Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Granting Approval of Proposed Rule Change to Amend Rule 17.2 Regarding Requests for Data Related to Exchange Reviews, 67844-67845 [2012-27574]
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Federal Register / Vol. 77, No. 220 / Wednesday, November 14, 2012 / Notices
and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget a
request for extension of the previously
approved collection of information
discussed below.
Form 18 (17 CFR 249.218) is a
registration form used for by a foreign
government or political subdivision to
register securities for listing on a U.S.
exchange. The information collected is
intended to ensure that the information
required by the Commission to be filed
permits verification of compliance with
securities law requirements and assures
the public availability of the
information. The information provided
is mandatory and all information is
made available to the public upon
request. Form 18 takes approximately 8
hours per response and is filed by
approximately 5 respondents for a total
of 40 annual burden hours. It is
estimated that 100% of the total
reporting burden is prepared by the
company.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a currently valid
control number.
The public may view the background
documentation for this information
collection at the following Web site,
www.reginfo.gov. Comments should be
directed to: (i) Desk Officer for the
Securities and Exchange Commission,
Office of Information and Regulatory
Affairs, Office of Management and
Budget, Room 10102, New Executive
Office Building, Washington, DC 20503,
or by sending an email to:
Shagufta_Ahmed@omb.eop.gov; and (ii)
Thomas Bayer, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Remi PavlikSimon, 6432 General Green Way,
Alexandria, VA 22312 or send an email
to: PRA_Mailbox@sec.gov. Comments
must be submitted to OMB within 30
days of this notice.
November 7, 2012.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–27608 Filed 11–13–12; 8:45 am]
emcdonald on DSK67QTVN1PROD with NOTICES
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68171; File No. SR–CBOE–
2012–087]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Order Granting Approval
of Proposed Rule Change to Amend
Rule 17.2 Regarding Requests for Data
Related to Exchange Reviews
November 6, 2012.
I. Introduction
On September 4, 2012, the Chicago
Board Options Exchange, Incorporated
(‘‘Exchange’’ or ‘‘CBOE’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
amend Exchange Rule 17.2 (Complaint
and Investigation) regarding the
furnishing of data requested with
respect to any review conducted by the
Exchange pursuant to that Rule. The
proposed rule change was published for
comment in the Federal Register on
September 24, 2012.3 The Commission
received no comment letters on the
proposed rule change. This order
approves the proposed rule change.
II. Description of the Proposed Rule
Change
The Exchange proposes to amend
Rule 17.2 (Complaint and Investigation)
to address the furnishing of data to the
Exchange by a Trading Permit Holder
(‘‘TPH’’) in connection with a regulatory
review conducted by the Exchange.
Specifically, the Exchange proposes to
add Interpretations and Policies .04,
which provides that ‘‘[i]n addition to
the existing obligation under Exchange
rules regarding the production of books
and records, each TPH or TPH
organization shall furnish upon request,
in the manner and standard electronic
format prescribed by the Exchange, data
concerning orders, transactions, and
positions, including related hedges and
offsets, in relation to a regulatory review
conducted by the Exchange.’’
In the Notice, the Exchange stated that
it currently requests and receives certain
trade data from TPHs and TPH
organizations on an ad hoc basis in
connection with its regulatory
responsibilities as a registered exchange.
TPHs and TPH organizations provide
such data to the Exchange in a variety
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 67879
(September 18, 2012), 77 FR 58897 (‘‘Notice’’).
2 17
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of different manners and formats, and
sometimes in a piecemeal manner.4
Because the form of the submitted
information can be highly variable and
the manner of submission is not
standard, the Exchange represented that
the Exchange’s Regulatory Division
expends considerable resources in reorganizing and systematizing the
information in order to be able to
perform its review and analysis. In order
to address this inefficiency, the
Exchange now proposes to require TPHs
to furnish, upon request, data in a
standard manner and format as
prescribed by the Exchange.
