Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating To Move the Rules in Chapter V of the Currently Effective Rulebook to Proposed Section A of Chapter 4 of the Shell Structure for the Exchange's Rulebook That Will Become Effective Upon the Migration of the Exchange's Trading Platform, 55663-55665 [2019-22590]
Download as PDF
<![CDATA[
Federal Register / Vol. 84, No. 201 / Thursday, October 17, 2019 / Notices
19(b)(3)(A)(ii) of the Act,15 and Rule
19b–4(f)(2) 16 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 shall
institute proceedings to determine
whether the proposed rule 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–
MIAX–2019–43 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–MIAX–2019–43. 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–MIAX–2019–43, and
should be submitted on or before
November 7, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–22599 Filed 10–16–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87272; File No. SR–CBOE–
2019–090]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Relating To Move the
Rules in Chapter V of the Currently
Effective Rulebook to Proposed
Section A of Chapter 4 of the Shell
Structure for the Exchange’s Rulebook
That Will Become Effective Upon the
Migration of the Exchange’s Trading
Platform
October 10, 2019.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
3, 2019, Cboe Exchange, Inc. (the
‘‘Exchange’’ or ‘‘Cboe Options’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe Exchange, Inc. (the ‘‘Exchange’’
or ‘‘Cboe Options’’) proposes to move
the Rules in Chapter V of the currently
effective Rulebook (‘‘current
Rulebook’’), which governs securities
dealt in on the Exchange, to proposed
17 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
15 15
U.S.C. 78s(b)(3)(A)(ii).
16 17 CFR 240.19b–4(f)(2).
VerDate Sep<11>2014
17:26 Oct 16, 2019
1 15
Jkt 250001
PO 00000
Frm 00124
Fmt 4703
Sfmt 4703
55663
Section A of Chapter 4 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
E:\FR\FM\17OCN1.SGM
17OCN1
55664
Federal Register / Vol. 84, No. 201 / Thursday, October 17, 2019 / Notices
will be in place upon completion of the
Cboe Options technology migration.
The Exchange proposes to relocate the
rules in Chapter V, which govern
securities dealt in on the Exchange, to
proposed Section A of Chapter 4 in the
shell Rulebook. The Exchange notes that
in addition to relocating the rules under
current Chapter V to proposed Section
A of Chapter 4 in the shell Rulebook,
the proposed rule change deletes the
rules from the current Rulebook. The
proposed rule change relocates the rules
as follows:
Current rule
Proposed rule
4.1 Designation of Underlying Securities ..................................................................
4.2 Rights and Obligations of Holders and Writers ..................................................
4.3 Criteria for Underlying Securities ........................................................................
4.4 Withdrawal of Approval of Underlying Securities ...............................................
4.5 Series of Option Contracts Open for Trading .....................................................
4.5(f) (Long-Term Equity Option Series (LEAPS)) ...................................................
4.6 Adjustments ........................................................................................................
4.7 Select Provisions of Options Listing Procedures Plan .......................................
4.8 Single Stock Dividend Options ...........................................................................
The proposed changes are of a nonsubstantive nature and will not amend
the relocated rules other than to update
their rule numbers, conform paragraph
structure and number/lettering format to
that of the shell Rulebook, and make
cross-reference changes to shell rules.
The Exchange notes that the proposed
change updates the heading to proposed
Rule 4.1 (current Rule 5.1) from
‘‘Designation of Securities’’ to
‘‘Designation of Underlying Securities’’
which more accurately aligns with the
other rules under current Chapter V
(proposed Section A of Chapter 4); i.e.
the heading to proposed Rule 4.3
(current Rule 5.3) is ‘‘Criteria for
Underlying Securities’’ and to proposed
Rule 4.4 (current Rule 5.4) is
‘‘Withdrawal of Approval of Underlying
Securities’’. Finally, the proposed rule
change removes Rule 5.5.11 and .12
which cover strike intervals for BXM
option series and for Cboe S&P 500
Realized Volatility option series,
respectively, on which the Exchange is
authorized to list options, but on which
the Exchange does not currently, and
does not intend, to list options.3
Because there are currently no options
listed on any of these indexes, the
proposed rule change has no impact on
trading on the Exchange.
