Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Move the Rules in Chapter XVII, Which Governs Exchange Disciplinary Procedures, of the Current Rulebook to Proposed Chapter 13 of the Shell Rulebook, 54190-54193 [2019-22011]
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54190
Federal Register / Vol. 84, No. 196 / Wednesday, October 9, 2019 / Notices
index.html). NUREG–0586 evaluated the
environmental impacts of the
decommissioning of entire power
reactor sites and facilities that have been
impacted by operations. The release of
a part of a power reactor site that has
been demonstrated to not have been
impacted by operations is within the
scope of the evaluation performed in
NUREG–0586. The NRC staff concludes
that the proposed release of the 2.8hectare (7-acre) parcel is bounded by
NUREG–0586.
The NRC has determined that the
proposed release of the 2.8-hectare (7acre) parcel is wholly procedural and
administrative in nature, that the parcel
is radiologically non-impacted, and that
the licensee has no safety, physical
security, or emergency preparedness
need to retain the parcel. The
environmental impacts associated with
the shutdown power reactors will not
change as a result of the proposed
release of the 2.8-hectare (7-acre) parcel.
The proposed release will not result in
public or environmental exposure to
radioactive contamination. There are no
known records of any spills, leaks, or
uncontrolled release of radioactive
material on the 2.8-hectare (7-acre
parcel). The 2.8-hectare (7-acre) parcel
was not used for any activities that
could have contaminated the property.
Therefore, there are no significant
radiological environmental impacts
associated with the proposed action.
With regard to potential nonradiological impacts, the proposed
release of the 2.8-hectare (7-acre) parcel
from NRC jurisdiction does not involve
or authorize any construction activities,
renovation of buildings or structures,
ground disturbing activities or other
alteration to land. The proposed release
of the 2.8-hectare (7-acre) parcel will not
result in any change to current licensed
activities on that portion of the site that
will remain under NRC jurisdiction and
therefore, will not result in any changes
to the workforce or vehicular traffic on
the licensed portion of the site.
Furthermore, as the NRC has
determined that the proposed release of
the 2.8-hectare (7-acre) parcel is an
administrative action, it is not a type of
activity that has the potential to cause
effects on historic properties or cultural
resources, including traditional cultural
properties and will have no effect on
listed species or critical habitat. In
addition, the proposed release of the
2.8-hectare (7-acre) parcel will not result
in any change to non-radiological plant
effluents and thus, will have no impact
on either air or water quality. Therefore,
there are no significant non-radiological
environmental impacts associated with
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17:13 Oct 08, 2019
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the proposed release of the 2.8-hectare
(7-acre) parcel.
Accordingly, the NRC staff concludes
that there are no significant
environmental impacts associated with
the proposed action.
Connected Action
The California Department of
Transportation and the ACTC
determined that the California State
Route 84 Expressway Widening Project
would have no significant impact on the
human environment. The Final
Environmental Impact Report/
Environmental Assessment with
Finding of No Significant Impact, dated
April 2018, is available at (https://
dot.ca.gov/caltrans-near-me/district-4).
Environmental Impacts of the
Alternatives to the Proposed Action
As an alternative to the proposed
action, the NRC staff considered denial
of the proposed release of the 2.8hectare (7-acre) parcel (i.e., the ‘‘noaction’’ alternative). Denial of the
request would result in the 2.8-hectare
(7-acre) parcel remaining part of the
licensed site and subject to NRC
jurisdiction. As the licensee has no need
for the parcel, its current use as
undeveloped grassland and for site
entrance landscaping would most likely
continue. As there is no policy or
regulatory reason for the NRC to require
a licensee to retain land that is not
radiologically impacted and for which
the licensee has no further operational
need, the no-action alternative is not
further considered.
Conclusion
The NRC staff has concluded that the
proposed action will not significantly
impact the quality of the human
environment, and that the proposed
action is the preferred alternative.
