Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Nonstandard Expirations Pilot Program, 61108-61110 [2019-24505]
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Federal Register / Vol. 84, No. 218 / Tuesday, November 12, 2019 / Notices
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to the File Number SR–
FINRA–2019–022 and should be
submitted on or before December 3,
2019.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
VI. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act 21 that the
proposed rule change, as modified by
Partial Amendment No. 1 (SR–FINRA–
2019–022) be, and it hereby is, approved
on an accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–24494 Filed 11–8–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87462; File No. SR–CBOE–
2019–104]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Extend the
Nonstandard Expirations Pilot
Program
November 5, 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
31, 2019, Cboe Exchange, Inc. (the
Exchange’’ or ‘‘Cboe Options’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange. The
Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of
the Act 3 and Rule 19b–4(f)(6)
thereunder.4 The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
21 Id.
22 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
1 15
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Cboe Exchange, Inc. (the ‘‘Exchange’’
or ‘‘Cboe Options’’) proposes to renew
an existing pilot program until May 4,
2020. The text of the proposed rule
change is provided below.
(additions are italicized; deletions are
[bracketed])
*
*
*
*
*
Rules of Cboe Exchange, Inc.
*
*
*
Rule 4.13.
*
*
Series of Index Options
(a)–(d) No change.
(e) Nonstandard Expirations Pilot
Program.
(1)–(2) No change.
(3) Duration of Nonstandard
Expirations Pilot Program. The
Nonstandard Expirations Pilot Program
shall be through [November 4, 2019]
May 4, 2020.
*
*
*
*
*
The text of the proposed rule change
is also available on the Exchange’s
website (https://www.cboe.com/
AboutCBOE/
CBOELegalRegulatoryHome.aspx), at
the Exchange’s Office of the Secretary,
and at the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
On September 14, 2010, the Securities
and Exchange Commission (the
‘‘Commission’’) approved a Cboe
Options proposal to establish a pilot
program under which the Exchange is
permitted to list P.M.-settled options on
broad-based indexes to expire on (a) any
Friday of the month, other than the
third Friday-of-the-month, and (b) the
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last trading day of the month.5 On
January 14, 2016, the Commission
approved a Cboe Options proposal to
expand the pilot program to allow P.M.settled options on broad-based indexes
to expire on any Wednesday of month,
other than those that coincide with an
EOM.6 On August 10, 2016, the
Commission approved a Cboe Options
proposal to expand the pilot program to
allow P.M.-settled options on broadbased indexes to expire on any Monday
of month, other than those that coincide
with an EOM.7 Under the terms of the
Nonstandard Expirations Pilot Program
(‘‘Program’’), Weekly Expirations and
EOMs are permitted on any broad-based
index that is eligible for regular options
trading. Weekly Expirations and EOMs
are cash-settled and have Europeanstyle exercise. The proposal became
effective on a pilot basis for a period of
fourteen months that commenced on the
next full month after approval was
received to establish the Program 8 and
was subsequently extended.9 Pursuant
to Rule 4.13(e)(3),10 the Program is
scheduled to expire on November 4,
2019. The Exchange believes that the
Program has been successful and well
received by its Trading Permit Holders
and the investing public during that the
time that it has been in operation. The
5 See Securities Exchange Act Release 62911
(September 14, 2010), 75 FR 57539 (September 21,
2010) (order approving SR–CBOE–2009–075).
6 See Securities Exchange Act Release 76909
(January 14, 2016), 81 FR 3512 (January 21, 2016)
(order approving SR–CBOE–2015–106).
7 See Securities Exchange Act Release 78531
(August 10, 2016), 81 FR 54643 (August 16, 2016)
(order approving SR–CBOE–2016–046).
8 Id.
9 See Securities Exchange Act Release 65741
(November 14, 2011), 76 FR 72016 (November 21,
2011) (immediately effective rule change extending
the Program through February 14, 2013). See also
Securities Exchange Act Release 68933 (February
14, 2013), 78 FR 12374 (February 22, 2013)
(immediately effective rule change extending the
Program through April 14, 2014); 71836 (April 1,
2014), 79 FR 19139 (April 7, 2014) (immediately
effective rule change extending the Program
through November 3, 2014); 73422 (October 24,
2014), 79 FR 64640 (October 30, 2014) (immediately
effective rule change extending the Program
through May 3, 2016); 76909 (January 14, 2016), 81
FR 3512 (January 21, 2016) (extending the Program
through May 3, 2017); 80387 (April 6, 2017), 82 FR
17706 (April 12, 2017) (extending the Program
through May 3, 2018); 83165 (May 3, 2018), 83 FR
21316 (May 9, 2018) (SR–CBOE–2018–038)
(extending the Program through November 5, 2018);
84534 (November 5, 2019 [sic]), 83 FR 56119
(November 9, 2018) (SR–CBOE–2018–070)
(extending the Program through May 6, 2019); and
85650 (April 15, 2019), 84 FR 16552 (April 19,
2019) (SR–CBOE–2019–022) (extending the
Program through November 4, 2019).
10 The Exchange recently relocated prior Rule
24.9, containing the provision which governs the
Program, to current Rule 4.13. See SR–CBOE–2019–
092 (October 4, 2019), which did not make any
substantive changes to prior Rule 24.9 and merely
relocated it to Rule 4.13.
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Federal Register / Vol. 84, No. 218 / Tuesday, November 12, 2019 / Notices
Exchange hereby proposes to extend the
Program until May 4, 2020. This
proposal does not request any other
changes to the Program.
Pursuant to the order approving the
establishment of the Program, two
months prior to the conclusion of the
pilot period, Cboe Options is required to
submit an annual report to the
Commission, which addresses the
following areas: Analysis of Volume &
Open Interest, Monthly Analysis of
Weekly Expirations & EOM Trading
Patterns and Provisional Analysis of
Index Price Volatility. The Exchange has
submitted, under separate cover, the
annual report in connection with the
present proposed rule change.
Additionally, the Exchange will provide
the Commission with any additional
data or analyses the Commission
requests because it deems such data or
analyses necessary to determine
whether the Program is consistent with
the Exchange Act. The Exchange is in
the process of making public all data
and analyses previously submitted to
the Commission under the Program, and
will make public any data and analyses
it makes to the Commission under the
Program in the future.
If, in the future, the Exchange
proposes an additional extension of the
Program, or should the Exchange
propose to make the Program permanent
(which the Exchange currently intends
to do), the Exchange will submit an
annual report (addressing the same
areas referenced above and consistent
with the order approving the
establishment of the Program) to the
Commission at least two months prior to
the expiration date of the Program. The
Exchange will also make this report
public. Any positions established under
the Program will not be impacted by the
expiration of the Program.
The Exchange believes there is
sufficient investor interest and demand
in the Program to warrant its extension.
The Exchange believes that the Program
has provided investors with additional
means of managing their risk exposures
and carrying out their investment
objectives. Furthermore, the Exchange
has not experienced any adverse market
effects with respect to the Program.
The Exchange believes that the
proposed extension of the Program will
not have an adverse impact on capacity.
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
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Section 6(b) of the Act.11 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 12 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 facilitation 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) 13 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
In particular, the Exchange believes
that the Program has been successful to
date and states that it has not
encountered any problems with the
Program. The proposed rule change
allows for an extension of the Program
for the benefit of market participants.
Additionally, the Exchange believes that
there is demand for the expirations
offered under the Program and believes
that that Weekly Expirations and EOMs
will continue to provide the investing
public and other market participants
increased opportunities to better
manage their risk exposure.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
Cboe Options does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. Specifically,
the Exchange believes that, by extending
the expiration of the Program, the
proposed rule change will allow for
further analysis of the Program and a
determination of how the Program shall
be structured in the future. In doing so,
the proposed rule change will also serve
to promote regulatory clarity and
consistency, thereby reducing burdens
on the marketplace and facilitating
investor protection.
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.
11 15
12 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
13 Id.
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61109
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
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 was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 14 and
subparagraph (f)(6) of Rule 19b–4
thereunder.15
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 16 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 17
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has asked
the Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Exchange states that waiver
of the 30-day operative delay will allow
it to extend the Pilot Program prior to
its expiration on November 4, 2019, and
maintain the status quo, thereby
reducing market disruption. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest as it will allow the pilot
program to continue uninterrupted,
thereby avoiding investor confusion that
could result from a temporary
interruption in the pilot program.
Accordingly, the Commission hereby
waives the operative delay and
designates the proposed rule change
operative upon filing.18
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
14 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule19b–
4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its intent to
file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
16 17 CFR 240.19b–4(f)(6).
17 17 CFR 240.19b–4(f)(6)(iii).
18 For purposes only of waiving the 30-day
operative delay, the Commission also has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
15 17
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Federal Register / Vol. 84, No. 218 / Tuesday, November 12, 2019 / Notices
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
should be submitted on or before
December 3, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Jill M. Peterson,
Assistant Secretary.
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. 2019–24505 Filed 11–8–19; 8:45 am]
Electronic Comments
[Release No. 34–87460; File No. SR–
CboeEDGX–2019–066]
• 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–2019–104 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–2019–104. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–CBOE–2019–104 and
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BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Self-Regulatory Organizations; Cboe
EDGX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Adopt Fees
for a New Data Product on its Equity
Options Platform (‘‘EDGX Options’’) To
Be Known as Open-Close Data
November 5, 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
29, 2019, Cboe EDGX Exchange, Inc.
(the ‘‘Exchange’’ or ‘‘EDGX’’) 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 EDGX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGX Options’’) is
filing with the Securities and Exchange
Commission (‘‘Commission’’) a
proposed rule change to adopt fees for
a new data product on its equity options
platform (‘‘EDGX Options’’) to be known
as Open-Close Data. 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://markets.cboe.com/us/
options/regulation/rule_filings/edgx/),
at the Exchange’s Office of the
Secretary, and at the Commission’s
Public Reference Room.
19 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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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
The Exchange proposes to adopt fees
for a new data product on EDGX
Options known as Open-Close Data,
which is available for purchase to EDGX
Options Members and Non-Members.3
Cboe LiveVol, LLC (‘‘LiveVol’’), a
wholly owned subsidiary of the
Exchange’s parent company, Cboe
Global Markets, Inc., will make the
Open-Close Data available for purchase
to Members and Non-Members on the
LiveVol DataShop website
(datashop.cboe.com). The Exchange
proposes to amend its Fee Schedule to
adopt fees for the product.4
The Exchange recently introduced the
Open-Close Data product. Open-Close
Data is a volume summary file for
trading activity on EDGX Options. The
Exchange notes it is proprietary EDGX
Options trade data and does not include
trade data from any other exchanges. It
is also a historical data product and not
a real time data feed. The Open-Close
Data summarizes and buckets the
volume by origin (customer,
professional customer, broker-dealer,
and market maker), buying/selling, and
opening/closing criteria. The customer
and professional customer volume is
further broken down into trade size
buckets (less than 100 contracts, 100–
199 contracts, greater than 199
contracts). The data currently goes back
to January 2018 and contains all series
in an underlying security if it has
3 See Securities Exchange Act Release No. 86806
(August 29, 2019), 84 FR 46767 (September 5, 2019)
(SR–CboeEDGX–2019–054).
4 The Exchange initially filed the proposed fees
on business date August 30, 2019 (SR–CboeEDGX–
2019–055). On business date October 29, 2019, the
Exchange withdrew that filing and submitted this
filing.
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]]>Agencies
[Federal Register Volume 84, Number 218 (Tuesday, November 12, 2019)]
[Notices]
[Pages 61108-61110]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-24505]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87462; File No. SR-CBOE-2019-104]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Extend
the Nonstandard Expirations Pilot Program
November 5, 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 31, 2019, Cboe Exchange, Inc. (the Exchange'' or ``Cboe
Options'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the Exchange. The Exchange
filed the proposal as a ``non-controversial'' proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-
4(f)(6) thereunder.\4\ The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes
to renew an existing pilot program until May 4, 2020. The text of the
proposed rule change is provided below.
(additions are italicized; deletions are [bracketed])
* * * * *
Rules of Cboe Exchange, Inc.
* * * * *
Rule 4.13. Series of Index Options
(a)-(d) No change.
(e) Nonstandard Expirations Pilot Program.
(1)-(2) No change.
(3) Duration of Nonstandard Expirations Pilot Program. The
Nonstandard Expirations Pilot Program shall be through [November 4,
2019] May 4, 2020.
* * * * *
The text of the proposed rule change is also available on the
Exchange's website (https://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the
Secretary, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
On September 14, 2010, the Securities and Exchange Commission (the
``Commission'') approved a Cboe Options proposal to establish a pilot
program under which the Exchange is permitted to list P.M.-settled
options on broad-based indexes to expire on (a) any Friday of the
month, other than the third Friday-of-the-month, and (b) the last
trading day of the month.\5\ On January 14, 2016, the Commission
approved a Cboe Options proposal to expand the pilot program to allow
P.M.-settled options on broad-based indexes to expire on any Wednesday
of month, other than those that coincide with an EOM.\6\ On August 10,
2016, the Commission approved a Cboe Options proposal to expand the
pilot program to allow P.M.-settled options on broad-based indexes to
expire on any Monday of month, other than those that coincide with an
EOM.\7\ Under the terms of the Nonstandard Expirations Pilot Program
(``Program''), Weekly Expirations and EOMs are permitted on any broad-
based index that is eligible for regular options trading. Weekly
Expirations and EOMs are cash-settled and have European-style exercise.
The proposal became effective on a pilot basis for a period of fourteen
months that commenced on the next full month after approval was
received to establish the Program \8\ and was subsequently extended.\9\
Pursuant to Rule 4.13(e)(3),\10\ the Program is scheduled to expire on
November 4, 2019. The Exchange believes that the Program has been
successful and well received by its Trading Permit Holders and the
investing public during that the time that it has been in operation.
The
[[Page 61109]]
Exchange hereby proposes to extend the Program until May 4, 2020. This
proposal does not request any other changes to the Program.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release 62911 (September 14,
2010), 75 FR 57539 (September 21, 2010) (order approving SR-CBOE-
2009-075).
\6\ See Securities Exchange Act Release 76909 (January 14,
2016), 81 FR 3512 (January 21, 2016) (order approving SR-CBOE-2015-
106).
\7\ See Securities Exchange Act Release 78531 (August 10, 2016),
81 FR 54643 (August 16, 2016) (order approving SR-CBOE-2016-046).
\8\ Id.
\9\ See Securities Exchange Act Release 65741 (November 14,
2011), 76 FR 72016 (November 21, 2011) (immediately effective rule
change extending the Program through February 14, 2013). See also
Securities Exchange Act Release 68933 (February 14, 2013), 78 FR
12374 (February 22, 2013) (immediately effective rule change
extending the Program through April 14, 2014); 71836 (April 1,
2014), 79 FR 19139 (April 7, 2014) (immediately effective rule
change extending the Program through November 3, 2014); 73422
(October 24, 2014), 79 FR 64640 (October 30, 2014) (immediately
effective rule change extending the Program through May 3, 2016);
76909 (January 14, 2016), 81 FR 3512 (January 21, 2016) (extending
the Program through May 3, 2017); 80387 (April 6, 2017), 82 FR 17706
(April 12, 2017) (extending the Program through May 3, 2018); 83165
(May 3, 2018), 83 FR 21316 (May 9, 2018) (SR-CBOE-2018-038)
(extending the Program through November 5, 2018); 84534 (November 5,
2019 [sic]), 83 FR 56119 (November 9, 2018) (SR-CBOE-2018-070)
(extending the Program through May 6, 2019); and 85650 (April 15,
2019), 84 FR 16552 (April 19, 2019) (SR-CBOE-2019-022) (extending
the Program through November 4, 2019).
\10\ The Exchange recently relocated prior Rule 24.9, containing
the provision which governs the Program, to current Rule 4.13. See
SR-CBOE-2019-092 (October 4, 2019), which did not make any
substantive changes to prior Rule 24.9 and merely relocated it to
Rule 4.13.
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Pursuant to the order approving the establishment of the Program,
two months prior to the conclusion of the pilot period, Cboe Options is
required to submit an annual report to the Commission, which addresses
the following areas: Analysis of Volume & Open Interest, Monthly
Analysis of Weekly Expirations & EOM Trading Patterns and Provisional
Analysis of Index Price Volatility. The Exchange has submitted, under
separate cover, the annual report in connection with the present
proposed rule change. Additionally, the Exchange will provide the
Commission with any additional data or analyses the Commission requests
because it deems such data or analyses necessary to determine whether
the Program is consistent with the Exchange Act. The Exchange is in the
process of making public all data and analyses previously submitted to
the Commission under the Program, and will make public any data and
analyses it makes to the Commission under the Program in the future.
If, in the future, the Exchange proposes an additional extension of
the Program, or should the Exchange propose to make the Program
permanent (which the Exchange currently intends to do), the Exchange
will submit an annual report (addressing the same areas referenced
above and consistent with the order approving the establishment of the
Program) to the Commission at least two months prior to the expiration
date of the Program. The Exchange will also make this report public.
Any positions established under the Program will not be impacted by the
expiration of the Program.
The Exchange believes there is sufficient investor interest and
demand in the Program to warrant its extension. The Exchange believes
that the Program has provided investors with additional means of
managing their risk exposures and carrying out their investment
objectives. Furthermore, the Exchange has not experienced any adverse
market effects with respect to the Program.
The Exchange believes that the proposed extension of the Program
will not have an adverse impact on capacity.
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.\11\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \12\ 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 facilitation
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) \13\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(5).
\13\ Id.
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In particular, the Exchange believes that the Program has been
successful to date and states that it has not encountered any problems
with the Program. The proposed rule change allows for an extension of
the Program for the benefit of market participants. Additionally, the
Exchange believes that there is demand for the expirations offered
under the Program and believes that that Weekly Expirations and EOMs
will continue to provide the investing public and other market
participants increased opportunities to better manage their risk
exposure.
B. Self-Regulatory Organization's Statement on Burden on Competition
Cboe Options does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. Specifically, the Exchange
believes that, by extending the expiration of the Program, the proposed
rule change will allow for further analysis of the Program and a
determination of how the Program shall be structured in the future. In
doing so, the proposed rule change will also serve to promote
regulatory clarity and consistency, thereby reducing burdens on the
marketplace and facilitating investor protection.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change does not: (i) Significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate, it has become effective pursuant to Section
19(b)(3)(A) of the Act \14\ and subparagraph (f)(6) of Rule 19b-4
thereunder.\15\
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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f)(6). In addition, Rule19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \16\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \17\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has asked the Commission to waive the 30-day operative delay so that
the proposal may become operative immediately upon filing. The Exchange
states that waiver of the 30-day operative delay will allow it to
extend the Pilot Program prior to its expiration on November 4, 2019,
and maintain the status quo, thereby reducing market disruption. The
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest as
it will allow the pilot program to continue uninterrupted, thereby
avoiding investor confusion that could result from a temporary
interruption in the pilot program. Accordingly, the Commission hereby
waives the operative delay and designates the proposed rule change
operative upon filing.\18\
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\16\ 17 CFR 240.19b-4(f)(6).
\17\ 17 CFR 240.19b-4(f)(6)(iii).
\18\ For purposes only of waiving the 30-day operative delay,
the Commission also has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of
[[Page 61110]]
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-2019-104 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-2019-104. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-CBOE-2019-104 and should be submitted on
or before December 3, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-24505 Filed 11-8-19; 8:45 am]
BILLING CODE 8011-01-P
