Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Correct Rule 3.6A, 67031-67033 [2016-23493]

Download as PDF 67031 mstockstill on DSK3G9T082PROD with NOTICES Federal Register / Vol. 81, No. 189 / Thursday, September 29, 2016 / Notices III. Discussion and Commission Findings After careful review of the proposal, as modified by Amendment Nos. 1 and No. 2, the Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.24 In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act,25 which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating 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. Under amended Exchange Rule 49, the Exchange would maintain its own Disaster Recovery Facility to continue Exchange operations when necessary without substantial disruption to member organizations. This Disaster Recovery Facility would allow the Exchange to no longer designate NYSE Arca as its backup facility but instead operate as a fully electronic exchange on its own facilities, under its own trading rules, with its own order book and with quotes and trades publicly reported under the Exchange’s own reporting symbol. The proposed rule change would also require member organizations to participate in scheduled functional and performance testing of the Exchange’s business continuity and disaster recovery plans in the manner and frequency specified by the Exchange, which shall not be less than once every 12 months.26 Under the proposal, the Exchange CEO would be authorized to make a determination for the Exchange to trade securities on the Disaster Recovery Facility only when the CEO deems such action to be necessary or appropriate for the maintenance of a fair and orderly market, or for the protection of investors or otherwise in the public interest, due to extraordinary circumstances. The Exchange CEO must notify the Exchange board of directors as soon as feasible if deemed necessary or appropriate for the maintenance of a fair and orderly market, or the protection of investors of otherwise in the public interest, due to extraordinary circumstances. 24 In approving these proposed rule changes, the Commission has considered the proposed rules’ VerDate Sep<11>2014 18:51 Sep 28, 2016 Jkt 238001 the CEO makes a determination to use the Disaster Recovery Facility. The Commission believes that the proposal is reasonably designed to permit the Exchange to continue to operate in the event of an emergency by using a secondary data center located in a geographically diverse location to open, trade, and close Exchange-listed securities. Accordingly, the Commission believes that the proposal is designed to remove impediments to and perfect the mechanism of a free and open market and a national market system, and to protect investors and the public interest, and the Commission therefore finds that the proposed rule change is consistent with the requirements of the Act. IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,27 that the proposed rule change (SR–NYSE–2016– 48), as modified by Amendments No. 1 and Partial Amendment No. 2, be, and hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.28 Brent J. Fields, Secretary. [FR Doc. 2016–23494 Filed 9–28–16; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–78915; File No. SR–CBOE– 2016–067] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Correct Rule 3.6A September 23, 2016. 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 September 9, 2016, Chicago Board Options Exchange, Incorporated (the ‘‘Exchange’’ or ‘‘CBOE’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 25 15 U.S.C. 78f(b)(5). 26 See Proposed Exchange Rule 49(b)(N). 27 15 U.S.C. 78s(b)(2). 28 17 CFR 200.30–3(a)(12). PO 00000 Frm 00113 Fmt 4703 Sfmt 4703 pursuant to Section 19(b)(3)(A)(iii) of the Act 3 and Rule 19b–4(f)(6) thereunder.4 The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange seeks to correct a typographical error in Rule 3.6A.08 related to the Qualification and Registration of Trading Permit Holders and Associated Persons. The text of the proposed rule change is provided below. (additions are underlined; deletions are [bracketed]) * * * * * Chicago Board Options Exchange, Incorporated Rules * * * * * Rule 3.6A. Qualification and Registration of Trading Permit Holders and Associated Persons (a)–(e) No change. . . . Interpretations and Policies: .01–.07 No change. .08 (a) An individual Trading Permit Holder or individual associated person who: (1) is engaged in proprietary trading, market-making and/or effecting transactions on behalf of a broker-dealer is required to register and qualify as a Securities Trader (TD) in WebCRD; (2) (i) supervises or monitors proprietary trading, market-making and/or brokerage activities for broker-dealers; (ii) supervises or trains those engaged in proprietary trading, market-making and/or effecting transactions on behalf of a broker-dealer, with respect to those activities; and/or (iii) is an officer, partner or director of a Trading Permit Holder or TPH organization is required to register and qualify as a Securities Trader Principal (TP) in WebCRD and satisfy the prerequisite registration and qualification requirements; and (3) is a Chief Compliance Officer (or performs similar functions) for a Trading Permit Holder or TPH organization that engages in proprietary trading, marketmaking or effecting transactions on behalf of a broker-dealer is required to register and qualify as a Securities Trader Compliance Officer (CT) in WebCRD and satisfy the prerequisite registration and qualification requirements. (b) The following sets forth the qualification requirements for each of the required registration categories described in paragraph (a) to Interpretation and Policy .08: 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(iii). 4 17 CFR 240.19b–4(f)(6). 2 17 E:\FR\FM\29SEN1.SGM 29SEN1 67032 Federal Register / Vol. 81, No. 189 / Thursday, September 29, 2016 / Notices Category of registration Qualification examination(s) Securities Trader (TD) ................................... Securities Trader Principal (TP) ** ................ Series 57. Series 24 ................... Securities Trader Compliance Officer (CT) ... Series 14 ................... Alternative acceptable qualifications General Securities Sales Supervisor Registration and General Securities Principal—Sales Supervisor Module Registration (Series 9/10 and Series 23) * General Securities Principal Registration (GP) or Securities Trader Principal (TP) (Series 24) * Because the Series 23 is not available in WebCRD, each applicant must provide documentation of a valid Series 23 license to the Registration Services Department upon request for the Series 24 registration in WebCRD. ** Securities Trader Principals’ (TP) supervisory authority is limited to supervision of the securities trading functions of TPHs, as described in paragraph (a)(2)[(i)] of Interpretation and Policy .08 to Rule 3.6A, and supervision of officers, partners, and directors of a TPH or TPH organization. .09 No change. * * * * * The text of the proposed rule change is also available on the Exchange’s website (http://www.cboe.com/About CBOE/CBOELegalRegulatory Home.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. mstockstill on DSK3G9T082PROD with NOTICES A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to correct an inadvertent typographical error in Rule 3.6A.08. The Exchange proposes to make the change so the text properly reflects the intention and practice of Rule 3.6A.08. The typographical error is explained below. On October 9, 2015, the Exchange filed a rule change to replace the Proprietary Trader (PT) registration category and qualification examination (Series 56) with the Securities Trader (TD) registration category and qualification examination (Series 57). As part of that filing, an inadvertent typographical error was made in the sentence that begins with the two asterisks (**) in Interpretation and Policy .08(b). That sentence incorrectly refers to paragraph (a)(2)(i) in Interpretation and Policy .08. The VerDate Sep<11>2014 18:51 Sep 28, 2016 Jkt 238001 intention was to reference paragraph (a)(2) in its entirety, not just paragraph (a)(2)(i), as the purpose of the reference is to describe the various types of supervisory authority an individual may have that requires the individual to register and qualify as a Securities Trader Principal (TP). The Exchange is now proposing to amend this error to accurately describe the intention and practice of the rule. 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the Act and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.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 foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 7 requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers. In particular, the proposed rule change is consistent with these provisions because it will more accurately describe the intention and practice of the Exchange with respect to registration requirements of Trading Permit Holders. The Exchange believes that having accurate and clear rules is in the best interests of investors and the 5 15 6 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). Frm 00114 B. Self-Regulatory Organization’s Statement on Burden on Competition CBOE does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change is attempting to correct a typographical error and does not impact the Exchange’s existing operations or rules related to registration requirements. The proposed rule change has no impact 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 written 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 8 and Rule 19b–4(f)(6) 9 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 8 15 7 Id. PO 00000 general public. The proposed rule change is correcting an inadvertent typographical error. 9 17 Fmt 4703 Sfmt 4703 E:\FR\FM\29SEN1.SGM U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 29SEN1 Federal Register / Vol. 81, No. 189 / Thursday, September 29, 2016 / Notices Commission will institute proceedings to determine whether the proposed rule change should be approved or disapproved. IV. Solicitation of Comments For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.10 Brent J. Fields, Secretary. [FR Doc. 2016–23493 Filed 9–28–16; 8:45 am] 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: BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–78918; File No. SR– NASDAQ–2016–104] 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–2016–067 on the subject line. Paper Comments Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order Granting Approval of a Proposed Rule Change To Amend Nasdaq Rule 5735 To Adopt Generic Listing Standards for Managed Fund Shares September 23, 2016. I. Introduction mstockstill on DSK3G9T082PROD with NOTICES • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. On August 16, 2016, The NASDAQ Stock Market LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section All submissions should refer to File 19(b)(1) of the Securities Exchange Act Number SR–CBOE–2016–067. This file of 1934 (‘‘Act’’ or ‘‘Exchange Act’’) 1 and number should be included on the 2 subject line if e-mail is used. To help the Rule 19b–4 thereunder, a proposed rule change to amend Nasdaq Rule 5735 to, Commission process and review your among other things, adopt generic comments more efficiently, please use only one method. The Commission will listing standards for Managed Fund post all comments on the Commission’s Shares. The proposed rule change was published for comment in the Federal Internet website (http://www.sec.gov/ Register on August 24, 2016.3 The rules/sro.shtml). Copies of the Commission has received no comments submission, all subsequent on the proposed rule change. This order amendments, all written statements grants approval of the proposed rule with respect to the proposed rule change. change that are filed with the Commission, and all written II. Description of the Proposal communications relating to the Nasdaq Rule 5735 governs the listing proposed rule change between the Commission and any person, other than and trading of Managed Fund Shares on the Exchange. Managed Fund Shares are those that may be withheld from the issued by actively managed exchangepublic in accordance with the traded funds (‘‘ETFs’’) that do not seek provisions of 5 U.S.C. 552, will be to replicate the performance of a available for website viewing and specified index of securities. printing in the Commission’s Public Under its current rules, the Exchange Reference Room, 100 F Street NE., must file separate proposals under Washington, DC 20549 on official Section 19(b) of the Act before listing a business days between the hours of new series of Managed Fund Shares.4 10:00 a.m. and 3:00 p.m. Copies of the The Exchange proposes to adopt filing also will be available for ‘‘generic’’ listing standards so that the inspection and copying at the principal Exchange may list Managed Fund office of the Exchange. All comments received will be posted without change; Shares that satisfy the applicable criteria by submitting notice pursuant to Rule the Commission does not edit personal 19b–4(e) under the Act, rather than by identifying information from submissions. You should submit only 10 17 CFR 200.30–3(a)(12). information that you wish to make 1 15 U.S.C. 78s(b)(1). available publicly. All submissions 2 17 CFR 240.19b–4. should refer to File Number SR–CBOE– 3 See Securities Exchange Act Release No. 78616 2016–067 and should be submitted on (Aug. 18, 2016), 81 FR 57968 (‘‘Notice’’). or before October 20, 2016. 4 See Nasdaq Rule 5735(b)(1). VerDate Sep<11>2014 18:51 Sep 28, 2016 Jkt 238001 PO 00000 Frm 00115 Fmt 4703 Sfmt 4703 67033 filing a proposed rule change under Section 19(b) of the Act.5 A. Description of the Generic Listing Standards The Exchange’s listing standards establish requirements for the various types of assets that may be held in the portfolio of a generically listed, actively managed ETF (‘‘Portfolio’’). 1. Equity Portfolio Components Nasdaq Rule 5735(b)(1)(A) establishes the criteria applicable to the equity securities included in a Portfolio. Equity securities include the following securities: U.S. Component Stocks, which are defined in Nasdaq Rule 5705; Non-U.S. Component Stocks, which are defined in Nasdaq Rule 5705; Exchange Traded Derivative Securities, which are defined in Nasdaq Rule 5735(c)(6); 6 Linked Securities, which are defined in Nasdaq Rule 5710, and each of the equivalent security types listed on another national securities exchange. Additionally, Nasdaq Rule 5735(b)(1)(A) provides that no more than 25% of the equity weight of the Portfolio can include leveraged or inverse-leveraged Exchange Traded Derivative Securities or Linked Securities and that, to the extent a Portfolio includes convertible securities, the equity securities into which such securities are converted must meet the criteria of Nasdaq Rule 5735(b)(1)(A) after converting. Nasdaq Rule 5735(b)(1)(A)(i) would require that U.S. Component Stocks (except as mentioned below) meet the following criteria initially and on a continuing basis: (1) Component stocks (excluding Exchange Traded Derivative Securities and Linked Securities) that in the aggregate account for at least 90% of the equity weight of the Portfolio (excluding Exchange Traded Derivative Securities and Linked Securities) each shall have a minimum market value of at least $75 million; 5 See 17 CFR 240.19b–4(e). Rule 19b–4(e) permits self-regulatory organizations (‘‘SROs’’) to list and trade new derivative securities products that comply with existing SRO trading rules, procedures, surveillance programs, and listing standards, without submitting a proposed rule change under Section 19(b). See Securities Exchange Act Release No. 40761 (Dec. 8, 1998), 63 FR 70952 (Dec. 22, 1998). 6 Nasdaq Rule 5735(c)(6) defines ‘‘Exchange Traded Derivative Securities’’ as: ‘‘the securities described in Nasdaq Rules 5705(a) (Portfolio Depository Receipts); 5705(b) (Index Fund Shares); 5720 (Trust Issued Receipts); 5711(d) (CommodityBased Trust Shares); 5711(e) (Currency Trust Shares); 5711(f) (Commodity Index Trust Shares); 5711(g) (Commodity Futures Trust Shares); 5711(h) (Partnership Units); 5711(i) (Trust Units); 5735 (Managed Fund Shares); and 5711(j) (Managed Trust Securities).’’ E:\FR\FM\29SEN1.SGM 29SEN1

Agencies

[Federal Register Volume 81, Number 189 (Thursday, September 29, 2016)]
[Notices]
[Pages 67031-67033]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-23493]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78915; File No. SR-CBOE-2016-067]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Correct Rule 3.6A

September 23, 2016.
    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 September 9, 2016, Chicago Board Options Exchange, Incorporated 
(the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange 
Commission (the ``Commission'') the proposed rule change as described 
in Items I, II, and III below, which Items have been prepared by the 
Exchange. The Exchange filed the proposal as a ``non-controversial'' 
proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
\3\ and Rule 19b-4(f)(6) thereunder.\4\ The Commission is publishing 
this notice to solicit comments on the proposed rule change from 
interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange seeks to correct a typographical error in Rule 3.6A.08 
related to the Qualification and Registration of Trading Permit Holders 
and Associated Persons. The text of the proposed rule change is 
provided below.
    (additions are underlined; deletions are [bracketed])
* * * * *

Chicago Board Options Exchange, Incorporated Rules

* * * * *
    Rule 3.6A. Qualification and Registration of Trading Permit 
Holders and Associated Persons
    (a)-(e) No change.
    . . . Interpretations and Policies:
    .01-.07 No change.
    .08 (a) An individual Trading Permit Holder or individual 
associated person who:
    (1) is engaged in proprietary trading, market-making and/or 
effecting transactions on behalf of a broker-dealer is required to 
register and qualify as a Securities Trader (TD) in WebCRD;
    (2) (i) supervises or monitors proprietary trading, market-
making and/or brokerage activities for broker-dealers; (ii) 
supervises or trains those engaged in proprietary trading, market-
making and/or effecting transactions on behalf of a broker-dealer, 
with respect to those activities; and/or (iii) is an officer, 
partner or director of a Trading Permit Holder or TPH organization 
is required to register and qualify as a Securities Trader Principal 
(TP) in WebCRD and satisfy the prerequisite registration and 
qualification requirements; and
    (3) is a Chief Compliance Officer (or performs similar 
functions) for a Trading Permit Holder or TPH organization that 
engages in proprietary trading, market-making or effecting 
transactions on behalf of a broker-dealer is required to register 
and qualify as a Securities Trader Compliance Officer (CT) in WebCRD 
and satisfy the prerequisite registration and qualification 
requirements.
    (b) The following sets forth the qualification requirements for 
each of the required registration categories described in paragraph 
(a) to Interpretation and Policy .08:

[[Page 67032]]



------------------------------------------------------------------------
                                                        Alternative
   Category of registration       Qualification          acceptable
                                  examination(s)       qualifications
------------------------------------------------------------------------
Securities Trader (TD)........  Series 57........
Securities Trader Principal     Series 24........  General Securities
 (TP) **.                                           Sales Supervisor
                                                    Registration and
                                                    General Securities
                                                    Principal--Sales
                                                    Supervisor Module
                                                    Registration (Series
                                                    9/10 and Series 23)
                                                    *
Securities Trader Compliance    Series 14........  General Securities
 Officer (CT).                                      Principal
                                                    Registration (GP) or
                                                    Securities Trader
                                                    Principal (TP)
                                                    (Series 24)
------------------------------------------------------------------------
* Because the Series 23 is not available in WebCRD, each applicant must
  provide documentation of a valid Series 23 license to the Registration
  Services Department upon request for the Series 24 registration in
  WebCRD.
** Securities Trader Principals' (TP) supervisory authority is limited
  to supervision of the securities trading functions of TPHs, as
  described in paragraph (a)(2)[(i)] of Interpretation and Policy .08 to
  Rule 3.6A, and supervision of officers, partners, and directors of a
  TPH or TPH organization.

    .09 No change.
* * * * *

    The text of the proposed rule change is also available on the 
Exchange's website (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 correct an inadvertent typographical error 
in Rule 3.6A.08. The Exchange proposes to make the change so the text 
properly reflects the intention and practice of Rule 3.6A.08. The 
typographical error is explained below.
    On October 9, 2015, the Exchange filed a rule change to replace the 
Proprietary Trader (PT) registration category and qualification 
examination (Series 56) with the Securities Trader (TD) registration 
category and qualification examination (Series 57). As part of that 
filing, an inadvertent typographical error was made in the sentence 
that begins with the two asterisks (**) in Interpretation and Policy 
.08(b). That sentence incorrectly refers to paragraph (a)(2)(i) in 
Interpretation and Policy .08. The intention was to reference paragraph 
(a)(2) in its entirety, not just paragraph (a)(2)(i), as the purpose of 
the reference is to describe the various types of supervisory authority 
an individual may have that requires the individual to register and 
qualify as a Securities Trader Principal (TP). The Exchange is now 
proposing to amend this error to accurately describe the intention and 
practice of the rule.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Act and the rules and regulations thereunder applicable to the 
Exchange and, in particular, the requirements of Section 6(b) of the 
Act.\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 foster 
cooperation and coordination with persons engaged in regulating, 
clearing, settling, processing information with respect to, and 
facilitating transactions in securities, to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, and, in general, to protect investors and the public interest. 
Additionally, the Exchange believes the proposed rule change is 
consistent with the Section 6(b)(5) \7 \requirement that the rules of 
an exchange not be designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
    \7\ Id.
---------------------------------------------------------------------------

    In particular, the proposed rule change is consistent with these 
provisions because it will more accurately describe the intention and 
practice of the Exchange with respect to registration requirements of 
Trading Permit Holders. The Exchange believes that having accurate and 
clear rules is in the best interests of investors and the general 
public. The proposed rule change is correcting an inadvertent 
typographical error.

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

    CBOE does not believe that the proposed rule change will impose any 
burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act. The proposed rule change is 
attempting to correct a typographical error and does not impact the 
Exchange's existing operations or rules related to registration 
requirements. The proposed rule change has no impact 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 written 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 \8\ and 
Rule 19b-4(f)(6) \9\ 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

[[Page 67033]]

Commission will institute proceedings to determine whether the proposed 
rule change should be approved or disapproved.
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

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-2016-067 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-2016-067. This file 
number should be included on the subject line if e-mail 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 website (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 website 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-2016-067 and should be 
submitted on or before October 20, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-23493 Filed 9-28-16; 8:45 am]
 BILLING CODE 8011-01-P