80 FR 78794 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Granting Approval of a Proposed Rule Change, as Modified by Amendment No. 1, To List and Trade Options That Overlie a Reduced Value of the FTSE 100 Index
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 242 (December 17, 2015)
Federal Register Volume 80, Issue 242 (December 17, 2015)
| Page Range | 78794-78797 | |
| FR Document | 2015-31685 |
[Federal Register Volume 80, Number 242 (Thursday, December 17, 2015)] [Notices] [Pages 78794-78797] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-31685] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76626; File No. SR-CBOE-2015-100] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Granting Approval of a Proposed Rule Change, as Modified by Amendment No. 1, To List and Trade Options That Overlie a Reduced Value of the FTSE 100 Index December 11, 2015. I. Introduction On October 30, 2015, the Chicago Board Options Exchange, Incorporated (``Exchange'' or ``CBOE'') filed with the Securities and Exchange Commission (``Commission''), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to list and trade options that overlie a reduced value of the FTSE 100 Index. The proposed rule change was published for comment in the Federal Register on November 10, 2015.\3\ On December 10, 2015, the Exchange filed Amendment No. 1 to the proposed rule change.\4\ This order grants approval of [[Page 78795]] the proposed rule change, as modified by Amendment No. 1. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ See Securities Exchange Act Release No. 76353 (November 4, 2015), 80 FR 69751 (``Notice''). \4\ Amendment No. 1 makes certain technical modifications to Exhibit 5 to reflect the current CBOE rulebook and to remove a reference to ``(1/10th)'' that was inadvertently included. It also revises rule text to make additional technical edits. As the changes made by Amendment No. 1 are technical in nature and do not materially alter the substance of the proposed rule change or raise any novel regulatory issues, Amendment No. 1 is not subject to notice and comment. --------------------------------------------------------------------------- II. Description of the Proposed Rule Change The Exchange proposes to list and trade A.M. cash-settled, European-style options on the FTSE 100 Index.\5\ According to the Exchange, the FTSE 100 Index is a free float-adjusted market capitalization index that is designed to measure the performance of the 100 largest companies traded on the London Stock Exchange and valued in the British pound (``GBP'').\6\ The Exchange states that the index is monitored and maintained by FTSE International Limited (``FTSE'').\7\ Adjustments to the index could be made on a daily basis with respect to corporate events and dividends, and FTSE reviews the index quarterly. --------------------------------------------------------------------------- \5\ The Exchange proposes to list up to twelve near-term expiration months at any one time for the FTSE 100 Index options. The Exchange also proposes to list up to ten expirations in Long- Term Index Option Series (LEAPS) on the reduced value of the FTSE 100 Index Options. The Exchange proposes that options on the FTSE 100 Index would be eligible for all other expirations permitted for other broad-based indexes (e.g., End of Week/End of Month Expirations, Short Term Option Series, and Quarterly Options Series). In addition, the Exchange proposes to designate the FTSE 100 Index as eligible for trading as FLEX options. \6\ The Exchange states that the FTSE 100 Index meets the definition of a broad-based index as set forth in Exchange Rule 24.1(i)(1). \7\ The Exchange proposes to designate FTSE as the reporting authority for the FTSE 100 Index. --------------------------------------------------------------------------- According to the Exchange, the FTSE 100 Index is calculated and published in GBP on a real-time basis during United Kingdom and United States trading hours.\8\ The methodology used to calculate the FTSE 100 Index is similar to the methodology used to calculate the value of other benchmark market-capitalization weighted indexes.\9\ Real-time data is distributed at least every 15 seconds while the index is being calculated using FTSE's real-time calculation engine to Bloomberg L.P. (``Bloomberg''), Thomson Reuters (``Reuters'') and other major vendors. End of day data is distributed daily to clients through FTSE as well as through major quotation vendors, including Bloomberg and Reuters. --------------------------------------------------------------------------- \8\ The Exchange states that from 2:00-10:30 a.m. (Chicago time) the real-time index is calculated using real time prices of the securities. At 10:30 a.m. (Chicago time) the real time index closes using the closing prices from the London Stock Exchange. Thus, between 10:30 a.m. and 3:15 p.m. (Chicago time) the FTSE 100 Index level is a static value that market participants can access via data vendors. \9\ Specifically, the FTSE 100 Index is governed by the Ground Rules for the FTSE UK Index Series. The level of the FTSE 100 Index reflects the free float-adjusted market value of the component stocks relative to a particular base date and is computed by dividing the total market value of the companies in the FTSE 100 Index by the index divisor. Further detail regarding this methodology can be found in the Notice, supra note 3, at n.5 and accompanying text. --------------------------------------------------------------------------- The Exchange proposes that trading hours for FTSE 100 Index options would be from 8:30 a.m. (Chicago time) to 3:15 p.m. (Chicago time). The Exchange proposes that FTSE 100 Index options would expire on the third Friday of the expiration month.\10\ The exercise settlement value would be one-tenth (1/10th) of the value of the FTSE 100 Index calculated via an intra-day auction on the London Stock Exchange that is held on the morning of the expiration date (generally a Friday). The exercise settlement amount would be equal to the difference between the exercise-settlement value and the exercise price of the option, multiplied by the contract multiplier ($100).\11\ Exercise would result in delivery of cash on the business day following expiration. --------------------------------------------------------------------------- \10\ According to the Exchange, when the last trading day/ expiration date is moved because of an Exchange holiday or closure, the last trading day/expiration date for expiring options would be the immediately preceding business day. \11\ According to the Exchange, if the exercise settlement value is not available or the normal settlement procedure cannot be utilized due to a trading disruption or other unusual circumstance, the settlement value would be determined in accordance with the rules and bylaws of The Options Clearing Corporation. --------------------------------------------------------------------------- The Exchange proposes to create specific initial and maintenance listing criteria for options on the FTSE 100 Index. Specifically, the Exchange proposes to add new Interpretation and Policy .02(a) to Rule 24.2 to provide that the Exchange may trade FTSE 100 Index options if each of the following conditions is satisfied: (1) The index is broad- based, as defined in Rule 24.1(i)(1); (2) options on the index are designated as A.M.-settled index options; (3) the index is capitalization-weighted, price-weighted, modified capitalization- weighted or equal dollar-weighted; (4) the index consists of 90 or more component securities; (5) each of the component securities of the index will have a market capitalization of greater than $100 million; (6) no single component security accounts for more than fifteen percent (15%) of the weight of the index, and the five highest weighted component securities in the index do not, in the aggregate, account for more than fifty percent (50%) of the weight of the index; (7) non-U.S. component securities (stocks or ADRs) that are not subject to comprehensive surveillance agreements do not, in the aggregate, represent more than twenty percent (20%) of the weight of the FTSE 100 Index; (8) during the time options on the index are traded on the Exchange, the current index value is widely disseminated at least once every fifteen (15) seconds by one or more major market data vendors; however, the Exchange may continue to trade FTSE 100 options after trading in all component securities has closed for the day and the index level is no longer widely disseminated at least once every fifteen (15) seconds by one or more major market data vendors, provided that FTSE 100 futures contracts are trading and prices for those contracts may be used as a proxy for the current index value; (9) the Exchange reasonably believes it has adequate system capacity to support the trading of options on the index, based on a calculation of the Exchange's current Independent System Capacity Advisor allocation and the number of new messages per second expected to be generated by options on such index; and (10) the Exchange has written surveillance procedures in place with respect to surveillance of trading of options on the index. Additionally, the Exchange proposes to add new Interpretation and Policy .02(b) to Rule 24.2 to set forth the following maintenance listing standards for options on the FTSE 100 Index: (1) The conditions set forth in subparagraphs .02(a) (1), (2), (3), (4), (7), (8), (9) and (10) must continue to be satisfied, the conditions set forth in subparagraphs .02(a)(5) and (6) must be satisfied only as of the first day of January and July in each year; and (2) the total number of component securities in the index may not increase or decrease by more than ten percent (10%) from the number of component securities in the index at the time of its initial listing. In the event a class of index options listed on the Exchange pursuant to Interpretation and Policy .02(b) fails to satisfy these maintenance listing standards, the Exchange shall not open for trading any additional series of options of that class unless the continued listing of that class of index options has been approved by the Commission under Section 19(b)(2) of the Act. The contract multiplier for the FTSE 100 Index options would be $100. The FTSE 100 Index options would be quoted in index points and one point would equal $100. The Exchange proposes that the minimum tick size for series trading below $3 would be 0.05 ($5.00), and at or above $3 would be 0.10 ($10.00). The Exchange also proposes that the strike price interval for FTSE 100 Index options would be no less than $5, except that the strike price interval would be no less than $2.50 if the strike price is less than $200. [[Page 78796]] The Exchange proposes to apply the default position limits for broad-based