82 FR 18679 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 75 (April 20, 2017)
Federal Register Volume 82, Issue 75 (April 20, 2017)
| Page Range | 18679-18680 | |
| FR Document | 2017-07954 |
[Federal Register Volume 82, Number 75 (Thursday, April 20, 2017)] [Notices] [Pages 18679-18680] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-07954] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80462; File No. SR-CBOE-2017-033] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule April 14, 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 April 10, 2017, Chicago Board Options Exchange, Incorporated (the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The 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 Substance of the Proposed Rule Change 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 1. Purpose The Exchange proposes to amend its Fees Schedule with respect to the Frequent Trader program.\3\ By way of background, the Frequent Trader Program offers transaction fee rebates to registered Customers, Professional Customers and Voluntary Professionals (origin codes ``C'' and ``W'') (collectively ``Customers'') that meet certain volume thresholds in CBOE VIX Volatility Index options (``VIX options''), Russell 2000 Index (``RUT'') options, and S&P 500 Index options (``SPX''), weekly S&P 500 options (``SPXW'') and p.m.-settled SPX Index options (``SPXpm'') (collectively referred to as ``SPX options'') provided the Customer registers for the program. The Exchange proposes to amend the Frequent Trader Program to increase the (i) volume thresholds and (ii) rebates for VIX options. Specifically, the proposed changes will be as follows: --------------------------------------------------------------------------- \3\ The Exchange initially filed the proposed fee change on April 3, 2017 (SR-CBOE-2017-027). On April 10, 2017, the Exchange withdrew that filing and submitted this filing. VIX ---------------------------------------------------------------------------------------------------------------- Monthly contracts traded Fee rebate ----------------------------------------------------------------------------- Tier Current Proposed Current Proposed (percent) (percent) ---------------------------------------------------------------------------------------------------------------- 1................................. 10,000-49,000........ 10,000-99,999........ 3 5 2................................. 50,000-99,000........ 100,000-299,999...... 6 15 3................................. 100,000 and above.... 300,000 and above.... 9 25 ---------------------------------------------------------------------------------------------------------------- [[Page 18680]] The Exchange believes the proposed changes incentivizes the sending of Customer orders to the Exchange while maintaining an incremental incentive for Customers to strive for the highest tier level. 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.\4\ Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \5\ 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. The Exchange also believes the proposed rule change is consistent with Section 6(b)(4) of the Act,\6\ which provides that Exchange rules may provide for the equitable allocation of reasonable dues, fees, and other charges among its Trading Permit Holders. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78f(b). \5\ 15 U.S.C. 78f(b)(5). \6\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- The Exchange believes it's reasonable to increase the Frequent Trader rebates for VIX because it provides Customers an opportunity to receive increased rebates for reaching certain qualifying volume thresholds that they would not otherwise receive. The proposed rule change is designed to encourage greater Customer VIX options trading, which, along with bringing greater VIX options trading opportunities to all market participants, would bring in more fees to the Exchange, and such fees can be used to recoup the Exchange's costs and expenditures from maintaining VIX options. The Exchange believes it's also reasonable to increase the qualifying volume thresholds for VIX as it still allows the Exchange to maintain an incremental incentive for Customers to strive for the highest tier level and because the Exchange has increased the rebates for each of the tiers. The Exchange believes it's equitable and not unfairly discriminatory to establish higher rebates under the Frequent Trader Program for VIX as compared to SPX and RUT options because the Exchange would like to encourage more VIX trading. The Exchange believes that the proposed change is not unfairly discriminatory because it will apply to all Frequent Trader Customers. B. Self-Regulatory Organization's Statement on Burden on Competition CBOE does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act because, while the rebates apply only to Customers, the proposed change is designed to encourage increased Customer VIX options volume, which provides greater trading opportunities for all market participants. The Exchange believes that the proposed rule change will not cause an unnecessary burden on intermarket competition because VIX is only traded on CBOE. To the extent that the proposed changes make CBOE a more attractive marketplace for market participants at other exchanges, such market participants are welcome to become CBOE market participants. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange neither solicited nor received comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \7\ and paragraph (f) of Rule 19b-4 \8\ 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. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78s(b)(3)(A). \8\ 17 CFR 240.19b-4(f). --------------------------------------------------------------------------- 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-2017-033 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-2017-033. 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-2017-033 and should be submitted on or before May 11, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\9\ --------------------------------------------------------------------------- \9\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2017-07954 Filed 4-19-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 75 / Thursday, April 20, 2017 / Notices 18679
II. Docketed Proceeding(s) 5. Docket No(s).: MC2017–117 and 2017, Chicago Board Options Exchange,
1. Docket No(s).: CP2017–164; Filing CP2017–168; Filing Title: Request of the Incorporated (the ‘‘Exchange’’ or
Title: Notice of United States Postal United States Postal Service to Add ‘‘CBOE’’) filed with the Securities and
Service of Filing a Functionally First-Class Package Service Contract 76 Exchange Commission (the
Equivalent Global Expedited Package to Competitive Product List and Notice ‘‘Commission’’) the proposed rule
Services 3 Negotiated Service of Filing (Under Seal) of Unredacted change as described in Items I, II, and
Agreement and Application for Non- Governors’ Decision, Contract, and III below, which Items have been
Public Treatment of Materials Filed Supporting Data; Filing Acceptance prepared by the Exchange. The
Under Seal; Filing Acceptance Date: Date: April 14, 2017; Filing Authority: Commission is publishing this notice to
April 14, 2017; Filing Authority: 39 CFR 39 U.S.C. 3642 and 39 CFR 3020.30 et solicit comments on the proposed rule
3015.5; Public Representative: Kenneth seq.; Public Representative: Katalin K. change from interested persons.
R. Moeller; Comments Due: April 24, Clendenin; Comments Due: April 24,
2017. I. Self-Regulatory Organization’s
2017.
2. Docket No(s).: MC2017–114 and 6. Docket No(s).: MC2017–118 and Statement of the Terms of Substance of
CP2017–165; Filing Title: Request of the CP2017–169; Filing Title: Request of the the Proposed Rule Change
United States Postal Service to Add United States Postal Service to Add
The text of the proposed rule change
Priority Mail Express & Priority Mail Priority Mail Express Contract 47 to
is available on the Exchange’s Web site
Contract 46 to Competitive Product List Competitive Product List and Notice of
(http://www.cboe.com/AboutCBOE/
and Notice of Filing (Under Seal) of Filing (Under Seal) of Unredacted
CBOELegalRegulatoryHome.aspx), at
Unredacted Governors’ Decision, Governors’ Decision, Contract, and
the Exchange’s Office of the Secretary,
Contract, and Supporting Data; Filing Supporting Data; Filing Acceptance
and at the Commission’s Public
Acceptance Date: April 14, 2017; Filing Date: April 14, 2017; Filing Authority:
Reference Room.
Authority: 39 U.S.C. 3642 and 39 CFR 39 U.S.C. 3642 and 39 CFR 3020.30 et
3020.30 et seq.; Public Representative: seq.; Public Representative: Katalin K. II. Self-Regulatory Organization’s
Kenneth R. Moeller; Comments Due: Clendenin; Comments Due: April 24, Statement of the Purpose of, and
April 24, 2017. 2017. Statutory Basis for, the Proposed Rule
3. Docket No(s).: MC2017–115 and This Notice will be published in the Change
CP2017–166; Filing Title: Request of the Federal Register.
United States Postal Service to Add 1. Purpose
Stacy L. Ruble,
Priority Mail Contract 308 to
Secretary. The Exchange proposes to amend its
Competitive Product List and Notice of
[FR Doc. 2017–08016 Filed 4–19–17; 8:45 am] Fees Schedule with respect to the
Filing (Under Seal) of Unredacted
Frequent Trader program.3 By way of
Governors’ Decision, Contract, and BILLING CODE 7710–FW–P
Supporting Data; Filing Acceptance background, the Frequent Trader
Date: April 14, 2017; Filing Authority: Program offers transaction fee rebates to
39 U.S.C. 3642 and 39 CFR 3020.30 et SECURITIES AND EXCHANGE registered Customers, Professional
seq.; Public Representative: Christopher COMMISSION Customers and Voluntary Professionals
C. Mohr; Comments Due: April 24, (origin codes ‘‘C’’ and ‘‘W’’) (collectively
[Release No. 34–80462; File No. SR–CBOE– ‘‘Customers’’) that meet certain volume
2017. 2017–033]
4. Docket No(s).: MC2017–116 and thresholds in CBOE VIX Volatility Index
CP2017–167; Filing Title: Request of the options (‘‘VIX options’’), Russell 2000
Self-Regulatory Organizations;
United States Postal Service to Add Chicago Board Options Exchange, Index (‘‘RUT’’) options, and S&P 500
Priority Mail Contract 309 to Incorporated; Notice of Filing and Index options (‘‘SPX’’), weekly S&P 500
Competitive Product List and Notice of Immediate Effectiveness of a Proposed options (‘‘SPXW’’) and p.m.-settled SPX
Filing (Under Seal) of Unredacted Rule Change To Amend the Fees Index options (‘‘SPXpm’’) (collectively
Governors’ Decision, Contract, and Schedule referred to as ‘‘SPX options’’) provided
Supporting Data; Filing Acceptance the Customer registers for the program.
