Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Granting Accelerated Approval of a Proposed Rule Change To Amend Exchange Rules Related To Order Tickets, 11717-11718 [2015-04451]

Download as PDF Federal Register / Vol. 80, No. 42 / Wednesday, March 4, 2015 / Notices For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Jill M. Peterson, Assistant Secretary. [FR Doc. 2015–04421 Filed 3–3–15; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–74389; File No. SR–CBOE– 2015–011] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Granting Accelerated Approval of a Proposed Rule Change To Amend Exchange Rules Related To Order Tickets February 26, 2015. mstockstill on DSK4VPTVN1PROD with NOTICES I. Introduction On January 23, 2015, the Chicago Board Options Exchange, Incorporated (the ‘‘Exchange’’ or ‘‘CBOE’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’)1 and Rule 19b–4 thereunder,2 a proposed rule change to amend its rules related to use of order tickets. This proposal was published for comment in the Federal Register on February 4, 2015.3 The Commission received no comments regarding the proposal. This order approves the proposed rule change on an accelerated basis. II. Description of the Proposed Rule Change The Exchange proposes to amend its rules governing the use of order tickets. According to the Exchange, system limitations on CBOE currently may prevent a multi-part order with more than a certain number of legs from being entered on a single order ticket for representation and execution in open outcry as a complex order.4 As a result, complex orders with more than the applicable leg limitation that are represented in open outcry must be split up and entered on multiple order tickets.5 The Exchange proposes to amend CBOE Rule 6.53 to require that complex orders of twelve (12) legs or less (one leg of which may be for an underlying security or security future, as 12 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 See Securities Exchange Act Release No. 74169 (January 29, 2015), 80 FR 6145 (‘‘Notice’’). 4 See Notice, supra note 3 at 6147. 5 Id. 1 15 VerDate Sep<11>2014 18:11 Mar 03, 2015 Jkt 235001 applicable) must be entered on a single order ticket at time of systemization to provide consistency in processing, and to enhance the Exchange’s audit trail.6 If permitted by the Exchange via Regulatory Circular, complex orders of more than twelve (12) legs (one leg of which may be for an underlying security or security future, as applicable) may be split across multiple order tickets, if the Trading Permit Holder (‘‘TPH’’) representing the complex order includes twelve (12) legs on one of the order tickets and identifies for the Exchange the order tickets that are part of the same complex order (in a form and manner prescribed by the Exchange).7 The Exchange also proposes to add Interpretation and Policy .01 to CBOE Rule 24.20 (pertaining to SPX Combo Orders) to require that an SPX Combo Order for twelve (12) legs or less be entered on a single order ticket at time of systemization.8 An SPX Combo Order that contains more than twelve (12) legs may be represented and executed as a single SPX Combo Order in accordance with CBOE Rule 24.20 if it is split across multiple order tickets and the TPH representing the SPX Combo Order includes twelve (12) legs on one of the order tickets and identifies for the Exchange the order tickets that are part of the same SPX Combo Order (in a manner and form prescribed by the Exchange).9 The Exchange will announce by Regulatory Circular whether it will permit SPX Combo Orders with more than 12 legs and, if so permitted, the form and manner in which the TPH must link the multiple order tickets.10 The Exchanges notes that a TPH may submit an order that does not satisfy these ticket requirements, but such order may not be represented or executed as a single SPX Combo Order in accordance with Rule 24.20.11 The Exchange also notes that Rules 24.20 already specifies an applicable ratio, and it is proposing no changes to the ratio through this rule filing.12 III. Discussion and Findings After careful review, the Commission finds that the proposed rule change is 6 Id. 7 Id. 8 Id. 9 If an Open outcry complex order or SPX Combo Order with more than twelve legs is split across multiple order tickets, one of the order tickets must contain twelve legs. For example, a thirteen leg order cannot have seven legs on one ticket and six legs on another ticket; rather, one ticket must have twelve legs and the other ticket must have one leg. Id. at 6147. 10 Id. 11 Id. 12 Id. PO 00000 Frm 00089 Fmt 4703 Sfmt 4703 11717 consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.13 In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act,14 which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. The Commission also finds that the proposed rule change is consistent with Section 6(b)(1) of the Act,15 which provides that the Exchange be organized and have the capacity to be able to carry out the purposes of the Act and to enforce compliance by the Exchange’s members, and persons associated with members, with the Act, the rules and regulations thereunder and the rules of the Exchange. The Commission notes that CBOE’s proposal is designed to help enhance the Exchange’s audit trail with respect to open outcry complex order processing and SPX Combo Orders. The Commission believes that the proposal will help to protect investors and the public interest because the Commission believes an audit trail serves to provides regulators with information that aids them in surveiling activity on their market. In addition, the Commission finds good cause, pursuant to Section 19(b)(2) of the Act,16 for approving the proposed rule change prior to the 45th day after publication of notice in the Federal Register. The Commission notes that the substance of this proposal was noticed for comment as part of changes proposed in a prior CBOE proposed rule change, which CBOE withdrew.17 The 13 In approving this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 14 15 U.S.C. 78f(b)(5). 