Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Credit Option Margin Pilot Program Through July 18, 2019, 35305-35307 [2018-15847]
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Federal Register / Vol. 83, No. 143 / Wednesday, July 25, 2018 / Notices
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subadvisory agreements each year.10
Based on discussions with industry
representatives, the staff estimates that
it will require approximately 3 attorney
hours to draft and execute additional
clauses in new subadvisory contracts in
order for funds and subadvisers to be
able to rely on the exemptions in rule
10f–3. Because these additional clauses
are identical to the clauses that a fund
would need to insert in their
subadvisory contracts to rely on rules
12d3–1, 17a–10, and 17e–1, and because
we believe that funds that use one such
rule generally use all of these rules, we
apportion this 3 hour time burden
equally to all four rules. Therefore, we
estimate that the burden allocated to
rule 10f–3 for this contract change
would be 0.75 hours.11 Assuming that
all 299 funds that enter into new
subadvisory contracts each year make
the modification to their contract
required by the rule, we estimate that
the rule’s contract modification
requirement will result in 224 burden
hours annually.12
The staff estimates, therefore, that rule
10f–3 imposes an information collection
burden of 4,080 hours.13
Written comments are invited on: (a)
Whether the collections of information
are necessary for the proper
performance of the functions of the
Commission, including whether the
information has practical utility; (b) the
accuracy of the Commission’s estimate
of the burdens of the collections of
information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burdens of the collections
of information on respondents,
including through the use of automated
collection techniques or other forms of
information technology. Consideration
will be given to comments and
suggestions submitted in writing within
60 days of this publication.
Please direct your written comments
to Pamela Dyson, Director/Chief
Information Officer, Securities and
Exchange Commission, C/O Candace
Kenner, 100 F Street NE, Washington,
DC 20549; or send an email to: PRA_
Mailbox@sec.gov.
10 Based on information in Commission filings,
we estimate that 38 percent of funds are advised by
subadvisers.
11 This estimate is based on the following
calculation (3 hours ÷ 4 rules = .75 hours).
12 These estimates are based on the following
calculations: (0.75 hours × 299 portfolios = 224
burden hours).
13 This estimate is based on the following
calculation: (1,464 hours + 976 hours + 944 hours
+ 472 + 224 hours = 4,080 total burden hours).
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Dated: July 19, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–15853 Filed 7–24–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Submission for OMB Review;
Comment Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Extension:
Interagency Statement on Sound Practices,
SEC File No. 270–560, OMB Control No.
3235–0622
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.) the
Securities and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for approval of
extension of the previously approved
collection of information provided for in
the Interagency Statement on Sound
Practices Concerning Elevated Risk
Complex Structured Finance Activities
(‘‘Statement’’) under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et
seq.) (‘‘Exchange Act’’) and the
Investment Advisers Act of 1940 (15
U.S.C. 80b et seq.) (‘‘Advisers Act’’).
The Statement was issued by the
Commission, together with the Office of
the Comptroller of the Currency, the
Board of Governors of the Federal
Reserve System, the Federal Deposit
Insurance Corporation, and the Office of
Thrift Supervision (together, the
‘‘Agencies’’), in May 2006. The
Statement describes the types of internal
controls and risk management
procedures that the Agencies believe are
particularly effective in assisting
financial institutions to identify and
address the reputational, legal, and
other risks associated with elevated risk
complex structured finance
transactions.
The primary purpose of the Statement
is to ensure that these transactions
receive enhanced scrutiny by the
institution and to ensure that the
institution does not participate in illegal
or inappropriate transactions.
The Commission estimates that
approximately 5 registered brokerdealers or investment advisers will
spend an average of approximately 25
hours per year complying with the
Statement. Thus, the total compliance
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35305
burden is estimated to be approximately
125 burden-hours per year.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
The public may view background
documentation for this information
collection at the following website,
www.reginfo.gov. Comments should be
directed to: (i) Desk Officer for the
Securities and Exchange Commission,
Office of Information and Regulatory
Affairs, Office of Management and
Budget, Room 10102, New Executive
Office Building, Washington, DC 20503,
or by sending an email to: Shagufta_
Ahmed@omb.eop.gov; and (ii) Pamela
Dyson, Director/Chief Information
Officer, Securities and Exchange
Commission, c/o Candace Kenner 100 F
Street NE Washington, DC 20549, or by
sending an email to: PRA_Mailbox@
sec.gov. Comments must be submitted to
OMB within 30 days of this notice.
Dated: July 19, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–15856 Filed 7–24–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83672; File No. SR–CBOE–
2018–052]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Extend the Credit
Option Margin Pilot Program Through
July 18, 2019
July 19, 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 July 18,
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 ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of
the Act3 and Rule 19b–4(f)(6)
thereunder.4 The Commission is
publishing this notice to solicit
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
2 17
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35306
Federal Register / Vol. 83, No. 143 / Wednesday, July 25, 2018 / Notices
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 12.3 by extending the Credit
Option Margin Pilot Program through
July 18, 2019.
The text of the proposed rule change
is 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.
January 17, 2013.7 The Program,
however, continues to be substantially
similar to the provisions of the FINRA
program. Subsequently, the Exchange
filed rule changes to extend the program
until January 17, 2014, January 16, 2015,
January 15, 2016, January 17, 2017, and
July 18, 2017, July 18, 2018
respectively.8 The Exchange believes
that extending the expiration date of the
Program further will allow for further
analysis of the Program and a
determination of how the Program
should be structured in the future. Thus,
the Exchange is now currently
proposing to extend the duration of the
Program for an additional year until July
18, 2019.
Additionally, the Exchange believes
that it is in the public interest to extend
the expiration date of the Program
because it will continue to allow the
Exchange to list Credit Options for
trading. As a result, the Exchange will
remain competitive with the Over-theCounter Market with respect to swaps
and security-based swaps. In the future,
if the Exchange proposes an additional
extension of the Credit Option Margin
Pilot Program or proposes to make the
Program permanent, then the Exchange
will submit a filing proposing such
amendments to the Program.
On February 2, 2011, the Commission
approved the Exchange’s proposal to
establish a Credit Option Margin Pilot
Program (‘‘Program’’).5 The proposal
became effective on a pilot basis to run
on a parallel track with Financial
Industry Regulatory Authority
(‘‘FINRA’’) Rule 4240 that similarly
operates on an interim pilot basis.6
On January 17, 2012, the Exchange
filed a rule change to, among other
things, decouple the Program with the
FINRA program and to extend the
expiration date of the Program to
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.9 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 10 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 facilitation transactions in
securities, to remove impediments to
and perfect the mechanism of a free and
5 See Securities Exchange Act Release No. 63819
(February 2, 2011), 76 FR 6838 (February 8, 2011)
order approving (SR–CBOE–2010–106). To
implement the Program, the Exchange amended
Rule 12.3(l), Margin Requirements, to make Cboe
Option’s margin requirements for Credit Options
consistent with Financial Industry Regulatory
Authority (‘‘FINRA’’) Rule 4240, Margin
Requirements for Credit Default Swaps. Cboe
Options Credit Options (i.e., Credit Default Options
and Credit Default Basket Options) are analogous to
credit default swaps.
6 See Securities Exchange Act Release No. 59955
(May 22, 2009), 74 FR 25586 (May 28, 2009) (Notice
of Filing and Order Granting Accelerated Approval
of Proposed Rule Change; SR–FINRA–2009–012).
7 See Securities Exchange Act Release No. 66163
(January 17, 2012), 77 FR 3318 (January 23, 2012)
(SR–CBOE–2012–007).
8 See Securities Exchange Act Release Nos. 68539
(December 27, 2012), 78 FR 138 (January 2, 2013)
(SR–CBOE–2012–125), 71124 (December 18, 2013),
78 FR 77754 (December 24, 2013) (SR–CBOE–2013–
123), 73837 (December 15, 2014), 79 FR 75850
(December 19, 2014) (SR–CBOE–2014–091), 76824
(January 5, 2016), 81 FR 1255 (January 11, 2016)
(SR–CBOE–2015–118), 79621 (December 14, 2016)
81 FR 95236 (December 27, 2016) (SR–CBOE–2016–
089), and 81083 (July 6, 2017) 82 FR 32219 (July
12, 2017) (SR–CBOE–2017–051).
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(5).
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
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1. Purpose
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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) 11 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
In particular, the Exchange believes
that the proposed rule change will
further the purposes of the Act because,
consistent with the goals of the
Commission at the initial adoption of
the program, the margin requirements
set forth by the proposed rule change
will help to stabilize the financial
markets. In addition, the proposed rule
change is substantially similar to
existing FINRA Rule 4240.
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. Specifically,
the Exchange believes that, by extending
the expiration of the Program, the
proposed rule change will allow for
further analysis of the Program and a
determination of how the Program shall
be structured in the future. In doing so,
the proposed rule change will also serve
to promote regulatory clarity and
consistency, thereby reducing burdens
on the marketplace and facilitating
investor protection.
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:
A. Significantly affect the protection
of investors or the public interest;
B. impose any significant burden on
competition; and
C. 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 12 and Rule 19b–4(f)(6) 13
thereunder.
11 Id.
12 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, as required
under Rule 19b–4(f)(6)(iii), the Exchange provided
13 17
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Federal Register / Vol. 83, No. 143 / Wednesday, July 25, 2018 / Notices
The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Exchange states that waiver
of the 30-day operative delay will allow
it to maintain the status quo, thereby
reducing market disruption. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest, as it will allow the
Program to continue uninterrupted,
thereby avoiding investor confusion that
could result from a temporary
interruption of the Program. For this
reason, the Commission designates the
proposed rule change to be operative
upon filing.14
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:
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–2018–052 on the subject line.
daltland on DSKBBV9HB2PROD with NOTICES
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–CBOE–2018–052. This file
number should be included on the
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 the filing of the proposed rule change, or such
shorter time as designated by the Commission.
14 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
VerDate Sep<11>2014
18:50 Jul 24, 2018
Jkt 244001
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.
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–CBOE–2018–052 and
should be submitted on or before
August 15, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–15847 Filed 7–24–18; 8:45 am]
BILLING CODE 8011–01–P
DEPARTMENT OF STATE
[Public Notice 10477]
Notice of Determinations: Culturally
Significant Objects Imported for
Exhibition Determinations: ‘‘Islam and
the Classical Heritage’’ Exhibition
Notice is hereby given of the
following determinations: I hereby
determine that certain objects to be
included in the exhibition ‘‘Islam and
the Classical Heritage,’’ imported from
abroad for temporary exhibition within
the United States, are of cultural
significance. The objects are imported
pursuant to a loan agreement with the
foreign owner or custodian. I also
determine that the exhibition or display
SUMMARY:
PO 00000
15 17
CFR 200.30–3(a)(12).
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35307
of the exhibit objects at the Fine Arts
Museums of San Francisco, Legion of
Honor, in San Francisco, California,
from on or about August 25, 2018, until
on or about January 27, 2019, and at
possible additional exhibitions or
venues yet to be determined, is in the
national interest. I have ordered that
Public Notice of these determinations be
published in the Federal Register.
FOR FURTHER INFORMATION CONTACT: Julie
Simpson, Attorney-Adviser, Office of
the Legal Adviser, U.S. Department of
State (telephone: 202–632–6471; email:
section2459@state.gov). The mailing
address is U.S. Department of State, L/
PD, SA–5, Suite 5H03, Washington, DC
20522–0505.
SUPPLEMENTARY INFORMATION: The
foregoing determinations were made
pursuant to the authority vested in me
by the Act of October 19, 1965 (79 Stat.
985; 22 U.S.C. 2459), E.O. 12047 of
March 27, 1978, the Foreign Affairs
Reform and Restructuring Act of 1998
(112 Stat. 2681, et seq.; 22 U.S.C. 6501
note, et seq.), Delegation of Authority
No. 234 of October 1, 1999, Delegation
of Authority No. 236–3 of August 28,
2000, and Delegation of Authority No.
236–10 of July 6, 2018.
Jennifer Z. Galt,
Principal Deputy Assistant Secretary for
Educational and Cultural Affairs, Department
of State.
[FR Doc. 2018–15833 Filed 7–24–18; 8:45 am]
BILLING CODE 4710–05–P
DEPARTMENT OF STATE
[Public Notice: 10478]
In the Matter of the Review of the
Designation of al-Shabaab (and Other
Aliases) as a Foreign Terrorist
Organization Pursuant to Section 219
of the Immigration and Nationality Act,
as Amended
Based upon a review of the
Administrative Record assembled
pursuant to Section 219(a)(4)(C) of the
Immigration and Nationality Act, as
amended (8 U.S.C. 1189(a)(4)(C))
(‘‘INA’’), and in consultation with the
Attorney General and the Secretary of
the Treasury, I conclude that the
circumstances that were the basis for the
designation of the aforementioned
organization as a Foreign Terrorist
Organization have not changed in such
a manner as to warrant revocation of the
designation and that the national
security of the United States does not
warrant a revocation of the designation.
Therefore, I hereby determine that the
designation of the aforementioned
organization as a Foreign Terrorist
E:\FR\FM\25JYN1.SGM
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]]>Agencies
[Federal Register Volume 83, Number 143 (Wednesday, July 25, 2018)]
[Notices]
[Pages 35305-35307]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-15847]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-83672; File No. SR-CBOE-2018-052]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Extend
the Credit Option Margin Pilot Program Through July 18, 2019
July 19, 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 July 18, 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
[[Page 35306]]
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 12.3 by extending the Credit
Option Margin Pilot Program through July 18, 2019.
The text of the proposed rule change is 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
On February 2, 2011, the Commission approved the Exchange's
proposal to establish a Credit Option Margin Pilot Program
(``Program'').\5\ The proposal became effective on a pilot basis to run
on a parallel track with Financial Industry Regulatory Authority
(``FINRA'') Rule 4240 that similarly operates on an interim pilot
basis.\6\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 63819 (February 2,
2011), 76 FR 6838 (February 8, 2011) order approving (SR-CBOE-2010-
106). To implement the Program, the Exchange amended Rule 12.3(l),
Margin Requirements, to make Cboe Option's margin requirements for
Credit Options consistent with Financial Industry Regulatory
Authority (``FINRA'') Rule 4240, Margin Requirements for Credit
Default Swaps. Cboe Options Credit Options (i.e., Credit Default
Options and Credit Default Basket Options) are analogous to credit
default swaps.
\6\ See Securities Exchange Act Release No. 59955 (May 22,
2009), 74 FR 25586 (May 28, 2009) (Notice of Filing and Order
Granting Accelerated Approval of Proposed Rule Change; SR-FINRA-
2009-012).
---------------------------------------------------------------------------
On January 17, 2012, the Exchange filed a rule change to, among
other things, decouple the Program with the FINRA program and to extend
the expiration date of the Program to January 17, 2013.\7\ The Program,
however, continues to be substantially similar to the provisions of the
FINRA program. Subsequently, the Exchange filed rule changes to extend
the program until January 17, 2014, January 16, 2015, January 15, 2016,
January 17, 2017, and July 18, 2017, July 18, 2018 respectively.\8\ The
Exchange believes that extending the expiration date of the Program
further will allow for further analysis of the Program and a
determination of how the Program should be structured in the future.
Thus, the Exchange is now currently proposing to extend the duration of
the Program for an additional year until July 18, 2019.
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 66163 (January 17,
2012), 77 FR 3318 (January 23, 2012) (SR-CBOE-2012-007).
\8\ See Securities Exchange Act Release Nos. 68539 (December 27,
2012), 78 FR 138 (January 2, 2013) (SR-CBOE-2012-125), 71124
(December 18, 2013), 78 FR 77754 (December 24, 2013) (SR-CBOE-2013-
123), 73837 (December 15, 2014), 79 FR 75850 (December 19, 2014)
(SR-CBOE-2014-091), 76824 (January 5, 2016), 81 FR 1255 (January 11,
2016) (SR-CBOE-2015-118), 79621 (December 14, 2016) 81 FR 95236
(December 27, 2016) (SR-CBOE-2016-089), and 81083 (July 6, 2017) 82
FR 32219 (July 12, 2017) (SR-CBOE-2017-051).
---------------------------------------------------------------------------
Additionally, the Exchange believes that it is in the public
interest to extend the expiration date of the Program because it will
continue to allow the Exchange to list Credit Options for trading. As a
result, the Exchange will remain competitive with the Over-the-Counter
Market with respect to swaps and security-based swaps. In the future,
if the Exchange proposes an additional extension of the Credit Option
Margin Pilot Program or proposes to make the Program permanent, then
the Exchange will submit a filing proposing such amendments to the
Program.
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.\9\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \10\ 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 facilitation
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) \11\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
\11\ Id.
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In particular, the Exchange believes that the proposed rule change
will further the purposes of the Act because, consistent with the goals
of the Commission at the initial adoption of the program, the margin
requirements set forth by the proposed rule change will help to
stabilize the financial markets. In addition, the proposed rule change
is substantially similar to existing FINRA Rule 4240.
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. Specifically, the Exchange
believes that, by extending the expiration of the Program, the proposed
rule change will allow for further analysis of the Program and a
determination of how the Program shall be structured in the future. In
doing so, the proposed rule change will also serve to promote
regulatory clarity and consistency, thereby reducing burdens on the
marketplace and facilitating investor protection.
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:
A. Significantly affect the protection of investors or the public
interest;
B. impose any significant burden on competition; and
C. 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 \12\ and
Rule 19b-4(f)(6) \13\ thereunder.
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6). In addition, 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 the filing of the proposed
rule change, or such shorter time as designated by the Commission.
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[[Page 35307]]
The Exchange has asked the Commission to waive the 30-day operative
delay so that the proposal may become operative immediately upon
filing. The Exchange states that waiver of the 30-day operative delay
will allow it to maintain the status quo, thereby reducing market
disruption. The Commission believes that waiving the 30-day operative
delay is consistent with the protection of investors and the public
interest, as it will allow the Program to continue uninterrupted,
thereby avoiding investor confusion that could result from a temporary
interruption of the Program. For this reason, the Commission designates
the proposed rule change to be operative upon filing.\14\
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\14\ For purposes only of waiving the 30-day operative delay,
the Commission has also 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 will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-CBOE-2018-052 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-2018-052. 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. 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-CBOE-2018-052 and
should be submitted on or before August 15, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-15847 Filed 7-24-18; 8:45 am]
BILLING CODE 8011-01-P
