Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Functionality of Public Automated Routing System, 65263-65268 [2014-26010]
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Federal Register / Vol. 79, No. 212 / Monday, November 3, 2014 / Notices
fee, from unanimity to the affirmative
vote of two-thirds of all Participants
entitled to vote;
• the voting requirement to request
system changes other than those related
to the processor function from a
unanimous vote to the affirmative vote
of a majority of all Participants entitled
to vote;
• establishes as the voting
requirement to select a new processor—
the affirmative vote of two-thirds of all
Participants entitled to vote;
• the default voting requirement from
unanimity to the affirmative vote of a
majority of all Participants entitled to
vote.
III. Discussion
After careful review, the Commission
finds that the proposed amendment to
the Plan is consistent with the
requirements of the Act and the rules
and regulations thereunder,8 and, in
particular, Section 11A(a)(1) of the Act 9
and Rule 608 thereunder 10 in that they
are necessary or appropriate in the
public interest, for the protection of
investors and the maintenance of fair
and orderly markets, to remove
impediments to, and perfect the
mechanisms of, a national market
system.
A. Fee Setting
Amending the voting requirements, as
proposed by the Participants, should
provide the Participants with greater
flexibility to accomplish the goals of the
Plan. The change with respect to
eliminating a fee and reducing a fee
would harmonize the voting
requirement with the counterpart voting
requirements under the CTA Plan and
the CQ Plan. Changes with respect to
reducing a fee would also harmonize the
Plan with counterpart voting
requirement under the OPRA Plan.
These changes to the voting
requirements should provide the
Participants with greater flexibility
when amending the Plan’s fee schedule.
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B. System Changes
The change with respect to system
changes subjects all system changes to
the same voting requirement, thereby
providing Participants greater flexibility
and making it easier for the Participants
to arrive at decisions regarding
necessary system upgrades and changes.
The Commission notes that the CTA
Plan, the CQ Plan, and the OPRA Plan
8 The Commission has considered the proposed
amendment’s impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
9 15 U.S.C. 78k–1(a)(1).
10 17 CFR 240.608.
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all require a majority vote for decisions
relating to system changes.
C. Processor Selection
The Commission believes that a twothirds majority vote, rather than
unanimity, should facilitate decisionmaking regarding the selection of a
processor.
D. Default Voting Requirement
Changing the default voting
requirement to the affirmative vote of a
majority of Participants, from a
unanimous vote should provide greater
flexibility and facilitate the Participants’
ability to take action under the Plan.
The Commission notes that the CTA
Plan, the CQ Plan, and the OPRA Plan
require majority votes to act on matters
for which those plans do not specify a
voting requirement. Thus, the change
harmonizes requirements under the
Plan with corresponding requirements
under the CTA Plan, the CQ Plan, and
the OPRA Plan.
IV. Conclusion
It is therefore ordered, pursuant to
Section 11A of the Act,11 and Rule 608
thereunder,12 that the proposed
amendment to Nasdaq/UTP Plan (File
No. S7–24–89) is approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–26008 Filed 10–31–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–73450; File No. SR–CBOE–
2014–081]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Relating to Functionality
of Public Automated Routing System
October 28, 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 October
15, 2014, Chicago Board Options
Exchange, Incorporated (the ‘‘Exchange’’
or ‘‘CBOE’’) filed with the Securities
and Exchange Commission (the
11 15
U.S.C. 78k–1.
CFR 240.608.
13 17 CFR 200.30–3(a)(27).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
12 17
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‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to adopt Rule
6.12A (Public Automated Routing
System (PAR)) to describe the
functionality of the PAR workstation.
The text of the proposed rule change is
below and in Exhibit 1 (additions are
italicized; deletions are [bracketed]).
*
*
*
*
*
Chicago Board Options Exchange,
Incorporated Rules
*
*
*
*
*
Rule 6.12. Reserved
*
*
*
*
*
6.12A. Public Automated Routing
System (PAR)
Rule 6.12A. The PAR workstation
(PAR) is an Exchange-provided order
management tool for use on the
Exchange’s trading floor by Trading
Permit Holders or Exchange PAR
Officials (see Rule 7.12 for a description
of the responsibilities of PAR Officials).
The Exchange’s Order Handling System
allows for orders to be routed to and
from PAR in accordance with TPH and
Exchange order routing parameters and
the Rules including, but not limited to,
this Rule 6.12A and Chapters VI, VII,
and VIII of the Rules and Rules 6.2B,
6.13, 6.14B, 6.53, 6.53C, 6.74, 7.12, and
8.51 thereunder.
(a) Order Routing. Eligible orders will
be routed to PAR in accordance with
TPH and Exchange order routing
parameters and the order’s terms.
(b) Order Handling. Once an order is
on PAR, the order shall be processed in
accordance with the manual or
automatic settings established by the
user and the order’s terms. Subject to
the forgoing, once an order is on PAR,
the user may:
(i) Submit the order into the Hybrid
Trading System (including for execution
against quotes and orders resting in the
electronic book and exposure to
appropriate electronic auctions
pursuant to Rules 6.13A, 6.14A, 6.53C,
6.74B, and 24B.5B);
(ii) Execute the order in open outcry,
including against other orders on PAR
and with other TPHs or PAR Officials in
accordance with Rules 6.74 and 7.12;
(iii) Route the order to an Order
Management Terminal (OMT)
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designated by the TPH or otherwise
return the order to the order entry firm
or originating TPH;
(iv) Route the order or a portion
thereof to an away exchange in
accordance with Rules 6.14B and 6.81;
(v) Reflect the price and/or quantity
related to the order or a portion thereof
in the displayed Exchange BBO
(applicable only in options classes on
the Hybrid 3.0 Platform); or
(vi) Cancel the unexecuted order,
including upon receipt of a cancel
request from the order entry firm or
originating TPH or as prescribed by
Exchange or TPH order routing
parameters.
(c) Eligible Order Types. Unless
otherwise specified in the Rules, all
order types specified in Rule 6.53 are
eligible to route to PAR, except that the
order types defined in Rules 6.53(h),
6.53(o)–(r), and 6.53(t)–(v) may not be
routed to PAR.
(d) Preemption. To the extent that any
provision(s) of this Rule 6.12A conflicts
with any provision(s) of any Regulatory
Circular previously issued by the
Exchange regarding the operation or
functionality of PAR, this Rule
supersedes and supplants the limited
conflicting provision(s) of any such
Regulatory Circular.
*
*
*
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The text of the proposed rule change
is also 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
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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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to adopt new
Rule 6.12A to describe its existing PAR
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operations and PAR workstation 3
functionality. The Exchange notes that
PAR is currently in use on the Exchange
and that PAR is referenced throughout
the Rules 4 and in various Regulatory
Circulars.5 While there are various
references to PAR throughout the Rules
and in Regulatory Circulars, the Rules
do not describe the substantive aspects
of the order handling process available
to users once orders are received on
PAR (and thus how Trading Permit
Holders (‘‘TPHs’’) or PAR Officials,6 as
3 The PAR workstation is an Exchange-provided
facility used to operate the Exchange’s Public
Automated Routing System. The Public Automated
Routing System and Public Automated Routing
workstation are referred to collectively as ‘‘PAR’’
herein.
4 The Exchange is currently working on a separate
filing that would consolidate the Rules that interact
with PAR (see, e.g., Rule 6.2B.03(c)(ii); Rule
6.8(d)(iv)(A); Rule 6.13(b)(i)(A)(2); Rule 6.13(b)(iii);
Rule 6.13(b)(iv); Rule 6.13(b)(v)(B); Rule 6.53C(c);
Rule 6.53C(d)(vi); Rule 6.53C.06(b); Rule
6.53C.07(a)(3); Rule 6.53C.07(b); Rule 6.53C.07(e);
Rule 7.12; Rule 8.51.10) into a single Rule.
