82 FR 17704 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the SPXPM Pilot Program

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 69 (April 12, 2017)

Page Range		17704-17706
FR Document		2017-07306
Federal Register, Volume 82 Issue 69 (Wednesday, April 12, 2017)
[Federal Register Volume 82, Number 69 (Wednesday, April 12, 2017)]
[Notices]
[Pages 17704-17706]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-07306]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80386; File No. SR-CBOE-2017-025]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change Relating to the SPXPM Pilot Program

April 6, 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 March 28, 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 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.
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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 proposes to extend the operation of its SPXPM pilot 
program through May 3, 2018. The text of the proposed rule change is 
provided below.

(additions are italicized; deletions are [bracketed])
* * * * *
Chicago Board Options Exchange, Incorporated
Rules
* * * * *
Rule 24.9. Terms of Index Option Contracts
    No change.
    . . . Interpretations and Policies:
    .01-.13 No change.
    .14 The below provisions will remain in effect until a date 
specified by the Exchange in a Regulatory Circular, which date shall be 
no later than July 31, 2017:
    In addition to A.M.-settled Standard & Poor's 500 Stock Index 
options approved for trading on the Exchange pursuant to Rule 24.9, the 
Exchange may also list options on the S&P 500 Index whose exercise 
settlement value is derived from closing prices on the last trading day 
prior to expiration (``SPXPM''). The Exchange may also list options on 
the Mini-SPX Index (``XSP'') whose exercise settlement value is derived 
from closing prices on the last trading day prior to expiration 
(``P.M.-settled''). SPXPM options and P.M.-settled XSP options will be 
listed for trading for a pilot period ending May 3, 201[7]8.
    On the date specified by the Exchange in a Regulatory Circular, 
which date shall be no later than July 31, 2017, the following 
provisions shall be in effect:
    In addition to A.M.-settled Standard & Poor's 500 Stock Index 
options approved for trading on the Exchange pursuant to Rule 24.9, the 
Exchange may also list options on the S&P 500 Index whose exercise 
settlement value is derived from closing prices on the last trading day 
prior to expiration (P.M.-settled third Friday-of-the-month SPX options 
series). The Exchange may also list options on the Mini-SPX Index 
(``XSP'') whose exercise settlement value is derived from closing 
prices on the last trading day prior to expiration (``P.M.-settled''). 
P.M.-settled third Friday-of-the-month SPX options series and P.M.-
settled XSP options will be listed for trading for a pilot period 
ending May 3, 201[7]8.
* * * * *
    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
    On February 8, 2013, the Exchange received approval of a rule 
change that established a Pilot Program that allows the Exchange to 
list options on the S&P 500 Index whose exercise settlement value is 
derived from closing prices on the last trading day prior to expiration 
(``SPXPM'').\5\ On July 31, 2013, the Exchange received approval of a 
rule change that amended the Pilot Program to allow the Exchange to 
list options on the Mini-SPX Index (``XSP'') whose exercise settlement 
value is derived

[[Page 17705]]

