Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Rules Governing the Give Up of a Clearing Trading Permit Holder by a Trading Permit Holder on Exchange Transactions, 35433-35436 [2019-15559]
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Federal Register / Vol. 84, No. 141 / Tuesday, July 23, 2019 / Notices
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management investment companies, are
registered under, and remain subject to,
the Investment Company Act, which
imposes various shareholder-voting
requirements that may be applicable to
such funds.20
The proposal also clarifies that the
right not to hold an annual shareholder
meeting, as set forth in amended Section
302 of the Manual, applies only with
respect to the particular securities
specified in amended Section 302.
Thus, although the proposed rule
change excludes a particular NYSE
listed company from holding an annual
shareholder meeting with respect to,
and as a result of listing, the specific
type of security specified in amended
Section 302 of the Manual, if such
company also lists other common stock
or voting preferred stock, or their
equivalent, such company must
nevertheless hold an annual meeting for
the holders of such securities during
each fiscal year.21
The proposed changes to Section 302
of the Manual will also continue to
require companies listing common stock
to hold an annual meeting irrespective
of whether the listed class of common
stock is voting or non-voting stock. This
is consistent with the rules of other
national securities exchanges and will
ensure that all common stock
shareholders, whether holders of voting
or non-voting common stock, have an
opportunity at a shareholder meeting to
engage with management to discuss
company affairs as well as, if required
by a listed company’s governing
documents, to elect directors.22
Given the limited rights and other
interests of the holders of those
securities specified in amended Section
302 of the Manual and the applicability
of federal and state securities laws that
govern shareholder meetings, the
Commission believes that the proposed
rule change reasonably sets forth the
scope of the annual shareholder meeting
requirement and will ensure that the
20 See e.g., Section 16 of the Investment Company
Act, which requires, among others, an investment
company’s initial board of directors to be elected by
the shareholders at an annual or special meeting.
15 U.S.C. 80a–16(a). The Commission notes that
closed-end management investment companies are
still required to hold annual meetings under
Section 302 of the Manual.
21 The Commission notes, for example, that some
of the companies issuing one of the enumerated
listed securities excluded from the annual meeting
requirement may also have their common stock
listed on the NYSE and in that case would, as noted
above, be subject to the annual meeting requirement
in Section 302 of the Manual.
22 See Securities Exchange Act Release Nos.
57268 (February 4, 2008), 73 FR 7614, 7616
(February 8, 2008) (SR–Amex–2006–31) and 53578
(March 30, 2006), 66 FR 17532, 17533 (April 6,
2006) (SR–NASD–2005–073).
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appropriate NYSE listed companies are
required to hold annual shareholder
meetings under NYSE rules, for the
benefit of investors and the public
interest.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,23 that the
proposed rule change (SR–NYSE–2019–
20), be, and it hereby is, approved.
For the Commission, by the Division
of Trading and Markets, pursuant to
delegated authority.24
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–15637 Filed 7–22–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–86401; File No. SR–CBOE–
2019–036]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Its Rules
Governing the Give Up of a Clearing
Trading Permit Holder by a Trading
Permit Holder on Exchange
Transactions
July 17, 2019.
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 3,
2019, 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 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.
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 rules governing the give up of a
Clearing Trading Permit Holder by a
PO 00000
23 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
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).
24 17
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35433
Trading Permit Holder on exchange
transactions. The text of the proposed
rule change is provided in Exhibit 5.
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
the most significant aspects 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
Rule 6.21, which governs the give up of
a Clearing Trading Permit Holder
(‘‘Clearing TPH’’) by a Trading Permit
Holder (‘‘TPH’’) on Exchange
transactions.
Background
By way of background, Cboe Options
Rule 6.21 provides that when a TPH
executes a transaction on the Exchange,
it must give up the name of the Clearing
TPH (the ‘‘Give Up’’) through which the
transaction will be cleared. Rule 6.21
also provides that a TPH may only give
up a ‘‘Designated Give Up’’ or its
‘‘Guarantor.’’ This limitation is enforced
by the Exchange’s trading systems.
A ‘‘Designated Give Up’’ is currently
defined as any Clearing TPH that a TPH
(other than a Market-Maker 5) identifies
to the Exchange, in writing, as a
Clearing TPH that the TPH would like
to have the ability to give up. To
designate a ‘‘Designated Give Up’’ a
TPH must submit written notification,
in a form and manner determined by the
Exchange, to the Membership Services
Department (‘‘MSD’’). Specifically, the
5 For purposes of this rule, references to ‘‘MarketMaker’’ shall refer to Trading Permit Holders acting
in the capacity of a Market-Maker and shall include
all Exchange Market-Maker capacities (e.g.,
Designated Primary Market-Makers and Lead
Market-Makers).
