Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 24.6, Days and Hours of Business, 19365-19367 [2018-09257]
Download as PDF
<![CDATA[
19365
Federal Register / Vol. 83, No. 85 / Wednesday, May 2, 2018 / Notices
Authority: 5 U.S.C. 3301 and 3302; E.O.
10577, 3 CFR, 1954–1958 Comp., p.218.
‘‘Exchange’’ or ‘‘Cboe Options’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II, below, which Items have
been prepared by the Exchange. The
Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of
the Act 3 and Rule 19b–4(f)(6)
thereunder.4 The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
Office of Personnel Management.
Jeff T.H. Pon,
Director.
[FR Doc. 2018–09302 Filed 5–1–18; 8:45 am]
BILLING CODE 6325–39–P
POSTAL SERVICE
Product Change—Priority Mail
Express, Priority Mail, & First-Class
Package Service Negotiated Service
Agreement
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Postal ServiceTM.
Notice.
AGENCY:
ACTION:
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Date of required notice: May 2,
2018.
FOR FURTHER INFORMATION CONTACT:
Elizabeth Reed, 202–268–3179.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on April 26, 2018,
it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail Express, Priority Mail, &
First-Class Package Service Contract 34
to Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2018–147, CP2018–211.
SUMMARY:
Elizabeth Reed,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2018–09241 Filed 5–1–18; 8:45 am]
BILLING CODE 7710–12–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83112; File No. SR–CBOE–
2018–030]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Rule 24.6,
Days and Hours of Business
daltland on DSKBBV9HB2PROD with NOTICES
April 26, 2018.
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 April 13,
2018, Cboe Exchange, Inc. (the
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Sep<11>2014
22:14 May 01, 2018
The Exchange proposes to amend
Rule 24.6.
(additions are italicized; deletions are
[bracketed])
*
*
*
*
*
Cboe Exchange, Inc.
Rules
*
*
*
*
*
*
Rule 24.6.
*
*
Days and Hours of Business
(a) (No change).
(b) Transactions in the following
index options may be effected on the
Exchange during the Regular Trading
Hours of 8:30 a.m. Chicago time to 3:00
p.m. Chicago time:
(i)–(xli) (No change)
(xlii) S&P Financial Select Sector Index
(SIXM)
(xliii) S&P Energy Select Sector Index
(SIXE)
(xliv) S&P Technology Select Sector
Index (SIXT)
(xlv) S&P Health Care Select Sector
Index (SIXV)
(xlvi) S&P Utilities Select Sector Index
(SIXU)
(xlvii) S&P Consumer Staples Select
Sector Index (SIXR)
(xlviii) S&P Industrials Select Sector
Index (SIXI)
(xlix) S&P Consumer Discretionary
Select Sector Index (SIXY)
(xlx) S&P Materials Select Sector Index
(SIXB)
(xlxi) S&P Real Estate Select Sector
Index (SIXRE)
. . . Interpretations and Policies:
.01–.06 (No change).
*
*
*
*
*
The text of the proposed rule change
is also available on the Exchange’s
website (https://www.cboe.com/
4 17
PO 00000
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
Frm 00155
Fmt 4703
Sfmt 4703
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
*
Chapter XXIV. Index Options
3 15
Jkt 244001
*
AboutCBOE/CBOELegalRegulatory
Home.aspx), at the Exchange’s Office of
the Secretary, and at the Commission’s
Public Reference Room.
Recently, the Exchange proposed to
amend certain rules in connection with
the Exchange’s plans to list and trade
ten S&P Select Sector Index options.
Each S&P Select Sector Index (‘‘Sector
Index’’) 5 represents the performance of
stocks that are components of the
Standard & Poor’s 500 Index (‘‘S&P
500’’) within one of the following
sectors (each of which is referred to as
a ‘‘Sector Index’’):
Sector
Financial ...............
Energy ..................
Technology ...........
Health Care ..........
Utilities ..................
Consumer Staples
Industrials .............
Consumer Discretionary.
Materials ...............
Real Estate ...........
Symbol 6
Number of
components
IXM
IXE
IXT
IXV
IXU
IXR
IXI
IXY
66
32
72
61
28
35
68
85
IXB
IXRE
26
32
Currently, pursuant to Rule 24.6(a),
options on the Sector Indexes may trade
on the Exchange from 8:30 a.m. until
3:15 p.m. Chicago time. In connection
with the listing of options on the Sector
Indexes,7 the Exchange proposes to
amend Rule 24.6(b) to add options on
5 Each Sector Index is a narrow-based index as
defined in Rule 24.1(i)(2).
6 These symbols represent the index. The
corresponding option symbols are SIXM, SIXE,
SIXT, SIXV, SIXU, SIXR, SIXI, SIXY, SIXB, and
SIXRE, respectively.
7 The Exchange has not yet begun listing options
on the Sector Indexes, but expects to begin listing
them as early as April 2018.
E:\FR\FM\02MYN1.SGM
02MYN1
19366
Federal Register / Vol. 83, No. 85 / Wednesday, May 2, 2018 / Notices
the Sector Indexes to the list of index
options that may trade on the Exchange
from 8:30 a.m. until 3:00 p.m. Chicago
time. The Exchange understands that
investors who plan to trade options on
Sector Indexes would often use the
prices of the stock components of Sector
Indexes to price options rather than
futures on the Sector Indexes (which are
often used to price index options, such
as options on the S&P 500). Investors
similarly use pricing of underlying
stocks to price shares of exchangetraded funds (‘‘ETFs’’) derived from the
Sector Indexes (e.g., Select Sector SPDR
ETFs), the components of which are
stocks that are components of the Sector
Indexes. The underlying stocks end
regular trading at 3:00 p.m. Chicago
time each day. Closing trading in the
Select Sector Index options at the same
time the stocks end regular trading 8 will
ensure investors have access to robust
pricing of the underlying stock
components they use to price the
options, thus reducing investors’ price
risk. Various other index options,
including narrow-based index options,
may trade from 8:30 a.m. to 3:00 p.m.
Chicago time.9
daltland on DSKBBV9HB2PROD with NOTICES
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.10 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 11 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
8 While the stocks may continue to trade in an
aftermarket trading session on the listing exchanges,
there is less liquidity in aftermarket trading, which
generally leads to wider spreads and more volatile
pricing.
9 See Rule 24.6(b) (for example, options on the
S&P transportation, retail, health care, banking,
insurance, and chemical indices, and the Cboe
PowerPacks SM bank, biotechnology, gold, internet,
iron & steel, oil, oil services, pharmaceuticals,
retail, semiconductor, technology, and telecom
indices).
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(5).
VerDate Sep<11>2014
22:14 May 01, 2018
Jkt 244001
proposed rule change is consistent with
the Section 6(b)(5) 12 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
In particular, closing trading in the
Select Sector Index options at the same
time the stocks end regular trading will
ensure investors have access to robust
pricing of the underlying stock
components they use to price the
options, which protects investors by
reducing their price risk. Various other
index options, including narrow-based
index options, may trade from 8:30 a.m.
to 3:00 p.m. Chicago time.13
B. Self-Regulatory Organization’s
Statement on Burden on Competition
Cboe Options 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. All market
participants will be able to trade options
on the Sector Indexes during the same
trading hours. Various other index
options, including narrow-based index
options, may trade from 8:30 a.m. to
3:00 p.m. Chicago time.14 The Exchange
believes the proposed rule change will
promote competition, as it brings the
trading hours for Sector Index options
in line with competitive products
trading on other exchanges.
Additionally, Sector Index options trade
exclusively on Cboe Options. To the
extent that the proposed changes make
Cboe Options a more attractive
marketplace for market participants at
other exchanges, such market
participants are welcome to become
Cboe Options 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
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
12 Id.
13 See
supra note 9.
14 Id.
PO 00000
Frm 00156
Fmt 4703
Sfmt 4703
19(b)(3)(A)(iii) of the Act 15 and
subparagraph (f)(6) Rule 19b–4
thereunder.16
A proposed rule change filed under
Rule 19b–4(f)(6) 17 normally does not
become operative for 30 days after the
date of filing. However, Rule 19b–
4(f)(6)(iii) 18 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 requested that the
Commission waive the 30-day operative
delay to permit the proposed rule
change to be operative at the time the
Exchange begins listing Sector Index
options for trading. The Commission
believes that waiver of the 30-day
operative delay is consistent with the
protection of investors and the public
interest because the proposal to add ten
new S&P Select Sector Index options to
the existing list of similar index options,
including narrow-based index options,
that trade until 3:00 p.m. Chicago time
does not raise any new or novel issues.
