80 FR 19378 - Self-Regulatory Organizations; CBOE Futures Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Proposed Rule Change Regarding Open Interest Reporting
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 69 (April 10, 2015)
Federal Register Volume 80, Issue 69 (April 10, 2015)
| Page Range | 19378-19380 | |
| FR Document | 2015-08200 |
[Federal Register Volume 80, Number 69 (Friday, April 10, 2015)] [Notices] [Pages 19378-19380] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-08200] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-74652; File No. SR-CFE-2015-003] Self-Regulatory Organizations; CBOE Futures Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Proposed Rule Change Regarding Open Interest Reporting April 6, 2015. Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934 (``Act''),\1\ notice is hereby given that on March 23, 2015 CBOE Futures Exchange, LLC (``CFE'' or ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') the proposed rule change described in Items I, II, and III below, which Items have been prepared by CFE. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. CFE also has filed this proposed rule change with the Commodity Futures Trading Commission (``CFTC''). CFE filed a written certification with the CFTC under Section 5c(c) of the Commodity Exchange Act (``CEA'') \2\ on March 20, 2015. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(7). \2\ 7 U.S.C. 7a-2(c). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Description of the Proposed Rule Change The Exchange proposes to amend its rules related to open interest reporting. The scope of this filing is limited solely [[Page 19379]] to the application of the rule amendments to security futures traded on CFE. The only security futures currently traded on CFE are traded under Chapter 16 of CFE's Rulebook which is applicable to Individual Stock Based and Exchange-Traded Fund Based Volatility Index security futures. The text of the proposed rule change is attached as Exhibit 4 to the filing but is not attached to the publication of this notice. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, CFE included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. CFE has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of the proposed CFE rule amendments included as part of this rule change is to add CFE Rule 410A (Reporting Open Interest to the Clearing Corporation) to make clear that all CFE clearing members \3\ must report open interest information to The Options Clearing Corporation (``OCC'') in conformance with OCC rules. The rule amendments included as part of this rule change are to apply to all products traded on CFE, including both non-security futures and security futures. --------------------------------------------------------------------------- \3\ CFE Rule 121 defines ``Clearing Member'' to mean a member of OCC that is a CFE TPH and that is authorized under OCC Rules to clear trades in any or all contracts. --------------------------------------------------------------------------- CFE has contracted with and uses OCC for clearing and settlement services for all transactions conducted on the Exchange. CFE clearing members are required by OCC Rule 401, Interpretation and Policy .01 to submit gross position adjustment information to OCC as necessary to identify the actual open interest in clearing member accounts at the end of each trading day based upon the day's trading activity and any applicable rules of an exchange. Clearing members are not required to provide this information for market maker accounts at OCC or when a futures exchange like CFE identifies a transaction as opening or closing in matching trade information that the exchange provides to OCC. The amendments make clear that CFE clearing members must report gross position adjustment information to OCC to the extent required by, and in accordance with, OCC rules by including this requirement in new CFE Rule 410A. The amendments also provide that gross position adjustment information is not required to be reported to OCC pursuant to Rule 410A for market maker accounts at OCC or for transactions with respect to which a CFE Trading Privilege Holder (``TPH'') has designated as part of the applicable order submission to CFE whether the transaction is opening or closing. These two exceptions exist because in each case OCC will already have this information and thus does not need to receive it from clearing members. Specifically, with respect to the second exception, when a TPH submits an order to CFE's trading system, the TPH may choose to designate the transaction as opening or closing, though this field is not required. CFE provides such opening and closing designations by its TPHs to OCC, and OCC will then know that it does not need to receive this information regarding the order from the applicable clearing member. By adding Rule 410A to the CFE Rulebook, the amendments make clear that a failure to report open interest information pursuant to OCC rules is an independent violation of CFE rules. These amendments are based upon a recommendation by the CFTC Division of Market Oversight in a recent rule enforcement review of the market surveillance program of ICE Futures U.S., Inc.\4\ --------------------------------------------------------------------------- \4\ See CFTC, Div. of Mkt. Oversight, Rule Enforcement Review of ICE Futures U.S. at pp. 9, 32 (July 22, 2014), available at http://www.cftc.gov/ucm/groups/public/@iodcms/documents/file/rericefutures072214.pdf. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\5\ in general, and furthers the objectives of Sections 6(b)(5) \6\ and 6(b)(7) \7\ in particular in that it is designed: --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b). \6\ 15 U.S.C. 78f(b)(5). \7\ 15 U.S.C. 78f(b)(7). ---------------------------------------------------------------------------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 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, and to provide a fair procedure for the disciplining of members. The Exchange believes that the proposed rule change will strengthen its ability to carry out its responsibilities as a self-regulatory organization by clarifying that CFE clearing members must report gross position adjustment information to OCC to the extent required by, and in accordance with, OCC rules by including this requirement in new CFE Rule 410A. The proposed rule change also provides that that gross position adjustment information is not required to be reported to OCC pursuant to Rule 410A for market maker accounts at OCC or for transactions with respect to which a TPH has designated as part of the applicable order submission to CFE whether the transaction is opening or closing. This change will strengthen CFE's regulatory and disciplinary program as well as serve as an effective deterrent to potential conduct that violates OCC's open interest reporting rule by making clear that a failure to report open interest information pursuant to OCC rules is an independent violation of CFE rules. CFE additionally believes that this change enables CFE to conform with recent guidance issued by the CFTC's Division of Market Oversight . B. Self-Regulatory Organization's Statement on Burden on Competition CFE does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act, in that the rule change will enhance CFE's ability to carry out its responsibilities as a self-regulatory organization. The Exchange believes that the proposed rule change is equitable and not unfairly discriminatory because the clarification of CFE clearing members' responsibility to report open interest to OCC in conformance with OCC rules would apply equally to all parties that are subject to the applicable requirements. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The proposed rule change will become effective on April 3, 2015. [[Page 19380]] At any time within 60 days of the date of effectiveness of the proposed rule change, the Commission, after consultation with the CFTC, may summarily abrogate the proposed rule change and require that the proposed rule change be refiled in accordance with the provisions of Section 19(b)(1) of the Act.\8\ --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(1). --------------------------------------------------------------------------- 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 CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-CFE-2015-003 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-CFE-2015-003. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal offices of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-CFE-2015-003, and should be submitted on or before May 1, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\9\ Brent J. Fields, Secretary. --------------------------------------------------------------------------- \9\ 17 CFR 200.30-3(a)(73). --------------------------------------------------------------------------- [FR Doc. 2015-08200 Filed 4-9-15; 8:45 am] BILLING CODE 8011-01-P
![19378 Federal Register / Vol. 80, No. 69 / Friday, April 10, 2015 / Notices
mechanism of a free and open market 4(f)(6) 12 thereunder. At any time within Reference Room, 100 F Street NE.,
and a national market system, and, in 60 days of the filing of the proposed rule Washington, DC 20549, on official
general, to protect investors and the change, the Commission summarily may business days between the hours of
public interest. temporarily suspend such rule change if 10:00 a.m. and 3:00 p.m. Copies of the
In particular, the Exchange believes it appears to the Commission that such filing also will be available for
that the deletion of Rule 2.50 is action is necessary or appropriate in the inspection and copying at the principal
appropriate because it is obsolete now public interest, for the protection of office of the Exchange. All comments
that CBSX no longer owns or is investors, or otherwise in furtherance of received will be posted without change;
affiliated with NSX. Additionally, if the the purposes of the Act. If the the Commission does not edit personal
current rule text language remains, Commission takes such action, the identifying information from
confusion could arise as to whether or Commission will institute proceedings submissions. You should submit only
not NSX is still a wholly owned to determine whether the proposed rule information that you wish to make
subsidiary of CBSX. change should be approved or available publicly. All submissions
disapproved. should refer to File Number SR–CBOE–
B. Self-Regulatory Organization’s 2015-–033 and should be submitted on
Statement on Burden on Competition IV. Solicitation of Comments or before May 1, 2015.
CBOE does not believe that the Interested persons are invited to For the Commission, by the Division of
proposed rule change will impose any submit written data, views, and Trading and Markets, pursuant to delegated
burden on competition that is not arguments concerning the foregoing, authority.13
necessary or appropriate in furtherance including whether the proposed rule Brent J. Fields,
of the purposes of the Act. The change is consistent with the Act. Secretary.
Exchange does not believe the proposed Comments may be submitted by any of [FR Doc. 2015–08199 Filed 4–9–15; 8:45 am]
rule change imposes any burden on the following methods: BILLING CODE 8011–01–P
intramarket competition because it
applies to all market participants. Electronic Comments
Additionally, the Exchange does not • Use the Commission’s Internet SECURITIES AND EXCHANGE
believe the proposed rule change will comment form (http://www.sec.gov/ COMMISSION
impose any burden on intermarket rules/sro.shtml); or
competition as it is merely attempting to • Send an email to rule-comments@ [Release No. 34–74652; File No. SR–CFE–
2015–003]
delete Rule 2.50 in its entirety as the sec.gov. Please include File Number SR–
rule text is no longer relevant because CBOE–2015–033 on the subject line. Self-Regulatory Organizations; CBOE
CBSX no longer owns or is affiliated Futures Exchange, LLC; Notice of
Paper Comments
with NSX. The Exchange does not Filing and Immediate Effectiveness of
propose any substantive changes to the • Send paper comments in triplicate a Proposed Rule Change Proposed
Exchange’s operations or its rules that to Secretary, Securities and Exchange Rule Change Regarding Open Interest
the Exchange believes could have any Commission, 100 F Street NE., Reporting
impact on competition (intermarket or Washington, DC 20549–1090.
intramarket). All submissions should refer to File April 6, 2015.
