Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule, 92883-92885 [2016-30554]
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Federal Register / Vol. 81, No. 244 / Tuesday, December 20, 2016 / Notices
BILLING CODE 7710–12–P
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Effective date: December 20,
2016.
FOR FURTHER INFORMATION CONTACT:
Elizabeth A. Reed, 202–268–3179.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on December 13,
2016, it filed with the Postal Regulatory
Commission a Request of the United
States Postal Service to Add Priority
Mail Contract 271 to Competitive
Product List. Documents are available at
www.prc.gov, Docket Nos. MC2017–46,
CP2017–72.
POSTAL SERVICE
Stanley F. Mires,
Attorney, Federal Compliance.
DATES:
Effective date: December 20,
2016.
FOR FURTHER INFORMATION CONTACT:
Elizabeth A. Reed, 202–268–3179.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on December 13,
2016, it filed with the Postal Regulatory
Commission a Request of the United
States Postal Service to Add Priority
Mail Contract 270 to Competitive
Product List. Documents are available at
www.prc.gov, Docket Nos. MC2017–45,
CP2017–71.
Stanley F. Mires,
Attorney, Federal Compliance.
[FR Doc. 2016–30531 Filed 12–19–16; 8:45 am]
[FR Doc. 2016–30529 Filed 12–19–16; 8:45 am]
Product Change—Priority Mail
Negotiated Service Agreement
BILLING CODE 7710–12–P
AGENCY:
Postal ServiceTM.
ACTION: Notice.
SECURITIES AND EXCHANGE
COMMISSION
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Effective date: December 20,
2016.
[Release No. 34–79548; File No. SR–CBOE–
2016–085]
SUMMARY:
December 14, 2016.
FOR FURTHER INFORMATION CONTACT:
Elizabeth A. Reed, 202–268–3179.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on December 13,
2016, it filed with the Postal Regulatory
Commission a Request of the United
States Postal Service to Add Priority
Mail Contract 272 to Competitive
Product List. Documents are available at
www.prc.gov, Docket Nos. MC2017–47,
CP2017–73.
Stanley F. Mires,
Attorney, Federal Compliance.
BILLING CODE 7710–12–P
mstockstill on DSK3G9T082PROD with NOTICES
POSTAL SERVICE
Product Change—Priority Mail
Negotiated Service Agreement
Postal ServiceTM.
Notice.
AGENCY:
The Postal Service gives
notice of filing a request with the Postal
SUMMARY:
VerDate Sep<11>2014
19:36 Dec 19, 2016
Jkt 241001
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 December
1, 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
Fees Schedule. The text of the proposed
rule change is also available on the
Exchange’s Web site (https://
www.cboe.com/AboutCBOE/
CBOELegalRegulatoryHome.aspx), at
the Exchange’s Office of the Secretary,
[FR Doc. 2016–30526 Filed 12–19–16; 8:45 am]
ACTION:
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the Fees
Schedule
1 15
2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00114
Fmt 4703
Sfmt 4703
92883
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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend its
Fees Schedule. Specifically, the
Exchange proposes to increase the
transaction fee for electronic executions
by broker-dealers, non-Trading Permit
Holder (‘‘non-TPH’’) Market-Makers,
Professionals/Voluntary Professionals
and Joint Back-Offices (‘‘JBOs’’) in
Penny Pilot equity, ETF, ETN and index
options (excluding Underlying Symbol
List A) classes from $0.45 per contract
to $0.47 per contract. The Exchange
notes that this increase is in line with
the amount assessed by another
exchange for similar transactions.3
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’) and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.4 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 5 requirements that the rules of
an exchange be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and 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
3 See e.g., NASDAQ PHLX Pricing Schedule,
Section II, Multiply Listed Options Fees.
4 15 U.S.C. 78f(b).
5 15 U.S.C. 78f(b)(5).
E:\FR\FM\20DEN1.SGM
20DEN1
mstockstill on DSK3G9T082PROD with NOTICES
92884
Federal Register / Vol. 81, No. 244 / Tuesday, December 20, 2016 / Notices
investors and the public interest.
Additionally, the Exchange believes the
proposed rule change is consistent with
Section 6(b)(4) of the Act,6 which
requires that Exchange rules provide for
the equitable allocation of reasonable
dues, fees, and other charges among its
Trading Permit Holders and other
persons using its facilities.
Increasing the fee for electronic
executions by broker-dealers, non-TPH
Market-Makers, Professionals/Voluntary
Professionals and JBOs in Penny Pilot
equity, ETF, ETN and index options
(excluding Underlying Symbol List A)
classes is reasonable because the
proposed fee amount is in line with the
amount assessed by another exchange
for similar transactions.7 The Exchange
believes that this proposed change is
also equitable and not unfairly
discriminatory because the Exchange
will assess broker-dealers, non-TPH
Market-Makers, Professionals/Voluntary
Professionals and JBOs the same
electronic options transaction fees in
Penny Pilot options classes. The
Exchange notes that it does not assess
Customers the electronic options
transaction fees in Penny Pilot options
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 Exchange notes that
Market-Makers are assessed lower
electronic options transaction fees in
Penny Pilot options as compared to
Professionals, JBOs, Broker Dealers and
non-Trading Permit Holder MarketMakers because they have obligations to
the market and regulatory requirements,
which normally do not apply to other
market participants (e.g., obligations to
make continuous markets). Clearing
Trading Permit Holder Proprietary
orders are assessed lower options
transaction fees in Penny Pilot options
because they also have obligations,
which normally do not apply to other
market participants (e.g., must have
higher capital requirements, clear trades
for other market participants, must be
members of OCC). Accordingly, the
differentiation between electronic
transaction fees for Customers, MarketMakers, Clearing Trading Permit
Holders and other market participants
U.S.C. 78f(b)(4).
NASDAQ PHLX Pricing Schedule, Section
II, Multiply Listed Options Fees.
recognizes the differing obligations and
contributions made to the liquidity and
trading environment on the Exchange by
these market participants.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that are [sic]
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 the proposed fee
increase applies only to certain market
participants, the other market
participants have different obligations
and different circumstances (as
described in the ‘‘Statutory Basis’’
section above). For example, Clearing
TPHs have clearing obligations that
other market participants do not have.
Market-Makers have quoting obligations
that other market participants do not
have. There is also a history in the
options markets of providing
preferential treatment to Customers. The
Exchange does not believe that the
proposed change will cause any
unnecessary burden on intermarket
competition because the proposed
change only affects trading 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 8 and paragraph (f) of Rule
19b–4 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
6 15
7 See
VerDate Sep<11>2014
19:36 Dec 19, 2016
Jkt 241001
8 15
9 17
PO 00000
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
Frm 00115
Fmt 4703
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–2016–085 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–CBOE–2016–085. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–CBOE–
2016–085, and should be submitted on
or before January 10, 2017.
10 17
Sfmt 4703
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CFR 200.30–3(a)(12).
20DEN1
Federal Register / Vol. 81, No. 244 / Tuesday, December 20, 2016 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–30554 Filed 12–19–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–79551; File No. SR–
NASDAQ–2016–131]
Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Notice of
Designation of a Longer Period for
Commission Action on Proposed Rule
Change To Enhance the Reopening
Auction Process Following a Trading
Halt Declared Pursuant to the Plan To
Address Extraordinary Market
Volatility
December 14, 2016.
On October 13, 2016, The Nasdaq
Stock Market LLC (‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’),1 and
Rule 19b–4 thereunder,2 a proposed rule
change related to the reopening auction
process following a trading halt
declared pursuant to the Plan to
Address Extraordinary Market
Volatility. The proposed rule change
was published for comment in the
Federal Register on November 1, 2016.3
On December 5, 2016, the Exchange
filed Amendment No. 1 to its proposed
rule change.4 The Commission received
no comments on the proposed rule
change.
Section 19(b)(2) of the Act 5 provides
that, within 45 days of the publication
of notice of the filing of a proposed rule
change, or within such longer period up
to 90 days as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or as to which the
self-regulatory organization consents,
the Commission shall either approve the
proposed rule change, disapprove the
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 79158
(October 26, 2016), 81 FR 75879.
4 In Amendment No. 1, the Exchange proposed to
use the Auction Reference Price in determining
whether or not a security was priced at $3 or less
for purposes of calculating the Auction Collar. In
addition, the Exchange proposed to amend Rule
4754(b)(6) to make a conforming change to state that
the rule applies to Trading Pauses in existence at
or after 3:50 p.m. and before 4:00 p.m. Amendment
No. 1 is available at https://www.sec.gov/comments/
sr-nasdaq-2016-131/nasdaq2016131-1.pdf.
5 15 U.S.C. 78s(b)(2).
mstockstill on DSK3G9T082PROD with NOTICES
2 17
VerDate Sep<11>2014
19:36 Dec 19, 2016
Jkt 241001
proposed rule change, or institute
proceedings to determine whether the
proposed rule change should be
disapproved. The 45th day after
publication of the notice for this
proposed rule change is December 16,
2016. The Commission is extending this
45-day time period.
The Commission finds that it is
appropriate to designate a longer period
within which to take action on the
proposed rule change so that it has
sufficient time to consider the proposed
rule change. Accordingly, the
Commission, pursuant to Section
19(b)(2) of the Act,6 designates January
30, 2017 as the date by which the
Commission shall either approve or
disapprove or institute proceedings to
determine whether to disapprove the
proposed rule change (File Number SR–
NASDAQ–2016–131).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–30557 Filed 12–19–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Securities Act of 1933 Release No. 10266/
December 14, 2016; Securities Exchange
Act of 1934 Release No. 79544/December
14, 2016]
Order Approving Public Company
Accounting Oversight Board Budget
and Annual Accounting Support Fee
for Calendar Year 2017
The Sarbanes-Oxley Act of 2002, as
amended (the ‘‘Sarbanes-Oxley Act’’),1
established the Public Company
Accounting Oversight Board (‘‘PCAOB’’)
to oversee the audits of companies that
are subject to the securities laws, and
related matters, in order to protect the
interests of investors and further the
public interest in the preparation of
informative, accurate and independent
audit reports. Section 982 of the DoddFrank Wall Street Reform and Consumer
Protection Act (the ‘‘Dodd-Frank Act’’) 2
amended the Sarbanes-Oxley Act to
provide the PCAOB with explicit
authority to oversee auditors of brokerdealers registered with the Commission.
The PCAOB is to accomplish these goals
through registration of public
accounting firms and standard setting,
inspection, and disciplinary programs.
6 Id.
7 17
CFR 200.30–3(a)(31).
U.S.C. 7201 et seq.
2 Public Law 111–203, 124 Stat. 1376 (2010).
The PCAOB is subject to the
comprehensive oversight of the
Securities and Exchange Commission
(the ‘‘Commission’’).
Section 109 of the Sarbanes-Oxley Act
provides that the PCAOB shall establish
a reasonable annual accounting support
fee, as may be necessary or appropriate
to establish and maintain the PCAOB.
Under Section 109(f) of the SarbanesOxley Act, the aggregate annual
accounting support fee shall not exceed
the PCAOB’s aggregate ‘‘recoverable
budget expenses,’’ which may include
operating, capital and accrued items.
The PCAOB’s annual budget and
accounting support fee are subject to
approval by the Commission. In
addition, the PCAOB must allocate the
annual accounting support fee among
issuers and among brokers and dealers.
Section 109(b) of the Sarbanes-Oxley
Act directs the PCAOB to establish a
budget for each fiscal year in accordance
with the PCAOB’s internal procedures,
subject to approval by the Commission.
Rule 190 of Regulation P governs the
Commission’s review and approval of
PCAOB budgets and annual accounting
support fees.3 This budget rule
provides, among other things, a
timetable for the preparation and
submission of the PCAOB budget and
for Commission actions related to each
budget, a description of the information
that should be included in each budget
submission, limits on the PCAOB’s
ability to incur expenses and obligations
except as provided in the approved
budget, procedures relating to
supplemental budget requests,
requirements for the PCAOB to furnish
on a quarterly basis certain budgetrelated information, and a list of
definitions that apply to the rule and to
general discussions of PCAOB budget
matters.
In accordance with the budget rule, in
March 2016 the PCAOB provided the
Commission with a narrative
description of its program issues and
outlook for the 2017 budget year. In
response, the Commission provided the
PCAOB with economic assumptions and
budgetary guidance for the 2017 budget
year. The PCAOB subsequently
delivered a preliminary budget and
budget justification to the Commission.
Staff from the Commission’s Office of
the Chief Accountant and Office of
Financial Management dedicated a
substantial amount of time to the review
and analysis of the PCAOB’s programs,
projects and budget estimates; reviewed
the PCAOB’s estimates of 2016 actual
spending; and attended several meetings
with management and staff of the
1 15
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CFR 202.190.
20DEN1
Agencies
[Federal Register Volume 81, Number 244 (Tuesday, December 20, 2016)]
[Notices]
[Pages 92883-92885]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-30554]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-79548; File No. SR-CBOE-2016-085]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend the Fees Schedule
December 14, 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 December 1, 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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its Fees Schedule. The text of the
proposed rule change is also 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend its Fees Schedule. Specifically, the
Exchange proposes to increase the transaction fee for electronic
executions by broker-dealers, non-Trading Permit Holder (``non-TPH'')
Market-Makers, Professionals/Voluntary Professionals and Joint Back-
Offices (``JBOs'') in Penny Pilot equity, ETF, ETN and index options
(excluding Underlying Symbol List A) classes from $0.45 per contract to
$0.47 per contract. The Exchange notes that this increase is in line
with the amount assessed by another exchange for similar
transactions.\3\
---------------------------------------------------------------------------
\3\ See e.g., NASDAQ PHLX Pricing Schedule, Section II, Multiply
Listed Options Fees.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\4\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \5\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and 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
[[Page 92884]]
investors and the public interest. Additionally, the Exchange believes
the proposed rule change is consistent with Section 6(b)(4) of the
Act,\6\ which requires that Exchange rules provide for the equitable
allocation of reasonable dues, fees, and other charges among its
Trading Permit Holders and other persons using its facilities.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
\6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
Increasing the fee for electronic executions by broker-dealers,
non-TPH Market-Makers, Professionals/Voluntary Professionals and JBOs
in Penny Pilot equity, ETF, ETN and index options (excluding Underlying
Symbol List A) classes is reasonable because the proposed fee amount is
in line with the amount assessed by another exchange for similar
transactions.\7\ The Exchange believes that this proposed change is
also equitable and not unfairly discriminatory because the Exchange
will assess broker-dealers, non-TPH Market-Makers, Professionals/
Voluntary Professionals and JBOs the same electronic options
transaction fees in Penny Pilot options classes. The Exchange notes
that it does not assess Customers the electronic options transaction
fees in Penny Pilot options 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 Exchange notes that Market-Makers are assessed lower electronic
options transaction fees in Penny Pilot options as compared to
Professionals, JBOs, Broker Dealers and non-Trading Permit Holder
Market-Makers because they have obligations to the market and
regulatory requirements, which normally do not apply to other market
participants (e.g., obligations to make continuous markets). Clearing
Trading Permit Holder Proprietary orders are assessed lower options
transaction fees in Penny Pilot options because they also have
obligations, which normally do not apply to other market participants
(e.g., must have higher capital requirements, clear trades for other
market participants, must be members of OCC). Accordingly, the
differentiation between electronic transaction fees for Customers,
Market-Makers, Clearing Trading Permit Holders and other market
participants recognizes the differing obligations and contributions
made to the liquidity and trading environment on the Exchange by these
market participants.
---------------------------------------------------------------------------
\7\ See NASDAQ PHLX Pricing Schedule, Section II, Multiply
Listed Options Fees.
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that are [sic] 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 the proposed fee
increase applies only to certain market participants, the other market
participants have different obligations and different circumstances (as
described in the ``Statutory Basis'' section above). For example,
Clearing TPHs have clearing obligations that other market participants
do not have. Market-Makers have quoting obligations that other market
participants do not have. There is also a history in the options
markets of providing preferential treatment to Customers. The Exchange
does not believe that the proposed change will cause any unnecessary
burden on intermarket competition because the proposed change only
affects trading 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 \8\ and paragraph (f) of Rule 19b-4 \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 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).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. 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-2016-085 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-CBOE-2016-085. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-CBOE-2016-085, and should be
submitted on or before January 10, 2017.
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\10\ 17 CFR 200.30-3(a)(12).
[[Page 92885]]
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For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-30554 Filed 12-19-16; 8:45 am]
BILLING CODE 8011-01-P