81_FR_91130 81 FR 90889 - Self-Regulatory Organizations; CBOE Futures Exchange, LLC; Notice of Filing of a Proposed Rule Change Regarding Attempted Fraudulent Acts

81 FR 90889 - Self-Regulatory Organizations; CBOE Futures Exchange, LLC; Notice of Filing of a Proposed Rule Change Regarding Attempted Fraudulent Acts

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 241 (December 15, 2016)

Page Range90889-90890
FR Document2016-30078

Federal Register, Volume 81 Issue 241 (Thursday, December 15, 2016) 
[Federal Register Volume 81, Number 241 (Thursday, December 15, 2016)]
[Notices]
[Pages 90889-90890]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-30078]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79514; File No. SR-CFE-2016-004]


Self-Regulatory Organizations; CBOE Futures Exchange, LLC; Notice 
of Filing of a Proposed Rule Change Regarding Attempted Fraudulent Acts

December 9, 2016.
    Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on December 2, 2016 CBOE 
Futures Exchange, LLC (``CFE'' or ``Exchange'') filed with the 
Securities and Exchange Commission (``SEC'' or ``Commission'') the 
proposed rule change described in Items I and II below, which Items 
have been prepared by CFE. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons. 
CFE also has filed this proposed rule change with the Commodity Futures 
Trading Commission (``CFTC''). CFE filed a written certification with 
the CFTC under Section 5c(c) of the Commodity Exchange Act (``CEA'') 
\2\ on December 1, 2016.
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    \1\ 15 U.S.C. 78s(b)(7).
    \2\ 7 U.S.C. 7a-2(c).
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I. Self-Regulatory Organization's Description of the Proposed Rule 
Change

    The Exchange proposes to amend CFE Rule 601 related to fraudulent 
acts. The scope of this filing is limited solely to the application of 
the rule amendments to security futures that may be traded on CFE. The 
text of the proposed rule change is attached as Exhibit 4 to the filing 
but is not attached to the publication of this notice.

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

    In its filing with the Commission, CFE 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. CFE has prepared summaries, set forth in Sections A, B, 
and C below, of the most significant aspects of such statements.

[[Page 90890]]

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

1. Purpose
    The purpose of the proposed CFE rule amendments included as part of 
this rule change is to amend CFE Rule 601 (Fraudulent Acts) to broaden 
the language of Rule 601 to also prohibit attempts to engage in any 
fraudulent act or scheme prohibited by Rule 601. The amendment to CFE 
Rule 601 is being made at the request of the CFTC. The rule amendments 
included as part of this rule change are to apply to all products 
traded on CFE, including both non-security futures and security 
futures.
    CFE Rule 601 currently prohibits CFE Trading Privilege Holders and 
their related parties from engaging in any fraudulent act or in any 
scheme to defraud, deceive, or trick, in connection with or related to 
any trade on or other activity related to the Exchange or the clearing 
organization for the Exchange. Pursuant to CFE Rule 308, Rule 601 also 
applies to any person that initiates or executes a transaction on or 
subject to Exchange rules directly or through an intermediary and to 
any person for whose benefit such a transaction is initiated or 
executed.
    The proposed rule change broadens the language of Rule 601 to also 
prohibit attempts to engage in any fraudulent act or any scheme 
prohibited by Rule 601.
    This change is consistent with CFE Rule 604 (Adherence to Law) 
which prohibits conduct in violation of applicable law, including any 
provisions of the CEA and CFTC regulations which prohibit attempts to 
engage in fraudulent acts, such as CFTC Regulation 180.1 \3\ 
(Prohibition on the employment, or attempted employment, of 
manipulative and deceptive devices).
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    \3\ 17 CFR 180.1.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\4\ in general, and furthers the 
objectives of Sections 6(b)(5) \5\ and 6(b)(7) \6\ in particular in 
that it is designed:
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
    \6\ 15 U.S.C. 78f(b)(7).
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     To prevent fraudulent and manipulative acts and practices,
     to promote just and equitable principles of trade, and
     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 believes that the proposed rule change would 
strengthen its ability to carry out its responsibilities as a self-
regulatory organization by providing further guidance with regard to 
attempted fraudulent acts by TPHs, their related parties, and others 
that access CFE's market. In particular, the proposed rule change makes 
it clear that attempts to engage in fraudulent acts are prohibited. The 
proposed rule change would also contribute to enhanced protection of 
CFE markets and market participants.

