Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Make Minor Updates and Consolidate Various Exchange Rules in Connection With Business Conduct on the Exchange, and Move Those Rules From the Currently Effective Rulebook to Proposed Chapter 8 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, 55351-55355 [2019-22481]
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Federal Register / Vol. 84, No. 200 / Wednesday, October 16, 2019 / Notices
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–NYSECHX–2019–08 and
should be submitted on or before
November 6, 2019.
khammond on DSKJM1Z7X2PROD with NOTICES
V. Accelerated Approval of Proposed
Rule Change, as Modified By
Amendment No. 1
The Commission finds good cause to
approve the proposed rule change, as
modified by Amendment No. 1, prior to
the thirtieth day after the date of
publication of notice of the filing of
Amendment No. 1 in the Federal
Register. As discussed above, in
Amendment No. 1, the Exchange
proposes, among other things, to: (i)
Extend the pilot period for proposed
NYSE Chicago Rule 7.12 (Trading Halts
Due to Extraordinary Market Volatility)
to October 18, 2020; (ii) amend NYSE
Chicago Article 17, Rule 5(c)(3) to add
definitions of stock-option combination
order and stock-future combination
order and amend NYSE Chicago Article
1, Rule 1 to state that the definitions of
stock-option combination order and
stock-future combination order in NYSE
Chicago Article 1, Rule 1 (jj) and (kk) are
not applicable to trading on the Pillar
trading platform; and (iii) cross
reference Article 21, Rule 1 in proposed
NYSE Chicago Rule 7.45(d)(2)(A). The
proposed changes do not introduce any
rules that differ in any substantive
manner from rules that previously have
been approved by the Commission, or
that have become immediately effective,
pursuant to Section 19(b) of the Act.
Accordingly, the Commission finds
good cause, pursuant to Section 19(b)(2)
of the Act,69 to approve the proposed
rule change, as modified by Amendment
No. 1, on an accelerated basis so that the
Exchange can commence its transition
69 15
U.S.C. 78s(b)(2).
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to the Pillar platform without
unnecessary delay.
VI. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,70 that the
proposed rule change (SR–NYSECHX–
2019–08), as modified by Amendment
No. 1, be and hereby is approved on an
accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.71
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–22483 Filed 10–15–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87266; File No. SR–BOX–
2019–24]
Self-Regulatory Organizations; BOX
Exchange LLC; Notice of Designation
of Longer Period for Commission
Action on Proposed Rule Change To
Amend Rule 7600
October 9, 2019.
On August 8, 2019, BOX Exchange
LLC (‘‘BOX’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘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 provide split-price
functionality to Complex and multi-leg
QOO Orders on the BOX Trading Floor.
The proposed rule change was
published for comment in the Federal
Register on August 27, 2019.3 The
Commission has received no comment
letters on the proposed rule change.
Section 19(b)(2) of the Act 4 provides
that within 45 days of the publication of
notice of the filing of a proposed rule
change, or within such longer period up
to 90 days as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or as to which the
self-regulatory organization consents,
the Commission shall either approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether the
proposed rule change should be
70 Id.
71 17
CFR 200.30–3(a)(31).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 86723
(August 21, 2019), 84 FR 44954.
4 15 U.S.C. 78s(b)(2).
disapproved. The 45th day for this filing
is October 11, 2019.
The Commission is extending the 45day time period for Commission action
on the proposed rule change. The
Commission finds that it is appropriate
to designate a longer period within
which to take action on the proposed
rule change so that it has sufficient time
to consider the proposed rule change.
Accordingly, pursuant to Section
19(b)(2)(A)(ii)(I) of the Act 5 and for the
reasons stated above, the Commission
designates November 25, 2019, as the
date by which the Commission shall
either approve, disapprove, or institute
proceedings to determine whether to
disapprove, the proposed rule change
(File No. BOX–2019–24).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–22485 Filed 10–15–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87261; File No. SR–CBOE–
2019–096]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Make Minor Updates
and Consolidate Various Exchange
Rules in Connection With Business
Conduct on the Exchange, and Move
Those Rules From the Currently
Effective Rulebook to Proposed
Chapter 8 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 9, 2019.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
4, 2019, Cboe Exchange, Inc.
(‘‘Exchange’’ or ‘‘Cboe Options’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange. The
Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of
1 15
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55351
5 15
U.S.C. 78s(b)(2)(A)(ii)(I).
CFR 200.30–3(a)(31).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
6 17
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Federal Register / Vol. 84, No. 200 / Wednesday, October 16, 2019 / Notices
the Act 3 and Rule 19b–4(f)(6)
thereunder.4 The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe Exchange, Inc. (the ‘‘Exchange’’
or ‘‘Cboe Options’’) proposes to make
minor updates and consolidate various
Exchange Rules in connection with
business conduct on the Exchange, and
move those Rules from the currently
effective Rulebook (‘‘current Rulebook’’)
to proposed Chapter 8 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
Options’’), Cboe BZX Exchange, Inc.
(‘‘BZX’’ or ‘‘BZX Options’’), and Cboe
BYX Exchange, Inc. (‘‘BYX’’ and,
Proposed rule
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 consolidate
current Chapter 4 and various other
current rules in connection with
business conduct on the Exchange into
sections of proposed Chapter 8
(Business Conduct) in the shell
Rulebook. The Exchange notes that in
addition to consolidating and moving
the various rules related to business
conduct to proposed Chapter 8, the
proposed rule change deletes the rules
from the current Rulebook. The
proposed rule change moves and, where
applicable, consolidates the rules as
follows:
Current rule
Section A. General Conduct
8.1
8.2
8.3
8.4
8.5
8.6
8.7
8.8
8.9
8.10
8.11
8.12
8.13
8.14
8.15
8.16
8.17
8.18
8.20
8.21
8.22
Just and Equitable Principles of Trade ............................................
Adherence to Law ............................................................................
Gratuities ..........................................................................................
Nominal Employment .......................................................................
False Statements .............................................................................
Manipulation .....................................................................................
Rumors .............................................................................................
Disciplinary Action by Other Organizations .....................................
Other Restrictions on Trading Permit Holders ................................
Prevention of the Misuse of Material, Nonpublic Information .......
Prohibition Against Harassment ....................................................
Anti-Money Laundering Compliance Program ...............................
Third Party Deposits Prohibited .....................................................
Communications to the Exchange or the Clearing Corporation ....
Unbundling of Orders to Maximize Rebates of Fees ....................
Supervision ....................................................................................
Proxy Voting ...................................................................................
Failure to Pay Premium 6 ...............................................................
Prohibition Against Customers Functioning as Market-Makers ....
Multiple Representation Prohibited ................................................
Trading by Trading Permit Holders on the Floor ...........................
4.1
4.2
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.18
4.19
4.20
4.21
4.22
4.23
4.24
4.25
10.3
6.8
6.55
6.22
Just and Equitable Principles of Trade.
Adherence to Law.
Gratuities.
Nominal Employment.
False Statements.
Manipulation.
Rumors.
Disciplinary Action by Other Organizations.
Other Restrictions on Trading Permit Holders.5
Prevention of the Misuse of Material, Nonpublic Information.
Prohibition Against Harassment.
Anti-Money Laundering Compliance Program.
Third Party Deposits Prohibited.
Communications to the Exchange or the Clearing Corporation.
Unbundling of Orders to Maximize Rebates of Fees.
Supervision.
Proxy Voting.
Failure to Pay Premium.
Prohibition Against Customers Functioning as Market-Makers.
Multiple Representation Prohibited.
Trading by Trading Permit Holders on the Floor.
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Section B. Position Limits, Exercise Limits, Liquidation and Reports
8.30 Position Limits ................................................................................
8.31 Position Limits for Broad-Based Index Options .............................
8.32 Position Limits for Industry Index Options .....................................
8.33 Position Limits for Position Limits for Options on Micro NarrowBased Indexes.
8.34 Position Limits for Individual Stock or ETF Based Volatility Index
Options.
3 15
U.S.C. 78s(b)(3)(A)(iii).
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4.11 Position Limits.
24.4 Position Limits for Broad-Based Index Options.
24.4A Position Limits for Industry Index Options.
24.4B Position Limits for Options on Micro Narrow-Based Indexes As
Defined Under Rule 24.2(d).
24.4C Position Limits for Individual Stock or ETF Based Volatility
Index Options.
CFR 240.19b–4(f)(6).
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Federal Register / Vol. 84, No. 200 / Wednesday, October 16, 2019 / Notices
Proposed rule
8.35
Current rule
Position Limits for FLEX Options ...................................................
8.36 Position Limits for Binary Options .................................................
8.37 Position Limit for Range Options ...................................................
8.38 Position Limits for Corporate Debt Security Options .....................
8.39 Position Limits for Credit Options ..................................................
8.40 Position Limits for Government Security Options ..........................
8.41 Position Limits on Interest Rate Options .......................................
8.42 Exercise Limits
8.42(a) ......................................................................................................
8.42(b) ......................................................................................................
8.42(c)
8.42(d)
8.42(e)
8.42(f)
8.42(g)
8.42(h)
.......................................................................................................
......................................................................................................
......................................................................................................
.......................................................................................................
......................................................................................................
......................................................................................................
8.43 Reports Related to Position Limits
8.43(a)–(d) ................................................................................................
8.43(e) ......................................................................................................
8.43(f) .......................................................................................................
8.43(g) ......................................................................................................
8.43(h) ......................................................................................................
8.43(i) ........................................................................................................
8.43(j) ........................................................................................................
8.44 Liquidation of Positions ..................................................................
8.45 Limit on Outstanding Uncovered Short Positions ..........................
8.46 Other Restrictions on Options Transactions and Exercises
8.46(a)–(b) ................................................................................................
8.46(c) .......................................................................................................
khammond on DSKJM1Z7X2PROD with NOTICES
The proposed rule changes make only
non-substantive changes to the rules in
order to update headings that better
flow with the consolidated rules, update
references to other rule text that will be
implemented upon migration, as well as
correct inaccurate references, update
certain technical text formatting that
will be used in the Rules upon
migration (specifically, changing all
times to Eastern Time without time zone
indication pursuant to Rule 1.6 in the
shell Rulebook which states that unless
otherwise specified, all times in the
5 See Securities Exchange Act Release No. 86910
(September 19, 2019) (Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change
to Amend Rule 4.10(b) Regarding the Notice
Requirement in Connection with Trading Permit
Holders that Clear Market-Maker Trades) (SR–
CBOE–2019–055). The changes in SR–C2–2019–015
are currently effective but not yet operative;
however, the proposed rule changes assume
operativeness of those effective changes.
6 The Exchange notes that Rule 8.25 (Restriction
on Acting as Market-Maker and Floor Broker) is
currently in the shell Rulebook, and the proposed
rule change merely updates the rule number to Rule
8.19 to fit within the structure of proposed Chapter
8 in its entirety.
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24A.7(a)–(c) Position Limits and Reporting Requirements [FLEX options, provisions regarding position limits].
22.6 Position Limits [binary options].
20.6 Position Limits [range options].
28.2 Position Limits [corporate debt security options].
29.5 Position Limits [credit options].
21.3 Position Limits [Treasury Bonds and Notes].
23.3 Position Limits [interest rate options].
4.12 Exercise Limits.
24.5 Exercise Limits [index options, including Interpretations and Policies].
20.8 Exercise Limits [range options].
28.3 Exercise Limits [corporate debt security options].
21.4 Exercise Limits [government security options].
23.4 Exercise Limits [interest rate options].
24A.8 Exercise Limits [FLEX options].
22.7 Exercise Limits [binary options], and 29.7 Exercise Limits [credit
options].
4.13 Reports Related to Position Limits.
20.7 Reports Related to Position Limits and Liquidation of Positions
[range options].
22.8 Reports Related to Position Limits and Liquidation of Positions
[binary options].
28.4 Reports Related to Position Limits and Liquidation of Positions
[corporate debt security options].
29.6 Reports Related to Position Limits and Liquidation of Positions
[credit options].
21.5 Reports Related to Position Limits and Liquidation of Positions
(Treasury Bonds and Notes) [government security options].
24A.7(d) Position Limits and Reporting Requirements [FLEX options,
provision regarding reporting requirements].
4.14 Liquidation of Positions.
4.15 Limit on Outstanding Uncovered Short Positions.
4.16 Other Restrictions on Options Transactions and Exercises.
22.9 Other Restrictions on Binary Options Transactions, and 24.10
Restrictions on Contracts [index options].
Rules are Eastern Time), and reformat
the paragraph lettering and numbering.
