Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of a Proposed Rule Change To Amend Rule 6.53, 22591-22593 [2013-08865]

Download as PDF Federal Register / Vol. 78, No. 73 / Tuesday, April 16, 2013 / Notices Commissioner Gallagher, as duty officer, voted to consider the items listed for the Closed Meeting in a closed session. The subject matter of the Closed Meeting will be: institution and settlement of injunctive actions; institution and settlement of administrative proceedings; adjudicatory matters; and other matters relating to enforcement proceedings. At times, changes in Commission priorities require alterations in the scheduling of meeting items. For further information and to ascertain what, if any, matters have been added, deleted or postponed, please contact the Office of the Secretary at (202) 551–5400. Dated: April 11, 2013. Elizabeth M. Murphy, Secretary. [FR Doc. 2013–08998 Filed 4–12–13; 11:15 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–69202; File No. SR–BOX– 2013–15] Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule To Establish Fees for Mini Options on BOX March 21, 2013. Correction In notice document 2013–7009, appearing on pages 18642–18646 in the issue of Wednesday, March 27, 2013, make the following correction: On page 18642, in the second column, the Release No. and File No., which were inadvertently omitted from the document heading, are added to read as set forth above. [FR Doc. C1–2013–07009 Filed 4–15–13; 8:45 am] mstockstill on DSK4VPTVN1PROD with NOTICES BILLING CODE 1505–01–D SECURITIES AND EXCHANGE COMMISSION [Release No. 34–69360; File No. SR–CBOE– 2013–041] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of a Proposed Rule Change To Amend Rule 6.53 April 10, 2013. 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 March 28, 2013, Chicago Board Options Exchange, Incorporated (the ‘‘Exchange’’ 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 Rule 6.53—Certain Types of Orders Defined. 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 the 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 the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend its definition of a Qualified Contingent 1 15 2 17 VerDate Mar<15>2010 20:03 Apr 15, 2013 Jkt 229001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00081 Fmt 4703 Sfmt 4703 22591 Cross (‘‘QCC’’) Order. A QCC Order is an order to buy (or sell) at least 1,000 standard option contracts or 10,000 mini-option contracts 3 that is identified as being part of a qualified contingent trade 4 coupled with a contra-side order to sell (or buy) an equal number of contracts. QCC Orders were initially adopted by the International Securities Exchange, LLC (‘‘ISE’’) and approved by the Commission.5 The Exchange opposed the ISE proposal and the adoption of QCC Orders, but for competitive reasons elected to adopt QCC Order rules on CBOE.6 The rules the Exchange adopted regarding QCC Orders were explicit in stating that QCC 3 The Exchange added language regarding minioptions due to the beginning of trading of minioptions. See SR–CBOE–2013–036, available at https://www.cboe.com/publish/RuleFilingsSEC/SRCBOE-2013-036.pdf. 4 A ‘‘qualified contingent trade’’ is a transaction consisting of two or more component orders, executed as agent or principal, where: (1) At least one component is an NMS stock, as defined in Rule 600 of Regulation NMS under the Exchange Act; (2) all components are effected with a product or price contingency that either has been agreed to by all the respective counterparties or arranged for by a broker-dealer as principal or agent; (3) the execution of one component is contingent upon the execution of all other components at or near the same time; (4) the specific relationship between the component orders (e.g., the spread between the prices of the component orders) is determined by the time the contingent order is placed; (5) the component orders bear a derivative relationship to one another, represent different classes of shares of the same issuer, or involve the securities of participants in mergers or with intentions to merge that have been announced or cancelled; and (6) the transaction is fully hedged (without regard to any prior existing position) as a result of other components of the contingent trade. See CBOE Rule 6.53(u)(i). 5 ISE first proposed to adopt a qualified contingent cross order type through SR–ISE–2009– 35. This proposal was approved by the Commission’s Division of Trading and Markets (the ‘‘Division’’) pursuant to delegated authority on August 28, 2009, Securities Exchange Act Release No. 60584 (August 28, 2009), 74 FR 45663 (September 3, 2009) (SR–ISE–2009–35), but this approval was stayed by a CBOE petition seeking full Commission review. See Letters from Joanne Moffic-Silver, General Counsel and Corporate Secretary, CBOE, dated September 4 and 14, 2009. ISE thereafter submitted its modified rule change, SR–ISE–2010–73, and a letter requesting that the Commission vacate the Division’s approval of SR– ISE–2009–35 simultaneous with the approval of SR–ISE–2010–73. CBOE submitted numerous letters objecting to ISE’s original and modified qualified contingent cross proposals, however, the Commission approved SR–ISE–2010–73 and set aside SR–ISE–2009–35 on February 24, 2011. See Securities Exchange Act Release Nos. 62523 (July 16, 2010), 75 FR 43211 (July 23, 2010) (SR–ISE– 2010–73) (ISE Proposal), 63955 (February 24, 2011) (SR–ISE–2010–73) (ISE Approval), and 69354 (February 24, 2011) (SR–ISE–2009–35); see also, e.g., CBOE comment letters and materials dated July 16, 2009, September 4, 2009, September 14, 2009, September 17, 2009, December 3, 2009, January 20, 2010, April 7, 2010, and April 9, 2010. 6 See Securities Exchange Act Releases Nos. 64354 (April 27, 2011), 76 FR 25392 (May 4, 2011) (SR–CBOE–2011–041) and 64653 (June 13, 2011), 76 FR 35491 (June 17, 2011) (SR–CBOE–2011–041). E:\FR\FM\16APN1.SGM 16APN1 22592 Federal Register / Vol. 78, No. 73 / Tuesday, April 16, 2013 / Notices mstockstill on DSK4VPTVN1PROD with NOTICES Orders may only be entered in the standard increments applicable to simple orders in the options class under Exchange Rule 6.42—Minimum Increments of Bids and Offers.7 In effect, this language limits the entry of QCC Orders to $0.10, $0.05, or $0.01 increments, with the increment of trading being the standard trading increment applicable to simple orders in the individual option series in question, regardless of whether there are one or multiple options legs of the QCC Order. Rule 6.42 permits the entry of legs of a complex order in $0.01 increments (regardless of the standard trading increment applicable to the options class of each leg).8 This would allow for QCC Orders with multiple legs to be traded in $0.01 increments (regardless of the standard trading increment applicable to the options class of each leg), were it not for the above-referenced language that limits the entry of QCC Orders to the standard increments applicable to simple orders in the options class of each leg. As such, the Exchange proposes to amend its definition of a QCC Order to state that such orders with one option leg may only be entered in the standard increments applicable to simple orders in the options class under Rule 6.42, but QCC Orders with more than one option leg may be entered in the increments specified for complex orders under Rule 6.42. (which is $0.01 increments). This change would put the trading of QCC Orders with multiple legs on the same footing as the trading of other types of complex orders. 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the Act and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.9 Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 10 requirements that the rules of an exchange be designed to promote just and equitable principles of trade, to prevent fraudulent and manipulative acts, to remove impediments to and to perfect the mechanism for a free and open market and a national market system, and, in general, to protect investors and the public interest in that it gives CBOE market participants and investors who enter QCC Orders with multiple legs the same trading increment options as those who enter 7 See Exchange Rule 6.53(u). Exchange Rule 6.42(4)(a). 9 15 U.S.C. 78f(b). 10 15 U.S.C. 78f(b)(5). 8 See VerDate Mar<15>2010 17:58 Apr 15, 2013 Jkt 229001 other types of orders with multiple legs (complex orders). Further, the Exchange believes that ISE permits trading of QCC Orders with multiple legs in $0.01 increments, regardless of the standard increments applicable to simple orders in the options class.11 B. Self-Regulatory Organization’s Statement on Burden on Competition 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. The Exchange does not believe that the proposed rule change will impose an unnecessary burden on intramarket competition because it will apply to all market participants. The Exchange does not believe that the proposed rule change will impose an unnecessary burden on intermarket competition because the Exchange believes that ISE permits trading of QCC orders with multiple legs in $0.01 increments, regardless of the standard increments applicable to simple orders in the options class,12 and therefore the proposed change would put CBOE on an even competitive footing with ISE. 