5 See, e.g., Regulatory Circular RG97–018 (Order
Routing of Contingency Orders) (February 7, 1997);
RG97–019 (New PAR Functionality—Contingency,
Discretionary Orders) (February 7, 1997); RG03–003
(Limit Order Display Requirements) (January 10,
2003); RG03–029 (Market Linkage Implementation
II) (April 17, 2003); RG03–043 (Failure to Address
Orders and Honor Firm Quote) (June 25, 2003);
RG03–064 (Market Maker Orders Now Book-Eligible
in Hybrid Classes) (July 31, 2003); RG04–056 (How
Firm Quote Applies to Marketable Orders Entered
At or Near the Close) (April 30, 2004); RG04–066
(All or None (AON) Orders in Hybrid Classes) (June
2, 2004); RG04–068 (Routing of Discretionary
Orders to DPM PAR Workstations) (June 4, 2004);
RG05–017 (Autobook) (February 11, 2005); RG07–
046 (PAR Reporting Enhancements) (April 13,
2007); RG07–084 (Hybrid 2.0 Auto-Ex on SingleList Classes) (August 3, 2007); RG07–104 (EPW
Activation in Single-List, Hybrid 2.0 Classes)
(October 8, 2007); RG07–112 (Hybrid Auto-Ex and
‘‘Exchange Prescribed Widths’’ (EPWs)) (November
5, 2007); RG09–084 (New Option Linkage
Implementation) (August 14, 2009); RG11–005
(CBOEdirect Version 8.5 System Modifications)
(January 13, 2011); RG11–074 (Processing of StockOption Strategy Orders) (June 17, 2011); RG11–102
(Price Protection Enhancements) (August 26, 2011);
RG12–037 (Prefix Usage for SPX Combination
(‘‘Combo’’) Orders) (February 29, 2012); RG13–083
(New Order Designations) (June 5, 2013); RG13–105
(New Order Designations) (July 29, 2013); RG13–
154 (Exchange Rule 6.51—‘‘Reporting Duties’’)
(November 29, 2013); RG14–037 (PAR
Enhancements) (March 25, 2014); RG14–047 (PAR
Enhancements) (April 2, 2014); RG14–096 (PAR
Enhancements) (June 20, 2014); see also
Information Circular IC03–08 (Systems
Enhancements—Complex Orders and Linkage)
(January 23, 2003); IC03–38 (Complex Order TNT
Entry) (March 21, 2003); IC04–018 (Floor Broker
Workstation (FBW Enhancements) (February 17,
2004); IC04–020 (CBOE Systems Enhancements)
(February 17, 2004); IC05–006 (Complex Order TNT
Entry) (January 24, 2005); IC05–112 (PAR AutoLink
and COB) (August 31, 2005); IC06–076 (PAR Routed
Orders) (June 23, 2006).
6 A PAR Official is an Exchange employee or
independent contractor whom the Exchange may
designate as being responsible for (i) operating the
PAR workstation in a DPM trading crowd with
respect to the classes of options assigned to him/
her; (ii) when applicable, maintaining the book with
respect to the classes of options assigned to him/
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applicable, may process such orders).
The purpose of this rule filing is to
codify the details of the Exchange’s
existing PAR operations and
functionalities within the Rules. The
Exchange believes that adding details to
the Rules regarding PAR would be
useful to TPHs.
The Exchange is continuously
evaluating additions to the Rules,
particularly with respect to systems
processes and order handling. The
Exchange believes that the adoption of
Rule 6.12A describing PAR
functionality is consistent with this
effort.
Background
PAR is a touch-screen order routing
and handling tool that is used by TPHs
and PAR Officials on the floor of the
Exchange to manage and process orders
that are routed to PAR for processing.
PAR is equipped with a dynamic,
graphical display that allows users to
manually and automatically execute
orders electronically through the
Exchange’s central trading engine and in
open outcry. In general, PAR allows
users to specify execution quantities,
split trades among multiple contra
parties, report trades, route orders to the
book, and generate trading reports,
including a detailed history on all
activity conducted on the workstation.
The Exchange operates a dynamic
order handling system (‘‘OHS’’),7 which
allows orders to be routed, processed,
and transmitted to the Exchange’s trade
engine, in a variety of ways on the
Hybrid Trading System. The OHS may
route orders directly to the Exchange’s
trade engine for automatic execution
and book entry, to PAR workstations
located in the trading crowds for
manual handling, and/or to other order
management terminals (‘‘OMTs’’)
located in booths on the floor of the
Exchange. PAR receives orders through
the OHS according to Exchange and
TPH routing parameter configurations.
A TPH or PAR Official may select an
order on the workstation and enter trade
information such as execution quantity,
price, and contra party information. The
PAR interface also allows the user to
direct an order to be executed or booked
her; and (iii) effecting proper executions of orders
placed with him/her. The PAR Official may not be
affiliated with any Trading Permit Holder that is
approved to act as a Market-Maker. Rule 7.12(a).
The duties and obligations of PAR Officials are set
forth in Rule 7.12.
7 The Exchange completed the rollout of the OHS
in 2008, which replaced the Exchange’s Order
Routing System (‘‘ORS’’). OHS resides within the
Exchange’s central trading platform, CBOE
Command and thus, functions on same platform as
the Exchange’s trade processing engine, resulting in
speedier processing and improved order handling.
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by the Exchange’s trade engine. Once
execution of an order is completed, PAR
transmits the completed execution (also
referred to as a ‘‘fill’’), back to the OHS.
PAR users can also transmit to the trade
engine a portion of a selected order to
be executed or booked within the trade
engine. In addition, PAR allows users to
execute orders in open outcry and
record information about open outcry
trades for audit-trail purposes. These
functions are described in greater detail
below. PAR workstations may be used
in the form of fixed workstation
terminals or mobile devices.
PAR was introduced at the Exchange
in 1994 as an innovative trading
automation solution. In general, PAR
was developed to automate the manual
trading process in open outcry, which
previously required the use of paper
tickets to execute customer orders.
Rather than entering orders and
executions into TPH computer systems,
transmitting order and trade execution
information to and from the Exchange’s
trade engine, printing order tickets and
fill reports, and physically delivering
the order tickets and fill reports to
counterparty brokers on the floor of the
Exchange and to the Options Clearing
Corporation, PAR allows users to
process orders directly through the OHS
and from TPH trading systems.
Initially, PAR was placed in use in
limited areas on the floor of the
Exchange.8 By 1997, PAR functionality
was enhanced to allow the direct
routing of various order types from the
Exchange’s system to PAR, including
the following types of orders: All or
None; Opening Only; Immediate or
Cancel; Market on Close; Fill or Kill;
Closing Only; Minimum Quantity;
Market if Touched; Stop; Not Held; and
Stop Limit.9 Notably, whether a
particular order or order type routed to
PAR was (and continues to be) a
function of parameter controls, set by
TPHs and the Exchange, that allow
different order types to be selectively
routed at the discretion of, and in
accordance with, TPH order routing and
8 See Securities and Exchange Act Release No.
34–34876 (October 21, 1994), FR Doc No: 94–26765
(October 28, 1994) (Order Approving Proposed Rule
Change and Amendment No. 1 to a Proposed Rule
Change and Notice of Filing and Order Granting
Accelerated Approval of Amendment No. 2 to a
Proposed Rule Change by the Chicago Board
Options Exchange, Inc. Relating to Firm Quote
Responsibilities) (SR–CBOE–94–17).
9 See Regulatory Circular RG97–67 (Permanent
Approval of Order Routing of Contingency Orders)
(June 4, 1997); see also Securities and Exchange Act
Release No. 34–38702 (May 30, 1997), 62 FR 31184
[sic] (Notice of Filing and Order Granting
Accelerated Approval of Proposed Rule Change
Relating to Enhancements to the Electronic Order
Routing System) (June 6, 1997) (SR–CBOE–97–22).
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handling instructions.10 As technology,
regulation, and trading practices have
shifted, the Exchange has adapted and
enhanced PAR to meet the trading needs
of TPHs and the Exchange. The systemic
flexibility of PAR has been (and
continues to be) essential in maintaining
PAR as an effective order management
tool.
Until 2005, only Floor Brokers and
DPMs used PAR on the floor of the
Exchange, with DPMs handling agency
orders on PAR including orders that
could not be automatically executed and
thus, routed to PAR for manual
handling. In 2005, the Exchange
adopted Rule 7.12, which prohibited
DPMs from executing agency orders in
their appointed classes and allowed the
Exchange to place PAR Officials at PAR
workstations for the handling of orders
routed to PAR in accordance with
Exchange and TPH order routing
parameters.11 TPHs and PAR Officials
have continually used PAR on the floor
of the Exchange since Rule 7.12 was
adopted.
The Exchange considers PAR an
important Exchange facility and order
management tool for market participants
on the Exchange. Many of the orders
that cannot be automatically processed
by the Exchange’s central trade engine
are routed to PAR for handling. The
functionalities provided on PAR that
allow these orders to be processed are
essential to the functioning of the
Exchange and the maintenance of fair
and orderly markets. The proposed rule
describes the substantive functions of
PAR and its central operation.
Proposal
The Exchange proposes to adopt Rule
6.12A to describe the operation of PAR
and and [sic] functionality of its PAR
workstations. Among other things, Rule
6.12A would describe how orders may
be routed to PAR and what PAR users
may do to process orders once they are
received on PAR. Proposed Rule 6.12A
describes the substantive operation of
PAR and the primary functionality of
the PAR workstation. The proposed
Rule is not intended as a user manual
or software tutorial. The Exchange notes
that PAR does not allow market
10 See
Id.
Securities and Exchange Act Release No.
34–52798 (November 18, 2005), 70 FR 71134 [sic]
(Order Approving a Proposed Rule Change and
Amendment No. 1 Thereto and Notice of Filing and
Order Granting Accelerated Approval to
Amendments No. 2 and 4 Thereto Relating to the
Removal of Agency Responsibilities From
Designated Primary Market-Makers and the
Establishment of PAR Officials) (November 28,
2005) (SR–CBOE–2005–46); see also Regulatory
Circular RG05–117 (Separation of DPM Agency and
Principal Functions) (November 22, 2005).
11 See
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65265
participants to perform any functions
that are not already authorized under
the Rules. Rather, PAR is a tool that may
be used by market participants, at their
discretion, to help facilitate the efficient
and orderly processing of orders in a
manner already authorized under the
Rules. Thus, the purpose of the
proposed rule is simply to describe and
clarify the substantive functions of PAR.
The Exchange believes that the
proposed rule will add clarity to the
Rules (inasmuch as PAR is already
referenced throughout the Rules without
a description of PAR or the substantive
functions that may be performed on
PAR) and that the proposed rule would
be useful for TPHs.
Under the Exchange’s proposal, the
rule would describe the order
processing functions of PAR including,
but not limited to how PAR users may:
Interact with the electronic trade engine
(including executions with quotes and
orders resting in the electronic book and
exposure to applicable electronic
auctions); execute orders in open outcry
(including against other orders on the
same PAR terminal (i.e., cross orders),
or with other TPHs and PAR Officials);
route orders to Order Management
Terminals (‘‘OMTs’’) or otherwise return
orders to order entry firms or the TPH
that entered the order; route orders or
portion thereof to an away exchange;
route orders to the electronic book;
reflect a price and/or quantity of orders
or portion thereof in the CBOE BBO for
classes trading on the Hybrid 3.0
Platform; 12 and cancel unexecuted
orders. Proposed Rule 6.12A(a) would
describe the process by which orders
may be routed to PAR. Proposed Rule
6.12A(b) would describe the order
handling process on PAR, including the
functionalities that may be achieved
using a PAR workstation. Proposed Rule
6.12A(c) would describe the order types
that may be handled on PAR. Proposed
Rule 6.12A(d) would establish the
controlling nature of the Rule with
respect to previously issued Regulatory
12 The Hybrid 3.0 Platform is an electronic trading
platform on the Hybrid Trading System that allows
one or more quoters to submit electronic quotes
which represent the aggregate Market-Maker
quoting interest in a series for the trading crowd.
Standard SPX options contracts are traded on the
Hybrid 3.0 Platform. The Hybrid Trading System
refers to the Exchange’s trading platform that allows
automatic executions to occur electronically and
open outcry trades to occur on the floor of the
Exchange. To operate in this ‘‘hybrid’’ environment,
the Exchange has a dynamic order handling system
that has the capability to route orders to the trade
engine for automatic execution and book entry, to
Trading Permit Holder and PAR Official
workstations located in the trading crowds for
manual handling, and/or to other order
management terminals generally located in booths
on the trading floor for manual handling.
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Circulars concerning PAR and its
functionality. Each of these sections and
the introductory paragraph of the
proposed Rule are described in greater
detail below.
The Exchange proposes to adopt an
introductory paragraph to Rule 6.12A
that would generally describe order
handling and processing on PAR and
PAR workstation functionality. Under
the proposed introductory paragraph to
Rule 6.12A, PAR would be described as
an Exchange-provided order
management tool for use on the
Exchange’s trading floor by Trading
Permit Holders or PAR Officials. The
introductory paragraph would also
describe the order routing process to
PAR, explaining that the OHS allows for
orders to be routed to and from a PAR
workstation in accordance with
Exchange and TPH routing parameters
and as set forth in the Rules.13
Proposed Rule 6.12A(a) would reflect
the process by which eligible orders will
route to PAR. Where an order is routed
for processing depends on various
parameters configured by the Exchange
and the TPH. TPHs are afforded
discretion in where they route orders
and may route orders onto various order
management tools available on the
Exchange according to preset or orderspecific routing parameters. Depending
on the order routing parameters, certain
orders may route to PAR. For example,
a TPH may or the Exchange may set
default auto-execution ‘‘drill-through’’
protection limits in the Hybrid Trading
System such that any order that exceeds
a limit will be routed to PAR on the
floor of the Exchange. These parameters
may be used, to limit ‘‘drill-throughs’’ or
protect against extreme and potentially
erroneous limit prices as part of the
Exchange’s risk controls. TPHs may also
customize routing instructions to route
certain orders to PAR for more detailed
handling. Thus, the OHS provides TPHs
with some flexibility in determining
how best to process their orders on the
Hybrid Trading System. The Exchange
believes that the use of routing
parameters supports TPHs’ various
trading strategies, mitigates order
handling and processing risks, assists
the Exchange in attracting order flow
and liquidity, and promotes the
maintenance of a fair and orderly
market. The Exchange views the use of
routing parameters as an important tool
to assist TPHs efficiently manage,
13 As stated above, various rules reference PAR
and Exchange routing parameters for orders
handled on PAR including, but not limited to Rules
6.2B(a), Rule 6.13(b), Rule 6.53; and Rules 6.53C(c)
and 6.53C(d). See supra, note 4. The proposed rule
change is consistent with Rules and the current
authority of the Exchange under the Rules.
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process, and execute orders in the
‘‘hybrid’’ trading environment.
The discretion to set order routing
parameters to route an order to a
preferred order management tool on the
floor of the Exchange, including PAR, is
codified throughout the Rules.14 For
example, under Rule 6.13(b)(i)(B),
orders that are not eligible for automatic
execution will route on a class-by-class
basis to PAR or, at the order entry firm’s
discretion, to the order entry firm’s
booth or OMT. Similarly, under Rule
6.53C(e), complex orders that are
marketable, but would executed at a
price that is not within an acceptable
percentage distance from the derived
net price of the individual leg series that
existed at the start of a Complex Order
Auction (‘‘COA’’) will route on a classby-class basis to PAR, or, at the order
entry firm’s discretion, to the order
entry firm’s booth. Accordingly,
proposed Rule 6.12A(a) is modeled to
reflect the discretion afforded to TPHs
under the Rules with routing orders to
PAR according to an order’s terms and
Exchange order routing parameters.
In addition to TPH order routing
parameters, the Exchange sets certain
order eligibility requirements for orders
routing to PAR. For example, reserve
orders (which are limit orders that have
both a displayed size as well as an
additional non-displayed size amount)
are currently not eligible to route to
PAR. Accordingly, the Exchange’s
proposal is modeled to reflect the fact
that only eligible orders will be
accepted on PAR. Under proposed Rule
6.12A(a) only ‘‘eligible’’ orders will be
routed to PAR.
Proposed paragraph 6.12A(b) would
describe the substantive aspects of PAR
functionality, which include: Routing
an order for electronic processing;
executing an order; booking an order;
routing an order to an away exchange;
and cancelling an order. Proposed Rule
6.12A(b)(i), would provide that orders
may be submitted into the Hybrid
System (including for execution against
quotes and orders resting in the
electronic book and exposure to
appropriate electronic auctions
including auctions pursuant to Rules
6.13A, 6.14A, 6.53C, 6.74B, and
24B.5B).
PAR workstations are capable of
handling both single-legged (‘‘simple’’)
and multi-legged (‘‘complex’’) options
orders, including those with a stock leg.
Simple orders on PAR that are
marketable may be automatically routed
to the electronic book to trade with
quotes or orders in the book or may be
manually executed in open outcry in
14 See
PO 00000
supra, notes 4 and 13.
Frm 00092
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Sfmt 4703
accordance with preset PAR user
parameters and the order’s terms. Upon
partial execution of an order on PAR,
any remaining balance of an order that
was previously on PAR may be returned
to PAR or booked, provided it does not
lock or cross a quote of another
exchange. Similarly, complex orders on
PAR that are marketable may
automatically initiate an electronic
auction or trade against orders in the
Complex Order Book (‘‘COB’’) or with
quotes of the individual leg series or
may be manually executed in open
outcry after the COB is cleared in
accordance with preset user parameters
and the order’s terms. The automatic
routing functions available on PAR are
reflected in the language of proposed
Rule 6.12A(b), which provides orders on
PAR shall be processed in accordance
with the automatic settings established
by the user and the order’s terms.
Proposed Rule 6.12A(b)(i) would also
reference the auction functions that may
be performed on PAR. Eligible simple
and complex orders routed to PAR in
classes where electronic auction
functionality is active may also be
auctioned from PAR. The proposed rule
would reference the auction functions
available on the Hybrid Trading System
under Rules 6.13A, 6.14A, 6.53C(d),
6.74B, and 24B.5B reflecting the fact
that orders on PAR may be submitted
for auction pursuant to routing
parameter configurations and specific
order handling instructions. Orders
auctioned from PAR, which do not fully
execute at the conclusion of the auction
process, may be returned to PAR or
booked in accordance with order
routing parameters and order handling
instructions as permitted under the
Rules.15
Proposed Rule 6.12A(b)(ii) would
provide for the execution of orders on
PAR in open outcry, including against
other orders on PAR and with other
TPHs or PAR Officials in accordance
with Rule 6.74 (Crossing Orders). Both
simple and complex orders on PAR may
be crossed with other orders on PAR by
PAR users, including by PAR Officials.
Proposed Rule 6.12A(b)(ii) would
describe the process by which orders
may be crossed on PAR in open outcry,
including by PAR Officials, after being
verbalized to the crowd. Orders that
may be crossed on PAR include, but are
not limited to buy and sell orders in the
same options series that are marketable
against each other and complex orders
and inter-regulator spreads (as defined
in Rule 1.1).
As provided in proposed Rule
6.12A(b)(iii), PAR workstations also
15 See,
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e.g., Rule 6.53C(d).
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allow users to route orders to an OMT
designated by the TPH that entered the
order or otherwise return the order to
the TPH or order entry firm. Proposed
Rule 6.12A(b)(iii) is a reflection of
current rules which permit PAR users to
route orders to a designated OMT or
otherwise return an order to its
originator. Under proposed Rule
6.12A(b)(iv), orders on PAR may also be
routed to an away market for best
execution in accordance with order
protection rules under the Federal
Securities Laws and the Rules
including, but not limited to Rules
6.81 16 and 7.12(b)(ii).17
Proposed Rule 6.12A(b)(v) describes
the display functionality of a PAR
workstation. CBOE PAR Officials may
reflect bids and offers for orders, or
portions of orders, in Hybrid 3.0 classes
in the displayed CBOE BBO using the
‘‘PAR in the Quote’’ feature. Currently,
there are no CBOE PAR Officials on the
trading floor in Hybrid 3.0 trading
crowds. Accordingly, PAR allows the
user to reflect the price and/or quantity
related to an order or portion of an order
in the displayed Exchange BBO in
classes of options on the Hybrid 3.0
Platform. This functionality allows PAR
users to protect customer orders at
specified price points while not
displaying the full size of such orders
(oftentimes customers may not want the
full size of an order reflected in the
quote). Proposed Rule 6.12A(b)(vi)
would provide that unexecuted orders
resting on PAR may be cancelled. All
un-executed orders on PAR may be
cancelled upon receipt of a cancel
request from the order entry TPH or as
prescribed in the routing parameters of
the Exchange or order entry TPH.
Proposed Rule 6.12A(c) would codify
the ability of the Exchange to designate
order types eligible to route to PAR and
describe the types of orders that the
Exchange may designate as eligible.
Under the Exchange’s proposal, the
Exchange would have the ability to
designate any order type that it makes
available to TPHs pursuant to Rule 6.53
eligible to route to PAR. Current Rule
6.53 describes and defines the order
types that may be made available for
trading on a class-by-class basis by the
Exchange. Under the Exchange’s
proposal, all order types specified in
Rule 6.53 would be eligible to route to
PAR, except that the order types defined
16 Rule 6.81 (Order Protection) forbids TPHs from
effecting Trade-Throughs except as prescribed
under Rule 6.81(b).
17 Rule 7.12(b)(ii) (Execution) provides that a
‘‘PAR Official shall use due diligence to execute the
orders placed in the PAR Official’s custody at the
best prices available to him or her under the Rules
of the Exchange.’’
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17:37 Oct 31, 2014
Jkt 235001
in Rules 6.53(h), 6.53(o)–(r), and 6.53(t)–
(v) would not be eligible to be routed to
PAR. Proposed Rule 6.12A(c) is
consistent with the current practices
and Rules of the Exchange in that all of
the order types listed in Rule 6.53 other
that those listed in Rules 6.53(h),
6.53(o)–(r), and 6.53(t)–(v) are currently
eligible to be routed to PAR. PAR is a
technology that supports the processing
of order types authorized for trading on
the Exchange under Rule 6.53.
Accordingly, the Exchange may make
future enhancements that would permit
other order types to be processed on
PAR or technological issues may
prevent the Exchange from processing
certain order types on PAR at any given
time. Proposed Rule 6.12A(c) reflects
the fluidity of the PAR technology as
well as the fact that PAR is an order
handling tool, which only gives TPHs
the ability to process orders pursuant to
the Rules.
Finally, under proposed Rule
6.12A(d) to the extent that any
provision(s) of the proposed rule
conflicts with any provision of any
Regulatory Circular previously issued
by the Exchange regarding the operation
or functionality of PAR, the proposed
rule would supersedes the limited
conflicting provisions of any such
Regulatory Circular. PAR has been in
use for approximately a decade on the
Exchange. Over the years, PAR has been
enhanced and reconfigured and changed
to reflect updates and changes in the
Rules. Numerous Regulatory Circulars
contemplate the use of PAR by DPMs
rather than PAR Officials.18 Other
Regulatory Circulars reflect old Linkage
rules no longer in effect under the new
Order Protection rules.19 Accordingly,
to the extent that any provisions of any
Regulatory Circular are in conflict with
the proposed rule, such provisions
would be superseded by the rule.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the Act
and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.20 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 21 requirements that the rules of
an exchange be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
18 See, e.g., Regulatory Circular RG04–68 (Routing
of Discretionary Orders to DPM PAR Workstations)
(June 4, 2004).
19 See, e.g., Regulatory Circular RG03–29 (Market
Linkage Implementation II) (April 17, 2003).
20 15 U.S.C. 78f(b).
21 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00093
Fmt 4703
Sfmt 4703
65267
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) 22 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
The Exchange views PAR as an
important tool that allows TPHs on the
trading floor of the Exchange to manage
and process orders. The Exchange
believes that the adoption of rules
regarding the functionality of PAR will
contribute to fair and orderly markets by
making the Exchange’s order handling
processes more transparent and
understandable for users. The proposed
rules are intended to assist TPHs and
order entry firms in their ability to
efficiently manage, process, and execute
orders on the Exchange as well as assist
the Exchange in its ability to effectively
attract order flow and liquidity to the
market. The Exchange also believes that
adding transparency and efficiency to
the market are goals that benefit all
investors. The Exchange believes that
the proposed would further these goals,
which the Exchange believes are
consistent with the Act.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange 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
Exchange believes that proposed Rule
6.12A will promote competition by
making the functionality of the
Exchange’s order processing
workstations more understandable to
users and the general public. The
Exchange believes that by better
explaining its order management and
order handling systems to PAR users
and TPHs, PAR users and TPHs will
better understand the Exchange’s
systems. The Exchange believes that
additional clarity and transparency in
the Rules will make it easier for market
participants to compete with one
another on equal footing in the markets
and ultimately benefits all investors.
