Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Fees Schedule, 67408-67412 [2016-23609]
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67408
Federal Register / Vol. 81, No. 190 / Friday, September 30, 2016 / Notices
and by removing the CPDA option, the
proposed rule change, as modified by
Amendment No. 1, will establish a
process that will streamline Cover of
Protect transactions, allocations, and
recordkeeping for Participants. Further,
as DTC explains in the Notice, the
proposed rule change, as modified by
Amendment No. 1, will reduce for DTC
the risks, burdens, and costs associated
with its current processing of such
transactions. Therefore, adding the
CPAP option and removing the CPDA
option will promote the prompt and
accurate clearance and settlement of
securities, consistent with the
requirements of the Act, in particular
Section 17A(b)(3)(F), cited above.
As the proposed rule change pertains
to technical changes to the Procedures,
the Commission finds the technical
changes also consistent with Section
17A(b)(3)(F) of the Act 17 because
technical updates to the Procedures to
make them more clear, consistent, and
current for Participants that rely on the
Procedures support the prompt and
accurate clearance and settlement of
securities transactions.
III. Solicitation of Comments on
Amendment No. 1
Interested persons are invited to
submit written data, views, and
arguments concerning Amendment No.
1 to File Number SR–DTC–2016–005,
including whether Amendment No. 1 is
consistent with the Act. Comments may
be submitted by any of the following
methods:
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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–
DTC–2016–005 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549.
All submissions should refer to File
Number SR–DTC–2016–005. 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
17 Id.
VerDate Sep<11>2014
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 DTC and on DTCC’s Web site
(https://dtcc.com/legal/sec-rulefilings.aspx). 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–DTC–
2016–005 and should be submitted on
or before October 21, 2016.
IV. Accelerated Approval of the
Proposed Rule Change, as Modified by
Amendment No. 1
The Commission, pursuant to Section
19(b)(2) of the Act,18 finds good cause
to approve the proposed rule change, as
modified by Amendment No. 1, prior to
the thirtieth day after the date of
publication of Amendment No. 1 in the
Federal Register. In Amendment No.1,
DTC clarifies that when a Participant
submits a Protect directly to the Offer
Agent, such Participant could still
request that DTC process the Cover. As
such, Amendment No. 1 proposes to set
forth in the Guide that, once a
Participant has accepted an Offer
through the Offer Agent via a hard copy
Notice of Guaranteed Delivery
submitted directly to the Offer Agent, a
Participant would need to either (a)
submit the Cover directly to the Offer
Agent, or (b) request that DTC manually
process the Cover, but not through
PTOP/PSOP.
As discussed more fully above, the
Commission finds that the proposed
rule change, as modified by Amendment
No. 1, will streamline DTC’s processing
of Cover of Protect transactions and
reduce for DTC the risks, burdens, and
costs associated with its current
processing of such transactions, thereby
promoting the prompt and accurate
clearance and settlement of securities,
consistent with Section 17A(b)(3)(F),
cited above. Accordingly, the
Commission finds good cause for
18 15
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U.S.C. 78s(b)(2).
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approving the proposed rule change, as
modified by Amendment No. 1, on an
accelerated basis, pursuant to Section
19(b)(2) of the Act.19
V. Conclusion
On the basis of the foregoing, the
Commission finds that the proposal, as
modified by Amendment No. 1, is
consistent with the requirements of the
Act and in particular with the
requirements of Section 17A of the
Act 20 and the rules and regulations
thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act, that
proposed rule change SR–DTC–2016–
005, as modified by Amendment No. 1,
be, and hereby is, APPROVED on an
accelerated basis.21
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Brent J. Fields,
Secretary.
[FR Doc. 2016–23615 Filed 9–29–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–78930; File No. SR–CBOE–
2016–070]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Relating to the Fees
Schedule
September 26, 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 22, 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
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
19 Id.
20 15
U.S.C. 78q–1.
approving the proposed rule change, the
Commission considered the proposal’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
22 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
21 In
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I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange seeks to amend its fees
schedule. The text of the proposed rule
change is available on the Exchange’s
Web site (https://www.cboe.com/
AboutCBOE/
CBOELegalRegulatoryHome.aspx), at
the Exchange’s Office of the Secretary,
and at the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
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, effective September 26,
2016. Specifically, the Exchange plans
to list new options on two FTSE Russell
indexes on September 26, 2016. More
specifically, the Exchange proposes to
establish fees for options that overlie the
FTSE Emerging Markets Index
(‘‘FTEM’’), which are schedule to be
listed on September 26, 2016, and
options that overlie the FTSE Developed
Europe Index (‘‘AWDE’’), which are
scheduled to be listed in the near future.
By way of background, a specific set
of proprietary products are commonly
included or excluded from a variety of
programs, qualification calculations and
transaction fees. In lieu of listing out
these products in various sections of the
Fees Schedule, the Exchange uses the
term ‘‘Underlying Symbol List A’’ to
represent these products. Currently,
Underlying Symbol List A is defined in
Footnote 34 and represents the
following proprietary products: OEX,
XEO, RUT, RLG, RLV, RUI, FXTM,
UKXM, SPX (including SPXw), SPXpm,
SRO, VIX, VOLATILITY INDEXES and
binary options. The Exchange notes that
the reason the products in Underlying
Symbol List A are often collectively
included or excluded from certain
programs, qualification calculations and
transactions fees is because the
Exchange has expended considerable
resources developing and maintaining
its proprietary, exclusively-listed
products. Similar to the products
currently represented by ‘‘Underlying
Symbol List A,’’ AWDE and FTEM are
not listed on any other exchange. As
such, the Exchange proposes to exclude
or include AWDE and FTEM in the
same programs as the other products in
Underlying Symbol List A, as well as
add AWDE and FTEM to the definition
of Underlying Symbol List A in
Footnote 34. Specifically, like the other
products in Underlying Symbol List A,
the Exchange proposes to except AWDE
and FTEM from the Liquidity Provider
Sliding Scale, the Volume Incentive
Program (VIP), the Marketing Fee, the
Clearing Trading Permit Holder Fee Cap
(‘‘Fee Cap’’) and exemption from fees for
facilitation orders, and the Order Router
Subsidy (ORS) and Complex Order
Router Subsidy (CORS) Programs. Like
all other products in Underlying Symbol
List A (with the exception of SROs), the
Exchange proposes to apply to AWDE
and FTEM the CBOE Proprietary
Products Sliding Scale. The Exchange
does intend to keep AWDE and FTEM
volume in the calculation of qualifying
volume for the rebate of Floor Broker
Trading Permit fees. The Exchange
notes that although AWDE and FTEM
are being added to ‘‘Underlying Symbol
List A’’, it wishes to include AWDE and
FTEM in the calculation of the
qualifying volume for the rebate of Floor
Broker Trading Permit fees. The
Exchange wishes to continue to
encourage Floor Brokers to execute
open-outcry trades in these classes and
believes that including them in the
qualifying volume will provide such
incentive.
The Exchange next proposes to
establish transaction fees for AWDE and
FTEM. Particularly, the Exchange
proposes to assess the same fees for
AWDE and FTEM as apply to UKXM
and FXTM options. Transaction fees for
AWDE and FTEM options will be as
follows (all listed rates are per contract):
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Customer .............................................................................................................................................................................................
Clearing Trading Permit Holder Proprietary ........................................................................................................................................
CBOE Market-Maker/DPM ..................................................................................................................................................................
Joint Back-Office, Broker-Dealer, Non-Trading Permit Holder Market-Maker, Professional/Voluntary Professional (non-AIM Electronic) ...............................................................................................................................................................................................
Joint Back-Office, Broker-Dealer, Non-Trading Permit Holder Market-Maker, Professional/Voluntary Professional (Manual and
AIM) ..................................................................................................................................................................................................
The Exchange also proposes to apply
to AWDE and FTEM, like RUI, RLV, and
RLG, and RUT, the Floor Brokerage Fee
of $0.04 per contract ($0.02 per contract
for crossed orders). The Exchange also
proposes to apply to AWDE and FTEM
the CFLEX Surcharge Fee of $0.10 per
contract for all AWDE and FTEM orders
executed electronically on CFLEX,
capped at $250 per trade (i.e., first 2,500
contracts per trade). The CFLEX
Surcharge Fee assists the Exchange in
recouping the cost of developing and
maintaining the CFLEX system. The
Exchange notes that the CFLEX
Surcharge Fee (and $250 cap) also
applies to other proprietary index
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20:49 Sep 29, 2016
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options, including products in
Underlying Symbol List A.
The Exchange currently assesses an
Index License Surcharge for RUT of
$0.45 per contract for all non-customer
orders. Because the fees associated with
the license for AWDE and FTEM are
lower than the license fees for RUT, the
Exchange proposes to assess a Surcharge
of $0.10 per contract in order to recoup
the costs associated with the AWDE and
FTEM license.
In order to promote and encourage
trading of AWDE and FTEM, the
Exchange proposes to waive all
transaction fees (including the Floor
Brokerage Fee, Index License Surcharge
PO 00000
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67409
$0.18
0.25
0.20
0.65
0.25
and CFLEX Surcharge Fee) for AWDE
and FTEM transactions through
December 31, 2016. In order to promote
and encourage trading of UKXM, FXTM,
RUI, RLV and RLG, the Exchange also
proposes to extend the waiver of
transaction fees (including the Floor
Brokerage Fee, Index License Surcharge
and CFLEX Surcharge Fee) for UKXM,
FXTM, RUI, RLV and RLG. The
Exchange proposes to amend Footnote
40 to the Fees Schedule to make clear
that transaction fees for AWDE, FTEM,
RUI, RLV, RLG, UKXM and FXTM will
be waived through December 31, 2016.
The Exchange is also offering a
compensation plan to the Designated
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Primary Market-Maker(s) (‘‘DPM(s)’’)
appointed in AWDE and FTEM to offset
the initial DPM costs. The Exchange
proposes to add AWDE and FTEM to
Footnote 43 to the Fees Schedule, which
currently provides that DPM(s)
appointed for an entire month in either
FXTM or UKXM will receive a payment
of $7,500 per class per month through
December 31, 2016. Because AWDE and
FTEM are scheduled to be listed on
September 26, 2016, the appointed
DPM(s) will not have an appointment in
AWDE and FTEM for the entire month
of September; thus, the DPM(s) will not
receive compensation for September
2016. The DPM(s) appointed for the
entire month of October, November, etc.
will receive compensation of $7,500 for
each entire month the DPM is appointed
in AWDE and FTEM through December
31, 2016.
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.3 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 4 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
Section 6(b)(4) of the Act,5 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.
Particularly, the Exchange believes it
is reasonable to charge different fee
amounts to different user types in the
manner proposed because the proposed
fees are consistent with the price
differentiation that exists today for other
index products, including RUT, RUI,
RLV, and RLG. The Exchange also
believes that the proposed fee amounts
for AWDE and FTEM orders are
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
5 15 U.S.C. 78f(b)(4).
reasonable because the proposed fee
amounts are the same already assessed
for similar products (e.g., RUT, RUI,
RLV, and RLG), as well as are within the
range of amounts assessed for the
Exchange’s other proprietary products.6
The Exchange believes that it is
equitable and not unfairly
discriminatory to assess lower fees to
Customers as compared to other market
participants because Customer order
flow enhances liquidity on the
Exchange for the benefit of all market
participants. Specifically, customer
liquidity benefits all market participants
by providing more trading
opportunities, which attracts MarketMakers. An increase in the activity of
these market participants in turn
facilitates tighter spreads, which may
cause an additional corresponding
increase in order flow from other market
participants. The fees offered to
customers are intended to attract more
customer trading volume to the
Exchange. Moreover, the options
industry has a long history of providing
preferential pricing to Customers, and
the Exchange’s current Fees Schedule
currently does so in many places, as do
the fees structures of many other
exchanges. Finally, all fee amounts
listed as applying to Customers will be
applied equally to all Customers
(meaning that all Customers will be
assessed the same amount).
The Exchange believes that it is
equitable and not unfairly
discriminatory to, assess lower fees to
Market-Makers as compared to other
market participants other than
Customers because Market-Makers,
unlike other market participants, take
on a number of obligations, including
quoting obligations, that other market
participants do not have. Further, these
lower fees offered to Market-Makers are
intended to incent Market-Makers to
quote and trade more on the Exchange,
thereby providing more trading
opportunities for all market
participants. Additionally, the proposed
fee for Market-Makers will be applied
equally to all Market-Makers (meaning
that all Market-Makers will be assessed
the same amount). This concept also
applies to orders from all other origins.
It should also be noted that all fee
amounts described herein are intended
to attract greater order flow to the
Exchange in AWDE and FTEM which
should therefore serve to benefit all
Exchange market participants.
Similarly, it is equitable and not
unfairly discriminatory to assess lower
fees to Clearing Trading Permit Holder
3 15
4 15
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20:49 Sep 29, 2016
6 See CBOE Fees Schedule, Specified Proprietary
Index Options Rate Table.
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Proprietary orders than those of other
market participants (except Customers
and Market-Makers) because Clearing
Trading Permit Holders also have a
number of obligations (such as
membership with the Options Clearing
Corporation), significant regulatory
burdens, and financial obligations, that
other market participants do not need to
take on. The Exchange also notes that
the AWDE and FTEM fee amounts for
each separate type of market participant
will be assessed equally to all such
market participants (i.e. all BrokerDealer orders will be assessed the same
amount, all Joint Back-Office orders will
be assessed the same amount, etc.).
The Exchange believes the proposed
AIM transaction fees for Brokers
Dealers, Non-Trading Permit Holder
Market-Makers, Professionals/Voluntary
Professionals, JBOs and Customers are
reasonable because the amounts are still
lower than assessed for AIM
transactions in other proprietary
products.7 The Exchange believes it’s
equitable and not unfairly
discriminatory to assess lower fees for
AIM executions as compared to
electronic executions because AIM is a
price-improvement mechanism, which
the Exchange wishes to encourage and
support.
Assessing the Floor Brokerage Fee of
$0.04 per contract for non-crossed
orders and $0.02 per contract for
crossed orders to Floor Brokers (and not
other market participants) trading
AWDE and FTEM orders is equitable
and not unfairly discriminatory because
only Floor Brokers are statutorily
capable of representing orders in the
trading crowd, for which they charge a
commission. Moreover, this fee is
already assessed, in the same amounts,
to the other products in Underlying
Symbol List A, including UKXM,
FXTM, RUT, RUI, RLV, and RLG.
The Exchange believes that assessing
an Index License Surcharge Fee of $0.10
per contract to AWDE and FTEM
transactions is reasonable because the
Surcharge helps recoup some of the
costs associated with the license for
AWDE and FTEM options. Additionally,
the Exchange notes that the Surcharge
amount is the same as, and in some
cases lower than, the amount assessed
as an Index License Surcharge to other
index products. The proposed
Surcharge is also equitable and not
unfairly discriminatory because the
amount will be assessed to all market
participants to whom the Surcharge
applies. Not applying the AWDE and
FTEM Index License Surcharge Fee to
Customer orders is equitable and not
7 Id.
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unfairly discriminatory because this is
designed to attract Customer AWDE and
FTEM orders, which increases liquidity
and provides greater trading
opportunities to all market participants.
Additionally, it is equitable and not
unfairly discriminatory to assess a lower
License Index Surcharge amount to
AWDE and FTEM transactions as
compared to RUT transactions because
the costs of the license associated with
RUT is greater.
Similarly, the Exchange believes
assessing a CFLEX Surcharge Fee of
$0.10 per contract for all AWDE and
FTEM orders executed electronically on
CFLEX and capping it at $250 (i.e., first
2,500 contracts per trade) is reasonable
because it is the same amount currently
charged to other proprietary index
products for the same transactions.8 The
proposed Surcharge is also equitable
and not unfairly discriminatory because
the amount will be assessed to all
market participants to whom the CFLEX
Surcharge applies.
Excepting AWDE and FTEM from the
Liquidity Provider Sliding Scale, VIP,
the Marketing Fee, the Fee Cap, and the
exemption from fees for facilitation
orders and the ORS and CORS Programs
is reasonable because other Underlying
Symbol List A products (i.e., other
products that are exclusively-listed) are
excepted from those same items. This is
equitable and not unfairly
discriminatory for the same reason; it
seems equitable to except AWDE and
FTEM from items on the Fees Schedule
from which other proprietary products
are also excepted.
The Exchange believes it is
reasonable, equitable and not unfairly
discriminatory to waive all transaction
fees, including the Floor Brokerage fee,
the License Index Surcharge and CFLEX
Surcharge Fee because it promotes and
encourages trading of these new
products and applies to all Trading
Permit Holders (‘‘TPHs’’).
Applying to AWDE and FTEM to the
CBOE Proprietary Products Sliding
Scale is reasonable because it also
applies to other Underlying Symbol List
A products. This is equitable and not
unfairly discriminatory for the same
reason; it seems equitable to apply to
AWDE and FTEM the same items on the
Fees Schedule that apply to Underlying
Symbol List A options classes (i.e.,
proprietary options classes that are not
listed on other exchanges).
The Exchange believes it’s reasonable,
equitable and not unfairly
8 See CBOE Fees Schedule, Index Options Rate
Table—All Index Products Excluding Underlying
Symbol List A, CFLEX Surcharge Fee and Specified
Proprietary Index Options Rate Table—Underlying
Symbol List A, CFLEX Surcharge Fee.
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20:49 Sep 29, 2016
Jkt 238001
discriminatory to continue to include
AWDE and FTEM in the calculation of
the qualifying volume for the Floor
Broker Trading Permit Fees rebate
because the Exchange wishes to support
and encourage open-outcry trading of
AWDE and FTEM, which allows for
price improvement and has a number of
positive impacts on the market system.
Finally, the Exchange believes that it
is equitable and not unfairly
discriminatory to compensate DPM(s)
that are appointed for an entire month
in either AWDE and FTEM. DPM(s)
incur costs when receiving an
appointment, and in the case of AWDE
and FTEM, the Exchange believes it is
appropriate to provide compensation to
the DPM(s) to offset those costs.
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 that
is not necessary or appropriate in
furtherance of the purposes of the Act
because, while different fees are
assessed to different market participants
in some circumstances, these different
market participants have different
obligations and different circumstances
as discussed above. For example,
Market-Makers have quoting obligations
that other market participants do not
have. The Exchange does not believe
that the proposed rule change to waive
all transaction fees through December
31, 2016 will impose any burden on
intramarket competition because it
applies to all TPHs and encourages
trading in these new products.
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 AWDE and FTEM will be
exclusively listed on 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.
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67411
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 9 and paragraph (f) of Rule
19b–4 10 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.
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–2016–070 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–2016–070. 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
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
10 17
E:\FR\FM\30SEN1.SGM
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Federal Register / Vol. 81, No. 190 / Friday, September 30, 2016 / Notices
Reference Room, 100 F Street NE.,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–CBOE–
2016–070, and should be submitted on
or before October 21, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Brent J. Fields,
Secretary.
[FR Doc. 2016–23609 Filed 9–29–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–78931; File No. SR–NSX–
2016–11]
Self-Regulatory Organizations;
National Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To Amend
the Fee and Rebate Schedule To
Create a Liquidity-Adding Volume
Threshold To Benefit From the Current
Liquidity Taking Fee in Securities
Priced $1.00 or Greater
September 26, 2016.
mstockstill on DSK3G9T082PROD with NOTICES
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 20, 2016, National Stock
Exchange, Inc. (‘‘NSX’’ or the
‘‘Exchange’’) 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
The Exchange is proposing to amend
its Fee and Rebate Schedule (the ‘‘Fee
Schedule’’), issued pursuant to
Exchange Rule 16.1, to: (1) Create a
monthly, liquidity-adding volume
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Sep<11>2014
20:49 Sep 29, 2016
Jkt 238001
threshold that Equity Trading Permit
(‘‘ETP’’) Holders 3 will be required to
meet to continue to pay for [sic] the
current liquidity-taking fee in securities
priced $1.00 or greater and establish a
different, higher liquidity-taking fee for
ETP Holders that do not meet the new
volume threshold; and (2) make
ministerial changes to the Fee Schedule.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.nsx.com, at the principal
office of the Exchange, 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 parts 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
Fee Schedule, issued pursuant to Rule
16.1, with the goal of maximizing the
effectiveness of its business model and
continuing to provide ETP Holders a
cost-effective execution venue. To
further incentivize ETP Holders to post
liquidity on the NSX Book,4 the
Exchange is proposing to create a
monthly, liquidity-adding volume
threshold that an ETP Holder must
reach to continue to pay the current
liquidity-taking fee for securities priced
$1.00 or greater. The Exchange proposes
to adopt a different, higher liquiditytaking fee for ETP Holders that do not
meet the new liquidity-adding volume
threshold.
Currently, the Exchange charges ETP
Holders $0.0003 per share executed for
liquidity-taking orders in symbols
priced at $1.00 or greater. The Exchange
proposes to amend its fee schedule to
add language in the Transaction Fees
and Rebates section of the Fee Schedule
3 Exchange Rule 1.5E(1) defines ‘‘ETP’’ as the
Equity Trading Permit issued by the Exchange for
effecting approved securities transactions on the
Exchange’s trading facilities.
4 Exchange Rule 1.5N(1) defines ‘‘NSX Book’’ as
the trading systems’ electronic file of orders.
PO 00000
Frm 00124
Fmt 4703
Sfmt 4703
and an Explanatory Note 1 which will
create two different price structures
depending on the amount of liquidity
that an ETP Holder adds on the
Exchange. Specifically, the Exchange
will charge the current ‘‘taker’’ fee of
$0.0003 per executed share for any
marketable liquidity-removing order in
securities priced at $1.00 or greater to
any ETP Holder that executes at least
50,000 shares of liquidity-adding
volume during a calendar month. An
ETP Holder that does not execute at
least 50,000 shares of liquidity-adding
volume during a calendar month will be
charged $0.0030 per executed share for
any liquidity-removing order in
securities priced at $1.00 or greater.
After each calendar month, the
Exchange will calculate the number of
shares of liquidity-adding volume that
each ETP Holder executed and apply
the appropriate fee for the ETP Holder’s
liquidity-taking executions that calendar
month.
The Exchange also proposes to make
the ministerial change of adjusting the
numbering for Explanatory Notes in
light of the addition of proposed
Explanatory Note 1.
Pursuant to Exchange Rule 16.1(c),
the Exchange will ‘‘provide ETP Holders
with notice of all relevant dues, fees,
assessments and charges of the
Exchange’’ through the issuance of an
Information Circular and will post the
Fee Schedule and the instant rule filing
on the Exchange’s Web site,
www.nsx.com.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6(b) of the
Act,5 in general and, in particular,
Section 6(b)(4) of the Act,6 which
requires that the rules of a national
securities exchange provide for the
equitable allocation of reasonable dues,
fees, and other charges among its
members and issuers and other persons
using its facilities. The proposed rule
change is also consistent with Section
6(b)(5) of the Act,7 which requires,
among other things, that the rules of a
national securities exchange not permit
unfair discrimination between
customers, issuers, brokers, or dealers,
and be designed to promote just and
equitable principles of trade, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system.
The Exchange submits that the
proposed liquidity-adding volume
5 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
7 15 U.S.C. 78f(b)(5).
6 15
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]]>Agencies
[Federal Register Volume 81, Number 190 (Friday, September 30, 2016)]
[Notices]
[Pages 67408-67412]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-23609]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-78930; File No. SR-CBOE-2016-070]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change Relating to the Fees Schedule
September 26, 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 22, 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 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.
---------------------------------------------------------------------------
[[Page 67409]]
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
The Exchange seeks to amend its fees schedule. The text of the
proposed rule change is available on the Exchange's Web site (https://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's
Office of the Secretary, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The 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, effective
September 26, 2016. Specifically, the Exchange plans to list new
options on two FTSE Russell indexes on September 26, 2016. More
specifically, the Exchange proposes to establish fees for options that
overlie the FTSE Emerging Markets Index (``FTEM''), which are schedule
to be listed on September 26, 2016, and options that overlie the FTSE
Developed Europe Index (``AWDE''), which are scheduled to be listed in
the near future.
By way of background, a specific set of proprietary products are
commonly included or excluded from a variety of programs, qualification
calculations and transaction fees. In lieu of listing out these
products in various sections of the Fees Schedule, the Exchange uses
the term ``Underlying Symbol List A'' to represent these products.
Currently, Underlying Symbol List A is defined in Footnote 34 and
represents the following proprietary products: OEX, XEO, RUT, RLG, RLV,
RUI, FXTM, UKXM, SPX (including SPXw), SPXpm, SRO, VIX, VOLATILITY
INDEXES and binary options. The Exchange notes that the reason the
products in Underlying Symbol List A are often collectively included or
excluded from certain programs, qualification calculations and
transactions fees is because the Exchange has expended considerable
resources developing and maintaining its proprietary, exclusively-
listed products. Similar to the products currently represented by
``Underlying Symbol List A,'' AWDE and FTEM are not listed on any other
exchange. As such, the Exchange proposes to exclude or include AWDE and
FTEM in the same programs as the other products in Underlying Symbol
List A, as well as add AWDE and FTEM to the definition of Underlying
Symbol List A in Footnote 34. Specifically, like the other products in
Underlying Symbol List A, the Exchange proposes to except AWDE and FTEM
from the Liquidity Provider Sliding Scale, the Volume Incentive Program
(VIP), the Marketing Fee, the Clearing Trading Permit Holder Fee Cap
(``Fee Cap'') and exemption from fees for facilitation orders, and the
Order Router Subsidy (ORS) and Complex Order Router Subsidy (CORS)
Programs. Like all other products in Underlying Symbol List A (with the
exception of SROs), the Exchange proposes to apply to AWDE and FTEM the
CBOE Proprietary Products Sliding Scale. The Exchange does intend to
keep AWDE and FTEM volume in the calculation of qualifying volume for
the rebate of Floor Broker Trading Permit fees. The Exchange notes that
although AWDE and FTEM are being added to ``Underlying Symbol List A'',
it wishes to include AWDE and FTEM in the calculation of the qualifying
volume for the rebate of Floor Broker Trading Permit fees. The Exchange
wishes to continue to encourage Floor Brokers to execute open-outcry
trades in these classes and believes that including them in the
qualifying volume will provide such incentive.
The Exchange next proposes to establish transaction fees for AWDE
and FTEM. Particularly, the Exchange proposes to assess the same fees
for AWDE and FTEM as apply to UKXM and FXTM options. Transaction fees
for AWDE and FTEM options will be as follows (all listed rates are per
contract):
------------------------------------------------------------------------
------------------------------------------------------------------------
Customer................................................ $0.18
Clearing Trading Permit Holder Proprietary.............. 0.25
CBOE Market-Maker/DPM................................... 0.20
Joint Back-Office, Broker-Dealer, Non-Trading Permit 0.65
Holder Market-Maker, Professional/Voluntary
Professional (non-AIM Electronic)......................
Joint Back-Office, Broker-Dealer, Non-Trading Permit 0.25
Holder Market-Maker, Professional/Voluntary
Professional (Manual and AIM)..........................
------------------------------------------------------------------------
The Exchange also proposes to apply to AWDE and FTEM, like RUI,
RLV, and RLG, and RUT, the Floor Brokerage Fee of $0.04 per contract
($0.02 per contract for crossed orders). The Exchange also proposes to
apply to AWDE and FTEM the CFLEX Surcharge Fee of $0.10 per contract
for all AWDE and FTEM orders executed electronically on CFLEX, capped
at $250 per trade (i.e., first 2,500 contracts per trade). The CFLEX
Surcharge Fee assists the Exchange in recouping the cost of developing
and maintaining the CFLEX system. The Exchange notes that the CFLEX
Surcharge Fee (and $250 cap) also applies to other proprietary index
options, including products in Underlying Symbol List A.
The Exchange currently assesses an Index License Surcharge for RUT
of $0.45 per contract for all non-customer orders. Because the fees
associated with the license for AWDE and FTEM are lower than the
license fees for RUT, the Exchange proposes to assess a Surcharge of
$0.10 per contract in order to recoup the costs associated with the
AWDE and FTEM license.
In order to promote and encourage trading of AWDE and FTEM, the
Exchange proposes to waive all transaction fees (including the Floor
Brokerage Fee, Index License Surcharge and CFLEX Surcharge Fee) for
AWDE and FTEM transactions through December 31, 2016. In order to
promote and encourage trading of UKXM, FXTM, RUI, RLV and RLG, the
Exchange also proposes to extend the waiver of transaction fees
(including the Floor Brokerage Fee, Index License Surcharge and CFLEX
Surcharge Fee) for UKXM, FXTM, RUI, RLV and RLG. The Exchange proposes
to amend Footnote 40 to the Fees Schedule to make clear that
transaction fees for AWDE, FTEM, RUI, RLV, RLG, UKXM and FXTM will be
waived through December 31, 2016.
The Exchange is also offering a compensation plan to the Designated
[[Page 67410]]
Primary Market-Maker(s) (``DPM(s)'') appointed in AWDE and FTEM to
offset the initial DPM costs. The Exchange proposes to add AWDE and
FTEM to Footnote 43 to the Fees Schedule, which currently provides that
DPM(s) appointed for an entire month in either FXTM or UKXM will
receive a payment of $7,500 per class per month through December 31,
2016. Because AWDE and FTEM are scheduled to be listed on September 26,
2016, the appointed DPM(s) will not have an appointment in AWDE and
FTEM for the entire month of September; thus, the DPM(s) will not
receive compensation for September 2016. The DPM(s) appointed for the
entire month of October, November, etc. will receive compensation of
$7,500 for each entire month the DPM is appointed in AWDE and FTEM
through December 31, 2016.
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.\3\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \4\ 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
Section 6(b)(4) of the Act,\5\ 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.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(5).
\5\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
Particularly, the Exchange believes it is reasonable to charge
different fee amounts to different user types in the manner proposed
because the proposed fees are consistent with the price differentiation
that exists today for other index products, including RUT, RUI, RLV,
and RLG. The Exchange also believes that the proposed fee amounts for
AWDE and FTEM orders are reasonable because the proposed fee amounts
are the same already assessed for similar products (e.g., RUT, RUI,
RLV, and RLG), as well as are within the range of amounts assessed for
the Exchange's other proprietary products.\6\
---------------------------------------------------------------------------
\6\ See CBOE Fees Schedule, Specified Proprietary Index Options
Rate Table.
---------------------------------------------------------------------------
The Exchange believes that it is equitable and not unfairly
discriminatory to assess lower fees to Customers as compared to other
market participants because Customer order flow enhances liquidity on
the Exchange for the benefit of all market participants. Specifically,
customer liquidity benefits all market participants by providing more
trading opportunities, which attracts Market-Makers. An increase in the
activity of these market participants in turn facilitates tighter
spreads, which may cause an additional corresponding increase in order
flow from other market participants. The fees offered to customers are
intended to attract more customer trading volume to the Exchange.
Moreover, the options industry has a long history of providing
preferential pricing to Customers, and the Exchange's current Fees
Schedule currently does so in many places, as do the fees structures of
many other exchanges. Finally, all fee amounts listed as applying to
Customers will be applied equally to all Customers (meaning that all
Customers will be assessed the same amount).
The Exchange believes that it is equitable and not unfairly
discriminatory to, assess lower fees to Market-Makers as compared to
other market participants other than Customers because Market-Makers,
unlike other market participants, take on a number of obligations,
including quoting obligations, that other market participants do not
have. Further, these lower fees offered to Market-Makers are intended
to incent Market-Makers to quote and trade more on the Exchange,
thereby providing more trading opportunities for all market
participants. Additionally, the proposed fee for Market-Makers will be
applied equally to all Market-Makers (meaning that all Market-Makers
will be assessed the same amount). This concept also applies to orders
from all other origins. It should also be noted that all fee amounts
described herein are intended to attract greater order flow to the
Exchange in AWDE and FTEM which should therefore serve to benefit all
Exchange market participants. Similarly, it is equitable and not
unfairly discriminatory to assess lower fees to Clearing Trading Permit
Holder Proprietary orders than those of other market participants
(except Customers and Market-Makers) because Clearing Trading Permit
Holders also have a number of obligations (such as membership with the
Options Clearing Corporation), significant regulatory burdens, and
financial obligations, that other market participants do not need to
take on. The Exchange also notes that the AWDE and FTEM fee amounts for
each separate type of market participant will be assessed equally to
all such market participants (i.e. all Broker-Dealer orders will be
assessed the same amount, all Joint Back-Office orders will be assessed
the same amount, etc.).
The Exchange believes the proposed AIM transaction fees for Brokers
Dealers, Non-Trading Permit Holder Market-Makers, Professionals/
Voluntary Professionals, JBOs and Customers are reasonable because the
amounts are still lower than assessed for AIM transactions in other
proprietary products.\7\ The Exchange believes it's equitable and not
unfairly discriminatory to assess lower fees for AIM executions as
compared to electronic executions because AIM is a price-improvement
mechanism, which the Exchange wishes to encourage and support.
---------------------------------------------------------------------------
\7\ Id.
---------------------------------------------------------------------------
Assessing the Floor Brokerage Fee of $0.04 per contract for non-
crossed orders and $0.02 per contract for crossed orders to Floor
Brokers (and not other market participants) trading AWDE and FTEM
orders is equitable and not unfairly discriminatory because only Floor
Brokers are statutorily capable of representing orders in the trading
crowd, for which they charge a commission. Moreover, this fee is
already assessed, in the same amounts, to the other products in
Underlying Symbol List A, including UKXM, FXTM, RUT, RUI, RLV, and RLG.
The Exchange believes that assessing an Index License Surcharge Fee
of $0.10 per contract to AWDE and FTEM transactions is reasonable
because the Surcharge helps recoup some of the costs associated with
the license for AWDE and FTEM options. Additionally, the Exchange notes
that the Surcharge amount is the same as, and in some cases lower than,
the amount assessed as an Index License Surcharge to other index
products. The proposed Surcharge is also equitable and not unfairly
discriminatory because the amount will be assessed to all market
participants to whom the Surcharge applies. Not applying the AWDE and
FTEM Index License Surcharge Fee to Customer orders is equitable and
not
[[Page 67411]]
unfairly discriminatory because this is designed to attract Customer
AWDE and FTEM orders, which increases liquidity and provides greater
trading opportunities to all market participants. Additionally, it is
equitable and not unfairly discriminatory to assess a lower License
Index Surcharge amount to AWDE and FTEM transactions as compared to RUT
transactions because the costs of the license associated with RUT is
greater.
Similarly, the Exchange believes assessing a CFLEX Surcharge Fee of
$0.10 per contract for all AWDE and FTEM orders executed electronically
on CFLEX and capping it at $250 (i.e., first 2,500 contracts per trade)
is reasonable because it is the same amount currently charged to other
proprietary index products for the same transactions.\8\ The proposed
Surcharge is also equitable and not unfairly discriminatory because the
amount will be assessed to all market participants to whom the CFLEX
Surcharge applies.
---------------------------------------------------------------------------
\8\ See CBOE Fees Schedule, Index Options Rate Table--All Index
Products Excluding Underlying Symbol List A, CFLEX Surcharge Fee and
Specified Proprietary Index Options Rate Table--Underlying Symbol
List A, CFLEX Surcharge Fee.
---------------------------------------------------------------------------
Excepting AWDE and FTEM from the Liquidity Provider Sliding Scale,
VIP, the Marketing Fee, the Fee Cap, and the exemption from fees for
facilitation orders and the ORS and CORS Programs is reasonable because
other Underlying Symbol List A products (i.e., other products that are
exclusively-listed) are excepted from those same items. This is
equitable and not unfairly discriminatory for the same reason; it seems
equitable to except AWDE and FTEM from items on the Fees Schedule from
which other proprietary products are also excepted.
The Exchange believes it is reasonable, equitable and not unfairly
discriminatory to waive all transaction fees, including the Floor
Brokerage fee, the License Index Surcharge and CFLEX Surcharge Fee
because it promotes and encourages trading of these new products and
applies to all Trading Permit Holders (``TPHs'').
Applying to AWDE and FTEM to the CBOE Proprietary Products Sliding
Scale is reasonable because it also applies to other Underlying Symbol
List A products. This is equitable and not unfairly discriminatory for
the same reason; it seems equitable to apply to AWDE and FTEM the same
items on the Fees Schedule that apply to Underlying Symbol List A
options classes (i.e., proprietary options classes that are not listed
on other exchanges).
The Exchange believes it's reasonable, equitable and not unfairly
discriminatory to continue to include AWDE and FTEM in the calculation
of the qualifying volume for the Floor Broker Trading Permit Fees
rebate because the Exchange wishes to support and encourage open-outcry
trading of AWDE and FTEM, which allows for price improvement and has a
number of positive impacts on the market system.
Finally, the Exchange believes that it is equitable and not
unfairly discriminatory to compensate DPM(s) that are appointed for an
entire month in either AWDE and FTEM. DPM(s) incur costs when receiving
an appointment, and in the case of AWDE and FTEM, the Exchange believes
it is appropriate to provide compensation to the DPM(s) to offset those
costs.
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 that is not necessary or appropriate in
furtherance of the purposes of the Act because, while different fees
are assessed to different market participants in some circumstances,
these different market participants have different obligations and
different circumstances as discussed above. For example, Market-Makers
have quoting obligations that other market participants do not have.
The Exchange does not believe that the proposed rule change to waive
all transaction fees through December 31, 2016 will impose any burden
on intramarket competition because it applies to all TPHs and
encourages trading in these new products.
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 AWDE and
FTEM will be exclusively listed on 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 \9\ and paragraph (f) of Rule 19b-4 \10\
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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-CBOE-2016-070 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-2016-070. 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
[[Page 67412]]
Reference Room, 100 F Street NE., Washington, DC 20549 on official
business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of
such filing also will be available for inspection and copying at the
principal office of the Exchange. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-CBOE-2016-070, and should be submitted on or before
October 21, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Brent J. Fields,
Secretary.
[FR Doc. 2016-23609 Filed 9-29-16; 8:45 am]
BILLING CODE 8011-01-P
