81 FR 31277 - 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 96 (May 18, 2016)
Federal Register Volume 81, Issue 96 (May 18, 2016)
| Page Range | 31277-31279 | |
| FR Document | 2016-11645 |
[Federal Register Volume 81, Number 96 (Wednesday, May 18, 2016)] [Notices] [Pages 31277-31279] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-11645] [[Page 31277]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77822; File No. SR-CBOE-2016-043] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule To Amend the Fees Schedule May 12, 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 May 2, 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 and II, 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 the Frequent Trader Program. 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 the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend its Fees Schedule. On April 1, 2016, the Exchange adopted a program that offers transaction fee rebates to Customers (origin code ``C'') that meet certain volume thresholds in CBOE VIX Volatility Index options (``VIX options'') and S&P 500 Index options (``SPX''), weekly S&P 500 options (``SPXW'') and p.m.-settled SPX Index options (``SPXpm'') (collectively referred to as ``SPX options'') provided the Customer registers for the program (the ``Frequent Trader Program'' or ``Program'').\3\ --------------------------------------------------------------------------- \3\ See SR-CBOE-2016-023. --------------------------------------------------------------------------- To participate in the Frequent Trader Program, Customers register with the Exchange. Once registered, the Customer is provided a unique identification number (``FTID'') that can be affixed to each of its orders. The FTID allows the Exchange to identify and aggregate all electronic and manual trades during both the Regular Trading Hours and Extended Trading Hours sessions from that Customer for purposes of determining whether the Customer meets any of the various volume thresholds. The Customer has to provide its FTID to the Trading Permit Holder (``TPH'') submitting that Customer's order to the Exchange (executing agent'' [sic] or ``executing TPH'') and that executing TPH would have to enter the Customer's FTID on each of that Customer's orders.\4\ As there are instances in which a Customer's FTID was not or could not be, affixed to an order, the Exchange also provided executing TPHs the ability to submit to the exchange [sic] a form (the ``Frequent Trader Program--Volume Corrections Form'' or ``Corrections Form'') that would provide a mechanism for executing TPHs to identify transactions to the Exchange that should have been, but were not, associated with particular FTIDs. More specifically, the executing TPH can identify on the form the ``correct'' FTID that should be associated with a specific transaction, so that such volume is properly counted towards the appropriate Customer's aggregated volume for purposes of determining what tier, if any, the customer meets. Currently, the Fees Schedule provides that the Corrections Form must be submitted to the Exchange within 3 business days in order to ensure timely processing (``3 business day rule''). --------------------------------------------------------------------------- \4\ The Exchange notes that it is the responsibility of the Customer to request that the executing TPH affix its FTID to its order(s), and that it is voluntarily for the executing TPH to do so. --------------------------------------------------------------------------- The Exchange now proposes to provide that for the month of April 2016, it will not enforce the requirement that the Corrections Form be submitted within 3 business days and instead provide that the Corrections Form will be accepted through May 4, 2016 (by 5:00 p.m. CST), for all transactions, regardless of when in April the transaction(s) occurred. Specifically, the Exchange notes that a number of executing TPHs were unable to (i) affix FTIDs onto their Customers' orders and (ii) complete and submit the Corrections Form within 3 business days for their Customers registered in the Frequent Trader Program. Many TPHs are still familiarizing themselves with this new program and its requirements and as such the Exchange desires to give them additional time to implement their systems and procedures, including their systems and procedures related to completing and submitting the Corrections Form. Additionally, the Exchange does not wish to penalize the Customers who would miss out on rebates they would otherwise be entitled to if the deadline is not extended. Accordingly, the Exchange does not wish to enforce the 3 business day rule for April 2016. The Exchange believes providing additional time to submit Corrections Forms will ensure Customers are not unfairly deprived of any rebates that they are entitled to under the Frequent Trader Program for the month of April. 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.\5\ Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \6\ 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) \7\ requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b). \6\ 15 U.S.C. 78f(b)(5). \7\ Id. --------------------------------------------------------------------------- In particular, the Exchange believes not enforcing the 3 business day rule for [[Page 31278]] the month of April 2016 provides executing TPHs additional time to submit Corrections Forms, which removes impediments to and perfects the mechanism of a free and open market and a national market system, and protects investors and the public interest as it avoids penalizing Customers who would otherwise miss out on rebates they are entitled to under the Frequent Trader Program. Corrections Forms allow the Exchange to ensure that a customer's total volume at the end of the month accurately reflects their real trading volume, including volume from transactions that, upon submission of the order, did not reflect their FTID. As noted above, many TPHs are still in the process of familiarizing themselves with the new Frequent Trader Program and its requirements and do not yet have the systems or procedures in place to process the Corrections Forms within the timeframe the Exchange initially required. As such, the Exchange does not believe it would be fair to the Customers to enforce the 3 business day rule for the first month of the Frequent Trader Program (i.e., April 2016). Additionally, waiving the 3 business day rule for April 2016 eliminates confusion in that it gives the executing TPHs extra time to understand the requirements of the Program and implement policies, procedures, and system changes needed to properly take advantage of the program, which again removes impediments to and perfects the mechanism of a free and open market and a national market system, and protects investors and the public interest. 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 because the proposed change applies uniformly to all executing TPHs of Customer FTID orders and because it provides for a clear process to rectify scenarios in which a FTID(s) were not or could not be applied to Customer's order and where Corrections Forms were not submitted in a timely manner in April 2016. The Exchange believes that the proposed rule change will not cause an unnecessary burden on intermarket competition because it only applies to 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 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, it has become effective pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(6) thereunder.\9\ --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A). \9\ 17 CFR 240.19b-4(f)(6). Rule 19b-4(f)(6)(iii) requires the Exchange to provide the Commission with written notice of its intent to file the proposed rule change, along with a brief description and the 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 Commission has determined to waive the five business day requirement. --------------------------------------------------------------------------- A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the Act \10\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \11\ permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. Consistent with the protection of investors and the public interest, waiver of the 30-day operative delay will provide TPHs with additional time (to May 4) to submit Corrections Forms for participating Customer transactions that occurred in April under the new Frequent Trader Program, which should help TPHs acclimate to the new process for submitting their participating Customer trades to CBOE and thereby ensure that their April volume under the program accurately reflects their trading volume. Therefore, the Commission hereby waives the operative delay and designates the proposal operative upon filing.\12\ --------------------------------------------------------------------------- \10\ 17 CFR 240.19b-4(f)(6). \11\ 17 CFR 240.19b-4(f)(6)(iii). \12\ For purposes only of waiving the 30-day operative delay, the Commission has also 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 change 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 Send an email to [email protected]. Please include File Number SR-CBOE-2016-043 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-2016-043. 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 [[Page 31279]] information that you wish to make available publicly. All submissions should refer to File Number SR-CBOE-2016-043, and should be submitted on or before June 8, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-11645 Filed 5-17-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 96 / Wednesday, May 18, 2016 / Notices 31277
SECURITIES AND EXCHANGE transaction fee rebates to Customers be accepted through May 4, 2016 (by
COMMISSION (origin code ‘‘C’’) that meet certain 5:00 p.m. CST), for all transactions,
volume thresholds in CBOE VIX regardless of when in April the
[Release No. 34–77822; File No. SR–CBOE–
2016–043]
Volatility Index options (‘‘VIX options’’) transaction(s) occurred. Specifically, the
and S&P 500 Index options (‘‘SPX’’), Exchange notes that a number of
Self-Regulatory Organizations; weekly S&P 500 options (‘‘SPXW’’) and executing TPHs were unable to (i) affix
Chicago Board Options Exchange, p.m.-settled SPX Index options FTIDs onto their Customers’ orders and
Incorporated; Notice of Filing and (‘‘SPXpm’’) (collectively referred to as (ii) complete and submit the Corrections
Immediate Effectiveness of a Proposed ‘‘SPX options’’) provided the Customer Form within 3 business days for their
Rule To Amend the Fees Schedule registers for the program (the ‘‘Frequent Customers registered in the Frequent
Trader Program’’ or ‘‘Program’’).3 Trader Program. Many TPHs are still
May 12, 2016. To participate in the Frequent Trader familiarizing themselves with this new
Pursuant to Section 19(b)(1) of the Program, Customers register with the program and its requirements and as
Securities Exchange Act of 1934 (the Exchange. Once registered, the such the Exchange desires to give them
‘‘Act’’),1 and Rule 19b–4 thereunder,2 Customer is provided a unique additional time to implement their
notice is hereby given that on May 2, identification number (‘‘FTID’’) that can systems and procedures, including their
2016, Chicago Board Options Exchange, be affixed to each of its orders. The systems and procedures related to
Incorporated (the ‘‘Exchange’’ or FTID allows the Exchange to identify completing and submitting the
‘‘CBOE’’) filed with the Securities and and aggregate all electronic and manual Corrections Form. Additionally, the
Exchange Commission (the trades during both the Regular Trading Exchange does not wish to penalize the
‘‘Commission’’) the proposed rule Hours and Extended Trading Hours Customers who would miss out on
change as described in Items I and II, sessions from that Customer for rebates they would otherwise be entitled
which Items have been prepared by the purposes of determining whether the to if the deadline is not extended.
