82 FR 13155 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to the Automated Improvement Mechanism

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 45 (March 9, 2017)

Page Range		13155-13157
FR Document		2017-04604
Federal Register, Volume 82 Issue 45 (Thursday, March 9, 2017)
[Federal Register Volume 82, Number 45 (Thursday, March 9, 2017)]
[Notices]
[Pages 13155-13157]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-04604]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80152; File No. SR-CBOE-2017-018)]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change Related to the Automated Improvement Mechanism

March 3, 2017.
    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 February 23, 2017, 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 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.
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    \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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange seeks to amend Rule 6.74A. The text of the proposed 
rule change is provided below. (additions are italicized; deletions are 
[bracketed])
* * * * *

Chicago Board Options Exchange, Incorporated Rules

* * * * *

Rule 6.74A. Automated Improvement Mechanism (``AIM'')

    Notwithstanding the provisions of Rule 6.74, a Trading Permit 
Holder that represents agency orders may electronically execute an 
order it represents as agent (``Agency Order'') against principal 
interest or against a solicited order provided it submits the Agency 
Order for electronic execution into the AIM auction (``Auction'') 
pursuant to this Rule.
    (a) No change.
    (b) Auction Process. Only one Auction may be ongoing at any given 
time in a series and Auctions in the same series may not queue or 
overlap in any manner. The Auction may not be cancelled and shall 
proceed as follows:
    (1) Auction Period and Request for Responses (RFRs).
    (A) To initiate the Auction, the Initiating Trading Permit Holder 
must mark the Agency Order for Auction processing, and specify (i) a 
single price at which it seeks to cross the Agency Order (with 
principal interest or a solicited order) (a ``single-price 
submission''), including whether the Initiating Trading Permit Holder 
elects to have last priority in allocation, [or] (ii) that it is 
willing to automatically

[[Page 13156]]

match (``auto-match'') as principal the price and size of all Auction 
responses up to an optional designated limit price in which case the 
Agency Order will be stopped at the NBBO (if 50 standard option 
contracts or 500 mini-option contracts or greater) or one cent/one 
minimum increment better than the NBBO (if less than 50 standard option 
contracts or 500 mini-option contracts), or (iii) the initial price at 
which it seeks to cross the Agency Order (with principal interest or a 
solicited order) and that it is willing to auto-match. Once the 
Initiating Trading Permit Holder has submitted an Agency Order for 
processing pursuant to this subparagraph, such submission may not be 
modified or cancelled.
    (B)-(I) No change.
    (2)-(3) No change.
* * * * *
    The text of the proposed rule change is also 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 seeks to amend Rule 6.74A in order to allow a Trading 
Permit Holder (``TPH'') to input an initial price when selecting the 
auto-match feature in the Automated Improvement Mechanism (``AIM'').
    In order to initiate an AIM auction a TPH must specify: (i) A 
single price at which it seeks to cross the Agency Order (with 
principal interest or a solicited order) (a ``single-price 
submission''), including whether the Initiating Trading Permit Holder 
elects to have last priority in allocation, (ii) that it is willing to 
automatically match (``auto-match'') as principal the price and size of 
all Auction responses up to an optional designated limit price in which 
case the Agency Order will be stopped at the NBBO (if 50 standard 
option contracts or 500 mini-option contracts or greater) or one cent/
one minimum increment better than the NBBO (if less than 50 standard 
option contracts or 500 mini-option contracts). When a TPH specifies 
the auto-match feature the TPH does not identify the initial stop 
price. Instead, the Agency Order is automatically stopped at the NBBO 
(if 50 standard option contracts or 500 mini-option contracts or 
greater) or one cent/one minimum increment better than the NBBO (if 
less than 50 standard option contracts or 500 mini-option contracts). 
In order to allow TPHs to offer greater price improvement to Agency 
Orders the Exchange is seeking to amend Rule 6.74A in order to allow 
TPHs to specify the initial auction price when the TPH specifies the 
auto-match feature.
    Currently, if a TPH selects the auto-match feature and there are no 
auction responses, the Agency Order will execute at either the NBBO (if 
50 standard option contracts or 500 mini-option contracts or greater) 
or one cent/one minimum increment better than the NBBO (if less than 50 
standard option contracts or 500 mini-option contracts). In order to 
allow price-improvement beyond the NBBO or beyond one cent/one minimum 
increment better than the NBBO when there are no auction responses, the 
Exchange is amending Rule 6.74A to allow a TPH to input an initial 
auction price when using the auto-match feature. For example, consider 
a TPH using the auto-match feature when the NBBO is 1.00-1.20 and the 
Agency Order is to buy for 50 contracts or less. Currently, the Agency 
Order is automatically stopped at 1.19. If there are no auction 
responses the Agency Order will be executed at 1.19. This proposed 
amendment will allow TPHs to specify the auto-match feature and specify 
the initial auction price. Thus, in the above example, a TPH could 
specify the initial auction price as 1.18 instead of 1.19, guaranteeing 
price improvement beyond the NBBO improved by one minimum increment. If 
any auction responses are received they would be processed in the same 
manner as the current auto-match feature (i.e., Rule 
6.74A(b)(1)(A)(ii)). Additionally, the Exchange notes that as provided 
in Rule 6.74A(a) the Agency Order and contra order will be cancelled if 
the initial auction price does not meet the conditions described in 
paragraph (a) of Rule 6.74A.
    The Exchange will announce the availability of the new feature via 
Regulatory Circular at least 7 business days prior to the 
implementation date. The implementation date will be within 120 days of 
the operative date of this filing.
2. Statutory Basis
    The The [sic] 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.\5\ 
Specifically, the Exchange believes the proposed rule change is 
consistent with the Section 6(b)(5) \6\ requirements that the rules of 
an exchange be designed to prevent fraudulent and manipulative acts and 
practices, to promote just and equitable principles of trade, to foster 
cooperation and coordination with persons engaged in regulating, 
clearing, settling, processing information with respect to, and 
facilitating transactions in securities, to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, and, in general, to protect investors and the public interest. 
Additionally, the Exchange believes the proposed rule change is 
consistent with the Section 6(b)(5) \7\ requirement that the rules of 
an exchange not be designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
    \7\ Id.
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    In particular, the proposed amendment will give TPHs initiating AIM 
auctions the ability, when utilizing the auto-match feature, to 
guarantee price improvement beyond the NBBO (if 50 standard option 
contracts or 500 mini-option contracts or greater) or beyond one cent/
one minimum increment better than the NBBO (if less than 50 standard 
option contracts or 500 mini-option contracts), which generally 
protects investors and the public interest by giving Agency Orders the 
possibility of receiving better execution prices. The Exchange also 
notes that the proposed functionality is not unique as Nasdaq PHLX LLC 
(``PHLX'') and Nasdaq BX, Inc. (``BX'') currently offer such 
functionality.\8\
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    \8\ See PHLX Rule 1080(n)(ii)(A)(1) and BX Rules at Chapter VI, 
Section 9(ii)(A)(1).
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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 the

[[Page 13157]]

proposed amendment simply gives TPHs initiating AIM auctions the 
ability, when utilizing the auto-match feature, to guarantee price 
improvement beyond the NBBO (if 50 standard option contracts or 500 
mini-option contracts or greater) or beyond one cent/one minimum 
increment better than the NBBO (if less than 50 standard option 
contracts or 500 mini-option contracts, which generally protects 
investors and the public interest by giving Agency Orders the 
possibility of receiving better execution prices.

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 \9\ and 
Rule 19b-4(f)(6) \10\ thereunder. At any time within 60 days of the 
filing of the proposed rule change, the Commission summarily may 
temporarily suspend such rule change if it appears to the Commission 
that such action is necessary or appropriate in the public interest, 
for the protection of investors, or otherwise in furtherance of the 
purposes of the Act. If the Commission takes such action, the 
Commission will institute proceedings to determine whether the proposed 
rule change should be approved or disapproved.
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6).
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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-CBOE-2017-018 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-2017-018. 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-CBOE-2017-018, and should be 
submitted on or before March 30, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-04604 Filed 3-8-17; 8:45 am]
BILLING CODE 8011-01-P
Federal Register / Vol. 82, No. 45 / Thursday, March 9, 2017 / Notices 13155

appropriateness for the Regulated transaction fees described above and ‘‘Act’’),1 and Rule 19b–4 thereunder,2
Entities of participating in new and fees or other compensation described in notice is hereby given that, on February
existing Co-Investment Transactions. condition 2(c)(iii)(C) and (b) in the case 23, 2017, Chicago Board Options
10. Each Regulated Entity will of the Regulated Entity Advisers and the Exchange, Incorporated (the ‘‘Exchange’’
maintain the records required by section Affiliated Advisers, investment advisory or ‘‘CBOE’’) filed with the Securities
57(f)(3) as if each of the Regulated fees paid in accordance with the and Exchange Commission (the
Entities were a BDC and each of the Regulated Entities’ and Affiliated ‘‘Commission’’) the proposed rule
investments permitted under these Funds’ governing agreements) as a result change as described in Items I, II, and
conditions were approved by the of or in connection with a Co- III below, which Items have been
Required Majority under section 57(f). Investment Transaction. prepared by the Exchange. The
11. No Independent Director of a 14. If the Regulated Entity Advisers, Exchange filed the proposal as a ‘‘non-
Regulated Entity will also be a director, the Principals, any person controlling, controversial’’ proposed rule change
general partner, managing member or controlled by, or under common control pursuant to Section 19(b)(3)(A)(iii) of
principal, or otherwise an ‘‘affiliated with the Regulated Entity Advisers or the Act 3 and Rule 19b–4(f)(6)
person’’ (as defined in the Act) of, any the Principals, and the Affiliated Funds thereunder.4 The Commission is
of the Affiliated Funds. (collectively, the ‘‘Holders’’) own in the publishing this notice to solicit
12. The expenses, if any, associated aggregate more than 25% of the comments on the proposed rule change
with acquiring, holding or disposing of outstanding voting securities of a from interested persons.
any securities acquired in a Co- Regulated Entity (‘‘Shares’’), then the
Investment Transaction (including, I. Self-Regulatory Organization’s
Holders will vote such Shares as
without limitation, the expenses of the Statement of the Terms of Substance of
directed by an independent third party
distribution of any such securities the Proposed Rule Change
when voting on (1) the election of
registered for sale under the 1933 Act) directors; (2) the removal of one or more The Exchange seeks to amend Rule
shall, to the extent not payable by the directors; or (3) any other matter under 6.74A. The text of the proposed rule
Regulated Entity Advisers or the change is provided below. (additions are
either the Act or applicable State law
Affiliated Investment Advisers under italicized; deletions are [bracketed])
affecting the Board’s composition, size
their respective investment advisory
or manner of election. * * * * *
agreements with the Regulated Entities
15. The Regulated Entity Advisers and
and the Participating Funds, be shared Chicago Board Options Exchange,
the Affiliated Investment Advisers will
by the applicable Regulated Entities and Incorporated Rules
maintain written policies and
the Participating Funds in proportion to
procedures reasonably designed to * * * * *
the relative amounts of their securities
ensure compliance with the foregoing Rule 6.74A. Automated Improvement
held or being acquired or disposed of,
as the case may be. conditions. These policies and Mechanism (‘‘AIM’’)
13. Any transaction fee (including procedures will require, among other
things, that each Regulated Entity Notwithstanding the provisions of
break-up or commitment fees but Rule 6.74, a Trading Permit Holder that
excluding brokers’ fees contemplated by Adviser will be notified of all Potential
Co-Investment Transactions that fall represents agency orders may
section 57(k)(2) or 17(e)(2), as electronically execute an order it
applicable) received in connection with within the then-current Objectives and
Strategies of any Regulated Entity it represents as agent (‘‘Agency Order’’)
a Co-Investment Transaction will be
advises and will be given sufficient against principal interest or against a
distributed to the applicable Regulated
information to make its independent solicited order provided it submits the
Entities and the Participating Funds on
determination and recommendations Agency Order for electronic execution
a pro rata basis based on the amounts
under conditions 1, 2(a), 7 and 8. into the AIM auction (‘‘Auction’’)
each invested or committed, as the case
pursuant to this Rule.
may be, in such Co-Investment For the Commission, by the Division of (a) No change.
Transaction. If any transaction fee is to Investment Management, under delegated
(b) Auction Process. Only one
be held by a Regulated Entity Adviser or authority.
Auction may be ongoing at any given
an Affiliated Investment Adviser Eduardo A. Aleman,
time in a series and Auctions in the
pending consummation of the Assistant Secretary. same series may not queue or overlap in
transaction, the fee will be deposited [FR Doc. 2017–04591 Filed 3–8–17; 8:45 am] any manner. The Auction may not be
into an account maintained by the BILLING CODE 8011–01–P cancelled and shall proceed as follows:
Regulated Entity Adviser or such other (1) Auction Period and Request for
adviser, as the case may be, at a bank Responses (RFRs).
or banks having the qualifications SECURITIES AND EXCHANGE (A) To initiate the Auction, the
prescribed in Section 26(a)(1), and the COMMISSION Initiating Trading Permit Holder must
account will earn a competitive rate of mark the Agency Order for Auction
interest that will also be divided pro [Release No. 34–80152; File No. SR–CBOE– processing, and specify (i) a single price
rata among each applicable Regulated 2017–018)] at which it seeks to cross the Agency
Entity and each Participating Fund Order (with principal interest or a
based on the amount each invests in Self-Regulatory Organizations; solicited order) (a ‘‘single-price
such Co-Investment Transaction. None
asabaliauskas on DSK3SPTVN1PROD with NOTICES

Chicago Board Options Exchange, submission’’), including whether the
of the Affiliated Funds, Regulated Entity Incorporated; Notice of Filing and Initiating Trading Permit Holder elects
Advisers, Affiliated Investment Immediate Effectiveness of a Proposed to have last priority in allocation, [or]
Advisers, or any affiliated person of any Rule Change Related to the Automated (ii) that it is willing to automatically
of the Regulated Entities will receive Improvement Mechanism
additional compensation or 1 15 U.S.C. 78s(b)(1).
remuneration of any kind (other than (a) March 3, 2017. 2 17 CFR 240.19b–4.
in the case of the Regulated Entities and Pursuant to Section 19(b)(1) of the 3 15 U.S.C. 78s(b)(3)(A)(iii).

the Participating Funds, the pro rata Securities Exchange Act of 1934 (the 4 17 CFR 240.19b–4(f)(6).

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13156 Federal Register / Vol. 82, No. 45 / Thursday, March 9, 2017 / Notices

match (‘‘auto-match’’) as principal the and size of all Auction responses up to Regulatory Circular at least 7 business
price and size of all Auction responses an optional designated limit price in days prior to the implementation date.
up to an optional designated limit price which case the Agency Order will be The implementation date will be within
in which case the Agency Order will be stopped at the NBBO (if 50 standard 120 days of the operative date of this
stopped at the NBBO (if 50 standard option contracts or 500 mini-option filing.
option contracts or 500 mini-option contracts or greater) or one cent/one
minimum increment better than the 2. Statutory Basis
contracts or greater) or one cent/one
minimum increment better than the NBBO (if less than 50 standard option The The [sic] Exchange believes the
NBBO (if less than 50 standard option contracts or 500 mini-option contracts). proposed rule change is consistent with
contracts or 500 mini-option contracts), When a TPH specifies the auto-match the Securities Exchange Act of 1934 (the
or (iii) the initial price at which it seeks feature the TPH does not identify the ‘‘Act’’) and the rules and regulations
to cross the Agency Order (with initial stop price. Instead, the Agency thereunder applicable to the Exchange
principal interest or a solicited order) Order is automatically stopped at the and, in particular, the requirements of
and that it is willing to auto-match. NBBO (if 50 standard option contracts Section 6(b) of the Act.5 Specifically,
Once the Initiating Trading Permit or 500 mini-option contracts or greater) the Exchange believes the proposed rule
Holder has submitted an Agency Order or one cent/one minimum increment change is consistent with the Section
for processing pursuant to this better than the NBBO (if less than 50 6(b)(5) 6 requirements that the rules of
subparagraph, such submission may not standard option contracts or 500 mini- an exchange be designed to prevent
be modified or cancelled. option contracts). In order to allow fraudulent and manipulative acts and
(B)–(I) No change. TPHs to offer greater price improvement practices, to promote just and equitable
(2)–(3) No change. to Agency Orders the Exchange is principles of trade, to foster cooperation
* * * * * seeking to amend Rule 6.74A in order to and coordination with persons engaged
The text of the proposed rule change allow TPHs to specify the initial auction in regulating, clearing, settling,
is also available on the Exchange’s Web price when the TPH specifies the auto- processing information with respect to,
site (http://www.cboe.com/AboutCBOE/ match feature. and facilitating transactions in
CBOELegalRegulatoryHome.aspx), at Currently, if a TPH selects the auto- securities, to remove impediments to
the Exchange’s Office of the Secretary, match feature and there are no auction and perfect the mechanism of a free and
and at the Commission’s Public responses, the Agency Order will open market and a national market
Reference Room. execute at either the NBBO (if 50 system, and, in general, to protect
standard option contracts or 500 mini- investors and the public interest.
II. Self-Regulatory Organization’s option contracts or greater) or one cent/ Additionally, the Exchange believes the
Statement of the Purpose of, and one minimum increment better than the proposed rule change is consistent with
Statutory Basis for, the Proposed Rule NBBO (if less than 50 standard option the Section 6(b)(5) 7 requirement that
Change contracts or 500 mini-option contracts). the rules of an exchange not be designed
In its filing with the Commission, the In order to allow price-improvement to permit unfair discrimination between
Exchange included statements beyond the NBBO or beyond one cent/ customers, issuers, brokers, or dealers.
concerning the purpose of and basis for one minimum increment better than the In particular, the proposed
the proposed rule change and discussed NBBO when there are no auction amendment will give TPHs initiating
any comments it received on the responses, the Exchange is amending AIM auctions the ability, when utilizing
proposed rule change. The text of these Rule 6.74A to allow a TPH to input an the auto-match feature, to guarantee
statements may be examined at the initial auction price when using the price improvement beyond the NBBO (if
places specified in Item IV below. The auto-match feature. For example, 50 standard option contracts or 500
Exchange has prepared summaries, set consider a TPH using the auto-match mini-option contracts or greater) or
forth in sections A, B, and C below, of feature when the NBBO is 1.00–1.20 and beyond one cent/one minimum
the most significant aspects of such the Agency Order is to buy for 50 increment better than the NBBO (if less
statements. contracts or less. Currently, the Agency than 50 standard option contracts or 500
Order is automatically stopped at 1.19. mini-option contracts), which generally
A. Self-Regulatory Organization’s If there are no auction responses the protects investors and the public
Statement of the Purpose of, and Agency Order will be executed at 1.19.
interest by giving Agency Orders the
Statutory Basis for, the Proposed Rule This proposed amendment will allow
possibility of receiving better execution
Change TPHs to specify the auto-match feature
prices. The Exchange also notes that the
and specify the initial auction price.
1. Purpose proposed functionality is not unique as
Thus, in the above example, a TPH
The Exchange seeks to amend Rule Nasdaq PHLX LLC (‘‘PHLX’’) and
could specify the initial auction price as
6.74A in order to allow a Trading Permit Nasdaq BX, Inc. (‘‘BX’’) currently offer
1.18 instead of 1.19, guaranteeing price
Holder (‘‘TPH’’) to input an initial price such functionality.8
improvement beyond the NBBO
when selecting the auto-match feature improved by one minimum increment. B. Self-Regulatory Organization’s
in the Automated Improvement If any auction responses are received Statement on Burden on Competition
Mechanism (‘‘AIM’’). they would be processed in the same
In order to initiate an AIM auction a CBOE does not believe that the
manner as the current auto-match
TPH must specify: (i) A single price at proposed rule change will impose any
asabaliauskas on DSK3SPTVN1PROD with NOTICES

feature (i.e., Rule 6.74A(b)(1)(A)(ii)).
which it seeks to cross the Agency burden on competition that is not
Additionally, the Exchange notes that as
Order (with principal interest or a necessary or appropriate in furtherance
provided in Rule 6.74A(a) the Agency
solicited order) (a ‘‘single-price of the purposes of the Act because the
Order and contra order will be cancelled
submission’’), including whether the if the initial auction price does not meet 5 15 U.S.C. 78f(b).
Initiating Trading Permit Holder elects the conditions described in paragraph 6 15 U.S.C. 78f(b)(5).
to have last priority in allocation, (ii) (a) of Rule 6.74A. 7 Id.
that it is willing to automatically match The Exchange will announce the 8 See PHLX Rule 1080(n)(ii)(A)(1) and BX Rules

(‘‘auto-match’’) as principal the price availability of the new feature via at Chapter VI, Section 9(ii)(A)(1).

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Federal Register / Vol. 82, No. 45 / Thursday, March 9, 2017 / Notices 13157

proposed amendment simply gives • Send an email to rule-comments@ SECURITIES AND EXCHANGE
TPHs initiating AIM auctions the sec.gov. Please include File Number SR– COMMISSION
ability, when utilizing the auto-match CBOE–2017–018 on the subject line.
[Release No. 34–80148; File No. SR–MIAX–
feature, to guarantee price improvement 2017–10]
beyond the NBBO (if 50 standard option Paper Comments
contracts or 500 mini-option contracts • Send paper comments in triplicate Self-Regulatory Organizations; Miami
or greater) or beyond one cent/one to Secretary, Securities and Exchange International Securities Exchange LLC;
minimum increment better than the Notice of Filing and Immediate
Commission, 100 F Street NE.,
NBBO (if less than 50 standard option Effectiveness of a Proposed Rule
Washington, DC 20549–1090.
contracts or 500 mini-option contracts, Change To Amend Its Fee Schedule
which generally protects investors and All submissions should refer to File
the public interest by giving Agency Number SR–CBOE–2017–018. This file March 3, 2017.
Orders the possibility of receiving better number should be included on the Pursuant to the provisions of Section
execution prices. subject line if email is used. To help the 19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’),1 and Rule 19b–4
C. Self-Regulatory Organization’s Commission process and review your
thereunder,2 notice is hereby given that
Statement on Comments on the comments more efficiently, please use
on February 24, 2017, Miami
Proposed Rule Change Received From only one method. The Commission will International Securities Exchange LLC
Members, Participants, or Others post all comments on the Commission’s (‘‘MIAX Options’’ or ‘‘Exchange’’) filed
Internet Web site (http://www.sec.gov/ with the Securities and Exchange
The Exchange neither solicited nor
rules/sro.shtml). Copies of the Commission (‘‘Commission’’) a
received comments on the proposed
rule change. submission, all subsequent proposed rule change as described in
amendments, all written statements Items I, II, and III below, which Items
III. Date of Effectiveness of the with respect to the proposed rule have been prepared by the Exchange.
Proposed Rule Change and Timing for change that are filed with the The Commission is publishing this
Commission Action Commission, and all written notice to solicit comments on the
Because the foregoing proposed rule communications relating to the proposed rule change from interested
change does not: proposed rule change between the persons.
A. Significantly affect the protection Commission and any person, other than I. Self-Regulatory Organization’s
of investors or the public interest; those that may be withheld from the Statement of the Terms of Substance of
B. impose any significant burden on public in accordance with the the Proposed Rule Change
competition; and provisions of 5 U.S.C. 552, will be
C. become operative for 30 days from The Exchange is filing a proposal to
available for Web site viewing and
the date on which it was filed, or such amend the MIAX Options Fee Schedule
printing in the Commission’s Public
shorter time as the Commission may (the ‘‘Fee Schedule’’).
Reference Room, 100 F Street NE., The text of the proposed rule change
designate, it has become effective Washington, DC 20549 on official
pursuant to Section 19(b)(3)(A) of the is available on the Exchange’s Web site
business days between the hours of at http://www.miaxoptions.com/rule-
Act 9 and Rule 19b–4(f)(6) 10 thereunder.
10:00 a.m. and 3:00 p.m. Copies of such filings, at MIAX’s principal office, and
At any time within 60 days of the filing
filing also will be available for at the Commission’s Public Reference
of the proposed rule change, the
inspection and copying at the principal Room.
Commission summarily may
temporarily suspend such rule change if office of the Exchange. All comments
II. Self-Regulatory Organization’s
it appears to the Commission that such received will be posted without change;
Statement of the Purpose of, and
action is necessary or appropriate in the the Commission does not edit personal
Statutory Basis for, the Proposed Rule
public interest, for the protection of identifying information from Change
investors, or otherwise in furtherance of submissions. You should submit only
information that you wish to make In its filing with the Commission, the
the purposes of the Act. If the
available publicly. All submissions Exchange included statements
Commission takes such action, the
should refer to File Number SR–CBOE– concerning the purpose of and basis for
Commission will institute proceedings
2017–018, and should be submitted on the proposed rule change and discussed
to determine whether the proposed rule
any comments it received on the
change should be approved or or before March 30, 2017.
proposed rule change. The text of these
disapproved. For the Commission, by the Division of statements may be examined at the
IV. Solicitation of Comments Trading and Markets, pursuant to delegated places specified in Item IV below. The
authority.11 Exchange has prepared summaries, set
Interested persons are invited to
submit written data, views, and Eduardo A. Aleman, forth in sections A, B, and C below, of
arguments concerning the foregoing, Assistant Secretary. the most significant aspects of such
including whether the proposed rule [FR Doc. 2017–04604 Filed 3–8–17; 8:45 am] statements.
change is consistent with the Act. BILLING CODE 8011–01–P A. Self-Regulatory Organization’s
Comments may be submitted by any of Statement of the Purpose of, and
asabaliauskas on DSK3SPTVN1PROD with NOTICES

the following methods: Statutory Basis for, the Proposed Rule
Electronic Comments Change

• Use the Commission’s Internet 1. Purpose
comment form (http://www.sec.gov/ The Exchange proposes to amend the
rules/sro.shtml); or Market Maker Sliding Scale (defined
9 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1).
10 17 CFR 240.19b–4(f)(6). 11 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4.

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Document Created: 2017-03-09 04:59:12
Document Modified: 2017-03-09 04:59:12
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		82 FR 13155