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.4 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
3 The Exchange is simultaneously submitting a
similar rule filing regarding current Chapter XXIV
(proposed shell Section B of Chapter 4), governing
index options, which proposes to remove the same
references under current Chapter XXIV.
4 15 U.S.C. 78f(b).
VerDate Sep<11>2014
17:26 Oct 16, 2019
Jkt 250001
5.1 Designation of Securities.
5.2 Rights and Obligations of Holders and Writers.
5.3 Criteria for Underlying Securities.
5.4 Withdrawal of Approval of Underlying Securities.
5.5 Series of Option Contracts Open for Trading.
5.8 Long-Term Equity Option Series (LEAPS).
5.7 Adjustments.
5.5A Select Provisions of Options Listing Procedures Plan.
5.9. Single Stock Dividend Options.
6(b)(5) 5 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) 6 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
As stated, the proposed rule change
makes no substantive changes to the
rules. The proposed rule change is
merely intended to relocate the
Exchange’s rules to the shell Rulebook
and update their numbers, paragraph
structure, including number and
lettering format, and cross-references, as
well as delete references to indexes on
which the Exchange does not list (and
does not intend to list) options, 7 to
conform to the shell Rulebook as a
whole in anticipation of the technology
migration on October 7, 2019. As such,
the proposed rule change is designed to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general to protect
investors and the public interest, by
improving the way the Exchange’s
Rulebook is organized, making it easier
to read, and, particularly, helping
market participants better understand
5 15
U.S.C. 78f(b)(5).
6 Id.
7 See supra note 3. The deletion of these indexes
will conform to the other proposed Sections under
Chapter 4, and thus, the shell Rulebook as a whole.
PO 00000
Frm 00125
Fmt 4703
Sfmt 4703
the rules of the Exchange, which will
also result in less burdensome and more
efficient regulatory compliance.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change is not intended as
a competitive change, but rather, seeks
to make non-substantive rule changes in
relocating the rules and updating crossreferences, as well as references to
certain indexes, to shell rules in
anticipation of the October 7, 2019
technology migration. The Exchange
also does not believe that the proposed
rule change will impose any undue
burden on competition because the
relocated rule text is exactly the same as
the Exchange’s current rules, all of
which have all been previously filed
with the Commission.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 8 and Rule
19b–4(f)(6) thereunder.9 Because the
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
8 15
9 17
E:\FR\FM\17OCN1.SGM
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
17OCN1
Federal Register / Vol. 84, No. 201 / Thursday, October 17, 2019 / Notices
was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change 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 proposed
rule change may become operative
immediately. The Exchange notes that
the proposed rule change is merely
relocating certain rules to its shell
rulebook—which includes
corresponding updates to rule numbers,
cross-references, and other references—
in order to conform these rules to the
shell rulebook upon the technology
migration explained above. The
Exchange believes that the proposed
rule change will make its rules easier to
read and understand for all investors.
The Exchange also asserts that the
relocation of the rules explained above
will not impose any significant burden
on competition as the substance of the
rules remains unchanged. The
Commission agrees that allowing this
proposed rule change to become
operative upon filing in order to
facilitate the Exchange’s technology
migration—without changing the
substance of these Exchange Rules—is
consistent with the protection of
investors and the public interest. For
this reason, the Commission hereby
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
10 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s 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 Commission
has waived that requirement in this case.
12 17 CFR 240.19b–4(f)(6).
13 17 CFR 240.19b–4(f)(6)(iii).
14 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
11 17
VerDate Sep<11>2014
17:26 Oct 16, 2019
Jkt 250001
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
55665
submissions should refer to File
Number SR–CBOE–2019–090, and
should be submitted on or before
November 7, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Jill M. Peterson,
Assistant Secretary.
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:
[FR Doc. 2019–22590 Filed 10–16–19; 8:45 am]
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–2019–090 on the subject line.
