80 FR 53218 - 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 170 (September 2, 2015)

[Federal Register Volume 80, Number 170 (Wednesday, September 2, 2015)]
[Notices]
[Pages 53218-53219]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-21671]



[[Page 53218]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75767; File No. SR-CBOE-2015-074]


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

August 27, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on August 
17, 2015, Chicago Board Options Exchange, Incorporated (``Exchange'' or 
``CBOE'') filed with the Securities and Exchange Commission 
(``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 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.\3\ First, the 
Exchange proposes to eliminate references to CBOE Short-Term Volatility 
Index (``VXST'') options. Specifically, as of June 2015, the Exchange 
no longer lists VXST options. Accordingly, the Exchange proposes to 
delete from the Fees Schedule all references to VXST, as such 
references are no longer necessary and will be obsolete. The Exchange 
also proposes to amend Footnote 31 of the Fees Schedule. Particularly, 
the Exchange currently waives the SPXW Customer Priority Surcharge for 
orders in SPX Weeklys (``SPXW'') options in the SPXW electronic book 
that are executed during opening rotation on the final settlement date 
of VXST options and futures and which have the expiration that 
contribute to the VXST settlement calculation. As mentioned above, VXST 
options (and futures) are no longer listed. However, the Exchange notes 
that the CBOE Futures Exchange, LLC (``CFE'') recently introduced new 
futures with a weekly expiration of a 30-day VIX and the Exchange 
anticipates launching options with a weekly expiration of a 30-day VIX 
as well. The new VIX futures (and options) expirations are calculated 
using P.M.-settled SPXW options that expire 30 days later. As such, the 
Exchange proposes to replace ``VSXT options and futures'' with ``VIX 
options and futures'' in Footnote 31 as the Exchange believes it is not 
appropriate to assess the surcharge on those SPXW options that are used 
in determining the final settlement value on the final settlement date 
of the new VIX weekly options and futures.
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    \3\ The Exchange initially filed the proposed fee changes on 
August 5, 2015 (SR-CBOE-2015-071). On August 17, 2015, the Exchange 
withdrew that filing and submitted this filing.
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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.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
    \6\ 15 U.S.C. 78f(b)(4).
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    The Exchange believes the removal of ``VXST'' references in the 
Fees Schedule maintains clarity in the Fees Schedule and promotes just 
and equitable principles of trade by eliminating potential confusion 
and removing impediments to and perfecting the mechanism of a free and 
open market and a national market system. The Exchange believes it is 
equitable and not unfairly discriminatory to exclude from the SPXW 
Customer Priority Surcharge those options that are executed during 
opening rotation and which have the expiration that contribute to the 
VIX weekly settlement calculation because, VIX weekly settlement values 
are based upon those SPXW options and the Exchange therefore wants to 
encourage trading in those options at the opening on settlement days. 
Additionally, the Exchange believes the proposed rule change will 
continue to encourage the trading of SPXW options that have the 
expiration that contribute to the now VIX weekly settlement calculation 
at the opening on settlement days, which will provide additional 
liquidity and enhance competition in those securities, which ultimately 
benefits all CBOE Trading Permit Holders (``TPHs'') and all investors.

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

    The Exchange does not believe that the proposed rule changes will 
impose any burden on competition that are not necessary or appropriate 
in furtherance of the purposes of the Act. The Exchange does not 
believe that the proposed rule change will impose any burden on 
intramarket competition because the proposed waiver would apply equally 
to all CBOE TPHs who trade those SPXW options that are used in 
determining the final settlement value on the final settlement date of 
the

[[Page 53219]]

new VIX weekly options and futures. Additionally, the Exchange believes 
the proposed rule change will continue to encourage the trading of SPXW 
options that have the expiration that contribute to the now VIX weekly 
settlement calculation at the opening on settlement days, which will 
provide additional liquidity and enhance competition in those 
securities. The Exchange does not believe that the proposed rule 
changes will impose any burden on intermarket competition that is not 
necessary or appropriate in furtherance of the purposes of the Act 
because the proposed rule change applies only to CBOE. 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.

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 \7\ and paragraph (f) of Rule 19b-4 \8\ 
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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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f).
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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-2015-074 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-2015-074. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549 on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-CBOE-2015-074 and should be 
submitted on or before September 23, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-21671 Filed 9-1-15; 8:45 am]
 BILLING CODE 8011-01-P