from closing prices on the last trading day prior to expiration 
(``P.M.-settled'') \6\ (together, SPXPM and P.M.-settled XSP to be 
referred to herein as the ``Pilot Products'').\7\ In January 2014, the 
Exchange filed a proposed rule change that extended the end date of the 
pilot period from February 8, 2014 to November 3, 2014.\8\ 
Additionally, in October 2014, the Exchange filed a proposed rule 
change that extended the end date of the pilot period from November 3, 
2014 to May 3, 2016.\9\ The Exchange then filed a proposed rule change 
that extended the end date of the pilot period from May 3, 2016 to May 
3, 2017.\10\ The Exchange hereby proposes to further extend the end 
date of the pilot period to May 3, 2018.
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    \5\ See Securities Exchange Act Release No. 68888 (February 8, 
2013), 78 FR 10668 (February 14, 2013) (SR-CBOE-2012-120) (the 
``SPXPM Approval Order''). Pursuant to Securities Exchange Act 
Release No. 80060 (February 17, 2017), 82 FR 11673 (February 24, 
2017) (SR-CBOE-2016-091), the Exchange will move third-Friday P.M.-
settled options into the Hybrid 3.0 S&P 500 Index options class and 
as a result, the trading symbol for P.M.-settled S&P 500 Index 
options that have standard third Friday-of-the-month expirations 
will change from ``SPXPM'' to ``SPXW.'' This change will go into 
effect on a date no later than July 31, 2017 and will be announced 
in a Regulatory Circular by the Exchange.
    \6\ See Securities Exchange Act Release No. 70087 (July 31, 
2013), 78 FR 47809 (August 6, 2013) (SR-CBOE-2013-055) (the ``P.M.-
settled XSP Approval Order'').
    \7\ For more information on the Pilot Products or the Pilot 
Program, see the SPXPM Approval Order and the P.M.-settled XSP 
Approval Order.
    \8\ See Securities Exchange Act Release No. 71424 (January 28, 
2014), 79 FR 6249 (February 3, 2014) (SR-CBOE-2014-004).
    \9\ See Securities Exchange Act Release No. 73338 (October 10, 
2014), 79 FR 62502 (October 17, 2014) (SR-CBOE-2014-076).
    \10\ See Securities Exchange Act Release No. 77573 (April 8, 
2016), 81 FR 22148 (April 14, 2016) (SR-CBOE-2016-036).
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    During the course of the Pilot Program and in support of the 
extensions of the Pilot Program, the Exchange submits to the Securities 
and Exchange Commission (the ``Commission'') reports regarding the 
Pilot Program that detail the Exchange's experience with the Pilot 
Program, pursuant to the SPXPM Approval Order and the P.M.-settled XSP 
Approval Order. To date, the Exchange has submitted three annual Pilot 
Program reports to the Commission, as well as various periodic interim 
reports, as required by the Commission while the Pilot Program is in 
effect. The annual reports contain an analysis of volume, open 
interest, and trading patterns. The analysis examines trading in Pilot 
Products as well as trading in the securities that comprise the 
underlying index. Additionally, for series that exceed certain minimum 
open interest parameters, the annual reports provide analysis of index 
price volatility and share trading activity. The periodic interim 
reports contain some, but not all, of the information contained in the 
annual reports. In providing the annual and periodic interim reports 
(the ``pilot reports'') to the Commission, the Exchange has requested 
confidential treatment of the pilot reports under the Freedom of 
Information Act (``FOIA'').\11\ The confidentiality of the pilot 
reports is subject to the provisions of FOIA.
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    \11\ 5 U.S.C. 552.
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    The pilot reports both contain the following volume and open 
interest data:
    (1) Monthly volume aggregated for all trades;
    (2) monthly volume aggregated by expiration date;
    (3) monthly volume for each individual series;
    (4) month-end open interest aggregated for all series;
    (5) month-end open interest for all series aggregated by expiration 
date; and
    (6) month-end open interest for each individual series.
    The annual reports also contain the information noted in Items (1) 
through (6) above for Expiration Friday, A.M.-settled, S&P 500 index 
options traded on CBOE, as well as the following analysis of trading 
patterns in the Pilot Products options series in the Pilot Program:
    (1) A time series analysis of open interest; and
    (2) an analysis of the distribution of trade sizes.
    Finally, for series that exceed certain minimum parameters, the 
annual reports contain the following analysis related to index price 
changes and underlying share trading volume at the close on Expiration 
Fridays:
    (1) A comparison of index price changes at the close of trading on 
a given Expiration Friday with comparable price changes from a control 
sample. The data includes a calculation of percentage price changes for 
various time intervals and compare that information to the respective 
control sample. Raw percentage price change data as well as percentage 
price change data normalized for prevailing market volatility, as 
measured by the CBOE Volatility Index (VIX), is provided; and
    (2) a calculation of share volume for a sample set of the component 
securities representing an upper limit on share trading that could be 
attributable to expiring in-the-money series. The data includes a 
comparison of the calculated share volume for securities in the sample 
set to the average daily trading volumes of those securities over a 
sample period.
    The minimum open interest parameters, control sample, time 
intervals, method for randomly selecting the component securities, and 
sample periods are determined by the Exchange and the Commission. In 
proposing to extend the Pilot Program, the Exchange will continue to 
abide by the reporting requirements described herein, as well as in the 
SPXPM Approval Order and the P.M.-settled XSP Approval Order.\12\ 
Additionally, all such pilot reports provided by the Exchange will 
continue to include a request for confidential treatment under 
FOIA.\13\
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    \12\ Pursuant to Securities Exchange Act Release No. 75914 
(September 14, 2015), 80 FR 56522 (September 18, 2015) (SR-CBOE-
2015-079), the Exchange added SPXPM and P.M.-settled XSP options to 
the list of products approved for trading during Extended Trading 
Hours (``ETH''). The Exchange will also include the applicable 
information regarding SPXPM and P.M.-settled XSP options that trade 
during ETH in its annual and interim reports.
    \13\ See supra note 6 [sic] and surrounding discussion. If the 
Exchange seeks permanent approval of the pilot program, the Exchange 
recognizes that certain information in the pilot reports may need to 
be made available on a public basis.
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    The Exchange proposes the extension of the Pilot Program in order 
to continue to give the Commission more time to consider the impact of 
the Pilot Program. To this point, CBOE believes that the Pilot Program 
has been well-received by its Trading Permit Holders and the investing 
public, and the Exchange would like to continue to provide investors 
with the ability to trade SPXPM and P.M.-settled XSP options. All terms 
regarding the trading of the Pilot Products shall continue to operate 
as described in the SPXPM Approval Order and the P.M.-settled XSP 
Approval Order. The Exchange merely proposes herein to extend the term 
of the Pilot Program to May 3, 2018.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Securities Exchange Act of 1934 (the ``Act'') [sic] and the rules 
and regulations thereunder applicable to the Exchange and, in 
particular, the requirements of Section 6(b) of the Act.\14\ 
Specifically, the Exchange believes the proposed rule change is 
consistent with the Section 6(b)(5) \15\ 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

