Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating To Amend Its Financial Incentive Programs for Global Trading Hours Lead Market-Makers, 55366-55370 [2019-22484]
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Federal Register / Vol. 84, No. 200 / Wednesday, October 16, 2019 / Notices
their cash delivery obligations is
designed to help ensure that FICC has
sufficient liquid resources available in
such circumstances. Moreover, for any
outstanding liquidity obligations after
the utilization of EOD Clearing Fund
cash and/or overnight financing with
the GCF Clearing Agent Bank, any
transactions pursuant to the GCF Repo
Allocation Waterfall MRA would be
sized based on the actual liquidity need
presented in a particular situation,
which would help FICC maintain
sufficient liquid resources to settle the
cash delivery obligations of a Netting
Member. Therefore, the Commission
believes that adoption of the proposed
changes is consistent with Rule 17Ad–
22(e)(7)(i).37
khammond on DSKJM1Z7X2PROD with NOTICES
C. Consistency With Rule 17Ad–
22(e)(7)(ii)
Rule 17Ad–22(e)(7)(ii) requires
policies and procedures for holding
qualifying liquid resources sufficient to
meet the minimum liquidity resource
requirement under 17Ad–22(e)(7)(i) in
each relevant currency for which the
covered clearing agency has payment
obligations owed to clearing members.38
Rule 17Ad–22(a)(14) defines qualifying
liquid resources to include, among other
things, assets that are readily available
and convertible into cash through
prearranged funding arrangements, such
as committed arrangements without
material adverse change provisions,
including repurchase agreements.39
As described above, the proposed
process for FICC to access liquidity in
the event that Netting Members will be
delayed in satisfying or cannot satisfy
their cash delivery obligations includes,
in part, the GCF Repo Allocation
Waterfall MRA. This agreement would
be a committed arrangement that is a
repurchase agreement and all
transactions entered into pursuant to the
GCF Repo Allocation Waterfall MRA are
designed to be readily available to meet
the cash delivery obligations owed to
Netting Members. This arrangement
therefore constitutes a qualifying liquid
resource, as defined in Rule 17Ad–
22(a)(14), and the Commission believes,
therefore, that adoption of the proposed
changes is consistent with Rule 17Ad–
22(e)(7)(ii).40
D. Consistency With Rule 17Ad–
22(e)(7)(viii)
Rule 17Ad–22(e)(7)(viii) requires that
a covered clearing agency establish,
implement, maintain, and enforce
37 Id.
38 17
CFR 240.17Ad–22(e)(7)(ii).
CFR 240.17Ad–22(a)(14).
40 17 CFR 240.17Ad–22(e)(7)(ii).
39 17
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written policies and procedures
reasonably designed to effectively
measure, monitor, and manage the
liquidity risk that arises in or is borne
by the covered clearing agency,
including measuring, monitoring, and
managing its settlement and funding
flows on an ongoing and timely basis,
and its use of intraday liquidity by, at
a minimum, addressing foreseeable
liquidity shortfalls that would not be
covered by the covered clearing
agency’s liquid resources and seek to
avoid unwinding, revoking, or delaying
the same-day settlement of payment
obligations.41
The proposed process for FICC to
access liquidity when Netting Members
are delayed in satisfying or cannot
satisfy their cash delivery obligations
provides FICC with a process to address
liquidity shortfalls which may arise in
such circumstances and allow FICC to
complete settlement on a timely basis.
Therefore, this proposed process should
help to avoid unwinding, revoking, or
delaying same-day settlement
obligations. The Commission believes,
therefore, that adoption of the proposed
changes are consistent with Rule 17Ad–
22(e)(7)(viii).42
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87265; File No. SR–CBOE–
2019–083]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Relating To Amend Its
Financial Incentive Programs for
Global Trading Hours Lead MarketMakers
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
2, 2019, Cboe Exchange, Inc. (the
‘‘Exchange’’ or ‘‘Cboe Options’’) filed
with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I, II, and III 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.
III. Conclusion
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
On the basis of the foregoing, the
Commission finds that the proposed
rule change is consistent with the
requirements of the Act and in
particular with the requirements of
Section 17A of the Act 43 and the rules
and regulations promulgated
thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act 44 that
proposed rule change SR–FICC–2019–
004, be, and hereby is, Approved.45
Cboe Exchange, Inc. (the ‘‘Exchange’’
or ‘‘Cboe Options’’) proposes to amend
its financial incentive programs for
Global Trading Hours Lead MarketMakers. 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/About
CBOE/CBOELegalRegulatory
Home.aspx), at the Exchange’s Office of
the Secretary, and at the Commission’s
Public Reference Room.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.46
Jill M. Peterson,
Assistant Secretary.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
[FR Doc. 2019–22480 Filed 10–15–19; 8:45 am]
BILLING CODE 8011–01–P
41 17
CFR 240.17Ad–22(e)(7)(viii).
42 Id.
43 15
U.S.C. 78q–1.
U.S.C. 78s(b)(2).
45 In approving the proposed rule change, the
Commission considered the proposals’ impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
46 17 CFR 200.30–3(a)(12).
44 15
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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.
