80 FR 40111 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Extend a Pilot Program that Eliminates Position and Exercise Limits for Physically-Settled SPDR S&P 500 ETF Trust (“SPY”) Options
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 133 (July 13, 2015)
Federal Register Volume 80, Issue 133 (July 13, 2015)
| Page Range | 40111-40113 | |
| FR Document | 2015-16981 |
[Federal Register Volume 80, Number 133 (Monday, July 13, 2015)] [Notices] [Pages 40111-40113] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-16981] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75381; File No. SR-CBOE-2015-065] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Extend a Pilot Program that Eliminates Position and Exercise Limits for Physically-Settled SPDR S&P 500 ETF Trust (``SPY'') Options 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 July 1, 2015, Chicago Board Options Exchange, Incorporated (the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II 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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change 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 [[Page 40112]] 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 proposes to amend Interpretation and Policy .07 to Rule 4.11 (Position Limits) to extend the duration of the SPY Pilot Program.\3\ The SPY Pilot Program is currently scheduled to expire on July 12, 2015 and this proposal would extend the SPY Pilot Program through July 12, 2016. There are no substantive changes being proposed to the SPY Pilot Program. --------------------------------------------------------------------------- \3\ See Securities Exchange Act Release Nos. 67937 (September 27, 2012), 77 FR 60489 (October 3, 2012) (SR-CBOE-2012-091); 70878 (November 14, 2013), 78 FR 69737 (November 20, 2013) (SR-CBOE-2013- 106) and 74149 (January 27, 2015) 80 FR 5606 (February 2, 2015) (SR- CBOE-2015-008). --------------------------------------------------------------------------- In proposing to extend the SPY Pilot Program, the Exchange reaffirms its consideration of several factors that supported its original proposal to establish the SPY Pilot Program, which include: (1) the liquidity of the option and the underlying security; (2) the market capitalization of the underlying security and the securities that make up the S&P 500 Index; (3) options reporting requirements; and (4) financial requirements imposed by CBOE and the Commission. When the SPY Pilot Program was most recently renewed in January 2015, CBOE submitted a report providing an analysis of the SPY Pilot Program covering the first twelve months during which the SPY Pilot Program was in effect (the ``Pilot Report''). In the January extension, the Exchange stated that if it were to submit a proposal to either extend the SPY Pilot Program, adopt the SPY Pilot Program on a permanent basis, or terminate the SPY Pilot Program, it would submit another Pilot Report covering the period since the previous extension. \4\ Accordingly, the Exchange is submitting another Pilot Report that details CBOE's experience with the SPY Pilot Program. The Pilot Report now includes the period of January 2015 through May 2015. The Pilot Report is attached as Exhibit 3. CBOE notes that it is unaware of any problems created by the SPY Pilot Program and does not foresee any as a result of the proposed extension. In extending the SPY Pilot Program, the Exchange states that if CBOE were to propose another extension, permanent approval or termination of the SPY Pilot Program, the Exchange will submit another Pilot Report covering the period since the previous extension, which will be submitted at least 30 days before the end of the proposed extension. If the SPY Pilot Program is not extended or adopted on a permanent basis by July 12, 2016, position limits in SPY will revert to their Pre-Pilot levels. --------------------------------------------------------------------------- \4\ See 80 FR at 5607. --------------------------------------------------------------------------- 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.\5\ Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \6\ 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 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. Specifically, the Exchange believes that extending the SPY Pilot Program promotes just and equitable principles of trade by permitting market participants, including market makers, institutional investors and retail investors, to establish greater positions when pursuing their investment goals and needs. Extending the SPY Pilot Program will give the Exchange and the Commission additional time to evaluate the pilot and its effect on the market. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b). \6\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- 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 rule change is not designed to address any aspect of competition, whether between the Exchange and its competitors, or among market participants. Instead, the proposed rule change is designed to allow the SPY Pilot Program to continue as the Exchange expects other SROs will propose similar extensions. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received from Members, Participants, or Others The Exchange neither solicited nor received comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (i) significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b- 4(f)(6) thereunder.\7\ --------------------------------------------------------------------------- \7\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b- 4(f)(6)(iii), the Exchange provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and the text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. --------------------------------------------------------------------------- A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the Act \8\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \9\ permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay, noting that such waiver will allow the Exchange to extend the pilot program prior to its expiration on July 12, 2015. In addition, the Exchange believes that waiver of the operative delay is consistent with the protection of investors and the public interest because it will allow for the least amount of market disruption as the pilot will continue as it currently does maintaining the status quo. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest. Therefore, the Commission hereby waives the operative delay and designates the proposed rule change operative upon filing.\10\ --------------------------------------------------------------------------- \8\ 17 CFR 240.19b-4(f)(6). \9\ 17 CFR 240.19b-4(f)(6)(iii). \10\ For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such [[Page 40113]] 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 shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic 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-2015-065 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-CBOE-2015-065. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street, NE., Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal 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-2015-065, 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. 2015-16981 Filed 7-10-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 133 / Monday, July 13, 2015 / Notices 40111
unreasonably burdensome because action is: (i) Necessary or appropriate in be submitted on or before August 3,
Market Makers can enter an out-of-range the public interest; (ii) for the protection 2015.
value so that the Exchange-provided of investors; or (iii) otherwise in For the Commission, by the Division of
risk protections will not be triggered. furtherance of the purposes of the Act. Trading and Markets, pursuant to delegated
Reducing risk by utilizing the proposed If the Commission takes such action, the authority.31
risk protections will enable Market Commission shall institute proceedings Brent J. Fields,
Makers to enter quotations with larger to determine whether the proposed rule Secretary.
size, which in turn will benefit investors should be approved or disapproved. [FR Doc. 2015–16973 Filed 7–10–15; 8:45 am]
through increased liquidity for the
execution of their orders. Such IV. Solicitation of Comments BILLING CODE 8011–01–P
increased liquidity benefits investors Interested persons are invited to
because they receive better prices and submit written data, views, and SECURITIES AND EXCHANGE
because it lowers volatility in the arguments concerning the foregoing, COMMISSION
options market. including whether the proposed rule
change is consistent with the Act. [Release No. 34–75381; File No. SR–CBOE–
C. Self-Regulatory Organization’s Comments may be submitted by any of 2015–065]
Statement on Comments on the the following methods:
Proposed Rule Change Received From Self-Regulatory Organizations;
Members, Participants, or Others Electronic Comments Chicago Board Options Exchange,
• Use the Commission’s Internet Incorporated; Notice of Filing and
No written comments were either
comment form (http://www.sec.gov/ Immediate Effectiveness of a Proposed
solicited or received.
rules/sro.shtml); or Rule Change to Extend a Pilot Program
III. Date of Effectiveness of the • Send an email to rule-comments@ that Eliminates Position and Exercise
Proposed Rule Change and Timing for sec.gov. Please include File Number SR– Limits for Physically-Settled SPDR
Commission Action Phlx–2015–52 on the subject line. S&P 500 ETF Trust (‘‘SPY’’) Options
Because the foregoing proposed rule July 7, 2015.
Paper Comments
change does not: (i) Significantly affect Pursuant to Section 19(b)(1) of the
the protection of investors or the public • Send paper comments in triplicate Securities Exchange Act of 1934 (the
interest; (ii) impose any significant to Secretary, Securities and Exchange ‘‘Act’’),1 and Rule 19b–4 thereunder,2
burden on competition; and (iii) become Commission, 100 F Street NE., notice is hereby given that on July 1,
operative for 30 days from the date on Washington, DC 20549–1090. 2015, Chicago Board Options Exchange,
which it was filed, or such shorter time All submissions should refer to File
Incorporated (the ‘‘Exchange’’ or
as the Commission may designate, it has Number SR–Phlx–2015–52. This file
‘‘CBOE’’) filed with the Securities and
become effective pursuant to Section number should be included on the
Exchange Commission (‘‘Commission’’)
19(b)(3)(A)(ii) of the Act 28 and subject line if email is used. To help the
the proposed rule change as described
subparagraph (f)(6) of Rule 19b–4 Commission process and review your
in Items I and II below, which Items
thereunder.29 The Exchange has comments more efficiently, please use
have been prepared by the Exchange.
requested that the Commission waive only one method. The Commission will
The Commission is publishing this
the thirty-day operative delay so that the post all comments on the Commission’s
notice to solicit comments on the
proposal may become operative Internet Web site (http://www.sec.gov/
proposed rule change from interested
immediately. The Exchange states that rules/sro.shtml).
Copies of the submission, all persons.
waiving the thirty-day operative delay
will enable Market Makers to enhance subsequent amendments, all written I. Self-Regulatory Organization’s
their risk controls and risk management statements with respect to the proposed Statement of the Terms of the Substance
processes without additional delay. The rule change that are filed with the of the Proposed Rule Change
Commission believes that waiving the Commission, and all written The text of the proposed rule change
thirty day delay is consistent with the communications relating to the is available on the Exchange’s Web site
protection of investors and the public proposed rule change between the (http://www.cboe.com/AboutCBOE/
interest. Therefore, the Commission Commission and any person, other than CBOELegalRegulatoryHome.aspx), at
hereby waives the thirty-day operative those that may be withheld from the the Exchange’s Office of the Secretary,
delay and designates the proposal public in accordance with the and at the Commission’s Public
effective upon filing.30 provisions of 5 U.S.C. 552, will be Reference Room.
At any time within 60 days of the available for Web site viewing and
filing of the proposed rule change, the printing in the Commission’s Public II. Self-Regulatory Organization’s
Commission summarily may Reference Room, 100 F Street NE., Statement of the Purpose of, and
temporarily suspend such rule change if Washington, DC 20549, on official Statutory Basis for, the Proposed Rule
it appears to the Commission that such business days between the hours of Change
10:00 a.m. and 3:00 p.m. Copies of the In its filing with the Commission, the
28 15 U.S.C. 78s(b)(3)(a)(ii). filing also will be available for Exchange included statements
29 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– inspection and copying at the principal concerning the purpose of and basis for
4(f)(6) requires a self-regulatory organization to give office of the Exchange. All comments
asabaliauskas on DSK5VPTVN1PROD with NOTICES
the Commission written notice of its intent to file
the proposed rule change and discussed
the proposed rule change at least five business days
received will be posted without change; any comments it received on the
prior to the date of filing of the proposed rule the Commission does not edit personal proposed rule change. The text of these
change, or such shorter time as designated by the identifying information from statements may be examined at the
Commission. The Exchange has satisfied this submissions. You should submit only
requirement.
places specified in Item IV below. The
30 For purposes of waiving the 30-day operative
information that you wish to make
delay, the Commission has considered the proposed available publicly. 31 17 CFR 200.30–3(a)(12).
rule’s impact on efficiency, competition, and capital All submissions should refer to File 1 15 U.S.C. 78s(b)(1).
formation. See 15 U.S.C. 78c(f). Number SR–Phlx–2015–52 and should 2 17 CFR 240.19b–4.
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![Federal Register / Vol. 80, No. 133 / Monday, July 13, 2015 / Notices 40113
action is necessary or appropriate in the 2015–065, and should be submitted on a series of the Vanguard Municipal
public interest, for the protection of or before August 3,2015. Bond Funds Trust (‘‘Trust’’).5 The
investors, or otherwise in furtherance of For the Commission, by the Division of Vanguard Group, Inc. will be the
the purposes of the Act. If the Trading and Markets, pursuant to delegated investment adviser to the Fund
Commission takes such action, the authority.11 (‘‘Adviser’’). State Street Bank and Trust
Commission shall institute proceedings Brent J. Fields, Company will serve as custodian for the
to determine whether the proposed rule Secretary. Fund. Vanguard Marketing Corporation
should be approved or disapproved. [FR Doc. 2015–16981 Filed 7–10–15; 8:45 am]
will be the distributor for the Shares.
IV. Solicitation of Comments BILLING CODE 8011–01–P A. Principal Investments of the Fund
Interested persons are invited to According to the Exchange, the Fund
submit written data, views, and will seek to track the performance of a
SECURITIES AND EXCHANGE
arguments concerning the foregoing, benchmark index that measures the
COMMISSION
including whether the proposed rule investment-grade segment of the U.S.
change is consistent with the Act. [Release No. 34–75376; File No. SR– municipal bond market, as described
NYSEArca–2015–18] below. The Fund will invest by
Comments may be submitted by any of
the following methods: sampling its benchmark index, meaning
Self-Regulatory Organizations; NYSE that it will hold a range of securities
Electronic Comments Arca, Inc.; Order Granting Approval of that, in the aggregate, approximates the
Proposed Rule Change Relating to full index in terms of key risk factors
• Use the Commission’s Internet Listing and Trading Under NYSE Arca
comment form (http://www.sec.gov/ and other characteristics. All of the
Equities Rule 5.2(j)(3), Commentary .02 Fund’s investments will be selected
rules/sro.shtml); or of Shares of the Vanguard Tax-Exempt through the sampling process, and,
• Send an email to rule-comments@ Bond Index Fund under normal circumstances,6 at least
sec.gov. Please include File Number SR–
July 7, 2015. 80% of the Fund’s assets will be
CBOE–2015–065 on the subject line.
invested in securities held in its
Paper Comments I. Introduction benchmark index. Under normal
On April 6, 2015, NYSE Arca, Inc. circumstances, at least 80% of the
• Send paper comments in triplicate
(‘‘Exchange’’ or ‘‘NYSE Arca’’) filed Fund’s income will be exempt from
to Brent J. Fields, Secretary, Securities federal income taxes.
with the Securities and Exchange
and Exchange Commission, 100 F Street According to the Exchange, the Fund
Commission (‘‘Commission’’), pursuant
NE., Washington, DC 20549–1090. has proposed to use the Standard &
to Section 19(b)(1) of the Securities
All submissions should refer to File Exchange Act of 1934 (‘‘Act’’)1 and Rule Poor’s National AMT-Free Municipal
Number SR–CBOE–2015–065. This file 19b–4 thereunder,2 a proposed rule Bond Index (‘‘Index’’) as its benchmark
number should be included on the change to list and trade under NYSE index.7 The Index includes municipal
subject line if email is used. To help the Arca Equities Rule 5.2(j)(3), bonds from issuers that are primarily
Commission process and review your Commentary .02, the shares (‘‘Shares’’) state or local governments or agencies
comments more efficiently, please use of the Vanguard Tax-Exempt Bond whose interest is exempt from U.S.
only one method. The Commission will Index Fund (‘‘Fund’’). The proposed federal income taxes and the federal
post all comments on the Commission’s rule change was published for comment alternative minimum tax (‘‘AMT’’). To
Internet Web site (http://www.sec.gov/ in the Federal Register on April 16, be eligible for inclusion in the Index,
rules/sro.shtml). Copies of the 2015.3 On May 26, 2015, the each bond must have a rating of at least
submission, all subsequent Commission extended the time period investment-grade, as determined by a
amendments, all written statements in which to approve the proposed rule nationally recognized statistical rating
with respect to the proposed rule change, disapprove the proposed rule organization (e.g., at least BBB–by Fitch
change that are filed with the change, or institute proceedings to Ratings, Inc.); be denominated in U.S.
Commission, and all written determine whether the proposed rule
communications relating to the change should be disapproved.4 The 5 The Exchange represents that, on January 6,
proposed rule change between the Commission received no comments on 2015, the Trust filed a registration statement
(‘‘Registration Statement’’) on Form N–1A under the
Commission and any person, other than the proposed rule change. This order Securities Act of 1933 and the Investment Company
those that may be withheld from the grants approval of the proposed rule Act of 1940 (‘‘1940 Act’’) (File Nos. 2–57689 and
public in accordance with the change. 811–02687). According to the Exchange, the Trust
provisions of 5 U.S.C. 552, will be has obtained certain exemptive relief from the
available for Web site viewing and II. Description of the Proposed Rule Commission under the 1940 Act. See Investment
Change Company Act Release No. 27773 (April 2, 2007)
printing in the Commission’s Public (File No. 812–13336).
Reference Room, 100 F Street, NE., The Exchange proposes to list and 6 According to the Exchange, term ‘‘under normal
Washington, DC 20549 on official trade Shares of the Fund under NYSE circumstances’’ includes, but is not limited to, the
business days between the hours of Arca Equities Rule 5.2(j)(3), absence of extreme volatility or trading halts in the
fixed income markets or the financial markets
10:00 a.m. and 3:00 p.m. Copies of such Commentary .02, which governs the generally; operational issues causing dissemination
filing also will be available for listing and trading of Investment of inaccurate market information; or force majeure
inspection and copying at the principal Company Units (‘‘Units’’) based on fixed type events such as systems failure, natural or man-
asabaliauskas on DSK5VPTVN1PROD with NOTICES
office of the Exchange. All comments income securities indexes. The Fund is made disaster, act of God, armed conflict, act of
terrorism, riot or labor disruption, or any similar
received will be posted without change; intervening circumstance.
11 17
CFR 200.30–3(a)(12).
the Commission does not edit personal 7 S&P Dow Jones Indices (‘‘S&P’’) is the ‘‘Index
1 15
U.S.C. 78s(b)(1).
identifying information from 2 17 CFR 240.19b–4.
Provider’’ with respect to the Index. According to
submissions. You should submit only the Exchange, the Index Provider is not a broker-
3 See Securities Exchange Act Release No. 74701
dealer or affiliated with a broker-dealer and has
information that you wish to make (April 10, 2015), 80 FR 20529 (‘‘Notice’’). implemented procedures designed to prevent the
available publicly. All submissions 4 See Securities Exchange Act Release No. 75042, use and dissemination of material, non-public
should refer to File Number SR–CBOE– 80 FR 31090 (June 1, 2015). information regarding the Index.
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Document Created: 2018-02-23 09:17:51
Document Modified: 2018-02-23 09:17:51
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 80 FR 40111 |
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