80_FR_74379 80 FR 74151 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule

80 FR 74151 - 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 228 (November 27, 2015)

Page Range74151-74153
FR Document2015-30087

Federal Register, Volume 80 Issue 228 (Friday, November 27, 2015)
[Federal Register Volume 80, Number 228 (Friday, November 27, 2015)]
[Notices]
[Pages 74151-74153]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-30087]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76498; File No. SR-CBOE-2015-105]


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

November 20, 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 16, 2015, Chicago Board Options Exchange, Incorporated 
(the ``Exchange''

[[Page 74152]]

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.
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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 the 
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, effective 
November 16, 2015. Specifically, the Exchange proposes to amend the 
Fees Schedule with respect to Qualified Contingent Cross (``QCC'') \3\ 
orders. Currently, the Fees Schedule provides for a transaction fee for 
all non-customer QCC orders of $0.15 per contract side (customer orders 
are not assessed a charge) and a $0.10 per contract credit for the 
initiating order side, regardless of origin code.\4\ The Exchange first 
proposes to increase the fee for QCC transactions from $0.15 per 
contract to $0.17 per contract for all non-customer orders. The 
Exchange notes that the proposed increase is in line with other 
exchanges.\5\
---------------------------------------------------------------------------

    \3\ A QCC order is comprised of an order to buy or sell at least 
1,000 contracts (or 10,000 mini-option contracts) that is identified 
as being part of a qualified contingent trade, coupled with a 
contra-side order or orders totaling an equal number of contracts.
    \4\ The Exchange notes that the $0.10 per contract credit is not 
be available for customer-to-customer transactions.
    \5\ See e.g., NASDAQ OMX PHLX LLC (``PHLX'') Pricing Schedule, 
Section II, QCC Transaction Fees.
---------------------------------------------------------------------------

    Next, the Exchange proposes to provide that the maximum credit paid 
shall not exceed $350,000 per month per Trading Permit Holder 
(``TPH''). The Exchange notes that it will aggregate the credits of 
affiliated TPHs (TPHs with at least 75% common ownership between the 
firms as reflected on each firm's Form BD, Schedule A) for purposes of 
determining whether a TPH has met the QCC credit cap. The Exchange 
believes that, while limiting the amount of rebate that a market 
participant can receive, the current QCC rebate will continue to 
incentivize market participants to seek to obtain the highest rebate 
possible. The Exchange also notes that other Exchanges have similar 
caps on rebates offered for QCC transactions.\6\
---------------------------------------------------------------------------

    \6\ See e.g., PHLX Pricing Schedule, Section II, QCC Transaction 
Fees and NSYE Amex Options Fees Schedule (``Amex''), Section IE, 
Qualified Contingent Cross (``QCC'') Fees and Credits for Standard 
Options and Mini Options.
---------------------------------------------------------------------------

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. Specifically, the Exchange 
believes the proposed rule change is consistent with the Section 
6(b)(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, 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.
    The Exchange believes the proposed increase to the transaction fee 
for QCC orders is reasonable because the proposed amount is in line 
with the amount assessed at other Exchanges for similar 
transactions.\7\ Additionally, the proposed fee increase would be 
charged to all non-customers alike. Assessing QCC rates to all market 
participants except customers is equitable and not unfairly 
discriminatory because Customer order flow enhances liquidity on the 
Exchange for the benefit of all market participants. Specifically, 
Customer liquidity benefits all market participants by providing more 
trading opportunities, which attracts Market-Makers. An increase in the 
activity of these market participants in turn facilitates tighter 
spreads, which may cause an additional corresponding increase in order 
flow from other market participants. By exempting customer orders, the 
QCC transaction fees will not discourage the sending of customer 
orders.
---------------------------------------------------------------------------

    \7\ See e.g., PHLX Pricing Schedule, Section II, QCC Transaction 
Fees and NSYE Amex Options Fees Schedule, Section I.E, Qualified 
Contingent Cross (``QCC'') Fees and Credits for Standard Options and 
Mini Options.
---------------------------------------------------------------------------