The proposed rule also makes nonsubstantive changes in connection with
removing redundant rules and rule
language. The proposed rule change
removes Rule 29.8 which states that
current Rule 4.16 (proposed Rule 8.46)
shall be applicable to Credit Options, as
this is redundant of the rule itself. The
proposed change also removes
redundant language under current Rules
21.5, 28.4, and 29.6, in connection with
Government security options, Corporate
Debt Security options, and Credit
Options, respectively. The proposed
rule change removes the language under
each that states that the respective rule
supplements current Rules 4.13 and
4.14. This language is redundant given
the fact that these rules are being
consolidated into the rules in which
they reference and, as described below,
the rules in which they reference are
being updated so that they clearly cover
Government security, Corporate Debt
Security, and Credit options. The
proposed rule change also removes the
introductory clause (‘‘in determining
PO 00000
Frm 00080
Fmt 4703
Sfmt 4703
compliance with Rule 4.12’’) to current
Rules 28.3, 21.4, 23.4, and 24A.8,
because, as indicated in the table above,
these rules will be consolidated into
current Rule 4.12 (proposed Rule 8.42)
which would make this language
redundant. Additionally, the proposed
rule change removes the language under
current Rules 21.5, 28.4, and 29.6 that
states that for the purposes of current
Rules 4.13 and 4.14 (proposed Rules
8.43 and 8.44), references to current
Rule 4.11 (proposed Rule 8.30) in
connection with position limits shall be
deemed, in the case of each respective
option type, to be to the current position
limit rule that governs that option type
(e.g., in the case of Credit Options,
references to current Rule 4.11 are
deemed to be to current Rule 29.5).
Instead, the proposed rule change
replaces the references to current Rule
4.11 in proposed Rules 8.43 and 8.44
with the phrase ‘‘the applicable position
limits Rule’’, thereby encompassing the
position limit provision for all
respective options types and eliminating
the need for the existing multiple crossreference language in currently in Rules
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Federal Register / Vol. 84, No. 200 / Wednesday, October 16, 2019 / Notices
khammond on DSKJM1Z7X2PROD with NOTICES
21.5, 28.4, 29.6. Likewise, the proposed
rule change removes the provision
under current Rule 21A.7 which states
that Rule 24A.7 supplements current
Rule 4.11 generally, but supersedes
Interpretations .02 and .04 of current
Rule 4.11 and all of current Rules 24.4,
24.4A, 24.4B, 24.4C and 29.5 except to
the extent those Rules are referred to in
this rule. The Exchange proposes to
remove the language in the abovedescribed rules, as it believes the
multiple layers of cross-references are
unnecessarily cumbersome and
potentially confusing for investors. It
believes the proposed consolidated
rules with updated and more concise
cross-references make the proposed
rules clear as to the specific position
limit provisions that apply to different
types of options.
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.7 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 8 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) 9 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
The proposed rule change does not
make any substantive changes to the
rules and is merely intended to
consolidate, reorganize, and make
nonsubstantive updates to the
Exchange’s rules in anticipation of the
technology migration on October 7,
2019. The Exchange believes that the
non-substantive proposed changes,
which update technical text and
formatting (e.g. paragraph headings and
time-related references), update rule
cross-references, correct inaccurate rule
7 15
8 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
9 Id.
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cross-references, consolidate and
reorganize rules and rule paragraphs
and/or Interpretations and Policies, and
remove redundant and/or cumbersome
provisions that are potentially confusing
for market participants, particularly in
light of the consolidated shell Rulebook
format, will foster cooperation and
coordination with those facilitating
transactions in securities and remove
impediments to and perfect the
mechanism of a free and open market
and national market system by
simplifying the Exchange Rules and
Rulebook as a whole, and making its
Rules easier to follow and understand,
which will also result in less
burdensome and more efficient
regulatory compliance.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange reiterates that the proposed
rule change is being proposed in the
context of a technology migration of the
Cboe Affiliated Exchanges, and not as a
competitive filing. The Exchange does
not believe that the proposed rule
change will impose any burden on
intramarket competition because it does
not make any substantive changes to the
current Exchange Rules. The proposed
rule change merely intends to provide
consolidated rules upon migration and
consistent technical text and formatting
in the shell Rulebook that will be in
place come October 7, 2019. The
Exchange does not believe that the
proposed rule change will impose any
burden on intermarket competition
because the proposed rules are
substantively 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
PO 00000
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as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 10 and Rule 19b–
4(f)(6) thereunder.11
A proposed rule change filed under
Rule 19b–4(f)(6) 12 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),13 the
Commission may 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 proposal may
become operative upon filing. As the
Exchange represents above, the
proposed rule change would consolidate
current Chapter 4 and various other
current rules in connection with
business conduct on the Exchange into
sections of proposed Chapter 8
(Business Conduct) in the shell
Rulebook and would make only nonsubstantive changes to the relocated
rules. 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 makes only
non-substantive changes to the rules.
