80 FR 30306 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of a Proposed Rule Change Relating to Rule 6.53C and Complex Orders on the Hybrid System

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 101 (May 27, 2015)

Page Range		30306-30308
FR Document		2015-12687
Federal Register, Volume 80 Issue 101 (Wednesday, May 27, 2015)
[Federal Register Volume 80, Number 101 (Wednesday, May 27, 2015)]
[Notices]
[Pages 30306-30308]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-12687]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75003; File No. SR-CBOE-2015-045]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing of a Proposed Rule Change Relating to 
Rule 6.53C and Complex Orders on the Hybrid System

May 20, 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 May 12, 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 modify Rule 6.53C, Complex Orders on the 
Hybrid System, to give the Exchange the flexibility to distinguish 
between Professional and non-Professional orders for the purposes of 
determining eligibility for COA. The text of the proposed rule change 
is provided below.
    (additions are italicized; deletions are [bracketed])
* * * * *

Chicago Board Options Exchange, Incorporated

Rules

* * * * *

Rule 6.53C. Complex Orders on the Hybrid System

    (a)-(b) No change.
    (c) Complex Order Book
    (i) Routing of Complex orders: The Exchange will determine which 
classes and which complex order origin [types] codes (i.e., non-broker-
dealer public customers that are not Voluntary Professional Customers 
or Professional Customers, non-broker-dealer public customers that are 
Voluntary Professional Customers or Professional Customers, broker-
dealers that are not Market-Makers or specialists on an options 
exchange, and/or Market-Makers or specialists on an options exchange) 
are eligible for entry into the COB and whether such complex orders can 
route directly to the COB and/or from PAR to the COB. Complex orders 
not eligible to route to COB (either directly or from PAR to COB) will 
route to PAR or at the order entry firm's discretion to the order entry 
firm's booth.
    (ii)-(iv) No change.
    (d) Process for Complex Order RFR Auction: Prior to routing to the 
COB or once on PAR, eligible complex orders may be subject to an 
automated request for responses (``RFR'') auction process.
    (i) For purposes of paragraph (d):
    (1) No Change.
    (2) A ``COA-eligible order'' means a complex order that, as 
determined by the Exchange on a class-by-class basis, is eligible for a 
COA considering the order's marketability (defined as a number of ticks 
away from the current market), size, complex order type (as defined in 
paragraphs (a) and (b) above) and complex order origin [types] codes 
(as defined in subparagraph (c)(i) above). Complex orders processed 
through a COA may be executed without consideration to prices of the 
same complex orders that might be available on other exchanges.
* * * * *
    The text of the proposed rule change is also available on the 
Exchange's Web site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the 
Secretary, and at the Commission's Public Reference Room.

[[Page 30307]]

