81_FR_60201 81 FR 60032 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule

81 FR 60032 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 169 (August 31, 2016)

Page Range60032-60034
FR Document2016-20965

Federal Register, Volume 81 Issue 169 (Wednesday, August 31, 2016) 
[Federal Register Volume 81, Number 169 (Wednesday, August 31, 2016)]
[Notices]
[Pages 60032-60034]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-20965]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78698; File No. SR-CBOE-2016-061]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend the Fees Schedule

August 26, 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 August 12, 2016, Chicago Board Options Exchange, Incorporated 
(the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange 
Commission (the ``Commission'') the proposed rule change as described 
in Items I, II, and III below, which Items have been prepared by the 
Exchange. The Commission is publishing this notice to solicit comments 
on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the Fees Schedule. The text of the 
proposed rule change is available on the Exchange's Web site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's 
Office of the Secretary, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

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

1. Purpose
    The Exchange proposes to amend the Fees Schedule. Specifically, the 
Exchange proposes to delete the reference to ``Test Center'' fees from 
the Continuing Education Fees sub-section of the Regulatory Fees 
section of the Fees Schedule to reflect the fact that the Exchange no 
longer offers test center delivery of the Regulatory Element of the 
Exchange's continuing education requirement; as of July 5, 2016, 
delivery of the Regulatory Element of the Exchange's continuing 
education requirement is entirely Web-based.
    On August 8, 2015, the Securities and Exchange Commission (``SEC'' 
or ``Commission'') approved SR-FINRA-2015-015 and the proposed changes 
to FINRA Rule 1250 therein, which, among other things, provided for 
Web-based delivery of the Regulatory Element of certain of FINRA's 
continuing education programs.\3\ Pursuant to SR-FINRA-2015-015, 
effective October 1, 2015, Web-based delivery has been available for 
the Regulatory Element for the S106 Continuing Education Program for 
Investment Company and Variable Contracts Representatives, the S201 
Continuing Education Program for Registered Principals and Supervisors, 
and the S901 Continuing Education Program for Operations 
Professionals.\4\ Web-based delivery of the S101 General Program, the 
continuing education program for all other registration categories, 
became available on January 4, 2016, as contemplated by SR-FINRA-2015-
015. In addition, pursuant to SR-FINRA-2015-015, test center delivery 
of the Regulatory Element of the S101, S106, S201, and S901 continuing 
education programs was to end after January 4, 2016, but in no case 
more than six months after January 4, 2016 or July 5, 2016.\5\ Since 
July 5, 2016 has passed, going forward, the Regulatory Element of the 
above-listed continuing education programs is no longer administered at 
test centers and is only offered via Web-based delivery.
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    \3\ See Securities Exchange Act Release No. 75581 (July 31, 
2015), 80 FR 47018 (August 6, 2015) (Order Approving a Proposed Rule 
Change to Provide a Web-based Delivery Method for Completing the 
Regulatory Element of the Continuing Education Requirements) (SR-
FINRA-2015-015).
    \4\ Id.
    \5\ Test-center delivery of the Regulatory Element will be 
phased out by no later than six months after January 4, 2016. See 
Securities Exchange Act Release No. 75581 (July 31, 2015), 80 FR 
47018 (August 6, 2015) (Order Approving a Proposed Rule Change To 
Provide a Web-Based Delivery Method for Completing the Regulatory 
Element of the Continuing Education) (SR-FINRA-2015-015).
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    The Exchange utilizes FINRA's continuing education programs for its 
own continuing education requirements. Consistent with SR-FINRA-2015-
015, the Exchange recently filed SR-CBOE-2015-084 \6\ relating to 
continuing education. In the filing, the Exchange proposed 
substantially similar changes to its rules as those set forth in SR-
FINRA-2015-015 with respect to Web-based delivery of the Regulatory 
Element of the S101 General Program, S106 Continuing Education Program 
for Investment Company and Variable Contracts Representatives, the S201 
Continuing Education Program for Registered Principals and Supervisors, 
and the S901 Continuing Education Program for Operations Professionals. 
Consistent with SR-CBOE-2015-084, the Exchange also filed SR-CBOE-2015-
093 to amend the Fees Schedule to provide that the fee for Web-based 
delivery of the Regulatory Elements of the S101, S106, S201, and S901 
Continuing Education Programs would be $55 as opposed to test center 
delivery, which would continue to be $100 per session until

[[Page 60033]]

test center delivery of the Regulatory Element was phased out and the 
programs were no longer offered at testing centers.\7\ In its filing, 
the Exchange stated that upon cessation of the availability of test-
center delivery of the Regulatory Element, the Exchange would submit 
another fee filing to remove references to test center fees from the 
Fees Schedule.\8\ Accordingly, the Exchange now proposes to amend the 
Fees Schedule to remove the now-obsolete $100 fee for test center 
delivery of the Regulatory Element of the Exchange's continuing 
education requirement.
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    \6\ Available at http://www.cboe.com/publish/RuleFilingsSEC/SR-CBOE-2015-084.pdf.
    \7\ See Securities Exchange Act Release No. 76352 (November 4, 
2015), 80 FR 69760 (November 10, 2015) (Notice of Filing and 
Immediate Effectiveness of a Proposed Rule Change To Amend the Fees 
Schedule) (SR-CBOE-2015-093).
    \8\ See id.
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2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Act and the rules and regulations thereunder applicable to the 
Exchange and, in particular, the requirements of Section 6(b) of the 
Act.\9\ Specifically, the Exchange believes the proposed rule change is 
consistent with the Section 6(b)(5) \10\ 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) \11\ requirement that the rules of 
an exchange not be designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
    \11\ Id.
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    The Exchange believes that the proposed rule change is consistent 
with the Act. Primarily, the Exchange believes that the elimination of 
obsolete rules helps to eliminate confusion and makes the Exchange's 
rules more clear and transparent, which is in the interests of both 
market participants and the general public. The Exchange is 
continuously updating the Rules to provide additional accuracy, detail, 
clarity, and transparency regarding its operations, trading systems, 
and fees. The Exchange believes that the adoption of detailed, clear, 
and transparent rules reduces burdens on competition and promotes just 
and equitable principles of trade. Furthermore, in general, the 
Exchange believes that promoting the Web-based delivery method for 
continuing education serves the best interests of market participant's 
and the general public by lower the costs of participation in the 
markets. The reduced cost of Web-based delivery of the Regulatory 
Element of the S106, S201, and S901 Continuing Education Programs 
lowers barriers to entry and removes impediments to a free and open 
market and national market system by making it easier and less costly 
for Trading Permit Holders to participate in the market. The Exchange 
believes that reducing the costs of continuing education promotes 
regulatory compliance, which is in the best interests of investors, 
consistent with the Act.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange 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. Rather, the proposed rule 
change merely seeks to delete references to a fee that is no longer 
applicable to any Trading Permit Holder under the Rules. In fact, the 
Exchange believes that the proposed rule change will relieve any burden 
on, or otherwise promote, competition by lower costs of entry to the 
markets and making it easier for market participants to satisfy the 
Regulatory Element of the Exchange's continuing education requirement.

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 written comments on the 
proposed rule change.

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \12\ and paragraph (f) of Rule 19b-4 \13\ 
thereunder. At any time within 60 days of the filing of the proposed 
rule change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission will institute proceedings to 
determine whether the proposed rule change should be approved or 
disapproved.
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    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 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 No. SR-CBOE-2016-061 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-2016-061. 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-

[[Page 60034]]

016-061 and should be submitted on or before September 21, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-20965 Filed 8-30-16; 8:45 am]
 BILLING CODE 8011-01-P

60032 Federal Register / Vol. 81, No. 169 / Wednesday, August 31, 2016 / Notices Commission.8 For this reason and the prepared by the Exchange. The 2015–015, effective October 1, 2015, reasons stated in the Order originally Commission is publishing this notice to Web-based delivery has been available granting the limited exemptions, the solicit comments on the proposed rule for the Regulatory Element for the S106 Commission finds that extending the change from interested persons. Continuing Education Program for exemptions, pursuant to its authority Investment Company and Variable I. Self-Regulatory Organization’s under Rule 612(c) of Regulation NMS, is Contracts Representatives, the S201 appropriate in the public interest and Statement of the Terms of Substance of Continuing Education Program for consistent with the protection of the Proposed Rule Change Registered Principals and Supervisors, investors. The Exchange proposes to amend the and the S901 Continuing Education THEREFORE, IT IS HEREBY Fees Schedule. The text of the proposed Program for Operations Professionals.4 ORDERED that, pursuant to Rule 612(c) rule change is available on the Web-based delivery of the S101 General of Regulation NMS, each Exchange is Exchange’s Web site (http:// Program, the continuing education granted a limited exemption from Rule www.cboe.com/AboutCBOE/ program for all other registration 612 of Regulation NMS that allows it to CBOELegalRegulatoryHome.aspx), at categories, became available on January accept and rank orders priced equal to the Exchange’s Office of the Secretary, 4, 2016, as contemplated by SR–FINRA– or greater than $1.00 per share in and at the Commission’s Public 2015–015. In addition, pursuant to SR– increments of $0.001, in connection Reference Room. FINRA–2015–015, test center delivery of with the operation of its Retail Liquidity the Regulatory Element of the S101, Program, until December 31, 2016. II. Self-Regulatory Organization’s S106, S201, and S901 continuing The limited and temporary Statement of the Purpose of, and education programs was to end after exemptions extended by this Order are Statutory Basis for, the Proposed Rule January 4, 2016, but in no case more subject to modification or revocation if Change than six months after January 4, 2016 or at any time the Commission determines In its filing with the Commission, the July 5, 2016.5 Since July 5, 2016 has that such action is necessary or Exchange included statements passed, going forward, the Regulatory appropriate in furtherance of the concerning the purpose of and basis for Element of the above-listed continuing purposes of the Securities Exchange Act the proposed rule change and discussed education programs is no longer of 1934. Responsibility for compliance any comments it received on the administered at test centers and is only with any applicable provisions of the proposed rule change. The text of these offered via Web-based delivery. Federal securities laws must rest with statements may be examined at the The Exchange utilizes FINRA’s the persons relying on the exemptions places specified in Item IV below. The continuing education programs for its that are the subject of this Order. Exchange has prepared summaries, set own continuing education For the Commission, by the Division of forth in sections A, B, and C below, of requirements. Consistent with SR– Trading and Markets, pursuant to delegated the most significant aspects of such FINRA–2015–015, the Exchange authority.9 statements. recently filed SR–CBOE–2015–084 6 Robert W. Errett, relating to continuing education. In the A. Self-Regulatory Organization’s filing, the Exchange proposed Deputy Secretary. Statement of the Purpose of, and [FR Doc. 2016–20891 Filed 8–30–16; 8:45 am] substantially similar changes to its rules Statutory Basis for, the Proposed Rule as those set forth in SR–FINRA–2015– BILLING CODE 8011–01–P Change 015 with respect to Web-based delivery 1. Purpose of the Regulatory Element of the S101 SECURITIES AND EXCHANGE General Program, S106 Continuing The Exchange proposes to amend the Education Program for Investment COMMISSION Fees Schedule. Specifically, the Company and Variable Contracts [Release No. 34–78698; File No. SR–CBOE– Exchange proposes to delete the Representatives, the S201 Continuing 2016–061] reference to ‘‘Test Center’’ fees from the Education Program for Registered Continuing Education Fees sub-section Principals and Supervisors, and the Self-Regulatory Organizations; of the Regulatory Fees section of the S901 Continuing Education Program for Chicago Board Options Exchange, Fees Schedule to reflect the fact that the Operations Professionals. Consistent Incorporated; Notice of Filing and Exchange no longer offers test center with SR–CBOE–2015–084, the Exchange Immediate Effectiveness of a Proposed delivery of the Regulatory Element of also filed SR–CBOE–2015–093 to amend Rule Change To Amend the Fees the Exchange’s continuing education the Fees Schedule to provide that the Schedule requirement; as of July 5, 2016, delivery fee for Web-based delivery of the August 26, 2016. of the Regulatory Element of the Regulatory Elements of the S101, S106, Pursuant to Section 19(b)(1) of the Exchange’s continuing education S201, and S901 Continuing Education Securities Exchange Act of 1934 (the requirement is entirely Web-based. Programs would be $55 as opposed to On August 8, 2015, the Securities and test center delivery, which would ‘‘Act’’),1 and Rule 19b–4 thereunder,2 Exchange Commission (‘‘SEC’’ or continue to be $100 per session until notice is hereby given that on August ‘‘Commission’’) approved SR–FINRA– 12, 2016, Chicago Board Options 2015–015 and the proposed changes to Continuing Education Requirements) (SR–FINRA– Exchange, Incorporated (the ‘‘Exchange’’ FINRA Rule 1250 therein, which, among 2015–015). or ‘‘CBOE’’) filed with the Securities other things, provided for Web-based 4 Id. and Exchange Commission (the 5 Test-center delivery of the Regulatory Element delivery of the Regulatory Element of mstockstill on DSK3G9T082PROD with NOTICES ‘‘Commission’’) the proposed rule will be phased out by no later than six months after certain of FINRA’s continuing education change as described in Items I, II, and January 4, 2016. See Securities Exchange Act programs.3 Pursuant to SR–FINRA– Release No. 75581 (July 31, 2015), 80 FR 47018 III below, which Items have been (August 6, 2015) (Order Approving a Proposed Rule 3 See Securities Exchange Act Release No. 75581 Change To Provide a Web-Based Delivery Method 8 See Order, supra note 3, 77 FR at 40681. (July 31, 2015), 80 FR 47018 (August 6, 2015) for Completing the Regulatory Element of the 9 17 CFR 200.30–3(a)(83). (Order Approving a Proposed Rule Change to Continuing Education) (SR–FINRA–2015–015). 1 15 U.S.C. 78s(b)(1). Provide a Web-based Delivery Method for 6 Available at http://www.cboe.com/publish/ 2 17 CFR 240.19b–4. Completing the Regulatory Element of the RuleFilingsSEC/SR-CBOE-2015-084.pdf. VerDate Sep<11>2014 21:59 Aug 30, 2016 Jkt 238001 PO 00000 Frm 00057 Fmt 4703 Sfmt 4703 E:\FR\FM\31AUN1.SGM 31AUN1

Federal Register / Vol. 81, No. 169 / Wednesday, August 31, 2016 / Notices 60033 test center delivery of the Regulatory of detailed, clear, and transparent rules investors, or otherwise in furtherance of Element was phased out and the reduces burdens on competition and the purposes of the Act. If the programs were no longer offered at promotes just and equitable principles Commission takes such action, the testing centers.7 In its filing, the of trade. Furthermore, in general, the Commission will institute proceedings Exchange stated that upon cessation of Exchange believes that promoting the to determine whether the proposed rule the availability of test-center delivery of Web-based delivery method for change should be approved or the Regulatory Element, the Exchange continuing education serves the best disapproved. would submit another fee filing to interests of market participant’s and the remove references to test center fees general public by lower the costs of IV. Solicitation of Comments from the Fees Schedule.8 Accordingly, participation in the markets. The Interested persons are invited to the Exchange now proposes to amend reduced cost of Web-based delivery of submit written data, views, and the Fees Schedule to remove the now- the Regulatory Element of the S106, arguments concerning the foregoing, obsolete $100 fee for test center delivery S201, and S901 Continuing Education including whether the proposed rule of the Regulatory Element of the Programs lowers barriers to entry and change is consistent with the Act. Exchange’s continuing education removes impediments to a free and open Comments may be submitted by any of requirement. market and national market system by the following methods: 2. Statutory Basis making it easier and less costly for Electronic Comments Trading Permit Holders to participate in The Exchange believes the proposed the market. The Exchange believes that • Use the Commission’s Internet rule change is consistent with the Act reducing the costs of continuing comment form (http://www.sec.gov/ and the rules and regulations education promotes regulatory rules/sro.shtml); or thereunder applicable to the Exchange compliance, which is in the best • Send an email to rule- and, in particular, the requirements of interests of investors, consistent with comments@sec.gov. Please include File Section 6(b) of the Act.9 Specifically, the Act. No. SR–CBOE–2016–061 on the subject the Exchange believes the proposed rule line. change is consistent with the Section B. Self-Regulatory Organization’s 6(b)(5) 10 requirements that the rules of Statement on Burden on Competition Paper Comments an exchange be designed to prevent The Exchange does not believe that • Send paper comments in triplicate fraudulent and manipulative acts and the proposed rule change will impose to Secretary, Securities and Exchange practices, to promote just and equitable any burden on competition that is not Commission, 100 F Street NE., principles of trade, to foster cooperation necessary or appropriate in furtherance Washington, DC 20549–1090. and coordination with persons engaged of the purposes of the Act. Rather, the in regulating, clearing, settling, All submissions should refer to File proposed rule change merely seeks to processing information with respect to, Number SR–CBOE-2016–061. This file delete references to a fee that is no and facilitating transactions in number should be included on the longer applicable to any Trading Permit securities, to remove impediments to subject line if email is used. To help the Holder under the Rules. In fact, the and perfect the mechanism of a free and Commission process and review your Exchange believes that the proposed open market and a national market comments more efficiently, please use rule change will relieve any burden on, system, and, in general, to protect only one method. The Commission will or otherwise promote, competition by investors and the public interest. post all comments on the Commission’s lower costs of entry to the markets and Additionally, the Exchange believes the Internet Web site (http://www.sec.gov/ making it easier for market participants proposed rule change is consistent with rules/sro.shtml). Copies of the to satisfy the Regulatory Element of the the Section 6(b)(5) 11 requirement that submission, all subsequent Exchange’s continuing education the rules of an exchange not be designed amendments, all written statements requirement. to permit unfair discrimination between with respect to the proposed rule customers, issuers, brokers, or dealers. C. Self-Regulatory Organization’s change that are filed with the The Exchange believes that the Statement on Comments on the Commission, and all written proposed rule change is consistent with Proposed Rule Change Received From communications relating to the the Act. Primarily, the Exchange Members, Participants, or Others proposed rule change between the believes that the elimination of obsolete The Exchange neither solicited nor Commission and any person, other than rules helps to eliminate confusion and received written comments on the those that may be withheld from the makes the Exchange’s rules more clear proposed rule change. public in accordance with the and transparent, which is in the provisions of 5 U.S.C. 552, will be interests of both market participants and III. Date of Effectiveness of the available for Web site viewing and the general public. The Exchange is Proposed Rule Change and Timing for printing in the Commission’s Public continuously updating the Rules to Commission Action Reference Room, 100 F Street NE., provide additional accuracy, detail, The foregoing rule change has become Washington, DC 20549 on official clarity, and transparency regarding its effective pursuant to Section 19(b)(3)(A) business days between the hours of operations, trading systems, and fees. of the Act 12 and paragraph (f) of Rule 10:00 a.m. and 3:00 p.m. Copies of the The Exchange believes that the adoption 19b–4 13 thereunder. At any time within filing also will be available for 60 days of the filing of the proposed rule inspection and copying at the principal office of the Exchange. All comments mstockstill on DSK3G9T082PROD with NOTICES 7 See Securities Exchange Act Release No. 76352 change, the Commission summarily may (November 4, 2015), 80 FR 69760 (November 10, temporarily suspend such rule change if received will be posted without change; 2015) (Notice of Filing and Immediate Effectiveness the Commission does not edit personal of a Proposed Rule Change To Amend the Fees it appears to the Commission that such Schedule) (SR–CBOE–2015–093). action is necessary or appropriate in the identifying information from 8 See id. public interest, for the protection of submissions. You should submit only 9 15 U.S.C. 78f(b). information that you wish to make 10 15 U.S.C. 78f(b)(5). 12 15 U.S.C. 78s(b)(3)(A). available publicly. All submissions 11 Id. 13 17 CFR 240.19b–4(f). should refer to File Number SR–CBOE– VerDate Sep<11>2014 21:59 Aug 30, 2016 Jkt 238001 PO 00000 Frm 00058 Fmt 4703 Sfmt 4703 E:\FR\FM\31AUN1.SGM 31AUN1

60034 Federal Register / Vol. 81, No. 169 / Wednesday, August 31, 2016 / Notices 016–061 and should be submitted on or II. Self-Regulatory Organization’s modifier with ISO modifiers offered by before September 21, 2016. Statement of the Purpose of, and other national securities exchanges, as For the Commission, by the Division of Statutory Basis for, the Proposed Rule well as clarify and simplify the order Trading and Markets, pursuant to delegated Change types and modifiers offered by the authority.14 In its filing with the Commission, the Exchange, all of which further the CHX included statements concerning objectives of the Act, as described Brent J. Fields, below. Secretary. the purpose of and basis for the proposed rule changes and discussed Current CHX ISOs [FR Doc. 2016–20965 Filed 8–30–16; 8:45 am] any comments it received on the The Exchange currently offers three BILLING CODE 8011–01–P proposed rule change. The text of these different ISO modifiers: BBO ISO, Price- statements may be examined at the Penetrating ISO, and ISO.17 While all places specified in Item IV below. The three modifiers can be used to mark an SECURITIES AND EXCHANGE CHX has prepared summaries, set forth COMMISSION order as required by Rule 600(b)(30) of in sections A, B and C below, of the Regulation NMS,18 each modifier is most significant aspects of such handled differently by the CHX [Release No. 34–78684; File No. SR–CHX– statements. Matching System (’’Matching 2016–15] A. Self-Regulatory Organization’s System’’).19 Statement of the Purpose of, and An incoming BBO ISO will execute Self-Regulatory Organizations; Statutory Basis for, the Proposed Rule against orders resting on the CHX book Chicago Stock Exchange, Inc.; Notice Changes at prices not to exceed the more of Filing and Immediate Effectiveness restrictive of its limit price or the of a Proposed Rule Change To Modify 1. Purpose contra-side displayed best bid or offer. the Handling of Intermarket Sweep Any unexecuted balance of the BBO ISO The Exchange proposes various Orders will be immediately cancelled if -1- amendments to the CHX Rules to amend August 25, 2016. the operation of the Exchange’s ISO marked Immediate Or Cancel (’’IOC’’) 20 modifiers as follows: or -2- the incoming BBO ISO sell (buy) Pursuant to Section 19(b)(1) of the order could execute against any resting Securities Exchange Act of 1934 • Amend the operation of the ISO modifier to be similar to the ISO modifiers offered by order(s) priced below (above) the (’’Act’’),1 and Rule 19b–4 2 thereunder, other national securities exchanges.6 As displayed best bid (offer), regardless of notice is hereby given that on August amended, a limit order marked ISO (’’ISO the Time-In-Force. If the unexecuted 17, 2016, the Chicago Stock Exchange, limit’’) would behave like a simple limit balance of the BBO ISO would not be Inc. (’’CHX’’ or the ‘‘Exchange’’) filed order 7 (i.e., executable through multiple cancelled as described above, it will be with the Securities and Exchange price points not beyond its limit price with ranked on the CHX Book and will be Commission (’’Commission’’) the the unexecuted balance to be immediately displayable at its limit price. A limit proposed rule change as described in cancelled or ranked on the CHX book depending on the attached Time-In-Force 8 order marked BBO ISO may not be Items I, II and III below, which Items and display modifier 9), but without regard to marked Do Not Display.21 The Matching have been prepared by the Exchange. the Protected Quotations 10 of away markets System, in executing the ISO as soon as The Commission is publishing this when it is being processed as a new incoming the order is received by the Matching notice to solicit comments on the order. System, will not take any of the actions proposed rule change from interested • Require a limit order marked by any one described in Article 20, Rule 5 to persons. of the Exchange’s three ISO modifiers (i.e., prevent an improper trade-through or BBO ISO,11 Price-Penetrating ISO,12 and any of the actions described in Article I. Self-Regulatory Organization’s ISO 13) to be handled as if it were marked 20, Rule 6 to prevent a locked or crossed Statement of the Terms of Substance of ISO, as amended.14 market; provided, however, that in the Proposed Rule Change The Exchange also proposes to clarify executing any initially unexecuted the current handling of cross orders 15 balance of the ISO that is placed in the CHX proposes to amend the Rules of marked ISO (‘‘ISO cross’’) and Matching System, the requirements of the Exchange (’’CHX Rules’’) to modify Participants’ 16 obligations with respect Article 20, Rule 5 will be followed. the handling of Intermarket Sweep to ISOs. These orders shall be executed on the Orders (’’ISOs’’). The Exchange believes that the assumption that the Participant routing CHX has designated this proposed proposed rule change will harmonize the order to the Matching System has rule change as non-controversial the operation of the Exchange’s ISO already satisfied the quotations of other pursuant to Section 19(b)(3)(A) 3 of the markets as required by Rule Act and Rule 19b–4(f)(6) 4 thereunder 6 See e.g., NYSE ARCA Equities Rule 7.31(e)(2); 600(b)(30) 22 and shall be displayed and has provided the Commission with see also e.g., Bats BYX Rule 11.9(d). the notice required by Rule 19b– 7 See CHX Article 1, Rule 2(a)(1). 17 BBO ISO and Price-Penetrating ISOs are limit 8 See CHX Article 1, Rule 2(d). 4(f)(6)(iii).5 order modifiers, whereas ISO is a limit and cross 9 See CHX Article 1, Rule 2(e). order modifier. The Exchange last modified the The text of this proposed rule change 10 See 17 CFR 242.600(b)(58). operation of BBO ISO and Price-Penetrating ISO in is available on the Exchange’s Web site 11 See CHX Article 1, Rule 2(b)(1)(A). 2014. See Securities Exchange Act Release No. at (www.chx.com) and in the 12 See CHX Article 1, Rule 2(b)(1)(E). 73572 (November 10, 2014), 79 FR 68736 mstockstill on DSK3G9T082PROD with NOTICES Commission’s Public Reference Room. 13 See CHX Article 1, Rule 2(b)(3)(B). (November 18, 2014) (SR–CHX–2014–18). 14 In order to facilitate the transition to the 18 See 17 CFR 242.600(b)(30). 19 The Matching System is an automated order 14 17 amended ISO, the Exchange does not propose to CFR 200.30–3(a)(12). eliminate the BBO ISO and Price-Penetrating ISO execution system, which is a part of the Exchange’s 1 15 U.S.C. 78s(b)(1). modifiers at this time. ‘‘Trading Facilities,’’ as defined under CHX Article 2 17 CFR 240.19b–4. 15 See CHX Article 1, Rule 2(a)(2). 1, Rule 1(z). 3 15 U.S.C. 78s(b)(3)(A). 16 A ‘‘Participant’’ is a ‘‘member’’ of the Exchange 20 See CHX Article 1, Rule 2(d)(4). 4 17 CFR 240.19b–4(f)(6). 21 See CHX Article 1, Rule 2(c)(2). for purposes of the Act. See CHX Article 1, Rule 5 17 CFR 240.19b–4(f)(6)(iii). 1(s). 22 17 CFR 242.600(b)(30). VerDate Sep<11>2014 21:59 Aug 30, 2016 Jkt 238001 PO 00000 Frm 00059 Fmt 4703 Sfmt 4703 E:\FR\FM\31AUN1.SGM 31AUN1


Document Created: 2018-02-02 12:15:01
Document Modified: 2018-02-02 12:15:01
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation81 FR 60032 
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