Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating To Amend Its Fees Schedule, 28669-28671 [2020-10217]
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Federal Register / Vol. 85, No. 93 / Wednesday, May 13, 2020 / Notices
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
estimates of the burden of the proposed
collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information to be collected; and
(d) ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days of this
publication.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
Please direct your written comments
to: David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Cynthia
Roscoe, 100 F Street NE, Washington DC
20549, or send an email to: PRA_
Mailbox@sec.gov.
Dated: May 8, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–10275 Filed 5–12–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[OMB Control No. 3235–0310, SEC File No.
270–275]
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
jbell on DSKJLSW7X2PROD with NOTICES
Extension:
Rule 22d–1
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(‘‘Paperwork Reduction Act’’) (44 U.S.C.
3501–3520), the Securities and
Exchange Commission (the
‘‘Commission’’) is soliciting comments
on the collections of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
Rule 22d–1 under the Investment
Company Act of 1940 (the ‘‘1940 Act’’)
(17 CFR 270.22d–1) provides registered
investment companies that issue
redeemable securities (‘‘funds’’) an
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exemption from section 22(d) of the
1940 Act (15 U.S.C. 80a–22(d)) to the
extent necessary to permit scheduled
variations in or elimination of the sales
load on fund securities for particular
classes of investors or transactions,
provided certain conditions are met.
The rule imposes an annual burden per
series of a fund of approximately 15
minutes, so that the total annual burden
for the approximately 4,098 series of
funds that might rely on the rule is
estimated to be 1024.5 hours.
The estimate of average burden hours
is made solely for the purposes of the
Paperwork Reduction Act. The estimate
is based on communications with
industry representatives, and is not
derived from a comprehensive or even
a representative survey or study.
Responses will not be kept confidential.
An agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless it
displays a currently valid OMB control
number.
Written comments are invited on: (a)
Whether the collection of information is
necessary for the proper performance of
the functions of the Commission,
including whether the information has
practical utility; (b) the accuracy of the
Commission’s estimate of the burden(s)
of the collection of information; (c) ways
to enhance the quality, utility, and
clarity of the information collected; and
(d) ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days of this
publication.
Please direct your written comments
to David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, C/O Cynthia
Roscoe, 100 F Street NE, Washington,
DC 20549; or send an email to: PRA_
Mailbox@sec.gov.
Dated: May 8, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–10277 Filed 5–12–20; 8:45 am]
BILLING CODE 8011–01–P
PO 00000
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–88836; File No. SR–CBOE–
2020–044]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Relating To Amend Its
Fees Schedule
May 7, 2020.
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 May 1,
2020, 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 the Substance
of the Proposed Rule Change
Cboe Exchange, Inc. (the ‘‘Exchange’’
or ‘‘Cboe Options’’) proposes to amend
its fees schedule. 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.
1 15
2 17
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 85, No. 93 / Wednesday, May 13, 2020 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend its
Fees Schedule, effective May 1, 2020.
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Compression Transaction
The Exchange first proposes to amend
its Fees Schedule with respect to
compression transactions. By way of
background, the Exchange currently
waives transaction fees (and applicable
surcharges) incurred as a result of
transactions that compress or reduce
certain open positions in SPX and
SPXW.3 The Exchange adopted fee and
surcharge waivers as compression of
these positions would improve market
liquidity by freeing capital currently
tied up in positions for which there is
a minimal chance that a significant loss
would occur. In order to receive a
waiver of transaction fees, a TPH must
mark its orders in a form and manner
determined by the Exchange to identify
them as eligible for the compression
rebates.4 As these orders are not subject
to any transaction fees or surcharges, the
Exchange wishes to also exclude such
volume from any volume thresholds
calculated by the Exchange. More
specifically, the Exchange proposes to
not count SPX and SPXW orders
marked as compression towards any
volume thresholds for the following
programs: (1) SPX Liquidity Provider
Sliding Scale, (2) Clearing Trading
Permit Holder Proprietary Products
Sliding Scale, (3) Select Customer
Options Reduction (‘‘SCORe’’) Program,
(4) SPX/SPXW Market-Maker Tier
Appointment Fees, (5) SPX/SPXW Floor
Broker Trading Surcharge, (6) Floor
Broker ADV Discount, (7) Floor
Brokerage Fees Discount, and (8)
Frequent Trader Program. The Exchange
proposes to amend Footnotes 12 and 41
to make clear that identified
compression transactions (i.e., those
properly marked in a manner and form
determined by the Exchange) shall not
count towards any volume threshold.5
Registration Fees
The Exchange next proposes to add
clarifying language to Footnote 12 of the
Fees Schedule, which governs pricing
changes in the event the Exchange
trading floor becomes inoperable. In the
event the trading floor becomes
3 See CBOE Fees Schedule, Footnote 41 and
Footnote 12.
