80 FR 12671 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of a Proposed Rule Change Related to Equipment and Communication on the Exchange's Trading Floor

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 46 (March 10, 2015)

Page Range		12671-12675
FR Document		2015-05484
Federal Register, Volume 80 Issue 46 (Tuesday, March 10, 2015)
[Federal Register Volume 80, Number 46 (Tuesday, March 10, 2015)]
[Notices]
[Pages 12671-12675]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-05484]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74438; File No. SR-CBOE-2015-022]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing of a Proposed Rule Change Related to 
Equipment and Communication on the Exchange's Trading Floor

March 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 February 20, 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 the 
Substance of the Proposed Rule Change

    The Exchange seeks to amend its rules related to equipment and 
communication on the Exchange's trading floor

(additions are italicized; deletions are [bracketed])
* * * * *

Chicago Board Options Exchange, Incorporated Rules

* * * * *
Rule 6.23. [Trading Permit Holder Wires From Floor] Equipment and 
Communications on the Trading Floor
    (a) Subject to the requirements of this Rule Trading Permit Holders 
may use any communication device (e.g., any hardware or software 
related to a phone, system or other device, including an instant 
messaging system, email system or similar device) on the floor of the 
Exchange and in any trading crowd of the Exchange. The Exchange 
reserves

[[Page 12672]]

the right to designate certain portions of this rule as not applicable 
to certain classes on a class by class basis.
    (b) The Exchange may deny, limit or revoke the use of any 
communication device whenever it determines that use of such 
communication device: (1) interferes with the normal operation of the 
Exchange's own systems or facilities or with the Exchange's regulatory 
duties, (2) is inconsistent with the public interest, the protection of 
investors or just and equitable principles of trade, or (3) interferes 
with the obligations of a Trading Permit Holder to fulfill its duties 
under, or is used to facilitate any violation of, the Securities 
Exchange Act or rules thereunder, or Exchange rules.
    (c) Any communication device may be used on the floor of the 
Exchange and in any trading crowd of the Exchange to receive orders, 
provided that audit trail and record retention requirements of the 
Exchange are met; however, no person in a trading crowd or on the floor 
of the Exchange may use any communication device for the purpose of 
recording activities in the trading crowd or maintaining an open line 
of continuous communication whereby a non-associated person not located 
in the trading crowd may continuously monitor the activities in the 
trading crowd. This prohibition covers digital recorders, intercoms, 
walkie-talkies and any similar devices.
    (d) After providing notice to an affected Trading Permit Holder and 
complying with applicable laws, the Exchange may provide for the 
recording of any telephone line on the floor of the Exchange or may 
require Trading Permit Holders at any time to provide for the recording 
of a fixed phone line on the floor of the Exchange. Trading Permit 
Holders, and their clerks, using the telephones consent to the Exchange 
recording any telephone or line.
    (e) Trading Permit Holders may not use communication devices to 
disseminate quotes and/or last sale reports originating on the floor of 
the Exchange in any manner that would serve to provide a continuous or 
running state of the market for any particular series or class of 
options over any period of time; provided, however, that an associated 
person of a Trading Permit Holder on the floor of the Exchange may use 
a communication device to communicate quotes that have been 
disseminated pursuant to Rule 6.43 and/or last sale reports to other 
associated persons of the same Trading Permit Holder business unit. An 
associated person of a Trading Permit Holder may also use a 
communications device to communicate an occasional, specific quote that 
has been disseminated pursuant to Rule 6.43 or last sale report to a 
person who is not an associated person of the same Trading Permit 
Holder.
    (f) Use of any communications device for order routing or handling 
must comply with all applicable laws, rules, policies and procedures of 
the Securities and Exchange Commission and the Exchange including 
related to record retention and audit trail requirements. Orders must 
be systemized using Exchange systems or proprietary systems approved by 
the Exchange in accordance with Rule 6.24.
    (g) Trading Permit Holders must maintain records of the use of 
communication devices, including, but not limited to, logs of calls 
placed; emails; and chats, for a period of not less than three years, 
the first two years in an easily accessible place. The Exchange 
reserves the right to inspect such records pursuant to Rule 17.2
    (h) The Exchange may designate, via circular, specific 
communication devices that will not be permitted on the floor of the 
Exchange or Exchange trading crowds. In addition, the Exchange may 
designate other operational requirements regarding the installation of 
any communication devices via circular.
    [(a) No Trading Permit Holder shall establish or maintain any 
telephone or other wire communications between his or its office and 
the Exchange without prior approval by the Exchange. The Exchange may 
direct discontinuance of any communication facility terminating on the 
floor of the Exchange.
    (b) Equity Option Telephone Policy. Persons in the equity option 
trading crowds (including DPM crowds which trade equity options) may 
have access to outside telephone lines and may receive telephone orders 
directly at equity options posts from locations outside the Exchange, 
subject to certain requirements. The Exchange will review and may 
approve any applications to install or to use telephones in the equity 
option crowds.
    (1) Requirements and conditions that apply to the use of telephone 
services at the equity option posts shall include the following:
    (A) Only those quotations that have been publicly disseminated 
pursuant to Rule 6.43 may be provided over telephones at the post.
    (B) Trading Permit Holders may give their clerks their PIN access 
code. Although both Trading Permit Holders and clerks may use 
telephones, Trading Permit Holders will have priority. Each Trading 
Permit Holder will be responsible for all calls made using that Trading 
Permit Holder's PIN access code.
    (C) Clerks will not be permitted to establish a base of operation 
utilizing general use telephones at the equity option posts. This 
means, for example, that a clerk may not monopolize the use of a 
telephone receiver on a telephone that has multiple lines if all of 
those lines are not dedicated to the Trading Permit Holder for whom the 
clerk works.
    (D) The Exchange may provide for the taping of any telephone line 
into the equity option posts or may require Trading Permit Holders to 
provide for the tape recording of a dedicated line at the equity option 
posts at any time. Trading Permit Holders and their clerks using the 
telephones consent to the Exchange tape recording any telephone or 
line.
    (E) The telephones may be used for voice service only, unless they 
have been specifically approved for other uses.
    (F) The Exchange may prohibit the use of any telephone technology 
that interferes with the normal operation of the Exchange's own systems 
or facilities or that the Exchange determines interferes with its 
regulatory duties.
    (G) Orders transmitted by registered Exchange market-makers may be 
entered over the outside telephone lines directly to the equity option 
posts. All other orders may be entered over the outside telephone lines 
to the equity option posts only during outgoing telephone calls that 
are initiated at the equity option posts.
    (H) Only those individuals that are properly qualified in 
accordance with Chapter IX of the Rules of the Exchange, and all other 
applicable rules and regulations, may accept orders from public 
customers pursuant to this Rule.
    . . . Interpretations and Policies:
    .01 A Trading Permit Holder or TPH organization which has been 
granted approval of any means of communication under this rule shall be 
responsible for assuring compliance with all Exchange rules and 
requirements in connection with any business conducted by means of such 
electronic or telephonic communication.]
* * * * *
    The text of the proposed rule change is also 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.

