82_FR_17775 82 FR 17706 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Renew Nonstandard Expirations Pilot Program

82 FR 17706 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Renew Nonstandard Expirations Pilot Program

SECURITIES AND EXCHANGE COMMISSION

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

Page Range17706-17708
FR Document2017-07307

Federal Register, Volume 82 Issue 69 (Wednesday, April 12, 2017)
[Federal Register Volume 82, Number 69 (Wednesday, April 12, 2017)]
[Notices]
[Pages 17706-17708]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-07307]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80387; File No. SR-CBOE-2017-026]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Renew Nonstandard Expirations 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 29, 2017, Chicago Board Options Exchange, Incorporated 
(the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange 
Commission (the

[[Page 17707]]

``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 renew an existing pilot program until 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

    (a)-(d) No change.
    (e) Nonstandard Expirations Pilot Program
    (1)-(2) No change.
    (3) Duration of Nonstandard Expirations Pilot Program. The 
Nonstandard Expirations Pilot Program shall be through May 3, 201[7]8.
    (4) No change.

. . . Interpretations and Policies

.01-.14 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
    On September 14, 2010, the Commission approved a CBOE proposal to 
establish a pilot program under which the Exchange is permitted to list 
P.M.-settled options on broad-based indexes to expire on (a) any Friday 
of the month, other than the third Friday-of-the-month, and (b) the 
last trading day of the month.\5\ On January 14, 2016, the Commission 
approved a CBOE proposal to expand the pilot program to allow P.M.-
settled options on broad-based indexes to expire on any Wednesday of 
month, other than those that coincide with an EOM.\6\ On August 10, 
2016, the Commission approved a CBOE proposal to expand the pilot 
program to allow P.M.-settled options on broad-based indexes to expire 
on any Monday of month, other than those that coincide with an EOM.\7\ 
Under the terms of the Nonstandard Expirations Pilot Program 
(``Program''), Weekly Expirations and EOMs are permitted on any broad-
based index that is eligible for regular options trading. Weekly 
Expirations and EOMs are cash-settled and have European-style exercise. 
The proposal became effective on a pilot basis for a period of fourteen 
months that commenced on the next full month after approval was 
received to establish the Program \8\ and was subsequently extended.\9\ 
The Program is scheduled to expire on May 3, 2017. The Exchange 
believes that the Program has been successful and well received by its 
Trading Permit Holders and the investing public during that the time 
that it has been in operation. The Exchange hereby proposes to extend 
the Program until May 3, 2018. This proposal does not request any other 
changes to the Program.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release 62911 (September 14, 
2010), 75 FR 57539 (September 21, 2010) (order approving SR-CBOE-
2009-075).
    \6\ See Securities Exchange Act Release 76909 (January 14, 
2016), 81 FR 3512 (January 21, 2016) (order approving SR-CBOE-2015-
106).
    \7\ See Securities Exchange Act Release 78531 (August 10, 2016), 
81 FR 54643 (August 16, 2016) (order approving SR-CBOE-2016-046).
    \8\ Id [sic].
    \9\ See Securities Exchange Act Release 65741 (November 14, 
2011), 76 FR 72016 (November 21, 2011) (immediately effective rule 
change extending the Program through February 14, 2013). See also 
Securities Exchange Act Release 68933 (February 14, 2013), 78 FR 
12374 (February 22, 2013) (immediately effective rule change 
extending the Program through April 14, 2014); 71836 (April 1, 
2014), 79 FR 19139 (April 7, 2014) (immediately effective rule 
change extending the Program through November 3, 2014); 73422 
(October 24, 2014), 79 FR 64640 (October 30, 2014) (immediately 
effective rule change extending the Program through May 3, 2016); 
and 76909 (January 14, 2016), 81 FR 3512 (January 21, 2016) 
(extending the Program through May 3, 2017).
---------------------------------------------------------------------------

    Pursuant to the order approving the establishment of the Program, 
two months prior to the conclusion of the pilot period, CBOE is 
required to submit an annual report to the Commission, which addresses 
the following areas: Analysis of Volume & Open Interest, Monthly 
Analysis of Weekly Expirations & EOM Trading Patterns and Provisional 
Analysis of Index Price Volatility. The Exchange has submitted, under 
separate cover, the annual report in connection with the present 
proposed rule change. Confidential treatment under the Freedom of 
Information Act is requested regarding the annual report.
    If, in the future, the Exchange proposes an additional extension of 
the Program, or should the Exchange propose to make the Program 
permanent (which the Exchange currently intends to do), the Exchange 
will submit an annual report (addressing the same areas referenced 
above and consistent with the order approving the establishment of the 
Program) to the Commission at least two months prior to the expiration 
date of the Program. The annual report will be provided to the 
Commission on a confidential basis. Any positions established under the 
Program will not be impacted by the expiration of the Program.
    The Exchange believes there is sufficient investor interest and 
demand in the Program to warrant its extension. The Exchange believes 
that the Program has provided investors with additional means of 
managing their risk exposures and carrying out their investment 
objectives. Furthermore, the Exchange has not experienced any adverse 
market effects with respect to the Program.
    The Exchange believes that the proposed extension of the Program 
will not have an adverse impact on capacity.
2. Statutory Basis
    The 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.\10\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \11\ requirements that the rules of an exchange be 
designed to prevent fraudulent and manipulative acts and

[[Page 17708]]

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) \12\ requirement that the rules of 
an exchange not be designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
    \12\ Id.
---------------------------------------------------------------------------

    In particular, the Exchange believes that the Program has been 
successful to date and states that it has not encountered any problems 
with the Program. The proposed rule change allows for an extension of 
the Program for the benefit of market participants. Additionally, the 
Exchange believes that there is demand for the expirations offered 
under the Program and believes that that Weekly Expirations and EOMs 
will continue to provide the investing public and other market 
participants increased opportunities to better manage their risk 
exposure.

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 \13\ and 
Rule 19b-4(f)(6) \14\ 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.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

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-2017-026 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-CBOE-2017-026. 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-2017-026 and should be 
submitted on or before May 3, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-07307 Filed 4-11-17; 8:45 am]
 BILLING CODE 8011-01-P



                                                  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.




                                             VerDate Sep<11>2014   18:45 Apr 11, 2017   Jkt 241001   PO 00000   Frm 00082   Fmt 4703   Sfmt 4703   E:\FR\FM\12APN1.SGM      12APN1


                                                                                     Federal Register / Vol. 82, No. 69 / Wednesday, April 12, 2017 / Notices                                          17707

