Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Make Minor Updates to and Relocate Chapter XIX, Which Governs the Hearings and Review Process for Persons Aggrieved by Exchange Action, of the Currently Effective Rulebook, to Proposed Chapter 15 of the Shell Structure for the Exchange's Rulebook, 53487-53489 [2019-21730]
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<![CDATA[
Federal Register / Vol. 84, No. 194 / Monday, October 7, 2019 / Notices
reimburse the expenses of the
Replacement Portfolio to the extent that
the net annual operating expenses of the
Replacement Portfolio (i.e., after taking
into account any other fee waivers or
expense reimbursements) for such
period exceed, on an annualized basis,
the net annual operating expenses of the
Existing Portfolio for the most recent
fiscal year preceding the date of the
application. Any amounts waived or
reimbursed by the Adviser will not be
subject to recoupment rights. In
addition, for each Substitution, the
Section 26 Applicants will not increase
the Contract fees and charges that would
otherwise be assessed under the terms
of the Contracts for the Non-Qualified
Annuity and Life Insurance Contract
Owners for a period of at least two years
following the Substitution Date.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–21811 Filed 10–4–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87187; File No. SR–CBOE–
2019–072]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Make Minor Updates
to and Relocate Chapter XIX, Which
Governs the Hearings and Review
Process for Persons Aggrieved by
Exchange Action, of the Currently
Effective Rulebook, to Proposed
Chapter 15 of the Shell Structure for
the Exchange’s Rulebook
October 1, 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
September 27, 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.
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 make
minor updates to and relocate Chapter
XIX, which governs the hearings and
review process for persons aggrieved by
Exchange action, of the currently
effective Rulebook (‘‘current Rulebook’’)
to proposed Chapter 15 of the shell
structure for the Exchange’s Rulebook
that will become effective upon the
migration of the Exchange’s trading
platform to the same system used by the
Cboe Affiliated Exchanges (as defined
below) (‘‘shell Rulebook’’). 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
Shell rule
15.1
15.2
15.3
15.4
15.5
15.6
15.7
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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3 15
4 17
Jkt 250001
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
In 2016, the Exchange’s parent
company, Cboe Global Markets, Inc.
(formerly named CBOE Holdings, Inc.)
(‘‘Cboe Global’’), which is also the
parent company of Cboe C2 Exchange,
Inc. (‘‘C2’’), acquired Cboe EDGA
Exchange, Inc. (‘‘EDGA’’), Cboe EDGX
Exchange, Inc. (‘‘EDGX’’ or ‘‘EDGX
Options’’), Cboe BZX Exchange, Inc.
(‘‘BZX’’ or ‘‘BZX Options’’), and Cboe
BYX Exchange, Inc. (‘‘BYX’’ and,
together with Cboe Options, C2, EDGX,
EDGA, and BZX, the ‘‘Cboe Affiliated
Exchanges’’). The Cboe Affiliated
Exchanges are working to align certain
system functionality, retaining only
intended differences, between the Cboe
Affiliated Exchanges, in the context of a
technology migration. Cboe Options
intends to migrate its trading platform to
the same system used by the Cboe
Affiliated Exchanges, which the
Exchange expects to complete on
October 7, 2019. In connection with this
technology migration, the Exchange has
a shell Rulebook that resides alongside
its current Rulebook, which shell
Rulebook will contain the Rules that
will be in place upon completion of the
Cboe Options technology migration.
The Exchange proposes to relocate
and reorganize current Chapter XIX,
which governs the hearings and review
process for persons aggrieved by
Exchange action, into proposed Chapter
15 in the shell Rulebook. The Exchange
notes that in addition to relocating and
reorganizing the current rules, the
proposed rule change deletes these rules
from the current Rulebook. The
proposed rule change relocates and,
where applicable, reorganizes the rules
as follows:
Current rule
Scope .............................................................................................
Submission of Application to Exchange ........................................
Procedure Following Applications for Hearing ..............................
Hearing ...........................................................................................
Review ...........................................................................................
Miscellaneous Provisions ...............................................................
Requests for Verification of Fees and Charges:
15.7(a) ...............................................................................................
15.7(b) ...............................................................................................
1 15
53487
PO 00000
19.1
19.2
19.3
19.4
19.5
19.6
19.50
19.51
Scope, which incorporates 19.1.01 into body of rule.
Submission of Application to Exchange.
Procedure Following Applications for Hearing.
Hearing, which incorporates 19.4.01 into body of shell 15.4(a).
