Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fees Schedule, 52285-52287 [2018-22425]
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Federal Register / Vol. 83, No. 200 / Tuesday, October 16, 2018 / Notices
Exchange notes that it operates in a
highly competitive market in which
market participants can readily favor
competing venues if they deem rebate
opportunities available at other venues
to be more favorable. In such an
environment, the Exchange must
continually adjust its rebates to remain
competitive with other exchanges.
Because competitors are free to modify
their own rebates in response, the
Exchange believes that the degree to
which rebate changes in this market
may impose any burden on competition
is limited. For the reasons discussed
above, the Exchange believes that the
proposed changes do not impose an
undue burden on competition.
Further, the Exchange does not
believe that offering a rebate to Floor
Brokers will impose an undue burden
on intra-market competition because all
Floor Brokers are eligible to transact
Strategy QOO Orders and receive a
rebate. Further, as discussed above, the
Exchange believes that applying the
proposed rebate to Floor Brokers and
not to Floor Market Makers is
appropriate as Floor Market Makers
only represent their own interest on the
Trading Floor and therefore do not need
a similar incentive. Lastly, the Exchange
believes that the rebate will promote
competition by allowing Floor Brokers
to competitively price their services and
for the Exchange to remain competitive
with other exchanges with trading
floors.
amozie on DSK3GDR082PROD with NOTICES1
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Exchange Act 11
and Rule 19b–4(f)(2) thereunder,12
because it establishes or changes a due,
or fee.
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend the rule change if
it appears to the Commission that the
action is necessary or appropriate in the
public interest, for the protection of
investors, or would otherwise further
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
11 15
12 17
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
VerDate Sep<11>2014
18:44 Oct 15, 2018
to determine whether the proposed rule
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–
BOX–2018–34 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–BOX–2018–34. 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 such
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
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–BOX–2018–34, and should
be submitted on or before November 6,
2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–22424 Filed 10–15–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84395; File No. SR–CBOE–
2018–065]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Its Fees
Schedule
October 10, 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
September 28, 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, II, and
III below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe Exchange, Inc. (the ‘‘Exchange’’
or ‘‘Cboe Options’’) proposes to amend
its fees schedule. The text of the
proposed rule change is also available
on the Exchange’s website (https://
www.cboe.com/AboutCBOE/CBOELegal
RegulatoryHome.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
1 15
13 17
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E:\FR\FM\16OCN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 83, No. 200 / Tuesday, October 16, 2018 / Notices
the most significant aspects of such
statements.
heightened standard during GTH, such
as purchase additional bandwidth.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
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.4 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 5 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) 6 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 it
is reasonable, equitable and not unfairly
discriminatory to offer LMMs in VIX
during GTH a rebate if they meet a
certain heightened quoting standard
(described above) to encourage LMMs in
VIX to provide increased liquidity. More
specifically, the Exchange believes the
amount of the amended rebate ($20,000)
is reasonable because it provides an
increased rebate for meeting the
heightened quoting standard and takes
into consideration additional costs an
LMM may incur. Particularly, the
Exchange believes the proposed amount
is such that it will incentivize an
appointed LMM to meet the GTH
quoting standards for VIX. The
Exchange notes the proposed amount is
also in line with incentives given to
LMMs for other products.7 Additionally,
if a LMM does not satisfy the
heightened quoting standard, then it
will not receive the rebate. The
Exchange believes it is equitable and not
unfairly discriminatory to only offer the
rebate to LMMs because it benefits all
market participants in GTH to
encourage LMMs to satisfy the
heightened quoting standards, which
amozie on DSK3GDR082PROD with NOTICES1
1. Purpose
The Exchange proposes to amend its
Fees Schedule, effective October 1, 2018
to amend its fee incentive program for
Lead Market-Makers (‘‘LMM’’) in VIX
during Global Trading Hours (‘‘GTH’’).
By way of background, pursuant to
Footnote 38 of the Fees Schedule, if a
LMM in VIX options during GTH (1)
provides continuous electronic quotes
in at least the lesser of 99% of the nonadjusted series or 100% of the nonadjusted series minus one call-put pair
in an GTH allocated class (excluding
intra-day add-on series on the day
during which such series are added for
trading) and (2) enters opening quotes
within five minutes of the initiation of
an opening rotation in any series that is
not open due to the lack of a quote,
provided that the LMM will not be
required to enter opening quotes in
more than the same percentage of series
set forth in clause (1) for at least 90%
of the trading days during GTH in a
given month, the LMM will receive a
rebate for that month in the amount of
a pro-rata share of a compensation pool
equal to $15,000 times the number of
LMMs in that class 3 (or pro-rated if an
appointment begins after the first
trading day of the month or ends prior
to the last trading day of the month).
