[Federal Register Volume 77, Number 185 (Monday, September 24, 2012)]
[Notices]
[Pages 58897-58899]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-23439]
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SECURITIES AND EXCHANGE COMMISSION
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing of a Proposed Rule Change To Amend Rules
Regarding Requests for Data Related to Exchange Reviews
September 18, 2012.
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 September 4, 2012, the Chicago Board Options Exchange,
Incorporated (the ``Exchange'' or ``CBOE'') 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.
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\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 Substance
of the Proposed Rule Change
The Exchange proposes to amend its rules regarding the furnishing
of data requested with respect to any review conducted by the Exchange.
The text of the proposed rule change is available on the Exchange's Web
site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at
the Exchange's Office of the Secretary, and at the Commission's Public
Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, Proposed Rule Change
1. Purpose
The Exchange proposes to amend its rules regarding the furnishing
of data
[[Page 58898]]
requested with respect to any review conducted by the Exchange. The
Exchange currently requests and receives certain trade data from
Trading Permit Holders (``TPHs'') and TPH organizations on an ad hoc
basis, in the course of discharging its regulatory responsibilities as
a self-regulatory organization.\3\ Currently, TPHs and TPH
organizations provide such data in a variety of different manners and
formats, often piecemeal. Because the form of the submitted information
is highly variable and the manner of submission is not standard, the
Exchange's Regulatory Division expends considerable resources in re-
organizing and systematizing the information in order to perform proper
reviews and analyses.
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\3\ This data, which is provided in a comma-separated values
format, currently includes, when applicable, separate data fields
for trade date, order entry time (milliseconds), cancel time
(milliseconds), execution time (milliseconds), unique ticker symbol,
side, execution price, event type, unique account identification,
user ID, order ID, broker location, quantity, locate source for
short sale, number of shares remaining after a partial execution,
and the code of the exchange to which an order was routed.
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As such, the Exchange proposes that, in addition to the existing
obligation under Exchange rules regarding the production of books and
records, each TPH or TPH organization shall furnish upon request, in
the manner and standard electronic format prescribed by the Exchange,
data concerning orders, transactions, and positions, including related
hedges and offsets, in relation to a regulatory review conducted by the
Exchange. This change would allow the Exchange to develop uniform
procedures and forms for the submission of this order, position and
trade data (the ``Trade Data''). The existence of a standard format for
the submission of Trade Data would allow the TPHs to better prepare for
regulatory responses and would allow the Exchange regulatory staff to
review and analyze Trade Data in a vastly more efficient and organized
manner which in turn will expedite such review and analysis. The
Exchange proposes to publish by circular the layout of Trade Data that
may be included in any particular request such that the TPHs can
understand the specific information to be submitted in response to each
request. For example, a particular request may require submission of
the entire data layout or may be limited to only certain components of
the layout.
The Exchange will not enforce compliance with this proposed rule
change until the Exchange has announced an implementation plan. The
Exchange expects to announce such implementation plan via a Regulatory
Circular during the fourth calendar quarter of 2012. The implementation
plan will include a subsequent compliance date. The intervening period
between the announcement of the implementation plan and the compliance
date will allow TPHs time to prepare to comply.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act \4\ and the rules and regulations thereunder and, in
particular, the requirements of Section 6(b) of the Act.\5\
Specifically, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \6\ requirements that the rules of
an exchange be designed to promote just and equitable principles of
trade, to prevent fraudulent and manipulative acts, to remove
impediments to and to perfect the mechanism for a free and open market
and a national market system, and, in general, to protect investors and
the public interest. The existence of a uniform and standard format for
the submission of Trade Data and other such information requested with
respect to any review will remove impediments to and perfect the
mechanism for a free and open market and a national market system, and
in general, protect investors and the public interest by removing
confusion regarding the submission of such information, and by making
the review of such information a more efficient and effective process.
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\4\ 15 U.S.C. 78s(b)(1).
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
CBOE 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.
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
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve or disapprove such proposed rule change, or
(B) Institute proceedings to determine whether the proposed rule
change should be 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 (http://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-CBOE-2012-087 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-CBOE-2012-087. 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 Web site (http://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 Web site 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
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only
[[Page 58899]]
information that you wish to make available publicly. All submissions
should refer to File Number SR-CBOE-2012-087 and should be submitted on
or before October 15, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-23439 Filed 9-21-12; 8:45 am]
BILLING CODE 8011-01-P