                                                  ‘‘Commission’’) the proposed rule                             the most significant aspects of such                  investing public during that the time
                                                  change as described in Items I, II, and                       statements.                                           that it has been in operation. The
                                                  III below, which Items have been                                                                                    Exchange hereby proposes to extend the
                                                                                                                A. Self-Regulatory Organization’s
                                                  prepared by the Exchange. The                                                                                       Program until May 3, 2018. This
                                                                                                                Statement of the Purpose of, and
                                                  Exchange filed the proposal as a ‘‘non-                                                                             proposal does not request any other
                                                                                                                Statutory Basis for, the Proposed Rule
                                                  controversial’’ proposed rule change                                                                                changes to the Program.
                                                                                                                Change                                                   Pursuant to the order approving the
                                                  pursuant to Section 19(b)(3)(A)(iii) of
                                                  the Act 3 and Rule 19b–4(f)(6)                                1. Purpose                                            establishment of the Program, two
                                                  thereunder.4 The Commission is                                   On September 14, 2010, the                         months prior to the conclusion of the
                                                  publishing this notice to solicit                             Commission approved a CBOE proposal                   pilot period, CBOE is required to submit
                                                  comments on the proposed rule change                          to establish a pilot program under                    an annual report to the Commission,
                                                  from interested persons.                                      which the Exchange is permitted to list               which addresses the following areas:
                                                                                                                P.M.-settled options on broad-based                   Analysis of Volume & Open Interest,
                                                  I. Self-Regulatory Organization’s                                                                                   Monthly Analysis of Weekly Expirations
                                                  Statement of the Terms of Substance of                        indexes to expire on (a) any Friday of
                                                                                                                the month, other than the third Friday-               & EOM Trading Patterns and Provisional
                                                  the Proposed Rule Change                                                                                            Analysis of Index Price Volatility. The
                                                                                                                of-the-month, and (b) the last trading
                                                    The Exchange seeks to renew an                              day of the month.5 On January 14, 2016,               Exchange has submitted, under separate
                                                  existing pilot program until May 3,                           the Commission approved a CBOE                        cover, the annual report in connection
                                                  2018. The text of the proposed rule                           proposal to expand the pilot program to               with the present proposed rule change.
                                                  change is provided below.                                     allow P.M.-settled options on broad-                  Confidential treatment under the
                                                  (additions are italicized; deletions are                      based indexes to expire on any                        Freedom of Information Act is requested
                                                  [bracketed])                                                  Wednesday of month, other than those                  regarding the annual report.
                                                                                                                that coincide with an EOM.6 On August                    If, in the future, the Exchange
                                                  *     *     *     *     *                                                                                           proposes an additional extension of the
                                                                                                                10, 2016, the Commission approved a
                                                  Chicago Board Options Exchange,                               CBOE proposal to expand the pilot                     Program, or should the Exchange
                                                  Incorporated Rules                                            program to allow P.M.-settled options                 propose to make the Program permanent
                                                                                                                on broad-based indexes to expire on any               (which the Exchange currently intends
                                                  *          *       *       *      *
                                                                                                                Monday of month, other than those that                to do), the Exchange will submit an
                                                  Rule 24.9. Terms of Index Option                              coincide with an EOM.7 Under the                      annual report (addressing the same
                                                  Contracts                                                     terms of the Nonstandard Expirations                  areas referenced above and consistent
                                                    (a)–(d) No change.                                          Pilot Program (‘‘Program’’), Weekly                   with the order approving the
                                                    (e) Nonstandard Expirations Pilot                           Expirations and EOMs are permitted on                 establishment of the Program) to the
                                                  Program                                                       any broad-based index that is eligible                Commission at least two months prior to
                                                    (1)–(2) No change.                                          for regular options trading. Weekly                   the expiration date of the Program. The
                                                    (3) Duration of Nonstandard                                 Expirations and EOMs are cash-settled                 annual report will be provided to the
                                                  Expirations Pilot Program. The                                and have European-style exercise. The                 Commission on a confidential basis.
                                                  Nonstandard Expirations Pilot Program                         proposal became effective on a pilot                  Any positions established under the
                                                  shall be through May 3, 201[7]8.                              basis for a period of fourteen months                 Program will not be impacted by the
                                                    (4) No change.                                              that commenced on the next full month                 expiration of the Program.
                                                                                                                after approval was received to establish                 The Exchange believes there is
                                                  . . . Interpretations and Policies                            the Program 8 and was subsequently                    sufficient investor interest and demand
                                                                                                                extended.9 The Program is scheduled to                in the Program to warrant its extension.
                                                  .01–.14         No change.
                                                                                                                expire on May 3, 2017. The Exchange                   The Exchange believes that the Program
                                                  *      *     *    *    *                                      believes that the Program has been                    has provided investors with additional
                                                     The text of the proposed rule change                       successful and well received by its                   means of managing their risk exposures
                                                  is also available on the Exchange’s Web                       Trading Permit Holders and the                        and carrying out their investment
                                                  site (http://www.cboe.com/AboutCBOE/                                                                                objectives. Furthermore, the Exchange
                                                  CBOELegalRegulatoryHome.aspx), at                                5 See Securities Exchange Act Release 62911        has not experienced any adverse market
                                                  the Exchange’s Office of the Secretary,                       (September 14, 2010), 75 FR 57539 (September 21,      effects with respect to the Program.
                                                  and at the Commission’s Public                                2010) (order approving SR–CBOE–2009–075).                The Exchange believes that the
                                                                                                                   6 See Securities Exchange Act Release 76909
                                                  Reference Room.                                                                                                     proposed extension of the Program will
                                                                                                                (January 14, 2016), 81 FR 3512 (January 21, 2016)
                                                                                                                                                                      not have an adverse impact on capacity.
                                                  II. Self-Regulatory Organization’s                            (order approving SR–CBOE–2015–106).
                                                                                                                   7 See Securities Exchange Act Release 78531
                                                  Statement of the Purpose of, and                                                                                    2. Statutory Basis
                                                                                                                (August 10, 2016), 81 FR 54643 (August 16, 2016)
                                                  Statutory Basis for, the Proposed Rule                        (order approving SR–CBOE–2016–046).                      The Exchange believes the proposed
                                                  Change                                                           8 Id [sic].
                                                                                                                                                                      rule change is consistent with the
                                                                                                                   9 See Securities Exchange Act Release 65741
                                                    In its filing with the Commission, the                                                                            Securities Exchange Act of 1934 (the
                                                                                                                (November 14, 2011), 76 FR 72016 (November 21,
                                                  Exchange included statements                                  2011) (immediately effective rule change extending
                                                                                                                                                                      ‘‘Act’’) and the rules and regulations
                                                  concerning the purpose of and basis for                       the Program through February 14, 2013). See also      thereunder applicable to the Exchange
                                                  the proposed rule change and discussed                        Securities Exchange Act Release 68933 (February       and, in particular, the requirements of
                                                  any comments it received on the                               14, 2013), 78 FR 12374 (February 22, 2013)            Section 6(b) of the Act.10 Specifically,
                                                                                                                (immediately effective rule change extending the
                                                  proposed rule change. The text of these                                                                             the Exchange believes the proposed rule
mstockstill on DSK30JT082PROD with NOTICES




