in paragraph (a)(1) \18\ does not apply to outbound
telephone calls by a Member or an associated person of a Member if:
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    \18\ The Exchange believes that even if a Member satisfies the
exception in paragraph (c), the Member should still make the caller
disclosures required by paragraph (b) to the called person to ensure
that the called person receives sufficient information regarding the
purpose of the call.
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    (1) The Member has received that person's express prior written
consent;
    (2) the Member has an established business relationship \19\ with
the person; or
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    \19\ An ``established business relationship'' is a relationship
between a Member and a person if (a) the person has made a financial
transaction or has a security position, a money balance, or account
activity with the Member or at a clearing firm that provides
clearing services to the Member within the 18 months immediately
preceding the date of an outbound telephone call; (b) the Member is
the broker-dealer of record for an account of the person within the
18 months immediately preceding the date of an outbound telephone
call; or (c) the person has contacted the Member to inquire about a
product or service offered by the Member within the three months
immediately preceding the date of an outbound telephone call. A
person's established business relationship with a Member does not
extend to the Member's affiliated entities unless the person would
reasonably expect them to be included. Similarly, a person's
established business relationship with a Member's affiliate does not
extend to the Member unless the person would reasonably expect the
Member to be included. The term ``account activity'' includes, but
is not limited to, purchases, sales, interest credits or debits,
charges or credits, dividend payments, transfer activity, securities
receipts or deliveries, and/or journal entries relating to
securities or funds in the possession or control of the Member. The
term ``broker-dealer of record'' refers to the broker or dealer
identified on a customer's account application for accounts held
directly at a mutual fund or variable insurance product issuer. See
proposed Rule 3.26(n)(1), (4), and (12); see also 16 CFR 310.2(o)
and FINRA Rule 3230(m)(1), (4), and (12).
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    (3) The person is a broker or dealer.
Member's Firm-Specific Do-Not-Call List
    The proposed rule change adds Rule 3.26(d) to provide that each
Member must make and maintain a centralized list of persons who have
informed the Member or any of its associated persons that they do not
wish to receive outbound telephone calls. The proposed term ``outbound
telephone call'' is defined substantially similar to the FTC's
definition of that term.\20\
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    \20\ See 16 CFR 310.4(b)(1)(iii)(A) and supra note 14; see also
FINRA Rule 3230(a)(2).
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    Proposed Rule 3.26(d)(2) adopts procedures that Members must
institute to comply with Rule 3.26(a) and (b) prior to engaging in
telemarketing. These procedures must meet the following minimum
standards:
    (1) Member must have a written policy for maintaining their firm-
specific do-not-call lists.
    (2) Personnel engaged in any aspect of telemarketing must be
informed and trained in the existence and use of the Member's firm-
specific do-not-call list.
    (3) If a Member receives a request from a person not to receive
calls from that Member, the Member must record the request and place
the person's name, if provided, and telephone number on its firm-
specific do-not-call list at the time the request is made.\21\
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    \21\ Members must honor a person's do-not-call request within a
reasonable time from the date the request is made, which may not
exceed 30 days from the date of the request. If these requests are
recorded or maintained by a party other than the Member on whose
behalf the outbound telephone call is made, the Member on whose
behalf the outbound telephone call is made will still be liable for
any failures to honor the do-not-call request.
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    (4) Members or associated persons of Members making an outbound
telephone call must make the caller disclosures set forth in Rule
3.26(b).
    (5) In the absence of a specific request by the person to the
contrary, a person's do-not-call request will apply to the Member
making the call, and will not apply to affiliated entities unless the
consumer reasonably would expect them to be included given the
identification of the call and the product being advertised.
    (6) A Member making outbound telephone calls must maintain a record
of a person's request not to receive further calls.
    Inclusion of this requirement to adopt these procedures will not
create any new obligations on Members, as they are already subject to
identical provisions under Federal Communications Commission (``FCC'')
telemarketing regulations.\22\
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    \22\ See 47 CFR 64.1200(d); see also FINRA Rule 3230(d).

