[Federal Register Volume 84, Number 172 (Thursday, September 5, 2019)]
[Notices]
[Pages 46765-46767]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-19107]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-86811; File No. SR-CboeBZX-2019-079]


Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To 
Introduce a New Data Product on Its Equity Options Platform (``BZX 
Options'') To Be Known As Open-Close Data

August 29, 2019.
    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 August 21, 2019, Cboe BZX Exchange, Inc. (the ``Exchange'' or 
``BZX'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been prepared by the Exchange. The Exchange 
filed the proposal as a ``non-controversial'' proposed rule change 
pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-
4(f)(6) thereunder.\4\ The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Cboe BZX Exchange, Inc. (the ``Exchange'' or ``BZX'') is filing 
with the Securities and Exchange Commission

[[Page 46766]]

(``Commission'') a proposed rule change to introduce a new data product 
on its equity options platform (``BZX Options'') to be known as Open-
Close Data. The text of the proposed rule change is provided in Exhibit 
5.
    The text of the proposed rule change is also available on the 
Exchange's website (http://markets.cboe.com/us/equities/regulation/rule_filings/bzx/), at the Exchange's Office of the Secretary, and at 
the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to introduce a new data product on BZX 
Options to be known as Open-Close Data, which will be available for 
purchase to BZX Options Members and Non-Members.\5\ Cboe LiveVol, LLC 
(``LiveVol''), a wholly owned subsidiary of the Exchange's parent 
company, Cboe Global Markets, Inc., will make the Open-Close Data 
available for purchase to Members and Non-Members on the LiveVol 
DataShop website (datashop.cboe.com). The Exchange also proposes to 
amend Exchange Rule 21.15(b) to add a description of the Open-Close 
Data product.
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    \5\ The Exchange intends to submit a rule filing to establish 
fees for Open-Close Data.
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    A description of each market data product offered by the Exchange 
is described in Exchange Rule 21.15(b). The Exchange proposes to amend 
Rule 21.15(b) to introduce and add a description of the Open-Close Data 
product under proposed new subparagraph (5). The Exchange proposes to 
describe the Open-Close Data as ``a data product that summarizes volume 
(contracts traded on BZX Options) by origin (customer and firm orders), 
original order size and the opening or closing position of the order.'' 
The volume data is also summarized by day and series (symbol, 
expiration date, strike price, call or put). The Open-Close Data would 
be available for purchase to both BZX Members and Non-Members on a 
subscription and ad-hoc basis. The Exchange notes that its affiliate, 
Cboe Exchange, Inc. (``Cboe Options''), as well as other exchanges, 
offer a similar data product.\6\
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    \6\ See Securities Exchange Act Release No. 55062 (January 8, 
2007), 72 FR 2048 (January 17, 2007) (approving SR-CBOE-2006-88); 
See also Securities Exchange Act Release No. 56254 (August 15, 
2007), 72 FR 47104 (August 22, 2007) (SR-ISE-2007-70).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\7\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act,\8\ in particular, in that it 
is designed to prevent fraudulent and manipulative acts and practices, 
to promote just and equitable principles of trade, to remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system, and to protect investors and the public 
interest, and that it is not designed to permit unfair discrimination 
among customers, brokers, or dealers.
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    \7\ 15 U.S.C. 78f.
    \8\ 15 U.S.C. 78f(b)(5).
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    In adopting Regulation NMS, the Commission granted self-regulatory 
organizations (``SROs'') and broker-dealers increased authority and 
flexibility to offer new and unique market data to the public. It was 
believed that this authority would expand the amount of data available 
to consumers, and also spur innovation and competition for the 
provision of market data. The Exchange believes that the proposed Open-
Close Data would further broaden the availability of U.S. option market 
data to investors consistent with the principles of Regulation NMS. The 
proposal also promotes increased transparency through the dissemination 
of Open-Close Data. The proposed rule change would benefit investors by 
providing access to the Open-Close Data, which may promote better 
informed trading. Moreover, the Exchange's affiliate Cboe Options, 
along with other exchanges, also offer a similar data product.\9\
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    \9\ See Securities Exchange Act Release No. 55062 (January 8, 
2007), 72 FR 2048 (January 17, 2007) (approving SR-CBOE-2006-088); 
See also Securities Exchange Act Release No. 56254 (August 15, 
2007), 72 FR 47104 (August 22, 2007) (SR-ISE-2007-70).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. Rather, the 
Exchange believes that the proposal will promote competition by 
permitting the Exchange to offer a data product similar to those 
offered by other competitor options exchanges.\10\ The Exchange is 
proposing to introduce Open-Close Data for BZX Options in order to keep 
pace with changes in the industry and evolving customer needs, and 
believes this proposed rule change would contribute to robust 
competition among national securities exchanges. As noted, at least 
three other U.S. options exchanges offer a market data product that is 
substantially similar to the Open-Close Data. As a result, the Exchange 
believes this proposed rule change permits fair competition among 
national securities exchanges. Therefore, the Exchange does not believe 
the proposed rule change will result in any burden on competition that 
is not necessary or appropriate in furtherance of the purposes of the 
Act.
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    \10\ Id.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

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

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

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \11\ and Rule 19b-
4(f)(6) thereunder.\12\
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires a self-regulatory organization to give 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, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \13\ normally does not become operative for 30 days after the date 
of its

[[Page 46767]]

filing. However, Rule 19b-4(f)(6)(iii) \14\ permits the Commission to 
designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay so that the Exchange 
may implement the proposed rule change on September 1, 2019, the 
anticipated date upon which the Exchange expects to offer Open-Close 
Data. The Exchange believes waiver of the operative delay is consistent 
with the protection of investors and the public interest because the 
proposed rule change presents no new or novel issues, as other 
exchanges currently offer a similar data product.\15\ For this reason, 
the Commission believes that waiver of the 30-day operative delay is 
consistent with the protection of investors and the public interest. 
Therefore, the Commission hereby waives the operative delay and 
designates the proposal as operative upon filing.\16\
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    \13\ 17 CFR 240.19b-4(f)(6).
    \14\ 17 CFR 240.19b-4(f)(6)(iii).
    \15\ See supra note 6.
    \16\ For purposes only of waiving the 30-day operative delay, 
the Commission also has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is 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 shall institute proceedings to 
determine whether the proposed rule change should be approved or 
disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-CboeBZX-2019-079 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to File Number SR-CboeBZX-2019-079. 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-CboeBZX-2019-079 and should be submitted 
on or before September 26, 2019.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-19107 Filed 9-4-19; 8:45 am]
BILLING CODE 8011-01-P