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 seeks to modify Rule 6.53C to allow the Exchange to 
further distinguish between the complex order origin types \3\ that are 
eligible for the Complex Order Book (``COB'') and the Complex Order 
Auction (``COA'').
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    \3\ The Exchange notes that many CBOE rules use origin ``code'' 
in the same manner as origin ``type'' is used in Rule 6.53C(c). For 
example, Rules 6.2B(a)(i), 6.13(b)(i), 6.13A(a), 6.14A(a), 6.74A.07, 
6.74B.01, 24B.5A, and 24B.5B use origin ``code'' to distinguish 
between public customer orders, non-Market Maker broker-dealer 
orders, and Market Maker broker-dealer orders). This proposal seeks 
to, among other things, amend Rule 6.53C(c) to use origin ``code'' 
instead of ``type'' in order to make the rules more consistent.
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Background
    Under CBOE rules, a ``public customer'' or ``customer'' is a person 
or entity that is neither a member nor a broker/dealer. The terms are 
used in specific CBOE rules that provide certain marketplace advantages 
to public customer orders over non-customer orders (e.g., orders for 
the account of members or broker/dealers). In particular, under CBOE 
rules, subject to certain exceptions, (i) public customer orders are 
given priority over non-customer orders and Market-Maker quotes at the 
same price,\4\ and (ii) Trading Permit Holders are generally not 
charged a transaction fee for the execution of public customer orders. 
The purpose of providing these marketplace advantages to public 
customer orders is to attract retail investor order flow to the 
Exchange by leveling the playing field for retail investors over market 
professionals \5\ and providing competitive pricing.
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    \4\ See, e.g., CBOE Rules 6.45, Priority of Bids and Offers--
Allocation of Trades, 6.45A, Priority and Allocation of Equity 
Options Trades on the CBOE Hybrid System, and 6.45B, Priority and 
Allocation of Trades in Index Options and Options on ETFs on the 
CBOE Hybrid System.
    \5\ Market professionals have access to sophisticated trading 
systems that contain functionality not available to retail 
customers, including things such as continuously updated pricing 
models based upon real-time streaming data, access to multiple 
markets simultaneously, and order and risk management tools.
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    To ensure that the above mentioned marketplace advantages for 
public customers are protected, the Exchange adopted the terms 
``Voluntary Professional'' and ``Professional'' (hereinafter 
``Professional(s)'') in Rule 1.1(fff) and (ggg) respectively, which 
provide that Professionals are not brokers or dealers but will be 
treated in the same manner as brokers or dealers for purposes of many 
CBOE rules (including, e.g., Rules 6.53C(c)(ii) and 6.53C(d)(v)).\6\
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    \6\ See Securities Exchange Act Release No. 34-61198 (December 
17, 2009), 74 FR 68880 (December 29, 2009) (SR-CBOE-2009-078) (order 
approving proposed rule change as relating to professional orders). 
A Professional is a person or entity that (i) is not a broker or 
dealer in securities, and (ii) places more than 390 orders in listed 
options per day on average during a calendar month for its own 
beneficial account(s). A Voluntary Professional is any person or 
entity that is not a broker or dealer that elects to be treated as a 
Professional.
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    COA is a feature within CBOE's Hybrid System that exposes eligible 
complex orders for price improvement. In classes where COA is 
activated, eligible orders are electronically exposed for an exposure 
period. During the applicable exposure period, the orders that are 
subject to exposure are eligible to receive a better price. At the 
conclusion of the COA process, as applicable, the order is then 
allocated or, to the extent not executed, booked or routed as described 
in the relevant rules.
    A ``COA-eligible order'' means a complex order that, as determined 
by the Exchange on a class-by-class basis, is eligible for COA 
considering the order's marketability (defined as a number of ticks 
away from the current market), size, complex order type (as defined in 
paragraphs (a) and (b) of Rule 6.53C and complex order origin types (as 
defined in subparagraph (c)(i) of Rule 6.53C).\7\ Subparagraph (c)(i) 
of Rule 6.53C indicates that complex order origin type means orders for 
non-broker-dealer public customers, broker-dealers that are not Market-
Makers or specialists on an options exchange, and/or Market-Makers or 
specialists on an options exchange.\8\ Non-broker-dealer public 
customers include Professionals and non-professional customers. Under 
the current COA eligibility parameters, there is no distinction between 
Professionals and non-professional public customers.
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    \7\ See Rule 6.53C(d)(i)(2) (indicating that complex order 
origin type is defined in Rule 6.53C(c)(i).
    \8\ See Rule 6.53C(c)(i).
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Proposal
    Currently, Professionals are not given priority, but are allowed to 
cancel and replace their orders as often as they wish without incurring 
any cancellation fees. The issue with this current structure is that 
each of the orders as well as the cancellations and replacements 
generate a new COA. Yet, only a few of these orders actually execute in 
the auction process. Rather, the result is an excess of auction 
messages that are generated unnecessarily. The Exchange notes that a 
disproportionate number of the COA messages in comparison to COA 
executions result from Professionals. Therefore, in order to eliminate 
the clutter of unnecessary Professional COA messages, as well as to 
increase the likelihood of executions for public customers, the 
Exchange is seeking the flexibility to disable COA functionality for 
Professionals.
    In order to gain the flexibility to disable COA functionality for 
Professionals, the Exchange seeks to amend Rule 6.53C(c)(i), which 
defines the complex order origin types (hereinafter origin ``code'' as 
the Exchange is also proposing to change origin ``type'' to origin 
``code'' in order to adopt the manner in which origin ``code'' is used 
in several other Exchange rules) \9\ that are eligible for COA. As 
amended, the definition of a complex order origin code will be defined 
as either: Non-broker-dealer public customers that are not Voluntary 
Professional Customers or Professional Customers; non-broker-dealer 
public customers that are Voluntary Professional Customers or 
Professional Customers; broker-dealers that are not Market-Makers or 
specialists on an options exchange; and/or Market-Makers or specialists 
on an options exchange. The proposal would not, however, permit the 
Exchange to discriminate among individual market participants of the 
same origin code (e.g., permit certain Professional orders to the 
exclusion of orders from a different Professional).
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    \9\ See supra, note 1 [sic].
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    The Exchange is proposing these changes because the Exchange 
believes allowing Professionals to participate in COA can be 
detrimental to non-professional public customer order flow and cause a 
large amount of auctions to be processed without executions arising 
from those auctions. This is because Professionals frequently cancel 
and

