Sunshine Act Meetings, 15002-15003 [2020-05502]
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Federal Register / Vol. 85, No. 51 / Monday, March 16, 2020 / Notices
market participants that takes into
account their transaction volume. As
such, in ICE Clear Europe’s view, the
amendments are consistent with the
equitable allocation of reasonable dues,
fees and other charges among its
Clearing Members and other market
participants, within the meaning of
Section 17A(b)(3)(D) of the Act,7 and
further do not unfairly discriminate
among such participants in their use of
the Clearing House, within the meaning
of Section 17A(b)(3)(F) of the Act.8
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
ICE Clear Europe does not believe the
proposed rule changes would have any
impact, or impose any burden, on
competition not necessary or
appropriate in furtherance of the
purpose of the Act. As discussed above,
because fees are imposed on a per
transaction basis at the product level,
the fee caps are applied equally to all
those market participants who trade
and/or clear the Contracts. Although the
amendments may result in higher fees
for particular Clearing Members because
of the higher fee caps, ICE Clear Europe
believes that the new fee caps would be
set at an appropriate level to better
reflect the cost that the Clearing House
takes on by facilitating the relevant
clearing services. Any such higher fees
will also more closely reflect the volume
traded. ICE Clear Europe does not
believe that the amendments would
adversely affect the ability of such
Clearing Members or other market
participants generally to access clearing
services for the Contracts. Further, since
the revised fee caps will apply to all
Clearing Members, ICE Clear Europe
believes that the amendments would not
otherwise affect competition among
Clearing Members, adversely affect the
market for clearing services or limit
market participants’ choices for
obtaining clearing services.
(C) Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
lotter on DSKBCFDHB2PROD with NOTICES
Written comments relating to the
proposed changes to the rules have not
been solicited or received. ICE Clear
Europe will notify the Commission of
any written comments received by ICE
Clear Europe.
7 15 U.S.C. 78q–1(b)(3)(D). Under this provision,
‘‘[a] clearing agency shall not be registered unless
the Commission determines that—(D) The rules of
the clearing agency provide for the equitable
allocation of reasonable dues, fees, and other
charges among its participants.’’
8 15 U.S.C. 78q–1(b)(3)(F).
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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) 9 of the Act and paragraph (f)
of Rule 19b–4 10 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.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change, security-based swap submission
or advance notice 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–
ICEEU–2020–001 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–ICEEU–2020–001. 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
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
10 17
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10:00 a.m. and 3:00 p.m. Copies of such
filings will also be available for
inspection and copying at the principal
office of ICE Clear Europe and on ICE
Clear Europe’s website at https://
www.theice.com/notices/
Notices.shtml?regulatoryFilings.
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–ICEEU–2020–001
and should be submitted on or before
April 6, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–05241 Filed 3–13–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meetings
2:00 p.m. on Wednesday,
March 18, 2020.
PLACE: The meeting will be held at the
Commission’s headquarters, 100 F
Street NE, Washington, DC 20549.
STATUS: This meeting will be closed to
the public.
MATTERS TO BE CONSIDERED:
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the closed meeting. Certain
staff members who have an interest in
the matters also may be present.
In the event that the time, date, or
location of this meeting changes, an
announcement of the change, along with
the new time, date, and/or place of the
meeting will be posted on the
Commission’s website at https://
www.sec.gov.
The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B)
and (10) and 17 CFR 200.402(a)(3),
(a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and
(a)(10), permit consideration of the
scheduled matters at the closed meeting.
The subject matters of the closed
meeting will consist of the following
topics:
TIME AND DATE:
11 17
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CFR 200.30–3(a)(12).
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Federal Register / Vol. 85, No. 51 / Monday, March 16, 2020 / Notices
Institution and settlement of injunctive
actions;
Institution and settlement of administrative
proceedings;
Resolution of litigation claims; and
Other matters relating to enforcement
proceedings.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting agenda items that
may consist of adjudicatory,
examination, litigation, or regulatory
matters.
CONTACT PERSON FOR MORE INFORMATION:
For further information; please contact
Vanessa A. Countryman from the Office
of the Secretary at (202) 551–5400.
Dated: March 11, 2020.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2020–05502 Filed 3–12–20; 4:15 pm]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–88350; File No. SR–CBOE–
2020–015]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing of a
Proposed Rule Change To Increase
Position Limits for Options on Certain
Exchange-Traded Funds (‘‘ETFs’’) and
Indexes
March 10, 2020.
lotter on DSKBCFDHB2PROD with NOTICES
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 February
26, 2020, Cboe Exchange, Inc. (the
‘‘Exchange’’ or ‘‘Cboe Options’’) filed
with the Securities and Exchange
Commission (‘‘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 increase
position limits for options on certain
exchange-traded funds (‘‘ETFs’’) and
indexes. 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/
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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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
BILLING CODE 8011–01–P
1 15
CBOELegalRegulatoryHome.aspx), at
the Exchange’s Office of the Secretary,
and at the Commission’s Public
Reference Room.
1. Purpose
Position limits are designed to
address potential manipulative schemes
and adverse market impacts
surrounding the use of options, such as
disrupting the market in the security
underlying the options. While position
limits should address and discourage
the potential for manipulative schemes
and adverse market impact, if such
limits are set too low, participation in
the options market may be discouraged.