Therefore, the Commission hereby
waives the 30-day operative delay and
designates the proposed rule change
operative upon filing.19
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:
15 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
to file the proposed rule change, along with a brief
description and 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. The Exchange
has satisfied this requirement.
17 17 CFR 240.19b–4(f)(6).
18 17 CFR 240.19b–4(f)(6)(iii).
19 For purposes only of waiving the 30-day
operative delay, the Commission also has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
16 17
E:\FR\FM\02MYN1.SGM
02MYN1
Federal Register / Vol. 83, No. 85 / Wednesday, May 2, 2018 / 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–2018–030 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.
daltland on DSKBBV9HB2PROD with NOTICES
All submissions should refer to File
Number SR–CBOE–2018–030. 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 website (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 website 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–
2018–030 and should be submitted on
or before May 23, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–09257 Filed 5–1–18; 8:45 am]
BILLING CODE 8011–01–P
20 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
22:14 May 01, 2018
Jkt 244001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83119; File No. SR–ISE–
2018–16]
Self-Regulatory Organizations; Nasdaq
ISE, LLC; Notice of Designation of
Longer Period for Commission Action
on Proposed Rule Change To
Introduce the ATR Protection for
Orders that are Routed to Away
Markets
April 26, 2018.
On February 23, 2018, Nasdaq ISE,
LLC (‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
amend Exchange Rule 714 regarding the
Acceptable Trade Range protection for
orders and quotes. The proposed rule
change was published for comment in
the Federal Register on March 14,
2018.3 On April 20, 2018, the Exchange
submitted Amendment No. 1 to the
proposed rule change.4 The Commission
received no comments on the proposed
rule change.
Section 19(b)(2) of the Act 5 provides
that within 45 days of the publication of
notice of the filing of a proposed rule
change, or within such longer period up
to 90 days as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or as to which the
self-regulatory organization consents,
the Commission shall either approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether these
proposed rule changes should be
disapproved. The 45th day for this filing
is April 28, 2018.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 82846
(March 9, 2018), 83 FR 11254 (‘‘Notice’’).
4 See Letter to Brent J. Fields, Secretary,
Commission, from Adrian Griffiths, Senior
Associate General Counsel, Nasdaq, Inc., dated
April 20, 2018. Amendment No. 1 revises the
proposed rule change to: (i) Provide further
discussion of the current application of the ATR to
orders routed away; (ii) modify the proposed rule
text regarding the recalculation of the ATR for
orders routed away pursuant to Supplementary
Material to Exchange Rule 1901, if the applicable
National Best Bid or the National Best Offer price
is improved at the time of routing; (iii) expand the
discussion and justification for recalculating the
ATR for such orders; and (iv) make other
amendments to the proposed rule text to improve
the understandability of the current ATR
calculation. Amendment No. 1 is available at:
https://www.sec.gov/comments/sr-ise-2018-16/
ise201816-3483594-162248.pdf.
5 15 U.S.C. 78s(b)(2).
2 17
PO 00000
Frm 00157
Fmt 4703
Sfmt 4703
19367
The Commission is extending the 45day time period for Commission action
on the proposed rule change. 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 and take action on the
Exchange’s proposed rule change.
Accordingly, pursuant to Section
19(b)(2)(A)(ii)(I) of the Act 6 and for the
reasons stated above, the Commission
designates June 12, 2018 as the date by
which the Commission should either
approve or disapprove, or institute
proceedings to determine whether to
disapprove, the proposed rule change
(File No. SR–ISE–2018–16).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–09264 Filed 5–1–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
33076A; 812–14873]
Redwood Investment Management,
LLC and Two Roads Shared Trust
April 26, 2018.
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice.
