GC SBIC VI, L.P.; Surrender of License of Small Business Investment Company, 54275 [2021-21297]
Download as PDF
Federal Register / Vol. 86, No. 187 / Thursday, September 30, 2021 / Notices
investors and other market participants
to distinguish those options from the
related non-FLEX options with a
multiplier of 100 and micro-options as
well as FLEX index options with a
multiplier of 100, reducing potential
investor confusion.52
The Commission believes it is
appropriate for Micro FLEX Index
Options to trade pursuant to existing
FLEX rules governing the listing and
trading of FLEX index options. In
addition, the Exchange states that it and
OPRA have the necessary systems
capacity to handle the additional traffic
associated with the listing of new series
that may result from the introduction of
Micro FLEX Index Options.53 The
Exchange also states that the OCC will
be able to accommodate the listing and
trading of Micro FLEX Index Options.
As a national securities exchange, the
Exchange is required, under Section
6(b)(1) of the Act,54 to enforce
compliance by its members and persons
associated with its members with the
provisions of the Act, Commission rules
and regulations thereunder, and its own
rules. The Exchange states that its
existing surveillance and reporting
safeguards are designed to deter and
detect possible manipulative behavior
that might arise from listing and trading
Micro FLEX Options. In addition, Micro
FLEX Index Options will be traded
under the Exchange’s existing regulatory
regime for FLEX index options, which
includes, among other things, the
Exchange’s existing rules regarding
customer protection, safeguards related
to position and exercise limits, as
applicable,55 and reporting
requirements. In particular, Micro FLEX
Index Option orders entered by TPHs on
behalf of customers, including
institutional and retail customers, will
be subject to all Exchange rules
regarding doing business with the
public, including those within Chapter
9 of the Exchange’s Rules.56 The
supra note 11.
supra note 27.
54 15 U.S.C. 78f(b)(1).
55 There are, however, no position limits or
exercise limits for certain broad-based FLEX index
options. See CBOE Rule 8.35(b) and CBOE Rule
8.42(g).
56 The Commission notes that these rules require,
among other things, that: (i) A TPH may not accept
an option order, including a Micro FLEX Index
Option order, from a customer unless that
customer’s account has been approved for options
transactions in accordance with CBOE Rule 9.1; (ii)
TPHs that conduct customer business, including
institutional and retail customer business, must
ensure they provide for appropriate supervisory
control over that business and maintain customer
records in accordance with CBOE Rule 9.2; and (iii)
TPHs will also need to provide customers that trade
Micro FLEX Index Option (and any other option)
with a copy of the ODD and amendments to the
Commission believes that it is
consistent with the Act to apply
Exchange rules governing, among other
things, customer accounts, margin
requirements, and trading halt
procedures to the proposed Micro FLEX
Index Options that are otherwise
applicable to other FLEX index options.
Further, the Commission believes that
trading the Micro FLEX Index Options
pursuant to the Exchange’s current rules
governing the trading of FLEX index
options is consistent with the protection
of investors and should provide market
participants with the same flexibility to
customize certain terms of the options
while allowing investors to trade a
smaller sized options contract that may,
according to the Exchange, better meet
their hedging needs.
The Commission also believes the
proposed changes that the Exchange is
making regarding codifying how
percentage-based FLEX orders and
auction responses will be ranked are
consistent with the Act.57 The Exchange
states that such ranking provides FLEX
Traders willing to pay more (or receive
less) with priority.58 The Exchange
further states that providing priority to
FLEX Traders that submit more
aggressive responses will encourage
FLEX Traders to submit competitive
responses, which the Exchange believes
will benefit investors.59 In addition, the
Exchange states that such ranking is
consistent with the Exchange’s current
practice, as well as the way the
Exchange ranks dollar-priced
premiums.60 For the foregoing reasons,
the Commission believes that the
proposed rule change regarding the
ranking of percentage-based FLEX
orders and options responses is
consistent with the Act.
