Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Extend the Credit Option Margin Pilot Program Through January 15, 2016, 75850-75852 [2014-29699]
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Federal Register / Vol. 79, No. 244 / Friday, December 19, 2014 / Notices
immediately preceding the Follow-On
Investment; and (ii) the Board has
approved as being in the best interests
of the Company the ability to participate
in Follow-On Investments on a pro rata
basis (as described in greater detail in
the application). In all other cases, the
Company Adviser will provide its
written recommendation as to the
Company’s participation to the Eligible
Directors, and the Company will
participate in such Follow-On
Investment solely to the extent that a
Required Majority determines that it is
in the Company’s best interests.
(c) If, with respect to any Follow-On
Investment:
(i) The amount of the opportunity is
not based on the Company’s and the
Funds’ outstanding investments
immediately preceding the Follow-On
Investment; and
(ii) The aggregate amount
recommended by the Company Adviser
to be invested by the Company in the
Follow-On Investment, together with
the amount proposed to be invested by
the Funds in the same transaction,
exceeds the amount of the opportunity,
then the amount invested by each such
party will be allocated among them pro
rata based on each party’s Available
Capital in the asset class being
allocated, up to the amount proposed to
be invested by each.
(d) The acquisition of Follow-On
Investments as permitted by this
condition will be considered a CoInvestment Transaction for all purposes
and subject to the other conditions set
forth in the application.
9. The Independent Directors will be
provided quarterly for review all
information concerning Potential CoInvestment Transactions and CoInvestment Transactions, including
investments made by the Funds that the
Company considered but declined to
participate in, so that the Independent
Directors may determine whether all
investments made during the preceding
quarter, including those investments
that the Company considered but
declined to participate in, comply with
the conditions of the Order. In addition,
the Independent Directors will consider
at least annually the continued
appropriateness for the Company of
participating in new and existing CoInvestment Transactions.
10. The Company will maintain the
records required by section 57(f)(3) of
the Act as if each of the investments
permitted under these conditions were
approved by the Required Majority
under section 57(f).
11. No Independent Director will also
be a director, general partner, managing
member or principal, or otherwise an
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‘‘affiliated person’’ (as defined in the
Act), of any Fund.
12. The expenses, if any, associated
with acquiring, holding or disposing of
any securities acquired in a CoInvestment Transaction (including,
without limitation, the expenses of the
distribution of any such securities
registered for sale under the 1933 Act)
will, to the extent not payable by an
Adviser under any agreement with the
Company or the Funds, be shared by the
Company and the Funds in proportion
to the relative amounts of the securities
held or being acquired or disposed of,
as the case may be.
13. Any transaction fee 7 (including
break-up or commitment fees but
excluding broker’s fees contemplated by
section 57(k) of the Act) received in
connection with a Co-Investment
Transaction will be distributed to the
Company and the participating Funds
on a pro rata basis, based on the
amounts they invested or committed, as
the case may be, in such Co-Investment
Transaction. If any transaction fee is to
be held by an Adviser pending
consummation of the Co-Investment
Transaction, the fee will be deposited
into an account maintained by such
Adviser at a bank or banks having the
qualifications prescribed in section
26(a)(1) of the Act, and the account will
earn a competitive rate of interest that
will also be divided pro rata among the
Company and the participating Funds
based on the amounts they invest in
such Co-Investment Transaction. None
of the Funds, the Advisers or any
affiliated person of the Company or of
the Funds will receive additional
compensation or remuneration of any
kind as a result of or in connection with
a Co-Investment Transaction (other than
(i) in the case of the Company and the
Funds, the pro rata transaction fees
described above and fees or other
compensation described in condition
2(c)(iii)(C) and (ii) in the case of the
Advisers, investment advisory fees paid
in accordance with the Advisory
Agreements with the Company and the
Funds).
For the Commission, by the Division of
Investment Management, under delegated
authority.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–29697 Filed 12–18–14; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–73837; File No. SR–CBOE–
2014–091]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change to Extend the Credit
Option Margin Pilot Program Through
January 15, 2016
December 15, 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 December
2, 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
Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of
the Act 3 and Rule 19b-4(f)(6)
thereunder.4 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
CBOE proposes to amend Rule 12.3 by
extending the Credit Option Margin
Pilot Program through January 15, 2016.
The text of the proposed rule change
is available on the Exchange’s Web site
(https://www.cboe.com/AboutCBOE/
CBOELegalRegulatoryHome.aspx), at
the Exchange’s Office of the Secretary,
and at the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
BILLING CODE 8011–01–P
1 15
7 Applicants
are not requesting and the staff is not
providing any relief for transaction fees received in
connection with any Co-Investment Transaction.