AGENCY:
Notice of an application for an order
under section 6(c) of the Investment
Company Act of 1940 (the ‘‘Act’’) for an
exemption from sections 2(a)(32),
5(a)(1), 22(d), and 22(e) of the Act and
rule 22c–1 under the Act, under
sections 6(c) and 17(b) of the Act for an
exemption from sections 17(a)(1) and
17(a)(2) of the Act, and under section
12(d)(1)(J) for an exemption from
sections 12(d)(1)(A) and 12(d)(1)(B) of
the Act. The requested order would
permit (a) index-based series of certain
open-end management investment
companies (‘‘Funds’’) to issue shares
redeemable in large aggregations only
(‘‘Creation Units’’); (b) secondary market
transactions in Fund shares to occur at
negotiated market prices rather than at
net asset value (‘‘NAV’’); (c) certain
Funds to pay redemption proceeds,
under certain circumstances, more than
seven days after the tender of shares for
redemption; (d) certain affiliated
persons of a Fund to deposit securities
into, and receive securities from, the
6 15
7 17
U.S.C. 78s(b)(2)(A)(ii)(I).
CFR 200.30–3(a)(31).
E:\FR\FM\02MYN1.SGM
02MYN1
]]>Agencies
[Federal Register Volume 83, Number 85 (Wednesday, May 2, 2018)]
[Notices]
[Pages 19365-19367]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-09257]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-83112; File No. SR-CBOE-2018-030]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Rule 24.6, Days and Hours of Business
April 26, 2018.
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 April 13, 2018, Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe
Options'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and
II, below, which Items have been prepared by the Exchange. The Exchange
filed the proposal as a ``non-controversial'' proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-
4(f)(6) thereunder.\4\ 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)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 24.6.
(additions are italicized; deletions are [bracketed])
* * * * *
Cboe Exchange, Inc.
Rules
* * * * *
Chapter XXIV. Index Options
* * * * *
Rule 24.6. Days and Hours of Business
(a) (No change).
(b) Transactions in the following index options may be effected on
the Exchange during the Regular Trading Hours of 8:30 a.m. Chicago time
to 3:00 p.m. Chicago time:
(i)-(xli) (No change)
(xlii) S&P Financial Select Sector Index (SIXM)
(xliii) S&P Energy Select Sector Index (SIXE)
(xliv) S&P Technology Select Sector Index (SIXT)
(xlv) S&P Health Care Select Sector Index (SIXV)
(xlvi) S&P Utilities Select Sector Index (SIXU)
(xlvii) S&P Consumer Staples Select Sector Index (SIXR)
(xlviii) S&P Industrials Select Sector Index (SIXI)
(xlix) S&P Consumer Discretionary Select Sector Index (SIXY)
(xlx) S&P Materials Select Sector Index (SIXB)
(xlxi) S&P Real Estate Select Sector Index (SIXRE)
. . . Interpretations and Policies:
.01-.06 (No change).
* * * * *
The text of the proposed rule change is also available on the
Exchange's website (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
Recently, the Exchange proposed to amend certain rules in
connection with the Exchange's plans to list and trade ten S&P Select
Sector Index options. Each S&P Select Sector Index (``Sector Index'')
\5\ represents the performance of stocks that are components of the
Standard & Poor's 500 Index (``S&P 500'') within one of the following
sectors (each of which is referred to as a ``Sector Index''):
---------------------------------------------------------------------------
\5\ Each Sector Index is a narrow-based index as defined in Rule
24.1(i)(2).
------------------------------------------------------------------------
Number of
Sector Symbol \6\ components
------------------------------------------------------------------------
Financial............................ IXM 66
Energy............................... IXE 32
Technology........................... IXT 72
Health Care.......................... IXV 61
Utilities............................ IXU 28
Consumer Staples..................... IXR 35
Industrials.......................... IXI 68
Consumer Discretionary............... IXY 85
Materials............................ IXB 26
Real Estate.......................... IXRE 32
------------------------------------------------------------------------
Currently, pursuant to Rule 24.6(a), options on the Sector Indexes
may trade on the Exchange from 8:30 a.m. until 3:15 p.m. Chicago time.
In connection with the listing of options on the Sector Indexes,\7\ the
Exchange proposes to amend Rule 24.6(b) to add options on
[[Page 19366]]
the Sector Indexes to the list of index options that may trade on the
Exchange from 8:30 a.m. until 3:00 p.m. Chicago time. The Exchange
understands that investors who plan to trade options on Sector Indexes
would often use the prices of the stock components of Sector Indexes to
price options rather than futures on the Sector Indexes (which are
often used to price index options, such as options on the S&P 500).
