Self-Regulatory Organizations; CBOE Futures Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Notification Provisions for Exchange of Contract for Related Position Transactions and Block Trades, 66790-66791 [2013-26554]

Download as PDF 66790 Federal Register / Vol. 78, No. 215 / Wednesday, November 6, 2013 / Notices plan. Just as with round lot transactions, an odd-lot transaction with a dollar value of $5000 or more would constitute one qualified transaction report and an odd-lot transaction with a dollar value of less than $5000 would constitute a fraction of a qualified transaction report that equals the dollar value of the transaction report divided by $5000. The Participants do not anticipate that this would produce a significant shift in revenue allocation among the Participants. According to the Participants, this treatment of odd-lot transactions for revenue allocation purposes does not require a change to the language of the CTA Plan. III. Discussion and Commission’s Findings After careful review, the Commission finds that the Amendment to the CTA Plan is consistent with the requirements of the Act and the rules and regulations thereunder,8 and, in particular, Section 11A(a)(1)(C)(iii) of the Act 9 and Rule 608 thereunder 10 in that it is in the public interest and appropriate for the protection of investors and the maintenance of fair and orderly markets to assure the availability to brokers, dealers, and investors of information with respect to transactions in securities. As the Participants stated in the proposal, odd-lot transactions comprise a noteworthy percentage of total trading volume. Thus, including odd-lot transactions on the consolidated tape will enhance post-trade transparency, as well as price discovery, and consequently would further the goals of the Act. The Commission believes that information about odd-lot transactions would provide important information to investors and other market participants and therefore represents a positive development in the provision of market data. IV. Conclusion mstockstill on DSK4VPTVN1PROD with NOTICES It is therefore ordered, pursuant to Section 11A of the Act,11 and the rules thereunder, that the proposed amendment to the CTA Plan (SR–CTA– 2013–05), be, and hereby is approved. 8 In approving the Amendment, the Commission has considered the proposed Amendment’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 9 15 U.S.C. 78k–1(a)(1)(C)(iii). 10 17 CFR 240.608. 11 15 U.S.C. 78k–1. VerDate Mar<15>2010 17:25 Nov 05, 2013 Jkt 232001 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2013–26557 Filed 11–5–13; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–70789; File No. SR–CFE– 2013–006] Self-Regulatory Organizations; CBOE Futures Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Notification Provisions for Exchange of Contract for Related Position Transactions and Block Trades October 31, 2013. Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on October 17, 2013, CBOE Futures Exchange, LLC (‘‘CFE’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) the proposed rule change described in Items I, II, and III below, which Items have been prepared by CFE. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. CFE also has filed this proposed rule change with the Commodity Futures Trading Commission (‘‘CFTC’’). CFE filed a written certification with the CFTC under Section 5c(c) of the Commodity Exchange Act (‘‘CEA’’) 2 on October 17, 2013. I. Self-Regulatory Organization’s Description of the Proposed Rule Change CFE proposes to revise the notification provisions contained in CFE Rules 414 (Exchange of Contract for Related Position) (‘‘ECRP’’) and 415 (Block Trading). The scope of this filing is limited solely to the application of the rule changes to security futures traded on CFE. The only security futures currently traded on CFE are traded under Chapter 16 of CFE’s Rulebook which is applicable to Individual Stock Based and Exchange-Traded Fund Based Volatility Index (‘‘Volatility Index’’) security futures. The text of the proposed rule change is attached as Exhibit 4 to the filing 12 17 CFR 200.30–3(a)(27). U.S.C. 78s(b)(7). 2 7 U.S.C. 7a–2(c). 1 15 PO 00000 Frm 00110 Fmt 4703 Sfmt 4703 submitted by the Exchange but is not attached to the published notice of the filing. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, CFE included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. CFE has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose CFE recently amended the notification and reporting provisions contained in CFE Rule 414 (which sets forth requirements relating to ECRP transactions) and CFE Rule 415 (which sets forth requirements relating to Block Trades).3 One provision of the recent amendment was to extend the time frames during which ECRP transactions and Block Trades may be reported. As described in SR–CFE–2013–005, the impetus for that filing was the first phase of implementation of the expansion of extended trading hours for CBOE Volatility Index (‘‘VIX’’) futures.4 The current proposal seeks to amend the notification provisions of CFE Rules 414 and 415 in connection with implementation of the second phase of the extension of extended trading hours for VIX futures. The CFE Help Desk will now be staffed to support VIX futures trading that commences at 2:00 a.m. (instead of 7:00 a.m.) on calendar days Monday through Friday. As a result, the Exchange is proposing to amend the notification provisions for ECRP transactions and Block trades that were 3 See Securities Exchange Act Release No. 70611 (October 4, 2013) [sic] (Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Notification and Reporting Provisions for Exchange of Contract for Related Position Transactions and Block Trades) (SR–CFE– 2013–005). 4 All times included in this filing and in CFE’s Rules are Chicago time. The first phase of expanded extended trading hours introduces an additional 45minute extended trading hours period from 3:30 p.m.–4:15 p.m. Monday through Thursday for VIX futures. The second phase will change the time that trading starts on a calendar day from 7:00 a.m. to 2:00 a.m. for Business Days Monday through Friday for VIX futures. E:\FR\FM\06NON1.SGM 06NON1 Federal Register / Vol. 78, No. 215 / Wednesday, November 6, 2013 / Notices previously based on a 7:00 a.m. start to a calendar day to be based on a 2:00 a.m. start to a calendar day. Accordingly, the Exchange is proposing to change all references to ‘‘7:00 a.m.’’ to ‘‘2:00 a.m.’’ in the charts that are set forth in CFE Rules 414(i) and 415(g). No other changes are being proposed by this rule change. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,5 in general, and furthers the objectives of Section 6(b)(5) 6 in particular in that it is designed to foster cooperation and coordination with persons engaged in facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and in general, to protect investors and the public interest. The Exchange believes that the proposed rule change would benefit investors and market participants because it would enhance CFE’s ECRP and Block Trade reporting provisions by extending the time frames during which ECRP transactions and Block Trades may be reported. The Exchange also believes that the proposed rule change is equitable and not unfairly discriminatory because amended CFE Rules 414 and 415 would apply to all TPHs and Authorized Reporters and do not discriminate between market participants. mstockstill on DSK4VPTVN1PROD with NOTICES B. Self-Regulatory Organization’s Statement on Burden on Competition CFE does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act, in that the rule change makes enhancements to CFE’s Block Trade and ECRP reporting process. In addition, the Exchange believes that the expansion of the ability to report Block Trades and ECRP transactions in security futures in conjunction with the expansion of trading hours in VIX futures will promote competition because it will provide for the reporting and dissemination of security futures Block Trades and ECRPs during additional time frames which will serve to promote additional transparency and thus potential further price competition. U.S.C. 78f(b). 6 15 U.S.C. 78f(b)(5). C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The proposed rule change will become operative on or after November 1, 2013. At any time within 60 days of the date of effectiveness of the proposed rule change, the Commission, after consultation with the CFTC, may summarily abrogate the proposed rule change and require that the proposed rule change be refiled in accordance with the provisions of Section 19(b)(1) of the Act.7 IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR–CFE–2013–006 on the subject line. Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–CFE–2013–006. 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 5 15 VerDate Mar<15>2010 17:25 Nov 05, 2013 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–CFE– 2013–006, and should be submitted on or before November 27, 2013. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2013–26554 Filed 11–5–13; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–70791; File No. SR–CHX– 2013–16] Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Order Approving a Proposed Rule Change To Adopt Standards for the Cancellation or Adjustment of Bona Fide Error Trades, the Submission of Error Correction Transactions, and the Cancellation or Adjustment of Stock Leg Trades of Stock-Option or StockFuture Orders October 31, 2013. I. Introduction On September 4, 2013, Chicago Stock Exchange, Inc. (‘‘Exchange’’ or ‘‘CHX’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to amend CHX Article 20, Rule 9 to outline and clarify the Exchange’s current requirements for the cancellation of trades based on Bona Fide Error and to establish new requirements for the adjustment of trades based on Bona Fide Error; to adopt CHX Article 20, Rule 9A to detail the Exchange’s current requirements for Error Correction Transactions; and to adopt CHX Article 20, Rule 11 to amend 8 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 7 15 Jkt 232001 PO 00000 U.S.C. 78s(b)(1). Frm 00111 Fmt 4703 Sfmt 4703 66791 E:\FR\FM\06NON1.SGM 06NON1

Agencies

[Federal Register Volume 78, Number 215 (Wednesday, November 6, 2013)]
[Notices]
[Pages 66790-66791]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-26554]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-70789; File No. SR-CFE-2013-006]


Self-Regulatory Organizations; CBOE Futures Exchange, LLC; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating to the Notification Provisions for Exchange of Contract for 
Related Position Transactions and Block Trades

October 31, 2013.
    Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on October 17, 2013, CBOE 
Futures Exchange, LLC (``CFE'' or ``Exchange'') filed with the 
Securities and Exchange Commission (``SEC'' or ``Commission'') the 
proposed rule change described in Items I, II, and III below, which 
Items have been prepared by CFE. The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons. CFE also has filed this proposed rule change with the 
Commodity Futures Trading Commission (``CFTC''). CFE filed a written 
certification with the CFTC under Section 5c(c) of the Commodity 
Exchange Act (``CEA'') \2\ on October 17, 2013.
---------------------------------------------------------------------------

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

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

    CFE proposes to revise the notification provisions contained in CFE 
Rules 414 (Exchange of Contract for Related Position) (``ECRP'') and 
415 (Block Trading).
    The scope of this filing is limited solely to the application of 
the rule changes to security futures traded on CFE. The only security 
futures currently traded on CFE are traded under Chapter 16 of CFE's 
Rulebook which is applicable to Individual Stock Based and Exchange-
Traded Fund Based Volatility Index (``Volatility Index'') security 
futures.
    The text of the proposed rule change is attached as Exhibit 4 to 
the filing submitted by the Exchange but is not attached to the 
published notice of the filing.

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

    In its filing with the Commission, CFE included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. CFE has prepared summaries, set forth in Sections A, B, 
and C below, of the most significant aspects of such statements.

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

1. Purpose
    CFE recently amended the notification and reporting provisions 
contained in CFE Rule 414 (which sets forth requirements relating to 
ECRP transactions) and CFE Rule 415 (which sets forth requirements 
relating to Block Trades).\3\ One provision of the recent amendment was 
to extend the time frames during which ECRP transactions and Block 
Trades may be reported. As described in SR-CFE-2013-005, the impetus 
for that filing was the first phase of implementation of the expansion 
of extended trading hours for CBOE Volatility Index (``VIX'') 
futures.\4\ The current proposal seeks to amend the notification 
provisions of CFE Rules 414 and 415 in connection with implementation 
of the second phase of the extension of extended trading hours for VIX 
futures.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 70611 (October 4, 
2013) [sic] (Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change Relating to the Notification and Reporting 
Provisions for Exchange of Contract for Related Position 
Transactions and Block Trades) (SR-CFE-2013-005).
    \4\ All times included in this filing and in CFE's Rules are 
Chicago time. The first phase of expanded extended trading hours 
introduces an additional 45-minute extended trading hours period 
from 3:30 p.m.-4:15 p.m. Monday through Thursday for VIX futures. 
The second phase will change the time that trading starts on a 
calendar day from 7:00 a.m. to 2:00 a.m. for Business Days Monday 
through Friday for VIX futures.
---------------------------------------------------------------------------

    The CFE Help Desk will now be staffed to support VIX futures 
trading that commences at 2:00 a.m. (instead of 7:00 a.m.) on calendar 
days Monday through Friday. As a result, the Exchange is proposing to 
amend the notification provisions for ECRP transactions and Block 
trades that were

[[Page 66791]]

previously based on a 7:00 a.m. start to a calendar day to be based on 
a 2:00 a.m. start to a calendar day. Accordingly, the Exchange is 
proposing to change all references to ``7:00 a.m.'' to ``2:00 a.m.'' in 
the charts that are set forth in CFE Rules 414(i) and 415(g). No other 
changes are being proposed by this rule change.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\5\ in general, and furthers the 
objectives of Section 6(b)(5) \6\ in particular in that it is designed 
to foster cooperation and coordination with persons engaged in 
facilitating transactions in securities, to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, and in general, to protect investors and the public interest.
---------------------------------------------------------------------------

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

    The Exchange believes that the proposed rule change would benefit 
investors and market participants because it would enhance CFE's ECRP 
and Block Trade reporting provisions by extending the time frames 
during which ECRP transactions and Block Trades may be reported. The 
Exchange also believes that the proposed rule change is equitable and 
not unfairly discriminatory because amended CFE Rules 414 and 415 would 
apply to all TPHs and Authorized Reporters and do not discriminate 
between market participants.

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

    CFE does not believe that the proposed rule change will impose any 
burden on competition not necessary or appropriate in furtherance of 
the purposes of the Act, in that the rule change makes enhancements to 
CFE's Block Trade and ECRP reporting process. In addition, the Exchange 
believes that the expansion of the ability to report Block Trades and 
ECRP transactions in security futures in conjunction with the expansion 
of trading hours in VIX futures will promote competition because it 
will provide for the reporting and dissemination of security futures 
Block Trades and ECRPs during additional time frames which will serve 
to promote additional transparency and thus potential further price 
competition.

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

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

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

    The proposed rule change will become operative on or after November 
1, 2013.
    At any time within 60 days of the date of effectiveness of the 
proposed rule change, the Commission, after consultation with the CFTC, 
may summarily abrogate the proposed rule change and require that the 
proposed rule change be refiled in accordance with the provisions of 
Section 19(b)(1) of the Act.\7\
---------------------------------------------------------------------------

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

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-CFE-2013-006 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CFE-2013-006. 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-CFE-2013-006, 
and should be submitted on or before November 27, 2013.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-26554 Filed 11-5-13; 8:45 am]
BILLING CODE 8011-01-P
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