Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt the Concept of a “Responsible Person” on the CBOE Stock Exchange, 65741-65743 [2013-26034]

Download as PDF Federal Register / Vol. 78, No. 212 / Friday, November 1, 2013 / Notices including whether the amendment 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 4– 546 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. emcdonald on DSK67QTVN1PROD with NOTICES All submissions should refer to File Number 4–546. 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 amendment that are filed with the Commission, and all written communications relating to the amendment 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 Topaz. 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 4–546 and should be submitted on or before November 22, 2013. By the Commission. Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2013–26073 Filed 10–31–13; 8:45 am] SECURITIES AND EXCHANGE COMMISSION [Release No. 34–70766; File No. SR–CBOE– 2013–101] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt the Concept of a ‘‘Responsible Person’’ on the CBOE Stock Exchange October 28, 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 15, 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 the concept of a ‘‘Responsible Person’’ on its CBOE Stock Exchange (‘‘CBSX’’). 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. BILLING CODE 8011–01–P 1 15 2 17 VerDate Mar<15>2010 17:40 Oct 31, 2013 Jkt 232001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00137 Fmt 4703 Sfmt 4703 65741 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to adopt Rule 53.9—Responsible Persons—to its CBSX rules. The proposed rule is to read: The term ‘‘Responsible Person’’ shall mean an individual designated by a CBSX Trader to represent the CBSX Trader in all matters relating to the Exchange. Each CBSX Trader must designate an individual as the Responsible Person for the CBSX Trader. If a CBSX Trader is an individual (and not an organization), that individual will automatically be designated as the CBSX Trader’s Responsible Person. The Responsible Person must be affiliated with the CBSX Trader. The Responsible Person must be a United States-based officer, director or management-level employee of the CBSX Trader, who is responsible for the direct supervision and control of Associated Persons of that CBSX Trader. The purpose of the adoption of the proposed rule is to have a designated person associated with each CBSX Trader whom CBSX may contact whenever an issue arises regarding that CBSX Trader or CBSX otherwise needs to contact that CBSX Trader. The Responsible Person will serve as CBSX’s person to contact with regards to that CBSX Trader. The Exchange will conduct a background investigation and review of each Responsible Person. This investigation and review may include a fingerprint criminal background check (while a Form U–4 (which includes a fingerprint check) would already have been filed with FINRA for the person, the Exchange may elect to perform another fingerprint check if the Form U– 4 fingerprint check was performed over one year prior to the processing of the Responsible Person application) and the individual’s consent to the Exchange’s jurisdiction over the individual. The investigation may also include the engagement of an outside investigatory firm to look into the Responsible Person’s background, check references, perform a credit check, look into the Responsible Person’s registration, education and regulatory background, and ensure that the Responsible Person is not on any government watch lists. The proposed rule requires that the Responsible Person be affiliated with the CBSX Trader, be a United Statesbased officer, director or managementlevel employee of the CBSX Trader, and be responsible for the direct supervision and control of Associated Persons of that CBSX Trader. These requirements E:\FR\FM\01NON1.SGM 01NON1 65742 Federal Register / Vol. 78, No. 212 / Friday, November 1, 2013 / Notices emcdonald on DSK67QTVN1PROD with NOTICES are in place in order to ensure that the Responsible Person is a person who is affiliated with the CBSX Trader and is a person who has sufficient responsibility and control with the CBSX Trader to be able to effectively participate and assist with CBSX and to work out any issues that may arise, as well as to be a relevant point of contact to ensure that any necessary information that is communicated to the Responsible Person is communicated to anyone else relevant that is involved with the CBSX Trader (and to ensure that CBSX can easily contact the Responsible Person and have jurisdiction over the Responsible Person). 