Number SR–CBOE–2015–033. This file Pursuant to Section 19(b)(7) of the
C. Self-Regulatory Organization’s Securities Exchange Act of 1934
Statement on Comments on the number should be included on the
subject line if email is used. To help the (‘‘Act’’),1 notice is hereby given that on
Proposed Rule Change Received From March 23, 2015 CBOE Futures
Members, Participants or Others Commission process and review your
comments more efficiently, please use Exchange, LLC (‘‘CFE’’ or ‘‘Exchange’’)
The Exchange neither solicited nor only one method. The Commission will filed with the Securities and Exchange
received written comments on the post all comments on the Commission’s Commission (‘‘SEC’’ or ‘‘Commission’’)
proposed rule changes submitted in this Internet Web site (http://www.sec.gov/ the proposed rule change described in
filing. rules/sro.shtml). Copies of the Items I, II, and III below, which Items
submission, all subsequent have been prepared by CFE. The
III. Date of Effectiveness of the
amendments, all written statements Commission is publishing this notice to
Proposed Rule Change and Timing for
with respect to the proposed rule solicit comments on the proposed rule
Commission Action
change that are filed with the change from interested persons. CFE
The Exchange has filed the proposed also has filed this proposed rule change
Commission, and all written
rule change pursuant to Section with the Commodity Futures Trading
communications relating to the
19(b)(3)(A)(iii) of the Act 9 and Rule Commission (‘‘CFTC’’). CFE filed a
proposed rule change between the
19b–4(f)(6) thereunder.10 Because the Commission and any person, other than written certification with the CFTC
foregoing proposed rule change does those that may be withheld from the under Section 5c(c) of the Commodity
not: (1) Significantly affect the public in accordance with the Exchange Act (‘‘CEA’’) 2 on March 20,
protection of investors or the public provisions of 5 U.S.C. 552, will be 2015.
interest; (2) impose any significant available for Web site viewing and
burden on competition; and (3) become I. Self-Regulatory Organization’s
printing in the Commission’s Public Description of the Proposed Rule
operative for 30 days from the date on
Change
mstockstill on DSK4VPTVN1PROD with NOTICES
which it was filed, or such shorter time 12 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
as the Commission may designate, it has 4(f)(6)(iii) requires the Exchange to give the The Exchange proposes to amend its
become effective pursuant to Section Commission written notice of the Exchange’s intent rules related to open interest reporting.
19(b)(3)(A) of the Act 11 and Rule 19b– to file the proposed rule change, along with a brief The scope of this filing is limited solely
description and text of the proposed rule change,
at least five business days prior to the date of filing
9 15 U.S.C. 78s(b)(3)(A). 13 17 CFR 200.30–3(a)(12).
of the proposed rule change, or such shorter time
10 17 CFR 240.19b–4(f)(6). 1 15 U.S.C. 78s(b)(7).
as designated by the Commission. The Exchange
11 15 U.S.C. 78s(b)(3)(A). has satisfied this requirement. 2 7 U.S.C. 7a–2(c).
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![19380 Federal Register / Vol. 80, No. 69 / Friday, April 10, 2015 / Notices
At any time within 60 days of the date available publicly. All submissions ADDRESSES: Secretary, Securities and
of effectiveness of the proposed rule should refer to File Number SR–CFE– Exchange Commission, 100 F Street NE.,
change, the Commission, after 2015–003, and should be submitted on Washington, DC 20549–1090;
consultation with the CFTC, may or before May 1, 2015. Applicants: Johnathan R. Simon, Van
summarily abrogate the proposed rule For the Commission, by the Division of Eck Associates Corporation, 335
change and require that the proposed Trading and Markets, pursuant to delegated Madison Avenue, New York, NY 10017.
rule change be refiled in accordance authority.9 FOR FURTHER INFORMATION CONTACT:
with the provisions of Section 19(b)(1) Brent J. Fields, Emerson S. Davis, Senior Counsel, at
of the Act.8 Secretary. (202) 551–6868, or Daniele Marchesani,
IV. Solicitation of Comments [FR Doc. 2015–08200 Filed 4–9–15; 8:45 am]
Branch Chief, at (202) 551–6821
(Division of Investment Management,
Interested persons are invited to BILLING CODE 8011–01–P
Chief Counsel’s Office).
submit written data, views, and SUPPLEMENTARY INFORMATION: The
arguments concerning the foregoing, following is a summary of the
including whether the proposed rule SECURITIES AND EXCHANGE
COMMISSION application. The complete application
change is consistent with the Act. may be obtained via the Commission’s
Comments may be submitted by any of [Investment Company Act Release No. Web site by searching for the file
the following methods: 31547; 812–14400] number, or for an applicant using the
Electronic Comments Company name box, at http://
Van Eck Associates Corporation, et al.; www.sec.gov/search/search.htm or by
• Use the Commission’s Internet Notice of Application
comment form (http://www.sec.gov/ calling (202) 551–8090.
rules/sro.shtml); or April 6, 2015. Applicants’ Representations
• Send an email to rule-comments@ AGENCY: Securities and Exchange
1. Van Eck Funds is organized as a
sec.gov. Please include File Number SR– Commission (‘‘Commission’’).
Massachusetts business trust and is
CFE–2015–003 on the subject line. ACTION: Notice of an application under registered under the Act as an open-end
Paper Comments section 6(c) of the Investment Company management investment company. Van
Act of 1940 (‘‘Act’’) for an exemption Eck Funds is a trust which currently
• Send paper comments in triplicate from rule 12d1–2(a) under the Act.
to Secretary, Securities and Exchange consists of eight Funds (as defined
Commission, 100 F Street NE., below), each with its own investment
Summary of Application: Applicants
Washington, DC 20549–1090. objective and policies. VIP Trust is a
request an order to permit open-end
Massachusetts business trust and is
All submissions should refer to File management investment companies
registered under the Act as an open-end
Number SR–CFE–2015–003. This file relying on rule 12d1–2 under the Act to
management investment company. VIP
number should be included on the invest in certain financial instruments.
Trust currently consists of six Funds,
subject line if email is used. To help the Applicants: Van Eck Associates
each with its own investment objective
Commission process and review your Corporation (the ‘‘VEAC’’), Van Eck
and policies. MV Trust is a Delaware
comments more efficiently, please use Securities Corporation (‘‘VESC’’),
statutory trust and is registered under
only one method. The Commission will Market Vectors ETF Trust (‘‘MV Trust’’),
the Act as an open-end management
post all comments on the Commission’s Van Eck VIP Trust (‘‘VIP Trust’’) and investment company. MV Trust
Internet Web site (http://www.sec.gov/ Van Eck Funds (‘‘VE Funds’’ and, currently consists of 60 Funds, each
rules/sro.shtml). Copies of the together with MV Trust and VIP Trust, with its own investment objective and
submission, all subsequent the ‘‘Trusts’’). policies.
amendments, all written statements Filing Date: The application was filed 2. VEAC is registered as an
with respect to the proposed rule on December 18, 2014. investment adviser under the
change that are filed with the Hearing or Notification of Hearing: An Investment Advisers Act of 1940 (the
Commission, and all written order granting the application will be ‘‘Advisers Act’’). VEAC currently is the
communications relating to the issued unless the Commission orders a investment adviser to the Trusts. VESC,
proposed rule change between the hearing. Interested persons may request a broker-dealer registered under the
Commission and any person, other than a hearing by writing to the Securities Exchange Act of 1934, as
those that may be withheld from the Commission’s Secretary and serving amended (‘‘Exchange Act’’), serves as
public in accordance with the applicants with a copy of the request, the principal underwriter for the Trusts.
provisions of 5 U.S.C. 552, will be personally or by mail. Hearing requests 3. Applicants request an exemption to
available for Web site viewing and should be received by the Commission the extent necessary to permit any
printing in the Commission’s Public by 5:30 p.m. on May 1, 2015, and existing or future series of the Trusts
Reference Room, 100 F Street NE., should be accompanied by proof of and any other registered open-end
Washington, DC 20549, on official service on applicants, in the form of an management investment company or
business days between the hours of affidavit or, for lawyers, a certificate of series thereof that: (a) Is advised by
10:00 a.m. and 3:00 p.m. Copies of such service. Pursuant to rule 0–5 under the VEAC or any investment adviser
filing also will be available for Act, hearing requests should state the controlling, controlled by, or under
inspection and copying at the principal nature of the writer’s interest, any facts common control with VEAC (any such
mstockstill on DSK4VPTVN1PROD with NOTICES
offices of the Exchange. All comments bearing upon the desirability of a adviser or VEAC, the ‘‘Adviser’’); 1 (b) is
received will be posted without change; hearing on the matter, the reason for the in the same group of investment
the Commission does not edit personal request, and the issues contested. companies as defined in section
identifying information from Persons who wish to be notified of a 12(d)(1)(G) of the Act as the Trusts; (c)
submissions. You should submit only hearing may request notification by invests in other registered open-end
information that you wish to make writing to the Commission’s Secretary.
1 Each Adviser will be registered as an investment
8 15 U.S.C. 78s(b)(1). 9 17 CFR 200.30–3(a)(73). adviser under the Advisers Act.
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Document Created: 2018-02-21 10:08:13
Document Modified: 2018-02-21 10:08:13
| 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 19378 |
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