80 FR 35406 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Update Regulatory Related References
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 118 (June 19, 2015)
Federal Register Volume 80, Issue 118 (June 19, 2015)
| Page Range | 35406-35407 | |
| FR Document | 2015-15044 |
[Federal Register Volume 80, Number 118 (Friday, June 19, 2015)] [Notices] [Pages 35406-35407] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-15044] [[Page 35406]] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75173; File No. SR-CBOE-2015-027] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Update Regulatory Related References June 15, 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 June 2, 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, of which Items I and III have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend its rules to update regulatory related references. 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 recently entered into a Regulatory Services Agreement (``RSA'') with the Financial Industry Regulatory Authority, Inc. (``FINRA''), pursuant to which FINRA, among other things, will provide certain regulatory services to the Exchange.\3\ As such, the Exchange proposes to make conforming changes to its rules to account for the new regulatory structure. --------------------------------------------------------------------------- \3\ The Commission notes that while the Exchange has entered into an RSA with FINRA to provide regulatory services, the Exchange retains ultimate legal responsibility for, and control of, its self- regulatory responsibilities. See, e.g., CBOE Rule 15.9(b) (``The Exchange may enter into one or more agreements with another self- regulatory organization to provide regulatory services to the Exchange to assist the Exchange in discharging its obligations under Section 6 and Section 19(g) of the Securities Exchange Act of 1934. Any action taken by another self-regulatory organization, or its employees or authorized agents, acting on behalf of the Exchange pursuant to a regulatory services agreement shall be deemed to be an action taken by the Exchange; provided, however, that nothing in this provision shall affect the oversight of such other self- regulatory organization by the Securities and Exchange Commission. Notwithstanding the fact that the Exchange may enter into one or more regulatory services agreements, the Exchange shall retain ultimate legal responsibility for, and control of, its self- regulatory responsibilities, and any such regulatory services agreement shall so provide.''). --------------------------------------------------------------------------- First, the Exchange seeks to rename the ``Regulatory Services Division'' to ``Regulatory Division'' and make conforming changes in Exchange Rules. As such, the Exchange seeks to replace all references to ``Regulatory Services Division'' with ``Regulatory Division'' in Exchange Rules 4.4 (Gratuities), 10.12 (Mandatory Closing of Fails), 10.14 (Procedure for Closing Defaulted Contract), and 17.2 (Complaint and Investigation). Next, the Exchange seeks to eliminate references to ``Office of Enforcement'' in the Exchange Rules. By way of background, the Office of Enforcement was responsible for resolving disciplinary matters on behalf of the Exchange, which included negotiating settlements in disciplinary cases for the Business Conduct Committee's (``BCC'') consideration and in situations where a respondent in a disciplinary matter did not seek settlement, preparing and presenting the case for hearing before the BCC, as well as handling any subsequent appeals. The Exchange notes that while it continues to have responsibility for enforcing compliance with its rules, the Office of Enforcement services mentioned above transitioned to FINRA pursuant to the FINRA RSA. The Exchange therefore seeks to (i) remove the term ``Office of Enforcement'' from Rule 4.4 (Gratuities) and (ii) replace the term with ``Regulatory Division'' in Rules 17.9 (Decision) and 17.10 (Review), as ``Office of Enforcement'' is obsolete in light of the transition of certain regulatory functions to FINRA. Next, the Exchange seeks to replace current references to ``Exchange's Regulatory staff'' and ``Regulatory staff of the Exchange'' to ``Regulatory staff'' in Exchange Rules 17.2 (Complaint and Investigation), 17.3 (Expedited Proceeding), 17.4 (Charges), and 17.8 (Offers of Settlement), as reference to Regulatory staff may now also refer to employees of FINRA who are performing regulatory services to the Exchange in accordance with the abovementioned RSA, not just employees of the Exchange. Finally, the Exchange proposes to provide in Interpretation .05 of Rule 17.2 that references to ``Regulatory staff'' in Chapter XVII means the Exchange's employees in the Regulatory Division and ``as applicable, may also mean employees of the Financial Industry Regulatory Authority, Inc. (``FINRA'') who are performing regulatory services to the Exchange in accordance with the regulatory services agreement entered into between the Exchange and FINRA.'' The Exchange believes the proposed clarifications maintain clarity in the rules and alleviate confusion. The Exchange notes that these are clarifying, non-substantive changes. 2. Statutory Basis The Exchange believes the proposed rule changes are 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 changes are 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 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. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78f(b). \5\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- [[Page 35407]] In particular, the Exchange believes that removing the obsolete term ``Office of Enforcement'' from the rules, conforming references relating to Regulatory staff and expressly stating that references to ``Regulatory staff'' may refer to staff at FINRA who are performing regulatory services to the Exchange in accordance with the RSA, maintains clarity in the rules and eliminates potential confusion. The alleviation of potential confusion will remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, protect investors and the public interest. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange 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. The proposed changes to conform Exchange rules and alleviate confusion are not intended for competitive reasons and only apply to CBOE. The Exchange also does not believe the proposed rule change effects intramarket or intermarket competition, and notes that no rights or obligations of Trading Permit Holders are affected by the change. 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 \6\ and paragraph (f) of Rule 19b-4 \7\ 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. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78s(b)(3)(A). \7\ 17 CFR 240.19b-4(f). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to rule-comments@sec.gov. Please include File Number SR-CBOE-2015-027 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-2015-027. 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-2015-027, and should be submitted on or before July 10, 2015. --------------------------------------------------------------------------- \8\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\8\ Robert W. Errett, Deputy Secretary. [FR Doc. 2015-15044 Filed 6-18-15; 8:45 am] BILLING CODE 8011-01-P
![35406 Federal Register / Vol. 80, No. 118 / Friday, June 19, 2015 / Notices
SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s The Exchange therefore seeks to (i)
COMMISSION Statement of the Purpose of, and remove the term ‘‘Office of
Statutory Basis for, the Proposed Rule Enforcement’’ from Rule 4.4 (Gratuities)
[Release No. 34–75173; File No. SR–CBOE– Change and (ii) replace the term with
2015–027] ‘‘Regulatory Division’’ in Rules 17.9
1. Purpose
(Decision) and 17.10 (Review), as
Self-Regulatory Organizations; The Exchange recently entered into a ‘‘Office of Enforcement’’ is obsolete in
Chicago Board Options Exchange, Regulatory Services Agreement (‘‘RSA’’) light of the transition of certain
Incorporated; Notice of Filing and with the Financial Industry Regulatory regulatory functions to FINRA. Next, the
Immediate Effectiveness of a Proposed Authority, Inc. (‘‘FINRA’’), pursuant to Exchange seeks to replace current
which FINRA, among other things, will references to ‘‘Exchange’s Regulatory
Rule Change To Update Regulatory
provide certain regulatory services to staff’’ and ‘‘Regulatory staff of the
Related References
the Exchange.3 As such, the Exchange Exchange’’ to ‘‘Regulatory staff’’ in
June 15, 2015. proposes to make conforming changes to Exchange Rules 17.2 (Complaint and
its rules to account for the new Investigation), 17.3 (Expedited
Pursuant to Section 19(b)(1) of the regulatory structure. Proceeding), 17.4 (Charges), and 17.8
Securities Exchange Act of 1934 (the First, the Exchange seeks to rename (Offers of Settlement), as reference to
‘‘Act’’),1 and Rule 19b–4 thereunder,2 the ‘‘Regulatory Services Division’’ to Regulatory staff may now also refer to
notice is hereby given that on June 2, ‘‘Regulatory Division’’ and make employees of FINRA who are
2015, Chicago Board Options Exchange, conforming changes in Exchange Rules. performing regulatory services to the
Incorporated (the ‘‘Exchange’’ or As such, the Exchange seeks to replace Exchange in accordance with the
‘‘CBOE’’) filed with the Securities and all references to ‘‘Regulatory Services abovementioned RSA, not just
Exchange Commission (the Division’’ with ‘‘Regulatory Division’’ in employees of the Exchange. Finally, the
‘‘Commission’’) the proposed rule Exchange Rules 4.4 (Gratuities), 10.12 Exchange proposes to provide in
change as described in Items I, II, and (Mandatory Closing of Fails), 10.14 Interpretation .05 of Rule 17.2 that
III below, of which Items I and III have (Procedure for Closing Defaulted references to ‘‘Regulatory staff’’ in
been prepared by the Exchange. The Contract), and 17.2 (Complaint and Chapter XVII means the Exchange’s
Commission is publishing this notice to Investigation). employees in the Regulatory Division
solicit comments on the proposed rule Next, the Exchange seeks to eliminate and ‘‘as applicable, may also mean
change from interested persons. references to ‘‘Office of Enforcement’’ in employees of the Financial Industry
the Exchange Rules. By way of Regulatory Authority, Inc. (‘‘FINRA’’)
I. Self-Regulatory Organization’s background, the Office of Enforcement who are performing regulatory services
Statement of the Terms of Substance of was responsible for resolving to the Exchange in accordance with the
the Proposed Rule Change disciplinary matters on behalf of the regulatory services agreement entered
Exchange, which included negotiating into between the Exchange and FINRA.’’
The Exchange proposes to amend its settlements in disciplinary cases for the The Exchange believes the proposed
rules to update regulatory related Business Conduct Committee’s (‘‘BCC’’) clarifications maintain clarity in the
references. The text of the proposed rule consideration and in situations where a rules and alleviate confusion. The
change is available on the Exchange’s respondent in a disciplinary matter did Exchange notes that these are clarifying,
Web site (http://www.cboe.com/ not seek settlement, preparing and non-substantive changes.
