Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule, 74151-74153 [2015-30087]

Download as PDF Federal Register / Vol. 80, No. 228 / Friday, November 27, 2015 / Notices The Exchange also believes that the proposed rule change is designed to not permit unfair discrimination among market participants. Use of the optional service will be voluntary and within the sole discretion of each TPH. The proposed optional service is available to all TPHs and will apply to the same order types of all TPHs. The proposed rule change to delete language related to CMi benefits investors, as that API is no longer available to TPHs and thus deletion of that language helps eliminate confusion. CMi2 and FIX continue to be available to TPHs. B. Self-Regulatory Organization’s Statement on Burden on Competition mstockstill on DSK4VPTVN1PROD with NOTICES CBOE 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. Specifically, the Exchange does not believe the proposed rule change will cause any burden on intramarket competition because the optional service will be available to all TPHs. Use of this optional service will be within the sole discretion of each TPH. The proposed rule change will have no impact on TPHs that do not enable the proposed optional service. For TPHs that elect to enable the proposed optional service, the only impact on those TPHs will be cancellation of day orders (in addition to Market-Maker quotes) upon loss of connectivity. The Technical Disconnect Mechanism will otherwise continue to function in the same manner as it does today. Further, the Exchange does not believe that such change will impose any burden on intermarket competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change modifies a mechanism available on CBOE’s system and applies only to orders entered on CBOE. The Exchange notes that, should the proposed change make CBOE a more attractive place for trading, market participants trading on other exchanges are welcome to become TPHs and trade at CBOE if they determine that this proposed change has made CBOE more available at https://www.batstrading.com/resources/ membership/BATS_FIX_Specification.pdf (see Section 5.1 for description of automatic cancel on disconnection or malfunction); MIAX Options Market Protections Handout (March 2015), available at https://www.miaxoptions.com/sites/ default/files/MIAX_Market_Protections_March_ 2015.pdf (see page 5 for description of auto cancel on disconnect order protection); and NYSE UTPDirect (CGC Binary) API Specification, V1.4 (February 26, 2015), available at https:// www.nyse.com/publicdocs/nyse/markets/nyse/ NYSEUTPDirect_Specification.pdf (see Section 3.8 for description of cancel on disconnect service). VerDate Sep<11>2014 19:01 Nov 25, 2015 Jkt 238001 attractive or favorable. Additionally, as discussed above, other options exchanges offer their members similar functionality.14 The proposed rule change to delete language regarding CMi has no impact on competition, as it merely deletes a provision regarding an API that is no longer used by, and is no longer available to, TPHs. CMi 2 ultimately replaced CMi, and FIX continues to be available to TPHs as well. 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 15 and paragraph (f) of Rule 19b–4 16 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: Electronic comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– CBOE–2015–103 on the subject line. Paper comments • Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–CBOE–2015–103. 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 (https://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 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; 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–CBOE– 2015–103 and should be submitted on or before December 18, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.17 Robert W. Errett, Deputy Secretary. [FR Doc. 2015–30075 Filed 11–25–15; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–76498; File No. SR–CBOE– 2015–105] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule November 20, 2015. 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 November 16, 2015, Chicago Board Options Exchange, Incorporated (the ‘‘Exchange’’ 14 Id. 17 17 15 15 1 15 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. U.S.C. 78s(b)(3)(A). 16 17 CFR 240.19b–4(f). PO 00000 Frm 00081 Fmt 4703 Sfmt 4703 74151 E:\FR\FM\27NON1.SGM 27NON1 74152 Federal Register / Vol. 80, No. 228 / Friday, November 27, 2015 / Notices or ‘‘CBOE’’) 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 the Substance of the Proposed Rule Change The Exchange proposes to amend its Fees Schedule. The text of the proposed rule change is available on the Exchange’s Web site (https:// www.cboe.com/AboutCBOE/ CBOELegalRegulatoryHome.aspx), 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 mstockstill on DSK4VPTVN1PROD with NOTICES 1. Purpose The Exchange proposes to amend its Fees Schedule, effective November 16, 2015. Specifically, the Exchange proposes to amend the Fees Schedule with respect to Qualified Contingent Cross (‘‘QCC’’) 3 orders. Currently, the Fees Schedule provides for a transaction fee for all non-customer QCC orders of $0.15 per contract side (customer orders are not assessed a charge) and a $0.10 per contract credit for the initiating order side, regardless of origin code.4 The Exchange first proposes to increase the fee for QCC transactions from $0.15 per contract to $0.17 per contract for all 3 A QCC order is comprised of an order to buy or sell at least 1,000 contracts (or 10,000 minioption contracts) that is identified as being part of a qualified contingent trade, coupled with a contraside order or orders totaling an equal number of contracts. 4 The Exchange notes that the $0.10 per contract credit is not be available for customer-to-customer transactions. VerDate Sep<11>2014 19:01 Nov 25, 2015 Jkt 238001 non-customer orders. The Exchange notes that the proposed increase is in line with other exchanges.5 Next, the Exchange proposes to provide that the maximum credit paid shall not exceed $350,000 per month per Trading Permit Holder (‘‘TPH’’). The Exchange notes that it will aggregate the credits of affiliated TPHs (TPHs with at least 75% common ownership between the firms as reflected on each firm’s Form BD, Schedule A) for purposes of determining whether a TPH has met the QCC credit cap. The Exchange believes that, while limiting the amount of rebate that a market participant can receive, the current QCC rebate will continue to incentivize market participants to seek to obtain the highest rebate possible. The Exchange also notes that other Exchanges have similar caps on rebates offered for QCC transactions.6 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. Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 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 facilitation 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 Section 6(b)(4) of the Act, which requires that Exchange rules provide for the equitable allocation of reasonable dues, fees, and other charges among its Trading Permit Holders and other persons using its facilities. The Exchange believes the proposed increase to the transaction fee for QCC orders is reasonable because the proposed amount is in line with the amount assessed at other Exchanges for 5 See e.g., NASDAQ OMX PHLX LLC (‘‘PHLX’’) Pricing Schedule, Section II, QCC Transaction Fees. 6 See e.g., PHLX Pricing Schedule, Section II, QCC Transaction Fees and NSYE Amex Options Fees Schedule (‘‘Amex’’), Section IE, Qualified Contingent Cross (‘‘QCC’’) Fees and Credits for Standard Options and Mini Options. PO 00000 Frm 00082 Fmt 4703 Sfmt 4703 similar transactions.7 Additionally, the proposed fee increase would be charged to all non-customers alike. Assessing QCC rates to all market participants except customers is equitable and not unfairly discriminatory because Customer order flow enhances liquidity on the Exchange for the benefit of all market participants. Specifically, Customer liquidity benefits all market participants by providing more trading opportunities, which attracts MarketMakers. An increase in the activity of these market participants in turn facilitates tighter spreads, which may cause an additional corresponding increase in order flow from other market participants. By exempting customer orders, the QCC transaction fees will not discourage the sending of customer orders. The Exchange believes the proposed QCC credit cap is reasonable, equitable and not unfairly discriminatory because it is in line with similar caps on rebates paid for QCC transactions at other exchanges 8 and because all TPHs would be uniformly capped at $350,000 per month. The Exchange also believes it’s reasonable, equitable and not unfairly discriminatory to provide that it will aggregate the credits of affiliated TPHs to determine whether the credit cap has been met, as the Exchange believes this should prevent TPHs from dividing up their orders to different affiliates in order to avoid meeting the cap and it would apply to all TPHs. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule changes will impose any burden on competition that are not necessary or appropriate in furtherance of the purposes of the Act. The Exchange does not believe that the proposed rule change will impose any burden on intramarket competition that is not necessary or appropriate in furtherance of the purposes of the Act, because the proposes [sic] rule changes apply uniformly to all Trading Permit Holders. The Exchange believes this proposal will not cause an unnecessary burden on intermarket competition because it only affects trading on CBOE. To the extent that the proposed changes make CBOE a more attractive marketplace for market participants at other exchanges, such market participants are welcome to become CBOE market participants. Additionally, 7 See e.g., PHLX Pricing Schedule, Section II, QCC Transaction Fees and NSYE Amex Options Fees Schedule, Section I.E, Qualified Contingent Cross (‘‘QCC’’) Fees and Credits for Standard Options and Mini Options. 8 Id. E:\FR\FM\27NON1.SGM 27NON1 Federal Register / Vol. 80, No. 228 / Friday, November 27, 2015 / Notices the Exchange notes that it operates in a highly competitive market, comprised of thirteen options exchanges, in which market participants can easily and readily direct order flow to competing venues if they deem fee levels at a particular venue to be excessive or rebates to be inadequate. 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 9 and paragraph (f) of Rule 19b–4 10 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: Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– CBOE–2015–105 on the subject line. mstockstill on DSK4VPTVN1PROD with NOTICES 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–CBOE–2015–105. 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 (https://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 offices 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–CBOE– 2015–105, and should be submitted on or before December18, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Robert W. Errett, Deputy Secretary. [FR Doc. 2015–30087 Filed 11–25–15; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–76492; File No. SR– NYSEArca-2015–92] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Adopting a Rule Relating to Fingerprint-Based Background Checks of Directors, Officers, Employees, and Others November 20, 2015. 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 November 12, 2015, NYSE Arca, Inc. (the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with the Securities and Exchange Commission (the ‘‘SEC’’ or 11 17 CFR 200.30–3(a)(12). U.S.C.78s(b)(1). 2 15 U.S.C. 78a. 3 17 CFR 240.19b–4. 1 15 9 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f). 10 17 VerDate Sep<11>2014 19:01 Nov 25, 2015 Jkt 238001 PO 00000 Frm 00083 Fmt 4703 Sfmt 4703 74153 ‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the self-regulatory organization. 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 The Exchange proposes a rule to [sic] relating to fingerprint-based background checks of directors, officers, employees and others. The proposed rule change is available on the Exchange’s Web site at www.nyse.com, at the principal office of the Exchange, 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 self-regulatory organization 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 those 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 parts of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange and its wholly owned subsidiary NYSE Arca Equities proposes a new Rule 3.11 4 codifying the current practice of conducting fingerprint-based background checks of prospective and current employees, temporary personnel, independent contractors, service providers and others. The proposed rule is substantially similar to Rule 28 of the Exchange’s affiliates, New York Stock Exchange LLC and NYSE MKT LLC.5 A number of other securities markets have also adopted a similar rule, permitting them to obtain fingerprints from certain enumerated 4 NYSE Arca and NYSE Arca Equities Rule 3 govern organization and administration. The text of proposed Rule 3.11 would be identical for both NYSE Arca and NYSE Arca Equities. 5 See NYSE Rule 28; NYSE MKT Rule 28. There are no substantive differences between the proposed Rule and NYSE Rule 28 and NYSE MKT Rule 28. E:\FR\FM\27NON1.SGM 27NON1