1 15
2 17
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 84, No. 200 / Wednesday, October 16, 2019 / Notices
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’’). Cboe Options intends to
migrate its trading platform to the same
system used by the Cboe Affiliated
Exchanges, and also migrate its current
billing system to a new billing system,
on October 7, 2019 (the ‘‘migration’’). As
part of the migration to the new billing
system, the Exchange is seeking to
simplify and harmonize certain
programs and billing processes,
including its financial incentive
programs for Lead Market-Makers
(‘‘LMMs’’) in VIX and SPX (including
SPXW) during Global Trading Hours
(‘‘GTH’’). Accordingly, the Exchange
proposes to amend its GTH LMM
financial programs, effective October 1,
2019.
Background
By way of background, pursuant to
Footnote 38 of the Fees Schedule, a
LMM in SPX will receive a rebate for
that month in the amount of a pro-rata
share of a compensation pool equal to
$30,000 times the number of LMMs in
that class (or pro-rated amount if an
appointment begins after the first
trading day of the month or ends prior
to the last trading day of the month) if
the LMM: (1) Provides continuous
electronic quotes in at least the lesser of
99% of the non-adjusted series or 100%
of the non-adjusted series minus one
call-put pair in an GTH allocated class
(excluding intraday add-on series on the
day during which such series are added
for trading) during GTH in a given
month; (2) enters opening quotes within
five minutes of the initiation of an
opening rotation in any series that is not
open due to the lack of a quote,
provided that the LMM will not be
required to enter opening quotes in
more than the same percentage of series
set forth in clause (1) for at least 90%
of the trading days during GTH in a
given month; and (3) satisfies the
following time-weighted average quote
widths and bid/ask sizes for each
moneyness category: (A) Out of the
money options (‘‘OTM’’), average quote
width of $0.90 or less and average bid/
ask size of 15 contracts or greater; (B) at
the money options (‘‘ATM’’), average
quote width of $3.00 or less and bid/ask
size of 10 contracts or greater; and (C)
in the money options (‘‘ITM’’), average
quote width of $10.00 or less and bid/
ask size of 5 contracts or greater.
Also pursuant to Footnote 38 of the
Fees Schedule, a LMM in VIX options
during GTH will receive a rebate for that
month in the amount of a pro-rata share
of a compensation pool equal to $20,000
times the number of LMMs in that class
(or pro-rated if an appointment begins
after the first trading day of the month
or ends prior to the last trading day of
the month) if the LMM: (1) Provides
continuous electronic quotes in at least
the lesser of 99% of the non-adjusted
series or 100% of the non-adjusted
series minus one call-put pair in an
GTH allocated class (excluding intraday add-on series on the day during
which such series are added for trading)
Proposed Change
The Exchange now wishes to simplify
its billing processes and harmonize its
LMM incentive programs. To that end,
the Exchange proposes to eliminate
Footnote [sic] amend the abovementioned incentive programs to align
with the heightened quoting standard
format currently required under the
MSCI LMM Program.3 By way of
background, any Market-Maker that is
appointed as a LMM in MSCI EAFE
Index (‘‘MXEA’’) options and/or MSCI
Emerging Markets Index (‘‘MXEF’’)
(‘‘MSCI LMM’’) and meets the
heightened quoting standard described
below, receives $20,000 per month/per
product.4 Specifically, the LMM will
receive the $20,000 per month/per class
if it provides continuous electronic
quotes that meet or exceed the following
heightened quoting standards in at least
90% of the MXEA and/or MXEF series
80% of the time in a given month:
Premium
Expiring
Near term
Mid term
Long term
Level
7 days or
less
8 days to 60
days
61 days to 270
days
271 days or
greater
Width
$0–$5.00 ..........................................................................................................
$5.01–$15.00 ...................................................................................................
$15.01–$50.00 .................................................................................................
$50.01–$100.00 ...............................................................................................
$100.01–$200.00 .............................................................................................
Greater Than $200.01 .....................................................................................
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and (2) enters opening quotes within
five minutes of the initiation of an
opening rotation in any series that is not
open due to the lack of a quote,
provided that the LMM will not be
required to enter opening quotes in
more than the same percentage of series
set forth in clause (1) for at least 90%
of the trading days during GTH in a
given month.
GTH LMMs are not currently
obligated to satisfy the heightened
quoting standards described in the Fees
Schedule. Rather, the LMMs are eligible
to receive a rebate if they satisfy the
heightened standards, which the
Exchange believes encourage LMMs to
provide liquidity during GTH.
Additionally, the Exchange may
consider other exceptions to this
quoting standard based on demonstrated
legal or regulatory requirements or other
mitigating circumstances.
$3.00
6.00
15.00
25.00
40.00
60.00
Size
5
3
2
1
1
1
Width
$1.50
3.00
7.50
15.00
25.00
40.00
Size
20
15
10
7
3
1
Width
$2.50
5.00
10.00
20.00
35.00
50.00
Size
15
10
7
5
3
1
Width
Size
$5.00
10.00
20.00
30.00
48.00
72.00
The Exchange may also consider other
exceptions to this quoting standard
based on demonstrated legal or
regulatory requirements or other
mitigating circumstances. Like GTH
LMMs, for purposes of the financial
3 In amending the programs, the Exchange
proposes to eliminate Footnote 38 in its entirety
and replace it with separate tables describing the
GTH SPX LMM program and the GTH VIX LMM
program.
4 MSCI LMMs serve as MSCI LMMs during the
RTH session only.
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Federal Register / Vol. 84, No. 200 / Wednesday, October 16, 2019 / Notices
benefit, MSCI LMM(s) are not be
obligated to satisfy the heightened
quoting standard shown above. Rather,
the MSCI LMM(s) only receive the
financial benefit if they satisfy the
abovementioned heightened quoting
standard. If a MSCI LMM does not meet
the heightened quoting standard, then it
simply will not receive the financial
benefit for that month. Additionally,
MSCI LMM(s), like GTH LMMs must
still comply with the continuous
quoting obligation and other obligations
of Market-Makers and LMMs described
in Cboe Options Rules.5
The Exchange first proposes to amend
the GTH SPX LMM program. First, the
Exchange proposes to separate the
available rebate and quoting standard
for SPX and SPXW. More specifically,
the Exchange proposes to provide that if
the LMM meets the heightened quoting
standard described below for SPX, the
LMM will receive a pro-rata share of a
compensation pool for SPX equal to
15,000 times the number of LMMs
appointment in SPX and if the LMM
meets the heightened quoting standard
described below for SPXW, the LMM
will receive an additional pro-rata share
Premium
Expiring
Near term
Mid term
Long term
Level
7 days or
less
8 days to 60
days
61 days to 270
days
271 days or
greater
Width
$0–$5.00 ..........................................................................................................
$5.01–$15.00 ...................................................................................................
$15.01–$50.00 .................................................................................................
$50.01–$100.00 ...............................................................................................
$100.01–$200.00 .............................................................................................
Greater Than $200.00 .....................................................................................
The Exchange also proposes to
similarly amend the GTH VIX LMM
program. The Exchange first notes that
it will maintain the current
compensation pool and continue to
provide that if a GTH VIX LMM meets
the proposed heightened quoting
standard described below, it will receive
Width
$0.40
1.60
4.00
8.00
16.00
24.00
Size
25
18
13
8
5
3
Width
Size
$0.60
2.40
6.00
12.00
24.00
36.00
15
11
8
5
3
1
Width
Size
$1.00
4.00
10.00
20.00
40.00
60.00
10
7
5
3
2
1
per month, the Exchange proposes to
provide that the LMM(s) must provide
continuous electronic quotes that meet
or exceed the following heightened
quoting standards in at least 99% of the
VIX series 90% of the time in a given
month: 8
Premium
Expiring
Near term
Mid term
Long term
Level
7 days or
less
8 days to 60
days
61 days to 270
days
271 days or
greater
The Exchange believes the proposed
rebates provided under the GTH LMM
programs, as amended, continues to
encourage GTH LMMs to provide
significant liquidity in SPX, SPXW and
VIX options during GTH, just as the
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10
7
5
3
2
1
a pro-rata share of a compensation pool
for VIX equal to $20,000 times the
number of LMMs in that class (or prorated amount if an appointment begins
after the first trading day of the month
or ends prior to the last trading day of
the month) for that month.7 In order for
an LMM to receive the rebate of $20,000
$0–$3.00 ..........................................................................................................
$3.01–$5.00 .....................................................................................................
$5.01–$10.00 ...................................................................................................
$10.01–$30.00 .................................................................................................
$30.01–$30.00 .................................................................................................
Greater Than $100.00 .....................................................................................
5 See
e.g., Cboe Options Rule 8.7 and Rule 8.15.
Exchange proposes to continue to include
in the Fees Schedule an example of how the
compensation pools work. Specifically, the
Exchange will provide the following example: if
two LMMs are appointed in SPX a compensation
pool will be established each month for (i) SPX
totaling $30,000 and (ii) SPXW totaling $30,000. If
each LMM meets the heightened continuous
quoting standard in SPX and SPXW during a
month, each will receive $30,000. If only one LMM
6 The
17:10 Oct 15, 2019
Size
$0.50
2.00
5.00
10.00
20.00
30.00
Width
VerDate Sep<11>2014
of a compensation pool for SPXW equal
to $15,000 times the number of LMMs
in that class (for a total of $30,000 per
month for meeting the standard for both
SPX and SPXW).6 The Exchange next
proposes to amend the heighted quoting
standard to provide that in order to
receive the rebates under the program,
the SPX LMM(s) must provide
continuous electronic quotes that meet
or exceed the following heightened
quoting standards in at least 99% of
each of SPX and SPXW series 90% of
the time in a given month during GTH:
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$0.50
0.75
$1.00
3.00
5.00
10.00
Size
25
15
10
5
3
1
Width
$0.40
0.60
0.80
1.00
3.00
5.00
Size
50
30
20
10
5
1
Width
$0.50
0.75
1.00
3.00
5.00
10.00
Size
25
15
10
5
3
1
Width
$1.00
1.50
2.00
5.00
7.00
12.00
Size
10
7
5
3
2
1
standards and rebate under the current
MSCI financial incentive program
similarly incentivizes MSCI LMMs to
provide significant liquidity in MSCI
products. Additionally, the Exchange
notes that both GTH LMMs and MSCI
LMMs may need to undertake expenses
to be able to quote at a significantly
heightened standard in these classes,
such as purchase more logical
connectivity based on their increased
capacity needs. The Exchange notes that
meets the heightened continuous quoting standard
in SPX and SPXW during a month, that LMM
would receive $60,000 and the other one would
receive nothing.
7 The Exchange proposes to continue to include
in the Fees Schedule an example of how the
compensation pools work. Specifically, the
Exchange will provide the following example: If
two LMMs are appointed in VIX a compensation
pool will be established each month totaling
$40,000. If each LMM meets the heightened
continuous quoting standard in VIX during a
month, each will receive $20,000. If only one LMM
meets the heightened continuous quoting standard
in VIX during a month, that LMM would receive
$40,000 and the other one would receive nothing.
8 For the month of October 2019, the Exchange
proposes to apply the heightened quoting standard
from October 7 to October 31, in light of the
migration of the Exchange’s billing system.
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Federal Register / Vol. 84, No. 200 / Wednesday, October 16, 2019 / Notices
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the proposed amendments to the GTH
LMM program provides a harmonized
approach to financial incentive
programs for LMMs. The programs, as
proposed, continue to offer financial
benefits for meeting heightened quoting
standards.
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.9 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 10 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
Section 6(b)(4) of the Act,11 which
requires that Exchange rules provide for
the equitable allocation of reasonable
dues, fees, and other charges among its
Trading Permit Holders and other
persons using its facilities.
First, the Exchange believes the
proposed changes to the GTH LMM
financial benefit programs are
reasonable as the Exchange believes the
proposed amendments provide for a
simpler and more streamlined
heightened quoting standard, is easier to
administer on the new billing platform
and provides harmonization across
LMM financial benefit programs (e.g.,
conforms with the format of the MSCI
LMM program). The Exchange also
believes the proposed amended rebates
are reasonable as the proposed rebates
are similar to the rebates offered
currently. Particularly, the Exchange
proposes to maintain the current
compensation pools and rebate
amounts, with the only change being
that SPX and SPXW will have separate
compensation pools. (i.e., GTH SPX
LMMs are currently eligible for a
compensation pool equal to $30,000
times the number of LMMs in SPX, and
post-migration they will be eligible for
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
11 15 U.S.C. 78f(b)(4).
10 15
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two compensation pools, one for SPX at
$15,000 times the number of LMMs in
SPX and another for SPXW at $15,000
times the number of LMMs in SPX). The
Exchange also believes the GTH LMM
financial incentive programs are
reasonable, equitable and not unfairly
discriminatory because the Exchange
wants to ensure it continues
incentivizing the LMMs to provide
liquid and active markets in these
products during GTH. The Exchange
believes it is equitable and not unfairly
discriminatory to only offer this
financial incentive to the GTH LMMs
because it benefits all market
participants trading SPX, SPXW and
VIX during GTH to encourage the LMMs
to satisfy the heightened quoting
standards, which may increase liquidity
and provide more trading opportunities
and tighter spreads. Indeed, the
Exchange notes that the GTH LMMs
provide a crucial role in providing
quotes and the opportunity for market
participants to trade during GTH, which
can lead to increased volume, thereby
providing a robust market. The
Exchange also notes that the GTH LMM
may have added costs each month that
it needs to undertake in order to satisfy
that heightened quoting standard (e.g.,
having to purchase additional logical
connectivity).
The Exchange ultimately wishes to
ensure a GTH LMM is adequately
incentivized to provide liquid and
active markets in SPX, SPXW and VIX
during GTH to encourage liquidity. The
Exchange believes that the program,
even as amended, will continue to
encourage increased quoting to add
liquidity in SPX, SPXW and VIX
products, thereby protecting investors
and the public interest. Additionally, if
a GTH LMM does not satisfy the
heightened quoting standards for the
duration of the required time, then it
simply will not receive the offered per
class payment for that month.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule changes will impose
any burden on competition that are not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange does not believe that the
proposed rule change will impose any
burden on intramarket competition that
is not necessary or appropriate in
furtherance of the purposes of the Act
because it applies uniformly to similarly
situated GTH LMMs, which market
participants play a crucial role in
providing active and liquid markets
during GTH. The Exchange does not
believe that the proposed rule change
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55369
will impose any burden on intermarket
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act because SPX, SPXW
and VIX options are proprietary
products that will only be traded on
Cboe Options. To the extent that the
proposed changes make Cboe Options a
more attractive marketplace for market
participants at other exchanges, such
market participants are welcome to
become Cboe Options market
participants.
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
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 12 and paragraph (f) of Rule
19b–4 13 thereunder. At any time within
60 days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission will institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
CBOE–2019–083 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.
12 15
13 17
E:\FR\FM\16OCN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
16OCN1
55370
Federal Register / Vol. 84, No. 200 / Wednesday, October 16, 2019 / Notices
All submissions should refer to File
Number SR–CBOE–2019–083. 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
offices 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–2019–083, and
should be submitted on or before
November 6, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–22484 Filed 10–15–19; 8:45 am]
BILLING CODE 8011–01–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
khammond on DSKJM1Z7X2PROD with NOTICES
[Docket No. FAA–2019–0781]
Agency Information Collection
Activities: Requests for Comments;
Clearance of Renewed Approval of
Information Collection: Automatic
Dependent Surveillance Broadcast
(ADS–B) Out Performance
Requirements To Support Air Traffic
Control (ATC) Service
Federal Aviation
Administration (FAA), DOT.
