80_FR_38617 80 FR 38489 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend the Fees Schedule

80 FR 38489 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend the Fees Schedule

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 128 (July 6, 2015)

Page Range38489-38491
FR Document2015-16411

Federal Register, Volume 80 Issue 128 (Monday, July 6, 2015)
[Federal Register Volume 80, Number 128 (Monday, July 6, 2015)]
[Notices]
[Pages 38489-38491]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-16411]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75321; File No. SR-CBOE-2015-059]


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

June 29, 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 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, II, and III, below, which Items have been prepared by the 
Exchange. The Commission is publishing this notice to solicit comments 
on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

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

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

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

[[Page 38490]]

the most significant aspects of such statements.

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

1. Purpose
    The Exchange proposes to amend its Fees Schedule. Specifically, the 
Exchange proposes to amend fees for Qualified Contingent Cross 
(``QCC'') transactions. A QCC order is comprised of an order to buy or 
sell at least 1,000 contracts (or 10,000 mini-option contracts) that is 
identified as being part of a qualified contingent trade, coupled with 
a contra side order to buy or sell an equal number of contracts. 
Currently, the Exchange assesses no fee for Customer (``C'' origin) QCC 
transactions and $0.20 per contract side for Clearing Trading Permit 
Holder Proprietary (``F'' or ``L'' origin code) QCC transactions, as 
well as Broker-Dealer, Non-Trading Permit Holder Market Maker, 
Professional/Voluntary Professional and Joint Back-Office QCC 
transactions. Additionally, Market-Maker QCC transactions are subject 
to the Liquidity Provider Sliding Scale. In lieu of the current QCC 
transaction fees stated above, the Exchange proposes to establish a 
transaction fee for all non-customer QCC orders of $0.15 per contract 
side (customer orders will continue to not be assessed a charge). In 
addition, the Exchange proposes to adopt a $0.10 per contract credit 
for the initiating order side, regardless of origin code. The Exchange 
proposes to explicitly provide in the Fees Schedule that a QCC 
transaction is comprised of an `initiating order' to buy (sell) at 
least 1,000 contracts, coupled with a contra-side order to sell (buy) 
an equal number of contracts and that for complex QCC transactions, the 
1,000 contracts minimum is applied per leg. The `initiating order' is 
considered to be the agency side of a QCC order. The Exchange notes 
that with regard to order entry, the first order submitted into the 
system is marked as the initiating/agency side and the second order is 
marked as the contra side. The credit will be paid to the Trading 
Permit Holder that enters the order into the system. The purpose of 
these changes is to incentivize the sending of QCC orders to the 
Exchange. The Exchange notes that another Exchange similarly provides 
rebates on QCC initiating orders.\3\ The Exchange also notes that no 
changes to transaction fees for QCC mini-option orders are being 
proposed at this time.
---------------------------------------------------------------------------

    \3\ See International Securities Exchange, LLC (``ISE'') 
Schedule of Fees, Section IV(A), QCC and Solicitation Rebate, which 
provides for rebates between $0.05 per QCC contract and $0.11 per 
QCC contract for each originating contract side based upon meeting 
certain volume thresholds.
---------------------------------------------------------------------------

