81 FR 71772 - 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 201 (October 18, 2016)
Federal Register Volume 81, Issue 201 (October 18, 2016)
| Page Range | 71772-71774 | |
| FR Document | 2016-25085 |
[Federal Register Volume 81, Number 201 (Tuesday, October 18, 2016)] [Notices] [Pages 71772-71774] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-25085] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79086; File No. SR-CBOE-2016-072] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule October 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 [[Page 71773]] September 30, 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 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 its Fees Schedule, effective October 3, 2016. Specifically, the Exchange proposes to increase the transaction fee for Professional Customers and Voluntary Professionals (``W'' origin code) (``Professionals'') for all manual transactions in all penny and non-penny equity, index (excluding Underlying Symbol List A \3\), ETF and ETN option classes from $0.00 per contract to $0.12 per contract. The Exchange recently reduced this fee from $0.25 per contract to $0.00 per contract, which amount was comparable to the amount assessed to similar transactions for Professionals at another exchange.\4\ Upon further review of manual transaction fees, the Exchange proposes to increase the fee to restore a more competitive balance among Professionals and broker-dealers (which pay manual transaction fees in varying amounts \5\) with respect to manual transactions on the Exchange's trading floor. The Exchange notes the proposed $0.12 fee is lower than the $0.25 fee assessed to Professionals for manual transactions prior to September 1, 2016. Additionally, the proposed change is consistent with the approximate average transaction fee amount assessed to market-makers for manual transactions.\6\ --------------------------------------------------------------------------- \3\ See CBOE Fees Schedule, Footnote 34. \4\ See Securities Exchange Act Release No. 34-78786 (September 8, 2016), 81 FR 63242 (September 14, 2016) (SR-CBOE-2016-066). \5\ See CBOE Fees Schedule, Equity, ETF and ETN, and Index Options Rate Tables. \6\ See CBOE Fees Schedule, Liquidity Provider Sliding Scale for the transaction fees for market-makers based on volume thresholds. --------------------------------------------------------------------------- 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.\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. Additionally, the Exchange believes the proposed rule change is consistent with Section 6(b)(4) of the Act,\9\ which requires that Exchange rules provide for the equitable allocation of reasonable dues, fees, and other charges among its Trading Permit Holders and other persons using its facilities. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f(b). \8\ 15 U.S.C. 78f(b)(5). \9\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- The Exchange believes it is reasonable to increase the transaction fee for Professionals for manual transactions in all penny and non- penny equity, index (excluding Underlying Symbol List A), ETF and ETN options classes to $0.12 per contract because it is lower than the $0.25 fee assessed to Professionals for manual transactions prior to September 1, 2016. Additionally, the proposed fee is consistent with the approximate average transaction fee amount assessed to market- makers for manual transactions. The Exchange believes it is equitable and not unfairly discriminatory to propose to increase the manual transaction fee only for Professionals because it is designed to create a more competitive balance between Professionals (who have trading characteristics akin to broker-dealers) and broker-dealers for open outcry trades. With respect to manual transactions, Professionals often participate on trades in a similar manner as broker-dealers, and therefore the Exchange believes it is reasonable for Professionals to pay a transaction fee for those trades so they can compete on more equal footing for participation on those trades.\10\ Additionally, because the proposed fee is lower than the $0.25 fee Professionals were assessed for manual transactions prior to September 1, 2016, the Exchange believes the proposed fee change will continue to attract a greater number of Professional orders for those classes, which may create greater trading opportunities that benefit all market participants. The Exchange lastly notes assessing a different fee amount for manual executions than for electronic executions is equitable and not unfairly discriminatory because the Exchange has expended considerable resources to develop its electronic trading platforms and recoups the costs of such expenditures through electronic transaction fees. --------------------------------------------------------------------------- \10\ See CBOE Rule 1.1(fff) and (ggg) (including Interpretation and Policy .01 to paragraph (ggg)) for the definition of Professionals. --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The Exchange does not believe the proposed rule change will impose any burden on intramarket competition not necessary or appropriate in furtherance of the purposes of the Act because, while increasing the transaction rate to $0.12 for manual executions in penny and non-penny equity, index (excluding Underlying Symbol List A), ETF and ETN option classes only applies to Professionals, broker-dealers currently pay transaction fees when trading as parties to those executions. The proposed change is designed to create a more competitive balance between Professionals and broker- dealers for open outcry trading. The Exchange does not believe the proposed rule change will impose any burden on intermarket competition that is not necessary or [[Page 71774]] appropriate in furtherance of the purposes of the Act because the proposed changes only affect trading on CBOE. To the extent that the proposed changes make CBOE a more attractive marketplace for market participants at other exchanges, such market participants are welcome to become CBOE market participants. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange neither solicited nor received comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \11\ and paragraph (f) of Rule 19b-4 \12\ 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. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78s(b)(3)(A). \12\ 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-2016-072 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-2016-072. 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-2016-072 and should be submitted on or before November 8, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-25085 Filed 10-17-16; 8:45 am] BILLING CODE 8011-01-P
![71772 Federal Register / Vol. 81, No. 201 / Tuesday, October 18, 2016 / Notices
legal and policy issues raised by the that rebuttal by November 22, 2016. The number should be included on the
proposed rule change, as modified by Commission asks that commenters subject line if email is used. To help the
Amendments No. 1 and 2. Institution of address the sufficiency of the Commission process and review your
proceedings does not indicate that the Exchange’s statements in support of the comments more efficiently, please use
Commission has reached any proposal, which are set forth in the only one method. The Commission will
conclusions with respect to any of the Notice,18 in addition to any other post all comments on the Commission’s
issues involved. Rather, as described comments they may wish to submit Internet Web site (http://www.sec.gov/
below, the Commission seeks and about the proposed rule change, as rules/sro.shtml). Copies of the
encourages interested persons to modified by Amendments No. 1 and 2.19 submission, all subsequent
provide comments on the proposed rule In particular, the Commission seeks amendments, all written statements
change, as modified by Amendments comment on whether the proposed rules with respect to the proposed rule
No. 1 and 2. regarding ETPs, which would not change that are filed with the
Pursuant to Section 19(b)(2)(B) of the expressly apply on a continuing basis, Commission, and all written
Act,15 the Commission is providing are consistent with the Act.20 The communications relating to the
notice of the grounds for disapproval Commission notes that, while the proposed rule change between the
under consideration. The Commission is Exchange represents that it ‘‘does not Commission and any person, other than
instituting proceedings to allow for intend to list ETPs on its Pillar those that may be withheld from the
additional analysis of the proposed rule platform,’’ 21 the proposed rule text public in accordance with the
change’s consistency with Section contains no such limitation, and the provisions of 5 U.S.C. 552, will be
6(b)(5) of the Act, which requires, Exchange’s Form 19b–4 filing also available for Web site viewing and
among other things, that the rules of a describes the standards being proposed printing in the Commission’s Public
national securities exchange be as governing the ‘‘listing and trading’’ of Reference Room, 100 F Street NE.,
‘‘designed to prevent fraudulent and ETPs.22 Washington, DC 20549, on official
manipulative acts and practices, to Comments may be submitted by any business days between the hours of
promote just and equitable principles of of the following methods: 10:00 a.m. and 3:00 p.m. Copies of these
trade,’’ and ‘‘to protect investors and the Electronic Comments filings also will be available for
public interest.’’ 16 inspection and copying at the principal
• Use the Commission’s Internet office of the Exchange. All comments
III. Procedure: Request for Written comment form (http://www.sec.gov/ received will be posted without change;
Comments rules/sro.shtml); or the Commission does not edit personal
The Commission requests that • Send an email to rule-comments@ identifying information from
interested persons provide written sec.gov. Please include File Number SR– submissions. You should submit only
submissions of their views, data, and NYSE–2016–44 on the subject line. information that you wish to make
arguments with respect to the issues Paper Comments available publicly. All submissions
identified above, as well as any other should refer to File Number SR–NYSE–
concerns they may have with the • Send paper comments in triplicate
to Secretary, Securities and Exchange 2016–44 and should be submitted on or
proposal. In particular, the Commission before November 8, 2016. Rebuttal
invites the written views of interested Commission, 100 F Street NE.,
Washington, DC 20549–1090. comments should be submitted by
persons concerning whether the November 22, 2016.
proposal is consistent with Section All submissions should refer to File
Numbers SR–NYSE–2016–44. This file For the Commission, by the Division of
6(b)(5) or any other provision of the Act, Trading and Markets, pursuant to delegated
or the rules and regulations thereunder. 18 See authority.23
Notice, supra note 3.
Although there do not appear to be any 19 See Amendments No. 1 and 2 to the proposed Robert W. Errett,
issues relevant to approval or rule change, supra notes 4 and 7, respectively. Deputy Secretary.
disapproval that would be facilitated by 20 The Commission’s orders approving the generic
[FR Doc. 2016–25083 Filed 10–17–16; 8:45 am]
an oral presentation of views, data, and listing and trading of actively managed ETFs relied
upon the listing exchange’s representation that the BILLING CODE 8011–01–P
arguments, the Commission will listing criteria would apply on a continuing basis.
consider, pursuant to Rule 19b–4, any See, e.g., Securities Exchange Act Releases No.
request for an opportunity to make an 78396 (July 22, 2016), 81 FR 49698, 49701 (July 28, SECURITIES AND EXCHANGE
oral presentation.17 2016) (File No. SR–BATS–2015–100); No. 78397
(July 22, 2016), 81 FR 49320, 49324 (July 27, 2016) COMMISSION
Interested persons are invited to (File No. SR–NYSEArca–2015–110); and No. 78918
submit written data, views, and (Sept. 23, 2016), 81 FR 67033, 67035 (Sept. 29,
[Release No. 34–79086; File No. SR–CBOE–
arguments regarding whether the 2016) (File No. SR–NASDAQ–2016–104). Recent 2016–072]
proposal should be approved or Commission orders approving the listing and
trading of individual ETPs have similarly relied Self-Regulatory Organizations;
disapproved by November 8, 2016. Any upon representations by the listing exchange that Chicago Board Options Exchange,
person who wishes to file a rebuttal to all statements and representations made regarding
Incorporated; Notice of Filing and
any other person’s submission must file (a) the description of the portfolio, (b) limitations
on portfolio holdings or reference assets, or (c) the Immediate Effectiveness of a Proposed
15 Id.
applicability of exchange rules and surveillance Rule Change To Amend the Fees
procedures shall constitute continued listing Schedule
16 15 U.S.C. 78f(b)(5). requirements. See, e.g., Securities Exchange Act
17 Section 19(b)(2) of the Act, as amended by the Release No. 77920 (May 25, 2016), 81 FR 35086, October 12, 2016.
Securities Act Amendments of 1975, Public Law 35090 (June 1, 2016) (SR–NYSEArca–2016–46;
94–29 (June 4, 1975), grants the Commission approving listing and trading of shares of the Pursuant to Section 19(b)(1) of the
Lhorne on DSK30JT082PROD with NOTICES
flexibility to determine what type of proceeding— AdvisorShares Cornerstone Small Cap ETF); No. Securities Exchange Act of 1934 (the
either oral or notice and opportunity for written 78847 (Sept. 15, 2016), 81 FR 64560, 64562 (Sept. ‘‘Act’’),1 and Rule 19b–4 thereunder,2
comments—is appropriate for consideration of a 20, 2016) (File No. SR–BATS–2016–34; approving
listing and trading of shares of the ProShares Crude
notice is hereby given that on
particular proposal by a self-regulatory
organization. See Securities Act Amendments of Oil Strategy ETF).
21 See Notice, supra note 3, at 45581. 23 17 CFR 200.30–3(a)(57).
1975, Senate Comm. on Banking, Housing & Urban
1 15 U.S.C. 78s(b)(1).
Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30 22 See, e.g., Notice, supra note 3, at 45580, 45583
(1975). (emphasis added). 2 17 CFR 240.19b–4.
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![71774 Federal Register / Vol. 81, No. 201 / Tuesday, October 18, 2016 / Notices
appropriate in furtherance of the comments more efficiently, please use have been prepared by DTC. DTC filed
purposes of the Act because the only one method. The Commission will the proposed rule change pursuant to
proposed changes only affect trading on post all comments on the Commission’s Section 19(b)(3)(A) of the Act 3 and Rule
CBOE. To the extent that the proposed Internet Web site (http://www.sec.gov/ 19b–4(f)(4) thereunder.4 The proposed
changes make CBOE a more attractive rules/sro.shtml). Copies of the rule change was effective upon filing
marketplace for market participants at submission, all subsequent with the Commission. The Commission
other exchanges, such market amendments, all written statements is publishing this notice to solicit
participants are welcome to become with respect to the proposed rule comments on the proposed rule change
CBOE market participants. change that are filed with the from interested persons.
Commission, and all written
C. Self-Regulatory Organization’s I. Clearing Agency’s Statement of the
communications relating to the
Statement on Comments on the Terms of Substance of the Proposed
proposed rule change between the
Proposed Rule Change Received From Rule Change
Commission and any person, other than
Members, Participants, or Others those that may be withheld from the The proposed rule change consists of
The Exchange neither solicited nor public in accordance with the modifications to the DTC Rules, By-laws
received comments on the proposed provisions of 5 U.S.C. 552, will be and Organization Certificate (‘‘Rules’’) 5
rule change. available for Web site viewing and in order to clarify certain provisions
printing in the Commission’s Public relating to DTC’s Pledge services, as
III. Date of Effectiveness of the described in greater detail below.6
Reference Room, 100 F Street NE.,
Proposed Rule Change and Timing for
Washington, DC 20549 on official II. Clearing Agency’s Statement of the
Commission Action business days between the hours of Purpose of, and Statutory Basis for, the
The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the Proposed Rule Change
effective pursuant to Section 19(b)(3)(A) filing also will be available for
of the Act 11 and paragraph (f) of Rule inspection and copying at the principal In its filing with the Commission, the
19b–4 12 thereunder. At any time within office of the Exchange. All comments clearing agency included statements
60 days of the filing of the proposed rule received will be posted without change; concerning the purpose of and basis for
change, the Commission summarily may the Commission does not edit personal the proposed rule change and discussed
temporarily suspend such rule change if identifying information from any comments it received on the
it appears to the Commission that such submissions. You should submit only proposed rule change. The text of these
action is necessary or appropriate in the information that you wish to make statements may be examined at the
public interest, for the protection of available publicly. All submissions places specified in Item IV below. The
investors, or otherwise in furtherance of should refer to File Number SR–CBOE– clearing agency has prepared
the purposes of the Act. If the 2016–072 and should be submitted on summaries, set forth in sections A, B,
Commission takes such action, the or before November 8, 2016. and C below, of the most significant
Commission will institute proceedings aspects of such statements.
For the Commission, by the Division of
to determine whether the proposed rule Trading and Markets, pursuant to delegated (A) Clearing Agency’s Statement of the
change should be approved or authority.13 Purpose of, and Statutory Basis for, the
disapproved. Robert W. Errett, Proposed Rule Change
IV. Solicitation of Comments Deputy Secretary.
1. Purpose
[FR Doc. 2016–25085 Filed 10–17–16; 8:45 am]
Interested persons are invited to Delivery or Pledge of Securities at DTC
BILLING CODE 8011–01–P
submit written data, views, and
DTC holds Eligible Securities on
arguments concerning the foregoing,
behalf of its Participants and reflects the
including whether the proposed rule SECURITIES AND EXCHANGE transfer of interests in those securities
change is consistent with the Act. COMMISSION by computerized book entry. There are
Comments may be submitted by any of
[Release No. 34–79088; File No. SR–DTC– two fundamental types of book-entry
the following methods:
2016–009] transfer under the Rules: Delivery and
Electronic Comments Pledge. A Delivery or a Pledge may be
• Use the Commission’s Internet Self-Regulatory Organizations; The made (i) free of payment, where no
Depository Trust Company; Notice of funds are transferred through DTC, or
comment form (http://www.sec.gov/
Filing and Immediate Effectiveness of (ii) versus payment through DTC net
rules/sro.shtml); or
• Send an email to rule-comments@ a Proposed Rule Change To Clarify funds settlement in the ordinary course
sec.gov. Please include File Number SR– Certain Rules Provisions Relating to of business. The clarifying amendments
CBOE–2016–072 on the subject line. Pledges in the proposed rule change relate to
Pledges.
Paper Comments October 12, 2016.
A Participant may instruct DTC to
Pursuant to Section 19(b)(1) of the Deliver Securities from its Account to
• Send paper comments in triplicate Securities Exchange Act of 1934
to Secretary, Securities and Exchange the Account of another Participant, in
(‘‘Act’’) 1 and Rule 19b–4,2 notice is
Commission, 100 F Street NE., which case ownership of the Securities
hereby given that on October 3, 2016,
Washington, DC 20549–1090. is transferred to the Receiver.
The Depository Trust Company (‘‘DTC’’)
All submissions should refer to File Alternatively, a Participant (in this
filed with the Securities and Exchange
context, a Pledgor) that is granting a
Lhorne on DSK30JT082PROD with NOTICES
Number SR–CBOE–2016–072. This file Commission (‘‘Commission’’) the
number should be included on the proposed rule change as described in 3 15 U.S.C. 78s(b)(3)(A).
subject line if email is used. To help the Items I, II and III below, which Items 4 17 CFR 240.19b–4(f)(4).
Commission process and review your 5 Available at http://www.dtcc.com/∼/media/
13 17 CFR 200.30–3(a)(12). Files/Downloads/legal/rules/dtc_rules.pdf.
11 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1). 6 Capitalized terms not defined herein are defined
12 17 CFR 240.19b–4(f). 2 17 CFR 240.19b–4. in the Rules, supra note 5.
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Document Created: 2016-10-17 23:52:13
Document Modified: 2016-10-17 23:52:13
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| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| FR Citation | 81 FR 71772 |
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