Investors similarly use pricing of underlying stocks to price shares of
exchange-traded funds (``ETFs'') derived from the Sector Indexes (e.g.,
Select Sector SPDR ETFs), the components of which are stocks that are
components of the Sector Indexes. The underlying stocks end regular
trading at 3:00 p.m. Chicago time each day. Closing trading in the
Select Sector Index options at the same time the stocks end regular
trading \8\ will ensure investors have access to robust pricing of the
underlying stock components they use to price the options, thus
reducing investors' price risk. Various other index options, including
narrow-based index options, may trade from 8:30 a.m. to 3:00 p.m.
Chicago time.\9\
---------------------------------------------------------------------------
\6\ These symbols represent the index. The corresponding option
symbols are SIXM, SIXE, SIXT, SIXV, SIXU, SIXR, SIXI, SIXY, SIXB,
and SIXRE, respectively.
\7\ The Exchange has not yet begun listing options on the Sector
Indexes, but expects to begin listing them as early as April 2018.
\8\ While the stocks may continue to trade in an aftermarket
trading session on the listing exchanges, there is less liquidity in
aftermarket trading, which generally leads to wider spreads and more
volatile pricing.
\9\ See Rule 24.6(b) (for example, options on the S&P
transportation, retail, health care, banking, insurance, and
chemical indices, and the Cboe PowerPacks SM bank, biotechnology,
gold, internet, iron & steel, oil, oil services, pharmaceuticals,
retail, semiconductor, technology, and telecom indices).
---------------------------------------------------------------------------
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.\10\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \11\ 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 the
Section 6(b)(5) \12\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
\12\ Id.
---------------------------------------------------------------------------
In particular, closing trading in the Select Sector Index options
at the same time the stocks end regular trading will ensure investors
have access to robust pricing of the underlying stock components they
use to price the options, which protects investors by reducing their
price risk. Various other index options, including narrow-based index
options, may trade from 8:30 a.m. to 3:00 p.m. Chicago time.\13\
---------------------------------------------------------------------------
\13\ See supra note 9.
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
Cboe Options 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. All market participants will
be able to trade options on the Sector Indexes during the same trading
hours. Various other index options, including narrow-based index
options, may trade from 8:30 a.m. to 3:00 p.m. Chicago time.\14\ The
Exchange believes the proposed rule change will promote competition, as
it brings the trading hours for Sector Index options in line with
competitive products trading on other exchanges. Additionally, Sector
Index options trade exclusively on Cboe Options. To the extent that the
proposed changes make Cboe Options a more attractive marketplace for
market participants at other exchanges, such market participants are
welcome to become Cboe Options market participants.
---------------------------------------------------------------------------
\14\ Id.
---------------------------------------------------------------------------
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
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)(iii) of the Act \15\ and
subparagraph (f)(6) Rule 19b-4 thereunder.\16\
---------------------------------------------------------------------------
\15\ 15 U.S.C. 78s(b)(3)(A).
\16\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change, along with a
brief description and 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. The
Exchange has satisfied this requirement.
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) \17\ normally
does not become operative for 30 days after the date of filing.
However, Rule 19b-4(f)(6)(iii) \18\ 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 requested that the
Commission waive the 30-day operative delay to permit the proposed rule
change to be operative at the time the Exchange begins listing Sector
Index options for trading. The Commission believes that waiver of the
30-day operative delay is consistent with the protection of investors
and the public interest because the proposal to add ten new S&P Select
Sector Index options to the existing list of similar index options,
including narrow-based index options, that trade until 3:00 p.m.
Chicago time does not raise any new or novel issues. Therefore, the
Commission hereby waives the 30-day operative delay and designates the
proposed rule change operative upon filing.\19\
---------------------------------------------------------------------------
\17\ 17 CFR 240.19b-4(f)(6).
\18\ 17 CFR 240.19b-4(f)(6)(iii).
\19\ For purposes only of waiving the 30-day operative delay,
the Commission also has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
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:
[[Page 19367]]
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-CBOE-2018-030 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-2018-030. 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 website (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 website 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-2018-030 and should be
submitted on or before May 23, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
---------------------------------------------------------------------------
\20\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-09257 Filed 5-1-18; 8:45 am]
BILLING CODE 8011-01-P
