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Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating To Update All References to “Bats Auction Mechanism” or “BAM” to “Automated Improvement Mechanism” or “AIM” in the EDGX Options Fee Schedule
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Published Document: 2019-14488 (84 FR 32805)
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Pursuant to Section 19(b)(1) [1]
of the Securities Exchange Act of 1934 (the “Act”) [2]
and Rule 19b-4 thereunder,[3]
notice is hereby given that, on July 1, 2019, Cboe EDGX Exchange, Inc. (the “Exchange” or “EDGX”) filed with the Securities and Exchange Commission (the “Commission”) the 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.
I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change
Cboe Exchange, Inc. (the “Exchange” or “Cboe Options”) proposes to update all references to “Bats Auction Mechanism” or “BAM” to “Automated Improvement Mechanism” or “AIM” in the EDGX Options Fee Schedule. The text of the proposed rule change is provided in Exhibit 5.
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 update all references to “Bats Auction Mechanism” or “BAM” to “Automated Improvement Mechanism” or “AIM” in the EDGX Options Fees Schedule. Particularly, the Exchange previously submitted a rule filing which proposed, among other things, to rename the Bats Auction Mechanism (“BAM”) to “Automated Improvement Mechanism” (“AIM”) in the rulebook.[4]
The Exchange notes however that it inadvertently failed to make the corresponding name change to the Fees Schedule. Accordingly, the Exchange proposes to replace the outdated references to “Bats
( printed page 32806)
Auction Mechanism” and “BAM” to “Automated Improvement Mechanism” and “AIM”, respectively, in the Fees Schedule. No substantive changes are being made by the proposed rule change.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 (the “Act”) and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.[5]
Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) [6]
requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) [7]
requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
In particular, the proposed change is a non-substantive change and does not impact the operations of the Exchange. Rather, it merely corrects an inadvertent oversight to update terminology in the Fees Schedule. The Exchange believes that updating the Fees Schedule to accurately reflect the new name for the BAM functionality will alleviate potential confusion, thereby removing impediments to and perfecting the mechanism of a free and open market and a national market system and protecting investors and the public interest.
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. The proposed rule change is not intended to address competitive issues but rather is concerned solely with updating the EDGX Options Fee Schedule to reflect the abovementioned language changes, which will alleviate potential confusion.
C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the proposed rule change.
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 [8]
and paragraph (f) of Rule 19b-4 [9]
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.
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:
Send an email torule-comments@sec.gov.
Please include File Number SR-CboeEDGX-2019-043 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.
July 2, 2019.
All submissions should refer to File Number SR-CboeEDGX-2019-043. 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-2019-043 and should be submitted on or before July 30, 2019.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.[10]