index options of 25,000 contracts on the same side of the market (and 15,000 contracts near-term limit) to FTSE 100 Index options. All position limit hedge exemptions would apply. The exercise limits for FTSE 100 Index options would be equivalent to the position limits for those options. In addition, the Exchange proposes that the position limits for FLEX options on the FTSE 100 Index would be equal to the position limits for non-FLEX options on the FTSE 100 Index. The exercise limits for FLEX options on the FTSE 100 Index would be equivalent to the position limits for those options. The Exchange states that, except as modified by the proposal, Exchange Rules in Chapters I through XIX, XXIV, XXIVA, and XXIVB would equally apply to FTSE 100 Index options. The Exchange also states that FTSE 100 Index options would be subject to the same rules that currently govern other CBOE index options, including sales practice rules, margin requirements,\12\ and trading rules.\13\ --------------------------------------------------------------------------- \12\ The Exchange states that FTSE 100 Index options would be margined as broad-based index options. \13\ See, e.g., Exchange Rule Chapters IX (Doing Business with the Public), XII (Margins), IV (Business Conduct), VI (Doing Business on the Exchange Floor), VIII (Market-Makers, Trading Crowds and Modified Trading Systems), and XXIV (Index Options). --------------------------------------------------------------------------- The Exchange represents that it has an adequate surveillance program in place for FTSE 100 Index options and intends to use the same surveillance procedures currently utilized for each of the Exchange's other index options to monitor trading in the proposed options. The Exchange also states that it is a member of the Intermarket Surveillance Group, is an affiliate member of the International Organization of Securities Commissions, and has entered into various comprehensive surveillance agreements and/or Memoranda of Understanding with various stock exchanges, including the London Stock Exchange. Finally, the Exchange represents that it believes it and the Options Price Reporting Authority (``OPRA'') have the necessary systems capacity to handle the additional traffic associated with the listing of new series that would result from the introduction of FTSE 100 Index options.\14\ --------------------------------------------------------------------------- \14\ For a complete description of the Exchange's proposal, please see the Notice, supra note 3. --------------------------------------------------------------------------- III. Discussion and Commission Findings The Commission finds that the proposed rule change, as modified by Amendment No. 1, is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.\15\ Specifically, the Commission finds that the proposed rule change, as modified by Amendment No. 1, is consistent with Section 6(b)(5) of the Act,\16\ which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices, 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. --------------------------------------------------------------------------- \15\ In approving this proposed rule change, as modified by Amendment No. 1, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). \16\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Commission believes that the listing and trading of FTSE 100 Index options will broaden trading and hedging opportunities for investors by providing an options instrument based on an index designed to measure the performance of the 100 largest companies traded on the London Stock Exchange. Because the FTSE 100 Index is a broad-based index composed of actively-traded, well-capitalized stocks, the trading of options on the index does not raise unique regulatory concerns. The Commission believes that the listing standards, which are created specifically and exclusively for the index, are consistent with the Act, for the reasons discussed below.\17\ --------------------------------------------------------------------------- \17\ The Commission notes that it previously approved the listing and trading reduced value index options on the FTSE 100 Index on the Exchange, International Securities Exchange, Inc. and NYSE Arca, Inc. See Securities Exchange Act Release Nos. 29722 (September 23, 1991), 56 FR 49807 (October 1, 1991) (order approving SR-CBOE-91-07); 53484 (March 14, 2006) 71 FR 14268 (March 21, 2006) (order approving SR-ISE-2005-25); and 58008 (June 24, 2008) 73 FR 36945 (June 30, 2008) (order approving SR-NYSEArca-2008-61). --------------------------------------------------------------------------- The Commission notes that proposed Interpretation and Policy .02 to Exchange Rule 24.2 would require that the FTSE 100 Index consist of 90 or more component securities. Further, for options on the FTSE 100 Index to trade, each of the minimum of 90 component securities would need to have a market capitalization of greater than $100 million. The Commission notes that the proposed listing standards for options on the FTSE 100 Index would not permit any single component security to account for more than 15% of the weight of the index, and would not permit the five highest weighted component securities to account for more than 50% of the weight of the index in the aggregate. The Commission believes that, in view of the requirement on the number of securities in the index and on each