[Federal Register Volume 78, Number 24 (Tuesday, February 5, 2013)]
[Notices]
[Pages 8207-8208]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-02422]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68765; File No. SR-CFE-2013-002]
Self-Regulatory Organizations; CBOE Futures Exchange, LLC; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change
Regarding Market-Wide Trading Halts
January 30, 2013.
Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on January 17, 2013 CBOE
Futures Exchange, LLC (``CFE'' or ``Exchange'') filed with the
Securities and Exchange Commission (``SEC'' or ``Commission'') the
proposed rule change described in Items I, II, and III below, which
Items have been prepared by CFE. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons. CFE also has filed this proposed rule change with the
Commodity Futures Trading Commission (``CFTC''). CFE filed a written
certification with the CFTC under Section 5c(c) of the Commodity
Exchange Act (``CEA'') \2\ on January 17, 2013.
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\1\ 15 U.S.C. 78s(b)(7).
\2\ 7 U.S.C. 7a-2(c).
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I. Self-Regulatory Organization's Description of the Proposed Rule
Change
CFE proposes to amend CFE Rules 417A(e) and 1602(i) to coordinate
the adoption and effectiveness of market-wide trading halt provisions
applicable to Individual Stock Based and Exchange-Traded Fund Based
Volatility Index (``Volatility Index'') security futures traded on CFE
with the implementation of corresponding market-wide trading halt
provisions by the national securities exchanges.\3\ The text of the
proposed rule change is available on the Exchange's Web site at http://www.cfe.cboe.com, on the Commission's Web site at http://www.sec.gov,
at the principal office of the Exchange, and at the Commission's Public
Reference Room.
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\3\ The scope of this filing is limited solely to the
application of the rule changes to security futures traded on CFE
and the only security futures currently traded on CFE are traded
under Chapter 16 of CFE's Rulebook which is applicable to Volatility
Index security futures.
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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, CFE 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. CFE 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
1. Purpose
The purpose of this proposal is to amend CFE Rules 417A(e) and
1602(i) to coordinate the adoption and effectiveness of market-wide
trading halt provisions applicable to Volatility Index security futures
traded on CFE with the implementation of corresponding market-wide
trading halt provisions by the national securities exchanges.
In October 2012, CFE adopted CFE Rule 417A and amended CFE Rule
1602(i) to incorporate, effective on February 4, 2013, market-wide
trading halt provisions that would be consistent with the market-wide
trading halt provisions which were anticipated to be adopted by the
national securities exchanges on February 4, 2013.\4\ CFE understands
that the national securities exchanges are now delaying the
implementation of their market-wide trading halt provisions.
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\4\ See Securities Exchange Act Release No. 68100 (October 24,
2012), 77 FR 65747 (October 30, 2012) (Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change to Adopt and Amend
Certain Rules that are Applicable to Security Futures) (SR-CFE-2012-
001).
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Because CFE Rules 417A and 1602(i) were coordinated with the
previously planned February 4, 2013 adoption and effective date of the
market-wide trading halt regime on national securities exchanges, CFE
is now amending those rules by deleting references to the February 4,
2013 date and replacing them with references to the date on which the
corresponding market-wide trading halt regime becomes effective on
national securities exchanges. CFE will issue a circular advising its
Trading Privilege Holders of the effective date of the new market-wide
trading halt provisions prior to their effectiveness.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\5\ in general, and furthers the
objectives of Section
[[Page 8208]]
6(b)(5) \6\ in particular in that it is designed to foster cooperation
and coordination with persons engaged in 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.
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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
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Specifically, the proposed change would promote uniformity across
securities and futures markets concerning when and how to halt trading
in relation to equity-based products as a result of extraordinary
market volatility which in turn facilitates the protection of investors
and the public interest. Having trading halts apply across markets that
operate under different regulatory regimes will benefit the public
interest because similar products will be subject to consistent market-
wide trading halt rules.
B. Self-Regulatory Organization's Statement on Burden on Competition
CFE does not believe that the proposed rule change will impose any
burden on competition not necessary or appropriate in furtherance of
the purposes of the Act.\7\ The Exchange believes that the proposal
will strengthen competition because coordination of market-wide trading
halts among securities and futures markets for equity-based products
avoids the competitive disadvantage that would exist if some exchanges
trading equity-based products halted in a coordinated fashion due to
extraordinary market volatility and others did not.
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\7\ 15 U.S.C. 78a et seq.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The proposed rule change will become operative on February 4, 2013.
At any time within 60 days of the date of effectiveness of the proposed
rule change, the Commission, after consultation with the CFTC, may
summarily abrogate the proposed rule change and require that the
proposed rule change be refiled in accordance with the provisions of
Section 19(b)(1) of the Act.\8\
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\8\ 15 U.S.C. 78s(b)(1).
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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 (http://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-CFE-2013-002 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-CFE-2013-002. 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 on official business
days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for inspection and copying at the
principal offices 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 information that
you wish to make available publicly. All submissions should refer to
File Number SR-CFE-2013-002, and should be submitted on or before
February 26, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-02422 Filed 2-4-13; 8:45 am]
BILLING CODE 8011-01-P