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

    CFE does not believe that the proposed rule change will impose any 
burden on competition not necessary or appropriate in furtherance of 
the purposes of the Act, in that the rule change will enhance CFE's 
ability to carry out its responsibilities as a self-regulatory 
organization. The Exchange believes that the proposed rule change is 
equitable and not unfairly discriminatory because the amendments 
regarding attempted fraudulent acts or schemes apply equally to all 
market participants.

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

    No written comments were solicited or received with respect to the 
proposed rule change.

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

    The proposed rule change will become operative on December 15, 
2016. At any time within 60 days of the date of the filing by the 
Exchange of a written certification with the CFTC under Section 5c(c) 
of the CEA, the Commission, after consultation with the CFTC, may 
summarily abrogate the proposed rule change and require that the 
proposed rule change be refiled in accordance with the provisions of 
Section 19(b)(1) of the Act.\7\
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    \7\ 15 U.S.C. 78s(b)(1).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-CFE-2016-004 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-CFE-2016-004. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549, on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of such filing 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-CFE-2016-004, and should be 
submitted on or before January 5, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(73).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2016-30078 Filed 12-14-16; 8:45 am]
 BILLING CODE 8011-01-P

Federal Register / Vol. 81, No. 241 / Thursday, December 15, 2016 / Notices 90889 6(b)(5) of the Exchange Act 65 and the V. Accelerated Approval of Proposed SECURITIES AND EXCHANGE rules and regulations thereunder Rule Change as Modified by COMMISSION applicable to a national securities Amendment No. 3 exchange. [Release No. 34–79514; File No. SR–CFE– The Commission finds good cause to IV. Solicitation of Comments on approve the proposed rule change, as 2016–004] Amendment No. 3 modified by Amendment No. 3, prior to Self-Regulatory Organizations; CBOE Interested persons are invited to the thirtieth day after the date of Futures Exchange, LLC; Notice of submit written data, views, and publication of notice of the filing of arguments concerning whether Filing of a Proposed Rule Change Amendment No. 3 in the Federal Regarding Attempted Fraudulent Acts Amendment No. 3 is consistent with the Register. In Amendment No. 3, the Exchange Act. Comments may be Exchange (among other things): (1) December 9, 2016. submitted by any of the following Provided additional information, which methods: Pursuant to Section 19(b)(7) of the helped the Commission conclude that Securities Exchange Act of 1934 Electronic Comments the Index is not susceptible to (‘‘Act’’),1 notice is hereby given that on • Use the Commission’s Internet manipulation; and (2) expanded the December 2, 2016 CBOE Futures comment form (http://www.sec.gov/ scope of NYSE Arca Equities Rule Exchange, LLC (‘‘CFE’’ or ‘‘Exchange’’) rules/sro.shtml); or 8.201(g) which, as discussed above, filed with the Securities and Exchange • Send an email to rule-comments@ appropriately tailors the rule to Commission (‘‘SEC’’ or ‘‘Commission’’) sec.gov. Please include File Number SR– accommodate the listing and trading of the proposed rule change described in NYSEArca–2016–84 on the subject line. an issue of Commodity-Based Trust Items I and II below, which Items have Paper Comments Shares that overlies both a commodity been prepared by CFE. The Commission and currencies. Accordingly, is publishing this notice to solicit • Send paper comments in triplicate Amendment No. 3 helped