81 FR 66706 - 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 188 (September 28, 2016)
Federal Register Volume 81, Issue 188 (September 28, 2016)
| Page Range | 66706-66708 | |
| FR Document | 2016-23322 |
[Federal Register Volume 81, Number 188 (Wednesday, September 28, 2016)] [Notices] [Pages 66706-66708] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-23322] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78907; File No. SR-CBOE-2016-068] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule September 22, 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 September 13, 2016, Chicago Board Options Exchange, Incorporated (the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend its 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.\3\ Specifically, the Exchange proposes to expand its Frequent Trader Program. By way of background, 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'').\4\ --------------------------------------------------------------------------- \3\ The Exchange initially filed the proposed change on September 1, 2016 (SR-CBOE-2016-065). On September 13, 2016, the Exchange withdrew that filing and submitted this filing. \4\ See Securities Exchange Act Release No. 77554 (April 7, 2016), 81 FR 21928 (April 13, 2016) (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'' or ``executing TPH'') and that executing TPH would have to enter the Customer's FTID on each of that Customer's orders. The Exchange first proposes to expand the program to allow Professional Customers and Voluntary Professionals (``W'' origin code) (``Professionals'') to qualify for the Program. The same terms and conditions would apply to Professionals as currently does to Customers. The Exchange believes this proposed change would provide additional incentive to direct Professional order flow to the Exchange, which benefits all market participants through increased liquidity and enhanced price discovery. The Exchange next proposes to provide that, in addition to SPX and VIX options, the Program would apply to Russell 2000 Index (``RUT'') options. As with SPX and VIX, the Exchange would aggregate a Customer's (or Professional's) volume (for which their FTID was entered) on a monthly basis for RUT options. If the Customer or Professional meets the thresholds proposed below, it would receive a rebate on its RUT options transaction fees, also indicated below.\5\ Also, as is currently the case with SPX and VIX, although all executed contracts with an FTID will count towards the qualifying volume thresholds, the rebates will be based on the actual amount of fees assessed in accordance with the Fees Schedule (e.g., if a Customer submits a RUT order for 10,000 contracts, pursuant to the current Fees Schedule, that customer would be assessed fees for only the first 5,000 contracts under the Customer Large Trade Discount Program. Therefore, while all 10,000 contracts would count when determining the tier, the Customer's rebate would be based on the amount of the fees assessed for 5,000 contracts, not on the value of the total 10,000 contracts executed). The thresholds and rebates are as follows: --------------------------------------------------------------------------- \5\ The Exchange notes that only transaction fees would be discounted (i.e., no other surcharges, such as the Index License Surcharge Fee, would be rebated or discounted). RUT ------------------------------------------------------------------------ RUT fee Tier Monthly RUT contracts traded rebate (%) ------------------------------------------------------------------------ 1......................... 4,000-7,999...................... 5 2......................... 8,000-14,999..................... 10 3......................... 15,000 and above................. 15 ------------------------------------------------------------------------ The Exchange notes that the highest achieved threshold rebate rate will apply from the first executed contract (e.g., if a Customer or Professional executes 10,000 RUT contracts in a month, the Tier 2 10% rebate rate would apply to all 10,000 RUT contracts). The Exchange believes the tiered program [[Page 66707]] incentivizes the sending of Customer and Professional orders to the Exchange while maintaining an incremental incentive for Customers and Professionals to strive for the highest tier level. The Exchange also notes that the volume thresholds for SPX options and VIX options are higher than for RUT in light of their more mature and established positions in the industry. Next, the Exchange proposes to make some clarifying, non- substantive and organizational changes to the Frequent Trader table and Notes section in light of the proposed changes described above. First, the Exchange proposes to add a reference to Professional Customers and Voluntary Professionals in the Notes section and define ``customer'' as including both Customers (``C'' origin) and Professional Customers and Voluntary Professionals (``W'' origin). Additionally, the Exchange proposes to eliminate from the definition of ``customer'' in the Notes section the reference to ``non-Professionals'', as reference to ``customer'' will include both Customers and Professionals going forward. The Exchange also proposes to change the last reference to customer in the Notes section to lower case to avoid confusion as to which ``customer'' is being referenced. The Exchange also proposes to eliminate obsolete language pertaining to the handling of the Frequent Trader Program--Volume Corrections Form for the month of April 2016, as such language is unnecessary to maintain. Additionally, the Exchange proposes to relocate the language of the Notes section to below the Frequent Trader Program table in order to accommodate the new RUT scale. Lastly, the Exchange proposes to amend the Frequent Trader Program--Volume Corrections Form (``Form'') to reflect that the Program also applies to RUT.