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
2 17
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Federal Register / Vol. 79, No. 244 / Friday, December 19, 2014 / Notices
permanent, then the Exchange will
submit a filing proposing such
amendments to the Program.
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
2. Statutory Basis
1. Purpose
mstockstill on DSK4VPTVN1PROD with NOTICES
On February 2, 2011, the Commission
approved the Exchange’s proposal to
establish a Credit Option Margin Pilot
Program (‘‘Program’’).5 The proposal
became effective on a pilot basis to run
on a parallel track with Financial
Industry Regulatory Authority
(‘‘FINRA’’) Rule 4240 that similarly
operates on an interim pilot basis.6
On January 17, 2012, the Exchange
filed a rule change to, among other
things, decouple the Program with the
FINRA program and to extend the
expiration date of the Program to
January 17, 2013.7 The Program,
however, continues to be substantially
similar to the provisions of the FINRA
program. Subsequently, the Exchange
filed rule changes to extend the program
until January 17, 2014 and January 16,
2015, respectively.8 The Exchange
believes that extending the expiration
date of the Program further will allow
for further analysis of the Program and
a determination of how the Program
should be structured in the future. Thus,
the Exchange is now currently
proposing to extend the duration of the
Program for an additional year until
January 15, 2016.
The Exchange notes that there are
currently Credit Options listed for
trading on the Exchange that have open
interest. As a result, the Exchange
believes that is in the public interest for
the Program to continue uninterrupted.
In the future, if the Exchange proposes
an additional extension of the Credit
Option Margin Pilot Program or
proposes to make the Program
5 See Securities Exchange Act Release No. 63819
(February 2, 2011), 76 FR 6838 (February 8, 2011)
order approving (SR–CBOE–2010–106). To
implement the Program, the Exchange amended
Rule 12.3(l), Margin Requirements, to make CBOE’s
margin requirements for Credit Options consistent
with Financial Industry Regulatory Authority
(‘‘FINRA’’) Rule 4240, Margin Requirements for
Credit Default Swaps. CBOE’s Credit Options (i.e.,
Credit Default Options and Credit Default Basket
Options) are analogous to credit default swaps.
6 See Securities Exchange Act Release No. 59955
(May 22, 2009), 74 FR 25586 (May 28, 2009) (Notice
of Filing and Order Granting Accelerated Approval
of Proposed Rule Change; SR–FINRA–2009–012).
7 See Securities and Exchange Act Release Nos.
66163 (January 17, 2012), 77 FR 3318 (January 23,
2012) (SR–CBOE–2012–007) and 71124 (December
18, 2013), 78 FR 77754 (December 24, 2013) (SR–
CBOE–2013–123).
8 See Securities and Exchange Act Release No.
68539 (December 27, 2012), 78 FR 138 (January 2,
2013) (SR–CBOE–2013–125).
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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.9 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 10 requirements that the rules of
an exchange be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitation transactions in
securities, to remove impediments to
and perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest.
Additionally, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 11 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
In particular, the Exchange believes
that the proposed rule change will
further the purposes of the Act because,
consistent with the goals of the
Commission at the initial adoption of
the Program, the margin requirements
set forth by the proposed rule change
will help to stabilize the financial
markets. In addition, the proposed rule
change is substantially similar to
existing FINRA Rule 4240.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CBOE does not believe that the
proposed rule change will impose any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. Specifically,
the Exchange believes that, by extending
the expiration of the Program, the
proposed rule change will allow for
further analysis of the Program and a
determination of how the Program shall
be structured in the future. In doing so,
the proposed rule change will also serve
to promote regulatory clarity and
consistency, thereby reducing burdens
on the marketplace and facilitating
investor protection.
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
11 Id.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not:
A. Significantly affect the protection
of investors or the public interest;
B. impose any significant burden on
competition; and
C. become operative for 30 days from
the date on which it was filed, or such
shorter time as the Commission may
designate, it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 12 and Rule 19b–4(f)(6) 13
thereunder.