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.3 Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 4 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) 5 requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers. The Exchange also believes the proposed rule change is consistent with Section 6(b)(1) of the Act,6 which provides that the Exchange be organized and have the capacity to be able to carry out the purposes of the Act and to enforce compliance by CBSX Traders and persons associated with CBSX Traders with the Act, the rules and regulations thereunder, and the rules of the Exchange. Requiring each CBSX Trader to identify a Responsible Person will make it easier for CBSX to effectively contact and work out issues with a CBSX Trader. This, in turn, will foster cooperation and coordination with U.S.C. 78f(b). 4 15 U.S.C. 78f(b)(5). 5 Id. 6 15 U.S.C. 78f(b)(1). 17:40 Oct 31, 2013 B. Self-Regulatory Organization’s Statement on Burden on Competition CBOE does not believe that the proposed rule change will impose any burden on intramarket competition that is not necessary or appropriate in furtherance of the purposes of the Act because all CBSX Traders will be required to identify a Responsible Person, so this proposed rule change will be applied equally. CBOE does not believe that the proposed rule change will impose any burden on intermarket competition that is not necessary or appropriate in furtherance of the purposes of the Act because the proposed change only applies to CBSX Traders and CBSX, and does not impact trading or competition between CBSX and other exchanges. 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 change does not: A. significantly affect the protection of investors or the public interest; B. impose any significant burden on competition; and C. become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act 8 and Rule 19b–4(f)(6) 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 7 See C2 Options Exchange, Incorporated (‘‘C2’’) Rules 1.1 (definition of ‘‘Responsible Person’’) and 3.8. 8 15 U.S.C. 78s(b)(3)(A). 9 17 CFR 240.19b–4(f)(6). 3 15 VerDate Mar<15>2010 persons engaged in regulating trading on CBSX and help to ensure compliance by CBSX Traders with Exchange rules. Simplifying contact between CBSX and CBSX Traders will also remove an impediment to and perfect the mechanism of a free and open market and a national market system. All CBSX Traders will be required to identify a Responsible Person, so this proposed rule change will be applied equally. Finally, another exchange has a similar ‘‘Responsible Person’’ requirement.7 Jkt 232001 PO 00000 Frm 00138 Fmt 4703 Sfmt 4703 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 rule-comments@ sec.gov. Please include File Number SR– CBOE–2013–101 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–2013–101. 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 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– E:\FR\FM\01NON1.SGM 01NON1 Federal Register / Vol. 78, No. 212 / Friday, November 1, 2013 / Notices 2013–101 and should be submitted on or before November 22, 2013. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.10 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2013–26034 Filed 10–31–13; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–70762; File No. 4–546] Joint Industry Plan; Notice of Filing and Immediate Effectiveness of Amendment to the Options Order Protection and Locked/Crossed Market Plan To Add the Miami International Securities Exchange, LLC as a Participant October 28, 2013. Pursuant to Section 11A(a)(3) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 608 thereunder,2 notice is hereby given that on December 6, 2012, Miami International Securities Exchange, LLC (‘‘MIAX’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) an amendment to the Options Order Protection and Locked/Crossed Market Plan (‘‘Plan’’).3 The amendment added MIAX as a Participant 4 to the Plan. The Commission is publishing this notice to solicit comments on the amendment from interested persons. I. Description and Purpose of the Amendment The current Participants in the Linkage Plan are BOX Options, C2, 10 17 CFR 200.30–3(a)(12). U.S.C. 78k–1(a)(3). 2 17 CFR 242.608. 3 On July 30, 2009, the Commission approved a national market system plan relating to Options Order Protection and Locked/Crossed Markets proposed by Chicago Board Options Exchange, Incorporated (‘‘CBOE’’), International Securities Exchange, LLC (‘‘ISE’’), The NASDAQ Stock Market LLC (‘‘Nasdaq’’), NASDAQ OMX BX, Inc. (‘‘BOX’’), NASDAQ OMX PHLX, Inc. (‘‘Phlx’’), NYSE Amex, LLC (‘‘NYSE Amex’’), and NYSE Arca, Inc. (‘‘NYSE Arca’’). See Securities Exchange Act Release No. 60405 (July 30, 2009), 74 FR 39362 (August 6, 2009). See also Securities Exchange Act Release Nos. 61546 (February 19, 2010), 75 FR 8762 (February 25, 2010) (adding BATS Exchange, Inc. (‘‘BATS’’) as a Participant); 63119 (October 15, 2010), 75 FR 65536 (October 25, 2010) (adding C2 Options Exchange, Incorporated (‘‘C2’’) as a Participant); 66969 (May 11, 2012), 77 FR 29396 (May 17, 2012) (adding BOX Options Exchange LLC (‘‘BOX Options’’) as a Participant). Topaz Exchange, LLC (‘‘Topaz’’) joined the Plan on August 1, 2013. 4 The term ‘‘Participant’’ is defined as an Eligible Exchange whose participation in the Plan has become effective pursuant to Section 3(c) of the Plan. emcdonald on DSK67QTVN1PROD with NOTICES 1 15 VerDate Mar<15>2010 17:40 Oct 31, 2013 Jkt 232001 CBOE, BATS, ISE, Nasdaq, BOX, Phlx, NYSE Amex,5 NYSE Arca, and Topaz. The amendment to the Plan added MIAX as a Participant in the Plan. MIAX has submitted a signed copy of the Plan to the Commission in accordance with the procedures set forth in the Plan regarding new Participants. Section 3(c) of the Plan provides for the entry of new Participants to the Plan. Specifically an Eligible Exchange 6 may become a Participant in the Plan by: (i) Executing a copy of the Plan, as then in effect; (ii) providing each current Participant with a copy of such executed Plan; (iii) effecting an amendment to the Plan, as specified in Sections 3(c) and 4(b) of the Plan. Section 4(b) of the Plan puts forth the process by which an Eligible Exchange may effect an amendment to the Plan. Specifically, an Eligible Exchange must: (a) Execute a copy of the Plan with the only change being the addition of the new participant’s name in Section 3(a) of the Plan; and (b) submit the executed Plan to the Commission. The Plan then provides that such an amendment will be effective when the amendment is approved by the Commission or otherwise becomes effective pursuant to Section 11A of the Act and Rule 608 thereunder. II. Effectiveness of the Linkage Plan Amendment The foregoing Plan amendment has become effective pursuant to Rule 608(b)(3)(iii) of the Act 7 because it involves solely technical or ministerial matters. At any time within sixty days of the filing of this amendment, the Commission may summarily abrogate the amendment and require that it be refiled pursuant to paragraph (b)(1) of Rule 608,8 if it appears to the 5 NYSE Amex was recently renamed NYSE MKT LLC. See Securities Exchange Act Release No. 67037 (May 21, 2012), 77 FR 31415 (May 25, 2012) (SR–NYSEAmex–2012–32). 6 Section 2(6) of the Plan defines an ‘‘Eligible Exchange’’ as a national securities exchange registered with the Commission pursuant to Section 6(a) of the Act, 15 U.S.C. 78f(a), that: (a) Is a ‘‘Participant Exchange’’ in the Options Clearing Corporation (‘‘OCC’’) (as defined in OCC By-laws, Section VII); (b) is a party to the Options Price Reporting Authority (‘‘OPRA’’) Plan (as defined in the OPRA Plan, Section 1); and (c) if the national securities exchange chooses not to become party to this Plan, is a participant in another plan approved by the Commission providing for comparable Trade-Through and Locked and Crossed Market protection. MIAX has represented that it has met the requirements for being considered an Eligible Exchange. See letter from Barbara Comly, EVP, General Counsel & Corporate Secretary, Miami International Holdings, Inc., to Elizabeth Murphy, Secretary, Commission, dated December 5, 2012. 7 17 CFR 242.608(b)(3)(iii). 8 17 CFR 242.608(b)(1). PO 00000 Frm 00139 Fmt 4703 Sfmt 4703 65743 Commission that such action is necessary or appropriate in the public interest, for the protection of investors or the maintenance of fair and orderly markets, to remove impediments to, and perfect the mechanisms of, a national market system or otherwise in furtherance of the purposes of the Act. III. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the amendment 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 4– 546 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 4–546. 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 amendment that are filed with the Commission, and all written communications relating to the amendment 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 MIAX. 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 4–546 and should be submitted on or before November 22, 2013. E:\FR\FM\01NON1.SGM 01NON1

