Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Complex Order Router Subsidy Program, 28906-28908 [2013-11676]
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28906
Federal Register / Vol. 78, No. 95 / Thursday, May 16, 2013 / Notices
affiliated person of a registered
investment company or an affiliated
person of such person, acting as
principal, from participating in or
effecting any transaction in connection
with any joint enterprise or joint
arrangement in which the investment
company participates unless the
Commission issues an order permitting
the transaction. In reviewing
applications submitted under section
17(d) and rule 17d–1, the Commission
considers whether the participation of
the investment company in a joint
enterprise or joint arrangement is
consistent with the provisions, policies
and purposes of the Act, and the extent
to which the participation is on a basis
different from or less advantageous than
that of other participants.
6. Rule 17d–3 under the Act provides
an exemption from section 17(d) and
rule 17d–1 to permit open-end
investment companies to enter into
distribution arrangements pursuant to
rule 12b–1 under the Act. Applicants
request an order under section 17(d) and
rule 17d–1 under the Act to permit the
Feeder Fund to impose asset-based
service and/or distribution fees.
Applicants have agreed to comply with
rules 12b–1 and 17d–3 as if those rules
applied to closed-end investment
companies.
Applicants’ Condition
Applicants agree that any order
granting the requested relief will be
subject to the following condition:
Applicants will comply with the
provisions of rules 6c–10, 12b–1, 17d–
3, 18f–3 and 22d–1 under the Act, as
amended from time to time or replaced,
as if those rules applied to closed-end
management investment companies,
and will comply with NASD Conduct
Rule 2830, as amended from time to
time, as if that rule applied to all closedend management investment
companies.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–11605 Filed 5–15–13; 8:45 am]
tkelley on DSK3SPTVN1PROD with NOTICES
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–69560; File No. SR–CBOE–
2013–050]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Relating to the Complex
Order Router Subsidy Program
May 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 May 8,
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 Substance of
the Proposed Rule Change
The Exchange proposes to adopt an
additional qualification requirement to
participate in CBOE’s Complex Order
Router Subsidy Program. 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.
1 15
2 17
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Jkt 229001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00111
Fmt 4703
Sfmt 4703
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
On March 8, 2013, CBOE established
the Complex Order Router Subsidy
Program (the ‘‘CORS Program’’ or
‘‘Program’’) which allows CBOE to enter
into subsidy arrangements with any
CBOE Trading Permit Holder (‘‘TPH’’)
(each, a ‘‘Participating TPH’’) or NonCBOE TPH broker-dealer (each a
‘‘Participating Non-CBOE TPH’’) that
provide certain order routing
functionalities to other CBOE TPHs,
Non-CBOE TPHs and/or use such
functionalities themselves.3 (The term
‘‘Participant’’ as used in this filing refers
to either a Participating TPH or a
Participating Non-CBOE TPH).
Specifically, CBOE TPHs and non-CBOE
TPHs that participate in the CORS
Program receive a payment from CBOE
for every executed contract for complex
orders routed to CBOE through their
system. The purpose of this proposed
change is to add an additional feature
that a Participant’s order routing
functionality must have to qualify for
the Program.
SR–CBOE–2013–032 includes a
description of the features that an order
routing functionality of a Participant
must have, and the performance
requirements that the order routing
functionality must satisfy, in order to
qualify for the program.4 Any CBOE
TPH or broker-dealer that is not a CBOE
TPH is permitted to avail itself of this
arrangement, provided that its order
routing functionality incorporates the
features required in SR–CBOE–2013–
032. In addition to the features
described in SR–CBOE–2013–032, the
Exchange is proposing to require a
Participant’s order routing functionality
to provide current consolidated market
data for complex orders from the U.S.
options exchanges that offer complex
order execution systems in order for the
Participant to qualify to participate in
the Program. A Participant shall have
forty-five (45) days from the date that an
exchange launches trading of complex
orders to provide that exchange’s market
data for complex orders as part of its
3 See Securities Exchange Act Release No. 69203
(March 21, 2013), 78 FR 18655 (March 27, 2013)
(SR–CBOE–2013–032).
4 SR–CBOE–2013–032, pp. 5–7. The primary
functional requirements under the CORS Program
are that an order routing functionality has to: (i) be
capable of interfacing with CBOE’s API to access
current CBOE trade engine functionality and (ii)
cause CBOE to be the default destination exchange
for complex orders, but allow any user to manually
override CBOE as the default destination on an
order-by-order basis.
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Federal Register / Vol. 78, No. 95 / Thursday, May 16, 2013 / Notices
tkelley on DSK3SPTVN1PROD with NOTICES
order routing functionality for any
exchange that does not yet exist or that
does not offer complex order execution
systems as of May 6, 2013.
Nothing in the proposed subsidy
arrangement relieves any CBOE TPH or
non-CBOE TPH broker-dealer that is
using an order routing functionality
whose provider is participating in the
CORS Program (‘‘Users’’) from
complying with its best execution
obligations. Just as with any customer
order and any other routing
functionality, both a CBOE TPH and a
non-CBOE TPH broker dealer have an
obligation to consider the availability of
price improvement at various markets
and whether routing a customer order
through a functionality that incorporates
the features described above would
allow for access to such opportunities if
readily available. The Exchange
recognizes that, unlike simple, noncomplex orders, there is no NBBO for
complex orders and an exception from
the prohibition on trade-throughs is
provided for any transaction that is
effected as a portion of a complex
order.5 The Exchange believes that the
proposed additional requirement to
provide consolidated market data for
complex orders provides an additional
tool for Users to assess the availability
of price improvement at other markets
and therefore facilitates compliance
with their best execution obligations.
Finally, any User, whether or not a
CBOE TPH, needs to conduct best
execution evaluations on a regular basis,
at a minimum quarterly, that include its
use of any router incorporating the
features described above.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the
Securities Exchange Act of 1934
(‘‘Act’’), in general. Specifically, the
Exchange believes the proposed rule
change is consistent with Section 6(b)(4)
of the Act,6 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. Additionally, the Exchange
believes the proposed rule change is
consistent with the Section 6(b)(5) 7
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
5 See
CBOE Rule 6.81(b)(7).
U.S.C. 78f(b)(4).
7 15 U.S.C. 78f(b)(5).
6 15
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18:13 May 15, 2013
Jkt 229001
system, and, in general, to protect
investors and the public interest.
In particular, the proposed rule
change ensures that CBOE TPHs and
non-CBOE TPH broker dealers that use
a Participant’s order router functionality
are provided current consolidated
market data for complex orders, which
lets them assess the availability of price
improvement at other markets. This
information facilitates a User’s
compliance with its best execution
obligations, thereby enhancing investor
protection and promoting just and
equitable principles of trade.
In addition, the Exchange believes
that this proposed change is not unfairly
discriminatory because the proposed
additional requirement is applicable to
every Participating CBOE TPH and
Participating Non-CBOE TPH.
Additionally, every user of a
Participant’s order routing functionality
would be receiving the consolidated
market data for complex orders. Finally,
any CBOE TPH or broker-dealer that is
not a CBOE TPH may participate in the
CORS Program, provided that its
complex order routing functionality
incorporates the requirements set forth
in SR–CBOE–2013–032 and above.
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 change will impose an
unnecessary burden on intramarket
competition because it will apply
equally to all participating parties.
Additionally, the Exchange believes the
proposed rule change will reduce the
burdens on investors who use a
Participant’s order routing functionality
that result from having to comply with
best execution obligations, as they will
not themselves individually receive
market data for complex orders from
each exchange that offers complex order
execution systems. 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
Exchange notes that, should the
proposed changes make CBOE more
attractive for trading, market
participants trading on other exchanges
can always elect to provide order
routing functionality to CBOE for
complex orders or use order routing
functionalities that are a part of the
CORS Program for complex orders.
PO 00000
Frm 00112
Fmt 4703
Sfmt 4703
28907
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 8 and paragraph (f) of Rule
19b–4 9 thereunder. At any time within
60 days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission will institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
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–2013–050 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–2013–050. 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
8 15
9 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
E:\FR\FM\16MYN1.SGM
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28908
Federal Register / Vol. 78, No. 95 / Thursday, May 16, 2013 / Notices
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–
2013–050, and should be submitted on
or before June 6, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–11676 Filed 5–15–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–69555; File No. SR–Phlx–
2013–45]
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
Pricing for Mini Options
May 10, 2013.
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 April 29,
2013, NASDAQ OMX PHLX LLC
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) a proposed
rule change as described in Items I, II,
and III, below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Section A of the Exchange’s Pricing
Schedule entitled ‘‘Mini Options Fees’’.
While changes to the Pricing Schedule
pursuant to this proposal are effective
upon filing, the Exchange has
designated that they become operative
on May 1, 2013.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://nasdaqomxphlx.
Customer
tkelley on DSK3SPTVN1PROD with NOTICES
Mini Options Transaction Fee—Electronic Adding Liquidity
Mini Options Transaction Fee—Electronic Removing Liquidity ...............................................................................
Mini Options Transaction Fee—Floor and QCC .................
Additionally, for executions that
occur as part of PIXL, the following fees
and rebates will apply: (i) Initiating
Order: $0.015 per contract; (ii) PIXL
Order (contra-party to the Initiating
Order): Customer is $0.00 and all others
will be assessed will be assessed a
transaction fee of $0.03 per contract;
and (iii) PIXL Order (contra-party to
other than the Initiating Order):
Customer will be assessed a transaction
fee of $0.00 and all others will be
assessed a transaction fee of $0.03 per
contract (the contra-party will be
10 17
1 15
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
VerDate Mar<15>2010
18:13 May 15, 2013
Professional
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to amend Section A of the
Pricing Schedule by updating various
existing transaction fees for NonCustomers for both adding and
removing liquidity. Additionally, the
proposed rule change will also establish
fees and rebates applicable for order
executions that are part of PIXL.3
Specifically, the Exchange is
proposing to assess market participants
on a per trade basis the following fees
and rebates on Mini Options:
Specialist and
market maker
Broker-dealer
Firm
$0.02
$0.03
$0.03
0.00
0.00
0.09
0.09
0.04
0.09
0.09
0.09
0.09
0.09
CFR 240.19b–4.
is the Exchange’s price improvement
mechanism known as Price Improvement XL or
3 PIXL
Frm 00113
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.
$0.03
assessed a transaction fee of $0.03 per
contract).
PFOF fees will be as follows: (i)
Penny Pilot Options: $0.02; and (ii) all
Other Options: $0.06. Also, Routing
Fees set forth in Section V will now
apply to Mini Options. Other options
transaction fee caps, discounts or
rebates, in addition to the Monthly
Market Maker Cap and the Monthly
Firm Fee Cap set forth in Section II that
already do not apply to transactions in
Mini Options, also now will not apply
to transactions in Mini Options. Finally,
Mini Options volume will now be
PO 00000
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
$0.00
2 17
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cchwallstreet.com, at the principal
office of the Exchange, and at the
Commission’s Public Reference Room.
Fmt 4703
Sfmt 4703
included in the calculations for the
Customer Rebate Program eligibility, but
will not be eligible to receive the rebates
associated with the Customer Rebate
Program.
Transaction Fees. Section A provides
for a ‘‘Mini Options Transaction Fee—
Electronic’’ and for a ‘‘Mini-Options
Transaction Fee—Floor and QCC’’, both
of which apply in the Customer,
Professional, Specialist and Market
Maker, Broker-Dealer and Firm fee
categories. As noted in a previous filing,
‘‘the Exchange is currently setting these
fees at $0.00 but may in the future file
(PIXLSM). See Rule 1080(n) and Section IV of the
Pricing Schedule.
E:\FR\FM\16MYN1.SGM
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Agencies
[Federal Register Volume 78, Number 95 (Thursday, May 16, 2013)]
[Notices]
[Pages 28906-28908]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-11676]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-69560; File No. SR-CBOE-2013-050]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change Relating to the Complex Order Router Subsidy
Program
May 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 May 8, 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to adopt an additional qualification
requirement to participate in CBOE's Complex Order Router Subsidy
Program. 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
On March 8, 2013, CBOE established the Complex Order Router Subsidy
Program (the ``CORS Program'' or ``Program'') which allows CBOE to
enter into subsidy arrangements with any CBOE Trading Permit Holder
(``TPH'') (each, a ``Participating TPH'') or Non-CBOE TPH broker-dealer
(each a ``Participating Non-CBOE TPH'') that provide certain order
routing functionalities to other CBOE TPHs, Non-CBOE TPHs and/or use
such functionalities themselves.\3\ (The term ``Participant'' as used
in this filing refers to either a Participating TPH or a Participating
Non-CBOE TPH). Specifically, CBOE TPHs and non-CBOE TPHs that
participate in the CORS Program receive a payment from CBOE for every
executed contract for complex orders routed to CBOE through their
system. The purpose of this proposed change is to add an additional
feature that a Participant's order routing functionality must have to
qualify for the Program.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 69203 (March 21,
2013), 78 FR 18655 (March 27, 2013) (SR-CBOE-2013-032).
---------------------------------------------------------------------------
SR-CBOE-2013-032 includes a description of the features that an
order routing functionality of a Participant must have, and the
performance requirements that the order routing functionality must
satisfy, in order to qualify for the program.\4\ Any CBOE TPH or
broker-dealer that is not a CBOE TPH is permitted to avail itself of
this arrangement, provided that its order routing functionality
incorporates the features required in SR-CBOE-2013-032. In addition to
the features described in SR-CBOE-2013-032, the Exchange is proposing
to require a Participant's order routing functionality to provide
current consolidated market data for complex orders from the U.S.
options exchanges that offer complex order execution systems in order
for the Participant to qualify to participate in the Program. A
Participant shall have forty-five (45) days from the date that an
exchange launches trading of complex orders to provide that exchange's
market data for complex orders as part of its
[[Page 28907]]
order routing functionality for any exchange that does not yet exist or
that does not offer complex order execution systems as of May 6, 2013.
---------------------------------------------------------------------------
\4\ SR-CBOE-2013-032, pp. 5-7. The primary functional
requirements under the CORS Program are that an order routing
functionality has to: (i) be capable of interfacing with CBOE's API
to access current CBOE trade engine functionality and (ii) cause
CBOE to be the default destination exchange for complex orders, but
allow any user to manually override CBOE as the default destination
on an order-by-order basis.
---------------------------------------------------------------------------
Nothing in the proposed subsidy arrangement relieves any CBOE TPH
or non-CBOE TPH broker-dealer that is using an order routing
functionality whose provider is participating in the CORS Program
(``Users'') from complying with its best execution obligations. Just as
with any customer order and any other routing functionality, both a
CBOE TPH and a non-CBOE TPH broker dealer have an obligation to
consider the availability of price improvement at various markets and
whether routing a customer order through a functionality that
incorporates the features described above would allow for access to
such opportunities if readily available. The Exchange recognizes that,
unlike simple, non-complex orders, there is no NBBO for complex orders
and an exception from the prohibition on trade-throughs is provided for
any transaction that is effected as a portion of a complex order.\5\
The Exchange believes that the proposed additional requirement to
provide consolidated market data for complex orders provides an
additional tool for Users to assess the availability of price
improvement at other markets and therefore facilitates compliance with
their best execution obligations. Finally, any User, whether or not a
CBOE TPH, needs to conduct best execution evaluations on a regular
basis, at a minimum quarterly, that include its use of any router
incorporating the features described above.
---------------------------------------------------------------------------
\5\ See CBOE Rule 6.81(b)(7).
---------------------------------------------------------------------------
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Securities Exchange Act of 1934 (``Act''), in general. Specifically,
the Exchange believes the proposed rule change is consistent with
Section 6(b)(4) of the Act,\6\ 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. Additionally, the Exchange believes the proposed rule
change is consistent with the Section 6(b)(5) \7\ 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.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b)(4).
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
In particular, the proposed rule change ensures that CBOE TPHs and
non-CBOE TPH broker dealers that use a Participant's order router
functionality are provided current consolidated market data for complex
orders, which lets them assess the availability of price improvement at
other markets. This information facilitates a User's compliance with
its best execution obligations, thereby enhancing investor protection
and promoting just and equitable principles of trade.
In addition, the Exchange believes that this proposed change is not
unfairly discriminatory because the proposed additional requirement is
applicable to every Participating CBOE TPH and Participating Non-CBOE
TPH. Additionally, every user of a Participant's order routing
functionality would be receiving the consolidated market data for
complex orders. Finally, any CBOE TPH or broker-dealer that is not a
CBOE TPH may participate in the CORS Program, provided that its complex
order routing functionality incorporates the requirements set forth in
SR-CBOE-2013-032 and above.
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 change will impose an unnecessary burden on
intramarket competition because it will apply equally to all
participating parties. Additionally, the Exchange believes the proposed
rule change will reduce the burdens on investors who use a
Participant's order routing functionality that result from having to
comply with best execution obligations, as they will not themselves
individually receive market data for complex orders from each exchange
that offers complex order execution systems. 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 Exchange notes that, should the proposed
changes make CBOE more attractive for trading, market participants
trading on other exchanges can always elect to provide order routing
functionality to CBOE for complex orders or use order routing
functionalities that are a part of the CORS Program for complex orders.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \8\ and paragraph (f) of Rule 19b-4 \9\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f).
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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-2013-050 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-2013-050. 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
[[Page 28908]]
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-2013-050, and should be submitted on or before June
6, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-11676 Filed 5-15-13; 8:45 am]
BILLING CODE 8011-01-P