22 Id.
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Federal Register / Vol. 79, No. 212 / Monday, November 3, 2014 / Notices
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 written 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 23 and Rule 19b–4(f)(6) 24
thereunder. At any time within 60 days
of the filing of the proposed rule change,
the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission will institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
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:
mstockstill on DSK4VPTVN1PROD with NOTICES
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–2014–081 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–2014–081. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–CBOE–
2014–081, and should be submitted on
or before November 24, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.25
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–26010 Filed 10–31–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–73443; File No. SR–DTC–
2014–10]
Self-Regulatory Organizations; The
Depository Trust Company; Notice of
Filing of Proposed Rule Change in
Connection With the Modifications To
Require Receiver Authorized Delivery
Approval for DTC Processing of
Institutional Delivery Transactions
October 28, 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 October
16, 2014, The Depository Trust
Company (‘‘DTC’’) filed with the
Securities Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Item I, II and III
25 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
23 15
U.S.C. 78s(b)(3)(A).
24 17 CFR 240.19b–4(f)(6).
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17:37 Oct 31, 2014
1 15
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PO 00000
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Fmt 4703
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below, which Items have been prepared
by DTC. The Commission is publishing
this notice to solicit comments on the
proposed change from interested
persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
The proposed rule change consists of
changes to the DTC Settlement Service
Guide (the ‘‘Guide’’) 3 to require
Participants to use the Receiver
Authorized Delivery (‘‘RAD’’) function
to accept (i.e., ‘‘match’’) any affirmed
institutional delivery transaction (‘‘ID
Transaction’’) prior to DTC processing
of the related securities delivery.4
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission,
DTC 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. DTC
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
DTC proposes to modify the Guide to
require Participants to use RAD to
accept any affirmed ID Transaction prior
to DTC processing of the respective
delivery of securities.
RAD allows a receiver of valued
deliveries of securities (‘‘Receiver’’) to
manage which deliveries to accept, or to
reject, prior to further processing by
DTC. Prior to the proposed rule change,
pursuant to a recent rule change (the
‘‘Prior RAD Change’’) 5 DTC has
instituted the requirement that all
Deliver Orders and Payment Orders be
approved through RAD for further
processing at DTC. The purpose of the
Prior RAD Change and this proposed
rule change is to establish a consistent
internal ‘‘matching’’ system for bookentry deliveries at DTC, by which the
agreement of the Participant delivering
securities (‘‘Deliverer’’) and Receiver is
3 The Guide is available at https://www.dtcc.com/
∼/media/Files/Downloads/legal/service-guides/
Settlement.ashx.
4 Terms not otherwise defined herein have the
meaning set forth in the Rules.
5 Securities Exchange Act Release No. 72576 (Jul.
9, 2014); 79 FR 41335 (Jul. 15, 2014) (SR–DTC–
2014–06).
E:\FR\FM\03NON1.SGM
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]]>Agencies
[Federal Register Volume 79, Number 212 (Monday, November 3, 2014)]
[Notices]
[Pages 65263-65268]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-26010]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-73450; File No. SR-CBOE-2014-081]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change Relating to Functionality of Public Automated
Routing System
October 28, 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 October 15, 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, II, and III below, which Items have been prepared by the
Exchange. The Commission is publishing this notice to solicit comments
on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to adopt Rule 6.12A (Public Automated Routing
System (PAR)) to describe the functionality of the PAR workstation. The
text of the proposed rule change is below and in Exhibit 1 (additions
are italicized; deletions are [bracketed]).
* * * * *
Chicago Board Options Exchange, Incorporated Rules
* * * * *
Rule 6.12. Reserved
* * * * *
6.12A. Public Automated Routing System (PAR)
Rule 6.12A. The PAR workstation (PAR) is an Exchange-provided order
management tool for use on the Exchange's trading floor by Trading
Permit Holders or Exchange PAR Officials (see Rule 7.12 for a
description of the responsibilities of PAR Officials). The Exchange's
Order Handling System allows for orders to be routed to and from PAR in
accordance with TPH and Exchange order routing parameters and the Rules
including, but not limited to, this Rule 6.12A and Chapters VI, VII,
and VIII of the Rules and Rules 6.2B, 6.13, 6.14B, 6.53, 6.53C, 6.74,
7.12, and 8.51 thereunder.
(a) Order Routing. Eligible orders will be routed to PAR in
accordance with TPH and Exchange order routing parameters and the
order's terms.
(b) Order Handling. Once an order is on PAR, the order shall be
processed in accordance with the manual or automatic settings
established by the user and the order's terms. Subject to the forgoing,
once an order is on PAR, the user may:
(i) Submit the order into the Hybrid Trading System (including for
execution against quotes and orders resting in the electronic book and
exposure to appropriate electronic auctions pursuant to Rules 6.13A,
6.14A, 6.53C, 6.74B, and 24B.5B);
(ii) Execute the order in open outcry, including against other
orders on PAR and with other TPHs or PAR Officials in accordance with
Rules 6.74 and 7.12;
(iii) Route the order to an Order Management Terminal (OMT)
[[Page 65264]]
designated by the TPH or otherwise return the order to the order entry
firm or originating TPH;
(iv) Route the order or a portion thereof to an away exchange in
accordance with Rules 6.14B and 6.81;
(v) Reflect the price and/or quantity related to the order or a
portion thereof in the displayed Exchange BBO (applicable only in
options classes on the Hybrid 3.0 Platform); or
(vi) Cancel the unexecuted order, including upon receipt of a
cancel request from the order entry firm or originating TPH or as
prescribed by Exchange or TPH order routing parameters.
(c) Eligible Order Types. Unless otherwise specified in the Rules,
all order types specified in Rule 6.53 are eligible to route to PAR,
except that the order types defined in Rules 6.53(h), 6.53(o)-(r), and
6.53(t)-(v) may not be routed to PAR.
(d) Preemption. To the extent that any provision(s) of this Rule
6.12A conflicts with any provision(s) of any Regulatory Circular
previously issued by the Exchange regarding the operation or
functionality of PAR, this Rule supersedes and supplants the limited
conflicting provision(s) of any such Regulatory Circular.
* * * * *
The text of the proposed rule change is also 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to adopt new Rule 6.12A to describe its
existing PAR operations and PAR workstation \3\ functionality. The
Exchange notes that PAR is currently in use on the Exchange and that
PAR is referenced throughout the Rules \4\ and in various Regulatory
Circulars.\5\ While there are various references to PAR throughout the
Rules and in Regulatory Circulars, the Rules do not describe the
substantive aspects of the order handling process available to users
once orders are received on PAR (and thus how Trading Permit Holders
(``TPHs'') or PAR Officials,\6\ as applicable, may process such
orders). The purpose of this rule filing is to codify the details of
the Exchange's existing PAR operations and functionalities within the
Rules. The Exchange believes that adding details to the Rules regarding
PAR would be useful to TPHs.
---------------------------------------------------------------------------
\3\ The PAR workstation is an Exchange-provided facility used to
operate the Exchange's Public Automated Routing System. The Public
Automated Routing System and Public Automated Routing workstation
are referred to collectively as ``PAR'' herein.
\4\ The Exchange is currently working on a separate filing that
would consolidate the Rules that interact with PAR (see, e.g., Rule
6.2B.03(c)(ii); Rule 6.8(d)(iv)(A); Rule 6.13(b)(i)(A)(2); Rule
6.13(b)(iii); Rule 6.13(b)(iv); Rule 6.13(b)(v)(B); Rule 6.53C(c);
Rule 6.53C(d)(vi); Rule 6.53C.06(b); Rule 6.53C.07(a)(3); Rule
6.53C.07(b); Rule 6.53C.07(e); Rule 7.12; Rule 8.51.10) into a
single Rule.