[[Page 30308]]

replace their orders and prices as a means of attempting to quote with 
their orders. The Exchange believes that Professionals should not be a 
priority over non-professional public customer order flow, which is 
why, the Exchange notes, there are separate CBOE rules for 
Professionals in the first place.\10\
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    \10\ See Rules 1.1 (fff) and (ggg).
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    The proposed change modifies the definition of a ``COA-eligible 
order'' to give the Exchange the flexibility to distinguish between 
complex orders from Professionals and complex orders from non-
professional public customer order flow. Any changes to the COA-
eligible order parameters would be announced via Regulatory Circular.
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.\11\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \12\ requirements that the rules of an exchange be 
designed to prevent fraudulent and manipulative acts and practices, to 
promote just and equitable principles of trade, to foster cooperation 
and coordination with persons engaged in regulating, clearing, 
settling, processing information with respect to, and facilitating 
transactions in securities, to remove impediments to and perfect the 
mechanism of a free and open market and a national market system, and, 
in general, to protect investors and the public interest. Additionally, 
the Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \13\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers.
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    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(5).
    \13\ Id.
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    In particular, the Exchange believes the proposed change is in 
accordance with the Act as it is merely intended to provide the 
Exchange the flexibility to distinguish between Professionals and non-
professional public customer orders for the purposes of COA, which is 
intended to benefit non-professional public customers by providing a 
more efficient COA for eligible complex orders.

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

    CBOE does not believe that the proposed rule change will impose any 
burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act. Although the Exchange 
recognizes that the proposal will allow the Exchange to exclude 
Professionals from COA, the current rules already allow the Exchange to 
differentiate between order origin types (i.e., non-broker-dealer 
public customer, broker-dealers that are not Market-Makers or 
specialists on an options exchange, and/or Market-Makers or specialist 
on an options exchange). The Exchange believes any perceived burden on 
Professionals would be outweighed by the potential benefits to public 
customers. In addition, the proposal would not permit the Exchange to 
discriminate among individual market participants of the same origin 
code (e.g., the proposal would not allow the Exchange to permit certain 
Professional orders to the exclusion of orders from a different 
Professional).\14\ The Exchange does not believe the proposed changes 
will have any burden on intermarket competition.
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    \14\ See supra, note 5.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

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

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

    Within 45 days of the date of publication of this notice in the 
Federal Register or within such longer period up to 90 days (i) as the 
Commission may designate if it finds such longer period to be 
appropriate and publishes its reasons for so finding or (ii) as to 
which the Exchange consents, the Commission will:
    A. By order approve or disapprove such proposed rule change, or
    B. institute proceedings to determine whether the proposed rule 
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. 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-2015-045 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-CBOE-2015-045. 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-CBOE-2015-045, 
and should be submitted on or before June 17, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-12687 Filed 5-26-15; 8:45 am]
 BILLING CODE 8011-01-P
30306 Federal Register / Vol. 80, No. 101 / Wednesday, May 27, 2015 / Notices