[[Page 17706]]

the Section 6(b)(5)\16\ requirement that the rules of an exchange not 
be designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers.
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    \14\ 15 U.S.C. 78f(b).
    \15\ 15 U.S.C. 78f(b)(5).
    \16\ Id.
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    In particular, the Exchange believes that the proposed extension of 
the Pilot Program will continue to provide greater opportunities for 
investors. Further, the Exchange believes that it has not experienced 
any adverse effects or meaningful regulatory concerns from the 
operation of the Pilot Program. As such, the Exchange believes that the 
extension of the Pilot Program does not raise any unique or prohibitive 
regulatory concerns. Also, the Exchange believes that such trading has 
not, and will not, adversely impact fair and orderly markets on 
Expiration Fridays for the underlying stocks comprising the S&P 500 
index. The extension of the Pilot Program will continue to provide 
investors with the opportunity to trade the desirable products of SPXPM 
and P.M.-settled XSP, while also providing the Commission further 
opportunity to observe such trading of the Pilot Products.

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. The Exchange does not believe 
the continuation of the Pilot Program will impose any unnecessary or 
inappropriate burden on intramarket competition because it will 
continue to apply equally to all CBOE market participants, and the 
Pilot Products will be available to all CBOE market participants. The 
Exchange believes there is sufficient investor interest and demand in 
the Pilot Program to warrant its extension. The Exchange believes that, 
for the period that the Pilot Program has been in operation, it has 
provided investors with desirable products with which to trade. 
Furthermore, the Exchange believes that it has not experienced any 
adverse market effects or regulatory concerns with respect to the Pilot 
Program. The Exchange further does not believe that the proposed 
extension of the Pilot Program will impose any burden on intermarket 
competition that is not necessary or appropriate in furtherance of the 
purposes of the Act because it only applies to trading on CBOE. To the 
extent that the continued trading of the Pilot Products may make CBOE a 
more attractive marketplace to market participants at other exchanges, 
such market participants may elect 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
    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
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 \17\ and Rule 19b-
4(f)(6) \18\ thereunder.
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    \17\ 15 U.S.C. 78s(b)(3)(A).
    \18\ 17 CFR 240.19b-4(f)(6)(iii). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with 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.
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    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.
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-2017-025 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-2017-025.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-2017-025 and should be 
submitted on or before May 3, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-07306 Filed 4-11-17; 8:45 am]
 BILLING CODE 8011-01-P
17704 Federal Register / Vol. 82, No. 69 / Wednesday, April 12, 2017 / Notices

