80 FR 73256 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Administration of Livevol X License Agreements
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 226 (November 24, 2015)
Federal Register Volume 80, Issue 226 (November 24, 2015)
| Page Range | 73256-73258 | |
| FR Document | 2015-29844 |
[Federal Register Volume 80, Number 226 (Tuesday, November 24, 2015)] [Notices] [Pages 73256-73258] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-29844] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76471; File No. SR-CBOE-2015-102] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Administration of Livevol X License Agreements November 18, 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 November 13, 2015, Chicago Board Options Exchange, Incorporated (the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \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 CBOE proposes to update the status of CBOE's administration of license agreements for Livevol X (``LVX''). 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 On August 7, 2015, CBOE Livevol, LLC (formerly CBOE IV, LLC) (``CBOE Livevol'') completed its acquisition of certain technology assets from the entity formerly known as Livevol, Inc. (``Livevol''), including LVX, a front-end order entry and management tool. CBOE had previously submitted a rule filing that, among other things, described the functionality of LVX and proposed applicable fees, which would become operative upon closing of the acquisition of assets from Livevol.\3\ In that filing, CBOE stated that it expected CBOE Livevol to assume agreements between Livevol and its then-current LVX customers at the closing of the acquisitions. CBOE further stated that CBOE Livevol intended to prepare a form license agreement for LVX and, no later than three months following the closing of the acquisition,\4\ ensure each customer executed the form agreement so that all LVX customers used the product pursuant to the same terms and conditions.\5\ --------------------------------------------------------------------------- \3\ See Securities Exchange Act Release No. 34-75302 (June 25, 2015), 80 FR 37685 (July 1, 2015) (SR-CBOE-2015-062). \4\ November 6, 2015 was the date three months following the closing of the acquisition. \5\ See supra note 3, at note 16. --------------------------------------------------------------------------- CBOE has made significant progress over the last three months in the complicated process of integrating the acquired Livevol business into CBOE's business and is in the process of distributing its form license agreement to LVX users. However, as LVX has [[Page 73257]] hundreds of users, CBOE believes it needs additional time to collect executed versions of this agreement from all these LVX users. At this time, CBOE expects to complete this process and ensure all LVX users have executed the form (and will thus be using LVX pursuant to the same contractual terms and conditions) by January 31, 2016. CBOE notes that all LVX users currently pay the same fees for LVX as set forth in the CBOE Fees Schedule. 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. --------------------------------------------------------------------------- The Exchange believes the proposed rule change does not discriminate among market participants, as CBOE continues to make LVX available to all market participants in the same manner, and use of LVX continues to be completely voluntary. The LVX functionality available to users remains the same. All LVX users pay the same fees for use of the product, which are set forth in the CBOE Fees Schedule. CBOE expects to license the applications to market participants pursuant to the same contractual terms and conditions set forth in the form license agreement once all LVX users have executed the form agreement. This rule filing has no impact on LVX customers' use of LVX; they may continue to use LVX in the same manner. It merely extends the time by which CBOE expects to complete the process of receiving executed versions of the form agreement from all LVX users. The Exchange notes that this rule filing does not amend the Exchange's rules, fees or systems. 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. This rule filing does not amend the Exchange's rules, fees or systems. CBOE continues to make LVX available to all market participants in the same manner, and use of LVX continues to be completely voluntary. The LVX functionality available to users remains the same. All LVX users currently pay the same fees for LVX as set forth in the CBOE Fees Schedule. CBOE expects to license the applications to market participants pursuant to the same contractual terms and conditions set forth in the form license agreement once all LVX users have executed the form agreement. This rule filing has no impact on LVX customers' use of LVX; they may continue to use LVX in the same manner. It merely extends the time by which CBOE expects to complete the process of receiving executed versions of the form agreement from all LVX users. Market participants continue to have the flexibility to use any order entry and management technology they choose, including LVX. 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 \9\ and paragraph (f) of Rule 19b-4 \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). --------------------------------------------------------------------------- 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-2015-102 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-2015-102. 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-2015-102, and should be submitted on or before December 15, 2015. [[Page 73258]] For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\11\ --------------------------------------------------------------------------- \11\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-29844 Filed 11-23-15; 8:45 am] BILLING CODE 8011-01-P
![73256 Federal Register / Vol. 80, No. 226 / Tuesday, November 24, 2015 / Notices
in person at testing centers. Since C2’s Commission and any person, other than I. Self-Regulatory Organization’s
proposed rule change is intended to those that may be withheld from the Statement of the Terms of the Substance
correct an external reference that was public in accordance with the of the Proposed Rule Change
the subject of a separate FINRA provisions of 5 U.S.C. 552, will be CBOE proposes to update the status of
proposed rule change, the Commission available for Web site viewing and CBOE’s administration of license
believes it is in the public interest to printing in the Commission’s Public agreements for Livevol X (‘‘LVX’’).
correct and update the C2 fee schedule Reference Room, 100 F Street NE.,
without delay. Accordingly, the II. Self-Regulatory Organization’s
Washington, DC 20549 on official
Commission hereby waives the Statement of the Purpose of, and
business days between the hours of Statutory Basis for, the Proposed Rule
operative delay and designates the 10:00 a.m. and 3:00 p.m. Copies of such
proposal operative upon filing.16 Change
filing also will be available for
At any time within 60 days of the inspection and copying at the principal In its filing with the Commission, the
filing of the proposed rule change, the Exchange included statements
offices of the Exchange. All comments
Commission summarily may concerning the purpose of and basis for
received will be posted without change;
temporarily suspend such rule change if the proposed rule change and discussed
it appears to the Commission that such the Commission does not edit personal
any comments it received on the
action is: (i) Necessary or appropriate in identifying information from proposed rule change. The text of these
the public interest; (ii) for the protection submissions. You should submit only statements may be examined at the
of investors; or (iii) otherwise in information that you wish to make places specified in Item IV below. The
furtherance of the purposes of the Act. available publicly. All submissions Exchange has prepared summaries, set
If the Commission takes such action, the should refer to File Number SR–C2– forth in sections A, B, and C below, of
Commission shall institute proceedings 2015–031, and should be submitted on the most significant aspects of such
to determine whether the proposed rule or before December 15, 2015. statements.
should be approved or disapproved. For the Commission, by the Division of A. Self-Regulatory Organization’s
IV. Solicitation of Comments Trading and Markets, pursuant to delegated Statement of the Purpose of, and
authority.17 Statutory Basis for, the Proposed Rule
Interested persons are invited to
Robert W. Errett, Change
submit written data, views, and
arguments concerning the foregoing, Deputy Secretary. 1. Purpose
including whether the proposed rule [FR Doc. 2015–29839 Filed 11–23–15; 8:45 am]
On August 7, 2015, CBOE Livevol,
change is consistent with the Act. BILLING CODE 8011–01–P
LLC (formerly CBOE IV, LLC) (‘‘CBOE
Comments may be submitted by any of Livevol’’) completed its acquisition of
the following methods: certain technology assets from the entity
SECURITIES AND EXCHANGE formerly known as Livevol, Inc.
Electronic Comments COMMISSION (‘‘Livevol’’), including LVX, a front-end
• Use the Commission’s Internet order entry and management tool. CBOE
comment form (http://www.sec.gov/ [Release No. 34–76471; File No. SR–CBOE– had previously submitted a rule filing
rules/sro.shtml); or 2015–102] that, among other things, described the
• Send an email to rule-comments@ functionality of LVX and proposed
sec.gov. Please include File Number SR– Self-Regulatory Organizations; applicable fees, which would become
C2–2015–031 on the subject line. Chicago Board Options Exchange, operative upon closing of the
Paper Comments Incorporated; Notice of Filing and acquisition of assets from Livevol.3 In
Immediate Effectiveness of a Proposed that filing, CBOE stated that it expected
• Send paper comments in triplicate Rule Change Relating to CBOE Livevol to assume agreements
to Secretary, Securities and Exchange Administration of Livevol X License between Livevol and its then-current
Commission, 100 F Street NE., Agreements LVX customers at the closing of the
Washington, DC 20549–1090. acquisitions. CBOE further stated that
All submissions should refer to File November 18, 2015. CBOE Livevol intended to prepare a
Number SR–C2–2015–031. This file Pursuant to Section 19(b)(1) of the form license agreement for LVX and, no
number should be included on the Securities Exchange Act of 1934 (the later than three months following the
subject line if email is used. To help the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 closing of the acquisition,4 ensure each
Commission process and review your notice is hereby given that on November customer executed the form agreement
comments more efficiently, please use so that all LVX customers used the
13, 2015, Chicago Board Options
only one method. The Commission will product pursuant to the same terms and
Exchange, Incorporated (the ‘‘Exchange’’
post all comments on the Commission’s conditions.5
Internet Web site (http://www.sec.gov/ or ‘‘CBOE’’) filed with the Securities
and Exchange Commission (the CBOE has made significant progress
rules/sro.shtml). Copies of the over the last three months in the
submission, all subsequent ‘‘Commission’’) the proposed rule
complicated process of integrating the
amendments, all written statements change as described in Items I, II, and
acquired Livevol business into CBOE’s
with respect to the proposed rule III below, which Items have been business and is in the process of
change that are filed with the prepared by the Exchange. The distributing its form license agreement
mstockstill on DSK4VPTVN1PROD with NOTICES
Commission, and all written Commission is publishing this notice to to LVX users. However, as LVX has
communications relating to the solicit comments on the proposed rule
proposed rule change between the change from interested persons. 3 See Securities Exchange Act Release No. 34–
75302 (June 25, 2015), 80 FR 37685 (July 1, 2015)
16 For purposes only of waiving the 30-day (SR–CBOE–2015–062).
17 17 CFR 200.30–3(a)(12). 4 November 6, 2015 was the date three months
operative delay, the Commission has considered the
1 15 U.S.C. 78s(b)(1).
proposed rule’s impact on efficiency, competition, following the closing of the acquisition.
and capital formation. See 15 U.S.C. 78c(f). 2 17 CFR 240.19b–4. 5 See supra note 3, at note 16.
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![73258 Federal Register / Vol. 80, No. 226 / Tuesday, November 24, 2015 / Notices
For the Commission, by the Division of proceedings under Section 19(b)(2)(B) of a management fee that is intended to
Trading and Markets, pursuant to delegated the Act 7 to determine whether to compensate Guggenheim for its service
authority.11 approve or disapprove the proposed as Sponsor and to cover certain Trust
Robert W. Errett, rule change. expenses. The management fee is paid
Deputy Secretary. monthly out of a Trust’s assets and is
I. Description of the Exchange’s
[FR Doc. 2015–29844 Filed 11–23–15; 8:45 am] calculated as a percentage of the
Proposal 8
BILLING CODE 8011–01–P currency held by each Trust.
A. Background Guggenheim’s fee accrues daily at an
The Exchange currently lists and annual nominal rate of 0.40% of the
SECURITIES AND EXCHANGE foreign currency held by the trust.
trades shares (‘‘Shares’’) of the
COMMISSION According to the Exchange, because
CurrencyShares® Euro Trust (‘‘Euro
the accrued but unpaid management fee
[Release No. 34–76472; File No. SR– Trust’’ or ‘‘FXE’’) and the
is subtracted from the assets in
NYSEArca–2015–68] CurrencyShares® Japanese Yen Trust
calculating each fund’s net asset value
(‘‘Yen Trust’’ or ‘‘FXY,’’ and together
Self-Regulatory Organizations; NYSE (‘‘NAV’’) on a daily basis,10 the value of
with the Euro Trust, collectively,
Arca, Inc.; Order Instituting the Shares decreases at a predictable
‘‘Trusts’’) under NYSE Arca Equities
Proceedings to Determine Whether To rate independent of the value of the
Rule 8.202.9
Approve or Disapprove Proposed Rule currency held by each Trust. The
FXE and FXY hold euros and
Change Relating To Implementation of Exchange refers to the rate at which the
Japanese yen, respectively, and issue
a Fee on Securities Lending and value of a Trust falls as a result of the
Shares in baskets (‘‘Baskets’’) of 50,000
Repurchase Transactions With management fee as the ‘‘Management
Shares in exchange for deposits of euros
Respect to Shares of the Fee Decay.’’
or yen, respectively. Each Trust redeems Like other equity securities, Shares
CurrencyShares® Euro Trust and the Baskets of Shares and distributes euros
CurrencyShares® Japanese Yen Trust may be loaned by shareholders to other
or yen, respectively. The Shares of FXE market participants. This securities
November 18, 2015.
and FXY represent units of fractional lending activity can facilitate short
undivided beneficial interests in the selling of Shares, as well as other
On July 30, 2015, NYSE Arca, Inc.
assets held by the relevant Trust. The investment strategies.11 Once loaned,
(‘‘Exchange’’) filed with the Securities
investment objective of each Trust is for the Shares may be (i) redeemed by the
and Exchange Commission
the Trust’s shares to reflect the price in borrower for underlying Trust assets, or
(‘‘Commission’’), pursuant to Section
U.S. dollars (‘‘USD’’) of the foreign (ii) sold.
19(b)(1) of the Securities Exchange Act
currency held by the Trust, plus accrued
of 1934 (‘‘Act’’) 1 and Rule 19b–4 B. The Exchange’s Description of the
interest and minus the expenses and
thereunder,2 a proposed rule change ‘‘Strategy’’ Allegedly Used by Some
liabilities of such Trust. According to
relating to implementation of a fee on Market Participants to Profit From
the Exchange, the Shares are intended to
securities lending and repurchase Management Fee Decay
provide institutional and retail investors
transactions with respect to shares of
with economic exposure to a particular According to the Exchange, the
the CurrencyShares® Euro Trust and the
foreign currency so that they can, for Sponsor claims to have identified a
CurrencyShares® Japanese Yen Trust,
example, hedge foreign currency risk in strategy (‘‘Strategy’’) that permits certain
which are currently listed and trading
other portfolio assets or hedge against market participants (‘‘Traders’’) to profit
on the Exchange under NYSE Arca
USD fluctuations more generally. from the reduction in the NAV of the
Equities Rule 8.202. The proposed rule
The Exchange represents that, as Shares over time associated with
change was published for comment in
sponsor of the Trusts, Guggenheim Management Fee Decay, to the
the Federal Register on August 20,
Specialized Products, LLC purported detriment of the value of the
2015.3 On September 18, 2015, pursuant
(‘‘Guggenheim’’ or ‘‘Sponsor’’) receives Shares held by shareholders who do not
to Section 19(b)(2) of the Act,4 the
Commission designated a longer period engage in the Strategy. Pursuant to the
on August 21, 2013 (regulatory bulletin available at Strategy, a Trader borrows Shares and
within which to approve the proposed http://www.sec.gov/rules/sro/nysearca/2015/34-
rule change, disapprove the proposed 75698-ex2a.pdf) and received two comment letters then either (1) sells the borrowed
rule change, or institute proceedings to in response. See Notice, supra note 3, 80 FR at Shares, taking a short position in the
determine whether to disapprove the 50705 n.22. See also Letter from Daniel J. McCabe, Shares, or (2) redeems the borrowed
President, Precidian Investments, to John Carey, Shares for euros or yen, as applicable.
proposed rule change.5 The Commission Vice President-Legal, NYSE (Sept. 20, 2013)
has not received any comments on the (supporting the proposed rule change); Letter from According to the Exchange, the
proposal.6 This order institutes Theodore R. Lazo, Associate General Counsel, and number of units of foreign currency
Kyle Brandon, Managing Director, SIFMA, to John
11 17
Carey, Vice President-Legal (Sept. 23, 2013) 10 To calculate NAV, the Trustee adds to the
CFR 200.30–3(a)(12). (opposing the proposal) (both letters available at
1 15 amount of euros/yen in the Trusts at the end of the
U.S.C.78s(b)(1). http://www.sec.gov/rules/sro/nysearca/2015/34-
2 17 CFR 240.19b–4.
preceding business day, accrued but unpaid
75698-ex2b.pdf). interest, euros/yen receivable under pending
3 See Securities Exchange Act Release No. 75698 7 15 U.S.C. 78s(b)(2)(B).
purchase orders and the value of other Trust assets,
(Aug. 14, 2015), 80 FR 50701 (‘‘Notice’’). 8 A complete description of the proposal can be and subtracts the accrued but unpaid management
4 15 U.S.C. 78s(b)(2).
found in the Notice. See Notice, supra note 3 fee, euros/yen payable under pending redemption
5 See Securities Exchange Act Release No. 75945, (available at: http://www.sec.gov/rules/sro/ orders and other Trust expenses and liabilities, if
80 FR 57645 (Sept. 24, 2015). The Commission nysearca/2015/34-75698.pdf). any. See Notice, supra note 3, at 3, 80 FR at 50701.
mstockstill on DSK4VPTVN1PROD with NOTICES
designated a longer period within which to take 9 Shares of the Trusts initially were approved for 11 A short sale is any sale of a security that the
action on the proposed rule change and designated listing and trading on the New York Stock seller does not own or any sale that is consummated
November 18, 2015, as the date by which it should Exchange, Inc. See Securities Exchange Act Release by the delivery of a security borrowed by, or for the
approve, disapprove, or institute proceedings to Nos. 52843 (Nov. 28, 2005), 70 FR 72486 (Dec. 5, account of, the seller. Short sales are normally
determine whether to disapprove the proposed rule 2005) (SR–NYSE–2005–65) (order approving listing settled by the delivery of a security borrowed by or
change. and trading of Shares of FXE); and 55268 (Feb. 9, on behalf of the investor. The investor later closes
6 Although the Commission has not yet received 2007), 72 FR 7793 (Feb. 20, 2007) (SR–NYSE–2007– out the position by returning the borrowed security
comments on the proposal, the Exchange represents 03) (order approving listing and trading of Shares to the stock lender, typically by purchasing
that it issued a Regulatory Bulletin on this proposal of FXY). securities on the open market.
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Document Created: 2015-12-14 14:08:44
Document Modified: 2015-12-14 14:08:44
| 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 73256 |
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