                                                                                                                Program through April 14, 2014); 71836 (April 1,
                                                  statements may be examined at the                             2014), 79 FR 19139 (April 7, 2014) (immediately       change is consistent with the Section
                                                  places specified in Item IV below. The                        effective rule change extending the Program           6(b)(5) 11 requirements that the rules of
                                                  Exchange has prepared summaries, set                          through November 3, 2014); 73422 (October 24,         an exchange be designed to prevent
                                                                                                                2014), 79 FR 64640 (October 30, 2014) (immediately
                                                  forth in sections A, B, and C below, of                       effective rule change extending the Program
                                                                                                                                                                      fraudulent and manipulative acts and
                                                                                                                through May 3, 2016); and 76909 (January 14,
                                                      3 15   U.S.C. 78s(b)(3)(A)(iii).                                                                                  10 15   U.S.C. 78f(b).
                                                                                                                2016), 81 FR 3512 (January 21, 2016) (extending the
                                                      4 17   CFR 240.19b–4(f)(6).                               Program through May 3, 2017).                           11 15   U.S.C. 78f(b)(5).



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                                                  17708                        Federal Register / Vol. 82, No. 69 / Wednesday, April 12, 2017 / Notices

                                                  practices, to promote just and equitable                   B. impose any significant burden on                 available for Web site viewing and
                                                  principles of trade, to foster cooperation              competition; and                                       printing in the Commission’s Public
                                                  and coordination with persons engaged                      C. become operative for 30 days from                Reference Room, 100 F Street NE.,
                                                  in regulating, clearing, settling,                      the date on which it was filed, or such                Washington, DC 20549, on official
                                                  processing information with respect to,                 shorter time as the Commission may                     business days between the hours of
                                                  and facilitation transactions in                        designate, it has become effective                     10:00 a.m. and 3:00 p.m. Copies of the
                                                  securities, to remove impediments to                    pursuant to Section 19(b)(3)(A) of the                 filing also will be available for
                                                  and perfect the mechanism of a free and                 Act 13 and Rule 19b–4(f)(6) 14                         inspection and copying at the principal
                                                  open market and a national market                       thereunder. At any time within 60 days                 office of the Exchange. All comments
                                                  system, and, in general, to protect                     of the filing of the proposed rule change,             received will be posted without change;
                                                  investors and the public interest.                      the Commission summarily may                           the Commission does not edit personal
                                                  Additionally, the Exchange believes the                 temporarily suspend such rule change if                identifying information from
                                                  proposed rule change is consistent with                 it appears to the Commission that such                 submissions. You should submit only
                                                  the Section 6(b)(5) 12 requirement that                 action is necessary or appropriate in the              information that you wish to make
                                                  the rules of an exchange not be designed                public interest, for the protection of                 available publicly. All submissions
                                                  to permit unfair discrimination between                 investors, or otherwise in furtherance of              should refer to File Number SR–CBOE–
                                                  customers, issuers, brokers, or dealers.                the purposes of the Act. If the                        2017–026 and should be submitted on
                                                     In particular, the Exchange believes                 Commission takes such action, the                      or before May 3, 2017.
                                                  that the Program has been successful to                 Commission will institute proceedings                    For the Commission, by the Division of
                                                  date and states that it has not                         to determine whether the proposed rule                 Trading and Markets, pursuant to delegated
                                                  encountered any problems with the                       change should be approved or                           authority.15
                                                  Program. The proposed rule change                       disapproved.                                           Eduardo A. Aleman,
                                                  allows for an extension of the Program                                                                         Assistant Secretary.
                                                                                                          IV. Solicitation of Comments
                                                  for the benefit of market participants.
                                                                                                            Interested persons are invited to                    [FR Doc. 2017–07307 Filed 4–11–17; 8:45 am]
                                                  Additionally, the Exchange believes that
                                                  there is demand for the expirations                     submit written data, views, and                        BILLING CODE 8011–01–P

                                                  offered under the Program and believes                  arguments concerning the foregoing,
                                                  that that Weekly Expirations and EOMs                   including whether the proposed rule
                                                                                                          change is consistent with the Act.                     SECURITIES AND EXCHANGE
                                                  will continue to provide the investing                                                                         COMMISSION
                                                  public and other market participants                    Comments may be submitted by any of
                                                  increased opportunities to better                       the following methods:                                 [Release No. 34–80385; File No. SR–CBOE–
                                                  manage their risk exposure.                                                                                    2017–014]
                                                                                                          Electronic Comments
                                                  B. Self-Regulatory Organization’s                         • Use the Commission’s Internet                      Self-Regulatory Organizations;
                                                  Statement on Burden on Competition                      comment form (http://www.sec.gov/                      Chicago Board Options Exchange,
                                                    CBOE does not believe that the                        rules/sro.shtml); or                                   Incorporated; Order Approving
                                                  proposed rule change will impose any                      • Send an email to rule-comments@                    Proposed Rule Change Related to Rule
                                                  burden on competition that is not                       sec.gov. Please include File Number SR–                24.9(e)
                                                  necessary or appropriate in furtherance                 CBOE–2017–026 on the subject line.
                                                                                                                                                                 April 6, 2017.
                                                  of the purposes of the Act. Specifically,               Paper Comments
                                                  the Exchange believes that, by extending                                                                       I. Introduction
                                                                                                            • Send paper comments in triplicate
                                                  the expiration of the Program, the                                                                                Pursuant to Section 19(b)(1) of the
                                                                                                          to Brent J. Fields, Secretary, Securities
                                                  proposed rule change will allow for                                                                            Securities Exchange Act of 1934
                                                                                                          and Exchange Commission, 100 F Street
                                                  further analysis of the Program and a                                                                          (‘‘Act’’) 1 and Rule 19b–4 thereunder,2
                                                                                                          NE., Washington, DC 20549–1090.
                                                  determination of how the Program shall                                                                         Chicago Board Options Exchange,
                                                  be structured in the future. In doing so,               All submissions should refer to File
                                                                                                          Number SR–CBOE–2017–026. This file                     Incorporated (the ‘‘Exchange’’ or
                                                  the proposed rule change will also serve                                                                       ‘‘CBOE’’) filed with the Securities and
                                                  to promote regulatory clarity and                       number should be included on the
                                                                                                          subject line if email is used. To help the             Exchange Commission (‘‘Commission’’)
                                                  consistency, thereby reducing burdens                                                                          a proposed rule change to amend the
                                                  on the marketplace and facilitating                     Commission process and review your
                                                                                                          comments more efficiently, please use                  operation of its nonstandard expirations
                                                  investor protection.                                                                                           pilot program on February 13, 2017. The
                                                                                                          only one method. The Commission will
                                                  C. Self-Regulatory Organization’s                       post all comments on the Commission’s                  proposed rule change was published for
                                                  Statement on Comments on the                            Internet Web site (http://www.sec.gov/                 comment in the Federal Register on
                                                  Proposed Rule Change Received From                      rules/sro.shtml). Copies of the                        February 21, 2017.3 No comment letters
                                                  Members, Participants, or Others                        submission, all subsequent                             were received in response to this
                                                                                                          amendments, all written statements                     proposal. This order approves the
                                                    The Exchange neither solicited nor
                                                                                                          with respect to the proposed rule                      proposed rule changes.
                                                  received comments on the proposed
                                                  rule change.                                            change that are filed with the                         II. Description of the Proposed Rule
                                                                                                          Commission, and all written                            Change
                                                  III. Date of Effectiveness of the                       communications relating to the
                                                  Proposed Rule Change and Timing for                     proposed rule change between the                         The proposed rule change amended
mstockstill on DSK30JT082PROD with NOTICES




                                                  Commission Action                                       Commission and any person, other than                  the nonstandard expirations pilot
                                                     Because the foregoing proposed rule                  those that may be withheld from the                      15 17  CFR 200.30–3(a)(12).
                                                  change does not:                                        public in accordance with the                            1 15  U.S.C. 78s(b)(1).
                                                     A. Significantly affect the protection               provisions of 5 U.S.C. 552, will be                       2 17 CFR 240.19b–4.
                                                  of investors or the public interest;                                                                              3 See Securities Exchange Act Release No. 80037
                                                                                                            13 15   U.S.C. 78s(b)(3)(A).                         (Feb. 14, 2017), 82 FR 11290 (SR–CBOE–2017–014)
                                                    12 Id.                                                  14 17   CFR 240.19b–4(f)(6).                         (‘‘Notice’’).



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Document Created: 2017-04-12 00:23:36
Document Modified: 2017-04-12 00:23:36
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation82 FR 17706 

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