Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule, 11988-11990 [2017-03805]
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11988
Federal Register / Vol. 82, No. 37 / Monday, February 27, 2017 / Notices
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–NSX–2017–05. 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 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–NSX–
2017–05, and should be submitted on or
before March 20, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–03800 Filed 2–24–17; 8:45 am]
mstockstill on DSK3G9T082PROD with NOTICES
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–80086; File No. SR–CBOE–
2017–015]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the Fees
Schedule
February 22, 2017.
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 February
10, 2017, 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 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. The Exchange is
changing fees for functionality related to
1 15
14 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
20:23 Feb 24, 2017
2 17
Jkt 241001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00098
Fmt 4703
Sfmt 4703
its PULSe workstation. The fees herein
will be effective on February 10, 2017.
By way of background, the PULSe
workstation is a front-end order entry
system designed for use with respect to
orders that may be sent to the trading
systems of the Exchange. Exchange
Trading Permit Holders (‘‘TPHs’’) may
also make workstations available to
their customers, which may include
TPHs, non-broker dealer public
customers and non-TPH broker dealers.
Drop Copies
Financial Information eXchange
(‘‘FIX’’) language-based connectivity,
upon request, provides customers (both
TPH and non-TPH) of TPHs that are
brokers and PULSe users (‘‘PULSe
brokers’’) with the ability to receive
‘‘drop-copy’’ order fill messages from
their PULSe brokers. These fill messages
allow customers to update positions,
risk calculations and streamline backoffice functions.
The Exchange is proposing reducing
the monthly fee to be assessed on TPHs
who are either receiving or sending drop
copies via a PULSe workstation.
Whether the drop copy sender or
receiver is assessed the fee is dependent
upon whether the customer receiving
the drop copies is a TPH or non-TPH.
If a customer receiving drop copies is
a TPH, that TPH customer (the receiving
TPH) will now be charged a fee of $425
per month (down from $1000 per
month), per PULSe broker from whom
it receives drop copies via PULSe. For
example, if TPH customer A receives
drop copies from each of PULSe broker
A, PULSe broker B, and PULSe broker
C (all of which are TPHs), TPH A (the
receiving TPH) will be charged a fee of
$1275 per month for receiving drop
copies via PULSe from PULSe brokers
A, B and C (the sending TPHs).
If a customer receiving drop copies is
a non-TPH, the PULSe broker (the
sending TPH) who sends drop copies
via PULSe to that customer will now be
charged a fee of $400 per month (down
from $500 per month). If that PULSe
broker sends drop copies via PULSe to
multiple non-TPH customers, the
PULSe broker will be charged the fee for
each customer. For example, if PULSe
broker A sends drop copies via its
PULSe workstation to each of non-TPH
customer A, non-TPH customer B and
non-TPH customer C, PULSe broker A
(the sending TPH) will be charged a fee
of $1200 per month for drop copies it
sends via PULSe to non-TPH customers
A, B and C (the receiving non-TPHs).
E:\FR\FM\27FEN1.SGM
27FEN1
Federal Register / Vol. 82, No. 37 / Monday, February 27, 2017 / Notices
‘‘OATS Reports’’ to ‘‘Equity Order
Reports’’
The Exchange is proposing to change
the name of its fee relating to OATS
Reports to ‘‘Equity Order Reports’’. The
Equity Order Reports related to this fee
are provided for PULSe users’ own use.
Electing to receive these reports does
not currently and will not fulfill any
PULSe users’ OATS reporting
obligations. The change will eliminate
any potential confusion as to whether
the Exchange itself or the PULSe system
is able to fulfill any OATS reporting
obligation for a PULSe user. Neither the
content of the reports nor the manner in
which they are received from PULSe is
changing.
mstockstill on DSK3G9T082PROD with NOTICES
SPX Liquidity Provider Sliding Scale
Lastly, the Exchange proposes to add
a reference to Footnote 41 in the SPX
Liquidity Provider Sliding Scale (‘‘SPX
LP Sliding Scale’’) table. Particularly,
the Exchange notes that when it adopted
the SPX LP Sliding Scale, it had
appended a reference to Footnote 41 in
the rate table for Underlying Symbol
List A products under the Market-Maker
fees section for SPX, SPXW and SPXPM
(which references the SPX LP Sliding
Scale), but had inadvertently not
appended the Footnote to the new SPX
LP Sliding Scale table itself. As such,
the Exchange proposes to append
Footnote 41 to the SPX Liquidity
Provider Sliding Scale Table to clarify
its applicability. The Exchange notes no
substantive changes are being made by
this change, rather the Exchange merely
seeks to add further clarification and
alleviate potential confusion.
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
3 15
4 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
VerDate Sep<11>2014
20:23 Feb 24, 2017
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.