Agencies

[Federal Register Volume 80, Number 228 (Friday, November 27, 2015)]
[Notices]
[Pages 74151-74153]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-30087]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76498; File No. SR-CBOE-2015-105]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend the Fees Schedule

November 20, 2015.
    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 November 16, 2015, Chicago Board Options Exchange, Incorporated 
(the ``Exchange''

[[Page 74152]]

or ``CBOE'') 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.
---------------------------------------------------------------------------

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

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

    The Exchange proposes to amend its Fees Schedule. The text of the 
proposed rule change is available on the Exchange's Web site (https://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), 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 Fees Schedule, effective 
November 16, 2015. Specifically, the Exchange proposes to amend the 
Fees Schedule with respect to Qualified Contingent Cross (``QCC'') \3\ 
orders. Currently, the Fees Schedule provides for a transaction fee for 
all non-customer QCC orders of $0.15 per contract side (customer orders 
are not assessed a charge) and a $0.10 per contract credit for the 
initiating order side, regardless of origin code.\4\ The Exchange first 
proposes to increase the fee for QCC transactions from $0.15 per 
contract to $0.17 per contract for all non-customer orders. The 
Exchange notes that the proposed increase is in line with other 
exchanges.\5\
---------------------------------------------------------------------------

    \3\ A QCC order is comprised of an order to buy or sell at least 
1,000 contracts (or 10,000 mini-option contracts) that is identified 
as being part of a qualified contingent trade, coupled with a 
contra-side order or orders totaling an equal number of contracts.
    \4\ The Exchange notes that the $0.10 per contract credit is not 
be available for customer-to-customer transactions.
    \5\ See e.g., NASDAQ OMX PHLX LLC (``PHLX'') Pricing Schedule, 
Section II, QCC Transaction Fees.
---------------------------------------------------------------------------

