81 FR 22334 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule To Amend the Fees Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 73 (April 15, 2016)
Federal Register Volume 81, Issue 73 (April 15, 2016)
| Page Range | 22334-22335 | |
| FR Document | 2016-08640 |
[Federal Register Volume 81, Number 73 (Friday, April 15, 2016)] [Notices] [Pages 22334-22335] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-08640] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77575; File No. SR-CBOE-2016-030] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule To Amend the Fees Schedule April 11, 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 April 1, 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. 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. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend its Fees Schedule. 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 its Fees Schedule, effective April 1, 2016. Specifically, the Exchange proposes to extend the current waiver of the VIX Index License Surcharge of $0.10 per contract for Clearing Trading Permit Holder Proprietary (``Firm'') (origin codes ``F'' or ``L'') VIX orders that have a premium of $0.10 or lower and have series with an expiration of seven (7) calendar days or less. The Exchange adopted the current waiver to reduce transaction costs on expiring, low-priced VIX options, which the Exchange believed would encourage Firms to seek to close and/or roll over such positions close to expiration at low premium levels, including facilitating customers to do so, in order to free up capital and encourage additional trading. The Exchange initially proposed to waive the surcharge through March 31, 2016, at which time the Exchange stated that it would evaluate whether the wavier [sic] has in fact prompted Firms to close and roll over these positions close to expiration as intended. The Exchange believes the proposed change has in fact encouraged Firms to do so and as such, proposes to extend the waiver of the surcharge through December 2016, at which time the Exchange will reevaluate whether the wavier [sic] has continued to prompt Firms to close and roll over positions close to expiration at low premium levels. Accordingly, the Exchange proposes to delete the reference to the current waiver period of March 31, 2016 from the Fees Schedule and replace it with December 31, 2016. 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 (the ``Act'') and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.\3\ Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \4\ 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 facilitation transactions in [[Page 22335]] 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. Additionally, the Exchange believes the proposed rule change is consistent with Section 6(b)(4) of the Act,\5\ which requires that Exchange rules provide for the equitable allocation of reasonable dues, fees, and other charges among its Trading Permit Holders and other persons using its facilities. --------------------------------------------------------------------------- \3\ 15 U.S.C. 78f(b). \4\ 15 U.S.C. 78f(b)(5). \5\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- The Exchange believes it's reasonable to continue to waive the VIX Index License Surcharge for Clearing Trading Permit Holder Proprietary VIX orders that have a premium of $0.10 or lower and have series with an expiration of 7 calendar days or less because the Exchange wants to continue encouraging Firms to roll and close over positions close to expiration at low premium levels. The Exchange notes that without the waiver, firms are less likely to engage in these transactions, as opposed to other VIX transactions, due to the associated transaction costs. The Exchange believes it's equitable and not unfairly discriminatory to limit the waiver to Clearing Trading Permit Holder Proprietary orders because they contribute capital to facilitate the execution of VIX customer orders with a premium of $0.10 or lower and series with an expiration of 7 calendar days or less. Finally, the Exchange believes it's reasonable, equitable and not unfairly discriminatory to provide that the surcharge will be waived through December 2016, as it gives the Exchange additional time to evaluate if the wavier [sic] is continuing to have the desired effect of encouraging these transactions. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule changes will impose any burden on competition that are not necessary or appropriate in furtherance of the purposes of the Act. The Exchange does not believe that the proposed rule change will impose any burden on intramarket competition that is not necessary or appropriate in furtherance of the purposes of the Act because the proposed change applies to all Firms, and while the waiver only applies to Firm orders, Firms contribute capital to facilitate the execution of VIX customer orders with a premium of $0.10 or lower and series with an expiration of 7 days or less. The Exchange does not believe that the proposed rule changes will impose any burden on intermarket competition that is not necessary or appropriate in furtherance of the purposes of the Act because the proposed change only affects trading on CBOE. To the extent that the proposed changes make CBOE a more attractive marketplace for market participants at other exchanges, such market participants are welcome to become CBOE market participants. 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 comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \6\ and paragraph (f) of Rule 19b-4 \7\ thereunder. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission will institute proceedings to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78s(b)(3)(A). \7\ 17 CFR 240.19b-4(f). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-CBOE-2016-030 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-CBOE-2016-030. 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 the 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-2016-030 and should be submitted on or before May 6, 2016. --------------------------------------------------------------------------- \8\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\8\ Robert W. Errett, Deputy Secretary. [FR Doc. 2016-08640 Filed 4-14-16; 8:45 am] BILLING CODE 8011-01-P
![22334 Federal Register / Vol. 81, No. 73 / Friday, April 15, 2016 / Notices
order approving or disapproving such For the Commission, by the Division of A. Self-Regulatory Organization’s
proposed rule change, as amended. Trading and Markets, pursuant to delegated Statement of the Purpose of, and
authority.5 Statutory Basis for, the Proposed Rule
IV. Solicitation of Comments Robert W. Errett, Change
Interested persons are invited to Deputy Secretary.
submit written data, views and 1. Purpose
[FR Doc. 2016–08646 Filed 4–14–16; 8:45 am]
arguments concerning the foregoing, BILLING CODE 8011–01–P
The Exchange proposes to amend its
including whether the proposed rule Fees Schedule, effective April 1, 2016.
change, as amended by Partial Specifically, the Exchange proposes to
Amendment No. 1, is consistent with SECURITIES AND EXCHANGE extend the current waiver of the VIX
the Exchange Act. Comments may be COMMISSION Index License Surcharge of $0.10 per
submitted by any of the following contract for Clearing Trading Permit
[Release No. 34–77575; File No. SR–CBOE– Holder Proprietary (‘‘Firm’’) (origin
methods:
2016–030]
codes ‘‘F’’ or ‘‘L’’) VIX orders that have
Electronic Comments a premium of $0.10 or lower and have
Self-Regulatory Organizations;
• Use the Commission’s Internet Chicago Board Options Exchange, series with an expiration of seven (7)
comment form (http://www.sec.gov/ Incorporated; Notice of Filing and calendar days or less. The Exchange
rules/sro.shtml); or Immediate Effectiveness of a Proposed adopted the current waiver to reduce
• Send an email to rule-comments@ transaction costs on expiring, low-
Rule To Amend the Fees Schedule
sec.gov. Please include File Number SR– priced VIX options, which the Exchange
FINRA–2015–054 on the subject line. April 11, 2016. believed would encourage Firms to seek
Paper Comments Pursuant to Section 19(b)(1) of the to close and/or roll over such positions
Securities Exchange Act of 1934 (the close to expiration at low premium
• Send paper comments in triplicate ‘‘Act’’),1 and Rule 19b–4 thereunder,2 levels, including facilitating customers
to Secretary, Securities and Exchange notice is hereby given that on April 1, to do so, in order to free up capital and
Commission, 100 F Street NE., 2016, Chicago Board Options Exchange, encourage additional trading. The
Washington, DC 20549–1090. Incorporated (the ‘‘Exchange’’ or Exchange initially proposed to waive
All submissions should refer to File ‘‘CBOE’’) filed with the Securities and the surcharge through March 31, 2016,
Number SR–FINRA–2015–054. This file Exchange Commission (the at which time the Exchange stated that
number should be included on the ‘‘Commission’’) the proposed rule it would evaluate whether the wavier
subject line if email is used. To help the change as described in Items I, II, and [sic] has in fact prompted Firms to close
Commission process and review your III below, which Items have been and roll over these positions close to
comments more efficiently, please use prepared by the Exchange. The expiration as intended. The Exchange
only one method. The Commission will Commission is publishing this notice to believes the proposed change has in fact
post all comments on the Commission’s solicit comments on the proposed rule encouraged Firms to do so and as such,
Internet Web site (http://www.sec.gov/ change from interested persons. proposes to extend the waiver of the
rules/sro.shtml). Copies of the surcharge through December 2016, at
submission, all subsequent I. Self-Regulatory Organization’s which time the Exchange will
amendments, all written statements Statement of the Terms of Substance of reevaluate whether the wavier [sic] has
with respect to the proposed rule the Proposed Rule Change continued to prompt Firms to close and
change that are filed with the The Exchange proposes to amend its roll over positions close to expiration at
Commission, and all written Fees Schedule. The text of the proposed low premium levels. Accordingly, the
communications relating to the rule change is available on the Exchange proposes to delete the
proposed rule change between the Exchange’s Web site (http:// reference to the current waiver period of
Commission and any person, other than www.cboe.com/AboutCBOE/ March 31, 2016 from the Fees Schedule
those that may be withheld from the CBOELegalRegulatoryHome.aspx), at and replace it with December 31, 2016.
public in accordance with the the Exchange’s Office of the Secretary,
provisions of 5 U.S.C. 552, will be 2. Statutory Basis
and at the Commission’s Public
available for Web site viewing and Reference Room. The Exchange believes the proposed
printing in the Commission’s Public rule change is consistent with the
Reference Room, 100 F Street NE., II. Self-Regulatory Organization’s Securities Exchange Act of 1934 (the
Washington, DC 20549, on official Statement of the Purpose of, and ‘‘Act’’) and the rules and regulations
business days between the hours of Statutory Basis for, the Proposed Rule thereunder applicable to the Exchange
10:00 a.m. and 3:00 p.m. Copies of such Change and, in particular, the requirements of
filing also will be available for In its filing with the Commission, the Section 6(b) of the Act.3 Specifically,
inspection and copying at the principal Exchange included statements the Exchange believes the proposed rule
office of FINRA. concerning the purpose of and basis for change is consistent with the Section
All comments received will be posted the proposed rule change and discussed 6(b)(5) 4 requirements that the rules of
without change. The Commission does any comments it received on the an exchange be designed to prevent
not edit personal identifying proposed rule change. The text of these fraudulent and manipulative acts and
information from submissions. You
asabaliauskas on DSK3SPTVN1PROD with NOTICES
statements may be examined at the practices, to promote just and equitable
should submit only information that places specified in Item IV below. The principles of trade, to foster cooperation
you wish to make available publicly. All Exchange has prepared summaries, set and coordination with persons engaged
submissions should refer to File forth in sections A, B, and C below, of in regulating, clearing, settling,
Number SR–FINRA–2015–054 and the most significant aspects of such processing information with respect to,
should be submitted on or before May statements. and facilitation transactions in
6, 2016.
1 15 U.S.C. 78s(b)(1). 3 15 U.S.C. 78f(b).
5 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. 4 15 U.S.C. 78f(b)(5).
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![Federal Register / Vol. 81, No. 73 / Friday, April 15, 2016 / Notices 22335
securities, to remove impediments to that is not necessary or appropriate in comments more efficiently, please use
and perfect the mechanism of a free and furtherance of the purposes of the Act only one method. The Commission will
open market and a national market because the proposed change only post all comments on the Commission’s
system, and, in general, to protect affects trading on CBOE. To the extent Internet Web site (http://www.sec.gov/
investors and the public interest. that the proposed changes make CBOE rules/sro.shtml). Copies of the
Additionally, the Exchange believes the a more attractive marketplace for market submission, all subsequent
proposed rule change is consistent with participants at other exchanges, such amendments, all written statements
Section 6(b)(4) of the Act,5 which market participants are welcome to with respect to the proposed rule
requires that Exchange rules provide for become CBOE market participants. change that are filed with the
the equitable allocation of reasonable Commission, and all written
dues, fees, and other charges among its C. Self-Regulatory Organization’s communications relating to the
Trading Permit Holders and other Statement on Comments on the proposed rule change between the
persons using its facilities. Proposed Rule Change Received From Commission and any person, other than
The Exchange believes it’s reasonable Members, Participants, or Others those that may be withheld from the
to continue to waive the VIX Index The Exchange neither solicited nor public in accordance with the
License Surcharge for Clearing Trading received comments on the proposed provisions of 5 U.S.C. 552, will be
Permit Holder Proprietary VIX orders rule change. available for Web site viewing and
that have a premium of $0.10 or lower printing in the Commission’s Public
and have series with an expiration of 7 III. Date of Effectiveness of the
Reference Room, 100 F Street NE.,
calendar days or less because the Proposed Rule Change and Timing for
Washington, DC 20549 on official
Exchange wants to continue Commission Action
business days between the hours of
encouraging Firms to roll and close over The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the
positions close to expiration at low effective pursuant to Section 19(b)(3)(A) filing also will be available for
premium levels. The Exchange notes of the Act 6 and paragraph (f) of Rule inspection and copying at the principal
that without the waiver, firms are less 19b–4 7 thereunder. At any time within office of the Exchange. All comments
likely to engage in these transactions, as 60 days of the filing of the proposed rule received will be posted without change;
opposed to other VIX transactions, due change, the Commission summarily may the Commission does not edit personal
to the associated transaction costs. The temporarily suspend such rule change if identifying information from
Exchange believes it’s equitable and not it appears to the Commission that such submissions. You should submit only
unfairly discriminatory to limit the action is necessary or appropriate in the information that you wish to make
waiver to Clearing Trading Permit public interest, for the protection of available publicly. All submissions
Holder Proprietary orders because they investors, or otherwise in furtherance of should refer to File Number SR–CBOE–
contribute capital to facilitate the the purposes of the Act. If the 2016–030 and should be submitted on
execution of VIX customer orders with Commission takes such action, the or before May 6, 2016.
a premium of $0.10 or lower and series Commission will institute proceedings For the Commission, by the Division of
with an expiration of 7 calendar days or to determine whether the proposed rule Trading and Markets, pursuant to delegated
less. Finally, the Exchange believes it’s change should be approved or authority.8
reasonable, equitable and not unfairly disapproved. Robert W. Errett,
discriminatory to provide that the Deputy Secretary.
surcharge will be waived through IV. Solicitation of Comments
[FR Doc. 2016–08640 Filed 4–14–16; 8:45 am]
December 2016, as it gives the Exchange Interested persons are invited to
BILLING CODE 8011–01–P
additional time to evaluate if the wavier submit written data, views, and
[sic] is continuing to have the desired arguments concerning the foregoing,
effect of encouraging these transactions. including whether the proposed rule SECURITIES AND EXCHANGE
change is consistent with the Act. COMMISSION
B. Self-Regulatory Organization’s
Comments may be submitted by any of
Statement on Burden on Competition [Release No. 34–77582; File No. SR–
the following methods:
The Exchange does not believe that BatsEDGX–2016–07]
the proposed rule changes will impose Electronic Comments
any burden on competition that are not • Use the Commission’s Internet Self-Regulatory Organizations; Bats
necessary or appropriate in furtherance EDGX Exchange, Inc.; Notice of Filing
comment form (http://www.sec.gov/
of the purposes of the Act. The and Immediate Effectiveness of a Non-
rules/sro.shtml); or
Exchange does not believe that the • Send an email to rule-comments@ Substantive Correction to Rule 11.27
proposed rule change will impose any sec.gov. Please include File Number SR– April 11, 2016.
burden on intramarket competition that CBOE–2016–030 on the subject line. Pursuant to Section 19(b)(1) of the
is not necessary or appropriate in Securities Exchange Act of 1934 (the
Paper Comments
furtherance of the purposes of the Act ‘‘Act’’),1 and Rule 19b–4 thereunder,2
because the proposed change applies to • Send paper comments in triplicate notice is hereby given that on April 7,
all Firms, and while the waiver only to Secretary, Securities and Exchange 2016, Bats EDGX Exchange, Inc. (the
applies to Firm orders, Firms contribute Commission, 100 F Street NE., ‘‘Exchange’’ or ‘‘EDGX’’) filed with the
Washington, DC 20549–1090.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
capital to facilitate the execution of VIX Securities and Exchange Commission
customer orders with a premium of All submissions should refer to File (‘‘Commission’’) the proposed rule
$0.10 or lower and series with an Number SR–CBOE–2016–030. This file change as described in Items I and II
expiration of 7 days or less. number should be included on the below, which Items have been prepared
The Exchange does not believe that subject line if email is used. To help the by the Exchange. The Exchange has
the proposed rule changes will impose Commission process and review your
any burden on intermarket competition 8 17 CFR 200.30–3(a)(12).
6 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1).
5 15 U.S.C. 78f(b)(4). 7 17 CFR 240.19b–4(f). 2 17 CFR 240.19b–4.
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Document Created: 2016-04-15 00:55:34
Document Modified: 2016-04-15 00:55:34
| 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 | 81 FR 22334 |
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