82 FR 18048 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of a Proposed Rule Change Relating to the Automated Improvement Mechanism and the Solicitation Auction Mechanism
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 71 (April 14, 2017)
Federal Register Volume 82, Issue 71 (April 14, 2017)
| Page Range | 18048-18051 | |
| FR Document | 2017-07534 |
[Federal Register Volume 82, Number 71 (Friday, April 14, 2017)] [Notices] [Pages 18048-18051] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-07534] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80421; File No. SR-CBOE-2017-029] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of a Proposed Rule Change Relating to the Automated Improvement Mechanism and the Solicitation Auction Mechanism April 10, 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 31, 2017, Chicago Board Options Exchange, Incorporated (the ``Exchange'' or [[Page 18049]] ``CBOE'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change The Exchange proposes to reduce the order handling and exposure periods of the Exchange's Automated Improvement Mechanism (``AIM'') and Solicitation Auction Mechanism (``SAM''). The text of the proposed rule change is available on the Exchange's Web site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of the proposed rule change is to reduce the order handling and exposure periods contained in Rules 6.74A and 6.74B from 1 second to a time period designated by the Exchange of no less than 100 milliseconds and no more than 1 second. Rule 6.74A contains the requirements applicable to the execution of orders using AIM. AIM allows the Exchange's Trading Permit Holders (``TPHs'') to electronically cross orders on the Exchange's Hybrid Trading System (``Hybrid''). Specifically, AIM allows TPHs to designate certain customer orders for price improvements and submit such orders into AIM with a matching facilitated or solicited contra order. Once the order is properly submitted, the Exchange commences an auction by broadcasting a message to all TPHs who have elected to receive AIM Request for Responses (``RFRs''). The RFR includes size and side of the order. Orders entered into AIM are currently exposed for a period of 1 second, giving an opportunity for additional trading interest to be entered before the orders are automatically executed. Agency orders entered into AIM must be for 50 standard contracts or 500 mini-option contracts or more. Rule 6.74B contains the requirements applicable to the execution of orders using SAM. SAM allows TPHs to cross large all-or-none orders on Hybrid. Specifically, SAM allows TPHs to designate certain customer orders as all-or-none for price improvements and submit such orders into SAM with a matching solicited contra order. Once the order is properly submitted, the Exchange commences an auction by broadcasting a message to all TPHs who have elected to receive SAM RFRs. The RFR includes size and side of the order. Orders entered into SAM are currently exposed for a period of 1 second, giving an opportunity for additional trading interest to be entered before the orders are automatically executed. Agency orders entered into SAM must be for 500 standard contracts or 5000 mini-option contracts or more. Under the proposal, the Exchange could reduce the exposure period for AIM and SAM to no less than 100 milliseconds (but no more than 1 second) consistent with the exposure periods permitted on other Exchanges such as NASDAQ BX (``BX''), NASDAQ PHLX (``Phlx'') and the International Securities Exchange (``ISE'').\3\ --------------------------------------------------------------------------- \3\ See Securities Exchange Act Release No. 76301 (October 29, 2015), 80 FR 68347 (November 4, 2015) (SR-BX-2015-032); Securities Exchange Act Release No. 77557 (April 7, 2016), 81 FR 21935 (April 13, 2016) (SR-PHLX-2016-40) and Securities Exchange Act Release No. 79733 (January 4, 2017), 82 FR 3055 (January 10, 2017) (SR-ISE-2016- 26). --------------------------------------------------------------------------- In adopting the current 1-second exposure period for both AIM and SAM, the Exchange recognized that TPHs had become automated to the point that they could react to these orders electronically within that timeframe. In this context, the Exchange recognizes that it is in all TPHs' best interest to minimize the exposure period to a time frame that continues to allow adequate time for the TPHs to electronically respond, as both the order being exposed and the TPHs responding are subject to market risk during the exposure period. In this respect, our experience with the 1 second exposure period indicates that 100 milliseconds would provide an adequate response time.\4\ Indeed, most TPHs either respond to RFRs within a much smaller time window. This is best evidenced by a review of responses to the Exchange's HAL auction, which awards the trade to the first responder at the NBBO price. Within HAL, 99.8% of the traded responses are received in 3 milliseconds or less. The COA auction is also configured with an auction timer of 100 milliseconds, meaning that all traded responses are received during that interval. Accordingly, the Exchange does not believe it is necessary or beneficial to the orders being exposed to continue to subject them to market risk for a full second. --------------------------------------------------------------------------- \4\ The Exchange has numerous TPHs that have the capability and do opt to respond within a 100 millisecond exposure period or less on its Hybrid trading platform. In this regard, the Exchange notes that it has other Hybrid electronic exposure mechanisms for which the applicable timers are currently set at 100 milliseconds or less and provide for an adequate response time. For example, the response timer for the Exchange's Hybrid Agency Liaison (``HAL''), Complex Order Auction (``COA''), and Simple Auction Liaison (``SAL'') mechanisms are currently set at 100 milliseconds or less and numerous TPHs can and do opt to respond to HAL, SAL, and COA messages within these time frames. The Exchange believes that our experience with the HAL, SAL, and COA mechanisms supports our view that 100 milliseconds is sufficient time for TPHs to respond to CBOE's AIM and SAM mechanisms which operate on the Hybrid Trading System and employ the same type of mechanical messaging as the HAL, SAL, and COA mechanisms. The Exchange also notes that any delay or latency associated with submitting responses to an AIM or SAM auction would be the same as responding to HAL, SAL, or COA because all such responses are processed over the same network. Further, CBOE has received no complaints from TPHs concerning the current 100 millisecond timer on the COA mechanism and the current 20 millisecond timers on the HAL and SAL mechanisms. --------------------------------------------------------------------------- TPHs who initiate AIM or SAM auctions (``Initiating TPH'') are required to guarantee an execution at the National Best Bid/Offer (``NBBO'') or a better price and are subject to market risk while the order is exposed in AIM or SAM. While responding TPHs are also subject to market risk, the Initiating TPH is the most exposed because the market can move against them during the entire auction period and they have guaranteed the customer an execution at the NBBO or better based on market prices prior to the commencement of the auction. In today's fast paced markets, large price changes can occur in 1 second or less, leaving Initiating TPHs vulnerable to trading losses as a result of their choice to seek price improvement for their customer. The Initiating TPH acts in a critical role in the price improvement process, and its willingness to guarantee the customer an execution at the NBBO or better price is essential to the customer order [[Page 18050]] gaining the opportunity for price improvement. When approving the existing 1 second order handling and exposure period for AIM and SAM, the Commission concluded that reducing each of the exposure periods from 3 seconds to 1 second could facilitate the prompt execution of orders, while continuing to provide the TPHs in Hybrid with an opportunity to compete for exposed bids and offers.\5\ Continuing on that same logic, the Exchange believes that reducing its AIM and SAM order handling and exposure periods from 1 second to no less than 100 milliseconds will benefit TPHs. Since TPHs react to these orders electronically, and often opt to respond at the beginning or the end of the 1 second period, the Exchange believes that having the flexibility to reduce the time periods will continue to provide TPHs with sufficient time to ensure effective interaction with orders.\6\ At the same time, this flexibility will allow the Exchange to provide investors and other TPHs with more timely executions, thereby reducing their market risk. --------------------------------------------------------------------------- \5\ See Securities Exchange Act Release No. 58088 (July 2, 2008), 73 FR 39747 (July 10, 2008) (SR-CBOE-2008-016). \6\ The Exchange believes that the proposed timeframe would give TPHs sufficient time to respond, compete and provide price improvement for orders. The Exchange also notes that electronic systems are readily available to, if not already in place for, TPHs that allow them to respond in a meaningful way within the proposed timeframe. --------------------------------------------------------------------------- This shortened exposure period is fully consistent with the electronic nature of Hybrid. TPHs have electronic systems available that would allow them to respond in a meaningful way within the proposed timeframe. The Exchange anticipates that TPHs will continue to compete within the proposed auction duration designated by the Exchange. The Exchange will continue to provide TPHs with sufficient time to respond, compete, and provide price improvement for orders. Although the Exchange currently plans to reduce the time period allowed to respond to AIM and SAM to 100 milliseconds, the Exchange believes it is appropriate to provide the flexibility to choose a response period of up to 1 second as this is consistent with the Rules of other options markets.\7\ --------------------------------------------------------------------------- \7\ See supra note 1. --------------------------------------------------------------------------- To substantiate that TPHs can receive, process and communicate a response to an auction broadcast within 100 milliseconds, the Exchange surveyed its top 15 AIM and SAM responders. The Exchange received responses from all of the TPHs surveyed and each TPH confirmed that they can receive, process and communicate a response back to the Exchange within 100 milliseconds. Also in consideration of this proposed rule change, the Exchange reviewed all responses that resulted in traded orders in December 2016. This review of both AIM and SAM responses indicated that approximately 63% of AIM responses and 63% of SAM responses that resulted in price improving executions at the conclusion of the auction occurred within 100 milliseconds of the initial order. In addition to the 63% of AIM responses and 63% of SAM responses that occur within 100 milliseconds of the initial order, approximately 20% of AIM responses and 15% of SAM responses that resulted in price improving executions at the conclusion of the auction occurred in the final 800-1000 milliseconds (i.e. within 200 milliseconds of the end of the RFR). The timing of these responses indicates that TPHs have configured their trading systems to either respond immediately to an AIM or SAM auction or to wait until the end of an auction period to reduce the risk of the market moving. Accordingly, the Exchange believes that an auction time as low as 100 milliseconds will continue to provide TPHs with sufficient time to respond to, compete for, and provide price improvement for orders, and will provide investors and other market participants with more timely executions, and reduce their market risk. Moreover, Rule 6.74A(b) provides that only one AIM auction may be ongoing at any given time in a series and auctions in the same series may not queue or overlap in any manner. As a result, TPHs may be unable to initiate AIM auctions on behalf of their customers. Reducing the auction time to 100 milliseconds will decrease the likelihood that an auction is underway when a customer order is received. Accordingly, the Exchange believes it is less likely that an auction attempt would be blocked due to another auction being in progress if the timer were to be reduced. The Exchange believes that the information outlined above regarding price improving transactions in AIM and SAM and the feedback provided by TPHs provides substantial support for its assertion that reducing the auction 1 second to as low as 100 milliseconds will continue to provide TPHs with sufficient time to ensure competition for orders entered into AIM and SAM and could provide customers with additional opportunities for price improvements. With regard to the impact of this proposal on system capacity, the Exchange has analyzed its capacity and represents that it has the necessary systems capacity to handle the potential additional traffic associated with the additional transactions that may occur with the implementation of the proposed reduction in the AIM and SAM duration to no less than 100 milliseconds. Additionally, the Exchange represents that its systems will be able to sufficiently maintain an audit trail for order and trade information with the reduction in the AIM and SAM duration. Upon effectiveness of the proposed rule change, and at least six weeks prior to implementation of the proposed rule change, the Exchange will issue a circular to TPHs, informing them of the implementation date of the reduction of the AIM and SAM duration from 1 second to the auction time designated by the Exchange to allow TPHs to perform any necessary systems changes. The Exchange also represents that it will issue a circular at least four weeks prior to any future changes, as permitted by its rules, to the auction time. 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.\8\ Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \9\ requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \10\ requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78f(b). \9\ 15 U.S.C. 78f(b)(5). \10\ Id. --------------------------------------------------------------------------- In particular, the proposed rule change will provide investors with more timely execution of their options orders, while ensuring there is adequate exposure of orders in AIM. Additionally, the proposed rule change [[Page 18051]] will allow more investors the opportunity to receive price improvement through AIM and SAM, and will reduce the market risk for TPHs using AIM and SAM. Finally, as mentioned above, other options exchanges, such as the BX, Phlx, and ISE, have already amended their rules to permit response times consistent with those proposed here.\11\ As such, the Exchange believes the proposed rule change would help perfect the mechanism for a free and open national market system and generally help protect investors' and the public's interest. --------------------------------------------------------------------------- \11\ See note 1 supra. --------------------------------------------------------------------------- The Exchange believes the proposed rule change is not unfairly discriminatory because the AIM and SAM duration would be the same for all TPHs. All TPHs who have elected to participate in AIM and SAM auctions have today, and will continue to have, an equal opportunity to receive and respond to AIM and SAM messages. Additionally, CBOE believes the reduction in the AIM and SAM duration reduces the market risk for all TPHs using AIM and SAM. The reduction in time period reduces the market risk for the Initiating TPH as well as any TPHs providing orders in response to an AIM and SAM auction. Moreover, based on the feedback the Exchange received from its TPHs, the Exchange believes that a reduction in the RFR period to a minimum of 100 milliseconds would not impair TPHs' ability to compete in the AIM and SAM. The Exchange believes these results support the assertion that a reduction in the AIM and SAM duration would not be unfairly discriminatory and would benefit investors. 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 proposed rule change is not designed to address any aspect of competition, but instead would continue to provide market participants with sufficient time to respond, compete, and provide price improvement for orders entered into AIM and SAM. The proposed rule also provides investors and other market participants with more timely executions, thereby reducing their market risk. As proposed, the rule does not impose an undue burden on competition because TPHs who elect to participate in AIM and SAM are capable of responding to the RFR in under 100 milliseconds (based on the recent TPH survey, review of auction responses, and shorter response periods in other auction mechanisms available on the Exchange, as discussed above). Finally, the proposed rule change offers the same exposure period to all TPHs and would not impose a competitive burden on any particular participant. 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 Within 45 days of the date of publication of this notice in the Federal Register or within such longer period up to 90 days (i) as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the Exchange consents, the Commission will: A. By order approve or disapprove such proposed rule change, or B. institute proceedings to determine whether the proposed rule change should be disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-CBOE-2017-029 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-2017-029. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-CBOE-2017-029, and should be submitted on or before May 5, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\12\ --------------------------------------------------------------------------- \12\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-07534 Filed 4-13-17; 8:45 am] BILLING CODE 8011-01-P
![18048 Federal Register / Vol. 82, No. 71 / Friday, April 14, 2017 / Notices
other regulatory fees, will be less than or unfairly discriminatory in violation if email is used. To help the
or equal to the Exchange’s regulatory of the Act. MIAX PEARL’s proposed Commission process and review your
costs, which is consistent with the ORF, as described herein, are comments more efficiently, please use
Commission’s view that regulatory fees comparable to fees charged by other only one method. The Commission will
be used for regulatory purposes and not options exchanges for the same or post all comments on the Commission’s
to support the Exchange’s business side. similar services. The proposal to limit Internet Web site (http://www.sec.gov/
In this regard, the Exchange believes the changes to the ORF to twice a year rules/sro.shtml). Copies of the
that the initial level of the fee is on specific dates with advance notice is submission, all subsequent
reasonable. not intended to address a competitive amendments, all written statements
The Exchange believes that the issue but rather to provide Members with respect to the proposed rule
proposal to limit changes to the ORF to with better notice of any change that the change that are filed with the
twice a year on specific dates with Exchange may make to the ORF. Commission, and all written
advance notice is reasonable because it communications relating to the
will give participants certainty on the C. Self-Regulatory Organization’s proposed rule change between the
timing of changes, if any, and better Statement on Comments on the Commission and any person, other than
enable them to properly account for Proposed Rule Change Received From those that may be withheld from the
ORF charges among their customers. Members, Participants, or Others public in accordance with the
The Exchange believes that the Written comments were neither provisions of 5 U.S.C. 552, will be
proposed change is equitable and not solicited nor received. available for Web site viewing and
unfairly discriminatory because it will printing in the Commission’s Public
apply in the same manner to all III. Date of Effectiveness of the
Reference Room, 100 F Street NE.,
Members that are subject to the ORF and Proposed Rule Change and Timing for Washington, DC 20549, on official
provide them with additional advance Commission Action business days between the hours of
notice of changes to that fee. The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the
The Exchange believes that the effective pursuant to Section filing also will be available for
proposal to collect the ORF from non- 19(b)(3)(A)(ii) of the Act,12 and Rule inspection and copying at the principal
Members under certain circumstances 19b–4(f)(2) 13 thereunder. At any time office of the Exchange. All comments
when the transaction that is subject to within 60 days of the filing of the received will be posted without change;
the ORF is executed at an away proposed rule change, the Commission the Commission does not edit personal
exchange is an equitable allocation of summarily may temporarily suspend identifying information from
reasonable dues, fees, and other charges such rule change if it appears to the submissions. You should submit only
among its members and issuers and Commission that such action is information that you wish to make
other persons using its facilities. If the necessary or appropriate in the public available publicly. All submissions
transaction is subject to the ORF, the interest, for the protection of investors, should refer to File No. SR–PEARL–
Exchange believes that, under certain or otherwise in furtherance of the 2017–15, and should be submitted on or
circumstances, it is reasonable and purposes of the Act. If the Commission before May 5, 2017.
appropriate to collect the ORF from takes such action, the Commission shall For the Commission, by the Division of
non-Members (noting that, as described institute proceedings to determine Trading and Markets, pursuant to delegated
above, such transaction always involves whether the proposed rule should be authority.14
a Member of the Exchange that clears or approved or disapproved. Eduardo A. Aleman,
ultimately clears the trade), based on the Assistant Secretary.