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Permit the Listing and
Trading of Shares Under NYSE Arca
Rule 8.600–E of the Overlay Shares
Large Cap Equity ETF, Overlay Shares
Small Cap Equity ETF, Overlay Shares
Foreign Equity ETF, Overlay Shares
Core Bond ETF and Overlay Shares
Municipal Bond ETF
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–2019–090. 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
PO 00000
Frm 00126
Fmt 4703
Sfmt 4703
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87278; File No. SR–
NYSEArca–2019–68]
October 10, 2019.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on
September 27, 2019, NYSE Arca, Inc.
(‘‘NYSE Arca’’ or the ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange. The
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 permit the
listing and trading of shares under
NYSE Arca Rule 8.600–E of the Overlay
Shares Large Cap Equity ETF, Overlay
Shares Small Cap Equity ETF, Overlay
Shares Foreign Equity ETF, Overlay
Shares Core Bond ETF and Overlay
Shares Municipal Bond ETF, each a
series of the Listed Funds Trust,
notwithstanding that the Funds’
investments do not meet the
requirements of Commentary .01(d)(2)
to Rule 8.600–E.
The proposed rule change is available
on the Exchange’s website at
15 17
CFR 200.30–3(a)(12), (59).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
E:\FR\FM\17OCN1.SGM
17OCN1
]]>Agencies
[Federal Register Volume 84, Number 201 (Thursday, October 17, 2019)]
[Notices]
[Pages 55663-55665]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-22590]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87272; File No. SR-CBOE-2019-090]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Relating
To Move the Rules in Chapter V of the Currently Effective Rulebook to
Proposed Section A of Chapter 4 of the Shell Structure for the
Exchange's Rulebook That Will Become Effective Upon the Migration of
the Exchange's Trading Platform
October 10, 2019.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on October 3, 2019, Cboe Exchange, Inc. (the ``Exchange'' or
``Cboe Options'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I,
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 move the Rules in Chapter V of the currently effective Rulebook
(``current Rulebook''), which governs securities dealt in on the
Exchange, to proposed Section A of Chapter 4 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
[[Page 55664]]
will be in place upon completion of the Cboe Options technology
migration.
The Exchange proposes to relocate the rules in Chapter V, which
govern securities dealt in on the Exchange, to proposed Section A of
Chapter 4 in the shell Rulebook. The Exchange notes that in addition to
relocating the rules under current Chapter V to proposed Section A of
Chapter 4 in the shell Rulebook, the proposed rule change deletes the
rules from the current Rulebook. The proposed rule change relocates the
rules as follows:
------------------------------------------------------------------------
Current rule Proposed rule
------------------------------------------------------------------------
4.1 Designation of Underlying Securities.. 5.1 Designation of
Securities.
4.2 Rights and Obligations of Holders and 5.2 Rights and Obligations
Writers. of Holders and Writers.
4.3 Criteria for Underlying Securities.... 5.3 Criteria for Underlying
Securities.
4.4 Withdrawal of Approval of Underlying 5.4 Withdrawal of Approval
Securities. of Underlying Securities.
4.5 Series of Option Contracts Open for 5.5 Series of Option
Trading. Contracts Open for Trading.
4.5(f) (Long-Term Equity Option Series 5.8 Long-Term Equity Option
(LEAPS)). Series (LEAPS).
4.6 Adjustments........................... 5.7 Adjustments.
4.7 Select Provisions of Options Listing 5.5A Select Provisions of
Procedures Plan. Options Listing Procedures
Plan.
4.8 Single Stock Dividend Options......... 5.9. Single Stock Dividend
Options.
------------------------------------------------------------------------
The proposed changes are of a non-substantive nature and will not
amend the relocated rules other than to update their rule numbers,
conform paragraph structure and number/lettering format to that of the
shell Rulebook, and make cross-reference changes to shell rules. The
Exchange notes that the proposed change updates the heading to proposed
Rule 4.1 (current Rule 5.1) from ``Designation of Securities'' to
``Designation of Underlying Securities'' which more accurately aligns
with the other rules under current Chapter V (proposed Section A of
Chapter 4); i.e. the heading to proposed Rule 4.3 (current Rule 5.3) is
``Criteria for Underlying Securities'' and to proposed Rule 4.4
(current Rule 5.4) is ``Withdrawal of Approval of Underlying
Securities''. Finally, the proposed rule change removes Rule 5.5.11 and
.12 which cover strike intervals for BXM option series and for Cboe S&P
500 Realized Volatility option series, respectively, on which the
Exchange is authorized to list options, but on which the Exchange does
not currently, and does not intend, to list options.\3\ Because there
are currently no options listed on any of these indexes, the proposed
rule change has no impact on trading on the Exchange.