Review.
Miscellaneous Provisions.
Scope of Part B.
Definitions.
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
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Federal Register / Vol. 84, No. 194 / Monday, October 7, 2019 / Notices
Shell rule
Current rule
15.7(c)–(f) ..........................................................................................
The proposed rule changes make only
non-substantive changes to the rules in
order to update and/or headings that
better flow with the relocated and
reorganized rules, update crossreferences to other rules and chapters
that will be implemented upon
migration, update certain technical text
formatting that will be used in the Rules
upon migration (e.g., using words for
numbers below 10 in the rule text and
numerals for numbers above 10 in the
rule text), incorporate defined terms,
and reformat the paragraph lettering and
numbering.
Additionally, the proposed rule
change deletes ‘‘Part B’’ from the current
rule, as there is no Part A, and combines
all rule provisions in current Part B into
a single rule, as they all relate to a
procedure that may be used instead of
the procedure set forth in current Rules
19.1 through 19.6 (proposed Rules 15.1
through 15.6) if permitted by the Rules.
The Exchange believes this
reorganization simplifies these Rules
and eliminates potential confusion
given the lack of a Part A in this
Chapter.
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.5 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 6 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) 7 requirement that
the rules of an exchange not be designed
5 15
6 15
19.52
Requests for Verification.
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
The proposed rule change does not
make any substantive changes to the
rules and is merely intended to
consolidate and reorganize the
Exchange’s Rules in anticipation of the
technology migration on October 7,
2019. The Exchange believes that the
non-substantive proposed changes,
which update technical text and
formatting (e.g., paragraph headings and
number-related references), update rule
cross-references, and consolidate and
reorganize rules and rule paragraphs
and/or Interpretations and Policies, will
foster cooperation and coordination
with those facilitating transactions in
securities and remove impediments to
and perfect the mechanism of a free and
open market and national market system
by simplifying the Exchange Rules and
Rulebook as a whole, and making its
Rules easier to follow and understand,
which will also result in less
burdensome and more efficient
regulatory compliance.
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 reiterates that the proposed
rule change is being proposed in the
context of a technology migration of the
Cboe Affiliated Exchanges, and not as a
competitive filing. The Exchange does
not believe that the proposed rule
change will impose any burden on
intramarket competition because it does
not make any substantive changes to the
current Exchange Rules. The proposed
rule change merely intends to provide
consolidated rules upon migration and
is consistent with the technical text and
formatting in the shell Rulebook that
will be in place come October 7, 2019.
The Exchange does not believe that the
proposed rule change will impose any
burden on intermarket competition
because the proposed rules are the same
as the Exchange’s current rules, all of
which have all been previously filed
with the Commission.
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
7 Id.
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Frm 00091
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C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 8 and Rule 19b–
4(f)(6) thereunder.9
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 10 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 11
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has asked
the Commission to waive the 30-day
operative delay. The Exchange believes
that waiver of the operative delay is
appropriate because, as the Exchange
discussed above, its proposal does not
make any substantive changes to the
Exchange Rules, and only consolidates
and reorganizes the rules in Chapter
XIX, which governs the hearings and
review process for persons aggrieved by
Exchange action, and moves them to the
shell Rulebook that the Exchange
wishes to maintain post migration.
Accordingly, its proposal is designed to
preserve its hearings and review process
rules after October 7, 2019. The
Commission believes that waiver of the
30-day operative delay is consistent
with the protection of investors and the
public interest because the proposal
does not raise any new or novel issues
8 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its intent to
file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied that requirement.
10 17 CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii).
9 17
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Federal Register / Vol. 84, No. 194 / Monday, October 7, 2019 / Notices
and makes only non-substantive
changes to the rules. Therefore, the
Commission hereby waives the
operative delay and designates the
proposal as operative upon filing.12
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 shall institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
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–2019–072 and
should be submitted on or before
October 28, 2019.
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Jill M. Peterson,
Assistant Secretary.
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–2019–072 on the subject line.
SECURITIES AND EXCHANGE
COMMISSION
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–2019–072. 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
12 For purposes only of waiving the 30-day
operative delay, the Commission also has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
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[FR Doc. 2019–21730 Filed 10–4–19; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–87181; File No. SR–ISE–
2019–23]
Self-Regulatory Organizations; Nasdaq
ISE, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to the
Submission of Quotes and Orders
October 1, 2019.
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 17, 2019, Nasdaq ISE, LLC
(‘‘ISE’’ or ‘‘Exchange’’) 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 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
Options 3 at Section 4, ‘‘Acceptance of
Quotes and Orders,’’ adopt a new
Section 5, ‘‘Entry and Display of SingleLeg Orders,’’ Section 7, ‘‘Types of
Order,’’ at Supplementary Material .03
13 17
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00092
Fmt 4703
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53489
and Section 22 titled ‘‘Limitations on
Orders.’’ The Exchange proposes to
amend Options 3, Section 15, ‘‘Simple
Order Risk Protections’’ and
Supplementary Material of Options 5,
Section 2, ‘‘Order Protection
The text of the proposed rule change
is available on the Exchange’s website at
https://ise.cchwallstreet.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
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
The Exchange proposes to amend
Options 3 at Section 4, ‘‘Acceptance of
Quotes and Orders,’’ adopt a new
Section 5, ‘‘Entry and Display of SingleLeg Orders,’’ Section 7, ‘‘Types of
Order,’’ at Supplementary Material .03
and Section 22 titled ‘‘Limitations on
Orders.’’ The Exchange proposes to
amend Options 3, Section 15, ‘‘Simple
Order Risk Protections’’ and
Supplementary Material of Options 5,
Section 2, ‘‘Order Protection.’’ Each rule
change will be discussed in greater
detail below.
Options 3, Section 4, Acceptance of
Orders and Quotes
Currently, Options 3, Section 4 is
titled ‘‘Acceptance of Quotes or
Orders.’’ The Exchange proposes to
retitle Options 3, Section 4 as ‘‘Entry
and Display of Quotes.’’ The Exchange
proposes to add a new section (b) to
Options 3, Section 4 to describe the
current requirements and conditions for
submitting quotes. These requirements
reflect the current System operation
today. The Exchange proposes to
memorialize the various requirements
for the submission of quotes into the
System for greater transparency. The
Exchange proposes to provide at new
Options 3, Section 4(b), ‘‘Quotes are
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]]>Agencies
[Federal Register Volume 84, Number 194 (Monday, October 7, 2019)]
[Notices]
[Pages 53487-53489]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-21730]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87187; File No. SR-CBOE-2019-072]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Make
Minor Updates to and Relocate Chapter XIX, Which Governs the Hearings
and Review Process for Persons Aggrieved by Exchange Action, of the
Currently Effective Rulebook, to Proposed Chapter 15 of the Shell
Structure for the Exchange's Rulebook
October 1, 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 September 27, 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
Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes
to make minor updates to and relocate Chapter XIX, which governs the
hearings and review process for persons aggrieved by Exchange action,
of the currently effective Rulebook (``current Rulebook'') to proposed
Chapter 15 of the shell structure for the Exchange's Rulebook that will
become effective upon the migration of the Exchange's trading platform
to the same system used by the Cboe Affiliated Exchanges (as defined
below) (``shell Rulebook''). 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
In 2016, the Exchange's parent company, Cboe Global Markets, Inc.
(formerly named CBOE Holdings, Inc.) (``Cboe Global''), which is also
the parent company of Cboe C2 Exchange, Inc. (``C2''), acquired Cboe
EDGA Exchange, Inc. (``EDGA''), Cboe EDGX Exchange, Inc. (``EDGX'' or
``EDGX Options''), Cboe BZX Exchange, Inc. (``BZX'' or ``BZX
Options''), and Cboe BYX Exchange, Inc. (``BYX'' and, together with
Cboe Options, C2, EDGX, EDGA, and BZX, the ``Cboe Affiliated
Exchanges''). The Cboe Affiliated Exchanges are working to align
certain system functionality, retaining only intended differences,
between the Cboe Affiliated Exchanges, in the context of a technology
migration. Cboe Options intends to migrate its trading platform to the
same system used by the Cboe Affiliated Exchanges, which the Exchange
expects to complete on October 7, 2019. In connection with this
technology migration, the Exchange has a shell Rulebook that resides
alongside its current Rulebook, which shell Rulebook will contain the
Rules that will be in place upon completion of the Cboe Options
technology migration.
The Exchange proposes to relocate and reorganize current Chapter
XIX, which governs the hearings and review process for persons
aggrieved by Exchange action, into proposed Chapter 15 in the shell
Rulebook. The Exchange notes that in addition to relocating and
reorganizing the current rules, the proposed rule change deletes these
rules from the current Rulebook. The proposed rule change relocates
and, where applicable, reorganizes the rules as follows:
------------------------------------------------------------------------
Shell rule Current rule
------------------------------------------------------------------------
15.1 Scope............................. 19.1 Scope, which incorporates
19.1.01 into body of rule.
