Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule, 53218-53219 [2015-21671]

Download as PDF 53218 Federal Register / Vol. 80, No. 170 / Wednesday, September 2, 2015 / Notices SECURITIES AND EXCHANGE COMMISSION [Release No. 34–75767; File No. SR–CBOE– 2015–074] A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend its Fees Schedule.3 First, the Exchange proposes to eliminate references to CBOE Short-Term Volatility Index (‘‘VXST’’) options. Specifically, as of June 2015, the Exchange no longer lists VXST options. Accordingly, the Exchange proposes to delete from the Fees Schedule all references to VXST, as such references are no longer necessary and will be obsolete. The Exchange also proposes to amend Footnote 31 of the Fees Schedule. Particularly, the Exchange currently waives the SPXW Customer Priority Surcharge for orders in SPX Weeklys (‘‘SPXW’’) options in the SPXW electronic book that are executed during opening rotation on the final settlement date of VXST options and futures and which have the expiration that contribute to the VXST settlement calculation. As mentioned above, VXST options (and futures) are no longer listed. However, the Exchange notes that the CBOE Futures Exchange, LLC (‘‘CFE’’) recently introduced new futures with a weekly expiration of a 30day VIX and the Exchange anticipates launching options with a weekly expiration of a 30-day VIX as well. The new VIX futures (and options) expirations are calculated using P.M.settled SPXW options that expire 30 days later. As such, the Exchange proposes to replace ‘‘VSXT options and futures’’ with ‘‘VIX options and futures’’ in Footnote 31 as the Exchange believes it is not appropriate to assess the surcharge on those SPXW options that are used in determining the final settlement value on the final settlement date of the new VIX weekly options and futures. In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. 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.4 Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 5 requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule August 27, 2015. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 1 and Rule 19b–4 thereunder,2 notice is hereby given that on August 17, 2015, Chicago Board Options Exchange, Incorporated (‘‘Exchange’’ or ‘‘CBOE’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change mstockstill on DSK4VPTVN1PROD with NOTICES The Exchange proposes to amend its Fees Schedule. The text of the proposed rule change is available on the Exchange’s Web site (http:// www.cboe.com/AboutCBOE/ CBOELegalRegulatoryHome.aspx), at the Exchange’s Office of the Secretary, and at the Commission’s Public Reference Room. 1 15 2 17 3 The Exchange initially filed the proposed fee changes on August 5, 2015 (SR–CBOE–2015–071). On August 17, 2015, the Exchange withdrew that filing and submitted this filing. 4 15 U.S.C. 78f(b). 5 15 U.S.C. 78f(b)(5). U.S.C. 78s(b)(1). CFR 240.19b–4. VerDate Sep<11>2014 19:04 Sep 01, 2015 Jkt 235001 PO 00000 Frm 00118 Fmt 4703 Sfmt 4703 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 Section 6(b)(4) of the Act,6 which requires that Exchange rules provide for the equitable allocation of reasonable dues, fees, and other charges among its Trading Permit Holders and other persons using its facilities. The Exchange believes the removal of ‘‘VXST’’ references in the Fees Schedule maintains clarity in the Fees Schedule and promotes just and equitable principles of trade by eliminating potential confusion and removing impediments to and perfecting the mechanism of a free and open market and a national market system. The Exchange believes it is equitable and not unfairly discriminatory to exclude from the SPXW Customer Priority Surcharge those options that are executed during opening rotation and which have the expiration that contribute to the VIX weekly settlement calculation because, VIX weekly settlement values are based upon those SPXW options and the Exchange therefore wants to encourage trading in those options at the opening on settlement days. Additionally, the Exchange believes the proposed rule change will continue to encourage the trading of SPXW options that have the expiration that contribute to the now VIX weekly settlement calculation at the opening on settlement days, which will provide additional liquidity and enhance competition in those securities, which ultimately benefits all CBOE Trading Permit Holders (‘‘TPHs’’) and all investors. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule changes will impose any burden on competition that are not necessary or appropriate in furtherance of the purposes of the Act. The Exchange does not believe that the proposed rule change will impose any burden on intramarket competition because the proposed waiver would apply equally to all CBOE TPHs who trade those SPXW options that are used in determining the final settlement value on the final settlement date of the 6 15 E:\FR\FM\02SEN1.SGM U.S.C. 78f(b)(4). 02SEN1 Federal Register / Vol. 80, No. 170 / Wednesday, September 2, 2015 / Notices new VIX weekly options and futures. Additionally, the Exchange believes the proposed rule change will continue to encourage the trading of SPXW options that have the expiration that contribute to the now VIX weekly settlement calculation at the opening on settlement days, which will provide additional liquidity and enhance competition in those securities. The Exchange does not believe that the proposed rule changes will impose any burden on intermarket competition that is not necessary or appropriate in furtherance of the purposes of the Act because the proposed rule change applies only to CBOE. To the extent that the proposed changes make CBOE a more attractive marketplace for market participants at other exchanges, such market participants are welcome to become CBOE market participants. 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 The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 7 and paragraph (f) of Rule 19b–4 8 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 mstockstill on DSK4VPTVN1PROD with NOTICES 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: • Send an email to rule-comments@ sec.gov. Please include File Number SR– CBOE–2015–074 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–2015–074. 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 (http://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– 2015–074 and should be submitted on or before September 23, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9 Robert W. Errett, Deputy Secretary. [FR Doc. 2015–21671 Filed 9–1–15; 8:45 am] BILLING CODE 8011–01–P Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or 7 15 8 17 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f). VerDate Sep<11>2014 19:04 Sep 01, 2015 9 17 Jkt 235001 PO 00000 CFR 200.30–3(a)(12). Frm 00119 Fmt 4703 Sfmt 4703 53219 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–75768; File No. SR–NSCC– 2015–003] Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing of Proposed Rule Change To Enhance NSCC’s Margining Methodology as Applied to Family-Issued Securities of Certain NSCC Members August 27, 2015. Pursuant to section 19(b)(1) 1 of the Securities Exchange Act of 1934 (‘‘Act’’) and Rule 19b–4 2 thereunder, notice is hereby given that on August 14, 2015, National Securities Clearing Corporation (‘‘NSCC’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II and III below, which Items have been prepared by NSCC.3 NSCC filed the proposed rule change pursuant to section 19(b)(2) 4 of the Act. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Clearing Agency’s Statement of the Terms of Substance of the Proposed Rule Change The proposed rule change consists of amendments to NSCC’s Rules & Procedures (‘‘Rules’’) in order to enhance NSCC’s margining methodology as applied to family-issued securities of NSCC Members 5 that are placed on NSCC’s ‘‘Watch List’’, i.e., those Members who present a heightened credit risk to NSCC or have demonstrated higher risk related to their ability to meet settlement, as more fully described below. II. Clearing Agency’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, NSCC included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 On August 14, 2015, NSCC filed this proposed rule change as an advance notice (SR–NSCC–2015– 803) with the Commission pursuant to section 806(e)(1) of the Dodd-Frank Wall Street Reform and Consumer Protection Act entitled the Payment, Clearing, and Settlement Supervision Act of 2010 (‘‘Clearing Supervision Act’’), 12 U.S.C. 5465(e)(1), and Rule 19b–4(n)(1)(i) of the Act, 17 CFR 240.19b– 4(n)(1)(i). A copy of the advance notice is available at http://www.dtcc.com/legal/sec-rule-filings.aspx. 4 15 U.S.C. 78s(b)(2). 5 Terms not defined herein are defined in the Rules, available at http://dtcc.com/∼/media/Files/ Downloads/legal/rules/nscc_rules.pdf. 2 17 E:\FR\FM\02SEN1.SGM 02SEN1

