Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Move Rule 10.2 and the Rules in Chapter XVI of the Currently Effective Rulebook, Which Governs the Summary Suspension of Trading Permit Holders, to Proposed Chapter 12 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, 54700-54702 [2019-22149]
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54700
Federal Register / Vol. 84, No. 197 / Thursday, October 10, 2019 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87227; File No. SR–CBOE–
2019–067]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Move Rule 10.2 and
the Rules in Chapter XVI of the
Currently Effective Rulebook, Which
Governs the Summary Suspension of
Trading Permit Holders, to Proposed
Chapter 12 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
October 4, 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 the Substance
of the Proposed Rule Change
Cboe Exchange, Inc. (the ‘‘Exchange’’
or ‘‘Cboe Options’’) proposes to move
Rule 10.2 and the Rules in Chapter XVI
of the currently effective Rulebook
(‘‘current Rulebook’’), which governs
the summary suspension of Trading
Permit Holders (‘‘TPHs’’), to proposed
Chapter 12 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
(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 Rule 10.2 and current Chapter
XVI, which govern the summary
suspension of TPHs, to proposed
Chapter 12 in the shell Rulebook. The
Exchange notes that in addition to
relocating the summary suspension
rules to proposed Chapter 12 in the
shell Rulebook, the proposed rule
change deletes the rules from the
current Rulebook. The proposed rule
change relocates the rules as follows:
1. Purpose
In 2016, the Exchange’s parent
company, Cboe Global Markets, Inc.
Current rule
Rule
Rule
Rule
Rule
Rule
Rule
16.1
16.2
16.3
16.4
16.5
10.2
(Imposition of Suspension) .......................................................................
(Investigation Following Suspension) .......................................................
(Reinstatement) ........................................................................................
(Failure to Obtain Reinstatement) ............................................................
(Termination of Rights by Suspension) ....................................................
(Contracts of Suspended Trading Permit Holders) ..................................
The proposed changes are of a nonsubstantive nature and will not amend
the relocated rules other than to update
their rule numbers, conform paragraph
structure and number/lettering format to
that of the shell Rulebook, and make
cross-reference changes to shell rules.
1 15
2 17
Proposed rule
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Sep<11>2014
19:50 Oct 09, 2019
12.1
12.2
12.3
12.4
12.5
12.6
(Imposition of Suspension).
(Investigation Following Suspension).
(Reinstatement).
(Failure to Obtain Reinstatement).
(Termination of Rights by Suspension).
(Contracts of Suspended Trading Permit Holders).
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,
2. Statutory Basis
3 15
4 17
Jkt 250001
Rule
Rule
Rule
Rule
Rule
Rule
PO 00000
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
Frm 00116
Fmt 4703
Sfmt 4703
5 15
6 15
E:\FR\FM\10OCN1.SGM
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
10OCN1
Federal Register / Vol. 84, No. 197 / Thursday, October 10, 2019 / Notices
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
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.
7 Id.
VerDate Sep<11>2014
19:50 Oct 09, 2019
Jkt 250001
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 so that the Exchange
may implement the proposed rule
change at the time of its anticipated
October 7, 2019 system migration. The
Exchange notes that the proposed rule
change makes no substantive changes to
any of the rules, and therefore has no
impact on trading on the Exchange, the
operation of the Exchange, or TPH
requirements. The Commission believes
that waiver of the 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 makes only
non-substantive changes to the rules.
Therefore, the Commission hereby
waives the prefiling requirement and
the operative delay and designates the
proposal as operative upon filing.12
8 15
U.S.C. 78s(b)(3)(A).
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 day 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 30-day
operative delay, the Commission also has
9
PO 00000
Frm 00117
Fmt 4703
Sfmt 4703
54701
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–2019–067 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–2019–067. 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 such
filing also will be available for
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
E:\FR\FM\10OCN1.SGM
10OCN1
54702
Federal Register / Vol. 84, No. 197 / Thursday, October 10, 2019 / Notices
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–CBOE–2019–067, and
should be submitted on or before
October 31, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–22149 Filed 10–9–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87228; File No. SR–CBOE–
2019–070]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Certain Rules
in Connection With Market-Makers in
the Shell Rulebook
October 4, 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
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 the Substance
of the Proposed Rule Change
Cboe Exchange, Inc. (the ‘‘Exchange’’
or ‘‘Cboe Options’’) proposes to amend
certain rules in connection with MarketMakers in the shell Rulebook.
13 17
CFR 200.30–3(a)(12).
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).
1
VerDate Sep<11>2014
19:50 Oct 09, 2019
Jkt 250001
The text of the proposed rule change
is also available on the Exchange’s
website (https://www.cboe.com/
AboutCBOE/
CBOELegalRegulatoryHome.aspx), at
the Exchange’s Office of the Secretary,
and at the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
On September 6, 2019, the Exchange
filed a rule filing, SR–CBOE–2019–059,5
operative upon the October 7, 2019
technology migration.6 This rule filing
amended the Exchange rules related to
its Market-Maker program, including
Market-Maker registration,
appointments, and obligations. Pursuant
to SR–CBOE–2019–059, the updated
Market-Maker rules reside in the
Exchange’s shell Rulebook, and, upon
migration, the rules in shell Rulebook
will take effect and the Market-Maker
rules in the currently effective Rulebook
will be deleted.7 Specifically, under SR–
CBOE–2019–059, Rule 5.50 will govern
appointment costs (or ‘‘weights’’, as
amended by SR–CBOE–2019–059) and
5 See Securities Exchange Act Release No. 87024
(September 19, 2019) (Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change
to Amend Certain Rules Relating To Market-Makers
Upon Migration to the Trading System Used by
Cboe Affiliated Exchanges) (SR–CBOE–2019–059).
6 Cboe Options intends to migrate its trading
platform to the same system used by the Cboe
Affiliated Exchanges (i.e., together with Cboe
Options, C2 Exchange, Inc. (‘‘C2’’), 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’’)) 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.
7 See id.
PO 00000
Frm 00118
Fmt 4703
Sfmt 4703
Rule 7.6 will govern the identification of
securities accounts of Market-Makers. In
SR–CBOE–2019–059, the Exchange
inadvertently neglected to update the
Global Trading Hours (‘‘GTH’’)
appointment weights in light of the
amended rules which will apply a
Market-Maker’s selected class
appointments across the entire trading
day (i.e., both GTH and Regular Trading
Hours (‘‘RTH’’)), and inadvertently
neglected to update some instances in
which the rules refer to appointment
costs. It also inadvertently did not
include language specific to Cboe
Options when conforming Rule 7.6 to
the corresponding rules of its affiliated
exchanges, C2, EDGX Options, and BZX
Options (collectively, the ‘‘Affiliated
Options Exchanges’’). The proposed
changes intended to remedy the
aforementioned are described in greater
detail below. In order to coincide with
the effective date of SR–CBOE–2019–
059 and the migration of the Exchange’s
trading platform to the same system
used by the Cboe Affiliated Exchanges,8
the Exchange also intends to implement
this proposed rule change on October 7,
2019.
In particular, SR–CBOE–2019–059
updated Rule 5.50(g) in the shell
Rulebook to reflect the manner in which
appointment weights will function upon
migration. SR–CBOE–2019–059 also
updated the rules to allow a MarketMaker to select class appointments that
will apply to classes during all trading
sessions beginning October 7, 2019.9 In
removing separate class appointments
between the two trading sessions, the
Exchange inadvertently failed to remove
the separate appointment weights for
options classes during GTH. Therefore,
the Exchange now proposes to remove
separate appointment weights for the
GTH trading session from the
appointment weight table under Rule
5.50(g). In addition to this, SR–CBOE–
2019–059 updated the term
appointment costs to appointment
weights, but inadvertently failed to
update all such references throughout
updated Rule 5.50(g). The Exchange
now proposes to update the remaining
references to appointment costs in Rule
5.50(g) to appointment weights.
SR–CBOE–2019–059 also conformed
Rule 7.6 in the shell Rulebook to the
corresponding rules of the Affiliated
Options Exchanges. Rule 7.6 governs the
identification of a Market-Maker’s
securities accounts. In conforming this
rule to the Affiliated Options
Exchanges’ corresponding rules, the
Exchange inadvertently did not
8 Id.
9 See
E:\FR\FM\10OCN1.SGM
Rule 5.50(a) in the shell Rulebook.
10OCN1
]]>Agencies
[Federal Register Volume 84, Number 197 (Thursday, October 10, 2019)]
[Notices]
[Pages 54700-54702]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-22149]
[[Page 54700]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87227; File No. SR-CBOE-2019-067]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Move
Rule 10.2 and the Rules in Chapter XVI of the Currently Effective
Rulebook, Which Governs the Summary Suspension of Trading Permit
Holders, to Proposed Chapter 12 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
October 4, 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 the
Substance of the Proposed Rule Change
Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes
to move Rule 10.2 and the Rules in Chapter XVI of the currently
effective Rulebook (``current Rulebook''), which governs the summary
suspension of Trading Permit Holders (``TPHs''), to proposed Chapter 12
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 Rule 10.2 and current
Chapter XVI, which govern the summary suspension of TPHs, to proposed
Chapter 12 in the shell Rulebook. The Exchange notes that in addition
to relocating the summary suspension rules to proposed Chapter 12 in
the shell Rulebook, the proposed rule change deletes the rules from the
current Rulebook. The proposed rule change relocates the rules as
follows:
------------------------------------------------------------------------
Current rule Proposed rule
------------------------------------------------------------------------
Rule 16.1 (Imposition of Suspension)...... Rule 12.1 (Imposition of
Suspension).
Rule 16.2 (Investigation Following Rule 12.2 (Investigation
Suspension). Following Suspension).
Rule 16.3 (Reinstatement)................. Rule 12.3 (Reinstatement).
Rule 16.4 (Failure to Obtain Rule 12.4 (Failure to Obtain
Reinstatement). Reinstatement).
Rule 16.5 (Termination of Rights by Rule 12.5 (Termination of
Suspension). Rights by Suspension).
Rule 10.2 (Contracts of Suspended Trading Rule 12.6 (Contracts of
Permit Holders). Suspended Trading Permit
Holders).
------------------------------------------------------------------------
The proposed changes are of a non-substantive nature and will not
amend the relocated rules other than to update their rule 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,
[[Page 54701]]
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 day 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 30-day operative delay so that
the Exchange may implement the proposed rule change at the time of its
anticipated October 7, 2019 system migration. The Exchange notes that
the proposed rule change makes no substantive changes to any of the
rules, and therefore has no impact on trading on the Exchange, the
operation of the Exchange, or TPH requirements. The Commission believes
that waiver of the 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 makes only non-substantive changes to the
rules. Therefore, the Commission hereby waives the prefiling
requirement and 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-2019-067 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-2019-067. 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 such filing also will be available for
[[Page 54702]]
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-2019-067, and should be
submitted on or before October 31, 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. 2019-22149 Filed 10-9-19; 8:45 am]
BILLING CODE 8011-01-P
