Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Move the Rules in Chapter XVIII, Which Governs Exchange Arbitrations, of the Currently Effective Rulebook to Proposed Chapter 14 of the Shell Structure for the Exchange's Rulebook, 53548-53550 [2019-21734]
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53548
Federal Register / Vol. 84, No. 194 / Monday, October 7, 2019 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87183; File No. SR–CBOE–
2019–065]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change to Move the Rules in
Chapter XVIII, Which Governs
Exchange Arbitrations, of the Currently
Effective Rulebook to Proposed
Chapter 14 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 25, 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 move
the Rules in Chapter XVIII, which
governs Exchange arbitrations, of the
currently effective Rulebook (‘‘current
Rulebook’’) to proposed Chapter 14 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
current Chapter XVIII which governs
arbitrations, to proposed Chapter 14 in
the shell Rulebook. The Exchange notes
that in addition to relocating the
arbitration rules to proposed shell
Chapter 14, the proposed rule change
deletes the rules from the current
Rulebook. The proposed rule change
relocates the rules as follows:
Shell rule
Current rule
Chapter 14. Arbitration
Chapter XVIII. Arbitration
14.1 Matters Subject to Arbitration ...........................................................
14.2 FINRA Jurisdiction over Arbitrations Against TPHs .........................
14.3 Procedures in TPH Controversies ...................................................
14.4 Arbitration .........................................................................................
14.5 Class Action Claims .........................................................................
14.6 Simplified Arbitration ........................................................................
14.7 Waiver of Hearing ............................................................................
14.8 Time Limitation upon Submission ....................................................
14.9 Dismissal or Termination of Proceedings ........................................
14.10 Settlements .....................................................................................
14.11 Tolling of Time Limitation(s) for the Institution of Legal Proceedings and Extension of Time Limitation(s) for Submission to Arbitration.
14.12 Designation of Number of Arbitrators ............................................
14.13 Notice of Selection of Arbitrators ...................................................
14.14 Challenges ......................................................................................
14.15 Disclosures Required of Arbitrators ...............................................
14.16 Disqualification or Other Disability of Arbitrators ...........................
14.17 Initiation of Proceedings .................................................................
14.18 Designation of Time and Place of Hearings ..................................
18.1 Matters Subject to Arbitration.
18.1A FINRA Jurisdiction over Arbitrations Against TPHs.
18.2 Procedures in TPH Controversies.
18.3 Arbitration.
18.3A Class Action Claims.
18.4 Simplified Arbitration.
18.5 Waiver of Hearing.
18.6 Time Limitation upon Submission.
18.7 Dismissal or Termination of Proceedings.
18.8 Settlements.
18.9 Tolling of Time Limitation(s) for the Institution of Legal Proceedings and Extension of Time Limitation(s) for Submission to Arbitration.
18.10 Designation of Number of Arbitrators.
18.11 Notice of Selection of Arbitrators.
18.12 Challenges.
18.13 Disclosures Required of Arbitrators.
18.14 Disqualification or Other Disability of Arbitrators.
18.15 Initiation of Proceedings.
18.16 Designation of Time and Place of Hearings.
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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18:29 Oct 04, 2019
3 15
4 17
Jkt 250001
PO 00000
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
53549
Shell rule
Current rule
Chapter 14. Arbitration
Chapter XVIII. Arbitration
14.19 Representation by Counsel ............................................................
14.20 Attendance at Hearings ..................................................................
14.21 Failure to Appear ............................................................................
14.22 Adjournments .................................................................................
14.23 Acknowledgement of Pleadings .....................................................
14.24 General Provisions Governing Pre-Hearing Proceeding ...............
14.25 Evidence .........................................................................................
14.26 Interpretation of Code and Enforcement of Arbitrator Rulings ......
14.27 Determinations of Arbitrators .........................................................
14.28 Record of Proceedings ...................................................................
14.29 Oaths of the Arbitrators and Witnesses .........................................
14.30 Amendments ..................................................................................
14.31 Reopening of Hearings ..................................................................
14.32 Awards ............................................................................................
14.33 Miscellaneous .................................................................................
14.34 Schedule of Fees ...........................................................................
14.35 Requirements when Using Pre-Dispute Arbitration Agreements
with Customers.