security's market capitalization, this concentration standard is consistent with the Act. As noted above, the Exchange represents that it has an adequate surveillance program in place for FTSE 100 Index options and intends to use the same surveillance procedures currently utilized for each of the Exchange's other index options to monitor trading in the proposed options. The Commission notes that, consistent with the Exchange's generic listing standards for broad-based index options, non-U.S. component securities of the FTSE 100 Index that are not subject to comprehensive surveillance agreements will not, in the aggregate, represent more than 20% of the weight of the index. The proposed listing standards require that, during the time options on the FTSE 100 Index are traded on the Exchange, the current index value is widely disseminated at least once every 15 seconds by one or more major market data vendors. However, the Exchange may continue to trade FTSE 100 Index options after trading in all component securities has closed for the day and the index level is no longer widely disseminated at least once every 15 seconds by one or more major market data vendors, provided that FTSE 100 futures contracts are trading and prices for those contracts may be used as a proxy for the current index value.\18\ --------------------------------------------------------------------------- \18\ The Exchange notes that, because trading in the components of the FTSE 100 Index starts at approximately 2:00 a.m. (Chicago time) and ends at approximately 10:30 a.m. (Chicago time), there will not be a current FTSE 100 Index level calculated and disseminated during a portion of the time when the FTSE 100 Index options would be traded (from approximately 10:30 a.m. (Chicago time) to 3:15 p.m. (Chicago time)). However, the Exchange states that the FTSE 100 Index futures contracts will be trading during this time period and that the futures prices would be a proxy for the current FTSE 100 Index level during this time period. The Exchange states that FTSE 100 Index futures contracts are listed for trading on the Chicago Mercantile Exchange Inc. --------------------------------------------------------------------------- In addition, the proposed listing standards require the Exchange to reasonably believe that it has adequate system capacity to support the trading of options on the FTSE 100 Index. As noted above, the Exchange represents that it believes it and the OPRA have the necessary systems capacity to handle the additional traffic associated with the listing of new series that would result [[Page 78797]] from the introduction of FTSE 100 Index options. As a national securities exchange, the Exchange is required, under Section 6(b)(1) of the Act,\19\ to enforce compliance by its members, and persons associated with its members, with the provisions of the Act, Commission rules and regulations thereunder, and its own rules. As noted above, the Exchange states that, except as modified by the proposal, Exchange Rules in Chapters I through XIX, XXIV, XXIVA, and XXIVB would equally apply to FTSE 100 Index options. The Exchange also states that FTSE 100 Index options would be subject to the same rules that currently govern other CBOE index options, including sales practice rules, margin requirements, and trading rules. --------------------------------------------------------------------------- \19\ 15 U.S.C. 78f(b)(1). --------------------------------------------------------------------------- The Commission further believes that the Exchange's proposed position and exercise limits, trading hours, margin, strike price intervals, minimum tick size, series openings, and other aspects of the proposed rule change, as modified by Amendment No. 1, are appropriate and consistent with the Act. IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,\20\ that the proposed rule change (SR-CBOE-2015-100), as modified by Amendment No. 1, be, and hereby is, approved. --------------------------------------------------------------------------- \20\ 15 U.S.C. 78s(b)(2). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\21\ --------------------------------------------------------------------------- \21\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-31685 Filed 12-16-15; 8:45 am] BILLING CODE 8011-01-P
![78794 Federal Register / Vol. 80, No. 242 / Thursday, December 17, 2015 / Notices
market and at a price better than or consistent with the requirements of the options exchanges do not limit the size
equal to the starting price, then the Act and the rules and regulations of responses to the auctioned order
original COA will end.11 Proposed thereunder applicable to a national sized.22
subparagraph (c)(8)(E) will provide that securities exchange.19 In particular, the
if the leg markets were not marketable Commission finds that the proposed IV. Conclusion
against a COA-eligible order when the rule change is consistent with Section It is therefore ordered, pursuant to
order entered the System (and thus prior 6(b)(5) of the Act,20 which requires, Section 19(b)(2) of the Act,23 that the
to the initiation of a COA) but became among other things, that the rules of a proposed rule change (SR–C2–2015–
marketable with the COA-eligible order national securities exchange be 025), as modified by Amendment No. 1,
prior to the expiration of the Response designed to prevent fraudulent and be, and it hereby is, approved.
Time Interval, it will cause the COA to manipulative acts and practices, to
end.12 The Exchange believes that these promote just and equitable principles of For the Commission, by the Division of
provisions prevent an order that was trade, to remove impediments to and Trading and Markets, pursuant to delegated
authority.24
entered after the initiation of a COA perfect the mechanism of a free and
from trading ahead of an order with the open market and a national market Robert W. Errett,
same price that may have executed or system, and, in general, to protect Deputy Secretary.
entered the COB if it did not COA.13 investors and the public interest. [FR Doc. 2015–31681 Filed 12–16–15; 8:45 am]
Similarly, the Exchange believes it is The Commission believes that it is BILLING CODE 8011–01–P
fair for a COA-eligible order that was reasonable for C2 to require that
entered at a better price than an order incoming two-legged COA-eligible
that was resting in the COB prior to orders be COA’d by default unless a SECURITIES AND EXCHANGE
initiation of the COA to execute against Participant requests, on an order-by- COMMISSION
leg markets that become marketable order basis, that such orders not COA.
against the COA-eligible order and The Commission notes that, should a [Release No. 34–76626; File No. SR–CBOE–
resting order during the COA, because Participant not wish its orders to be 2015–100]
the Participant who entered the COA- COA’d, the proposed rule will allow the
eligible order was willing to pay a better Participant to request that its orders not Self-Regulatory Organizations;
price than that of the resting order.14 be COA’d on an order-by-order basis. In Chicago Board Options Exchange,
Third, the Exchange proposes to addition, the Commission notes that the Incorporated; Order Granting Approval
amend subparagraph (c)(3)(A) of C2 rules of another options exchange of a Proposed Rule Change, as
Rule 6.13 to delete the provision that provide that certain complex orders be Modified by Amendment No. 1, To List
states that RFR responses are limited to routed to a complex order auction and Trade Options That Overlie a
the size of the COA-eligible order for unless a member designates that such Reduced Value of the FTSE 100 Index
allocation purposes.15 The Exchange orders not initiate a complex order
explains that it is proposing this change auction on that exchange.21 December 11, 2015.
because if the allocation algorithm for The Commission also believes that it I. Introduction
complex orders in a class is pro-rata, the is reasonable for the Exchange to add
System is unable to block RFR new provisions regarding how incoming On October 30, 2015, the Chicago
responses that are larger than the size of orders with ‘‘do-not-COA’’ requests or Board Options Exchange, Incorporated
the COA-eligible order.16 The Exchange that are not COA-eligible, as well as (‘‘Exchange’’ or ‘‘CBOE’’) filed with the
notes the pursuant to C2 Rule 6.13(c)(7), how changes in the leg markets, may Securities and Exchange Commission
RFR responses are firm with respect to impact ongoing COAs. Such additions (‘‘Commission’’), pursuant to Section
the COA-eligible order for which the enhance the description of current COA 19(b)(1) of the Securities Exchange Act
responses are submitted, provided that functionality and the circumstances that of 1934 (‘‘Act’’) 1 and Rule 19b–4
responses that exceed the size of a COA- may cause a COA to end early to help thereunder,2 a proposed rule change to
eligible order are also eligible to trade ensure investors understand how ‘‘do- list and trade options that overlie a
with other incoming COA-eligible not-COA’’ orders may impact a COA. As reduced value of the FTSE 100 Index.
orders that are received during the noted above, these rules provide that if The proposed rule change was
Response Time Interval.17 entry of a ‘‘do-not-COA’’ order causes a published for comment in the Federal
Finally, the Exchange proposes to COA to end, any executions that occur Register on November 10, 2015.3 On
make technical and other following the COA will occur in December 10, 2015, the Exchange filed
nonsubstantive changes, which are accordance with allocation principles in Amendment No. 1 to the proposed rule
described in the Notice.18 place, subject to an exception that the change.4 This order grants approval of
original COA-eligible order will receive
III. Discussion and Commission
time priority. 22 See id. and NYSE MKT Rule 6.80NY(e).
Findings Finally, the Commission believes it is 23 15 U.S.C. 78s(b)(2).
After careful review, the Commission reasonable for C2 to delete the provision 24 17 CFR 200.30–3(a)(12).
finds that the proposed rule change is in its Rules limiting the size of RFR 1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
responses to the size of the COA-eligible
11 Id. 3 See Securities Exchange Act Release No. 76353
order. The Commission notes that other (November 4, 2015), 80 FR 69751 (‘‘Notice’’).
asabaliauskas on DSK5VPTVN1PROD with NOTICES
12 Id. at 67447–8.
4 Amendment No. 1 makes certain technical
13 Id. at 67449. 19 In approving this proposal, the Commission has
14 Id. modifications to Exhibit 5 to reflect the current
considered the proposed rule’s impact on CBOE rulebook and to remove a reference to ‘‘(1/
15 Id. at 67448. efficiency, competition, and capital formation. See 10th)’’ that was inadvertently included. It also
16 Id. The Exchange represents that this proposed 15 U.S.C. 78c(f). revises rule text to make additional technical edits.
rule change will result in the rule regarding RFR 20 15 U.S.C. 78f(b)(5).
As the changes made by Amendment No. 1 are
responses more accurately reflecting current System 21 See NASDAQ OMX PHLX LLC (‘‘PHLX’’) Rule technical in nature and do not materially alter the
functionality. Id. 1080, Commentary .07(a)(viii) and (e) (describing substance of the proposed rule change or raise any
17 Id.
the complex order live auction (‘‘COLA’’) process novel regulatory issues, Amendment No. 1 is not
18 Id. and ‘‘do not auction’’ orders). subject to notice and comment.
VerDate Sep<11>2014 16:53 Dec 16, 2015 Jkt 238001 PO 00000 Frm 00087 Fmt 4703 Sfmt 4703 E:\FR\FM\17DEN1.SGM 17DEN1](https://thefederalregister.org/doc/80_FR_79036/page/1.svg)
![Federal Register / Vol. 80, No. 242 / Thursday, December 17, 2015 / Notices 78797
from the introduction of FTSE 100 30, 2015, NASDAQ OMX PHLX LLC listed securities from $0.0028 to $0.0029
Index options. (‘‘Phlx’’ or ‘‘Exchange’’) filed with the per share executed. Second, the
As a national securities exchange, the Securities and Exchange Commission Exchange is proposing to increase the
Exchange is required, under Section (‘‘SEC’’ or ‘‘Commission’’) the proposed charge for executions in NYSE-listed
6(b)(1) of the Act,19 to enforce rule change as described in Items I, II, securities from $0.0027 to $0.0028 per
compliance by its members, and persons and III, below, which Items have been share executed. Lastly, the Exchange is
associated with its members, with the prepared by the Exchange. The proposing to increase the charge for
provisions of the Act, Commission rules Commission is publishing this notice to executions in securities listed on
and regulations thereunder, and its own solicit comments on the proposed rule exchanges other than Nasdaq and NYSE
rules. As noted above, the Exchange change from interested persons. from $0.0026 to $0.0028 per share
states that, except as modified by the executed.
proposal, Exchange Rules in Chapters I I. Self-Regulatory Organization’s The Exchange is also proposing to
through XIX, XXIV, XXIVA, and XXIVB Statement of the Terms of Substance of increase credits provided to member
would equally apply to FTSE 100 Index the Proposed Rule Change organizations that provide displayed
options. The Exchange also states that The Exchange proposes to amend the liquidity through PSX under
FTSE 100 Index options would be Exchange’s Pricing Schedule under subparagraph (a)(1) of the rule. First, the
subject to the same rules that currently Section VIII, entitled ‘‘NASDAQ OMX Exchange is proposing to increase the
govern other CBOE index options, PSX FEES,’’ with respect to execution credit provided for Quotes/Orders
including sales practice rules, margin and routing of orders in securities entered by a member organization that
requirements, and trading rules. priced at $1 or more per share. provides and accesses 0.35% or more of
The Commission further believes that While the changes proposed herein Consolidated Volume during the month
the Exchange’s proposed position and are effective upon filing, the Exchange from $0.0028 to $0.0031 per share
exercise limits, trading hours, margin, has designated the amendments become executed. Second, the Exchange is
strike price intervals, minimum tick operative on December 1, 2015. proposing to increase the credit
size, series openings, and other aspects The text of the proposed rule change provided for Quotes/Orders entered by
of the proposed rule change, as is available on the Exchange’s Web site a member organization that provides
modified by Amendment No. 1, are at http://nasdaqomxphlx. and accesses 0.25% or more of
appropriate and consistent with the Act. cchwallstreet.com/, at the principal Consolidated Volume during the month
office of the Exchange, and at the from $0.0027 to $0.0029 per share
IV. Conclusion executed. Lastly, the Exchange is
Commission’s Public Reference Room.
It is therefore ordered, pursuant to eliminating the $0.0023 per share
Section 19(b)(2) of the Act,20 that the II. Self-Regulatory Organization’s executed credit provided for Quotes/
proposed rule change (SR–CBOE–2015– Statement of the Purpose of, and Orders entered by a member
100), as modified by Amendment No. 1, Statutory Basis for, the Proposed Rule organization that provides and accesses
be, and hereby is, approved. Change daily volume of 100,000 or more shares
For the Commission, by the Division of In its filing with the Commission, the during the month, and is increasing the
Trading and Markets, pursuant to delegated Exchange included statements ‘‘default’’ credit (i.e., the credit received
authority.21 concerning the purpose of and basis for for providing displayed liquidity that
Robert W. Errett, the proposed rule change and discussed does not otherwise qualify for a higher
Deputy Secretary. any comments it received on the credit) provided for all other Quotes/
[FR Doc. 2015–31685 Filed 12–16–15; 8:45 am] proposed rule change. The text of these Orders from $0.0020 to $0.0023 per
statements may be examined at the share executed.
BILLING CODE 8011–01–P
places specified in Item IV below. The Finally, the Exchange is proposing to
Exchange has prepared summaries, set eliminate text from subparagraph (a) of
SECURITIES AND EXCHANGE forth in sections A, B, and C below, of the rule that defines the term ‘‘regular
COMMISSION the most significant aspects of such market hours,’’ which was erroneously
statements. left in the rule text when the tier it
[Release No. 34–76631; File No. SR–Phlx– provided reference to was deleted.
2015–98] A. Self-Regulatory Organization’s Currently, no fee or credit references the
Statement of the Purpose of, and definition. Thus, the Exchange is
Self-Regulatory Organizations; Statutory Basis for, the Proposed Rule proposing to delete the reference.
NASDAQ OMX PHLX LLC; Notice of Change
Filing and Immediate Effectiveness of 2. Statutory Basis
Proposed Rule Change Relating to the 1. Purpose
The Exchange believes that the
Exchange’s Pricing Schedule Under The purpose of the proposed rule proposed rule change is consistent with
Section VIII With Respect to Execution change is to amend certain charges and the provisions of Section 6 of the Act,3
and Routing of Orders in Securities fees for order execution and routing in general, and with Sections 6(b)(4) and
Priced at $1 or More Per Share applicable to the use of the order 6(b)(5) of the Act,4 in particular, in that
December 11, 2015.
execution and routing services of the it provides for the equitable allocation
NASDAQ OMX PSX System (‘‘PSX’’) by of reasonable dues, fees and other
Pursuant to Section 19(b)(1) of the
member organizations for all securities
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Securities Exchange Act of 1934 charges among members and issuers and
traded at $1 or more per share. other persons using any facility or
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
Specifically, under subparagraph system which Nasdaq operates or
notice is hereby given that on November
(a)(1) of the rule the Exchange is controls and is designed to prevent
19 15 U.S.C. 78f(b)(1).
proposing to increase the charges fraudulent and manipulative acts and
20 15 U.S.C. 78s(b)(2). assessed member organizations that practices, to promote just and equitable
21 17 CFR 200.30–3(a)(12). enter orders that execute in PSX. First,
1 15 U.S.C. 78s(b)(1). the Exchange is proposing to increase 3 15 U.S.C. 78f.
2 17 CFR 240.19b–4. the charge for executions in Nasdaq- 4 15 U.S.C. 78f(b)(4) and (5).
VerDate Sep<11>2014 16:53 Dec 16, 2015 Jkt 238001 PO 00000 Frm 00090 Fmt 4703 Sfmt 4703 E:\FR\FM\17DEN1.SGM 17DEN1](https://thefederalregister.org/doc/80_FR_79036/page/4.svg)
Document Created: 2018-03-02 09:17:59
Document Modified: 2018-03-02 09:17:59
| 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 78794 |
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