AboutCBOE/ presenting the case for hearing before
CBOELegalRegulatoryHome.aspx), at the BCC, as well as handling any 2. Statutory Basis
the Exchange’s Office of the Secretary, subsequent appeals. The Exchange notes The Exchange believes the proposed
and at the Commission’s Public that while it continues to have rule changes are consistent with the
Reference Room. responsibility for enforcing compliance Securities Exchange Act of 1934 (the
with its rules, the Office of Enforcement ‘‘Act’’) and the rules and regulations
II. Self-Regulatory Organization’s
services mentioned above transitioned thereunder applicable to the Exchange
Statement of the Purpose of, and to FINRA pursuant to the FINRA RSA.
Statutory Basis for, the Proposed Rule and, in particular, the requirements of
Change 3 The Commission notes that while the Exchange
Section 6(b) of the Act.4 Specifically,
has entered into an RSA with FINRA to provide
the Exchange believes the proposed rule
In its filing with the Commission, the regulatory services, the Exchange retains ultimate changes are consistent with the Section
Exchange included statements legal responsibility for, and control of, its self- 6(b)(5) 5 requirements that the rules of
regulatory responsibilities. See, e.g., CBOE Rule an exchange be designed to prevent
concerning the purpose of and basis for 15.9(b) (‘‘The Exchange may enter into one or more
the proposed rule change and discussed agreements with another self-regulatory
fraudulent and manipulative acts and
any comments it received on the organization to provide regulatory services to the practices, to promote just and equitable
proposed rule change. The text of these Exchange to assist the Exchange in discharging its principles of trade, to foster cooperation
obligations under Section 6 and Section 19(g) of the and coordination with persons engaged
statements may be examined at the Securities Exchange Act of 1934. Any action taken
places specified in Item IV below. The by another self-regulatory organization, or its
in regulating, clearing, settling,
Exchange has prepared summaries, set employees or authorized agents, acting on behalf of processing information with respect to,
and facilitating transactions in
asabaliauskas on DSK5VPTVN1PROD with NOTICES
the Exchange pursuant to a regulatory services
forth in sections A, B, and C below, of agreement shall be deemed to be an action taken by securities, to remove impediments to
the most significant aspects of such the Exchange; provided, however, that nothing in
and perfect the mechanism of a free and
statements. this provision shall affect the oversight of such
other self-regulatory organization by the Securities open market and a national market
and Exchange Commission. Notwithstanding the system, and, in general, to protect
fact that the Exchange may enter into one or more investors and the public interest.
regulatory services agreements, the Exchange shall
retain ultimate legal responsibility for, and control
1 15 U.S.C. 78s(b)(1). 4 15
of, its self-regulatory responsibilities, and any such U.S.C. 78f(b).
2 17 CFR 240.19b–4. regulatory services agreement shall so provide.’’). 5 15 U.S.C. 78f(b)(5).
VerDate Sep<11>2014 19:33 Jun 18, 2015 Jkt 235001 PO 00000 Frm 00108 Fmt 4703 Sfmt 4703 E:\FR\FM\19JNN1.SGM 19JNN1](https://thefederalregister.org/doc/80_FR_35524/page/1.svg)
![Federal Register / Vol. 80, No. 118 / Friday, June 19, 2015 / Notices 35407
In particular, the Exchange believes IV. Solicitation of Comments For the Commission, by the Division of
that removing the obsolete term ‘‘Office Trading and Markets, pursuant to delegated
of Enforcement’’ from the rules, Interested persons are invited to authority.8
conforming references relating to submit written data, views, and Robert W. Errett,
Regulatory staff and expressly stating arguments concerning the foregoing, Deputy Secretary.
that references to ‘‘Regulatory staff’’ may including whether the proposed rule [FR Doc. 2015–15044 Filed 6–18–15; 8:45 am]
refer to staff at FINRA who are change is consistent with the Act. BILLING CODE 8011–01–P
performing regulatory services to the Comments may be submitted by any of
Exchange in accordance with the RSA, the following methods:
maintains clarity in the rules and SECURITIES AND EXCHANGE
Electronic Comments COMMISSION
eliminates potential confusion. The
alleviation of potential confusion will • Use the Commission’s Internet [Investment Company Act Release No.
remove impediments to and perfect the comment form (http://www.sec.gov/ 31669; 812–14440]
mechanism of a free and open market rules/sro.shtml); or
and a national market system, and, in FFI Advisors, LLC, et al.; Notice of
• Send an email to rule-comments@ Application
general, protect investors and the public
sec.gov. Please include File Number SR–
interest.
CBOE–2015–027 on the subject line. June 15, 2015.
B. Self-Regulatory Organization’s AGENCY: Securities and Exchange
Statement on Burden on Competition Paper Comments Commission (‘‘Commission’’).
The Exchange does not believe that • Send paper comments in triplicate ACTION: Notice of an application for an
to Secretary, Securities and Exchange order under section 6(c) of the
the proposed rule change will impose Investment Company Act of 1940 (the
any burden on competition that is not Commission, 100 F Street NE.,
Washington, DC 20549–1090. ‘‘Act’’) for an exemption from sections
necessary or appropriate in furtherance 2(a)(32), 5(a)(1), 22(d), and 22(e) of the
of the purposes of the Act. The All submissions should refer to File Act and rule 22c–1 under the Act, under
proposed changes to conform Exchange Number SR–CBOE–2015–027. This file sections 6(c) and 17(b) of the Act for an
rules and alleviate confusion are not number should be included on the exemption from sections 17(a)(1) and
intended for competitive reasons and subject line if email is used. To help the 17(a)(2) of the Act, and under section
only apply to CBOE. The Exchange also Commission process and review your 12(d)(1)(J) for an exemption from
does not believe the proposed rule comments more efficiently, please use sections 12(d)(1)(A) and 12(d)(1)(B) of
change effects intramarket or only one method. The Commission will the Act.
intermarket competition, and notes that post all comments on the Commission’s
no rights or obligations of Trading Internet Web site (http://www.sec.gov/ SUMMARY OF APPLICATION: Applicants
Permit Holders are affected by the request an order that would permit (a)
rules/sro.shtml). Copies of the
change. series of certain open-end management
submission, all subsequent
C. Self-Regulatory Organization’s amendments, all written statements investment companies to issue shares
Statement on Comments on the with respect to the proposed rule (‘‘Shares’’) redeemable in large
Proposed Rule Change Received From aggregations only (‘‘Creation Units’’); (b)
change that are filed with the
Members, Participants, or Others secondary market transactions in Shares
Commission, and all written
to occur at negotiated market prices
communications relating to the
The Exchange neither solicited nor rather than at net asset value (‘‘NAV’’);
proposed rule change between the (c) certain series to pay redemption
received comments on the proposed
Commission and any person, other than proceeds, under certain circumstances,
rule change.
those that may be withheld from the more than seven days after the tender of
III. Date of Effectiveness of the public in accordance with the Shares for redemption; (d) certain
Proposed Rule Change and Timing for provisions of 5 U.S.C. 552, will be affiliated persons of the series to deposit
Commission Action available for Web site viewing and securities into, and receive securities
printing in the Commission’s Public from, the series in connection with the
The foregoing rule change has become Reference Room, 100 F Street NE.,
effective pursuant to Section 19(b)(3)(A) purchase and redemption of Creation
Washington, DC 20549, on official Units; and (e) certain registered
of the Act 6 and paragraph (f) of Rule
business days between the hours of management investment companies and
19b–4 7 thereunder. At any time within
10:00 a.m. and 3:00 p.m. Copies of the unit investment trusts outside of the
60 days of the filing of the proposed rule
filing also will be available for same group of investment companies as
change, the Commission summarily may
inspection and copying at the principal the series to acquire Shares.
temporarily suspend such rule change if
it appears to the Commission that such office of the Exchange. All comments APPLICANTS: FFI Advisors, LLC
action is necessary or appropriate in the received will be posted without change; (‘‘FFIA’’), ETF Series Solutions
public interest, for the protection of the Commission does not edit personal (‘‘Trust’’) and Quasar Distributors, LLC
investors, or otherwise in furtherance of identifying information from (‘‘Quasar’’).
the purposes of the Act. If the submissions. You should submit only FILING DATES: The application was filed
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Commission takes such action, the information that you wish to make on April 2, 2015, and amended on May
Commission will institute proceedings available publicly. All submissions 20, 2015.
to determine whether the proposed rule should refer to File Number SR–CBOE– HEARING OR NOTIFICATION OF HEARING:
change should be approved or 2015–027, and should be submitted on An order granting the requested relief
disapproved. or before July 10, 2015. will be issued unless the Commission
orders a hearing. Interested persons may
6 15 U.S.C. 78s(b)(3)(A). request a hearing by writing to the
7 17 CFR 240.19b–4(f). 8 17 CFR 200.30–3(a)(12). Commission’s Secretary and serving
VerDate Sep<11>2014 19:33 Jun 18, 2015 Jkt 235001 PO 00000 Frm 00109 Fmt 4703 Sfmt 4703 E:\FR\FM\19JNN1.SGM 19JNN1](https://thefederalregister.org/doc/80_FR_35524/page/2.svg)
Document Created: 2018-02-22 11:10:23
Document Modified: 2018-02-22 11:10:23
| 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 35406 |
2024 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR