Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to End of Week/End of Month Expirations Pilot Program, 63598-63600 [2015-26520]
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Federal Register / Vol. 80, No. 202 / Tuesday, October 20, 2015 / Notices
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 MSRB. 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–MSRB–
2015–11 and should be submitted on or
before November 10, 2015.
For the Commission, pursuant to delegated
authority.25
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–26516 Filed 10–19–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–76149; File No. SR–CBOE–
2015–085]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change to End of Week/End of
Month Expirations Pilot Program
mstockstill on DSK4VPTVN1PROD with NOTICES
October 14, 2015.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that, on October
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, 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.
25 17
CFR 200.30–3(a)(12).
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 24.9(e)
(End of Week/End of Month Expirations
Pilot Program (‘‘Program’’)) by clarifying
the maximum numbers of expirations
permitted to be listed under the Program
and by deleting outdated text from Rule
24.9(e). The Exchange is not proposing
to change the substantive content of
Rule 24.9(e).
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.
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
On September 14, 2010, the
Commission approved CBOE’s proposal
to establish a pilot program under
which CBOE is permitted to list P.M.settled options on broad-based indexes
to expire on (a) any Friday of the month,
other than the third Friday-of-themonth, and (b) the last trading day of
the month.5 The terms of the Program
are set forth in Rule 24.9(e) and End of
Week Expirations (‘‘EOWs’’) and End of
Month Expirations (‘‘EOMs’’) are
permitted on any broad-based index that
is eligible for standard options trading.
EOWs and EOMs are cash-settled
expirations with European-style
exercise, and are subject to the same
rules that govern the trading of standard
index options.
Maximum Numbers of Expirations
Permitted Under Program
This current filing proposes to amend
Rule 24.9(e) by clarifying the maximum
1 15
VerDate Sep<11>2014
17:55 Oct 19, 2015
5 See Securities Exchange Act Release No. 62911
(September 14, 2010), 75 FR 57539 (September 21,
2010) (order approving SR–CBOE–2009–075).
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Sfmt 4703
numbers of expirations permitted to be
listed under the Program. In support of
this change, CBOE states that EOWs and
EOMs are subject to the same rules
governing standard options on the same
broad-based index class. In the filing to
establish the Program, CBOE provided
example expirations for EOWs and
EOMs and cited to Rule 24.9(a)(2) as the
specific rule governing the expiration
months that may be listed for index
options.6 Because Rule 24.9(a)(2) is
phrased in terms of ‘‘standard monthly
expirations’’ (vs. the more general term
‘‘expirations’’), CBOE believes that some
ambiguity may exist as to the maximum
numbers of EOWs and EOMs that may
be listed under the Program. In addition,
CBOE believes that providing for the
maximum numbers of expirations
permitted under the Program within
Rule 24.9(e) would make that Program
clearer on its face by eliminating any
potential ambiguity about the maximum
numbers of expirations permitted under
the Program. As a result, CBOE proposes
to amend the Program as follows.
Respecting EOWs, CBOE proposes to
amend Rule 24.9(e)(1) by adding the
following rule text:
The maximum numbers of expirations that
may be listed for EOWs is the same as the
maximum numbers of expirations permitted
in Rule 24.9(a)(2) for standard options on the
same broad-based index. EOW expirations
shall be for the nearest Friday expirations
from the actual listing date, other than the
third Friday-of-the-month or that coincide
with an EOM expiration. If the last trading
day of a month is a Friday, the Exchange will
list an EOM and not an EOW. Other
expirations in the same class are not counted
as part of the maximum numbers of EOW
expirations for a broad-based index class.
In support of this change, CBOE states
that under Rule 24.9(a)(2), the
maximum numbers of expirations varies
depending on the type of class or by
specific class. Therefore, the maximum
number of expirations permitted for
EOWs on a given class would be
determined based on the specific broadbased index option class. For example,
if the broad-based index option class is
used to calculate a volatility index, the
maximum number of EOWs permitted
in that class would be 12 expirations (as
is permitted in Rule 24.9(a)(2)). For
EOWs, CBOE proposes to require that
the expirations be for weeks that are in
the nearest Friday from the actual listing
date, other than the third Friday-of-themonth or that coincide with an EOM
expiration. CBOE proposes to set forth
the listing hierarchy described in the
original Program filing, which provides
that if the last trading day of a month
6 Id.,
at note 5.
