Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Extend a Pilot Program that Eliminates Position and Exercise Limits for Physically-Settled SPDR S&P 500 ETF Trust (“SPY”) Options, 40111-40113 [2015-16981]
Download as PDF
Federal Register / Vol. 80, No. 133 / Monday, July 13, 2015 / Notices
unreasonably burdensome because
Market Makers can enter an out-of-range
value so that the Exchange-provided
risk protections will not be triggered.
Reducing risk by utilizing the proposed
risk protections will enable Market
Makers to enter quotations with larger
size, which in turn will benefit investors
through increased liquidity for the
execution of their orders. Such
increased liquidity benefits investors
because they receive better prices and
because it lowers volatility in the
options market.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) 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)(ii) of the Act 28 and
subparagraph (f)(6) of Rule 19b–4
thereunder.29 The Exchange has
requested that the Commission waive
the thirty-day operative delay so that the
proposal may become operative
immediately. The Exchange states that
waiving the thirty-day operative delay
will enable Market Makers to enhance
their risk controls and risk management
processes without additional delay. The
Commission believes that waiving the
thirty day delay is consistent with the
protection of investors and the public
interest. Therefore, the Commission
hereby waives the thirty-day operative
delay and designates the proposal
effective upon filing.30
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
28 15
U.S.C. 78s(b)(3)(a)(ii).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this
requirement.
30 For purposes of waiving the 30-day operative
delay, the Commission has considered the proposed
rule’s impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
asabaliauskas on DSK5VPTVN1PROD with NOTICES
29 17
VerDate Sep<11>2014
19:27 Jul 10, 2015
Jkt 235001
action is: (i) Necessary or appropriate in
the public interest; (ii) for the protection
of investors; or (iii) otherwise in
furtherance of the purposes of the Act.
If the Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
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–
Phlx–2015–52 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–Phlx–2015–52. 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–Phlx–2015–52 and should
PO 00000
Frm 00120
Fmt 4703
Sfmt 4703
40111
be submitted on or before August 3,
2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.31
Brent J. Fields,
Secretary.
[FR Doc. 2015–16973 Filed 7–10–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–75381; File No. SR–CBOE–
2015–065]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change to Extend a Pilot Program
that Eliminates Position and Exercise
Limits for Physically-Settled SPDR
S&P 500 ETF Trust (‘‘SPY’’) Options
July 7, 2015.
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 July 1,
2015, Chicago Board Options Exchange,
Incorporated (the ‘‘Exchange’’ or
‘‘CBOE’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change as described
in Items I and II below, which Items
have been prepared by the Exchange.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
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
31 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\13JYN1.SGM
13JYN1
40112
Federal Register / Vol. 80, No. 133 / Monday, July 13, 2015 / Notices
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
asabaliauskas on DSK5VPTVN1PROD with NOTICES
1. Purpose
The Exchange proposes to amend
Interpretation and Policy .07 to Rule
4.11 (Position Limits) to extend the
duration of the SPY Pilot Program.3 The
SPY Pilot Program is currently
scheduled to expire on July 12, 2015
and this proposal would extend the SPY
Pilot Program through July 12, 2016.
There are no substantive changes being
proposed to the SPY Pilot Program.
In proposing to extend the SPY Pilot
Program, the Exchange reaffirms its
consideration of several factors that
supported its original proposal to
establish the SPY Pilot Program, which
include: (1) the liquidity of the option
and the underlying security; (2) the
market capitalization of the underlying
security and the securities that make up
the S&P 500 Index; (3) options reporting
requirements; and (4) financial
requirements imposed by CBOE and the
Commission.
When the SPY Pilot Program was
most recently renewed in January 2015,
CBOE submitted a report providing an
analysis of the SPY Pilot Program
covering the first twelve months during
which the SPY Pilot Program was in
effect (the ‘‘Pilot Report’’). In the
January extension, the Exchange stated
that if it were to submit a proposal to
either extend the SPY Pilot Program,
adopt the SPY Pilot Program on a
permanent basis, or terminate the SPY
Pilot Program, it would submit another
Pilot Report covering the period since
the previous extension. 4 Accordingly,
the Exchange is submitting another Pilot
Report that details CBOE’s experience
with the SPY Pilot Program. The Pilot
Report now includes the period of
January 2015 through May 2015. The
Pilot Report is attached as Exhibit 3.
CBOE notes that it is unaware of any
problems created by the SPY Pilot
Program and does not foresee any as a
result of the proposed extension. In
extending the SPY Pilot Program, the
Exchange states that if CBOE were to
propose another extension, permanent
3 See Securities Exchange Act Release Nos. 67937
(September 27, 2012), 77 FR 60489 (October 3,
2012) (SR–CBOE–2012–091); 70878 (November 14,
2013), 78 FR 69737 (November 20, 2013) (SR–
CBOE–2013–106) and 74149 (January 27, 2015) 80
FR 5606 (February 2, 2015) (SR–CBOE–2015–008).
4 See 80 FR at 5607.
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19:27 Jul 10, 2015
Jkt 235001
approval or termination of the SPY Pilot
Program, the Exchange will submit
another Pilot Report covering the period
since the previous extension, which will
be submitted at least 30 days before the
end of the proposed extension. If the
SPY Pilot Program is not extended or
adopted on a permanent basis by July
12, 2016, position limits in SPY will
revert to their Pre-Pilot levels.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’) and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.5 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 6 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 remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest. Specifically, the
Exchange believes that extending the
SPY Pilot Program promotes just and
equitable principles of trade by
permitting market participants,
including market makers, institutional
investors and retail investors, to
establish greater positions when
pursuing their investment goals and
needs. Extending the SPY Pilot Program
will give the Exchange and the
Commission additional time to evaluate
the pilot and its effect on the market.
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
proposed rule change is not designed to
address any aspect of competition,
whether between the Exchange and its
competitors, or among market
participants. Instead, the proposed rule
change is designed to allow the SPY
Pilot Program to continue as the
Exchange expects other SROs will
propose similar extensions.
PO 00000
5 15
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00121
Fmt 4703
Sfmt 4703
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received from
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) 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 and Rule 19b–
4(f)(6) thereunder.7
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 8 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 9
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has asked
the Commission to waive the 30-day
operative delay, noting that such waiver
will allow the Exchange to extend the
pilot program prior to its expiration on
July 12, 2015. In addition, the Exchange
believes that waiver of the operative
delay is consistent with the protection
of investors and the public interest
because it will allow for the least
amount of market disruption as the pilot
will continue as it currently does
maintaining the status quo. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest. Therefore, the
Commission hereby waives the
operative delay and designates the
proposed rule change operative upon
filing.10
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
7 17 CFR 240.19b–4(f)(6). As required under Rule
19b–4(f)(6)(iii), the Exchange provided the
Commission with written notice of its intent to file
the proposed rule change, along with a brief
description and the text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission.
8 17 CFR 240.19b–4(f)(6).
9 17 CFR 240.19b–4(f)(6)(iii).
10 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
E:\FR\FM\13JYN1.SGM
13JYN1
Federal Register / Vol. 80, No. 133 / Monday, July 13, 2015 / Notices
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
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–2015–065 on the subject line.
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–CBOE–2015–065. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street, NE.,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
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–
19:27 Jul 10, 2015
Jkt 235001
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Brent J. Fields,
Secretary.
[FR Doc. 2015–16981 Filed 7–10–15; 8:45 am]
BILLING CODE 8011–01–P
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:
VerDate Sep<11>2014
2015–065, and should be submitted on
or before August 3,2015.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–75376; File No. SR–
NYSEArca–2015–18]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Order Granting Approval of
Proposed Rule Change Relating to
Listing and Trading Under NYSE Arca
Equities Rule 5.2(j)(3), Commentary .02
of Shares of the Vanguard Tax-Exempt
Bond Index Fund
July 7, 2015.
I. Introduction
On April 6, 2015, NYSE Arca, Inc.
(‘‘Exchange’’ or ‘‘NYSE Arca’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’)1 and Rule
19b–4 thereunder,2 a proposed rule
change to list and trade under NYSE
Arca Equities Rule 5.2(j)(3),
Commentary .02, the shares (‘‘Shares’’)
of the Vanguard Tax-Exempt Bond
Index Fund (‘‘Fund’’). The proposed
rule change was published for comment
in the Federal Register on April 16,
2015.3 On May 26, 2015, the
Commission extended the time period
in which to approve the proposed rule
change, disapprove the proposed rule
change, or institute proceedings to
determine whether the proposed rule
change should be disapproved.4 The
Commission received no comments on
the proposed rule change. This order
grants approval of the proposed rule
change.
II. Description of the Proposed Rule
Change
The Exchange proposes to list and
trade Shares of the Fund under NYSE
Arca Equities Rule 5.2(j)(3),
Commentary .02, which governs the
listing and trading of Investment
Company Units (‘‘Units’’) based on fixed
income securities indexes. The Fund is
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. 74701
(April 10, 2015), 80 FR 20529 (‘‘Notice’’).
4 See Securities Exchange Act Release No. 75042,
80 FR 31090 (June 1, 2015).
PO 00000
11 17
1 15
Frm 00122
Fmt 4703
Sfmt 4703
40113
a series of the Vanguard Municipal
Bond Funds Trust (‘‘Trust’’).5 The
Vanguard Group, Inc. will be the
investment adviser to the Fund
(‘‘Adviser’’). State Street Bank and Trust
Company will serve as custodian for the
Fund. Vanguard Marketing Corporation
will be the distributor for the Shares.
A. Principal Investments of the Fund
According to the Exchange, the Fund
will seek to track the performance of a
benchmark index that measures the
investment-grade segment of the U.S.
municipal bond market, as described
below. The Fund will invest by
sampling its benchmark index, meaning
that it will hold a range of securities
that, in the aggregate, approximates the
full index in terms of key risk factors
and other characteristics. All of the
Fund’s investments will be selected
through the sampling process, and,
under normal circumstances,6 at least
80% of the Fund’s assets will be
invested in securities held in its
benchmark index. Under normal
circumstances, at least 80% of the
Fund’s income will be exempt from
federal income taxes.
According to the Exchange, the Fund
has proposed to use the Standard &
Poor’s National AMT-Free Municipal
Bond Index (‘‘Index’’) as its benchmark
index.7 The Index includes municipal
bonds from issuers that are primarily
state or local governments or agencies
whose interest is exempt from U.S.
federal income taxes and the federal
alternative minimum tax (‘‘AMT’’). To
be eligible for inclusion in the Index,
each bond must have a rating of at least
investment-grade, as determined by a
nationally recognized statistical rating
organization (e.g., at least BBB–by Fitch
Ratings, Inc.); be denominated in U.S.
5 The Exchange represents that, on January 6,
2015, the Trust filed a registration statement
(‘‘Registration Statement’’) on Form N–1A under the
Securities Act of 1933 and the Investment Company
Act of 1940 (‘‘1940 Act’’) (File Nos. 2–57689 and
811–02687). According to the Exchange, the Trust
has obtained certain exemptive relief from the
Commission under the 1940 Act. See Investment
Company Act Release No. 27773 (April 2, 2007)
(File No. 812–13336).
6 According to the Exchange, term ‘‘under normal
circumstances’’ includes, but is not limited to, the
absence of extreme volatility or trading halts in the
fixed income markets or the financial markets
generally; operational issues causing dissemination
of inaccurate market information; or force majeure
type events such as systems failure, natural or manmade disaster, act of God, armed conflict, act of
terrorism, riot or labor disruption, or any similar
intervening circumstance.
7 S&P Dow Jones Indices (‘‘S&P’’) is the ‘‘Index
Provider’’ with respect to the Index. According to
the Exchange, the Index Provider is not a brokerdealer or affiliated with a broker-dealer and has
implemented procedures designed to prevent the
use and dissemination of material, non-public
information regarding the Index.
E:\FR\FM\13JYN1.SGM
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Agencies
[Federal Register Volume 80, Number 133 (Monday, July 13, 2015)]
[Notices]
[Pages 40111-40113]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-16981]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-75381; File No. SR-CBOE-2015-065]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change to Extend a Pilot Program that Eliminates Position
and Exercise Limits for Physically-Settled SPDR S&P 500 ETF Trust
(``SPY'') Options
July 7, 2015.
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 July 1, 2015, Chicago Board Options Exchange, Incorporated (the
``Exchange'' or ``CBOE'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I and II below, which Items have been prepared by the Exchange.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
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
[[Page 40112]]
Exchange has prepared summaries, set forth in sections A, B, and C
below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Interpretation and Policy .07 to
Rule 4.11 (Position Limits) to extend the duration of the SPY Pilot
Program.\3\ The SPY Pilot Program is currently scheduled to expire on
July 12, 2015 and this proposal would extend the SPY Pilot Program
through July 12, 2016. There are no substantive changes being proposed
to the SPY Pilot Program.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release Nos. 67937 (September
27, 2012), 77 FR 60489 (October 3, 2012) (SR-CBOE-2012-091); 70878
(November 14, 2013), 78 FR 69737 (November 20, 2013) (SR-CBOE-2013-
106) and 74149 (January 27, 2015) 80 FR 5606 (February 2, 2015) (SR-
CBOE-2015-008).
---------------------------------------------------------------------------
In proposing to extend the SPY Pilot Program, the Exchange
reaffirms its consideration of several factors that supported its
original proposal to establish the SPY Pilot Program, which include:
(1) the liquidity of the option and the underlying security; (2) the
market capitalization of the underlying security and the securities
that make up the S&P 500 Index; (3) options reporting requirements; and
(4) financial requirements imposed by CBOE and the Commission.
When the SPY Pilot Program was most recently renewed in January
2015, CBOE submitted a report providing an analysis of the SPY Pilot
Program covering the first twelve months during which the SPY Pilot
Program was in effect (the ``Pilot Report''). In the January extension,
the Exchange stated that if it were to submit a proposal to either
extend the SPY Pilot Program, adopt the SPY Pilot Program on a
permanent basis, or terminate the SPY Pilot Program, it would submit
another Pilot Report covering the period since the previous extension.
\4\ Accordingly, the Exchange is submitting another Pilot Report that
details CBOE's experience with the SPY Pilot Program. The Pilot Report
now includes the period of January 2015 through May 2015. The Pilot
Report is attached as Exhibit 3. CBOE notes that it is unaware of any
problems created by the SPY Pilot Program and does not foresee any as a
result of the proposed extension. In extending the SPY Pilot Program,
the Exchange states that if CBOE were to propose another extension,
permanent approval or termination of the SPY Pilot Program, the
Exchange will submit another Pilot Report covering the period since the
previous extension, which will be submitted at least 30 days before the
end of the proposed extension. If the SPY Pilot Program is not extended
or adopted on a permanent basis by July 12, 2016, position limits in
SPY will revert to their Pre-Pilot levels.
---------------------------------------------------------------------------
\4\ See 80 FR at 5607.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\5\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \6\ 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 remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general, to protect investors and the public
interest. Specifically, the Exchange believes that extending the SPY
Pilot Program promotes just and equitable principles of trade by
permitting market participants, including market makers, institutional
investors and retail investors, to establish greater positions when
pursuing their investment goals and needs. Extending the SPY Pilot
Program will give the Exchange and the Commission additional time to
evaluate the pilot and its effect on the market.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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 proposed rule change is
not designed to address any aspect of competition, whether between the
Exchange and its competitors, or among market participants. Instead,
the proposed rule change is designed to allow the SPY Pilot Program to
continue as the Exchange expects other SROs will propose similar
extensions.
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: (i)
significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
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 and Rule 19b-
4(f)(6) thereunder.\7\
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\7\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \8\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \9\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has asked the Commission to waive the 30-day operative delay, noting
that such waiver will allow the Exchange to extend the pilot program
prior to its expiration on July 12, 2015. In addition, the Exchange
believes that waiver of the operative delay is consistent with the
protection of investors and the public interest because it will allow
for the least amount of market disruption as the pilot will continue as
it currently does maintaining the status quo. The Commission believes
that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest. Therefore, the
Commission hereby waives the operative delay and designates the
proposed rule change operative upon filing.\10\
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\8\ 17 CFR 240.19b-4(f)(6).
\9\ 17 CFR 240.19b-4(f)(6)(iii).
\10\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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
[[Page 40113]]
action is necessary or appropriate in the public interest, for the
protection of investors, or otherwise in furtherance of the purposes of
the Act. If the Commission takes such action, the Commission shall
institute proceedings to determine whether the proposed rule 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-2015-065 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-CBOE-2015-065. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal 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-2015-065, and should be
submitted on or before August 3,2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-16981 Filed 7-10-15; 8:45 am]
BILLING CODE 8011-01-P