81 FR 95236 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Credit Option Margin Pilot Program Through July 18, 2017
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 248 (December 27, 2016)
Federal Register Volume 81, Issue 248 (December 27, 2016)
| Page Range | 95236-95238 | |
| FR Document | 2016-31113 |
[Federal Register Volume 81, Number 248 (Tuesday, December 27, 2016)] [Notices] [Pages 95236-95238] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-31113] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79621; File No. SR-CBOE-2016-089] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Credit Option Margin Pilot Program Through July 18, 2017 December 20, 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 December 14, 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 and II below, which Items have been prepared by the Exchange. The Exchange filed the proposal as a ``non-controversial'' proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) thereunder.\4\ 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. \3\ 15 U.S.C. 78s(b)(3)(A)(iii). \4\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change CBOE proposes to amend Rule 12.3 by extending the Credit Option Margin Pilot Program through July 18, 2017. 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 On February 2, 2011, the Commission approved the Exchange's proposal to establish a Credit Option Margin Pilot Program (``Program'').\5\ The proposal became effective on a pilot basis to run on a parallel track with Financial Industry Regulatory Authority (``FINRA'') Rule 4240 that similarly operates on an interim pilot basis.\6\ --------------------------------------------------------------------------- \5\ See Securities Exchange Act Release No. 63819 (February 2, 2011), 76 FR 6838 (February 8, 2011) order approving (SR-CBOE-2010- 106). To implement the Program, the Exchange amended Rule 12.3(l), Margin Requirements, to make CBOE's margin requirements for Credit Options consistent with Financial Industry Regulatory Authority (``FINRA'') Rule 4240, Margin Requirements for Credit Default Swaps. CBOE's Credit Options (i.e., Credit Default Options and Credit Default Basket Options) are analogous to credit default swaps. \6\ See Securities Exchange Act Release No. 59955 (May 22, 2009), 74 FR 25586 (May 28, 2009) (Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change; SR-FINRA- 2009-012). --------------------------------------------------------------------------- On January 17, 2012, the Exchange filed a rule change to, among other things, decouple the Program with the FINRA program and to extend the expiration date of the Program to January 17, 2013.\7\ The Program, however, continues to be substantially [[Page 95237]] similar to the provisions of the FINRA program. Subsequently, the Exchange filed rule changes to extend the program until January 17, 2014, January 16, 2015, January 15, 2016, and January 17, 2017, respectively.\8\ The Exchange believes that extending the expiration date of the Program further will allow for further analysis of the Program and a determination of how the Program should be structured in the future. Thus, the Exchange is now currently proposing to extend the duration of the Program for an additional six months until July 18, 2017. --------------------------------------------------------------------------- \7\ See Securities Exchange Act Release No. 66163 (January 17, 2012), 77 FR 3318 (January 23, 2012) (SR-CBOE-2012-007). \8\ See Securities Exchange Act Release Nos. 68539 (December 27, 2012), 78 FR 138 (January 2, 2013) (SR-CBOE-2012-125), 71124 (December 18, 2013), 78 FR 77754 (December 24, 2013) (SR-CBOE-2013- 123), 73837 (December 15, 2014), 79 FR 75850 (December 19, 2014) (SR-CBOE-2014-091), and 76824 (January 5, 2016), 81 FR 1255 (January 11, 2016) (SR-CBOE-2015-118). --------------------------------------------------------------------------- Additionally, the Exchange believes that it is in the public interest to extend the expiration date of the Program because it will continue to allow the Exchange to list Credit Options for trading. As a result, the Exchange will remain competitive with the Over-the-Counter Market with respect to swaps and security-based swaps. In the future, if the Exchange proposes an additional extension of the Credit Option Margin Pilot Program or proposes to make the Program permanent, then the Exchange will submit a filing proposing such amendments to the Program. 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 facilitation 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. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78f(b). \10\ 15 U.S.C. 78f(b)(5). \11\ Id. --------------------------------------------------------------------------- In particular, the Exchange believes that the proposed rule change will further the purposes of the Act because, consistent with the goals of the Commission at the initial adoption of the Program, the margin requirements set forth by the proposed rule change will help to stabilize the financial markets. In addition, the proposed rule change is substantially similar to existing FINRA Rule 4240. 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. Specifically, the Exchange believes that, by extending the expiration of the Program, the proposed rule change will allow for further analysis of the Program and a determination of how the Program shall be structured in the future. In doing so, the proposed rule change will also serve to promote regulatory clarity and consistency, thereby reducing burdens on the marketplace and facilitating investor protection. 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 Because the foregoing proposed rule change does not: A. Significantly affect the protection of investors or the public interest; B. impose any significant burden on competition; and C. become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act \12\ and Rule 19b-4(f)(6) \13\ thereunder. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78s(b)(3)(A). \13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file the proposed rule change, along with a brief description and the text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. --------------------------------------------------------------------------- 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. 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-2016-089 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-2016-089. 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 [[Page 95238]] available publicly. All submissions should refer to File Number SR- CBOE-2016-089 and should be submitted on or before January 17, 2017. --------------------------------------------------------------------------- \14\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\14\ Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2016-31113 Filed 12-23-16; 8:45 am] BILLING CODE 8011-01-P
![95236 Federal Register / Vol. 81, No. 248 / Tuesday, December 27, 2016 / Notices
Commission hereby waives the 30-day Reference Room, 100 F Street NE., I. Self-Regulatory Organization’s
operative delay and designates the Washington, DC 20549, on official Statement of the Terms of Substance of
proposed rule change to be operative on business days between the hours of the Proposed Rule Change
December 14, 2016.27 10:00 a.m. and 3:00 p.m. Copies of the CBOE proposes to amend Rule 12.3 by
At any time within 60 days of the filing also will be available for extending the Credit Option Margin
filing of the proposed rule change, the inspection and copying at the principal Pilot Program through July 18, 2017.
Commission summarily may office of the Exchange. All comments The text of the proposed rule change
temporarily suspend such rule change if received will be posted without change; is available on the Exchange’s Web site
it appears to the Commission that such
the Commission does not edit personal (http://www.cboe.com/AboutCBOE/
action is: (i) Necessary or appropriate in
identifying information from CBOELegalRegulatoryHome.aspx), at
the public interest; (ii) for the protection
submissions. You should submit only the Exchange’s Office of the Secretary,
of investors; or (iii) otherwise in
information that you wish to make and at the Commission’s Public
furtherance of the purposes of the Act.
available publicly. All submissions Reference Room.
If the Commission takes such action, the
Commission shall institute proceedings should refer to File Number SR–BX– II. Self-Regulatory Organization’s
to determine whether the proposed rule 2016–069 and should be submitted on Statement of the Purpose of, and
should be approved or disapproved. or before January 17, 2017. Statutory Basis for, the Proposed Rule
IV. Solicitation of Comments For the Commission, by the Division of Change
Trading and Markets, pursuant to delegated In its filing with the Commission, the
Interested persons are invited to authority.28
submit written data, views, and Exchange included statements
arguments concerning the foregoing, Eduardo A. Aleman, concerning the purpose of and basis for
including whether the proposed rule Assistant Secretary. the proposed rule change and discussed
change is consistent with the Act. [FR Doc. 2016–31107 Filed 12–23–16; 8:45 am] any comments it received on the
Comments may be submitted by any of BILLING CODE 8011–01–P
proposed rule change. The text of these
the following methods: statements may be examined at the
places specified in Item IV below. The
Electronic Comments Exchange has prepared summaries, set
SECURITIES AND EXCHANGE
• Use the Commission’s Internet COMMISSION forth in sections A, B, and C below, of
comment form (http://www.sec.gov/ the most significant aspects of such
rules/sro.shtml); or statements.
[Release No. 34–79621; File No. SR–CBOE–
• Send an email to rule- A. Self-Regulatory Organization’s
2016–089]
comments@sec.gov. Please include File Statement of the Purpose of, and
Number SR–BX–2016–069 on the Self-Regulatory Organizations; Statutory Basis for, the Proposed Rule
subject line. Change
Chicago Board Options Exchange,
Paper Comments Incorporated; Notice of Filing and 1. Purpose
• Send paper comments in triplicate Immediate Effectiveness of a Proposed
Rule Change To Extend the Credit On February 2, 2011, the Commission
to Brent J. Fields, Secretary, Securities
Option Margin Pilot Program Through approved the Exchange’s proposal to
and Exchange Commission, 100 F Street
July 18, 2017 establish a Credit Option Margin Pilot
NE., Washington, DC 20549–1090.
Program (‘‘Program’’).5 The proposal
All submissions should refer to File December 20, 2016. became effective on a pilot basis to run
Number SR–BX–2016–069. This file on a parallel track with Financial
number should be included on the Pursuant to Section 19(b)(1) of the
Industry Regulatory Authority
subject line if email is used. To help the Securities Exchange Act of 1934 (the
(‘‘FINRA’’) Rule 4240 that similarly
Commission process and review your ‘‘Act’’),1 and Rule 19b–4 thereunder,2 operates on an interim pilot basis.6
comments more efficiently, please use notice is hereby given that on December On January 17, 2012, the Exchange
only one method. The Commission will 14, 2016, Chicago Board Options filed a rule change to, among other
post all comments on the Commission’s Exchange, Incorporated (the ‘‘Exchange’’ things, decouple the Program with the
Internet Web site (http://www.sec.gov/ or ‘‘CBOE’’) filed with the Securities FINRA program and to extend the
rules/sro.shtml). and Exchange Commission (the expiration date of the Program to
Copies of the submission, all ‘‘Commission’’) the proposed rule January 17, 2013.7 The Program,
subsequent amendments, all written change as described in Items I and II however, continues to be substantially
statements with respect to the proposed below, which Items have been prepared
rule change that are filed with the by the Exchange. The Exchange filed the 5 See Securities Exchange Act Release No. 63819
Commission, and all written proposal as a ‘‘non-controversial’’ (February 2, 2011), 76 FR 6838 (February 8, 2011)
communications relating to the proposed rule change pursuant to
order approving (SR–CBOE–2010–106). To
proposed rule change between the implement the Program, the Exchange amended
Section 19(b)(3)(A)(iii) of the Act 3 and Rule 12.3(l), Margin Requirements, to make CBOE’s
Commission and any person, other than margin requirements for Credit Options consistent
Rule 19b–4(f)(6) thereunder.4 The
those that may be withheld from the with Financial Industry Regulatory Authority
public in accordance with the Commission is publishing this notice to (‘‘FINRA’’) Rule 4240, Margin Requirements for
asabaliauskas on DSK3SPTVN1PROD with NOTICES
provisions of 5 U.S.C. 552, will be solicit comments on the proposed rule Credit Default Swaps. CBOE’s Credit Options (i.e.,
available for Web site viewing and change from interested persons. Credit Default Options and Credit Default Basket
Options) are analogous to credit default swaps.
printing in the Commission’s Public 6 See Securities Exchange Act Release No. 59955
28 17 CFR 200.30–3(a)(12). (May 22, 2009), 74 FR 25586 (May 28, 2009) (Notice
27 For purposes only of waiving the operative 1 15 of Filing and Order Granting Accelerated Approval
U.S.C. 78s(b)(1).
delay for this proposal, the Commission has of Proposed Rule Change; SR–FINRA–2009–012).
2 17 CFR 240.19b–4.
considered the proposed rule’s impact on 7 See Securities Exchange Act Release No. 66163
3 15 U.S.C. 78s(b)(3)(A)(iii).
efficiency, competition, and capital formation. See (January 17, 2012), 77 FR 3318 (January 23, 2012)
15 U.S.C. 78c(f). 4 17 CFR 240.19b–4(f)(6). (SR–CBOE–2012–007).
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![95238 Federal Register / Vol. 81, No. 248 / Tuesday, December 27, 2016 / Notices
available publicly. All submissions order institutes proceedings under Matching System.11 All other messages,
should refer to File Number SR–CBOE– Section 19(b)(2)(B) of the Exchange Act 7 including liquidity providing orders
2016–089 and should be submitted on to determine whether to approve or (i.e., orders that would not immediately
or before January 17,2017. disapprove the proposed rule change. execute against resting orders) and
For the Commission, by the Division of cancel messages for resting orders,
II. Summary of the Proposal
Trading and Markets, pursuant to delegated would be immediately processed
authority.14 A. Description without delay.
Eduardo A. Aleman, The LTAD would require all new Each delayable message would be
Assistant Secretary. incoming orders 8 received during the diverted into the LTAD queue and
[FR Doc. 2016–31113 Filed 12–23–16; 8:45 am] Open Trading State 9 that could would remain delayed until it is
immediately execute against one or released for processing. A delayed
BILLING CODE 8011–01–P
more resting orders on the CHX book, as message would become releasable 350
well as certain related cancel messages, microseconds after initial receipt by the
SECURITIES AND EXCHANGE to be intentionally delayed for 350 Exchange (‘‘Fixed LTAD Period’’), and
COMMISSION microseconds before such delayed would be processed only after the
messages would be processed 10 by the Matching System has evaluated and
[Release No. 34–79608; File No. SR–CHX– processed, if applicable, all messages in
2016–16] (‘‘Hudson River Trading Letter’’); (4) Beste Bidd, the security received by the Exchange
Trader, dated October 9, 2016 (‘‘Beste Bidd Letter’’); during the Fixed LTAD Period for the
Self-Regulatory Organizations; (5) Joanna Mallers, Secretary, FIA Principal Traders delayed message.12 A message may be
Chicago Stock Exchange, Inc.; Order Group, dated October 13, 2016 (‘‘FIA PTG Letter’’);
delayed for longer than the Fixed LTAD
Instituting Proceedings To Determine (6) John L. Thornton, Co-Chair, Hal S. Scott,
Director, and R. Glenn Hubbard, Co-Chair, Period depending on the then-current
Whether To Approve or Disapprove a Committee on Capital Markets Regulation, dated messaging volume in the security,
Proposed Rule Change To Adopt the October 13, 2016 (‘‘Committee on Capital Markets according to the Exchange.13
CHX Liquidity Taking Access Delay Letter’’); (7) Adam C. Cooper, Senior Managing
Director and Chief Legal Officer, Citadel Securities, B. Purpose of the LTAD
December 20, 2016. dated October 13, 2016 (‘‘Citadel Letter’’); (8) Tyler
Gellasch, Executive Director, Healthy Markets The Exchange states that it designed
I. Introduction Association, dated October 13, 2016 (‘‘HMA and proposed the LTAD to respond to
Letter’’); (9) Eric Budish, Professor of Economics, declines in CHX volume and size at the
On September 6, 2016, the Chicago University of Chicago Booth School of Business,
Stock Exchange, Inc. (‘‘CHX’’ or dated October 13, 2016 (‘‘Budish Letter’’); (10) national best bid or offer (‘‘NBBO’’) in
‘‘Exchange’’) filed with the Securities Elizabeth K. King, General Counsel and Corporate the SPDR S&P 500 trust exchange-traded
and Exchange Commission Secretary, New York Stock Exchange, dated October fund (‘‘SPY’’) between January 2016 and
14, 2016 (‘‘NYSE Letter’’); (11) James J. Angel, July 2016, which it attributes to latency
(‘‘Commission’’), pursuant to Section Associate Professor, McDonough School of
19(b)(1) of the Securities Exchange Act Business, Georgetown University, dated October 16, arbitrage activity in SPY.14 CHX defines
of 1934 (‘‘Exchange Act’’) 1 and Rule 2016 (‘‘Angel Letter’’); (12) Eric Swanson, EVP, ‘‘latency arbitrage’’ as the practice of
19b–4 thereunder,2 a proposed rule General Counsel and Secretary, Bats Global exploiting disparities in the price of a
Markets, Inc., dated October 25, 2016 (‘‘Bats security or related securities that are
change to adopt the CHX Liquidity Letter’’); (13) Eric Pritchett, Chief Executive Officer,
Taking Access Delay (‘‘LTAD’’). The Potamus Trading LLC, dated October 26, 2016 being traded in different markets by
proposed rule change was published for (‘‘Potamus Letter’’); (14) James Ongena, Executive taking advantage of the time it takes to
comment in the Federal Register on Vice President and General Counsel, CHX, dated access and respond to market
October 28, 2016 (‘‘CHX Response’’); (15) Steve information.15
September 22, 2016.3 On November 1, Crutchfield, Head of Market Structure, CTC Trading
2016, pursuant to Section 19(b)(2) of the Group, L.L.C., dated November 1, 2016 (‘‘CTC The Exchange asserts that much of the
Exchange Act,4 the Commission Letter’’); (16) Boris Ilyevsky, Brokerage Director, CHX liquidity in SPY and other S&P
designated a longer period within which Interactive Brokers LLC, dated November 7, 2016 500-correlated securities is provided as
(‘‘IB Letter’’); (17) Alex Jacobson, dated November part of an arbitrage strategy between
to approve the proposed rule change, 9, 2016 (‘‘Jacobson Letter’’); (18) Brian Donnelly,
disapprove the proposed rule change, or Founder and Chief Executive Officer, Volant CHX and the futures markets, whereby
institute proceedings to determine Trading, dated November 28, 2016 (‘‘Volant liquidity providers utilize, among other
whether to disapprove the proposed Letter’’); (19) R.T. Leuchtkafer, dated December 14, things, proprietary algorithms to price
2016 (‘‘Leuchtkafer Letter 2’’); and (20) Theodore R. and size resting orders on CHX to track
rule change.5 The Commission received Lazo, Managing Director and Associate General
20 comments on the proposed rule Counsel, Securities Industry and Financial Markets index market data from a derivatives
change, including a response to certain Association, dated December 16, 2016 (‘‘SIFMA market (e.g., E-Mini S&P traded on the
comment letters by the Exchange.6 This Letter’’). All of the comment letters are available at: Chicago Mercantile Exchange’s Globex
https://www.sec.gov/comments/sr-chx-2016-16/ trading platform).16 According to the
chx201616.shtml.
14 17 CFR 200.30–3(a)(12). 7 15 U.S.C. 78s(b)(2)(B). Exchange, prior to the beginning of the
1 15 U.S.C. 78s(b)(1). 8 ‘‘New incoming orders’’ are orders received by SPY latency arbitrage activity, which
2 17 CFR 240.19b–4.
the Matching System for the first time. The LTAD CHX first observed in January of 2016,
3 See Securities Exchange Act Release No. 78860
would not apply to other situations where existing CHX volume and liquidity in SPY
(September 16, 2016), 81 FR 65442 (‘‘Notice’’). orders or portions thereof are treated as incoming
4 15 U.S.C. 78s(b)(2). orders, such as (1) resting orders that are price slid
Matching System pursuant to the terms of the order
5 See Securities Exchange Act Release No. 79216, into a new price point pursuant to the CHX Only
or cancelling an existing order. See Notice, supra
81 FR 78228 (November 7, 2016). The Commission Price Sliding or Limit Up-Limit Down Price Sliding
asabaliauskas on DSK3SPTVN1PROD with NOTICES
note 3, 81 FR at 65443, n.7.
designated December 21, 2016, as the date by which Processes and (2) unexecuted remainders of routed 11 ‘‘Matching System’’ means the automated order
the Commission shall either approve or disapprove, orders released into the Matching System. See
Notice, supra note 3, 81 FR at 65443, n.5. execution system, which is part of CHX’s ‘‘Trading
or institute proceedings to determine whether to
Facilities’’ as defined under CHX Article 1, Rule
disapprove, the proposed rule change. 9 ‘‘Open Trading State’’ means the period of time
1(z). See id. at 65443, n.8.
6 See letters from: (1) Douglas A. Cifu, Chief during the regular trading session when orders are 12 See id. at 65444.
Executive Officer, Virtu Financial, dated September eligible for automatic execution. See CHX Article 1,
13 See id. at 65444, text accompanying n.35.
21, 2016 (‘‘Virtu Letter’’); (2) R.T. Leuchtkafer, Rule 1(qq).
14 See id. at 65443.
dated September 29, 2016 (‘‘Leuchtkafer Letter 1’’); 10 ‘‘Processed’’ means executing instructions
15 See id. at 65443, n.3.
(3) Adam Nunes, Head of Business Development, contained in a message, including, but not limited
Hudson River Trading LLC, dated October 6, 2016 to, permitting an order to execute within the 16 See id. at 65443, n.10.
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Document Created: 2018-02-14 09:14:05
Document Modified: 2018-02-14 09:14:05
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 81 FR 95236 |
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