4 Id.
5 The Exchange proposes to also append
Footnotes 12 and 41 to affected programs, as
applicable.
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inoperable, the Exchange will continue
to operate in a screen-based only
environment using a floorless
configuration of the System that is
operational while the trading floor
facility is inoperable. The Exchange
would operate using that configuration
only until the Exchange’s trading floor
facility became operational. Open
outcry trading would not be available in
the event the trading floor becomes
inoperable. Particularly, the Exchange
proposes to amend Footnote 12 to
clarify that certain registration fees are
not applicable when the trading floor is
inoperable.
First, by way of background, every
TPH organization must designate an
individual nominee to represent the
organization with respect to each Floor
Broker Trading Permit or Market-Maker
Floor Trading Permit in all matters
relating to the Exchange.6 An ‘‘inactive
nominee’’ of a TPH organization is an
individual who is eligible to become an
effective nominee of that organization
with respect to any Floor Broker
Trading Permit or Market-Maker Floor
Trading Permit which the organization
holds.7 Only active nominees are
permitted to act as a Market-Maker or
Floor Broker on the trading floor. In
order for an inactive nominee to act as
a Market-Maker or Floor Broker on the
trading floor, the TPH organization it is
associated with must purchase an
additional Floor Trading Permit or must
swap places with an active nominee on
a Trading Permit, which nominee would
then become inactive. The Exchange
currently assesses a monthly fee of $300
for any nominee that retains inactive
status (i.e., ‘‘Inactive Nominee Status
Fee (Parking Space)’’). The Exchange
also assesses $100 each time an inactive
nominee swaps places with a nominee
on a Trading Permit. The Exchange
notes that the Fees Schedule currently
provides that when the trading floor is
inoperable, floor Market-Makers and
Floor Brokers will be entitled to act in
their registered capacities electronically,
provided that any Floor Broker TPH that
did not have an Electronic Access
Permit (‘‘EAP’’) prior to the closure of
the trading floor will be charged for one
EAP per TPH organization and any floor
Market-Maker that did not have a
Market Maker EAP will be charged for
one Market Maker EAP per TPH
organization (i.e., floor TPHs will not be
assessed per permit fees for floor
Trading Permits).8 As TPH
organizations do not purchase
additional floor Trading Permits while
Cboe Options Rule 3.9(b).
Cboe Options Rule 3.9(e).
8 See Cboe Options Fees Schedule, Footnote 41.
the trading floor is inoperable, the
Inactive Nominee Status fee and
Inactive Nominee Status Change fee
would also not apply and the Exchange
wishes to make this clear in the Fees
Schedule to provide additional
transparency in the Fees Schedule.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’) and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.9 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 10 requirements that the rules of
an exchange be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
securities, to remove impediments to
and perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest.
Additionally, the Exchange believes the
proposed rule change is consistent with
Section 6(b)(4) of the Act,11 which
requires that Exchange rules provide for
the equitable allocation of reasonable
dues, fees, and other charges among its
Trading Permit Holders and other
persons using its facilities.