Agencies and Persons Consulted
A public meeting to obtain comments
on the release approval request was
announced on the NRC public meeting
website on March 18, 2019 (ADAMS
Accession No. ML19077A149). A notice
of GEH’s request to release the 2.8hectare (7-acre) parcel and the public
meeting, including a request for
comment, was also published in ‘‘The
Independent,’’ Livermore, CA on March
21, 2019. The NRC staff published a
notice of the receipt of GEH’s request,
including a request for comment, in the
Federal Register on March 27, 2019 (84
FR 11578). The NRC staff conducted the
public meeting in Dublin, CA on March
28, 2019. A summary of the public
meeting, which includes copies of the
presentations made and a copy of the
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Frm 00089
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transcript of the meeting, is available in
ADAMS at Accession No.
ML19239A043. No comments were
made on the Federal Rulemaking
website, or were received by mail or
email, and all questions asked at the
meeting were answered in the meeting.
The NRC contacted the California
Department of Public Health on
September 4, 2019 (ADAMS Accession
No. ML19275D493) concerning this
request. There were no comments,
concerns or objections from the State
official
III. Finding of No Significant Impact
The NRC staff has prepared this EA as
part of its review of the proposed action.
On the basis of this EA, the NRC finds
that there are no significant
environmental impacts from the
proposed action, and that preparation of
EIS is not warranted. Accordingly, the
NRC has determined that a FONSI is
appropriate. In accordance with 10 CFR
51.32(a)(4), this FONSI incorporates the
EA set forth in this notice by reference.
Dated at Rockville, Maryland, this 3rd day
of October, 2019.
For the Nuclear Regulatory Commission.
Bruce A. Watson,
Chief, Reactor Decommissioning Branch,
Division of Decommissioning, Uranium
Recovery, and Waste Programs, Office of
Nuclear Material Safety and Safeguards.
[FR Doc. 2019–21982 Filed 10–8–19; 8:45 am]
BILLING CODE 7590–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87210; File No. SR–CBOE–
2019–068]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Move the Rules in
Chapter XVII, Which Governs
Exchange Disciplinary Procedures, of
the Current Rulebook to Proposed
Chapter 13 of the Shell Rulebook
October 3, 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 26, 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
1 15
2 17
E:\FR\FM\09OCN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
09OCN1
Federal Register / Vol. 84, No. 196 / Wednesday, October 9, 2019 / Notices
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 XVII, which
governs Exchange disciplinary
procedures, of the currently effective
Rulebook (‘‘current Rulebook’’) to
proposed Chapter 13 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/CBOELegal
RegulatoryHome.aspx), at the
Exchange’s Office of the Secretary, and
at the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
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
Shell rule
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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
4 17
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
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17.1 Disciplinary Jurisdiction.
17.2 Compliant and Investigation.
17.3 Expedited Proceeding.
17.4 Charges.
17.5 Answer.
17.6 Hearing.
17.7 Summary Proceedings.
17.8 Offers of Settlement.
17.9 Decision.
17.10 Review.
17.11 Judgment and Sanction.
17.12 Service of Notice
17.13 Extension of Time Limits.
17.14 Reporting to Central Registration Depository.
17.50 Imposition of Fines for Minor Rule Violations.
17.15 Ex Parte Communications.
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
5 15
6 15
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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 XVII which governs
Exchange disciplinary procedures, to
proposed Chapter 13 in the shell
Rulebook. The Exchange notes that in
addition to relocating the disciplinary
rules to proposed shell Chapter 13, the
proposed rule change deletes the rules
from the current Rulebook. The
proposed rule change relocates the rules
as follows:
Current rule
13.1 Disciplinary Jurisdiction ....................................................................
13.2 Compliant and Investigation .............................................................
13.3 Expedited Proceeding ......................................................................
13.4 Charges ............................................................................................
13.5 Answer ..............................................................................................
13.6 Hearing .............................................................................................
13.7 Summary Proceedings .....................................................................
13.8 Offers of Settlement .........................................................................
13.9 Decision ............................................................................................
13.10 Review ............................................................................................
13.11 Judgment and Sanction .................................................................
13.12 Service of Notice ............................................................................
13.13 Extension of Time Limits ................................................................
13.14 Reporting to Central Registration Depository ................................
13.15 Imposition of Fines for Minor Rule Violations ................................
13.16 Ex Parte Communications ..............................................................
3 15
54191
PO 00000
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
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
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Federal Register / Vol. 84, No. 196 / Wednesday, October 9, 2019 / Notices
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
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.
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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
7 Id.
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17:13 Oct 08, 2019
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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)(iii) of the Act 8 and
subparagraph (f)(6) of Rule 19b–4
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 five day
prefiling requirement and the 30-day
operative delay so that it may
implement the proposed rule change in
connection with the technology
migration on October 7, 2019.
According to the Exchange, waiver of
the prefiling requirement and the
operative delay will help to avoid any
potential confusion by providing
investors with a complete Exchange
Rulebook upon the completion of
migration. The Commission believes
that waiver of the 30-day operative
delay is consistent with the protection
of investors and the public interest
because the proposed rule change raises
no new or novel issues as it does not
substantively amend the relocated rules.
Therefore, the Commission hereby
waives the prefiling requirement and
the operative delay and designates the
proposal 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
8 15
U.S.C. 78s(b)(3)(A)(iii).
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).
12 For purposes only of waiving the five day
prefiling requirement and 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).
9 17
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Fmt 4703
Sfmt 4703
Commission takes such action, the
Commission will institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
CBOE–2019–068 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-2019–068. 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–2019–068 and
should be submitted on or before
October 30, 2019.
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Federal Register / Vol. 84, No. 196 / Wednesday, October 9, 2019 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–22011 Filed 10–8–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87212; File No. SR–NYSE–
2019–44]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Order
Granting Approval of a Proposed Rule
Change, as Modified by Amendment
No. 1, To Add Certain Rules to the List
of Minor Rule Violations in Rule 9217,
Delete Obsolete Rules, and Increase
the Maximum Fine for Minor Rule
Violations
October 3, 2019.
I. Introduction
On August 8, 2019, New York Stock
Exchange LLC (‘‘NYSE’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission (the
‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
(1) add certain rules to the list of minor
rule violations in Rule 9217; (2) delete
obsolete rules from Rule 9217; and (3)
increase the maximum fine for minor
rule violations to $5,000 in order to
more closely align the Exchange’s minor
rule plan with that of its affiliates. The
proposed rule change was published for
comment in the Federal Register on
August 22, 2019.3 On September 13,
2019, the Exchange filed Amendment
No. 1 to the proposed rule change.4 The
Commission received no comment
letters on the proposed rule change.
This order grants approval of the
proposed rule change, as modified by
Amendment No. 1.
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 86696
(August 16, 2019), 84 FR 43836.
4 In Amendment No. 1, the Exchange: (1) Clarified
that fines exceeding $2,500 would not be eligible
for quarterly reporting under Commission Rule
19d–1(c) and (2) made technical and conforming
changes. Because the changes in Amendment No.
1 do not materially alter the substance of the
proposed rule change or raise unique or novel
regulatory issues, Amendment No. 1 is not subject
to notice and comment. Amendment No. 1 replaced
and supercedes the original filing in its entirety and
is available at https://www.sec.gov/comments/srnyse-2019-44/srnyse201944-6120985-192149.pdf.
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54193
II. Description of the Proposal, as
Modified by Amendment No. 1
in such security with the Exchange and
unless the Exchange has approved of the
member organization acting as a DMM
Rule 9217 sets forth the list of rules
unit and not withdrawn such approval.