In the Notice, the Exchange
represented that this change would
allow the Exchange to develop uniform
procedures and forms for the
submission of data concerning orders,
transactions, and positions, including
related hedges and offsets.5 The
Exchange stated that the existence of a
standard format for the submission of
the data would allow the TPHs to better
prepare for regulatory responses and
would allow the Exchange regulatory
staff to review and analyze the
requested data in a more efficient and
organized manner which in turn will
expedite such review and analysis.6
Pursuant to the new rule provision, the
Exchange will publish by Regulatory
Circular the required layout for the data
that would be submitted to the
Exchange.7
III. Discussion and Commission’s
Findings
After careful review, the Commission
finds that the proposed rule change is
consistent with the requirements of
Section 6 of the Act 8 and the rules and
regulations thereunder applicable to a
4 According to the Exchange, the data which the
Exchange currently receives is provided in a
comma-separated values format, and includes,
when applicable, separate data fields for trade date,
order entry time (milliseconds), cancel time
(milliseconds), execution time (milliseconds),
unique ticker symbol, side, execution price, event
type, unique account identification, user ID, order
ID, broker location, quantity, locate source for short
sale, number of shares remaining after a partial
execution, and the code of the exchange to which
an order was routed.
5 See Notice, supra note 3, at 58898.
6 Id.
7 Id. The Exchange represented that it will not
enforce compliance with Interpretations and
Policies .04 until the Exchange has announced an
implementation plan, including a subsequent
compliance date, to its members, and that the
Exchange expects to announce such
implementation plan via a Regulatory Circular
during the fourth calendar quarter of 2012. Id. The
Exchange believes that the intervening period
between the announcement of the implementation
plan and the compliance date will allow TPHs time
to prepare to comply. Id.
8 15 U.S.C. 78f.
E:\FR\FM\14NON1.SGM
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Federal Register / Vol. 77, No. 220 / Wednesday, November 14, 2012 / Notices
national securities exchange.9 In
particular, the Commission finds that
the proposed rule change is consistent
with Section 6(b)(5) of the Act,10 which
requires, among other things, that the
Exchange’s rules 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 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.
The Commission believes that CBOE’s
proposed rule change is designed to
facilitate the production of uniform data
by TPHs, which will permit the
Exchange’s regulatory staff to make use
of the data more readily than is
currently the case. In particular,
Exchange staff will no longer have to
take time to reconcile data that is
submitted in disparate formats. In turn,
this should benefit the Exchange’s
regulatory reviews by permitting more
efficient use of Exchange resources. To
this extent, the rule change is designed
to help prevent fraudulent and
manipulative practices, consistent with
the Act, because obtaining data from
TPHs in a uniform format will aid the
Exchange’s regulatory staff in the
exercise of its regulatory authority. New
Interpretations and Policies .04 should
help facilitate the Exchange’s decision
making regarding determining causes of
action and considering the appropriate
regulatory response to a complaint or
investigation, which will further the
Act’s goal of promoting just and
equitable principles of trade.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,11 that the
proposed rule change (SR–CBOE–2012–
087) be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Kevin M. O’Neill,
Deputy Secretary.
emcdonald on DSK67QTVN1PROD with NOTICES
[FR Doc. 2012–27574 Filed 11–13–12; 8:45 am]
BILLING CODE 8011–01–P
9 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
10 15 U.S.C. 78f(b)(5).
11 15 U.S.C. 78s(b)(2).
12 17 CFR 200.30–3(a)(12).
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68174; File No. SR–
NYSEArca-2012–118]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Increase the Options
Regulatory Fee and To Revise the
Circumstances Under Which NYSE
Arca, Inc. Will Collect the Options
Regulatory Fee
November 7, 2012.
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 1, 2012, NYSE Arca, Inc. (the
‘‘Exchange’’ or ‘‘NYSE Arca’’) 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 selfregulatory 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 the Substance
of the Proposed Rule Change
The Exchange proposes to increase its
Options Regulatory Fee (‘‘ORF’’) and to
revise the circumstances under which
the Exchange will collect the ORF. The
text of 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.