The Exchange believes the proposed
rule change to not count volume
executed and marked as a compression
transaction towards volume thresholds
for any applicable incentive program is
reasonable, as such transactions already
do not incur any fees or surcharges for
such volume. The Exchange also
believes it’s reasonable to exclude such
volume from the volume thresholds for
the SPX/SPXW Market-Maker Tier
Appointment Fee and SPX/SPXW Floor
Broker Trading Surcharge because the
Exchange does not want to discourage
such transactions. As discussed, the
Exchange believes compression of these
positions would improve market
liquidity by freeing capital currently
tied up in positions for which there is
a minimal chance that a significant loss
would occur. The Exchange believes the
proposed change is also equitable and
not unfairly discriminatory as it applies
uniformly to all market participants that
6 See
9 15
7 See
10 15
PO 00000
Frm 00072
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U.S.C. 78f(b).
U.S.C. 78f(b)(5).
11 15 U.S.C. 78f(b)(4).
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Federal Register / Vol. 85, No. 93 / Wednesday, May 13, 2020 / Notices
identify eligible orders in the form and
manner determined by the Exchange.
The Exchange believes the proposed
clarifications regarding inactive
nominee fees is reasonable as such
clarifications provide additional
transparency in the Fees Schedule and
alleviate potential confusion, thereby
reducing impediments to, and
perfecting the mechanism of a free and
open market and a national market
system, and, in general, protecting
investors and the public interest. The
Exchange also notes not assessing these
fees is reasonable, equitable and not
unfairly discriminatory as TPHs would
not be subject to such fees and it would
apply uniformly to all nominees and
inactive nominees.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule changes will impose
any burden on competition that are not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange notes the proposed changes
are not intended to address any
competitive issue, but rather to address
a fee change it believes is reasonable in
the event the trading floor becomes
inoperable, thereby only permitting
electronic participation on the
Exchange. The Exchange does not
believe that the proposed rule change
will impose any burden on intramarket
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act because the
proposed changes apply equally to all
similarly situated market participants.
The Exchange does not believe that the
proposed rule changes will impose any
burden on intermarket competition that
is not necessary or appropriate in
furtherance of the purposes of the Act
because the proposed changes only
affect trading on the Exchange in
limited circumstances.
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C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 12 and paragraph (f) of Rule
19b–4 13 thereunder. At any time within
12 15
13 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
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19:53 May 12, 2020
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60 days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission will institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
CBOE–2020–044 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–2020–044. 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. Persons
submitting comments are cautioned that
we do not redact or edit personal
identifying information from comment
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28671
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–CBOE–
2020–044, and should be submitted on
or before June 3, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–10217 Filed 5–12–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–88837; File Nos. SR–NYSE–
2019–46, SR–NYSENAT–2019–19, SR–
NYSEArca–2019–61, SR–NYSEAMER–2019–
34]
Self-Regulatory Organizations; New
York Stock Exchange LLC; NYSE
National, Inc.; NYSE Arca, Inc.; NYSE
American LLC; Order Granting
Approval of a Proposed Rule Change,
as Modified by Amendment No. 1, To
Amend the Exchanges’ Co-Location
Services To Offer Co-Location Users
Access to the NMS Network
May 7, 2020.
I. Introduction
On August 22, 2019, New York Stock
Exchange LLC, NYSE National, Inc., and
NYSE Arca, Inc. each filed with the
Securities and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to:
(i) Amend their co-location services to
offer co-location Users access to the
‘‘NMS Network’’—a new alternate,
dedicated network providing
connectivity to data feeds for the
National Market System Plans for which
Securities Industry Automation
Corporation (‘‘SIAC’’) is engaged as the
exclusive securities information
processor (‘‘SIP’’); and (ii) establish
associated fees. NYSE American LLC
filed with the Commission a
substantively identical filing on August
23, 2019.3 The proposed rule changes
were published for comment in the
Federal Register on September 10,
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 The New York Stock Exchange LLC, NYSE
National, Inc., NYSE Arca, Inc., and NYSE
American, LLC are collectively referred to herein as
‘‘NYSE’’ or the ‘‘Exchanges.’’
