Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Update Rule 21.1 To Adopt a New Time in Force Applicable to the Exchange's Equity Options Platform, 50705-50707 [2017-23732]
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Federal Register / Vol. 82, No. 210 / Wednesday, November 1, 2017 / Notices
sradovich on DSK3GMQ082PROD with NOTICES
disrupting its ordinary settlement cycle
(and thusly, to avoid imposing the same
disruption on Clearing Members),
thereby avoiding the need to extend the
settlement window and allowing OCC to
settle transactions in a more timely
fashion. In this regard, OCC believes the
proposed rule change is designed to
promote the prompt and accurate
clearance and settlement of securities
transactions, in accordance with the
requirements of Section 17A(b)(3)(F) of
the Act.6
Additionally, Rule 17Ad–22(e)(7)(viii)
requires that a covered clearing agency
(‘‘CCA’’) address foreseeable liquidity
shortfalls that would not be covered by
the CCA’s liquid resources and seek to
avoid unwinding, revoking, or delaying
the same-day settlement of payment
obligations.7 As stated above, OCC
believes that it could be foreseeable,
though extremely unlikely, that a bank
or securities or commodities clearing
organization may fail to make timely
settlement with OCC as the result of an
event that does not result in a loss to
OCC from the bankruptcy, insolvency,
resolution, suspension of operations or
similar event of such bank or securities
or commodities clearing organization.
The proposed rule change would
improve OCC’s ability to address such
situations by expanding OCC’s
borrowing authority to enable OCC to
borrow against the Clearing Fund in
order to avoid disrupting its ordinary
settlement cycle (and thusly, to avoid
imposing the same disruption on
Clearing Members).
The proposed rule change is not
inconsistent with the existing rules of
OCC, including any other rules
proposed to be amended.
Clearing Members and would not affect
Clearing Members’ access to OCC’s
services or disadvantage or favor any
particular user in relationship to
another user. As such, OCC believes that
the proposed changes would not have
any impact or impose any burden on
competition.
(B) Clearing Agency’s Statement on
Burden on Competition
Section 17A(b)(3)(I) of the Act 8
requires that the rules of a clearing
agency not impose any burden on
competition not necessary or
appropriate in furtherance of the
purposes of the Act. OCC does not
believe the proposed rule change would
have any impact or impose any burden
on competition. The primary purpose of
the proposed rule change is to enhance
the existing tools OCC has to address
liquidity shortfalls by expanding the
existing borrowing authority in OCC’s
By-Laws to also authorize borrowing in
the extraordinary event that OCC faces
a liquidity need in order to complete
same day settlement. The proposed rule
change would apply equally to all
Electronic Comments
• Use the Commissions Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
OCC–2017–017 on the subject line.
6 Id.
7 17
CFR 240.17Ad–22(e)(7)(viii).
8 15 U.S.C. 78q–1(b)(3)(I).
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(C) Clearing Agency’s Statement on
Comments on the Proposed Rule
Change Received From Members,
Participants or Others
Written comments were not and are
not intended to be solicited with respect
to the proposed rule change, and none
have been received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the self-regulatory organization
consents, the Commission will:
(A) By order approve or disapprove
the proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be 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:
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–OCC–2017–017. 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
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50705
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 OCC and on OCC’s Web site at
https://www.theocc.com/components/
docs/legal/rules_and_bylaws/sr_occ_17_
017.pdf.
All comments received will be posted
without change. Persons submitting
comments are cautioned that we do not
redact or edit personal identifying
information from comment submissions.
You should submit only information
that you wish to make available
publicly.
All submissions should refer to File
Number SR–OCC–2017–017 and should
be submitted on or before November 22,
2017.
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.9
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–23736 Filed 10–31–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81950; File No. SR–
BatsBZX–2017–71]
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Update Rule
21.1 To Adopt a New Time in Force
Applicable to the Exchange’s Equity
Options Platform
October 26, 2017.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
20, 2017, Cboe BZX Exchange, Inc. (the
‘‘Exchange’’) (formerly known as Bats
BZX Exchange, Inc.) filed with the
Securities and Exchange Commission
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 82, No. 210 / Wednesday, November 1, 2017 / Notices
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange has
designated this proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6)(iii)
thereunder,4 which renders it effective
upon filing with the Commission. 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 filed a proposal to
update Rule 21.1 to adopt a new Time
in Force applicable to the Exchange’s
equity options platform (‘‘BZX
Options’’).
The text of the proposed rule change
is available at the Exchange’s Web site
at www.markets.cboe.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant parts of such
statements.
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
In 2016, the Exchange and its
affiliates Bats BYX Exchange, Inc. (now
known as Cboe BYX Exchange, Inc.)
(‘‘BYX’’), Bats EDGA Exchange, Inc.
(now known as Cboe EDGA Exchange,
Inc.) (‘‘EDGA’’), and Bats EDGX
Exchange, Inc. (now known as Cboe
EDGX Exchange, Inc.) (‘‘EDGX’’)
received approval to affect a merger (the
‘‘Merger’’) of the Exchange’s indirect
parent company, Bats Global Markets,
Inc. (‘‘BGM’’), with CBOE Holdings, Inc.
(now known as Cboe Global Markets,
Inc.) (‘‘CBOE Holdings’’), the direct
parent of Chicago Board Options
3 15
4 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6)(iii).
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Exchange, Incorporated (now known as
Cboe Exchange, Inc.) (‘‘Cboe Options’’)
and C2 Options Exchange, Incorporated
(now known as Cboe C2 Exchange, Inc.)
(‘‘C2 Options’’, and together with the
Exchange, BYX, EDGA, EDGX, and Cboe
Options the ‘‘Cboe Affiliated
Exchanges’’).5 The Cboe Affiliated
Exchanges are working to align certain
system functionality, retaining only
intended differences between the Cboe
Affiliated Exchanges, in the context of a
technology migration. In the context of
such migration, the Exchange is working
to align its systems to offer certain
features currently offered by Cboe
Options and C2 Options as well as
striving to maintain consistent
technology with the options platform
operated by EDGX (‘‘EDGX Options’’).
Although the Exchange intentionally
offers certain features that differ from
those offered by its affiliates and will
continue to do so, the Exchange believes
that offering similar functionality to the
extent practicable will reduce potential
confusion for Users.
The Exchange proposes to amend
Exchange Rule 21.1, Definitions, to add
a new Time in Force, namely the time
in force of ‘‘At the Open’’ or ‘‘OPG’’.
As proposed, ‘‘At the Open’’ or
‘‘OPG’’ shall mean, for an order so
designated, an order that shall only
participate in the opening process on
the Exchange. An OPG order not
executed in the opening process will be
cancelled. The Exchange’s affiliate,
EDGX Options, recently received
approval of various rule changes,
including the adoption of a Time in
Force of OPG that is identical to the
Exchange’s proposed rule.6 The
Exchange notes that other options
exchanges also offer Times in Force
that, similar to OPG, limit an order to
participating in an exchange’s opening
process.7
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 8 in general, and furthers the
objectives of Section 6(b)(5) of the Act 9
in particular, in that it is designed to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
5 See Securities Exchange Act Release No. 79585
(December 16, 2016), 81 FR 93988 (December 22,
2016) (SR–BatsBZX–2016–68; SR–BatsBYX–2016–
29; SR–BatsEDGA–2016–24; SR–BatsEDGX–2016–
60).
6 See Securities Exchange Act Release No. 81891
(October 17, 2017) (SR–Bats–EDGX–2017–29).
7 See, e.g., C2 Rule 6.10(c)(7); ISE Rule 715(o).
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
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system, and, in general to protect
investors and the public interest. In
particular, consistent rules and
functionality between the Exchange and
its affiliated exchanges will reduce
complexity and help avoid potential
confusion by the Users of the Exchange
that are also participants on other Cboe
Affiliated Exchanges.
The Exchange believes the proposed
amendment will reduce complexity and
increase the understanding of the
Exchange’s operations for all Users of
the Exchange. In particular, by offering
the same Times in Force as EDGX
Options, the Exchange will avoid
confusion from market participants that
participate on both the Exchange and
EDGX Options. In turn, when Cboe
Options and C2 Options are migrated to
the same technology as that of the
Exchange, Users of the Exchange and
other Cboe Affiliated Exchanges will
have access to similar functionality on
all Cboe Affiliated Exchanges. As such,
the proposed rule change would foster
cooperation and coordination with
persons engaged in facilitating
transactions in securities and would
remove impediments to and perfect the
mechanism of a free and open market
and a national market system.
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 is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange notes that the proposal will
promote consistency between the
Exchange and its affiliated exchanges,
and is part of a larger technology
integration that will ultimately reduce
complexity for Users of the Exchange
that are also participants on other Cboe
Affiliated Exchanges. The Exchange
does not believe that the proposed
changes will have any direct impact on
competition. Thus, the Exchange does
not believe that the proposal creates any
significant impact on competition.