Date: April 14, 2017; Filing Authority: April 14, 2017. The Exchange proposes to amend the
39 U.S.C. 3642 and 39 CFR 3020.30 et Pursuant to Section 19(b)(1) of the Frequent Trader Program to increase the
seq.; Public Representative: Christopher Securities Exchange Act of 1934 (the (i) volume thresholds and (ii) rebates for
C. Mohr; Comments Due: April 24, ‘‘Act’’),1 and Rule 19b–4 thereunder,2 VIX options. Specifically, the proposed
2017. notice is hereby given that on April 10, changes will be as follows:
VIX
Monthly contracts traded Fee rebate
Tier Current Proposed
Current Proposed (percent) (percent)
1 ...................................................... 10,000–49,000 ............................... 10,000–99,999 ............................... 3 5
asabaliauskas on DSK3SPTVN1PROD with NOTICES
2 ...................................................... 50,000–99,000 ............................... 100,000–299,999 ........................... 6 15
3 ...................................................... 100,000 and above ........................ 300,000 and above ........................ 9 25
1 15 U.S.C. 78s(b)(1). 3 The Exchange initially filed the proposed fee April 10, 2017, the Exchange withdrew that filing
2 17 CFR 240.19b–4. change on April 3, 2017 (SR–CBOE–2017–027). On and submitted this filing.
VerDate Sep<11>2014 17:27 Apr 19, 2017 Jkt 241001 PO 00000 Frm 00076 Fmt 4703 Sfmt 4703 E:\FR\FM\20APN1.SGM 20APN1](https://thefederalregister.org/doc/82_FR_18754/page/1.svg)
![18680 Federal Register / Vol. 82, No. 75 / Thursday, April 20, 2017 / Notices
The Exchange believes the proposed SPX and RUT options because the Comments may be submitted by any of
changes incentivizes the sending of Exchange would like to encourage more the following methods:
Customer orders to the Exchange while VIX trading. The Exchange believes that
maintaining an incremental incentive the proposed change is not unfairly Electronic Comments
for Customers to strive for the highest discriminatory because it will apply to • Use the Commission’s Internet
tier level. all Frequent Trader Customers. comment form (http://www.sec.gov/
2. Statutory Basis B. Self-Regulatory Organization’s rules/sro.shtml); or
The Exchange believes the proposed Statement on Burden on Competition • Send an email to rule-comments@
rule change is consistent with the CBOE does not believe that the sec.gov. Please include File Number SR–
Securities Exchange Act of 1934 (the proposed rule change will impose any CBOE–2017–033 on the subject line.
‘‘Act’’) and the rules and regulations burden on competition that is not
thereunder applicable to the Exchange necessary or appropriate in furtherance Paper Comments
and, in particular, the requirements of of the purposes of the Act because, • Send paper comments in triplicate
Section 6(b) of the Act.4 Specifically, while the rebates apply only to to Secretary, Securities and Exchange
the Exchange believes the proposed rule Customers, the proposed change is Commission, 100 F Street NE.,
change is consistent with the Section designed to encourage increased
6(b)(5) 5 requirements that the rules of Washington, DC 20549–1090.
