Self-Regulatory Organizations; CBOE Futures Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Position Limits for Individual Stock Based and Exchange-Traded Fund Based Volatility Index Security Futures, 54313-54315 [2014-21648]
Download as PDF
mstockstill on DSK4VPTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 176 / Thursday, September 11, 2014 / Notices
offered by OPRA for a fee. Close
substitute products also are offered by
several competitors.31 Because market
data users can find suitable substitutes
for most proprietary market data
products, a market that overprices its
market data products stands a high risk
that users may substitute one or more
other sources of market data information
for its own.
Those competitive pressures imposed
by available alternatives are evident in
the Exchange’s proposed pricing. As
noted above, the proposed non-display
fees are generally lower than the
maximum non-display fees charged by
other exchanges such as NASDAQ and
Phlx, for comparable products.32
In addition to the competition and
price discipline described above, the
market for proprietary data products is
also highly contestable because market
entry is rapid and inexpensive. The
history of electronic trading is replete
with examples of entrants that swiftly
grew into some of the largest electronic
trading platforms and proprietary data
producers: Archipelago, Bloomberg
Tradebook, Island, RediBook, Attain,
TrackECN, and BATS. As noted above,
BATS launched as an ATS in 2006 and
became an exchange in 2008. Two new
options exchanges have launched
operations since December 2012.33
In establishing the proposed fees, the
Exchange considered the
competitiveness of the market for
proprietary options market data and all
of the implications of that competition.
The Exchange believes that it has
considered all relevant factors, and has
not considered irrelevant factors, in
order to establish fair, reasonable, and
not unreasonably discriminatory fees
and an equitable allocation of fees
among all users. The existence of
numerous alternatives to the Exchange’s
products, including proprietary data
from other sources, ensures that the
Exchange cannot set unreasonable fees,
or fees that are unreasonably
discriminatory, when vendors and
subscribers can elect these alternatives
or choose not to purchase a specific
proprietary data product if the attendant
fees are not justified by the returns that
any particular vendor or data recipient
would achieve through the purchase.
31 See
supra notes 15–18.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective
upon filing pursuant to Section
19(b)(3)(A) 34 of the Act and
subparagraph (f)(2) of Rule 19b–4 35
thereunder, because it establishes a due,
fee, or other charge imposed by the
Exchange.
At any time within 60 days of the
filing of such proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B)36 of the Act 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 rulecomments@sec.gov. Please include File
Number SR–NYSEArca–2014–94 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–NYSEArca–2014–94. 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
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
36 15 U.S.C. 78s(b)(2)(B).
35 17
supra note 28.
VerDate Mar<15>2010
18:29 Sep 10, 2014
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
office of the 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–
NYSEArca–2014–94 and should be
submitted on or before October 2, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.37
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–21649 Filed 9–10–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–73009; File No. SR–CFE–
2014–004]
Self-Regulatory Organizations; CBOE
Futures Exchange, LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change Relating to
Position Limits for Individual Stock
Based and Exchange-Traded Fund
Based Volatility Index Security Futures
September 5, 2014.
Pursuant to Section 19(b)(7) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
August 26, 2014 CBOE Futures
Exchange, LLC (‘‘CFE’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘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
34 15
32 Id.
33 See
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.
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37 17
1 15
E:\FR\FM\11SEN1.SGM
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(7).
11SEN1
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Federal Register / Vol. 79, No. 176 / Thursday, September 11, 2014 / Notices
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 August 26,
2014.
I. Self-Regulatory Organization’s
Description of the Proposed Rule
Change
CFE proposes to amend the position
limits for Individual Stock Based and
Exchange-Traded Fund Based Volatility
Index Security Futures (‘‘Volatility
Index security futures’’) set forth in CFE
Rule 1602(d).
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 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
mstockstill on DSK4VPTVN1PROD with NOTICES
1. Purpose
CFE is amending the three tiered
position limit levels for Volatility Index
security futures. CFE Rule 1602(d)
currently provides that a person may
not own or control:
(1) More than 50,000 contracts net
long or net short in all Volatility Index
security futures contracts on the same
Volatility Index combined;
(2) more than 30,000 contracts net
long or net short in the expiring security
futures contract month for a Volatility
Index security future; and
27
U.S.C. 7a–2(c).
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18:29 Sep 10, 2014
Jkt 232001
(3) more than 13,500 security
contracts net long or net short in the
expiring contract for a Volatility Index
security future held during the last 5
trading days for the expiring Volatility
Index security futures contract month.3
CFE periodically reviews position
limit levels and has determined to make
the following changes to the position
limit levels for Volatility Index security
futures as follows:
(1) Reduce the all months position
limit from 50,000 contracts to 30,000
contracts;
(2) reduce the spot month position
limit from 30,000 contracts to 10,000
contracts; and
(3) replace the 5 days-to-expiration
spot position limit of 13,500 contracts
with a 1 day-to-expiration spot position
limit of 1,000 contracts.4
The Exchange will continue to
periodically review position limit levels
for Volatility Index security futures in
order to determine whether the existing
position limit levels should remain or
be adjusted. Accordingly, the Exchange
may determine to increase the position
limit levels that are the subject of this
filing in the future. Among other things,
CFE will review trading volume data
and liquidity in the applicable Volatility
Index security futures contract, and may
propose alternate position limit levels.
Any such change would be
accomplished by way of a rule filing
with the Commission.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
3 For
the purposes of CFE Rule 1602(d), the
positions of all accounts directly or indirectly
owned or controlled by a person or persons, and the
positions of all accounts of a person or persons
acting pursuant to an expressed or implied
agreement or understanding shall be cumulated.
The first and second tier position limit levels for
Volatility Index security futures are equivalent to
the first and second tier position limit levels for
security options on these same Volatility Indexes.
See Chicago Board Options Exchange, Incorporated
Rule 24.4C. (Position Limits for Individual Stock or
ETF Based Volatility Index Options). CFE adopted
the third tier position limit level for Volatility Index
security futures because it was required by CFTC
Regulation § 41.25(a)(3)(i). In relevant part, CFTC
Regulation § 41.25(a)(3)(i) requires a designated
contract market to ‘‘adopt a net position limit no
greater than 13,500 (100-share) contracts applicable
to positions held during the last five trading days
of an expiring contract month [ ]’’ for security
futures contracts.
4 The Exchange is replacing the 5-days-toexpiration limit with a 1-day-to-expiration limit
because any potential pressures on liquidity are
most acute on the day before expiration. In
addition, this change is consistent with CFTC
Regulation § 41.25(a)(3)(i) described in footnote 3
because the newly reduced spot month position
limit of 10,000 contracts is applicable sooner than
the ‘‘last five trading days of an expiring contract
month’’ and is less than the statutory maximum of
13,500 contracts during that five-day period.
PO 00000
Frm 00053
Fmt 4703
Sfmt 4703
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 prevent fraudulent and
manipulative acts and practices,
promote just and equitable principles of
trade, 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.
Specifically, the Exchange believes
that the position limit level changes
being made by this filing will diminish
the opportunity to manipulate Volatility
Index security futures and will protect
against disruption in the underlying
market.
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. Specifically, the
Exchange believes that the proposed
rule change will not burden competition
because the new position limit levels
will apply to all persons and the revised
rule provisions do not discriminate
between market participants.
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 September 11,
2014.
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
5 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
7 15 U.S.C. 78s(b)(1).
6 15
E:\FR\FM\11SEN1.SGM
11SEN1
Federal Register / Vol. 79, No. 176 / Thursday, September 11, 2014 / Notices
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
[Release No. 34–73011; File No. SR–
NYSEARCA–2014–93]
• 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–2014–004 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
All submissions should refer to File
Number SR–CFE–2014–004. 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–
2014–004, and should be submitted on
or before October 2, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–21648 Filed 9–10–14; 8:45 am]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending Its Fees for
Non-Display Use of NYSE Arca
Integrated Fee, NYSE ArcaBook, NYSE
Arca Trades, and NYSE Arca BBO, and
To Establish a Fee for Managed NonServices for NYSE Arca BBO
September 5, 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 August
25, 2014, NYSE Arca, Inc. (‘‘Exchange’’
or ‘‘NYSE Arca’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’ or ‘‘SEC’’) the proposed
rule change as described in Items I, II,
and III below, which Items have been
prepared by the self-regulatory
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 its
fees for non-display use of NYSE Arca
Integrated Fee, NYSE ArcaBook, NYSE
Arca Trades, and NYSE Arca BBO, and
to establish a fee for managed nonservices for NYSE Arca BBO, operative
on September 1, 2014. 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.
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.
BILLING CODE 8011–01–P
1 15
8 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
18:29 Sep 10, 2014
2 17
Jkt 232001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00054
Fmt 4703
Sfmt 4703
54315
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 its
non-display fees for NYSE Arca
Integrated Feed, NYSE ArcaBook, NYSE
Arca Trades, and NYSE Arca BBO, and
to establish a fee for managed nondisplay services for NYSE Arca BBO,
operative on September 1, 2014.3 The
Exchange also proposes corresponding
changes to the Fee Schedule text to
remove references to the current
category descriptions.
The Exchange established the current
non-display and managed non-display
services fees for NYSE Arca Integrated
Feed, NYSE ArcaBook, NYSE Arca
Trades, and NYSE Arca BBO in April
2013.4 The Exchange now proposes to
change those fees and establish a fee for
managed non-display services for NYSE
Arca BBO.
Under the proposal, non-display use
would continue to mean accessing,
processing, or consuming an Exchange
data product delivered via direct and/or
Redistributor 5 data feeds for a purpose
other than in support of a data
recipient’s display or further internal or
external redistribution (‘‘Non-Display
Use’’). As is the case today, non-display
and managed non-display services fees
would apply to the Non-Display Use of
the data product as part of automated
calculations or algorithms to support
trading decision-making processes or
the operation of trading platforms.
The Exchange is proposing to expand
the types of uses considered NonDisplay Use to also include non-trading
uses. In addition, the proposal would
specify that Non-Display Use would
include any trading use, rather than
only certain types of trading, such as
high frequency or algorithmic trading,
as under the current fee structure.
Under the proposal, examples of NonDisplay Use would include any trading
in any asset class, automated order or
quote generation and/or order pegging,
price referencing for algorithmic trading
or smart order routing, operations
control programs, investment analysis,
order verification, surveillance
programs, risk management,
3 The Exchange’s affiliates have submitted or will
be submitting similar proposals. See, e.g., SR–
NYSE–2014–43.
4 See Securities Exchange Act Release No. 69315
(April 5, 2013), 78 FR 21668 (April 11, 2013) (SR–
NYSEArca–2013–37) (‘‘2013 Release’’).
5 ‘‘Redistributor’’ means a vendor or any person
that provides a real-time NYSE data product to a
data recipient or to any system that a data recipient
uses, irrespective of the means of transmission or
access.
E:\FR\FM\11SEN1.SGM
11SEN1
Agencies
[Federal Register Volume 79, Number 176 (Thursday, September 11, 2014)]
[Notices]
[Pages 54313-54315]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-21648]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-73009; File No. SR-CFE-2014-004]
Self-Regulatory Organizations; CBOE Futures Exchange, LLC; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to Position Limits for Individual Stock Based and Exchange-
Traded Fund Based Volatility Index Security Futures
September 5, 2014.
Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on August 26, 2014 CBOE
Futures Exchange, LLC (``CFE'' or ``Exchange'') filed with the
Securities and Exchange Commission (``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
[[Page 54314]]
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 August 26, 2014.
---------------------------------------------------------------------------
\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 amend the position limits for Individual Stock
Based and Exchange-Traded Fund Based Volatility Index Security Futures
(``Volatility Index security futures'') set forth in CFE Rule 1602(d).
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 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 is amending the three tiered position limit levels for
Volatility Index security futures. CFE Rule 1602(d) currently provides
that a person may not own or control:
(1) More than 50,000 contracts net long or net short in all
Volatility Index security futures contracts on the same Volatility
Index combined;
(2) more than 30,000 contracts net long or net short in the
expiring security futures contract month for a Volatility Index
security future; and
(3) more than 13,500 security contracts net long or net short in
the expiring contract for a Volatility Index security future held
during the last 5 trading days for the expiring Volatility Index
security futures contract month.\3\
---------------------------------------------------------------------------
\3\ For the purposes of CFE Rule 1602(d), the positions of all
accounts directly or indirectly owned or controlled by a person or
persons, and the positions of all accounts of a person or persons
acting pursuant to an expressed or implied agreement or
understanding shall be cumulated.
The first and second tier position limit levels for Volatility
Index security futures are equivalent to the first and second tier
position limit levels for security options on these same Volatility
Indexes. See Chicago Board Options Exchange, Incorporated Rule
24.4C. (Position Limits for Individual Stock or ETF Based Volatility
Index Options). CFE adopted the third tier position limit level for
Volatility Index security futures because it was required by CFTC
Regulation Sec. 41.25(a)(3)(i). In relevant part, CFTC Regulation
Sec. 41.25(a)(3)(i) requires a designated contract market to
``adopt a net position limit no greater than 13,500 (100-share)
contracts applicable to positions held during the last five trading
days of an expiring contract month [ ]'' for security futures
contracts.
---------------------------------------------------------------------------
CFE periodically reviews position limit levels and has determined
to make the following changes to the position limit levels for
Volatility Index security futures as follows:
(1) Reduce the all months position limit from 50,000 contracts to
30,000 contracts;
(2) reduce the spot month position limit from 30,000 contracts to
10,000 contracts; and
(3) replace the 5 days-to-expiration spot position limit of 13,500
contracts with a 1 day-to-expiration spot position limit of 1,000
contracts.\4\
---------------------------------------------------------------------------
\4\ The Exchange is replacing the 5-days-to-expiration limit
with a 1-day-to-expiration limit because any potential pressures on
liquidity are most acute on the day before expiration. In addition,
this change is consistent with CFTC Regulation Sec. 41.25(a)(3)(i)
described in footnote 3 because the newly reduced spot month
position limit of 10,000 contracts is applicable sooner than the
``last five trading days of an expiring contract month'' and is less
than the statutory maximum of 13,500 contracts during that five-day
period.
---------------------------------------------------------------------------
The Exchange will continue to periodically review position limit
levels for Volatility Index security futures in order to determine
whether the existing position limit levels should remain or be
adjusted. Accordingly, the Exchange may determine to increase the
position limit levels that are the subject of this filing in the
future. Among other things, CFE will review trading volume data and
liquidity in the applicable Volatility Index security futures contract,
and may propose alternate position limit levels. Any such change would
be accomplished by way of a rule filing with the Commission.
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 prevent fraudulent and manipulative acts and practices, promote just
and equitable principles of trade, 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).
---------------------------------------------------------------------------
Specifically, the Exchange believes that the position limit level
changes being made by this filing will diminish the opportunity to
manipulate Volatility Index security futures and will protect against
disruption in the underlying market.
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. Specifically, the Exchange believes that the
proposed rule change will not burden competition because the new
position limit levels will apply to all persons and the revised rule
provisions do not discriminate between market participants.
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 September 11,
2014.
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\
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\7\ 15 U.S.C. 78s(b)(1).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
[[Page 54315]]
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-2014-004 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-CFE-2014-004. 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-2014-004,
and should be submitted on or before October 2, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-21648 Filed 9-10-14; 8:45 am]
BILLING CODE 8011-01-P