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.
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Federal Register / Vol. 82, No. 210 / Wednesday, November 1, 2017 / Notices
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
sradovich on DSK3GMQ082PROD with NOTICES
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act and Rule 19b–
4(f)(6) thereunder.10
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 11 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 12
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has asked
the Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Commission notes that the
proposed rule change is based on EDGX
Rule 21.1(f)(6) and is identical to such
rule. Thus, the Commission believes
that waiver of the operative delay is
consistent with the protection of
investors and the public because the
proposal does not present any new or
novel issues that have not been
previously considered by the
Commission. Therefore, the
Commission hereby waives the 30-day
operative delay and designates the
proposal operative upon filing.13
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 shall institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
10 17 CFR 240.19b–4(f)(6). As required under Rule
19b–4(f)(6)(iii), the Exchange provided the
Commission with written notice of its intent to file
the proposed rule change, along with a brief
description and the text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission.
11 17 CFR 240.19b–4(f)(6).
12 17 CFR 240.19b–4(f)(6)(iii).
13 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(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:
• 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–
BatsBZX–2017–71 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–BatsBZX–2017–71. 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.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–BatsBZX–2017–71 and
should be submitted on or before
November 22, 2017.
Frm 00100
Fmt 4703
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–23732 Filed 10–31–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
PO 00000
50707
Sfmt 4703
[Release No. 34–81955; File No. SR–OCC–
2017–010]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing of Proposed Rule Change
Related to The Options Clearing
Corporation’s Default Management
Policy
October 26, 2017.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
12, 2017, The Options Clearing
Corporation (‘‘OCC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared primarily by OCC. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
This proposed rule change by The
Options Clearing Corporation (‘‘OCC’’)
would formalize and update OCC’s
Default Management Policy, which
would promote compliance with
multiple requirements applicable to
OCC under Rule 17Ad–22, including
Rules 17Ad–22(e)(4)(ix) (Replenishment
of Resources) and (e)(13) (Default
Management).3 The Default
Management Policy is included as
confidential Exhibit 5.4
The proposed rule change does not
require any changes to the text of OCC’s
By-Laws or Rules. All terms with initial
capitalization that are not otherwise
defined herein have the same meaning
as set forth in the OCC By-Laws and
Rules.5
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 17 CFR 240.17Ad–22(e)(4)(ix) and (e)(13).
4 The Commission notes that Exhibit 5 is
included in the filing, not in this Notice.
5 OCC’s By-Laws and Rules can be found on
OCC’s public Web site: https://optionsclearing.com/
about/publications/bylaws.jsp.
1 15
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]]>Agencies
[Federal Register Volume 82, Number 210 (Wednesday, November 1, 2017)]
[Notices]
[Pages 50705-50707]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-23732]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-81950; File No. SR-BatsBZX-2017-71]
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Update
Rule 21.1 To Adopt a New Time in Force Applicable to the Exchange's
Equity Options Platform
October 26, 2017.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on October 20, 2017, Cboe BZX Exchange, Inc. (the ``Exchange'')
(formerly known as Bats BZX Exchange, Inc.) filed with the Securities
and Exchange Commission
[[Page 50706]]
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The Exchange
has designated this proposal as a ``non-controversial'' proposed rule
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with
the Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange filed a proposal to update Rule 21.1 to adopt a new
Time in Force applicable to the Exchange's equity options platform
(``BZX Options'').
The text of the proposed rule change is available at the Exchange's
Web site at www.markets.cboe.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant parts of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
In 2016, the Exchange and its affiliates Bats BYX Exchange, Inc.
(now known as Cboe BYX Exchange, Inc.) (``BYX''), Bats EDGA Exchange,
Inc. (now known as Cboe EDGA Exchange, Inc.) (``EDGA''), and Bats EDGX
Exchange, Inc. (now known as Cboe EDGX Exchange, Inc.) (``EDGX'')
received approval to affect a merger (the ``Merger'') of the Exchange's
indirect parent company, Bats Global Markets, Inc. (``BGM''), with CBOE
Holdings, Inc. (now known as Cboe Global Markets, Inc.) (``CBOE
Holdings''), the direct parent of Chicago Board Options Exchange,
Incorporated (now known as Cboe Exchange, Inc.) (``Cboe Options'') and
C2 Options Exchange, Incorporated (now known as Cboe C2 Exchange, Inc.)
(``C2 Options'', and together with the Exchange, BYX, EDGA, EDGX, and
Cboe Options the ``Cboe Affiliated Exchanges'').\5\ The Cboe Affiliated
Exchanges are working to align certain system functionality, retaining
only intended differences between the Cboe Affiliated Exchanges, in the
context of a technology migration. In the context of such migration,
the Exchange is working to align its systems to offer certain features
currently offered by Cboe Options and C2 Options as well as striving to
maintain consistent technology with the options platform operated by
EDGX (``EDGX Options''). Although the Exchange intentionally offers
certain features that differ from those offered by its affiliates and
will continue to do so, the Exchange believes that offering similar
functionality to the extent practicable will reduce potential confusion
for Users.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 79585 (December 16,
2016), 81 FR 93988 (December 22, 2016) (SR-BatsBZX-2016-68; SR-
BatsBYX-2016-29; SR-BatsEDGA-2016-24; SR-BatsEDGX-2016-60).
---------------------------------------------------------------------------
The Exchange proposes to amend Exchange Rule 21.1, Definitions, to
add a new Time in Force, namely the time in force of ``At the Open'' or
``OPG''.
As proposed, ``At the Open'' or ``OPG'' shall mean, for an order so
designated, an order that shall only participate in the opening process
on the Exchange. An OPG order not executed in the opening process will
be cancelled. The Exchange's affiliate, EDGX Options, recently received
approval of various rule changes, including the adoption of a Time in
Force of OPG that is identical to the Exchange's proposed rule.\6\ The
Exchange notes that other options exchanges also offer Times in Force
that, similar to OPG, limit an order to participating in an exchange's
opening process.\7\
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 81891 (October 17,
2017) (SR-Bats-EDGX-2017-29).
\7\ See, e.g., C2 Rule 6.10(c)(7); ISE Rule 715(o).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \8\ in general, and furthers the objectives of Section
6(b)(5) of the Act \9\ in particular, in that it is designed to promote
just and equitable principles of trade, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general to protect investors and the public interest.
In particular, consistent rules and functionality between the Exchange
and its affiliated exchanges will reduce complexity and help avoid
potential confusion by the Users of the Exchange that are also
participants on other Cboe Affiliated Exchanges.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes the proposed amendment will reduce complexity
and increase the understanding of the Exchange's operations for all
Users of the Exchange. In particular, by offering the same Times in
Force as EDGX Options, the Exchange will avoid confusion from market
participants that participate on both the Exchange and EDGX Options. In
turn, when Cboe Options and C2 Options are migrated to the same
technology as that of the Exchange, Users of the Exchange and other
Cboe Affiliated Exchanges will have access to similar functionality on
all Cboe Affiliated Exchanges. As such, the proposed rule change would
foster cooperation and coordination with persons engaged in
facilitating transactions in securities and would remove impediments to
and perfect the mechanism of a free and open market and a national
market system.
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 is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange notes that the
proposal will promote consistency between the Exchange and its
affiliated exchanges, and is part of a larger technology integration
that will ultimately reduce complexity for Users of the Exchange that
are also participants on other Cboe Affiliated Exchanges. The Exchange
does not believe that the proposed changes will have any direct impact
on competition. Thus, the Exchange does not believe that the proposal
creates any significant impact on competition.
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.
[[Page 50707]]
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6) thereunder.\10\
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\10\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \11\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \12\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has asked the Commission to waive the 30-day operative delay so that
the proposal may become operative immediately upon filing. The
Commission notes that the proposed rule change is based on EDGX Rule
21.1(f)(6) and is identical to such rule. Thus, the Commission believes
that waiver of the operative delay is consistent with the protection of
investors and the public because the proposal does not present any new
or novel issues that have not been previously considered by the
Commission. Therefore, the Commission hereby waives the 30-day
operative delay and designates the proposal operative upon filing.\13\
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\11\ 17 CFR 240.19b-4(f)(6).
\12\ 17 CFR 240.19b-4(f)(6)(iii).
\13\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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 shall 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 [email protected]. Please include
File Number SR-BatsBZX-2017-71 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-BatsBZX-2017-71. 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. Persons submitting
comments are cautioned that we do not redact or edit personal
identifying information from comment submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File Number SR-BatsBZX-2017-71 and should
be submitted on or before November 22, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-23732 Filed 10-31-17; 8:45 am]
BILLING CODE 8011-01-P
