Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Granting Approval of Proposed Rule Change, as Modified by Amendment No. 1, Relating to the Short Term Option Series Program, 75395-75396 [2013-29551]
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emcdonald on DSK67QTVN1PROD with NOTICES
Federal Register / Vol. 78, No. 238 / Wednesday, December 11, 2013 / Notices
7. No trustee or officer of a SubAdvised Fund or director or officer of
the Manager, will own directly or
indirectly (other than through a pooled
investment vehicle that is not controlled
by such person), any interest in a SubAdviser except for ownership of
interests in the Manager or any entity
that controls, is controlled by or is
under common control with the
Manager; or ownership of less than 1%
of the outstanding securities of any class
of equity or debt securities of any
publicly traded company that is either
a Sub-Adviser or an entity that controls,
is controlled by or is under common
control with a Sub-Adviser.
8. Sub-Advised Funds will inform
shareholders of the hiring of a new SubAdviser in reliance on the order within
90 days after the hiring of the new SubAdviser pursuant to the Modified Notice
and Access Procedures.
9. In the event the Commission adopts
a rule under the Act providing
substantially similar relief to that in the
order requested in the application, the
requested order will expire on the
effective date of that rule.
10. Independent legal counsel, as
defined in rule 0–1(a)(6) under the Act,
will be engaged to represent the
Independent Trustees. The selection of
such counsel will be within the
discretion of the then-existing
Independent Trustees.
11. Whenever a Sub-Adviser is hired
or terminated, the Manager will provide
the Board with information showing the
expected impact on the profitability of
the Manager.
12. The Manager will provide the
Board, no less frequently than quarterly,
with information about the profitability
of the Manager on a per Sub-Advised
Fund basis. The information will reflect
the impact on profitability of the hiring
or termination of any Sub-Adviser
during the applicable quarter.
13. Each Sub-Advised Fund will
disclose in its registration statement the
Aggregate Fee Disclosure.
14. Any changes to a Sub-Advisory
Agreement that would result in an
increase in the total management and
advisory fees payable by a Sub-Advised
Fund will be required to be approved by
the shareholders of the Sub-Advised
Fund.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–29499 Filed 12–10–13; 8:45 am]
BILLING CODE 8011–01–P
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17:00 Dec 10, 2013
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71005; File No. SR–CBOE–
2013–096]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Order Granting Approval
of Proposed Rule Change, as Modified
by Amendment No. 1, Relating to the
Short Term Option Series Program
December 6, 2013.
I. Introduction
On October 2, 2013, Chicago Board
Options Exchange, Incorporated
(‘‘CBOE’’ or ‘‘Exchange’’) 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 Exchange Rules 5.5(d) and
24.9(a)(2)(A) to make certain
modifications to the Exchange’s Short
Term Option Series Program (‘‘Weeklys
Program’’). The proposed rule change
was published for comment in the
Federal Register on October 22, 2013.3
The Commission received no comment
letters on the proposal. This order
approves the proposed rule change, as
modified by Amendment No. 1.
II. Description of the Proposal
The Exchange proposed to amend
Exchange Rules 5.5(d) and 24.9(a)(2)(A)
to: (i) Allow for the Exchange to list
options in the Weeklys Progam
(‘‘Weekly options’’) on each of the next
five Fridays that are business days and
are not Fridays in which monthly
options series or quarterly options series
expire (‘‘Short Term Option Expiration
Dates’’) at one time; and (ii) state that
additional series of Weekly options may
be listed up to, and including on, the
day of expiration.
The proposed rule change would give
the Exchange the ability to list a total of
five Weekly options expirations at one
time, not including monthly or quarterly
option expirations. Currently, the
Exchange’s rules provide that the
Exchange may open for trading on any
Thursday or Friday that is a business
day (‘‘Short Term Option Opening
Date’’) options expiring ‘‘on each of the
next five consecutive Fridays that are
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Securities Exchange Act Release No. 70685
(October 15, 2013), 78 FR 62858 (‘‘Notice’’). The
Commission notes that on October 15, 2013, the
Exchange submitted Amendment No. 1 to the
proposed rule change to make certain amendments
that removed the phrase ‘‘for each series’’ from the
proposed rule language relating to Short Term
Option Expiration Dates.
2 17
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Frm 00067
Fmt 4703
Sfmt 4703
75395
business days.’’ 4 Because a Friday
expiration may coincide with an
existing expiration of a monthly or
quarterly series of an option in the same
class as the Weekly options series, the
current requirement that the Fridays be
consecutive may mean that the
Exchange cannot open five Short Term
Option Expiration Dates because of
existing monthly or quarterly
expirations. The proposed rule change
would allow the Exchange to open the
five Weekly options expirations closest
to the Short Term Option Opening Date,
not including monthly or quarterly
option expirations.
The proposed rule change also adds
language to Rules 5.5(d) and
24.9(a)(2)(A) to state that additional
series of Weekly options may be added
up to, and including on, the expiration
date of the series.5 Currently, Exchange
rules state that the Exchange ‘‘may open
up to 20 initial series for each option
class that participates in the Short Term
Option Series Program’’ and ‘‘up to 10
additional series for each option class
that participates in the Short Term
Option Series Program.’’ 6 However, the
Exchange’s rules are silent on when
series may be added. Therefore, the
Exchange is proposing to add language
stating that additional Weekly options
series may be added up to and on the
day of expiration.
The Exchange asserts that the
proposed revisions to the Weeklys
Program will permit the Exchange to
meet increased customer demand and
provide market participants with the
ability to hedge in a greater number of
option classes and series.7 In addition,
the Exchange stated that it believes that,
given the short lifespan of Weekly
options, the ability to list new series of
options intraday is appropriate.8
III. Discussion and Commission
Findings
After careful review of the proposed
rule change, the Commission finds that
the proposed rule change is consistent
with the requirements of the Act and the
rules and regulations thereunder
applicable to a national securities
4 See
Exchange Rules 5.5(d) and 24.9(a)(2)(A).
Exchange also proposed to add language
stating that the proposed provisions in Rules
5.5(d)(4) and 24.9(a)(2)(A)(iv) will not contradict
current provisions in CBOE Rules. More
specifically, the proposed provisions would not
contradict 5.5.04 and 24.9.01(c) respectively. The
Exchange stated that it believes this addition will
eliminate any confusion about when additional
series may be added in the Weeklys Program in
comparison to other Exchange listing programs.
6 See Exchange Rules 5.5(d)(3), 5.5.(d)(4),
24.9(a)(2)(A)(iii), and 24.9(a)(2)(A)(iv).
7 See Notice, supra note 3 at 62859.
8 See id.
5 The
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75396
Federal Register / Vol. 78, No. 238 / Wednesday, December 11, 2013 / Notices
exchange.9 Specifically, the
Commission finds that the proposal is
consistent with Section 6(b)(5) of the
Act,10 which requires, among other
things, that the rules of a national
securities exchange be designed to
promote just and equitable principles of
trade, to prevent fraudulent and
manipulative acts, 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 Commission
believes that the proposed change may
provide the investing public and other
market participants with greater
flexibility to closely tailor their
investment and hedging decisions in a
greater number of option series, thus
allowing investors to better manage
their risk exposure.
In approving this proposal, the
Commission notes that the Exchange
has represented that it and the Options
Price Reporting Authority (‘‘OPRA’’)
have the necessary systems capacity to
handle the potential additional traffic
associated with the Exchange’s
proposed amendments to the Weeklys
Program.11 That Commission also notes
that the Exchange represented that the
Options Clearing Corporation (‘‘OCC’’)
has the ability to accommodate series in
the Weeklys Program added intraday.12
The Commission expects the Exchange
to monitor the frequency of additional
series listed as a result of this proposal
and record the reasons therefor, and
monitor the trading volume associated
with the additional options series listed
as a result of this proposal and the effect
of these additional series on market
fragmentation and on the capacity of the
Exchange’s, OPRA’s, OCC’s, and
vendors’ automated systems.
IV. Conclusion
emcdonald on DSK67QTVN1PROD with NOTICES
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,13 that the
proposed rule change, as modified by
Amendment No. 1 (SR–CBOE–2013–
096), be, and it hereby is, approved.
9 In
approving this proposed rule change, the
Commission considered the proposed rule’s impact
on efficiency, competition, and capital formation.
See 15 U.S.C. 78c(f).
10 15 U.S.C. 78f(b)(5).
11 See Notice, supra note 3 at 62860.
12 See id. at 62859, n. 10.
13 15 U.S.C. 78s(b)(2).
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For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–29551 Filed 12–10–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70998; File No. SR–
NYSEARCA–2013–133]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Proposes To Amend the
NYSE Arca Equities Schedule of Fees
and Charges for Exchange Services To
Specify the Exclusion of Odd Lot
Transactions From Consolidated
Average Daily Volume Calculations for
a Limited Period of Time for Purposes
of Certain Transaction Pricing on the
Exchange Through January 31, 2014
December 5, 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
November 22, 2013, NYSE Arca, Inc.
(‘‘Exchange’’ or ‘‘NYSE Arca’’) 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 selfregulatory organization. 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 the
NYSE Arca Equities Schedule of Fees
and Charges for Exchange Services (the
‘‘Fee Schedule’’) to specify the
exclusion of odd lot transactions from
consolidated average daily volume
(‘‘CADV’’) calculations for a limited
period of time for purposes of certain
transaction pricing on the Exchange.
The text of the proposed rule change is
available on the Exchange’s Web site at
www.nyse.com, at the principal office of
the Exchange, and at the Commission’s
Public Reference Room.
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
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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
self-regulatory organization 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 those 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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend the
Fee Schedule to specify the exclusion of
odd lot transactions from CADV
calculations for a limited period of time
for purposes of certain transaction
pricing on the Exchange. The Exchange
proposes to implement the Fee
Schedule on December 9, 2013.
The Exchange provides an ETP
Holder with the opportunity to qualify
for one or more pricing Tiers based on
its level of activity during a particular
month. Each Tier has a corresponding
fee or credit that applies to the ETP
Holder’s transactions during the month.
Generally, a qualifying ETP Holder
would be subject to a lower transaction
fee or a higher transaction credit,
depending on the particular Tier. Many
of these Tiers use a specific percentage
of CADV as a threshold that an ETP
Holder’s activity must meet or exceed in
order to qualify for the particular Tier.
For example, an ETP Holder must,
among other things, provide liquidity an
average daily volume (‘‘ADV’’) of 0.70%
or more of CADV during the month to
qualify for Tier 1 pricing.3 As an
additional example, transaction pricing
for an ETP Holder that is a Lead Market
Maker (‘‘LMM’’) can depend on the
CADV for the security in the previous
month.
CADV is a measure of transactions in
Tape A, Tape B and Tape C securities
reported to the consolidated tape.
3 To qualify for Tier 1, an ETP Holder must (1)
provide liquidity an ADV per month of 0.70% or
more of CADV or (2)(a) provide liquidity an ADV
per month of 0.15% or more of CADV and (b) be
affiliated with an Options Trading Permit (‘‘OTP’’)
Holder or OTP Firm that provides an ADV of
electronic posted executions (including all account
types) in Penny Pilot issues on NYSE Arca Options
(excluding mini options) of at least 100,000
contracts, of which at least 25,000 contracts must
be for the account of a market maker.
E:\FR\FM\11DEN1.SGM
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]]>Agencies
[Federal Register Volume 78, Number 238 (Wednesday, December 11, 2013)]
[Notices]
[Pages 75395-75396]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-29551]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71005; File No. SR-CBOE-2013-096]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Order Granting Approval of Proposed Rule Change, as
Modified by Amendment No. 1, Relating to the Short Term Option Series
Program
December 6, 2013.
I. Introduction
On October 2, 2013, Chicago Board Options Exchange, Incorporated
(``CBOE'' or ``Exchange'') 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 Exchange Rules 5.5(d)
and 24.9(a)(2)(A) to make certain modifications to the Exchange's Short
Term Option Series Program (``Weeklys Program''). The proposed rule
change was published for comment in the Federal Register on October 22,
2013.\3\ The Commission received no comment letters on the proposal.
This order approves the proposed rule change, as modified by Amendment
No. 1.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Securities Exchange Act Release No. 70685 (October 15,
2013), 78 FR 62858 (``Notice''). The Commission notes that on
October 15, 2013, the Exchange submitted Amendment No. 1 to the
proposed rule change to make certain amendments that removed the
phrase ``for each series'' from the proposed rule language relating
to Short Term Option Expiration Dates.
---------------------------------------------------------------------------
II. Description of the Proposal
The Exchange proposed to amend Exchange Rules 5.5(d) and
24.9(a)(2)(A) to: (i) Allow for the Exchange to list options in the
Weeklys Progam (``Weekly options'') on each of the next five Fridays
that are business days and are not Fridays in which monthly options
series or quarterly options series expire (``Short Term Option
Expiration Dates'') at one time; and (ii) state that additional series
of Weekly options may be listed up to, and including on, the day of
expiration.
The proposed rule change would give the Exchange the ability to
list a total of five Weekly options expirations at one time, not
including monthly or quarterly option expirations. Currently, the
Exchange's rules provide that the Exchange may open for trading on any
Thursday or Friday that is a business day (``Short Term Option Opening
Date'') options expiring ``on each of the next five consecutive Fridays
that are business days.'' \4\ Because a Friday expiration may coincide
with an existing expiration of a monthly or quarterly series of an
option in the same class as the Weekly options series, the current
requirement that the Fridays be consecutive may mean that the Exchange
cannot open five Short Term Option Expiration Dates because of existing
monthly or quarterly expirations. The proposed rule change would allow
the Exchange to open the five Weekly options expirations closest to the
Short Term Option Opening Date, not including monthly or quarterly
option expirations.
---------------------------------------------------------------------------
\4\ See Exchange Rules 5.5(d) and 24.9(a)(2)(A).
---------------------------------------------------------------------------
The proposed rule change also adds language to Rules 5.5(d) and
24.9(a)(2)(A) to state that additional series of Weekly options may be
added up to, and including on, the expiration date of the series.\5\
Currently, Exchange rules state that the Exchange ``may open up to 20
initial series for each option class that participates in the Short
Term Option Series Program'' and ``up to 10 additional series for each
option class that participates in the Short Term Option Series
Program.'' \6\ However, the Exchange's rules are silent on when series
may be added. Therefore, the Exchange is proposing to add language
stating that additional Weekly options series may be added up to and on
the day of expiration.
---------------------------------------------------------------------------
\5\ The Exchange also proposed to add language stating that the
proposed provisions in Rules 5.5(d)(4) and 24.9(a)(2)(A)(iv) will
not contradict current provisions in CBOE Rules. More specifically,
the proposed provisions would not contradict 5.5.04 and 24.9.01(c)
respectively. The Exchange stated that it believes this addition
will eliminate any confusion about when additional series may be
added in the Weeklys Program in comparison to other Exchange listing
programs.
\6\ See Exchange Rules 5.5(d)(3), 5.5.(d)(4),
24.9(a)(2)(A)(iii), and 24.9(a)(2)(A)(iv).
---------------------------------------------------------------------------
The Exchange asserts that the proposed revisions to the Weeklys
Program will permit the Exchange to meet increased customer demand and
provide market participants with the ability to hedge in a greater
number of option classes and series.\7\ In addition, the Exchange
stated that it believes that, given the short lifespan of Weekly
options, the ability to list new series of options intraday is
appropriate.\8\
---------------------------------------------------------------------------
\7\ See Notice, supra note 3 at 62859.
\8\ See id.
---------------------------------------------------------------------------
III. Discussion and Commission Findings
After careful review of the proposed rule change, the Commission
finds that the proposed rule change is consistent with the requirements
of the Act and the rules and regulations thereunder applicable to a
national securities
[[Page 75396]]
exchange.\9\ Specifically, the Commission finds that the proposal is
consistent with Section 6(b)(5) of the Act,\10\ which requires, among
other things, that the rules of a national securities exchange be
designed to promote just and equitable principles of trade, to prevent
fraudulent and manipulative acts, 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
Commission believes that the proposed change may provide the investing
public and other market participants with greater flexibility to
closely tailor their investment and hedging decisions in a greater
number of option series, thus allowing investors to better manage their
risk exposure.
---------------------------------------------------------------------------
\9\ In approving this proposed rule change, the Commission
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
In approving this proposal, the Commission notes that the Exchange
has represented that it and the Options Price Reporting Authority
(``OPRA'') have the necessary systems capacity to handle the potential
additional traffic associated with the Exchange's proposed amendments
to the Weeklys Program.\11\ That Commission also notes that the
Exchange represented that the Options Clearing Corporation (``OCC'')
has the ability to accommodate series in the Weeklys Program added
intraday.\12\ The Commission expects the Exchange to monitor the
frequency of additional series listed as a result of this proposal and
record the reasons therefor, and monitor the trading volume associated
with the additional options series listed as a result of this proposal
and the effect of these additional series on market fragmentation and
on the capacity of the Exchange's, OPRA's, OCC's, and vendors'
automated systems.
---------------------------------------------------------------------------
\11\ See Notice, supra note 3 at 62860.
\12\ See id. at 62859, n. 10.
---------------------------------------------------------------------------
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\13\ that the proposed rule change, as modified by Amendment No. 1
(SR-CBOE-2013-096), be, and it hereby is, approved.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-29551 Filed 12-10-13; 8:45 am]
BILLING CODE 8011-01-P