The Exchange believes that position
limits must therefore be balanced
between mitigating concerns of any
potential manipulation and the cost of
inhibiting potential hedging activity that
could be used for legitimate economic
purposes.
The Exchange has observed an
ongoing increase in demand in options
on (1) the Standard and Poor’s
Depositary Receipts Trust (‘‘SPY’’),
iShares MSCI EAFE ETF (‘‘EFA’’),
iShares China Large-Cap ETF (‘‘FXI’’),
iShares iBoxx High Yield Corporate
Bond Fund (‘‘HYG’’), Financial Select
Sector SPDR Fund (‘‘XLF’’), Market
Vectors Oil Services ETF (‘‘OIH’’,
collectively, with the aforementioned
ETFs, the ‘‘Underlying ETFs’’), and (2)
the MSCI Emerging Markets Index
(‘‘MXEF’’) and the MSCI EAFE Index
(‘‘MXEA’’, collectively, with MXEF, the
‘‘Underlying Indexes’’) for both trading
and hedging purposes. Though the
demand for these options appears to
have increased, position limits for
options on the Underlying ETFs and
Indexes have remained the same. The
Exchange believes these unchanged
position limits may have impeded, and
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15003
may continue to impede, trading
activity and strategies of investors, such
as use of effective hedging vehicles or
income generating strategies (e.g., buywrite or put-write), and the ability of
Market-Makers to make liquid markets
with tighter spreads in these options
resulting in the transfer of volume to
over-the-counter (‘‘OTC’’) markets. OTC
transactions occur through bilateral
agreements, the terms of which are not
publicly disclosed to the marketplace.
As such, OTC transactions do not
contribute to the price discovery process
on a public exchange or other lit
markets. Therefore, the Exchange
believes that the proposed increases in
position limits for options on the
Underlying ETFs and Indexes may
enable liquidity providers to provide
additional liquidity to the Exchange and
other market participants to transfer
their liquidity demands from OTC
markets to the Exchange, as well as
other options exchange on which they
participate.3 As described in further
detail below, the Exchange believes that
the continuously increasing market
capitalization of the Underlying ETFs,
ETF component securities, and
component securities of the Underlying
Indexes, as well as the highly liquid
markets for those securities, reduces the
concerns for potential market
manipulation and/or disruption in the
underlying markets upon increasing
position limits, while the rising demand
for trading options on the Underlying
ETFs and Indexes for legitimate
economic purposes compels an increase
in position limits.
Proposed Position Limits for Options on
the Underlying ETFs
Position limits for options on ETFs
are determined pursuant to Rule 8.30,
and vary according to the number of
outstanding shares and the trading
volumes of the underlying stocks or
ETFs over the past six months. Pursuant
to Exchange Rule 8.30, the largest in
capitalization and the most frequently
traded stocks and ETFs have an option
position limit of 250,000 contracts (with
adjustments for splits, re-capitalizations,
etc.) on the same side of the market; and
smaller capitalization stocks and ETFs
have position limits of 200,000, 75,000,
50,000 or 25,000 contracts (with
adjustments for splits, re-capitalizations,
etc.) on the same side of the market.
Options on HYG, XLF, and OIH are
currently subject to the standard
position limit of 250,000 contracts as set
3 The Exchange understands that other options
exchanges intend to file similar proposed rule
changes with the Commission to increase position
limits under their rules for the same options.
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Agencies
[Federal Register Volume 85, Number 51 (Monday, March 16, 2020)]
[Notices]
[Pages 15002-15003]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-05502]
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SECURITIES AND EXCHANGE COMMISSION
Sunshine Act Meetings
TIME AND DATE: 2:00 p.m. on Wednesday, March 18, 2020.
PLACE: The meeting will be held at the Commission's headquarters, 100 F
Street NE, Washington, DC 20549.
STATUS: This meeting will be closed to the public.
MATTERS TO BE CONSIDERED: Commissioners, Counsel to the Commissioners,
the Secretary to the Commission, and recording secretaries will attend
the closed meeting. Certain staff members who have an interest in the
matters also may be present.
In the event that the time, date, or location of this meeting
changes, an announcement of the change, along with the new time, date,
and/or place of the meeting will be posted on the Commission's website
at https://www.sec.gov.
The General Counsel of the Commission, or his designee, has
certified that, in his opinion, one or more of the exemptions set forth
in 5 U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B) and (10) and 17 CFR
200.402(a)(3), (a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and (a)(10),
permit consideration of the scheduled matters at the closed meeting.
The subject matters of the closed meeting will consist of the
following topics:
[[Page 15003]]
Institution and settlement of injunctive actions;
Institution and settlement of administrative proceedings;
Resolution of litigation claims; and
Other matters relating to enforcement proceedings.
At times, changes in Commission priorities require alterations in
the scheduling of meeting agenda items that may consist of
adjudicatory, examination, litigation, or regulatory matters.
CONTACT PERSON FOR MORE INFORMATION: For further information; please
contact Vanessa A. Countryman from the Office of the Secretary at (202)
551-5400.
Dated: March 11, 2020.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2020-05502 Filed 3-12-20; 4:15 pm]
BILLING CODE 8011-01-P