back office clearing processes of OCC. IV. Solicitation of Comments
[FR Doc. 2017–07536 Filed 4–13–17; 8:45 am]
B. Self-Regulatory Organization’s Interested persons are invited to
BILLING CODE 8011–01–P
Statement on Burden on Competition submit written data, views, and
arguments concerning the foregoing,
The Exchange does not believe that including whether the proposed rule
the proposed rule change will impose SECURITIES AND EXCHANGE
change is consistent with the Act. COMMISSION
any burden on competition not Comments may be submitted by any of
necessary or appropriate in furtherance the following methods: [Release No. 34–80421; File No. SR–CBOE–
of the purposes of the Act. The ORF is 2017–029]
not intended to have any impact on Electronic Comments
Self-Regulatory Organizations;
competition. Rather, it is designed to • Use the Commission’s Internet
enable the Exchange to recover a Chicago Board Options Exchange,
comment form (http://www.sec.gov/
material portion of the Exchange’s cost Incorporated; Notice of Filing of a
rules/sro.shtml); or
related to its regulatory activities. The • Send an email to rule-comments@ Proposed Rule Change Relating to the
Exchange is obligated to ensure that the Automated Improvement Mechanism
sec.gov. Please include File No. SR–
amount of regulatory revenue collected and the Solicitation Auction
PEARL–2017–15 on the subject line.
from the ORF, in combination with its Mechanism
other regulatory fees and fines, does not Paper Comments
April 10, 2017.
exceed regulatory costs. Unilateral • Send paper comments in triplicate Pursuant to Section 19(b)(1) of the
action by MIAX PEARL in establishing to Secretary, Securities and Exchange Securities Exchange Act of 1934 (the
fees for services provided to its Commission, 100 F Street NE.,
sradovich on DSK3GMQ082PROD with NOTICES
‘‘Act’’),1 and Rule 19b–4 thereunder,2
Members and others using its facilities Washington, DC 20549–1090. notice is hereby given that on March 31,
will not have an impact on competition. All submissions should refer to File No. 2017, Chicago Board Options Exchange,
As a new entrant in the already highly SR–PEARL–2017–15. This file number Incorporated (the ‘‘Exchange’’ or
competitive environment for equity should be included on the subject line
options trading, MIAX PEARL does not 14 17 CFR 200.30–3(a)(12).
have the market power necessary to set 12 15 U.S.C. 78s(b)(3)(A)(ii). 1 15 U.S.C. 78s(b)(1).
prices for services that are unreasonable 13 17 CFR 240.19b–4(f)(2). 2 17 CFR 240.19b–4.
VerDate Sep<11>2014 16:21 Apr 13, 2017 Jkt 241001 PO 00000 Frm 00082 Fmt 4703 Sfmt 4703 E:\FR\FM\14APN1.SGM 14APN1](https://thefederalregister.org/doc/82_FR_18119/page/1.svg)
![Federal Register / Vol. 82, No. 71 / Friday, April 14, 2017 / Notices 18051
will allow more investors the milliseconds (based on the recent TPH amendments, all written statements
opportunity to receive price survey, review of auction responses, and with respect to the proposed rule
improvement through AIM and SAM, shorter response periods in other change that are filed with the
and will reduce the market risk for auction mechanisms available on the Commission, and all written
TPHs using AIM and SAM. Finally, as Exchange, as discussed above). Finally, communications relating to the
mentioned above, other options the proposed rule change offers the proposed rule change between the
exchanges, such as the BX, Phlx, and same exposure period to all TPHs and Commission and any person, other than
ISE, have already amended their rules to would not impose a competitive burden those that may be withheld from the
permit response times consistent with on any particular participant. public in accordance with the
those proposed here.11 As such, the provisions of 5 U.S.C. 552, will be
Exchange believes the proposed rule C. Self-Regulatory Organization’s available for Web site viewing and
change would help perfect the Statement on Comments on the printing in the Commission’s Public
mechanism for a free and open national Proposed Rule Change Received From Reference Room, 100 F Street NE.,
market system and generally help Members, Participants, or Others Washington, DC 20549 on official
protect investors’ and the public’s The Exchange neither solicited nor business days between the hours of
interest. received comments on the proposed 10:00 a.m. and 3:00 p.m. Copies of such
The Exchange believes the proposed rule change. filing also will be available for
rule change is not unfairly inspection and copying at the principal
discriminatory because the AIM and III. Date of Effectiveness of the
office of the Exchange. All comments
SAM duration would be the same for all Proposed Rule Change and Timing for
received will be posted without change;
TPHs. All TPHs who have elected to Commission Action
the Commission does not edit personal
participate in AIM and SAM auctions Within 45 days of the date of identifying information from
have today, and will continue to have, publication of this notice in the Federal submissions. You should submit only
an equal opportunity to receive and Register or within such longer period information that you wish to make
respond to AIM and SAM messages. up to 90 days (i) as the Commission may available publicly. All submissions
Additionally, CBOE believes the designate if it finds such longer period should refer to File Number SR–CBOE–
reduction in the AIM and SAM duration to be appropriate and publishes its 2017–029, and should be submitted on
reduces the market risk for all TPHs reasons for so finding or (ii) as to which or before May 5, 2017.