    Next, the Exchange proposes to provide that the maximum credit paid 
shall not exceed $350,000 per month per Trading Permit Holder 
(``TPH''). The Exchange notes that it will aggregate the credits of 
affiliated TPHs (TPHs with at least 75% common ownership between the 
firms as reflected on each firm's Form BD, Schedule A) for purposes of 
determining whether a TPH has met the QCC credit cap. The Exchange 
believes that, while limiting the amount of rebate that a market 
participant can receive, the current QCC rebate will continue to 
incentivize market participants to seek to obtain the highest rebate 
possible. The Exchange also notes that other Exchanges have similar 
caps on rebates offered for QCC transactions.\6\
---------------------------------------------------------------------------

    \6\ See e.g., PHLX Pricing Schedule, Section II, QCC Transaction 
Fees and NSYE Amex Options Fees Schedule (``Amex''), Section IE, 
Qualified Contingent Cross (``QCC'') Fees and Credits for Standard 
Options and Mini Options.
---------------------------------------------------------------------------

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. Specifically, the Exchange 
believes the proposed rule change is consistent with the Section 
6(b)(5) 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 facilitation 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 Section 6(b)(4) of 
the Act, which requires that Exchange rules provide for the equitable 
allocation of reasonable dues, fees, and other charges among its 
Trading Permit Holders and other persons using its facilities.
    The Exchange believes the proposed increase to the transaction fee 
for QCC orders is reasonable because the proposed amount is in line 
with the amount assessed at other Exchanges for similar 
transactions.\7\ Additionally, the proposed fee increase would be 
charged to all non-customers alike. Assessing QCC rates to all market 
participants except customers is equitable and not unfairly 
discriminatory because Customer order flow enhances liquidity on the 
Exchange for the benefit of all market participants. Specifically, 
Customer liquidity benefits all market participants by providing more 
trading opportunities, which attracts Market-Makers. An increase in the 
activity of these market participants in turn facilitates tighter 
spreads, which may cause an additional corresponding increase in order 
flow from other market participants. By exempting customer orders, the 
QCC transaction fees will not discourage the sending of customer 
orders.
---------------------------------------------------------------------------

    \7\ See e.g., PHLX Pricing Schedule, Section II, QCC Transaction 
Fees and NSYE Amex Options Fees Schedule, Section I.E, Qualified 
Contingent Cross (``QCC'') Fees and Credits for Standard Options and 
Mini Options.
---------------------------------------------------------------------------

    The Exchange believes the proposed QCC credit cap is reasonable, 
equitable and not unfairly discriminatory because it is in line with 
similar caps on rebates paid for QCC transactions at other exchanges 
\8\ and because all TPHs would be uniformly capped at $350,000 per 
month. The Exchange also believes it's reasonable, equitable and not 
unfairly discriminatory to provide that it will aggregate the credits 
of affiliated TPHs to determine whether the credit cap has been met, as 
the Exchange believes this should prevent TPHs from dividing up their 
orders to different affiliates in order to avoid meeting the cap and it 
would apply to all TPHs.
---------------------------------------------------------------------------

    \8\ Id.
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed rule changes will 
impose any burden on competition that are not necessary or appropriate 
in furtherance of the purposes of the Act. The Exchange does not 
believe that the proposed rule change will impose any burden on 
intramarket competition that is not necessary or appropriate in 
furtherance of the purposes of the Act, because the proposes [sic] rule 
changes apply uniformly to all Trading Permit Holders. The Exchange 
believes this proposal will not cause an unnecessary burden on 
intermarket competition because it only affects trading on CBOE. To the 
extent that the proposed changes make CBOE a more attractive 
marketplace for market participants at other exchanges, such market 
participants are welcome to become CBOE market participants. 
Additionally,

[[Page 74153]]

the Exchange notes that it operates in a highly competitive market, 
comprised of thirteen options exchanges, in which market participants 
can easily and readily direct order flow to competing venues if they 
deem fee levels at a particular venue to be excessive or rebates to be 
inadequate.

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 \9\ and paragraph (f) of Rule 19b-4 \10\ 
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.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 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 (https://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-CBOE-2015-105 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-CBOE-2015-105. 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 (https://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 offices 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-CBOE-2015-105, 
and should be submitted on or before December 18, 2015.
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-30087 Filed 11-25-15; 8:45 am]
 BILLING CODE 8011-01-P
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