Customer VIX options volume, which
an exchange be designed to prevent provides greater trading opportunities All submissions should refer to File
fraudulent and manipulative acts and for all market participants. The Number SR–CBOE–2017–033. This file
practices, to promote just and equitable Exchange believes that the proposed number should be included on the
principles of trade, to foster cooperation rule change will not cause an subject line if email is used. To help the
and coordination with persons engaged unnecessary burden on intermarket Commission process and review your
in regulating, clearing, settling, competition because VIX is only traded comments more efficiently, please use
processing information with respect to, on CBOE. To the extent that the only one method. The Commission will
and facilitating transactions in proposed changes make CBOE a more post all comments on the Commission’s
securities, to remove impediments to attractive marketplace for market Internet Web site (http://www.sec.gov/
and perfect the mechanism of a free and participants at other exchanges, such
open market and a national market rules/sro.shtml). Copies of the
market participants are welcome to submission, all subsequent
system, and, in general, to protect become CBOE market participants.
investors and the public interest. The amendments, all written statements
Exchange also believes the proposed C. Self-Regulatory Organization’s with respect to the proposed rule
rule change is consistent with Section Statement on Comments on the change that are filed with the
6(b)(4) of the Act,6 which provides that Proposed Rule Change Received From Commission, and all written
Exchange rules may provide for the Members, Participants, or Others communications relating to the
equitable allocation of reasonable dues, The Exchange neither solicited nor proposed rule change between the
fees, and other charges among its received comments on the proposed Commission and any person, other than
Trading Permit Holders. rule change. those that may be withheld from the
The Exchange believes it’s reasonable public in accordance with the
to increase the Frequent Trader rebates III. Date of Effectiveness of the provisions of 5 U.S.C. 552, will be
for VIX because it provides Customers Proposed Rule Change and Timing for available for Web site viewing and
an opportunity to receive increased Commission Action
printing in the Commission’s Public
rebates for reaching certain qualifying The foregoing rule change has become Reference Room, 100 F Street NE.,
volume thresholds that they would not effective pursuant to Section 19(b)(3)(A) Washington, DC 20549 on official
otherwise receive. The proposed rule of the Act 7 and paragraph (f) of Rule business days between the hours of
change is designed to encourage greater 19b–4 8 thereunder. At any time within 10:00 a.m. and 3:00 p.m. Copies of the
Customer VIX options trading, which, 60 days of the filing of the proposed rule filing also will be available for
along with bringing greater VIX options change, the Commission summarily may inspection and copying at the principal
trading opportunities to all market temporarily suspend such rule change if office of the Exchange. All comments
participants, would bring in more fees it appears to the Commission that such received will be posted without change;
to the Exchange, and such fees can be action is necessary or appropriate in the the Commission does not edit personal
used to recoup the Exchange’s costs and public interest, for the protection of identifying information from
expenditures from maintaining VIX investors, or otherwise in furtherance of
submissions. You should submit only
options. The Exchange believes it’s also the purposes of the Act. If the
reasonable to increase the qualifying information that you wish to make
Commission takes such action, the
volume thresholds for VIX as it still available publicly. All submissions
Commission will institute proceedings
allows the Exchange to maintain an to determine whether the proposed rule should refer to File Number SR–CBOE–
incremental incentive for Customers to change should be approved or 2017–033 and should be submitted on
strive for the highest tier level and disapproved. or before May 11, 2017.
because the Exchange has increased the For the Commission, by the Division of
IV. Solicitation of Comments
asabaliauskas on DSK3SPTVN1PROD with NOTICES
rebates for each of the tiers. The Trading and Markets, pursuant to delegated
Exchange believes it’s equitable and not Interested persons are invited to authority.9
unfairly discriminatory to establish submit written data, views, and Brent J. Fields,
higher rebates under the Frequent arguments concerning the foregoing,
Secretary.
Trader Program for VIX as compared to including whether the proposed rule
[FR Doc. 2017–07954 Filed 4–19–17; 8:45 am]
change is consistent with the Act.
4 15 U.S.C. 78f(b). BILLING CODE 8011–01–P
5 15 U.S.C. 78f(b)(5). 7 15 U.S.C. 78s(b)(3)(A).
6 15 U.S.C. 78f(b)(4). 8 17 CFR 240.19b–4(f). 9 17 CFR 200.30–3(a)(12).
VerDate Sep<11>2014 17:27 Apr 19, 2017 Jkt 241001 PO 00000 Frm 00077 Fmt 4703 Sfmt 9990 E:\FR\FM\20APN1.SGM 20APN1](https://thefederalregister.org/doc/82_FR_18754/page/2.svg)
Document Created: 2017-04-20 01:42:19
Document Modified: 2017-04-20 01:42:19
| 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 18679 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR