Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating To Amend Rule 12.3 by Extending the Credit Option Margin Pilot Program Through July 20, 2020, 35702-35704 [2019-15672]
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35702
Federal Register / Vol. 84, No. 142 / Wednesday, July 24, 2019 / Notices
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SECURITIES AND EXCHANGE
COMMISSION
Jill M. Peterson,
Assistant Secretary.
July 18, 2019.
[FR Doc. 2019–15695 Filed 7–23–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meetings
Notice is hereby given,
pursuant to the provisions of the
Government in the Sunshine Act, Public
Law 94–409, that the Securities and
Exchange Commission Fixed Income
Market Structure Advisory Committee
(‘‘FIMSAC’’) will hold a public meeting
on Monday, July 29, 2019 at 9:30 a.m.
TIME AND DATE:
The meeting will be held in
Multi-Purpose Room LL–006 at the
Commission’s headquarters, 100 F
Street NE, Washington, DC.
PLACE:
The meeting will begin at 9:30
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Seating will be on a first-come, firstserved basis. Doors will open at 9:00
a.m. Visitors will be subject to security
checks. The meeting will be webcast on
the Commission’s website at
www.sec.gov.
STATUS:
On July 1,
2019, the Commission published notice
of the Committee meeting (Release No.
34–86253), indicating that the meeting
is open to the public and inviting the
public to submit written comments to
the Committee. This Sunshine Act
notice is being issued because a majority
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MATTERS TO BE CONSIDERED:
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CONTACT PERSON FOR MORE INFORMATION:
For further information, please contact
Vanessa A. Countryman from the Office
of the Secretary at (202) 551–5400.
Dated: July 22, 2019.
Vanessa A. Countryman,
Secretary.
[Release No. 34–86411; File No. SR–CBOE–
2019–037]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Relating To Amend Rule
12.3 by Extending the Credit Option
Margin Pilot Program Through July 20,
2020
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 16,
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 and II below, which Items have
been prepared by the Exchange. The
Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of
the Act 3 and Rule 19b–4(f)(6)
thereunder.4 The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
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 20, 2020. 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
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
[FR Doc. 2019–15826 Filed 7–22–19; 4:15 pm]
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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 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
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, July
18, 2017, July 18, 2018 and July 18,
2019, 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
20, 2020.9
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), 81083 (July 6, 2017) 82 FR 32219 (July 12,
2017) (SR–CBOE–2017–051), and 83672 (July 19,
2018) 83 FR 35305 (July 25, 2018) (SR–CBOE–2018–
052).
9 The Exchange is filing the proposed rule change
for immediate effectiveness. The Exchange is
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Federal Register / Vol. 84, No. 142 / Wednesday, July 24, 2019 / Notices
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.
khammond on DSKBBV9HB2PROD with NOTICES
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.10 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 11 requirements that the rules of
an exchange be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and 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) 12 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
proposing that the implementation date of the
proposed rule change will be July 18, 2019. The
proposed rule change will expire on July 20, 2020,
which is the same date FINRA’s corresponding
program expires.
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(5).
12 Id.
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35703
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.
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.
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.
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:
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 13 and Rule 19b–4(f)(6) 14
thereunder.
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.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
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. The
Exchange has satisfied this requirement.
15 For purposes only of waiving the 30-day
operative delay, the Commission has also
PO 00000
13 15
14 17
Frm 00116
Fmt 4703
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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–2019–037 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–2019–037. 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
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
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Federal Register / Vol. 84, No. 142 / Wednesday, July 24, 2019 / Notices
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–2019–037 and
should be submitted on or before
August 14, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–15672 Filed 7–23–19; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #16045 and #16046;
OHIO Disaster Number OH–00061]
Presidential Declaration of a Major
Disaster for Public Assistance Only for
the State of Ohio
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
khammond on DSKBBV9HB2PROD with NOTICES
16 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
16:53 Jul 23, 2019
Jkt 247001
For Physical Damage:
Non-Profit Organizations with
Credit Available Elsewhere ...
Non-Profit Organizations without Credit Available Elsewhere .....................................
For Economic Injury:
Non-Profit Organizations without Credit Available Elsewhere .....................................
Notice is
hereby given that as a result of the
President’s major disaster declaration on
07/17/2019, applications for disaster
loans may be filed at the address listed
above or other locally announced
locations.
The following areas have been
determined to be adversely affected by
the disaster:
Primary Counties (Physical Damage and
Percent
Economic Injury Loans): Cameron,
Hidalgo, Willacy.
Contiguous Counties (Economic Injury
2.750
Loans Only):
Texas: Brooks, Kenedy, Starr.
The Interest Rates are:
Percent
2.750
The number assigned to this disaster
for physical damage is 16045C and for
economic injury is 160460.
(Catalog of Federal Domestic Assistance
Number 59008)
Cynthia Pitts,
Acting Associate Administrator for Disaster
Assistance.
BILLING CODE 8026–03–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #16043 and #16044;
TEXAS Disaster Number TX–00519]
Presidential Declaration of a Major
Disaster for the State of TEXAS
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
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Frm 00117
Fmt 4703
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For Physical Damage:
Homeowners with Credit Available Elsewhere ......................
Homeowners without Credit
Available Elsewhere ..............
Businesses with Credit Available Elsewhere ......................
Businesses
without
Credit
Available Elsewhere ..............
Non-Profit Organizations with
Credit Available Elsewhere ...
Non-Profit Organizations without Credit Available Elsewhere .....................................
For Economic Injury:
Businesses & Small Agricultural
Cooperatives without Credit
Available Elsewhere ..............
Non-Profit Organizations without Credit Available Elsewhere .....................................
3.875
1.938
8.000
4.000
2.750
2.750
4.000
2.750
The number assigned to this disaster
for physical damage is 160436 and for
economic injury is 160440.
(Catalog of Federal Domestic Assistance
Number 59008)
This is a Notice of the
Presidential declaration of a major
disaster for the State of Texas (FEMA–
4454–DR), dated 07/17/2019.
Incident: Severe Storms and Flooding.
Incident Period: 06/24/2019 through
06/25/2019.
DATES: Issued on 07/17/2019.
Physical Loan Application Deadline
Date: 09/16/2019.
Economic Injury (EIDL) Loan
Application Deadline Date: 04/17/2020.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street SW, Suite 6050,
Washington, DC 20416, (202) 205–6734.
SUMMARY:
SUPPLEMENTARY INFORMATION:
2.750
[FR Doc. 2019–15677 Filed 7–23–19; 8:45 am]
This is a Notice of the
Presidential declaration of a major
disaster for Public Assistance Only for
the State of Ohio (FEMA–4447–DR),
dated 07/17/2019.
Incident: Severe Storms, Straight-line
Winds, Tornadoes, Flooding, and
Landslides.
Incident Period: 05/27/2019 through
05/29/2019.
DATES: Issued on 07/17/2019.
Physical Loan Application Deadline
Date: 09/16/2019.
Economic Injury (EIDL) Loan
Application Deadline Date: 04/17/2020.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street SW, Suite 6050,
Washington, DC 20416, (202) 205–6734.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of the
President’s major disaster declaration on
07/17/2019, Private Non-Profit
organizations that provide essential
services of a governmental nature may
SUMMARY:
file disaster loan applications at the
address listed above or other locally
announced locations.
The following areas have been
determined to be adversely affected by
the disaster:
Primary Counties: Columbiana, Greene,
Mercer, Montgomery
The Interest Rates are:
Cynthia Pitts,
Acting Associate Administrator for Disaster
Assistance.
[FR Doc. 2019–15678 Filed 7–23–19; 8:45 am]
BILLING CODE 8026–03–P
DEPARTMENT OF STATE
[Public Notice 10820]
30-Day Notice of Proposed Information
Collection: National Security Language
Initiative for Youth Evaluation
Notice of request for public
comment and submission to OMB of
proposed collection of information.
ACTION:
The Department of State has
submitted the information collection
described below to the Office of
Management and Budget (OMB) for
approval. In accordance with the
SUMMARY:
E:\FR\FM\24JYN1.SGM
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]]>Agencies
[Federal Register Volume 84, Number 142 (Wednesday, July 24, 2019)]
[Notices]
[Pages 35702-35704]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-15672]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-86411; File No. SR-CBOE-2019-037]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Relating
To Amend Rule 12.3 by Extending the Credit Option Margin Pilot Program
Through July 20, 2020
July 18, 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 16, 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 and II
below, which Items have been prepared by the Exchange. The Exchange
filed the proposal as a ``non-controversial'' proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-
4(f)(6) thereunder.\4\ The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 12.3 by extending the Credit
Option Margin Pilot Program through July 20, 2020. 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
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 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, July 18, 2017, July 18, 2018 and July 18, 2019,
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 20, 2020.\9\
---------------------------------------------------------------------------
\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), 81083 (July 6, 2017) 82 FR
32219 (July 12, 2017) (SR-CBOE-2017-051), and 83672 (July 19, 2018)
83 FR 35305 (July 25, 2018) (SR-CBOE-2018-052).
\9\ The Exchange is filing the proposed rule change for
immediate effectiveness. The Exchange is proposing that the
implementation date of the proposed rule change will be July 18,
2019. The proposed rule change will expire on July 20, 2020, which
is the same date FINRA's corresponding program expires.
---------------------------------------------------------------------------
[[Page 35703]]
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 Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act.\10\ Specifically, the Exchange believes the proposed rule change
is consistent with the Section 6(b)(5) \11\ requirements that the rules
of an exchange be designed to prevent fraudulent and manipulative acts
and practices, to promote just and equitable principles of trade, to
foster cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
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) \12\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
\12\ 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 \13\ and
Rule 19b-4(f)(6) \14\ thereunder.
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 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.
The Exchange has satisfied this requirement.
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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.\15\
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\15\ 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-2019-037 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-2019-037. 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
[[Page 35704]]
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-2019-037 and
should be submitted on or before August 14, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-15672 Filed 7-23-19; 8:45 am]
BILLING CODE 8011-01-P