The Commission therefore waives the
30-day operative delay and designates
the proposal operative upon filing.14
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.
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:
10 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its intent to
file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
12 Id.
13 17 CFR 240.19b–4(f)(6)(iii).
14 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
11 17
E:\FR\FM\16OCN1.SGM
16OCN1
Federal Register / Vol. 84, No. 200 / Wednesday, October 16, 2019 / Notices
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–2019–096 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.
khammond on DSKJM1Z7X2PROD with NOTICES
All submissions should refer to File
Number SR–CBOE–2019–096. 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–2019–096, and
should be submitted on or before
November 6, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–22481 Filed 10–15–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87262; File No. SR–
NASDAQ–2019–082]
Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend The
Nasdaq Options Market LLC Rules at
Chapter VI and Chapter VII
October 9, 2019.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on
September 26, 2019, The Nasdaq Stock
Market LLC (‘‘Nasdaq’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II, below, which Items have
been prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend The
Nasdaq Options Market LLC Rules at
Chapter VI, Section 5, ‘‘Minimum
Increments,’’ Chapter VI, Section 6,
‘‘Acceptance of Quotes and Orders,’’
Chapter VI, Section 7, ‘‘Entry and
Display Orders,’’ Chapter VI, Section 10,
‘‘Book Processing,’’ Chapter VI, Section
21, ‘‘Order and Quote Protocols,’’
Chapter VII, Section 5, ‘‘Obligations of
Market Makers,’’ and Chapter VII,
Section 12, ‘‘Order Exposure
Requirements.’’ The Exchange proposes
to relocate certain current rules to new
Rules Chapter VI, Section 22, titled
‘‘Kill Switch’’ and 23, titled ‘‘Detection
of Loss of Communication.’’ The text of
the proposed rule change is available on
the Exchange’s website at https://
nasdaq.cchwallstreet.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
1 15
15 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
17:10 Oct 15, 2019
2 17
Jkt 250001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00082
Fmt 4703
Sfmt 4703
55355
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
Chapter VI, Section 5, ‘‘Minimum
Increments,’’ Chapter VI, Section 6,
‘‘Acceptance of Quotes and Orders,’’
Chapter VI, Section 7, ‘‘Entry and
Display Orders,’’ Chapter VI, Section 10,
‘‘Book Processing,’’ Chapter VI, Section
21, ‘‘Order and Quote Protocols,’’
Chapter VII, Section 5, ‘‘Obligations of
Market Makers,’’ and Chapter VII,
Section 12, ‘‘Order Exposure
Requirements.’’ The Exchange proposes
to relocate certain current rules to new
Rules Chapter VI, Section 22, titled
‘‘Kill Switch’’ and 23, titled ‘‘Detection
of Loss of Communication.’’ Each rule
change will be discussed in greater
detail below.
Chapter VI, Section 5 Minimum
Increments
The Exchange proposes to amend
Chapter VI, Section 5 to add a new
Section 5(c) which provides, ‘‘A quote
submitted to the System with an invalid
trading increment will be re-priced. The
quote will be rounded up to the nearest
valid minimum price variation for offers
and rounded down for bids.’’ Today, a
quote submitted to NOM with an
invalid trading increment will be repriced. The Exchange will round the
price up to the nearest valid minimum
price variation for offers and will round
the price down for bids. The Exchange
believes that providing this
transparency within the Exchange’s
rules will provide Market Makers with
greater information on the manner in
which invalid increments will be
handled by the System and provide
them with expectations.
Chapter VI, Section 6 Acceptance of
Quotes and Orders
Currently, Chapter VI, Section 6 is
titled ‘‘Acceptance of Quotes and
Orders.’’ The Exchange proposes to
retitle Chapter VI, Section 6 as ‘‘Entry
and Display of Quotes.’’ The Exchange
proposes to add an (a) before the first
paragraph. The Exchange is removing
references to orders in this Rule because
it also proposes to adopt a new Chapter
VI, Section 7, titled ‘‘Entry and Display
of Orders’’ to describe requirements for
order entry.
E:\FR\FM\16OCN1.SGM
16OCN1
]]>Agencies
[Federal Register Volume 84, Number 200 (Wednesday, October 16, 2019)]
[Notices]
[Pages 55351-55355]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-22481]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87261; File No. SR-CBOE-2019-096]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Make
Minor Updates and Consolidate Various Exchange Rules in Connection With
Business Conduct on the Exchange, and Move Those Rules From the
Currently Effective Rulebook to Proposed Chapter 8 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 9, 2019.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on October 4, 2019, Cboe Exchange, Inc. (``Exchange'' or ``Cboe
Options'') filed with the Securities and Exchange Commission
(``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
[[Page 55352]]
the Act \3\ and Rule 19b-4(f)(6) thereunder.\4\ The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes
to make minor updates and consolidate various Exchange Rules in
connection with business conduct on the Exchange, and move those Rules
from the currently effective Rulebook (``current Rulebook'') to
proposed Chapter 8 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 consolidate current Chapter 4 and various
other current rules in connection with business conduct on the Exchange
into sections of proposed Chapter 8 (Business Conduct) in the shell
Rulebook. The Exchange notes that in addition to consolidating and
moving the various rules related to business conduct to proposed
Chapter 8, the proposed rule change deletes the rules from the current
Rulebook. The proposed rule change moves and, where applicable,
consolidates the rules as follows:
------------------------------------------------------------------------
Proposed rule Current rule
------------------------------------------------------------------------
Section A. General Conduct
------------------------------------------------------------------------
8.1 Just and Equitable Principles of 4.1 Just and Equitable
Trade. Principles of Trade.
8.2 Adherence to Law................... 4.2 Adherence to Law.
8.3 Gratuities......................... 4.4 Gratuities.
8.4 Nominal Employment................. 4.5 Nominal Employment.
8.5 False Statements................... 4.6 False Statements.
8.6 Manipulation....................... 4.7 Manipulation.
8.7 Rumors............................. 4.8 Rumors.
8.8 Disciplinary Action by Other 4.9 Disciplinary Action by
Organizations. Other Organizations.
8.9 Other Restrictions on Trading 4.10 Other Restrictions on
Permit Holders. Trading Permit Holders.\5\
8.10 Prevention of the Misuse of 4.18 Prevention of the Misuse
Material, Nonpublic Information. of Material, Nonpublic
Information.
8.11 Prohibition Against Harassment.... 4.19 Prohibition Against
Harassment.
8.12 Anti-Money Laundering Compliance 4.20 Anti-Money Laundering
Program. Compliance Program.
8.13 Third Party Deposits Prohibited... 4.21 Third Party Deposits
Prohibited.
8.14 Communications to the Exchange or 4.22 Communications to the
the Clearing Corporation. Exchange or the Clearing
Corporation.
8.15 Unbundling of Orders to Maximize 4.23 Unbundling of Orders to
Rebates of Fees. Maximize Rebates of Fees.
8.16 Supervision....................... 4.24 Supervision.
8.17 Proxy Voting...................... 4.25 Proxy Voting.
8.18 Failure to Pay Premium \6\........ 10.3 Failure to Pay Premium.
8.20 Prohibition Against Customers 6.8 Prohibition Against
Functioning as Market-Makers. Customers Functioning as
Market-Makers.
8.21 Multiple Representation Prohibited 6.55 Multiple Representation
Prohibited.
8.22 Trading by Trading Permit Holders 6.22 Trading by Trading Permit
on the Floor. Holders on the Floor.
------------------------------------------------------------------------
Section B. Position Limits, Exercise Limits, Liquidation and Reports
------------------------------------------------------------------------
8.30 Position Limits................... 4.11 Position Limits.
8.31 Position Limits for Broad-Based 24.4 Position Limits for Broad-
Index Options. Based Index Options.
8.32 Position Limits for Industry Index 24.4A Position Limits for
Options. Industry Index Options.
8.33 Position Limits for Position 24.4B Position Limits for
Limits for Options on Micro Narrow- Options on Micro Narrow-Based
Based Indexes. Indexes As Defined Under Rule
24.2(d).
8.34 Position Limits for Individual 24.4C Position Limits for
Stock or ETF Based Volatility Index Individual Stock or ETF Based
Options. Volatility Index Options.
[[Page 55353]]
8.35 Position Limits for FLEX Options.. 24A.7(a)-(c) Position Limits
and Reporting Requirements
[FLEX options, provisions
regarding position limits].
8.36 Position Limits for Binary Options 22.6 Position Limits [binary
options].