March 18, 2015.5 On February 20, 2015, disapproving the proposed rule change (additions are italicized; deletions are
the Commission issued an order so that it has sufficient time to consider [bracketed])
instituting proceedings pursuant to the proposed rule change, including the * * * * *
Section 19(b)(2)(B) of the Act 6 to matters raised in the comment letters to
determine whether to approve or the proposed rule change. Chicago Board Options Exchange,
disapprove the proposal. This order was Incorporated
Accordingly, the Commission,
published for comment in the Federal pursuant to Section 19(b)(2) of the Rules
Register on February 26, 2015.7 The Act,12 designates July 22, 2015 as the * * * * *
Commission received a further three date by which the Commission shall
comments regarding the proceedings or either approve or disapprove the Rule 6.53C. Complex Orders on the
in response to Amendment No. 1,8 to proposed rule change (File No. SR– Hybrid System
which FINRA responded via letter on FINRA–2014–047).
May 5, 2015.9 (a)–(b) No change.
For the Commission, by the Division of (c) Complex Order Book
Section 19(b)(2) of the Act 10 provides
Trading and Markets, pursuant to delegated
that, after initiating approval or authority.13 (i) Routing of Complex orders: The
disapproval proceedings, the Exchange will determine which classes
Robert W. Errett,
Commission shall issue an order and which complex order origin [types]
Deputy Secretary.
approving or disapproving the proposed codes (i.e., non-broker-dealer public
rule change not later than 180 days after [FR Doc. 2015–12689 Filed 5–26–15; 8:45 am]
customers that are not Voluntary
the date of publication of notice of filing BILLING CODE 8011–01–P Professional Customers or Professional
of the proposed rule change. The Customers, non-broker-dealer public
Commission may extend the period for customers that are Voluntary
issuing an order approving or SECURITIES AND EXCHANGE Professional Customers or Professional
disapproving the proposed rule change, COMMISSION Customers, broker-dealers that are not
however, by not more than 60 days if Market-Makers or specialists on an
the Commission determines that a [Release No. 34–75003; File No. SR–CBOE– options exchange, and/or Market-
longer period is appropriate and 2015–045] Makers or specialists on an options
publishes the reasons for such exchange) are eligible for entry into the
Self-Regulatory Organizations;
determination. The proposal was COB and whether such complex orders
Chicago Board Options Exchange,
published for comment in the Federal can route directly to the COB and/or
Incorporated; Notice of Filing of a
Register on November 24, 2014.11 The from PAR to the COB. Complex orders
Proposed Rule Change Relating to
180th day after publication of the notice not eligible to route to COB (either
Rule 6.53C and Complex Orders on the
of the filing of the proposed rule change directly or from PAR to COB) will route
Hybrid System
in the Federal Register is May 23, 2015 to PAR or at the order entry firm’s
and the 240th day after publication of May 20, 2015. discretion to the order entry firm’s
the notice of the filing of the proposed Pursuant to Section 19(b)(1) of the booth.
rule change in the Federal Register is Securities Exchange Act of 1934 (the (ii)–(iv) No change.
July 22, 2015. ‘‘Act’’),1 and Rule 19b–4 thereunder,2 (d) Process for Complex Order RFR
The Commission finds it appropriate Auction: Prior to routing to the COB or
notice is hereby given that on May 12,
to designate a longer period within once on PAR, eligible complex orders
2015, Chicago Board Options Exchange,
which to issue an order approving or may be subject to an automated request
Incorporated (the ‘‘Exchange’’ or
5 Exchange Act Release No. 74488 (Mar. 12,
‘‘CBOE’’) filed with the Securities and for responses (‘‘RFR’’) auction process.
2015); 80 FR 14174 (Mar. 18, 2015). Exchange Commission (the (i) For purposes of paragraph (d):
6 15 U.S.C. 78s(b)(2)(B). ‘‘Commission’’) the proposed rule (1) No Change.
7 Exchange Act Release No. 74339 (Feb. 20, 2015); change as described in Items I, II, and
(2) A ‘‘COA-eligible order’’ means a
80 FR 10528 (Feb. 26, 2015). Specifically, the III below, which Items have been
Commission instituted proceedings to allow for complex order that, as determined by
prepared by the Exchange. The
additional analysis of the proposed rule change’s the Exchange on a class-by-class basis,
consistency with Section 15A(b)(9) of the Act, Commission is publishing this notice to
is eligible for a COA considering the
which requires that FINRA’s rules be designed to, solicit comments on the proposed rule
order’s marketability (defined as a
among other things, promote just and equitable change from interested persons.
principles of trade, remove impediments to and number of ticks away from the current
perfect the mechanism of a free and open market I. Self-Regulatory Organization’s market), size, complex order type (as
and a national market system, and, in general, to Statement of the Terms of Substance of defined in paragraphs (a) and (b) above)
protect investors and the public interest, and
Section 15D of the Act, which requires rules
the Proposed Rule Change and complex order origin [types] codes
reasonably designed to address conflicts of interest (as defined in subparagraph (c)(i)
that can arise when research analysts recommend
The Exchange proposes to modify above). Complex orders processed
equity securities in research reports and public Rule 6.53C, Complex Orders on the through a COA may be executed
appearances. See id. Hybrid System, to give the Exchange the without consideration to prices of the
8 Letter from Egidio Mogavero, Managing Director
flexibility to distinguish between same complex orders that might be
and Chief Compliance Officer, JMP Securities, Professional and non-Professional
dated Mar. 19, 2015, Letter from Stephanie R. available on other exchanges.
Nicholas, WilmerHale, dated Apr. 6, 2015, and orders for the purposes of determining
* * * * *
mstockstill on DSK4VPTVN1PROD with NOTICES

Letter from William Beatty, President and eligibility for COA. The text of the
Washington (State) Securities Administrator, North proposed rule change is provided The text of the proposed rule change
American Securities Administrators Association, below. is also available on the Exchange’s Web
Inc., dated Apr. 17, 2015. site (http://www.cboe.com/AboutCBOE/
9 Letter from Philip Shaikun, Vice President and

Associate General Counsel, FINRA, dated May 5, 12 15 U.S.C. 78s(b)(2). CBOELegalRegulatoryHome.aspx), at
2015. 13 17 CFR 200.30–3(a)(57). the Exchange’s Office of the Secretary,
10 15 U.S.C. 78s(b)(2). 1 15 U.S.C. 78s(b)(1). and at the Commission’s Public
11 See supra note 3 and accompanying text. 2 17 CFR 240.19b–4. Reference Room.

VerDate Sep<11>2014 16:45 May 26, 2015 Jkt 235001 PO 00000 Frm 00101 Fmt 4703 Sfmt 4703 E:\FR\FM\27MYN1.SGM 27MYN1
30308 Federal Register / Vol. 80, No. 101 / Wednesday, May 27, 2015 / Notices

replace their orders and prices as a burden on competition that is not • Send an email to rule-comments@
means of attempting to quote with their necessary or appropriate in furtherance sec.gov. Please include File Number SR–
orders. The Exchange believes that of the purposes of the Act. Although the CBOE–2015–045 on the subject line.
Professionals should not be a priority Exchange recognizes that the proposal
Paper Comments
over non-professional public customer will allow the Exchange to exclude
order flow, which is why, the Exchange Professionals from COA, the current • Send paper comments in triplicate
notes, there are separate CBOE rules for rules already allow the Exchange to to Secretary, Securities and Exchange
Professionals in the first place.10 differentiate between order origin types Commission, 100 F Street NE.,
The proposed change modifies the (i.e., non-broker-dealer public customer, Washington, DC 20549–1090.
definition of a ‘‘COA-eligible order’’ to broker-dealers that are not Market- All submissions should refer to File
give the Exchange the flexibility to Makers or specialists on an options Number SR–CBOE–2015–045. This file
distinguish between complex orders exchange, and/or Market-Makers or number should be included on the
from Professionals and complex orders specialist on an options exchange). The subject line if email is used. To help the
from non-professional public customer Exchange believes any perceived burden Commission process and review your
order flow. Any changes to the COA- on Professionals would be outweighed comments more efficiently, please use
eligible order parameters would be by the potential benefits to public only one method. The Commission will
announced via Regulatory Circular. customers. In addition, the proposal post all comments on the Commission’s
2. Statutory Basis would not permit the Exchange to Internet Web site (http://www.sec.gov/
discriminate among individual market rules/sro.shtml). Copies of the
The Exchange believes the proposed participants of the same origin code submission, all subsequent
rule change is consistent with the (e.g., the proposal would not allow the amendments, all written statements
Securities Exchange Act of 1934 (the Exchange to permit certain Professional with respect to the proposed rule
‘‘Act’’) and the rules and regulations orders to the exclusion of orders from a change that are filed with the
thereunder applicable to the Exchange different Professional).14 The Exchange Commission, and all written
and, in particular, the requirements of does not believe the proposed changes communications relating to the
Section 6(b) of the Act.11 Specifically, will have any burden on intermarket proposed rule change between the
the Exchange believes the proposed rule competition. Commission and any person, other than
change is consistent with the Section
C. Self-Regulatory Organization’s those that may be withheld from the
6(b)(5) 12 requirements that the rules of
Statement on Comments on the public in accordance with the
an exchange be designed to prevent
Proposed Rule Change Received From provisions of 5 U.S.C. 552, will be
fraudulent and manipulative acts and
Members, Participants, or Others available for Web site viewing and
practices, to promote just and equitable
printing in the Commission’s Public
principles of trade, to foster cooperation The Exchange neither solicited nor Reference Room, 100 F Street NE.,
and coordination with persons engaged received comments on the proposed Washington, DC 20549, on official
in regulating, clearing, settling, rule change. business days between the hours of
processing information with respect to,
III. Date of Effectiveness of the 10:00 a.m. and 3:00 p.m. Copies of such
and facilitating transactions in
Proposed Rule Change and Timing for filing also will be available for
securities, to remove impediments to
Commission Action inspection and copying at the principal
and perfect the mechanism of a free and
Within 45 days of the date of offices of the Exchange. All comments
open market and a national market
publication of this notice in the Federal received will be posted without change;
system, and, in general, to protect
Register or within such longer period the Commission does not edit personal
investors and the public interest.
up to 90 days (i) as the Commission may identifying information from
Additionally, the Exchange believes the
designate if it finds such longer period submissions. You should submit only
proposed rule change is consistent with
to be appropriate and publishes its information that you wish to make
the Section 6(b)(5) 13 requirement that
reasons for so finding or (ii) as to which available publicly. All submissions
the rules of an exchange not be designed
the Exchange consents, the Commission should refer to File Number SR–CBOE–
to permit unfair discrimination between
will: 2015–045, and should be submitted on
customers, issuers, brokers, or dealers.
In particular, the Exchange believes A. By order approve or disapprove or before June 17, 2015.
the proposed change is in accordance such proposed rule change, or For the Commission, by the Division of
with the Act as it is merely intended to B. institute proceedings to determine Trading and Markets, pursuant to delegated
provide the Exchange the flexibility to whether the proposed rule change authority.15
distinguish between Professionals and should be disapproved. Robert W. Errett,
non-professional public customer orders Deputy Secretary.
IV. Solicitation of Comments
for the purposes of COA, which is [FR Doc. 2015–12687 Filed 5–26–15; 8:45 am]
intended to benefit non-professional Interested persons are invited to BILLING CODE 8011–01–P
public customers by providing a more submit written data, views, and
efficient COA for eligible complex arguments concerning the foregoing,
orders. including whether the proposed rule SECURITIES AND EXCHANGE
change is consistent with the Act. COMMISSION
B. Self-Regulatory Organization’s Comments may be submitted by any of
mstockstill on DSK4VPTVN1PROD with NOTICES

Statement on Burden on Competition the following methods: Proposed Collection; Comment
CBOE does not believe that the Request
Electronic Comments
proposed rule change will impose any
• Use the Commission’s Internet Upon Written Request, Copies Available
10 See Rules 1.1 (fff) and (ggg). comment form (http://www.sec.gov/ From: Securities and Exchange
11 15 U.S.C. 78f(b). rules/sro.shtml); or Commission, Office of FOIA Services,
12 15 U.S.C. 78f(b)(5).
13 Id. 14 See supra, note 5. 15 17 CFR 200.30–3(a)(12).

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Document Created: 2015-12-15 15:36:03
Document Modified: 2015-12-15 15:36:03
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 30306