using AIM and SAM. The reduction in the Exchange consents, the Commission For the Commission, by the Division of
time period reduces the market risk for will: Trading and Markets, pursuant to delegated
the Initiating TPH as well as any TPHs A. By order approve or disapprove authority.12
providing orders in response to an AIM such proposed rule change, or Eduardo A. Aleman,
and SAM auction. Moreover, based on B. institute proceedings to determine Assistant Secretary.
the feedback the Exchange received whether the proposed rule change
[FR Doc. 2017–07534 Filed 4–13–17; 8:45 am]
from its TPHs, the Exchange believes should be disapproved.
BILLING CODE 8011–01–P
that a reduction in the RFR period to a
IV. Solicitation of Comments
minimum of 100 milliseconds would
not impair TPHs’ ability to compete in Interested persons are invited to
SECURITIES AND EXCHANGE
the AIM and SAM. The Exchange submit written data, views, and
COMMISSION
believes these results support the arguments concerning the foregoing,
assertion that a reduction in the AIM including whether the proposed rule [Release No. 34–80419; File No. SR–
and SAM duration would not be change is consistent with the Act. NYSEMKT–2017–17]
unfairly discriminatory and would Comments may be submitted by any of
the following methods: Self-Regulatory Organizations; NYSE
benefit investors.
MKT LLC; Notice of Filing of Proposed
B. Self-Regulatory Organization’s Electronic Comments Rule Change, as Modified by
Statement on Burden on Competition • Use the Commission’s Internet Amendment No. 1 Thereto, Amending
CBOE does not believe that the comment form (http://www.sec.gov/ the Certificate of Incorporation and
proposed rule change will impose any rules/sro.shtml); or Bylaws of Its Ultimate Parent
burden on competition that is not • Send an email to rule-comments@ Company, Intercontinental Exchange,
necessary or appropriate in furtherance sec.gov. Please include File Number SR– Inc.
of the purposes of the Act. The CBOE–2017–029 on the subject line. April 10, 2017.
proposed rule change is not designed to Paper Comments Pursuant to Section 19(b)(1) 1 of the
address any aspect of competition, but Securities Exchange Act of 1934 (the
instead would continue to provide • Send paper comments in triplicate
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
market participants with sufficient time to Secretary, Securities and Exchange
notice is hereby given that, on March
to respond, compete, and provide price Commission, 100 F Street NE.,
28, 2017, NYSE MKT LLC (the
improvement for orders entered into Washington, DC 20549–1090.
‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with
AIM and SAM. The proposed rule also All submissions should refer to File the Securities and Exchange
provides investors and other market Number SR–CBOE–2017–029. This file Commission (the ‘‘Commission’’) the
participants with more timely number should be included on the proposed rule change as described in
subject line if email is used. To help the
sradovich on DSK3GMQ082PROD with NOTICES
executions, thereby reducing their Items I, II, and III below, which Items
market risk. As proposed, the rule does Commission process and review your have been prepared by the self-
not impose an undue burden on comments more efficiently, please use regulatory organization. On April 6,
competition because TPHs who elect to only one method. The Commission will
participate in AIM and SAM are capable post all comments on the Commission’s 12 17 CFR 200.30–3(a)(12).
of responding to the RFR in under 100 Internet Web site (http://www.sec.gov/ 1 15 U.S.C.78s(b)(1).
rules/sro.shtml). Copies of the 2 15 U.S.C. 78a.
11 See note 1 supra. submission, all subsequent 3 17 CFR 240.19b–4.
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Document Created: 2017-04-14 00:56:26
Document Modified: 2017-04-14 00:56:26
| 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 18048 |
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