Agencies

[Federal Register Volume 80, Number 170 (Wednesday, September 2, 2015)]
[Notices]
[Pages 53218-53219]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-21671]



[[Page 53218]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75767; File No. SR-CBOE-2015-074]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend the Fees Schedule

August 27, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on August 
17, 2015, Chicago Board Options Exchange, Incorporated (``Exchange'' or 
``CBOE'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II, 
and III below, which Items have been prepared by the Exchange. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend its Fees Schedule. The text of the 
proposed rule change is available on the Exchange's Web site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's 
Office of the Secretary, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend its Fees Schedule.\3\ First, the 
Exchange proposes to eliminate references to CBOE Short-Term Volatility 
Index (``VXST'') options. Specifically, as of June 2015, the Exchange 
no longer lists VXST options. Accordingly, the Exchange proposes to 
delete from the Fees Schedule all references to VXST, as such 
references are no longer necessary and will be obsolete. The Exchange 
also proposes to amend Footnote 31 of the Fees Schedule. Particularly, 
the Exchange currently waives the SPXW Customer Priority Surcharge for 
orders in SPX Weeklys (``SPXW'') options in the SPXW electronic book 
that are executed during opening rotation on the final settlement date 
of VXST options and futures and which have the expiration that 
contribute to the VXST settlement calculation. As mentioned above, VXST 
options (and futures) are no longer listed. However, the Exchange notes 
that the CBOE Futures Exchange, LLC (``CFE'') recently introduced new 
futures with a weekly expiration of a 30-day VIX and the Exchange 
anticipates launching options with a weekly expiration of a 30-day VIX 
as well. The new VIX futures (and options) expirations are calculated 
using P.M.-settled SPXW options that expire 30 days later. As such, the 
Exchange proposes to replace ``VSXT options and futures'' with ``VIX 
options and futures'' in Footnote 31 as the Exchange believes it is not 
appropriate to assess the surcharge on those SPXW options that are used 
in determining the final settlement value on the final settlement date 
of the new VIX weekly options and futures.
---------------------------------------------------------------------------

    \3\ The Exchange initially filed the proposed fee changes on 
August 5, 2015 (SR-CBOE-2015-071). On August 17, 2015, the Exchange 
withdrew that filing and submitted this filing.
---------------------------------------------------------------------------

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.\4\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \5\ 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 
Section 6(b)(4) of the Act,\6\ which requires that Exchange rules 
provide for the equitable allocation of reasonable dues, fees, and 
other charges among its Trading Permit Holders and other persons using 
its facilities.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
    \6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange believes the removal of ``VXST'' references in the 
Fees Schedule maintains clarity in the Fees Schedule and promotes just 
and equitable principles of trade by eliminating potential confusion 
and removing impediments to and perfecting the mechanism of a free and 
open market and a national market system. The Exchange believes it is 
equitable and not unfairly discriminatory to exclude from the SPXW 
Customer Priority Surcharge those options that are executed during 
opening rotation and which have the expiration that contribute to the 
VIX weekly settlement calculation because, VIX weekly settlement values 
are based upon those SPXW options and the Exchange therefore wants to 
encourage trading in those options at the opening on settlement days. 
Additionally, the Exchange believes the proposed rule change will 
continue to encourage the trading of SPXW options that have the 
expiration that contribute to the now VIX weekly settlement calculation 
at the opening on settlement days, which will provide additional 
liquidity and enhance competition in those securities, which ultimately 
benefits all CBOE Trading Permit Holders (``TPHs'') and all investors.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule changes will 
impose any burden on competition that are not necessary or appropriate 
in furtherance of the purposes of the Act. The Exchange does not 
believe that the proposed rule change will impose any burden on 
intramarket competition because the proposed waiver would apply equally 
to all CBOE TPHs who trade those SPXW options that are used in 
determining the final settlement value on the final settlement date of 
the

[[Page 53219]]

new VIX weekly options and futures. Additionally, the Exchange believes 
the proposed rule change will continue to encourage the trading of SPXW 
options that have the expiration that contribute to the now VIX weekly 
settlement calculation at the opening on settlement days, which will 
provide additional liquidity and enhance competition in those 
securities. The Exchange does not believe that the proposed rule 
changes will impose any burden on intermarket competition that is not 
necessary or appropriate in furtherance of the purposes of the Act 
because the proposed rule change applies only to CBOE. To the extent 
that the proposed changes make CBOE a more attractive marketplace for 
market participants at other exchanges, such market participants are 
welcome to become CBOE market participants.

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \7\ and paragraph (f) of Rule 19b-4 \8\ 
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.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-CBOE-2015-074 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-2015-074. 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 (http://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-2015-074 and should be 
submitted on or before September 23, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-21671 Filed 9-1-15; 8:45 am]
 BILLING CODE 8011-01-P