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Federal Register / Vol. 84, No. 141 / Tuesday, July 23, 2019 / Notices
Exchange uses a standardized form
(‘‘Notification Form’’) that a TPH needs
to complete and submit to MSD. The
Exchange notes that a TPH may
currently designate any Clearing TPH as
a Designated Give Up. Additionally,
there is no minimum or maximum
number of Designated Give Ups that a
TPH must identify. Rule 6.21 also
requires that the Exchange notify a
Clearing TPH, in writing and as soon as
practicable, of each TPH that has
identified it as a Designated Give Up.
The Exchange however, will not accept
any instructions from a Clearing TPH to
prohibit a TPH from designating the
Clearing TPH as a Designated Give Up.
Additionally, there is no subjective
evaluation of a TPH’s list of proposed
Designated Give Ups by the Exchange.
Rule 6.21 also defines ‘‘Guarantor’’.
For purposes of Rule 6.21, a
‘‘Guarantor’’ refers to a Clearing TPH
that has issued a Letter of Guarantee or
Letter of Authorization for the executing
TPH under the Exchange Rules that is
in effect at the time of the execution of
the applicable trade.6 An executing TPH
may give up its Guarantor without
having to first designate it to the
Exchange as a ‘‘Designated Give Up.’’ 7
Additionally, the Exchange notes that a
Market-Maker is only enabled to give up
the Guarantor of the Market-Maker
pursuant to Cboe Options Rule 8.5 and
also does not need to identify any
Designated Give Ups.
Beginning in early 2018, certain
Clearing TPHs (in conjunction with the
Securities Industry and Financial
Markets Association (‘‘SIFMA’’))
expressed concerns related to the
process by which executing brokers on
U.S. options exchanges (the
‘‘Exchanges’’) are allowed to designate
or ‘give up’ a clearing firm for purposes
of clearing particular transactions. The
SIFMA-affiliated Clearing Members
have recently identified the current
give-up process as a significant source
of risk for clearing firms. SIFMAaffiliated Clearing Members
subsequently requested that the
Exchanges alleviate this risk by
amending Exchange rules governing the
give up process.8
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6 See
Cboe Options Rule 3.28, Cboe Options Rule
6.72, and Cboe Options Rule 8.5.
7 The Exchange already knows each TPH’s
Guarantor and as such, no further designation or
identification is required of TPHs to enable their
respective Guarantors.
8 Nasdaq PHLX LLC (‘‘Phlx’’) recently modified
its give up procedure to allow clearing members to
‘‘opt in’’ such that the clearing member may specify
which Phlx member organizations are authorized to
give up that clearing member. See Phlx Rule 1037.
See also Securities and Exchange Act Release Nos.
84624 (November 19. 2018), 83 FR 60547 (Notice);
85136 (February 14, 2019), 84 FR 5526 (February
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Proposed Rule Change
Based on the above, the Exchange
now seeks to amend its rules regarding
the current give up process in order to
allow a Clearing TPH to ‘‘opt in’’, at The
Options Clearing Corporation (‘‘OCC’’)
clearing number level, to a feature that,
if enabled by the Clearing TPH, will
allow the Clearing TPH to specify which
TPH organizations are authorized to
give up that OCC clearing number. As
proposed, Rule 6.21, will continue to
provide that for each transaction in
which a TPH participates, the TPH must
immediately give up the name of the
Clearing Trading Permit Holder through
which the transaction will be cleared
(‘‘give up’’). Rule 6.21 will also continue
to require that TPHs identify to the
Exchange, via the Notification Form, all
Clearing TPHs that the TPH would like
to have the ability to give up (i.e.,
Designated Give Ups). However, the
Exchange proposes to also add to Rule
6.21(a) that Clearing TPHs may elect to
‘‘Opt In,’’ as defined in paragraph (c) of
the proposed Rule and described further
below, and restrict one or more of its
OCC number(s) (‘‘Restricted OCC
Number’’). A TPH may Give Up a
Restricted OCC Number provided the
TPH has written authorization as
described in paragraph (c)(ii)
(‘‘Authorized TPH’’). The Exchange
notes that if a TPH identifies a
particular Clearing TPH as a Designated
Give Up, but that Clearing TPH has
restricted its OCC number(s) and has not
authorized the TPH to give it up, then
the Exchange will not give effect to the
designation on the Notification Form
(i.e., the TPH will not be able to give up
that Clearing TPH even though it was
identified as a Designated Give Up).
Similarly, if a Clearing TPH authorizes
a TPH to give up its Restricted OCC
Number(s), the Exchange will not enable
that Clearing TPH as a give up for that
TPH until and unless the TPH identifies
that Clearing TPH as a Designated Give
Up on a Notification Form. In light of
Clearing TPHs having the ability to
restrict their OCC numbers from being
given up by particular TPHs, the
Exchange also proposes to eliminate the
21, 2019) (SR–Phlx–2018–72) (Approval Order).
NYSE Arca, Inc., (‘‘Nyse Arca’’) and NYSE
American LLC (‘‘NYSE American’’) also recently
submitted rule filings to modify their respective
give up rules to adopt an ‘‘opt in’’ process. See SR–
NYSEArca 2019–32 and SR–NYSEAMER–2019–17.
The Exchange’s proposal leads to the same result
of providing its Clearing TPHs the ability to control
risk and includes Phlx’s, NYSE Arca’s and NYSE
American’s ‘‘opt in’’ process, but it otherwise
differs slightly in process from their give up rules.
For example, the Exchange intends to maintain its
provisions relating to Designated Give Ups and
eliminate its provisions relating to the rejection of
a trade.
PO 00000
Frm 00066
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process for Clearing TPHs to ‘‘reject’’
trades. As such, the Exchange proposes
to eliminate subparagraphs (e) and (f) of
Rule 6.21 and any other references to
the process in Rule 6.21.
Proposed Rule 6.21(c) provides that
Clearing TPHs may request the
Exchange restrict one or more of their
OCC clearing numbers (‘‘Opt In’’) from
being given up unless otherwise
authorized. If a Clearing TPH Opts In,
the Exchange will require written
authorization from the Clearing TPH
permitting a TPH to give up a Clearing
TPH’s Restricted OCC Number. An Opt
In would remain in effect until the
Clearing TPH terminates the Opt In as
described in subparagraph (iii). If a
Clearing TPH does not Opt In, that
Clearing TPH’s OCC number may be
subject to being given up by any TPH
that has designated it as a Designated
Give Up. Proposed Rule 6.21(c)(i) will
set forth the process by which a Clearing
TPH may Opt In. Specifically, a Clearing
TPH may Opt In by sending a completed
‘‘Clearing TPH Restriction Form’’ listing
all Restricted OCC Numbers and
Authorized TPHs.9 A copy of the
proposed form is included in Exhibit 3.
A Clearing TPH may elect to restrict one
or more OCC clearing numbers that are
registered in its name at OCC. The
Clearing TPH would be required to
submit the Clearing TPH Restriction
Form to the Exchange’s MSD as
described on the form. Once submitted,
the Exchange requires ninety days
before a Restricted OCC Number is
effective within the System. This time
period is to provide adequate time for
the TPH users of that Restricted OCC
Number who are not initially specified
by the Clearing TPH as Authorized
TPHs to obtain the required written
authorization from the Clearing TPH for
that Restricted OCC Number. Such
member users would still be able to give
up that Restricted OCC Number during
this ninety day period (i.e., until the
number becomes restricted within the
System).
Proposed Rule 6.21(c)(ii) will set forth
the process for TPHs to give up a
Clearing TPH’s Restricted OCC Number.
Specifically, a TPH desiring to give up
a Restricted OCC Number must become
an Authorized TPH. The Clearing TPH
will be required to authorize a TPH as
described in subparagraph (i) or (iii) of
9 This form will be available on the Exchange’s
website. The Exchange will also maintain, on its
website, a list of the Restricted OCC Numbers,
which will be updated on a regular basis, and the
Clearing TPH’s contact information to assist TPH
organizations (to the extent they are not already
Authorized TPH Organizations) with requesting
authorization for a Restricted OCC Number. The
Exchange may utilize additional means to inform its
members of such updates on a periodic basis.
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Federal Register / Vol. 84, No. 141 / Tuesday, July 23, 2019 / Notices
Rule 6.21(c) (i.e., through a Clearing
TPH Restriction Form), unless the
Restricted OCC Number is already
subject to a Letter of Guarantee that the
TPH is a party to, as set forth in Rule
6.21(b)(vi). Pursuant to proposed Rule
6.21(c)(iii), a Clearing TPH may amend
the list of its Authorized TPHs or
Restricted OCC Numbers by submitting
a new Clearing TPH Restriction Form to
the Exchange’s MSD indicating the
amendment as described on the form.
Once a Restricted OCC Number is
effective within the System pursuant to
Rule 6.21(c)(i), the Exchange may
permit the Clearing TPH to authorize, or
remove authorization for, a TPH to give
up the Restricted OCC Number intra-day
only in unusual circumstances, and on
the next business day in all regular
circumstances. The Exchange will
promptly notify TPH organizations if
they are no longer authorized to give up
a Clearing TPH’s Restricted OCC
Number. If a Clearing TPH removes a
Restricted OCC Number, any TPH may
give up that OCC clearing number once
the removal has become effective on or
before the next business day, provided
that Clearing TPH has been designated
as a Designated Give Up.
The Exchange also proposes to amend
current subparagraph (c) (System) (to be
renumbered to subparagraph (d)) of Rule
6.21 to clarify that in addition to the
Exchange’s system not accepting orders
that identify a give up that is not at the
time a Designated Give Up or a
Guarantor, the System will also reject
any order that designates a Restricted
OCC Number for which the Trading
Permit Holder is not an Authorized
TPH.
The Exchange proposes to amend
current subparagraph (d) (Notice to
Clearing Trading Permit Holders) (to be
renumbered to subparagraph (e)) of Rule
6.21 to provide that the Exchange will
provide notice to TPHs that they are
authorized or unauthorized by Clearing
TPHs.
The Exchange also proposes to adopt
subparagraph (g) of Rule 6.21 to provide
that an intentional misuse of this Rule
is impermissible, and may be treated as
a violation of Rule 4.1, titled ‘‘Just and
Equitable Principles of Trade’’. This
language will make clear that the
Exchange will regulate an intentional
misuse of this Rule, and that such
behavior would be a violation of
Exchange rules. The proposed language
is similar to corresponding provisions in
other exchanges’ give-up rules.10
Lastly, the Exchange proposes to
amend its current Trading Permit
Holder Notification of Designated Give10 See
e.g., Phlx Rule 1037(e).
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16:43 Jul 22, 2019
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Ups Form (‘‘Designated Give-Ups
Form’’), effective October 7, 2019. The
Exchange notes that it will be migrating
its trading platform onto new
technology on October 7, 2019.
Following the technology migration, the
Exchange and each of its affiliated
options exchanges (i.e., Cboe C2
Exchange, Inc., Cboe BZX Exchange,
Inc. and Cboe BYX Exchange, Inc.
(collectively, ‘‘Cboe Markets’’) will be
on the same technology platform. To
provide further harmonization across
the Cboe Markets and provide more
seamless administration of the Give-Up
rule, the Exchange proposes to eliminate
the current Designated Give Ups Form
and adopt a new form which would be
applicable to all Cboe Markets going
forward.11 The proposed Designated
Give-Ups Form is included in Exhibit 3.
Implementation Date
The Exchange proposes to announce
the implementation date of the
proposed rule change in an Exchange
Notice, to be published no later than
thirty (30) days following the operative
date. The implementation date will be
no later than sixty (60) days following
the operative date.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the Act
and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.12 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 13 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) 14 requirement that
the rules of an exchange not be designed
11 The Exchange notes that it will not give effect
to any instructions on the Designated Give-Ups
Form for a particular Cboe Market until and unless
such market files a rule change to adopt the new
form. The Exchange anticipates filing copycat rule
filings for each of its affiliated options exchange in
the near future.
12 15 U.S.C. 78f(b).
13 15 U.S.C. 78f(b)(5).
14 Id.
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35435
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
Particularly, as discussed above,
several clearing firms affiliated with
SIFMA have recently expressed
concerns relating to the current give up
process, which permits member
organizations to identify any Clearing
TPH as a Designated Give Up for
purposes of clearing particular
transactions, and have identified the
current give up process (i.e., a process
that lacks authorization) as a significant
source of risk for clearing firms. The
Exchange believes that the proposed
changes to Rule 6.21 help alleviate this
risk by enabling Clearing TPHs to ‘Opt
In’ to restrict one or more of its OCC
clearing numbers (i.e., Restricted OCC
Numbers), and to specify which
Authorized TPHs may give up those
Restricted OCC Numbers. As described
above, all other TPHs would be required
to receive written authorization from the
Clearing TPH before they can give up
that Clearing TPH’s Restricted OCC
Number. The Exchange believes that
this authorization provides proper
safeguards and protections for Clearing
TPHs as it provides controls for Clearing
TPHs to restrict access to their OCC
clearing numbers, allowing access only
to those Authorized TPHs upon their
request. The Exchange also believes that
its proposed Clearing Trading Permit
Holder Restriction Form allows the
Exchange to receive in a uniform
fashion, written and transparent
authorization from Clearing TPHs,
which ensures seamless administration
of the Rule.
The Exchange believes that the
proposed Opt In process strikes the right
balance between the various views and
interests across the industry. For
example, although the proposed rule
would require TPHs (other than
Authorized TPHs) to seek authorization
from Clearing TPHs in order to have the
ability to give them up, each TPH will
still have the ability to give up a
Restricted OCC Number that is subject
to a Letter of Guarantee without
obtaining any further authorization if
that TPH is party to that arrangement.
The Exchange also notes that to the
extent the executing TPH has a clearing
arrangement with a Clearing TPH (i.e.,
through a Letter of Guarantee), a trade
can be assigned to the executing TPH’s
guarantor. Accordingly, the Exchange
believes that the proposed rule change
is reasonable and continues to provide
certainty that a Clearing TPH would be
responsible for a trade, which protects
investors and the public interest.
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B. Self-Regulatory Organization’s
Statement on Burden on Competition
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The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange does not believe that the
proposed rule change will impose an
unnecessary burden on intramarket
competition because it would apply
equally to all similarly situated TPHs.
The Exchange also notes that, should
the proposed changes make the
Exchange more attractive for trading,
market participants trading on other
exchanges can always elect to become
TPHs on the Exchange to take advantage
of the trading opportunities.
Furthermore, the proposed rule change
does not address any competitive issues
and ultimately, the target of the
Exchange’s proposal is to reduce risk for
Clearing TPHs under the current give up
model. Clearing firms make financial
decisions based on risk and reward, and
while it is generally in their beneficial
interest to clear transactions for market
participants in order to generate profit,
it is the Exchange’s understanding from
SIFMA and clearing firms that the
current process can create significant
risk when the clearing firm can be given
up on any market participant’s
transaction, even where there is no prior
customer relationship or authorization
for that designated transaction. In the
absence of a mechanism that governs a
market participant’s use of a Clearing
TPH’s services, the Exchange’s proposal
may indirectly facilitate the ability of a
Clearing TPH to manage their existing
customer relationships while continuing
to allow market participant choice in
broker execution services. While
Clearing TPHs may compete with
executing brokers for order flow, the
Exchange does not believe this proposal
imposes an undue burden on
competition. Rather, the Exchange
believes that the proposed rule change
balances the need for Clearing TPHs to
manage risks and allows them to
address outlier behavior from executing
brokers while still allowing freedom of
choice to select an executing broker.
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 written comments on the
proposed rule change.
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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 15 and Rule 19b–4(f)(6) 16
thereunder. At any time within 60 days
of the filing of the proposed rule change,
the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission will institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
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–2019–036 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–2019–036. 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–2019–036 and
should be submitted on or before
August 13, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–15559 Filed 7–22–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–86398; File No. SR–ISE–
2019–20]
Self-Regulatory Organizations; Nasdaq
ISE, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Options 2
(Options Market Participants) and
Options 3 (Options Trading Rules)
July 17, 2019.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on July 10,
2019, Nasdaq ISE, LLC (‘‘ISE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘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.
17 17
15 15
U.S.C. 78s(b)(3)(A).
16 17 CFR 240.19b–4(f)(6).
PO 00000
Frm 00068
Fmt 4703
Sfmt 4703
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\23JYN1.SGM
23JYN1
]]>Agencies
[Federal Register Volume 84, Number 141 (Tuesday, July 23, 2019)]
[Notices]
[Pages 35433-35436]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-15559]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-86401; File No. SR-CBOE-2019-036]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Its Rules Governing the Give Up of a Clearing Trading Permit Holder by
a Trading Permit Holder on Exchange Transactions
July 17, 2019.
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 3, 2019, 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
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).
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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 rules governing the give up of a Clearing Trading Permit
Holder by a Trading Permit Holder on exchange transactions. The text of
the proposed rule change is provided in Exhibit 5.
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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Rule 6.21, which governs the give up
of a Clearing Trading Permit Holder (``Clearing TPH'') by a Trading
Permit Holder (``TPH'') on Exchange transactions.
Background
By way of background, Cboe Options Rule 6.21 provides that when a
TPH executes a transaction on the Exchange, it must give up the name of
the Clearing TPH (the ``Give Up'') through which the transaction will
be cleared. Rule 6.21 also provides that a TPH may only give up a
``Designated Give Up'' or its ``Guarantor.'' This limitation is
enforced by the Exchange's trading systems.
A ``Designated Give Up'' is currently defined as any Clearing TPH
that a TPH (other than a Market-Maker \5\) identifies to the Exchange,
in writing, as a Clearing TPH that the TPH would like to have the
ability to give up. To designate a ``Designated Give Up'' a TPH must
submit written notification, in a form and manner determined by the
Exchange, to the Membership Services Department (``MSD'').
Specifically, the
[[Page 35434]]
Exchange uses a standardized form (``Notification Form'') that a TPH
needs to complete and submit to MSD. The Exchange notes that a TPH may
currently designate any Clearing TPH as a Designated Give Up.
Additionally, there is no minimum or maximum number of Designated Give
Ups that a TPH must identify. Rule 6.21 also requires that the Exchange
notify a Clearing TPH, in writing and as soon as practicable, of each
TPH that has identified it as a Designated Give Up. The Exchange
however, will not accept any instructions from a Clearing TPH to
prohibit a TPH from designating the Clearing TPH as a Designated Give
Up. Additionally, there is no subjective evaluation of a TPH's list of
proposed Designated Give Ups by the Exchange.
---------------------------------------------------------------------------
\5\ For purposes of this rule, references to ``Market-Maker''
shall refer to Trading Permit Holders acting in the capacity of a
Market-Maker and shall include all Exchange Market-Maker capacities
(e.g., Designated Primary Market-Makers and Lead Market-Makers).
---------------------------------------------------------------------------
Rule 6.21 also defines ``Guarantor''. For purposes of Rule 6.21, a
``Guarantor'' refers to a Clearing TPH that has issued a Letter of
Guarantee or Letter of Authorization for the executing TPH under the
Exchange Rules that is in effect at the time of the execution of the
applicable trade.\6\ An executing TPH may give up its Guarantor without
having to first designate it to the Exchange as a ``Designated Give
Up.'' \7\ Additionally, the Exchange notes that a Market-Maker is only
enabled to give up the Guarantor of the Market-Maker pursuant to Cboe
Options Rule 8.5 and also does not need to identify any Designated Give
Ups.
---------------------------------------------------------------------------
\6\ See Cboe Options Rule 3.28, Cboe Options Rule 6.72, and Cboe
Options Rule 8.5.
\7\ The Exchange already knows each TPH's Guarantor and as such,
no further designation or identification is required of TPHs to
enable their respective Guarantors.
---------------------------------------------------------------------------
Beginning in early 2018, certain Clearing TPHs (in conjunction with
the Securities Industry and Financial Markets Association (``SIFMA''))
expressed concerns related to the process by which executing brokers on
U.S. options exchanges (the ``Exchanges'') are allowed to designate or
`give up' a clearing firm for purposes of clearing particular
transactions. The SIFMA-affiliated Clearing Members have recently
identified the current give-up process as a significant source of risk
for clearing firms. SIFMA-affiliated Clearing Members subsequently
requested that the Exchanges alleviate this risk by amending Exchange
rules governing the give up process.\8\
---------------------------------------------------------------------------
\8\ Nasdaq PHLX LLC (``Phlx'') recently modified its give up
procedure to allow clearing members to ``opt in'' such that the
clearing member may specify which Phlx member organizations are
authorized to give up that clearing member. See Phlx Rule 1037. See
also Securities and Exchange Act Release Nos. 84624 (November 19.
2018), 83 FR 60547 (Notice); 85136 (February 14, 2019), 84 FR 5526
(February 21, 2019) (SR-Phlx-2018-72) (Approval Order). NYSE Arca,
Inc., (``Nyse Arca'') and NYSE American LLC (``NYSE American'') also
recently submitted rule filings to modify their respective give up
rules to adopt an ``opt in'' process. See SR-NYSEArca 2019-32 and
SR-NYSEAMER-2019-17. The Exchange's proposal leads to the same
result of providing its Clearing TPHs the ability to control risk
and includes Phlx's, NYSE Arca's and NYSE American's ``opt in''
process, but it otherwise differs slightly in process from their
give up rules. For example, the Exchange intends to maintain its
provisions relating to Designated Give Ups and eliminate its
provisions relating to the rejection of a trade.
---------------------------------------------------------------------------
Proposed Rule Change
Based on the above, the Exchange now seeks to amend its rules
regarding the current give up process in order to allow a Clearing TPH
to ``opt in'', at The Options Clearing Corporation (``OCC'') clearing
number level, to a feature that, if enabled by the Clearing TPH, will
allow the Clearing TPH to specify which TPH organizations are
authorized to give up that OCC clearing number. As proposed, Rule 6.21,
will continue to provide that for each transaction in which a TPH
participates, the TPH must immediately give up the name of the Clearing
Trading Permit Holder through which the transaction will be cleared
(``give up''). Rule 6.21 will also continue to require that TPHs
identify to the Exchange, via the Notification Form, all Clearing TPHs
that the TPH would like to have the ability to give up (i.e.,
Designated Give Ups). However, the Exchange proposes to also add to
Rule 6.21(a) that Clearing TPHs may elect to ``Opt In,'' as defined in
paragraph (c) of the proposed Rule and described further below, and
restrict one or more of its OCC number(s) (``Restricted OCC Number'').
A TPH may Give Up a Restricted OCC Number provided the TPH has written
authorization as described in paragraph (c)(ii) (``Authorized TPH'').
The Exchange notes that if a TPH identifies a particular Clearing TPH
as a Designated Give Up, but that Clearing TPH has restricted its OCC
number(s) and has not authorized the TPH to give it up, then the
Exchange will not give effect to the designation on the Notification
Form (i.e., the TPH will not be able to give up that Clearing TPH even
though it was identified as a Designated Give Up). Similarly, if a
Clearing TPH authorizes a TPH to give up its Restricted OCC Number(s),
the Exchange will not enable that Clearing TPH as a give up for that
TPH until and unless the TPH identifies that Clearing TPH as a
Designated Give Up on a Notification Form. In light of Clearing TPHs
having the ability to restrict their OCC numbers from being given up by
particular TPHs, the Exchange also proposes to eliminate the process
for Clearing TPHs to ``reject'' trades. As such, the Exchange proposes
to eliminate subparagraphs (e) and (f) of Rule 6.21 and any other
references to the process in Rule 6.21.
