[Federal Register Volume 80, Number 217 (Tuesday, November 10, 2015)]
[Notices]
[Pages 69741-69745]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-28504]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-76354; File No. SR-CBOE-2015-099]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing of a Proposed Rule Change To List and
Trade Options That Overlie a Reduced Value of the FTSE China 50 Index
November 4, 2015.
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 October 30, 2015, 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 is proposing to amend its rules to list and trade
options that overlie a reduced value of the FTSE China 50 Index.
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 purpose of this proposed rule change is to permit the Exchange
to list and trade options that overlie a reduced value of the FTSE
China 50 Index (``China 50 options''). China 50 options would be A.M.,
cash-settled contracts with European-style exercise.
FTSE China 50 Index Design, Methodology and Dissemination
The FTSE China 50 Index is a free float-adjusted market
capitalization index that is designed to measure the performance of 50
of the largest and most liquid Chinese stocks (H Shares,\3\ Red Chips
\4\ and P Chips \5\) listed and trading on the Stock Exchange of Hong
Kong (SEHK).\6\
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\3\ H Shares are securities of companies incorporated in the
People's Republic of China (PRC) and listed on SEHK. They can only
be traded by Chinese investors under the Qualified Domestic
Institutional Investors Scheme (QDII). There are no restrictions for
international investors.
\4\ Red Chip companies are incorporated outside the PRC and
traded on SEHK. A Red Chip company has at least 30 percent of its
shares in aggregate held directly or indirectly by mainland state
entities, and at least 50 percent of its revenue or assets derived
from mainland China.
\5\ P Chip companies are incorporated outside the PRC that trade
on SEHK. A P Chip is a company that is controlled by Mainland China
individuals, with the establishment and origin of the company in
Mainland China and at least 50 percent of its revenue or assets
derived from mainland China.
\6\ See FTSE China 50 Index fact sheet (dated August 31, 2015)
located at: http://www.ftse.com/Analytics/FactSheets/temp/a5b0d638-068e-41d9-b169-be9838d8227a.pdf.
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The FTSE China 50 Index was launched on April 19, 2001 and is
[[Page 69742]]
calculated by FTSE International Limited (``FTSE''), which is a
provider of investment support tools. The FTSE China 50 Index is
calculated and published on a real-time basis in Hong Kong dollars
during Hong Kong trading hours. The methodology used to calculate the
FTSE China 50 Index is similar to the methodology used to calculate the
value of other benchmark market-capitalization weighted indexes.
Specifically, the FTSE China 50 Index is governed by the FTSE Ground
Rules for the FTSE China 50 Index.\7\ The level of the FTSE China 50
Index reflects the free float-adjusted market value of the component
stocks relative to a particular base date and is computed by dividing
the total market value of the companies in the FTSE China 50 Index by
the index divisor.
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\7\ Summary and comprehensive information about the FTSE China
50 Index methodology may be reviewed at: http://www.ftse.com/products/downloads/FTSE_China_50_Index_ English_.pdf?154).
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The FTSE China 50 Index is monitored and maintained by FTSE.
Adjustments to the FTSE China 50 Index could be made on a daily basis
with respect to corporate events and dividends. FTSE reviews the FTSE
China 50 Index quarterly (March, June, September and December)
according to rules for inserting and deleting companies that ``are
designed to provide stability in the selection of constituents of the
FTSE China 50 Index while ensuring that the [FTSE China 50] Index
continues to be representative of the market by including or excluding
those companies which have risen or fallen significantly.'' \8\
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\8\ See id.
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Real-time data is distributed at least every 15 seconds while the
index is being calculated using FTSE's real-time calculation engine to
Bloomberg L.P. (``Bloomberg''), Thomson Reuters (``Reuters'') and other
major vendors. End of day data is distributed daily to clients through
FTSE as well as through major quotation vendors, including Bloomberg
and Reuters.
The Exchange proposes to base trading in options on a fraction of
the full size FTSE China 50 Index. In particular, the Exchange proposes
to list FTSE China 50 options that are based on one one-hundredth of
the value of the FTSE China 50 Index. The Exchange believes that
listing options on the reduced value of the index will attract a
greater source of customer business than if options were based on the
full value of the FTSE China 50 Index. The Exchange further believes
that listing options on a reduced value of the FTSE China 50 Index will
provide an opportunity for investors to hedge, or speculate on, the
market risk associated with the stocks comprising the FTSE China 50
Index. Additionally, by reducing the value of the FTSE China 50 Index,
investors will be able to use this trading vehicle while extending a
smaller outlay of capital. The Exchange believes this should attract
additional investors, and, in turn, create a more active and liquid
trading environment.
Initial and Maintenance Listing Criteria
The FTSE China 50 Index meets the definition of a broad-based index
as set forth in Rule 24.1(i)(1).\9\ In addition, the Exchange proposes
to create specific initial and maintenance listing criteria for options
on the reduced value of the FTSE China 50 Index. Specifically, the
Exchange proposes to add new Interpretation and Policy .02(a) to Rule
24.2, Designation of the Index, to provide that the Exchange may trade
China 50 options if each of the following conditions is satisfied: (1)
The index is broad-based, as defined in Rule 24.1(i)(1); (2) Options on
the index are designated as A.M.-settled index options; (3) The index
is capitalization-weighted, price-weighted, modified capitalization-
weighted or equal dollar-weighted; (4) The index consists of 45 or more
component securities; (5) Each of the component securities of the index
will have a market capitalization of greater than $100 million; (6) No
single component security accounts for more than fifteen percent (15%)
of the weight of the index, and the five highest weighted component
securities in the index do not, in the aggregate, account for more than
fifty percent (50%) of the weight of the index; (7) Non-U.S. component
securities (stocks or ADRs) that are not subject to comprehensive
surveillance agreements do not, in the aggregate, represent more than
twenty percent (20%) of the weight of the Index; (8) The Exchange may
continue to trade China 50 options after trading in all component
securities has closed for the day and the index level is no longer
widely disseminated at least once every fifteen (15) seconds by one or
more major market data vendors, provided that China 50 futures
contracts are trading and prices for those contracts may be used as a
proxy for the current index value; (9) The Exchange reasonably believes
it has adequate system capacity to support the trading of options on
the index, based on a calculation of the Exchange's current Independent
System Capacity Advisor (ISCA) allocation and the number of new
messages per second expected to be generated by options on such index;
and (10) The Exchange has written surveillance procedures in place with
respect to surveillance of trading of options on the index.
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\9\ Rule 24.1(i)(1) defines a broad-based index to mean an index
designed to be representative of a stock market as a whole or of a
range of companies in unrelated industries.
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Additionally, the Exchange proposes to add new Interpretation and
Policy .02(b) to Rule 24.2, Designation of the Index, to set forth the
following maintenance listing standards for China 50 Options: (1) The
conditions set forth in subparagraphs .02(a) (1), (2), (3), (4), (7),
(8), (9) and (10) must continue to be satisfied. The conditions set
forth in subparagraphs .02(a)(5) and (6) must be satisfied only as of
the first day of January and July in each year; and (2) The total
number of component securities in the index may not increase or
decrease by more than ten percent (10%) from the number of component
securities in the index at the time of its initial listing. In the
event a class of index options listed on the Exchange fails to satisfy
the maintenance listing standards set forth herein, the Exchange shall
not open for trading any additional series of options of that class
unless the continued listing of that class of index options has been
approved by the Commission under Section 19(b)(2) of the Exchange Act.
The Exchange believes that A.M. settlement is appropriate for China
50 options due to the nature of the index that encompasses the Chinese
market. The components of the FTSE China 50 Index open with the start
of trading on the SEHK at approximately 8:30 p.m. (Chicago time) (prior
day) and close with the end of trading on the SEHK at approximately
3:00 a.m. (Chicago time) (next day). The closing FTSE China 50 Index
level is distributed by FTSE between approximately 3:00 a.m. and 4:00
a.m. (Chicago time) each trading day. Thus, between 8:30 a.m. and 3:15
p.m. (Chicago time) the FTSE China 50 Index level is a static value
that market participants can access via data vendors.
As a result, there will not be a current FTSE China 50 Index level
calculated and disseminated while China 50 options would be traded.\10\
However, the E-Mini FTSE China 50 Index future contracts based on the
FTSE China 50 Index that trades on CME will be trading during this time
period.\11\ The Exchange
[[Page 69743]]
believes that the E-Mini FTSE China 50 Index futures prices would be a
proxy for the current FTSE China 50 Index level. Therefore, the
Exchange believes that China 50 options should be permitted to trade
after trading in all component securities has closed for the day and
the index level is no longer widely disseminated at least once every
fifteen (15) seconds by one or more major market data vendors, provided
that E-Mini FTSE China 50 Index future contracts are trading and prices
for those contracts may be used as a proxy for the current index value.
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\10\ The trading hours for China 50 options are from 8:30 a.m.
(Chicago time) to 3:15 p.m. (Chicago time).
\11\ The trading hours for E-Mini FTSE China 50 Index Futures
are from 5:00 p.m. (Chicago time) to 4:00 p.m. (Chicago time) the
following day, Sunday through Friday. See E-Mini FTSE China 50 Index
Future Contract specifications located at: http://www.cmegroup.com/education/files/e-mini-ftse-china-50-index-futures.pdf. The Exchange
believes E-Mini FTSE China 50 Index Futures are an appropriate proxy
for China 50 options.
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Because the FTSE China 50 Index is comprised of 50 of the largest
and most liquid Chinese stocks traded on the SEHK, the Exchange
believes that the initial listing requirements are appropriate to trade
options on this index. In addition, similar to other broad based
indexes, the Exchange proposes various maintenance requirements, which
require continual compliance and periodic compliance.
Options Trading
Exhibit 3 presents contract specifications for China 50 options.
The contract multiplier for China 50 options would be $100. China
50 options would be quoted in index points and one point would equal
$100. The minimum tick size for series trading below $3 would be 0.05
($5.00) and at or above $3 will be 0.10 ($10.00).
Initially, the Exchange would list in-, at- and out-of-the-money
strike prices. Additional series may be opened for trading as the
underlying index level moves up or down.\12\ The minimum strike price
interval for China 50 options series would be 2.5 points if the strike
price is less than 200. When the strike price is 200 or above, strike
price intervals would be no less than 5 points.\13\ New series would be
permitted to be added up to the fifth business day prior to
expiration.\14\
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\12\ See Rules 24.9(d) and 24.9.04. These rules set forth the
criteria for listing additional series of the same class as the
current value of the underlying index moves. Generally, additional
series must be ``reasonably related'' to the current index value,
which means that strike prices must be within 30% of the current
index value. Series exceeding the 30% range may be listed based on
demonstrated customer interest.
\13\ See proposed amendments to Rule 24.9.01(a) adding China 50
options as a class eligible for 2.5 point minimum strike intervals
if the strike price is below 200.
\14\ See Rule 24.9.01(c).
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The Exchange would be permitted to list up to twelve near-term
expiration months.\15\ The Exchange would also be permitted to list up
to ten expirations in Long-Term Index Option Series (``LEAPS'') on the
reduced value of the FTSE China 50 index and the index would be
eligible for all other expirations permitted for other broad-based
index options, e.g., End of Week/End of Month Expirations, Short Term
Option Series and Quarterly Option Series.\16\
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\15\ See proposed amendments to Rule 24.9(a)(2). The Exchange is
proposing to allow the listing of up to twelve expiration months at
any one time for China 50 options.
\16\ See e.g., Rules 24.9(b) (LEAPS), 24.9(e) (End of Week/End
of Month Expirations), 24.9(a)(2)(A) (Short Term Option Series) and
24.9(a)(2)(B) (Quarterly Option Series). See also, proposed Rule
24.9(b)(2)(A)(lxxxvi) (listing LEAPS on the reduced value of the
FTSE China 50 Index).
