81 FR 26857 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to FLEX Options Pilot Program
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 86 (May 4, 2016)
Federal Register Volume 81, Issue 86 (May 4, 2016)
| Page Range | 26857-26861 | |
| FR Document | 2016-10436 |
[Federal Register Volume 81, Number 86 (Wednesday, May 4, 2016)] [Notices] [Pages 26857-26861] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-10436] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77742; File No. SR-CBOE-2016-032] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to FLEX Options Pilot Program April 29, 2016. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on April 15, 2016, Chicago Board Options Exchange, Incorporated (the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Exchange filed the proposal as a ``non-controversial'' proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) thereunder.\4\ 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\ 15 U.S.C. 78s(b)(3)(A)(iii). \4\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to extend the operation of its Flexible Exchange Options (``FLEX Options'') pilot program through May 3, 2017.\5\ The text of the proposed rule change is provided below. --------------------------------------------------------------------------- \5\ FLEX Options provide investors with the ability to customize basic option features including size, expiration date, exercise style, and certain exercise prices. FLEX Options can be FLEX Index Options or FLEX Equity Options. In addition, other products are permitted to be traded pursuant to the FLEX trading procedures. For example, credit options are eligible for trading as FLEX Options pursuant to the FLEX rules in Chapters XXIVA and XXIVB. See CBOE Rules 24A.1(e) and (f), 24A.4(b)(1) and (c)(1), 24B.1(f) and (g), 24B.4(b)(1) and (c)(1), and 29.18. The rules governing the trading of FLEX Options on the FLEX Request for Quote (``RFQ'') System platform are contained in Chapter XXIVA. The rules governing the trading of FLEX Options on the FLEX Hybrid Trading System platform are contained in Chapter XXIVB. (additions are italicized; deletions are [bracketed]) * * * * * Chicago Board Options Exchange, Incorporated Rules * * * * * Rule 24A.4. Terms of FLEX Options No change. [[Page 26858]] . . . Interpretations and Policies: .01 FLEX Index Option PM Settlements Pilot Program: Notwithstanding subparagraph (a)(2)(iv) above, for a pilot period ending the earlier of May 3, 201[6]7 or the date on which the pilot program is approved on a permanent basis, a FLEX Index Option that expires on an Expiration Friday may have any exercise settlement value that is permissible pursuant to subparagraph (b)(3) above. .02 No change. * * * * * Rule 24B.4. Terms of FLEX Options No change. . . . Interpretations and Policies: .01 FLEX Index Option PM Settlements Pilot Program: Notwithstanding subparagraph (a)(2)(iv) above, for a pilot period ending the earlier of May 3, 201[6]7 or the date on which the pilot program is approved on a permanent basis, a FLEX Index Option that expires on an Expiration Friday may have any exercise settlement value that is permissible pursuant to subparagraph (b)(3) above. .02 No change. * * * * * The text of the proposed rule change is also 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 On January 28, 2010, the Exchange received approval of a rule change that, among other things, established a pilot program regarding permissible exercise settlement values for FLEX Index Options.\6\ The Exchange has extended the pilot period five times, which is currently set to expire on the earlier of May 3, 2016 or the date on which the pilot program is approved on a permanent basis.\7\ The purpose of this rule change filing is to extend the pilot program through the earlier of May 3, 2017 or the date on which the pilot program is approved on a permanent basis. This filing simply seeks to extend the operation of the pilot program and does not propose any substantive changes to the pilot program. --------------------------------------------------------------------------- \6\ Securities Exchange Act Release No. 61439 (January 28, 2010), 75 FR 5831 (February 4, 2010) (SR-CBOE-2009-087) (``Approval Order''). The initial pilot period was set to expire on March 28, 2011, which date was added to the rules in 2010. See Securities Exchange Act Release No. 61676 (March 9, 2010), 75 FR 13191 (March 18, 2010) (SR-CBOE-2010-026). \7\ See Securities Exchange Act Release Nos. 64110 (March 23 [sic], 2011), 76 FR 17463 (March 29, 2011) (SR-CBOE-2011-024) (extending the pilot program through the earlier of March 30, 2012 or the date on which the pilot program is approved on the permanent basis); 66701 (March 30, 2012), 77 FR 20673 (April 5, 2012) (SR- CBOE-2012-027) (extending the pilot through the earlier of November 2, 2012 or the date on which the pilot program is approved on a permanent basis); 68145 (November 2, 2012), 77 FR 67044 (November 8, 2012) (SR-CBOE-2012-102) (extending the pilot program through the earlier of November 2, 2013 or the date on which the pilot program is approved on a permanent basis); 70752 (October 24, 2013), 78 FR 65023 (October 30, 2013) (SR-CBOE-2013-099) (extending the pilot program through the earlier of November 3, 2014 or the date on which the pilot program is approved on a permanent basis); and 73460 (October 29, 2014), 79 FR 65464 (November 4, 2014) (SR-CBOE-2014- 080) (extending the pilot program through the earlier of May 3, 2016 or the date on which the pilot program is approved on a permanent basis). At the same time the permissible exercise settlement values pilot was established for FLEX Index Options, the Exchange also established a pilot program eliminating the minimum value size requirements for all FLEX Options. See Approval Order, supra note 2 [sic]. The pilot program eliminating the minimum value size requirements was extended twice pursuant to the same rule filings that extended the permissible exercise settlement values (for the same extended periods) and was approved on a permanent basis in a separate rule change filing. See id. and Securities Exchange Act Release No. 67624 (August 8, 2012), 77 FR 48580 (August 14, 2012) (SR-CBOE-2012-040). --------------------------------------------------------------------------- Under Rules 24A.4, Terms of FLEX Options, and 24B.4, Terms of FLEX Options, a FLEX Option may expire on any business day specified as to day, month and year, not to exceed a maximum term of fifteen years. In addition, the exercise settlement value for a FLEX Index Option can be specified as the index value determined by reference to the reported level of the index as derived from the opening or closing prices of the component securities (``a.m. settlement'' or ``p.m. settlement,'' respectively) or as a specified average, provided that the average index value must conform to the averaging parameters established by the Exchange.\8\ However, prior to the initiation of the exercise settlement values pilot, only a.m. settlements were permitted if a FLEX Index Option expired on, or within two business days of, a third Friday-of-the-month expiration (``Expiration Friday'').