approval is currently not available to the by the Exchange. The Exchange filed the settled third Friday-of-the-month SPX
public from FINRA. proposal as a ‘‘non-controversial’’ options series). The Exchange may also
Written comments are invited on: (a) proposed rule change pursuant to list options on the Mini-SPX Index
Whether the proposed collection of Section 19(b)(3)(A)(iii) of the Act 3 and (‘‘XSP’’) whose exercise settlement
information is necessary for the proper Rule 19b–4(f)(6) thereunder.4 The value is derived from closing prices on
performance of the functions of the Commission is publishing this notice to the last trading day prior to expiration
Commission, including whether the solicit comments on the proposed rule (‘‘P.M.-settled’’). P.M.-settled third
information shall have practical utility; change from interested persons. Friday-of-the-month SPX options series
(b) the accuracy of the Commission’s and P.M.-settled XSP options will be
I. Self-Regulatory Organization’s listed for trading for a pilot period
estimates of the burden of the proposed
Statement of the Terms of Substance of ending May 3, 201[7]8.
collection of information; (c) ways to
the Proposed Rule Change
enhance the quality, utility, and clarity * * * * *
of the information collected; and (d) The Exchange proposes to extend the The text of the proposed rule change
ways to minimize the burden of the operation of its SPXPM pilot program is also available on the Exchange’s Web
collection of information on through May 3, 2018. The text of the site (http://www.cboe.com/AboutCBOE/
respondents, including through the use proposed rule change is provided CBOELegalRegulatoryHome.aspx), at
of automated collection techniques or below. the Exchange’s Office of the Secretary,
other forms of information technology. (additions are italicized; deletions are and at the Commission’s Public
Consideration will be given to [bracketed]) Reference Room.
comments and suggestions submitted in * * * * * II. Self-Regulatory Organization’s
writing within 60 days of this
Chicago Board Options Exchange, Statement of the Purpose of, and
publication.
Incorporated Statutory Basis for, the Proposed Rule
An agency may not conduct or
Change
sponsor, and a person is not required to Rules
respond to, a collection of information In its filing with the Commission, the
unless it displays a currently valid OMB * * * * * Exchange included statements
control number. Rule 24.9. Terms of Index Option concerning the purpose of and basis for
Please direct your written comments Contracts the proposed rule change and discussed
to: Pamela Dyson, Director/Chief any comments it received on the
No change. proposed rule change. The text of these
Information Officer, Securities and . . . Interpretations and Policies:
Exchange Commission, c/o Remi Pavlik- statements may be examined at the
.01–.13 No change. places specified in Item IV below. The
Simon, 100 F Street NE., Washington, .14 The below provisions will remain
DC 20549, or send an email to: PRA_ Exchange has prepared summaries, set
in effect until a date specified by the forth in sections A, B, and C below, of
Mailbox@sec.gov. Exchange in a Regulatory Circular, the most significant aspects of such
Dated: April 6, 2017. which date shall be no later than July statements.
Eduardo A. Aleman, 31, 2017:
Assistant Secretary. In addition to A.M.-settled Standard & A. Self-Regulatory Organization’s
[FR Doc. 2017–07297 Filed 4–11–17; 8:45 am] Poor’s 500 Stock Index options Statement of the Purpose of, and
BILLING CODE 8011–01–P
approved for trading on the Exchange Statutory Basis for, the Proposed Rule
pursuant to Rule 24.9, the Exchange Change
may also list options on the S&P 500 1. Purpose
SECURITIES AND EXCHANGE Index whose exercise settlement value
is derived from closing prices on the last On February 8, 2013, the Exchange
COMMISSION
trading day prior to expiration received approval of a rule change that
[Release No. 34–80386; File No. SR–CBOE–
(‘‘SPXPM’’). The Exchange may also list established a Pilot Program that allows
2017–025] the Exchange to list options on the S&P
options on the Mini-SPX Index (‘‘XSP’’)
whose exercise settlement value is 500 Index whose exercise settlement
Self-Regulatory Organizations; value is derived from closing prices on
Chicago Board Options Exchange, derived from closing prices on the last
trading day prior to expiration (‘‘P.M.- the last trading day prior to expiration
Incorporated; Notice of Filing and (‘‘SPXPM’’).5 On July 31, 2013, the
Immediate Effectiveness of a Proposed settled’’). SPXPM options and P.M.-
settled XSP options will be listed for Exchange received approval of a rule
Rule Change Relating to the SPXPM change that amended the Pilot Program
Pilot Program trading for a pilot period ending May 3,
201[7]8. to allow the Exchange to list options on
April 6, 2017. On the date specified by the Exchange the Mini-SPX Index (‘‘XSP’’) whose
Pursuant to Section 19(b)(1) of the in a Regulatory Circular, which date exercise settlement value is derived
Securities Exchange Act of 1934 (the shall be no later than July 31, 2017, the
5 See Securities Exchange Act Release No. 68888
‘‘Act’’),1 and Rule 19b–4 thereunder,2 following provisions shall be in effect: (February 8, 2013), 78 FR 10668 (February 14, 2013)
notice is hereby given that on March 28, In addition to A.M.-settled Standard & (SR–CBOE–2012–120) (the ‘‘SPXPM Approval
2017, Chicago Board Options Exchange, Poor’s 500 Stock Index options Order’’). Pursuant to Securities Exchange Act
Incorporated (the ‘‘Exchange’’ or approved for trading on the Exchange Release No. 80060 (February 17, 2017), 82 FR 11673
(February 24, 2017) (SR–CBOE–2016–091), the
‘‘CBOE’’) filed with the Securities and pursuant to Rule 24.9, the Exchange
mstockstill on DSK30JT082PROD with NOTICES