1 15
U.S.C.78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
Frm 00056
Fmt 4703
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to increase its
ORF and to revise the circumstances
under which the Exchange will collect
the ORF.
Background
The ORF, which is currently $0.004
per contract, is assessed by the
Exchange on each OTP Holder or OTP
Firm for all options transactions
executed or cleared by the OTP Holder
or OTP Firm that are cleared by The
Options Clearing Corporation (‘‘OCC’’)
in the customer range, i.e., transactions
that clear in the customer account of the
OTP Holder’s or OTP Firm’s clearing
firm at OCC, regardless of the
marketplace of execution.4 In other
words, the Exchange imposes the ORF
on all customer-range transactions
executed by an OTP Holder or OTP
Firm even if the transactions do not take
place on the Exchange. In the case
where an OTP Holder or OTP Firm
executes a transaction and a different
OTP Holder or OTP Firm clears the
transaction, the ORF is assessed to the
OTP Holder or OTP Firm who executes
the transaction. In the case where a nonOTP Holder or non-OTP Firm executes
a transaction and an OTP Holder or OTP
Firm clears the transaction, the ORF is
assessed to the OTP Holder or OTP Firm
who clears the transaction.
The dues and fees paid by OTP
Holders and OTP Firms go into the
general funds of the Exchange, a portion
of which is used to help pay the costs
of regulation. In particular, the ORF is
designed to recover a material portion of
the costs to the Exchange of the
supervision and regulation of OTP
Holder and OTP Firms, including
performing routine surveillance and
investigations, as well as policy,
rulemaking, interpretive and
enforcement activities. The Exchange
monitors the amount of revenue
collected from the ORF so that, in
combination with other regulatory fees
and fines, it does not exceed regulatory
costs. The ORF is collected indirectly
from OTP Holders and OTP Firms
through their clearing firms by OCC on
behalf of the Exchange.
Proposed Change
The Exchange proposes to (1) increase
the ORF from $0.004 per contract to
4 See Securities Exchange Act Release No. 64399
(May 4, 2011), 76 FR 27114 (May 10, 2011) (SR–
NYSEArca–2011–20).
2 15
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]]>Agencies
[Federal Register Volume 77, Number 220 (Wednesday, November 14, 2012)]
[Notices]
[Pages 67844-67845]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-27574]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68171; File No. SR-CBOE-2012-087]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Order Granting Approval of Proposed Rule Change to Amend
Rule 17.2 Regarding Requests for Data Related to Exchange Reviews
November 6, 2012.
I. Introduction
On September 4, 2012, the Chicago Board Options Exchange,
Incorporated (``Exchange'' or ``CBOE'') filed with the Securities and
Exchange Commission (``Commission''), pursuant to Section 19(b)(1) of
the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4
thereunder,\2\ a proposed rule change to amend Exchange Rule 17.2
(Complaint and Investigation) regarding the furnishing of data
requested with respect to any review conducted by the Exchange pursuant
to that Rule. The proposed rule change was published for comment in the
Federal Register on September 24, 2012.\3\ The Commission received no
comment letters on the proposed rule change. This order approves the
proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 67879 (September 18,
2012), 77 FR 58897 (``Notice'').
---------------------------------------------------------------------------
II. Description of the Proposed Rule Change
The Exchange proposes to amend Rule 17.2 (Complaint and
Investigation) to address the furnishing of data to the Exchange by a
Trading Permit Holder (``TPH'') in connection with a regulatory review
conducted by the Exchange. Specifically, the Exchange proposes to add
Interpretations and Policies .04, which provides that ``[i]n addition
to the existing obligation under Exchange rules regarding the
production of books and records, each TPH or TPH organization shall
furnish upon request, in the manner and standard electronic format
prescribed by the Exchange, data concerning orders, transactions, and
positions, including related hedges and offsets, in relation to a
regulatory review conducted by the Exchange.''
In the Notice, the Exchange stated that it currently requests and
receives certain trade data from TPHs and TPH organizations on an ad
hoc basis in connection with its regulatory responsibilities as a
registered exchange. TPHs and TPH organizations provide such data to
the Exchange in a variety of different manners and formats, and
sometimes in a piecemeal manner.\4\ Because the form of the submitted
information can be highly variable and the manner of submission is not
standard, the Exchange represented that the Exchange's Regulatory
Division expends considerable resources in re-organizing and
systematizing the information in order to be able to perform its review
and analysis. In order to address this inefficiency, the Exchange now
proposes to require TPHs to furnish, upon request, data in a standard
manner and format as prescribed by the Exchange.
---------------------------------------------------------------------------
\4\ According to the Exchange, the data which the Exchange
currently receives is provided in a comma-separated values format,
and includes, when applicable, separate data fields for trade date,
order entry time (milliseconds), cancel time (milliseconds),
execution time (milliseconds), unique ticker symbol, side, execution
price, event type, unique account identification, user ID, order ID,
broker location, quantity, locate source for short sale, number of
shares remaining after a partial execution, and the code of the
exchange to which an order was routed.
---------------------------------------------------------------------------
In the Notice, the Exchange represented that this change would
allow the Exchange to develop uniform procedures and forms for the
submission of data concerning orders, transactions, and positions,
including related hedges and offsets.\5\ The Exchange stated that the
existence of a standard format for the submission of the data would
allow the TPHs to better prepare for regulatory responses and would
allow the Exchange regulatory staff to review and analyze the requested
data in a more efficient and organized manner which in turn will
expedite such review and analysis.\6\ Pursuant to the new rule
provision, the Exchange will publish by Regulatory Circular the
required layout for the data that would be submitted to the
Exchange.\7\
---------------------------------------------------------------------------
\5\ See Notice, supra note 3, at 58898.
\6\ Id.
\7\ Id. The Exchange represented that it will not enforce
compliance with Interpretations and Policies .04 until the Exchange
has announced an implementation plan, including a subsequent
compliance date, to its members, and that the Exchange expects to
announce such implementation plan via a Regulatory Circular during
the fourth calendar quarter of 2012. Id. The Exchange believes that
the intervening period between the announcement of the
implementation plan and the compliance date will allow TPHs time to
prepare to comply. Id.
---------------------------------------------------------------------------
III. Discussion and Commission's Findings
After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of Section 6 of the Act \8\
and the rules and regulations thereunder applicable to a
[[Page 67845]]
national securities exchange.\9\ In particular, the Commission finds
that the proposed rule change is consistent with Section 6(b)(5) of the
Act,\10\ which requires, among other things, that the Exchange's rules
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 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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f.
\9\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Commission believes that CBOE's proposed rule change is
designed to facilitate the production of uniform data by TPHs, which
will permit the Exchange's regulatory staff to make use of the data
more readily than is currently the case. In particular, Exchange staff
will no longer have to take time to reconcile data that is submitted in
disparate formats. In turn, this should benefit the Exchange's
regulatory reviews by permitting more efficient use of Exchange
resources. To this extent, the rule change is designed to help prevent
fraudulent and manipulative practices, consistent with the Act, because
obtaining data from TPHs in a uniform format will aid the Exchange's
regulatory staff in the exercise of its regulatory authority. New
Interpretations and Policies .04 should help facilitate the Exchange's
decision making regarding determining causes of action and considering
the appropriate regulatory response to a complaint or investigation,
which will further the Act's goal of promoting just and equitable
principles of trade.
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\11\ that the proposed rule change (SR-CBOE-2012-087) be, and
hereby is, approved.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-27574 Filed 11-13-12; 8:45 am]
BILLING CODE 8011-01-P