---------------------------------------------------------------------------
\3\ The Exchange is simultaneously submitting a similar rule
filing regarding current Chapter XXIV (proposed shell Section B of
Chapter 4), governing index options, which proposes to remove the
same references under current Chapter XXIV.
---------------------------------------------------------------------------
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.\4\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \5\ 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) \6\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
\6\ Id.
---------------------------------------------------------------------------
As stated, the proposed rule change makes no substantive changes to
the rules. The proposed rule change is merely intended to relocate the
Exchange's rules to the shell Rulebook and update their numbers,
paragraph structure, including number and lettering format, and cross-
references, as well as delete references to indexes on which the
Exchange does not list (and does not intend to list) options, \7\ to
conform to the shell Rulebook as a whole in anticipation of the
technology migration on October 7, 2019. As such, the proposed rule
change is designed to promote just and equitable principles of trade,
to remove impediments to and perfect the mechanism of a free and open
market and a national market system, and, in general to protect
investors and the public interest, by improving the way the Exchange's
Rulebook is organized, making it easier to read, and, particularly,
helping market participants better understand the rules of the
Exchange, which will also result in less burdensome and more efficient
regulatory compliance.
---------------------------------------------------------------------------
\7\ See supra note 3. The deletion of these indexes will conform
to the other proposed Sections under Chapter 4, and thus, the shell
Rulebook as a whole.
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. The proposed rule change is not
intended as a competitive change, but rather, seeks to make non-
substantive rule changes in relocating the rules and updating cross-
references, as well as references to certain indexes, to shell rules in
anticipation of the October 7, 2019 technology migration. The Exchange
also does not believe that the proposed rule change will impose any
undue burden on competition because the relocated rule text is exactly
the same as the Exchange's current rules, all of which have all been
previously filed with the Commission.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \8\ and Rule 19b-4(f)(6) thereunder.\9\
Because the 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
[[Page 55665]]
was filed, or such shorter time as the Commission may designate, if
consistent with the protection of investors and the public interest,
the proposed rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\9\ 17 CFR 240.19b-4(f)(6).
\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 the Exchange to give the Commission written notice of the
Exchange's 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
Commission has waived that requirement in this case.
---------------------------------------------------------------------------
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 proposed
rule change may become operative immediately. The Exchange notes that
the proposed rule change is merely relocating certain rules to its
shell rulebook--which includes corresponding updates to rule numbers,
cross-references, and other references--in order to conform these rules
to the shell rulebook upon the technology migration explained above.
The Exchange believes that the proposed rule change will make its rules
easier to read and understand for all investors. The Exchange also
asserts that the relocation of the rules explained above will not
impose any significant burden on competition as the substance of the
rules remains unchanged. The Commission agrees that allowing this
proposed rule change to become operative upon filing in order to
facilitate the Exchange's technology migration--without changing the
substance of these Exchange Rules--is consistent with the protection of
investors and the public interest. For this reason, the Commission
hereby waives the 30-day operative delay and designates the proposal
operative upon filing.\14\
---------------------------------------------------------------------------
\12\ 17 CFR 240.19b-4(f)(6).
\13\ 17 CFR 240.19b-4(f)(6)(iii).
\14\ For purposes only of waiving the 30-day operative delay,
the Commission has 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. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-CBOE-2019-090 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-2019-090. 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-2019-090, and should be submitted
on or before November 7, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------
\15\ 17 CFR 200.30-3(a)(12), (59).
---------------------------------------------------------------------------
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-22590 Filed 10-16-19; 8:45 am]
BILLING CODE 8011-01-P