[[Page 12673]]

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 its rules regarding equipment 
and communication on the Exchange trading floor. More specifically, the 
Exchange is proposing to delete the current rule on the topic, Exchange 
Rule 6.23, and introduce more relevant rules governing the use of 
communication devices \3\ on the Exchange trading floor.\4\ Exchange 
and Trading Permit Holder (``TPH'') systems have become much more 
electronic since the adoption of CBOE Rule 6.23; however, the rule has 
not been updated to reflect the electronic environment. The Exchange 
believes it is in the interest of TPHs to allow electronic 
communications to and from the Exchange trading floor and that these 
amendments will eliminate confusion that may arise from outdated 
Exchange rules. As such, the Exchange believes that eliminating the 
current rule in its entirety and promulgating language that 
contemplates modern rules is appropriate.\5\
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    \3\ As proposed, ``communication device'' will include ``e.g., 
any hardware or software related to a phone, system or other device, 
including an instant messaging system, email system or similar 
device[.]''
    \4\ Although the Exchange seeks to replace Rule 6.23 in its 
entirety, portions of the current rule are included in proposed Rule 
6.23. The relevant holdover language is identified where applicable.
    \5\ Many of the provisions of proposed Rule 6.23 are modeled 
after NYSE Amex LLC (``Amex'') Rule 902NY(i)--Telephones on the 
Trading Floor and NYSE Arca, Inc. (``Arca'') Rule 6.(h) [sic]--
Telephones on the Options Floor.
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    First, Rule 6.23 is currently applicable to ``telephone or other 
wire communications.'' \6\ Proposed Rule 6.23(a) expands the 
applicability of Rule 6.23 and provides that TPHs may use any 
communication device \7\ on the Exchange trading floor and in any 
Exchange trading crowd subject to the restrictions in proposed Rule 
6.23. The Exchange is also proposing to apply these restrictions on a 
class by class basis. The Exchange believes this discretion is 
appropriate as different classes of options on the trading floor behave 
differently, and, as such, different means of communication might be 
more appropriate in one options class but not in another.
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    \6\ See CBOE Rule 6.23(a).
    \7\ See supra note 1 [sic].
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    Next, proposed Rule 6.23(b) specifically states that the Exchange 
will retain the authority to deny, limit or revoke the use of any 
communication device.\8\ Under the proposed rule, the Exchange may take 
such actions whenever it determines that use of such communication 
device: (1) Interferes with the normal operation of the Exchange's own 
systems or facilities or with the Exchange's regulatory duties,\9\ (2) 
is inconsistent with the public interest, the protection of investors 
or just and equitable principles of trade, or (3) interferes with the 
obligations of a TPH to fulfill its duties under, or is used to 
facilitate any violation of, the Securities Exchange Act of 1934 (``the 
Act'') or rules thereunder, or the Exchange rules. This authorization 
will allow the Exchange to regulate the equipment and communications on 
the Exchange trading floor and in the Exchange trading crowds to ensure 
they are not disruptive to the operation of the Exchange or in 
violation of the Act. The Exchange believes this will allow the 
Exchange to better protect investors and the integrity of the market. 
The Exchange notes, however, that current Rule 6.23(a) requires TPHs to 
receive prior approval from the Exchange before establishing or 
maintaining a telephone or other wire communications.\10\ In addition, 
the Exchange recognizes that AMEX and ARCA rules require the 
registration of all new telephones \11\ and approval prior to the use 
of a communication device other than a telephone. The Exchange believes 
the combination of the record retention requirements of proposed Rule 
6.23(g) and the power to revoke the use of a communication device 
pursuant to proposed Rule 6.23(b) negates the necessity for prior 
approval and registration. If an issue with a particular device is 
discovered, the Exchange will work with TPHs to ensure the devices are 
no longer utilized.
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    \8\ Proposed Rule 6.23(c) [sic] is similar to Amex Rule 
902NY(i)(6) and Arca Rule 6.2(h)(6).
    \9\ This language remains from the current CBOE Rule 6.23. See 
CBOE Rule 6.23(b)(1)(F).
    \10\ See CBOE Rule 6.23(a).
    \11\ See Amex Rule 902NY(i)(1) and Arca Rule 6.2(h)(1).
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    Next, proposed Rule 6.23(c) codifies the current policy that allows 
any communication device to be utilized to receive orders in and out of 
the trading crowd, provided that audit trail and record retention 
requirements of the Exchange are met.\12\ Formerly, CBOE Regulatory 
Circular RG10-20 prohibited TPH's [sic] from receiving orders in the 
trading crowd via instant messaging or email; \13\ however, TPHs were 
not restricted from receiving orders via instant messaging and email 
while not in a trading crowd. The Exchange believes the difference 
caused inequity between TPHs because TPHs near the edge of the trading 
crowd can more quickly correspond with their clerks and trading desks 
that are outside of the trading crowd. The Exchange believes that 
removing the restriction on receiving orders via IM and email levels 
the playing field in the trading crowds and reflects the electronic 
nature of the current marketplace. In addition, proposed Rule 6.23(c) 
specifically prohibits the use of any communication device to record 
activities in the trading crowd or to maintain an open line of 
continuous communication that would allow a non-associated person off 
of the Exchange floor to continuously monitor the activities in the 
trading crowd. As proposed, this prohibition covers digital recorders, 
intercoms, walkie-talkies and any similar devices. The addition of this 
text will preserve the integrity of the Exchange trading floor while 
monitoring TPHs to ensure they have the required authorization to 
operate on the Exchange trading floor should that be their intent.\14\
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    \12\ See CBOE Regulatory Circular RG14-162 (November 19, 2014).
    \13\ See CBOE Regulatory Circular RG10-20 (January 29, 2010).
    \14\ Proposed Rule 6.23(c) is similar to Amex Rule 902NY(i)(2) 
and Arca Rule 6.2(h)(2).
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    Further, proposed Rule 6.23(d) specifies that, after providing 
notice to an affected Trading Permit Holder and complying with the 
applicable laws, the Exchange may provide for the recording of any 
telephone line on the floor of the Exchange or require TPHs to provide 
for the recording of a fixed phone line on the floor of the Exchange, 
and that TPHs utilizing telephones consent to the Exchange recording 
any telephone or line.\15\ This added provision will not require but 
allow the Exchange to record any communications via telephone 
connections to the trading floor if a situation where [sic] to arise 
where this may be necessary. In addition, this proposed provision would 
allow the Exchange to provide necessary

[[Page 12674]]

equipment for the recording of communications on the Exchange trading 
floor.\16\
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    \15\ This language remains from the current CBOE Rule 6.23. See 
CBOE Rule 6.23 (b)(1)(D).
    \16\ Proposed Rule 6.23(d) is similar to Amex Rule 
902NY(i)(3)(C) and Arca Rule 6.2(h)(3)(C).
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    Next, proposed Rule 6.23(e) prohibits the use of communication 
devices to disseminate quotes and/or last sale reports originating on 
the Exchange trading floor in any manner that would serve to provide a 
continuous or running state of the market; however, the proposed rule 
specifically states that, ``an associated person of a TPH may use a 
communications device to communicate quotes that have been disseminated 
pursuant to Rule 6.43 and/or last sale reports to other associated 
persons of the same TPH business unit.'' Further, as proposed, an 
associated person of a TPH may use a communications device to 
communicate an ``occasional, specific, quote that has been disseminated 
pursuant to Rule 6.43 \17\ or last sale report or quote to a person who 
is not an associated person of the same TPH.'' The Exchange believes 
this proposed addition is necessary to allow the use of instant 
messaging or email as the industry has grown to become more and more 
reliant upon technology. The Exchange, however, also thinks it is 
important that any communications made within TPH organizations should 
be within the same business unit so that TPHs are not abusing the 
privilege and allowing for communication of the activity on the 
Exchange trading floor to be disseminated to unrelated areas of the 
TPH.
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    \17\ Proposed Rule 6.23(e) referring to quotes disseminated 
pursuant to Rule 6.43 is similar to Amex Rule 902NY(i)(3)(A) and 
Arca Rule 6.2(h)(3)(A). See CBOE Rule 6.43--Manner of Bidding and 
Offering.
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    Next, proposed Rule 6.23(f) requires that any use of any 
communications device on the trading floor shall comply with applicable 
laws, rules, policies, and procedures of the Commission and Exchange 
including all record retention and audit trail requirements. Proposed 
Rule 6.23(f) would also require that orders are systemized using 
Exchange systems or proprietary systems approved by the Exchange in 
accordance with Exchange Rule 6.24.\18\ This proposed addition would 
ensure that any communications device on the Exchange's trading floor 
or in the Exchange trading crowds will follow any and all other 
applicable statues [sic] including the Act along with ensure [sic] that 
orders are properly systematized. In addition, proposed Rule 6.23(f) 
will allow misconduct to be investigated if regulatory issues arise 
after the adoption of a new communication device.
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    \18\ Orders must be systematized in accordance with Rule 6.24 
(Required Order Information). Generally, subject to certain 
exceptions, each order, cancellation of, or change to an order 
transmitted to the Exchange must be ``systematized,'' in a format 
approved by the Exchange, either before it is sent to the Exchange 
or upon receipt on the floor of the Exchange. An order is 
systematized if: (i) The order is sent electronically to the 
Exchange; or (ii) the order that is sent to the Exchange non-
electronically (e.g., telephone orders) is input electronically into 
the Exchange's systems contemporaneously upon receipt on the 
Exchange, and prior to representation of the order.
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    Next, proposed Rule 6.23(g) requires TPHs to maintain records 
related to the ``use of communication devices, including, but not 
limited to, logs of calls placed; emails; and chats, for a period of 
not less than three years, the first two years in an easily accessible 
place.'' Although similar to Amex and Arca Rules on the subject,\19\ 
the Exchange added language referring to emails and chats to reflect 
the current electronic environment. In addition, proposed rule 6.23(g) 
states that ``[t]he Exchange reserves the right to inspect such records 
pursuant to Rule 17.2.'' \20\ As previously noted, the proposed Rule 
will allow misconduct to be investigated if regulatory issues arise 
after the adoption of a new communication device. This requirement is 
consistent with the retention period of Securities and Exchange 
Commission Rule 17a-4.\21\
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    \19\ Proposed Rule 6.23(g) is similar to Amex Rule 902NY(i)(5) 
and Arca NYSE Arca Rule 6.2(h)(5).
    \20\ CBOE Rule 17.2 (b)--Requirements to Furnish Information. 
Rule 17.2(b) requires TPHs and persons associated with TPHs to, 
among other things, ``furnish documentary materials and other 
information requested by the Exchange in connection with (i) an 
investigation initiated pursuant to paragraph (a) of this Rule[.]''
    \21\ 17 CFR 240.17a-4.
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    Finally, proposed Rule 6.23(h) authorizes the Exchange to designate 
more specific communication devices that will not be permitted on the 
Exchange trading floor or other operational requirements via circular. 
Given the propensity for technology to continue to evolve, the Exchange 
believes this proposed text will allow the Exchange to change the exact 
requirements from time to time as needed while continuing to provide 
TPHs specifications on the allowed technology and communication 
mechanism.
    The Exchange will announce the implementation date of the proposed 
rule change in a Regulatory Circular to be published no later than 30 
days following the approval date. The implementation date will be no 
later than 60 days following the approval of the proposed changes.
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.\22\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \23\ 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. Additionally, 
the Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \24\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers.
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    \22\ 15 U.S.C. 78f(b).
    \23\ 15 U.S.C. 78f(b)(5).
    \24\ Id.
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    In particular, the Exchange does not believe the proposed changes 
are unfairly discriminatory as they are applied to all TPHs trading on 
the Exchange trading floor, a similarly situated group, equally. In 
addition, the Exchange believes the proposed changes [sic] designed to 
prevent fraudulent and manipulative acts and practices because they are 
more appropriately designed to monitor the equipment and communications 
on a modern trading floor. Without the proposed changes, the current 
Exchange rules do not adequately address the relevant communication 
tools. Finally, the Exchange believes that the proposed rules intend to 
foster cooperation and coordination by introducing new means of 
communication to the Exchange trading floor. Finally, the Exchange 
believes that the proposed changes protect investors and the public 
interest by ensuring that all equipment and communication on the 
Exchange trading floor will adhere to all other applicable statutes and 
the Act.

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. More

[[Page 12675]]

specifically, the Exchange does not believe that the proposed rule 
changes will impose any [sic] intramarket competition because it [sic] 
will be applicable to all TPHs trading on the Exchange trading floor. 
In addition, the Exchange does not believe the proposed changes will 
impose any intermarket burden because the Exchange trading floor will 
operate in a similar manner only with more relevant equipment and 
communication requirements.

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 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. In particular, the Commission 
invites comment on CBOE's proposal to no longer require a member to 
obtain prior approval from CBOE before using a new communication device 
on the CBOE floor and instead adopt the open-ended approach in proposed 
paragraph (c) of Rule 6.23 under which a member would be permitted to 
use any communication device unless specifically otherwise prohibited 
and would not be required to seek Exchange approval or otherwise 
register the communication devices with the Exchange in advance of 
using them on the CBOE floor. 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-2015-022 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-2015-022. 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 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-2015-022, and should be 
submitted on or before March 31, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\25\
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    \25\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-05484 Filed 3-9-15; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 80, No. 46 / Tuesday, March 10, 2015 / Notices 12671

a Discretionary Range instruction, to determine whether the proposed rule For the Commission, by the Division of
including the discretion of an order change should be disapproved. Trading and Markets, pursuant to delegated
with a Non-Displayed instruction more authority.24
aggressive than the midpoint of the IV. Solicitation of Comments Brent J. Fields,
NBBO to its limit price, is intended to Secretary.
Interested persons are invited to
reflect the relatively passive nature of submit written data, views, and [FR Doc. 2015–05485 Filed 3–9–15; 8:45 am]
orders with a Discretionary Range. The arguments concerning the foregoing, BILLING CODE 8011–01–P
Exchange believes it is reasonable that including whether the proposed rule
an order with a Discretionary Range change, as modified by Amendment No.
instruction or a Non-Displayed SECURITIES AND EXCHANGE
1, is consistent with the Act. Comments COMMISSION
instruction might temporarily become
may be submitted by any of the
not executable at certain prices because [Release No. 34–74438; File No. SR–CBOE–
following methods:
such prices are more aggressive than 2015–022]
their ranked price (i.e., higher prices for Electronic Comments
orders to buy or lower prices for orders Self-Regulatory Organizations;
to sell). Further, to the extent a User • Use the Commission’s Internet Chicago Board Options Exchange,
would prefer an execution at more comment form (http://www.sec.gov/ Incorporated; Notice of Filing of a
aggressive price levels, such User could rules/sro.shtml); or Proposed Rule Change Related to
simply choose other order type • Send an email to rule-comments@ Equipment and Communication on the
instructions that would increase the sec.gov. Please include File Number SR– Exchange’s Trading Floor
likelihood of execution at these prices. EDGX–2015–08 on the subject line. March 4, 2015.
Finally, the Exchange believes that its
proposal to re-locate and re-word the Paper Comments Pursuant to Section 19(b)(1) of the
Discretionary Range instruction Securities Exchange Act of 1934 (the
reference within Rule 11.8(b), related to • Send paper comments in triplicate ‘‘Act’’),1 and Rule 19b–4 thereunder,2
Limit Orders, is consistent with the Act to Brent J. Fields, Secretary, Securities notice is hereby given that on February
because the change will correct an error and Exchange Commission, 100 F Street 20, 2015, Chicago Board Options
within the Exchange’s rules and prevent NE., Washington, DC 20549–1090. Exchange, Incorporated (the ‘‘Exchange’’
potential confusion regarding the ability or ‘‘CBOE’’) filed with the Securities
All submissions should refer to File and Exchange Commission (the
to combine a Discretionary Range Number SR–EDGX–2015–08. This file
instruction with a Post Only instruction. ‘‘Commission’’) the proposed rule
number should be included on the change as described in Items I, II, and
B. Self-Regulatory Organization’s subject line if email is used. To help the III below, which Items have been
Statement on Burden on Competition Commission process and review your prepared by the Exchange. The
comments more efficiently, please use Commission is publishing this notice to
The Exchange does not believe that only one method. The Commission will solicit comments on the proposed rule
the proposed rule changes will result in post all comments on the Commission’s change from interested persons.
any burden on competition that is not Internet Web site (http://www.sec.gov/
necessary or appropriate in furtherance rules/sro.shtml). Copies of the I. Self-Regulatory Organization’s
of the purposes of the Act. The submission, all subsequent Statement of the Terms of the Substance
proposed rule changes are not designed amendments, all written statements of the Proposed Rule Change
to address any competitive issue but with respect to the proposed rule The Exchange seeks to amend its rules
rather to add specificity and clarity to change that are filed with the related to equipment and
Exchange rules, thus providing greater Commission, and all written communication on the Exchange’s
transparency regarding the operation of trading floor
communications relating to the
the System.
proposed rule change between the (additions are italicized; deletions are
C. Self-Regulatory Organization’s Commission and any person, other than [bracketed])
Statement on Comments on the those that may be withheld from the * * * * *
Proposed Rule Change Received From public in accordance with the
Members, Participants, or Others provisions of 5 U.S.C. 552, will be Chicago Board Options Exchange,
available for Web site viewing and Incorporated Rules
The Exchange has neither solicited
printing in the Commission’s Public * * * * *
nor received written comments on the
Reference Room, 100 F Street NE., Rule 6.23. [Trading Permit Holder Wires
proposed rule changes.
Washington, DC 20549, on official From Floor] Equipment and
III. Date of Effectiveness of the business days between the hours of Communications on the Trading Floor
Proposed Rule Change and Timing for 10:00 a.m. and 3:00 p.m. Copies of the
Commission Action filing also will be available for (a) Subject to the requirements of this
inspection and copying at the principal Rule Trading Permit Holders may use
Within 45 days of the date of any communication device (e.g., any
publication of this notice in the Federal office of the Exchange. All comments
received will be posted without change; hardware or software related to a phone,
Register or within such longer period (i) system or other device, including an
the Commission does not edit personal
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as the Commission may designate up to instant messaging system, email system
90 days of such date if it finds such identifying information from
submissions. You should submit only or similar device) on the floor of the
longer period to be appropriate and Exchange and in any trading crowd of
publishes its reasons for so finding or information that you wish to make
the Exchange. The Exchange reserves
(ii) as to which the Exchange consents, available publicly. All submissions
the Commission will: (a) By order should refer to File Number SR–EDGX– 24 17 CFR 200.30–3(a)(12).
approve or disapprove such proposed 2015–08 and should be submitted on or 1 15 U.S.C. 78s(b)(1).
rule change, or (b) institute proceedings before March 31, 2015. 2 17 CFR 240.19b–4.

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12672 Federal Register / Vol. 80, No. 46 / Tuesday, March 10, 2015 / Notices

the right to designate certain portions of disseminated pursuant to Rule 6.43 or Trading Permit Holder’s PIN access
this rule as not applicable to certain last sale report to a person who is not code.
classes on a class by class basis. an associated person of the same (C) Clerks will not be permitted to
(b) The Exchange may deny, limit or Trading Permit Holder. establish a base of operation utilizing
revoke the use of any communication (f) Use of any communications device general use telephones at the equity
device whenever it determines that use for order routing or handling must option posts. This means, for example,
of such communication device: (1) comply with all applicable laws, rules, that a clerk may not monopolize the use
interferes with the normal operation of policies and procedures of the Securities of a telephone receiver on a telephone
the Exchange’s own systems or facilities and Exchange Commission and the that has multiple lines if all of those
or with the Exchange’s regulatory Exchange including related to record lines are not dedicated to the Trading
duties, (2) is inconsistent with the public retention and audit trail requirements. Permit Holder for whom the clerk
interest, the protection of investors or Orders must be systemized using works.
just and equitable principles of trade, or Exchange systems or proprietary
(3) interferes with the obligations of a (D) The Exchange may provide for the
systems approved by the Exchange in taping of any telephone line into the
Trading Permit Holder to fulfill its accordance with Rule 6.24.
duties under, or is used to facilitate any equity option posts or may require
(g) Trading Permit Holders must Trading Permit Holders to provide for
violation of, the Securities Exchange Act maintain records of the use of
or rules thereunder, or Exchange rules. the tape recording of a dedicated line at
communication devices, including, but the equity option posts at any time.
(c) Any communication device may be not limited to, logs of calls placed;
used on the floor of the Exchange and Trading Permit Holders and their clerks
emails; and chats, for a period of not using the telephones consent to the
in any trading crowd of the Exchange to less than three years, the first two years
receive orders, provided that audit trail Exchange tape recording any telephone
in an easily accessible place. The or line.
and record retention requirements of the Exchange reserves the right to inspect
Exchange are met; however, no person such records pursuant to Rule 17.2 (E) The telephones may be used for
in a trading crowd or on the floor of the voice service only, unless they have
(h) The Exchange may designate, via
Exchange may use any communication been specifically approved for other
circular, specific communication
device for the purpose of recording uses.
devices that will not be permitted on the
activities in the trading crowd or (F) The Exchange may prohibit the
floor of the Exchange or Exchange
maintaining an open line of continuous use of any telephone technology that
trading crowds. In addition, the
communication whereby a non- interferes with the normal operation of
Exchange may designate other
associated person not located in the the Exchange’s own systems or facilities
operational requirements regarding the
trading crowd may continuously or that the Exchange determines
installation of any communication
monitor the activities in the trading interferes with its regulatory duties.
crowd. This prohibition covers digital devices via circular.
recorders, intercoms, walkie-talkies and [(a) No Trading Permit Holder shall (G) Orders transmitted by registered
any similar devices. establish or maintain any telephone or Exchange market-makers may be
(d) After providing notice to an other wire communications between his entered over the outside telephone lines
affected Trading Permit Holder and or its office and the Exchange without directly to the equity option posts. All
complying with applicable laws, the prior approval by the Exchange. The other orders may be entered over the
Exchange may provide for the recording Exchange may direct discontinuance of outside telephone lines to the equity
of any telephone line on the floor of the any communication facility terminating option posts only during outgoing
Exchange or may require Trading Permit on the floor of the Exchange. telephone calls that are initiated at the
Holders at any time to provide for the (b) Equity Option Telephone Policy. equity option posts.
recording of a fixed phone line on the Persons in the equity option trading (H) Only those individuals that are
floor of the Exchange. Trading Permit crowds (including DPM crowds which properly qualified in accordance with
Holders, and their clerks, using the trade equity options) may have access to Chapter IX of the Rules of the Exchange,
telephones consent to the Exchange outside telephone lines and may receive and all other applicable rules and
recording any telephone or line. telephone orders directly at equity regulations, may accept orders from
(e) Trading Permit Holders may not options posts from locations outside the public customers pursuant to this Rule.
use communication devices to Exchange, subject to certain . . . Interpretations and Policies:
disseminate quotes and/or last sale requirements. The Exchange will review
reports originating on the floor of the and may approve any applications to .01 A Trading Permit Holder or TPH
Exchange in any manner that would install or to use telephones in the equity organization which has been granted
serve to provide a continuous or option crowds. approval of any means of
running state of the market for any (1) Requirements and conditions that communication under this rule shall be
particular series or class of options over apply to the use of telephone services at responsible for assuring compliance
any period of time; provided, however, the equity option posts shall include the with all Exchange rules and
that an associated person of a Trading following: requirements in connection with any
Permit Holder on the floor of the (A) Only those quotations that have business conducted by means of such
Exchange may use a communication been publicly disseminated pursuant to electronic or telephonic
device to communicate quotes that have Rule 6.43 may be provided over communication.]
* * * * *
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been disseminated pursuant to Rule telephones at the post.
6.43 and/or last sale reports to other (B) Trading Permit Holders may give The text of the proposed rule change
associated persons of the same Trading their clerks their PIN access code. is also available on the Exchange’s Web
Permit Holder business unit. An Although both Trading Permit Holders site (http://www.cboe.com/AboutCBOE/
associated person of a Trading Permit and clerks may use telephones, Trading CBOELegalRegulatoryHome.aspx), at
Holder may also use a communications Permit Holders will have priority. Each the Exchange’s Office of the Secretary,
device to communicate an occasional, Trading Permit Holder will be and at the Commission’s Public
specific quote that has been responsible for all calls made using that Reference Room.

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II. Self-Regulatory Organization’s Exchange trading crowd subject to the Next, proposed Rule 6.23(c) codifies
Statement of the Purpose of, and restrictions in proposed Rule 6.23. The the current policy that allows any
Statutory Basis for, the Proposed Rule Exchange is also proposing to apply communication device to be utilized to
Change these restrictions on a class by class receive orders in and out of the trading
In its filing with the Commission, the basis. The Exchange believes this crowd, provided that audit trail and
Exchange included statements discretion is appropriate as different record retention requirements of the
concerning the purpose of and basis for classes of options on the trading floor Exchange are met.12 Formerly, CBOE
the proposed rule change and discussed behave differently, and, as such, Regulatory Circular RG10–20 prohibited
any comments it received on the different means of communication TPH’s [sic] from receiving orders in the
proposed rule change. The text of these might be more appropriate in one trading crowd via instant messaging or
statements may be examined at the options class but not in another. email; 13 however, TPHs were not
places specified in Item IV below. The Next, proposed Rule 6.23(b) restricted from receiving orders via
Exchange has prepared summaries, set specifically states that the Exchange will instant messaging and email while not
forth in sections A, B, and C below, of retain the authority to deny, limit or in a trading crowd. The Exchange
the most significant aspects of such revoke the use of any communication believes the difference caused inequity
statements. device.8 Under the proposed rule, the between TPHs because TPHs near the
Exchange may take such actions edge of the trading crowd can more
A. Self-Regulatory Organization’s whenever it determines that use of such quickly correspond with their clerks
Statement of the Purpose of, and communication device: (1) Interferes and trading desks that are outside of the
Statutory Basis for, the Proposed Rule with the normal operation of the trading crowd. The Exchange believes
Change Exchange’s own systems or facilities or that removing the restriction on
1. Purpose with the Exchange’s regulatory duties,9 receiving orders via IM and email levels
(2) is inconsistent with the public the playing field in the trading crowds
The Exchange is proposing to amend and reflects the electronic nature of the
its rules regarding equipment and interest, the protection of investors or
just and equitable principles of trade, or current marketplace. In addition,
communication on the Exchange trading proposed Rule 6.23(c) specifically
floor. More specifically, the Exchange is (3) interferes with the obligations of a
TPH to fulfill its duties under, or is used prohibits the use of any communication
proposing to delete the current rule on device to record activities in the trading
the topic, Exchange Rule 6.23, and to facilitate any violation of, the
Securities Exchange Act of 1934 (‘‘the crowd or to maintain an open line of
introduce more relevant rules governing continuous communication that would
the use of communication devices 3 on Act’’) or rules thereunder, or the
Exchange rules. This authorization will allow a non-associated person off of the
the Exchange trading floor.4 Exchange Exchange floor to continuously monitor
and Trading Permit Holder (‘‘TPH’’) allow the Exchange to regulate the
equipment and communications on the the activities in the trading crowd. As
systems have become much more proposed, this prohibition covers digital
electronic since the adoption of CBOE Exchange trading floor and in the
Exchange trading crowds to ensure they recorders, intercoms, walkie-talkies and
Rule 6.23; however, the rule has not any similar devices. The addition of this
been updated to reflect the electronic are not disruptive to the operation of the
Exchange or in violation of the Act. The text will preserve the integrity of the
environment. The Exchange believes it Exchange trading floor while monitoring
is in the interest of TPHs to allow Exchange believes this will allow the
Exchange to better protect investors and TPHs to ensure they have the required
electronic communications to and from authorization to operate on the
the Exchange trading floor and that the integrity of the market. The
Exchange notes, however, that current Exchange trading floor should that be
these amendments will eliminate their intent.14
confusion that may arise from outdated Rule 6.23(a) requires TPHs to receive
Further, proposed Rule 6.23(d)
Exchange rules. As such, the Exchange prior approval from the Exchange before
specifies that, after providing notice to
believes that eliminating the current establishing or maintaining a telephone
an affected Trading Permit Holder and
rule in its entirety and promulgating or other wire communications.10 In
complying with the applicable laws, the
language that contemplates modern addition, the Exchange recognizes that
Exchange may provide for the recording
rules is appropriate.5 AMEX and ARCA rules require the
of any telephone line on the floor of the
First, Rule 6.23 is currently applicable registration of all new telephones 11 and
Exchange or require TPHs to provide for
to ‘‘telephone or other wire approval prior to the use of a the recording of a fixed phone line on
communications.’’ 6 Proposed Rule communication device other than a the floor of the Exchange, and that TPHs
6.23(a) expands the applicability of Rule telephone. The Exchange believes the utilizing telephones consent to the
6.23 and provides that TPHs may use combination of the record retention Exchange recording any telephone or
any communication device 7 on the requirements of proposed Rule 6.23(g) line.15 This added provision will not
Exchange trading floor and in any and the power to revoke the use of a require but allow the Exchange to record
communication device pursuant to any communications via telephone
3 As proposed, ‘‘communication device’’ will proposed Rule 6.23(b) negates the connections to the trading floor if a
include ‘‘e.g., any hardware or software related to necessity for prior approval and
a phone, system or other device, including an situation where [sic] to arise where this
instant messaging system, email system or similar registration. If an issue with a particular may be necessary. In addition, this
device[.]’’ device is discovered, the Exchange will proposed provision would allow the
4 Although the Exchange seeks to replace Rule work with TPHs to ensure the devices Exchange to provide necessary
6.23 in its entirety, portions of the current rule are are no longer utilized.
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included in proposed Rule 6.23. The relevant
12 See CBOE Regulatory Circular RG14–162
holdover language is identified where applicable.
5 Many of the provisions of proposed Rule 6.23 8 Proposed Rule 6.23(c) [sic] is similar to Amex (November 19, 2014).
are modeled after NYSE Amex LLC (‘‘Amex’’) Rule Rule 902NY(i)(6) and Arca Rule 6.2(h)(6). 13 See CBOE Regulatory Circular RG10–20

902NY(i)—Telephones on the Trading Floor and 9 This language remains from the current CBOE (January 29, 2010).
NYSE Arca, Inc. (‘‘Arca’’) Rule 6.(h) [sic]— Rule 6.23. See CBOE Rule 6.23(b)(1)(F). 14 Proposed Rule 6.23(c) is similar to Amex Rule
Telephones on the Options Floor. 10 See CBOE Rule 6.23(a). 902NY(i)(2) and Arca Rule 6.2(h)(2).
6 See CBOE Rule 6.23(a). 11 See Amex Rule 902NY(i)(1) and Arca Rule 15 This language remains from the current CBOE
7 See supra note 1 [sic]. 6.2(h)(1). Rule 6.23. See CBOE Rule 6.23 (b)(1)(D).

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12674 Federal Register / Vol. 80, No. 46 / Tuesday, March 10, 2015 / Notices

equipment for the recording of This proposed addition would ensure 2. Statutory Basis
communications on the Exchange that any communications device on the The Exchange believes the proposed
trading floor.16 Exchange’s trading floor or in the rule change is consistent with the
Next, proposed Rule 6.23(e) prohibits Exchange trading crowds will follow Securities Exchange Act of 1934 (the
the use of communication devices to any and all other applicable statues [sic] ‘‘Act’’) and the rules and regulations
disseminate quotes and/or last sale including the Act along with ensure thereunder applicable to the Exchange
reports originating on the Exchange [sic] that orders are properly and, in particular, the requirements of
trading floor in any manner that would systematized. In addition, proposed Section 6(b) of the Act.22 Specifically,
serve to provide a continuous or Rule 6.23(f) will allow misconduct to be the Exchange believes the proposed rule
running state of the market; however, investigated if regulatory issues arise change is consistent with the Section
the proposed rule specifically states after the adoption of a new 6(b)(5) 23 requirements that the rules of
that, ‘‘an associated person of a TPH communication device. an exchange be designed to prevent
may use a communications device to Next, proposed Rule 6.23(g) requires fraudulent and manipulative acts and
communicate quotes that have been TPHs to maintain records related to the practices, to promote just and equitable
disseminated pursuant to Rule 6.43 and/ ‘‘use of communication devices, principles of trade, to foster cooperation
or last sale reports to other associated and coordination with persons engaged
including, but not limited to, logs of
persons of the same TPH business unit.’’ in regulating, clearing, settling,
calls placed; emails; and chats, for a
Further, as proposed, an associated processing information with respect to,
period of not less than three years, the
person of a TPH may use a and facilitating transactions in
first two years in an easily accessible
communications device to communicate securities, to remove impediments to
place.’’ Although similar to Amex and
an ‘‘occasional, specific, quote that has and perfect the mechanism of a free and
Arca Rules on the subject,19 the
been disseminated pursuant to Rule open market and a national market
Exchange added language referring to
6.43 17 or last sale report or quote to a system, and, in general, to protect
emails and chats to reflect the current
person who is not an associated person investors and the public interest.
electronic environment. In addition,
of the same TPH.’’ The Exchange Additionally, the Exchange believes the
believes this proposed addition is proposed rule 6.23(g) states that ‘‘[t]he
Exchange reserves the right to inspect proposed rule change is consistent with
necessary to allow the use of instant the Section 6(b)(5) 24 requirement that
messaging or email as the industry has such records pursuant to Rule 17.2.’’ 20
As previously noted, the proposed Rule the rules of an exchange not be designed
grown to become more and more reliant to permit unfair discrimination between
upon technology. The Exchange, will allow misconduct to be investigated
if regulatory issues arise after the customers, issuers, brokers, or dealers.
however, also thinks it is important that In particular, the Exchange does not
any communications made within TPH adoption of a new communication
device. This requirement is consistent believe the proposed changes are
organizations should be within the same unfairly discriminatory as they are
business unit so that TPHs are not with the retention period of Securities
and Exchange Commission Rule 17a– applied to all TPHs trading on the
abusing the privilege and allowing for Exchange trading floor, a similarly
communication of the activity on the 4.21
situated group, equally. In addition, the
Exchange trading floor to be Finally, proposed Rule 6.23(h) Exchange believes the proposed changes
disseminated to unrelated areas of the authorizes the Exchange to designate [sic] designed to prevent fraudulent and
TPH. more specific communication devices manipulative acts and practices because
Next, proposed Rule 6.23(f) requires that will not be permitted on the they are more appropriately designed to
that any use of any communications Exchange trading floor or other monitor the equipment and
device on the trading floor shall comply operational requirements via circular. communications on a modern trading
with applicable laws, rules, policies, Given the propensity for technology to floor. Without the proposed changes,
and procedures of the Commission and continue to evolve, the Exchange the current Exchange rules do not
Exchange including all record retention believes this proposed text will allow adequately address the relevant
and audit trail requirements. Proposed the Exchange to change the exact communication tools. Finally, the
Rule 6.23(f) would also require that requirements from time to time as Exchange believes that the proposed
orders are systemized using Exchange needed while continuing to provide rules intend to foster cooperation and
systems or proprietary systems TPHs specifications on the allowed coordination by introducing new means
approved by the Exchange in technology and communication of communication to the Exchange
accordance with Exchange Rule 6.24.18 mechanism. trading floor. Finally, the Exchange
16 Proposed Rule 6.23(d) is similar to Amex Rule
The Exchange will announce the believes that the proposed changes
902NY(i)(3)(C) and Arca Rule 6.2(h)(3)(C).
implementation date of the proposed protect investors and the public interest
17 Proposed Rule 6.23(e) referring to quotes rule change in a Regulatory Circular to by ensuring that all equipment and
disseminated pursuant to Rule 6.43 is similar to be published no later than 30 days communication on the Exchange trading
Amex Rule 902NY(i)(3)(A) and Arca Rule following the approval date. The floor will adhere to all other applicable
6.2(h)(3)(A). See CBOE Rule 6.43—Manner of
Bidding and Offering.
implementation date will be no later statutes and the Act.
18 Orders must be systematized in accordance than 60 days following the approval of
B. Self-Regulatory Organization’s
with Rule 6.24 (Required Order Information). the proposed changes.
Generally, subject to certain exceptions, each order,
Statement on Burden on Competition
cancellation of, or change to an order transmitted 19 Proposed Rule 6.23(g) is similar to Amex Rule CBOE does not believe that the
mstockstill on DSK4VPTVN1PROD with NOTICES

to the Exchange must be ‘‘systematized,’’ in a
format approved by the Exchange, either before it 902NY(i)(5) and Arca NYSE Arca Rule 6.2(h)(5). proposed rule change will impose any
is sent to the Exchange or upon receipt on the floor
20 CBOE Rule 17.2 (b)—Requirements to Furnish burden on competition that is not
of the Exchange. An order is systematized if: (i) The Information. Rule 17.2(b) requires TPHs and necessary or appropriate in furtherance
order is sent electronically to the Exchange; or (ii) persons associated with TPHs to, among other
things, ‘‘furnish documentary materials and other
of the purposes of the Act. More
the order that is sent to the Exchange non-
electronically (e.g., telephone orders) is input information requested by the Exchange in
22 15 U.S.C. 78f(b).
electronically into the Exchange’s systems connection with (i) an investigation initiated
contemporaneously upon receipt on the Exchange, pursuant to paragraph (a) of this Rule[.]’’ 23 15 U.S.C. 78f(b)(5).
and prior to representation of the order. 21 17 CFR 240.17a-4. 24 Id.

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Federal Register / Vol. 80, No. 46 / Tuesday, March 10, 2015 / Notices 12675

specifically, the Exchange does not • Send an email to rule-comments@ SECURITIES AND EXCHANGE
believe that the proposed rule changes sec.gov. Please include File Number SR– COMMISSION
will impose any [sic] intramarket CBOE–2015–022 on the subject line.
competition because it [sic] will be [Release No. 34–74430; File No. SR–CBOE–
applicable to all TPHs trading on the Paper Comments
2015–023]
Exchange trading floor. In addition, the • Send paper comments in triplicate
Exchange does not believe the proposed to Brent J. Fields, Secretary, Securities Self-Regulatory Organizations;
changes will impose any intermarket Chicago Board Options Exchange,
and Exchange Commission, 100 F Street
burden because the Exchange trading Incorporated; Notice of Filing of
NE., Washington, DC 20549–1090.
floor will operate in a similar manner Proposed Rule Change To List and
only with more relevant equipment and All submissions should refer to File Trade Options on the MSCI EAFE Index
communication requirements. Number SR–CBOE–2015–022. This file and on the MSCI Emerging Markets
number should be included on the Index
C. Self-Regulatory Organization’s subject line if email is used. To help the
Statement on Comments on the March 4, 2015.
Commission process and review your
Proposed Rule Change Received From
comments more efficiently, please use Pursuant to Section 19(b)(1) of the
Members, Participants, or Others
only one method. The Commission will Securities Exchange Act of 1934 (the
The Exchange neither solicited nor post all comments on the Commission’s ‘‘Act’’ or ‘‘Exchange Act’’),1 and Rule
received comments on the proposed Internet Web site (http://www.sec.gov/ 19b–4 thereunder,2 notice is hereby
rule change. rules/sro.shtml). Copies of the given that on February 26, 2015, the
submission, all subsequent Chicago Board Options Exchange,
III. Date of Effectiveness of the Incorporated (the ‘‘Exchange’’ or
Proposed Rule Change and Timing for amendments, all written statements
with respect to the proposed rule ‘‘CBOE’’) filed with the Securities and
Commission Action Exchange Commission (the
change that are filed with the
Within 45 days of the date of Commission, and all written ‘‘Commission’’) the proposed rule
publication of this notice in the Federal change as described in Items I, II, and
communications relating to the
Register or within such longer period III below, which Items have been
proposed rule change between the
up to 90 days (i) as the Commission may prepared by the Exchange. The
Commission and any person, other than
designate if it finds such longer period Commission is publishing this notice to
those that may be withheld from the solicit comments on the proposed rule
to be appropriate and publishes its public in accordance with the
reasons for so finding or (ii) as to which change from interested persons.
provisions of 5 U.S.C. 552, will be
the Exchange consents, the Commission available for Web site viewing and I. Self-Regulatory Organization’s
will: printing in the Commission’s Public Statement of the Terms of Substance of
A. By order approve or disapprove Reference Room, 100 F Street NE., the Proposed Rule Change
such proposed rule change, or Washington, DC 20549 on official CBOE proposes to list and trade
B. institute proceedings to determine business days between the hours of options that overlie the MSCI EAFE
whether the proposed rule change 10:00 a.m. and 3:00 p.m. Copies of such Index and the MSCI Emerging Markets
should be disapproved. filing also will be available for Index (‘‘EAFE options’’ and ‘‘EM
IV. Solicitation of Comments inspection and copying at the principal options’’). EAFE and EM options would
office of the Exchange. All comments be P.M., cash-settled contracts with
Interested persons are invited to received will be posted without change; European-style exercise. The text of the
submit written data, views, and the Commission does not edit personal proposed rule change is available on the
arguments concerning the foregoing, identifying information from Exchange’s Web site (http://
including whether the proposed rule submissions. You should submit only www.cboe.com/AboutCBOE/
change is consistent with the Act. In information that you wish to make CBOELegalRegulatoryHome.aspx), at
particular, the Commission invites available publicly. All submissions the Exchange’s Office of the Secretary,
comment on CBOE’s proposal to no should refer to File Number SR–CBOE– and at the Commission.
longer require a member to obtain prior 2015–022, and should be submitted on II. Self-Regulatory Organization’s
approval from CBOE before using a new or before March 31, 2015. Statement of the Purpose of, and
communication device on the CBOE
For the Commission, by the Division of Statutory Basis for, the Proposed Rule
floor and instead adopt the open-ended
Trading and Markets, pursuant to delegated Change
approach in proposed paragraph (c) of
Rule 6.23 under which a member would authority.25
In its filing with the Commission, the
be permitted to use any communication Brent J. Fields, self-regulatory organization included
device unless specifically otherwise Secretary. statements concerning the purpose of
prohibited and would not be required to [FR Doc. 2015–05484 Filed 3–9–15; 8:45 am] and basis for the proposed rule change
seek Exchange approval or otherwise BILLING CODE 8011–01–P and discussed any comments it received
register the communication devices on the proposed rule change. The text
with the Exchange in advance of using of those statements may be examined at
them on the CBOE floor. Comments may
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the places specified in Item IV below.
be submitted by any of the following The Exchange has prepared summaries,
methods: set forth in sections A, B, and C below,
Electronic Comments of the most significant parts of such
statements.
• Use the Commission’s Internet
comment form (http://www.sec.gov/ 1 15 U.S.C. 78s(b)(1).
rules/sro.shtml); or 25 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4.

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Document Created: 2018-02-21 09:34:51
Document Modified: 2018-02-21 09:34:51
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		80 FR 12671