Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Silexx Trading Platform Fees Schedule, 30761-30763 [2020-10820]
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Federal Register / Vol. 85, No. 98 / Wednesday, May 20, 2020 / Notices
Washington, DC 20549, or by sending an
email to: PRA_Mailbox@sec.gov.
Dated: May 15, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–10881 Filed 5–19–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–501, OMB Control No.
3235–0559]
Submission for OMB Review;
Comment Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Extension:
Rule 203A–2(e)
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.) (‘‘PRA’’), the
Securities and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for extension and
approval of the previously approved
collection of information discussed
below.
Rule 203A–2(e),1 which is entitled
‘‘internet Investment Advisers,’’
exempts from the prohibition on
Commission registration an internet
investment adviser who provides
investment advice to all of its clients
exclusively through computer softwarebased models or applications termed
under the rule as ‘‘interactive
websites.’’ 2 These advisers generally
would not meet the statutory thresholds
currently set out in section 203A of the
Advisers Act 3—they do not manage $25
million or more in assets and do not
advise registered investment companies,
or they manage between $25 million
and $100 million in assets, do not
advise registered investment companies
or business development companies,
and are required to be registered as
investment advisers with the states in
which they maintain their principal
1 17
CFR 275.203A–2(e).
in rule 203A–2(e) is a limited
exception to the interactive website requirement
which allows these advisers to provide investment
advice to fewer than 15 clients through other means
on an annual basis. 17 CFR 275.203A–2(e)(1)(i). The
rule also precludes advisers in a control
relationship with an SEC-registered internet adviser
from registering with the Commission under the
common control exemption provided by rule 203A–
2(b) (17 CFR 275.203A–2(b)). 17 CFR 275.203A–
2(e)(1)(iii).
3 15 U.S.C. 80b–3a(a).
2 Included
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offices and places of business and are
subject to examination as an adviser by
such states.4 Eligibility under rule
203A–2(e) is conditioned on an adviser
maintaining in an easily accessible
place, for a period of not less than five
years from the filing of Form ADV,5 a
record demonstrating that the adviser’s
advisory business has been conducted
through an interactive website in
accordance with the rule.6
This record maintenance requirement
is a ‘‘collection of information’’ for PRA
purposes. The Commission believes that
approximately 181 advisers are
registered with the Commission under
rule 203A–2(e), which involves a
recordkeeping requirement of
approximately four burden hours per
year per adviser and results in an
estimated 724 of total burden hours (4
×181) for all advisers.
This collection of information is
mandatory, as it is used by Commission
staff in its examination and oversight
program in order to determine
continued Commission registration
eligibility of advisers registered under
this rule. Responses generally are kept
confidential pursuant to section 210(b)
of the Advisers Act.7 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 control number.
The public may view background
documentation for this information
collection at the following website:
>www.reginfo.gov<. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function. Written comments and
recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice to (i) >www.reginfo.gov/public/
do/PRAMain< and (ii) David Bottom,
Director/Chief Information Officer,
Securities and Exchange Commission, c/
o Cynthia Roscoe, 100 F Street NE,
Washington, DC 20549, or by sending an
email to: PRA_Mailbox@sec.gov.
Dated: May 15, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–10876 Filed 5–19–20; 8:45 am]
BILLING CODE 8011–01–P
4 Id.
5 The five-year record retention period is a similar
recordkeeping retention period as imposed on all
advisers under rule 204–2 of the Advisers Act. See
rule 204–2 (17 CFR 275.204–2).
6 17 CFR 275.203A–2(e)(1)(ii).
7 15 U.S.C. 80b–10(b).
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30761
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–88877; File No. SR–CBOE–
2020–043]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the Silexx
Trading Platform Fees Schedule
May 14, 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 Substance of
the Proposed Rule Change
Cboe Exchange, Inc. (the ‘‘Exchange’’
or ‘‘Cboe Options’’) proposes to amend
the Silexx trading platform (‘‘Silexx’’ or
the ‘‘platform’’) 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/CBOELegalRegulatory
Home.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
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 85, No. 98 / Wednesday, May 20, 2020 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this filing is to amend
language within the Silexx Fees
Schedule to extend the end of the time
period for a free upgrade for users on
Silexx Basic to Silexx Pro from April 30,
2020 through May 31, 2020.
By way of background, the Silexx
platform consists of a ‘‘front-end’’ order
entry and management trading platform
(also referred to as the ‘‘Silexx
terminal’’) for listed stocks and options
that supports both simple and complex
orders,3 and a ‘‘back-end’’ platform
which provides a connection to the
infrastructure network. From the Silexx
platform (i.e., the collective front-end
and back-end platform), a Silexx user
has the capability to send option orders
to U.S. options exchanges, send stock
orders to U.S. stock exchanges (and
other trading centers), input parameters
to control the size, timing, and other
variables of their trades, and also
includes access to real-time options and
stock market data, as well as access to
certain historical data. The Silexx
platform is designed so that a user may
enter orders into the platform to send to
an executing broker (including Trading
Permit Holders (‘‘TPHs’’)) of its choice
with connectivity to the platform, which
broker will then send the orders to Cboe
Options (if the broker is a TPH) or other
U.S. exchanges (and trading centers) in
accordance with the user’s
instructions.4 The Silexx front-end and
back-end platforms are a software
application that are installed locally on
a user’s desktop. Silexx grants users
licenses to use the platform, and a firm
or individual does not need to be a TPH
to license the platform. Use of Silexx is
completely optional.
Free Upgrade
Silexx Basic is an order-entry and
management system that provides basic
functionality including real-time data,
alerts, trade reports, views of exchange
books, management of the customer’s
3 The
platform also permits users to submit orders
for commodity futures, commodity options and
other non-security products to be sent to designated
contract markets, futures commission merchants,
introducing brokers or other applicable destinations
of the users’ choice.
4 Silexx does not allow users to send orders
directly to the Exchange or other market centers;
however, an additional version of the Silexx
platform, Silexx FLEX, supports the trading of
FLEX Options and allows authorized Users with
direct access to the Exchange. See Securities
Exchange Act Release No. 87028 (September 19,
2019) 84 FR 50529 (September 25, 2019) (SR–
CBOE–2019–061).
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orders and positions, simple and
complex order tickets, and basic risk
features. Users are currently charged
$200 per month per Login ID for Silexx
Basic. Silexx Pro offers the same
functionality as the basic platform plus
additional features including an
algorithmic order ticket, position
analysis, charting, earnings and
dividend information, delta hedging
tools, volatility skews, and additional
risk features. Prior to March 13, 2020,
Users were charged $400 per month per
Login ID for Silexx Pro. However on
March 13, 2020, the Exchange
introduced a free-upgrade period for
Users that are currently on Silexx
Basic.5 This upgrade has allowed users
of Silexx Basic to use the functionality
of Silexx Pro from March 13, 2020
through April 30, 2020 at the current
Silexx Basic rate of $200 per month per
Login ID.
The Exchange now proposes to extend
the end of the period of the free-upgrade
to May 31, 2020. After this period ends,
beginning June 1, 2020, those users who
upgraded will be charged at the Silexx
Pro rate of $400 per month until they
choose to downgrade. The Exchange
notes that the upgrade to Silexx Pro is
optional.
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.6 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 7 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,8 which
requires that Exchange rules provide for
the equitable allocation of reasonable
dues, fees, and other charges among its
5 See Securities Exchange Act No. 88475 (March
25, 2020) 85 FR 17925 (March 31, 2020) (SR–CBOE–
2020–018).
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
8 15 U.S.C. 78f(b)(4).
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Trading Permit Holders and other
persons using its facilities.
In particular, the Exchange believes
the proposed rule change is reasonable,
equitable, and not unfairly
discriminatory because the free upgrade
will continue to apply to all current
users of Silexx Basic who wish to
upgrade. Additionally, the free upgrade
period will be limited through May 31,
2020. Finally, the Exchange notes that
use of the platform, including the
upgrade, is discretionary and not
compulsory, and users may downgrade
or cancel their Login IDs with Silexx at
any time.
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. The
Exchange believes that the proposed
rule change will not impose any burden
on intramarket competition because the
proposed rule change applies to all
users of Silexx. The Exchange notes that
each version of Silexx is available to all
market participants, and users have
discretion to determine which version
of the platform they register for based on
functionality.
The Exchange does not believe that
the proposed rule change will impose
any burden on intermarket competition
that is not necessary or appropriate in
furtherance of the purposes of the Act
because the proposed change applies
only to Cboe Options. To the extent that
the proposed changes make Cboe
Options a more attractive marketplace
for market participants at other
exchanges, such market participants are
welcome to become Cboe Options
market participants.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 9 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
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
10 17
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Federal Register / Vol. 85, No. 98 / Wednesday, May 20, 2020 / Notices
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–2020–043 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–2020–043. 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
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17:51 May 19, 2020
Jkt 250001
to make available publicly. All
submissions should refer to File
Number SR–CBOE–2020–043 and
should be submitted on or before June
10, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–10820 Filed 5–19–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–88873; File No. SR–
NYSEArca–2020–44]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Modifying the NYSE Arca
Options Fee Schedule Regarding
Pricing Incentives for Certain Posted
Volume
May 14, 2020.
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 May 11,
2020, 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, II, and
III below, which Items have been
prepared by the self-regulatory
organization. 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 modify the
NYSE Arca Options Fee Schedule (‘‘Fee
Schedule’’) regarding pricing incentives
for certain posted volume. The
Exchange proposes to implement the fee
change effective May 11, 2020.4 The
proposed rule change is available on the
Exchange’s website at www.nyse.com, at
the principal office of the Exchange, and
at the Commission’s Public Reference
Room.
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
4 The Exchange originally filed to amend the Fee
Schedule on May 1, 2020 (SR–NYSEArca–2020–41)
and withdrew such filing on May 11, 2020.
1 15
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30763
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
self-regulatory organization 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 those 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 parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this filing is to amend
the Fee Schedule to introduce a new
incentive program, and to modify other
credits to encourage a variety of
transactions to be executed on the
Exchange.
Specifically, the Exchange proposes to
adopt incentives designed to increase
Firm and Broker Dealer transactions on
the Exchange, including by offering
credits based on posted Firm and Broker
Dealer volume under existing and
proposed incentive programs, which
would increase available interest on the
Exchange to the benefit of all market
participants.5 The proposed change
would include a ‘‘cross-asset pricing’’
component to incentivize OTP Holders
and affiliates to execute a certain
amount of volume on both the
Exchange’s equities and options
platform.
The Exchange proposes to implement
the fee changes on May 11, 2020.
Background
The Commission has repeatedly
expressed its preference for competition
over regulatory intervention in
determining prices, products, and
services in the securities markets. In
Regulation NMS, the Commission
highlighted the importance of market
forces in determining prices and SRO
revenues and, also, recognized that
current regulation of the market system
5 Firm and Broker Dealer transactions are
included as ‘‘Non-Customer’’ for purpose of fees
and credits. See Fee Schedule, NYSE Arca Options
Trade Related Charges For Standard Options,
available here, https://www.nyse.com/publicdocs/
nyse/markets/arca-options/NYSE_Arca_Options_
Fee_Schedule.pdf (providing that for fee/credit
purposes, Firms, Broker Dealers, and Market
Makers are considered ‘‘Non-Customers’’ and,
unless otherwise specified, Professional Customers
are considered ‘‘Customers’’).
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]]>Agencies
[Federal Register Volume 85, Number 98 (Wednesday, May 20, 2020)]
[Notices]
[Pages 30761-30763]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-10820]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-88877; File No. SR-CBOE-2020-043]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
the Silexx Trading Platform Fees Schedule
May 14, 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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes
to amend the Silexx trading platform (``Silexx'' or the ``platform'')
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 30762]]
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this filing is to amend language within the Silexx
Fees Schedule to extend the end of the time period for a free upgrade
for users on Silexx Basic to Silexx Pro from April 30, 2020 through May
31, 2020.
By way of background, the Silexx platform consists of a ``front-
end'' order entry and management trading platform (also referred to as
the ``Silexx terminal'') for listed stocks and options that supports
both simple and complex orders,\3\ and a ``back-end'' platform which
provides a connection to the infrastructure network. From the Silexx
platform (i.e., the collective front-end and back-end platform), a
Silexx user has the capability to send option orders to U.S. options
exchanges, send stock orders to U.S. stock exchanges (and other trading
centers), input parameters to control the size, timing, and other
variables of their trades, and also includes access to real-time
options and stock market data, as well as access to certain historical
data. The Silexx platform is designed so that a user may enter orders
into the platform to send to an executing broker (including Trading
Permit Holders (``TPHs'')) of its choice with connectivity to the
platform, which broker will then send the orders to Cboe Options (if
the broker is a TPH) or other U.S. exchanges (and trading centers) in
accordance with the user's instructions.\4\ The Silexx front-end and
back-end platforms are a software application that are installed
locally on a user's desktop. Silexx grants users licenses to use the
platform, and a firm or individual does not need to be a TPH to license
the platform. Use of Silexx is completely optional.
---------------------------------------------------------------------------
\3\ The platform also permits users to submit orders for
commodity futures, commodity options and other non-security products
to be sent to designated contract markets, futures commission
merchants, introducing brokers or other applicable destinations of
the users' choice.
\4\ Silexx does not allow users to send orders directly to the
Exchange or other market centers; however, an additional version of
the Silexx platform, Silexx FLEX, supports the trading of FLEX
Options and allows authorized Users with direct access to the
Exchange. See Securities Exchange Act Release No. 87028 (September
19, 2019) 84 FR 50529 (September 25, 2019) (SR-CBOE-2019-061).
---------------------------------------------------------------------------
Free Upgrade
Silexx Basic is an order-entry and management system that provides
basic functionality including real-time data, alerts, trade reports,
views of exchange books, management of the customer's orders and
positions, simple and complex order tickets, and basic risk features.
Users are currently charged $200 per month per Login ID for Silexx
Basic. Silexx Pro offers the same functionality as the basic platform
plus additional features including an algorithmic order ticket,
position analysis, charting, earnings and dividend information, delta
hedging tools, volatility skews, and additional risk features. Prior to
March 13, 2020, Users were charged $400 per month per Login ID for
Silexx Pro. However on March 13, 2020, the Exchange introduced a free-
upgrade period for Users that are currently on Silexx Basic.\5\ This
upgrade has allowed users of Silexx Basic to use the functionality of
Silexx Pro from March 13, 2020 through April 30, 2020 at the current
Silexx Basic rate of $200 per month per Login ID.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act No. 88475 (March 25, 2020) 85 FR
17925 (March 31, 2020) (SR-CBOE-2020-018).
---------------------------------------------------------------------------
The Exchange now proposes to extend the end of the period of the
free-upgrade to May 31, 2020. After this period ends, beginning June 1,
2020, those users who upgraded will be charged at the Silexx Pro rate
of $400 per month until they choose to downgrade. The Exchange notes
that the upgrade to Silexx Pro is optional.
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.\6\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \7\ 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,\8\ 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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\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
\8\ 15 U.S.C. 78f(b)(4).
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In particular, the Exchange believes the proposed rule change is
reasonable, equitable, and not unfairly discriminatory because the free
upgrade will continue to apply to all current users of Silexx Basic who
wish to upgrade. Additionally, the free upgrade period will be limited
through May 31, 2020. Finally, the Exchange notes that use of the
platform, including the upgrade, is discretionary and not compulsory,
and users may downgrade or cancel their Login IDs with Silexx at any
time.
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. The Exchange believes that
the proposed rule change will not impose any burden on intramarket
competition because the proposed rule change applies to all users of
Silexx. The Exchange notes that each version of Silexx is available to
all market participants, and users have discretion to determine which
version of the platform they register for based on functionality.
The Exchange does not believe that the proposed rule change will
impose any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act because the
proposed change applies only to Cboe Options. To the extent that the
proposed changes make Cboe Options a more attractive marketplace for
market participants at other exchanges, such market participants are
welcome to become Cboe Options market participants.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \9\ 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
[[Page 30763]]
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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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 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-2020-043 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-2020-043. 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-2020-043 and should be submitted on
or before June 10, 2020.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-10820 Filed 5-19-20; 8:45 am]
BILLING CODE 8011-01-P