\9\ --------------------------------------------------------------------------- \8\ See Rules 24A.4(b)(3) and 24B.4(b)(3); see also Securities Exchange Act Release No. 31920 (February 24, 1993), 58 FR 12280 (March 3, 1993) (SR-CBOE-92-017). The Exchange has determined to limit the averaging parameters to three alternatives: The average of the opening and closing index values on the expiration date; the average of intra-day high and low index values on the expiration date; and the average of the opening, closing, and intra-day high and low index values on the expiration date. Any changes to the averaging parameters established by the Exchange would be announced to Trading Permit Holders via circular. \9\ For example, prior to the pilot, the exercise settlement value of a FLEX Index Option that expires on the Tuesday before Expiration Friday could have an a.m., p.m. or specified average settlement. However, the exercise settlement value of a FLEX Index Option that expires on the Wednesday before Expiration Friday could only have an a.m. settlement. --------------------------------------------------------------------------- Under the exercise settlement values pilot, this restriction on p.m. and specified average price settlements in FLEX Index Options was eliminated.\10\ The exercise settlement values pilot is currently set to expire on the earlier of May 3, 2016 or the date on which the pilot program is approved on a permanent basis. --------------------------------------------------------------------------- \10\ No change was necessary or requested with respect to FLEX Equity Options. Regardless of the expiration date, FLEX Equity Options are settled by physical delivery of the underlying. --------------------------------------------------------------------------- CBOE is proposing to extend the pilot program through the earlier of May 3, 2017 or the date on which the pilot program is approved on a permanent basis. CBOE believes the pilot program has been successful and well received by its Trading Permit Holders and the investing public for the period that it has been in operation as a pilot. In support of the proposed extension of the pilot program, and as required by the pilot program's Approval Order, the Exchange has submitted to the Securities and Exchange Commission (the ``Commission'') pilot program reports regarding the pilot, which detail the Exchange's experience with the program. Specifically, the Exchange provided the Commission with annual reports analyzing volume and open interest for each broad-based FLEX Index Options class overlying an Expiration Friday, p.m.-settled FLEX Index Options series.\11\ The annual reports also contained information and analysis of FLEX Index Options trading [[Page 26859]] patterns. The Exchange also provided the Commission, on a periodic basis, interim reports of volume and open interest. In providing the pilot reports to the Commission, the Exchange has requested confidential treatment of the pilot reports under the Freedom of Information Act (``FOIA'').\12\ The confidentiality of the pilot reports is subject to the provisions of FOIA. --------------------------------------------------------------------------- \11\ The annual reports also contained certain pilot period and pre-pilot period analyses of volume and open interest for Expiration Friday, a.m.-settled FLEX Index series and Expiration Friday Non- FLEX Index series overlying the same index as an Expiration Friday, p.m.-settled FLEX Index option. \12\ 5 U.S.C. 552. --------------------------------------------------------------------------- The Exchange believes there is sufficient investor interest and demand in the pilot program to warrant its extension. The Exchange believes that, for the period that the pilot has been in operation, the program has provided investors with additional means of managing their risk exposures and carrying out their investment objectives. Furthermore, the Exchange believes that it has not experienced any adverse market effects with respect to the pilot program, including any adverse market volatility effects that might occur as a result of large FLEX exercises in FLEX Option series that expire near Non-FLEX expirations and use a p.m. settlement (as discussed below). In that regard, based on the Exchange's experience in trading FLEX Options to date and over the pilot period, CBOE continues to believe that the restrictions on exercise settlement values are no longer necessary to insulate Non-FLEX expirations from the potential adverse market impacts of FLEX expirations.\13\ To the contrary, CBOE believes that the restriction actually places the Exchange at a competitive disadvantage to its OTC counterparts in the market for customized options, and unnecessarily limits market participants' ability to trade in an exchange environment that offers the added benefits of transparency, price discovery, liquidity, and financial stability. --------------------------------------------------------------------------- \13\ In further support, the Exchange also notes that the p.m. and specified average price settlements are already permitted for FLEX Index Options on any other business day except on, or within two business days of, Expiration Friday. The Exchange is not aware of any market disruptions or problems caused by the use of these settlement methodologies on these expiration dates (or on the expiration dates addressed under the pilot program). The Exchange is also not aware of any market disruptions or problems caused by the use of customized options in the over-the-counter (``OTC'') markets that expire on or near Expiration Friday and have a p.m. or specified average exercise settlement value. In addition, the Exchange believes the reasons for limiting expirations to a.m. settlement, which is something the SEC has imposed since the early 1990s for Non-FLEX Options, revolved around a concern about expiration pressure on the New York Stock Exchange (``NYSE'') at the close that are no longer relevant in today's market. Today, the Exchange believes stock exchanges are able to better handle volume. There are multiple primary listing and unlisted trading privilege (``UTP'') markets, and trading is dispersed among several exchanges and alternative trading systems. In addition, the Exchange believes that surveillance techniques are much more robust and automated. In the early 1990s, it was also thought by some that opening procedures allow more time to attract contra-side interest to reduce imbalances. The Exchange believes, however, that today, order flow is predominantly electronic and the ability to smooth out openings and closes is greatly reduced (e.g., market-on-close procedures work just as well as openings). Also, other markets, such as the NASDAQ Stock Exchange, do not have the same type of pre-opening imbalance disseminations as NYSE, so many stocks are not subject to the same procedures on Expiration Friday. In addition, the Exchange believes that NYSE has reduced the required time a specialist has to wait after disseminating a pre-opening indication. So, in this respect, the Exchange believes there is less time to react in the opening than in the close. Moreover, to the extent there may be a risk of adverse market effects attributable to p.m. settled options (or certain average price settled options related to the closing price) that would otherwise be traded in a non-transparent fashion in the OTC market, the Exchange continues to believe that such risk would be lessened by making these customized options eligible for trading in an exchange environment because of the added transparency, price discovery, liquidity, and financial stability available. --------------------------------------------------------------------------- The Exchange also notes that certain position limit, aggregation and exercise limit requirements continue to apply to FLEX Index Options in accordance with Rules 24A.7, Position Limits and Reporting Requirements, 24A.8, Exercise Limits, 24B.7, Position Limits and Reporting Requirements, and 24B.8, Exercise Limits. Additionally, all FLEX Options remain subject to the position reporting requirements in paragraph (a) of CBOE Rule 4.13, Reports Related to Position Limits.\14\ Moreover, the Exchange and its Trading Permit Holder organizations each have the authority, pursuant to CBOE Rule 12.10, Margin Required is Minimum, to impose additional margin as deemed advisable. CBOE continues to believe these existing safeguards serve sufficiently to help monitor open interest in FLEX Option series and significantly reduce any risk of adverse market effects that might occur as a result of large FLEX exercises in FLEX Option series that expire near Non-FLEX expirations and use a p.m. settlement. --------------------------------------------------------------------------- \14\ CBOE Rule 4.13(a) provides that ``[i]n a manner and form prescribed by the Exchange, each Trading Permit Holder shall report to the Exchange, the name, address, and social security or tax identification number of any customer who, acting alone, or in concert with others, on the previous business day maintained aggregate long or short positions on the same side of the market of 200 or more contracts of any single class of option contracts dealt in on the Exchange. The report shall indicate for each such class of options, the number of option contracts comprising each such position and, in the case of short positions, whether covered or uncovered.'' For purposes of Rule 4.13, the term ``customer'' in respect of any Trading Permit Holder includes ``the Trading Permit Holder, any general or special partner of the Trading Permit Holder, any officer or director of the Trading Permit Holder, or any participant, as such, in any joint, group or syndicate account with the Trading Permit Holder or with any partner, officer or director thereof.'' Rule 4.13(d). --------------------------------------------------------------------------- CBOE is also cognizant of the OTC market, in which similar restrictions on exercise settlement values do not apply. CBOE continues to believe that the pilot program is appropriate and reasonable and provides market participants with additional flexibility in determining whether to execute their customized options in an exchange environment or in the OTC market. CBOE continues to believe that market participants benefit from being able to trade these customized options in an exchange environment in several ways, including, but not limited to, enhanced efficiency in initiating and closing out positions, increased market transparency, and heightened contra-party creditworthiness due to the role of the Options Clearing Corporation as issuer and guarantor of FLEX Options. If, in the future, the Exchange proposes an additional extension of the pilot program, or should the Exchange propose to make the pilot program permanent, the Exchange will submit, along with any filing proposing such amendments to the pilot program, an annual report (addressing the same areas referenced above and consistent with the pilot program's Approval Order) to the Commission at least two months prior to the expiration date of the program. The Exchange will also continue, on a periodic basis, to submit interim reports of volume and open interest consistent with the terms of the exercise settlement values pilot program as described in the pilot program's Approval Order. All such pilot reports would continue to be provided by the Exchange along with a request for confidential treatment under FOIA.\15\ As noted in the pilot program's Approval Order, any positions established under the pilot program would not be impacted by the expiration of the pilot program.\16\ --------------------------------------------------------------------------- \15\ See supra note 7 [sic] and surrounding discussion. If the Exchange seeks permanent approval of the pilot program, the Exchange recognizes that certain information in the pilot reports may need to be made available on a public basis. \16\ For example, a position in a p.m.-settled FLEX Index Option series that expires on Expiration Friday in January 2018 could be established during the exercise settlement values pilot. If the pilot program were not extended (or made permanent), then the position could continue to exist. However, the Exchange notes that any further trading in the series would be restricted to transactions where at least one side of the trade is a closing transaction. See Approval Order at footnotes 9 and 10, supra note 2 [sic]. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the Act [[Page 26860]] and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.\17\ Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \18\ 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. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \19\ requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \17\ 15 U.S.C. 78f(b). \18\ 15 U.S.C. 78f(b)(5). \19\ Id. --------------------------------------------------------------------------- In particular, the Exchange believes that the proposed extension of the pilot program, which permits additional exercise settlement values, would provide greater opportunities for investors to manage risk through the use of FLEX Options. Further, the Exchange believes that it has not experienced any adverse effects from the operation of the pilot program, including any adverse market volatility effects that might occur as a result of large FLEX exercises in FLEX Option series that expire near Non-FLEX expirations and use a p.m. settlement. The Exchange also believes that the extension of the exercise settlement values pilot does not raise any unique regulatory concerns. In particular, although p.m. settlements may raise questions with the Commission, the Exchange believes that, based on the Exchange's experience in trading FLEX Options to date and over the pilot period, market impact and investor protection concerns will not be raised by this rule change. The Exchange also believes that the proposed rule change would continue to provide Trading Permit Holders and investors with additional opportunities to trade customized options in an exchange environment (which offers the added benefits of transparency, price discovery, liquidity, and financial stability as compared to the over-the-counter market) and subject to exchange-based rules, and investors would benefit as a result. B. Self-Regulatory Organization's Statement on Burden on Competition CBOE 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 believes there is sufficient investor interest and demand in the pilot program to warrant its extension. The Exchange believes that, for the period that the pilot has been in operation, the program has provided investors with additional means of managing their risk exposures and carrying out their investment objectives. Furthermore, the Exchange believes that it has not experienced any adverse market effects with respect to the pilot program, including any adverse market volatility effects that might occur as a result of large FLEX exercises in FLEX Option series that expire near Non-Flex expirations and use a p.m. settlement. CBOE believes that the restriction actually places the Exchange at a competitive disadvantage to its OTC counterparts in the market for customized options, and unnecessarily limits market participants' ability to trade in an exchange environment that offers the added benefits of transparency, price discovery, liquidity, and financial stability. Therefore, the Exchange does not believe that the proposed rule change will impose any burden on competition. 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 Because the proposed rule change does not (i) significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \20\ and Rule 19b-4(f)(6) thereunder.\21\ --------------------------------------------------------------------------- \20\ 15 U.S.C. 78s(b)(3)(A). \21\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires the Exchange to give the Commission written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \22\ normally does not become operative for 30 days after the date of filing. However, pursuant to Rule 19b-4(f)(6)(iii),\23\ the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has requested that the Commission waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Exchange states that such waiver will allow the Exchange to extend the pilot program prior to its expiration on May 3, 2016, and maintain the status quo, thereby reducing market disruption. --------------------------------------------------------------------------- \22\ 17 CFR 240.19b-4(f)(6). \23\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest. Waiver of the operative delay will allow the Exchange to extend the pilot program prior to its expiration on May 3, 2016, which will ensure that the program continues to operate uninterrupted. Therefore, the Commission hereby waives the 30-day operative delay and designates the proposed rule change to be operative upon filing with the Commission.\24\ --------------------------------------------------------------------------- \24\ For purposes only of waiving the operative delay for this proposal, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- 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 shall institute proceedings to determine whether the proposed rule should be approved or 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 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 [[Page 26861]] Send an email to [email protected]. Please include File Number SR-CBOE-2016-032 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-2016-032. 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-2016-032 and should be submitted on or before May 25, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\25\ --------------------------------------------------------------------------- \25\ 17 CFR 200.30-3(a)(12) and (59). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-10436 Filed 5-3-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 86 / Wednesday, May 4, 2016 / Notices 26857
SECURITIES AND EXCHANGE total burden of approximately 2,250 SECURITIES AND EXCHANGE
COMMISSION hours, based upon past submissions. COMMISSION
This figure is based on eighteen
Submission for OMB Review; [Release No. 34–77742; File No. SR–CBOE–
respondents, spending approximately 2016–032]
Comment Request 125 hours each per year. It is estimated
Upon Written Request, Copies Available that each respondent will submit Self-Regulatory Organizations;
From: Securities and Exchange approximately 250 responses. Chicago Board Options Exchange,
Commission, Office of FOIA Services, Commission staff estimates that the Incorporated; Notice of Filing and
100 F Street NE., Washington, DC average number of hours necessary to Immediate Effectiveness of a Proposed
20549–2736. comply with the requirements of Rule Rule Change Relating to FLEX Options
Extension: 19d–1 for each submission is 0.5 hours. Pilot Program
Rule 19d–1, SEC File No. 270–242, OMB The average cost per hour, per each April 29, 2016.
Control No. 3235–0206. submission is approximately $101. Pursuant to Section 19(b)(1) of the
Notice is hereby given that pursuant Therefore, it is estimated that the Securities Exchange Act of 1934
to the Paperwork Reduction Act of 1995 internal labor cost of compliance for all (‘‘Act’’),1 and Rule 19b–4 thereunder,2
(44 U.S.C. 3501 et seq.) (‘‘PRA’’), the respondents is approximately $227,250 notice is hereby given that on April 15,
Securities and Exchange Commission (18 respondents × 250 responses per 2016, Chicago Board Options Exchange,
(‘‘Commission’’) has submitted to the respondent × 0.5 hours per response × Incorporated (the ‘‘Exchange’’ or
Office of Management and Budget $101 per hour). ‘‘CBOE’’) filed with the Securities and
(‘‘OMB’’) a request for approval of The filing of notices pursuant to Rule Exchange Commission (‘‘Commission’’)
extension of the previously approved the proposed rule change as described
19d–1 is mandatory for the SROs, but
collection of information provided for in in Items I and II below, which Items
does not involve the collection of
Rule 19d–1 (17 CFR 240.19d–1) under have been prepared by the Exchange.
the Securities Exchange Act of 1934 (17 confidential information. Rule 19d–1
does not have a record retention The Exchange filed the proposal as a
U.S.C. 78a et seq.) (‘‘Exchange Act’’). ‘‘non-controversial’’ proposed rule
Rule 19d–1 prescribes the form and requirement.
change pursuant to Section
content of notices to be filed with the An agency may not conduct or 19(b)(3)(A)(iii) of the Act 3 and Rule
Commission by self-regulatory sponsor, and a person is not required to 19b–4(f)(6) thereunder.4 The
organizations (‘‘SROs’’) for which the respond to, a collection of information Commission is publishing this notice to
Commission is the appropriate under the PRA unless it displays a solicit comments on the proposed rule
regulatory agency concerning the currently valid OMB control number. change from interested persons.
following final SRO actions: (1)
Disciplinary actions with respect to any The public may view background I. Self-Regulatory Organization’s
person; (2) denial, bar, prohibition, or documentation for this information Statement of the Terms of Substance of
limitation of membership, participation collection at the following Web site, the Proposed Rule Change
or association with a member or of www.reginfo.gov. Comments should be The Exchange proposes to extend the
access to services offered by an SRO or directed to: (i) Desk Officer for the operation of its Flexible Exchange
member thereof; (3) summarily Securities and Exchange Commission, Options (‘‘FLEX Options’’) pilot
suspending a member, participant, or Office of Information and Regulatory program through May 3, 2017.5 The text
person associated with a member, or Affairs, Office of Management and of the proposed rule change is provided
summarily limiting or prohibiting any Budget, Room 10102, New Executive below.
persons with respect to access to or Office Building, Washington, DC 20503 (additions are italicized; deletions are
services offered by the SRO or a member or by sending an email to: [bracketed])
thereof; and (4) delisting a security. Shagufta_Ahmed@omb.eop.gov; and (ii)
The Rule enables the Commission to * * * * *
Pamela C. Dyson, Director/Chief Chicago Board Options Exchange,
obtain reports from the SROs containing Information Officer, Securities and Incorporated Rules
information regarding SRO Exchange Commission, c/o Remi Pavlik-
determinations to delist a security, * * * * *
Simon, 100 F Street NE., Washington, Rule 24A.4. Terms of FLEX Options
discipline members or associated DC 20549, or by sending an email to:
persons of members, deny membership No change.
PRA_Mailbox@sec.gov. Comments must
or participation or association with a
be submitted to OMB within 30 days of 1 15 U.S.C. 78s(b)(1).
member, and similar adjudicated
this notice. 2 17 CFR 240.19b–4.
findings. The Rule requires that such 3 15 U.S.C. 78s(b)(3)(A)(iii).
actions be promptly reported to the Dated: April 28, 2016. 4 17 CFR 240.19b–4(f)(6).
Commission. The Rule also requires that Robert W. Errett, 5 FLEX Options provide investors with the ability
the reports and notices supply sufficient Deputy Secretary. to customize basic option features including size,
information regarding the background, expiration date, exercise style, and certain exercise
[FR Doc. 2016–10364 Filed 5–3–16; 8:45 am] prices. FLEX Options can be FLEX Index Options
factual basis and issues involved in the or FLEX Equity Options. In addition, other products
BILLING CODE 8011–01–P
proceeding to enable the Commission: are permitted to be traded pursuant to the FLEX
(1) To determine whether the matter
asabaliauskas on DSK3SPTVN1PROD with NOTICES
trading procedures. For example, credit options are
should be called up for review on the eligible for trading as FLEX Options pursuant to the
FLEX rules in Chapters XXIVA and XXIVB. See
Commission’s own motion; and (2) to CBOE Rules 24A.1(e) and (f), 24A.4(b)(1) and (c)(1),
ascertain generally whether the SRO has 24B.1(f) and (g), 24B.4(b)(1) and (c)(1), and 29.18.
adequately carried out its The rules governing the trading of FLEX Options on
responsibilities under the Exchange Act. the FLEX Request for Quote (‘‘RFQ’’) System
platform are contained in Chapter XXIVA. The rules
It is estimated that approximately governing the trading of FLEX Options on the FLEX
eighteen respondents will utilize this Hybrid Trading System platform are contained in
application procedure annually, with a Chapter XXIVB.
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![26858 Federal Register / Vol. 81, No. 86 / Wednesday, May 4, 2016 / Notices
. . . Interpretations and Policies: Options.6 The Exchange has extended Exchange.8 However, prior to the
.01 FLEX Index Option PM Settlements the pilot period five times, which is initiation of the exercise settlement
Pilot Program: Notwithstanding currently set to expire on the earlier of values pilot, only a.m. settlements were
subparagraph (a)(2)(iv) above, for a May 3, 2016 or the date on which the permitted if a FLEX Index Option
pilot period ending the earlier of May pilot program is approved on a expired on, or within two business days
3, 201[6]7 or the date on which the permanent basis.7 The purpose of this of, a third Friday-of-the-month
pilot program is approved on a rule change filing is to extend the pilot expiration (‘‘Expiration Friday’’).9
permanent basis, a FLEX Index program through the earlier of May 3, Under the exercise settlement values
Option that expires on an Expiration 2017 or the date on which the pilot pilot, this restriction on p.m. and
Friday may have any exercise program is approved on a permanent specified average price settlements in
settlement value that is permissible basis. This filing simply seeks to extend FLEX Index Options was eliminated.10
pursuant to subparagraph (b)(3) the operation of the pilot program and The exercise settlement values pilot is
above. does not propose any substantive currently set to expire on the earlier of
.02 No change. changes to the pilot program. May 3, 2016 or the date on which the
Under Rules 24A.4, Terms of FLEX pilot program is approved on a
* * * * *
Options, and 24B.4, Terms of FLEX permanent basis.
Rule 24B.4. Terms of FLEX Options
Options, a FLEX Option may expire on CBOE is proposing to extend the pilot
No change. any business day specified as to day,
. . . Interpretations and Policies: program through the earlier of May 3,
month and year, not to exceed a 2017 or the date on which the pilot
.01 FLEX Index Option PM Settlements maximum term of fifteen years. In
Pilot Program: Notwithstanding program is approved on a permanent
addition, the exercise settlement value basis. CBOE believes the pilot program
subparagraph (a)(2)(iv) above, for a for a FLEX Index Option can be
pilot period ending the earlier of May has been successful and well received
specified as the index value determined by its Trading Permit Holders and the
3, 201[6]7 or the date on which the by reference to the reported level of the
pilot program is approved on a investing public for the period that it
index as derived from the opening or has been in operation as a pilot. In
permanent basis, a FLEX Index closing prices of the component
Option that expires on an Expiration support of the proposed extension of the
securities (‘‘a.m. settlement’’ or ‘‘p.m. pilot program, and as required by the
Friday may have any exercise settlement,’’ respectively) or as a
settlement value that is permissible pilot program’s Approval Order, the
specified average, provided that the Exchange has submitted to the
pursuant to subparagraph (b)(3) average index value must conform to the
above. Securities and Exchange Commission
averaging parameters established by the (the ‘‘Commission’’) pilot program
.02 No change.
reports regarding the pilot, which detail
* * * * * 6 Securities Exchange Act Release No. 61439
the Exchange’s experience with the
The text of the proposed rule change (January 28, 2010), 75 FR 5831 (February 4, 2010)
(SR–CBOE–2009–087) (‘‘Approval Order’’). The program. Specifically, the Exchange
is also available on the Exchange’s Web initial pilot period was set to expire on March 28, provided the Commission with annual
site (http://www.cboe.com/AboutCBOE/ 2011, which date was added to the rules in 2010. reports analyzing volume and open
CBOELegalRegulatoryHome.aspx), at See Securities Exchange Act Release No. 61676
interest for each broad-based FLEX
(March 9, 2010), 75 FR 13191 (March 18, 2010) (SR–
the Exchange’s Office of the Secretary, CBOE–2010–026). Index Options class overlying an
and at the Commission’s Public 7 See Securities Exchange Act Release Nos. 64110 Expiration Friday, p.m.-settled FLEX
Reference Room. (March 23 [sic], 2011), 76 FR 17463 (March 29, Index Options series.11 The annual
2011) (SR–CBOE–2011–024) (extending the pilot
II. Self-Regulatory Organization’s program through the earlier of March 30, 2012 or reports also contained information and
Statement of the Purpose of, and the date on which the pilot program is approved on analysis of FLEX Index Options trading
Statutory Basis for, the Proposed Rule the permanent basis); 66701 (March 30, 2012), 77
FR 20673 (April 5, 2012) (SR–CBOE–2012–027) 8 See Rules 24A.4(b)(3) and 24B.4(b)(3); see also
Change (extending the pilot through the earlier of Securities Exchange Act Release No. 31920
In its filing with the Commission, the November 2, 2012 or the date on which the pilot (February 24, 1993), 58 FR 12280 (March 3, 1993)
program is approved on a permanent basis); 68145 (SR–CBOE–92–017). The Exchange has determined
Exchange included statements (November 2, 2012), 77 FR 67044 (November 8, to limit the averaging parameters to three
concerning the purpose of and basis for 2012) (SR–CBOE–2012–102) (extending the pilot alternatives: The average of the opening and closing
the proposed rule change and discussed program through the earlier of November 2, 2013 or index values on the expiration date; the average of
any comments it received on the the date on which the pilot program is approved on intra-day high and low index values on the
a permanent basis); 70752 (October 24, 2013), 78 FR expiration date; and the average of the opening,
proposed rule change. The text of these 65023 (October 30, 2013) (SR–CBOE–2013–099) closing, and intra-day high and low index values on
statements may be examined at the (extending the pilot program through the earlier of the expiration date. Any changes to the averaging
places specified in Item IV below. The November 3, 2014 or the date on which the pilot parameters established by the Exchange would be
program is approved on a permanent basis); and
Exchange has prepared summaries, set 73460 (October 29, 2014), 79 FR 65464 (November
announced to Trading Permit Holders via circular.
9 For example, prior to the pilot, the exercise
forth in sections A, B, and C below, of 4, 2014) (SR–CBOE–2014–080) (extending the pilot
settlement value of a FLEX Index Option that
the most significant aspects of such program through the earlier of May 3, 2016 or the
expires on the Tuesday before Expiration Friday
statements. date on which the pilot program is approved on a
permanent basis). At the same time the permissible could have an a.m., p.m. or specified average
settlement. However, the exercise settlement value
A. Self-Regulatory Organization’s exercise settlement values pilot was established for
of a FLEX Index Option that expires on the
Statement of the Purpose of, and FLEX Index Options, the Exchange also established
a pilot program eliminating the minimum value size Wednesday before Expiration Friday could only
Statutory Basis for, the Proposed Rule have an a.m. settlement.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
requirements for all FLEX Options. See Approval
10 No change was necessary or requested with
Change Order, supra note 2 [sic]. The pilot program
eliminating the minimum value size requirements respect to FLEX Equity Options. Regardless of the
1. Purpose was extended twice pursuant to the same rule expiration date, FLEX Equity Options are settled by
filings that extended the permissible exercise physical delivery of the underlying.
On January 28, 2010, the Exchange settlement values (for the same extended periods) 11 The annual reports also contained certain pilot
received approval of a rule change that, and was approved on a permanent basis in a period and pre-pilot period analyses of volume and
among other things, established a pilot separate rule change filing. See id. and Securities open interest for Expiration Friday, a.m.-settled
Exchange Act Release No. 67624 (August 8, 2012), FLEX Index series and Expiration Friday Non-FLEX
program regarding permissible exercise 77 FR 48580 (August 14, 2012) (SR–CBOE–2012– Index series overlying the same index as an
settlement values for FLEX Index 040). Expiration Friday, p.m.-settled FLEX Index option.
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![Federal Register / Vol. 81, No. 86 / Wednesday, May 4, 2016 / Notices 26859
patterns. The Exchange also provided CBOE believes that the restriction expire near Non-FLEX expirations and
the Commission, on a periodic basis, actually places the Exchange at a use a p.m. settlement.
interim reports of volume and open competitive disadvantage to its OTC CBOE is also cognizant of the OTC
interest. In providing the pilot reports to counterparts in the market for market, in which similar restrictions on
the Commission, the Exchange has customized options, and unnecessarily exercise settlement values do not apply.
requested confidential treatment of the limits market participants’ ability to CBOE continues to believe that the pilot
pilot reports under the Freedom of trade in an exchange environment that program is appropriate and reasonable
Information Act (‘‘FOIA’’).12 The offers the added benefits of and provides market participants with
confidentiality of the pilot reports is transparency, price discovery, liquidity, additional flexibility in determining
subject to the provisions of FOIA. and financial stability. whether to execute their customized
The Exchange believes there is The Exchange also notes that certain options in an exchange environment or
sufficient investor interest and demand position limit, aggregation and exercise in the OTC market. CBOE continues to
in the pilot program to warrant its limit requirements continue to apply to believe that market participants benefit
extension. The Exchange believes that, FLEX Index Options in accordance with from being able to trade these
for the period that the pilot has been in Rules 24A.7, Position Limits and customized options in an exchange
operation, the program has provided Reporting Requirements, 24A.8, environment in several ways, including,
investors with additional means of Exercise Limits, 24B.7, Position Limits but not limited to, enhanced efficiency
managing their risk exposures and and Reporting Requirements, and 24B.8, in initiating and closing out positions,
carrying out their investment objectives. Exercise Limits. Additionally, all FLEX increased market transparency, and
Furthermore, the Exchange believes that Options remain subject to the position heightened contra-party
it has not experienced any adverse reporting requirements in paragraph (a) creditworthiness due to the role of the
market effects with respect to the pilot of CBOE Rule 4.13, Reports Related to Options Clearing Corporation as issuer
program, including any adverse market Position Limits.14 Moreover, the and guarantor of FLEX Options.
volatility effects that might occur as a Exchange and its Trading Permit Holder If, in the future, the Exchange
result of large FLEX exercises in FLEX organizations each have the authority, proposes an additional extension of the
Option series that expire near Non- pursuant to CBOE Rule 12.10, Margin pilot program, or should the Exchange
FLEX expirations and use a p.m. Required is Minimum, to impose propose to make the pilot program
settlement (as discussed below). additional margin as deemed advisable. permanent, the Exchange will submit,
In that regard, based on the CBOE continues to believe these along with any filing proposing such
Exchange’s experience in trading FLEX existing safeguards serve sufficiently to amendments to the pilot program, an
Options to date and over the pilot help monitor open interest in FLEX annual report (addressing the same
period, CBOE continues to believe that areas referenced above and consistent
Option series and significantly reduce
the restrictions on exercise settlement with the pilot program’s Approval
any risk of adverse market effects that
values are no longer necessary to Order) to the Commission at least two
might occur as a result of large FLEX
insulate Non-FLEX expirations from the months prior to the expiration date of
exercises in FLEX Option series that
potential adverse market impacts of the program. The Exchange will also
FLEX expirations.13 To the contrary, type of pre-opening imbalance disseminations as continue, on a periodic basis, to submit
NYSE, so many stocks are not subject to the same interim reports of volume and open
12 5 U.S.C. 552. procedures on Expiration Friday. In addition, the interest consistent with the terms of the
13 In further support, the Exchange also notes that Exchange believes that NYSE has reduced the exercise settlement values pilot program
the p.m. and specified average price settlements are required time a specialist has to wait after
already permitted for FLEX Index Options on any disseminating a pre-opening indication. So, in this as described in the pilot program’s
other business day except on, or within two respect, the Exchange believes there is less time to Approval Order. All such pilot reports
business days of, Expiration Friday. The Exchange react in the opening than in the close. Moreover, to would continue to be provided by the
is not aware of any market disruptions or problems the extent there may be a risk of adverse market Exchange along with a request for
caused by the use of these settlement methodologies effects attributable to p.m. settled options (or
on these expiration dates (or on the expiration dates certain average price settled options related to the confidential treatment under FOIA.15 As
addressed under the pilot program). The Exchange closing price) that would otherwise be traded in a noted in the pilot program’s Approval
is also not aware of any market disruptions or non-transparent fashion in the OTC market, the Order, any positions established under
problems caused by the use of customized options Exchange continues to believe that such risk would the pilot program would not be
in the over-the-counter (‘‘OTC’’) markets that expire be lessened by making these customized options
on or near Expiration Friday and have a p.m. or eligible for trading in an exchange environment impacted by the expiration of the pilot
specified average exercise settlement value. In because of the added transparency, price discovery, program.16
addition, the Exchange believes the reasons for liquidity, and financial stability available.
limiting expirations to a.m. settlement, which is 14 CBOE Rule 4.13(a) provides that ‘‘[i]n a manner 2. Statutory Basis
something the SEC has imposed since the early and form prescribed by the Exchange, each Trading The Exchange believes the proposed
1990s for Non-FLEX Options, revolved around a Permit Holder shall report to the Exchange, the
concern about expiration pressure on the New York name, address, and social security or tax
rule change is consistent with the Act
Stock Exchange (‘‘NYSE’’) at the close that are no identification number of any customer who, acting
15 See supra note 7 [sic] and surrounding
longer relevant in today’s market. Today, the alone, or in concert with others, on the previous
Exchange believes stock exchanges are able to better business day maintained aggregate long or short discussion. If the Exchange seeks permanent
handle volume. There are multiple primary listing positions on the same side of the market of 200 or approval of the pilot program, the Exchange
and unlisted trading privilege (‘‘UTP’’) markets, and more contracts of any single class of option recognizes that certain information in the pilot
trading is dispersed among several exchanges and contracts dealt in on the Exchange. The report shall reports may need to be made available on a public
alternative trading systems. In addition, the indicate for each such class of options, the number basis.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Exchange believes that surveillance techniques are of option contracts comprising each such position 16 For example, a position in a p.m.-settled FLEX
much more robust and automated. In the early and, in the case of short positions, whether covered Index Option series that expires on Expiration
1990s, it was also thought by some that opening or uncovered.’’ For purposes of Rule 4.13, the term Friday in January 2018 could be established during
procedures allow more time to attract contra-side ‘‘customer’’ in respect of any Trading Permit Holder the exercise settlement values pilot. If the pilot
interest to reduce imbalances. The Exchange includes ‘‘the Trading Permit Holder, any general program were not extended (or made permanent),
believes, however, that today, order flow is or special partner of the Trading Permit Holder, any then the position could continue to exist. However,
predominantly electronic and the ability to smooth officer or director of the Trading Permit Holder, or the Exchange notes that any further trading in the
out openings and closes is greatly reduced (e.g., any participant, as such, in any joint, group or series would be restricted to transactions where at
market-on-close procedures work just as well as syndicate account with the Trading Permit Holder least one side of the trade is a closing transaction.
openings). Also, other markets, such as the or with any partner, officer or director thereof.’’ See Approval Order at footnotes 9 and 10, supra
NASDAQ Stock Exchange, do not have the same Rule 4.13(d). note 2 [sic].
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![Federal Register / Vol. 81, No. 86 / Wednesday, May 4, 2016 / Notices 26861
• Send an email to rule-comments@ SUMMARY: The U.S. Small Business of operation that include most, if not all,
sec.gov. Please include File Number SR– Administration (SBA) announces the of the following elements:
CBOE–2016–032 on the subject line. 2016 Growth Accelerator Fund • Selective process to choose
Competition, pursuant to the America participating startups.
Paper Comments • Regular networking opportunities
Competes Act, to identify the nation’s
• Send paper comments in triplicate most innovative accelerators and similar offered to startups.
to Secretary, Securities and Exchange organizations and award them cash • Introductions to customers,
Commission, 100 F Street NE., prizes they may use to fund their partners, suppliers, advisory boards and
Washington, DC 20549–1090. operations costs and allow them to bring other players.
All submissions should refer to File startup companies to scale and new • High-growth and tech-driven
Number SR–CBOE–2016–032. This file ideas to life. startup mentorship and
number should be included on the commercialization assistance.
DATES: The submission period for
• Shared working environments
subject line if email is used. To help the entries begins 12:00 p.m. EDT, May 2,
focused on building a strong startup
Commission process and review your 2016 and ends June 3, 2016 at 11:59
community.
comments more efficiently, please use p.m. EDT. Winners will be announced • Resource sharing and co-working
only one method. The Commission will no later than August 24, 2016. arrangements for startups.
post all comments on the Commission’s FOR FURTHER INFORMATION CONTACT: • Opportunities to pitch ideas and
Internet Web site (http://www.sec.gov/ Nareg Sagherian, Office of Investment startups to investors along with other
rules/sro.shtml). Copies of the and Innovation, U.S. Small Business capital formation avenues to startups.
submission, all subsequent Administration, 409 Third Street SW., • Small amounts of angel money,
amendments, all written statements 6th Floor Washington, DC 20416, (202) seed capital or structured loans to
with respect to the proposed rule 205–7576, accelerators@sba.gov. startups.
change that are filed with the SUPPLEMENTARY INFORMATION: • Service to underserved
Commission, and all written communities, such as women, veterans,
communications relating to the Competition Details and economically disadvantaged
proposed rule change between the 1. Subject of Competition: The SBA is individuals.
Commission and any person, other than seeking to identify the nation’s most 3. Registration Process for
those that may be withheld from the innovative and promising small Participants: Competition participants
public in accordance with the business accelerators and incubators in must submit their 2016 Growth
provisions of 5 U.S.C. 552, will be order to infuse them with additional Accelerator Fund applications online
available for Web site viewing and resource capital that ultimately using the link designated for that
printing in the Commission’s Public stimulates the growth and development purpose on challenge.gov, either by
Reference Room, 100 F Street NE., of startups from within the filtering search criteria to ‘‘Small
Washington, DC 20549, on official entrepreneurial communities they serve. Business Administration’’ or going to
business days between the hours of For the purposes of this competition, sba.gov/accelerators, where the link will
10:00 a.m. and 3:00 p.m. Copies of the Growth Accelerators include be posted. In addition to the basic
filing also will be available for accelerators, incubators, co-working details collected in that short
inspection and copying at the principal startup communities, shared tinker- application form, contestants must also
office of the Exchange. All comments spaces or other models to accomplish complete and submit via challenge.gov
received will be posted without change; similar goals. Regardless of the specific a deck, similar to one that would be
the Commission does not edit personal model employed, Growth Accelerators used in a pitch competition, which must
identifying information from focus on helping entrepreneurs and address all of the items identified
submissions. You should submit only their startups speed the launch, growth below:
information that you wish to make and scale of their businesses. A broad
available publicly. All submissions Mission and Vision
set of models used to support start-ups
should refer to File Number SR–CBOE– will better serve the entire • What is your accelerator’s mission
2016–032 and should be submitted on entrepreneurial ecosystem. Whether an in one sentence?
or before May 25, 2016. accelerator is industry focused, • What specific elements make your
technology focused, product centric, accelerator model stand out?
For the Commission, by the Division of
Trading and Markets, pursuant to delegated cohort based or more long term, all are • What experiences prepare your
authority.25 valuable players in the nation’s high- team for this?
Robert W. Errett, growth entrepreneurial ecosystem that Impact
Deputy Secretary. ultimately creates jobs. • What gaps does or will your
[FR Doc. 2016–10436 Filed 5–3–16; 8:45 am] 2. Eligibility Rules for Participating in
accelerator fill?
BILLING CODE 8011–01–P
the Competition: This Competition is • What are the specifics of your
open only to private entities, such as model and how it will accomplish the
corporations or non-profit organizations above?
that are incorporated in and maintain a • For existing accelerators, what has
SMALL BUSINESS ADMINISTRATION primary place of business in the United been your success/metrics so far?
States. Entities that have an outstanding, • For existing accelerators, please
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Announcement of Growth Accelerator unresolved financial obligation to, or
Fund Competition explain your overall statistics of the
that are currently suspended or start-up life cycle?
AGENCY: U.S. Small Business debarred by, the federal government are
Administration. not eligible for this Competition. Implementation
ACTION: Notice.
Federal, state, local and tribal agencies • What is your plan for the prize
are also not eligible for this money if you win?
Competition. Additionally, participants • If you are an existing accelerator
25 17 CFR 200.30–3(a)(12) and (59). in this Competition must utilize models using the funds to scale up, provide
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Document Created: 2016-05-04 01:23:26
Document Modified: 2016-05-04 01:23:26
| 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 26857 |
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