Proposed Rule 6.21(c) provides that Clearing TPHs may request the
Exchange restrict one or more of their OCC clearing numbers (``Opt
In'') from being given up unless otherwise authorized. If a Clearing
TPH Opts In, the Exchange will require written authorization from the
Clearing TPH permitting a TPH to give up a Clearing TPH's Restricted
OCC Number. An Opt In would remain in effect until the Clearing TPH
terminates the Opt In as described in subparagraph (iii). If a Clearing
TPH does not Opt In, that Clearing TPH's OCC number may be subject to
being given up by any TPH that has designated it as a Designated Give
Up. Proposed Rule 6.21(c)(i) will set forth the process by which a
Clearing TPH may Opt In. Specifically, a Clearing TPH may Opt In by
sending a completed ``Clearing TPH Restriction Form'' listing all
Restricted OCC Numbers and Authorized TPHs.\9\ A copy of the proposed
form is included in Exhibit 3. A Clearing TPH may elect to restrict one
or more OCC clearing numbers that are registered in its name at OCC.
The Clearing TPH would be required to submit the Clearing TPH
Restriction Form to the Exchange's MSD as described on the form. Once
submitted, the Exchange requires ninety days before a Restricted OCC
Number is effective within the System. This time period is to provide
adequate time for the TPH users of that Restricted OCC Number who are
not initially specified by the Clearing TPH as Authorized TPHs to
obtain the required written authorization from the Clearing TPH for
that Restricted OCC Number. Such member users would still be able to
give up that Restricted OCC Number during this ninety day period (i.e.,
until the number becomes restricted within the System).
---------------------------------------------------------------------------
\9\ This form will be available on the Exchange's website. The
Exchange will also maintain, on its website, a list of the
Restricted OCC Numbers, which will be updated on a regular basis,
and the Clearing TPH's contact information to assist TPH
organizations (to the extent they are not already Authorized TPH
Organizations) with requesting authorization for a Restricted OCC
Number. The Exchange may utilize additional means to inform its
members of such updates on a periodic basis.
---------------------------------------------------------------------------
Proposed Rule 6.21(c)(ii) will set forth the process for TPHs to
give up a Clearing TPH's Restricted OCC Number. Specifically, a TPH
desiring to give up a Restricted OCC Number must become an Authorized
TPH. The Clearing TPH will be required to authorize a TPH as described
in subparagraph (i) or (iii) of
[[Page 35435]]
Rule 6.21(c) (i.e., through a Clearing TPH Restriction Form), unless
the Restricted OCC Number is already subject to a Letter of Guarantee
that the TPH is a party to, as set forth in Rule 6.21(b)(vi). Pursuant
to proposed Rule 6.21(c)(iii), a Clearing TPH may amend the list of its
Authorized TPHs or Restricted OCC Numbers by submitting a new Clearing
TPH Restriction Form to the Exchange's MSD indicating the amendment as
described on the form. Once a Restricted OCC Number is effective within
the System pursuant to Rule 6.21(c)(i), the Exchange may permit the
Clearing TPH to authorize, or remove authorization for, a TPH to give
up the Restricted OCC Number intra-day only in unusual circumstances,
and on the next business day in all regular circumstances. The Exchange
will promptly notify TPH organizations if they are no longer authorized
to give up a Clearing TPH's Restricted OCC Number. If a Clearing TPH
removes a Restricted OCC Number, any TPH may give up that OCC clearing
number once the removal has become effective on or before the next
business day, provided that Clearing TPH has been designated as a
Designated Give Up.
The Exchange also proposes to amend current subparagraph (c)
(System) (to be renumbered to subparagraph (d)) of Rule 6.21 to clarify
that in addition to the Exchange's system not accepting orders that
identify a give up that is not at the time a Designated Give Up or a
Guarantor, the System will also reject any order that designates a
Restricted OCC Number for which the Trading Permit Holder is not an
Authorized TPH.
The Exchange proposes to amend current subparagraph (d) (Notice to
Clearing Trading Permit Holders) (to be renumbered to subparagraph (e))
of Rule 6.21 to provide that the Exchange will provide notice to TPHs
that they are authorized or unauthorized by Clearing TPHs.
The Exchange also proposes to adopt subparagraph (g) of Rule 6.21
to provide that an intentional misuse of this Rule is impermissible,
and may be treated as a violation of Rule 4.1, titled ``Just and
Equitable Principles of Trade''. This language will make clear that the
Exchange will regulate an intentional misuse of this Rule, and that
such behavior would be a violation of Exchange rules. The proposed
language is similar to corresponding provisions in other exchanges'
give-up rules.\10\
---------------------------------------------------------------------------
\10\ See e.g., Phlx Rule 1037(e).
---------------------------------------------------------------------------
Lastly, the Exchange proposes to amend its current Trading Permit
Holder Notification of Designated Give-Ups Form (``Designated Give-Ups
Form''), effective October 7, 2019. The Exchange notes that it will be
migrating its trading platform onto new technology on October 7, 2019.
Following the technology migration, the Exchange and each of its
affiliated options exchanges (i.e., Cboe C2 Exchange, Inc., Cboe BZX
Exchange, Inc. and Cboe BYX Exchange, Inc. (collectively, ``Cboe
Markets'') will be on the same technology platform. To provide further
harmonization across the Cboe Markets and provide more seamless
administration of the Give-Up rule, the Exchange proposes to eliminate
the current Designated Give Ups Form and adopt a new form which would
be applicable to all Cboe Markets going forward.\11\ The proposed
Designated Give-Ups Form is included in Exhibit 3.
---------------------------------------------------------------------------
\11\ The Exchange notes that it will not give effect to any
instructions on the Designated Give-Ups Form for a particular Cboe
Market until and unless such market files a rule change to adopt the
new form. The Exchange anticipates filing copycat rule filings for
each of its affiliated options exchange in the near future.
---------------------------------------------------------------------------
Implementation Date
The Exchange proposes to announce the implementation date of the
proposed rule change in an Exchange Notice, to be published no later
than thirty (30) days following the operative date. The implementation
date will be no later than sixty (60) days following the operative
date.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act.\12\ Specifically, the Exchange believes the proposed rule change
is consistent with the Section 6(b)(5) \13\ 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) \14\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78f(b).
\13\ 15 U.S.C. 78f(b)(5).
\14\ Id.
---------------------------------------------------------------------------
Particularly, as discussed above, several clearing firms affiliated
with SIFMA have recently expressed concerns relating to the current
give up process, which permits member organizations to identify any
Clearing TPH as a Designated Give Up for purposes of clearing
particular transactions, and have identified the current give up
process (i.e., a process that lacks authorization) as a significant
source of risk for clearing firms. The Exchange believes that the
proposed changes to Rule 6.21 help alleviate this risk by enabling
Clearing TPHs to `Opt In' to restrict one or more of its OCC clearing
numbers (i.e., Restricted OCC Numbers), and to specify which Authorized
TPHs may give up those Restricted OCC Numbers. As described above, all
other TPHs would be required to receive written authorization from the
Clearing TPH before they can give up that Clearing TPH's Restricted OCC
Number. The Exchange believes that this authorization provides proper
safeguards and protections for Clearing TPHs as it provides controls
for Clearing TPHs to restrict access to their OCC clearing numbers,
allowing access only to those Authorized TPHs upon their request. The
Exchange also believes that its proposed Clearing Trading Permit Holder
Restriction Form allows the Exchange to receive in a uniform fashion,
written and transparent authorization from Clearing TPHs, which ensures
seamless administration of the Rule.
The Exchange believes that the proposed Opt In process strikes the
right balance between the various views and interests across the
industry. For example, although the proposed rule would require TPHs
(other than Authorized TPHs) to seek authorization from Clearing TPHs
in order to have the ability to give them up, each TPH will still have
the ability to give up a Restricted OCC Number that is subject to a
Letter of Guarantee without obtaining any further authorization if that
TPH is party to that arrangement. The Exchange also notes that to the
extent the executing TPH has a clearing arrangement with a Clearing TPH
(i.e., through a Letter of Guarantee), a trade can be assigned to the
executing TPH's guarantor. Accordingly, the Exchange believes that the
proposed rule change is reasonable and continues to provide certainty
that a Clearing TPH would be responsible for a trade, which protects
investors and the public interest.
[[Page 35436]]
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 not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange does not believe
that the proposed rule change will impose an unnecessary burden on
intramarket competition because it would apply equally to all similarly
situated TPHs. The Exchange also notes that, should the proposed
changes make the Exchange more attractive for trading, market
participants trading on other exchanges can always elect to become TPHs
on the Exchange to take advantage of the trading opportunities.
Furthermore, the proposed rule change does not address any competitive
issues and ultimately, the target of the Exchange's proposal is to
reduce risk for Clearing TPHs under the current give up model. Clearing
firms make financial decisions based on risk and reward, and while it
is generally in their beneficial interest to clear transactions for
market participants in order to generate profit, it is the Exchange's
understanding from SIFMA and clearing firms that the current process
can create significant risk when the clearing firm can be given up on
any market participant's transaction, even where there is no prior
customer relationship or authorization for that designated transaction.
In the absence of a mechanism that governs a market participant's use
of a Clearing TPH's services, the Exchange's proposal may indirectly
facilitate the ability of a Clearing TPH to manage their existing
customer relationships while continuing to allow market participant
choice in broker execution services. While Clearing TPHs may compete
with executing brokers for order flow, the Exchange does not believe
this proposal imposes an undue burden on competition. Rather, the
Exchange believes that the proposed rule change balances the need for
Clearing TPHs to manage risks and allows them to address outlier
behavior from executing brokers while still allowing freedom of choice
to select an executing broker.
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 written 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 \15\ and
Rule 19b-4(f)(6) \16\ 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.
---------------------------------------------------------------------------
\15\ 15 U.S.C. 78s(b)(3)(A).
\16\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
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-2019-036 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-2019-036. 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-2019-036 and should be submitted on
or before August 13, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
---------------------------------------------------------------------------
\17\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-15559 Filed 7-22-19; 8:45 am]
BILLING CODE 8011-01-P
