[Federal Register Volume 83, Number 246 (Wednesday, December 26, 2018)]
[Notices]
[Pages 66329-66330]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-27820]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-84845; File No. SR-BYX-2012-019]
Self-Regulatory Organization; Cboe BYX Exchange, Inc.; Order
Granting an Extension to Limited Exemption From Rule 612(c) of
Regulation NMS in Connection With the Exchange's Retail Price
Improvement Program
December 18, 2018.
On November 27, 2012, the Securities and Exchange Commission
(``Commission'') issued an order pursuant to its authority under Rule
612(c) of Regulation NMS (``Sub-Penny Rule) \1\ that granted the BATS
BYX-Exchange, Inc. (k/n/a ``Cboe BYX'' or the ``Exchange'') a limited
exemption from the Sub-Penny Rule in connection with the operation of
the Exchange's Retail Price Improvement (``RPI'') Program (the
``Program''). The limited exemption was granted concurrently with the
Commission's approval of the Exchange's proposal to adopt the Program
for a one-year pilot term.\2\ The exemption was granted coterminous
with the effectiveness of the pilot Program and has been extended six
times; \3\ both the pilot Program and
[[Page 66330]]
exemption are scheduled to expire on December 31, 2018.
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\1\ 17 CFR 242.612(c).
\2\ See Securities Exchange Act Release No. 68303 (November 27,
2012), 77 FR 71652 (December 3, 2012) (``RPI Approval Order'') (SR-
BXY-2012-019).
\3\ See Securities Exchange Act Release Nos. 71249 (January 7,
2014), 79 FR 2229 (January 13, 2012) (SR-BYX-2014-001) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change to
Extend the Pilot Period for the RPI); 71250 (January 7, 2014), 79 FR
2234 (January 13, 2012) (Order Granting an Extension to Limited
Exemption From Rule 612(c) of Regulation NMS in Connection With the
Exchange's Retail Price Improvement Program); 74111 (January 22,
2015), 80 FR 4598 (January 28, 2015) (SR-BYX-2015-05) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change to
Extend the Pilot Period for the RPI); and 74115 (January 22, 2015),
80 FR 4324 (January 27, 2015) (Order Granting an Extension to
Limited Exemption From Rule 612(c) of Regulation NMS in Connection
With the Exchange's Retail Price Improvement Program); 76965
(January 22, 2016), 81 FR 4682 (January 27, 2016) (SR-BYX-2016-01)
(Notice of Filing and Immediate Effectiveness of a Proposed Rule
Change to Extend the Pilot Period for the RPI); 76953 (January 21,
2016), 81 FR 4728 (January 27, 2016) (Order Granting an Extension to
Limited Exemption From Rule 612(c) of Regulation NMS in Connection
With the Exchange's Retail Price Improvement Program); 78180 (June
28, 2016), 81 FR 43306 (July 1, 2016) (SR-BYX-2016-15) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change to
Extend the Pilot Period for the RPI); 78178 (July 5, 2016), 81 FR
43689 (July 5, 2016) (Order Granting an Extension to Limited
Exemption From Rule 612(c) of Regulation NMS in Connection With the
Exchange's Retail Price Improvement Program); 81368 (August 10,
2017), 82 FR 38960 (August 16, 2017) (SR-BatsBYX-2017-18) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change to
Extend the Pilot Period for the RPI); 81364 (August 8, 2018), 82 FR
38733 (August 15, 2017) (Order Granting an Extension to Limited
Exemption From Rule 612(c) of Regulation NMS in Connection With the
Exchange's Retail Price Improvement Program); 83758 (August 1,
2018), 83 FR 38757 (August 7, 2018) (SR-CboeBYX-2018-015) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change to
Extend the Pilot Period for the RPI); 83756 (August 1, 2018), 83 FR
38748 (August 7, 2018) (Order Granting an Extension to Limited
Exemption From Rule 612(c) of Regulation NMS in Connection With the
Exchange's Retail Price Improvement Program). The Exchange has filed
to make the pilot program permanent. See Securities Exchange Act
Release No. 83831 (August 13, 2018), 83 FR 41128 (August 17, 2018)
(SR-CboeBYX-2018-014).
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The Exchange now seeks to extend the exemption until June 30,
2019.\4\ The Exchange's request was made in conjunction with an
immediately effective filing that extends the operation of the Program
until June 30, 2019.\5\ In its request to extend the exemption, the
Exchange notes that the Program was implemented gradually over time.
Accordingly, the Exchange has asked for additional time to allow itself
and the Commission to analyze data concerning the Program, which the
Exchange committed to provide to the Commission, as well as to allow
additional opportunities for greater participation in the Program.\6\
For this reason and the reasons stated in the Order originally granting
the limited exemption, the Commission finds that extending the
exemption, pursuant to its authority under Rule 612(c) of Regulation
NMS, is appropriate in the public interest and consistent with the
protection of investors.
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\4\ See letter from Anders Franzon, Senior Vice President and
Deputy General Counsel, Cboe BYX, to Brent J. Fields, Secretary,
Commission, dated December 11, 2018.
\5\ See SR-CboeBYX-2018-025.
\6\ See RPI Approval Order, supra note 2, at 77 FR at 71657.
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Therefore, it is hereby ordered, that, pursuant to Rule 612(c) of
Regulation NMS, the Exchange is granted a limited exemption from Rule
612(c) of Regulation NMS that allows it to accept and rank orders
priced equal to or greater than $1.00 per share in increments of
$0.001, in connection with the operation of its RPI Program.
The limited and temporary exemption extended by this Order is
subject to modification or revocation if at any time the Commission
determines that such action is necessary or appropriate in furtherance
of the purposes of the Securities Exchange Act of 1934. Responsibility
for compliance with any applicable provisions of the federal securities
laws must rest with the persons relying on the exemptions that are the
subject of this Order.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(83).
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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2018-27820 Filed 12-21-18; 8:45 am]
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