[Federal Register Volume 80, Number 149 (Tuesday, August 4, 2015)]
[Notices]
[Pages 46357-46359]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-19016]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-75548; File No. SR-CBOE-2015-070]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change Relating To Amending Its Simple Auction Liaison
(``SAL'') Rule
July 29, 2015.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of
1934,\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on
July 24, 2015, Chicago Board Options Exchange, Incorporated
(``Exchange'' or ``CBOE'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I and II 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 is proposing to amend its SAL rule to make it explicit
that 6.13A(d) applies to Hybrid 3.0 classes.
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, the Proposed Rule Change
1. Purpose
The Exchange is proposing to amend language to clarify that certain
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provisions of its SAL rule apply to select option classes. The
operation of the Exchange's SAL rule is codified in Rule 6.13A. The
purpose of this proposed change is to clarify that the provisions found
in 6.13A(d) apply to Hybrid 3.0 classes. The original filing \3\ which
introduced SAL for the Hybrid 3.0 classes stated that the provisions of
Rule 6.13A will apply, however, the Exchange is proposing to amend Rule
6.13A to add clarity and avoid confusion by making this more explicit.
The Exchange believes that the proposed changes will bring added
clarity to its Trading Permit Holders (``TPHs'') regarding the SAL rule
and which classes it applies to.
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\3\ See Securities Exchange Release No. 56951 (December 12,
2007), 72 FR 71977 (December 19, 2007) (SR-CBOE-2007-074).
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Currently, Rule 6.13A(d) states that an auction will terminate
early under certain circumstances related to the Hybrid System.\4\ As
an administrative clean-up change, the Exchange is proposing to add
language to 6.13A.04 to specifically state that the same circumstances
that may cause an auction to terminate early under 6.13A(d) also apply
to Hybrid 3.0 classes. The Exchange believes that adding this language
will bring greater clarity to the Exchange Rules.
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\4\ See Exchange Rule 6.13A(d).
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The Exchange believes the proposed change will allow the Exchange
to clarify that Rule 6.13A(d) applies to Hybrid 3.0 classes as well.
The proposed change will allow the Exchange to remove the ambiguity of
its rule text regarding SAL in order to lessen confusion about which
provisions apply to Hybrid 3.0 classes. In addition, the Exchange
believes the lack of explicit reference to 6.13A(d) applying to Hybrid
3.0 classes is somewhat ambiguous and has the potential to cause
confusion. Thus, the Exchange believes by further clarifying the
language, it will be clearer which SAL provisions apply to Hybrid 3.0
classes.
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.\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 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.
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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
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In particular, the proposed rule change is consistent with these
provisions as it will more accurately reflect the intentions of the
Exchange for 6.13A(d) to apply to Hybrid 3.0 classes. The purpose of
the proposed change is to add clarity to the rule text, however, the
current practices of the Exchange will remain the same. The Exchange
believes the proposed rule change will help avoid confusion, thereby
removing impediments to and perfecting the mechanism of a free and open
market and national market system.
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. The Exchange does not believe
that the proposed rule change imposes any burden on intramarket
competition because it applies to all TPHs. SAL will continue to
function in the same manner as it currently functions. Furthermore, the
Exchange does not believe that the proposed rule change imposes any
burden on intermarket competition because it specifies that paragraph
(d): (1) Will apply to all classes activated in Hybrid 3.0; (2) applies
equally to all intermarket users and; (3) otherwise just makes
technical changes to improve readability.
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
Because the foregoing proposed rule change does not:
A. Significantly affect the protection of investors or the public
interest;
B. impose any significant burden on competition; and
C. become operative for 30 days from the date on which it was
filed, or such shorter time as the Commission may designate, it has
become effective pursuant to Section 19(b)(3)(A) of the Act \7\ and
Rule 19b-4(f)(6) \8\ 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 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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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6).
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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-CBOE-2015-070 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-CBOE-2015-070. 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
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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; 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-CBOE-2015-070 and should be
submitted on or before August 25, 2015.
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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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-19016 Filed 8-3-15; 8:45 am]
BILLING CODE 8011-01-P