80 FR 40090 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Rule 6.49A
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 133 (July 13, 2015)
Federal Register Volume 80, Issue 133 (July 13, 2015)
| Page Range | 40090-40092 | |
| FR Document | 2015-16974 |
[Federal Register Volume 80, Number 133 (Monday, July 13, 2015)] [Notices] [Pages 40090-40092] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-16974] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75373; File No. SR-CBOE-2015-063] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Rule 6.49A July 7, 2015. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on June 24, 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 Exchange filed the proposal as a ``non-controversial'' proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) thereunder.\4\ 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. \3\ 15 U.S.C. 78s(b)(3)(A)(iii). \4\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change The Exchange p [sic] proposes to amend its Rule 6.49A relating to the transfer of positions. The text of the proposed rule change is provided below. (additions are italicized; deletions are [bracketed]) * * * * * Chicago Board Options Exchange, Incorporated Rules * * * * * Rule 6.49A. Transfer of Positions (a)-(b) No change. (c) Transfer Procedure. (1)-(8) No change. (9) Any Request for Quotes that is to be submitted later than 12:30[0] p.m. (or two and one half hours prior to an early scheduled close) must have the approval of the President of the Exchange to have a Request Response Time of less than two hours. In no event may a Request for Quotes be submitted to the floor later than 2:30 p.m. (or thirty minutes prior to an early scheduled close). (10)-(13) No change. (d) No change. . . . Interpretations and Policies: .01-.03 No change. * * * * * 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. 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 Rule 6.49A describes the circumstances under which Trading Permit Holders may transfer positions and the on- and off-floor procedures for a transfer of positions. Pursuant to subparagraph (c), an on-floor transfer of positions must be represented to the trading crowd pursuant to a request for quotes and can be completed after a two-hour response time (or different time if approved by the Exchange President pursuant to subparagraph (c)(8)). Subparagraph (c)(6) indicates that transfer packages offered on the floor are subject to FLEX trading procedures in Rule 24A.5(a) through (c) or Rule 24B.5(a)(2)(i) through (iii). Pursuant to Rule 24A.5(a) or Rule 24B.5(a)(2), the submission of a request for quotes must use the forms, formats, procedures and time frames established by the Exchange. On receipt of a request for quotes in proper form, the Exchange official will initiate the request for quotes by communicating the terms and specifications on and off the floor. Rule 6.49A(c)(9) currently provides that a submission of a request for quotes for a transfer package later than 1:00 p.m. require the approval of the President of the Exchange (as that would result in a response time of less than two hours). Additionally, Rule [[Page 40091]] 6.49A(c)(9) provides that no requests for quotes for transfer packages may be submitted to the floor later than 2:30 p.m. Because the request for quotes procedures described above provide that a request for quotes must be in proper form before the Exchange initiates it, the Exchange needs time to review the materials submitted to determine that the request is in proper form. However, if a request for quotes is submitted near the 1:00 p.m. cut-off time, the Exchange may not have sufficient time to conduct this review and complete its procedures to initiate the request for quotes by 1:00 p.m. to allow the full two-hour response time in accordance with Rule 6.49A. If the review cannot be completed by 1:00 p.m., then the Exchange President would need to approve initiation of the request for quotes that trading day, which could further delay the process. To ensure the Exchange has sufficient time to determine that a request for quotes submission is in proper form and to initiate the request for quotes, the Exchange proposes to amend Rule 6.49A(c)(9) to require that requests for quotes be submitted by 12:30 p.m.\5\ (or two and one half hours prior to an early scheduled close). This proposed rule change provides the Exchange with sufficient time to complete its review and initiate requests for quotes to allow the full two-hour response time for the trading crowd to submit quotes in accordance with Rule 6.49A (without the potential delay of obtaining approval of the Exchange President) --------------------------------------------------------------------------- \5\ The proposed rule change also adds corresponding cut-off times for submissions of requests for quotes to the Exchange for review, as well as the latest a request for quotes may be submitted to the floor, when the Exchange is scheduled to close early (such as trading days immediately preceding certain holidays). --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the Act and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.\6\ Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \7\ 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) \8\ requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b). \7\ 15 U.S.C. 78f(b)(5). \8\ Id. --------------------------------------------------------------------------- In particular, the Exchange believes that the proposed rule change will promote just and equitable principles of trade by ensuring that the Exchange has sufficient time to review submissions of requests for quotes to determine whether they are in proper form and complete its procedures to initiate a request for quotes. Additionally, the proposed rule change will protect investors because it will ensure this review is completed in time to provide the trading crowd with the full two- hour period during which it can submit quotes in accordance with Rule 6.49A (without the potential delay of obtaining approval of the Exchange President). 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. The proposed rule change slightly modifies the cut-off time for submission of requests for quotes for on-floor position transfers to provide the Exchange with sufficient time to review the request for quotes and determine whether it is in proper form prior to the initiation of the request for response time. All submissions of requests for quotes will be subject to the same revised cut-off time. While the proposed rule change requires requests for quotes to be submitted to the Exchange earlier, any potential burden imposed by this earlier cut-off time is offset by the benefits of ensuring that requests for quotes are submitted in proper form and that the trading crowd receives the full two hour response time to submit quotes for the transfer package. To the extent the Exchange receives a submission after the revised cut-off time, the rule still permits the Exchange to accept it and begin the shortened request for quotes with approval of the President. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange neither solicited nor received comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: A. Significantly affect the protection of investors or the public interest; B. impose any significant burden on competition; and C. become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(6) \10\ 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. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78s(b)(3)(A). \10\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- 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 [email protected]. Please include File Number SR-CBOE-2015-063 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-2015-063. 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 [[Page 40092]] 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 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-2015-063, and should be submitted on or before August 3, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\11\ --------------------------------------------------------------------------- \11\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2015-16974 Filed 7-10-15; 8:45 am] BILLING CODE 8011-01-P
![40090 Federal Register / Vol. 80, No. 133 / Monday, July 13, 2015 / Notices
underlying NRC regulatory SECURITIES AND EXCHANGE (10)–(13) No change.
requirements. Such discussions would COMMISSION (d) No change.
not ordinarily be considered backfitting, . . . Interpretations and Policies:
[Release No. 34–75373; File No. SR–CBOE– .01–.03 No change.
even if prior versions of this regulatory 2015–063]
guide are part of the licensee’s licensing * * * * *
basis. However, unless this regulatory Self-Regulatory Organizations; The text of the proposed rule change
guide is part of the licensee’s licensing Chicago Board Options Exchange, is also available on the Exchange’s Web
basis, the staff may not represent to the Incorporated; Notice of Filing and site (http://www.cboe.com/AboutCBOE/
licensee that the licensee’s failure to Immediate Effectiveness of a Proposed CBOELegalRegulatoryHome.aspx), at
comply with the positions in this Rule Change Relating to Rule 6.49A the Exchange’s Office of the Secretary,
regulatory guide constitutes a violation. and at the Commission’s Public
July 7, 2015. Reference Room.
If a current licensee voluntarily seeks Pursuant to Section 19(b)(1) of the
a license amendment or change and (1) Securities Exchange Act of 1934 (the II. Self-Regulatory Organization’s
the NRC staff’s consideration of the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 Statement of the Purpose of, and
request involves a regulatory issue notice is hereby given that on June 24, Statutory Basis for, the Proposed Rule
directly relevant to this regulatory guide 2015, Chicago Board Options Exchange, Change
and (2) the specific subject matter of this Incorporated (the ‘‘Exchange’’ or In its filing with the Commission, the
regulatory guide is an essential ‘‘CBOE’’) filed with the Securities and Exchange included statements
consideration in the staff’s Exchange Commission (the concerning the purpose of and basis for
determination of the acceptability of the ‘‘Commission’’) the proposed rule the proposed rule change and discussed
licensee’s request, then the staff may change as described in Items I, II, and any comments it received on the
request that the licensee either follow III below, which Items have been proposed rule change. The text of these
the guidance in this regulatory guide or prepared by the Exchange. The statements may be examined at the
provide an equivalent alternative Exchange filed the proposal as a ‘‘non- places specified in Item IV below. The
process that demonstrates compliance controversial’’ proposed rule change Exchange has prepared summaries, set
with the underlying NRC regulatory pursuant to Section 19(b)(3)(A)(iii) of forth in sections A, B, and C below, of
requirements. Such a request by the the Act 3 and Rule 19b–4(f)(6) the most significant aspects of such
thereunder.4 The Commission is statements.
NRC staff is not considered backfitting
as defined in 10 CFR 70.76(a)(1). publishing this notice to solicit A. Self-Regulatory Organization’s
comments on the proposed rule change Statement of the Purpose of, and
If a licensee believes that the NRC is from interested persons.
either using this regulatory guide or Statutory Basis for, the Proposed Rule
requesting or requiring the licensee to I. Self-Regulatory Organization’s Change
implement the methods or processes in Statement of the Terms of the Substance 1. Purpose
this regulatory guide in a manner of the Proposed Rule Change
Rule 6.49A describes the
inconsistent with the discussion in the The Exchange p [sic] proposes to circumstances under which Trading
Implementation section of this amend its Rule 6.49A relating to the Permit Holders may transfer positions
regulatory guide, then the licensee may transfer of positions. The text of the and the on- and off-floor procedures for
file a backfit appeal with the NRC in proposed rule change is provided a transfer of positions. Pursuant to
accordance with the guidance in NRC below. subparagraph (c), an on-floor transfer of
Management Directive 8.4, (additions are italicized; deletions are positions must be represented to the
‘‘Management of Facility-Specific [bracketed]) trading crowd pursuant to a request for
Backfitting and Information Collection’’ quotes and can be completed after a
* * * * *
and NUREG–1409, ‘‘Backfitting two-hour response time (or different
Guidelines.’’ Chicago Board Options Exchange, time if approved by the Exchange
Dated at Rockville, Maryland, this 8th day
Incorporated Rules President pursuant to subparagraph
of July, 2015. * * * * * (c)(8)). Subparagraph (c)(6) indicates
For the Nuclear Regulatory Commission. that transfer packages offered on the
Rule 6.49A. Transfer of Positions floor are subject to FLEX trading
Carol Moyer,
(a)–(b) No change. procedures in Rule 24A.5(a) through (c)
Acting Branch Chief, Regulatory Guidance or Rule 24B.5(a)(2)(i) through (iii).
and Generic Issues Branch, Division of (c) Transfer Procedure.
(1)–(8) No change. Pursuant to Rule 24A.5(a) or Rule
Engineering, Office of Nuclear Regulatory 24B.5(a)(2), the submission of a request
Research. (9) Any Request for Quotes that is to
be submitted later than 12:30[0] p.m. (or for quotes must use the forms, formats,
[FR Doc. 2015–17018 Filed 7–10–15; 8:45 am] procedures and time frames established
two and one half hours prior to an early
BILLING CODE 7590–01–P
scheduled close) must have the approval by the Exchange. On receipt of a request
of the President of the Exchange to have for quotes in proper form, the Exchange
a Request Response Time of less than official will initiate the request for
quotes by communicating the terms and
asabaliauskas on DSK5VPTVN1PROD with NOTICES
two hours. In no event may a Request
for Quotes be submitted to the floor later specifications on and off the floor.
than 2:30 p.m. (or thirty minutes prior Rule 6.49A(c)(9) currently provides
to an early scheduled close). that a submission of a request for quotes
for a transfer package later than 1:00
1 15 U.S.C. 78s(b)(1). p.m. require the approval of the
2 17 CFR 240.19b–4. President of the Exchange (as that
3 15 U.S.C. 78s(b)(3)(A)(iii). would result in a response time of less
4 17 CFR 240.19b–4(f)(6). than two hours). Additionally, Rule
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![40092 Federal Register / Vol. 80, No. 133 / Monday, July 13, 2015 / Notices
Commission, and all written I. Self-Regulatory Organization’s In January 2013, FINRA filed with the
communications relating to the Statement of the Terms of Substance of SEC a proposed rule change to amend
proposed rule change between the the Proposed Rule Change FINRA Rule 2267 (Investor Education
Commission and any person, other than FINRA is proposing to amend FINRA and Protection) 3 to require all members
those that may be withheld from the Rule 2210 to require each of a member’s to include a prominent description of
public in accordance with the Web sites to include a readily apparent and link to BrokerCheck on their Web
provisions of 5 U.S.C. 552, will be reference and hyperlink to BrokerCheck sites, social media pages and any
available for Web site viewing and on: (i) The initial Web page that the comparable Internet presence, as well as
printing in the Commission’s Public member intends to be viewed by retail on the Web sites, social media pages
Reference Room, 100 F Street NE., investors; and (ii) any other Web page and any comparable Internet presence
Washington, DC 20549 on official that includes a professional profile of relating to a member’s investment
business days between the hours of one or more registered persons who banking or securities business
conduct [sic] business with retail maintained by or on behalf of any
10:00 a.m. and 3:00 p.m. Copies of such
investors. These requirements would person associated with a member.4 The
filing also will be available for
not apply to a member that does not proposed rule change was intended to
inspection and copying at the principal increase investor awareness and use of
office of the Exchange. All comments provide products or services to retail
investors, or to a directory or list of BrokerCheck. The Commission received
received will be posted without change; 24 comment letters in response to the
the Commission does not edit personal registered persons limited to names and
contact information. proposed rule change. FINRA withdrew
identifying information from the filing to better understand
submissions. You should submit only The text of the proposed rule change
is available on FINRA’s Web site at commenters’ concerns regarding the
information that you wish to make challenges of implementing the
http://www.finra.org, at the principal
available publicly. All submissions proposed rule change.
office of FINRA and at the
should refer to File Number SR–CBOE– Many of the comments received on
Commission’s Public Reference Room.
2015–063, and should be submitted on the 2013 proposed rule change
or before August 3, 2015. II. Self-Regulatory Organization’s expressed concern with the challenges
Statement of the Purpose of, and of implementing the proposal with
For the Commission, by the Division of
Statutory Basis for, the Proposed Rule respect to social media pages, the lack
Trading and Markets, pursuant to delegated
Change of guidance with respect to terms and
authority.11
In its filing with the Commission, phrases in the proposed amendments,
Brent J. Fields, and the disadvantages of using a ‘‘deep’’
FINRA included statements concerning
Secretary. link to BrokerCheck summary reports
the purpose of and basis for the
[FR Doc. 2015–16974 Filed 7–10–15; 8:45 am]
proposed rule change and discussed any that would bypass the BrokerCheck
BILLING CODE 8011–01–P comments it received on the proposed homepage.5 Commenters suggested that
rule change. The text of these statements the link to BrokerCheck be required
may be examined at the places specified initially for member Web sites, where its
SECURITIES AND EXCHANGE in Item IV below. FINRA has prepared implementation would be relatively
COMMISSION summaries, set forth in sections A, B, straightforward, and that the value of
and C below, of the most significant the link be assessed first in that context
[Release No. 34–75377; File No. SR–FINRA– aspects of such statements. before expanding to third party sites.
2015–022]
In light of commenters’ concerns,
A. Self-Regulatory Organization’s FINRA has developed a revised
Self-Regulatory Organizations; Statement of the Purpose of, and proposal that addresses member Web
Financial Industry Regulatory Statutory Basis for, the Proposed Rule sites. Specifically, the revised proposal
Authority, Inc.; Notice of Filing of a Change would amend FINRA Rule 2210
Proposed Rule Change to Amend (Communications with the Public) to
1. Purpose
require each of a member’s Web sites to
FINRA Rule 2210 (Communications FINRA established BrokerCheck in include a readily apparent reference and
with the Public) 1988 (then known as the Public hyperlink to BrokerCheck on: (i) The
July 7, 2015. Disclosure Program) to provide the initial Web page that the member
public with information on the intends to be viewed by retail investors;
Pursuant to Section 19(b)(1) of the professional background, business and (ii) any other Web page that
Securities Exchange Act of 1934 practices, and conduct of FINRA includes a professional profile of one or
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 members and their associated persons. more registered persons who conduct
notice is hereby given that on June 29, The information that FINRA releases to
2015, Financial Industry Regulatory the public through BrokerCheck is 3 Subject to limited exceptions, FINRA Rule
Authority, Inc. (‘‘FINRA’’) filed with the derived from the Central Registration 2267(a) requires members to provide annually in
Securities and Exchange Commission Depository (‘‘CRD®’’), the securities writing to each of their customers the BrokerCheck
hotline number, the FINRA Web site address, and
(‘‘SEC’’ or ‘‘Commission’’) the proposed industry online registration and a notification of the availability of an investor
rule change as described in Items I and licensing database. FINRA members, brochure that describes BrokerCheck.
II below, which Items have been their associated persons and regulators 4 See Securities Exchange Act Release No. 68700
asabaliauskas on DSK5VPTVN1PROD with NOTICES
prepared by FINRA. The Commission is report information to the CRD system (January 18, 2013), 78 FR 5542 (January 25, 2013)
(Notice of Filing of SR–FINRA–2013–002). See also
publishing this notice to solicit via the uniform registration forms. By infra Item II.C. of the filing for further discussion
comments on the proposed rule change making most of this information of the 2013 filing and prior proposals.
from interested persons. publicly available, BrokerCheck, among 5 The SEC also received numerous comment
other things, helps investors make letters that raised issues outside the scope of the
proposed rule change to FINRA Rule 2267. These
11 17 CFR 200.30–3(a)(12). informed choices about the individuals comment letters focused generally on concerns
1 15 U.S.C. 78s(b)(1). and firms with which they conduct regarding the current operation and display of
2 17 CFR 240.19b–4. business. BrokerCheck reports.
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Document Created: 2018-02-23 09:18:01
Document Modified: 2018-02-23 09:18:01
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| FR Citation | 80 FR 40090 |
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