Exchange. The Commission is Customer meets any of the various Accordingly, the Exchange does not
publishing this notice to solicit volume thresholds. The Customer has to wish to enforce the 3 business day rule
comments on the proposed rule change provide its FTID to the Trading Permit for April 2016. The Exchange believes
from interested persons. Holder (‘‘TPH’’) submitting that providing additional time to submit
I. Self-Regulatory Organization’s Customer’s order to the Exchange Corrections Forms will ensure
Statement of the Terms of Substance of (executing agent’’ [sic] or ‘‘executing Customers are not unfairly deprived of
the Proposed Rule Change TPH’’) and that executing TPH would any rebates that they are entitled to
have to enter the Customer’s FTID on under the Frequent Trader Program for
The Exchange proposes to amend the the month of April.
Frequent Trader Program. The text of each of that Customer’s orders.4 As
the proposed rule change is available on there are instances in which a 2. Statutory Basis
the Exchange’s Web site (http:// Customer’s FTID was not or could not
The Exchange believes the proposed
www.cboe.com/AboutCBOE/ be, affixed to an order, the Exchange
rule change is consistent with the
CBOELegalRegulatoryHome.aspx), at also provided executing TPHs the
Securities Exchange Act of 1934 (the
the Exchange’s Office of the Secretary, ability to submit to the exchange [sic] a
‘‘Act’’) and the rules and regulations
and at the Commission’s Public form (the ‘‘Frequent Trader Program—
thereunder applicable to the Exchange
Reference Room. Volume Corrections Form’’ or
and, in particular, the requirements of
‘‘Corrections Form’’) that would provide
II. Self-Regulatory Organization’s Section 6(b) of the Act.5 Specifically,
a mechanism for executing TPHs to
Statement of the Purpose of, and the Exchange believes the proposed rule
identify transactions to the Exchange
Statutory Basis for, the Proposed Rule change is consistent with the Section
that should have been, but were not,
Change 6(b)(5) 6 requirements that the rules of
associated with particular FTIDs. More
an exchange be designed to prevent
In its filing with the Commission, the specifically, the executing TPH can
fraudulent and manipulative acts and
Exchange included statements identify on the form the ‘‘correct’’ FTID
practices, to promote just and equitable
concerning the purpose of and basis for that should be associated with a specific
principles of trade, to foster cooperation
the proposed rule change and discussed transaction, so that such volume is
and coordination with persons engaged
any comments it received on the properly counted towards the
in regulating, clearing, settling,
proposed rule change. The text of these appropriate Customer’s aggregated
processing information with respect to,
statements may be examined at the volume for purposes of determining
and facilitating transactions in
places specified in Item IV below. The what tier, if any, the customer meets.
securities, to remove impediments to
Exchange has prepared summaries, set Currently, the Fees Schedule provides
and perfect the mechanism of a free and
forth in sections A, B, and C below, of that the Corrections Form must be
open market and a national market
the most significant aspects of such submitted to the Exchange within 3
system, and, in general, to protect
statements. business days in order to ensure timely
investors and the public interest.
processing (‘‘3 business day rule’’).
A. Self-Regulatory Organization’s Additionally, the Exchange believes the
The Exchange now proposes to
Statement of the Purpose of, and the proposed rule change is consistent with
provide that for the month of April
Statutory Basis for, the Proposed Rule the Section 6(b)(5) 7 requirement that
2016, it will not enforce the requirement
Change the rules of an exchange not be designed
that the Corrections Form be submitted
sradovich on DSK3TPTVN1PROD with NOTICES
to permit unfair discrimination between
1. Purpose within 3 business days and instead
customers, issuers, brokers, or dealers.
The Exchange proposes to amend its provide that the Corrections Form will
In particular, the Exchange believes
Fees Schedule. On April 1, 2016, the 3 See
not enforcing the 3 business day rule for
SR–CBOE–2016–023.
Exchange adopted a program that offers 4 The Exchange notes that it is the responsibility
5 15 U.S.C. 78f(b).
of the Customer to request that the executing TPH
1 15 U.S.C. 78s(b)(1). 6 15 U.S.C. 78f(b)(5).
affix its FTID to its order(s), and that it is
2 17 CFR 240.19b–4. voluntarily for the executing TPH to do so. 7 Id.
VerDate Sep<11>2014 17:10 May 17, 2016 Jkt 238001 PO 00000 Frm 00054 Fmt 4703 Sfmt 4703 E:\FR\FM\18MYN1.SGM 18MYN1](https://thefederalregister.org/doc/81_FR_31373/page/1.svg)
![Federal Register / Vol. 81, No. 96 / Wednesday, May 18, 2016 / Notices 31279
information that you wish to make Voluntary Professional series] at one[a particular] price[ or
available publicly. All submissions (fff) The term ‘‘Voluntary prices, he shall, at the next lower
should refer to File Number SR–CBOE– Professional’’ means any person or (higher) price at which a Trading Permit
2016–043, and should be submitted on entity that is not a broker or dealer in Holder other than the Order Book
or before June 8, 2016. securities that elects, in writing, to be Official is bidding (offering),] will have
For the Commission, by the Division of treated in the same manner as a broker priority [in] over all other orders and
Trading and Markets, pursuant to delegated or dealer in securities for purposes of quotes, except public customer orders
authority.13 Rules 6.2A, 6.2B, 6.8C, 6.9, 6.13A, resting in the book, to buy [purchasing
Robert W. Errett, 6.13B, 6.25, 6.45, 6.45A (except for ](sell[ing]) up to the [equivalent]same
Deputy Secretary. Interpretation and Policy .02), 6.45B number of [option] contracts of those
[FR Doc. 2016–11645 Filed 5–17–16; 8:45 am] (except for Interpretation and Policy remaining from the same order or offer
.02), 6.47, 6.53C(c)(ii), 6.53C(d)(v), (bid)[series that he purchased (sold)] at
BILLING CODE 8011–01–P
subparagraphs (b) and (c) under the next lower (higher[ (lower]) price[ or
Interpretation and Policy .06 to Rule prices, but only if his bid (offer) is made
SECURITIES AND EXCHANGE 6.53C, 6.74 (except Voluntary promptly and the purchase (sale) so
COMMISSION Professional orders may be considered effected represents the opposite side of
public customer orders subject to a transaction with the same order or
facilitation under paragraphs (b) and offer (bid) as the earlier purchase or
[Release No. 34–77823; File No. SR–CBOE–
(d)), 6.74A, 6.74B, 8.13, 8.15(d), 8.87, purchases (sale or sales). This paragraph
2016–034]
24.19, 43.1, 44.4, 44.14, and for only applies to transactions effected in
Self-Regulatory Organizations; cancellation fee treatment. The open outcry].
Chicago Board Options Exchange, Voluntary Professional designation is (b) [Purchase or sale]Split-Price
Incorporated; Notice of Filing and not available in Hybrid 3.0 classes. [p]Priority for O[o]rders or Offers (Bids)
Immediate Effectiveness of a Proposed of 100 or More [c]Contracts[ or more]. If
Rule Change Relating to Split-Price Professional an order or offer (bid) of 100 or more
Priority (ggg) The term ‘‘Professional’’ means contracts of a series is represented to the
any person or entity that (i) is not a crowd, a Trading Permit Holder that
May 12, 2016. broker or dealer in securities, and (ii) buys[purchases] (sells) 50[fifty] or more
Pursuant to Section 19(b)(1) of the places more than 390 orders in listed of the [option ]contracts of that order or
Securities Exchange Act of 1934 options per day on average during a offer (bid)[a particular series] at one[a
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 calendar month for its own beneficial particular] price [or prices, he shall, at
notice is hereby given that on May 6, account(s). A Professional will be the next lower (higher) price]will have
2016, Chicago Board Options Exchange, treated in the same manner as a broker priority [in]over all other orders and
Incorporated (the ‘‘Exchange’’ or or dealer in securities for purposes of quotes to buy [purchasing ](sell[ing]) up
‘‘CBOE’’) filed with the Securities and Rules 6.2A, 6.2B, 6.8C, 6.9, 6.13A, to the [equivalent ]same number of
Exchange Commission (‘‘Commission’’) 6.13B, 6.25, 6.45, 6.45A (except for [option ]contracts of those remaining
the proposed rule change as described Interpretation and Policy .02), 6.45B from the same [series that he purchased
in Items I and II below, which Items (except for Interpretation and Policy (sold)]order or offer (bid) at the next
have been prepared by the Exchange. .02), 6.47, 6.53C(c)(ii), 6.53C(d)(v), lower (higher[ (lower]) price[ or prices,
The Commission is publishing this subparagraphs (b) and (c) under but only if his bid (offer) is made
notice to solicit comments on the Interpretation and Policy .06 to Rule promptly and the purchase (sale) so
proposed rule change from interested 6.53C, 6.74 (except Professional orders effected represents the opposite side of
persons. may be considered public customer a transaction with the same order or
orders subject to facilitation under offer (bid) as the earlier purchase or
I. Self-Regulatory Organization’s purchases (sale or sales)]. The Exchange
paragraphs (b) and (d)), 6.74A, 6.74B,
Statement of the Terms of Substance of may increase the [‘‘]minimum
8.13, 8.15(d), 8.87, 24.19, 43.1, 44.4,
the Proposed Rule Change qualifying [order ]size[’’ above] of 100
44.14. The Professional designation is
The Exchange proposes to amend its not available in Hybrid 3.0 classes. All contracts on a class-by-class basis[.],
rules related to split-price priority. The Professional orders shall be marked [Announcements regarding]which
text of the proposed rule change is with the appropriate origin code as changes [to the minimum qualifying
provided below. determined by the Exchange. order size shall be made]the Exchange
. . . Interpretations and Policies: will announce via Regulatory Circular.[
(additions are italicized; deletions are This paragraph only applies to
[bracketed]) .01 No change.
transactions effected in open outcry.]
* * * * * (hhh)—(sss) No change. (c) Two or [m]More Trading Permit
. . . Interpretations and Policies: Holders [e]Entitled to [p]Priority. If the
Chicago Board Options Exchange,
Incorporated Rules .01—.05 No change. bids or offers of two or more Trading
* * * * * Permit Holders are both entitled to split-
* * * * * price priority[ in accordance with
Rule 6.47. Priority on Split-Price paragraph (a) or paragraph (b)], it
Rule 1.1. Definitions Transactions Occurring in Open Outcry [shall]will be afforded [them insofar
sradovich on DSK3TPTVN1PROD with NOTICES
When used in these Rules, unless the (a) [Purchase or sale]Split-Price as]to the extent practicable[,] on a pro-
context otherwise requires: [p]Priority. If an order or offer (bid) for rata basis.
(a)–(eee) No change. any number of contracts of a series is (d) Conditions. Split-price priority is
represented to the crowd, a Trading subject to the following:
13 17 CFR 200.30–3(a)(12). Permit Holder that buys [purchases] (i) The priority is available for open
1 15 U.S.C. 78s(b)(1). (sells) one or more [option ]contracts of outcry transactions only and does not
2 17 CFR 240.19b–4. that order or offer (bid)[a particular apply to complex orders.
VerDate Sep<11>2014 17:10 May 17, 2016 Jkt 238001 PO 00000 Frm 00056 Fmt 4703 Sfmt 4703 E:\FR\FM\18MYN1.SGM 18MYN1](https://thefederalregister.org/doc/81_FR_31373/page/3.svg)
Document Created: 2016-05-18 00:05:50
Document Modified: 2016-05-18 00:05:50
| 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 31277 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR