80 FR 77058 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Exchange Rules To Establish the Securities Trader and Securities Trader Principal Registration Categories
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 238 (December 11, 2015)
Federal Register Volume 80, Issue 238 (December 11, 2015)
| Page Range | 77058-77061 | |
| FR Document | 2015-31278 |
[Federal Register Volume 80, Number 238 (Friday, December 11, 2015)] [Notices] [Pages 77058-77061] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-31278] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76579; File No. SR-NYSEMKT-2015-100] Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Exchange Rules To Establish the Securities Trader and Securities Trader Principal Registration Categories December 8, 2015. Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that on November 24, 2015, NYSE MKT LLC (the ``Exchange'' or ``NYSE MKT'') 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 self-regulatory organization. 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\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Exchange Rules to (1) prescribe the Securities Traders examination (Series 57) (the ``Series 57 Examination'') as the qualifying examination for registered Market Makers, Market Maker Authorized Traders (``MMATs''), and Floor Brokers, (2) eliminate reference to the S501 Program as a continuing education requirement, and (3) rename the category ``Proprietary Trader'' as ``Securities Trader'' in Exchange rules without making any substantive change to the definition of such term. The proposed rule change is available on the Exchange's Web site at www.nyse.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. [[Page 77059]] 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 self-regulatory organization 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 those 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 parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend Exchange Rules 921NY, 921.1NY and 931NY to prescribe the Series 57 Examination as the qualifying examination for registered Market Makers, MMATs, and Floor Brokers. Exchange Rule 921NY currently specifies that an applicant must pass an examination prescribed by the Exchange in order to register as a Market Maker. Exchange Rule 921.1NY currently specifies that an applicant must pass an examination prescribed by the Exchange in order to register as a MMAT. And Exchange Rule 931NY currently specifies that an applicant must pass an examination prescribed by the Exchange in order to register as a Floor Broker. For purposes of these rules, NYSE Amex Options has currently prescribed the successful completion of the Proprietary Trader Qualification Examination (``Series 56 Examination'') as the qualifying exam for Market Makers, MMATs and Floor Brokers. In addition, individuals currently engaged solely in proprietary trading, who are not registered as Market Makers, MMATs or Floor Brokers, may qualify for registration by successful completion of the Series 56 Examination or the General Securities Representative Qualification Examination (``Series 7 Examination''). The Exchange proposes to change the prescribed examination for Market Makers, MMATs and Floor Brokers from the Series 56 Examination to the Series 57 Examination. With this proposed rule change, Market Makers, MMATs, Floor Brokers and individuals engaged solely in proprietary trading will qualify for registration by passing the Series 57 Examination.\4\ --------------------------------------------------------------------------- \4\ Currently, individuals engaged solely in proprietary trading can alternatively take the Series 7 Examination as a qualifying exam. After implementation of the Series 57 Examination, an individual engaged solely in proprietary trading will be required to take the Series 57 Examination as the Series 7 Examination would no longer serve as a qualifying exam to engage solely in proprietary trading. --------------------------------------------------------------------------- The Series 57 Examination is being developed by the Financial Industry Regulatory Authority, Inc. (``FINRA'') in consultation with industry and exchange representatives. The Series 57 examination will be based on the current job functions of securities traders and will include elements of the Series 55 Equity Trader Qualification Examination (which is required to engage in over-the-counter securities trading) and the current Series 56 Registered Proprietary Traders Examination (which is required for associated persons engaged in securities trading).\5\ The Series 57 Examination will be based on industry rules applicable to trading of equity securities and listed options contracts. The Series 57 examination will cover, among other things, recordkeeping and recording requirements; types and characteristics of securities and investments; trading practices; and display, execution, and trading systems.