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Federal Register / Vol. 80, No. 202 / Tuesday, October 20, 2015 / Notices
is a Friday, the Exchange would list an
EOM and not an EOW.7 Finally, CBOE
proposes to clarify that other expirations
in the same class would not be counted
as part of the maximum numbers of
EOW expirations for a broad-based
index class. CBOE states that this
provision is similar to one recently
adopted in connection with weekly
CBOE Volatility Index (‘‘VIX’’)
expirations, in that standard VIX
expirations are not counted toward the
maximum number of expirations
permitted for weekly expiration in VIX
options.8
Respecting EOMs, CBOE proposes to
amend Rule 24.9(e)(2) by adding the
following rule text:
mstockstill on DSK4VPTVN1PROD with NOTICES
The maximum numbers of expirations that
may be listed for EOMs is the same as the
maximum numbers of expirations permitted
in Rule 24.9(a)(2) for standard options on the
same broad-based index. EOM expirations
shall be for the nearest end of month
expirations from the actual listing date. Other
expirations in the same class are not counted
as part of the maximum numbers of EOM
expirations for a broad-based index class.
In support of this change, CBOE states
that under Rule 24.9(a)(2), the
maximum numbers of expirations varies
depending on the type of class or by
specific class. Therefore, the maximum
number of expirations permitted for
EOMs on a given class would be
determined based on the specific broadbased index option class. For example,
if the broad-based index option class is
used to calculate a volatility index, the
maximum number of EOMs permitted
in that class would be 12 expirations (as
is permitted in Rule 24.9(a)(2)). For
EOMs, CBOE proposes to require that
the expirations be for the nearest end of
month expirations from the actual
listing date. Finally, CBOE proposes to
clarify that other expirations in the same
class would not be counted as part of
the maximum numbers of EOM
expirations for a broad-based index
class. CBOE states that this provision is
similar to one recently adopted in
connection with weekly VIX
expirations, in that standard VIX
expirations are not counted toward the
maximum number of expirations
permitted for weekly expiration in VIX
options.9
The above described changes hard
code into CBOE’s rule its existing listing
practice as to the maximum numbers of
expirations permitted under the
Program. Currently, the maximum
numbers of expirations are not
populated for EOWs and EOMs;
at note 5.
fourth bullet under Rule 24.9(a)(2).
9 See fourth bullet under Rule 24.9(a)(2).
however, the same is true for standard
expirations in certain broad-based index
option classes. As a result, CBOE
believes that setting forth the maximum
potential of a rule is non-controversial
and is consistent with how CBOE has
treated EOWs and EOMs under the
Program since its adoption in 2010. In
any event, CBOE has analyzed its
capacity and represents that it believes
the Exchange and the Options Price
Reporting Authority (‘‘OPRA’’) have the
necessary systems capacity to handle
any additional traffic associated with
the listing the maximum numbers of
expirations permitted under the
Program.
Remove Outdate [sic] Rule Text
The Exchange proposes to make nonsubstantive changes to Rule 24.9(e) by
deleting rule text that references items
with dates in 2011 and 2015 that have
passed. The Exchange represents that
this rule text language is obsolete. Also,
the Exchange is proposing to replace
references to ‘‘regular options’’ with
‘‘standard options’’ to conform
references to third-Friday expiring
options (standard) between Rule 24.9(a)
(which uses ‘‘standard’’ when referring
to third-Friday expiring options) and
Rule 24.9(e).
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the Act
and the rules and regulations
thereunder, including the requirements
of Section 6(b) of the Act.10 In
particular, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 11 requirements that
the rules of an exchange be designed to
promote just and equitable principles of
trade, to prevent fraudulent and
manipulative acts, to foster cooperation
and coordination with persons engaged
in facilitating transactions in securities,
to remove impediments to and to perfect
the mechanism for 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 some ambiguity may exist as to the
maximum numbers of EOWs and EOMs
that may be listed under the Program.