15 15 U.S.C. 78f(b)(1). 16 15 U.S.C. 78s(b)(2). 17 See Securities Exchange Act Release No. 72957 (September 2, 2014), 79 FR 53230 (September 8, 2014) (‘‘SR–CBOE–2014–015 Notice’’). CBOE withdrew SR–CBOE–2014–015 on November 21, 2014. The Exchange notes that, unlike the instant filing, SR–CBOE–2014–015 did not impose requirements on how a complex order with more than 12 legs should be split across multiple tickets. While the instant filing imposes such a requirement, the Exchange does not believe TPHs will be adversely affected by the proposed requirement specifying how a complex order with more than 12 legs should be split across multiple E:\FR\FM\04MRN1.SGM Continued 04MRN1 11718 Federal Register / Vol. 80, No. 42 / Wednesday, March 4, 2015 / Notices prior CBOE proposed rule change was published for the entire 21 day comment period, and no comments were received.18 In addition, the instant proposed rule change was published for a 15-day comment period to ensure that the public had an opportunity to review the proposal in its current form and no comments were received on the instant filing. Finally, the Commission notes that the Exchange represents that it has been in communication with TPHs about the changes proposed in the instant filing and implementation issues since August 19, 2014, and has provided training on a Floor Broker Workstation (‘‘FBW) to support the combo indicator and the entry of complex orders with up to twelve legs.19 Accordingly, the Commission finds that good cause exists for approving the proposed rule change on an accelerated basis. IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,20 that the proposed rule change (File No. SR– CBOE–2015–011) be, and hereby is, approved on an accelerated basis. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.21 Jill M. Peterson, Assistant Secretary. [FR Doc. 2015–04451 Filed 3–3–15; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [File No. 500–1] In the Matter of Adex Media, Inc. et al.; Order of Suspension of Trading March 2, 2015. It appears to the Securities and Exchange Commission that there is a lack of current and accurate information concerning the securities of each of the issuers detailed below because questions have arisen as to their operating status, if any. Each of the issuers below is quoted on OTC Link operated by OTC Markets Group, Inc. OTC Markets Group, Inc., however, has been unable to contact each of these issuers for more than one year. In addition, the staff of the Securities and Exchange Commission has independently endeavored to determine whether any of the issuers below are operating. Each of the issuers below either confirmed that they were no longer operating or were now private companies, failed to respond to the Commission’s inquiry about their operating status, did not have an operational address, or failed to provide their registered agent with an operational address. The staff of the Securities and Exchange Commission also determined that none of the issuers below has filed any information with OTC Markets Group, Inc. or the Securities and Exchange Commission for the past year. mstockstill on DSK4VPTVN1PROD with NOTICES Issuer Ticker 1. Adex Media, Inc ..................................................................................................................................................... 2. AdStar, Inc ............................................................................................................................................................. 3. Alternative Green Technologies, Inc ..................................................................................................................... 4. American City Bank (Los Angeles, CA) ................................................................................................................ 5. American Mold Guard, Inc ..................................................................................................................................... 6. American Uranium Corp ........................................................................................................................................ 7. Americana Distribution, Inc .................................................................................................................................... 8. Atlantis Technology Group .................................................................................................................................... 9. Azure Dynamics Corp ............................................................................................................................................ 10. Bald Eagle Energy, Inc ........................................................................................................................................ 11. Betawave Corp .................................................................................................................................................... 12. Beverly Hills Bancorp, Inc .................................................................................................................................... 13. Blue Holdings, Inc ................................................................................................................................................ 14. California-Michigan Land & Water Co ................................................................................................................. 15. Cannon Exploration, Inc ...................................................................................................................................... 16. Carlton Companies, Inc (The) ............................................................................................................................. 17. China Daqing M&H Petroleum, Inc ..................................................................................................................... 18. China Gateway Corp ........................................................................................................................................... 19. China M161 Network Co ..................................................................................................................................... 20. ClearPoint Business Resources, Inc ................................................................................................................... 21. Collexis Holdings, Inc .......................................................................................................................................... 22. Colonial Capital Trust IV ...................................................................................................................................... 23. CommercePlanet, Inc .......................................................................................................................................... 24. Commodore Applied Technologies, Inc ............................................................................................................... 25. Composite Power Corp ........................................................................................................................................ 26. Consolidated Plen Tech Electronics, Inc ............................................................................................................. 27. Consumer Products Services Group, Inc ............................................................................................................ 28. Corprate Data Sciences, Inc ................................................................................................................................ 29. Corprate Management Solutions, Inc .................................................................................................................. 30. Data Evolution Holdings, Inc ............................................................................................................................... 31. Degama Software Solutions, Inc ......................................................................................................................... 32. EarthFirst Technologies, Inc ................................................................................................................................ 33. ebank Financial Services, Inc .............................................................................................................................. 34. Ecuity, Inc ............................................................................................................................................................ 35. EM International Enterprises Corp ...................................................................................................................... Information regarding operating status * ADXM .......... ADST ........... AGTI ............ ACBK .......... AMGI ........... ACUC .......... ADBN .......... ATNP ........... AZDDQ ........ BEEI ............ BWAV .......... BHBCQ ....... BLHI ............ CMLW ......... CNEX .......... CTNO .......... CHDP .......... CGWY ......... CMNW ......... CPBRQ ....... CLXS ........... CBCPQ ....... CPLT ........... CXIA ............ CPWW ........ CSPT ........... CPSV .......... CODS .......... YDGE .......... DTEV ........... DGMA ......... EFTI ............ EBDC .......... ECUI ........... EMIE ........... tickets. The Exchange states that PULSe, the enhanced version of FBW, and proprietary systems that TPHs have designed to comply with the single order ticket requirements of SR–CBOE–2014–015 are capable of complying with the requirement VerDate Sep<11>2014 18:11 Mar 03, 2015 Jkt 235001 specifying how orders with more than 12 legs should be split across multiple tickets without further programming or configuration. Id. at 6147. 18 SR–CBOE–2014–015 provided for several changes to various CBOE Rules; this proposal PO 00000 Frm 00090 Fmt 4703 Sfmt 4703 specifically relates to Order Ticket requirements. See SR–CBOE–2014–015 Notice, supra note 17. 19 See Notice, supra note 3 at 6146. 20 15 U.S.C. 78s(b)(2). 21 17 CFR 200.30–3(a)(12). E:\FR\FM\04MRN1.SGM 04MRN1 2 1 1 1 1 1 1 1 1 1 1 2 1 2 1 1 1 1 1 1 1 1 1 2 1 1 1 1 1 1 1 2 2 1 1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 80, Number 42 (Wednesday, March 4, 2015)]
[Notices]
[Pages 11717-11718]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-04451]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74389; File No. SR-CBOE-2015-011]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Order Granting Accelerated Approval of a Proposed Rule 
Change To Amend Exchange Rules Related To Order Tickets

February 26, 2015.

I. Introduction

    On January 23, 2015, the Chicago Board Options Exchange, 
Incorporated (the ``Exchange'' or ``CBOE'') filed with the Securities 
and Exchange Commission (the ``Commission''), pursuant to Section 
19(b)(1) of the Securities Exchange Act of 1934 (the ``Act'')\1\ and 
Rule 19b-4 thereunder,\2\ a proposed rule change to amend its rules 
related to use of order tickets. This proposal was published for 
comment in the Federal Register on February 4, 2015.\3\ The Commission 
received no comments regarding the proposal. This order approves the 
proposed rule change on an accelerated basis.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 74169 (January 29, 
2015), 80 FR 6145 (``Notice'').
---------------------------------------------------------------------------

II. Description of the Proposed Rule Change

    The Exchange proposes to amend its rules governing the use of order 
tickets. According to the Exchange, system limitations on CBOE 
currently may prevent a multi-part order with more than a certain 
number of legs from being entered on a single order ticket for 
representation and execution in open outcry as a complex order.\4\ As a 
result, complex orders with more than the applicable leg limitation 
that are represented in open outcry must be split up and entered on 
multiple order tickets.\5\
---------------------------------------------------------------------------

    \4\ See Notice, supra note 3 at 6147.
    \5\ Id.
---------------------------------------------------------------------------

    The Exchange proposes to amend CBOE Rule 6.53 to require that 
complex orders of twelve (12) legs or less (one leg of which may be for 
an underlying security or security future, as applicable) must be 
entered on a single order ticket at time of systemization to provide 
consistency in processing, and to enhance the Exchange's audit 
trail.\6\ If permitted by the Exchange via Regulatory Circular, complex 
orders of more than twelve (12) legs (one leg of which may be for an 
underlying security or security future, as applicable) may be split 
across multiple order tickets, if the Trading Permit Holder (``TPH'') 
representing the complex order includes twelve (12) legs on one of the 
order tickets and identifies for the Exchange the order tickets that 
are part of the same complex order (in a form and manner prescribed by 
the Exchange).\7\
---------------------------------------------------------------------------

    \6\ Id.
    \7\ Id.
---------------------------------------------------------------------------

    The Exchange also proposes to add Interpretation and Policy .01 to 
CBOE Rule 24.20 (pertaining to SPX Combo Orders) to require that an SPX 
Combo Order for twelve (12) legs or less be entered on a single order 
ticket at time of systemization.\8\ An SPX Combo Order that contains 
more than twelve (12) legs may be represented and executed as a single 
SPX Combo Order in accordance with CBOE Rule 24.20 if it is split 
across multiple order tickets and the TPH representing the SPX Combo 
Order includes twelve (12) legs on one of the order tickets and 
identifies for the Exchange the order tickets that are part of the same 
SPX Combo Order (in a manner and form prescribed by the Exchange).\9\ 
The Exchange will announce by Regulatory Circular whether it will 
permit SPX Combo Orders with more than 12 legs and, if so permitted, 
the form and manner in which the TPH must link the multiple order 
tickets.\10\ The Exchanges notes that a TPH may submit an order that 
does not satisfy these ticket requirements, but such order may not be 
represented or executed as a single SPX Combo Order in accordance with 
Rule 24.20.\11\ The Exchange also notes that Rules 24.20 already 
specifies an applicable ratio, and it is proposing no changes to the 
ratio through this rule filing.\12\
---------------------------------------------------------------------------

    \8\ Id.
    \9\ If an Open outcry complex order or SPX Combo Order with more 
than twelve legs is split across multiple order tickets, one of the 
order tickets must contain twelve legs. For example, a thirteen leg 
order cannot have seven legs on one ticket and six legs on another 
ticket; rather, one ticket must have twelve legs and the other 
ticket must have one leg. Id. at 6147.
    \10\ Id.
    \11\ Id.
    \12\ Id.
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III. Discussion and Findings

    After careful review, the Commission finds that the proposed rule 
change is consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities 
exchange.\13\ In particular, the Commission finds that the proposed 
rule change is consistent with Section 6(b)(5) of the Act,\14\ which 
requires, among other things, that the rules of a national securities 
exchange be designed to prevent fraudulent and manipulative acts and 
practices, to promote just and equitable principles of trade, to remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system, and, in general, to protect investors and the 
public interest. The Commission also finds that the proposed rule 
change is consistent with Section 6(b)(1) of the Act,\15\ which 
provides that the Exchange be organized and have the capacity to be 
able to carry out the purposes of the Act and to enforce compliance by 
the Exchange's members, and persons associated with members, with the 
Act, the rules and regulations thereunder and the rules of the 
Exchange.
---------------------------------------------------------------------------

    \13\ In approving this proposal, the Commission has considered 
the proposed rule's impact on efficiency, competition, and capital 
formation. See 15 U.S.C. 78c(f).
    \14\ 15 U.S.C. 78f(b)(5).
    \15\ 15 U.S.C. 78f(b)(1).
---------------------------------------------------------------------------

    The Commission notes that CBOE's proposal is designed to help 
enhance the Exchange's audit trail with respect to open outcry complex 
order processing and SPX Combo Orders. The Commission believes that the 
proposal will help to protect investors and the public interest because 
the Commission believes an audit trail serves to provides regulators 
with information that aids them in surveiling activity on their market.
    In addition, the Commission finds good cause, pursuant to Section 
19(b)(2) of the Act,\16\ for approving the proposed rule change prior 
to the 45th day after publication of notice in the Federal Register. 
The Commission notes that the substance of this proposal was noticed 
for comment as part of changes proposed in a prior CBOE proposed rule 
change, which CBOE withdrew.\17\ The

[[Page 11718]]

prior CBOE proposed rule change was published for the entire 21 day 
comment period, and no comments were received.\18\ In addition, the 
instant proposed rule change was published for a 15-day comment period 
to ensure that the public had an opportunity to review the proposal in 
its current form and no comments were received on the instant filing. 
Finally, the Commission notes that the Exchange represents that it has 
been in communication with TPHs about the changes proposed in the 
instant filing and implementation issues since August 19, 2014, and has 
provided training on a Floor Broker Workstation (``FBW) to support the 
combo indicator and the entry of complex orders with up to twelve 
legs.\19\
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78s(b)(2).
    \17\ See Securities Exchange Act Release No. 72957 (September 2, 
2014), 79 FR 53230 (September 8, 2014) (``SR-CBOE-2014-015 
Notice''). CBOE withdrew SR-CBOE-2014-015 on November 21, 2014. The 
Exchange notes that, unlike the instant filing, SR-CBOE-2014-015 did 
not impose requirements on how a complex order with more than 12 
legs should be split across multiple tickets. While the instant 
filing imposes such a requirement, the Exchange does not believe 
TPHs will be adversely affected by the proposed requirement 
specifying how a complex order with more than 12 legs should be 
split across multiple tickets. The Exchange states that PULSe, the 
enhanced version of FBW, and proprietary systems that TPHs have 
designed to comply with the single order ticket requirements of SR-
CBOE-2014-015 are capable of complying with the requirement 
specifying how orders with more than 12 legs should be split across 
multiple tickets without further programming or configuration. Id. 
at 6147.
    \18\ SR-CBOE-2014-015 provided for several changes to various 
CBOE Rules; this proposal specifically relates to Order Ticket 
requirements. See SR-CBOE-2014-015 Notice, supra note 17.
    \19\ See Notice, supra note 3 at 6146.
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    Accordingly, the Commission finds that good cause exists for 
approving the proposed rule change on an accelerated basis.

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\20\ that the proposed rule change (File No. SR-CBOE-2015-011) be, 
and hereby is, approved on an accelerated basis.
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    \20\ 15 U.S.C. 78s(b)(2).
    \21\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\21\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015-04451 Filed 3-3-15; 8:45 am]
BILLING CODE 8011-01-P

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