    The Exchange believes the proposed QCC credit cap is reasonable, 
equitable and not unfairly discriminatory because it is in line with 
similar caps on rebates paid for QCC transactions at other exchanges 
\8\ and because all TPHs would be uniformly capped at $350,000 per 
month. The Exchange also believes it's reasonable, equitable and not 
unfairly discriminatory to provide that it will aggregate the credits 
of affiliated TPHs to determine whether the credit cap has been met, as 
the Exchange believes this should prevent TPHs from dividing up their 
orders to different affiliates in order to avoid meeting the cap and it 
would apply to all TPHs.
---------------------------------------------------------------------------

    \8\ Id.
---------------------------------------------------------------------------

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 that is not necessary or appropriate in 
furtherance of the purposes of the Act, because the proposes [sic] rule 
changes apply uniformly to all Trading Permit Holders. The Exchange 
believes this proposal will not cause an unnecessary burden on 
intermarket competition because it only affects trading on 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. 
Additionally,

[[Page 74153]]

the Exchange notes that it operates in a highly competitive market, 
comprised of thirteen options exchanges, in which market participants 
can easily and readily direct order flow to competing venues if they 
deem fee levels at a particular venue to be excessive or rebates to be 
inadequate.

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 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-2015-105 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-2015-105. 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 offices 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-2015-105, 
and should be submitted on or before December 18, 2015.
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    \11\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-30087 Filed 11-25-15; 8:45 am]
 BILLING CODE 8011-01-P



                                                                              Federal Register / Vol. 80, No. 228 / Friday, November 27, 2015 / Notices                                                  74151

                                                     The Exchange also believes that the                  attractive or favorable. Additionally, as               number should be included on the
                                                  proposed rule change is designed to not                 discussed above, other options                          subject line if email is used. To help the
                                                  permit unfair discrimination among                      exchanges offer their members similar                   Commission process and review your
                                                  market participants. Use of the optional                functionality.14                                        comments more efficiently, please use
                                                  service will be voluntary and within the                   The proposed rule change to delete                   only one method. The Commission will
                                                  sole discretion of each TPH. The                        language regarding CMi has no impact                    post all comments on the Commission’s
                                                  proposed optional service is available to               on competition, as it merely deletes a                  Internet Web site (http://www.sec.gov/
                                                  all TPHs and will apply to the same                     provision regarding an API that is no                   rules/sro.shtml). Copies of the
                                                  order types of all TPHs.                                longer used by, and is no longer                        submission, all subsequent
                                                     The proposed rule change to delete                   available to, TPHs. CMi 2 ultimately                    amendments, all written statements
                                                  language related to CMi benefits                        replaced CMi, and FIX continues to be                   with respect to the proposed rule
                                                  investors, as that API is no longer                     available to TPHs as well.                              change that are filed with the
                                                  available to TPHs and thus deletion of                  C. Self-Regulatory Organization’s                       Commission, and all written
                                                  that language helps eliminate confusion.                Statement on Comments on the                            communications relating to the
                                                  CMi2 and FIX continue to be available                   Proposed Rule Change Received From                      proposed rule change between the
                                                  to TPHs.                                                Members, Participants, or Others                        Commission and any person, other than
                                                                                                                                                                  those that may be withheld from the
                                                  B. Self-Regulatory Organization’s                         The Exchange neither solicited nor                    public in accordance with the
                                                  Statement on Burden on Competition                      received comments on the proposed                       provisions of 5 U.S.C. 552, will be
                                                     CBOE does not believe that the                       rule change.                                            available for Web site viewing and
                                                  proposed rule change will impose any                    III. Date of Effectiveness of the                       printing in the Commission’s Public
                                                  burden on competition that is not                       Proposed Rule Change and Timing for                     Reference Room, 100 F Street NE.,
                                                  necessary or appropriate in furtherance                 Commission Action                                       Washington, DC 20549 on official
                                                  of the purposes of the Act. Specifically,                                                                       business days between the hours of
                                                                                                             The foregoing rule change has become                 10:00 a.m. and 3:00 p.m. Copies of the
                                                  the Exchange does not believe the                       effective pursuant to Section 19(b)(3)(A)
                                                  proposed rule change will cause any                                                                             filing also will be available for
                                                                                                          of the Act 15 and paragraph (f) of Rule                 inspection and copying at the principal
                                                  burden on intramarket competition                       19b–4 16 thereunder. At any time within
                                                  because the optional service will be                                                                            office of the Exchange. All comments
                                                                                                          60 days of the filing of the proposed rule              received will be posted without change;
                                                  available to all TPHs. Use of this                      change, the Commission summarily may
                                                  optional service will be within the sole                                                                        the Commission does not edit personal
                                                                                                          temporarily suspend such rule change if                 identifying information from
                                                  discretion of each TPH. The proposed                    it appears to the Commission that such
                                                  rule change will have no impact on                                                                              submissions. You should submit only
                                                                                                          action is necessary or appropriate in the               information that you wish to make
                                                  TPHs that do not enable the proposed                    public interest, for the protection of
                                                  optional service. For TPHs that elect to                                                                        available publicly. All submissions
                                                                                                          investors, or otherwise in furtherance of               should refer to File Number SR–CBOE–
                                                  enable the proposed optional service,                   the purposes of the Act. If the
                                                  the only impact on those TPHs will be                                                                           2015–103 and should be submitted on
                                                                                                          Commission takes such action, the                       or before December 18, 2015.
                                                  cancellation of day orders (in addition                 Commission will institute proceedings
                                                  to Market-Maker quotes) upon loss of                    to determine whether the proposed rule                    For the Commission, by the Division of
                                                  connectivity. The Technical Disconnect                                                                          Trading and Markets, pursuant to delegated
                                                                                                          change should be approved or
                                                  Mechanism will otherwise continue to                                                                            authority.17
                                                                                                          disapproved.
                                                  function in the same manner as it does                                                                          Robert W. Errett,
                                                  today. Further, the Exchange does not                   IV. Solicitation of Comments                            Deputy Secretary.
                                                  believe that such change will impose                      Interested persons are invited to                     [FR Doc. 2015–30075 Filed 11–25–15; 8:45 am]
                                                  any burden on intermarket competition                   submit written data, views, and                         BILLING CODE 8011–01–P
                                                  that is not necessary or appropriate in                 arguments concerning the foregoing,
                                                  furtherance of the purposes of the Act.                 including whether the proposed rule
                                                  The proposed rule change modifies a                     change is consistent with the Act.                      SECURITIES AND EXCHANGE
                                                  mechanism available on CBOE’s system                    Comments may be submitted by any of                     COMMISSION
                                                  and applies only to orders entered on                   the following methods:                                  [Release No. 34–76498; File No. SR–CBOE–
                                                  CBOE. The Exchange notes that, should                                                                           2015–105]
                                                                                                          Electronic comments
                                                  the proposed change make CBOE a more
                                                  attractive place for trading, market                      • Use the Commission’s Internet                       Self-Regulatory Organizations;
                                                  participants trading on other exchanges                 comment form (http://www.sec.gov/                       Chicago Board Options Exchange,
                                                  are welcome to become TPHs and trade                    rules/sro.shtml); or                                    Incorporated; Notice of Filing and
                                                  at CBOE if they determine that this                       • Send an email to rule-comments@                     Immediate Effectiveness of a Proposed
                                                  proposed change has made CBOE more                      sec.gov. Please include File Number SR–                 Rule Change To Amend the Fees
                                                                                                          CBOE–2015–103 on the subject line.                      Schedule
                                                  available at http://www.batstrading.com/resources/      Paper comments
                                                  membership/BATS_FIX_Specification.pdf (see                                                                      November 20, 2015.
                                                  Section 5.1 for description of automatic cancel on        • Send paper comments in triplicate                      Pursuant to Section 19(b)(1) of the
                                                  disconnection or malfunction); MIAX Options             to Brent J. Fields, Secretary, Securities               Securities Exchange Act of 1934 (the
                                                  Market Protections Handout (March 2015),
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                  available at https://www.miaxoptions.com/sites/
                                                                                                          and Exchange Commission, 100 F Street                   ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                  default/files/MIAX_Market_Protections_March_            NE., Washington, DC 20549–1090.                         notice is hereby given that on November
                                                  2015.pdf (see page 5 for description of auto cancel     All submissions should refer to File                    16, 2015, Chicago Board Options
                                                  on disconnect order protection); and NYSE               Number SR–CBOE–2015–103. This file                      Exchange, Incorporated (the ‘‘Exchange’’
                                                  UTPDirect (CGC Binary) API Specification, V1.4
                                                  (February 26, 2015), available at https://
                                                                                                            14 Id.                                                  17 17 CFR 200.30–3(a)(12).
                                                  www.nyse.com/publicdocs/nyse/markets/nyse/
                                                                                                            15 15 U.S.C. 78s(b)(3)(A).                              1 15 U.S.C. 78s(b)(1).
                                                  NYSEUTPDirect_Specification.pdf (see Section 3.8
                                                  for description of cancel on disconnect service).         16 17 CFR 240.19b–4(f).                                 2 17 CFR 240.19b–4.




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                                                  74152                        Federal Register / Vol. 80, No. 228 / Friday, November 27, 2015 / Notices

                                                  or ‘‘CBOE’’) filed with the Securities                  non-customer orders. The Exchange                     similar transactions.7 Additionally, the
                                                  and Exchange Commission (the                            notes that the proposed increase is in                proposed fee increase would be charged
                                                  ‘‘Commission’’) the proposed rule                       line with other exchanges.5                           to all non-customers alike. Assessing
                                                  change as described in Items I, II, and                    Next, the Exchange proposes to                     QCC rates to all market participants
                                                  III below, which Items have been                        provide that the maximum credit paid                  except customers is equitable and not
                                                  prepared by the Exchange. The                           shall not exceed $350,000 per month                   unfairly discriminatory because
                                                  Commission is publishing this notice to                 per Trading Permit Holder (‘‘TPH’’). The              Customer order flow enhances liquidity
                                                  solicit comments on the proposed rule                   Exchange notes that it will aggregate the             on the Exchange for the benefit of all
                                                  change from interested persons.                                                                               market participants. Specifically,
                                                                                                          credits of affiliated TPHs (TPHs with at
                                                                                                                                                                Customer liquidity benefits all market
                                                  I. Self-Regulatory Organization’s                       least 75% common ownership between
                                                                                                                                                                participants by providing more trading
                                                  Statement of the Terms of the Substance                 the firms as reflected on each firm’s
                                                                                                                                                                opportunities, which attracts Market-
                                                  of the Proposed Rule Change                             Form BD, Schedule A) for purposes of
                                                                                                                                                                Makers. An increase in the activity of
                                                     The Exchange proposes to amend its                   determining whether a TPH has met the                 these market participants in turn
                                                  Fees Schedule. The text of the proposed                 QCC credit cap. The Exchange believes                 facilitates tighter spreads, which may
                                                  rule change is available on the                         that, while limiting the amount of rebate             cause an additional corresponding
                                                  Exchange’s Web site (http://                            that a market participant can receive,                increase in order flow from other market
                                                  www.cboe.com/AboutCBOE/                                 the current QCC rebate will continue to               participants. By exempting customer
                                                  CBOELegalRegulatoryHome.aspx), at                       incentivize market participants to seek               orders, the QCC transaction fees will not
                                                  the Exchange’s Office of the Secretary,                 to obtain the highest rebate possible.                discourage the sending of customer
                                                  and at the Commission’s Public                          The Exchange also notes that other                    orders.
                                                  Reference Room.                                         Exchanges have similar caps on rebates                   The Exchange believes the proposed
                                                                                                          offered for QCC transactions.6                        QCC credit cap is reasonable, equitable
                                                  II. Self-Regulatory Organization’s
                                                  Statement of the Purpose of, and                        2. Statutory Basis                                    and not unfairly discriminatory because
                                                                                                                                                                it is in line with similar caps on rebates
                                                  Statutory Basis for, the Proposed Rule
                                                                                                             The Exchange believes the proposed                 paid for QCC transactions at other
                                                  Change
                                                                                                          rule change is consistent with the                    exchanges 8 and because all TPHs would
                                                     In its filing with the Commission, the               Securities Exchange Act of 1934 (the                  be uniformly capped at $350,000 per
                                                  Exchange included statements                            ‘‘Act’’) and the rules and regulations                month. The Exchange also believes it’s
                                                  concerning the purpose of and basis for                 thereunder applicable to the Exchange                 reasonable, equitable and not unfairly
                                                  the proposed rule change and discussed                  and, in particular, the requirements of               discriminatory to provide that it will
                                                  any comments it received on the                         Section 6(b) of the Act. Specifically, the            aggregate the credits of affiliated TPHs
                                                  proposed rule change. The text of these                 Exchange believes the proposed rule                   to determine whether the credit cap has
                                                  statements may be examined at the                       change is consistent with the Section                 been met, as the Exchange believes this
                                                  places specified in Item IV below. The                  6(b)(5) requirements that the rules of an             should prevent TPHs from dividing up
                                                  Exchange has prepared summaries, set                    exchange be designed to prevent                       their orders to different affiliates in
                                                  forth in sections A, B, and C below, of                 fraudulent and manipulative acts and                  order to avoid meeting the cap and it
                                                  the most significant aspects of such                    practices, to promote just and equitable              would apply to all TPHs.
                                                  statements.                                             principles of trade, to foster cooperation            B. Self-Regulatory Organization’s
                                                  A. Self-Regulatory Organization’s                       and coordination with persons engaged                 Statement on Burden on Competition
                                                  Statement of the Purpose of, and                        in regulating, clearing, settling,
                                                                                                                                                                   The Exchange does not believe that
                                                  Statutory Basis for, the Proposed Rule                  processing information with respect to,
                                                                                                                                                                the proposed rule changes will impose
                                                  Change                                                  and facilitation transactions in
                                                                                                                                                                any burden on competition that are not
                                                                                                          securities, to remove impediments to                  necessary or appropriate in furtherance
                                                  1. Purpose
                                                                                                          and perfect the mechanism of a free and               of the purposes of the Act. The
                                                     The Exchange proposes to amend its                   open market and a national market
                                                  Fees Schedule, effective November 16,                                                                         Exchange does not believe that the
                                                                                                          system, and, in general, to protect                   proposed rule change will impose any
                                                  2015. Specifically, the Exchange                        investors and the public interest.                    burden on intramarket competition that
                                                  proposes to amend the Fees Schedule                     Additionally, the Exchange believes the               is not necessary or appropriate in
                                                  with respect to Qualified Contingent                    proposed rule change is consistent with               furtherance of the purposes of the Act,
                                                  Cross (‘‘QCC’’) 3 orders. Currently, the                Section 6(b)(4) of the Act, which                     because the proposes [sic] rule changes
                                                  Fees Schedule provides for a transaction                requires that Exchange rules provide for              apply uniformly to all Trading Permit
                                                  fee for all non-customer QCC orders of                  the equitable allocation of reasonable                Holders. The Exchange believes this
                                                  $0.15 per contract side (customer orders                dues, fees, and other charges among its               proposal will not cause an unnecessary
                                                  are not assessed a charge) and a $0.10                  Trading Permit Holders and other                      burden on intermarket competition
                                                  per contract credit for the initiating                  persons using its facilities.                         because it only affects trading on CBOE.
                                                  order side, regardless of origin code.4                    The Exchange believes the proposed                 To the extent that the proposed changes
                                                  The Exchange first proposes to increase                 increase to the transaction fee for QCC               make CBOE a more attractive
                                                  the fee for QCC transactions from $0.15                 orders is reasonable because the                      marketplace for market participants at
                                                  per contract to $0.17 per contract for all              proposed amount is in line with the                   other exchanges, such market
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                     3 A QCC order is comprised of an order to buy
                                                                                                          amount assessed at other Exchanges for                participants are welcome to become
                                                  or sell at least 1,000 contracts (or 10,000 mini-                                                             CBOE market participants. Additionally,
                                                  option contracts) that is identified as being part of     5 See e.g., NASDAQ OMX PHLX LLC (‘‘PHLX’’)

                                                  a qualified contingent trade, coupled with a contra-    Pricing Schedule, Section II, QCC Transaction Fees.     7 See e.g., PHLX Pricing Schedule, Section II,

                                                  side order or orders totaling an equal number of          6 See e.g., PHLX Pricing Schedule, Section II,      QCC Transaction Fees and NSYE Amex Options
                                                  contracts.                                              QCC Transaction Fees and NSYE Amex Options            Fees Schedule, Section I.E, Qualified Contingent
                                                     4 The Exchange notes that the $0.10 per contract     Fees Schedule (‘‘Amex’’), Section IE, Qualified       Cross (‘‘QCC’’) Fees and Credits for Standard
                                                  credit is not be available for customer-to-customer     Contingent Cross (‘‘QCC’’) Fees and Credits for       Options and Mini Options.
                                                  transactions.                                           Standard Options and Mini Options.                      8 Id.




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                                                                                  Federal Register / Vol. 80, No. 228 / Friday, November 27, 2015 / Notices                                                  74153

                                                  the Exchange notes that it operates in a                   only one method. The Commission will                  ‘‘Commission’’) the proposed rule
                                                  highly competitive market, comprised of                    post all comments on the Commission’s                 change as described in Items I, II, and
                                                  thirteen options exchanges, in which                       Internet Web site (http://www.sec.gov/                III below, which Items have been
                                                  market participants can easily and                         rules/sro.shtml). Copies of the                       prepared by the self-regulatory
                                                  readily direct order flow to competing                     submission, all subsequent                            organization. The Commission is
                                                  venues if they deem fee levels at a                        amendments, all written statements                    publishing this notice to solicit
                                                  particular venue to be excessive or                        with respect to the proposed rule                     comments on the proposed rule change
                                                  rebates to be inadequate.                                  change that are filed with the                        from interested persons.
                                                                                                             Commission, and all written
                                                  C. Self-Regulatory Organization’s                          communications relating to the                        I. Self-Regulatory Organization’s
                                                  Statement on Comments on the                               proposed rule change between the                      Statement of the Terms of Substance of
                                                  Proposed Rule Change Received From                         Commission and any person, other than                 the Proposed Rule Change
                                                  Members, Participants, or Others                           those that may be withheld from the
                                                    The Exchange neither solicited nor                       public in accordance with the                           The Exchange proposes a rule to [sic]
                                                  received comments on the proposed                          provisions of 5 U.S.C. 552, will be                   relating to fingerprint-based background
                                                  rule change.                                               available for Web site viewing and                    checks of directors, officers, employees
                                                                                                             printing in the Commission’s Public                   and others. The proposed rule change is
                                                  III. Date of Effectiveness of the                                                                                available on the Exchange’s Web site at
                                                                                                             Reference Room, 100 F Street NE.,
                                                  Proposed Rule Change and Timing for                        Washington, DC 20549 on official                      www.nyse.com, at the principal office of
                                                  Commission Action                                          business days between the hours of                    the Exchange, and at the Commission’s
                                                     The foregoing rule change has become                    10:00 a.m. and 3:00 p.m. Copies of such               Public Reference Room.
                                                  effective pursuant to Section 19(b)(3)(A)                  filing also will be available for                     II. Self-Regulatory Organization’s
                                                  of the Act 9 and paragraph (f) of Rule                     inspection and copying at the principal               Statement of the Purpose of, and
                                                  19b–4 10 thereunder. At any time within                    offices of the Exchange. All comments
                                                                                                                                                                   Statutory Basis for, the Proposed Rule
                                                  60 days of the filing of the proposed rule                 received will be posted without change;
                                                                                                                                                                   Change
                                                  change, the Commission summarily may                       the Commission does not edit personal
                                                  temporarily suspend such rule change if                    identifying information from                            In its filing with the Commission, the
                                                  it appears to the Commission that such                     submissions. You should submit only                   self-regulatory organization included
                                                  action is necessary or appropriate in the                  information that you wish to make                     statements concerning the purpose of,
                                                  public interest, for the protection of                     available publicly. All submissions                   and basis for, the proposed rule change
                                                  investors, or otherwise in furtherance of                  should refer to File Number SR–CBOE–                  and discussed any comments it received
                                                  the purposes of the Act. If the                            2015–105, and should be submitted on                  on the proposed rule change. The text
                                                  Commission takes such action, the                          or before December18, 2015.                           of those statements may be examined at
                                                  Commission will institute proceedings                        For the Commission, by the Division of              the places specified in Item IV below.
                                                  to determine whether the proposed rule                     Trading and Markets, pursuant to delegated            The Exchange has prepared summaries,
                                                  change should be approved or                               authority.11
                                                                                                                                                                   set forth in sections A, B, and C below,
                                                  disapproved.                                               Robert W. Errett,                                     of the most significant parts of such
                                                  IV. Solicitation of Comments                               Deputy Secretary.                                     statements.
                                                                                                             [FR Doc. 2015–30087 Filed 11–25–15; 8:45 am]
                                                    Interested persons are invited to                        BILLING CODE 8011–01–P                                A. Self-Regulatory Organization’s
                                                  submit written data, views, and                                                                                  Statement of the Purpose of, and the
                                                  arguments concerning the foregoing,                                                                              Statutory Basis for, the Proposed Rule
                                                  including whether the proposed rule                        SECURITIES AND EXCHANGE                               Change
                                                  change is consistent with the Act.                         COMMISSION
                                                  Comments may be submitted by any of                                                                              1. Purpose
                                                  the following methods:                                     [Release No. 34–76492; File No. SR–
                                                                                                             NYSEArca-2015–92]                                        The Exchange and its wholly owned
                                                  Electronic Comments                                                                                              subsidiary NYSE Arca Equities proposes
                                                                                                             Self-Regulatory Organizations; NYSE                   a new Rule 3.11 4 codifying the current
                                                    • Use the Commission’s Internet                          Arca, Inc.; Notice of Filing and
                                                  comment form (http://www.sec.gov/                                                                                practice of conducting fingerprint-based
                                                                                                             Immediate Effectiveness of Proposed                   background checks of prospective and
                                                  rules/sro.shtml); or                                       Rule Change Adopting a Rule Relating
                                                    • Send an email to rule-comments@                                                                              current employees, temporary
                                                                                                             to Fingerprint-Based Background                       personnel, independent contractors,
                                                  sec.gov. Please include File Number SR–
                                                                                                             Checks of Directors, Officers,                        service providers and others. The
                                                  CBOE–2015–105 on the subject line.
                                                                                                             Employees, and Others                                 proposed rule is substantially similar to
                                                  Paper Comments                                                                                                   Rule 28 of the Exchange’s affiliates, New
                                                                                                             November 20, 2015.
                                                    • Send paper comments in triplicate                         Pursuant to Section 19(b)(1) 1 of the              York Stock Exchange LLC and NYSE
                                                  to Secretary, Securities and Exchange                      Securities Exchange Act of 1934 (the                  MKT LLC.5 A number of other securities
                                                  Commission, 100 F Street NE.,                              ‘‘Act’’) 2 and Rule 19b–4 thereunder,3                markets have also adopted a similar
                                                  Washington, DC 20549–1090.                                 notice is hereby given that, on                       rule, permitting them to obtain
                                                  All submissions should refer to File                       November 12, 2015, NYSE Arca, Inc.                    fingerprints from certain enumerated
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                  Number SR–CBOE–2015–105. This file                         (the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed
                                                  number should be included on the                           with the Securities and Exchange                        4 NYSE Arca and NYSE Arca Equities Rule 3

                                                  subject line if email is used. To help the                 Commission (the ‘‘SEC’’ or                            govern organization and administration. The text of
                                                  Commission process and review your                                                                               proposed Rule 3.11 would be identical for both
                                                                                                                                                                   NYSE Arca and NYSE Arca Equities.
                                                  comments more efficiently, please use                        11 17 CFR 200.30–3(a)(12).                            5 See NYSE Rule 28; NYSE MKT Rule 28. There
                                                                                                               1 15 U.S.C.78s(b)(1).                               are no substantive differences between the
                                                    9 15   U.S.C. 78s(b)(3)(A).                                2 15 U.S.C. 78a.
                                                                                                                                                                   proposed Rule and NYSE Rule 28 and NYSE MKT
                                                    10 17   CFR 240.19b–4(f).                                  3 17 CFR 240.19b–4.                                 Rule 28.



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Document Created: 2015-12-14 14:05:57
Document Modified: 2015-12-14 14:05:57
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation80 FR 74151 

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