80 FR 19721 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 70 (April 13, 2015)

Page Range		19721-19722
FR Document		2015-08340
Federal Register, Volume 80 Issue 70 (Monday, April 13, 2015)
[Federal Register Volume 80, Number 70 (Monday, April 13, 2015)]
[Notices]
[Pages 19721-19722]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-08340]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74669; File No. SR-CBOE-2015-038]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend the Fees Schedule

April 7, 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 April 1, 2015, Chicago Board Options Exchange, Incorporated 
(the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange 
Commission (the ``Commission'') the proposed rule change as described 
in Items I, II, and III below, which Items have been prepared by the 
Exchange. The Commission is publishing this notice to solicit comments 
on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend its Fees Schedule. The text of the 
proposed rule change is available on the Exchange's Web site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's 
Office of the Secretary, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend its Fees Schedule, effective April 
1, 2015. Specifically, the Exchange proposes to amend the Complex Order 
Book (``COB'') Taker Surcharge. By way of background, the COB Taker 
Surcharge is a $0.05 per contract per side surcharge for non-customer 
complex order executions that take liquidity from the COB in all 
underlying classes except OEX, XEO, SPX (including SPXW), SPXpm, SRO, 
VIX, VXST, Volatility Indexes and binary options (``Underlying Symbol 
List A \3\'') and mini-options. Additionally, the COB Taker Surcharge 
is not assessed on non-customer complex order executions in the Complex 
Order Auction (``COA''), the Automated Aim Mechanism (``AIM''), orders 
originating from a Floor Broker PAR, or electronic executions against 
single leg markets. The Exchange proposes to exclude from the COB Taker 
Surcharge, stock-option order executions. Eliminating the surcharge for 
stock-option orders will allow Trading Permit Holders (``TPHs'') who 
engage in stock-option order executions the opportunity to pay lower 
fees for such transactions and provide greater incentives for such 
trading.
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    \3\ As of April 1, 2015, Underlying Symbol List A will also 
include the Russell 2000 Index (``RUT'').
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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.\4\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \5\ 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 facilitation 
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 
Section 6(b)(4) of the Act,\6\ which requires that Exchange rules 
provide for the equitable allocation of reasonable dues, fees, and 
other charges among its Trading Permit Holders and other persons using 
its facilities.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
    \6\ 15 U.S.C. 78f(b)(4).
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    The Exchange believes that the proposal to exclude from the COB 
Taker Surcharge stock-option orders is reasonable because it will allow 
TPHs who engage in stock-option order trading the opportunity to pay 
lower fees for such transactions. It is equitable and not unfairly 
discriminatory because it is applied to all TPHs equally. Additionally, 
the Exchange believes the proposed change is designed to attract 
greater stock-option order flow to the Exchange. This would bring 
greater liquidity to the market, which benefits all market 
participants.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule changes will 
impose any burden on competition that are not necessary or appropriate 
in furtherance of the purposes of the Act. The Exchange does not 
believe that the proposed rule change will impose any burden on 
intramarket competition that is not necessary or appropriate in 
furtherance of the purposes of the Act because the proposed change 
applies to all TPHs. The Exchange does not believe

[[Page 19722]]

that the proposed rule change will impose any burden on intermarket 
competition that is not necessary or appropriate in furtherance of the 
purposes of the Act because the proposed change is intended to promote 
competition and better improve the Exchange's competitive position and 
make CBOE a more attractive marketplace in order to encourage market 
participants to bring increased volume to the Exchange. To the extent 
that the proposed changes make CBOE a more attractive marketplace for 
market participants at other exchanges, such market participants are 
welcome to become CBOE market participants.