Finally, the Commission believes that
the other non-substantive and clarifying
changes will help protect investors and
the public interest by providing clarity
and transparency to the rules by making
them easier to read and understand.61
52 See
LOTTER on DSK11XQN23PROD with NOTICES1
53 See
VerDate Sep<11>2014
18:15 Sep 29, 2021
Jkt 253001
ODD in accordance with CBOE Rule 9.9 so that
customers are informed of any risks associated with
trading options, including Micro FLEX Index
Options.
57 See proposed amendments to CBOE Rule
4.21(b)(6), CBOE Rule 5.3(e)(3), and CBOE Rule
5.4(c)(4). As discussed above, following the
application of the designated percentage to the
closing value of the underlying security or index,
the system rounds the final transaction prices to the
nearest minimum fixed price increment for the
class as set forth in Rule 5.4. See CBOE Rule
5.3(e)(3) and CBOE Rule 5.4(c)(4).
58 See Notice, supra note 4 at 44420.
59 See id.
60 See id. at 44419.
61 See, e.g., proposed amendments to CBOE Rule
4.21(b)(6) (stating the minimum increments for
exercise prices); CBOE Rule 4.22(b) (changing the
terminology related to notification of when a FLEX
PO 00000
Frm 00127
Fmt 4703
Sfmt 9990
54275
Accordingly, the Commission finds
that the proposed rule change, as
modified by Amendment No. 2, is
consistent with Section 6(b)(5) of the
Act 62 and the rules and regulations
thereunder applicable to a national
securities exchange.
III. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,63 that the
proposed rule change (SR–CBOE–2021–
041), as modified by Amendment No. 2,
be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.64
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–21211 Filed 9–29–21; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
[License No. 02/02–0680]
GC SBIC VI, L.P.; Surrender of License
of Small Business Investment
Company
Pursuant to the authority granted to
the United States Small Business
Administration under the Small
Business Investment Act of 1958, as
amended, under Section 309 of the Act
and Section 107.1900 of the Small
Business Administration Rules and
Regulations (13 CFR 107.1900) to
function as a small business investment
company under the Small Business
Investment Company License No. 02/
02–0680 issued to GC SBIC VI, L.P., said
license is hereby declared null and void.
United States Small Business
Administration.
Bailey DeVries,
Associate Administrator, Office of Investment
and Innovation.
[FR Doc. 2021–21297 Filed 9–29–21; 8:45 am]
BILLING CODE P
option series is restricted to closing only
transactions). See also proposed amendments to
CBOE Rule 5.72(c)(3)(A); CBOE Rule 5.73(e); CBOE
Rule 5.74(e) (codifying that FLEX auction response
bids and offers as well as Initiating Orders and
Solicitation Orders with respect to FLEX AIM
Auctions and FLEX SAM Auctions, respectively,
are ranked during the allocation process based on
the dollar and decimal amount of the order or
response bid or offer, or the percentage value of the
order or response bid or offer, as applicable).
62 15 U.S.C. 78f(b)(5).
63 15 U.S.C. 78s(b)(2).
64 17 CFR 200.30–3(a)(12).
E:\FR\FM\30SEN1.SGM
30SEN1
Agencies
[Federal Register Volume 86, Number 187 (Thursday, September 30, 2021)]
[Notices]
[Page 54275]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-21297]
=======================================================================
-----------------------------------------------------------------------
SMALL BUSINESS ADMINISTRATION
[License No. 02/02-0680]
GC SBIC VI, L.P.; Surrender of License of Small Business
Investment Company
Pursuant to the authority granted to the United States Small
Business Administration under the Small Business Investment Act of
1958, as amended, under Section 309 of the Act and Section 107.1900 of
the Small Business Administration Rules and Regulations (13 CFR
107.1900) to function as a small business investment company under the
Small Business Investment Company License No. 02/02-0680 issued to GC
SBIC VI, L.P., said license is hereby declared null and void.
United States Small Business Administration.
Bailey DeVries,
Associate Administrator, Office of Investment and Innovation.
[FR Doc. 2021-21297 Filed 9-29-21; 8:45 am]
BILLING CODE P