\6\ As such, the Exchange believes that an applicant who has passed the Series 57 Examination is shown to be qualified to act in the capacity of a Market Maker, Floor Broker, MMAT or engage solely in proprietary trading on NYSE Amex Options. --------------------------------------------------------------------------- \5\ While the Series 56 Examination is required for associated persons engaged in proprietary trading, Exchange rules do not require such individuals to work at a proprietary trading firm only. These individuals can work at any type of firm. However, they may only engage in proprietary trading at the firm where they are employed. For example, an individual engaged in proprietary trading at a full service firm, who is registered solely to engage in proprietary trading, may not act as a registered representative for that firm. \6\ See Securities Exchange Act Release No. 75783 (August 28, 2015), 80 FR 53369 (September 3, 2015) (SR-FINRA-2015-017) (Order Approving a Proposed Rule Change to Establish the Securities Trader and Securities Trader Principal Registration Categories). --------------------------------------------------------------------------- While NYSE Amex Options will no longer be offering the Series 56 Examination as a qualifying exam to new applicants, the Exchange will continue to recognize individuals who have passed that exam as having successfully completed a qualifying exam. Individuals who have taken the Series 56 Examination and have registered in Web CRD \7\ as proprietary traders will have their registration converted in Web CRD on January 4, 2016 to a securities trader. Additionally, individuals currently engaged solely in proprietary trading, who currently qualify for registration by passing the Series 7 Examination and have registered in Web CRD as Proprietary Traders will have their registration converted in Web CRD on January 4, 2016 to a Securities Trader without having to take any additional examinations and without having to take any other actions. Individuals presently registered as Market Makers, MMATs, Floor Brokers or those that engage solely in proprietary trading on NYSE Amex Options, who have previously passed a qualifying exam will not be required to take the Series 57 Examination as a condition of their continued registration. However, the registration of individuals who have taken the Series 56 Examination will not be converted to a Securities Trader if they have not registered as a Proprietary Trader in Web CRD by December 28, 2015. After that date, these individuals will be required to take the Series 57 Examination in order to register as securities traders. In addition, individuals registered as proprietary traders in Web CRD prior to the effective date of the proposed rule change will be eligible to register as securities traders without having to take any additional examinations, provided that no more than two years have passed between the date the individual last registered as a proprietary trader and the date the individual registers as a securities trader.\8\ --------------------------------------------------------------------------- \7\ Web CRD is the central licensing and registration system for the U.S. securities industry and its regulators. \8\ See Rule 341A, Commentary .03. --------------------------------------------------------------------------- The Exchange also proposes to amend Exchange Rules 341 and 341A. Under the proposed rule change, the Exchange would rename the category ``Proprietary Trader'' as ``Securities Trader'' in Rule 341 without making any substantive change to the definition of such term. A Securities Trader, similar to what is currently required for a Proprietary Trader, would be required to register as such on Web CRD and pass the Series 57 Examination described above, but would not be permitted to function in an agency capacity or otherwise conduct a public business in securities. Additionally, Rule 341 requires that an individual associated with an Exchange member with supervisory responsibility over proprietary trading activities qualify and register as a Proprietary Trader Principal. Under the proposed rule change, the Exchange would replace references in Rule 341 to Proprietary Trader Principal with Securities Trader Principal. [[Page 77060]] Further, registered persons are required under Rule 341A to comply with the Exchange's continuing education requirements. Specifically, under Rule 341A(a)(1), individuals engaged solely in proprietary trading are required to complete the S501 Program to fulfill the Regulatory Element of their continuing education requirement. With the transition to the Series 57 Examination, the S501 Program will no longer be required; such individuals will instead be required to complete the S101 Program to fulfill the Regulatory Element of their continuing education requirement. The Exchange notes that in order to qualify as a Proprietary Trader Principal, an associated person currently must pass the Series 56 Examination or the Series 7 Examination, and the Series 24 Examination. Once the Exchange has adopted the Series 57 Examination as the qualifying exam for a Securities Trader, associated persons would need to pass the Series 57 Examination and the Series 24 Examination in order to register as a Securities Trader Principal. Only those individuals who are registered as such would be qualified to supervise a Securities Trader. Individuals registered as a General Securities Principal would not be qualified to supervise a Securities Trader, nor would a Securities Trader Principal be able to act as a General Securities Principal, unless the individual is registered as a Securities Trader Principal and a General Securities Principal. Within 30 days of filing the proposed rule change, the Exchange will issue a Regulatory Bulletin announcing the operative date of the rule change, which will not be sooner than January 4, 2016. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Securities Exchange Act of 1934 (``Act''),\9\ in general, and furthers the objectives of Section 6(c)(3)(B) \10\ of the Act, pursuant to which a national securities exchange prescribes standards of training, experience and competence for members and their associated persons, and Section 6(b)(5) \11\ of the Act, in particular, in that it is designed, among other things, to promote just and equitable principles of trade, 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. The Exchange believes that prescribing the Series 57 Examination for Market Makers, MMATs, Floor Brokers and for individuals engaged solely in proprietary trading is appropriate because the Series 57 Examination addresses industry topics that establish the foundation for the regulatory and procedural knowledge necessary for such individuals to appropriately register under Exchange rules. In addition, the Series 57 Examination is expected to be shared by other exchanges and become the industry standard.\12\ Accordingly, adopting the Series 57 Examination will help to promote consistency in examination requirements and uniformity across markets. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78f(b). \10\ 15 U.S.C. 78f(c)(3)(B). \11\ 15 U.S.C. 78f(b)(5). \12\ See supra, note 6. --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change does not impose any additional examination burdens on persons who are already registered. There is no obligation to take the Series 57 examination in order to continue in their present duties, so the proposed rule change is not expected to disadvantage current registered persons relative to new entrants in this regard. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \13\ and Rule 19b-4(f)(6) thereunder.\14\ Because the proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative prior to 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b- 4(f)(6)(iii) thereunder. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78s(b)(3)(A)(iii). \14\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \15\ normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),\16\ the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. --------------------------------------------------------------------------- \15\ 17 CFR 240.19b-4(f)(6). \16\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- At any time within 60 days of the filing of such 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 shall institute proceedings under Section 19(b)(2)(B) \17\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \17\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- 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 rule-comments@sec.gov. Please include File Number SR-NYSEMKT-2015-100 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NYSEMKT-2015-100. 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 [[Page 77061]] 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 Section, 100 F Street NE., Washington, DC 20549-1090. Copies of the filing will also be available for inspection and copying at the NYSE's principal office and on its Internet Web site at www.nyse.com. 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-NYSEMKT-2015- 100 and should be submitted on or before January 4, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\18\ --------------------------------------------------------------------------- \18\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-31278 Filed 12-10-15; 8:45 am] BILLING CODE 8011-01-P
![77058 Federal Register / Vol. 80, No. 238 / Friday, December 11, 2015 / Notices
B. Self-Regulatory Organization’s within 60 days of the filing of the NASDAQ–2015–147, and should be
Statement on Burden on Competition proposed rule change, the Commission submitted on or before January 4, 2016.
Nasdaq does not believe that the summarily may temporarily suspend For the Commission, by the Division of
proposed rule change will result in a such rule change if it appears to the Trading and Markets, pursuant to delegated
burden on competition that is not Commission that such action is authority.14
necessary or appropriate in furtherance necessary or appropriate in the public Robert W. Errett,
of the purposes of the Act, as interest, for the protection of investors, Deputy Secretary.
amended.12 In terms of inter-market or otherwise in furtherance of the
[FR Doc. 2015–31282 Filed 12–10–15; 8:45 am]
competition, the Exchange notes that it purposes of the Act.
BILLING CODE 8011–01–P
operates in a highly competitive market IV. Solicitation of Comments
in which market participants can
Interested persons are invited to
readily favor competing venues if they SECURITIES AND EXCHANGE
submit written data, views, and
deem fee levels at a particular venue to COMMISSION
arguments concerning the foregoing,
be excessive, or credit opportunities
including whether the proposed rule
available at other venues to be more [Release No. 34–76579; File No. SR–
change is consistent with the Act. NYSEMKT–2015–100]
favorable. In such an environment, the
Comments may be submitted by any of
Exchange must continually adjust its
the following methods: Self-Regulatory Organizations; NYSE
fees and credits to remain competitive
with other exchanges and with Electronic Comments MKT LLC; Notice of Filing and
alternative trading systems that have Immediate Effectiveness of Proposed
• Use the Commission’s Internet Rule Change Amending Exchange
been exempted from compliance with comment form (http://www.sec.gov/
the statutory standards applicable to Rules To Establish the Securities
rules/sro.shtml); or Trader and Securities Trader Principal
exchanges. Because competitors are free • Send an email to rule-comments@
to modify their own fees and credits in Registration Categories
sec.gov. Please include File Number SR–
response, and because market NASDAQ–2015–147 on the subject line. December 8, 2015.
participants may readily adjust their Pursuant to Section 19(b)(1) 1 of the
order routing practices, the Exchange Paper Comments
Securities Exchange Act of 1934 (the
believes that the degree to which fee • Send paper comments in triplicate ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
changes in this market may impose any to Secretary, Securities and Exchange notice is hereby given that on November
burden on competition is extremely Commission, 100 F Street NE., 24, 2015, NYSE MKT LLC (the
limited. Washington, DC 20549–1090. ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with
In this instance, the proposed change All submissions should refer to File
to the credits provided for all three the Securities and Exchange
Number SR–NASDAQ–2015–147. This Commission (the ‘‘Commission’’) the
Tapes to member firms for displayed file number should be included on the
quotes/orders (other than supplemental proposed rule change as described in
subject line if email is used. To help the Items I, II, and III below, which Items
orders or designated retail orders) that Commission process and review your
provide liquidity, does not impose a have been prepared by the self-
comments more efficiently, please use regulatory organization. The
burden on competition because the only one method. The Commission will
Exchange’s execution services are Commission is publishing this notice to
post all comments on the Commission’s solicit comments on the proposed rule
voluntary and subject to extensive Internet Web site (http://www.sec.gov/
competition both from other exchanges change from interested persons.
rules/sro.shtml). Copies of the
and from off-exchange venues. In sum, submission, all subsequent I. Self-Regulatory Organization’s
if the change proposed herein is amendments, all written statements Statement of the Terms of Substance of
unattractive to market participants, it is with respect to the proposed rule the Proposed Rule Change
likely that the Exchange will lose change that are filed with the
market share as a result. Accordingly, The Exchange proposes to amend
Commission, and all written Exchange Rules to (1) prescribe the
the Exchange does not believe that the communications relating to the
proposed change will impair the ability Securities Traders examination (Series
proposed rule change between the 57) (the ‘‘Series 57 Examination’’) as the
of members or competing order Commission and any person, other than
execution venues to maintain their qualifying examination for registered
those that may be withheld from the Market Makers, Market Maker
competitive standing in the financial public in accordance with the
markets. Authorized Traders (‘‘MMATs’’), and
provisions of 5 U.S.C. 552, will be Floor Brokers, (2) eliminate reference to
C. Self-Regulatory Organization’s available for Web site viewing and the S501 Program as a continuing
Statement on Comments on the printing in the Commission’s Public education requirement, and (3) rename
Proposed Rule Change Received From Reference Room, 100 F Street NE., the category ‘‘Proprietary Trader’’ as
Members, Participants, or Others Washington, DC 20549 on official ‘‘Securities Trader’’ in Exchange rules
Written comments were neither business days between the hours of without making any substantive change
solicited nor received. 10:00 a.m. and 3:00 p.m. Copies of such to the definition of such term. The
filing also will be available for proposed rule change is available on the
III. Date of Effectiveness of the inspection and copying at the principal Exchange’s Web site at www.nyse.com,
Proposed Rule Change and Timing for office of the Exchange. All comments
jstallworth on DSK7TPTVN1PROD with NOTICES
at the principal office of the Exchange,
Commission Action received will be posted without change; and at the Commission’s Public
The foregoing change has become the Commission does not edit personal Reference Room.
effective pursuant to Section identifying information from
19(b)(3)(A)(ii) of the Act.13 At any time submissions. You should submit only 14 17 CFR 200.30–3(a)(12).
information that you wish to make 1 15 U.S.C. 78s(b)(1).
