Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to CBSX Appendix A, 62775-62777 [2013-24548]
Download as PDF
Federal Register / Vol. 78, No. 204 / Tuesday, October 22, 2013 / Notices
Paper Comments
Pricing Schedule as well as any easy
means to access the FLEX transaction
fees.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange 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 as the
amendment is non-substantive and
merely serves to add a reference to the
Table of Contents which was
inadvertently not amended in a prior
rule change.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Pursuant to Section 19(b)(3)(A) of the
Act 8 and Rule 19b–4(f)(3) 9 thereunder,
the Exchange has designated this
proposal as one that is concerned solely
with the administration of the selfregulatory organization, and therefore
has become effective.
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 shall institute proceedings
to determine whether the proposed rule
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:
• 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–Phlx–2013–96. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml ). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
offices of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–Phlx–
2013–96, and should be submitted on or
before November 12, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–24640 Filed 10–21–13; 8:45 am]
BILLING CODE 8011–01–P
sroberts on DSK5SPTVN1PROD with FRONT MATTER
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–
Phlx–2013–96 on the subject line.
8 15
9 17
VerDate Mar<15>2010
21:08 Oct 21, 2013
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70590; File No. SR–CBOE–
2013–092]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Relating to CBSX
Appendix A
October 1, 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
September 23, 2013, Chicago Board
Options Exchange, Incorporated
(‘‘Exchange’’ or ‘‘CBOE’’) 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Appendix A in the CBOE Stock
Exchange, LLC’s (‘‘CBSX’’) Rules. 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
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(3).
10 17
Jkt 232001
PO 00000
CFR 200.30–3(a)(12).
Frm 00193
Fmt 4703
Sfmt 4703
62775
2 17
E:\FR\FM\22OCN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
22OCN1
62776
Federal Register / Vol. 78, No. 204 / Tuesday, October 22, 2013 / Notices
sroberts on DSK5SPTVN1PROD with FRONT MATTER
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
By way of background, CBSX (CBOE’s
facility for trading non-option
securities) rules are generally contained
within Chapters 50 through 54 of the
CBOE rulebook. Trading of non-option
securities on CBSX is also subject to the
rules in Chapters 1 through 29 to the
same extent such rules apply to the
trading of the products to which those
rules apply, in some cases
supplemented by the rules in Chapters
50 through 54, except for rules that have
been replaced by rules in Chapters 50
through 54 and except where the
context otherwise requires. Appendix A
to Chapters 50 through 54 lists the rules
in Chapters 1 through 29 that are
applicable to trading on CBSX. Where
appropriate, Appendix A also indicates
that a rule in Chapter 1 through 29 has
been supplemented by a rule in Chapter
50 through 54.3
In that regard, Appendix A of the
CBSX rules currently references CBOE
Rule 3.9, as supplemented by CBSX
Rule 50.4. CBOE Rule 3.9(g) currently
states, in relevant part, that any person
applying pursuant to paragraph (a) of
the rule to ‘‘have an authorized trading
function is required to have completed
the Exchange’s Trading Permit Holder
Orientation Program and to have passed
an Exchange Trading Permit Holder
Qualification Exam.’’ Because Appendix
A of the CBSX rules contains a crossreference to CBOE Rule 3.9 (as
supplemented by CBSX Rule 50.4) 4,
Rule 3.9 is applicable to CBSX Trading
Permit Holder (‘‘TPH’’) applicants as
well. The CBOE Registration Services
Department historically, however, has
not required this orientation or
examination for CBSX TPH applicants
that will not be engaging in options
trading as both the orientation program
and the examination referenced in
paragraph (g) of Rule 3.9 are focused
upon options trading on CBOE (not nonoption securities).
As such, the Exchange is proposing to
add text to the CBSX Appendix A to
make clear that CBOE Rule 3.9(g) is not
applicable to CBSX TPH applicants that
will not engage in options trading on the
Exchange. Specifically, the Exchange is
proposing to add text to CBSX
Appendix A to explicitly state the
3 See Introduction to CBSX Rules, Chapters 50
through 54.
4 CBSX Rule 50.4 relates to Trading Access to the
CBSX System, and, thus, does not supplement the
requirements specifically related to CBOE Rule
3.9(g).
VerDate Mar<15>2010
21:08 Oct 21, 2013
Jkt 232001
applicable subparagraphs of 3.9(g) that
are applicable to CBSX TPH applicants.
The Exchange believes this proposal is
appropriate as the orientation program
and examination referenced in CBOE
3.9(g) is focused on options trading.
Thus, the Exchange believes it is
appropriate to continue to administer
the orientation and examination to
CBOE TPH applicants but not to CBSX
TPH applicants.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’) and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.5 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 6 requirements that the rules of
an exchange be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and 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.
Additionally, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 7 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
In particular, the Exchange believes
that the proposed rule filing will more
specifically state the requirements for
CBSX applicants along with codify
existing Exchange practices. The
Exchange believes the proposed change
is consistent with the Act in that it
continues to require the options focused
TPH Qualification Examination and
associated orientation program for
CBOE applicants applying to engage in
options trading but not for CBSX
applicants applying to the Exchange to
engage in trading of non-option
securities. In addition, the proposed
filing is not unfairly discriminating
because it will be applied to all
similarly situated TPH applicants who
are solely trading on CBSX.
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. In particular,
the Exchange does not believe that the
proposed rule filing will place any
burden on intramarket competition
because it will be applied equally to
similarly situated applicants that are
applying to only engage in non-options
trading on CBSX. The Exchange does
not believe the proposed rule filing will
place any burden on intermarket
competition because it is merely
codifying a current Exchange practice.
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
Because the foregoing proposed rule
does not: (i) Significantly affect the
protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 8 and Rule 19b–4(f)(6)
thereunder.
The Exchange has requested that the
Commission waive the 30-day operative
delay because the rule change would
codify an existing Exchange practice
and reduce confusion for associated
persons of TPHs and regulators. The
Commission designates the proposal
operative upon filing because it will
align CBSX’s rules with its existing
practice of not requiring CBSX TPH
applicants to complete either the TPH
orientation program or the TPH exam.9
At any time within 60 days of the
filing of this 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
8 15
U.S.C. 78s(b)(3)(A).
purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
9 For
5 15
U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(5).
7 Id.
PO 00000
Frm 00194
Fmt 4703
Sfmt 4703
E:\FR\FM\22OCN1.SGM
22OCN1
Federal Register / Vol. 78, No. 204 / Tuesday, October 22, 2013 / Notices
Commission takes such action, the
Commission will institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Kevin M. O’Neill,
Deputy Secretary.
IV. Solicitation of Comments
[FR Doc. 2013–24548 Filed 10–21–13; 8:45 am]
BILLING CODE 8011–01–P
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–2013–092 on the subject line.
sroberts on DSK5SPTVN1PROD with FRONT MATTER
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–2013–092. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
office of the CBOE. 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–
2013–092 and should be submitted on
or before November 12, 2013.
VerDate Mar<15>2010
21:08 Oct 21, 2013
Jkt 232001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70623; File No. SR–BYX–
2013–037]
Self-Regulatory Organizations; BATS
Y-Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Rule
Change To Add a Reference to Rule
10C–1 Under the Exchange Act in the
Exchange’s Rules Concerning Unlisted
Trading Privileges
October 8, 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 October
3, 2013, BATS Y-Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BYX’’) filed with the
Securities and Exchange Commission
(‘‘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 filed a proposal add
language to Rule 14.1, entitled
‘‘Unlisted Trading Privileges,’’ that will
make clear that the Exchange will not
list equity securities without first
ensuring that its rules comply with Rule
10C–1 under the Act (‘‘Rule 10C–1’’).3
The text of the proposed rule change
is available at the Exchange’s Web site
at https://www.batstrading.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 17 CFR 240.10C–1.
1 15
PO 00000
Frm 00195
Fmt 4703
Sfmt 4703
62777
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 parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange is proposing to add
language to Rule 14.1, which will clarify
the fact that the Exchange will not list
equity securities without first ensuring
that Exchange Rules comply with Rule
10C–1, as described below.4
On March 30, 2011, to implement
Section 10C of the Act,5 as added by
Section 952 of the Dodd-Frank Wall
Street Reform and Consumer Protection
Act of 2010 (‘‘Dodd-Frank Act’’),6 the
Commission proposed Rule 10C–1
under the Act,7 which directs each
national securities exchange to prohibit
the listing of any equity security of any
issuer, with certain exceptions, that
does not comply with the rule’s
requirements regarding compensation
committees of listed issuers and related
requirements regarding compensation
advisers. On June 20, 2012, the
Commission adopted Rule 10C–1.8 Rule
10C–1 obligates the Exchange to
establish listing standards that require
each member of a listed issuer’s
compensation committee to be a
member of the issuer’s board and to be
independent, as well as establish certain
factors that an issuer must consider
when evaluating the independence of a
director.9 Rule 10C–1 also requires the
Exchange to establish standards for
evaluating the independence of a
compensation consultant, legal counsel,
or other adviser (‘‘Compensation
Consultant’’) and requires a Company to
provide funding to a compensation
committee to retain such Compensation
Consultant.10
The Exchange does not currently list
any securities as a primary listing
market. Consistent with this fact,
Exchange Rule 14.1 currently states that
4 17
CFR 240.10C–1.
U.S.C. 78j–3.
6 Public Law 111–203, 124 Stat. 1900 (2010).
7 See Securities Act Release No. 9199, Securities
Exchange Act Release No. 64149 (March 30, 2011),
76 FR 18966 (April 6, 2011) (‘‘Rule 10C–1
Proposing Release’’).
8 See Securities Act Release No. 9330, Securities
Exchange Act Release No. 67220 (June 20, 2012), 77
FR 38422 (June 27, 2012) (‘‘Rule 10C–1 Adopting
Release’’).
9 17 CFR 240.10C–1.
10 Id.
5 15
E:\FR\FM\22OCN1.SGM
22OCN1
Agencies
[Federal Register Volume 78, Number 204 (Tuesday, October 22, 2013)]
[Notices]
[Pages 62775-62777]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-24548]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70590; File No. SR-CBOE-2013-092]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change Relating to CBSX Appendix A
October 1, 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 September 23, 2013, Chicago Board Options Exchange,
Incorporated (``Exchange'' or ``CBOE'') 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.
---------------------------------------------------------------------------
\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 amend Appendix A in the CBOE Stock
Exchange, LLC's (``CBSX'') Rules. 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.
[[Page 62776]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
By way of background, CBSX (CBOE's facility for trading non-option
securities) rules are generally contained within Chapters 50 through 54
of the CBOE rulebook. Trading of non-option securities on CBSX is also
subject to the rules in Chapters 1 through 29 to the same extent such
rules apply to the trading of the products to which those rules apply,
in some cases supplemented by the rules in Chapters 50 through 54,
except for rules that have been replaced by rules in Chapters 50
through 54 and except where the context otherwise requires. Appendix A
to Chapters 50 through 54 lists the rules in Chapters 1 through 29 that
are applicable to trading on CBSX. Where appropriate, Appendix A also
indicates that a rule in Chapter 1 through 29 has been supplemented by
a rule in Chapter 50 through 54.\3\
---------------------------------------------------------------------------
\3\ See Introduction to CBSX Rules, Chapters 50 through 54.
---------------------------------------------------------------------------
In that regard, Appendix A of the CBSX rules currently references
CBOE Rule 3.9, as supplemented by CBSX Rule 50.4. CBOE Rule 3.9(g)
currently states, in relevant part, that any person applying pursuant
to paragraph (a) of the rule to ``have an authorized trading function
is required to have completed the Exchange's Trading Permit Holder
Orientation Program and to have passed an Exchange Trading Permit
Holder Qualification Exam.'' Because Appendix A of the CBSX rules
contains a cross-reference to CBOE Rule 3.9 (as supplemented by CBSX
Rule 50.4) \4\, Rule 3.9 is applicable to CBSX Trading Permit Holder
(``TPH'') applicants as well. The CBOE Registration Services Department
historically, however, has not required this orientation or examination
for CBSX TPH applicants that will not be engaging in options trading as
both the orientation program and the examination referenced in
paragraph (g) of Rule 3.9 are focused upon options trading on CBOE (not
non-option securities).
---------------------------------------------------------------------------
\4\ CBSX Rule 50.4 relates to Trading Access to the CBSX System,
and, thus, does not supplement the requirements specifically related
to CBOE Rule 3.9(g).
---------------------------------------------------------------------------
As such, the Exchange is proposing to add text to the CBSX Appendix
A to make clear that CBOE Rule 3.9(g) is not applicable to CBSX TPH
applicants that will not engage in options trading on the Exchange.
Specifically, the Exchange is proposing to add text to CBSX Appendix A
to explicitly state the applicable subparagraphs of 3.9(g) that are
applicable to CBSX TPH applicants. The Exchange believes this proposal
is appropriate as the orientation program and examination referenced in
CBOE 3.9(g) is focused on options trading. Thus, the Exchange believes
it is appropriate to continue to administer the orientation and
examination to CBOE TPH applicants but not to CBSX TPH applicants.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\5\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \6\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and 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. Additionally,
the Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \7\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
\7\ Id.
---------------------------------------------------------------------------
In particular, the Exchange believes that the proposed rule filing
will more specifically state the requirements for CBSX applicants along
with codify existing Exchange practices. The Exchange believes the
proposed change is consistent with the Act in that it continues to
require the options focused TPH Qualification Examination and
associated orientation program for CBOE applicants applying to engage
in options trading but not for CBSX applicants applying to the Exchange
to engage in trading of non-option securities. In addition, the
proposed filing is not unfairly discriminating because it will be
applied to all similarly situated TPH applicants who are solely trading
on CBSX.
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. In particular, the Exchange
does not believe that the proposed rule filing will place any burden on
intramarket competition because it will be applied equally to similarly
situated applicants that are applying to only engage in non-options
trading on CBSX. The Exchange does not believe the proposed rule filing
will place any burden on intermarket competition because it is merely
codifying a current Exchange practice.
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
Because the foregoing proposed rule does not: (i) Significantly
affect the protection of investors or the public interest; (ii) impose
any significant burden on competition; and (iii) become operative for
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-
4(f)(6) thereunder.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A).
---------------------------------------------------------------------------
The Exchange has requested that the Commission waive the 30-day
operative delay because the rule change would codify an existing
Exchange practice and reduce confusion for associated persons of TPHs
and regulators. The Commission designates the proposal operative upon
filing because it will align CBSX's rules with its existing practice of
not requiring CBSX TPH applicants to complete either the TPH
orientation program or the TPH exam.\9\
---------------------------------------------------------------------------
\9\ For purposes only of waiving the 30-day operative delay, the
Commission has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
---------------------------------------------------------------------------
At any time within 60 days of the filing of this 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
[[Page 62777]]
Commission takes such action, the Commission will institute proceedings
to determine whether the proposed rule change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-CBOE-2013-092 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-2013-092. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of the CBOE. 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-2013-092 and should be
submitted on or before November 12, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-24548 Filed 10-21-13; 8:45 am]
BILLING CODE 8011-01-P