Exchange will move third-Friday P.M.-settled
Exchange Commission (the may also list options on the S&P 500 options into the Hybrid 3.0 S&P 500 Index options
‘‘Commission’’) the proposed rule Index whose exercise settlement value class and as a result, the trading symbol for P.M.-
change as described in Items I and II is derived from closing prices on the last settled S&P 500 Index options that have standard
third Friday-of-the-month expirations will change
below, which Items have been prepared trading day prior to expiration (P.M.- from ‘‘SPXPM’’ to ‘‘SPXW.’’ This change will go
into effect on a date no later than July 31, 2017 and
1 15 U.S.C. 78s(b)(1). 3 15 U.S.C. 78s(b)(3)(A)(iii). will be announced in a Regulatory Circular by the
2 17 CFR 240.19b–4. 4 17 CFR 240.19b–4(f)(6). Exchange.

VerDate Sep<11>2014 18:45 Apr 11, 2017 Jkt 241001 PO 00000 Frm 00080 Fmt 4703 Sfmt 4703 E:\FR\FM\12APN1.SGM 12APN1
17706 Federal Register / Vol. 82, No. 69 / Wednesday, April 12, 2017 / Notices

the Section 6(b)(5)16 requirement that market participants may elect to become Commission process and review your
the rules of an exchange not be designed CBOE market participants. comments more efficiently, please use
to permit unfair discrimination between only one method. The Commission will
C. Self-Regulatory Organization’s
customers, issuers, brokers, or dealers. post all comments on the Commission’s
In particular, the Exchange believes Statement on Comments on the
Internet Web site (http://www.sec.gov/
that the proposed extension of the Pilot Proposed Rule Change Received From
rules/sro.shtml). Copies of the
Program will continue to provide greater Members, Participants, or Others
submission, all subsequent
opportunities for investors. Further, the The Exchange neither solicited nor amendments, all written statements
Exchange believes that it has not received comments on the proposed with respect to the proposed rule
experienced any adverse effects or rule change. change that are filed with the
meaningful regulatory concerns from III. Date of Effectiveness of the Proposed Commission, and all written
the operation of the Pilot Program. As Rule Change and Timing for communications relating to the
such, the Exchange believes that the Commission Action proposed rule change between the
extension of the Pilot Program does not Commission and any person, other than
raise any unique or prohibitive Because the foregoing proposed rule those that may be withheld from the
regulatory concerns. Also, the Exchange change does not: (i) Significantly affect public in accordance with the
believes that such trading has not, and the protection of investors or the public provisions of 5 U.S.C. 552, will be
will not, adversely impact fair and interest; (ii) impose any significant available for Web site viewing and
orderly markets on Expiration Fridays burden on competition; and (iii) become printing in the Commission’s Public
for the underlying stocks comprising the operative for 30 days from the date on Reference Room, 100 F Street NE.,
S&P 500 index. The extension of the which it was filed, or such shorter time Washington, DC 20549, on official
Pilot Program will continue to provide as the Commission may designate, it has business days between the hours of
investors with the opportunity to trade become effective pursuant to Section 10:00 a.m. and 3:00 p.m. Copies of the
the desirable products of SPXPM and 19(b)(3)(A) of the Act 17 and Rule 19b– filing also will be available for
P.M.-settled XSP, while also providing 4(f)(6) 18 thereunder. inspection and copying at the principal
the Commission further opportunity to At any time within 60 days of the office of the Exchange. All comments
observe such trading of the Pilot filing of the proposed rule change, the received will be posted without change;
Products. Commission summarily may the Commission does not edit personal
temporarily suspend such rule change if identifying information from
B. Self-Regulatory Organization’s it appears to the Commission that such
Statement on Burden on Competition submissions. You should submit only
action is necessary or appropriate in the information that you wish to make
CBOE does not believe that the public interest, for the protection of available publicly. All submissions
proposed rule change will impose any investors, or otherwise in furtherance of should refer to File Number SR–CBOE–
burden on competition that is not the purposes of the Act. 2017–025 and should be submitted on
necessary or appropriate in furtherance IV. Solicitation of Comments or before May 3, 2017.
of the purposes of the Act. The
Interested persons are invited to For the Commission, by the Division of
Exchange does not believe the Trading and Markets, pursuant to delegated
continuation of the Pilot Program will submit written data, views, and
authority.19
impose any unnecessary or arguments concerning the foregoing,
including whether the proposed rule Eduardo A. Aleman,
inappropriate burden on intramarket
change is consistent with the Act. Assistant Secretary.
competition because it will continue to
apply equally to all CBOE market Comments may be submitted by any of [FR Doc. 2017–07306 Filed 4–11–17; 8:45 am]
participants, and the Pilot Products will the following methods: BILLING CODE 8011–01–P

be available to all CBOE market Electronic Comments
participants. The Exchange believes
there is sufficient investor interest and • Use the Commission’s Internet SECURITIES AND EXCHANGE
comment form (http://www.sec.gov/ COMMISSION
demand in the Pilot Program to warrant
its extension. The Exchange believes rules/sro.shtml); or [Release No. 34–80387; File No. SR–CBOE–
• Send an email to rule-comments@ 2017–026]
that, for the period that the Pilot
Program has been in operation, it has sec.gov. Please include File Number SR–
provided investors with desirable CBOE–2017–025 on the subject line. Self-Regulatory Organizations;
products with which to trade. Paper Comments Chicago Board Options Exchange,
Furthermore, the Exchange believes that Incorporated; Notice of Filing and
• Send paper comments in triplicate Immediate Effectiveness of a Proposed
it has not experienced any adverse to Secretary, Securities and Exchange
market effects or regulatory concerns Rule Change To Renew Nonstandard
Commission, 100 F Street NE., Expirations Pilot Program
with respect to the Pilot Program. The Washington, DC 20549–1090.
Exchange further does not believe that April 6, 2017.
All submissions should refer to File
the proposed extension of the Pilot Pursuant to Section 19(b)(1) of the
Number SR–CBOE–2017–025.This file
Program will impose any burden on Securities Exchange Act of 1934 (the
number should be included on the
intermarket competition that is not ‘‘Act’’),1 and Rule 19b–4 thereunder,2
subject line if email is used. To help the
necessary or appropriate in furtherance notice is hereby given that on March 29,
of the purposes of the Act because it
mstockstill on DSK30JT082PROD with NOTICES

17 15 U.S.C. 78s(b)(3)(A). 2017, Chicago Board Options Exchange,
only applies to trading on CBOE. To the 18 17 CFR 240.19b–4(f)(6)(iii). As required under Incorporated (the ‘‘Exchange’’ or
extent that the continued trading of the Rule 19b–4(f)(6)(iii), the Exchange provided the ‘‘CBOE’’) filed with the Securities and
Pilot Products may make CBOE a more Commission with written notice of its intent to file Exchange Commission (the
attractive marketplace to market the proposed rule change, along with a brief
description and the text of the proposed rule
participants at other exchanges, such change, at least five business days prior to the date
19 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
of filing of the proposed rule change, or such
16 Id. shorter time as designated by the Commission. 2 17 CFR 240.19b–4.

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Document Created: 2017-04-12 00:23:27
Document Modified: 2017-04-12 00:23:27
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 17704