12 15 U.S.C. 78f(b)(8). available publicly. All submissions 2 15 U.S.C. 78a.
13 15 U.S.C. 78s(b)(3)(A)(ii). should refer to File Number SR– 3 17 CFR 240.19b–4.
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![Federal Register / Vol. 80, No. 238 / Friday, December 11, 2015 / Notices 77061
communications relating to the place at a price that is below $1 per transactions to take place in open outcry
proposed rule change between the option contract through January 5, 2017. at a price of at least $0 but less than $1
Commission and any person, other than The text of the proposed rule change is per option contract.3 These lower priced
those that may be withheld from the available on the Exchange’s Web site transactions are traded pursuant to the
public in accordance with the (http://www.cboe.com/AboutCBOE/ same procedures applicable to $1
provisions of 5 U.S.C. 552, will be CBOELegalRegulatoryHome.aspx), at cabinet trades, except that (i) bids and
available for Web site viewing and the Exchange’s Office of the Secretary, offers for opening transactions are only
printing in the Commission’s Public and at the Commission’s Public permitted to accommodate closing
Reference Section, 100 F Street NE., Reference Room. transactions in order to limit use of the
Washington, DC 20549–1090. Copies of procedure to liquidations of existing
the filing will also be available for II. Self-Regulatory Organization’s positions, and (ii) the procedures are
inspection and copying at the NYSE’s Statement of the Purpose of, and also available for trading in option
principal office and on its Internet Web Statutory Basis for, the Proposed Rule classes participating in the Penny Pilot
site at www.nyse.com. All comments Change Program.4 The Exchange believes that
received will be posted without change; In its filing with the Commission, the allowing a price of at least $0 but less
the Commission does not edit personal Exchange included statements than $1 better accommodates the closing
identifying information from concerning the purpose of and basis for of options positions in series that are
submissions. You should submit only the proposed rule change and discussed worthless or not actively traded,
information that you wish to make any comments it received on the particularly due to market conditions
available publicly. All submissions proposed rule change. The text of these which may result in a significant
should refer to File Number SR– statements may be examined at the number of series being out-of-the-
NYSEMKT–2015–100 and should be places specified in Item IV below. The money. For example, a market
submitted on or before January 4, 2016. Exchange has prepared summaries, set participant might have a long position
For the Commission, by the Division of forth in sections A, B, and C below, of in a call series with a strike price of
Trading and Markets, pursuant to delegated the most significant aspects of such $100 and the underlying stock might
authority.18 statements. now be trading at $30. In such an
Robert W. Errett, instance, there might not otherwise be a
A. Self-Regulatory Organization’s market for that person to close-out the
Deputy Secretary. Statement of the Purpose of, and
[FR Doc. 2015–31278 Filed 12–10–15; 8:45 am]
position even at the $1 cabinet price
Statutory Basis for, the Proposed Rule
BILLING CODE 8011–01–P Change 3 See Securities Exchange Act Release Nos. 59188
(December 30, 2008), 74 FR 480 (January 6, 2009)
1. Purpose (SR–CBOE–2008–133) (adopting the amended
SECURITIES AND EXCHANGE An ‘‘accommodation’’ or ‘‘cabinet’’ procedures on a temporary basis through January
COMMISSION 30, 2009), 59331 (January 30, 2009), 74 FR 6333
trade refers to trades in listed options on (February 6, 2009) (extending the amended
[Release No. 34–76566; File No. SR–CBOE– the Exchange that are worthless or not procedures on a temporary basis through May 29,
2015–108] actively traded. Cabinet trading is 2009), 60020 (June 1, 2009), 74 FR 27220 (June 8,
generally conducted in accordance with 2009) (SR–CBOE–2009–034) (extending the
Self-Regulatory Organizations; amended procedures on a temporary basis through
the Exchange Rules, except as provided June 1, 2010), 62192 (May 28, 2010), 75 FR 31828
Chicago Board Options Exchange, in Exchange Rule 6.54, Accommodation (June 4, 2010) (SR–CBOE–2010–052) (extending the
Incorporated; Notice of Filing and Liquidations (Cabinet Trades), which amended procedures on a temporary basis through
Immediate Effectiveness of a Proposed sets forth specific procedures for June 1, 2011); 64403 (May 4, 2011), 76 FR 27110
Rule Change To Amend Rule 6.54 (May 10, 2011) (SR–CBOE–2011–048) (extending
engaging in cabinet trades. Rule 6.54 the amended procedures on a temporary basis
December 7, 2015.
currently provides for cabinet through December 30, 2011); 65872 (December 2,
Pursuant to Section 19(b)(1) of the transactions to occur via open outcry at 2011), 76 FR 76788 (December 8, 2011) (SR–CBOE–
a cabinet price of $1 per option contract 2011–113) (extending the amended procedures on
Securities Exchange Act of 1934 (the a temporary basis through June 29, 2012) 67144
‘‘Act’’),1 and Rule 19b–4 thereunder,2 in any options series open for trading in (June 6, 2012), 77 FR 35095 (June 12, 2012) (SR–
notice is hereby given that on November the Exchange, except that the Rule is not CBOE–2012–053) (extending the amended
23, 2015, Chicago Board Options applicable to trading in option classes procedures on a temporary basis through June 28,
participating in the Penny Pilot 2013), and 69854 (June 25, 2013), 78 FR 39424 (July
Exchange, Incorporated (the ‘‘Exchange’’ 1, 2013) (SR–CBOE–2013–063); 69893 (June 28,
or ‘‘CBOE’’) filed with the Securities Program. Under the procedures, bids 2013), 78 FR 40539 (July 5, 2013) (both extending
and Exchange Commission (the and offers (whether opening or closing the amended procedures on a temporary basis
‘‘Commission’’) the proposed rule a position) at a price of $1 per option through January 5, 2014) and 71090 (December 17,
contract may be represented in the 2013), 78 FR 77532 (December 23, 2013) (SR–
change as described in Items I and II CBOE–2013–118) (extending the amended
below, which Items have been prepared trading crowd by a Floor Broker or by procedures on a temporary basis through January 5,
by the Exchange. The Commission is a Market-Maker or provided in response 2015), and 73974 (December 31, 2014), 80 FR 911
publishing this notice to solicit to a request by a PAR Official/OBO, a (January 7, 2015) (SR–CBOE–2014–093) (extending
Floor Broker or a Market-Maker, but the amended procedures on a temporary basis
comments on the proposed rule change through January 5, 2016).
from interested persons. must yield priority to all resting orders 4 Currently the $1 cabinet trading procedures are
in the PAR Official/OBO cabinet book limited to options classes traded in $0.05 or $0.10
I. Self-Regulatory Organization’s (which resting cabinet book orders may standard increment. The $1 cabinet trading
Statement of the Terms of the Substance be closing only). So long as both the procedures are not available in Penny Pilot Program
jstallworth on DSK7TPTVN1PROD with NOTICES
of the Proposed Rule Change classes because in those classes an option series can
buyer and the seller yield to orders trade in a standard increment as low as $0.01 per
The Exchange proposes to extend its resting in the cabinet book, opening share (or $1.00 per option contract with a 100 share
program that allows transactions to take cabinet bids can trade with opening multiplier). Because the temporary procedures
cabinet offers at $1 per option contract. allow trading below $0.01 per share (or $1.00 per
option contract with a 100 share multiplier), the
18 17 CFR 200.30–3(a)(12). The Exchange has temporarily procedures are available for all classes, including
1 15 U.S.C. 78s(b)(1). amended the procedures through those classes participating in the Penny Pilot
2 17 CFR 240.19b–4. January 5, 2015 [sic] to allow Program.
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Document Created: 2018-03-02 09:12:44
Document Modified: 2018-03-02 09:12:44
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 80 FR 77058 |
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