\5\ See, e.g., Regulatory Circular RG97-018 (Order Routing of
Contingency Orders) (February 7, 1997); RG97-019 (New PAR
Functionality--Contingency, Discretionary Orders) (February 7,
1997); RG03-003 (Limit Order Display Requirements) (January 10,
2003); RG03-029 (Market Linkage Implementation II) (April 17, 2003);
RG03-043 (Failure to Address Orders and Honor Firm Quote) (June 25,
2003); RG03-064 (Market Maker Orders Now Book-Eligible in Hybrid
Classes) (July 31, 2003); RG04-056 (How Firm Quote Applies to
Marketable Orders Entered At or Near the Close) (April 30, 2004);
RG04-066 (All or None (AON) Orders in Hybrid Classes) (June 2,
2004); RG04-068 (Routing of Discretionary Orders to DPM PAR
Workstations) (June 4, 2004); RG05-017 (Autobook) (February 11,
2005); RG07-046 (PAR Reporting Enhancements) (April 13, 2007); RG07-
084 (Hybrid 2.0 Auto-Ex on Single-List Classes) (August 3, 2007);
RG07-104 (EPW Activation in Single-List, Hybrid 2.0 Classes)
(October 8, 2007); RG07-112 (Hybrid Auto-Ex and ``Exchange
Prescribed Widths'' (EPWs)) (November 5, 2007); RG09-084 (New Option
Linkage Implementation) (August 14, 2009); RG11-005 (CBOEdirect
Version 8.5 System Modifications) (January 13, 2011); RG11-074
(Processing of Stock-Option Strategy Orders) (June 17, 2011); RG11-
102 (Price Protection Enhancements) (August 26, 2011); RG12-037
(Prefix Usage for SPX Combination (``Combo'') Orders) (February 29,
2012); RG13-083 (New Order Designations) (June 5, 2013); RG13-105
(New Order Designations) (July 29, 2013); RG13-154 (Exchange Rule
6.51--``Reporting Duties'') (November 29, 2013); RG14-037 (PAR
Enhancements) (March 25, 2014); RG14-047 (PAR Enhancements) (April
2, 2014); RG14-096 (PAR Enhancements) (June 20, 2014); see also
Information Circular IC03-08 (Systems Enhancements--Complex Orders
and Linkage) (January 23, 2003); IC03-38 (Complex Order TNT Entry)
(March 21, 2003); IC04-018 (Floor Broker Workstation (FBW
Enhancements) (February 17, 2004); IC04-020 (CBOE Systems
Enhancements) (February 17, 2004); IC05-006 (Complex Order TNT
Entry) (January 24, 2005); IC05-112 (PAR AutoLink and COB) (August
31, 2005); IC06-076 (PAR Routed Orders) (June 23, 2006).
\6\ A PAR Official is an Exchange employee or independent
contractor whom the Exchange may designate as being responsible for
(i) operating the PAR workstation in a DPM trading crowd with
respect to the classes of options assigned to him/her; (ii) when
applicable, maintaining the book with respect to the classes of
options assigned to him/her; and (iii) effecting proper executions
of orders placed with him/her. The PAR Official may not be
affiliated with any Trading Permit Holder that is approved to act as
a Market-Maker. Rule 7.12(a). The duties and obligations of PAR
Officials are set forth in Rule 7.12.
---------------------------------------------------------------------------
The Exchange is continuously evaluating additions to the Rules,
particularly with respect to systems processes and order handling. The
Exchange believes that the adoption of Rule 6.12A describing PAR
functionality is consistent with this effort.
Background
PAR is a touch-screen order routing and handling tool that is used
by TPHs and PAR Officials on the floor of the Exchange to manage and
process orders that are routed to PAR for processing. PAR is equipped
with a dynamic, graphical display that allows users to manually and
automatically execute orders electronically through the Exchange's
central trading engine and in open outcry. In general, PAR allows users
to specify execution quantities, split trades among multiple contra
parties, report trades, route orders to the book, and generate trading
reports, including a detailed history on all activity conducted on the
workstation.
The Exchange operates a dynamic order handling system (``OHS''),\7\
which allows orders to be routed, processed, and transmitted to the
Exchange's trade engine, in a variety of ways on the Hybrid Trading
System. The OHS may route orders directly to the Exchange's trade
engine for automatic execution and book entry, to PAR workstations
located in the trading crowds for manual handling, and/or to other
order management terminals (``OMTs'') located in booths on the floor of
the Exchange. PAR receives orders through the OHS according to Exchange
and TPH routing parameter configurations.
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\7\ The Exchange completed the rollout of the OHS in 2008, which
replaced the Exchange's Order Routing System (``ORS''). OHS resides
within the Exchange's central trading platform, CBOE Command and
thus, functions on same platform as the Exchange's trade processing
engine, resulting in speedier processing and improved order
handling.
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A TPH or PAR Official may select an order on the workstation and
enter trade information such as execution quantity, price, and contra
party information. The PAR interface also allows the user to direct an
order to be executed or booked
[[Page 65265]]
by the Exchange's trade engine. Once execution of an order is
completed, PAR transmits the completed execution (also referred to as a
``fill''), back to the OHS. PAR users can also transmit to the trade
engine a portion of a selected order to be executed or booked within
the trade engine. In addition, PAR allows users to execute orders in
open outcry and record information about open outcry trades for audit-
trail purposes. These functions are described in greater detail below.
PAR workstations may be used in the form of fixed workstation terminals
or mobile devices.
PAR was introduced at the Exchange in 1994 as an innovative trading
automation solution. In general, PAR was developed to automate the
manual trading process in open outcry, which previously required the
use of paper tickets to execute customer orders. Rather than entering
orders and executions into TPH computer systems, transmitting order and
trade execution information to and from the Exchange's trade engine,
printing order tickets and fill reports, and physically delivering the
order tickets and fill reports to counterparty brokers on the floor of
the Exchange and to the Options Clearing Corporation, PAR allows users
to process orders directly through the OHS and from TPH trading
systems.
Initially, PAR was placed in use in limited areas on the floor of
the Exchange.\8\ By 1997, PAR functionality was enhanced to allow the
direct routing of various order types from the Exchange's system to
PAR, including the following types of orders: All or None; Opening
Only; Immediate or Cancel; Market on Close; Fill or Kill; Closing Only;
Minimum Quantity; Market if Touched; Stop; Not Held; and Stop Limit.\9\
Notably, whether a particular order or order type routed to PAR was
(and continues to be) a function of parameter controls, set by TPHs and
the Exchange, that allow different order types to be selectively routed
at the discretion of, and in accordance with, TPH order routing and
handling instructions.\10\ As technology, regulation, and trading
practices have shifted, the Exchange has adapted and enhanced PAR to
meet the trading needs of TPHs and the Exchange. The systemic
flexibility of PAR has been (and continues to be) essential in
maintaining PAR as an effective order management tool.
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\8\ See Securities and Exchange Act Release No. 34-34876
(October 21, 1994), FR Doc No: 94-26765 (October 28, 1994) (Order
Approving Proposed Rule Change and Amendment No. 1 to a Proposed
Rule Change and Notice of Filing and Order Granting Accelerated
Approval of Amendment No. 2 to a Proposed Rule Change by the Chicago
Board Options Exchange, Inc. Relating to Firm Quote
Responsibilities) (SR-CBOE-94-17).
\9\ See Regulatory Circular RG97-67 (Permanent Approval of Order
Routing of Contingency Orders) (June 4, 1997); see also Securities
and Exchange Act Release No. 34-38702 (May 30, 1997), 62 FR 31184
[sic] (Notice of Filing and Order Granting Accelerated Approval of
Proposed Rule Change Relating to Enhancements to the Electronic
Order Routing System) (June 6, 1997) (SR-CBOE-97-22).
\10\ See Id.
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Until 2005, only Floor Brokers and DPMs used PAR on the floor of
the Exchange, with DPMs handling agency orders on PAR including orders
that could not be automatically executed and thus, routed to PAR for
manual handling. In 2005, the Exchange adopted Rule 7.12, which
prohibited DPMs from executing agency orders in their appointed classes
and allowed the Exchange to place PAR Officials at PAR workstations for
the handling of orders routed to PAR in accordance with Exchange and
TPH order routing parameters.\11\ TPHs and PAR Officials have
continually used PAR on the floor of the Exchange since Rule 7.12 was
adopted.
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\11\ See Securities and Exchange Act Release No. 34-52798
(November 18, 2005), 70 FR 71134 [sic] (Order Approving a Proposed
Rule Change and Amendment No. 1 Thereto and Notice of Filing and
Order Granting Accelerated Approval to Amendments No. 2 and 4
Thereto Relating to the Removal of Agency Responsibilities From
Designated Primary Market-Makers and the Establishment of PAR
Officials) (November 28, 2005) (SR-CBOE-2005-46); see also
Regulatory Circular RG05-117 (Separation of DPM Agency and Principal
Functions) (November 22, 2005).
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The Exchange considers PAR an important Exchange facility and order
management tool for market participants on the Exchange. Many of the
orders that cannot be automatically processed by the Exchange's central
trade engine are routed to PAR for handling. The functionalities
provided on PAR that allow these orders to be processed are essential
to the functioning of the Exchange and the maintenance of fair and
orderly markets. The proposed rule describes the substantive functions
of PAR and its central operation.
Proposal
The Exchange proposes to adopt Rule 6.12A to describe the operation
of PAR and and [sic] functionality of its PAR workstations. Among other
things, Rule 6.12A would describe how orders may be routed to PAR and
what PAR users may do to process orders once they are received on PAR.
Proposed Rule 6.12A describes the substantive operation of PAR and the
primary functionality of the PAR workstation. The proposed Rule is not
intended as a user manual or software tutorial. The Exchange notes that
PAR does not allow market participants to perform any functions that
are not already authorized under the Rules. Rather, PAR is a tool that
may be used by market participants, at their discretion, to help
facilitate the efficient and orderly processing of orders in a manner
already authorized under the Rules. Thus, the purpose of the proposed
rule is simply to describe and clarify the substantive functions of
PAR. The Exchange believes that the proposed rule will add clarity to
the Rules (inasmuch as PAR is already referenced throughout the Rules
without a description of PAR or the substantive functions that may be
performed on PAR) and that the proposed rule would be useful for TPHs.
Under the Exchange's proposal, the rule would describe the order
processing functions of PAR including, but not limited to how PAR users
may: Interact with the electronic trade engine (including executions
with quotes and orders resting in the electronic book and exposure to
applicable electronic auctions); execute orders in open outcry
(including against other orders on the same PAR terminal (i.e., cross
orders), or with other TPHs and PAR Officials); route orders to Order
Management Terminals (``OMTs'') or otherwise return orders to order
entry firms or the TPH that entered the order; route orders or portion
thereof to an away exchange; route orders to the electronic book;
reflect a price and/or quantity of orders or portion thereof in the
CBOE BBO for classes trading on the Hybrid 3.0 Platform; \12\ and
cancel unexecuted orders. Proposed Rule 6.12A(a) would describe the
process by which orders may be routed to PAR. Proposed Rule 6.12A(b)
would describe the order handling process on PAR, including the
functionalities that may be achieved using a PAR workstation. Proposed
Rule 6.12A(c) would describe the order types that may be handled on
PAR. Proposed Rule 6.12A(d) would establish the controlling nature of
the Rule with respect to previously issued Regulatory
[[Page 65266]]
Circulars concerning PAR and its functionality. Each of these sections
and the introductory paragraph of the proposed Rule are described in
greater detail below.
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\12\ The Hybrid 3.0 Platform is an electronic trading platform
on the Hybrid Trading System that allows one or more quoters to
submit electronic quotes which represent the aggregate Market-Maker
quoting interest in a series for the trading crowd. Standard SPX
options contracts are traded on the Hybrid 3.0 Platform. The Hybrid
Trading System refers to the Exchange's trading platform that allows
automatic executions to occur electronically and open outcry trades
to occur on the floor of the Exchange. To operate in this ``hybrid''
environment, the Exchange has a dynamic order handling system that
has the capability to route orders to the trade engine for automatic
execution and book entry, to Trading Permit Holder and PAR Official
workstations located in the trading crowds for manual handling, and/
or to other order management terminals generally located in booths
on the trading floor for manual handling.
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The Exchange proposes to adopt an introductory paragraph to Rule
6.12A that would generally describe order handling and processing on
PAR and PAR workstation functionality. Under the proposed introductory
paragraph to Rule 6.12A, PAR would be described as an Exchange-provided
order management tool for use on the Exchange's trading floor by
Trading Permit Holders or PAR Officials. The introductory paragraph
would also describe the order routing process to PAR, explaining that
the OHS allows for orders to be routed to and from a PAR workstation in
accordance with Exchange and TPH routing parameters and as set forth in
the Rules.\13\
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\13\ As stated above, various rules reference PAR and Exchange
routing parameters for orders handled on PAR including, but not
limited to Rules 6.2B(a), Rule 6.13(b), Rule 6.53; and Rules
6.53C(c) and 6.53C(d). See supra, note 4. The proposed rule change
is consistent with Rules and the current authority of the Exchange
under the Rules.
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Proposed Rule 6.12A(a) would reflect the process by which eligible
orders will route to PAR. Where an order is routed for processing
depends on various parameters configured by the Exchange and the TPH.
TPHs are afforded discretion in where they route orders and may route
orders onto various order management tools available on the Exchange
according to preset or order- specific routing parameters. Depending on
the order routing parameters, certain orders may route to PAR. For
example, a TPH may or the Exchange may set default auto-execution
``drill-through'' protection limits in the Hybrid Trading System such
that any order that exceeds a limit will be routed to PAR on the floor
of the Exchange. These parameters may be used, to limit ``drill-
throughs'' or protect against extreme and potentially erroneous limit
prices as part of the Exchange's risk controls. TPHs may also customize
routing instructions to route certain orders to PAR for more detailed
handling. Thus, the OHS provides TPHs with some flexibility in
determining how best to process their orders on the Hybrid Trading
System. The Exchange believes that the use of routing parameters
supports TPHs' various trading strategies, mitigates order handling and
processing risks, assists the Exchange in attracting order flow and
liquidity, and promotes the maintenance of a fair and orderly market.
The Exchange views the use of routing parameters as an important tool
to assist TPHs efficiently manage, process, and execute orders in the
``hybrid'' trading environment.
The discretion to set order routing parameters to route an order to
a preferred order management tool on the floor of the Exchange,
including PAR, is codified throughout the Rules.\14\ For example, under
Rule 6.13(b)(i)(B), orders that are not eligible for automatic
execution will route on a class-by-class basis to PAR or, at the order
entry firm's discretion, to the order entry firm's booth or OMT.
Similarly, under Rule 6.53C(e), complex orders that are marketable, but
would executed at a price that is not within an acceptable percentage
distance from the derived net price of the individual leg series that
existed at the start of a Complex Order Auction (``COA'') will route on
a class-by-class basis to PAR, or, at the order entry firm's
discretion, to the order entry firm's booth. Accordingly, proposed Rule
6.12A(a) is modeled to reflect the discretion afforded to TPHs under
the Rules with routing orders to PAR according to an order's terms and
Exchange order routing parameters.
---------------------------------------------------------------------------
\14\ See supra, notes 4 and 13.
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In addition to TPH order routing parameters, the Exchange sets
certain order eligibility requirements for orders routing to PAR. For
example, reserve orders (which are limit orders that have both a
displayed size as well as an additional non-displayed size amount) are
currently not eligible to route to PAR. Accordingly, the Exchange's
proposal is modeled to reflect the fact that only eligible orders will
be accepted on PAR. Under proposed Rule 6.12A(a) only ``eligible''
orders will be routed to PAR.
Proposed paragraph 6.12A(b) would describe the substantive aspects
of PAR functionality, which include: Routing an order for electronic
processing; executing an order; booking an order; routing an order to
an away exchange; and cancelling an order. Proposed Rule 6.12A(b)(i),
would provide that orders may be submitted into the Hybrid System
(including for execution against quotes and orders resting in the
electronic book and exposure to appropriate electronic auctions
including auctions pursuant to Rules 6.13A, 6.14A, 6.53C, 6.74B, and
24B.5B).
PAR workstations are capable of handling both single-legged
(``simple'') and multi-legged (``complex'') options orders, including
those with a stock leg. Simple orders on PAR that are marketable may be
automatically routed to the electronic book to trade with quotes or
orders in the book or may be manually executed in open outcry in
accordance with preset PAR user parameters and the order's terms. Upon
partial execution of an order on PAR, any remaining balance of an order
that was previously on PAR may be returned to PAR or booked, provided
it does not lock or cross a quote of another exchange. Similarly,
complex orders on PAR that are marketable may automatically initiate an
electronic auction or trade against orders in the Complex Order Book
(``COB'') or with quotes of the individual leg series or may be
manually executed in open outcry after the COB is cleared in accordance
with preset user parameters and the order's terms. The automatic
routing functions available on PAR are reflected in the language of
proposed Rule 6.12A(b), which provides orders on PAR shall be processed
in accordance with the automatic settings established by the user and
the order's terms.
Proposed Rule 6.12A(b)(i) would also reference the auction
functions that may be performed on PAR. Eligible simple and complex
orders routed to PAR in classes where electronic auction functionality
is active may also be auctioned from PAR. The proposed rule would
reference the auction functions available on the Hybrid Trading System
under Rules 6.13A, 6.14A, 6.53C(d), 6.74B, and 24B.5B reflecting the
fact that orders on PAR may be submitted for auction pursuant to
routing parameter configurations and specific order handling
instructions. Orders auctioned from PAR, which do not fully execute at
the conclusion of the auction process, may be returned to PAR or booked
in accordance with order routing parameters and order handling
instructions as permitted under the Rules.\15\
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\15\ See, e.g., Rule 6.53C(d).
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Proposed Rule 6.12A(b)(ii) would provide for the execution of
orders on PAR in open outcry, including against other orders on PAR and
with other TPHs or PAR Officials in accordance with Rule 6.74 (Crossing
Orders). Both simple and complex orders on PAR may be crossed with
other orders on PAR by PAR users, including by PAR Officials. Proposed
Rule 6.12A(b)(ii) would describe the process by which orders may be
crossed on PAR in open outcry, including by PAR Officials, after being
verbalized to the crowd. Orders that may be crossed on PAR include, but
are not limited to buy and sell orders in the same options series that
are marketable against each other and complex orders and inter-
regulator spreads (as defined in Rule 1.1).
As provided in proposed Rule 6.12A(b)(iii), PAR workstations also
[[Page 65267]]
allow users to route orders to an OMT designated by the TPH that
entered the order or otherwise return the order to the TPH or order
entry firm. Proposed Rule 6.12A(b)(iii) is a reflection of current
rules which permit PAR users to route orders to a designated OMT or
otherwise return an order to its originator. Under proposed Rule
6.12A(b)(iv), orders on PAR may also be routed to an away market for
best execution in accordance with order protection rules under the
Federal Securities Laws and the Rules including, but not limited to
Rules 6.81 \16\ and 7.12(b)(ii).\17\
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\16\ Rule 6.81 (Order Protection) forbids TPHs from effecting
Trade-Throughs except as prescribed under Rule 6.81(b).
\17\ Rule 7.12(b)(ii) (Execution) provides that a ``PAR Official
shall use due diligence to execute the orders placed in the PAR
Official's custody at the best prices available to him or her under
the Rules of the Exchange.''
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Proposed Rule 6.12A(b)(v) describes the display functionality of a
PAR workstation. CBOE PAR Officials may reflect bids and offers for
orders, or portions of orders, in Hybrid 3.0 classes in the displayed
CBOE BBO using the ``PAR in the Quote'' feature. Currently, there are
no CBOE PAR Officials on the trading floor in Hybrid 3.0 trading
crowds. Accordingly, PAR allows the user to reflect the price and/or
quantity related to an order or portion of an order in the displayed
Exchange BBO in classes of options on the Hybrid 3.0 Platform. This
functionality allows PAR users to protect customer orders at specified
price points while not displaying the full size of such orders
(oftentimes customers may not want the full size of an order reflected
in the quote). Proposed Rule 6.12A(b)(vi) would provide that unexecuted
orders resting on PAR may be cancelled. All un-executed orders on PAR
may be cancelled upon receipt of a cancel request from the order entry
TPH or as prescribed in the routing parameters of the Exchange or order
entry TPH.
Proposed Rule 6.12A(c) would codify the ability of the Exchange to
designate order types eligible to route to PAR and describe the types
of orders that the Exchange may designate as eligible. Under the
Exchange's proposal, the Exchange would have the ability to designate
any order type that it makes available to TPHs pursuant to Rule 6.53
eligible to route to PAR. Current Rule 6.53 describes and defines the
order types that may be made available for trading on a class-by-class
basis by the Exchange. Under the Exchange's proposal, all order types
specified in Rule 6.53 would be eligible to route to PAR, except that
the order types defined in Rules 6.53(h), 6.53(o)-(r), and 6.53(t)-(v)
would not be eligible to be routed to PAR. Proposed Rule 6.12A(c) is
consistent with the current practices and Rules of the Exchange in that
all of the order types listed in Rule 6.53 other that those listed in
Rules 6.53(h), 6.53(o)-(r), and 6.53(t)-(v) are currently eligible to
be routed to PAR. PAR is a technology that supports the processing of
order types authorized for trading on the Exchange under Rule 6.53.
Accordingly, the Exchange may make future enhancements that would
permit other order types to be processed on PAR or technological issues
may prevent the Exchange from processing certain order types on PAR at
any given time. Proposed Rule 6.12A(c) reflects the fluidity of the PAR
technology as well as the fact that PAR is an order handling tool,
which only gives TPHs the ability to process orders pursuant to the
Rules.
Finally, under proposed Rule 6.12A(d) to the extent that any
provision(s) of the proposed rule conflicts with any provision of any
Regulatory Circular previously issued by the Exchange regarding the
operation or functionality of PAR, the proposed rule would supersedes
the limited conflicting provisions of any such Regulatory Circular. PAR
has been in use for approximately a decade on the Exchange. Over the
years, PAR has been enhanced and reconfigured and changed to reflect
updates and changes in the Rules. Numerous Regulatory Circulars
contemplate the use of PAR by DPMs rather than PAR Officials.\18\ Other
Regulatory Circulars reflect old Linkage rules no longer in effect
under the new Order Protection rules.\19\ Accordingly, to the extent
that any provisions of any Regulatory Circular are in conflict with the
proposed rule, such provisions would be superseded by the rule.
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\18\ See, e.g., Regulatory Circular RG04-68 (Routing of
Discretionary Orders to DPM PAR Workstations) (June 4, 2004).
\19\ See, e.g., Regulatory Circular RG03-29 (Market Linkage
Implementation II) (April 17, 2003).
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2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act.\20\ Specifically, the Exchange believes the proposed rule change
is consistent with the Section 6(b)(5) \21\ 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) \22\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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\20\ 15 U.S.C. 78f(b).
\21\ 15 U.S.C. 78f(b)(5).
\22\ Id.
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The Exchange views PAR as an important tool that allows TPHs on the
trading floor of the Exchange to manage and process orders. The
Exchange believes that the adoption of rules regarding the
functionality of PAR will contribute to fair and orderly markets by
making the Exchange's order handling processes more transparent and
understandable for users. The proposed rules are intended to assist
TPHs and order entry firms in their ability to efficiently manage,
process, and execute orders on the Exchange as well as assist the
Exchange in its ability to effectively attract order flow and liquidity
to the market. The Exchange also believes that adding transparency and
efficiency to the market are goals that benefit all investors. The
Exchange believes that the proposed would further these goals, which
the Exchange believes are consistent with the Act.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange 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 Exchange believes that
proposed Rule 6.12A will promote competition by making the
functionality of the Exchange's order processing workstations more
understandable to users and the general public. The Exchange believes
that by better explaining its order management and order handling
systems to PAR users and TPHs, PAR users and TPHs will better
understand the Exchange's systems. The Exchange believes that
additional clarity and transparency in the Rules will make it easier
for market participants to compete with one another on equal footing in
the markets and ultimately benefits all investors.
[[Page 65268]]
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 written 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 \23\ and
Rule 19b-4(f)(6) \24\ thereunder. At any time within 60 days of the
filing of the proposed rule change, the Commission summarily may
temporarily suspend such rule change if it appears to the Commission
that such action is necessary or appropriate in the public interest,
for the protection of investors, or otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission will institute proceedings to determine whether the proposed
rule change should be approved or disapproved.
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\23\ 15 U.S.C. 78s(b)(3)(A).
\24\ 17 CFR 240.19b-4(f)(6).
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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
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-2014-081 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-2014-081. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-CBOE-2014-081, and should be
submitted on or before November 24, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\25\
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\25\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-26010 Filed 10-31-14; 8:45 am]
BILLING CODE 8011-01-P