Agencies

[Federal Register Volume 78, Number 212 (Friday, November 1, 2013)]
[Notices]
[Pages 65741-65743]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-26034]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-70766; File No. SR-CBOE-2013-101]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Adopt the Concept of a ``Responsible Person'' 
on the CBOE Stock Exchange

October 28, 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 15, 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 the concept of a ``Responsible 
Person'' on its CBOE Stock Exchange (``CBSX''). 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to adopt Rule 53.9--Responsible Persons--to 
its CBSX rules. The proposed rule is to read: The term ``Responsible 
Person'' shall mean an individual designated by a CBSX Trader to 
represent the CBSX Trader in all matters relating to the Exchange. Each 
CBSX Trader must designate an individual as the Responsible Person for 
the CBSX Trader. If a CBSX Trader is an individual (and not an 
organization), that individual will automatically be designated as the 
CBSX Trader's Responsible Person. The Responsible Person must be 
affiliated with the CBSX Trader. The Responsible Person must be a 
United States-based officer, director or management-level employee of 
the CBSX Trader, who is responsible for the direct supervision and 
control of Associated Persons of that CBSX Trader.
    The purpose of the adoption of the proposed rule is to have a 
designated person associated with each CBSX Trader whom CBSX may 
contact whenever an issue arises regarding that CBSX Trader or CBSX 
otherwise needs to contact that CBSX Trader. The Responsible Person 
will serve as CBSX's person to contact with regards to that CBSX 
Trader.
    The Exchange will conduct a background investigation and review of 
each Responsible Person. This investigation and review may include a 
fingerprint criminal background check (while a Form U-4 (which includes 
a fingerprint check) would already have been filed with FINRA for the 
person, the Exchange may elect to perform another fingerprint check if 
the Form U-4 fingerprint check was performed over one year prior to the 
processing of the Responsible Person application) and the individual's 
consent to the Exchange's jurisdiction over the individual. The 
investigation may also include the engagement of an outside 
investigatory firm to look into the Responsible Person's background, 
check references, perform a credit check, look into the Responsible 
Person's registration, education and regulatory background, and ensure 
that the Responsible Person is not on any government watch lists.
    The proposed rule requires that the Responsible Person be 
affiliated with the CBSX Trader, be a United States-based officer, 
director or management-level employee of the CBSX Trader, and be 
responsible for the direct supervision and control of Associated 
Persons of that CBSX Trader. These requirements

[[Page 65742]]

are in place in order to ensure that the Responsible Person is a person 
who is affiliated with the CBSX Trader and is a person who has 
sufficient responsibility and control with the CBSX Trader to be able 
to effectively participate and assist with CBSX and to work out any 
issues that may arise, as well as to be a relevant point of contact to 
ensure that any necessary information that is communicated to the 
Responsible Person is communicated to anyone else relevant that is 
involved with the CBSX Trader (and to ensure that CBSX can easily 
contact the Responsible Person and have jurisdiction over the 
Responsible Person).
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.\3\ Specifically, the Exchange believes the proposed rule change is 
consistent with the Section 6(b)(5) \4\ 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) \5\ requirement that the rules of 
an exchange not be designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers. The Exchange also believes the 
proposed rule change is consistent with Section 6(b)(1) of the Act,\6\ 
which provides that the Exchange be organized and have the capacity to 
be able to carry out the purposes of the Act and to enforce compliance 
by CBSX Traders and persons associated with CBSX Traders with the Act, 
the rules and regulations thereunder, and the rules of the Exchange.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(5).
    \5\ Id.
    \6\ 15 U.S.C. 78f(b)(1).
---------------------------------------------------------------------------

    Requiring each CBSX Trader to identify a Responsible Person will 
make it easier for CBSX to effectively contact and work out issues with 
a CBSX Trader. This, in turn, will foster cooperation and coordination 
with persons engaged in regulating trading on CBSX and help to ensure 
compliance by CBSX Traders with Exchange rules. Simplifying contact 
between CBSX and CBSX Traders will also remove an impediment to and 
perfect the mechanism of a free and open market and a national market 
system. All CBSX Traders will be required to identify a Responsible 
Person, so this proposed rule change will be applied equally. Finally, 
another exchange has a similar ``Responsible Person'' requirement.\7\
---------------------------------------------------------------------------

    \7\ See C2 Options Exchange, Incorporated (``C2'') Rules 1.1 
(definition of ``Responsible Person'') and 3.8.
---------------------------------------------------------------------------

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

    CBOE does not believe that the proposed rule change will impose any 
burden on intramarket competition that is not necessary or appropriate 
in furtherance of the purposes of the Act because all CBSX Traders will 
be required to identify a Responsible Person, so this proposed rule 
change will be applied equally. CBOE does not believe that the proposed 
rule change will impose any burden on intermarket competition that is 
not necessary or appropriate in furtherance of the purposes of the Act 
because the proposed change only applies to CBSX Traders and CBSX, and 
does not impact trading or competition between CBSX and other 
exchanges.

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 change does not:
    A. significantly affect the protection of investors or the public 
interest;
    B. impose any significant burden on competition; and
    C. become operative for 30 days from the date on which it was 
filed, or such shorter time as the Commission may designate, it has 
become effective pursuant to Section 19(b)(3)(A) of the Act \8\ and 
Rule 19b-4(f)(6) \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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

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-2013-101 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-2013-101. 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 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-

[[Page 65743]]

2013-101 and should be submitted on or before November 22, 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. 2013-26034 Filed 10-31-13; 8:45 am]
BILLING CODE 8011-01-P
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