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The trading hours for China 50 options would be from 8:30 a.m.
(Chicago time) to 3:15 p.m. (Chicago time).\17\
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\17\ See Rule 24.6.
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Exercise and Settlement
The proposed China 50 options would expire on the third Friday of
the expiring month.\18\ Trading in expiring China 50 options would
cease at 3:15 p.m. (Chicago time) one business day prior (usually a
Thursday) to the day on which the exercise-settlement value is
calculated (usually a Friday). When the last trading day/expiration
date is moved because of an Exchange holiday or closure, the last
trading day/expiration date for expiring options would be the
immediately preceding business day.
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\18\ See proposed Rule 24.9(a)(3) (listing the reduced value
FTSE China 50 Index as a European-style index option approved for
trading on the Exchange).
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Exercise would result in delivery of cash on the business day
following expiration. China 50 options would be A.M.-settled, in that
the expiring contract would cease trading on the business day (usually
a Thursday) before the expiration date (generally a Friday).\19\ The
exercise settlement value would be one-hundredth (1/100th) of the
official closing value of the FTSE China 50 Index as reported by FTSE
on the last trading day of the expiring contract, which occurs between
approximately 3:00 a.m. and 4:00 a.m. (Chicago time).\20\
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\19\ See proposed amendment to Rule 24.1.01 to identify FTSE
International Limited as the Reporting Authority for the FTSE China
50 Index. As the designated Reporting Authority for the index, the
disclaimers set forth in Rule 24.14 (Disclaimers) would apply to
FTSE International Limited.
\20\ See proposed amendment to Rule 24.9(a)(4) to specify that
for China 50 options the current index value at expiration is based
on the closing prices of the underlying securities on the last
trading day. The last day of trading continues to be the business
day preceding the last day of trading in the underlying securities
prior to expiration because the business day preceding the last day
of trading in the underlying securities is (generally) Thursday
Chicago time and the last day of trading in the underlying
securities is (generally) Friday Chicago time.
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The exercise settlement amount would be equal to the difference
between the exercise-settlement value and the exercise price of the
option, multiplied by the contract multiplier ($100).
If the exercise settlement value is not available or the normal
settlement procedure cannot be utilized due to a trading disruption or
other unusual circumstance, the settlement value would be determined in
accordance with the rules and bylaws of The Options Clearing
Corporation (``OCC'').\21\
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\21\ See Rule 24.7.
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Position and Exercise Limits
The Exchange proposes to apply the default position limits for
broad-based index options to China 50 options. Specifically, the chart
set forth in Rule 24.4(a), Position Limits for Broad-Based Index
Options, provides that the positions limits applicable to ``other
broad-based indexes'' is 25,000 contracts (standard limit/on the same
side of the market) and 15,000 contracts (near-term limit). Pursuant to
Rule 24.5, Exercise Limits, the exercise limits for China 50 options
would be equivalent to the position limits for China 50 options. All
position limit hedge exemptions would apply.
Margin
The Exchange proposes that China 50 options be margined as ``broad-
based index'' options, and under CBOE rules, especially, Rule
12.3(c)(5)(A), the margin requirement for a short put or call shall be
100% of the current market value of the contract plus 15% of the
``product of the current index group value and the applicable index
multiplier,'' reduced by any out-of-the-money amount. There would be a
minimum margin requirement of 100% of the current market value of the
contract plus: 10% of the aggregate put exercise price amount in the
case of puts, and 10% of the product of the current index group value
and the applicable index multiplier in the case of calls. Additional
margin may be required pursuant to Rules 12.3(h) and 12.10 (Margin
Required is Minimum).
The Exchange believes that FTSE China 50 Index options are an
eligible product for portfolio margining under CBOE Rule 12.4.
Accordingly, the
[[Page 69744]]
Exchange proposes that FTSE China 50 Index options be allowed in
portfolio margin accounts. In the portfolio margining construct, a
Class Group for the FTSE China 50 Index already exists and it is
contained within the China Indexes Product Group. This Product Group is
a non-high capitalization, broad-based index Product Group. In
portfolio margin accounts, the assumed market moves currently utilized
in the China Indexes Product Group (which would not be changing) are -
10%/+10%, with a 100% offset of gains and losses between all products
in the same Class Group. There is a 90% offset of gains and losses
between Class Groups.\22\
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\22\ A table detailing the currently existing portfolio
margining Product Groups and their component class groups can be
found at http://www.optionsclearing.com/components/docs/risk-management/cpm/cpm_parameters.pdf.
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Exchange Rules Applicable
Except as modified herein, the rules in Chapters I through XIX,
XXIV, XXIVA, and XXIVB would equally apply to China 50 options. China
50 options would be subject to the same rules that currently govern
other CBOE index options, including sales practice rules,\23\, margin
requirements \24\ and trading rules.\25\
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\23\ See Chapter IX (Doing Business with the Public).
\24\ See Chapter XII (Margins).
\25\ See e.g., Chapters IV (Business Conduct), VI (Doing
Business on the Exchange Floor), Chapter VIII (Market-Makers,
Trading Crowds and Modified Trading Systems) and Chapter XXIV (Index
Options).
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The Exchange hereby designates China 50 options as eligible for
trading as Flexible Exchange Options as provided for in Chapters XXIVA
(Flexible Exchange Options) and XXIVB (FLEX Hybrid Trading System).\26\
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\26\ See proposed amendments to Rules 24A.7, Position Limits and
Reporting Requirements, and 24B.7, Position Limits and Reporting
Requirements, providing that the position limits for FLEX Index
options on the FTSE China 50 Index would be equal to the position
limits for Non-FLEX options on the Index. Per existing Rules 24A.8,
Exercise Limits, and 24B.8, Exercise Limits, the exercise limits for
FLEX China 50 options would be equivalent to the position limits for
FLEX China 50 options.
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Surveillance and Capacity
The Exchange represents that it has an adequate surveillance
program in place for China 50 options and intends to use the same
surveillance procedures currently utilized for each of the Exchange's
other index options to monitor trading in China 50 options.
The Exchange is a member of the Intermarket Surveillance Group
(``ISG''), which ``is comprised of an international group of exchanges,
market centers, and market regulators.'' \27\ The purpose of the ISG is
to provide a framework for the sharing of information and the
coordination of regulatory efforts among exchanges trading securities
and related products to address potential intermarket manipulations and
trading abuses. The ISG plays a crucial role in information sharing
among markets that trade securities, options on securities, security
futures products, and futures and options on broad-based security
indexes. A list identifying the current ISG members is available at:
https://www.isgportal.org/home.html.
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\27\ See Intermarket Surveillance Group Web site, available at
https://www.isgportal.org/home.html.
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The Exchange is also an affiliate member of the International
Organization of Securities Commissions (``IOSCO''), which has members
from over 100 different countries. The Hong Kong Securities and Futures
Commission, the regulator of the market on which the constituent
securities trade, is also a member of IOSCO.\28\ A list identifying the
current ordinary IOSCO members is available at: http://www.iosco.org/about/?subsection=membership&memid=1. Finally, the Exchange has entered
into various comprehensive surveillance agreements (``CSAs'') and/or
Memoranda of Understanding with various stock exchanges, including the
Stock Exchange of Hong Kong. Given the capitalization of the FTSE China
50 Index and the deep and liquid markets for the securities underlying
the Index, the concerns for market manipulation and/or disruption in
the underlying markets are greatly reduced.
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\28\ There are three categories of IOSCO members: Ordinary,
associate and affiliate. In general, the ordinary members (124) are
the national securities commissions in their respective
jurisdictions. Associate members (17) are usually agencies or
branches of government, other than the principal national securities
regulator in their respective jurisdictions that have some
regulatory competence over securities markets, or intergovernmental
international organizations and other international standard-setting
bodies, such as the IMF and the World Bank, with a mission related
to either the development or the regulation of securities markets.
Affiliate members (64) are self-regulatory organizations, stock
exchanges, financial market infrastructures, investor protection
funds and compensation funds, and other bodies with an appropriate
interest in securities regulation. See IOSCO Fact Sheet located at:
http://www.iosco.org/about/pdf/IOSCO-Fact-Sheet.pdf.
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The Exchange notes that FTSE China 50 ETFs, such as the iShares
China Large-Cap ETF (FXI), are actively traded products. CBOE also
lists options overlying those ETFs (FXI options) and those options are
actively traded as well.
CBOE has analyzed its capacity and represents that it believes the
Exchange and the Options Price Reporting Authority (``OPRA'') have the
necessary systems capacity to handle the additional traffic associated
with the listing of new series that would result from the introduction
of China 50 options. Because the proposal is limited to one new class,
the Exchange believes that the additional traffic that would be
generated from the introduction of China 50 options would be
manageable.
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.\29\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \30\ 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.
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\29\ 15 U.S.C. 78f(b).
\30\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposed rule change will further
the Exchange's goal of introducing new and innovative products to the
marketplace. Currently, the Exchange believes that there is unmet
market demand for exchange-listed options listed on this popular cash
index. As described above, the iShares China Large-Cap ETF is an
actively traded product, as are the options on that ETF. E-Mini FTSE
China 50 Index Futures are listed for trading on CME. As a result, CBOE
believes that China 50 options are designed to provide different and
additional opportunities for investors to hedge or speculate on the
market risk on the FTSE China 50 Index by listing an option directly on
the FTSE China 50 Index.
The Exchanges believes that the FTSE China 50 Index is not easily
susceptible to manipulation. The index is a broad-based index and has
high market capitalization. The FTSE China 50 Index is comprised of 50
of the largest and most liquid Chinese stocks traded on the SEHK and no
single component comprises more than 15% of the index, making it not
easily subject to market manipulation.
Additionally, the iShares China Large-Cap ETF is an actively traded
product, as are options on that ETF. Because the index has 50 of the
largest and most liquid Chinese stocks that trade on the
[[Page 69745]]
SEHK and trade a large volume with respect to ETFs and options on those
ETFs, the Exchange believes that the initial listing requirements are
appropriate to trade options on the index. In addition, similar to
other broad-based indexes, the Exchange proposes to adopt various
maintenance criteria, which would require continual compliance and
periodic compliance.
China 50 options would be subject to the same rules that currently
govern other CBOE index options, including sales practice rules,\31\
margin requirements \32\ and trading rules.\33\ The Exchange would
apply the same default position limits for broad-based index options to
China 50 options. Specifically, the applicable position limits would be
25,000 contracts (standard limit/on the same side of the market) and
15,000 contracts (near-term limit). The exercise limit for China 50
options would be equivalent to the position limit for China 50 options.
These same position and exercise limits would apply to FLEX trading.
All position limit hedge exemptions would apply. The Exchange would
apply existing index option margin requirements for the purchase and
sale of China 50 options.
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\31\ See Chapter IX (Doing Business with the Public).
\32\ See Chapter XII (Margins).
\33\ See e.g., Chapters IV (Business Conduct), VI (Doing
Business on the Exchange Floor), Chapter VIII (Market-Makers,
Trading Crowds and Modified Trading Systems) and Chapter XXIV (Index
Options).
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The Exchange represents that it has an adequate surveillance
program in place for China 50 options. The Exchange also represents
that it has the necessary systems capacity to support the new option
series.
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 not necessary or appropriate in furtherance of
the purposes of the Act. Specifically, CBOE believes that the
introduction of new cash index options will enhance competition among
market participants and will provide a new type of options to compete
with domestic products such as FXI options, E-Mini FTSE China 50 Index
Future and European-traded derivatives on the FTSE China 50 Index to
the benefit of investors and the marketplace.
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
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the Exchange 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-2015-099 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-CBOE-2015-099. 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 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-2015-099 and should be
submitted on or before December 1, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\34\
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\34\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-28504 Filed 11-9-15; 8:45 am]
BILLING CODE 8011-01-P