81 FR 20697 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of a Proposed Rule Change, as Modified by Amendment No. 2 Thereto, Relating to AIM Retained Orders
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 68 (April 8, 2016)
Federal Register Volume 81, Issue 68 (April 8, 2016)
| Page Range | 20697-20699 | |
| FR Document | 2016-08045 |
[Federal Register Volume 81, Number 68 (Friday, April 8, 2016)] [Notices] [Pages 20697-20699] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-08045] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77511; File No. SR-CBOE-2016-024] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of a Proposed Rule Change, as Modified by Amendment No. 2 Thereto, Relating to AIM Retained Orders April 4, 2016. 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 March 22, 2016, Chicago Board Options Exchange, Incorporated (the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. On April 1, 2016, the Exchange filed Amendment No. 1 to the proposal. On April 4, 2016, the Exchange filed Amendment No. 2 to the proposal.\3\ The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ In Amendment No. 2, which superseded Amendment No. 1 in its entirety, the Exchange proposed changes to amend the proposed rule text of Interpretation and Policy .08 to Rule 6.53C in Exhibit 5 to include references to Rule 6.74A when referring to proposed Interpretation and Policy .09 to Rule 6.74A. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change 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 Rule 6.74A (Automated Improvement Mechanism (``AIM'')) to clarify how orders submitted for electronic crossing into the AIM auction are treated if an auction cannot occur, to adopt Interpretation and Policy .09 to Rule 6.74A (AIM Retained Order Functionality) to describe the Exchange's AIM Retained Order (``A:AIR'') functionality in the Rules, and make minor edits to Interpretation and Policy .08 to Rule 6.53C (Price Check Parameters) relating to the treatment of complex AIM orders marked A:AIR and correct certain typographical errors. Under Rule 6.74A (Automated Improvement Mechanism (``AIM'')), a Trading Permit Holder (``TPH'') that represents agency orders may electronically execute an order it represents as agent (``Agency Order'') against principal interest or against a solicited order provided it submits the Agency Order for electronic execution into the AIM auction (``Auction'') for processing. Matched Agency Orders may be processed via AIM subject to certain eligibility requirements contained in Rule 6.74A(a). Specifically, to be eligible for processing via AIM, the Agency Order must be: (1) In a class designated as eligible for Auctions and within the designated eligibility size parameters as determined by the Exchange; (2) stopped with a principal or solicited order priced at the national best bid or offer (``NBBO'') (if 50 standard option contracts or 500 mini-option contracts or greater) or one cent/one minimum increment better than the NBBO (if less than 50 standard option contracts or 500 mini-option contracts); and (3) submitted in a series in which at least three Market-Makers are quoting if submitted during regular trading hours.\4\ Orders submitted for crossing into AIM, which are ineligible for Auction processing will result in both the Agency Order and the matching contra order(s) being cancelled. --------------------------------------------------------------------------- \4\ See Rule 6.74A(a). --------------------------------------------------------------------------- A:AIR functionality is an enhancement to AIM that allows TPHs the flexibility to choose, on an order-by-order basis, whether an Agency Order should continue into the Hybrid Trading System \5\ for processing rather [[Page 20698]] than cancel in the event that an Auction cannot occur.\6\ A:AIR functionality essentially allows for the entry of Agency Orders into AIM with contingency processing instructions for handling in the event that the order cannot be processed via Auction. For example, using the A:AIR functionality, a TPH might submit a matched Agency Order for 50 standard contracts that is stopped with a principal interest or solicited order priced outside of the NBBO and into AIM. In such a case, the order would not initiate an auction (as the eligibility requirement in Rule 6.74A(a)(2) would not be met),\7\ but would continue into the Hybrid Trading System and be booked at the Agency Order limit price (rather than cancelled if A:AIR functionality were not used) and the contra order would be cancelled. --------------------------------------------------------------------------- \5\ The Hybrid Trading System refers to the Exchange's trading platform as defined in Rule 1.1(aaa) (Hybrid Trading System). \6\ There are a variety of circumstances in which an AIM order may be submitted to the Exchange for processing, but an auction may not occur. For example, TPH may submit an order for AIM processing, which is not AIM eligible because one or more of the conditions required for an AIM auction to occur pursuant to Rule 6.74A(a) is not present. In addition, an order that is otherwise AIM eligible may not be able to process for a variety of reasons, including, but not limited to circumstances in which AIM functionality is suspended. In either of such cases, A:AIR functionality may allow the Agency Order to process despite the overall order not being AIM eligible. \7\ See Rule 6.74A(a). --------------------------------------------------------------------------- The Exchange notes that A:AIR functionality is currently available for use on the Exchange and is referred to in the Rules (although not using that term) \8\ and explained in various Information and Regulatory Circulars.\9\ A:AIR functionality, however, is not explicitly defined in the Rules. Accordingly, this filing is intended to further codify, clarify, and describe A:AIR functionality in the Rules. Specifically, the Exchange proposes to adopt Interpretation and Policy .09 to Rule 6.74A (AIM Retained Order Functionality), under which the Exchange would define an AIM Retained Order as the transmission of two or more orders for crossing pursuant to Rule 6.74A, with the Agency Order priced at the market or a limit price in the standard increment for the option series and marked with a contingency instruction to route the Agency Order for processing and cancel any contra orders if an Auction cannot occur (including if the conditions described in Rule 6.74A(a) are not met). --------------------------------------------------------------------------- \8\ See Interpretation and Policy .08 to Rule 6.53C (Price Check Parameters) at paragraphs (c)(5), (d), (f)(2), and (g)(4) referring to orders that instruct the System to process the Agency Order as an unpaired order if an AIM Auction cannot be initiated. \9\ See, e.g., Regulatory Circular RG13-053 (Limit Up-Limit Down Order Handling); Regulatory Circular RG13-009 (AIM Primary Order Allowed in Penny Increments); Information Circular IC07-62 (Automated Improvement Mechanism (AIM)). --------------------------------------------------------------------------- Furthermore, to ensure that A:AIR orders are properly priced to allow the Exchange to book the Agency Order in the event an Auction cannot occur, proposed Interpretation and Policy .09 to Rule 6.74A would provide that orders marked ``A:AIR'' with Agency Orders that are not priced at the market or that are priced with a limit price not in the standard increment for the option series in which they are entered would be cancelled. For example, if a TPH were to submit a matched Agency Order into AIM for processing in a class with a minimum increment of a nickel, which was stopped with a contra order at $0.07, both the Agency Order and the contra order would be cancelled because the order, which is not priced in the minimum increment for the class, would not be eligible for AIM processing and because the System would not be able to book an order at $0.07 in a class with a minimum increment of a nickel. Notably, this provision of proposed Interpretation and Policy .09 to Rule 6.74A is consistent with previous descriptions of A:AIR functionality by the Exchange and Exchange rules that only permit orders at the standard increment to enter the book.\10\ Finally, proposed Interpretation and Policy .09 to Rule 6.74A would provide that A:AIR order functionality will be made available on those order management platforms as determined by the Exchange and announced via Regulatory Circular. This provision is intended to make clear that A:AIR functionality may not be available on all trading platforms in use on the Exchange.\11\ --------------------------------------------------------------------------- \10\ See Regulatory Circular RG13-009 (AIM Primary Order Allowed in Penny Increments); see also Rule 6.42. \11\ A:AIR functionality is not currently supported on Floor Broker Workstation (``FBW''), FBW2, or the PULSe trader workstation. FBW, FBW2, and PULSe are order handling tools used for manual handling of orders. Thus, when ineligible AIM orders are rejected back to FBW, FBW2, and PULSe users, a person is present to decide how best to handle such orders. FBW, FBW2, and PULSe users can either re-route such orders to be booked or for alternative electronic processing on the Exchange or to their broker on the floor of the Exchange. --------------------------------------------------------------------------- The Exchange also notes that although orders submitted into AIM, which are not marked A:AIR and are ineligible for Auction processing will result in both the Agency Order and the matching contra order(s) being cancelled, the Rules do not explicitly provide as much. Accordingly, the Exchange proposes to add language to Rule 6.74A(a) to provide that in the event that a Trading Permit Holder submits a matched Agency Order for electronic execution into the Auction that is ineligible for processing because it does not meet the conditions described in paragraph (a), both the Agency Order and any solicited contra orders will be cancelled unless marked as an AIM Retained order pursuant to proposed Interpretation and Policy .09 to Rule 6.74A.\12\ --------------------------------------------------------------------------- \12\ Notably, the A:AIR functionality is used primarily by smart router technology to ensure that ineligible AIM orders are submitted into the Hybrid Trading System for processing and not cancelled. Whereas traditional brokers and dealers are equipped to manually handle cancelled orders that are returned to them and may revise the cancelled orders' terms or contact their customers for further instructions, smart routers are generally all electronic algorithmic systems that may not allow for manual handling of cancelled orders. --------------------------------------------------------------------------- The Exchange also proposes to make minor changes to Interpretation and Policy .08 to Rule 6.53C regarding price reasonability checks on complex orders to harmonize references to A:AIR functionality in Rule 6.53C with the language in proposed Interpretation and Policy .09 to Rule 6.74A. Specifically, the Exchange proposes to modify Interpretation and Policy .08(c)(5), (d), (f)(2), and (g)(4) to Rule 6.53C (Price Check Parameters) to change references to AIM orders that instruct the System to process the Agency Order as an unpaired order if an AIM auction cannot be initiated, to instead refer to AIM Retained (``A:AIR'') orders as defined in proposed Interpretation and Policy .09 to Rule 6.74A. These changes are non-substantive and intended only to harmonize existing references to A:AIR functionality currently in the Rules with the definition of A:AIR orders set forth in proposed Interpretation and Policy .09 to Rule 6.74A. The proposed rule change also makes non-substantive changes in these paragraphs to capitalize the defined term Agency Order, consistent with Rule 6.74A. 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the Act and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.\13\ Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \14\ requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to [[Page 20699]] and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \15\ requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78f(b). \14\ 15 U.S.C. 78f(b)(5). \15\ Id. --------------------------------------------------------------------------- The proposed rule change seeks to provide additional clarity and completeness in the Rules regarding functionalities in use at the Exchange. The Exchange is continuously updating the Rules to provide additional detail, clarity, and transparency regarding its operations and trading systems. The Exchange believes that the adoption of detailed, clear, and transparent rules reduces burdens on competition and promotes just and equitable principles of trade. The Exchange also believes that A:AIR functionality is valuable enhancement to AIM, which provides the opportunity for execution of customer orders that a TPH submitted for crossing via AIM but cannot be executed via AIM and helps prevent inadvertent mishandling of Agency Orders (i.e. customer orders) submitted for Auction. The Exchange believes that these outcomes serve to protect investors' interests by helping to ensure that ineligible AIM Agency Orders are processed rather than cancelled. In addition, the Exchange believes that price improvement mechanisms promote competition amongst market participants and that enhancements to such price improvement mechanisms promote competition between exchanges. A:AIR functionality makes such mechanisms easier to use and minimizes the risk of order submitted into AIM being mishandled. Thus, the Exchange believes that the A:AIR functionality is an enhancement consistent with the purposes of the Act. 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 that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange notes that price improvement mechanisms are widely used across the national options exchanges. The exchanges have developed these mechanisms in order to provide market participants diverse opportunities to seek valuable price improvement and as a means to compete with one another for order flow. Such price improvement mechanisms not only promote intermarket competition for order flow between the exchanges, but also intramarket competition between market participants competing for orders directly through the auction process. Accordingly, the exchanges are continuously making enhancements and adding functionalities to their price improvement mechanisms in order to provide more competitive marketplaces for market participants and better compete with one another. A:AIR functionality is simply one of many enhancements that the Exchange has made to AIM for this purpose. 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 written comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 45 days of the date of publication of this notice in the Federal Register or within such longer period up to 90 days (i) as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the Exchange consents, the Commission will: A. By order approve or disapprove such proposed rule change, or B. institute proceedings to determine whether the proposed rule change should be disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change, as modified by Amendment No. 2, is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-CBOE-2016-024 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-CBOE-2016-024. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-CBOE-2016-024, and should be submitted on or before April 29, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\16\ --------------------------------------------------------------------------- \16\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-08045 Filed 4-7-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 68 / Friday, April 8, 2016 / Notices 20697
SUPPLEMENTARY INFORMATION: The Office SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
of Management and Budget is COMMISSION Statement of the Purpose of, and
particularly interested in comments Statutory Basis for, the Proposed Rule
[Release No. 34–77511; File No. SR–CBOE–
that: 2016–024]
Change
1. Evaluate whether the proposed 1. Purpose
collection of information is necessary Self-Regulatory Organizations;
Chicago Board Options Exchange, The Exchange proposes to amend
for the proper performance of functions Rule 6.74A (Automated Improvement
of the agency, including whether the Incorporated; Notice of Filing of a
Proposed Rule Change, as Modified by Mechanism (‘‘AIM’’)) to clarify how
information will have practical utility; orders submitted for electronic crossing
Amendment No. 2 Thereto, Relating to
2. Evaluate the accuracy of the AIM Retained Orders into the AIM auction are treated if an
agency’s estimate of the burden of the auction cannot occur, to adopt
proposed collection of information, April 4, 2016. Interpretation and Policy .09 to Rule
including the validity of the Pursuant to Section 19(b)(1) of the 6.74A (AIM Retained Order
methodology and assumptions used; Securities Exchange Act of 1934 (the Functionality) to describe the
‘‘Act’’),1 and Rule 19b–4 thereunder,2 Exchange’s AIM Retained Order
3. Enhance the quality, utility, and (‘‘A:AIR’’) functionality in the Rules,
notice is hereby given that, on March
clarity of the information to be and make minor edits to Interpretation
22, 2016, Chicago Board Options
collected; and Exchange, Incorporated (the ‘‘Exchange’’ and Policy .08 to Rule 6.53C (Price
4. Minimize the burden of the or ‘‘CBOE’’) filed with the Securities Check Parameters) relating to the
collection of information on those who and Exchange Commission (the treatment of complex AIM orders
are to respond, including through the ‘‘Commission’’) the proposed rule marked A:AIR and correct certain
use of appropriate automated, change as described in Items I, II, and typographical errors.
electronic, mechanical, or other III below, which Items have been Under Rule 6.74A (Automated
technological collection techniques or prepared by the Exchange. On April 1, Improvement Mechanism (‘‘AIM’’)), a
other forms of information technology, 2016, the Exchange filed Amendment Trading Permit Holder (‘‘TPH’’) that
e.g., permitting electronic submissions No. 1 to the proposal. On April 4, 2016, represents agency orders may
of responses. the Exchange filed Amendment No. 2 to electronically execute an order it
the proposal.3 The Commission is represents as agent (‘‘Agency Order’’)
SF 2802 is used to support the against principal interest or against a
publishing this notice to solicit
payment of monies from the Retirement comments on the proposed rule change solicited order provided it submits the
Fund. It identifies the applicant for from interested persons. Agency Order for electronic execution
refund of retirement deductions. SF into the AIM auction (‘‘Auction’’) for
2802A is used to comply with the legal I. Self-Regulatory Organization’s processing. Matched Agency Orders
requirement that any spouse or former Statement of the Terms of Substance of may be processed via AIM subject to
spouse of the applicant has been the Proposed Rule Change certain eligibility requirements
notified that the former employee is The text of the proposed rule change contained in Rule 6.74A(a). Specifically,
applying for a refund. is available on the Exchange’s Web site to be eligible for processing via AIM, the
(http://www.cboe.com/AboutCBOE/ Agency Order must be: (1) In a class
Analysis CBOELegalRegulatoryHome.aspx), at designated as eligible for Auctions and
Agency: Retirement Operations, the Exchange’s Office of the Secretary, within the designated eligibility size
Retirement Services, Office of Personnel and at the Commission’s Public parameters as determined by the
Management. Reference Room. Exchange; (2) stopped with a principal
or solicited order priced at the national
Title: Application For Refund of II. Self-Regulatory Organization’s
best bid or offer (‘‘NBBO’’) (if 50
Retirement Deductions (CSRS)/Current/ Statement of the Purpose of, and
standard option contracts or 500 mini-
Former Spouse’s Notification of Statutory Basis for, the Proposed Rule
option contracts or greater) or one cent/
Application for Refund of Retirement Change
one minimum increment better than the
Deductions Under the Civil Service In its filing with the Commission, the NBBO (if less than 50 standard option
Retirement System. Exchange included statements contracts or 500 mini-option contracts);
OMB Number: 3206–0128. concerning the purpose of and basis for and (3) submitted in a series in which
the proposed rule change and discussed at least three Market-Makers are quoting
Frequency: On occasion. any comments it received on the if submitted during regular trading
Affected Public: Individuals or proposed rule change. The text of these hours.4 Orders submitted for crossing
Households. statements may be examined at the into AIM, which are ineligible for
Number of Respondents: SF 2802 = places specified in Item IV below. The Auction processing will result in both
3,741; SF 2802A = 3,389. Exchange has prepared summaries, set the Agency Order and the matching
forth in sections A, B, and C below, of contra order(s) being cancelled.
Estimated Time per Respondent: SF the most significant aspects of such A:AIR functionality is an
2802 = 1 hour; SF 2802A = 15 minutes. statements. enhancement to AIM that allows TPHs
Total Burden Hours: 4,588. the flexibility to choose, on an order-by-
mstockstill on DSK4VPTVN1PROD with NOTICES
1 15 U.S.C. 78s(b)(1).
U.S. Office of Personnel Management. order basis, whether an Agency Order
2 17 CFR 240.19b–4. should continue into the Hybrid
Beth F. Cobert, 3 In Amendment No. 2, which superseded
Amendment No. 1 in its entirety, the Exchange
Trading System 5 for processing rather
Acting Director.
proposed changes to amend the proposed rule text
[FR Doc. 2016–08079 Filed 4–7–16; 8:45 am] of Interpretation and Policy .08 to Rule 6.53C in 4 See Rule 6.74A(a).
BILLING CODE 6325–38–P Exhibit 5 to include references to Rule 6.74A when 5 The Hybrid Trading System refers to the
referring to proposed Interpretation and Policy .09 Exchange’s trading platform as defined in Rule
to Rule 6.74A. 1.1(aaa) (Hybrid Trading System).
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![Federal Register / Vol. 81, No. 68 / Friday, April 8, 2016 / Notices 20699
and perfect the mechanism of a free and intermarket competition for order flow Commission process and review your
open market and a national market between the exchanges, but also comments more efficiently, please use
system, and, in general, to protect intramarket competition between only one method. The Commission will
investors and the public interest. market participants competing for post all comments on the Commission’s
Additionally, the Exchange believes the orders directly through the auction Internet Web site (http://www.sec.gov/
proposed rule change is consistent with process. Accordingly, the exchanges are rules/sro.shtml). Copies of the
the Section 6(b)(5) 15 requirement that continuously making enhancements and submission, all subsequent
the rules of an exchange not be designed adding functionalities to their price amendments, all written statements
to permit unfair discrimination between improvement mechanisms in order to with respect to the proposed rule
customers, issuers, brokers, or dealers. provide more competitive marketplaces change that are filed with the
The proposed rule change seeks to for market participants and better Commission, and all written
provide additional clarity and compete with one another. A:AIR communications relating to the
completeness in the Rules regarding functionality is simply one of many proposed rule change between the
functionalities in use at the Exchange. enhancements that the Exchange has Commission and any person, other than
The Exchange is continuously updating made to AIM for this purpose. those that may be withheld from the
the Rules to provide additional detail, public in accordance with the
clarity, and transparency regarding its C. Self-Regulatory Organization’s
provisions of 5 U.S.C. 552, will be
operations and trading systems. The Statement on Comments on the
available for Web site viewing and
Exchange believes that the adoption of Proposed Rule Change Received From
printing in the Commission’s Public
detailed, clear, and transparent rules Members, Participants, or Others
Reference Room, 100 F Street NE.,
reduces burdens on competition and The Exchange neither solicited nor Washington, DC 20549 on official
promotes just and equitable principles received written comments on the business days between the hours of
of trade. The Exchange also believes that proposed rule change. 10:00 a.m. and 3:00 p.m. Copies of such
A:AIR functionality is valuable filing also will be available for
enhancement to AIM, which provides III. Date of Effectiveness of the
Proposed Rule Change and Timing for inspection and copying at the principal
the opportunity for execution of office of the Exchange. All comments
customer orders that a TPH submitted Commission Action
received will be posted without change;
for crossing via AIM but cannot be Within 45 days of the date of the Commission does not edit personal
executed via AIM and helps prevent publication of this notice in the Federal identifying information from
inadvertent mishandling of Agency Register or within such longer period submissions. You should submit only
Orders (i.e. customer orders) submitted up to 90 days (i) as the Commission may information that you wish to make
for Auction. The Exchange believes that designate if it finds such longer period available publicly. All submissions
these outcomes serve to protect to be appropriate and publishes its should refer to File Number SR–CBOE–
investors’ interests by helping to ensure reasons for so finding or (ii) as to which 2016–024, and should be submitted on
that ineligible AIM Agency Orders are the Exchange consents, the Commission or before April 29, 2016.
processed rather than cancelled. In will:
addition, the Exchange believes that A. By order approve or disapprove For the Commission, by the Division of
price improvement mechanisms Trading and Markets, pursuant to delegated
such proposed rule change, or
authority.16
promote competition amongst market B. institute proceedings to determine
participants and that enhancements to whether the proposed rule change Robert W. Errett,
such price improvement mechanisms should be disapproved. Deputy Secretary.
promote competition between [FR Doc. 2016–08045 Filed 4–7–16; 8:45 am]
IV. Solicitation of Comments
exchanges. A:AIR functionality makes BILLING CODE 8011–01–P
such mechanisms easier to use and Interested persons are invited to
minimizes the risk of order submitted submit written data, views, and
into AIM being mishandled. Thus, the arguments concerning the foregoing, SECURITIES AND EXCHANGE
Exchange believes that the A:AIR including whether the proposed rule COMMISSION
functionality is an enhancement change, as modified by Amendment No.
consistent with the purposes of the Act. 2, is consistent with the Act. Comments [Investment Company Act Release No.
may be submitted by any of the 32065; 812–14528]
B. Self-Regulatory Organization’s
following methods:
Statement on Burden on Competition Madison ETF Trust and Madison ETF
The Exchange does not believe that Electronic Comments Advisers, LLC; Notice of Application
the proposed rule change will impose • Use the Commission’s Internet
April 4, 2016.
any burden on competition that is not comment form (http://www.sec.gov/
necessary or appropriate in furtherance rules/sro.shtml); or AGENCY: Securities and Exchange
of the purposes of the Act. The • Send an email to rule-comments@ Commission (‘‘Commission’’).
Exchange notes that price improvement sec.gov. Please include File Number SR– ACTION: Notice of an application for an
mechanisms are widely used across the CBOE–2016–024 on the subject line. order under section 6(c) of the
national options exchanges. The Investment Company Act of 1940 (the
Paper Comments ‘‘Act’’) for an exemption from sections
exchanges have developed these
• Send paper comments in triplicate 2(a)(32), 5(a)(1), 22(d), and 22(e) of the
mstockstill on DSK4VPTVN1PROD with NOTICES
mechanisms in order to provide market
participants diverse opportunities to to Brent J. Fields, Secretary, Securities Act and rule 22c–1 under the Act, under
seek valuable price improvement and as and Exchange Commission, 100 F Street sections 6(c) and 17(b) of the Act for an
a means to compete with one another NE., Washington, DC 20549–1090. exemption from sections 17(a)(1) and
for order flow. Such price improvement All submissions should refer to File 17(a)(2) of the Act, and under section
mechanisms not only promote Number SR–CBOE–2016–024. This file 12(d)(1)(J) for an exemption from
number should be included on the
15 Id. subject line if email is used. To help the 16 17 CFR 200.30–3(a)(12).
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Document Created: 2018-02-07 13:49:53
Document Modified: 2018-02-07 13:49:53
| 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 | 81 FR 20697 |
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