The Exchange believes that lowering
the $1000 per month fee to $425 per
month on a TPH receiving drop copies
from PULSe is reasonable because the
reduced fee will continue to allow the
Exchange to monitor, develop and
implement upgrade, maintain and
customize PULSe to ensure the TPH
customer receives timely and accurate
drop copies while also reducing TPH
customers’ costs. The Exchange believes
the fee is equitable and not unfairly
discriminatory because the monthly fee
is assessed to any TPH electing to
receive drop copies from a PULSe
broker. Use of the drop copy
functionality by a TPH customer is
voluntary.
The Exchange believes that lowering
the $500 per month fee to $400 per
month on a TPH sending drop copies
from PULSe to a non-TPH customer is
reasonable because the reduced fee will
continue to allow the Exchange to
monitor, develop and implement
upgrades, maintain and customize
PULSe to ensure a non-TPH customer
receives timely and accurate drop
copies while also reducing the sending
TPH’s costs. The Exchange believes the
fee is equitable and not unfairly
discriminatory because the monthly fee
is assessed equally to any TPH sending
drop copies to its non-TPH customers.
The Exchange believes that assessing a
TPH sending drop copies to a non-TPH
a monthly fee of $400, as opposed to the
$425 per month rate assessed to TPH
customers receiving drop copies from
PULSe, is reasonable, equitable, and not
unfairly discriminatory. Specially, the
lower rates are designed to encourage
non-TPH market participants to interact
with the Exchange, which will
accordingly attract more volume and
liquidity to the Exchange and benefit all
Exchange participants through
increased opportunities to trade. Use of
the drop copy functionality by a nonTPH customer is voluntary.
The Exchange believes that changing
the name of the ‘‘OATS reports’’ fee to
‘‘Equity Order Reports’’ alleviates
potential confusion and maintains
clarity in the Fees Schedule, which
removes impediments to and perfects
the mechanism of a free and open
market and a national market system,
and, in general, protects investors and
the public interest.
The Exchange believes adding a
reference to Footnote 41 in the SPX LP
Sliding Scale table alleviates potential
confusion and maintains clarity in the
Fees Schedule, which removes
impediments to and perfects the
mechanism of a free and open market
and a national market system, and, in
general, protects investors and the
public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule changes will impose
any burdens 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 the proposed PULSe-related
fees relate to optional reports and/or
functionality and are assessed equally
on PULSe users or TPH electing to use
the functionality and/or receive the
reports. The Exchange does not believe
that the proposed change will cause any
unnecessary burden on intermarket
competition because the proposed fees
relate to use of an Exchange-provided
order entry system. To the extent that
any proposed change makes the
Exchange a more attractive marketplace
for market participants at other
exchanges, such market participants are
welcome to become Exchange 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 6 and paragraph (f) of Rule
19b–4 7 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
5 15
Jkt 241001
PO 00000
U.S.C. 78f(b)(4).
Frm 00099
Fmt 4703
7 17
Sfmt 4703
11989
E:\FR\FM\27FEN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
27FEN1
11990
Federal Register / Vol. 82, No. 37 / Monday, February 27, 2017 / Notices
Commission takes such action, the
Commission will institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
[FR Doc. 2017–03805 Filed 2–24–17; 8:45 am]
IV. Solicitation of Comments
BILLING CODE 8011–01–P
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–2017–015 on the subject line.
Paper Comments
mstockstill on DSK3G9T082PROD with NOTICES
• 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–2017–015. 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–
2017–015 and should be submitted on
or before March 20, 2017.
VerDate Sep<11>2014
20:23 Feb 24, 2017
Jkt 241001
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Eduardo A. Aleman,
Assistant Secretary.
SMALL BUSINESS ADMINISTRATION
Data Collection Available for Public
Comments
60-day notice and request for
comments.
ACTION:
The Small Business
Administration (SBA) intends to request
approval, from the Office of
Management and Budget (OMB) for the
collection of information described
below. The Paperwork Reduction Act
(PRA) of 1995, 44 U.S.C. Chapter 35
requires federal agencies to publish a
notice in the Federal Register
concerning each proposed collection of
information before submission to OMB,
and to allow 60 days for public
comment in response to the notice. This
notice complies with that requirement.
DATES: Submit comments on or before
April 28, 2017.
ADDRESSES: Send all comments to Mary
Frias, Loan Specialist, Office of
Financial Assistance, Small Business
Administration, 409 3rd Street SW.,
Washington, DC 20416.
FOR FURTHER INFORMATION CONTACT:
Mary Frias, Loan Specialist, Office of
Financial Assistance, mary.frias@
sba.gov, 202–401–8234, or Curtis B.
Rich, Management Analyst, 202–205–
7030, curtis.rich@sba.gov.
SUPPLEMENTARY INFORMATION: The Small
Business Administration requires
information to be disclosed to the buyer
when a secondary market loan is
transferred from one investor to another.