8.37 Position Limit for Range Options.. 20.6 Position Limits [range
options].
8.38 Position Limits for Corporate Debt 28.2 Position Limits [corporate
Security Options. debt security options].
8.39 Position Limits for Credit Options 29.5 Position Limits [credit
options].
8.40 Position Limits for Government 21.3 Position Limits [Treasury
Security Options. Bonds and Notes].
8.41 Position Limits on Interest Rate 23.3 Position Limits [interest
Options. rate options].
8.42 Exercise Limits
8.42(a)................................ 4.12 Exercise Limits.
8.42(b)................................ 24.5 Exercise Limits [index
options, including
Interpretations and Policies].
8.42(c)................................ 20.8 Exercise Limits [range
options].
8.42(d)................................ 28.3 Exercise Limits [corporate
debt security options].
8.42(e)................................ 21.4 Exercise Limits
[government security options].
8.42(f)................................ 23.4 Exercise Limits [interest
rate options].
8.42(g)................................ 24A.8 Exercise Limits [FLEX
options].
8.42(h)................................ 22.7 Exercise Limits [binary
options], and 29.7 Exercise
Limits [credit options].
8.43 Reports Related to Position Limits
8.43(a)-(d)............................ 4.13 Reports Related to
Position Limits.
8.43(e)................................ 20.7 Reports Related to
Position Limits and
Liquidation of Positions
[range options].
8.43(f)................................ 22.8 Reports Related to
Position Limits and
Liquidation of Positions
[binary options].
8.43(g)................................ 28.4 Reports Related to
Position Limits and
Liquidation of Positions
[corporate debt security
options].
8.43(h)................................ 29.6 Reports Related to
Position Limits and
Liquidation of Positions
[credit options].
8.43(i)................................ 21.5 Reports Related to
Position Limits and
Liquidation of Positions
(Treasury Bonds and Notes)
[government security options].
8.43(j)................................ 24A.7(d) Position Limits and
Reporting Requirements [FLEX
options, provision regarding
reporting requirements].
8.44 Liquidation of Positions.......... 4.14 Liquidation of Positions.
8.45 Limit on Outstanding Uncovered 4.15 Limit on Outstanding
Short Positions. Uncovered Short Positions.
8.46 Other Restrictions on Options
Transactions and Exercises
8.46(a)-(b)............................ 4.16 Other Restrictions on
Options Transactions and
Exercises.
8.46(c)................................ 22.9 Other Restrictions on
Binary Options Transactions,
and 24.10 Restrictions on
Contracts [index options].
------------------------------------------------------------------------
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 86910 (September 19,
2019) (Notice of Filing and Immediate Effectiveness of a Proposed
Rule Change to Amend Rule 4.10(b) Regarding the Notice Requirement
in Connection with Trading Permit Holders that Clear Market-Maker
Trades) (SR-CBOE-2019-055). The changes in SR-C2-2019-015 are
currently effective but not yet operative; however, the proposed
rule changes assume operativeness of those effective changes.
\6\ The Exchange notes that Rule 8.25 (Restriction on Acting as
Market-Maker and Floor Broker) is currently in the shell Rulebook,
and the proposed rule change merely updates the rule number to Rule
8.19 to fit within the structure of proposed Chapter 8 in its
entirety.
---------------------------------------------------------------------------
The proposed rule changes make only non-substantive changes to the
rules in order to update headings that better flow with the
consolidated rules, update references to other rule text that will be
implemented upon migration, as well as correct inaccurate references,
update certain technical text formatting that will be used in the Rules
upon migration (specifically, changing all times to Eastern Time
without time zone indication pursuant to Rule 1.6 in the shell Rulebook
which states that unless otherwise specified, all times in the Rules
are Eastern Time), and reformat the paragraph lettering and numbering.
The proposed rule also makes non-substantive changes in connection
with removing redundant rules and rule language. The proposed rule
change removes Rule 29.8 which states that current Rule 4.16 (proposed
Rule 8.46) shall be applicable to Credit Options, as this is redundant
of the rule itself. The proposed change also removes redundant language
under current Rules 21.5, 28.4, and 29.6, in connection with Government
security options, Corporate Debt Security options, and Credit Options,
respectively. The proposed rule change removes the language under each
that states that the respective rule supplements current Rules 4.13 and
4.14. This language is redundant given the fact that these rules are
being consolidated into the rules in which they reference and, as
described below, the rules in which they reference are being updated so
that they clearly cover Government security, Corporate Debt Security,
and Credit options. The proposed rule change also removes the
introductory clause (``in determining compliance with Rule 4.12'') to
current Rules 28.3, 21.4, 23.4, and 24A.8, because, as indicated in the
table above, these rules will be consolidated into current Rule 4.12
(proposed Rule 8.42) which would make this language redundant.