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Do-Not-Call Safe Harbors
    Proposed Rule 3.26(e) provides for certain exceptions to the
telemarketing restriction set forth in proposed Rule 3.26(a)(3), which
prohibits outbound telephone calls to persons on the FTC's national do-
not-call registry. First, proposed Rule 3.26(e)(1) provides that a
Member or associated person of a Member making outbound telephone calls
will not be liable for violating proposed Rule 3.26(a)(3) if:
    (1) The Member has an established business relationship with the
called person; however, a person's request to be placed on the Member's
firm-specific do-not-call list terminates the established business
relationship exception to the national do-not-call registry provision
for that Member even if the person continues to do business with the
Member;
    (2) The Member has obtained the person's prior express written
consent, which must be clearly evidenced by a signed, written agreement
(which may be obtained electronically under the E-Sign Act \23\)
between the person and the Member that states that the person agrees to
be contacted by the Member and includes the telephone number to which
the calls may be placed; or
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    \23\ 15 U.S.C. 7001 et seq.
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    (3) The Member or associated person of a Member making the call has
a personal relationship \24\ with the called person.
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    \24\ The term ``personal relationship'' means any family member,
friend, or acquaintance of the person making an outbound telephone
call. See proposed Rule 3.26(n)(18); see also FINRA Rule
3230(m)(18).
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    The proposed rule change is substantially similar to the FTC's
provision regarding an exception to the prohibition on making outbound
telephone calls to persons on the FTC's do-not-call registry.\25\ The
FTC provided a discussion of the provision when it was adopted pursuant
to the Prevention Act.\26\
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    \25\ See 16 CFR 310.4(b)(1)(iii)(B); see also FINRA Rule
3230(b).
    \26\ See Federal Trade Commission, Telemarketing Sales Rule, 68
FR 4580 (Jan. 29, 2003) at 4628; Federal Trade Commission,
Telemarketing Sales Rule, 60 FR 43842 (Aug. 23, 1995) at 43854.
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    Second, proposed Rule 3.26(e)(2) provides that a Member or
associated person of a Member making outbound telephone calls will not
be liable for violating proposed Rule 3.26(a)(3) if the Member or
associated person of a Member demonstrates that the violation is the
result of an error and that as part of the Member's routine business
practice:
    (1) The Member has established and implemented written procedures
to comply with Rule 3.26(a) and (b);
    (2) The Member has trained its personnel, and any entity assisting
in its compliance, in the procedures established pursuant to the
preceding clause;
    (3) The Member has maintained and recorded a list of telephone
numbers that it may not contact in compliance with Rule 3.26(d); and
    (4) The Member uses a process to prevent outbound telephone calls
to any telephone number on the Member's firm-specific do-not-call list
or the national do-not-call registry, employing a version of the
national do-not-call registry obtained from the FTC no more than 31
days prior to the date any call is made, and maintains records
documenting this process.
    The proposed rule change is substantially similar to the FTC's safe
harbor to the prohibition on making outbound telephone calls to persons
on a firm-specific do-not-call list or on the FTC's national do-not-
call registry.\27\ The FTC provided a discussion of the provision when
it was adopted pursuant to the Prevention Act.\28\
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    \27\ See 16 CFR 310.4(b)(3); see also FINRA Rule 3230(c).
    \28\ See Federal Trade Commission, Telemarketing Sales Rule, 68
FR 4580 (Jan. 29, 2003) at 4628; and Federal Trade Commission,
Telemarketing Sales Rule, 60 FR 43842 (Aug. 23, 1995) at 43855.
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Wireless Communications
    Proposed Rule 3.26(f) clarifies that the provisions set forth in
Rule 3.26 are applicable to Members and associated persons of Members
making outbound telephone calls to wireless telephone numbers.\29\
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    \29\ See also FINRA Rule 3230(e).
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Outsourcing Telemarketing
    Proposed Rule 3.26(g) states that if a Member uses another entity
to perform telemarketing services on its behalf, the Member remains
responsible for ensuring compliance with Rule 3.26. The proposed rule
change also provides that an entity or person to which a Member
outsources its telemarketing services must be appropriately registered
or licensed, where required.\30\
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    \30\ See also FINRA Rule 3230(f).
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Billing Information
    Proposed Rule 3.26(h) provides that, for any telemarketing
transaction, no Member or associated person of a Member may submit
billing information \31\ for payment without the express informed
consent of the customer. Proposed Rule 3.26(h) requires that each
Member or associated person of a Member must obtain the express
informed consent of the person to be charged and to be charged using
the identified account.
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    \31\ The term ``billing information'' means any data that
enables any person to access a customer's or donor's account, such
as a credit or debit card number, a brokerage, checking, or savings
account number, or a mortgage loan account number. See proposed Rule
3.26(n)(3).
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    If the telemarketing transaction involves preacquired account
information \32\ and a free-to-pay conversion \33\ feature, the Member
or associated person of a Member must:
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    \32\ The term ``preacquired account information'' means any
information that enables a Member or associated person of a Member
to cause a charge to be placed against a customer's or donor's
account without obtaining the account number directly from the
customer or donor during the telemarketing transaction pursuant to
which the account will be charged. See proposed Rule 3.26(n)(19).
    \33\ The term ``free-to-pay conversion'' means, in an offer or
agreement to sell or provide any goods or services, a provision
under which a customer receives a product or service for free for an
initial period and will incur an obligation to pay for the product
or service if he or she does not take affirmative action to cancel
before the end of that period. See proposed Rule 3.26(n)(13).
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    (1) Obtain from the customer, at a minimum, the last four digits of
the account number to be charged;
    (2) Obtain from the customer an express agreement to be charged and
to be charged using the identified account number; and
    (3) Make and maintain an audio recording of the entire
telemarketing transaction.
    For any other telemarketing transaction involving preacquired
account information, the Member or associated person of a Member must:
    (1) Identify the account to be charged with sufficient specificity
for the customer to understand what account will be charged; and
    (2) Obtain from the customer an express agreement to be charged and
to be charged using the identified account number.
    The proposed rule change is substantially similar to the FTC's
provision regarding the submission of billing information.\34\ The FTC
provided a discussion of the provision when it was adopted pursuant to
the Prevention Act.\35\
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    \34\ See 16 CFR 310.4(a)(7); see also FINRA Rule 3230(i).
    \35\ See Federal Trade Commission, Telemarketing Sales Rule, 68
FR 4580 (Jan. 29, 2003) at 4616.
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Caller Identification Information
    Proposed Rule 3.26(i) provides that Members that engage in
telemarketing must transmit caller identification information \36\ and
are explicitly prohibited from blocking caller identification
information. The

telephone number provided must permit any person to make a do-not-call
request during normal business hours. These provisions are similar to
the caller identification provision in the FTC rules.\37\ Inclusion of
these caller identification provisions in this proposed rule change
will not create any new obligations on Members, as they are already
subject to identical provisions under FCC telemarketing
regulations.\38\
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    \36\ Caller identification information includes the telephone
number and, when made available by the Member's telephone carrier,
the name of the Member.
    \37\ See 16 CFR 310.4(a)(8); see also FINRA Rule 3230(g).
    \38\ See 47 CFR 64.1601(e).
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Unencrypted Consumer Account Numbers
    Proposed Rule 3.26(j) prohibits a Member or associated person of a
Member from disclosing or receiving, for consideration, unencrypted
consumer account numbers for use in telemarketing. The proposed rule
change is substantially similar to the FTC's provision regarding
unencrypted consumer account numbers.\39\ The FTC provided a discussion
of the provision when it was adopted pursuant to the Prevention
Act.\40\ Additionally, the proposed rule change defines ``unencrypted''
as not only complete, visible account numbers, whether provided in
lists or singly, but also encrypted information with a key to its
decryption. The proposed definition is substantially similar to the
view taken by the FTC.\41\
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    \39\ See 16 CFR 310.4(a)(6); see also FINRA Rule 3230(h).
    \40\ See Federal Trade Commission, Telemarketing Sales Rule, 68
FR 4580 (Jan. 29, 2003) at 4615.
    \41\ See id. at 4616.
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Abandoned Calls
    Proposed Rule 3.26(k) prohibits a Member or associated person of a
Member from abandoning \42\ any outbound telephone call. The abandoned
calls prohibition is subject to a ``safe harbor'' under proposed Rule
3.26(k)(2) that requires a Member or associated person of a Member:
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    \42\ An outbound telephone call is ``abandoned'' if the called
person answers it and the call is not connected to a Member or
associated person of a Member within two seconds of the called
person's completed greeting.
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    (1) To employ technology that ensures abandonment of no more than
three percent of all calls answered by a person, measured over the
duration of a single calling campaign, if less than 30 days, or
separately over each successive 30-day period or portion thereof that
the campaign continues;
    (2) For each outbound telephone call placed, to allow the telephone
to ring for at least 15 seconds or four rings before disconnecting an
unanswered call;
    (3) Whenever a Member or associated person of a Member is not
available to speak with the person answering the outbound telephone
call within two seconds after the person's completed greeting, promptly
to play a prerecorded message stating the name and telephone number of
the Member or associated person of a Member on whose behalf the call
was placed; and
    (4) To maintain records documenting compliance with the ``safe
harbor.''
    The proposed rule change is substantially similar to the FTC's
provisions regarding abandoned calls.\43\ The FTC provided a discussion
of the provisions when they are adopted pursuant to the Prevention
Act.\44\
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    \43\ See 16 CFR 310.4(b)(1)(iv) and (b)(4); see also FINRA Rule
3230(j).
    \44\ See Federal Trade Commission, Telemarketing Sales Rule, 68
FR 4580 (Jan. 29, 2003) at 4641.
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Pre-recorded Messages
    Proposed Rule 3.26(l) prohibits a Member or associated person of a
Member from initiating any outbound telephone call that delivers a
prerecorded message without a person's express written agreement \45\
to receive such calls. The proposed rule change also requires that all
prerecorded outbound telephone calls provide specified opt-out
mechanisms so that a person can opt out of future calls. The
prohibition does not apply to a prerecorded message permitted for
compliance with the ``safe harbor'' for abandoned calls under proposed
Rule 3.26(k)(2). The proposed rule change is substantially similar to
the FTC's provisions regarding prerecorded messages.\46\ The FTC
provided a discussion of the provisions when they were adopted pursuant
to the Prevention Act.\47\
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    \45\ The express written agreement must: (a) Have been obtained
only after a clear and conspicuous disclosure that the purpose of
the agreement is to authorize the Member to place prerecorded calls
to such person; (b) have been obtained without requiring, directly
or indirectly, that the agreement be executed as a condition of
purchasing any good or service; (c) evidence the willingness of the
called person to receive calls that deliver prerecorded messages by
or on behalf of the Member; and (d) include the person's telephone
number and signature (which may be obtained electronically under the
E-Sign Act).
    \46\ See 16 CFR 310.4(b)(1)(v); see also FINRA Rule 3230(k).
    \47\ See Federal Trade Commission, Telemarketing Sales Rule, 73
FR 51164 (Aug. 29, 2008) at 51165.
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Credit Card Laundering
    Proposed Rule 3.26(m) prohibits credit card laundering, the
practice of depositing into the credit card system \48\ a sales draft
that is not the result of a credit card transaction between the
cardholder \49\ and the Member. Except as expressly permitted, the
proposed rule change prohibits a Member or associated person of a
Member from:
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    \48\ The term ``credit card system'' means any method or
procedure used to process credit card transactions involving credit
cards issued or licensed by the operator of that system. The term
``credit card'' means any card, plate, coupon book, or other credit
device existing for the purpose of obtaining money, property, labor,
or services on credit. The term ``credit'' means the right granted
by a creditor to a debtor to defer payment of debt or to incur debt
and defer its payment. See proposed Rule 3.26(n)(7), (8), and (10).
    \49\ The term ``cardholder'' means a person to whom a credit
card is issued or who is authorized to use a credit card on behalf
of or in addition to the person to whom the credit card is issued.
See proposed Rule 3.26(n)(6).
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    (1) Presenting to or depositing into the credit card system for
payment, a credit card sales draft \50\ generated by a telemarketing
transaction that is not the result of a telemarketing credit card
transaction between the cardholder and the Member;
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    \50\ The term ``credit card sales draft'' means any record or
evidence of a credit card transaction. See proposed Rule 3.26(n)(9).
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    (2) Employing, soliciting, or otherwise causing a merchant,\51\ or
an employee, representative or agent of the merchant to present to or
to deposit into the credit card system for payment, a credit card sales
draft generated by a telemarketing transaction that is not the result
of a telemarketing credit card transaction between the cardholder and
the Member; or
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    \51\ The term ``merchant'' means a person who is authorized
under a written contract with an acquirer to honor or accept credit
cards, or to transmit or process for payment credit card payments,
for the purchase of goods or services or a charitable contribution.
The term ``acquirer'' means a business organization, financial
institution, or an agent of a business organization or financial
institution that has authority from an organization that operates or
licenses a credit card system to authorize merchants to accept,
transmit, or process payment by credit card through the credit card
system for money, goods or services, or anything else of value. See
proposed Rule 3.26(n)(2) and (14).
---------------------------------------------------------------------------

    (3) Obtaining access to the credit card system through the use of a
business relationship or an affiliation with a merchant, when such
access is not authorized by the merchant agreement \52\ or the
applicable credit card system.
---------------------------------------------------------------------------

    \52\ The term ``merchant agreement'' means a written contract
between a merchant and an acquirer to honor or accept credit cards,
or to transmit or process for payment credit card payments, for the
purchase of goods or services or a charitable contribution. See
proposed Rule 3.26(n)(15).
---------------------------------------------------------------------------

    The proposed rule change is substantially similar to the FTC's
provision regarding credit card laundering.\53\ The FTC provided a
discussion of the provisions when they

were adopted pursuant to the Prevention Act.\54\
---------------------------------------------------------------------------

    \53\ See 16 CFR 310.3(c); see also FINRA Rule 3230(l).
    \54\ See Federal Trade Commission, Telemarketing Sales Rule, 60
FR 43842 (Aug. 23, 1995) at 43852.
---------------------------------------------------------------------------

Definitions
    Proposed Rule 3.26(n) adopts the following definitions, which are
substantially similar to the FTC's definitions of these terms:
``Acquirer,'' ``billing information,'' ``caller identification
service,'' ``cardholder,'' ``charitable contribution,'' ``credit,''
``credit card,'' ``credit card sales draft,'' ``credit card system,''
``customer,'' ``donor,'' ``established business relationship,'' ``free-
to-pay conversion,'' ``merchant,'' ``merchant agreement,'' ``outbound
telephone call,'' ``person,'' ``preacquired account information,''
``telemarketer,'' and ``telemarketing.'' \55\ The FTC provided a
discussion of each definition when they were adopted pursuant to the
Prevention Act.\56\
---------------------------------------------------------------------------

    \55\ See proposed Rule 3.26(n)(2), (3), (5), (6), (7), (8), (9),
(10), (11), (12), (13), (14), (15), (16), (17), (19), (20), and
(21); and 16 CFR 310.2(a), (c), (d), (e), (f), (h), (i), (j), (k),
(l), (n), (o), (p), (s), (t), (v), (w), (x), (cc), and (dd); see
also FINRA Rule 3230(m)(2), (3), (5), (6), (7), (8), (9), (10),
(11), (12), (13), (14), (15), (16), (17), (19), and (20). The
proposed rule change also adopts definitions of ``account
activity,'' ``broker-dealer of record,'' and ``personal
relationship'' that are substantially similar FINRA's definitions of
these terms. See proposed Rule 3.26(n)(1), (4), and (18) and FINRA
Rule 3230(m)(1), (4), and (18); see also 47 CFR 64.1200(f)(14)
(FCC's definition of ``personal relationship'').
    \56\ See Federal Trade Commission, Telemarketing Sales Rule, 60
FR 43842 (Aug. 23, 1995) at 43843; and Federal Trade Commission,
Telemarketing Sales Rule, 68 FR 4580 (Jan. 29, 2003) at 4587.
---------------------------------------------------------------------------

State and Federal Laws
    Proposed Rule 3.26, Interpretation and Policy .01 \57\ reminds
Members and associated persons of Members that engage in telemarketing
that they also are subject to the requirements of relevant state and
federal laws and rules, including the Prevention Act, the Telephone
Consumer Protection Act of 1991,\58\ and the rules of the FCC relating
to telemarketing practices and the rights of telephone consumers.\59\
---------------------------------------------------------------------------

    \57\ See also FINRA Rule 3230, Supplementary Material .01,
Compliance with Other Requirements.
    \58\ See 47 U.S.C. 227.
    \59\ See 47 CFR 64.1200.
---------------------------------------------------------------------------

Announcement in Regulatory Circular
    The Exchange will announce the implementation date of the proposed
rule change in a Regulatory Notice to be published no later than 90
days following the effective date. The implementation date will be no
later than 180 days following the effective date.
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.\60\ Specifically, the Exchange believes the proposed rule change
is consistent with the Section 6(b)(5) \61\ requirements that the rules
of an exchange be designed to promote just and equitable principles of
trade, to prevent fraudulent and manipulative acts, to remove
impediments to and to perfect the mechanism for a free and open market
and a national market system, and, in general, to protect investors and
the public interest.
---------------------------------------------------------------------------

    \60\ 15 U.S.C. 78f(b).
    \61\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    In particular, the proposed rule change will prevent fraudulent and
manipulative acts and protect investors and the public interest by
continuing to prohibit Members from engaging in deceptive and other
abusive telemarketing acts or practices. Additionally, the proposed
rule change removes impediments to and perfects the mechanism for a
free and open market and a national market system, because it provides
consistency among telemarketing rules of national securities exchanges
and FINRA, therefore making it easier for investors to comply with
these rules.

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.

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

    The Exchange has neither solicited nor received written comments on
the proposed rule change.

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

    The proposed rule change is filed for immediate effectiveness
pursuant to Section 19(b)(3)(A) of Act \62\ and Rule 19b-4(f)(6) \63\
thereunder. The Exchange designates that the proposed rule change
effects a change that (i) does not significantly affect the protection
of investors or the public interest; (ii) does not impose any
significant burden on competition; and (iii) by its terms, does not
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate if consistent with the
protection of investors and the public interest. Additionally, the
Exchange has given the Commission written notice of its intent to file
the proposed rule change, along with a brief description and text of
the proposed rule change, at least five business days prior to the date
of filing of the proposed rule change. The proposed rule change is
substantially similar in all material respects to FTC rules and FINRA
Rule 3230, which the Commission recently approved.\64\
---------------------------------------------------------------------------

    \62\ 15 U.S.C. 78s(b)(3)(A).
    \63\ 17 CFR 240.19b-4(f)(6).
    \64\ See supra note 3.
---------------------------------------------------------------------------

    For the foregoing reasons, this rule filing qualifies as a ``non-
controversial'' rule change under Rule 19b-4(f)(6), which renders the
proposed rule change effective upon filing with the Commission. The
Exchange has requested that the Commission waive the 30-day operative
delay period after which a proposed rule change under Rule 19b-4(f)(6)
becomes effective. The Commission believes that waiving the 30-day
operative delay is consistent with the protection of investors and the
public interest because such waiver will afford Exchange members the
benefit of the proposal--the prohibition of deceptive and other abusive
telemarketing acts or practices--without unnecessary delay. Such waiver
will also allow the Exchange to comply with the Commission's directive
and implement uniform telemarketing rules across self-regulatory
organizations, creating consistency among these rules for investors, as
soon as possible. For these reasons, the Commission designates the
proposed rule change as operative under upon filing.\65\
---------------------------------------------------------------------------

    \65\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of this 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.

III. 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 No. SR-EDGX-2012-15 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-EDGX-2012-15. 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-EDGX-2012-15 and should be
submitted by May 24, 2012.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\66\
---------------------------------------------------------------------------

    \66\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-10643 Filed 5-2-12; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 85, Number 157 (Thursday, August 13, 2020)]
[Notices]
[Pages 49416-49417]
[FR Doc No: 2020-17708]

=======================================================================
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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

[Docket No. FMCSA-2020-0169]

Parts and Accessories Necessary for Safe Operation; Application
for an Exemption From J. J. Keller & Associates, Inc.

AGENCY: Federal Motor Carrier Safety Administration (FMCSA),
Transportation (DOT).

ACTION: Notice of application for exemption; request for comments.

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

SUMMARY: The Federal Motor Carrier Safety Administration (FMCSA)
requests public comment on an application for exemption from J. J.
Keller & Associates, Inc. (J. J. Keller) to allow its Advanced Driver
Assistance System (ADAS) cameras to be mounted lower in the windshield
on commercial motor vehicles than is currently permitted.

DATES: Comments must be received on or before September 14, 2020.

ADDRESSES: You may submit comments bearing the Federal Docket
Management System (FDMS) Docket ID FMCSA-2020-0112 using any of the
following methods:
     Website: http://www.regulations.gov. Follow the
instructions for submitting comments on the Federal electronic docket
site.
     Fax: 1-202-493-2251.
     Mail: Send comments to Docket Operations, M-30; U.S.
Department of Transportation, 1200 New Jersey Avenue SE, Room W12-140,
West Building Ground Floor, Washington, DC 20590-0001.
     Hand Delivery of Courier: Bring comments to Docket
Operations in Room W12-140 of the West Building Ground Floor, U.S.
Department of Transportation, 1200 New Jersey Avenue SE, Washington,
DC, between 9 a.m. and 5 p.m. e.t., Monday-Friday, except Federal
holidays.
    Instructions: All submissions must include the Agency name and
docket number for this notice. For detailed instructions on submitting
comments and additional information on the exemption process, see the
``Public Participation'' heading below. Note that all comments received
will be posted without change to http://www.regulations.gov, including
any personal information provided. Please see the ``Privacy Act''
heading for further information.
    Docket: For access to the docket to read background documents or
comments received, go to http://www.regulations.gov or to Docket
Operations in Room W12-140, U.S. Department of Transportation, West
Building Ground Floor, 1200 New Jersey Avenue SE, Washington, DC,
between 9 a.m. and 5 p.m., Monday through Friday, except Federal
holidays. To be sure someone is there to help you, please call (202)
366-9317 or<PHONE_NUMBER> before visiting Docket Operations.
    Privacy Act: In accordance with 5 U.S.C. 553(c), DOT solicits
comments from the public to better inform its rulemaking process. DOT
posts these comments, without edit, including any personal information
the commenter provides, to www.regulations.gov, as described in the
system of records notice (DOT/ALL-14 FDMS), which can be reviewed at
www.dot.gov/privacy.
    Public participation: The http://www.regulations.gov website is
generally available 24 hours each day, 365 days each year. You may find
electronic submission and retrieval help and guidelines under the
``help'' section of the http://www.regulations.gov website as well as
the DOT's http://docketsinfo.dot.gov website. If you would like
notification that we received your comments, please include a self-
addressed, stamped envelope or postcard or print the acknowledgment
page that appears after submitting comments online.

FOR FURTHER INFORMATION CONTACT: Mr. Luke W. Loy, Vehicle and Roadside
Operations Division, Office of Carrier, Driver, and Vehicle Safety, MC-
PSV,<PHONE_NUMBER>, Federal Motor Carrier Safety Administration, 1200
New Jersey Avenue SE, Washington, DC 20590-0001.

SUPPLEMENTARY INFORMATION:

I. Public Participation and Request for Comments

    FMCSA encourages you to participate by submitting comments and
related materials.

Submitting Comments

    If you submit a comment, please include the docket number for this
notice (FMCSA-2020-0169), indicate the specific section of this
document to which the comment applies, and provide a reason for
suggestions or recommendations. You may submit your comments and
material online or by fax, mail, or hand delivery, but please use only
one of these means. FMCSA recommends that you include your name and a
mailing address, an email address, or a phone number in the body of
your document so the Agency can contact you if it has questions
regarding your submission.
    To submit your comments online, go to www.regulations.gov and put
the docket number, ``FMCSA-2020-0169'' in the ``Keyword'' box, and
click ``Search.'' When the new screen appears, click on ``Comment
Now!'' button and type your comment into the text box in the following
screen. Choose whether you are submitting your comment as an individual
or on behalf of a third party and then submit. If you submit your
comments by mail or hand delivery, submit them in an unbound format, no
larger than 8\1/2\ by 11 inches, suitable for copying and electronic
filing. If you submit comments by mail and would like to know that they
reached the facility, please enclose a stamped, self-addressed postcard
or envelope. FMCSA will consider all comments and material received
during the comment period and may grant or not grant this application
based on your comments.

II. Legal Basis

    FMCSA has authority under 49 U.S.C. 31315(b) to grant exemptions
from certain parts of the Federal Motor Carrier Safety Regulations
(FMCSRs). FMCSA must publish a notice of each exemption request in the
Federal

Register (49 CFR 381.315(a)). The Agency must provide the public an
opportunity to inspect the information relevant to the application,
including any safety analyses that have been conducted. The Agency must
also provide an opportunity for public comment on the request. The
Agency reviews the safety analyses and the public comments and
determines whether granting the exemption would likely achieve a level
of safety equivalent to or greater than the level that would be
achieved by the current regulation (49 CFR 381.305). The decision of
the Agency must be published in the Federal Register (49 CFR
381.315(b)). If the Agency denies the request, it must state the reason
for doing so. If the decision is to grant the exemption, the notice
must specify the person or class of persons receiving the exemption and
the regulatory provision or provisions from which an exemption is
granted. The notice must specify the effective period of the exemption
(up to 5 years) and explain the terms and conditions of the exemption.
The exemption may be renewed (49 CFR 381.315(c) and 49 CFR 381.300(b)).

III. J. J. Keller's Application for Exemption

    The Federal Motor Carrier Safety Regulations require devices
meeting the definition of ``vehicle safety technology,'' including J.
J. Keller's ADAS cameras, to be mounted (1) not more than 4 inches
below the upper edge of the area swept by the windshield wipers, or (2)
not more than 7 inches above the lower edge of the area swept by the
windshield wipers, and outside the driver's sight lines to the road and
highway signs and signals. J. J. Keller has applied for an exemption
from 49 CFR 393.60(e)(1) to allow its ADAS cameras to be mounted lower
in the windshield than is currently permitted. A copy of the
application is included in the docket referenced at the beginning of
this notice.

IV. Request for Comments

    In accordance with 49 U.S.C. 31315(b)(6), FMCSA requests public
comment from all interested persons on J. J. Keller's application for
an exemption from 49 CFR 393.60(e)(1). All comments received before the
close of business on the comment closing date indicated at the
beginning of this notice will be considered and will be available for
examination in the docket at the location listed under the Addresses
section of this notice. Comments received after the comment closing
date will be filed in the public docket and will be considered to the
extent practicable. In addition to late comments, FMCSA will also
continue to file, in the public docket, relevant information that
becomes available after the comment closing date. Interested persons
should continue to examine the public docket for new material.

Larry W. Minor,
Associate Administrator for Policy.
[FR Doc. 2020-17708 Filed 8-12-20; 8:45 am]
BILLING CODE 4910-EX-P


[Federal Register Volume 84, Number 74 (Wednesday, April 17, 2019)]
[Notices]
[Pages 16114-16115]
[FR Doc No: 2019-07629]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-85606; File No. SR-CboeEDGX-2019-015]

Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating To Amending the Fee Schedule Applicable to Members and Non-
Members of the Exchange Pursuant to EDGX Rules 15.1(a) and (c)

April 11, 2019.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on March 29, 2019, Cboe EDGX Exchange, Inc. (the ``Exchange'' or
``EDGX'') filed with the Securities and Exchange Commission
(``Commission'') a proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    Cboe EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX'') is filing
with the Securities and Exchange Commission (``Commission'') a proposed
rule change to amend the fee schedule applicable to Members and non-
Members \3\ of the Exchange pursuant to EDGX Rules 15.1(a) and (c). The
text of the proposed rule change is attached as Exhibit 5 [sic].
---------------------------------------------------------------------------

    \3\ A 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 also available on the
Exchange's website (http://markets.cboe.com/us/options/regulation/rule_filings/edgx/), 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 (``EDGX Equities'') to introduce a ``Non-
Displayed Add Volume Tier'' under Footnote 1, effective April 1, 2019.
Non-Displayed Add Volume Tier
    Currently, with respect to the Exchange's equities trading
platform, the Exchange determines the liquidity adding rebate that it
will provide to Members using the Exchange's tiered pricing structure.
The EDGX Equities fee schedule currently contains eight Add Volume
Tiers that provide enhanced rebates, ranging from of $0.0025 to $0.0033
per share, for displayed orders that add liquidity (i.e., yielding fee
codes B,\4\ V,\5\ Y,\6\ 3 \7\ and 4.\8\) The Exchange proposes to adopt
a new Add Volume Tier under Footnote 1 that applies to non-displayed
orders that add liquidity (i.e., orders that yield fee codes DM \9\, HA
\10\, MM \11\, and RP \12\) called the Non-Displayed Add Volume Tier.
As proposed, under the Non-Displayed Volume Tier, a Member would
receive a rebate of $0.0026 per share if that Member adds an ADV \13\
greater or equal to 0.08% of the TCV \14\ as Non-Displayed orders that
yield fee cods DM,

HA, HI,\15\ MM or RP. The Exchange believes the proposed new tier will
encourage Members to increase their liquidity on the exchange. The
Exchange further notes that other Exchanges have similar non-displayed
add volume tiers.\16\
---------------------------------------------------------------------------

    \4\ ``B'' is associated with displayed orders that add liquidity
on EDGX for Tape B.
    \5\ ``V'' is associated with displayed orders that add liquidity
on EDGX for Tape A.
    \6\ ``Y'' is associated with displayed orders that add liquidity
on EDGX for Tape C.
    \7\ ``3'' is associated with displayed orders that add liquidity
on EDGX for Tape A or C during the post-market or pre-market trading
sessions.
    \8\ ``4'' is associated with displayed orders that add liquidity
on EDGX for Tape B during the post-market or pre-market trading
sessions.
    \9\ ``DM'' is associated with non-displayed orders that add
liquidity using MidPoint Discretionary order within discretionary
range.
    \10\ ``HA'' is associated with non-displayed orders that add
liquidity.
    \11\ ``MM'' is associated with non-displayed orders that add
liquidity using Mid-Point Peg.
    \12\ ``RP'' is associated with non-displayed orders that add
liquidity using Supplemental Peg.
    \13\ ``ADV'' means average daily volume calculated as the number
of shares added to, removed from, or routed by, the Exchange, or any
combination or subset thereof, per day. ADV is calculated on a
monthly basis.
    \14\ ``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.
    \15\ Fee code HI is appended to non-displayed orders that
receive price improvement and add liquidity. Id.
    \16\ See e.g., Cboe BZX U.S. Equities Exchange Fee Schedule,
Footnote 1.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6 of the Act,\17\ in general, and furthers the
requirements of Section 6(b)(4),\18\ in particular, as it is designed
to provide for the equitable allocation of reasonable dues, fees and
other charges among its [sic]
---------------------------------------------------------------------------

    \17\ 15 U.S.C. 78f.
    \18\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    In particular, the Exchange notes that 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 (i) the value of an exchange's market
quality; (ii) associated with higher levels of market activity, such as
higher levels of liquidity provision and/or growth patterns; and (iii)
introduction of higher volumes of orders into the price and volume
discovery processes. The Exchange believes the proposal to introduce a
new Non-Displayed Add Volume Tier under footnote 1 is reasonable
because it provides Members an additional opportunity to receive an
enhanced rate for orders that add liquidity and is a reasonable means
to encourage Members to increase their liquidity on the Exchange.
Deepening the Exchange's liquidity pool benefits investors by
encouraging more price competition and providing additional
opportunities to trade. The Exchange further believes the proposed
threshold is commensurate with the proposed enhanced rebate and that it
will encourage members to add increased liquidity to EDGX each month.
The Exchange also notes that others Exchange [sic] have similar add
volume tiers for non-displayed orders.\19\ Lastly, the Exchange
believes that the proposed Non-Displayed Add Volume Tier is not
unfairly discriminatory as it applies uniformly to all Members.
---------------------------------------------------------------------------

    \19\ See Cboe BZX U.S. Equities Exchange Fee Schedule, Footnote
1.
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed rule change would
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. Rather, the
proposed change is designed to enhance competition by attracting
additional liquidity and increasing the competitiveness of the
Exchange. The proposed rebate tier would apply to all members uniformly
based. 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. The
proposed rule change reflects a competitive pricing structure designed
to encourage market participants to direct their order flow to the
Exchange.

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) of the Act \20\ and paragraph (f) of Rule 19b-4 \21\
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.
---------------------------------------------------------------------------

    \20\ 15 U.S.C. 78s(b)(3)(A).
    \21\ 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-CboeEDGX-2019-015 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-CboeEDGX-2019-015. 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 (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-CboeEDGX-2019-015 and should be
submitted on or before May 8, 2019.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
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    \22\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Secretary.
[FR Doc. 2019-07629 Filed 4-16-19; 8:45 am]
 BILLING CODE 8011-01-P