80 FR 77037 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Withdrawal of Proposed Rule Change To Amend the Fees Schedule

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 238 (December 11, 2015)

Page Range		77037-77038
FR Document		2015-31179

Federal Register, Volume 80 Issue 238 (Friday, December 11, 2015)

[Federal Register Volume 80, Number 238 (Friday, December 11, 2015)]
[Notices]
[Pages 77037-77038]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-31179]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76575; File No. SR-CBOE-2015-101]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Withdrawal of Proposed Rule Change To Amend the 
Fees Schedule

December 7, 2015.
    On November 2, 2015, the Chicago Board Options Exchange, 
Incorporated (``Exchange'') filed with the Securities and Exchange 
Commission (``Commission''), pursuant to Section 19(b)(1) of the 
Securities Exchange Act of 1934 \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to amend the Exchange's fees schedule. The 
proposed rule change was published for comment in the Federal Register 
on November 25, 2015.\3\ The Commission received no comment letters on 
the proposal. On December 1, 2015, the Exchange

[[Page 77038]]

withdrew the proposed rule change (SR-CBOE-2015-101).
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4
    \3\ See Securities Exchange Act Release No. 34-76442 (November 
16, 2015), 80 FR 72761.
    \4\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\4\
Brent J. Fields,
Secretary.
[FR Doc. 2015-31179 Filed 12-10-15; 8:45 am]
 BILLING CODE 8011-01-P

Federal Register / Vol. 80, No. 238 / Friday, December 11, 2015 / Notices 77037

among other things, to promote just and Commission may designate, if with respect to the proposed rule
equitable principles of trade, to remove consistent with the protection of change that are filed with the
impediments to, and perfect the investors and the public interest, the Commission, and all written
mechanism of a free and open market proposed rule change has become communications relating to the
and a national market system, and, in effective pursuant to Section 19(b)(3)(A) proposed rule change between the
general, to protect investors and the of the Act and Rule 19b–4(f)(6)(iii) Commission and any person, other than
public interest. The Exchange believes thereunder. those that may be withheld from the
that the proposed rule change to make A proposed rule change filed under public in accordance with the
the Series 57 Examination the qualifying Rule 19b–4(f)(6) 17 normally does not provisions of 5 U.S.C. 552, will be
exam for individuals engaged solely in become operative prior to 30 days after available for Web site viewing and
proprietary trading is appropriate the date of the filing. However, pursuant printing in the Commission’s Public
because the Series 57 Examination to Rule 19b4(f)(6)(iii),18 the Commission Reference Section, 100 F Street NE.,
addresses industry topics that establish may designate a shorter time if such Washington, DC 20549–1090. Copies of
the foundation for the regulatory and action is consistent with the protection the filing will also be available for
procedural knowledge necessary for of investors and the public interest. inspection and copying at the NYSE’s
such individuals to appropriately At any time within 60 days of the principal office and on its Internet Web
register under Exchange rules. In filing of such proposed rule change, the site at www.nyse.com. All comments
addition, the Series 57 Examination is Commission summarily may received will be posted without change;
expected to be shared by other temporarily suspend such rule change if the Commission does not edit personal
exchanges and become the industry it appears to the Commission that such identifying information from
standard.14 Accordingly, adopting the action is necessary or appropriate in the submissions. You should submit only
Series 57 Examination will help to public interest, for the protection of information that you wish to make
promote consistency in examination investors, or otherwise in furtherance of available publicly. All submissions
requirements and uniformity across the purposes of the Act. If the should refer to File Number SR–
markets. Commission takes such action, the NYSEMKT–2015–99 and should be
Commission shall institute proceedings submitted on or before January 4, 2016.
B. Self-Regulatory Organization’s under Section 19(b)(2)(B) 19 of the Act to
Statement on Burden on Competition For the Commission, by the Division of
determine whether the proposed rule Trading and Markets, pursuant to delegated
The Exchange does not believe that change should be approved or authority.20
the proposed rule change will impose disapproved.
Robert W. Errett,
any burden on competition not
necessary or appropriate in furtherance IV. Solicitation of Comments Deputy Secretary.
of the purposes of the Act. The Interested persons are invited to [FR Doc. 2015–31279 Filed 12–10–15; 8:45 am]
proposed rule change does not impose submit written data, views, and BILLING CODE 8011–01–P
any additional examination burdens on arguments concerning the foregoing,
persons who are already registered. including whether the proposed rule
There is no obligation to take the Series change is consistent with the Act. SECURITIES AND EXCHANGE
57 examination in order to continue in Comments may be submitted by any of COMMISSION
their present duties, so the proposed the following methods:
rule change is not expected to Electronic Comments [Release No. 34–76575; File No. SR–CBOE–
disadvantage current registered persons 2015–101]
relative to new entrants in this regard. • Use the Commission’s Internet
comment form (http://www.sec.gov/ Self-Regulatory Organizations;
C. Self-Regulatory Organization’s rules/sro.shtml); or Chicago Board Options Exchange,
Statement on Comments on the • Send an email to rule-comments@ Incorporated; Notice of Withdrawal of
Proposed Rule Change Received From sec.gov. Please include File Number SR– Proposed Rule Change To Amend the
Members, Participants, or Others NYSEMKT–2015–99 on the subject line. Fees Schedule
No written comments were solicited Paper Comments December 7, 2015.
or received with respect to the proposed
rule change. • Send paper comments in triplicate On November 2, 2015, the Chicago
to Brent J. Fields, Secretary, Securities Board Options Exchange, Incorporated
III. Date of Effectiveness of the and Exchange Commission, 100 F Street (‘‘Exchange’’) filed with the Securities
Proposed Rule Change and Timing for NE., Washington, DC 20549–1090. and Exchange Commission
Commission Action All submissions should refer to File (‘‘Commission’’), pursuant to Section
The Exchange has filed the proposed Number SR–NYSEMKT–2015–99. This 19(b)(1) of the Securities Exchange Act
rule change pursuant to Section file number should be included on the of 1934 1 and Rule 19b–4 thereunder,2 a
19(b)(3)(A)(iii) of the Act 15 and Rule subject line if email is used. To help the proposed rule change to amend the
19b–4(f)(6) thereunder.16 Because the Commission process and review your Exchange’s fees schedule. The proposed
proposed rule change does not: (i) comments more efficiently, please use rule change was published for comment
Significantly affect the protection of only one method. The Commission will in the Federal Register on November 25,
investors or the public interest; (ii) post all comments on the Commission’s 2015.3 The Commission received no
jstallworth on DSK7TPTVN1PROD with NOTICES

impose any significant burden on Internet Web site (http://www.sec.gov/ comment letters on the proposal. On
competition; and (iii) become operative rules/sro.shtml). Copies of the December 1, 2015, the Exchange
prior to 30 days from the date on which submission, all subsequent
it was filed, or such shorter time as the amendments, all written statements 20 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
14 See supra, note 7. 17 17 CFR 240.19b–4(f)(6). 2 17 CFR 240.19b–4
15 15 U.S.C. 78s(b)(3)(A)(iii). 18 17 CFR 240.19b–4(f)(6)(iii). 3 See Securities Exchange Act Release No. 34–
16 17 CFR 240.19b–4(f)(6). 19 15 U.S.C. 78s(b)(2)(B). 76442 (November 16, 2015), 80 FR 72761.

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77038 Federal Register / Vol. 80, No. 238 / Friday, December 11, 2015 / Notices

withdrew the proposed rule change II. Self-Regulatory Organization’s order is equal to or greater than the
(SR–CBOE–2015–101). Statement of the Purpose of, and consolidated last sale price of the
For the Commission, by the Division of Statutory Basis for, the Proposed Rule underlying security, with respect to
Trading and Markets, pursuant to delegated Change equity and exchange-traded fund
authority.4 In its filing with the Commission, the (‘‘ETF’’) options, or the last
Brent J. Fields, Exchange included statements disseminated underlying index value,
Secretary. concerning the purpose of and basis for with respect to index options.7
the proposed rule change and discussed With respect to put options, a Trading
[FR Doc. 2015–31179 Filed 12–10–15; 8:45 am]
any comments it received on the Permit Holder seeks to buy an option
BILLING CODE 8011–01–P
proposed rule change. The text of these that could be exercised into the right to
statements may be examined at the sell the underlying. The value of a put
places specified in Item IV below. The can never exceed the strike price of the
SECURITIES AND EXCHANGE
Exchange has prepared summaries, set option, even if the underlying goes to
COMMISSION
forth in sections A, B, and C below, of zero. For example, one put for stock
[Release No. 34–76585; File No. SR–CBOE– the most significant aspects of such ABC with a strike price of $50 gives the
2015–107] statements. holder the right to sell 100 shares of
ABC for $50, no more or less. Therefore,
Self-Regulatory Organizations; A. Self-Regulatory Organization’s it would be illogical to pay more than
Chicago Board Options Exchange, Statement of the Purpose of, and $50 for the right to sell shares of ABC,
Incorporated; Notice of Filing of a Statutory Basis for, the Proposed Rule regardless of the price of ABC. Pursuant
Proposed Rule Change, as Modified by Change to proposed Rule 6.14(a)(i)(A), the
Amendment No. 1 Thereto, Relating to Exchange would deem any put bid or
1. Purpose
Price Protection Mechanisms buyer order with a price that equals or
The Exchange has in place various exceeds the strike price of the option to
December 8, 2015. price check mechanisms that are be erroneous, and the Exchange believes
Pursuant to Section 19(b)(1) of the designed to prevent incoming orders it would be appropriate to reject these
Securities Exchange Act of 1934 (the from automatically executing at bids and buy orders.
‘‘Act’’),1 and Rule 19b–4 thereunder,2 potentially erroneous prices.4 These With respect to call options, a Trading
notice is hereby given that on November mechanisms are designed to help Permit Holder seeks to buy an option
24, 2015, Chicago Board Options maintain a fair and orderly market by that could be exercised into the right to
Exchange, Incorporated (the ‘‘Exchange’’ mitigating potential risks associated buy the underlying. The Exchange does
or ‘‘CBOE’’) filed with the Securities with orders trading at prices that are not believe that a derivative product
and Exchange Commission (the extreme and potentially erroneous. The that conveys the right to buy the
‘‘Commission’’) the proposed rule Exchange proposes to adopt Rule 6.14, underlying should ever be priced higher
change as described in Items I, II and III which was previously deleted, and than the prevailing value of the
below, which Items have been prepared amend Rule 6.53C, Interpretation and underlying itself. In that case, a market
by the Exchange. On December 4, 2015, Policy .08, to add new, as well as participant could just purchase the
the Exchange filed Amendment No. 1 to enhance current, price protection underlying at the prevailing value rather
the proposal.3 The Commission is mechanisms for orders and quotes to than pay a larger amount for the call.
publishing this notice to solicit help further prevent potentially Accordingly, pursuant to proposed Rule
comments on the proposed rule change, erroneous executions. 6.14(a)(i)(B), the Exchange believes it is
as modified by Amendment No. 1, from Put Strike Price and Call Underlying appropriate to reject bids or buy orders
interested persons. Value Checks for call options with prices that are
I. Self-Regulatory Organization’s equal to or in excess of the value of the
Proposed Rule 6.14(a) provides price underlying. As an example, suppose a
Statement of the Terms of Substance of protections for simple orders to buy put
the Proposed Rule Change Trading Permit Holder submits Order 1
and call options based on the strike to buy an ABC call for $8 and Order 2
The Exchange proposes to enhance price or underlying value, respectively. to buy an ABC call for $11 when the last
current and adopt new price protection The proposed rule provides that the sale price for stock ABC is $10. Because
mechanisms for orders and quotes. System 5 will reject back to the Trading the price to buy for Order 2 is greater
The text of the proposed rule change Permit Holder a quote 6 or buy limit than the last sale price of the
is available on the Exchange’s Web site order for (i) a put if the price of the underlying, the System will reject Order
(http://www.cboe.com/AboutCBOE/ quote bid or order is equal to or greater 2. The System will either execute or
CBOELegalRegulatoryHome.aspx), at than the strike price of the option or (ii) book Order 1 in accordance with
the Exchange’s Office of the Secretary, a call if the price of the quote bid or CBOE’s rules.
and at the Commission’s Public Pursuant to the proposed rule, with
4 See, e.g., Rules 6.12(a)(3) and (4) (limit order
Reference Room. respect to equity and ETF options, the
price parameters), 6.13(b)(v) (market-width and
drill-through price check parameters), 6.53C,
Exchange would use the consolidated
4 17 CFR 200.30–3(a)(12). Interpretation and Policy .08 (price check last sale price of the underlying
1 15 U.S.C. 78s(b)(1). parameters for complex orders), and 8.18 (quote risk security, with respect to equity and ETF
2 17 CFR 240.19b–4. monitor).
3 In Amendment No. 1, the Exchange proposed 5 The ‘‘System’’ refers to the Exchange’s Hybrid
jstallworth on DSK7TPTVN1PROD with NOTICES

7 These price checks would also apply to buy
changes to amend the proposed rule text of Rule Trading System, which is (i) the Exchange’s trading auction responses submitted in the various
6.53C, Interpretation and Policy .08(c) in Exhibit 5 platform that allows Market-Makers to submit Exchange auctions, such as the Hybrid Agency
and the purpose and statutory basis sections of each electronic quotes in their appointed classes and (ii) Liaison (‘‘HAL’’) and the Automated Improvement
of the Form 19b–4 and Exhibit 1 regarding the any connectivity to the foregoing trading platform Mechanism (‘‘AIM’’). See proposed Rule 6.14(a)(iii).
applicability of the proposed enhancement to the that is administered by or on behalf of the The Exchange believes responses can cause
debit/credit price reasonability check to index Exchange, such as a communications hub. See Rule erroneous executions in the same manner as quotes
options with European-style exercises. The 1.1(aaa). and orders and thus should be subject to this
Exchange also amended Item 7(d) of the Form 19b– 6 The term quote includes both sides of a quote proposed price protection to further help prevent
4 to delete redundant language. that is entered as a two-sided quote. potentially erroneous executions.

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Document Created: 2018-03-02 09:12:50
Document Modified: 2018-03-02 09:12:50

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 77037