15.2 Submission of Application to 19.2 Submission of Application
Exchange. to Exchange.
15.3 Procedure Following Applications 19.3 Procedure Following
for Hearing. Applications for Hearing.
15.4 Hearing........................... 19.4 Hearing, which
incorporates 19.4.01 into body
of shell 15.4(a).
15.5 Review............................ 19.5 Review.
15.6 Miscellaneous Provisions.......... 19.6 Miscellaneous Provisions.
15.7 Requests for Verification of Fees
and Charges:
15.7(a)............................ 19.50 Scope of Part B.
15.7(b)............................ 19.51 Definitions.
[[Page 53488]]
15.7(c)-(f)........................ 19.52 Requests for
Verification.
------------------------------------------------------------------------
The proposed rule changes make only non-substantive changes to the
rules in order to update and/or headings that better flow with the
relocated and reorganized rules, update cross-references to other rules
and chapters that will be implemented upon migration, update certain
technical text formatting that will be used in the Rules upon migration
(e.g., using words for numbers below 10 in the rule text and numerals
for numbers above 10 in the rule text), incorporate defined terms, and
reformat the paragraph lettering and numbering.
Additionally, the proposed rule change deletes ``Part B'' from the
current rule, as there is no Part A, and combines all rule provisions
in current Part B into a single rule, as they all relate to a procedure
that may be used instead of the procedure set forth in current Rules
19.1 through 19.6 (proposed Rules 15.1 through 15.6) if permitted by
the Rules. The Exchange believes this reorganization simplifies these
Rules and eliminates potential confusion given the lack of a Part A in
this Chapter.
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.\5\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \6\ 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) \7\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
\7\ Id.
---------------------------------------------------------------------------
The proposed rule change does not make any substantive changes to
the rules and is merely intended to consolidate and reorganize the
Exchange's Rules in anticipation of the technology migration on October
7, 2019. The Exchange believes that the non-substantive proposed
changes, which update technical text and formatting (e.g., paragraph
headings and number-related references), update rule cross-references,
and consolidate and reorganize rules and rule paragraphs and/or
Interpretations and Policies, will foster cooperation and coordination
with those facilitating transactions in securities and remove
impediments to and perfect the mechanism of a free and open market and
national market system by simplifying the Exchange Rules and Rulebook
as a whole, and making its Rules easier to follow and understand, which
will also result in less burdensome and more efficient regulatory
compliance.
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 reiterates that
the proposed rule change is being proposed in the context of a
technology migration of the Cboe Affiliated Exchanges, and not as a
competitive filing. The Exchange does not believe that the proposed
rule change will impose any burden on intramarket competition because
it does not make any substantive changes to the current Exchange Rules.
The proposed rule change merely intends to provide consolidated rules
upon migration and is consistent with the technical text and formatting
in the shell Rulebook that will be in place come October 7, 2019. The
Exchange does not believe that the proposed rule change will impose any
burden on intermarket competition because the proposed rules are the
same as the Exchange's current rules, all of which have all been
previously filed with the Commission.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-
4(f)(6) thereunder.\9\
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied that requirement.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \10\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \11\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has asked the Commission to waive the 30-day operative delay. The
Exchange believes that waiver of the operative delay is appropriate
because, as the Exchange discussed above, its proposal does not make
any substantive changes to the Exchange Rules, and only consolidates
and reorganizes the rules in Chapter XIX, which governs the hearings
and review process for persons aggrieved by Exchange action, and moves
them to the shell Rulebook that the Exchange wishes to maintain post
migration. Accordingly, its proposal is designed to preserve its
hearings and review process rules after October 7, 2019. The Commission
believes that waiver of the 30-day operative delay is consistent with
the protection of investors and the public interest because the
proposal does not raise any new or novel issues
[[Page 53489]]
and makes only non-substantive changes to the rules. Therefore, the
Commission hereby waives the operative delay and designates the
proposal as operative upon filing.\12\
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\10\ 17 CFR 240.19b-4(f)(6).
\11\ 17 CFR 240.19b-4(f)(6)(iii).
\12\ For purposes only of waiving the 30-day operative delay,
the Commission also has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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 shall 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-2019-072 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-2019-072. 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-2019-072 and should be submitted on
or before October 28, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-21730 Filed 10-4-19; 8:45 am]
BILLING CODE 8011-01-P