\6\ --------------------------------------------------------------------------- \6\ The updated Frequent Trader Program--Volume Corrections Form, which will replace the current Frequent Trader Program--Volume Corrections Form, is attached as Exhibit 3. --------------------------------------------------------------------------- 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.\7\ Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \8\ 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. The Exchange also believes the proposed rule change is consistent with Section 6(b)(4) of the Act,\9\ which provides that Exchange rules may provide for the equitable allocation of reasonable dues, fees, and other charges among its Trading Permit Holders. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f(b). \8\ 15 U.S.C. 78f(b)(5). \9\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- The expansion of the Frequent Trader Program to Professionals is reasonable because it will allow Professionals who register for the program an opportunity to receive certain rebates for reaching certain trading volume thresholds. The Exchange notes that it is voluntary for Professionals to choose whether or not to register for the program and whether to request that their unique FTID be appended to their orders. The Program is also voluntary for executing TPHs who have the option of choosing not to participate (i.e., they may decline to append FTID numbers on Professional orders). The Exchange believes it's equitable and not unfairly discriminatory to expand the program to Professionals because this is designed to attract a greater number of Professional VIX, SPX and RUT orders. This increased volume creates greater trading opportunities that benefit all market participants. Specifically, while only Customer and Professional orders qualify for the proposed rebates under the Frequent Trader Program, an increase in Customer and Professional order flow will bring greater volume and liquidity, which benefit all market participants by providing more trading opportunities and tighter spreads. Moreover, the options industry has a long history of providing preferential pricing to Customers. Like Customers, Professionals are non-TPH, non-broker dealers and have historically also been given preferential pricing. Indeed, the Exchange notes that incentive programs based on Customer and Professional volume already exist elsewhere within the industry.\10\ In addition the Exchange believes the proposed program is equitable and not unfairly discriminatory because any Professional may avail itself of this program provided it registers with the Exchange and its executing TPH participates. --------------------------------------------------------------------------- \10\ See e.g., NYSE Arca Options Fees and Charges, Customer and Professional Customer Incentive Program and Customer and Professional Customer Posting Credit Tiers in Penny and Non Penny Pilot Issues. See also NASDAQ Options Market (``NOM'') Options Pricing, Sec. 2 NASDAQ Options Market--Fees and Rebates, Customer and Professional Penny Pilot Options Rebate to Add Liquidity. --------------------------------------------------------------------------- Expanding the Frequent Trader Program to RUT options is reasonable because it will allow Customers and Professionals who register for the program an opportunity to receive certain rebates for reaching certain trading volume thresholds in RUT, as well as VIX and SPX. The Exchange believes adding RUT options to the Program is equitable and not unfairly discriminatory because the Exchange has expended considerable time and resources in maintaining RUT, along with VIX and SPX. The proposed rule change is designed to encourage greater Customer and Professional RUT options trading, which, along with bringing greater RUT options trading opportunities to all market participants, would bring in more fees to the Exchange, and such fees can be used to recoup the Exchange's costs and expenditures from maintaining RUT options. The Exchange believes it's equitable and not unfairly discriminatory to establish lower threshold tiers for RUT than for the SPX product group and VIX because the SPX product group and VIX have reached a more mature and established level than RUT. The Exchange believes it's reasonable, equitable and not unfairly discriminatory to include all of a Customer's and Professional's RUT executed contracts with an FTID towards the respective qualifying thresholds because the Exchange wishes to support and encourage Customers and Professionals to provide greater order flow in this class, which allows for price improvement and has a number of positive impacts on the market system. The Exchange also believes however, that it's reasonable, equitable and not unfairly discriminatory to base the rebate off the amount of transaction fees that would be assessed pursuant to the Fees Schedule (as opposed to being based off the ``theoretical'' fee value of all contracts executed) because the Exchange does not want to provide rebates on contracts for which it is not also collecting transaction fees. The Exchange believes it's reasonable, equitable and not unfairly discriminatory to provide Professionals a choice as to how their payment is delivered. Providing Professionals with the option of requesting to receive their rebates under the Frequent Trader Program as separate direct payments or [[Page 66708]] via a distribution to one or more of its executing Clearing Trading Permit Holders will provide Professionals with a convenient manner in which to receive their rebates, which perfects the mechanism for a free and open market. Lastly, the Exchange believes the proposed update to the Frequent Trader Program--Volume Corrections Form along with the clarifying, non- substantive and organizational changes maintains clarity in the Form and Fees Schedule, respectively, and avoids potential confusion given the proposed changes to expand the Frequent Trader Program. Alleviation of confusion removes impediments to, and perfects the mechanism for a free and open market and a national market system, and, in general, protects investors and the public interest of market participants. 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, while the rebates apply only to Customers and Professionals, the proposed change is designed to encourage increased Customer and Professional VIX, SPX and RUT options volume, which provides greater trading opportunities for all market participants. Additionally, the Exchange notes that incentive programs based on Customer and Professional volume already exist elsewhere within the industry.\11\ The Exchange believes that the proposed rule change will not cause an unnecessary burden on intermarket competition because VIX and SPX products are only traded on CBOE and RUT products are only traded on CBOE and C2 Options Exchange, Incorporated. 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. --------------------------------------------------------------------------- \11\ Id. --------------------------------------------------------------------------- C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange neither solicited nor received comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \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. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78s(b)(3)(A). \13\ 17 CFR 240.19b-4(f). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-CBOE-2016-068 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-2016-068. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-CBOE-2016-068, and should be submitted on or before October 19, 2016. --------------------------------------------------------------------------- \14\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\14\ Brent J. Fields, Secretary. [FR Doc. 2016-23322 Filed 9-27-16; 8:45 am] BILLING CODE 8011-01-P
![66706 Federal Register / Vol. 81, No. 188 / Wednesday, September 28, 2016 / Notices
The Commission is of the opinion that II. Self-Regulatory Organization’s The Exchange first proposes to
the public interest and the protection of Statement of the Purpose of, and expand the program to allow
investors require a suspension of trading Statutory Basis for, the Proposed Rule Professional Customers and Voluntary
in the securities of the above-listed Change Professionals (‘‘W’’ origin code)
companies. (‘‘Professionals’’) to qualify for the
In its filing with the Commission, the
Program. The same terms and
Therefore, it is Ordered, pursuant to Exchange included statements
conditions would apply to Professionals
Section 12(k) of the Securities Exchange concerning the purpose of and basis for
as currently does to Customers. The
Act of 1934, that trading in the the proposed rule change and discussed
Exchange believes this proposed change
securities of the above-listed companies any comments it received on the
would provide additional incentive to
is suspended for the period from 9:30 proposed rule change. The text of these
direct Professional order flow to the
a.m. EDT on September 26, 2016, statements may be examined at the
Exchange, which benefits all market
through 11:59 p.m. EDT on October 7, places specified in Item IV below. The
participants through increased liquidity
2016. Exchange has prepared summaries, set
and enhanced price discovery. The
forth in sections A, B, and C below, of
By the Commission. Exchange next proposes to provide that,
the most significant aspects of such
Brent J. Fields, in addition to SPX and VIX options, the
statements.
Program would apply to Russell 2000
Secretary.
A. Self-Regulatory Organization’s Index (‘‘RUT’’) options. As with SPX
[FR Doc. 2016–23561 Filed 9–26–16; 4:15 pm]
Statement of the Purpose of, and the and VIX, the Exchange would aggregate
BILLING CODE 8011–01–P Statutory Basis for, the Proposed Rule a Customer’s (or Professional’s) volume
Change (for which their FTID was entered) on
a monthly basis for RUT options. If the
SECURITIES AND EXCHANGE 1. Purpose
Customer or Professional meets the
COMMISSION The Exchange proposes to amend its thresholds proposed below, it would
Fees Schedule.3 Specifically, the receive a rebate on its RUT options
[Release No. 34–78907; File No. SR–CBOE– Exchange proposes to expand its transaction fees, also indicated below.5
2016–068] Frequent Trader Program. By way of Also, as is currently the case with SPX
background, on April 1, 2016, the and VIX, although all executed contracts
Self-Regulatory Organizations; Exchange adopted a program that offers with an FTID will count towards the
Chicago Board Options Exchange, transaction fee rebates to Customers qualifying volume thresholds, the
Incorporated; Notice of Filing and (origin code ‘‘C’’) that meet certain rebates will be based on the actual
Immediate Effectiveness of a Proposed volume thresholds in CBOE VIX amount of fees assessed in accordance
Rule Change To Amend the Fees Volatility Index options (‘‘VIX options’’) with the Fees Schedule (e.g., if a
Schedule and S&P 500 Index options (‘‘SPX’’), Customer submits a RUT order for
weekly S&P 500 options (‘‘SPXW’’) and 10,000 contracts, pursuant to the current
September 22, 2016. p.m.-settled SPX Index options Fees Schedule, that customer would be
Pursuant to Section 19(b)(1) of the (‘‘SPXpm’’) (collectively referred to as assessed fees for only the first 5,000
Securities Exchange Act of 1934 (the ‘‘SPX options’’) provided the Customer contracts under the Customer Large
‘‘Act’’),1 and Rule 19b–4 thereunder,2 registers for the program (the ‘‘Frequent Trade Discount Program. Therefore,
notice is hereby given that on Trader Program’’ or ‘‘Program’’).4 while all 10,000 contracts would count
September 13, 2016, Chicago Board To participate in the Frequent Trader when determining the tier, the
Options Exchange, Incorporated (the Program, Customers register with the Customer’s rebate would be based on
‘‘Exchange’’ or ‘‘CBOE’’) filed with the Exchange. Once registered, the the amount of the fees assessed for 5,000
Securities and Exchange Commission Customer is provided a unique contracts, not on the value of the total
(the ‘‘Commission’’) the proposed rule identification number (‘‘FTID’’) that can 10,000 contracts executed). The
be affixed to each of its orders. The thresholds and rebates are as follows:
change as described in Items I, II, and
III below, which Items have been FTID allows the Exchange to identify
and aggregate all electronic and manual RUT
prepared by the Exchange. The
Commission is publishing this notice to trades during both the Regular Trading
Hours and Extended Trading Hours RUT fee
solicit comments on the proposed rule Monthly RUT contracts
Tier rebate
sessions from that Customer for traded
change from interested persons. (%)
purposes of determining whether the
I. Self-Regulatory Organization’s Customer meets any of the various 1 ........ 4,000–7,999 ................... 5
Statement of the Terms of Substance of volume thresholds. The Customer has to 2 ........ 8,000–14,999 ................. 10
the Proposed Rule Change provide its FTID to the Trading Permit 3 ........ 15,000 and above ......... 15
Holder (‘‘TPH’’) submitting that
The Exchange proposes to amend its Customer’s order to the Exchange The Exchange notes that the highest
Frequent Trader Program. The text of (executing agent’’ or ‘‘executing TPH’’) achieved threshold rebate rate will
the proposed rule change is available on and that executing TPH would have to apply from the first executed contract
the Exchange’s Web site (http:// enter the Customer’s FTID on each of (e.g., if a Customer or Professional
www.cboe.com/AboutCBOE/ that Customer’s orders. executes 10,000 RUT contracts in a
mstockstill on DSK3G9T082PROD with NOTICES
CBOELegalRegulatoryHome.aspx), at month, the Tier 2 10% rebate rate would
the Exchange’s Office of the Secretary, 3 The Exchange initially filed the proposed
apply to all 10,000 RUT contracts). The
and at the Commission’s Public change on September 1, 2016 (SR–CBOE–2016– Exchange believes the tiered program
Reference Room. 065). On September 13, 2016, the Exchange
withdrew that filing and submitted this filing. 5 The Exchange notes that only transaction fees
4 See Securities Exchange Act Release No. 77554 would be discounted (i.e., no other surcharges, such
1 15 U.S.C. 78s(b)(1). (April 7, 2016), 81 FR 21928 (April 13, 2016) (SR– as the Index License Surcharge Fee, would be
2 17 CFR 240.19b–4. CBOE–2016–023). rebated or discounted).
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![66708 Federal Register / Vol. 81, No. 188 / Wednesday, September 28, 2016 / Notices
via a distribution to one or more of its III. Date of Effectiveness of the Reference Room, 100 F Street NE.,
executing Clearing Trading Permit Proposed Rule Change and Timing for Washington, DC 20549, on official
Holders will provide Professionals with Commission Action business days between the hours of
a convenient manner in which to The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the
receive their rebates, which perfects the effective pursuant to Section 19(b)(3)(A) filing also will be available for
mechanism for a free and open market. of the Act 12 and paragraph (f) of Rule inspection and copying at the principal
19b–4 13 thereunder. At any time within office of the Exchange. All comments
Lastly, the Exchange believes the received will be posted without change;
proposed update to the Frequent Trader 60 days of the filing of the proposed rule
change, the Commission summarily may the Commission does not edit personal
Program—Volume Corrections Form identifying information from
along with the clarifying, non- temporarily suspend such rule change if
it appears to the Commission that such submissions. You should submit only
substantive and organizational changes information that you wish to make
action is necessary or appropriate in the
maintains clarity in the Form and Fees available publicly. All submissions
public interest, for the protection of
Schedule, respectively, and avoids investors, or otherwise in furtherance of should refer to File Number SR–CBOE–
potential confusion given the proposed the purposes of the Act. If the 2016–068, and should be submitted on
changes to expand the Frequent Trader Commission takes such action, the or before October 19, 2016.
Program. Alleviation of confusion Commission will institute proceedings For the Commission, by the Division of
removes impediments to, and perfects to determine whether the proposed rule Trading and Markets, pursuant to delegated
the mechanism for a free and open change should be approved or authority.14
market and a national market system, disapproved. Brent J. Fields,
and, in general, protects investors and Secretary.
IV. Solicitation of Comments
the public interest of market [FR Doc. 2016–23322 Filed 9–27–16; 8:45 am]
participants. Interested persons are invited to BILLING CODE 8011–01–P
submit written data, views, and
B. Self-Regulatory Organization’s arguments concerning the foregoing,
Statement on Burden on Competition including whether the proposed rule SECURITIES AND EXCHANGE
change is consistent with the Act. COMMISSION
CBOE does not believe that the Comments may be submitted by any of
proposed rule change will impose any the following methods: [Release No. 34–78909; File No. SR–BX–
burden on competition that is not 2016–046]
necessary or appropriate in furtherance Electronic Comments
Self-Regulatory Organizations;
of the purposes of the Act because, • Use the Commission’s Internet
NASDAQ BX, Inc.; Notice of Filing of
while the rebates apply only to comment form (http://www.sec.gov/
Proposed Rule Change To Amend BX
Customers and Professionals, the rules/sro.shtml); or
• Send an email to rule-comments@ Rules 4702 and 4703
proposed change is designed to
encourage increased Customer and sec.gov. Please include File Number SR– September 22, 2016.
Professional VIX, SPX and RUT options CBOE–2016–068 on the subject line. Pursuant to Section 19(b)(1) of the
volume, which provides greater trading Paper Comments Securities Exchange Act of 1934
opportunities for all market (‘‘Act’’),1 and Rule 19b–4 thereunder,2
• Send paper comments in triplicate notice is hereby given that on
participants. Additionally, the Exchange to Secretary, Securities and Exchange
notes that incentive programs based on September 13, 2016, NASDAQ BX, Inc.
Commission, 100 F Street NE., (‘‘BX’’ or ‘‘Exchange’’) filed with the
Customer and Professional volume Washington, DC 20549–1090.
already exist elsewhere within the Securities and Exchange Commission
All submissions should refer to File (‘‘SEC’’ or ‘‘Commission’’) the proposed
industry.11 The Exchange believes that Number SR–CBOE–2016–068. This file
the proposed rule change will not cause rule change as described in Items I and
number should be included on the II below, which Items have been
an unnecessary burden on intermarket subject line if email is used. To help the prepared by the Exchange. The
competition because VIX and SPX Commission process and review your Commission is publishing this notice to
products are only traded on CBOE and comments more efficiently, please use solicit comments on the proposed rule
RUT products are only traded on CBOE only one method. The Commission will change from interested persons.
and C2 Options Exchange, Incorporated. post all comments on the Commission’s
To the extent that the proposed changes Internet Web site (http://www.sec.gov/ I. Self-Regulatory Organization’s
make CBOE a more attractive rules/sro.shtml). Copies of the Statement of the Terms of Substance of
marketplace for market participants at submission, all subsequent the Proposed Rule Change
other exchanges, such market amendments, all written statements The Exchange proposes to amend BX
participants are welcome to become with respect to the proposed rule Rules 4702, Order Types, and 4703,
CBOE market participants. change that are filed with the Order Attributes, to change the way in
Commission, and all written which Post Only Orders interact with
C. Self-Regulatory Organization’s communications relating to the resting Non-Display orders and
Statement on Comments on the proposed rule change between the preventing the execution of midpoint
Proposed Rule Change Received From Commission and any person, other than pegged orders during a crossed market.
mstockstill on DSK3G9T082PROD with NOTICES
Members, Participants, or Others those that may be withheld from the The text of the proposed rule change
public in accordance with the is available on the Exchange’s Web site
The Exchange neither solicited nor provisions of 5 U.S.C. 552, will be at http://nasdaqbx.cchwallstreet.com/,
received comments on the proposed available for Web site viewing and at the principal office of the Exchange,
rule change. printing in the Commission’s Public
14 17 CFR 200.30–3(a)(12).
12 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1).
11 Id. 13 17 CFR 240.19b–4(f). 2 17 CFR 240.19b–4.
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Document Created: 2016-09-28 01:07:25
Document Modified: 2016-09-28 01:07:25
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| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| FR Citation | 81 FR 66706 |
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