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:
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–2014–091 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–2014–091. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
9 15
10 15
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12 15
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E:\FR\FM\19DEN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
19DEN1
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Federal Register / Vol. 79, No. 244 / Friday, December 19, 2014 / Notices
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–
2014–091 and should be submitted on
or before January 9, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–29699 Filed 12–18–14; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–73836; File No. SR–BX–
2014–059]
Self-Regulatory Organizations;
NASDAQ OMX BX; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Changes to Amend Rule 7018 to
establish Fees and Rebates in
Connection with BX’s Retail Price
Improvement (‘‘RPI’’) Program
mstockstill on DSK4VPTVN1PROD with NOTICES
December 15, 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 December
3, 2014, NASDAQ OMX BX, Inc. (‘‘BX’’
or ‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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19:37 Dec 18, 2014
Jkt 235001
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is proposing changes to
amend BX Rule 7018 to establish fees
and rebates in connection with BX’s
Retail Price Improvement (‘‘RPI’’)
Program. The Exchange proposes to
implement the proposed rule change on
December 1, 2014, contemporaneously
with the launch of the RPI Program.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://
nasdaqomxbx.cchwallstreet.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
Exchange included statements
concerning the purpose of and basis for
the proposed rule change. The text of
these statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8011–01–P
14 17
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.3
1. Purpose
The purpose of this proposal is to
amend BX Rule 7018 to establish fees
and rebates for execution of orders
under BX’s recently filed RPI Program.4
Under the RPI Program, a member (or a
division thereof) approved by the
Exchange to participate in the program
(a ‘‘Retail Member Organization’’ or
‘‘RMO’’) may submit designated ‘‘Retail
Orders’’ 5 for the purpose of seeking
3 The
Commission notes that the Exchange
initially filed the proposed rule change on
November 24, 2014 under File Number SR–BX–
2014–058. On December 3, 2014, the Exchange
withdrew SR–BX–2014–058 due to errors in the
Form 19b–4 and Exhibit 1, and refiled the proposed
rule change under SR–BX–2014–059.
4 Securities Exchange Act Release No. 73410
(October 23, 2014), 79 FR 64447 (October 29, 2014)
(SR–BX–2014–048) (proposing RPI program and
exemption from SEC Rule 612 under Regulation
NMS, 17 CFR 242.612, in connection therewith).
5 A Retail Order is defined in BX Rule 4780(a)(2),
in part, as ‘‘an agency or riskless principal order
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Fmt 4703
Sfmt 4703
price improvement. All BX members
may enter retail price improvement
orders (‘‘RPI Orders’’),6 a form of nondisplayed orders that are priced more
aggressively than the Protected National
Best Bid or Offer (‘‘NBBO’’) by at least
$0.001 per share, for the purpose of
offering such price improvement. RMOs
may use two types of Retail Orders. A
Type 1 Retail Order is eligible to
execute only against RPI Orders and
other orders (such as midpoint pegged
orders) that will provide price
improvement. Type 2 Retail Orders
interact first with available RPI Orders
and other price improving orders, and
then are eligible to access non-price
improving liquidity on the BX book and
to route to other trading venues if so
designated.
BX proposes to offer a rebate of
$0.0025 per share executed to RMOs
with respect to Retail Orders that
execute against RPI Orders. RMO orders
that execute against other orders
providing price improvement with
respect to the NBBO will receive a
rebate otherwise applicable to
executions of orders that access
liquidity. For Type 2 Retail Orders that
execute against non-price improving
orders on the BX book, BX will offer a
rebate otherwise applicable to execution
of orders that access liquidity. Similarly,
when Type 2 Retail Orders are routed
and execute at another trading venue,
BX will charge the fee otherwise
applicable to execution of routed orders.
For RPI orders that provide liquidity,
BX will charge a fee of $0.0025 per
share executed. Other orders that
provide liquidity to Retail Orders will
receive the credit or pay the fee
otherwise applicable to orders that
provide liquidity.
2. Statutory Basis
BX believes that the proposed rule
change is consistent with the provisions
of Section 6 of the Act,7 in general, and
with Sections 6(b)(4) and 6(b)(5) of the
Act,8 in particular, in that it provides for
the equitable allocation of reasonable
dues, fees and other charges among
members and issuers and other persons
that satisfies the criteria of FINRA Rule 5320.03,
that originates from a natural person and is
submitted to the Exchange by a Retail Member
Organization, provided that no change is made to
the terms of the order with respect to price (except
in the case that a market order is changed to a
marketable limit order) or side of market and the
order does not originate from a trading algorithm or
any other computerized methodology.’’
6 A Retail Price Improvement Order is defined in
BX Rule 4780(a)(3), in part, as consisting of ‘‘nondisplayed liquidity on the Exchange that is priced
better than the Protected NBBO by at least $0.001
and that is identified as such.’’
7 15 U.S.C. 78f.
8 15 U.S.C. 78f(b)(4) and (5).
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Agencies
[Federal Register Volume 79, Number 244 (Friday, December 19, 2014)]
[Notices]
[Pages 75850-75852]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-29699]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-73837; File No. SR-CBOE-2014-091]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change to Extend the Credit Option Margin Pilot Program
Through January 15, 2016
December 15, 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 December 2, 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 Exchange filed the proposal as a ``non-controversial''
proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act
\3\ and Rule 19b-4(f)(6) thereunder.\4\ 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.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
CBOE proposes to amend Rule 12.3 by extending the Credit Option
Margin Pilot Program through January 15, 2016.
The text of the proposed rule change is available on the Exchange's
Web site (https://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx),
at the Exchange's Office of the Secretary, and at the Commission's
Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of
[[Page 75851]]
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
On February 2, 2011, the Commission approved the Exchange's
proposal to establish a Credit Option Margin Pilot Program
(``Program'').\5\ The proposal became effective on a pilot basis to run
on a parallel track with Financial Industry Regulatory Authority
(``FINRA'') Rule 4240 that similarly operates on an interim pilot
basis.\6\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 63819 (February 2,
2011), 76 FR 6838 (February 8, 2011) order approving (SR-CBOE-2010-
106). To implement the Program, the Exchange amended Rule 12.3(l),
Margin Requirements, to make CBOE's margin requirements for Credit
Options consistent with Financial Industry Regulatory Authority
(``FINRA'') Rule 4240, Margin Requirements for Credit Default Swaps.
CBOE's Credit Options (i.e., Credit Default Options and Credit
Default Basket Options) are analogous to credit default swaps.
\6\ See Securities Exchange Act Release No. 59955 (May 22,
2009), 74 FR 25586 (May 28, 2009) (Notice of Filing and Order
Granting Accelerated Approval of Proposed Rule Change; SR-FINRA-
2009-012).
---------------------------------------------------------------------------
On January 17, 2012, the Exchange filed a rule change to, among
other things, decouple the Program with the FINRA program and to extend
the expiration date of the Program to January 17, 2013.\7\ The Program,
however, continues to be substantially similar to the provisions of the
FINRA program. Subsequently, the Exchange filed rule changes to extend
the program until January 17, 2014 and January 16, 2015,
respectively.\8\ The Exchange believes that extending the expiration
date of the Program further will allow for further analysis of the
Program and a determination of how the Program should be structured in
the future. Thus, the Exchange is now currently proposing to extend the
duration of the Program for an additional year until January 15, 2016.
---------------------------------------------------------------------------
\7\ See Securities and Exchange Act Release Nos. 66163 (January
17, 2012), 77 FR 3318 (January 23, 2012) (SR-CBOE-2012-007) and
71124 (December 18, 2013), 78 FR 77754 (December 24, 2013) (SR-CBOE-
2013-123).
\8\ See Securities and Exchange Act Release No. 68539 (December
27, 2012), 78 FR 138 (January 2, 2013) (SR-CBOE-2013-125).
---------------------------------------------------------------------------
The Exchange notes that there are currently Credit Options listed
for trading on the Exchange that have open interest. As a result, the
Exchange believes that is in the public interest for the Program to
continue uninterrupted. In the future, if the Exchange proposes an
additional extension of the Credit Option Margin Pilot Program or
proposes to make the Program permanent, then the Exchange will submit a
filing proposing such amendments to the Program.
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.\9\ Specifically, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \10\ requirements that the rules of
an exchange be designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitation transactions in securities, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general, to protect investors and the public interest.
Additionally, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \11\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
\11\ Id.
---------------------------------------------------------------------------
In particular, the Exchange believes that the proposed rule change
will further the purposes of the Act because, consistent with the goals
of the Commission at the initial adoption of the Program, the margin
requirements set forth by the proposed rule change will help to
stabilize the financial markets. In addition, the proposed rule change
is substantially similar to existing FINRA Rule 4240.
B. Self-Regulatory Organization's Statement on Burden on Competition
CBOE does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. Specifically, the Exchange
believes that, by extending the expiration of the Program, the proposed
rule change will allow for further analysis of the Program and a
determination of how the Program shall be structured in the future. In
doing so, the proposed rule change will also serve to promote
regulatory clarity and consistency, thereby reducing burdens on the
marketplace and facilitating investor protection.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not:
A. Significantly affect the protection of investors or the public
interest;
B. impose any significant burden on competition; and
C. become operative for 30 days from the date on which it was
filed, or such shorter time as the Commission may designate, it has
become effective pursuant to Section 19(b)(3)(A) of the Act \12\ and
Rule 19b-4(f)(6) \13\ thereunder.
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6).
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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:
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-2014-091 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-2014-091. This file
number should be included on the subject line if email is used. To help
the Commission process and review your
[[Page 75852]]
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-2014-091 and should be submitted on or before
January 9, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-29699 Filed 12-18-14; 8:45 am]
BILLING CODE 8011-01-P