Additionally, the proposed rule change removes the language under
current Rules 21.5, 28.4, and 29.6 that states that for the purposes of
current Rules 4.13 and 4.14 (proposed Rules 8.43 and 8.44), references
to current Rule 4.11 (proposed Rule 8.30) in connection with position
limits shall be deemed, in the case of each respective option type, to
be to the current position limit rule that governs that option type
(e.g., in the case of Credit Options, references to current Rule 4.11
are deemed to be to current Rule 29.5). Instead, the proposed rule
change replaces the references to current Rule 4.11 in proposed Rules
8.43 and 8.44 with the phrase ``the applicable position limits Rule'',
thereby encompassing the position limit provision for all respective
options types and eliminating the need for the existing multiple cross-
reference language in currently in Rules
[[Page 55354]]
21.5, 28.4, 29.6. Likewise, the proposed rule change removes the
provision under current Rule 21A.7 which states that Rule 24A.7
supplements current Rule 4.11 generally, but supersedes Interpretations
.02 and .04 of current Rule 4.11 and all of current Rules 24.4, 24.4A,
24.4B, 24.4C and 29.5 except to the extent those Rules are referred to
in this rule. The Exchange proposes to remove the language in the
above-described rules, as it believes the multiple layers of cross-
references are unnecessarily cumbersome and potentially confusing for
investors. It believes the proposed consolidated rules with updated and
more concise cross-references make the proposed rules clear as to the
specific position limit provisions that apply to different types of
options.
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.\7\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \8\ 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) \9\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
\9\ Id.
---------------------------------------------------------------------------
The proposed rule change does not make any substantive changes to
the rules and is merely intended to consolidate, reorganize, and make
nonsubstantive updates to the Exchange's rules in anticipation of the
technology migration on October 7, 2019. The Exchange believes that the
non-substantive proposed changes, which update technical text and
formatting (e.g. paragraph headings and time-related references),
update rule cross-references, correct inaccurate rule cross-references,
consolidate and reorganize rules and rule paragraphs and/or
Interpretations and Policies, and remove redundant and/or cumbersome
provisions that are potentially confusing for market participants,
particularly in light of the consolidated shell Rulebook format, will
foster cooperation and coordination with those facilitating
transactions in securities and remove impediments to and perfect the
mechanism of a free and open market and national market system by
simplifying the Exchange Rules and Rulebook as a whole, and making its
Rules easier to follow and understand, which will also result in less
burdensome and more efficient regulatory compliance.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange reiterates that
the proposed rule change is being proposed in the context of a
technology migration of the Cboe Affiliated Exchanges, and not as a
competitive filing. The Exchange does not believe that the proposed
rule change will impose any burden on intramarket competition because
it does not make any substantive changes to the current Exchange Rules.
The proposed rule change merely intends to provide consolidated rules
upon migration and consistent technical text and formatting in the
shell Rulebook that will be in place come October 7, 2019. The Exchange
does not believe that the proposed rule change will impose any burden
on intermarket competition because the proposed rules are substantively
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 \10\ and Rule 19b-
4(f)(6) thereunder.\11\
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) \12\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\13\ the Commission
may 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 proposal
may become operative upon filing. As the Exchange represents above, the
proposed rule change would consolidate current Chapter 4 and various
other current rules in connection with business conduct on the Exchange
into sections of proposed Chapter 8 (Business Conduct) in the shell
Rulebook and would make only non-substantive changes to the relocated
rules. 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 makes only non-substantive changes to the rules. The Commission
therefore waives the 30-day operative delay and designates the proposal
operative upon filing.\14\
---------------------------------------------------------------------------
\12\ Id.
\13\ 17 CFR 240.19b-4(f)(6)(iii).
\14\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
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.
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:
[[Page 55355]]
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-2019-096 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-2019-096. 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-2019-096, and should be submitted
on or before November 6, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-22481 Filed 10-15-19; 8:45 am]
BILLING CODE 8011-01-P