under which a member organization or
The rule is substantially similar to
covered person may be subject to a fine
NYSE Arca Rule 7.20–E(a) (Registration
under a minor rule violation plan as
of Market Makers) and NYSE National
described in proposed Rule 9216(b). The
Rule 7.20 (Registration of Market
Exchange proposes to add the following
Makers), which similarly require that
introductory paragraph to Rule 9217:
market makers on those exchanges be
‘‘Nothing in this Rule shall require the
registered in a security and that the
Exchange to impose a fine for a
registration has not been suspended or
violation of any rule under this Minor
cancelled. Both NYSE Arca Rule 7.20–
Rule Plan. If the Exchange determines
E(a) and NYSE National Rule 7.20 are
that any violation is not minor in
eligible for minor rule fines.7
nature, the Exchange may, at its
Similarly, Rule 1210, which was
discretion, proceed under the Rule 9000 adopted in October 2018,8 sets forth the
Series rather than under this Rule.’’ This requirements for persons engaged in the
language is based on NYSE Arca Rule
investment banking or securities
10.9217(d).
business of a member organization to be
The Exchange proposes to add the
registered with the Exchange as a
following rules to the list of rules in
representative or principal in each
Rule 9217 eligible for disposition
category of registration appropriate to
pursuant to a fine under Rule 9216(b):
his or her functions and responsibilities
• Rule 7.30 (Authorized Traders)
as specified in Rule 1220. The Exchange
• Rule 76 (‘‘Crossing’’ Orders)
proposes to add Rule 1210 to the list of
• Rule 103(a)(i) (Registration and
minor rules in Rule 9217. The Exchange
Capital Requirements of DMM Units)
states that having the ability to issue a
• Rule 1210 (Registration Requirements) minor rule fine for failing to comply
• Rule 3110(a) and (b)(1) (Supervision)
with the registration requirements of
The Exchange also proposes that all of Rule 1210 would be consistent with and
complement the Exchange’s current
the registration and other requirements
ability to issue minor rule fines for other
set forth in Rule 345 be eligible for a
registration violations (e.g., Rule 345).
minor rule fine.
Rule 3110 is the Exchange’s
Rule 7.30 establishes requirements for
supervision rule. The Exchange
member organizations relating to
proposes to add subsections (a) and
Authorized Traders. The rule is based
on NYSE Arca Rule 7.30–E (Authorized (b)(1) of Rule 3110, governing failure of
a member organization to establish and
Traders), which is eligible for NYSE
maintain a supervisory system and
Arca’s Minor Rule Plan.5
failure to establish, maintain, and
Rule 76 is substantially similar to
enforce written supervisory procedures,
NYSE American Rule 934NY(a)(1)
respectively, to Rule 9217. Failure to
(Crossing) and NYSE Arca Rule 6.47–
O(a)(1) (‘‘Crossing’’ Orders—OX), which supervise individuals and accounts is
currently eligible for minor rule fines in
govern manual crosses on those
the rules of the Exchange’s affiliate
respective exchanges’ options trading
NYSE Arca.9
Floors. NYSE American Rule
Finally, Rule 345 sets forth certain
934NY(a)(1) is eligible for NYSE
employee registration, approval and
American’s Minor Rule Plan, and NYSE
other exchange requirements, including
Arca Rule 6.47–O(a)(1) is eligible for
the requirements pertaining to the
6
NYSE Arca’s Minor Rule Plan.
registration of a securities lending
Rule 103(a)(1) provides that no
representative, Securities Trader or
member organization shall act as a
direct supervisor thereof. Currently, the
Designated Market Maker (‘‘DMM’’) unit
only violation of Rule 345 that is
in any security unless such member
eligible for a minor rule fine is failure
organization is registered as a DMM unit
of a member organization to have
individuals responsible and qualified
5 See Securities Exchange Act Release No. 81225
for the position of Securities Lending
(July 27, 2017), 82 FR 36033, 36035 (August 2,
Supervisor. The Exchange proposes that
2017) (SR–NYSE–2017–35). See also NYSE Arca
Rule 10.12(i)(4) (NYSE Arca Rule 7.30–E); NYSE
all of registration and other
Arca Rule 10.9217(f)(4). NYSE Arca Rule 10.12 is
requirements set forth in Rule 345 be
NYSE Arca’s legacy minor rule plan and applies
only to matters for which a written statement was
served under Rule 10.12 prior to May 27, 2019;
thereafter, Rules 10.9216(b) and 10.9217 apply. See
generally NYSE Arca Rules 10.0 (preamble) and
10.9001.
