80_FR_23926 80 FR 23844 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Submission of Financial Reports

80 FR 23844 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Submission of Financial Reports

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 82 (April 29, 2015)

Page Range23844-23846
FR Document2015-09916

Federal Register, Volume 80 Issue 82 (Wednesday, April 29, 2015) 
[Federal Register Volume 80, Number 82 (Wednesday, April 29, 2015)]
[Notices]
[Pages 23844-23846]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-09916]



[[Page 23844]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74791; File No. SR-CBOE-2015-040]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change Relating to Submission of Financial Reports

April 23, 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 15, 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 and II below, which Items have been prepared by the 
Exchange. The Exchange has designated this proposal as a ``non-
controversial'' proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\ 
which renders it effective upon filing with the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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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 rules regarding the submission 
of financial reports. The text of the proposed rule change is provided 
below. Proposed new language is in italics; proposed deletions are in 
brackets.
* * * * *

Rule 15.5. Financial Reports

    Each Trading Permit Holder shall submit to the Exchange answers 
to financial questionnaires, reports of income and expenses and 
additional financial information in the type, form, manner and time 
prescribed by the Exchange.

. . . Interpretations and Policies:


.01 [Reserved.

.02 ]Trading Permit Holders [which]who are net capital computing 
must file electronically with the Exchange[`s Department of 
Financial and Sales Practice Compliance] any required monthly and 
quarterly FOCUS Reports utilizing the [WinJammer \TM\ ]system[,] or 
[such other ]software [as required]prescribed by the Exchange, which 
will be announced via Regulatory Circular.

.0[3]2 Trading Permit Holders who file an annual FOCUS Report and 
who are not net capital computing [have the option to ]must file 
electronically with the Exchange the annual FOCUS Report and 
Schedule 1 [by sending a hard copy to the Exchange or by filing 
electronically to]utilizing the system or software prescribed by the 
Exchange, which will be announced via Regulatory Circular.
* * * * *

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 II.A., II.B., and II.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 rules regarding the submission 
of financial reports. CBOE Rule 15.5 requires each Trading Permit 
Holder to submit to the Exchange answers to financial questionnaires, 
reports of income and expenses, and additional financial information in 
the type, form, manner, and time prescribed by the Exchange. With 
respect to FOCUS Reports \5\:
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    \5\ A ``FOCUS Report'' is the Financial and Operational Combined 
Uniform Single Report that broker-dealers file with their designated 
examining authority (``DEA'') pursuant to Rule 17a-5 under the Act. 
The FOCUS Report filing requirements for Trading Permit Holders for 
whom CBOE is the DEA are set forth in CBOE Rule 15.5, 
Interpretations and Policies .02 and .03.
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     Rule 15.5, Interpretation and Policy .02 requires Trading 
Permit Holders which are net capital computing to file electronically 
with the Exchange's Department of Financial and Sales Practice 
Compliance any required monthly and quarterly FOCUS Reports utilizing 
the WinJammer\TM\ system,\6\ or such other software as required by the 
Exchange; and
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    \6\ The WinJammer system is an internet-based system that 
Trading Permit Holders can log into and then input relevant FOCUS 
Report information.
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     Rule 15.5, Interpretation and Policy .03 requires Trading 
Permit Holders who file an annual FOCUS Report and who are not net 
capital computing to, at their option, file the annual FOCUS Report and 
Schedule 1 by sending a hard copy to the Exchange or by filing 
electronically to the Exchange.
    The Exchange recently entered into a Regulatory Services Agreement 
(the ``RSA'') with the Financial Industry Regulatory Authority, Inc. 
(``FINRA''). FINRA provides its members and the members of exchanges 
for which it provides regulatory services access to its Firm Gateway 
system, which is a portal that provides consolidated access to various 
FINRA regulatory systems, including its financial reporting systems.\7\ 
One of these systems is the e-FOCUS system, through which members may 
submit their FOCUS Reports.
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    \7\ Prior to the RSA, all Trading Permit Holders were able to 
submit Forms BD, U4, and U5 filings through WebCRD, which is 
accessible through the Firm Gateway, and Trading Permit Holders who 
are also FINRA members had access to the Firm Gateway in their 
capacity as FINRA members. Beginning on February 20, 2015, FINRA 
provided Trading Permit Holders who are not FINRA members with 
access to the Firm Gateway Request Manager, which streamlines the 
execution document request and production process and creates an 
audit trail of requests and productions. Beginning on March 16, 
2015, certain Firm Gateway financial filing and notification 
functions became available to Trading Permit Holders that are 
required to submit the financial information to the Exchange. As of 
that date, Trading Permit Holders may submit the information on a 
voluntary basis through the Firm Gateway system (or they may still 
submit directly to the Exchange). The Exchange will announce via 
Regulatory Circular the date on which it will require Trading Permit 
Holders to submit this financial information through Firm Gateway. 
FINRA has not yet made available to Trading Permit Holders that are 
required to file FOCUS Reports with the Exchange access to the Firm 
Gateway eFOCUS system. The Exchange will announce via Regulatory 
Circular the date on which it will begin to require the submission 
of FOCUS Reports through that system. See Regulatory Circular RG15-
026. Any changes to the form and manner of other financial filings 
required to be submitted by Trading Permit Holders to the Exchange 
in light of the RSA with FINRA will also be announced via Regulatory 
Circular pursuant to Rule 15.5.
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    In connection with the RSA, FINRA is making the Firm Gateway 
available to Trading Permit Holders for the submission of various 
regulatory filings, including certain financial filings, such as FOCUS 
Reports. As a result, CBOE intends to require Trading Permit Holders 
that are required to submit FOCUS Reports to the Exchange to submit 
their FOCUS Reports through the Firm Gateway system, including Trading 
Permit Holders that are not net capital computing. Therefore, CBOE is 
proposing to amend Rule 15.5, Interpretations .02 and .03 to provide 
that FOCUS Reports must be filed electronically with the Exchange 
utilizing the system or software prescribed by the Exchange.\8\ CBOE

[[Page 23845]]

believes that requiring Trading Permit Holders to submit FOCUS Reports 
in this manner will streamline the processing of these reports. 
Additionally, CBOE believes the submission of these reports directly 
into the system of the Exchange's regulatory services provider, into 
which Trading Permit Holders will submit other financial reports, will 
provide for a more efficient and effective process for the collection, 
tracking, consolidation, and review of Trading Permit Holders' 
financial reports.
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    \8\ CBOE does not believe it is necessary to name the system in 
the Rules, as the Rules already provide CBOE with the flexibility to 
use a system or software other than WinJammer and do not include the 
manner of filing for other financial reports. See Rule 15.5, 
Interpretation and Policy .02; see also, e.g. BATS Exchange, Inc. 
Rule 24.3; International Securities Exchange, LLC Rule 1402; and 
Miami International Securities Exchange, LLC (which rules do not 
specify an electronic system for the submission of any financial 
reports).
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    Many Trading Permit Holders are FINRA members and thus already have 
access to and submit reports via the Firm Gateway system. Additionally, 
the majority of Trading Permit Holders that currently submit FOCUS 
Reports to the Exchange do so electronically, and CBOE understands that 
the FINRA e-FOCUS system operates in a similar manner to the WinJammer 
system, as they are both web-based systems into which Trading Permit 
Holders sign in and input the relevant information. Thus, the Exchange 
does not anticipate that Trading Permit Holders who currently submit 
FOCUS Reports through WinJammer will experience any significant 
systemic or operational burden in order to submit FOCUS Reports via the 
Firm Gateway system.
    The proposed rule change also makes technical, nonsubstantive 
changes to:
     Conform language in current Rule 15.5, Interpretations and 
Policies .02 and .03;
     renumber Interpretations and Policies .02 and .03 to .01 
and .02, respectively, as current .01 is only reserved; and
     specify in the Rules that CBOE will announce the 
applicable system or software by Regulatory Circular (as is specified 
in Rule 15.5 for other financial reports).
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act \9\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act \10\ in particular, in that it 
is designed to promote just and equitable principles of trade, 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 requirement in Section 
6(b)(5) of the Act that the rules of an exchange not be designed to 
permit unfair discrimination between customers, issuers, brokers, or 
dealers.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
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    In particular, the Exchange believes that the proposed change will 
create a more efficient and effective process for the Exchange's 
regulatory services provider, FINRA, to collect and review Trading 
Permit Holders' FOCUS Reports required to be filed with the Exchange, 
which fosters cooperation and coordination with FINRA in its 
performance of regulatory services with respect to Trading Permit 
Holders and CBOE's markets. By enhancing the process through which the 
Exchange (through its regulatory services provider) receives FOCUS 
Reports and allowing consolidation with other financial reports for 
electronic review, the Exchange believes the proposed rule change will 
promote just and equitable principles of trade and ultimately protect 
investors. Additionally, upon implementation, all Trading Permit 
Holders that are required to submit FOCUS Reports to the Exchange will 
be required to submit them in the same (and thus nondiscriminatory) 
electronic manner. Regulation of Trading Permits Holders continues to 
be performed by electronic processes, and thus the Exchange believes it 
is appropriate to require electronic submission of these reports so 
that they may be incorporated into these processes. By maintaining the 
flexibility within the rules for the Exchange to prescribe by 
Regulatory Circular which system or software will be used for the 
submission of FOCUS Reports, the Exchange believes it will be able to 
adjust, as necessary, its standards of financial reporting in a timely 
manner, particularly to the extent that new or enhanced software or 
systems are developed for this purpose.\11\ As discussed above, CBOE's 
and other exchanges' rules maintain this flexibility.
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    \11\ To the extent CBOE changes the FOCUS Report submission 
software or system in the future, CBOE represents it will provide 
Trading Permit Holders with sufficient notice to comply with any 
such changes.
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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 is not necessary or appropriate 
in furtherance of the purposes of the Act. The proposed rule change 
requires all Trading Permit Holders that are required to submit FOCUS 
Reports to submit those reports in the same electronic manner. Many 
Trading Permit Holders are also FINRA members and thus already have 
access to the Firm Gateway system. The majority of Trading Permit 
Holders that are required to submit FOCUS Reports to the Exchange 
currently do so electronically in a manner similar to what will be 
required when submission through the Firm Gateway system becomes 
mandatory, thus resulting in minimal additional burden. While some 
Trading Permit Holders will no longer be able submit hard copies of 
FOCUS Reports, the Exchange believes that any burden imposed by the 
proposed rule change is minimal and outweighed by the regulatory 
efficiencies that may be gained through electronic submission directly 
to the Exchange's regulatory services provider, who will be able to 
more efficiently and effectively review FOCUS Reports together with 
other financial reports in its system. The Exchange does not believe 
that the proposed rule changes will impose any burden on intermarket 
competition, as the proposed rule change is for regulatory purposes to 
enhance the process for Trading Permit Holders' submission and the 
Exchange's collection, tracking, consolidation, and review (through its 
regulatory services provider) of FOCUS Reports.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    The Exchange neither solicited nor received comments on the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \12\ and 
subparagraph (f)(6) of Rule 19b-4 \13\ thereunder.
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    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(6).
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    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

[[Page 23846]]

action is: (i) Necessary or appropriate in the public interest; (ii) 
for the protection of investors; or (iii) otherwise in furtherance of 
the purposes of the Act. If the Commission takes such action, the 
Commission shall institute proceedings to determine whether the 
proposed rule change should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-CBOE-2015-040 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-2015-040. 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-2015-040 and 
should be submitted on or before May 20, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ See 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-09916 Filed 4-28-15; 8:45 am]
 BILLING CODE 8011-01-P

23844 Federal Register / Vol. 80, No. 82 / Wednesday, April 29, 2015 / Notices SECURITIES AND EXCHANGE .0[3]2 Trading Permit Holders who file an Report and Schedule 1 by sending a COMMISSION annual FOCUS Report and who are not net hard copy to the Exchange or by filing capital computing [have the option to ]must electronically to the Exchange. [Release No. 34–74791; File No. SR–CBOE– file electronically with the Exchange the The Exchange recently entered into a 2015–040] annual FOCUS Report and Schedule 1 [by sending a hard copy to the Exchange or by Regulatory Services Agreement (the Self-Regulatory Organizations; filing electronically to]utilizing the system or ‘‘RSA’’) with the Financial Industry Chicago Board Options Exchange, software prescribed by the Exchange, which Regulatory Authority, Inc. (‘‘FINRA’’). Incorporated; Notice of Filing and will be announced via Regulatory Circular. FINRA provides its members and the Immediate Effectiveness of a Proposed * * * * * members of exchanges for which it Rule Change Relating to Submission provides regulatory services access to its II. Self-Regulatory Organization’s Firm Gateway system, which is a portal of Financial Reports Statement of the Purpose of, and that provides consolidated access to April 23, 2015. Statutory Basis for, the Proposed Rule various FINRA regulatory systems, Pursuant to Section 19(b)(1) of the Change including its financial reporting Securities Exchange Act of 1934 (the In its filing with the Commission, the systems.7 One of these systems is the e- ‘‘Act’’),1 and Rule 19b–4 thereunder,2 Exchange included statements FOCUS system, through which members notice is hereby given that on April 15, concerning the purpose of and basis for may submit their FOCUS Reports. 2015, Chicago Board Options Exchange, the proposed rule change and discussed In connection with the RSA, FINRA is Incorporated (the ‘‘Exchange’’ or any comments it received on the making the Firm Gateway available to ‘‘CBOE’’) filed with the Securities and proposed rule change. The text of these Trading Permit Holders for the Exchange Commission (the statements may be examined at the submission of various regulatory filings, ‘‘Commission’’) the proposed rule places specified in Item IV below. The including certain financial filings, such change as described in Items I and II Exchange has prepared summaries, set as FOCUS Reports. As a result, CBOE below, which Items have been prepared forth in sections II.A., II.B., and II.C. intends to require Trading Permit by the Exchange. The Exchange has below, of the most significant aspects of Holders that are required to submit designated this proposal as a ‘‘non- such statements. FOCUS Reports to the Exchange to controversial’’ proposed rule change submit their FOCUS Reports through pursuant to Section 19(b)(3)(A)(iii) of A. Self-Regulatory Organization’s the Firm Gateway system, including the Act 3 and Rule 19b–4(f)(6) Statement of the Purpose of, and Trading Permit Holders that are not net thereunder,4 which renders it effective Statutory Basis for, the Proposed Rule capital computing. Therefore, CBOE is upon filing with the Commission. The Change proposing to amend Rule 15.5, Commission is publishing this notice to 1. Purpose Interpretations .02 and .03 to provide solicit comments on the proposed rule that FOCUS Reports must be filed The Exchange proposes to amend its change from interested persons. electronically with the Exchange rules regarding the submission of utilizing the system or software I. Self-Regulatory Organization’s financial reports. CBOE Rule 15.5 prescribed by the Exchange.8 CBOE Statement of the Terms of Substance of requires each Trading Permit Holder to the Proposed Rule Change submit to the Exchange answers to 7 Prior to the RSA, all Trading Permit Holders The Exchange proposes to amend its financial questionnaires, reports of were able to submit Forms BD, U4, and U5 filings rules regarding the submission of income and expenses, and additional through WebCRD, which is accessible through the financial information in the type, form, Firm Gateway, and Trading Permit Holders who are financial reports. The text of the also FINRA members had access to the Firm proposed rule change is provided manner, and time prescribed by the Gateway in their capacity as FINRA members. below. Proposed new language is in Exchange. With respect to FOCUS Beginning on February 20, 2015, FINRA provided italics; proposed deletions are in Reports 5: Trading Permit Holders who are not FINRA brackets. • Rule 15.5, Interpretation and Policy members with access to the Firm Gateway Request .02 requires Trading Permit Holders Manager, which streamlines the execution * * * * * which are net capital computing to file document request and production process and creates an audit trail of requests and productions. Rule 15.5. Financial Reports electronically with the Exchange’s Beginning on March 16, 2015, certain Firm Gateway Each Trading Permit Holder shall submit to Department of Financial and Sales financial filing and notification functions became Practice Compliance any required available to Trading Permit Holders that are the Exchange answers to financial required to submit the financial information to the questionnaires, reports of income and monthly and quarterly FOCUS Reports Exchange. As of that date, Trading Permit Holders expenses and additional financial utilizing the WinJammerTM system,6 or may submit the information on a voluntary basis information in the type, form, manner and such other software as required by the through the Firm Gateway system (or they may still time prescribed by the Exchange. Exchange; and submit directly to the Exchange). The Exchange will announce via Regulatory Circular the date on which . . . Interpretations and Policies: • Rule 15.5, Interpretation and Policy it will require Trading Permit Holders to submit .01 [Reserved. .03 requires Trading Permit Holders this financial information through Firm Gateway. .02 ]Trading Permit Holders [which]who are who file an annual FOCUS Report and FINRA has not yet made available to Trading Permit who are not net capital computing to, at Holders that are required to file FOCUS Reports net capital computing must file electronically with the Exchange access to the Firm Gateway with the Exchange[‘s Department of Financial their option, file the annual FOCUS eFOCUS system. The Exchange will announce via and Sales Practice Compliance] any required Regulatory Circular the date on which it will begin monthly and quarterly FOCUS Reports 5 A ‘‘FOCUS Report’’ is the Financial and to require the submission of FOCUS Reports utilizing the [WinJammer TM ]system[,] or Operational Combined Uniform Single Report that through that system. See Regulatory Circular RG15– mstockstill on DSK4VPTVN1PROD with NOTICES [such other ]software [as required]prescribed broker-dealers file with their designated examining 026. Any changes to the form and manner of other by the Exchange, which will be announced authority (‘‘DEA’’) pursuant to Rule 17a–5 under financial filings required to be submitted by via Regulatory Circular. the Act. The FOCUS Report filing requirements for Trading Permit Holders to the Exchange in light of Trading Permit Holders for whom CBOE is the DEA the RSA with FINRA will also be announced via are set forth in CBOE Rule 15.5, Interpretations and Regulatory Circular pursuant to Rule 15.5. 1 15 U.S.C. 78s(b)(1). Policies .02 and .03. 8 CBOE does not believe it is necessary to name 2 17 CFR 240.19b–4. 6 The WinJammer system is an internet-based the system in the Rules, as the Rules already 3 15 U.S.C. 78s(b)(3)(A)(iii). system that Trading Permit Holders can log into and provide CBOE with the flexibility to use a system 4 17 CFR 240.19b–4(f)(6). then input relevant FOCUS Report information. or software other than WinJammer and do not VerDate Sep<11>2014 17:18 Apr 28, 2015 Jkt 235001 PO 00000 Frm 00084 Fmt 4703 Sfmt 4703 E:\FR\FM\29APN1.SGM 29APN1

Federal Register / Vol. 80, No. 82 / Wednesday, April 29, 2015 / Notices 23845 believes that requiring Trading Permit general, to protect investors and the Trading Permit Holders that are Holders to submit FOCUS Reports in public interest. Additionally, the required to submit FOCUS Reports to this manner will streamline the Exchange believes the proposed rule submit those reports in the same processing of these reports. change is consistent with the electronic manner. Many Trading Additionally, CBOE believes the requirement in Section 6(b)(5) of the Act Permit Holders are also FINRA members submission of these reports directly into that the rules of an exchange not be and thus already have access to the Firm the system of the Exchange’s regulatory designed to permit unfair Gateway system. The majority of services provider, into which Trading discrimination between customers, Trading Permit Holders that are Permit Holders will submit other issuers, brokers, or dealers. required to submit FOCUS Reports to financial reports, will provide for a In particular, the Exchange believes the Exchange currently do so more efficient and effective process for that the proposed change will create a electronically in a manner similar to the collection, tracking, consolidation, more efficient and effective process for what will be required when submission and review of Trading Permit Holders’ the Exchange’s regulatory services through the Firm Gateway system financial reports. provider, FINRA, to collect and review becomes mandatory, thus resulting in Many Trading Permit Holders are Trading Permit Holders’ FOCUS Reports minimal additional burden. While some FINRA members and thus already have required to be filed with the Exchange, Trading Permit Holders will no longer access to and submit reports via the which fosters cooperation and be able submit hard copies of FOCUS Firm Gateway system. Additionally, the coordination with FINRA in its Reports, the Exchange believes that any majority of Trading Permit Holders that performance of regulatory services with burden imposed by the proposed rule currently submit FOCUS Reports to the respect to Trading Permit Holders and change is minimal and outweighed by Exchange do so electronically, and CBOE’s markets. By enhancing the the regulatory efficiencies that may be CBOE understands that the FINRA e- process through which the Exchange gained through electronic submission FOCUS system operates in a similar (through its regulatory services directly to the Exchange’s regulatory manner to the WinJammer system, as provider) receives FOCUS Reports and services provider, who will be able to they are both web-based systems into allowing consolidation with other more efficiently and effectively review which Trading Permit Holders sign in financial reports for electronic review, FOCUS Reports together with other and input the relevant information. the Exchange believes the proposed rule financial reports in its system. The Thus, the Exchange does not anticipate change will promote just and equitable Exchange does not believe that the that Trading Permit Holders who principles of trade and ultimately proposed rule changes will impose any currently submit FOCUS Reports protect investors. Additionally, upon burden on intermarket competition, as through WinJammer will experience any implementation, all Trading Permit the proposed rule change is for significant systemic or operational Holders that are required to submit regulatory purposes to enhance the burden in order to submit FOCUS FOCUS Reports to the Exchange will be process for Trading Permit Holders’ Reports via the Firm Gateway system. required to submit them in the same submission and the Exchange’s The proposed rule change also makes (and thus nondiscriminatory) electronic collection, tracking, consolidation, and technical, nonsubstantive changes to: manner. Regulation of Trading Permits review (through its regulatory services • Conform language in current Rule Holders continues to be performed by provider) of FOCUS Reports. 15.5, Interpretations and Policies .02 electronic processes, and thus the Exchange believes it is appropriate to C. Self-Regulatory Organization’s and .03; Statement on Comments on the • renumber Interpretations and require electronic submission of these reports so that they may be incorporated Proposed Rule Change Received From Policies .02 and .03 to .01 and .02, into these processes. By maintaining the Members, Participants, or Others respectively, as current .01 is only reserved; and flexibility within the rules for the The Exchange neither solicited nor • specify in the Rules that CBOE will Exchange to prescribe by Regulatory received comments on the proposed announce the applicable system or Circular which system or software will rule change. software by Regulatory Circular (as is be used for the submission of FOCUS Reports, the Exchange believes it will be III. Date of Effectiveness of the specified in Rule 15.5 for other financial Proposed Rule Change and Timing for reports). able to adjust, as necessary, its standards of financial reporting in a Commission Action 2. Statutory Basis timely manner, particularly to the extent Because the foregoing proposed rule The Exchange believes that the that new or enhanced software or change does not: (i) Significantly affect proposed rule change is consistent with systems are developed for this the protection of investors or the public Section 6(b) of the Act 9 in general, and purpose.11 As discussed above, CBOE’s interest; (ii) impose any significant furthers the objectives of Section 6(b)(5) and other exchanges’ rules maintain this burden on competition; and (iii) become of the Act 10 in particular, in that it is flexibility. operative for 30 days from the date on designed to promote just and equitable B. Self-Regulatory Organization’s which it was filed, or such shorter time principles of trade, to remove Statement on Burden on Competition as the Commission may designate, it has impediments to, and perfect the become effective pursuant to Section The Exchange does not believe that 19(b)(3)(A) of the Act 12 and mechanism of, a free and open market the proposed rule changes will impose subparagraph (f)(6) of Rule 19b–4 13 and a national market system, and, in any burden on competition that is not thereunder. mstockstill on DSK4VPTVN1PROD with NOTICES include the manner of filing for other financial necessary or appropriate in furtherance At any time within 60 days of the reports. See Rule 15.5, Interpretation and Policy .02; of the purposes of the Act. The filing of the proposed rule change, the see also, e.g. BATS Exchange, Inc. Rule 24.3; proposed rule change requires all Commission summarily may International Securities Exchange, LLC Rule 1402; and Miami International Securities Exchange, LLC temporarily suspend such rule change if 11 To the extent CBOE changes the FOCUS Report (which rules do not specify an electronic system for it appears to the Commission that such submission software or system in the future, CBOE the submission of any financial reports). represents it will provide Trading Permit Holders 9 15 U.S.C. 78f(b). 12 15 U.S.C. 78s(b)(3)(A). with sufficient notice to comply with any such 10 15 U.S.C. 78f(b)(5). changes. 13 17 CFR 240.19b–4(f)(6). VerDate Sep<11>2014 17:18 Apr 28, 2015 Jkt 235001 PO 00000 Frm 00085 Fmt 4703 Sfmt 4703 E:\FR\FM\29APN1.SGM 29APN1

23846 Federal Register / Vol. 80, No. 82 / Wednesday, April 29, 2015 / Notices action is: (i) Necessary or appropriate in All submissions should refer to File series to create and redeem Shares in the public interest; (ii) for the protection Number SR–CBOE–2015–040 and kind in a master-feeder structure. The of investors; or (iii) otherwise in should be submitted on or before May Order would incorporate by reference furtherance of the purposes of the Act. 20, 2015. terms and conditions of a previous order If the Commission takes such action, the For the Commission, by the Division of granting the same relief sought by Commission shall institute proceedings Trading and Markets, pursuant to delegated applicants, as that order may be to determine whether the proposed rule authority.14 amended from time to time (‘‘Reference change should be approved or Brent J. Fields, Order’’).1 disapproved. Secretary. Filing Dates: The application was [FR Doc. 2015–09916 Filed 4–28–15; 8:45 am] filed on March 31, 2015. IV. Solicitation of Comments Hearing or Notification of Hearing: An BILLING CODE 8011–01–P Interested persons are invited to order granting the requested relief will submit written data, views, and be issued unless the Commission orders arguments concerning the foregoing, SECURITIES AND EXCHANGE a hearing. Interested persons may including whether the proposed rule COMMISSION request a hearing by writing to the change is consistent with the Act. Commission’s Secretary and serving Comments may be submitted by any of [Investment Company Act Release No. applicants with a copy of the request, 31576; 812–14439] personally or by mail. Hearing requests the following methods: should be received by the Commission Electronic Comments Hartford Funds NextShares Trust, et by 5:30 p.m. on May 18, 2015, and al.; Notice of Application • Use the Commission’s Internet should be accompanied by proof of comment form (http://www.sec.gov/ April 23, 2015. service on applicants, in the form of an rules/sro.shtml); or AGENCY: Securities and Exchange affidavit or, for lawyers, a certificate of • Send an email to rule-comments@ Commission (‘‘Commission’’). service. Pursuant to rule 0–5 under the sec.gov. Please include File Number SR– ACTION: Notice of an application for an Act, hearing requests should state the CBOE–2015–040 on the subject line. order under section 6(c) of the nature of the writer’s interest, any facts Investment Company Act of 1940 bearing upon the desirability of a Paper Comments hearing on the matter, the reason for the (‘‘Act’’) for an exemption from sections • Send paper comments in triplicate 2(a)(32), 5(a)(1), 22(d) and 22(e) of the request, and the issues contested. to Brent J. Fields, Secretary, Securities Act and rule 22c–1 under the Act, under Persons who wish to be notified of a and Exchange Commission, 100 F Street sections 6(c) and 17(b) of the Act for an hearing may request notification by NE., Washington, DC 20549–1090. exemption from sections 17(a)(1) and writing to the Commission’s Secretary. (a)(2) of the Act, and under section ADDRESSES: The Commission: Brent J. All submissions should refer to File 12(d)(1)(J) of the Act for an exemption Fields, Secretary, U.S. Securities and Number SR–CBOE–2015–040. This file from sections 12(d)(1)(A) and (B) of the Exchange Commission, 100 F Street NE., number should be included on the Act. Washington, DC 20549–1090. subject line if email is used. To help the Applicants: Edward Macdonald, Esq., 5 Commission process and review your Applicants: Hartford Funds Radnor Corporate Center–Suite 300, 100 comments more efficiently, please use NextShares Trust (the ‘‘Trust’’), Hartford Matsonford Road, Radnor, PA 19087. only one method. The Commission will Funds Management Company, LLC (the FOR FURTHER INFORMATION CONTACT: Jean post all comments on the Commission’s ‘‘Adviser’’) and Hartford Funds Internet Web site (http://www.sec.gov/ E. Minarick, Senior Counsel, or Daniele Distributors, LLC (the ‘‘Distributor’’). Marchesani, Branch Chief, at (202) 551– rules/sro.shtml). Summary of Application: Applicants 6821 (Division of Investment Copies of the submission, all request an order (‘‘Order’’) that permits: Management, Chief Counsel’s Office). subsequent amendments, all written (a) Actively managed series of certain statements with respect to the proposed SUPPLEMENTARY INFORMATION: The open-end management investment rule change that are filed with the following is a summary of the companies to issue shares (‘‘Shares’’) Commission, and all written application. The complete application redeemable in large aggregations only communications relating to the (‘‘Creation Units’’); (b) secondary market may be obtained via the Commission’s proposed rule change between the transactions in Shares to occur at the Web site by searching for the file Commission and any person, other than next-determined net asset value plus or number, or for an applicant using the those that may be withheld from the minus a market-determined premium or Company name box, at http:// public in accordance with the discount that may vary during the www.sec.gov/search/search.htm or by provisions of 5 U.S.C. 552, will be trading day; (c) certain series to pay calling (202) 551–8090. available for Web site viewing and redemption proceeds, under certain Applicants: printing in the Commission’s Public circumstances, more than seven days 1. The Trust will be registered as an Reference Room, 100 F Street NE., from the tender of Shares for open-end management investment Washington, DC 20549 on official redemption; (d) certain affiliated company under the Act and is a business days between the hours of persons of the series to deposit statutory trust organized under the laws 10:00 a.m. and 3:00 p.m. Copies of the securities into, and receive securities of Delaware. Applicants seek relief with filing also will be available for from, the series in connection with the respect to four Funds (as defined below, mstockstill on DSK4VPTVN1PROD with NOTICES inspection and copying at the principal purchase and redemption of Creation and those Funds, the ‘‘Initial Funds’’). office of the Exchange. All comments Units; (e) certain registered management The portfolio positions of each Fund received will be posted without change; investment companies and unit will consist of securities and other the Commission does not edit personal investment trusts outside of the same assets selected and managed by its identifying information from group of investment companies as the submissions. You should submit only series to acquire Shares; and (f) certain 1 Eaton Vance Management, et al., Investment information that you wish to make Company Act Rel. Nos. 31333 (Nov. 6, 2014) available publicly. 14 See 17 CFR 200.30–3(a)(12). (notice) and 31361 (Dec. 2, 2014) (order). VerDate Sep<11>2014 17:18 Apr 28, 2015 Jkt 235001 PO 00000 Frm 00086 Fmt 4703 Sfmt 4703 E:\FR\FM\29APN1.SGM 29APN1


Document Created: 2015-12-16 08:26:19
Document Modified: 2015-12-16 08:26:19
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation80 FR 23844 
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