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)

Page Range		53218-53219
FR Document		2015-21671
Federal Register, Volume 80 Issue 170 (Wednesday, 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
53218 Federal Register / Vol. 80, No. 170 / Wednesday, September 2, 2015 / Notices

SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s practices, to promote just and equitable
COMMISSION Statement of the Purpose of, and principles of trade, to foster cooperation
Statutory Basis for, the Proposed Rule and coordination with persons engaged
[Release No. 34–75767; File No. SR–CBOE– Change in regulating, clearing, settling,
2015–074] processing information with respect to,
1. Purpose
and facilitation transactions in
The Exchange proposes to amend its securities, to remove impediments to
Self-Regulatory Organizations;
Fees Schedule.3 First, the Exchange and perfect the mechanism of a free and
Chicago Board Options Exchange,
proposes to eliminate references to open market and a national market
Incorporated; Notice of Filing and CBOE Short-Term Volatility Index system, and, in general, to protect
Immediate Effectiveness of a Proposed (‘‘VXST’’) options. Specifically, as of investors and the public interest.
Rule Change To Amend the Fees June 2015, the Exchange no longer lists Additionally, the Exchange believes the
Schedule VXST options. Accordingly, the proposed rule change is consistent with
August 27, 2015.
Exchange proposes to delete from the Section 6(b)(4) of the Act,6 which
Fees Schedule all references to VXST, as requires that Exchange rules provide for
Pursuant to Section 19(b)(1) of the such references are no longer necessary the equitable allocation of reasonable
Securities Exchange Act of 1934 1 and and will be obsolete. The Exchange also dues, fees, and other charges among its
Rule 19b–4 thereunder,2 notice is proposes to amend Footnote 31 of the Trading Permit Holders and other
hereby given that on August 17, 2015, Fees Schedule. Particularly, the persons using its facilities.
Chicago Board Options Exchange, Exchange currently waives the SPXW The Exchange believes the removal of
Incorporated (‘‘Exchange’’ or ‘‘CBOE’’) Customer Priority Surcharge for orders ‘‘VXST’’ references in the Fees Schedule
filed with the Securities and Exchange in SPX Weeklys (‘‘SPXW’’) options in maintains clarity in the Fees Schedule
Commission (‘‘Commission’’) the the SPXW electronic book that are and promotes just and equitable
proposed rule change as described in executed during opening rotation on the principles of trade by eliminating
Items I, II, and III below, which Items final settlement date of VXST options potential confusion and removing
have been prepared by the Exchange. and futures and which have the impediments to and perfecting the
The Commission is publishing this expiration that contribute to the VXST mechanism of a free and open market
settlement calculation. As mentioned and a national market system. The
notice to solicit comments on the
above, VXST options (and futures) are Exchange believes it is equitable and not
proposed rule change from interested
no longer listed. However, the Exchange unfairly discriminatory to exclude from
persons. notes that the CBOE Futures Exchange, the SPXW Customer Priority Surcharge
I. Self-Regulatory Organization’s LLC (‘‘CFE’’) recently introduced new those options that are executed during
Statement of the Terms of Substance of futures with a weekly expiration of a 30- opening rotation and which have the
the Proposed Rule Change day VIX and the Exchange anticipates expiration that contribute to the VIX
launching options with a weekly weekly settlement calculation because,
The Exchange proposes to amend its expiration of a 30-day VIX as well. The VIX weekly settlement values are based
Fees Schedule. The text of the proposed new VIX futures (and options) upon those SPXW options and the
rule change is available on the expirations are calculated using P.M.- Exchange therefore wants to encourage
Exchange’s Web site (http:// settled SPXW options that expire 30 trading in those options at the opening
www.cboe.com/AboutCBOE/ days later. As such, the Exchange on settlement days. Additionally, the
CBOELegalRegulatoryHome.aspx), at proposes to replace ‘‘VSXT options and Exchange believes the proposed rule
the Exchange’s Office of the Secretary, futures’’ with ‘‘VIX options and futures’’ change will continue to encourage the
and at the Commission’s Public in Footnote 31 as the Exchange believes trading of SPXW options that have the
Reference Room. it is not appropriate to assess the expiration that contribute to the now
surcharge on those SPXW options that VIX weekly settlement calculation at the
II. Self-Regulatory Organization’s are used in determining the final opening on settlement days, which will
Statement of the Purpose of, and settlement value on the final settlement provide additional liquidity and
Statutory Basis for, the Proposed Rule date of the new VIX weekly options and enhance competition in those securities,
Change futures. which ultimately benefits all CBOE
2. Statutory Basis Trading Permit Holders (‘‘TPHs’’) and
In its filing with the Commission, the all investors.
Exchange included statements The Exchange believes the proposed
concerning the purpose of and basis for rule change is consistent with the B. Self-Regulatory Organization’s
the proposed rule change and discussed Securities Exchange Act of 1934 (the Statement on Burden on Competition
any comments it received on the ‘‘Act’’) and the rules and regulations The Exchange does not believe that
proposed rule change. The text of these thereunder applicable to the Exchange the proposed rule changes will impose
statements may be examined at the and, in particular, the requirements of any burden on competition that are not
places specified in Item IV below. The Section 6(b) of the Act.4 Specifically, necessary or appropriate in furtherance
the Exchange believes the proposed rule of the purposes of the Act. The
Exchange has prepared summaries, set
change is consistent with the Section Exchange does not believe that the
forth in sections A, B, and C below, of
6(b)(5) 5 requirements that the rules of proposed rule change will impose any
the most significant aspects of such an exchange be designed to prevent
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statements. burden on intramarket competition
fraudulent and manipulative acts and because the proposed waiver would
apply equally to all CBOE TPHs who
3 The Exchange initially filed the proposed fee
trade those SPXW options that are used
changes on August 5, 2015 (SR–CBOE–2015–071).
On August 17, 2015, the Exchange withdrew that in determining the final settlement
filing and submitted this filing. value on the final settlement date of the
1 15 U.S.C. 78s(b)(1). 4 15 U.S.C. 78f(b).
2 17 CFR 240.19b–4. 5 15 U.S.C. 78f(b)(5). 6 15 U.S.C. 78f(b)(4).

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Federal Register / Vol. 80, No. 170 / Wednesday, September 2, 2015 / Notices 53219

new VIX weekly options and futures. • Send an email to rule-comments@ SECURITIES AND EXCHANGE
Additionally, the Exchange believes the sec.gov. Please include File Number SR– COMMISSION
proposed rule change will continue to CBOE–2015–074 on the subject line.
encourage the trading of SPXW options [Release No. 34–75768; File No. SR–NSCC–
that have the expiration that contribute Paper Comments 2015–003]
to the now VIX weekly settlement • Send paper comments in triplicate Self-Regulatory Organizations;
calculation at the opening on settlement to Secretary, Securities and Exchange National Securities Clearing
days, which will provide additional Corporation; Notice of Filing of
Commission, 100 F Street NE.,
liquidity and enhance competition in Proposed Rule Change To Enhance
Washington, DC 20549–1090.
those securities. The Exchange does not NSCC’s Margining Methodology as
believe that the proposed rule changes All submissions should refer to File Applied to Family-Issued Securities of
will impose any burden on intermarket Number SR–CBOE–2015–074. This file Certain NSCC Members
competition that is not necessary or number should be included on the
appropriate in furtherance of the subject line if email is used. To help the August 27, 2015.
purposes of the Act because the Commission process and review your Pursuant to section 19(b)(1) 1 of the
proposed rule change applies only to comments more efficiently, please use Securities Exchange Act of 1934 (‘‘Act’’)
CBOE. To the extent that the proposed only one method. The Commission will and Rule 19b–4 2 thereunder, notice is
changes make CBOE a more attractive post all comments on the Commission’s hereby given that on August 14, 2015,
marketplace for market participants at Internet Web site (http://www.sec.gov/ National Securities Clearing Corporation
other exchanges, such market rules/sro.shtml). Copies of the (‘‘NSCC’’) filed with the Securities and
participants are welcome to become submission, all subsequent Exchange Commission (‘‘Commission’’)
CBOE market participants. the proposed rule change as described
amendments, all written statements
C. Self-Regulatory Organization’s with respect to the proposed rule in Items I, II and III below, which Items
Statement on Comments on the change that are filed with the have been prepared by NSCC.3 NSCC
Proposed Rule Change Received From filed the proposed rule change pursuant
Commission, and all written
Members, Participants, or Others to section 19(b)(2) 4 of the Act. The
communications relating to the
Commission is publishing this notice to
The Exchange neither solicited nor proposed rule change between the solicit comments on the proposed rule
received comments on the proposed Commission and any person, other than change from interested persons.
rule change. those that may be withheld from the
public in accordance with the I. Clearing Agency’s Statement of the
III. Date of Effectiveness of the provisions of 5 U.S.C. 552, will be Terms of Substance of the Proposed
Proposed Rule Change and Timing for available for Web site viewing and Rule Change
Commission Action printing in the Commission’s Public The proposed rule change consists of
The foregoing rule change has become Reference Room, 100 F Street NE., amendments to NSCC’s Rules &
effective pursuant to Section 19(b)(3)(A) Washington, DC 20549 on official Procedures (‘‘Rules’’) in order to
of the Act 7 and paragraph (f) of Rule business days between the hours of enhance NSCC’s margining
19b–4 8 thereunder. At any time within 10:00 a.m. and 3:00 p.m. Copies of the methodology as applied to family-issued
60 days of the filing of the proposed rule filing also will be available for securities of NSCC Members 5 that are
change, the Commission summarily may inspection and copying at the principal placed on NSCC’s ‘‘Watch List’’, i.e.,
temporarily suspend such rule change if office of the Exchange. All comments those Members who present a
it appears to the Commission that such received will be posted without change; heightened credit risk to NSCC or have
action is necessary or appropriate in the the Commission does not edit personal demonstrated higher risk related to their
public interest, for the protection of identifying information from ability to meet settlement, as more fully
investors, or otherwise in furtherance of submissions. You should submit only described below.
the purposes of the Act. If the information that you wish to make II. Clearing Agency’s Statement of the
Commission takes such action, the available publicly. All submissions Purpose of, and Statutory Basis for, the
Commission will institute proceedings should refer to File Number SR–CBOE– Proposed Rule Change
to determine whether the proposed rule 2015–074 and should be submitted on
change should be approved or In its filing with the Commission,
or before September 23, 2015. NSCC included statements concerning
disapproved.
For the Commission, by the Division of the purpose of and basis for the
IV. Solicitation of Comments Trading and Markets, pursuant to delegated proposed rule change and discussed any
Interested persons are invited to authority.9 comments it received on the proposed
submit written data, views, and Robert W. Errett,
1 15 U.S.C. 78s(b)(1).
arguments concerning the foregoing, Deputy Secretary. 2 17 CFR 240.19b–4.
including whether the proposed rule [FR Doc. 2015–21671 Filed 9–1–15; 8:45 am] 3 On August 14, 2015, NSCC filed this proposed
change is consistent with the Act. BILLING CODE 8011–01–P rule change as an advance notice (SR–NSCC–2015–
Comments may be submitted by any of 803) with the Commission pursuant to section
the following methods: 806(e)(1) of the Dodd-Frank Wall Street Reform and
Consumer Protection Act entitled the Payment,
mstockstill on DSK4VPTVN1PROD with NOTICES

Electronic Comments Clearing, and Settlement Supervision Act of 2010
(‘‘Clearing Supervision Act’’), 12 U.S.C. 5465(e)(1),
• Use the Commission’s Internet and Rule 19b–4(n)(1)(i) of the Act, 17 CFR 240.19b–
comment form (http://www.sec.gov/ 4(n)(1)(i). A copy of the advance notice is available
at http://www.dtcc.com/legal/sec-rule-filings.aspx.
rules/sro.shtml); or 4 15 U.S.C. 78s(b)(2).
5 Terms not defined herein are defined in the
7 15 U.S.C. 78s(b)(3)(A). Rules, available at http://dtcc.com/∼/media/Files/
8 17 CFR 240.19b–4(f). 9 17 CFR 200.30–3(a)(12). Downloads/legal/rules/nscc_rules.pdf.

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Document Created: 2018-02-26 10:11:03
Document Modified: 2018-02-26 10:11:03
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		80 FR 53218