    Finally, the Exchange proposes to eliminate references to QCC fees 
in the Equity, ETF and ETN options rate tables, and instead establish a 
QCC-specific rate table. No substantive changes, other than those 
mentioned above, are being made by the reorganization and relocation of 
QCC-related transaction fees. Rather, the Exchange believes the 
proposed change will make the Fees Schedule easier to read and 
alleviate potential confusion.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Securities Exchange Act of 1934 (the ``Act'') and the rules and 
regulations thereunder applicable to the Exchange and, in particular, 
the requirements of Section 6(b) of the Act.\4\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \5\ requirements that the rules of an exchange be 
designed to prevent fraudulent and manipulative acts and practices, to 
promote just and equitable principles of trade, to foster cooperation 
and coordination with persons engaged in regulating, clearing, 
settling, processing information with respect to, and facilitation 
transactions in securities, to remove impediments to and perfect the 
mechanism of a free and open market and a national market system, and, 
in general, to protect investors and the public interest. Additionally, 
the Exchange believes the proposed rule change is consistent with 
Section 6(b)(4) of the Act,\6\ which requires that Exchange rules 
provide for the equitable allocation of reasonable dues, fees, and 
other charges among its Trading Permit Holders and other persons using 
its facilities.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
    \6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    In particular, the Exchange believes the proposed transaction fee 
for QCC orders is reasonable because the proposed amount is in line 
with the amount assessed at other Exchanges for similar 
transactions.\7\ Additionally, the proposed fee would be charged to all 
non-customers alike. Assessing QCC rates to all market participants 
except customers is equitable and not unfairly discriminatory because 
Customer order flow enhances liquidity on the Exchange for the benefit 
of all market participants. Specifically, Customer liquidity benefits 
all market participants by providing more trading opportunities, which 
attracts Market-Makers. An increase in the activity of these market 
participants in turn facilitates tighter spreads, which may cause an 
additional corresponding increase in order flow from other market 
participants. By exempting customer orders, the QCC transaction fees 
will not discourage the sending of customer orders.
---------------------------------------------------------------------------

    \7\ See e.g., NYSE Arca, Inc. (``Arca'') Options Fees Schedule, 
Qualified Contingent Cross Transaction Fees and NASDAQ OMX PHLX LLC 
(``PHLX'') Pricing Schedule, Section II, Multiply Listed Options 
Fees.
---------------------------------------------------------------------------

    The Exchange believes the $0.10 per contract credit for the 
initiating order side of a QCC transaction is reasonable because 
another Exchange also provides a rebate on the initiating order 
side.\8\ Additionally, the proposed credit amount is within the range 
of the rebate amounts at the other Exchange.\9\ The Exchange believes 
the proposed credit is equitable and not unfairly discriminatory 
because it applies to all Trading Permit Holders that enter the 
initiating order, regardless of origin code and because it is intended 
to incentivize the sending of more QCC orders to the Exchange. 
Clarifying in the Fees Schedule that (i) a QCC transaction is comprised 
of an `initiating order' to buy (sell) at least 1,000 contracts, 
coupled with a contra-side order to sell (buy) an equal number of 
contracts, (ii) for complex QCC transactions, the 1,000 contracts 
minimum is applied per leg and (iii) the `initiating order' is 
considered to be the agency side of a QCC order informs market 
participants and alleviates potential confusion. Clarifying that the 
credit will be paid to the Trading Permit Holder that enters the order 
into the system also alleviates confusion. The alleviation of potential 
confusion thereby removes impediments to and perfects the mechanism of 
a free and open market and a national market system, and, in general, 
protecting investors and the public interest.
---------------------------------------------------------------------------

    \8\ See ISE Schedule of Fees, Section IV(A), QCC and 
Solicitation Rebate.
    \9\ Id.
---------------------------------------------------------------------------

    Finally, the Exchange believes reorganizing and relocating QCC 
related transaction fees (and credits) makes the Fees Schedule easier 
to read and alleviates potential confusion, thereby removing 
impediments to and perfecting the mechanism of a free and open market 
and a national market system, and, in general, protecting investors and 
the public interest.

[[Page 38491]]

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, because the proposes rule 
change applies to all Trading Permit Holders. The Exchange believes 
this proposal will not cause an unnecessary burden on intermarket 
competition because the proposed changes will actually enhance the 
competiveness of the Exchange relative to other exchanges which offer 
comparable fees and rebates for QCC transactions.\10\ To the extent 
that the proposed changes make CBOE a more attractive marketplace for 
market participants at other exchanges, such market participants are 
welcome to become CBOE market participants.
---------------------------------------------------------------------------

    \10\ See e.g. , ISE Schedule of Fees, Section IV(A), QCC and 
Solicitation Rebate and PHLX Pricing Schedule, Section II, Multiply 
Listed Options Fees.
---------------------------------------------------------------------------

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 \11\ and paragraph (f) of Rule 19b-4 \12\ 
thereunder. At any time within 60 days of the filing of the proposed 
rule change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission will institute proceedings to 
determine whether the proposed rule change should be approved or 
disapproved.
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 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 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-2015-059 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-2015-059. 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 will also 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-2015-059 and should be 
submitted on or before July 27, 2015.
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-16411 Filed 7-2-15; 8:45 am]
 BILLING CODE 8011-01-P



                                                                                Federal Register / Vol. 80, No. 128 / Monday, July 6, 2015 / Notices                                                  38489

                                             day time period. In order to provide the                   ADDRESSES:  The Commission: Brent J.                    For the Commission, by the Division of
                                             Commission with sufficient time to                         Fields, Secretary, U.S. Securities and                Investment Management, pursuant to
                                             consider the proposed rule change, the                     Exchange Commission, 100 F Street NE.,                delegated authority.
                                             Commission finds it is appropriate to                      Washington, DC 20549–1090.                            Robert W. Errett,
                                             designate a longer period within which                                                                           Deputy Secretary.
                                                                                                        FOR FURTHER INFORMATION CONTACT:
                                             to take action on the proposed rule                                                                              [FR Doc. 2015–16409 Filed 7–2–15; 8:45 am]
                                                                                                        Diane L. Titus at (202) 551–6810, SEC,
                                             change.                                                                                                          BILLING CODE 8011–01–P
                                               Accordingly, the Commission,                             Division of Investment Management,
                                             pursuant to Section 19(b)(2) of the Act,5                  Chief Counsel’s Office, 100 F Street NE.,
                                             designates August 13, 2015, as the date                    Washington, DC 20549–8010.
                                                                                                                                                              SECURITIES AND EXCHANGE
                                             by which the Commission should either                      First Trust Floating Rate High Income                 COMMISSION
                                             approve or disapprove, or institute                        Fund [File No. 811–22510]
                                             proceedings to determine whether to                                                                              [Release No. 34–75321; File No. SR–CBOE–
                                             disapprove, the proposed rule change                         Summary: Applicant, a closed-end                    2015–059]
                                             (File No. SR–ICEEU–2015–009).                              investment company, seeks an order
                                                                                                        declaring that it has ceased to be an                 Self-Regulatory Organizations;
                                               For the Commission, by the Division of
                                             Trading and Markets, pursuant to delegated                 investment company. Applicant has                     Chicago Board Options Exchange,
                                             authority.6                                                never made a public offering of its                   Incorporated; Notice of Filing and
                                             Robert W. Errett,                                          securities and does not propose to make               Immediate Effectiveness of a Proposed
                                             Deputy Secretary.
                                                                                                        a public offering or engage in business               Rule Change to Amend the Fees
                                                                                                        of any kind.                                          Schedule
                                             [FR Doc. 2015–16410 Filed 7–2–15; 8:45 am]
                                                                                                          Filing Date: The application was filed
                                             BILLING CODE 8011–01–P                                                                                           June 29, 2015.
                                                                                                        on June 17, 2015.
                                                                                                                                                                 Pursuant to Section 19(b)(1) of the
                                                                                                          Applicant’s Address: 120 East Liberty               Securities Exchange Act of 1934 (the
                                             SECURITIES AND EXCHANGE                                    Drive, Suite 400, Wheaton, IL 60187.                  ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                             COMMISSION                                                                                                       notice is hereby given that on June 15,
                                                                                                        BlackRock Pennsylvania Strategic
                                             [Release No. IC–31698]                                     Municipal Trust [File No. 811–9417]                   2015, Chicago Board Options Exchange,
                                                                                                                                                              Incorporated (the ‘‘Exchange’’ or
                                             Notice of Applications for                                    Summary: Applicant, a closed-end                   ‘‘CBOE’’) filed with the Securities and
                                             Deregistration Under Section 8(f) of the                   investment company, seeks an order                    Exchange Commission (the