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \7\ and paragraph (f) of Rule 19b-4 \8\ 
thereunder. At any time within 60 days of the filing of the proposed 
rule change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission will institute proceedings to 
determine whether the proposed rule change should be approved or 
disapproved.
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-CBOE-2015-038 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-2015-038. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549 on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-CBOE-2015-038 and should be 
submitted on or before May 4, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-08340 Filed 4-10-15; 8:45 am]
BILLING CODE 8011-01-P
Federal Register / Vol. 80, No. 70 / Monday, April 13, 2015 / Notices 19721

communications relating to the I. Self-Regulatory Organization’s fees for such transactions and provide
proposed rule change between the Statement of the Terms of Substance of greater incentives for such trading.
Commission and any person, other than the Proposed Rule Change
2. Statutory Basis
those that may be withheld from the
The Exchange proposes to amend its The Exchange believes the proposed
public in accordance with the
Fees Schedule. The text of the proposed rule change is consistent with the
provisions of 5 U.S.C. 552, will be rule change is available on the
available for Web site viewing and Securities Exchange Act of 1934 (the
Exchange’s Web site (http:// ‘‘Act’’) and the rules and regulations
printing in the Commission’s Public www.cboe.com/AboutCBOE/ thereunder applicable to the Exchange
Reference Room, 100 F Street NE., CBOELegalRegulatoryHome.aspx), at and, in particular, the requirements of
Washington, DC 20549 on official the Exchange’s Office of the Secretary, Section 6(b) of the Act.4 Specifically,
business days between the hours of and at the Commission’s Public the Exchange believes the proposed rule
10:00 a.m. and 3:00 p.m. Copies of such Reference Room. change is consistent with the Section
filing also will be available for 6(b)(5) 5 requirements that the rules of
inspection and copying at the principal II. Self-Regulatory Organization’s
Statement of the Purpose of, and an exchange be designed to prevent
office of the Exchange. All comments fraudulent and manipulative acts and
received will be posted without change; Statutory Basis for, the Proposed Rule
Change practices, to promote just and equitable
the Commission does not edit personal principles of trade, to foster cooperation
identifying information from In its filing with the Commission, the and coordination with persons engaged
submissions. You should submit only Exchange included statements in regulating, clearing, settling,
information that you wish to make concerning the purpose of and basis for processing information with respect to,
available publicly. All submissions the proposed rule change and discussed and facilitation transactions in
should refer to File Number SR–EDGX– any comments it received on the securities, to remove impediments to
2015–15, and should be submitted on or proposed rule change. The text of these and perfect the mechanism of a free and
before May 4, 2015. statements may be examined at the open market and a national market
For the Commission, by the Division of places specified in Item IV below. The system, and, in general, to protect
Trading and Markets, pursuant to delegated Exchange has prepared summaries, set investors and the public interest.
authority.35 forth in sections A, B, and C below, of Additionally, the Exchange believes the
the most significant aspects of such proposed rule change is consistent with
Brent J. Fields,
statements. Section 6(b)(4) of the Act,6 which
Secretary. requires that Exchange rules provide for
[FR Doc. 2015–08335 Filed 4–10–15; 8:45 am] A. Self-Regulatory Organization’s
the equitable allocation of reasonable
Statement of the Purpose of, and
BILLING CODE 8011–01–P dues, fees, and other charges among its
Statutory Basis for, the Proposed Rule
Trading Permit Holders and other
Change
persons using its facilities.
SECURITIES AND EXCHANGE 1. Purpose The Exchange believes that the
COMMISSION proposal to exclude from the COB Taker
The Exchange proposes to amend its Surcharge stock-option orders is
Fees Schedule, effective April 1, 2015. reasonable because it will allow TPHs
[Release No. 34–74669; File No. SR–CBOE–
Specifically, the Exchange proposes to who engage in stock-option order
2015–038]
amend the Complex Order Book trading the opportunity to pay lower
Self-Regulatory Organizations; (‘‘COB’’) Taker Surcharge. By way of fees for such transactions. It is equitable
Chicago Board Options Exchange, background, the COB Taker Surcharge is and not unfairly discriminatory because
a $0.05 per contract per side surcharge it is applied to all TPHs equally.
Incorporated; Notice of Filing and
for non-customer complex order Additionally, the Exchange believes the
Immediate Effectiveness of a Proposed
executions that take liquidity from the proposed change is designed to attract
Rule Change To Amend the Fees
COB in all underlying classes except greater stock-option order flow to the
Schedule OEX, XEO, SPX (including SPXW), Exchange. This would bring greater
April 7, 2015. SPXpm, SRO, VIX, VXST, Volatility liquidity to the market, which benefits
Indexes and binary options all market participants.
Pursuant to Section 19(b)(1) of the (‘‘Underlying Symbol List A 3’’) and
Securities Exchange Act of 1934 (the mini-options. Additionally, the COB B. Self-Regulatory Organization’s
‘‘Act’’),1 and Rule 19b–4 thereunder,2 Taker Surcharge is not assessed on non- Statement on Burden on Competition
notice is hereby given that on April 1, customer complex order executions in The Exchange does not believe that
2015, Chicago Board Options Exchange, the Complex Order Auction (‘‘COA’’), the proposed rule changes will impose
Incorporated (the ‘‘Exchange’’ or the Automated Aim Mechanism any burden on competition that are not
‘‘CBOE’’) filed with the Securities and (‘‘AIM’’), orders originating from a Floor necessary or appropriate in furtherance
Exchange Commission (the Broker PAR, or electronic executions of the purposes of the Act. The
‘‘Commission’’) the proposed rule against single leg markets. The Exchange does not believe that the
change as described in Items I, II, and Exchange proposes to exclude from the proposed rule change will impose any
III below, which Items have been COB Taker Surcharge, stock-option burden on intramarket competition that
mstockstill on DSK4VPTVN1PROD with NOTICES

prepared by the Exchange. The order executions. Eliminating the is not necessary or appropriate in
Commission is publishing this notice to surcharge for stock-option orders will furtherance of the purposes of the Act
solicit comments on the proposed rule allow Trading Permit Holders (‘‘TPHs’’) because the proposed change applies to
change from interested persons. who engage in stock-option order all TPHs. The Exchange does not believe
executions the opportunity to pay lower
35 17 CFR 200.30–3(a)(12). 4 15 U.S.C. 78f(b).
1 15 U.S.C. 78s(b)(1). 3 As 5 15 U.S.C. 78f(b)(5).
of April 1, 2015, Underlying Symbol List A
2 17 CFR 240.19b–4. will also include the Russell 2000 Index (‘‘RUT’’). 6 15 U.S.C. 78f(b)(4).

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19722 Federal Register / Vol. 80, No. 70 / Monday, April 13, 2015 / Notices

that the proposed rule change will and Exchange Commission, 100 F Street ‘‘Act’’),1 and Rule 19b–4 thereunder,2
impose any burden on intermarket NE., Washington, DC 20549–1090. notice is hereby given that on March 27,
competition that is not necessary or All submissions should refer to File 2015, EDGA Exchange, Inc. (the
appropriate in furtherance of the Number SR–CBOE–2015–038. This file ‘‘Exchange’’ or ‘‘EDGA’’) filed with the
purposes of the Act because the number should be included on the Securities and Exchange Commission
proposed change is intended to promote subject line if email is used. To help the (‘‘Commission’’) the proposed rule
competition and better improve the Commission process and review your change as described in Items I and II
Exchange’s competitive position and comments more efficiently, please use below, which Items have been prepared
make CBOE a more attractive only one method. The Commission will by the Exchange. The Commission is
marketplace in order to encourage post all comments on the Commission’s publishing this notice to solicit
market participants to bring increased Internet Web site (http://www.sec.gov/ comments on the proposed rule change
volume to the Exchange. To the extent rules/sro.shtml). Copies of the from interested persons.
that the proposed changes make CBOE submission, all subsequent
a more attractive marketplace for market I. Self-Regulatory Organization’s
amendments, all written statements Statement of the Terms of the Substance
participants at other exchanges, such with respect to the proposed rule
market participants are welcome to of the Proposed Rule Change
change that are filed with the
become CBOE market participants. Commission, and all written The Exchange filed a proposal to
communications relating to the amend Rules 11.8, 11.9, 11.10, 11.11,
C. Self-Regulatory Organization’s
proposed rule change between the and 11.16, in order to conform Exchange
Statement on Comments on the
Commission and any person, other than Rules to the rules of BATS Exchange,
Proposed Rule Change Received From
those that may be withheld from the Inc. (‘‘BZX’’) and BATS Y-Exchange,
Members, Participants, or Others
public in accordance with the Inc. (‘‘BYX’’) as they relate to the Plan
The Exchange neither solicited nor to Address Extraordinary Market
received comments on the proposed provisions of 5 U.S.C. 552, will be
available for Web site viewing and Volatility Pursuant to Rule 608 of
rule change. Regulation NMS under the Act (the
printing in the Commission’s Public
III. Date of Effectiveness of the Reference Room, 100 F Street NE., ‘‘Limit Up-Limit Down Plan’’ or
Proposed Rule Change and Timing for Washington, DC 20549 on official ‘‘Plan’’).3
Commission Action The text of the proposed rule change
business days between the hours of
is available at the Exchange’s Web site
The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the
at www.batstrading.com, at the
effective pursuant to Section 19(b)(3)(A) filing also will be available for
principal office of the Exchange, and at
of the Act 7 and paragraph (f) of Rule inspection and copying at the principal
the Commission’s Public Reference
19b–4 8 thereunder. At any time within office of the Exchange. All comments
Room.
60 days of the filing of the proposed rule received will be posted without change;
change, the Commission summarily may the Commission does not edit personal II. Self-Regulatory Organization’s
temporarily suspend such rule change if identifying information from Statement of the Purpose of, and
it appears to the Commission that such submissions. You should submit only Statutory Basis for, the Proposed Rule
action is necessary or appropriate in the information that you wish to make Change
public interest, for the protection of available publicly. All submissions In its filing with the Commission, the
investors, or otherwise in furtherance of should refer to File Number SR–CBOE– Exchange included statements
the purposes of the Act. If the 2015–038 and should be submitted on concerning the purpose of and basis for
Commission takes such action, the or before May 4, 2015. the proposed rule change and discussed
Commission will institute proceedings For the Commission, by the Division of any comments it received on the
to determine whether the proposed rule Trading and Markets, pursuant to delegated proposed rule change. The text of these
change should be approved or authority.9 statements may be examined at the
disapproved. Brent J. Fields, places specified in Item IV below. The
IV. Solicitation of Comments Secretary. Exchange has prepared summaries, set
[FR Doc. 2015–08340 Filed 4–10–15; 8:45 am] forth in Sections A, B, and C below, of
Interested persons are invited to
BILLING CODE 8011–01–P the most significant parts of such
submit written data, views, and
statements.
arguments concerning the foregoing,
including whether the proposed rule A. Self-Regulatory Organization’s
change is consistent with the Act. SECURITIES AND EXCHANGE
Statement of the Purpose of, and
Comments may be submitted by any of COMMISSION
Statutory Basis for, the Proposed Rule
the following methods: Change
[Release No. 34–74663; File No. SR–EDGA–
Electronic Comments 2015–15] 1. Purpose
• Use the Commission’s Internet The Exchange proposes to restructure
comment form (http://www.sec.gov/ Self-Regulatory Organizations; EDGA and amend various Exchange Rules
rules/sro.shtml); or Exchange, Inc.; Notice of Filing and related to the applicability of the Plan
• Send an email to rule-comments@ Immediate Effectiveness of a Proposed
sec.gov. Please include File Number SR– Rule Change To Amend Rules 11.8, 1 15 U.S.C. 78s(b)(1).
mstockstill on DSK4VPTVN1PROD with NOTICES

CBOE–2015–038 on the subject line. 11.9, 11.10, 11.11, and 11.16 Regarding 2 17 CFR 240.19b–4.
the Limit Up-Limit Down Plan 3 See BZX and BYX Rules 11.18(e). See Securities
Paper Comments Exchange Act Release Nos. 69084 (March 8, 2013),
April 7, 2015.
• Send paper comments in triplicate 77 FR 16334 (March 14, 2013) (SR–BATS–2015–
to Brent J. Fields, Secretary, Securities Pursuant to Section 19(b)(1) of the 015) [sic]; and 69088 (March 8, 2013), 77 FR 16308
Securities Exchange Act of 1934 (the (March 14, 2013) (SR–BYX–2013–010). See also
Securities Exchange Act Release No. 67091 (May
7 15 U.S.C. 78s(b)(3)(A). 31, 2012), 77 FR 33498 (June 6, 2012) (the ‘‘Limit
8 17 CFR 240.19b–4(f). 9 17 CFR 200.30–3(a)(12). Up-Limit Down Release’’).

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Document Created: 2015-12-18 11:21:57
Document Modified: 2015-12-18 11:21:57
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 19721