81 FR 46719 - Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees as They Apply to the Equity Options Platform

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 137 (July 18, 2016)

Page Range		46719-46721
FR Document		2016-16848
Federal Register, Volume 81 Issue 137 (Monday, July 18, 2016)
[Federal Register Volume 81, Number 137 (Monday, July 18, 2016)]
[Notices]
[Pages 46719-46721]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-16848]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78304; File No. SR-BatsEDGX-2016-27]


Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change Related 
to Fees as They Apply to the Equity Options Platform

July 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 July 1, 2016, Bats EDGX Exchange, Inc. (the ``Exchange'' or 
``EDGX'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II 
and III below, which Items have been prepared by the Exchange. The 
Exchange has designated the proposed rule change as one establishing or 
changing a member due, fee, or other charge imposed by the Exchange 
under section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) 
thereunder,\4\ which renders the proposed rule change effective upon 
filing with the Commission. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange filed a proposal to amend the fee schedule applicable 
to Members \5\ and non-members of the Exchange pursuant to EDGX Rules 
15.1(a) and (c).
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    \5\ The term ``Member'' is defined as ``any registered broker or 
dealer that has been admitted to membership in the Exchange.'' See 
Exchange Rule 1.5(n).
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    The text of the proposed rule change is available at the Exchange's 
Web site at www.batstrading.com, at the principal office of the 
Exchange, 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 parts of such 
statements.

(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend its fee schedule for its equity 
options platform (``EDGX Options'') to: (1) Modify the criteria to 
qualify for the Customer Volume Tier 1 under footnote 1; and (2) delete 
the NBBO Setter/Joiner Tier under footnote 3.
Customer Volume Tier 1
    In addition to the standard rebate provided to all Customer \6\ 
orders, the Exchange offers six separate Customer Volume Tiers under 
footnote 1, each providing an enhanced rebate ranging from $0.10 to 
$0.21 [sic] per contract to Customer orders that yield fee codes PC \7\ 
or NC \8\ upon satisfying the respective tier's monthly volume 
criteria. Pursuant to Customer Volume Tier 1, the lowest volume tier, a 
Member currently receives a rebate of $0.10 per contract where the 
Member has an ADV \9\ in Customer orders equal to or greater than 0.20% 
of average TCV.\10\ In order to further incentive the entry of Customer 
orders, the Exchange proposes

[[Page 46720]]

to ease the criteria necessary to qualify for the Customer Volume Tier 
1 by reducing the tier's ADV requirement. Specifically, to receive an 
enhanced rebate of $0.10 per contract, Members must have an ADV in 
Customer orders equal to or greater than 0.15% of average TCV, rather 
than 0.20% of TCV as required today.
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    \6\ ``Customer'' applies to any transaction identified by a 
Member for clearing in the Customer range at the OCC, excluding any 
transaction for a Broker Dealer or a ``Professional'' as defined in 
Exchange Rule 16.1. See the Exchange's fee schedule.
    \7\ Fee code PC is yielded to Customer orders in Penny Pilot 
Securities. See the Exchange's fee schedule.
    \8\ Fee code NC is yielded to Customer orders in Non-Penny Pilot 
Securities. See the Exchange's fee schedule.
    \9\ ``ADV'' means average daily volume calculated as the number 
of contracts added or removed, combined, per day. See the Exchange's 
fee schedule.
    \10\ ``TCV'' means total consolidated volume calculated as the 
volume reported by all exchanges to the consolidated transaction 
reporting plan for the month for which the fees apply, excluding 
volume on any day that the Exchange experiences an Exchange System 
Disruption and on any day with a scheduled early market close. See 
the Exchange's fee schedule.
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NBBO Setter/Joiner Tier
    The NBBO Setter/Joiner Tier was adopted to incentivize Market 
Makers on EDGX Options to enter quotations at the National Best Bid and 
Offer (``NBBO'') by providing an additional rebate of $0.02 per 
contract to Market Maker \11\ orders that added liquidity and 
established a new NBBO or joined the existing NBBO when EDGX Options is 
not already at the NBBO. The Exchange is proposing to eliminate the 
tier because the rebate has not achieved the desired effect, despite 
being designed to incentivize Members to add liquidity that sets or 
joins the Exchange to the NBBO. As such, the Exchange is proposing to 
eliminate the text in footnote three related to the NBBO Setter and 
Joiner Tier. In connection with this change the Exchange proposes to 
remove footnote 3 to fee codes NM \12\ and PM.\13\
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    \11\ ``Market Maker'' applies to any transaction identified by a 
Member for clearing in the Market Maker range at the OCC, where such 
Member is registered with the Exchange as a Market Maker as defined 
in Rule 16.1(a)(37). See the Exchange's fee schedule.
    \12\ Fee code NM is yielded to Market Maker orders in Non-Penny 
Pilot Securities. See the Exchange's fee schedule.
    \13\ Fee code PM is yielded to Market Maker orders in Non-Penny 
[sic] Pilot Securities. See the Exchange's fee schedule.
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Implementation Date
    The Exchange proposes to implement these amendments to its fee 
schedule on July 1, 2016.
2. Statutory Basis
    The Exchange believes that the proposed rule changes are consistent 
with the requirements of the Act and the rules and regulations 
thereunder that are applicable to a national securities exchange, and, 
in particular, with the requirements of section 6 of the Act.\14\ 
Specifically, the Exchange believes that the proposed rule changes are 
consistent with section 6(b)(4) of the Act,\15\ in that it provides for 
the equitable allocation of reasonable dues, fees and other charges 
among members and other persons using any facility or system which the 
Exchange operates or controls.
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    \14\ 15 U.S.C. 78f.
    \15\ 15 U.S.C. 78f(b)(4).
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Customer Volume Tier 1
    The Exchange believes that the proposed modifications to the 
Customer Volume Tier 1 is reasonable, fair and equitable, and non-
discriminatory. Volume-based rebates such as those currently maintained 
on the Exchange have been widely adopted by options exchanges and are 
equitable because they are open to all Members on an equal basis and 
provide additional benefits or discounts that are reasonably related to 
the value of an exchange's market quality associated with higher levels 
of market activity, such as higher levels of liquidity provision and/or 
growth patterns, and introduction of higher volumes of orders into the 
price and volume discovery processes. The proposed modification to ease 
the criteria required to qualify for current Customer Volume Tier 1 is 
intended to incentivize Members to send additional Customer orders to 
the Exchange in an effort to qualify for the enhanced rebate made 
available by the tier.
NBBO Setter and Joiner Tiers
    The Exchange believes that the proposed elimination of the NBBO 
Setter and Joiner Tier represents an equitable allocation of reasonable 
dues, fees, and other charges among Members and other persons using its 
facilities because, as described above, the additional rebates offered 
under these tiers are not affecting Members' behavior in the manner 
originally conceived by the Exchange. While the Exchange acknowledges 
the benefit of Members entering orders that set or join the NBBO, the 
Exchange has generally determined that it is providing additional 
rebates for liquidity that would be added on the Exchange regardless of 
whether the tiers existed. By paying these rebates, the Exchange is not 
only offering rebates for orders that would set or join the NBBO 
without being incentivized to do so, but also missing out on the 
opportunity to offer other rebates or reduced fees that could 
incentivize other behavior that would enhance market quality on the 
Exchange, which would benefit all Members. As such, the Exchange also 
believes that the proposed elimination of the NBBO Setter and Joiner 
Tier would be non-discriminatory in that it currently applies equally 
to all Members and, upon elimination, would no longer be available to 
any Members. Further, it will allow the Exchange to explore other ways 
in which it may enhance market quality for all Members.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes the proposed amendments to its fee schedule 
would not impose any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act.
Customer Volume Tier 1
    The Exchange does not believe that the proposed change represents a 
significant departure from previous pricing offered by the Exchange or 
pricing offered by the Exchange's competitors. Rather, the proposal is 
a competitive proposal that is seeking to further the growth of the 
Exchange. The Exchange has structured the proposed amendment to the 
tier to attract certain additional volume in Customer orders, however, 
the Exchange believes that its pricing for all capacities is 
competitive with that offered by other options exchanges. Additionally, 
Members may opt to disfavor the Exchange's pricing if they believe that 
alternatives offer them better value. Accordingly, the Exchange does 
not believe that the proposed change will impair the ability of Members 
or competing venues to maintain their competitive standing in the 
financial markets.
NBBO Setter and Joiner Tier
    The Exchange does not believe that its proposal to eliminate the 
NBBO Setter and Joiner Tier would burden competition, but, rather, 
enhance the Exchange's ability to compete with other market centers. As 
described above, the Exchange believes that it is offering enhanced 
rebates for orders that would be submitted to the Exchange without the 
enhanced rebate, which prevents the Exchange from being able to offer 
other rebates or reduced fees that might be able to enhance market 
quality to the benefit of all Members. As such, eliminating the NBBO 
Setter and Joiner Tier will allow the Exchange other opportunities to 
enhance market quality on the Exchange and ultimately, better compete 
with other market centers.

(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received From Members, Participants or Others

    The Exchange has not solicited, and does not intend to solicit, 
comments on this proposed rule change. The Exchange has not received 
any written comments from members or other interested parties.

[[Page 46721]]

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to section 
19(b)(3)(A) of the Act \16\ and paragraph (f) of Rule 19b-4 
thereunder.\17\ 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.
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    \16\ 15 U.S.C. 78s(b)(3)(A).
    \17\ 17 CFR 240.19b-4(f).
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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 Comments

     Use 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-BatsEDGX-2016-27 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-BatsEDGX-2016-27. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549, on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of such filing will also 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-BatsEDGX-2016-27 and should 
be submitted on or before August 8, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-16848 Filed 7-15-16; 8:45 am]
 BILLING CODE 8011-01-P
46720 Federal Register / Vol. 81, No. 137 / Monday, July 18, 2016 / Notices

to ease the criteria necessary to qualify which the Exchange operates or (B) Self-Regulatory Organization’s
for the Customer Volume Tier 1 by controls. Statement on Burden on Competition
reducing the tier’s ADV requirement.
Customer Volume Tier 1 The Exchange believes the proposed
Specifically, to receive an enhanced
rebate of $0.10 per contract, Members The Exchange believes that the amendments to its fee schedule would
must have an ADV in Customer orders proposed modifications to the Customer not impose any burden on competition
equal to or greater than 0.15% of Volume Tier 1 is reasonable, fair and that is not necessary or appropriate in
average TCV, rather than 0.20% of TCV equitable, and non-discriminatory. furtherance of the purposes of the Act.
as required today. Volume-based rebates such as those Customer Volume Tier 1
currently maintained on the Exchange
NBBO Setter/Joiner Tier have been widely adopted by options The Exchange does not believe that
The NBBO Setter/Joiner Tier was exchanges and are equitable because the proposed change represents a
adopted to incentivize Market Makers they are open to all Members on an significant departure from previous
on EDGX Options to enter quotations at equal basis and provide additional pricing offered by the Exchange or
the National Best Bid and Offer benefits or discounts that are reasonably pricing offered by the Exchange’s
(‘‘NBBO’’) by providing an additional related to the value of an exchange’s competitors. Rather, the proposal is a
rebate of $0.02 per contract to Market market quality associated with higher competitive proposal that is seeking to
Maker 11 orders that added liquidity and levels of market activity, such as higher further the growth of the Exchange. The
established a new NBBO or joined the levels of liquidity provision and/or Exchange has structured the proposed
existing NBBO when EDGX Options is growth patterns, and introduction of amendment to the tier to attract certain
not already at the NBBO. The Exchange higher volumes of orders into the price additional volume in Customer orders,
is proposing to eliminate the tier and volume discovery processes. The however, the Exchange believes that its
because the rebate has not achieved the proposed modification to ease the pricing for all capacities is competitive
desired effect, despite being designed to criteria required to qualify for current with that offered by other options
incentivize Members to add liquidity Customer Volume Tier 1 is intended to
exchanges. Additionally, Members may
that sets or joins the Exchange to the incentivize Members to send additional
opt to disfavor the Exchange’s pricing if
NBBO. As such, the Exchange is Customer orders to the Exchange in an
they believe that alternatives offer them
proposing to eliminate the text in effort to qualify for the enhanced rebate
made available by the tier. better value. Accordingly, the Exchange
footnote three related to the NBBO does not believe that the proposed
Setter and Joiner Tier. In connection NBBO Setter and Joiner Tiers change will impair the ability of
with this change the Exchange proposes Members or competing venues to
to remove footnote 3 to fee codes NM 12 The Exchange believes that the
proposed elimination of the NBBO maintain their competitive standing in
and PM.13 the financial markets.
Setter and Joiner Tier represents an
Implementation Date equitable allocation of reasonable dues, NBBO Setter and Joiner Tier
fees, and other charges among Members
The Exchange proposes to implement and other persons using its facilities The Exchange does not believe that its
these amendments to its fee schedule on because, as described above, the proposal to eliminate the NBBO Setter
July 1, 2016. additional rebates offered under these and Joiner Tier would burden
2. Statutory Basis tiers are not affecting Members’ competition, but, rather, enhance the
behavior in the manner originally Exchange’s ability to compete with
The Exchange believes that the conceived by the Exchange. While the other market centers. As described
proposed rule changes are consistent Exchange acknowledges the benefit of above, the Exchange believes that it is
with the requirements of the Act and the Members entering orders that set or join offering enhanced rebates for orders that
rules and regulations thereunder that the NBBO, the Exchange has generally would be submitted to the Exchange
are applicable to a national securities determined that it is providing without the enhanced rebate, which
exchange, and, in particular, with the additional rebates for liquidity that prevents the Exchange from being able
requirements of section 6 of the Act.14 would be added on the Exchange to offer other rebates or reduced fees
Specifically, the Exchange believes that regardless of whether the tiers existed. that might be able to enhance market
the proposed rule changes are consistent By paying these rebates, the Exchange is quality to the benefit of all Members. As
with section 6(b)(4) of the Act,15 in that not only offering rebates for orders that such, eliminating the NBBO Setter and
it provides for the equitable allocation would set or join the NBBO without Joiner Tier will allow the Exchange
of reasonable dues, fees and other being incentivized to do so, but also other opportunities to enhance market
charges among members and other missing out on the opportunity to offer quality on the Exchange and ultimately,
persons using any facility or system other rebates or reduced fees that could
better compete with other market
incentivize other behavior that would
centers.
11 ‘‘Market Maker’’ applies to any transaction enhance market quality on the
identified by a Member for clearing in the Market Exchange, which would benefit all (C) Self-Regulatory Organization’s
Maker range at the OCC, where such Member is Members. As such, the Exchange also Statement on Comments on the
registered with the Exchange as a Market Maker as
believes that the proposed elimination
asabaliauskas on DSK3SPTVN1PROD with NOTICES

defined in Rule 16.1(a)(37). See the Exchange’s fee Proposed Rule Change Received From
schedule. of the NBBO Setter and Joiner Tier Members, Participants or Others
12 Fee code NM is yielded to Market Maker orders would be non-discriminatory in that it
in Non-Penny Pilot Securities. See the Exchange’s currently applies equally to all Members The Exchange has not solicited, and
fee schedule. and, upon elimination, would no longer does not intend to solicit, comments on
13 Fee code PM is yielded to Market Maker orders
be available to any Members. Further, it this proposed rule change. The
in Non-Penny [sic] Pilot Securities. See the
Exchange’s fee schedule. will allow the Exchange to explore other Exchange has not received any written
14 15 U.S.C. 78f. ways in which it may enhance market comments from members or other
15 15 U.S.C. 78f(b)(4). quality for all Members. interested parties.

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Federal Register / Vol. 81, No. 137 / Monday, July 18, 2016 / Notices 46721

III. Date of Effectiveness of the inspection and copying at the principal II. Self-Regulatory Organization’s
Proposed Rule Change and Timing for office of the Exchange. All comments Statement of the Purpose of, and
Commission Action received will be posted without change; Statutory Basis for, the Proposed Rule
The foregoing rule change has become the Commission does not edit personal Change
effective pursuant to section 19(b)(3)(A) identifying information from
submissions. You should submit only In its filing with the Commission, the
of the Act 16 and paragraph (f) of Rule
Exchange included statements
19b–4 thereunder.17 At any time within information that you wish to make
concerning the purpose of and basis for
60 days of the filing of the proposed rule available publicly. All submissions
the proposed rule change and discussed
change, the Commission summarily may should refer to File Number SR–
temporarily suspend such rule change if any comments it received on the
BatsEDGX–2016–27 and should be proposed rule change. The text of these
it appears to the Commission that such submitted on or before August 8, 2016.
action is necessary or appropriate in the statements may be examined at the
public interest, for the protection of For the Commission, by the Division of places specified in Item IV below. The
investors, or otherwise in furtherance of Trading and Markets, pursuant to delegated Exchange has prepared summaries, set
authority.18 forth in sections A, B, and C below, of
the purposes of the Act.
Robert W. Errett, the most significant aspects of such
IV. Solicitation of Comments Deputy Secretary. statements.
Interested persons are invited to [FR Doc. 2016–16848 Filed 7–15–16; 8:45 am] A. Self-Regulatory Organization’s
submit written data, views, and BILLING CODE 8011–01–P Statement of the Purpose of, and the
arguments concerning the foregoing, Statutory Basis for, the Proposed Rule
including whether the proposed rule Change
change is consistent with the Act. SECURITIES AND EXCHANGE
Comments may be submitted by any of COMMISSION 1. Purpose
the following methods:
On March 21, 2016, the Exchange
Electronic Comments [Release No. 34–78292; File No. SR–CBOE– began offering Asian style settlement
• Use the Commission’s Internet 2016–054] and Cliquet style settlement for certain
comment form (http://www.sec.gov/ FLEX Broad-Based Index Options
rules/sro.shtml); or Self-Regulatory Organizations; (‘‘Exotics’’).3 In conjunction with the
• Send an email to rule-comments@ Chicago Board Options Exchange, adoption of FLEX Broad-Based Index
sec.gov. Please include File Number SR– Incorporated; Notice of Filing and Options with Asian or Cliquet style
BatsEDGX–2016–27 on the subject line. Immediate Effectiveness of a Proposed settlement, the Exchange adopted an
Rule Change To Amend the Fees Exotic Surcharge of $0.25 to be assessed
Paper Comments
Schedule on all customer (‘‘C’’ origin code) Exotic
• Send paper comments in triplicate contracts executed on CBOE. The
to Secretary, Securities and Exchange July 12, 2016. Exchange proposes to decrease the
Commission, 100 F Street NE., Pursuant to Section 19(b)(1) of the Exotic Surcharge of $0.25 to $0.03 for all
Washington, DC 20549–1090. Securities Exchange Act of 1934 (the customer XSP Exotic contracts executed
All submissions should refer to File ‘‘Act’’),1 and Rule 19b–4 thereunder,2 on CBOE. Particularly, the Exchange
Number SR–BatsEDGX–2016–27. This notice is hereby given that on July 1, notes that XSP options have 1⁄10 the
file number should be included on the 2016, Chicago Board Options Exchange, value of S&P 500 Index (‘‘SPX’’) options.
subject line if email is used. To help the As XSP has a smaller exercise and
Incorporated (the ‘‘Exchange’’ or
Commission process and review your assignment value due to the reduced
‘‘CBOE’’) filed with the Securities and
comments more efficiently, please use number of shares they deliver as
only one method. The Commission will Exchange Commission (the
‘‘Commission’’) the proposed rule compared to standard SPX option
post all comments on the Commission’s contracts, the Exchange is proposing a
Internet Web site (http://www.sec.gov/ change as described in Items I, II, and
III below, which Items have been lower per contract Exotic Surcharge.
rules/sro.shtml). Copies of the
submission, all subsequent prepared by the Exchange. The 2. Statutory Basis
amendments, all written statements Commission is publishing this notice to
with respect to the proposed rule solicit comments on the proposed rule The Exchange believes the proposed
change that are filed with the change from interested persons. rule change is consistent with the
Commission, and all written Securities Exchange Act of 1934 (the
I. Self-Regulatory Organization’s ‘‘Act’’) and the rules and regulations
communications relating to the
proposed rule change between the Statement of the Terms of Substance of thereunder applicable to the Exchange
Commission and any person, other than the Proposed Rule Change and, in particular, the requirements of
those that may be withheld from the Section 6(b) of the Act.4 Specifically,
The text of the proposed rule change the Exchange believes the proposed rule
public in accordance with the is available on the Exchange’s Web site
provisions of 5 U.S.C. 552, will be change is consistent with the Section
(http://www.cboe.com/AboutCBOE/
available for Web site viewing and CBOELegalRegulatoryHome.aspx), at 3 In general, Asian style settlement provides for
asabaliauskas on DSK3SPTVN1PROD with NOTICES

printing in the Commission’s Public
the Exchange’s Office of the Secretary, payout based on the average of prices of a broad-
Reference Room, 100 F Street NE., based index on pre-determined dates over a
and at the Commission’s Public
Washington, DC 20549, on official specified time period, and Cliquet style settlement
business days between the hours of Reference Room. provides for a payout that is the greater of $0 or the
10:00 a.m. and 3:00 p.m. Copies of such (positive) sum of ‘‘capped’’ monthly returns of a
broad-based index on pre-determined dates over a
filing will also be available for specified period of time. These settlement types are
18 17 CFR 200.30–3(a)(12). also referred to as ‘‘Exotics’’ due to their
16 15 1 15 U.S.C. 78s(b)(1).
U.S.C. 78s(b)(3)(A). untraditional nature.
17 17 CFR 240.19b–4(f). 2 17 CFR 240.19b–4. 4 15 U.S.C. 78f(b).

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Document Created: 2016-07-16 02:28:04
Document Modified: 2016-07-16 02:28:04
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 46719