This information includes a constant
annual prepayment rate based upon the
seller’s analysis pf prepayment histories
of SBA guaranteed loans with similar
maturities. Additionally, information is
required on the terms. conditions and
yield of the security being transferred.
SUMMARY:
Solicitation of Public Comments
SBA is requesting comments on (a)
Whether the collection of information is
necessary for the agency to properly
perform its functions; (b) whether the
burden estimates are accurate; (c)
whether there are ways to minimize the
burden, including through the use of
automated techniques or other forms of
8 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00100
Fmt 4703
Sfmt 4703
information technology; and (d) whether
there are ways to enhance the quality,
utility, and clarity of the information.
Summary of Information Collection
Title: Form of Detached Assignment
for U.S. Small Business Administration
Loan Pool or Guaranteed Interest
Certificate.
Description of Respondents:
Secondary Market Loan Programs.
Form Number: SBA Form 1088.
Total Estimated Annual Responses:
5,000.
Total Estimated Annual Hour Burden:
7,500.
Curtis B. Rich,
Management Analyst.
[FR Doc. 2017–03750 Filed 2–24–17; 8:45 am]
BILLING CODE 8025–01–P
SMALL BUSINESS ADMINISTRATION
Data Collection Available for Public
Comments
60-Day notice and request for
comments.
ACTION:
The Small Business
Administration (SBA) intends to request
approval, from the Office of
Management and Budget (OMB) for the
collection of information described
below. The Paperwork Reduction Act
(PRA) of 1995, requires federal agencies
to publish a notice in the Federal
Register concerning each proposed
collection of information before
submission to OMB, and to allow 60
days for public comment in response to
the notice. This notice complies with
that requirement.
DATES: Submit comments on or before
April 28, 2017.
ADDRESSES: Send all comments to Mary
Frias, Loan Specialist, Office of
Financial Assistance, Small Business
Administration, 409 3rd Street SW.,
Washington, DC 20416.
FOR FURTHER INFORMATION CONTACT:
Mary Frias, Loan Specialist, Office of
Financial Assistance, mary.frias@
sba.gov, 202–401–8234, or Curtis B.
Rich, Management Analyst, 202–205–
7030, curtis.rich@sba.gov;
SUPPLEMENTARY INFORMATION: The
purpose of this data collection is to
monitor loan payment information on
SBA loan portfolios arising from the
Immediate Disaster Assistance Program.
This exercise will involve monthly
updates on the payments received by
lenders from small businesses that have
received funding through this guaranty
program. The Agency looks to better
manage the program’s effectiveness by
SUMMARY:
E:\FR\FM\27FEN1.SGM
27FEN1
Agencies
[Federal Register Volume 82, Number 37 (Monday, February 27, 2017)]
[Notices]
[Pages 11988-11990]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-03805]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-80086; File No. SR-CBOE-2017-015]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend the Fees Schedule
February 22, 2017.
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 February 10, 2017, 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 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. The Exchange is
changing fees for functionality related to its PULSe workstation. The
fees herein will be effective on February 10, 2017.
By way of background, the PULSe workstation is a front-end order
entry system designed for use with respect to orders that may be sent
to the trading systems of the Exchange. Exchange Trading Permit Holders
(``TPHs'') may also make workstations available to their customers,
which may include TPHs, non-broker dealer public customers and non-TPH
broker dealers.
Drop Copies
Financial Information eXchange (``FIX'') language-based
connectivity, upon request, provides customers (both TPH and non-TPH)
of TPHs that are brokers and PULSe users (``PULSe brokers'') with the
ability to receive ``drop-copy'' order fill messages from their PULSe
brokers. These fill messages allow customers to update positions, risk
calculations and streamline back-office functions.
The Exchange is proposing reducing the monthly fee to be assessed
on TPHs who are either receiving or sending drop copies via a PULSe
workstation. Whether the drop copy sender or receiver is assessed the
fee is dependent upon whether the customer receiving the drop copies is
a TPH or non-TPH.
If a customer receiving drop copies is a TPH, that TPH customer
(the receiving TPH) will now be charged a fee of $425 per month (down
from $1000 per month), per PULSe broker from whom it receives drop
copies via PULSe. For example, if TPH customer A receives drop copies
from each of PULSe broker A, PULSe broker B, and PULSe broker C (all of
which are TPHs), TPH A (the receiving TPH) will be charged a fee of
$1275 per month for receiving drop copies via PULSe from PULSe brokers
A, B and C (the sending TPHs).
If a customer receiving drop copies is a non-TPH, the PULSe broker
(the sending TPH) who sends drop copies via PULSe to that customer will
now be charged a fee of $400 per month (down from $500 per month). If
that PULSe broker sends drop copies via PULSe to multiple non-TPH
customers, the PULSe broker will be charged the fee for each customer.
For example, if PULSe broker A sends drop copies via its PULSe
workstation to each of non-TPH customer A, non-TPH customer B and non-
TPH customer C, PULSe broker A (the sending TPH) will be charged a fee
of $1200 per month for drop copies it sends via PULSe to non-TPH
customers A, B and C (the receiving non-TPHs).
[[Page 11989]]
``OATS Reports'' to ``Equity Order Reports''
The Exchange is proposing to change the name of its fee relating to
OATS Reports to ``Equity Order Reports''. The Equity Order Reports
related to this fee are provided for PULSe users' own use. Electing to
receive these reports does not currently and will not fulfill any PULSe
users' OATS reporting obligations. The change will eliminate any
potential confusion as to whether the Exchange itself or the PULSe
system is able to fulfill any OATS reporting obligation for a PULSe
user. Neither the content of the reports nor the manner in which they
are received from PULSe is changing.
SPX Liquidity Provider Sliding Scale
Lastly, the Exchange proposes to add a reference to Footnote 41 in
the SPX Liquidity Provider Sliding Scale (``SPX LP Sliding Scale'')
table. Particularly, the Exchange notes that when it adopted the SPX LP
Sliding Scale, it had appended a reference to Footnote 41 in the rate
table for Underlying Symbol List A products under the Market-Maker fees
section for SPX, SPXW and SPXPM (which references the SPX LP Sliding
Scale), but had inadvertently not appended the Footnote to the new SPX
LP Sliding Scale table itself. As such, the Exchange proposes to append
Footnote 41 to the SPX Liquidity Provider Sliding Scale Table to
clarify its applicability. The Exchange notes no substantive changes
are being made by this change, rather the Exchange merely seeks to add
further clarification and alleviate potential confusion.
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).
---------------------------------------------------------------------------
The Exchange believes that lowering the $1000 per month fee to $425
per month on a TPH receiving drop copies from PULSe is reasonable
because the reduced fee will continue to allow the Exchange to monitor,
develop and implement upgrade, maintain and customize PULSe to ensure
the TPH customer receives timely and accurate drop copies while also
reducing TPH customers' costs. The Exchange believes the fee is
equitable and not unfairly discriminatory because the monthly fee is
assessed to any TPH electing to receive drop copies from a PULSe
broker. Use of the drop copy functionality by a TPH customer is
voluntary.
The Exchange believes that lowering the $500 per month fee to $400
per month on a TPH sending drop copies from PULSe to a non-TPH customer
is reasonable because the reduced fee will continue to allow the
Exchange to monitor, develop and implement upgrades, maintain and
customize PULSe to ensure a non-TPH customer receives timely and
accurate drop copies while also reducing the sending TPH's costs. The
Exchange believes the fee is equitable and not unfairly discriminatory
because the monthly fee is assessed equally to any TPH sending drop
copies to its non-TPH customers. The Exchange believes that assessing a
TPH sending drop copies to a non-TPH a monthly fee of $400, as opposed
to the $425 per month rate assessed to TPH customers receiving drop
copies from PULSe, is reasonable, equitable, and not unfairly
discriminatory. Specially, the lower rates are designed to encourage
non-TPH market participants to interact with the Exchange, which will
accordingly attract more volume and liquidity to the Exchange and
benefit all Exchange participants through increased opportunities to
trade. Use of the drop copy functionality by a non-TPH customer is
voluntary.
The Exchange believes that changing the name of the ``OATS
reports'' fee to ``Equity Order Reports'' alleviates potential
confusion and maintains clarity in the Fees Schedule, which removes
impediments to and perfects the mechanism of a free and open market and
a national market system, and, in general, protects investors and the
public interest.
The Exchange believes adding a reference to Footnote 41 in the SPX
LP Sliding Scale table alleviates potential confusion and maintains
clarity in the Fees Schedule, which removes impediments to and perfects
the mechanism of a free and open market and a national market system,
and, in general, protects investors and the public interest.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule changes will
impose any burdens 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 the proposed PULSe-
related fees relate to optional reports and/or functionality and are
assessed equally on PULSe users or TPH electing to use the
functionality and/or receive the reports. The Exchange does not believe
that the proposed change will cause any unnecessary burden on
intermarket competition because the proposed fees relate to use of an
Exchange-provided order entry system. To the extent that any proposed
change makes the Exchange a more attractive marketplace for market
participants at other exchanges, such market participants are welcome
to become Exchange 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 \6\ and paragraph (f) of Rule 19b-4 \7\
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
[[Page 11990]]
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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\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 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-2017-015 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-2017-015. 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-2017-015 and should be
submitted on or before March 20, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-03805 Filed 2-24-17; 8:45 am]
BILLING CODE 8011-01-P