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 Within 45 days of the date of publication of this notice in the Federal Register or within such longer period up to 90 days (i) as the Commission may 11 ISE Rule 721 states that QCC orders ‘‘may only be entered in the regular trading increments applicable to the options class under Rule 710’’ (See ISE Rule 721(b)(2)). ISE Rule 710 states that if an options contract is trading at $3.00 per option or higher, the minimum trading increment is $.10, and if an options contract is trading at less than $3.00 per option, the minimum trading increment is $.05 (See ISE Rule 710). ISE Rule 722(b)(1) states that the leg(s) of a complex order may be executed in one cent increments, regardless of the minimum increments otherwise applicable to the individual legs of the order (See ISE Rule 722(b)(1)). However, the specification in Rule 721(b)(2) that QCC orders ‘‘may only be entered in the regular trading increments applicable to the options class under Rule 710’’ would seem to overrule Rule 722(b)(2)’s statement regarding complex order increments, or at the very least, create a contradiction that requires clarification. Nonetheless, the Exchange has been informed by ISE market participants that ISE permits the trading of trading of [sic] QCC orders with multiple legs in $0.01 increments, regardless of the standard increments applicable to simple orders in the options class. 12 See Footnote 11. PO 00000 Frm 00082 Fmt 4703 Sfmt 4703 designate if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the Exchange consents, the Commission will: A. By order approve or disapprove such proposed rule change, or B. Institute proceedings to determine whether the proposed rule change should be 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 rulecomments@sec.gov. Please include File Number SR–CBOE–2013–041 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–CBOE–2013–041. 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 E:\FR\FM\16APN1.SGM 16APN1 Federal Register / Vol. 78, No. 73 / Tuesday, April 16, 2013 / Notices available publicly. All submissions should refer to File Number SR–CBOE– 2013–041, and should be submitted on or before May 7, 2013. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2013–08865 Filed 4–15–13; 8:45 am] FOR FURTHER INFORMATION CONTACT: Bruce Armstrong, tel. 202–632–9930; armstrongbw@state.gov. Dated: April 10, 2013. Bruce Armstrong, Staff Director for Resources, Office of the Under Secretary for Public Diplomacy and Public Affairs, Department of State. [FR Doc. 2013–08902 Filed 4–15–13; 8:45 am] BILLING CODE 4710–44–P BILLING CODE 8011–01–P TENNESSEE VALLEY AUTHORITY DEPARTMENT OF STATE [Meeting No. 13–02] [Public Notice 8275] Sunshine Act Meetings mstockstill on DSK4VPTVN1PROD with NOTICES The United States Advisory Commission on Public Diplomacy Notice of Charter Renewal April 18, 2013. The Department of State has renewed the charter of the United States Advisory Commission on Public Diplomacy. The Commission was reauthorized by the Congress and the President under Section 1280 Public Law 112–239, signed into law on January 3, 2013. The Commission authorization is retroactive to October 1, 2010, and continues until October 1, 2015. Since 1948, the Commission has been charged with appraising U.S. Government public diplomacy activities (activities intended to understand, inform, and influence foreign publics) and increasing the understanding of and support for these same activities. The Commission submits reports to the Congress, the President, and the Secretary of State on public diplomacy programs and activities; submits other reports as it deems appropriate to the Secretary of State, the President, and the Congress; and makes reports and other information available to the public in the United States and abroad, on the Commission’s Web site or through other means. The Commission consists of seven members appointed by the President, by and with the advice and consent of the Senate. The members of the Commission represent the public interest and are be selected from a cross section of educational, communications, cultural, scientific, technical, public service, labor, business, and professional backgrounds. Not more than four members can be from any one political party. The current members of the Commission are: William J. Hybl (Chairman), Sim Farar (Vice Chairman), Lyndon L. Olson, Penne Korth Peacock, Lezlee Westine, and Anne Terman Wedner. One position is vacant. 13 17 CFR 200.30–3(a)(12). VerDate Mar<15>2010 17:58 Apr 15, 2013 Jkt 229001 The TVA Board of Directors will hold a public meeting on April 18, 2013, in the Cherry Theater of the Waymon L. Hickman Building, Columbia State Community College, 1665 Hampshire Pike, Columbia, Tennessee. The public may comment on any agenda item or subject at a public listening session which begins at 9 a.m. (CT). Following the end of the public listening session, the meeting will be called to order to consider the agenda items listed below. On-site registration will be available until 15 minutes before the public listening session begins at 9 a.m. (CT). Preregistered speakers will address the Board first. TVA management will answer questions from the news media following the Board meeting. Status: Open. Agenda Chairman’s Welcome Old Business Approval of minutes of February 14, 2013, Board Meeting New Business 1. Report from President and CEO 2. Report of the People and Performance Committee 3. Report of the External Relations Committee A. Stakeholder input on regional energy resource issues 4. Report of the Nuclear Oversight Committee 5. Report of the Finance, Rates, and Portfolio Committee A. Supplement to contract with Day and Zimmerman NPS, Inc., for generation modifications and supplemental maintenance services B. Ownership and financing arrangements for Southaven combined cycle plant 6. Report of the Audit, Risk, and Regulation Committee A. TVA regulatory policy PO 00000 Frm 00083 Fmt 4703 Sfmt 4703 22593 7. Information Item A. Clarification of Chief Executive Officer’s authority to set compensation of managerial direct reports consistent with Board approved compensation plan FOR MORE INFORMATION: Please call TVA Media Relations at (865) 632–6000, Knoxville, Tennessee. People who plan to attend the meeting and have special needs should call (865) 632–6000. Anyone who wishes to comment on any of the agenda in writing may send their comments to: TVA Board of Directors, Board Agenda Comments, 400 West Summit Hill Drive, Knoxville, Tennessee 37902. Dated: April 11, 2013. Ralph E. Rodgers, General Counsel and Secretary. [FR Doc. 2013–08989 Filed 4–12–13; 11:15 am] BILLING CODE 8120–08–P OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE Generalized System of Preferences (GSP): Initiation of a Review of the Union of Burma and the Lao People’s Democratic Republic for Possible Designation as Beneficiary Developing Countries Office of the United States Trade Representative. ACTION: Notice and request for submissions. AGENCY: SUMMARY: This notice announces (1) the initiation of reviews to consider designation of the Union of Burma (Burma) and the Lao People’s Democratic Republic (Laos) as beneficiary developing countries under the GSP program, and, if designated, whether either country should also be designated as a least-developed beneficiary developing country under GSP, and (2) the schedule for public comments and a public hearing relating to whether Burma and/or Laos meet the criteria for both designations. FOR FURTHER INFORMATION CONTACT: Tameka Cooper, GSP Program, Office of the United States Trade Representative, 600 17th Street NW., Room 422, Washington, DC 20508. The telephone number is (202) 395–6971, the fax number is (202) 395–9674, and the email address is Tameka_Cooper@ustr.eop.gov. May 17, 2013: Deadline for submission of comments, pre-hearing briefs, and requests to appear at the June 4, 2013 public hearing; submissions must be received by 5:00 p.m. DATES: E:\FR\FM\16APN1.SGM 16APN1

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[Federal Register Volume 78, Number 73 (Tuesday, April 16, 2013)]
[Notices]
[Pages 22591-22593]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-08865]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69360; File No. SR-CBOE-2013-041]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing of a Proposed Rule Change To Amend Rule 
6.53

April 10, 2013.
    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 March 28, 2013, Chicago Board Options Exchange, Incorporated 
(the ``Exchange'' 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The Exchange proposes to amend Rule 6.53--Certain Types of Orders 
Defined. 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 the 
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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend its definition of a Qualified 
Contingent Cross (``QCC'') Order. A QCC Order is an order to buy (or 
sell) at least 1,000 standard option contracts or 10,000 mini-option 
contracts \3\ that is identified as being part of a qualified 
contingent trade \4\ coupled with a contra-side order to sell (or buy) 
an equal number of contracts. QCC Orders were initially adopted by the 
International Securities Exchange, LLC (``ISE'') and approved by the 
Commission.\5\ The Exchange opposed the ISE proposal and the adoption 
of QCC Orders, but for competitive reasons elected to adopt QCC Order 
rules on CBOE.\6\ The rules the Exchange adopted regarding QCC Orders 
were explicit in stating that QCC

[[Page 22592]]

Orders may only be entered in the standard increments applicable to 
simple orders in the options class under Exchange Rule 6.42--Minimum 
Increments of Bids and Offers.\7\ In effect, this language limits the 
entry of QCC Orders to $0.10, $0.05, or $0.01 increments, with the 
increment of trading being the standard trading increment applicable to 
simple orders in the individual option series in question, regardless 
of whether there are one or multiple options legs of the QCC Order.
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    \3\ The Exchange added language regarding mini-options due to 
the beginning of trading of mini-options. See SR-CBOE-2013-036, 
available at https://www.cboe.com/publish/RuleFilingsSEC/SR-CBOE-2013-036.pdf.
    \4\ A ``qualified contingent trade'' is a transaction consisting 
of two or more component orders, executed as agent or principal, 
where: (1) At least one component is an NMS stock, as defined in 
Rule 600 of Regulation NMS under the Exchange Act; (2) all 
components are effected with a product or price contingency that 
either has been agreed to by all the respective counterparties or 
arranged for by a broker-dealer as principal or agent; (3) the 
execution of one component is contingent upon the execution of all 
other components at or near the same time; (4) the specific 
relationship between the component orders (e.g., the spread between 
the prices of the component orders) is determined by the time the 
contingent order is placed; (5) the component orders bear a 
derivative relationship to one another, represent different classes 
of shares of the same issuer, or involve the securities of 
participants in mergers or with intentions to merge that have been 
announced or cancelled; and (6) the transaction is fully hedged 
(without regard to any prior existing position) as a result of other 
components of the contingent trade. See CBOE Rule 6.53(u)(i).
    \5\ ISE first proposed to adopt a qualified contingent cross 
order type through SR-ISE-2009-35. This proposal was approved by the 
Commission's Division of Trading and Markets (the ``Division'') 
pursuant to delegated authority on August 28, 2009, Securities 
Exchange Act Release No. 60584 (August 28, 2009), 74 FR 45663 
(September 3, 2009) (SR-ISE-2009-35), but this approval was stayed 
by a CBOE petition seeking full Commission review. See Letters from 
Joanne Moffic-Silver, General Counsel and Corporate Secretary, CBOE, 
dated September 4 and 14, 2009. ISE thereafter submitted its 
modified rule change, SR-ISE-2010-73, and a letter requesting that 
the Commission vacate the Division's approval of SR-ISE-2009-35 
simultaneous with the approval of SR-ISE-2010-73. CBOE submitted 
numerous letters objecting to ISE's original and modified qualified 
contingent cross proposals, however, the Commission approved SR-ISE-
2010-73 and set aside SR-ISE-2009-35 on February 24, 2011. See 
Securities Exchange Act Release Nos. 62523 (July 16, 2010), 75 FR 
43211 (July 23, 2010) (SR-ISE-2010-73) (ISE Proposal), 63955 
(February 24, 2011) (SR-ISE-2010-73) (ISE Approval), and 69354 
(February 24, 2011) (SR-ISE-2009-35); see also, e.g., CBOE comment 
letters and materials dated July 16, 2009, September 4, 2009, 
September 14, 2009, September 17, 2009, December 3, 2009, January 
20, 2010, April 7, 2010, and April 9, 2010.
    \6\ See Securities Exchange Act Releases Nos. 64354 (April 27, 
2011), 76 FR 25392 (May 4, 2011) (SR-CBOE-2011-041) and 64653 (June 
13, 2011), 76 FR 35491 (June 17, 2011) (SR-CBOE-2011-041).
    \7\ See Exchange Rule 6.53(u).
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    Rule 6.42 permits the entry of legs of a complex order in $0.01 
increments (regardless of the standard trading increment applicable to 
the options class of each leg).\8\ This would allow for QCC Orders with 
multiple legs to be traded in $0.01 increments (regardless of the 
standard trading increment applicable to the options class of each 
leg), were it not for the above-referenced language that limits the 
entry of QCC Orders to the standard increments applicable to simple 
orders in the options class of each leg. As such, the Exchange proposes 
to amend its definition of a QCC Order to state that such orders with 
one option leg may only be entered in the standard increments 
applicable to simple orders in the options class under Rule 6.42, but 
QCC Orders with more than one option leg may be entered in the 
increments specified for complex orders under Rule 6.42. (which is 
$0.01 increments). This change would put the trading of QCC Orders with 
multiple legs on the same footing as the trading of other types of 
complex orders.
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    \8\ See Exchange Rule 6.42(4)(a).
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2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Act and the rules and regulations thereunder applicable to the 
Exchange and, in particular, the requirements of Section 6(b) of the 
Act.\9\ Specifically, the Exchange believes the proposed rule change is 
consistent with the Section 6(b)(5) \10\ requirements that the rules of 
an exchange be designed to promote just and equitable principles of 
trade, to prevent fraudulent and manipulative acts, to remove 
impediments to and to perfect the mechanism for a free and open market 
and a national market system, and, in general, to protect investors and 
the public interest in that it gives CBOE market participants and 
investors who enter QCC Orders with multiple legs the same trading 
increment options as those who enter other types of orders with 
multiple legs (complex orders). Further, the Exchange believes that ISE 
permits trading of QCC Orders with multiple legs in $0.01 increments, 
regardless of the standard increments applicable to simple orders in 
the options class.\11\
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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
    \11\ ISE Rule 721 states that QCC orders ``may only be entered 
in the regular trading increments applicable to the options class 
under Rule 710'' (See ISE Rule 721(b)(2)). ISE Rule 710 states that 
if an options contract is trading at $3.00 per option or higher, the 
minimum trading increment is $.10, and if an options contract is 
trading at less than $3.00 per option, the minimum trading increment 
is $.05 (See ISE Rule 710). ISE Rule 722(b)(1) states that the 
leg(s) of a complex order may be executed in one cent increments, 
regardless of the minimum increments otherwise applicable to the 
individual legs of the order (See ISE Rule 722(b)(1)). However, the 
specification in Rule 721(b)(2) that QCC orders ``may only be 
entered in the regular trading increments applicable to the options 
class under Rule 710'' would seem to overrule Rule 722(b)(2)'s 
statement regarding complex order increments, or at the very least, 
create a contradiction that requires clarification. Nonetheless, the 
Exchange has been informed by ISE market participants that ISE 
permits the trading of trading of [sic] QCC orders with multiple 
legs in $0.01 increments, regardless of the standard increments 
applicable to simple orders in the options class.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    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. The Exchange does not believe 
that the proposed rule change will impose an unnecessary burden on 
intramarket competition because it will apply to all market 
participants. The Exchange does not believe that the proposed rule 
change will impose an unnecessary burden on intermarket competition 
because the Exchange believes that ISE permits trading of QCC orders 
with multiple legs in $0.01 increments, regardless of the standard 
increments applicable to simple orders in the options class,\12\ and 
therefore the proposed change would put CBOE on an even competitive 
footing with ISE.
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    \12\ See Footnote 11.
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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

    Within 45 days of the date of publication of this notice in the 
Federal Register or within such longer period up to 90 days (i) as the 
Commission may designate if it finds such longer period to be 
appropriate and publishes its reasons for so finding or (ii) as to 
which the Exchange consents, the Commission will:
    A. By order approve or disapprove such proposed rule change, or
    B. Institute proceedings to determine whether the proposed rule 
change should be 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-2013-041 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-CBOE-2013-041. 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

[[Page 22593]]

available publicly. All submissions should refer to File Number SR-
CBOE-2013-041, and should be submitted on or before May 7, 2013.
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    \13\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-08865 Filed 4-15-13; 8:45 am]
BILLING CODE 8011-01-P
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