6 See NYSE American Rule 9217 (Rule 934NY);
NYSE Arca Rules 10.12(h)(3) and 10.9217(e)(3). See
note 5, supra.
PO 00000
Frm 00092
Fmt 4703
Sfmt 4703
7 See NYSE Arca Rules 10.12(i)(5) and
10.9217(f)(5); NYSE National Rule 10.9217(d).
8 See Securities Exchange Act Release No. 84336
(October 2, 2018), 83 FR 50727 (October 9, 2018)
(SR–NYSE–2018–44).
9 See NYSE Arca Rules 11.18 (Supervision),
10.12(j)(8) and 10.9217(g)(8).
E:\FR\FM\09OCN1.SGM
09OCN1
]]>Agencies
[Federal Register Volume 84, Number 196 (Wednesday, October 9, 2019)]
[Notices]
[Pages 54190-54193]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-22011]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87210; File No. SR-CBOE-2019-068]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Move
the Rules in Chapter XVII, Which Governs Exchange Disciplinary
Procedures, of the Current Rulebook to Proposed Chapter 13 of the Shell
Rulebook
October 3, 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 26, 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
[[Page 54191]]
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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes
to move the Rules in Chapter XVII, which governs Exchange disciplinary
procedures, of the currently effective Rulebook (``current Rulebook'')
to proposed Chapter 13 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 XVII which
governs Exchange disciplinary procedures, to proposed Chapter 13 in the
shell Rulebook. The Exchange notes that in addition to relocating the
disciplinary rules to proposed shell Chapter 13, the proposed rule
change deletes the rules from the current Rulebook. The proposed rule
change relocates the rules as follows:
------------------------------------------------------------------------
Shell rule Current rule
------------------------------------------------------------------------
13.1 Disciplinary Jurisdiction......... 17.1 Disciplinary Jurisdiction.
13.2 Compliant and Investigation....... 17.2 Compliant and
Investigation.
13.3 Expedited Proceeding.............. 17.3 Expedited Proceeding.
13.4 Charges........................... 17.4 Charges.
13.5 Answer............................ 17.5 Answer.
13.6 Hearing........................... 17.6 Hearing.
13.7 Summary Proceedings............... 17.7 Summary Proceedings.
13.8 Offers of Settlement.............. 17.8 Offers of Settlement.
13.9 Decision.......................... 17.9 Decision.
13.10 Review........................... 17.10 Review.
13.11 Judgment and Sanction............ 17.11 Judgment and Sanction.
13.12 Service of Notice................ 17.12 Service of Notice
13.13 Extension of Time Limits......... 17.13 Extension of Time Limits.
13.14 Reporting to Central Registration 17.14 Reporting to Central
Depository. Registration Depository.
13.15 Imposition of Fines for Minor 17.50 Imposition of Fines for
Rule Violations. Minor Rule Violations.
13.16 Ex Parte Communications.......... 17.15 Ex Parte Communications.
------------------------------------------------------------------------
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
[[Page 54192]]
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)(iii) of the Act \8\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\9\
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\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\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 the Commission to waive the five day prefiling requirement
and the 30-day operative delay so that it may implement the proposed
rule change in connection with the technology migration on October 7,
2019. According to the Exchange, waiver of the prefiling requirement
and the operative delay will help to avoid any potential confusion by
providing investors with a complete Exchange Rulebook upon the
completion of migration. The Commission believes that waiver of the 30-
day operative delay is consistent with the protection of investors and
the public interest because the proposed rule change raises no new or
novel issues as it does not substantively amend the relocated rules.
Therefore, the Commission hereby waives the prefiling requirement and
the operative delay and designates the proposal 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 five day prefiling
requirement and 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-2019-068 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-2019-068. 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-2019-068 and should be submitted on
or before October 30, 2019.
[[Page 54193]]
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. 2019-22011 Filed 10-8-19; 8:45 am]
BILLING CODE 8011-01-P
