81 FR 21931 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Approving a Proposed Rule Change Relating to LMMs and DPMs
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 71 (April 13, 2016)
Federal Register Volume 81, Issue 71 (April 13, 2016)
| Page Range | 21931-21932 | |
| FR Document | 2016-08426 |
[Federal Register Volume 81, Number 71 (Wednesday, April 13, 2016)] [Notices] [Pages 21931-21932] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-08426] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77553; File No. SR-CBOE-2016-009] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Approving a Proposed Rule Change Relating to LMMs and DPMs April 7, 2016. I. Introduction On February 8, 2016, Chicago Board Options Exchange, Incorporated (the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange Commission (the ``Commission''), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'' or ``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to amend its rules relating to Lead Market-Makers (``LMMs''), Designated Primary Market- Makers (``DPMs'') and Supplemental Market-Makers (``SMMs''). The proposed rule change was published for comment in the Federal Register on February 26, 2016.\3\ The Commission received no comments on the proposal. This order approves the proposed rule change. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ See Securities Exchange Act Release No. 77200 (February 22, 2016), 81 FR 9910 (``Notice''). --------------------------------------------------------------------------- II. Description of the Proposed Rule Change \4\ --------------------------------------------------------------------------- \4\ A more detailed description of the proposed rule change appears in the Notice. See Notice, supra note 3. --------------------------------------------------------------------------- The Exchange proposes to (i) reorganize, simplify and make consistent certain text relating to LMM and DPM obligations generally, (ii) amend its Rules related to LMMs, (iii) delete outdated references in its Rules to SMMs and other obsolete language and (iv) make other clarifying changes. Specifically, the Exchange proposes to make modifications to Rules 8.15 (pertaining to LMMs in Hybrid 3.0 classes), 8.15A (pertaining to LMMs in Hybrid classes) and 8.85 (pertaining to DPMs) to modify the descriptions of certain obligations of LMMs and DPMs (e.g., obligations related to quote accuracy, bid/ask differentials, minimum size and trading rotations, competitive markets and promotion of the Exchange, and material operational or financial change notifications) to be more consistent with each other.\5\ The Exchange notes that LMMs and DPMs have substantially similar functions and obligations (including the same continuous quoting obligations, along with the same participation entitlement percentages), and therefore, having consistent language with respect to these obligations will simplify its rules and reflect the similar roles served by LMMs and DPMs.\6\ --------------------------------------------------------------------------- \5\ See Notice, supra note 3, at 9913. \6\ See id. Currently, the primary difference between LMMs and DPMs relates to their appointment terms. An LMM receives an appointment for a limited term (e.g., one month), while a DPM serves in that role until it resigns or the Exchange removes it from that role pursuant to Rule 8.90. --------------------------------------------------------------------------- Of significance, CBOE proposes to change the opening quoting obligations of LMMs and DPMs. CBOE Rules 8.15A(b)(iv) and 8.85(a)(xi) require LMMs and DPMs, respectively, to ensure that a trading rotation is initiated promptly following the opening of the underlying security in 100% of the series of each allocated class by entering opening quotes as necessary. The Exchange proposes to modify the opening quote requirement to require that opening quotes must be entered within one minute in any series that is not open due to the lack of a quote. The proposed rule change also modifies the Rules' language to provide that the timing of the opening quoting obligation begins after the initiation of an opening rotation on the Exchange rather than after the opening of the underlying security.\7\ --------------------------------------------------------------------------- \7\ See Notice, supra note 3, at 9913. --------------------------------------------------------------------------- CBOE also proposes to impose a continuous quoting obligation on LMMs in Hybrid 3.0 classes.\8\ LLMs in Hybrid classes currently must provide continuous electronic quotes in the lesser of 99% of the non- adjusted option series or 100% of the non-adjusted option series minus one call-put pair, with the term ``call-put pair'' referring to one call and one put that cover the same underlying instrument and have the same expiration date and exercise price.\9\ According to CBOE, its rules currently do not prescribe for LMMs a continuous electronic quoting requirement for Hybrid 3.0 classes, though CBOE has historically assumed a requirement of at least 90% of the series of each appointed class for 99% of the time.\10\ CBOE now proposes to codify for LMMs a continuous quoting requirement for Hybrid 3.0 classes to be identical to the existing requirement for LMMs assigned to Hybrid classes.\11\ --------------------------------------------------------------------------- \8\ See Notice, supra note 3, at 9915. \9\ See CBOE Rule 8.15A(b)(i). \10\ See Notice, supra note 3, at 9915. \11\ See id. As proposed, this obligation would not apply to intra-day add-on series on the day during which such series are added for trading, and would apply to an LMM's appointed classes collectively. CBOE would determine compliance with an LMM's continuous electronic quoting obligation on a monthly basis (however, determining compliance with this obligation on a monthly basis would not relieve an LMM from meeting this obligation on a daily basis, nor would it prohibit the Exchange from taking disciplinary action against an LMM for failing to meet these obligations each trading day). Further, the proposed Rule would provide that when the underlying security for a class is in a limit up-limit down state, LMMs in Hybrid 3.0 classes would have no quoting obligations in the class. The Exchange represents that these obligations are identical to the obligations currently imposed on LMMs in Hybrid classes, as well as DPMs in Hybrid 3.0 classes. See Notice, supra note 3, at 9915. --------------------------------------------------------------------------- The Exchange also proposes modifications to Rules 8.15, 8.15A, 8.83 and 8.85 as they relate to the Off-Floor DPM and Off-/On-Floor LMM programs. For instance, CBOE proposes to amend Rule 8.83(g) to conform Hybrid 3.0 classes to Hybrid classes by providing that in a Hybrid 3.0 class in which an Off-Floor DPM has been appointed, the Exchange also would be permitted to appoint an On-Floor LMM, which would be eligible to receive a participation entitlement under current [[Page 21932]] Rule 8.15B with respect to orders represented in open outcry.\12\ --------------------------------------------------------------------------- \12\ The provisions in current Rule 8.15A related to the on- floor LMM program would apply to Hybrid 3.0 classes pursuant to proposed Rule 8.15. --------------------------------------------------------------------------- CBOE also proposes that the Exchange have the discretion to appoint an On-Floor LMM in any class in which an Off-Floor LMM has been appointed, and that any such On-Floor LMM would be eligible to receive a participation entitlement under current Rule 8.15B with respect to orders represented in open outcry.\13\ The Exchange also proposes to treat Off-Floor LMMs in a manner similar to the current treatment of Off-Floor DPMs with respect to their quoting requirement and appointments. --------------------------------------------------------------------------- \13\ See proposed Rule 8.15, Interpretation and Policy .01(c). This proposed change is consistent with the program for Off-Floor DPMs/On-Floor LMMs and would extend the applicability of the provision to Hybrid and Hybrid 3.0 classes that have Off-Floor LMMs (rather than Off-Floor DPMs). --------------------------------------------------------------------------- CBOE also proposes to make changes to eliminate obsolete references, including those related to individual LMMs, SMMs, an expired pilot program, the former Linkage Plan, and strike price interval, bid/ask differential and quote continuity requirements. Further, CBOE proposes to make non-substantive or technical modifications to Rules 1.1(fff) and (ggg), 3.2, 6.1A, 6.2A, 6.45A, 6.45B, 6.74, 8.7, 8.13, 8.14, 8.15, 8.15A, 8.83, 8.85, 17.50, 22.14, 24.9, and 29.17, including amendments to correct typographical errors, update headings, update cross-references to Rules 8.15, 8.15A and 8.15B, make the rule text more plain English, and make the rule text more consistently organized, numbered and worded. III. Discussion The Commission 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.\14\ Specifically, the Commission believes the proposed rule change is consistent with the Section 6(b)(5) \15\ 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 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. In addition, the Commission believes the proposed rule change is consistent with the Section 6(b)(5) \16\ requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78f(b). \15\ 15 U.S.C. 78f(b)(5). \16\ Id. --------------------------------------------------------------------------- In particular, the Commission believes that the proposed rule changes to amend Rules 8.15, 8.15A and 8.85 to revise descriptions of obligations of LMMs in Hybrid 3.0 classes, LMMs in Hybrid classes, and DPMs, respectively, as well as to combine the LMM obligations into a single rule for all classes, should benefit investors by providing more uniformity to the Rules related to market participants with substantially similar functions that are subject to analogous obligations. In addition, the Commission believes that CBOE's proposal to impose a continuous quoting obligation on LMMs in Hybrid 3.0 classes that mirrors the existing continuous quoting obligation in Hybrid classes should help facilitate transactions in securities in a manner that protects investors and the public interest. The CBOE's proposal also slightly modifies the opening quoting obligations of LMMs and DPMs to include a specific time by which opening quotes must be entered. The Commission believes that the Exchange's proposal to require an opening quotation within one minute rather than promptly should provide DPMs and LMMs with clearer guidance regarding the opening quote obligation, which should facilitate compliance by LMMs and DPMs with this obligation. The Commission notes the Exchange's representation that nearly all series open for trading within this timeframe on a daily basis.\17\ Therefore, the Commission believes this time frame should not be unduly burdensome to LMMs and DPMs while still helping to ensure a timely opening. --------------------------------------------------------------------------- \17\ See Notice, supra note 3, at 9913. --------------------------------------------------------------------------- Further, the Commission believes the proposed revisions to the descriptions of the Off-Floor DPM and Off-/On-Floor LMM programs should clarify these programs, including with respect to appointments. Among other things, CBOE's proposal extends to Hybrid 3.0 classes certain provisions currently applicable to Hybrid classes, including on-floor appointments, and clarifies the effect on an on-floor appointment when an off-floor appointment is reallocated. These changes further harmonize Hybrid 3.0 with Hybrid and codify into the CBOE rules important detail regarding on and off-floor appointments. Finally, the Commission believes that the CBOE's proposal to eliminate obsolete provisions, including those related to individual LMMs, SMMs, an expired pilot program, the former Linkage Plan, as well as references to the non-applicability of strike price intervals, bid/ ask differentials, and quote continuity requirements for LEAPs, should protect investors by eliminating potential confusion that may result from incorrect references in CBOE's rules. With respect to strike price intervals, bid/ask differentials, and quote continuity requirements for LEAPs, the CBOE represents that other existing rules address those requirements \18\ and, therefore, the proposed rule change should have no effect on the regulatory requirements applicable to CBOE market makers. The Commission notes that the non-substantive, technical changes proposed should help to reduce duplication, simplify and provide clarity in the Exchange's rules, which should benefit all CBOE market participants. --------------------------------------------------------------------------- \18\ See Notice, supra note 3, at 9917. --------------------------------------------------------------------------- IV. Conclusion It is therefore ordered pursuant to Section 19(b)(2) of the Act \19\ that the proposed rule change (SR-CBOE-2016-009), be and hereby is approved. --------------------------------------------------------------------------- \19\ 15.U.S.C. 78s(b)(2). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\20\ --------------------------------------------------------------------------- \20\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-08426 Filed 4-12-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 71 / Wednesday, April 13, 2016 / Notices 21931
only one method. The Commission will amend its rules relating to Lead Market- that opening quotes must be entered
post all comments on the Commission’s Makers (‘‘LMMs’’), Designated Primary within one minute in any series that is
Internet Web site (http://www.sec.gov/ Market-Makers (‘‘DPMs’’) and not open due to the lack of a quote. The
rules/sro.shtml). Copies of the Supplemental Market-Makers proposed rule change also modifies the
submission, all subsequent (‘‘SMMs’’). The proposed rule change Rules’ language to provide that the
amendments, all written statements was published for comment in the timing of the opening quoting obligation
with respect to the proposed rule Federal Register on February 26, 2016.3 begins after the initiation of an opening
change that are filed with the The Commission received no comments rotation on the Exchange rather than
Commission, and all written on the proposal. This order approves the after the opening of the underlying
communications relating to the proposed rule change. security.7
proposed rule change between the CBOE also proposes to impose a
II. Description of the Proposed Rule
Commission and any person, other than continuous quoting obligation on LMMs
Change 4
those that may be withheld from the in Hybrid 3.0 classes.8 LLMs in Hybrid
public in accordance with the The Exchange proposes to (i) classes currently must provide
provisions of 5 U.S.C. 552, will be reorganize, simplify and make
continuous electronic quotes in the
available for Web site viewing and consistent certain text relating to LMM
lesser of 99% of the non-adjusted option
printing in the Commission’s Public and DPM obligations generally, (ii)
series or 100% of the non-adjusted
Reference Room, 100 F Street NE., amend its Rules related to LMMs, (iii)
option series minus one call-put pair,
Washington, DC 20549, on official delete outdated references in its Rules to
with the term ‘‘call-put pair’’ referring to
business days between the hours of SMMs and other obsolete language and
one call and one put that cover the same
10:00 a.m. and 3:00 p.m. Copies of the (iv) make other clarifying changes.
Specifically, the Exchange proposes to underlying instrument and have the
filing also will be available for same expiration date and exercise
inspection and copying at the principal make modifications to Rules 8.15
(pertaining to LMMs in Hybrid 3.0 price.9 According to CBOE, its rules
office of the Exchange. All comments currently do not prescribe for LMMs a
received will be posted without change; classes), 8.15A (pertaining to LMMs in
Hybrid classes) and 8.85 (pertaining to continuous electronic quoting
the Commission does not edit personal requirement for Hybrid 3.0 classes,
identifying information from DPMs) to modify the descriptions of
certain obligations of LMMs and DPMs though CBOE has historically assumed
submissions. You should submit only a requirement of at least 90% of the
information that you wish to make (e.g., obligations related to quote
accuracy, bid/ask differentials, series of each appointed class for 99%
available publicly. All submissions of the time.10 CBOE now proposes to
should refer to File Number SR–CBOE– minimum size and trading rotations,
competitive markets and promotion of codify for LMMs a continuous quoting
2016–023, and should be submitted on requirement for Hybrid 3.0 classes to be
or before May 4, 2016. the Exchange, and material operational
or financial change notifications) to be identical to the existing requirement for
For the Commission, by the Division of more consistent with each other.5 The LMMs assigned to Hybrid classes.11
Trading and Markets, pursuant to delegated The Exchange also proposes
authority.11 Exchange notes that LMMs and DPMs
have substantially similar functions and modifications to Rules 8.15, 8.15A, 8.83
Robert W. Errett, and 8.85 as they relate to the Off-Floor
obligations (including the same
Deputy Secretary. DPM and Off-/On-Floor LMM programs.
continuous quoting obligations, along
[FR Doc. 2016–08427 Filed 4–12–16; 8:45 am] with the same participation entitlement For instance, CBOE proposes to amend
BILLING CODE 8011–01–P percentages), and therefore, having Rule 8.83(g) to conform Hybrid 3.0
consistent language with respect to classes to Hybrid classes by providing
these obligations will simplify its rules that in a Hybrid 3.0 class in which an
SECURITIES AND EXCHANGE Off-Floor DPM has been appointed, the
and reflect the similar roles served by
COMMISSION Exchange also would be permitted to
LMMs and DPMs.6
[Release No. 34–77553; File No. SR–CBOE– Of significance, CBOE proposes to appoint an On-Floor LMM, which
2016–009] change the opening quoting obligations would be eligible to receive a
of LMMs and DPMs. CBOE Rules participation entitlement under current
Self-Regulatory Organizations; 8.15A(b)(iv) and 8.85(a)(xi) require
Chicago Board Options Exchange, LMMs and DPMs, respectively, to 7 See Notice, supra note 3, at 9913.
Incorporated; Order Approving a ensure that a trading rotation is initiated 8 See Notice, supra note 3, at 9915.
Proposed Rule Change Relating to promptly following the opening of the 9 See CBOE Rule 8.15A(b)(i).
LMMs and DPMs underlying security in 100% of the 10 See Notice, supra note 3, at 9915.
11 See id. As proposed, this obligation would not
April 7, 2016. series of each allocated class by entering apply to intra-day add-on series on the day during
opening quotes as necessary. The which such series are added for trading, and would
I. Introduction Exchange proposes to modify the apply to an LMM’s appointed classes collectively.
On February 8, 2016, Chicago Board opening quote requirement to require CBOE would determine compliance with an LMM’s
continuous electronic quoting obligation on a
Options Exchange, Incorporated (the monthly basis (however, determining compliance
3 See Securities Exchange Act Release No. 77200
‘‘Exchange’’ or ‘‘CBOE’’) filed with the with this obligation on a monthly basis would not
(February 22, 2016), 81 FR 9910 (‘‘Notice’’).
Securities and Exchange Commission 4 A more detailed description of the proposed
relieve an LMM from meeting this obligation on a
asabaliauskas on DSK3SPTVN1PROD with NOTICES
(the ‘‘Commission’’), pursuant to daily basis, nor would it prohibit the Exchange from
rule change appears in the Notice. See Notice, supra taking disciplinary action against an LMM for
Section 19(b)(1) of the Securities note 3. failing to meet these obligations each trading day).
Exchange Act of 1934 (‘‘Act’’ or 5 See Notice, supra note 3, at 9913.
Further, the proposed Rule would provide that
‘‘Exchange Act’’) 1 and Rule 19b–4 6 See id. Currently, the primary difference when the underlying security for a class is in a limit
thereunder,2 a proposed rule change to between LMMs and DPMs relates to their up-limit down state, LMMs in Hybrid 3.0 classes
appointment terms. An LMM receives an would have no quoting obligations in the class. The
appointment for a limited term (e.g., one month), Exchange represents that these obligations are
11 17 CFR 200.30–3(a)(12). while a DPM serves in that role until it resigns or identical to the obligations currently imposed on
1 15 U.S.C. 78s(b)(1). the Exchange removes it from that role pursuant to LMMs in Hybrid classes, as well as DPMs in Hybrid
2 17 CFR 240.19b–4. Rule 8.90. 3.0 classes. See Notice, supra note 3, at 9915.
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![21932 Federal Register / Vol. 81, No. 71 / Wednesday, April 13, 2016 / Notices
Rule 8.15B with respect to orders proposed rule change is consistent with obsolete provisions, including those
represented in open outcry.12 the Section 6(b)(5) 16 requirement that related to individual LMMs, SMMs, an
CBOE also proposes that the Exchange the rules of an exchange not be designed expired pilot program, the former
have the discretion to appoint an On- to permit unfair discrimination between Linkage Plan, as well as references to
Floor LMM in any class in which an customers, issuers, brokers, or dealers. the non-applicability of strike price
Off-Floor LMM has been appointed, and In particular, the Commission intervals, bid/ask differentials, and
that any such On-Floor LMM would be believes that the proposed rule changes quote continuity requirements for
eligible to receive a participation to amend Rules 8.15, 8.15A and 8.85 to LEAPs, should protect investors by
entitlement under current Rule 8.15B revise descriptions of obligations of eliminating potential confusion that
with respect to orders represented in LMMs in Hybrid 3.0 classes, LMMs in may result from incorrect references in
open outcry.13 The Exchange also Hybrid classes, and DPMs, respectively, CBOE’s rules. With respect to strike
proposes to treat Off-Floor LMMs in a as well as to combine the LMM price intervals, bid/ask differentials, and
manner similar to the current treatment obligations into a single rule for all quote continuity requirements for
of Off-Floor DPMs with respect to their classes, should benefit investors by LEAPs, the CBOE represents that other
quoting requirement and appointments. providing more uniformity to the Rules existing rules address those
CBOE also proposes to make changes related to market participants with requirements 18 and, therefore, the
to eliminate obsolete references, substantially similar functions that are proposed rule change should have no
including those related to individual subject to analogous obligations. In effect on the regulatory requirements
LMMs, SMMs, an expired pilot addition, the Commission believes that applicable to CBOE market makers. The
program, the former Linkage Plan, and CBOE’s proposal to impose a Commission notes that the non-
strike price interval, bid/ask differential continuous quoting obligation on LMMs substantive, technical changes proposed
and quote continuity requirements. in Hybrid 3.0 classes that mirrors the should help to reduce duplication,
Further, CBOE proposes to make non- existing continuous quoting obligation simplify and provide clarity in the
substantive or technical modifications in Hybrid classes should help facilitate Exchange’s rules, which should benefit
to Rules 1.1(fff) and (ggg), 3.2, 6.1A, transactions in securities in a manner all CBOE market participants.
6.2A, 6.45A, 6.45B, 6.74, 8.7, 8.13, 8.14, that protects investors and the public
8.15, 8.15A, 8.83, 8.85, 17.50, 22.14, interest. IV. Conclusion
24.9, and 29.17, including amendments The CBOE’s proposal also slightly It is therefore ordered pursuant to
to correct typographical errors, update modifies the opening quoting Section 19(b)(2) of the Act 19 that the
headings, update cross-references to obligations of LMMs and DPMs to proposed rule change (SR–CBOE–2016–
Rules 8.15, 8.15A and 8.15B, make the include a specific time by which 009), be and hereby is approved.
rule text more plain English, and make opening quotes must be entered. The For the Commission, by the Division of
the rule text more consistently Commission believes that the Trading and Markets, pursuant to delegated
organized, numbered and worded. Exchange’s proposal to require an authority.20
opening quotation within one minute
III. Discussion
rather than promptly should provide Robert W. Errett,
The Commission believes the DPMs and LMMs with clearer guidance Deputy Secretary.
proposed rule change is consistent with regarding the opening quote obligation, [FR Doc. 2016–08426 Filed 4–12–16; 8:45 am]
the Act and the rules and regulations which should facilitate compliance by BILLING CODE 8011–01–P
thereunder applicable to the Exchange LMMs and DPMs with this obligation.
and, in particular, the requirements of The Commission notes the Exchange’s
Section 6(b) of the Act.14 Specifically, representation that nearly all series SECURITIES AND EXCHANGE
the Commission believes the proposed open for trading within this timeframe COMMISSION
rule change is consistent with the on a daily basis.17 Therefore, the
Section 6(b)(5) 15 requirements that the [File No. 500–1]
Commission believes this time frame
rules of an exchange be designed to should not be unduly burdensome to
prevent fraudulent and manipulative Order of Suspension of Trading; In the
LMMs and DPMs while still helping to Matter of Business Marketing Services,
acts and practices, to promote just and ensure a timely opening.
equitable principles of trade, to foster Inc., Diversified Corporate Resources,
Further, the Commission believes the Inc., Great Lakes Recreation Co.,
cooperation and coordination with proposed revisions to the descriptions
persons engaged in regulating, clearing, Green Nature USA, Inc., Green St.
of the Off-Floor DPM and Off-/On-Floor Energy, Inc., International Total
settling, processing information with LMM programs should clarify these
respect to, and facilitating transactions Services, Inc., J.P. Cabot Realty, Inc.,
programs, including with respect to Multicom Publishing, Pan American
in securities, to remove impediments to appointments. Among other things,
and perfect the mechanism of a free and Resources, Inc., Printron, Inc.,
CBOE’s proposal extends to Hybrid 3.0 Seaboard Associates, Inc., Sona
open market and a national market classes certain provisions currently
system, and, in general, to protect Mobile Holdings Group, Ltd., Standard
applicable to Hybrid classes, including Holdings Group, Ltd., TraceGuard
investors and the public interest. In on-floor appointments, and clarifies the
addition, the Commission believes the Technologies, Inc., Tradings.net, Inc.,
effect on an on-floor appointment when US-Worldlink.com, Inc., Versadial, Inc.,
12 The provisions in current Rule 8.15A related to
an off-floor appointment is reallocated. Voxcorp, Inc., and W3OTC, Inc.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
the on-floor LMM program would apply to Hybrid
These changes further harmonize
3.0 classes pursuant to proposed Rule 8.15. Hybrid 3.0 with Hybrid and codify into April 11, 2016.
13 See proposed Rule 8.15, Interpretation and the CBOE rules important detail It appears to the Securities and
Policy .01(c). This proposed change is consistent regarding on and off-floor appointments. Exchange Commission that there is a
with the program for Off-Floor DPMs/On-Floor Finally, the Commission believes that
LMMs and would extend the applicability of the
lack of current and accurate information
provision to Hybrid and Hybrid 3.0 classes that the CBOE’s proposal to eliminate
have Off-Floor LMMs (rather than Off-Floor DPMs). 18 See Notice, supra note 3, at 9917.
14 15 U.S.C. 78f(b). 16 Id. 19 15.U.S.C.78s(b)(2).
15 15 U.S.C. 78f(b)(5). 17 See Notice, supra note 3, at 9913. 20 17 CFR 200.30–3(a)(12).
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Document Created: 2016-04-13 03:11:48
Document Modified: 2016-04-13 03:11:48
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| FR Citation | 81 FR 21931 |
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