AGENCY:
14 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
17:10 Oct 15, 2019
Jkt 250001
Notice and request for
comments.
ACTION:
In accordance with the
Paperwork Reduction Act of 1995, FAA
invites public comments about our
intention to request the Office of
Management and Budget (OMB)
approval to renew a previously
approved information collection. The
final rule titles ‘‘Automatic Dependent
Surveillance Broadcast (ADS–B)
Equipage Mandate to Support Air
Traffic Control Service,’’ requires
performance requirements for certain
avionics equipment on aircraft operating
in specified classes of airspace within
the United States National Airspace
System (NAS). The rule facilitates the
use of ADS–B for aircraft surveillance
by FAA air traffic controllers to
accommodate the expected increase in
demand for air transportation.
DATES: Written comments should be
submitted by December 16, 2019.
ADDRESSES: Please send written
comments:
By Electronic Docket:
www.regulations.gov (Enter docket
number into search field)
By mail: Send comments to FAA at
the following address: Mr. David Gray,
Group Manager, Surveillance and
Broadcast Services, AJM–42, Air Traffic
Organization, Federal Aviation
Administration, 600 Independence Ave.
SW, Wilbur Wright Building,
Washington, DC 20597
By fax: +1.202.267.1277 (Attention:
Mr. David Gray, Group Manager,
Surveillance and Broadcast Services,
AJM–42, Air Traffic Organization,
Federal Aviation Administration
FOR FURTHER INFORMATION CONTACT: For
technical questions concerning this
action, contact Mr. Bryan Robles,
Surveillance and Broadcast Services,
Air Traffic Organization, Federal
Aviation Administration at
bryan.robles@faa.gov or +1.202–267–
0122.
SUMMARY:
SUPPLEMENTARY INFORMATION:
Public Comments Invited: You are
asked to comment on any aspect of this
information collection, including (a)
Whether the proposed collection of
information is necessary for FAA’s
performance; (b) the accuracy of the
estimated burden; (c) ways for FAA to
enhance the quality, utility and clarity
of the information collection; and (d)
ways that the burden could be
minimized without reducing the quality
of the collected information. The agency
will summarize and/or include your
comments in the request for OMB’s
clearance of this information collection.
OMB Control Number: 2120–0728.
PO 00000
Frm 00097
Fmt 4703
Sfmt 9990
Title: Automatic Dependent
Surveillance—Broadcast (ADS–B) Out
Performance Requirements To Support
Air Traffic control (ATC) Service.
Form Numbers: None.
Type of Review: Renewal of an
information collection.
Background: 14 CFR part 91 includes
requirements for certain avionics
equipment on aircraft operating in
specified classes of airspace within the
United States National Airspace System
(NAS). After January 1, 2020, unless
otherwise authorized by ATC, all
aircraft operating in the airspace
identified in § 91.225 must comply with
the ADS–B Out equipage and
performance requirements in §§ 91.225
and 91.227. This collection supports the
surveillance information needs of the
FAA by requiring avionics equipment
that continuously transmits aircraft
information through the 1090 megahertz
(MHz) extended squitter (ES) broadcast
link or the Universal Access Transceiver
(UAT) broadcast link to be received by
the FAA, via automation, for use in
providing air traffic surveillance
services. ADS–B equipment will
continuously transmit aircraft
information in ‘‘real time’’ to FAA
ground receivers. ADS–B Out moves air
traffic control from a radar-based system
to a satellite-derived aircraft location
system with capabilities for reducing
lateral and longitudinal separation
standards. Old information is
overwritten on a continuous basis when
provided for air traffic surveillance
services. As part of the renewal process,
the Office of Management and Budget
(OMB) requests an estimate of the
burden imposed to the public for the
collection of information. However, in
this case, ADS–B Out information is
collected electronically, without input
by a human operator. Subsequently a 1hour burden is submitted as a
placeholder to allow entry in OMB’s
burden inventory.
Respondents: Approximately
100,000–160,000 operators.
Frequency: Information is collected
automatically through ADS–B Out
transmissions.
Estimated Average Burden per
Response: 1 hour (placeholder).
Estimated Total Annual Burden: 1
hour (placeholder).
Issued in Washington, DC, on October 9,
2019.
David E. Gray,
Group Manager, Surveillance and Broadcast
Services (AJM–42), Program Management
Office, Air Traffic Organization, Federal
Aviation Administration.
[FR Doc. 2019–22557 Filed 10–15–19; 8:45 am]
BILLING CODE 4910–13–P
E:\FR\FM\16OCN1.SGM
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]]>Agencies
[Federal Register Volume 84, Number 200 (Wednesday, October 16, 2019)]
[Notices]
[Pages 55366-55370]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-22484]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87265; File No. SR-CBOE-2019-083]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Relating
To Amend Its Financial Incentive Programs for Global Trading Hours Lead
Market-Makers
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 2, 2019, Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe
Options'') filed with the Securities and Exchange Commission (``SEC''
or ``Commission'') the proposed rule change as described in Items I,
II, and III 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
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 amend its financial incentive programs for Global Trading Hours Lead
Market-Makers. 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.
[[Page 55367]]
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''). Cboe Options intends to migrate its trading platform to
the same system used by the Cboe Affiliated Exchanges, and also migrate
its current billing system to a new billing system, on October 7, 2019
(the ``migration''). As part of the migration to the new billing
system, the Exchange is seeking to simplify and harmonize certain
programs and billing processes, including its financial incentive
programs for Lead Market-Makers (``LMMs'') in VIX and SPX (including
SPXW) during Global Trading Hours (``GTH''). Accordingly, the Exchange
proposes to amend its GTH LMM financial programs, effective October 1,
2019.
Background
By way of background, pursuant to Footnote 38 of the Fees Schedule,
a LMM in SPX will receive a rebate for that month in the amount of a
pro-rata share of a compensation pool equal to $30,000 times the number
of LMMs in that class (or pro-rated amount if an appointment begins
after the first trading day of the month or ends prior to the last
trading day of the month) if the LMM: (1) Provides continuous
electronic quotes in at least the lesser of 99% of the non-adjusted
series or 100% of the non-adjusted series minus one call-put pair in an
GTH allocated class (excluding intraday add-on series on the day during
which such series are added for trading) during GTH in a given month;
(2) enters opening quotes within five minutes of the initiation of an
opening rotation in any series that is not open due to the lack of a
quote, provided that the LMM will not be required to enter opening
quotes in more than the same percentage of series set forth in clause
(1) for at least 90% of the trading days during GTH in a given month;
and (3) satisfies the following time-weighted average quote widths and
bid/ask sizes for each moneyness category: (A) Out of the money options
(``OTM''), average quote width of $0.90 or less and average bid/ask
size of 15 contracts or greater; (B) at the money options (``ATM''),
average quote width of $3.00 or less and bid/ask size of 10 contracts
or greater; and (C) in the money options (``ITM''), average quote width
of $10.00 or less and bid/ask size of 5 contracts or greater.
Also pursuant to Footnote 38 of the Fees Schedule, a LMM in VIX
options during GTH will receive a rebate for that month in the amount
of a pro-rata share of a compensation pool equal to $20,000 times the
number of LMMs in that class (or pro-rated if an appointment begins
after the first trading day of the month or ends prior to the last
trading day of the month) if the LMM: (1) Provides continuous
electronic quotes in at least the lesser of 99% of the non-adjusted
series or 100% of the non-adjusted series minus one call-put pair in an
GTH allocated class (excluding intra-day add-on series on the day
during which such series are added for trading) and (2) enters opening
quotes within five minutes of the initiation of an opening rotation in
any series that is not open due to the lack of a quote, provided that
the LMM will not be required to enter opening quotes in more than the
same percentage of series set forth in clause (1) for at least 90% of
the trading days during GTH in a given month.
GTH LMMs are not currently obligated to satisfy the heightened
quoting standards described in the Fees Schedule. Rather, the LMMs are
eligible to receive a rebate if they satisfy the heightened standards,
which the Exchange believes encourage LMMs to provide liquidity during
GTH. Additionally, the Exchange may consider other exceptions to this
quoting standard based on demonstrated legal or regulatory requirements
or other mitigating circumstances.
Proposed Change
The Exchange now wishes to simplify its billing processes and
harmonize its LMM incentive programs. To that end, the Exchange
proposes to eliminate Footnote [sic] amend the above-mentioned
incentive programs to align with the heightened quoting standard format
currently required under the MSCI LMM Program.\3\ By way of background,
any Market-Maker that is appointed as a LMM in MSCI EAFE Index
(``MXEA'') options and/or MSCI Emerging Markets Index (``MXEF'')
(``MSCI LMM'') and meets the heightened quoting standard described
below, receives $20,000 per month/per product.\4\ Specifically, the LMM
will receive the $20,000 per month/per class if it provides continuous
electronic quotes that meet or exceed the following heightened quoting
standards in at least 90% of the MXEA and/or MXEF series 80% of the
time in a given month:
---------------------------------------------------------------------------
\3\ In amending the programs, the Exchange proposes to eliminate
Footnote 38 in its entirety and replace it with separate tables
describing the GTH SPX LMM program and the GTH VIX LMM program.
\4\ MSCI LMMs serve as MSCI LMMs during the RTH session only.
----------------------------------------------------------------------------------------------------------------
Premium Expiring Near term Mid term Long term
----------------------------------------------------------------------------------------------------------------
7 days or 8 days to 60 61 days to 270 271 days or
less days days greater
Level ---------------------------------------------------------------
Width Size Width Size Width Size Width Size
----------------------------------------------------------------------------------------------------------------
$0-$5.00........................................ $3.00 5 $1.50 20 $2.50 15 $5.00 10
$5.01-$15.00.................................... 6.00 3 3.00 15 5.00 10 10.00 7
$15.01-$50.00................................... 15.00 2 7.50 10 10.00 7 20.00 5
$50.01-$100.00.................................. 25.00 1 15.00 7 20.00 5 30.00 3
$100.01-$200.00................................. 40.00 1 25.00 3 35.00 3 48.00 2
Greater Than $200.01............................ 60.00 1 40.00 1 50.00 1 72.00 1
----------------------------------------------------------------------------------------------------------------
The Exchange may also consider other exceptions to this quoting
standard based on demonstrated legal or regulatory requirements or
other mitigating circumstances. Like GTH LMMs, for purposes of the
financial
[[Page 55368]]
benefit, MSCI LMM(s) are not be obligated to satisfy the heightened
quoting standard shown above. Rather, the MSCI LMM(s) only receive the
financial benefit if they satisfy the abovementioned heightened quoting
standard. If a MSCI LMM does not meet the heightened quoting standard,
then it simply will not receive the financial benefit for that month.
Additionally, MSCI LMM(s), like GTH LMMs must still comply with the
continuous quoting obligation and other obligations of Market-Makers
and LMMs described in Cboe Options Rules.\5\
---------------------------------------------------------------------------
\5\ See e.g., Cboe Options Rule 8.7 and Rule 8.15.
---------------------------------------------------------------------------
The Exchange first proposes to amend the GTH SPX LMM program.
First, the Exchange proposes to separate the available rebate and
quoting standard for SPX and SPXW. More specifically, the Exchange
proposes to provide that if the LMM meets the heightened quoting
standard described below for SPX, the LMM will receive a pro-rata share
of a compensation pool for SPX equal to 15,000 times the number of LMMs
appointment in SPX and if the LMM meets the heightened quoting standard
described below for SPXW, the LMM will receive an additional pro-rata
share of a compensation pool for SPXW equal to $15,000 times the number
of LMMs in that class (for a total of $30,000 per month for meeting the
standard for both SPX and SPXW).\6\ The Exchange next proposes to amend
the heighted quoting standard to provide that in order to receive the
rebates under the program, the SPX LMM(s) must provide continuous
electronic quotes that meet or exceed the following heightened quoting
standards in at least 99% of each of SPX and SPXW series 90% of the
time in a given month during GTH:
---------------------------------------------------------------------------
\6\ The Exchange proposes to continue to include in the Fees
Schedule an example of how the compensation pools work.
Specifically, the Exchange will provide the following example: if
two LMMs are appointed in SPX a compensation pool will be
established each month for (i) SPX totaling $30,000 and (ii) SPXW
totaling $30,000. If each LMM meets the heightened continuous
quoting standard in SPX and SPXW during a month, each will receive
$30,000. If only one LMM meets the heightened continuous quoting
standard in SPX and SPXW during a month, that LMM would receive
$60,000 and the other one would receive nothing.
----------------------------------------------------------------------------------------------------------------
Premium Expiring Near term Mid term Long term
----------------------------------------------------------------------------------------------------------------
7 days or 8 days to 60 61 days to 270 271 days or
less days days greater
Level ---------------------------------------------------------------
Width Size Width Size Width Size Width Size
----------------------------------------------------------------------------------------------------------------
$0-$5.00........................................ $0.50 10 $0.40 25 $0.60 15 $1.00 10
$5.01-$15.00.................................... 2.00 7 1.60 18 2.40 11 4.00 7
$15.01-$50.00................................... 5.00 5 4.00 13 6.00 8 10.00 5
$50.01-$100.00.................................. 10.00 3 8.00 8 12.00 5 20.00 3
$100.01-$200.00................................. 20.00 2 16.00 5 24.00 3 40.00 2
Greater Than $200.00............................ 30.00 1 24.00 3 36.00 1 60.00 1
----------------------------------------------------------------------------------------------------------------
The Exchange also proposes to similarly amend the GTH VIX LMM
program. The Exchange first notes that it will maintain the current
compensation pool and continue to provide that if a GTH VIX LMM meets
the proposed heightened quoting standard described below, it will
receive a pro-rata share of a compensation pool for VIX equal to
$20,000 times the number of LMMs in that class (or pro-rated amount if
an appointment begins after the first trading day of the month or ends
prior to the last trading day of the month) for that month.\7\ In order
for an LMM to receive the rebate of $20,000 per month, the Exchange
proposes to provide that the LMM(s) must provide continuous electronic
quotes that meet or exceed the following heightened quoting standards
in at least 99% of the VIX series 90% of the time in a given month: \8\
---------------------------------------------------------------------------
\7\ The Exchange proposes to continue to include in the Fees
Schedule an example of how the compensation pools work.
Specifically, the Exchange will provide the following example: If
two LMMs are appointed in VIX a compensation pool will be
established each month totaling $40,000. If each LMM meets the
heightened continuous quoting standard in VIX during a month, each
will receive $20,000. If only one LMM meets the heightened
continuous quoting standard in VIX during a month, that LMM would
receive $40,000 and the other one would receive nothing.
\8\ For the month of October 2019, the Exchange proposes to
apply the heightened quoting standard from October 7 to October 31,
in light of the migration of the Exchange's billing system.
----------------------------------------------------------------------------------------------------------------
Premium Expiring Near term Mid term Long term
----------------------------------------------------------------------------------------------------------------
7 days or 8 days to 60 61 days to 270 271 days or
less days days greater
Level ---------------------------------------------------------------
Width Size Width Size Width Size Width Size
----------------------------------------------------------------------------------------------------------------
$0-$3.00........................................ $0.50 25 $0.40 50 $0.50 25 $1.00 10
$3.01-$5.00..................................... 0.75 15 0.60 30 0.75 15 1.50 7
$5.01-$10.00.................................... $1.00 10 0.80 20 1.00 10 2.00 5
$10.01-$30.00................................... 3.00 5 1.00 10 3.00 5 5.00 3
$30.01-$30.00................................... 5.00 3 3.00 5 5.00 3 7.00 2
Greater Than $100.00............................ 10.00 1 5.00 1 10.00 1 12.00 1
----------------------------------------------------------------------------------------------------------------
The Exchange believes the proposed rebates provided under the GTH
LMM programs, as amended, continues to encourage GTH LMMs to provide
significant liquidity in SPX, SPXW and VIX options during GTH, just as
the standards and rebate under the current MSCI financial incentive
program similarly incentivizes MSCI LMMs to provide significant
liquidity in MSCI products. Additionally, the Exchange notes that both
GTH LMMs and MSCI LMMs may need to undertake expenses to be able to
quote at a significantly heightened standard in these classes, such as
purchase more logical connectivity based on their increased capacity
needs. The Exchange notes that
[[Page 55369]]
the proposed amendments to the GTH LMM program provides a harmonized
approach to financial incentive programs for LMMs. The programs, as
proposed, continue to offer financial benefits for meeting heightened
quoting standards.
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.\9\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \10\ 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
Section 6(b)(4) of the Act,\11\ which requires that Exchange rules
provide for the equitable allocation of reasonable dues, fees, and
other charges among its Trading Permit Holders and other persons using
its facilities.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
\11\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
First, the Exchange believes the proposed changes to the GTH LMM
financial benefit programs are reasonable as the Exchange believes the
proposed amendments provide for a simpler and more streamlined
heightened quoting standard, is easier to administer on the new billing
platform and provides harmonization across LMM financial benefit
programs (e.g., conforms with the format of the MSCI LMM program). The
Exchange also believes the proposed amended rebates are reasonable as
the proposed rebates are similar to the rebates offered currently.
Particularly, the Exchange proposes to maintain the current
compensation pools and rebate amounts, with the only change being that
SPX and SPXW will have separate compensation pools. (i.e., GTH SPX LMMs
are currently eligible for a compensation pool equal to $30,000 times
the number of LMMs in SPX, and post-migration they will be eligible for
two compensation pools, one for SPX at $15,000 times the number of LMMs
in SPX and another for SPXW at $15,000 times the number of LMMs in
SPX). The Exchange also believes the GTH LMM financial incentive
programs are reasonable, equitable and not unfairly discriminatory
because the Exchange wants to ensure it continues incentivizing the
LMMs to provide liquid and active markets in these products during GTH.
The Exchange believes it is equitable and not unfairly discriminatory
to only offer this financial incentive to the GTH LMMs because it
benefits all market participants trading SPX, SPXW and VIX during GTH
to encourage the LMMs to satisfy the heightened quoting standards,
which may increase liquidity and provide more trading opportunities and
tighter spreads. Indeed, the Exchange notes that the GTH LMMs provide a
crucial role in providing quotes and the opportunity for market
participants to trade during GTH, which can lead to increased volume,
thereby providing a robust market. The Exchange also notes that the GTH
LMM may have added costs each month that it needs to undertake in order
to satisfy that heightened quoting standard (e.g., having to purchase
additional logical connectivity).
The Exchange ultimately wishes to ensure a GTH LMM is adequately
incentivized to provide liquid and active markets in SPX, SPXW and VIX
during GTH to encourage liquidity. The Exchange believes that the
program, even as amended, will continue to encourage increased quoting
to add liquidity in SPX, SPXW and VIX products, thereby protecting
investors and the public interest. Additionally, if a GTH LMM does not
satisfy the heightened quoting standards for the duration of the
required time, then it simply will not receive the offered per class
payment for that month.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule changes will
impose any burden on competition that are not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange does not
believe that the proposed rule change will impose any burden on
intramarket competition that is not necessary or appropriate in
furtherance of the purposes of the Act because it applies uniformly to
similarly situated GTH LMMs, which market participants play a crucial
role in providing active and liquid markets during GTH. The Exchange
does not believe that the proposed rule change will impose any burden
on intermarket competition that is not necessary or appropriate in
furtherance of the purposes of the Act because SPX, SPXW and VIX
options are proprietary products that will only be traded on Cboe
Options. To the extent that the proposed changes make Cboe Options a
more attractive marketplace for market participants at other exchanges,
such market participants are welcome to become Cboe Options market
participants.
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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \12\ and paragraph (f) of Rule 19b-4 \13\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------
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-2019-083 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.
[[Page 55370]]
All submissions should refer to File Number SR-CBOE-2019-083. 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 offices 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-2019-083, and should be submitted
on or before November 6, 2019.
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\14\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-22484 Filed 10-15-19; 8:45 am]
BILLING CODE 8011-01-P
