Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule, 28150-28152 [2017-12766]
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28150
Federal Register / Vol. 82, No. 117 / Tuesday, June 20, 2017 / Notices
sradovich on DSK3GMQ082PROD with NOTICES
and volume discovery processes. In
particular, the proposed changes to
footnote 8 are intended to further
incentivize Members to send increased
order flow to the Exchange in an effort
to qualify for the enhanced rebates made
available by the tiers, which in turn,
contributes to the growth of the
Exchange. The Exchange also believes
the rebate associate with each tier is
reasonable as they continue to reflect
the difficultly in achieving the
corresponding tier. These incentives
remain reasonably related to the value
to the Exchange’s market quality
associated with higher levels of market
activity, including liquidity provision
and the introduction of higher volumes
of orders into the price and volume
discovery processes. The proposed
changes to the tiered pricing structure
are not unfairly discriminatory because
they will apply equally to all Members.
Lastly, the Exchange believes that
eliminating Tier 2 under footnote 2,
Tiers 1 and 3 under footnote 10, and the
Cross Asset Tier under footnote 14 is
reasonable, fair, and equitable because
these tiers were not providing the
desired results of incentivizing
Members to increase their participation
on the Exchange. As such, the Exchange
also believes that the proposed
elimination of these tiers would be nondiscriminatory in that they currently
apply equally to all Members and, upon
elimination, would no longer be
available to any Members. Further, their
elimination could allow the Exchange to
explore other pricing mechanisms such
as those described herein, in which it
may enhance market quality for all
Members.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange believes the proposed
amendment to its fee schedule would
not impose any burden on competition
that is not necessary or appropriate in
furtherance of the purposes of the Act.
The Exchange does not believe that the
proposed changes represent a significant
departure from previous pricing offered
by the Exchange or pricing offered by
the Exchange’s competitors.
Additionally, Members may opt to
disfavor the Exchange’s pricing if they
believe that alternatives offer them
better value. Accordingly, the Exchange
does not believe that the proposed
changes will impair the ability of
Members or competing venues to
maintain their competitive standing in
the financial markets. The Exchange
does not believe that the proposed
changes to the Exchange’s standard fees,
rebates and tiered pricing structure
burdens competition, but instead,
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18:01 Jun 19, 2017
Jkt 241001
enhances competition as it is intended
to increase the competitiveness of the
Exchange.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any written
comments from members or other
interested parties.
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 26 and paragraph (f) of Rule
19b–4 thereunder.27 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.
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 rulecomments@sec.gov. Please include File
Number SR–BatsBZX–2017–41 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–BatsBZX–2017–41. 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–
BatsBZX–2017–41 and should be
submitted on or before July 11, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.28
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–12760 Filed 6–19–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–80925; File No. SR–CBOE–
2017–047]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the Fees
Schedule
June 14, 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 June 1,
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.
28 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
26 15
U.S.C. 78s(b)(3)(A).
27 17 CFR 240.19b–4(f).
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1 15
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E:\FR\FM\20JNN1.SGM
20JNN1
Federal Register / Vol. 82, No. 117 / Tuesday, June 20, 2017 / Notices
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.
sradovich on DSK3GMQ082PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend its
Fees Schedule. Specifically, the
Exchange proposes to make an
amendment to its rebate program for
Floor Broker Trading Permits. By way of
background, Footnote 25, which governs
rebates on Floor Broker Trading Permits,
currently provides that any Floor Broker
that executes a certain average of
customer open-outcry contracts per day
over the course of a calendar month in
all underlying symbols excluding
Underlying Symbol List A (except RLG,
RLV, RUI, AWDE, FTEM, FXTM and
UKXM), DJX, XSP, XSPAM and
subcabinet trades (‘‘Qualifying
Symbols’’), will receive a rebate on that
TPH’s Floor Broker Trading Permit fees.
Particularly, any Floor Broker Trading
Permit Holder (‘‘TPH’’) that executes an
average of 15,000 customer (origin code
‘‘C’’) open-outcry contracts per day over
the course of a calendar month in
Qualifying Symbols will receive a rebate
of $9,000 on that TPH’s Floor Broker
Trading Permit fees. Additionally, any
Floor Broker TPH that executes an
average of 25,000 customer open-outcry
contracts per day over the course of a
calendar month in Qualifying Symbols
will receive a rebate of $14,000 on that
TPH’s Floor Broker Trading Permit fees.