the to Secretary, Securities and Exchange comments on the proposed rule change Commission find that the proposed from interested persons. CFE also has Commission, 100 F Street NE., listing and trading of the Shares is filed this proposed rule change with the Washington, DC 20549–1090. consistent with the portion of Section Commodity Futures Trading All submissions should refer to File 6(b)(5) of the Exchange Act,66 which Commission (‘‘CFTC’’). CFE filed a Number SR–NYSEArca–2016–84. This requires that the rules of a national written certification with the CFTC file number should be included on the subject line if email is used. To help the securities exchange must be designed to, under Section 5c(c) of the Commodity Commission process and review your among other things, prevent fraudulent Exchange Act (‘‘CEA’’) 2 on December 1, comments more efficiently, please use and manipulative acts and practices 2016. only one method. The Commission will and, in general, to protect investors and post all comments on the Commission’s the public interest. Accordingly, the I. Self-Regulatory Organization’s Internet Web site (http://www.sec.gov/ Commission finds good cause, pursuant Description of the Proposed Rule rules/sro.shtml). Copies of the to Section 19(b)(2) of the Exchange Change submission, all subsequent Act,67 to approve the proposed rule The Exchange proposes to amend CFE amendments, all written statements change, as modified by Amendment No. Rule 601 related to fraudulent acts. The with respect to the proposed rule 3, on an accelerated basis. scope of this filing is limited solely to change that are filed with the VI. Conclusion the application of the rule amendments Commission, and all written to security futures that may be traded on communications relating to the It is therefore ordered, pursuant to proposed rule change between the CFE. The text of the proposed rule Section 19(b)(2) of the Exchange Act,68 change is attached as Exhibit 4 to the Commission and any person, other than that the proposed rule change (SR– those that may be withheld from the filing but is not attached to the NYSEArca–2016–84), as modified by publication of this notice. public in accordance with the Amendment No. 3 be, and it hereby is, provisions of 5 U.S.C. 552, will be approved on an accelerated basis. II. Self-Regulatory Organization’s available for Web site viewing and Statement of the Purpose of, and printing in the Commission’s Public For the Commission, by the Division of Trading and Markets, pursuant to delegated Statutory Basis for, the Proposed Rule Reference Room, 100 F Street NE., Change Washington, DC 20549, on official authority.69 business days between the hours of Eduardo A. Aleman, In its filing with the Commission, CFE 10:00 a.m. and 3:00 p.m. Copies of the Assistant Secretary. included statements concerning the filing also will be available for [FR Doc. 2016–30081 Filed 12–14–16; 8:45 am] purpose of and basis for the proposed inspection and copying at the principal BILLING CODE 8011–01–P rule change and discussed any office of the Exchange. All comments comments it received on the proposed received will be posted without change; rule change. The text of these statements the Commission does not edit personal may be examined at the places specified identifying information from in Item IV below. CFE has prepared submissions. You should submit only summaries, set forth in Sections A, B, rmajette on DSK2TPTVN1PROD with NOTICES information that you wish to make and C below, of the most significant available publicly. All submissions aspects of such statements. should refer to File Number SR– NYSEArca–2016–84 and should be 66 15 U.S.C. 78f(b)(5). submitted on or before January 5, 2017. 67 15 U.S.C. 78s(b)(2). 68 Id. 1 15 U.S.C. 78s(b)(7). 65 15 U.S.C. 78f(b)(5). 69 17 CFR 200.30–3(a)(12). 27 U.S.C. 7a–2(c). VerDate Sep<11>2014 15:19 Dec 14, 2016 Jkt 241001 PO 00000 Frm 00118 Fmt 4703 Sfmt 4703 E:\FR\FM\15DEN1.SGM 15DEN1

90890 Federal Register / Vol. 81, No. 241 / Thursday, December 15, 2016 / Notices A. Self-Regulatory Organization’s system, and in general, to protect Electronic Comments Statement of the Purpose of, and investors and the public interest. Statutory Basis for, the Proposed Rule The Exchange believes that the • Use the Commission’s Internet Change proposed rule change would strengthen comment form (http://www.sec.gov/ its ability to carry out its responsibilities rules/sro.shtml); or 1. Purpose as a self-regulatory organization by • Send an email to rule-comments@ The purpose of the proposed CFE rule providing further guidance with regard sec.gov. Please include File Number SR– amendments included as part of this to attempted fraudulent acts by TPHs, CFE–2016–004 on the subject line. rule change is to amend CFE Rule 601 their related parties, and others that (Fraudulent Acts) to broaden the access CFE’s market. In particular, the Paper Comments language of Rule 601 to also prohibit proposed rule change makes it clear that attempts to engage in any fraudulent act • Send paper comments in triplicate attempts to engage in fraudulent acts are to Secretary, Securities and Exchange or scheme prohibited by Rule 601. The prohibited. The proposed rule change amendment to CFE Rule 601 is being Commission, 100 F Street NE., would also contribute to enhanced made at the request of the CFTC. The Washington, DC 20549–1090. protection of CFE markets and market rule amendments included as part of participants. All submissions should refer to File this rule change are to apply to all Number SR–CFE–2016–004. This file products traded on CFE, including both B. Self-Regulatory Organization’s Statement on Burden on Competition number should be included on the non-security futures and security subject line if email is used. To help the futures. CFE does not believe that the Commission process and review your CFE Rule 601 currently prohibits CFE proposed rule change will impose any comments more efficiently, please use Trading Privilege Holders and their burden on competition not necessary or related parties from engaging in any only one method. The Commission will appropriate in furtherance of the post all comments on the Commission’s fraudulent act or in any scheme to purposes of the Act, in that the rule defraud, deceive, or trick, in connection Internet Web site (http://www.sec.gov/ change will enhance CFE’s ability to rules/sro.shtml). Copies of the with or related to any trade on or other carry out its responsibilities as a self- activity related to the Exchange or the submission, all subsequent regulatory organization. The Exchange clearing organization for the Exchange. amendments, all written statements believes that the proposed rule change Pursuant to CFE Rule 308, Rule 601 also with respect to the proposed rule is equitable and not unfairly applies to any person that initiates or discriminatory because the amendments change that are filed with the executes a transaction on or subject to regarding attempted fraudulent acts or Commission, and all written Exchange rules directly or through an schemes apply equally to all market communications relating to the intermediary and to any person for participants. proposed rule change between the whose benefit such a transaction is Commission and any person, other than initiated or executed. C. Self-Regulatory Organization’s those that may be withheld from the The proposed rule change broadens Statement on Comments on the public in accordance with the the language of Rule 601 to also prohibit Proposed Rule Change Received From provisions of 5 U.S.C. 552, will be attempts to engage in any fraudulent act Members, Participants, or Others available for Web site viewing and or any scheme prohibited by Rule 601. No written comments were solicited printing in the Commission’s Public This change is consistent with CFE or received with respect to the proposed Reference Room, 100 F Street NE., Rule 604 (Adherence to Law) which rule change. Washington, DC 20549, on official prohibits conduct in violation of business days between the hours of applicable law, including any III. Date of Effectiveness of the Proposed Rule Change and Timing for 10:00 a.m. and 3:00 p.m. Copies of such provisions of the CEA and CFTC Commission Action filing also will be available for regulations which prohibit attempts to inspection and copying at the principal engage in fraudulent acts, such as CFTC The proposed rule change will office of the Exchange. All comments Regulation 180.1 3 (Prohibition on the become operative on December 15, employment, or attempted employment, received will be posted without change; 2016. At any time within 60 days of the the Commission does not edit personal of manipulative and deceptive devices). date of the filing by the Exchange of a identifying information from 2. Statutory Basis written certification with the CFTC submissions. You should submit only under Section 5c(c) of the CEA, the information that you wish to make The Exchange believes that the Commission, after consultation with the proposed rule change is consistent with available publicly. All submissions CFTC, may summarily abrogate the Section 6(b) of the Act,4 in general, and should refer to File Number SR–CFE– proposed rule change and require that furthers the objectives of Sections 2016–004, and should be submitted on the proposed rule change be refiled in 6(b)(5) 5 and 6(b)(7) 6 in particular in or before January 5, 2017. accordance with the provisions of that it is designed: Section 19(b)(1) of the Act.7 For the Commission, by the Division of • To prevent fraudulent and Trading and Markets, pursuant to delegated manipulative acts and practices, IV. Solicitation of Comments authority.8 • to promote just and equitable Interested persons are invited to Eduardo A. Aleman, principles of trade, and • to remove impediments to and submit written data, views, and Assistant Secretary. rmajette on DSK2TPTVN1PROD with NOTICES perfect the mechanism of a free and arguments concerning the foregoing, [FR Doc. 2016–30078 Filed 12–14–16; 8:45 am] open market and a national market including whether the proposed rule BILLING CODE 8011–01–P change is consistent with the Act. 3 17 CFR 180.1. Comments may be submitted by any of 4 15 U.S.C. 78f(b). the following methods: 5 15 U.S.C. 78f(b)(5). 6 15 U.S.C. 78f(b)(7). 7 15 U.S.C. 78s(b)(1). 8 17 CFR 200.30–3(a)(73). VerDate Sep<11>2014 15:19 Dec 14, 2016 Jkt 241001 PO 00000 Frm 00119 Fmt 4703 Sfmt 9990 E:\FR\FM\15DEN1.SGM 15DEN1


Document Created: 2016-12-15 01:10:18
Document Modified: 2016-12-15 01:10:18
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 90889 
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