Self-Regulatory Organizations; CBOE Futures Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Regarding Market-Wide Trading Halts, 8207-8208 [2013-02422]

Download as PDF Federal Register / Vol. 78, No. 24 / Tuesday, February 5, 2013 / Notices • Send an email to rulecomments@sec.gov. Please include File Number SR–NASDAQ–2013–013 on the subject line. Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–NASDAQ–2013–013. 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 NASDAQ’s principal office. 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– NASDAQ–2013–013, and should be submitted on or before February 26, 2013. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9 Kevin M. O’Neill, Deputy Secretary. tkelley on DSK3SPTVN1PROD with NOTICES [FR Doc. 2013–02479 Filed 2–4–13; 8:45 am] SECURITIES AND EXCHANGE COMMISSION [Release No. 34–68765; File No. SR–CFE– 2013–002] Self-Regulatory Organizations; CBOE Futures Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Regarding Market-Wide Trading Halts January 30, 2013. Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on January 17, 2013 CBOE Futures Exchange, LLC (‘‘CFE’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) the proposed rule change described in Items I, II, and III below, which Items have been prepared by CFE. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. CFE also has filed this proposed rule change with the Commodity Futures Trading Commission (‘‘CFTC’’). CFE filed a written certification with the CFTC under Section 5c(c) of the Commodity Exchange Act (‘‘CEA’’) 2 on January 17, 2013. I. Self-Regulatory Organization’s Description of the Proposed Rule Change CFE proposes to amend CFE Rules 417A(e) and 1602(i) to coordinate the adoption and effectiveness of marketwide trading halt provisions applicable to Individual Stock Based and Exchange-Traded Fund Based Volatility Index (‘‘Volatility Index’’) security futures traded on CFE with the implementation of corresponding market-wide trading halt provisions by the national securities exchanges.3 The text of the proposed rule change is available on the Exchange’s Web site at https://www.cfe.cboe.com, on the Commission’s Web site at https:// www.sec.gov, 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, CFE included statements concerning the BILLING CODE 8011–01–P U.S.C. 78s(b)(7). U.S.C. 7a–2(c). 3 The scope of this filing is limited solely to the application of the rule changes to security futures traded on CFE and the only security futures currently traded on CFE are traded under Chapter 16 of CFE’s Rulebook which is applicable to Volatility Index security futures. 8207 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. CFE 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 this proposal is to amend CFE Rules 417A(e) and 1602(i) to coordinate the adoption and effectiveness of market-wide trading halt provisions applicable to Volatility Index security futures traded on CFE with the implementation of corresponding market-wide trading halt provisions by the national securities exchanges. In October 2012, CFE adopted CFE Rule 417A and amended CFE Rule 1602(i) to incorporate, effective on February 4, 2013, market-wide trading halt provisions that would be consistent with the market-wide trading halt provisions which were anticipated to be adopted by the national securities exchanges on February 4, 2013.4 CFE understands that the national securities exchanges are now delaying the implementation of their market-wide trading halt provisions. Because CFE Rules 417A and 1602(i) were coordinated with the previously planned February 4, 2013 adoption and effective date of the market-wide trading halt regime on national securities exchanges, CFE is now amending those rules by deleting references to the February 4, 2013 date and replacing them with references to the date on which the corresponding market-wide trading halt regime becomes effective on national securities exchanges. CFE will issue a circular advising its Trading Privilege Holders of the effective date of the new market-wide trading halt provisions prior to their effectiveness. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,5 in general, and furthers the objectives of Section 1 15 27 9 17 CFR 200.30–3(a)(12). VerDate Mar<15>2010 17:18 Feb 04, 2013 Jkt 229001 PO 00000 Frm 00107 Fmt 4703 Sfmt 4703 4 See Securities Exchange Act Release No. 68100 (October 24, 2012), 77 FR 65747 (October 30, 2012) (Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Adopt and Amend Certain Rules that are Applicable to Security Futures) (SR– CFE–2012–001). 5 15 U.S.C. 78f(b). E:\FR\FM\05FEN1.SGM 05FEN1 8208 Federal Register / Vol. 78, No. 24 / Tuesday, February 5, 2013 / Notices 6(b)(5) 6 in particular in that it is designed 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. Specifically, the proposed change would promote uniformity across securities and futures markets concerning when and how to halt trading in relation to equity-based products as a result of extraordinary market volatility which in turn facilitates the protection of investors and the public interest. Having trading halts apply across markets that operate under different regulatory regimes will benefit the public interest because similar products will be subject to consistent market-wide trading halt rules. B. Self-Regulatory Organization’s Statement on Burden on Competition CFE does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act.7 The Exchange believes that the proposal will strengthen competition because coordination of market-wide trading halts among securities and futures markets for equity-based products avoids the competitive disadvantage that would exist if some exchanges trading equity-based products halted in a coordinated fashion due to extraordinary market volatility and others did not. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. tkelley on DSK3SPTVN1PROD with NOTICES III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The proposed rule change will become operative on February 4, 2013. At any time within 60 days of the date of effectiveness of the proposed rule change, the Commission, after consultation with the CFTC, may summarily abrogate the proposed rule change and require that the proposed rule change be refiled in accordance U.S.C. 78f(b)(5). 7 15 U.S.C. 78a et seq. with the provisions of Section 19(b)(1) of the Act.8 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 rulecomments@sec.gov. Please include File Number SR–CFE–2013–002 on the subject line. 17:18 Feb 04, 2013 [FR Doc. 2013–02422 Filed 2–4–13; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–68771; File No. SR–BOX– 2013–07] Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To List and Trade Option Contracts Overlying 10 Shares of Certain Securities Paper Comments January 30, 2013. • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on January 22, 2013, BOX Options Exchange LLC (‘‘BOX’’ or ‘‘Exchange’’) 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 Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. All submissions should refer to File Number SR–CFE–2013–002. 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 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–CFE– 2013–002, and should be submitted on or before February 26, 2013. 6 15 VerDate Mar<15>2010 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9 Kevin M. O’Neill, Deputy Secretary. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to list and trade option contracts overlying 10 shares of a security (‘‘mini-options contracts’’). The text of the proposed rule change is available from the principal office of the Exchange, at the Commission’s Public Reference Room and also on the Exchange’s Internet Web site at https://boxexchange.com. 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 these statements may be examined at the places specified in Item IV below. The self-regulatory organization has prepared summaries, set forth in 9 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 8 15 Jkt 229001 PO 00000 U.S.C. 78s(b)(1). Frm 00108 Fmt 4703 Sfmt 4703 E:\FR\FM\05FEN1.SGM 05FEN1

Agencies

[Federal Register Volume 78, Number 24 (Tuesday, February 5, 2013)]
[Notices]
[Pages 8207-8208]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-02422]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68765; File No. SR-CFE-2013-002]


Self-Regulatory Organizations; CBOE Futures Exchange, LLC; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change 
Regarding Market-Wide Trading Halts

January 30, 2013.
    Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on January 17, 2013 CBOE 
Futures Exchange, LLC (``CFE'' or ``Exchange'') filed with the 
Securities and Exchange Commission (``SEC'' or ``Commission'') the 
proposed rule change described in Items I, II, and III below, which 
Items have been prepared by CFE. The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons. CFE also has filed this proposed rule change with the 
Commodity Futures Trading Commission (``CFTC''). CFE filed a written 
certification with the CFTC under Section 5c(c) of the Commodity 
Exchange Act (``CEA'') \2\ on January 17, 2013.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(7).
    \2\ 7 U.S.C. 7a-2(c).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Description of the Proposed Rule 
Change

    CFE proposes to amend CFE Rules 417A(e) and 1602(i) to coordinate 
the adoption and effectiveness of market-wide trading halt provisions 
applicable to Individual Stock Based and Exchange-Traded Fund Based 
Volatility Index (``Volatility Index'') security futures traded on CFE 
with the implementation of corresponding market-wide trading halt 
provisions by the national securities exchanges.\3\ The text of the 
proposed rule change is available on the Exchange's Web site at https://www.cfe.cboe.com, on the Commission's Web site at https://www.sec.gov, 
at the principal office of the Exchange, and at the Commission's Public 
Reference Room.
---------------------------------------------------------------------------

    \3\ The scope of this filing is limited solely to the 
application of the rule changes to security futures traded on CFE 
and the only security futures currently traded on CFE are traded 
under Chapter 16 of CFE's Rulebook which is applicable to Volatility 
Index security futures.
---------------------------------------------------------------------------

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

    In its filing with the Commission, CFE 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. CFE 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 this proposal is to amend CFE Rules 417A(e) and 
1602(i) to coordinate the adoption and effectiveness of market-wide 
trading halt provisions applicable to Volatility Index security futures 
traded on CFE with the implementation of corresponding market-wide 
trading halt provisions by the national securities exchanges.
    In October 2012, CFE adopted CFE Rule 417A and amended CFE Rule 
1602(i) to incorporate, effective on February 4, 2013, market-wide 
trading halt provisions that would be consistent with the market-wide 
trading halt provisions which were anticipated to be adopted by the 
national securities exchanges on February 4, 2013.\4\ CFE understands 
that the national securities exchanges are now delaying the 
implementation of their market-wide trading halt provisions.
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 68100 (October 24, 
2012), 77 FR 65747 (October 30, 2012) (Notice of Filing and 
Immediate Effectiveness of a Proposed Rule Change to Adopt and Amend 
Certain Rules that are Applicable to Security Futures) (SR-CFE-2012-
001).
---------------------------------------------------------------------------

    Because CFE Rules 417A and 1602(i) were coordinated with the 
previously planned February 4, 2013 adoption and effective date of the 
market-wide trading halt regime on national securities exchanges, CFE 
is now amending those rules by deleting references to the February 4, 
2013 date and replacing them with references to the date on which the 
corresponding market-wide trading halt regime becomes effective on 
national securities exchanges. CFE will issue a circular advising its 
Trading Privilege Holders of the effective date of the new market-wide 
trading halt provisions prior to their effectiveness.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\5\ in general, and furthers the 
objectives of Section

[[Page 8208]]

6(b)(5) \6\ in particular in that it is designed 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.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    Specifically, the proposed change would promote uniformity across 
securities and futures markets concerning when and how to halt trading 
in relation to equity-based products as a result of extraordinary 
market volatility which in turn facilitates the protection of investors 
and the public interest. Having trading halts apply across markets that 
operate under different regulatory regimes will benefit the public 
interest because similar products will be subject to consistent market-
wide trading halt rules.

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

    CFE does not believe that the proposed rule change will impose any 
burden on competition not necessary or appropriate in furtherance of 
the purposes of the Act.\7\ The Exchange believes that the proposal 
will strengthen competition because coordination of market-wide trading 
halts among securities and futures markets for equity-based products 
avoids the competitive disadvantage that would exist if some exchanges 
trading equity-based products halted in a coordinated fashion due to 
extraordinary market volatility and others did not.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78a et seq.
---------------------------------------------------------------------------

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

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

    The proposed rule change will become operative on February 4, 2013. 
At any time within 60 days of the date of effectiveness of the proposed 
rule change, the Commission, after consultation with the CFTC, may 
summarily abrogate the proposed rule change and require that the 
proposed rule change be refiled in accordance with the provisions of 
Section 19(b)(1) of the Act.\8\
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------

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-CFE-2013-002 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CFE-2013-002. 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 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-CFE-2013-002, and should be submitted on or before 
February 26, 2013.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-02422 Filed 2-4-13; 8:45 am]
BILLING CODE 8011-01-P
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