The Exchange proposes to provide that
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18:01 Jun 19, 2017
Jkt 241001
Professional Customers and Voluntary
Professionals (‘‘Professional
Customers’’) (origin code ‘‘W’’) orders
would also count towards the qualifying
volume thresholds. The Exchange
believes the inclusion of Professional
Customer orders in the qualifying
thresholds will encourage Floor Brokers
to execute more Professional Customer
orders.
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.
The Exchange believes that permitting
Professional Customer orders to count
towards the qualifying volume
thresholds for the Floor Broker Trading
Permit rebates is reasonable because it
will allow Floor Brokers to more easily
reach the qualifying volume thresholds
(and thereafter pay lower Floor Broker
Trading Permit fees). The Exchange
believes the proposed change is
equitable and not unfairly
discriminatory because it applies to
qualifying Floor Brokers equally and
because Floor Brokers serve an
important function in facilitating the
execution of orders via open outcry,
which as a price-improvement
mechanism, the Exchange wishes to
encourage and support. The Exchange
also notes that, while only Customer
and Professional Customer orders would
count towards the qualifying thresholds,
3 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
5 15 U.S.C. 78f(b)(4).
4 15
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Fmt 4703
Sfmt 4703
28151
an increase in Customer and
Professional Customer order flow would
bring greater volume and liquidity,
which benefits all market participants
by providing more trading opportunities
and tighter spreads. Moreover, like
Customers, Professional Customers are
non-TPH, non-broker dealers and have
historically also been treated similar as
customers for certain programs. Indeed,
the Exchange notes that incentive
programs based on Customer and
Professional volume already exist
elsewhere within the industry.6
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 the proposed change
benefits Floor Broker TPHs that reach
the qualifying volume thresholds, Floor
Brokers serve an important function in
facilitating the execution of orders via
open outcry, which as a priceimprovement mechanism, the Exchange
wishes to encourage and support.
Further, the proposed change is
designed to encourage the execution of
more Professional Customer orders,
which volume creates greater trading
opportunities that benefit all market
participants. The Exchange does not
believe that the proposed rule change
will impose any burden on intermarket
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act because the
proposed change only affects trading on
CBOE. To the extent that the proposed
change makes 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.
6 See e.g., NYSE Arca Options Fees and Charges,
Customer and Professional Customer Incentive
Program and Customer and Professional Customer
Posting Credit Tiers in Penny and Non Penny Pilot
Issues.
E:\FR\FM\20JNN1.SGM
20JNN1
28152
Federal Register / Vol. 82, No. 117 / Tuesday, June 20, 2017 / Notices
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 7 and paragraph (f) of Rule
19b–4 8 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:
sradovich on DSK3GMQ082PROD with NOTICES
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–2017–047 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–2017–047. 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
7 15
8 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
VerDate Sep<11>2014
18:01 Jun 19, 2017
Jkt 241001
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–
2017–047 and should be submitted on
or before July 11, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–12766 Filed 6–19–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–80935; File No. SR–
NYSEArca–2017–36]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Designation of a
Longer Period for Commission Action
on a Proposed Rule Change To Adopt
a New NYSE Arca Equities Rule 8.900
and To List and Trade Shares of the
Royce Pennsylvania ETF, Royce
Premier ETF, and Royce Total Return
ETF Under Proposed NYSE Arca
Equities Rule 8.900
comment letters on the proposed rule
change.4
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
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 June 18, 2017.
The Commission is extending this 45day 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 and the comment letters.
Accordingly, the Commission, pursuant
to Section 19(b)(2) of the Act,6
designates August 2, 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–NYSEArca–2017–36).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Eduardo A. Aleman,
Assistant Secretary.
June 15, 2017.
[FR Doc. 2017–12885 Filed 6–19–17; 8:45 am]
On April 14, 2017, NYSE Arca, Inc.
(‘‘Exchange’’ or ‘‘NYSE Arca’’) 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 to adopt new NYSE Arca
Equities Rule 8.900 to permit it to list
and trade Managed Portfolio Shares.
The Exchange also proposed to list and
trade shares of Royce Pennsylvania ETF,
Royce Premier ETF, and Royce Total
Return ETF under proposed NYSE Arca
Equities Rule 8.900. The proposed rule
change was published for comment in
the Federal Register on May 4, 2017.3
The Commission has received three
BILLING CODE 8011–01–P
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 80553
(April 28, 2017), 82 FR 20932.
1 15
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Fmt 4703
Sfmt 9990
4 See letters from: (1) Gary Gastineau, President,
ETF Consultants.com, Inc., dated May 24, 2017; (2)
Todd J. Broms, Chief Executive Officer, Broms &
Company LLC, dated May 25, 2017; and (3) James
Angel, Associate Professor of Finance, Georgetown
University, McDonough School of Business, dated
May 25, 2017. The comment letters are available at
https://www.sec.gov/comments/sr-nysearca-201736/nysearca201736.htm.
5 15 U.S.C. 78s(b)(2).
6 Id.
7 17 CFR 200.30–3(a)(31).
E:\FR\FM\20JNN1.SGM
20JNN1
Agencies
[Federal Register Volume 82, Number 117 (Tuesday, June 20, 2017)]
[Notices]
[Pages 28150-28152]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-12766]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-80925; File No. SR-CBOE-2017-047]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend the Fees Schedule
June 14, 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 June 1, 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.
---------------------------------------------------------------------------
[[Page 28151]]
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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend its Fees Schedule. Specifically, the
Exchange proposes to make an amendment to its rebate program for Floor
Broker Trading Permits. By way of background, Footnote 25, which
governs rebates on Floor Broker Trading Permits, currently provides
that any Floor Broker that executes a certain average of customer open-
outcry contracts per day over the course of a calendar month in all
underlying symbols excluding Underlying Symbol List A (except RLG, RLV,
RUI, AWDE, FTEM, FXTM and UKXM), DJX, XSP, XSPAM and subcabinet trades
(``Qualifying Symbols''), will receive a rebate on that TPH's Floor
Broker Trading Permit fees. Particularly, any Floor Broker Trading
Permit Holder (``TPH'') that executes an average of 15,000 customer
(origin code ``C'') open-outcry contracts per day over the course of a
calendar month in Qualifying Symbols will receive a rebate of $9,000 on
that TPH's Floor Broker Trading Permit fees. Additionally, any Floor
Broker TPH that executes an average of 25,000 customer open-outcry
contracts per day over the course of a calendar month in Qualifying
Symbols will receive a rebate of $14,000 on that TPH's Floor Broker
Trading Permit fees. The Exchange proposes to provide that Professional
Customers and Voluntary Professionals (``Professional Customers'')
(origin code ``W'') orders would also count towards the qualifying
volume thresholds. The Exchange believes the inclusion of Professional
Customer orders in the qualifying thresholds will encourage Floor
Brokers to execute more Professional Customer orders.
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 permitting Professional Customer orders
to count towards the qualifying volume thresholds for the Floor Broker
Trading Permit rebates is reasonable because it will allow Floor
Brokers to more easily reach the qualifying volume thresholds (and
thereafter pay lower Floor Broker Trading Permit fees). The Exchange
believes the proposed change is equitable and not unfairly
discriminatory because it applies to qualifying Floor Brokers equally
and because Floor Brokers serve an important function in facilitating
the execution of orders via open outcry, which as a price-improvement
mechanism, the Exchange wishes to encourage and support. The Exchange
also notes that, while only Customer and Professional Customer orders
would count towards the qualifying thresholds, an increase in Customer
and Professional Customer order flow would bring greater volume and
liquidity, which benefits all market participants by providing more
trading opportunities and tighter spreads. Moreover, like Customers,
Professional Customers are non-TPH, non-broker dealers and have
historically also been treated similar as customers for certain
programs. Indeed, the Exchange notes that incentive programs based on
Customer and Professional volume already exist elsewhere within the
industry.\6\
---------------------------------------------------------------------------
\6\ See e.g., NYSE Arca Options Fees and Charges, Customer and
Professional Customer Incentive Program and Customer and
Professional Customer Posting Credit Tiers in Penny and Non Penny
Pilot Issues.
---------------------------------------------------------------------------
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 the proposed
change benefits Floor Broker TPHs that reach the qualifying volume
thresholds, Floor Brokers serve an important function in facilitating
the execution of orders via open outcry, which as a price-improvement
mechanism, the Exchange wishes to encourage and support. Further, the
proposed change is designed to encourage the execution of more
Professional Customer orders, which volume creates greater trading
opportunities that benefit all market participants. The Exchange does
not believe that the proposed rule change will impose any burden on
intermarket competition that is not necessary or appropriate in
furtherance of the purposes of the Act because the proposed change only
affects trading on CBOE. To the extent that the proposed change makes
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.
[[Page 28152]]
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 \7\ and paragraph (f) of Rule 19b-4 \8\
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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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 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-2017-047 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-2017-047. 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-2017-047 and should be
submitted on or before July 11, 2017.
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\9\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-12766 Filed 6-19-17; 8:45 am]
BILLING CODE 8011-01-P