[Federal Register Volume 78, Number 52 (Monday, March 18, 2013)]
[Notices]
[Pages 16730-16731]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-06156]
[[Page 16730]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-69122; File No. SR-CFE-2013-003]
Self-Regulatory Organizations; CBOE Futures Exchange, LLC; Notice
of Filing of a Proposed Rule Change Regarding Reportable Position
Reporting of Security Futures by Non-Trading Privilege Holders
March 12, 2013.
Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on March 1, 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 II and III
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 March 1, 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 add new subparagraph (b) to CFE Rule 412B
(Reportable Positions) to make clear that Persons \3\ that are not CFE
Trading Privilege Holders (``TPHs'') and that are required by CFTC
regulations to report to the CFTC reportable positions and related
information relating to CFE security futures contracts are obligated to
also report the foregoing reportable positions and related information
to CFE in a form and manner prescribed by CFE. CFE also proposes to
amend subparagraph (d) to CFE Rule 308 (Consent to Exchange
Jurisdiction) by adding CFE Rule 412B(b) to the list of CFE Rules that
are applicable to non-TPHs.
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\3\ CFE Rule 155 defines the term ``Person'' to mean any natural
person, association, partnership, limited liability company, joint
venture, trust or corporation.
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The scope of this filing is limited solely to the application of
the rule changes to security futures traded on CFE. The only security
futures currently traded on CFE are traded under Chapter 16 of CFE's
Rulebook which is applicable to Individual Stock Based and Exchange-
Traded Fund Based Volatility Index (``Volatility Index'') security
futures.
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.
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 the proposal is to add new subparagraph (b) to CFE
Rule 412B (Reportable Positions) to make clear that Persons that are
not CFE TPHs and that are required by CFTC regulations to report to the
CFTC reportable positions and related information relating to CFE
security futures contracts are obligated to also report the foregoing
reportable positions and related information to CFE in a form and
manner prescribed by CFE. CFE also proposes to amend subparagraph (d)
to CFE Rule 308 (Consent to Exchange Jurisdiction) by including a
citation to CFE Rule 412B(b) in the list of CFE Rules that are
applicable to non-TPHs.
Under the CFTC's large trader reporting system (``LTRS''), futures
commission merchants and others are required to file daily reports with
the CFTC under Part 17 of the CFTC's regulations.\4\ There are two
components to the LTRS for all futures accounts. The first component is
a reporting of futures and options on futures positions of traders with
positions at or above specific reporting levels. The second component
is the filing of CFTC Form 102 (Identification of Special Accounts)
which is used to identify each new account that acquires a reportable
position.
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\4\ 17 U.S.C. 15.03(b).
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CFE Rule 412B already provides that TPHs are required to report to
CFE in a form and manner prescribed by CFE reportable positions and
related information relating to CFE contracts that TPHs are obligated
to report to the CFTC pursuant to CFTC regulations. However, CFE Rule
412B does not currently explicitly state that this requirement is
applicable to non-TPHs, such as foreign brokers, that are required to
report to the CFTC reportable security futures positions and related
information concerning to CFE contracts. The purpose of this proposal
is to make clear that this requirement would be applicable to those
parties.
To affect this change, CFE proposes to add below new paragraph (b)
to CFE Rule 412B:
(b) Any Person that is not a Trading Privilege Holder and that is
required to report to the [CFTC] pursuant to [CFTC] regulations
reportable positions and related information relating to Exchange
Contracts shall report the foregoing reportable positions and related
information to the Exchange in a form and manner prescribed by the
Exchange.
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 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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The Exchange believes that the proposed rule change would
strengthen its ability to carry out its self-regulatory obligations.
Specifically, CFE needs to receive reportable positions and related
information in a form and manner that will allow its seamless
integration into the market surveillance program and systems utilized
by CFE and its regulatory services provider. The proposal will
facilitate CFE's ability to receive reportable positions and related
information related to CFE security futures contracts in this manner
from non-TPHs that are required to report this information to the CFTC.
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. The Exchange
[[Page 16731]]
believes that the proposed rule change is equitable and not unfairly
discriminatory because it makes clear that Persons that are not CFE
TPHs and that are required by CFTC regulations to report to the CFTC
reportable positions and related information relating to CFE contracts
are obligated to also report the foregoing reportable positions and
related information to CFE in a form and manner prescribed by CFE. This
is the same reporting requirement that applies that CFE TPHs.
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 March 18, 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.\7\
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\7\ 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-2013-003 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-2013-003. 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
10:00 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-2013-003,
and should be submitted on or before April 8, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-06156 Filed 3-15-13; 8:45 am]
BILLING CODE 8011-01-P