The Exchange proposes to amend
Footnote 38 to increase the
compensation pool for VIX LMMs to
$20,000 per LMM. The Exchange also
proposes to update the example of how
the compensation pool works for the
Fees Schedule. The Exchange notes that
GTH LMMs are not obligated to satisfy
the heightened quoting standards
described in the Fees Schedule. Rather,
the LMMs are eligible to receive a rebate
if they satisfy the heightened standards,
which the Exchange believes will
encourage LMMs to provide liquidity
during GTH. Additionally, the Exchange
notes that LMMs may have to undertake
other expenses to be able to quote at the
3 For example, if there is one LMM appointed in
VIX, a compensation pool will be established each
month totaling $20,000. If that LMM meets the
heightened continuous quoting standard in VIX in
a month, that LMM will receive $20,000. If there
are two LMMs appointed in VIX, a compensation
pool will be established each month totaling
$40,000. If each LMM meets the heightened
continuous quoting standard in VIX during a
month, each will receive $20,000. If only one LMM
meets the heightened continuous quoting standard
in VIX during a month, that LMM would receive
$40,000 and the other one would receive nothing.
VerDate Sep<11>2014
18:44 Oct 15, 2018
Jkt 247001
4 15
5 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
may increase liquidity during those
hours and provide more trading
opportunities and tighter spreads.
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 does not believe that the
proposed rule change will impose any
burden on intramarket competition that
is not necessary or appropriate in
furtherance of the purposes of the Act,
because the amended rebate is intended
to encourage LMMs to bring liquidity in
VIX during GTH, which benefits all
market participants. Furthermore, the
Exchange does not believe that the
proposed rule changes will impose any
burden on intermarket competition that
is not necessary or appropriate in
furtherance of the purposes of the Act
because VIX is a proprietary product
that will only be traded 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
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 8 and paragraph (f) of Rule
19b–4 9 thereunder. At any time within
60 days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission will institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
6 Id.
7 See e.g., Cboe Options Fees Schedule, MSCI
LMM Incentive Program.
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9 17
E:\FR\FM\16OCN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
16OCN1
Federal Register / Vol. 83, No. 200 / Tuesday, October 16, 2018 / Notices
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:
[FR Doc. 2018–22425 Filed 10–15–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
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–2018–065 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.
amozie on DSK3GDR082PROD with NOTICES1
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Eduardo A. Aleman,
Assistant Secretary.
All submissions should refer to File
Number SR–CBOE–2018–065. 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–2018–065 and
should be submitted on or before
November 6, 2018.
[Release No. 34–84388; File No. SR–
NYSEAMER–2018–46]
Self-Regulatory Organizations; NYSE
American LLC; Notice of Filing and
Immediate Effectiveness of
Amendments to Rules Regarding
Qualification, Registration and
Continuing Education Applicable to
Member Organizations, Equity Trading
Permit Holders, and American Trading
Permit Holders
October 10, 2018.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on
September 27, 2018, NYSE American
LLC (the ‘‘Exchange’’ or ‘‘NYSE
American’’) 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 self-regulatory organization. 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 proposes amendments
to the Exchange’s rules regarding
qualification, registration and
continuing education requirements
applicable to member organizations,
Equity Trading Permit (‘‘ETP’’) Holders,
and American Trading Permit (‘‘ATP’’)
Holders. The Exchange’s rule proposal
is intended to harmonize its rules with
Financial Regulatory Authority, Inc.
(‘‘FINRA’’) rules and thus promote
consistency within the securities
industry, and therefore the Exchange is
only adopting rules that are relevant to
the Exchange’s members and member
organization and ETP Holders. The
Exchange is not adopting registration
categories that are not applicable to
members and member organizations and
ETP Holders because they do not engage
in the type of business that would
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
10 17
CFR 200.30–3(a)(12).
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18:44 Oct 15, 2018
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52287
require such registration. As such, the
Exchange is amending current Rules 341
and 341A of the Office Rules and Rules
2.4E and 2.21E of the Equities Rules
regarding continuing education
requirements to reflect the FINRA rule;
adopting Commentary .06 to current
Rule 341A regarding fingerprint
information; adopting new Rule 2.1210
regarding registration requirements and
related Commentary to new Rule
2.1210; adopting new Rule 2.1220
regarding registration categories 4 and
related Commentary to new Rule
2.1220; and adopting new Rule 2.1230
regarding associated persons exempt
from registration and related
Commentary to new Rule 2.1230. Each
of these rule changes, which are [sic]
described in more detail below, would
become operative on October 1, 2018.
The proposed rule change is available
on the Exchange’s website at
www.nyse.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
self-regulatory organization 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 those 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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend its
qualification, registration, and
continuing education requirements
applicable to members and member
organizations and ETP Holders. The
proposed amendments are intended to:
(i) Provide transparency and clarity with
respect to the Exchange’s registration,
qualification and examination
4 The relevant principal registration categories the
Exchange proposes to adopt are (1) Principal; (2)
General Securities Principal; (3) Compliance
Officer; (4) Financial and Operations Principal and
Introducing Broker-Dealer Financial and Operations
Principal; (5) Securities Trader Principal; (6)
General Securities Sales Supervisor; and (7)
Registered Options Principal. The relevant
representative registration categories the Exchange
proposes to adopt are (1) Representative; (2) General
Securities Representative; and (3) Securities Trader.
