[Federal Register Volume 85, Number 32 (Tuesday, February 18, 2020)]
[Notices]
[Pages 8921-8923]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-03090]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-88160; File No. SR-CboeBYX-2020-006]


Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
the BYX Fee Schedule To Correct an Inadvertent Drafting Error 
Introduced in a Previous Rule Filing

February 11, 2020.
    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 January 31, 2020, Cboe BYX Exchange, Inc. (the ``Exchange'' or 
``BYX'') filed with the Securities and Exchange Commission (the 
``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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[[Page 8922]]

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

    Cboe BYX Exchange (the ``Exchange'' or ``BYX'') is filing with the 
Securities and Exchange Commission (``Commission'') a proposed rule 
change to amend the BYX Fee Schedule to correct an inadvertent drafting 
error introduced in a previous rule filing. 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/byx/), 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 purpose of the proposed rule change is to amend the BYX Fee 
Schedule to correct an inadvertent drafting error introduced in a 
previous rule filing that adopted the definition of ``Step-Up Add 
TCV''.
    On January 2, 2020, the Exchange filed a proposed rule change to 
replace the Non-Displayed Liquidity Incentives with Step-Up Tiers.\3\ 
The purpose of that filing was to offer Step-Up Tiers that would 
provide Members an opportunity to receive a discounted rate from the 
standard fee assessment for displayed liquidity adding orders that 
yield fee codes ``B'',\4\ ``V'',\5\ or ``Y''.\6\ Specifically, to 
qualify for Tier 1, a Member must have a ``Step-Up Add TCV'' from 
December 2019 of greater than or equal to 0.05%. Accordingly, the 
Exchange also adopted a definition of ``Step-Up Add TCV'' to the Fee 
Schedule which would mean add ADV as a percentage of TCV in the 
relevant baseline month subtracted from current add ADV as a percentage 
of TCV. In its adoption of the definition of ``Step-Up Add TCV'', the 
Exchange inadvertently referenced the terms ``add ADV'' rather than 
``ADAV''.\7\ Therefore, the Exchange now proposes to amend the 
definition of Step-Up Add TCV to reference the term ADAV rather than 
add ADV. The Exchange notes that the proposed definition is 
substantially consistent with the definition in the Fee Schedules of 
the Exchange's affiliated exchanges.\8\
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    \3\ See Securities Exchange Act Release No. 34-87960 (January 
14, 2020) 85 FR 3437 (January 21, 2020) (SR-CboeBYX-2020-0001[sic]).
    \4\ ``B'' is appended to displayed orders that add liquidity to 
BYX(Tape B).
    \5\ ``V'' is appended to displayed orders that add liquidity to 
BYX (Tape A).
    \6\ ``Y'' is appended to displayed order that add liquidity to 
BYX (Tape C).
    \7\ ``ADAV'' means average daily volume calculated as the number 
of shares added per day and ``ADV'' means average daily volume 
calculated as the number of shares added or removed, combined, per 
day. ADAV and ADV are calculated on a monthly basis.
    \8\ See Cboe BZX U.S. Equities Exchange Fee Schedule, 
Definitions; Cboe EDGX U.S. Equities Exchange Fee Schedule, 
Definitions.
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2. Statutory Basis

    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 of the Act,\9\ in general, and 
furthers the objectives of Section 6(b)(4),\10\ in particular, as it is 
designed to provide for the equitable allocation of reasonable dues, 
fees and other charges among its Members and issuers and other persons 
using its facilities. Specifically, the Exchange believes that the 
proposed rule change is reasonable, equitable, and not unfairly 
discriminatory as it does not change the fees or rebates assessed by 
the Exchange, but rather corrects an inadvertent error to a definition 
noted in the Fee Schedule. The Exchange believes that amending the 
terms ``add ADV'' to ``ADAV'' in the definition of ``Step-Up Add TCV'' 
would reduce confusion around the Exchange's charges and ensure that 
these fees are appropriately referenced on the Fee Schedule.
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    \9\ 15 U.S.C. 78f.
    \10\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on intramarket or intermarket competition that is not 
necessary or appropriate in furtherance of the purposes of the Act. 
Rather, the proposed rule change is designed to reduce potential 
confusion to the definition of ``Step-Up Add TCV'' referenced in the 
Fee Schedule by amending the terms ``add ADV'' to ``ADAV''. The 
Exchange believes that this change would increase transparency to the 
benefit of members and investors without having any impact on 
competition.

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 unsolicited 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 is effective upon filing pursuant to 
Section 19(b)(3)(A) \11\ of the Act and subparagraph (f)(2) of Rule 
19b-4 \12\ thereunder, because it establishes a due, fee, or other 
charge imposed by the Exchange.
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of the filing of such 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 under 
Section 19(b)(2)(B) \13\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \13\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File No. SR-CboeBYX-2020-006 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.


[[Page 8923]]


All submissions should refer to File No. SR-CboeBYX-2020-006. 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 No. SR-CboeBYX-2020-006, and should be submitted 
on or before March 10, 2020.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-03090 Filed 2-14-20; 8:45 am]
BILLING CODE 8011-01-P