Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Certain CBOE Real-Time Data Feeds and a New Book Depth Data Feed, 17619-17621 [2014-06886]

Download as PDF Federal Register / Vol. 79, No. 60 / Friday, March 28, 2014 / Notices 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–Phlx– 2014–18 and should be submitted on or before April 18, 2014. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2014–06892 Filed 3–27–14; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–71774; File No. SR–CBOE– 2014–020] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Certain CBOE Real-Time Data Feeds and a New Book Depth Data Feed March 24, 2014. 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 March 11, 2014, 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 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. mstockstill on DSK4VPTVN1PROD with NOTICES I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change Chicago Board Options Exchange, Incorporated (the ‘‘Exchange’’ or ‘‘CBOE’’) proposes to (i) update the description of the data included in certain CBOE real-time data feeds and (ii) offer a book depth data feed for CBOE listed options. 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, 13 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. VerDate Mar<15>2010 18:57 Mar 27, 2014 Jkt 232001 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 purpose of the proposed rule change is to (i) update the description of the data included in the following CBOE real-time data feeds: BBO Data Feed, Complex Order Book (‘‘COB’’) Data Feed and Flexible Exchange option (‘‘FLEX’’) Data Feed, and (ii) offer a book depth data feed for CBOE listed options. BBO, COB and FLEX Data Feeds The BBO Data Feed is a real-time, low latency data feed that includes CBOE ‘‘BBO data’’ and last sale data.3 The BBO and last sale data contained in the BBO Data Feed is identical to the data that CBOE sends to the Options Price Reporting Authority (‘‘OPRA’’) for redistribution to the public.4 The BBO Data Feed is made available by CBOE’s affiliate Market Data Express, LLC (‘‘MDX’’). The BBO Data Feed also includes certain data that is not included in the data sent to OPRA, namely, (i) totals of customer versus non-customer contracts at the BBO, (ii) All-or-None contingency 3 The BBO Data Feed includes the ‘‘best bid and offer,’’ or ‘‘BBO’’, consisting of all outstanding quotes and standing orders at the best available price level on each side of the market, with aggregate size (‘‘BBO data,’’ sometimes referred to as ‘‘top-of-book data’’). Data with respect to executed trades is referred to as ‘‘last sale’’ data. See Securities Exchange Act Release No. 69438 (April 23, 2013), 78 FR 25334 (April 30, 2013). 4 The Exchange notes that MDX makes available to Customers the BBO data and last sale data that is included in the BBO Data Feed no earlier than the time at which the Exchange sends that data to OPRA. A ‘‘Customer’’ is any entity that receives the BBO Data Feed, either directly from MDX’s system or through a connection to MDX provided by an approved redistributor (i.e., a market data vendor or an extranet service provider) and then distributes it externally or uses it internally. PO 00000 Frm 00126 Fmt 4703 Sfmt 4703 17619 orders priced better than or equal to the BBO, (iii) BBO data and last sale data for complex strategies (e.g., spreads, straddles, buy-writes, etc.), (iv) BBO data and last sale data for FLEX options traded on the CBOE FLEX Hybrid Trading System, including BBO data and last sale data for FLEX complex strategies (collectively, ‘‘FLEX BBO data’’), and (v) expected opening price (‘‘EOP’’) and expected opening size (‘‘EOS’’) information that is disseminated prior to the opening of the market and during trading rotations (collectively, ‘‘EOP/EOS data’’). The COB Data Feed is a real-time data feed that includes data regarding the Exchange’s Complex Order Book and related complex order information. The COB Data Feed includes BBO quotes and identifying information for all CBOE-traded complex order strategies, as well as all executed CBOE complex order trades (and identifies whether the trade was a customer trade, or whether a complex order in the COB is a customer order).5 The FLEX Data Feed is a real-time data feed that includes FLEX BBO data, as described above.6 The COB and FLEX Data Feeds are both made available by MDX and are subsets of the BBO Data Feed. The Exchange, through MDX, plans to make additional data available in the BBO, COB and FLEX Data Feeds and therefore proposes to update the description of the data included in the feeds. Specifically, the Exchange proposes to add end-of-day (‘‘EOD’’) summary messages and recap messages to the feeds. EOD summary messages are messages that will be disseminated after the close of a trading session that will include summary information about trading in CBOE listed options. Such information includes product name, opening price, high and low price during the trading session and last sale price. Recap messages are messages that will be disseminated during a trading session any time there is a change in the open, high, low or last sale price of a CBOE listed option. In addition to open, high, low and last sale prices, such messages will also include product name and total volume traded in the product during the trading session. At this time, the Exchange does not intend to amend the fees for the BBO and COB Data Feeds. The FLEX Data Feed is currently made available at no charge. 5 See Securities Exchange Act Release No. 70118 (August 5, 2013), 78 FR 48757 (August 9, 2013). 6 See Securities Exchange Act Release No. 69438 (April 23, 2013), 78 FR 25334 (April 30, 2013). E:\FR\FM\28MRN1.SGM 28MRN1 17620 Federal Register / Vol. 79, No. 60 / Friday, March 28, 2014 / Notices Book Depth Data Feed The Exchange proposes to make available, through MDX, a real-time, low latency data feed that includes all outstanding quotes and standing orders up to the first five price levels on each side of the market, with aggregate size (‘‘Book Depth Data Feed’’).7 The Book Depth Data Feed will also include all of the other data contained in the BBO Data Feed (as described above), including last sale data and BBO and book depth data for complex strategies.8 The data in the Book Depth Data Feed would be refreshed periodically during the trading session. The Exchange will file a separate proposed rule change to establish the fees to be charged by MDX for the Book Depth Data Feed. mstockstill on DSK4VPTVN1PROD with NOTICES 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.9 Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 10 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) 11 requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers because the enhanced BBO, COB and FLEX Data Feeds and the Book Depth Data Feed would be made available by MDX to any market participant that wishes to subscribe to any of the feeds. In adopting Regulation NMS, the Commission granted self-regulatory 7 The Exchange notes that MDX will make available the BBO and last sale data that is included in the Book Depth Data Feed no earlier than the time at which the Exchange sends that data to OPRA. 8 With the introduction of the Book Depth Data Feed, the COB Data Feed would also be enhanced to include book depth data for complex strategies. 9 15 U.S.C. 78f(b). 10 15 U.S.C. 78f(b)(5). 11 Id. VerDate Mar<15>2010 18:57 Mar 27, 2014 Jkt 232001 organizations and broker-dealers increased authority and flexibility to offer new and unique market data to the public. It was believed that this authority would expand the amount of data available to consumers, and also spur innovation and competition for the provision of market data. The Exchange believes that this proposal is in keeping with those principles by promoting increased transparency through the dissemination of useful data and also by clarifying its availability to market participants. The Exchange believes that updating the description of the BBO, COB and FLEX Data Feeds will benefit users by making clearer what data is included in each feed. The Exchange believes offering the Book Depth Data Feed will increase transparency, help attract order flow and provide investors with additional information that may help to inform their trading decisions. B. Self-Regulatory Organization’s Statement on Burden on Competition CBOE does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposal to update the description of the BBO, COB and FLEX Data Feeds is intended not to address any competitive issue but rather to reflect the data that is included in the feeds. The Exchange notes other exchanges offer depth of market products similar to the Book Depth Data Feed. For example, BATS offers Multicast PITCH, which is their depth of market and last sale feed similar to the Book Depth Data Feed. The International Securities Exchange offers a data feed that shows the top five price levels entitled Depth of Market. NASDAQ OMX PHLX offers a Depth of Market data feed that includes full depth of quotes and orders and last sale data for options listed on PHLX. NASDAQ Options Market offers a product entitled ‘‘NASDAQ ITCH-toTrade Options’’ (ITTO) that is similar to the Book Depth Data Feed. NYSE offers market data products entitled ‘‘NYSE ArcaBook for Amex Options’’ and ‘‘NYSE ArcaBook for Arca Options’’ that include top-of-book, last sale and depth of quote data. In addition, the OPRA data feed is a significant competitive alternative to both the BBO Data Feed and the Book Depth Data Feed. The Exchange believes the enhanced BBO, COB and FLEX Data Feeds and the Book Depth Data Feed will help to attract new users and new order flow to the Exchange, thereby improving the Exchange’s ability to compete in the market for options order flow and executions. PO 00000 Frm 00127 Fmt 4703 Sfmt 4703 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 12 and Rule 19b–4(f)(6) 13 thereunder. The Exchange has requested that the Commission waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Exchange has stated that it does not intend to amend the fees for the BBO and COB Data Feeds, that the FLEX Data Feed is currently made available at no charge, and that the proposed Book Depth Data Feed mostly includes data already made available by the Exchange through the BBO Data Feed. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest, because such waiver will enable market participants to receive more market data via the Exchange’s new and existing data feeds at no charge. For this reason, the Commission hereby waives the 30-day operative delay requirement and designates the proposed rule change to be operative upon filing.14 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. 12 15 U.S.C. 78s(b)(3)(A). CFR 240.19b-4(f)(6). 14 For purposes only of waiving the operative delay for this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 13 17 E:\FR\FM\28MRN1.SGM 28MRN1 Federal Register / Vol. 79, No. 60 / Friday, March 28, 2014 / Notices 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: [FR Doc. 2014–06886 Filed 3–27–14; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION 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–2014–020 on the subject line. Paper Comments • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. mstockstill on DSK4VPTVN1PROD with NOTICES For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.15 Kevin M. O’Neill, Deputy Secretary. All submissions should refer to File Number SR–CBOE–2014–020. 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–CBOE– 2014–020, and should be submitted on or before April 18, 2014. [Release No. 34–71785; File No. SR– NASDAQ–2014–028] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to the Clearly Erroneous Rule March 24, 2014. 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 March 18, 2014, The NASDAQ Stock Market LLC (‘‘NASDAQ’’ or ‘‘Exchange’’), 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 extend the pilot period of recent amendments to Rule 11890, concerning clearly erroneous transactions. The text of the proposed rule change is available from NASDAQ’s Web site at https://nasdaq.cchwallstreet.com/ Filings/, at NASDAQ’s principal office, 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 15 17 CFR 200.30–3(a)(12). VerDate Mar<15>2010 18:57 Mar 27, 2014 2 17 Jkt 232001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00128 Fmt 4703 Sfmt 4703 17621 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this filing is to extend the effectiveness of the Exchange’s current rule applicable to Clearly Erroneous Executions. Portions of Rule 11890, explained in further detail below, are currently operating as a pilot program set to expire on April 8, 2014.3 The Exchange proposes to extend the pilot program to coincide with the pilot period for the Plan to Address Extraordinary Market Volatility Pursuant to Rule 608 of Regulation NMS under the Act (the ‘‘Limit Up-Limit Down Plan’’ or the ‘‘Plan’’), including any extensions to the pilot period for the Plan.4 On September 10, 2010, the Commission approved, for a pilot period, a proposed rule change to Rule 11890 to provide for uniform treatment: (1) Of clearly erroneous execution reviews in multi-stock events involving twenty or more securities; and (2) in the event transactions occur that result in the issuance of an individual stock trading pause by the primary listing market and subsequent transactions that occur before the trading pause is in effect on the Exchange.5 The Exchange also adopted additional changes to Rule 11890 that reduced the ability of the Exchange to deviate from the objective standards set forth in Rule 11890,6 and in 2013, adopted a provision designed to address the operation of the Plan.7 The Exchange believes the benefits to market participants from the more objective clearly erroneous executions rule should continue on a pilot basis to coincide with the operation of the Limit Up-Limit Down Plan. The Exchange believes that continuing the pilot will protect against any unanticipated consequences. Thus, the Exchange believes that the protections of the Clearly Erroneous Rule should continue while the industry gains further experience operating the Plan. 2. Statutory Basis The statutory basis for the proposed rule change is Section 6(b)(5) of the Securities Exchange Act of 1934 (the 3 Securities Exchange Act Release No. 70529 (Sept. 26, 2013), 78 FR 60977 (Oct. 2, 2013) (SR– NASDAQ–2013–127). 4 Securities Exchange Act Release No. 67091 (May 31, 2012), 77 FR 33498 (June 6, 2012). 5 Securities Exchange Act Release No. 62886 (Sept. 10, 2010), 75 FR 56613 (Sept. 16, 2010). 6 Id. 7 Securities Exchange Act Release No. 68819 (Feb. 1, 2013), 78 FR 9438 (Feb. 8, 2013) (SR–NASDAQ– 2013–022); see also Rule 11890(g). E:\FR\FM\28MRN1.SGM 28MRN1

Agencies

[Federal Register Volume 79, Number 60 (Friday, March 28, 2014)]
[Notices]
[Pages 17619-17621]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-06886]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71774; File No. SR-CBOE-2014-020]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change Relating to Certain CBOE Real-Time Data Feeds and 
a New Book Depth Data Feed

March 24, 2014.
    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 March 11, 2014, 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 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Chicago Board Options Exchange, Incorporated (the ``Exchange'' or 
``CBOE'') proposes to (i) update the description of the data included 
in certain CBOE real-time data feeds and (ii) offer a book depth data 
feed for CBOE listed options. 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 purpose of the proposed rule change is to (i) update the 
description of the data included in the following CBOE real-time data 
feeds: BBO Data Feed, Complex Order Book (``COB'') Data Feed and 
Flexible Exchange option (``FLEX'') Data Feed, and (ii) offer a book 
depth data feed for CBOE listed options.
BBO, COB and FLEX Data Feeds
    The BBO Data Feed is a real-time, low latency data feed that 
includes CBOE ``BBO data'' and last sale data.\3\ The BBO and last sale 
data contained in the BBO Data Feed is identical to the data that CBOE 
sends to the Options Price Reporting Authority (``OPRA'') for 
redistribution to the public.\4\ The BBO Data Feed is made available by 
CBOE's affiliate Market Data Express, LLC (``MDX'').
---------------------------------------------------------------------------

    \3\ The BBO Data Feed includes the ``best bid and offer,'' or 
``BBO'', consisting of all outstanding quotes and standing orders at 
the best available price level on each side of the market, with 
aggregate size (``BBO data,'' sometimes referred to as ``top-of-book 
data''). Data with respect to executed trades is referred to as 
``last sale'' data. See Securities Exchange Act Release No. 69438 
(April 23, 2013), 78 FR 25334 (April 30, 2013).
    \4\ The Exchange notes that MDX makes available to Customers the 
BBO data and last sale data that is included in the BBO Data Feed no 
earlier than the time at which the Exchange sends that data to OPRA. 
A ``Customer'' is any entity that receives the BBO Data Feed, either 
directly from MDX's system or through a connection to MDX provided 
by an approved redistributor (i.e., a market data vendor or an 
extranet service provider) and then distributes it externally or 
uses it internally.
---------------------------------------------------------------------------

    The BBO Data Feed also includes certain data that is not included 
in the data sent to OPRA, namely, (i) totals of customer versus non-
customer contracts at the BBO, (ii) All-or-None contingency orders 
priced better than or equal to the BBO, (iii) BBO data and last sale 
data for complex strategies (e.g., spreads, straddles, buy-writes, 
etc.), (iv) BBO data and last sale data for FLEX options traded on the 
CBOE FLEX Hybrid Trading System, including BBO data and last sale data 
for FLEX complex strategies (collectively, ``FLEX BBO data''), and (v) 
expected opening price (``EOP'') and expected opening size (``EOS'') 
information that is disseminated prior to the opening of the market and 
during trading rotations (collectively, ``EOP/EOS data'').
    The COB Data Feed is a real-time data feed that includes data 
regarding the Exchange's Complex Order Book and related complex order 
information. The COB Data Feed includes BBO quotes and identifying 
information for all CBOE-traded complex order strategies, as well as 
all executed CBOE complex order trades (and identifies whether the 
trade was a customer trade, or whether a complex order in the COB is a 
customer order).\5\ The FLEX Data Feed is a real-time data feed that 
includes FLEX BBO data, as described above.\6\ The COB and FLEX Data 
Feeds are both made available by MDX and are subsets of the BBO Data 
Feed.
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    \5\ See Securities Exchange Act Release No. 70118 (August 5, 
2013), 78 FR 48757 (August 9, 2013).
    \6\ See Securities Exchange Act Release No. 69438 (April 23, 
2013), 78 FR 25334 (April 30, 2013).
---------------------------------------------------------------------------

    The Exchange, through MDX, plans to make additional data available 
in the BBO, COB and FLEX Data Feeds and therefore proposes to update 
the description of the data included in the feeds. Specifically, the 
Exchange proposes to add end-of-day (``EOD'') summary messages and 
recap messages to the feeds. EOD summary messages are messages that 
will be disseminated after the close of a trading session that will 
include summary information about trading in CBOE listed options. Such 
information includes product name, opening price, high and low price 
during the trading session and last sale price. Recap messages are 
messages that will be disseminated during a trading session any time 
there is a change in the open, high, low or last sale price of a CBOE 
listed option. In addition to open, high, low and last sale prices, 
such messages will also include product name and total volume traded in 
the product during the trading session.
    At this time, the Exchange does not intend to amend the fees for 
the BBO and COB Data Feeds. The FLEX Data Feed is currently made 
available at no charge.

[[Page 17620]]

Book Depth Data Feed
    The Exchange proposes to make available, through MDX, a real-time, 
low latency data feed that includes all outstanding quotes and standing 
orders up to the first five price levels on each side of the market, 
with aggregate size (``Book Depth Data Feed'').\7\ The Book Depth Data 
Feed will also include all of the other data contained in the BBO Data 
Feed (as described above), including last sale data and BBO and book 
depth data for complex strategies.\8\ The data in the Book Depth Data 
Feed would be refreshed periodically during the trading session.
---------------------------------------------------------------------------

    \7\ The Exchange notes that MDX will make available the BBO and 
last sale data that is included in the Book Depth Data Feed no 
earlier than the time at which the Exchange sends that data to OPRA.
    \8\ With the introduction of the Book Depth Data Feed, the COB 
Data Feed would also be enhanced to include book depth data for 
complex strategies.
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    The Exchange will file a separate proposed rule change to establish 
the fees to be charged by MDX for the Book Depth Data Feed.
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.\9\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \10\ 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) \11\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers because the enhanced BBO, COB and FLEX Data Feeds 
and the Book Depth Data Feed would be made available by MDX to any 
market participant that wishes to subscribe to any of the feeds.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
    \11\ Id.
---------------------------------------------------------------------------

    In adopting Regulation NMS, the Commission granted self-regulatory 
organizations and broker-dealers increased authority and flexibility to 
offer new and unique market data to the public. It was believed that 
this authority would expand the amount of data available to consumers, 
and also spur innovation and competition for the provision of market 
data. The Exchange believes that this proposal is in keeping with those 
principles by promoting increased transparency through the 
dissemination of useful data and also by clarifying its availability to 
market participants. The Exchange believes that updating the 
description of the BBO, COB and FLEX Data Feeds will benefit users by 
making clearer what data is included in each feed. The Exchange 
believes offering the Book Depth Data Feed will increase transparency, 
help attract order flow and provide investors with additional 
information that may help to inform their trading decisions.

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

    CBOE does not believe that the proposed rule change will impose any 
burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act. The proposal to update the 
description of the BBO, COB and FLEX Data Feeds is intended not to 
address any competitive issue but rather to reflect the data that is 
included in the feeds. The Exchange notes other exchanges offer depth 
of market products similar to the Book Depth Data Feed. For example, 
BATS offers Multicast PITCH, which is their depth of market and last 
sale feed similar to the Book Depth Data Feed. The International 
Securities Exchange offers a data feed that shows the top five price 
levels entitled Depth of Market. NASDAQ OMX PHLX offers a Depth of 
Market data feed that includes full depth of quotes and orders and last 
sale data for options listed on PHLX. NASDAQ Options Market offers a 
product entitled ``NASDAQ ITCH-to-Trade Options'' (ITTO) that is 
similar to the Book Depth Data Feed. NYSE offers market data products 
entitled ``NYSE ArcaBook for Amex Options'' and ``NYSE ArcaBook for 
Arca Options'' that include top-of-book, last sale and depth of quote 
data. In addition, the OPRA data feed is a significant competitive 
alternative to both the BBO Data Feed and the Book Depth Data Feed.
    The Exchange believes the enhanced BBO, COB and FLEX Data Feeds and 
the Book Depth Data Feed will help to attract new users and new order 
flow to the Exchange, thereby improving the Exchange's ability to 
compete in the market for options order flow and executions.

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 \12\ and 
Rule 19b-4(f)(6) \13\ thereunder.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    The Exchange has requested that the Commission waive the 30-day 
operative delay so that the proposal may become operative immediately 
upon filing. The Exchange has stated that it does not intend to amend 
the fees for the BBO and COB Data Feeds, that the FLEX Data Feed is 
currently made available at no charge, and that the proposed Book Depth 
Data Feed mostly includes data already made available by the Exchange 
through the BBO Data Feed. The Commission believes that waiving the 30-
day operative delay is consistent with the protection of investors and 
the public interest, because such waiver will enable market 
participants to receive more market data via the Exchange's new and 
existing data feeds at no charge. For this reason, the Commission 
hereby waives the 30-day operative delay requirement and designates the 
proposed rule change to be operative upon filing.\14\
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    \14\ For purposes only of waiving the operative delay for this 
proposal, 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 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.

[[Page 17621]]

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-2014-020 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CBOE-2014-020. 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-CBOE-2014-020, 
and should be submitted on or before April 18, 2014.
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    \15\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-06886 Filed 3-27-14; 8:45 am]
BILLING CODE 8011-01-P
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