Setting forth the numbers of expirations
permitted under the Program would
benefit market participants by making
that Program clearer on its face by
eliminating any potential ambiguity
about the maximum numbers of
expirations permitted under the
Program. The Exchange also believes
that the current proposal is designed to
promote just and equitable principles of
trade because it would hard code into
CBOE’s rule its existing listing practice
as to the maximum numbers of
expirations permitted under the
Program.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
This proposed rule change does not
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
Specifically, CBOE believes that
providing clarification about the
numbers of expirations permitted under
the Program would benefit all market
participants who trade expirations listed
under the Program and does not impose
any burden on competition.
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.
7 Id.,
8 See
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17:55 Oct 19, 2015
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11 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00102
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12 15
13 17
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63599
E:\FR\FM\20OCN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
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63600
Federal Register / Vol. 80, No. 202 / Tuesday, October 20, 2015 / Notices
Comments may be submitted by any of
the following methods:
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
[SEC File No. 270–263; OMB Control No.
3235–0275]
• 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–2015–085 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.
mstockstill on DSK4VPTVN1PROD with NOTICES
All submissions should refer to File
Number SR–CBOE–2015–085. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–CBOE–
2015–085 and should be submitted on
or before November 10, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–26520 Filed 10–19–15; 8:45 am]
BILLING CODE 8011–01–P
14 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
17:55 Oct 19, 2015
Jkt 238001
Submission for OMB Review;
Comment Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE., Washington, DC
20549–2736.
Extension:
Rule 17Ad–13.
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.) (‘‘PRA’’), the
Securities and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for approval of
extension of the previously approved
collection of information provided for in
Rule 17Ad–13 (17 CFR 240.17Ad–13),
under the Securities Exchange Act of
1934 (15 U.S.C. 78a et seq.).
Rule 17Ad–13 requires an annual
study and evaluation of internal
accounting controls under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et
seq.). It requires approximately 100
registered transfer agents to obtain an
annual report on the adequacy of their
internal accounting controls from an
independent accountant. In addition,
transfer agents must maintain copies of
any reports prepared pursuant to Rule
17Ad–13 plus any documents prepared
to notify the Commission and
appropriate regulatory agencies in the
event that the transfer agent is required
to take any corrective action. These
recordkeeping requirements assist the
Commission and other regulatory
agencies with monitoring transfer agents
and ensuring compliance with the rule.
Small transfer agents are exempt from
Rule 17Ad–13 as are transfer agents that
service only their own companies’
securities.
Approximately 100 independent,
professional transfer agents must file the
independent accountant’s report
annually. We estimate that the annual
internal time burden for each transfer
agent to comply with Rule 17Ad–13 by
submitting the report prepared by the
independent accountant to the
Commission is minimal. The time
required for the independent accountant
to prepare the accountant’s report varies
with each transfer agent depending on
the size and nature of the transfer
agent’s operations. The Commission
estimates that, on average, each report
can be completed by the independent
accountant in 120 hours, resulting in a
PO 00000
Frm 00103
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total of 12,000 external hours annually
(120 hours × 100 reports). The burden
was estimated using Commission review
of filed Rule 17Ad–13 reports. The
Commission estimates that, on average,
120 hours are needed to perform the
study, prepare the report, and retain the
required records on an annual basis.
Assuming an average hourly rate of an
independent accountant of $60, the
average total annual cost of the report is
$7,200. The total annual cost for the
approximate 100 respondents is
approximately $720,000.
The retention period for the
recordkeeping requirement under Rule
17Ad–13 is three years following the
date of a report prepared pursuant to the
rule. The recordkeeping requirement
under Rule 17Ad–13 is mandatory to
assist the Commission and other
regulatory agencies with monitoring
transfer agents and ensuring compliance
with the rule. This rule does not involve
the collection of confidential
information.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
The public may view background
documentation for this information
collection at the following Web site,
https://www.reginfo.gov. Comments
should be directed to: (i) Desk Officer
for the Securities and Exchange
Commission, Office of Information and
Regulatory Affairs, Office of
Management and Budget, Room 10102,
New Executive Office Building,
Washington, DC 20503 or by sending an
email to: shagufta_ahmed@
omb.eop.gov; and (ii) Pamela Dyson,
Director/Chief Information Officer,
Securities and Exchange Commission,
c/o Remi Pavlik-Simon, 100 F Street
NE., Washington, DC 20549, or by
sending an email to PRA_Mailbox@
sec.gov. Comments must be submitted
within 30 days of this notice.
Dated: October 13, 2015.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–26519 Filed 10–19–15; 8:45 am]
BILLING CODE 8011–01–P
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]]>Agencies
[Federal Register Volume 80, Number 202 (Tuesday, October 20, 2015)]
[Notices]
[Pages 63598-63600]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-26520]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-76149; File No. SR-CBOE-2015-085]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change to End of Week/End of Month Expirations Pilot Program
October 14, 2015.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on October 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, 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 24.9(e) (End of Week/End of Month
Expirations Pilot Program (``Program'')) by clarifying the maximum
numbers of expirations permitted to be listed under the Program and by
deleting outdated text from Rule 24.9(e). The Exchange is not proposing
to change the substantive content of Rule 24.9(e).
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.
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
On September 14, 2010, the Commission approved CBOE's proposal to
establish a pilot program under which CBOE is permitted to list P.M.-
settled options on broad-based indexes to expire on (a) any Friday of
the month, other than the third Friday-of-the-month, and (b) the last
trading day of the month.\5\ The terms of the Program are set forth in
Rule 24.9(e) and End of Week Expirations (``EOWs'') and End of Month
Expirations (``EOMs'') are permitted on any broad-based index that is
eligible for standard options trading. EOWs and EOMs are cash-settled
expirations with European-style exercise, and are subject to the same
rules that govern the trading of standard index options.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 62911 (September 14,
2010), 75 FR 57539 (September 21, 2010) (order approving SR-CBOE-
2009-075).
---------------------------------------------------------------------------
Maximum Numbers of Expirations Permitted Under Program
This current filing proposes to amend Rule 24.9(e) by clarifying
the maximum numbers of expirations permitted to be listed under the
Program. In support of this change, CBOE states that EOWs and EOMs are
subject to the same rules governing standard options on the same broad-
based index class. In the filing to establish the Program, CBOE
provided example expirations for EOWs and EOMs and cited to Rule
24.9(a)(2) as the specific rule governing the expiration months that
may be listed for index options.\6\ Because Rule 24.9(a)(2) is phrased
in terms of ``standard monthly expirations'' (vs. the more general term
``expirations''), CBOE believes that some ambiguity may exist as to the
maximum numbers of EOWs and EOMs that may be listed under the Program.
In addition, CBOE believes that providing for the maximum numbers of
expirations permitted under the Program within Rule 24.9(e) would make
that Program clearer on its face by eliminating any potential ambiguity
about the maximum numbers of expirations permitted under the Program.
As a result, CBOE proposes to amend the Program as follows.
---------------------------------------------------------------------------
\6\ Id., at note 5.
---------------------------------------------------------------------------
Respecting EOWs, CBOE proposes to amend Rule 24.9(e)(1) by adding
the following rule text:
The maximum numbers of expirations that may be listed for EOWs
is the same as the maximum numbers of expirations permitted in Rule
24.9(a)(2) for standard options on the same broad-based index. EOW
expirations shall be for the nearest Friday expirations from the
actual listing date, other than the third Friday-of-the-month or
that coincide with an EOM expiration. If the last trading day of a
month is a Friday, the Exchange will list an EOM and not an EOW.
Other expirations in the same class are not counted as part of the
maximum numbers of EOW expirations for a broad-based index class.
In support of this change, CBOE states that under Rule 24.9(a)(2),
the maximum numbers of expirations varies depending on the type of
class or by specific class. Therefore, the maximum number of
expirations permitted for EOWs on a given class would be determined
based on the specific broad-based index option class. For example, if
the broad-based index option class is used to calculate a volatility
index, the maximum number of EOWs permitted in that class would be 12
expirations (as is permitted in Rule 24.9(a)(2)). For EOWs, CBOE
proposes to require that the expirations be for weeks that are in the
nearest Friday from the actual listing date, other than the third
Friday-of-the-month or that coincide with an EOM expiration. CBOE
proposes to set forth the listing hierarchy described in the original
Program filing, which provides that if the last trading day of a month
[[Page 63599]]
is a Friday, the Exchange would list an EOM and not an EOW.\7\ Finally,
CBOE proposes to clarify that other expirations in the same class would
not be counted as part of the maximum numbers of EOW expirations for a
broad-based index class. CBOE states that this provision is similar to
one recently adopted in connection with weekly CBOE Volatility Index
(``VIX'') expirations, in that standard VIX expirations are not counted
toward the maximum number of expirations permitted for weekly
expiration in VIX options.\8\
---------------------------------------------------------------------------
\7\ Id., at note 5.
\8\ See fourth bullet under Rule 24.9(a)(2).
---------------------------------------------------------------------------
Respecting EOMs, CBOE proposes to amend Rule 24.9(e)(2) by adding
the following rule text:
The maximum numbers of expirations that may be listed for EOMs
is the same as the maximum numbers of expirations permitted in Rule
24.9(a)(2) for standard options on the same broad-based index. EOM
expirations shall be for the nearest end of month expirations from
the actual listing date. Other expirations in the same class are not
counted as part of the maximum numbers of EOM expirations for a
broad-based index class.
In support of this change, CBOE states that under Rule 24.9(a)(2),
the maximum numbers of expirations varies depending on the type of
class or by specific class. Therefore, the maximum number of
expirations permitted for EOMs on a given class would be determined
based on the specific broad-based index option class. For example, if
the broad-based index option class is used to calculate a volatility
index, the maximum number of EOMs permitted in that class would be 12
expirations (as is permitted in Rule 24.9(a)(2)). For EOMs, CBOE
proposes to require that the expirations be for the nearest end of
month expirations from the actual listing date. Finally, CBOE proposes
to clarify that other expirations in the same class would not be
counted as part of the maximum numbers of EOM expirations for a broad-
based index class. CBOE states that this provision is similar to one
recently adopted in connection with weekly VIX expirations, in that
standard VIX expirations are not counted toward the maximum number of
expirations permitted for weekly expiration in VIX options.\9\
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\9\ See fourth bullet under Rule 24.9(a)(2).
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The above described changes hard code into CBOE's rule its existing
listing practice as to the maximum numbers of expirations permitted
under the Program. Currently, the maximum numbers of expirations are
not populated for EOWs and EOMs; however, the same is true for standard
expirations in certain broad-based index option classes. As a result,
CBOE believes that setting forth the maximum potential of a rule is
non-controversial and is consistent with how CBOE has treated EOWs and
EOMs under the Program since its adoption in 2010. In any event, CBOE
has analyzed its capacity and represents that it believes the Exchange
and the Options Price Reporting Authority (``OPRA'') have the necessary
systems capacity to handle any additional traffic associated with the
listing the maximum numbers of expirations permitted under the Program.
Remove Outdate [sic] Rule Text
The Exchange proposes to make non-substantive changes to Rule
24.9(e) by deleting rule text that references items with dates in 2011
and 2015 that have passed. The Exchange represents that this rule text
language is obsolete. Also, the Exchange is proposing to replace
references to ``regular options'' with ``standard options'' to conform
references to third-Friday expiring options (standard) between Rule
24.9(a) (which uses ``standard'' when referring to third-Friday
expiring options) and Rule 24.9(e).
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder, including the
requirements of Section 6(b) of the Act.\10\ In particular, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \11\ requirements that the rules of an exchange be
designed to promote just and equitable principles of trade, to prevent
fraudulent and manipulative acts, to foster cooperation and
coordination with persons engaged in facilitating transactions in
securities, to remove impediments to and to perfect the mechanism for a
free and open market and a national market system, and, in general, to
protect investors and the public interest.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
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Specifically, the Exchange believes that some ambiguity may exist
as to the maximum numbers of EOWs and EOMs that may be listed under the
Program. Setting forth the numbers of expirations permitted under the
Program would benefit market participants by making that Program
clearer on its face by eliminating any potential ambiguity about the
maximum numbers of expirations permitted under the Program. The
Exchange also believes that the current proposal is designed to promote
just and equitable principles of trade because it would hard code into
CBOE's rule its existing listing practice as to the maximum numbers of
expirations permitted under the Program.
B. Self-Regulatory Organization's Statement on Burden on Competition
This proposed rule change does not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Act. Specifically, CBOE believes that providing clarification about
the numbers of expirations permitted under the Program would benefit
all market participants who trade expirations listed under the Program
and does not impose any burden on competition.
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.
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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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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.
[[Page 63600]]
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-2015-085 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-2015-085. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-CBOE-2015-085 and should be
submitted on or before November 10, 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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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-26520 Filed 10-19-15; 8:45 am]
BILLING CODE 8011-01-P