E:\FR\FM\16OCN1.SGM
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]]>Agencies
[Federal Register Volume 83, Number 200 (Tuesday, October 16, 2018)]
[Notices]
[Pages 52285-52287]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-22425]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-84395; File No. SR-CBOE-2018-065]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Its Fees Schedule
October 10, 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 September 28, 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,
II, and III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes
to amend its fees schedule. 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
[[Page 52286]]
the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend its Fees Schedule, effective October
1, 2018 to amend its fee incentive program for Lead Market-Makers
(``LMM'') in VIX during Global Trading Hours (``GTH''). By way of
background, pursuant to Footnote 38 of the Fees Schedule, if a LMM in
VIX options during GTH (1) provides continuous electronic quotes in at
least the lesser of 99% of the non-adjusted series or 100% of the non-
adjusted series minus one call-put pair in an GTH allocated class
(excluding intra-day add-on series on the day during which such series
are added for trading) and (2) enters opening quotes within five
minutes of the initiation of an opening rotation in any series that is
not open due to the lack of a quote, provided that the LMM will not be
required to enter opening quotes in more than the same percentage of
series set forth in clause (1) for at least 90% of the trading days
during GTH in a given month, the LMM will receive a rebate for that
month in the amount of a pro-rata share of a compensation pool equal to
$15,000 times the number of LMMs in that class \3\ (or pro-rated if an
appointment begins after the first trading day of the month or ends
prior to the last trading day of the month). The Exchange proposes to
amend Footnote 38 to increase the compensation pool for VIX LMMs to
$20,000 per LMM. The Exchange also proposes to update the example of
how the compensation pool works for the Fees Schedule. The Exchange
notes that GTH LMMs are not obligated to satisfy the heightened quoting
standards described in the Fees Schedule. Rather, the LMMs are eligible
to receive a rebate if they satisfy the heightened standards, which the
Exchange believes will encourage LMMs to provide liquidity during GTH.
Additionally, the Exchange notes that LMMs may have to undertake other
expenses to be able to quote at the heightened standard during GTH,
such as purchase additional bandwidth.
---------------------------------------------------------------------------
\3\ For example, if there is one LMM appointed in VIX, a
compensation pool will be established each month totaling $20,000.
If that LMM meets the heightened continuous quoting standard in VIX
in a month, that LMM will receive $20,000. If there are two LMMs
appointed in VIX, a compensation pool will be established each month
totaling $40,000. If each LMM meets the heightened continuous
quoting standard in VIX during a month, each will receive $20,000.
If only one LMM meets the heightened continuous quoting standard in
VIX during a month, that LMM would receive $40,000 and the other one
would receive nothing.
---------------------------------------------------------------------------
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.\4\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \5\ 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) \6\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
\6\ Id.
---------------------------------------------------------------------------
In particular, the Exchange believes it is reasonable, equitable
and not unfairly discriminatory to offer LMMs in VIX during GTH a
rebate if they meet a certain heightened quoting standard (described
above) to encourage LMMs in VIX to provide increased liquidity. More
specifically, the Exchange believes the amount of the amended rebate
($20,000) is reasonable because it provides an increased rebate for
meeting the heightened quoting standard and takes into consideration
additional costs an LMM may incur. Particularly, the Exchange believes
the proposed amount is such that it will incentivize an appointed LMM
to meet the GTH quoting standards for VIX. The Exchange notes the
proposed amount is also in line with incentives given to LMMs for other
products.\7\ Additionally, if a LMM does not satisfy the heightened
quoting standard, then it will not receive the rebate. The Exchange
believes it is equitable and not unfairly discriminatory to only offer
the rebate to LMMs because it benefits all market participants in GTH
to encourage LMMs to satisfy the heightened quoting standards, which
may increase liquidity during those hours and provide more trading
opportunities and tighter spreads.
---------------------------------------------------------------------------
\7\ See e.g., Cboe Options Fees Schedule, MSCI LMM Incentive
Program.
---------------------------------------------------------------------------
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 does not
believe that the proposed rule change will impose any burden on
intramarket competition that is not necessary or appropriate in
furtherance of the purposes of the Act, because the amended rebate is
intended to encourage LMMs to bring liquidity in VIX during GTH, which
benefits all market participants. Furthermore, the Exchange does not
believe that the proposed rule changes will impose any burden on
intermarket competition that is not necessary or appropriate in
furtherance of the purposes of the Act because VIX is a proprietary
product that will only be traded 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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \8\ and paragraph (f) of Rule 19b-4 \9\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f).
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[[Page 52287]]
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-2018-065 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-2018-065. 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-2018-065 and should be submitted on
or before November 6, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-22425 Filed 10-15-18; 8:45 am]
BILLING CODE 8011-01-P