                                             Investment Company Act of 1940                             declaring that it has ceased to be an                 ‘‘Commission’’) the proposed rule
                                                                                                        investment company. Applicant                         change as described in Items I, II, and
                                             June 26, 2015.                                             transferred its assets to BlackRock
                                               The following is a notice of                                                                                   III, below, which Items have been
                                                                                                        MuniYield Pennsylvania Quality Fund,                  prepared by the Exchange. The
                                             applications for deregistration under                      and effective April 13, 2015, made
                                             section 8(f) of the Investment Company                                                                           Commission is publishing this notice to
                                                                                                        distributions to its shareholders based               solicit comments on the proposed rule
                                             Act of 1940 for the month of June 2015.                    on net asset value. Expenses of
                                             A copy of each application may be                                                                                change from interested persons.
                                                                                                        approximately $297,589 incurred in
                                             obtained via the Commission’s Web site                     connection with the reorganization were               I. Self-Regulatory Organization’s
                                             by searching for the file number, or for                   paid by applicant.                                    Statement of the Terms of Substance of
                                             an applicant using the Company name                                                                              the Proposed Rule Change
                                             box, at http://www.sec.gov/search/                            Filing Date: The application was filed
                                             search.htm or by calling (202) 551–                        on June 11, 2015.                                       The Exchange proposes to amend its
                                             8090. An order granting each                                  Applicant’s Address: 100 Bellevue                  Fees Schedule. The text of the proposed
                                             application will be issued unless the                      Parkway, Wilmington, DE 19809.                        rule change is available on the
                                             SEC orders a hearing. Interested persons                                                                         Exchange’s Web site (http://
                                                                                                        Campbell Multi-Strategy Trust [File No.               www.cboe.com/AboutCBOE/
                                             may request a hearing on any
                                                                                                        811–21803]                                            CBOELegalRegulatoryHome.aspx), at
                                             application by writing to the SEC’s
                                             Secretary at the address below and                           Summary: Applicant, a closed-end                    the Exchange’s Office of the Secretary,
                                             serving the relevant applicant with a                      investment company, seeks an order                    and at the Commission’s Public
                                             copy of the request, personally or by                      declaring that it has ceased to be an                 Reference Room.
                                             mail. Hearing requests should be                           investment company. On June 23, 2015,                 II. Self-Regulatory Organization’s
                                             received by the SEC by 5:30 p.m. on July                   applicant made a final liquidating                    Statement of the Purpose of, and
                                             21, 2015, and should be accompanied                        distribution to its shareholders, based               Statutory Basis for, the Proposed Rule
                                             by proof of service on applicants, in the                  on net asset value. Applicant has                     Change
                                             form of an affidavit or, for lawyers, a                    retained approximately $2,416,000 in
                                             certificate of service. Pursuant to Rule                                                                           In its filing with the Commission, the
                                                                                                        cash and cash equivalent reserves to
                                             0–5 under the Act, hearing requests                                                                              Exchange included statements
                                                                                                        cover potential outstanding liabilities in
                                             should state the nature of the writer’s                                                                          concerning the purpose of and basis for
                                                                                                        the amount of $2,416,421. Any reserves
                                             interest, any facts bearing upon the                                                                             the proposed rule change and discussed
                                                                                                        not required to pay such liabilities will
                                             desirability of a hearing on the matter,                                                                         any comments it received on the
                                                                                                        be distributed to shareholders. Expenses
                                             the reason for the request, and the issues                                                                       proposed rule change. The text of these
                                                                                                        of approximately $76,289 incurred in
Lhorne on DSK7TPTVN1PROD with NOTICES




                                             contested. Persons who wish to be                                                                                statements may be examined at the
                                                                                                        connection with the liquidation were
                                             notified of a hearing may request                                                                                places specified in Item IV below. The
                                                                                                        paid by shareholders.
                                             notification by writing to the                                                                                   Exchange has prepared summaries, set
                                                                                                          Filing Date: The application was filed              forth in sections A, B, and C below, of
                                             Commission’s Secretary.
                                                                                                        on June 24, 2015.
                                               5 15   U.S.C. 78s(b)(2).                                   Applicant’s Address: 2850 Quarry                      1 15   U.S.C. 78s(b)(1).
                                               6 17   CFR 200.30–3(a)(31).                              Lake Dr., Baltimore, MD 21209.                          2 17   CFR 240.19b–4.



                                        VerDate Sep<11>2014     14:37 Jul 02, 2015   Jkt 235001   PO 00000   Frm 00063   Fmt 4703   Sfmt 4703   E:\FR\FM\06JYN1.SGM    06JYN1


                                             38490                            Federal Register / Vol. 80, No. 128 / Monday, July 6, 2015 / Notices

                                             the most significant aspects of such                     changes to transaction fees for QCC                     flow enhances liquidity on the
                                             statements.                                              mini-option orders are being proposed                   Exchange for the benefit of all market
                                                                                                      at this time.                                           participants. Specifically, Customer
                                             A. Self-Regulatory Organization’s                           Finally, the Exchange proposes to
                                             Statement of the Purpose of, and                                                                                 liquidity benefits all market participants
                                                                                                      eliminate references to QCC fees in the                 by providing more trading
                                             Statutory Basis for, the Proposed Rule
                                                                                                      Equity, ETF and ETN options rate                        opportunities, which attracts Market-
                                             Change
                                                                                                      tables, and instead establish a QCC-                    Makers. An increase in the activity of
                                             1. Purpose                                               specific rate table. No substantive                     these market participants in turn
                                                The Exchange proposes to amend its                    changes, other than those mentioned                     facilitates tighter spreads, which may
                                             Fees Schedule. Specifically, the                         above, are being made by the                            cause an additional corresponding
                                             Exchange proposes to amend fees for                      reorganization and relocation of QCC-                   increase in order flow from other market
                                             Qualified Contingent Cross (‘‘QCC’’)                     related transaction fees. Rather, the                   participants. By exempting customer
                                             transactions. A QCC order is comprised                   Exchange believes the proposed change                   orders, the QCC transaction fees will not
                                             of an order to buy or sell at least 1,000                will make the Fees Schedule easier to
                                                                                                                                                              discourage the sending of customer
                                             contracts (or 10,000 mini-option                         read and alleviate potential confusion.
                                                                                                                                                              orders.
                                             contracts) that is identified as being part              2. Statutory Basis
                                             of a qualified contingent trade, coupled                                                                            The Exchange believes the $0.10 per
                                             with a contra side order to buy or sell                     The Exchange believes the proposed                   contract credit for the initiating order
                                             an equal number of contracts. Currently,                 rule change is consistent with the                      side of a QCC transaction is reasonable
                                             the Exchange assesses no fee for                         Securities Exchange Act of 1934 (the                    because another Exchange also provides
                                             Customer (‘‘C’’ origin) QCC transactions                 ‘‘Act’’) and the rules and regulations                  a rebate on the initiating order side.8
                                             and $0.20 per contract side for Clearing                 thereunder applicable to the Exchange                   Additionally, the proposed credit
                                             Trading Permit Holder Proprietary (‘‘F’’                 and, in particular, the requirements of                 amount is within the range of the rebate
                                             or ‘‘L’’ origin code) QCC transactions, as               Section 6(b) of the Act.4 Specifically,                 amounts at the other Exchange.9 The
                                             well as Broker-Dealer, Non-Trading                       the Exchange believes the proposed rule                 Exchange believes the proposed credit is
                                             Permit Holder Market Maker,                              change is consistent with the Section                   equitable and not unfairly
                                             Professional/Voluntary Professional and                  6(b)(5) 5 requirements that the rules of                discriminatory because it applies to all
                                             Joint Back-Office QCC transactions.                      an exchange be designed to prevent                      Trading Permit Holders that enter the
                                             Additionally, Market-Maker QCC                           fraudulent and manipulative acts and                    initiating order, regardless of origin
                                             transactions are subject to the Liquidity                practices, to promote just and equitable                code and because it is intended to
                                             Provider Sliding Scale. In lieu of the                   principles of trade, to foster cooperation              incentivize the sending of more QCC
                                             current QCC transaction fees stated                      and coordination with persons engaged
                                                                                                                                                              orders to the Exchange. Clarifying in the
                                             above, the Exchange proposes to                          in regulating, clearing, settling,
                                                                                                                                                              Fees Schedule that (i) a QCC transaction
                                             establish a transaction fee for all non-                 processing information with respect to,
                                                                                                                                                              is comprised of an ‘initiating order’ to
                                             customer QCC orders of $0.15 per                         and facilitation transactions in
                                                                                                                                                              buy (sell) at least 1,000 contracts,
                                             contract side (customer orders will                      securities, to remove impediments to
                                                                                                      and perfect the mechanism of a free and                 coupled with a contra-side order to sell
                                             continue to not be assessed a charge). In                                                                        (buy) an equal number of contracts, (ii)
                                             addition, the Exchange proposes to                       open market and a national market
                                                                                                      system, and, in general, to protect                     for complex QCC transactions, the 1,000
                                             adopt a $0.10 per contract credit for the
                                                                                                      investors and the public interest.                      contracts minimum is applied per leg
                                             initiating order side, regardless of origin
                                                                                                      Additionally, the Exchange believes the                 and (iii) the ‘initiating order’ is
                                             code. The Exchange proposes to
                                                                                                      proposed rule change is consistent with                 considered to be the agency side of a
                                             explicitly provide in the Fees Schedule
                                             that a QCC transaction is comprised of                   Section 6(b)(4) of the Act,6 which                      QCC order informs market participants
                                             an ‘initiating order’ to buy (sell) at least             requires that Exchange rules provide for                and alleviates potential confusion.
                                             1,000 contracts, coupled with a contra-                  the equitable allocation of reasonable                  Clarifying that the credit will be paid to
                                             side order to sell (buy) an equal number                 dues, fees, and other charges among its                 the Trading Permit Holder that enters
                                             of contracts and that for complex QCC                    Trading Permit Holders and other                        the order into the system also alleviates
                                             transactions, the 1,000 contracts                        persons using its facilities.                           confusion. The alleviation of potential
                                             minimum is applied per leg. The                             In particular, the Exchange believes                 confusion thereby removes
                                             ‘initiating order’ is considered to be the               the proposed transaction fee for QCC                    impediments to and perfects the
                                             agency side of a QCC order. The                          orders is reasonable because the                        mechanism of a free and open market
                                             Exchange notes that with regard to order                 proposed amount is in line with the                     and a national market system, and, in
                                             entry, the first order submitted into the                amount assessed at other Exchanges for                  general, protecting investors and the
                                             system is marked as the initiating/                      similar transactions.7 Additionally, the                public interest.
                                             agency side and the second order is                      proposed fee would be charged to all
                                                                                                                                                                 Finally, the Exchange believes
                                             marked as the contra side. The credit                    non-customers alike. Assessing QCC
                                                                                                                                                              reorganizing and relocating QCC related
                                             will be paid to the Trading Permit                       rates to all market participants except
                                                                                                                                                              transaction fees (and credits) makes the
                                             Holder that enters the order into the                    customers is equitable and not unfairly
                                                                                                      discriminatory because Customer order                   Fees Schedule easier to read and
                                             system. The purpose of these changes is                                                                          alleviates potential confusion, thereby
                                             to incentivize the sending of QCC orders                                                                         removing impediments to and
                                             to the Exchange. The Exchange notes                      contract for each originating contract side based
                                                                                                      upon meeting certain volume thresholds.                 perfecting the mechanism of a free and
                                             that another Exchange similarly
Lhorne on DSK7TPTVN1PROD with NOTICES




                                                                                                        4 15 U.S.C. 78f(b).                                   open market and a national market
                                             provides rebates on QCC initiating                         5 15 U.S.C. 78f(b)(5).
                                                                                                                                                              system, and, in general, protecting
                                             orders.3 The Exchange also notes that no                   6 15 U.S.C. 78f(b)(4).
                                                                                                        7 See e.g., NYSE Arca, Inc. (‘‘Arca’’) Options Fees
                                                                                                                                                              investors and the public interest.
                                                3 See International Securities Exchange, LLC          Schedule, Qualified Contingent Cross Transaction
                                                                                                                                                                8 See ISE Schedule of Fees, Section IV(A), QCC
                                             (‘‘ISE’’) Schedule of Fees, Section IV(A), QCC and       Fees and NASDAQ OMX PHLX LLC (‘‘PHLX’’)
                                             Solicitation Rebate, which provides for rebates          Pricing Schedule, Section II, Multiply Listed           and Solicitation Rebate.
                                             between $0.05 per QCC contract and $0.11 per QCC         Options Fees.                                             9 Id.




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                                                                              Federal Register / Vol. 80, No. 128 / Monday, July 6, 2015 / Notices                                                        38491

                                             B. Self-Regulatory Organization’s                        Electronic Comments                                       SECURITIES AND EXCHANGE
                                             Statement on Burden on Competition                                                                                 COMMISSION
                                                                                                        • Use the Commission’s Internet
                                                The Exchange does not believe that                    comment form (http://www.sec.gov/
                                                                                                                                                                [Release No. 34–75329; File No. SR–ICEEU–
                                             the proposed rule change will impose                     rules/sro.shtml); or
                                                                                                                                                                2015–012]
                                             any burden on competition that is not                      • Send an email to rule-comments@
                                             necessary or appropriate in furtherance                  sec.gov. Please include File Number SR–                   Self-Regulatory Organizations; ICE
                                             of the purposes of the Act, because the                  CBOE–2015–059 on the subject line.                        Clear Europe Limited; Notice of Filing
                                             proposes rule change applies to all                                                                                and Immediate Effectiveness of
                                             Trading Permit Holders. The Exchange                     Paper Comments
                                                                                                                                                                Proposed Rule Change Relating to the
                                             believes this proposal will not cause an
                                                                                                        • Send paper comments in triplicate                     Delivery Procedures
                                             unnecessary burden on intermarket
                                                                                                      to Secretary, Securities and Exchange
                                             competition because the proposed                                                                                   June 29, 2015.
                                                                                                      Commission, 100 F Street NE.,
                                             changes will actually enhance the                                                                                     Pursuant to Section 19(b)(1) of the
                                             competiveness of the Exchange relative                   Washington, DC 20549–1090.
                                                                                                                                                                Securities Exchange Act of 1934
                                             to other exchanges which offer                           All submissions should refer to File                      (‘‘Act’’) 1 and Rule 19b–4 thereunder 2
                                             comparable fees and rebates for QCC                      Number SR–CBOE–2015–059. This file                        notice is hereby given that on June 16,
                                             transactions.10 To the extent that the                   number should be included on the                          2015, ICE Clear Europe Limited (‘‘ICE
                                             proposed changes make CBOE a more                        subject line if email is used. To help the                Clear Europe’’) filed with the Securities
                                             attractive marketplace for market                        Commission process and review your                        and Exchange Commission
                                             participants at other exchanges, such                    comments more efficiently, please use                     (‘‘Commission’’) the proposed rule
                                             market participants are welcome to                       only one method. The Commission will                      change as described in Items I, II, and
                                             become CBOE market participants.                         post all comments on the Commission’s                     III below, which Items have been
                                             C. Self-Regulatory Organization’s                        Internet Web site (http://www.sec.gov/                    prepared primarily by ICE Clear Europe.
                                             Statement on Comments on the                             rules/sro.shtml). Copies of the                           ICE Clear Europe filed the proposal
                                             Proposed Rule Change Received From                       submission, all subsequent                                pursuant to Section 19(b)(3)(A) of the
                                             Members, Participants, or Others                         amendments, all written statements                        Act,3 and Rules 19b–4(f)(4)(i) and (ii) 4
                                                                                                      with respect to the proposed rule                         thereunder, so that the proposal was
                                               The Exchange neither solicited nor                     change that are filed with the                            effective upon filing with the
                                             received comments on the proposed                        Commission, and all written                               Commission. The Commission is
                                             rule change.                                             communications relating to the                            publishing this notice to solicit
                                                                                                      proposed rule change between the                          comments on the proposed rule change
                                             III. Date of Effectiveness of the                                                                                  from interested persons.
                                             Proposed Rule Change and Timing for                      Commission and any person, other than
                                             Commission Action                                        those that may be withheld from the                       I. Self-Regulatory Organization’s
                                                                                                      public in accordance with the                             Statement of the Terms of Substance of
                                                The foregoing rule change has become                  provisions of 5 U.S.C. 552, will be                       the Proposed Rule Change
                                             effective pursuant to Section 19(b)(3)(A)                available for Web site viewing and
                                             of the Act 11 and paragraph (f) of Rule                  printing in the Commission’s Public                         ICE Clear Europe proposes
                                             19b–4 12 thereunder. At any time within                  Reference Room, 100 F Street NE.,                         amendments to its Delivery Procedures
                                             60 days of the filing of the proposed rule               Washington, DC 20549, on official                         with respect to the settlement of certain
                                             change, the Commission summarily may                     business days between the hours of                        European emissions allowance and
                                             temporarily suspend such rule change if                  10:00 a.m. and 3:00 p.m. Copies of such                   cocoa futures contracts that are
                                             it appears to the Commission that such                   filing will also be available for                         currently traded on ICE Futures Europe
                                             action is necessary or appropriate in the                inspection and copying at the principal                   and cleared by ICE Clear Europe. The
                                             public interest, for the protection of                   office of the Exchange. All comments                      proposed rule change also makes certain
                                             investors, or otherwise in furtherance of                received will be posted without change;                   clarifications and updates to the
                                             the purposes of the Act. If the                          the Commission does not edit personal                     Complaint Resolution Procedures.
                                             Commission takes such action, the                        identifying information from                              II. Self-Regulatory Organization’s
                                             Commission will institute proceedings                    submissions. You should submit only                       Statement of the Purpose of, and
                                             to determine whether the proposed rule                   information that you wish to make                         Statutory Basis for, the Proposed Rule
                                             change should be approved or                             available publicly. All submissions                       Change
                                             disapproved.                                             should refer to File Number SR–CBOE–
                                                                                                      2015–059 and should be submitted on                         In its filing with the Commission, ICE
                                             IV. Solicitation of Comments
                                                                                                      or before July27, 2015.                                   Clear Europe included statements
                                               Interested persons are invited to                                                                                concerning the purpose of and basis for
                                                                                                        For the Commission, by the Division of                  the proposed rule change. The text of
                                             submit written data, views, and                          Trading and Markets, pursuant to delegated
                                             arguments concerning the foregoing,                                                                                these statements may be examined at
                                                                                                      authority.13                                              the places specified in Item IV below.
                                             including whether the proposed rule
                                                                                                      Robert W. Errett,                                         ICE Clear Europe has prepared
                                             change is consistent with the Act.
                                             Comments may be submitted by any of                      Deputy Secretary.                                         summaries, set forth in sections A, B,
Lhorne on DSK7TPTVN1PROD with NOTICES




                                             the following methods:                                   [FR Doc. 2015–16411 Filed 7–2–15; 8:45 am]                and C below, of the most significant
                                                                                                      BILLING CODE 8011–01–P                                    aspects of such statements.
                                               10 See e.g. , ISE Schedule of Fees, Section IV(A),
                                                                                                                                                                  1 15 U.S.C. 78s(b)(1).
                                             QCC and Solicitation Rebate and PHLX Pricing
                                             Schedule, Section II, Multiply Listed Options Fees.                                                                  2 17 CFR 240.19b–4.
                                               11 15 U.S.C. 78s(b)(3)(A).                                                                                         3 15 U.S.C. 78s(b)(3)(A).
                                               12 17 CFR 240.19b–4(f).                                     13 17   CFR 200.30–3(a)(12).                           4 17 CFR 240.19b–4(f)(4)(i) and (ii).




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Document Created: 2015-12-15 13:17:33
Document Modified: 2015-12-15 13:17:33
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 38489 

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