1 15
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]]>Agencies
[Federal Register Volume 85, Number 93 (Wednesday, May 13, 2020)]
[Notices]
[Pages 28669-28671]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-10217]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-88836; File No. SR-CBOE-2020-044]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Relating
To Amend Its Fees Schedule
May 7, 2020.
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 May 1, 2020, 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.
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes
to amend its fees schedule. The text of the proposed rule change is
provided in Exhibit 5.
The text of the proposed rule change is also available on the
Exchange's website (https://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the
Secretary, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
[[Page 28670]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend its Fees Schedule, effective May 1,
2020.
Compression Transaction
The Exchange first proposes to amend its Fees Schedule with respect
to compression transactions. By way of background, the Exchange
currently waives transaction fees (and applicable surcharges) incurred
as a result of transactions that compress or reduce certain open
positions in SPX and SPXW.\3\ The Exchange adopted fee and surcharge
waivers as compression of these positions would improve market
liquidity by freeing capital currently tied up in positions for which
there is a minimal chance that a significant loss would occur. In order
to receive a waiver of transaction fees, a TPH must mark its orders in
a form and manner determined by the Exchange to identify them as
eligible for the compression rebates.\4\ As these orders are not
subject to any transaction fees or surcharges, the Exchange wishes to
also exclude such volume from any volume thresholds calculated by the
Exchange. More specifically, the Exchange proposes to not count SPX and
SPXW orders marked as compression towards any volume thresholds for the
following programs: (1) SPX Liquidity Provider Sliding Scale, (2)
Clearing Trading Permit Holder Proprietary Products Sliding Scale, (3)
Select Customer Options Reduction (``SCORe'') Program, (4) SPX/SPXW
Market-Maker Tier Appointment Fees, (5) SPX/SPXW Floor Broker Trading
Surcharge, (6) Floor Broker ADV Discount, (7) Floor Brokerage Fees
Discount, and (8) Frequent Trader Program. The Exchange proposes to
amend Footnotes 12 and 41 to make clear that identified compression
transactions (i.e., those properly marked in a manner and form
determined by the Exchange) shall not count towards any volume
threshold.\5\
---------------------------------------------------------------------------
\3\ See CBOE Fees Schedule, Footnote 41 and Footnote 12.
\4\ Id.
\5\ The Exchange proposes to also append Footnotes 12 and 41 to
affected programs, as applicable.
---------------------------------------------------------------------------
Registration Fees
The Exchange next proposes to add clarifying language to Footnote
12 of the Fees Schedule, which governs pricing changes in the event the
Exchange trading floor becomes inoperable. In the event the trading
floor becomes inoperable, the Exchange will continue to operate in a
screen-based only environment using a floorless configuration of the
System that is operational while the trading floor facility is
inoperable. The Exchange would operate using that configuration only
until the Exchange's trading floor facility became operational. Open
outcry trading would not be available in the event the trading floor
becomes inoperable. Particularly, the Exchange proposes to amend
Footnote 12 to clarify that certain registration fees are not
applicable when the trading floor is inoperable.
First, by way of background, every TPH organization must designate
an individual nominee to represent the organization with respect to
each Floor Broker Trading Permit or Market-Maker Floor Trading Permit
in all matters relating to the Exchange.\6\ An ``inactive nominee'' of
a TPH organization is an individual who is eligible to become an
effective nominee of that organization with respect to any Floor Broker
Trading Permit or Market-Maker Floor Trading Permit which the
organization holds.\7\ Only active nominees are permitted to act as a
Market-Maker or Floor Broker on the trading floor. In order for an
inactive nominee to act as a Market-Maker or Floor Broker on the
trading floor, the TPH organization it is associated with must purchase
an additional Floor Trading Permit or must swap places with an active
nominee on a Trading Permit, which nominee would then become inactive.
The Exchange currently assesses a monthly fee of $300 for any nominee
that retains inactive status (i.e., ``Inactive Nominee Status Fee
(Parking Space)''). The Exchange also assesses $100 each time an
inactive nominee swaps places with a nominee on a Trading Permit. The
Exchange notes that the Fees Schedule currently provides that when the
trading floor is inoperable, floor Market-Makers and Floor Brokers will
be entitled to act in their registered capacities electronically,
provided that any Floor Broker TPH that did not have an Electronic
Access Permit (``EAP'') prior to the closure of the trading floor will
be charged for one EAP per TPH organization and any floor Market-Maker
that did not have a Market Maker EAP will be charged for one Market
Maker EAP per TPH organization (i.e., floor TPHs will not be assessed
per permit fees for floor Trading Permits).\8\ As TPH organizations do
not purchase additional floor Trading Permits while the trading floor
is inoperable, the Inactive Nominee Status fee and Inactive Nominee
Status Change fee would also not apply and the Exchange wishes to make
this clear in the Fees Schedule to provide additional transparency in
the Fees Schedule.
---------------------------------------------------------------------------
\6\ See Cboe Options Rule 3.9(b).
\7\ See Cboe Options Rule 3.9(e).
\8\ See Cboe Options Fees Schedule, Footnote 41.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\9\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \10\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. Additionally,
the Exchange believes the proposed rule change is consistent with
Section 6(b)(4) of the Act,\11\ which requires that Exchange rules
provide for the equitable allocation of reasonable dues, fees, and
other charges among its Trading Permit Holders and other persons using
its facilities.
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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
\11\ 15 U.S.C. 78f(b)(4).
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The Exchange believes the proposed rule change to not count volume
executed and marked as a compression transaction towards volume
thresholds for any applicable incentive program is reasonable, as such
transactions already do not incur any fees or surcharges for such
volume. The Exchange also believes it's reasonable to exclude such
volume from the volume thresholds for the SPX/SPXW Market-Maker Tier
Appointment Fee and SPX/SPXW Floor Broker Trading Surcharge because the
Exchange does not want to discourage such transactions. As discussed,
the Exchange believes compression of these positions would improve
market liquidity by freeing capital currently tied up in positions for
which there is a minimal chance that a significant loss would occur.
The Exchange believes the proposed change is also equitable and not
unfairly discriminatory as it applies uniformly to all market
participants that
[[Page 28671]]
identify eligible orders in the form and manner determined by the
Exchange.
The Exchange believes the proposed clarifications regarding
inactive nominee fees is reasonable as such clarifications provide
additional transparency in the Fees Schedule and alleviate potential
confusion, thereby reducing impediments to, and perfecting the
mechanism of a free and open market and a national market system, and,
in general, protecting investors and the public interest. The Exchange
also notes not assessing these fees is reasonable, equitable and not
unfairly discriminatory as TPHs would not be subject to such fees and
it would apply uniformly to all nominees and inactive nominees.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule changes will
impose any burden on competition that are not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange notes the
proposed changes are not intended to address any competitive issue, but
rather to address a fee change it believes is reasonable in the event
the trading floor becomes inoperable, thereby only permitting
electronic participation on the Exchange. The Exchange does not believe
that the proposed rule change will impose any burden on intramarket
competition that is not necessary or appropriate in furtherance of the
purposes of the Act because the proposed changes apply equally to all
similarly situated market participants. The Exchange does not believe
that the proposed rule changes will impose any burden on intermarket
competition that is not necessary or appropriate in furtherance of the
purposes of the Act because the proposed changes only affect trading on
the Exchange in limited circumstances.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \12\ and paragraph (f) of Rule 19b-4 \13\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f).
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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-2020-044 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-2020-044. 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. 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-2020-044, and should be
submitted on or before June 3, 2020.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-10217 Filed 5-12-20; 8:45 am]
BILLING CODE 8011-01-P