14.36 Failure to Honor Award ..................................................................
18.17 Representation by Counsel.
18.18 Attendance at Hearings.
18.19 Failure to Appear.
18.20 Adjournments.
18.21 Acknowledgement of Pleadings.
18.22 General Provisions Governing Pre-Hearing Proceeding.
18.24 Evidence.
18.25 Interpretation of Code and Enforcement of Arbitrator Rulings.
18.26 Determinations of Arbitrators.
18.27 Record of Proceedings.
18.28 Oaths of the Arbitrators and Witnesses.
18.29 Amendments.
18.30 Reopening of Hearings.
18.31 Awards.
18.32 Miscellaneous.
18.33 Schedule of Fees.
18.35 Requirements when Using Pre-Dispute Arbitration Agreements
with Customers.
18.37 Failure to Honor Award.
The proposed changes are of a nonsubstantive nature and will not amend
the relocated rules other than to update
their numbers, conform paragraph
structure and number/lettering format to
that of the shell Rulebook, and make
cross-reference changes to shell rules.
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.
As stated, the proposed rule change
makes no substantive changes to the
rules. The proposed rule change is
merely intended to relocate the
5 15
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
7 Id.
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18:29 Oct 04, 2019
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Exchange’s rules to the shell Rulebook
and update their numbers, paragraph
structure, including number and
lettering format, and cross-references to
conform to the shell Rulebook as a
whole in anticipation of the technology
migration on October 7, 2019. As such,
the proposed rule change is designed to
promote just and equitable principles of
trade, 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, by
improving the way the Exchange’s
Rulebook is organized, making it easier
to read, and, particularly, helping
market participants better understand
the rules of the Exchange, 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 not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change is not intended as
a competitive change, but rather, seeks
to make non-substantive rule changes in
relocating the rules and updating crossreferences to shell rules in anticipation
of the October 7, 2019 technology
migration. The Exchange also does not
believe that the proposed rule change
will impose any undue burden on
competition because the relocated rule
text is exactly the same as the
Exchange’s current rules, all of which
have all been previously filed with the
Commission.
PO 00000
Frm 00152
Fmt 4703
Sfmt 4703
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 19b4(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
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. Because this
proposal does not make any substantive changes to
the rules but only moves them into the shell
Rulebook, the Commission designates a shorter time
under Rule 19b–4(f)(6)(iii) by waiving the five
business prefiling period for this proposal.
10 17 CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii).
9 17
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53550
Federal Register / Vol. 84, No. 194 / Monday, October 7, 2019 / Notices
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, but merely relocates
arbitration rules to the shell Rulebook
that the Exchange wishes to maintain
post migration. Accordingly, its
proposal is designed to preserve its
arbitration 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
and does not make any 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.
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–2019–065 on the subject line.
Paper Comments:
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–CBOE–2019–065. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
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).
VerDate Sep<11>2014
18:29 Oct 04, 2019
Jkt 250001
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–2019–065 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
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–21734 Filed 10–4–19; 8:45 am]
Economic Injury (EIDL) Loan
Application Deadline Date: 06/22/2020.
Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
ADDRESSES:
A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street SW, Suite 6050,
Washington, DC 20416, (202) 205–6734.
FOR FURTHER INFORMATION CONTACT:
Notice is
hereby given that as a result of the
President’s major disaster declaration on
09/20/2019, 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:
SUPPLEMENTARY INFORMATION:
Primary Counties (Physical Damage and
Economic Injury Loans): Clay,
Humphreys, Issaquena, Lowndes,
Monroe, Sharkey, Warren, Yazoo.
Contiguous Counties (Economic Injury
Loans Only):
Mississippi: Attala, Chickasaw,
Claiborne, Hinds, Holmes,
Itawamba, Lee, Leflore, Madison,
Noxubee, Oktibbeha, Sunflower,
Washington, Webster.
Alabama: Lamar, Marion, Pickens.
Arkansas: Chicot.
Louisiana: East Carroll, Madison,
Tensas.
The interest rates are:
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #16135 and #16136;
Mississippi Disaster Number MS–00110]
Presidential Declaration of a Major
Disaster for the State of Mississippi
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
This is a Notice of the
Presidential declaration of a major
disaster for the State of Mississippi
(FEMA–4429–DR), dated 09/20/2019.
Incident: Severe Storms, Straight-line
Winds, Tornadoes, and Flooding.
Incident Period: 02/22/2019 through
03/29/2019.
DATES: Issued on 09/20/2019.
Physical Loan Application Deadline
Date: 11/19/2019.
SUMMARY:
13 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00153
Fmt 4703
Sfmt 4703
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 .....................................
4.125
2.063
8.000
4.000
2.750
2.750
4.000
2.750
The number assigned to this disaster
for physical damage is 16135B and for
economic injury is 161360.
E:\FR\FM\07OCN1.SGM
07OCN1
]]>Agencies
[Federal Register Volume 84, Number 194 (Monday, October 7, 2019)]
[Notices]
[Pages 53548-53550]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-21734]
[[Page 53548]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87183; File No. SR-CBOE-2019-065]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change to Move
the Rules in Chapter XVIII, Which Governs Exchange Arbitrations, of the
Currently Effective Rulebook to Proposed Chapter 14 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 25, 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 move the Rules in Chapter XVIII, which governs Exchange
arbitrations, of the currently effective Rulebook (``current
Rulebook'') to proposed Chapter 14 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 current Chapter XVIII which
governs arbitrations, to proposed Chapter 14 in the shell Rulebook. The
Exchange notes that in addition to relocating the arbitration rules to
proposed shell Chapter 14, the proposed rule change deletes the rules
from the current Rulebook. The proposed rule change relocates the rules
as follows:
------------------------------------------------------------------------
Shell rule Current rule
------------------------------------------------------------------------
Chapter 14. Arbitration Chapter XVIII. Arbitration
------------------------------------------------------------------------
14.1 Matters Subject to Arbitration.... 18.1 Matters Subject to
Arbitration.
14.2 FINRA Jurisdiction over 18.1A FINRA Jurisdiction over
Arbitrations Against TPHs. Arbitrations Against TPHs.
14.3 Procedures in TPH Controversies... 18.2 Procedures in TPH
Controversies.
14.4 Arbitration....................... 18.3 Arbitration.
14.5 Class Action Claims............... 18.3A Class Action Claims.
14.6 Simplified Arbitration............ 18.4 Simplified Arbitration.
14.7 Waiver of Hearing................. 18.5 Waiver of Hearing.
14.8 Time Limitation upon Submission... 18.6 Time Limitation upon
Submission.
14.9 Dismissal or Termination of 18.7 Dismissal or Termination
Proceedings. of Proceedings.
14.10 Settlements...................... 18.8 Settlements.
14.11 Tolling of Time Limitation(s) for 18.9 Tolling of Time
the Institution of Legal Proceedings Limitation(s) for the
and Extension of Time Limitation(s) Institution of Legal
for Submission to Arbitration. Proceedings and Extension of
Time Limitation(s) for
Submission to Arbitration.
14.12 Designation of Number of 18.10 Designation of Number of
Arbitrators. Arbitrators.
14.13 Notice of Selection of 18.11 Notice of Selection of
Arbitrators. Arbitrators.
14.14 Challenges....................... 18.12 Challenges.
14.15 Disclosures Required of 18.13 Disclosures Required of
Arbitrators. Arbitrators.
14.16 Disqualification or Other 18.14 Disqualification or Other
Disability of Arbitrators. Disability of Arbitrators.
14.17 Initiation of Proceedings........ 18.15 Initiation of
Proceedings.
14.18 Designation of Time and Place of 18.16 Designation of Time and
Hearings. Place of Hearings.
[[Page 53549]]
14.19 Representation by Counsel........ 18.17 Representation by
Counsel.
14.20 Attendance at Hearings........... 18.18 Attendance at Hearings.
14.21 Failure to Appear................ 18.19 Failure to Appear.
14.22 Adjournments..................... 18.20 Adjournments.
14.23 Acknowledgement of Pleadings..... 18.21 Acknowledgement of
Pleadings.
14.24 General Provisions Governing Pre- 18.22 General Provisions
Hearing Proceeding. Governing Pre-Hearing
Proceeding.
14.25 Evidence......................... 18.24 Evidence.
14.26 Interpretation of Code and 18.25 Interpretation of Code
Enforcement of Arbitrator Rulings. and Enforcement of Arbitrator
Rulings.
14.27 Determinations of Arbitrators.... 18.26 Determinations of
Arbitrators.
14.28 Record of Proceedings............ 18.27 Record of Proceedings.
14.29 Oaths of the Arbitrators and 18.28 Oaths of the Arbitrators
Witnesses. and Witnesses.
14.30 Amendments....................... 18.29 Amendments.
14.31 Reopening of Hearings............ 18.30 Reopening of Hearings.
14.32 Awards........................... 18.31 Awards.
14.33 Miscellaneous.................... 18.32 Miscellaneous.
14.34 Schedule of Fees................. 18.33 Schedule of Fees.
14.35 Requirements when Using Pre- 18.35 Requirements when Using
Dispute Arbitration Agreements with Pre-Dispute Arbitration
Customers. Agreements with Customers.
14.36 Failure to Honor Award........... 18.37 Failure to Honor Award.
------------------------------------------------------------------------
The proposed changes are of a non-substantive nature and will not
amend the relocated rules other than to update their numbers, conform
paragraph structure and number/lettering format to that of the shell
Rulebook, and make cross-reference changes to shell rules.
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.
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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
\7\ Id.
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As stated, the proposed rule change makes no substantive changes to
the rules. The proposed rule change is merely intended to relocate the
Exchange's rules to the shell Rulebook and update their numbers,
paragraph structure, including number and lettering format, and cross-
references to conform to the shell Rulebook as a whole in anticipation
of the technology migration on October 7, 2019. As such, the proposed
rule change is designed to promote just and equitable principles of
trade, 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, by improving the way the Exchange's
Rulebook is organized, making it easier to read, and, particularly,
helping market participants better understand the rules of the
Exchange, 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 not necessary or appropriate in
furtherance of the purposes of the Act. The proposed rule change is not
intended as a competitive change, but rather, seeks to make non-
substantive rule changes in relocating the rules and updating cross-
references to shell rules in anticipation of the October 7, 2019
technology migration. The Exchange also does not believe that the
proposed rule change will impose any undue burden on competition
because the relocated rule text is exactly 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.
Because this proposal does not make any substantive changes to the
rules but only moves them into the shell Rulebook, the Commission
designates a shorter time under Rule 19b-4(f)(6)(iii) by waiving the
five business prefiling period for this proposal.
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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
[[Page 53550]]
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, but merely relocates
arbitration rules to the shell Rulebook that the Exchange wishes to
maintain post migration. Accordingly, its proposal is designed to
preserve its arbitration 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 and does not make any
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-2019-065 on the subject line.
Paper Comments:
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-CBOE-2019-065. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-CBOE-2019-065 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. 2019-21734 Filed 10-4-19; 8:45 am]
BILLING CODE 8011-01-P
