82 FR 18941 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change Related to Unusual Market Conditions and the Requirement To Systemize Non-Electronic Orders Prior to Representation

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 77 (April 24, 2017)

Page Range		18941-18942
FR Document		2017-08164

Federal Register, Volume 82 Issue 77 (Monday, April 24, 2017)

[Federal Register Volume 82, Number 77 (Monday, April 24, 2017)]
[Notices]
[Pages 18941-18942]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-08164]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80481; File No. SR-CBOE-2017-010]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Designation of a Longer Period for Commission 
Action on a Proposed Rule Change Related to Unusual Market Conditions 
and the Requirement To Systemize Non-Electronic Orders Prior to 
Representation

April 18, 2017.
    On February 15, 2017, Chicago Board Options Exchange, Incorporated 
(``CBOE'' or ``Exchange'') filed with the Securities and Exchange 
Commission (``Commission''), pursuant to Section 19(b)(1) of the 
Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 
thereunder,\2\ a proposed rule change that would permit the Exchange to 
suspend the requirement that non-electronic orders be systematized 
prior to representation on the trading floor when a fast market has 
been declared by Floor Officials. The proposed rule change was 
published for comment in the Federal Register on March 6, 2017.\3\ The 
Commission has not yet received any comment letters on the proposed 
rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 80123 (Feb. 28, 
2017), 82 FR 12667.
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    Section 19(b)(2) of the Act \4\ provides that, within 45 days of 
the publication of notice of the filing of a proposed rule change, or 
within such longer period up to 90 days as the Commission may designate 
if it finds such longer period to be appropriate and publishes its 
reasons for so finding or as to which the self-regulatory organization 
consents, the Commission shall either approve the proposed rule change, 
disapprove the proposed rule change, or institute proceedings to 
determine whether the proposed rule change should be disapproved. The 
45th day after publication of the notice for this

[[Page 18942]]

proposed rule change is April 20, 2017. The Commission is hereby 
extending this 45-day time period.
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    \4\ 15 U.S.C. 78s(b)(2).
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    The Commission finds that it is appropriate to designate a longer 
period within which to take action on the proposed rule change so that 
it has sufficient time to consider the proposed rule change. 
Accordingly, the Commission, pursuant to Section 19(b)(2) of the 
Act,\5\ designates June 4, 2017, as the date by which the Commission 
should either approve or disapprove or institute proceedings to 
determine whether to disapprove the proposed rule change (File Number 
SR-CBOE-2017-010).
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    \5\ Id.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(31).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-08164 Filed 4-21-17; 8:45 am]
BILLING CODE 8011-01-P

18942 Federal Register / Vol. 82, No. 77 / Monday, April 24, 2017 / Notices

proposed rule change is April 20, 2017. or organization.5 In accordance with determination by filing with the
The Commission is hereby extending Rule 19d–1(c)(2) under the Act,6 the Exchange a written answer, at which
this 45-day time period. Exchange proposed to designate certain point the matter shall become a
The Commission finds that it is specified rule violations as minor rule disciplinary proceeding.
appropriate to designate a longer period violations, and requested that it be
Once the Exchange’s MRVP is
within which to take action on the relieved of the prompt reporting
effective, the Exchange will provide to
proposed rule change so that it has requirements regarding such violations,
provided it gives notice of such the Commission a quarterly report for
sufficient time to consider the proposed
rule change. Accordingly, the violations to the Commission on a any actions taken on minor rule
Commission, pursuant to Section quarterly basis. violations under the MRVP. The
19(b)(2) of the Act,5 designates June 4, The Exchange proposed to include in quarterly report will include: The
2017, as the date by which the its MRVP the procedures and violations Exchange’s internal file number for the
Commission should either approve or currently included in Exchange Rule case, the name of the individual and/or
disapprove or institute proceedings to 1614 (‘‘Imposition of Fines for Minor organization, the nature of the violation,
determine whether to disapprove the Rule Violations’’), which had been the specific rule provision violated, the
proposed rule change (File Number SR– incorporated by reference from the sanction imposed, the number of times
CBOE–2017–010). International Securities Exchange’s rule the rule violation occurred, and the date
book.7 According to the Exchange’s of the disposition.9
For the Commission, by the Division of
proposed MRVP, under Exchange Rule
Trading and Markets, pursuant to delegated The Commission finds that the
authority.6 1614, the Exchange may impose a fine
proposal is consistent with the public
(not to exceed $2,500) on any Member,
Eduardo A. Aleman, interest, the protection of investors, or
or person associated with or employed
Assistant Secretary.
by a Member, for any rule listed in Rule otherwise in furtherance of the purposes
[FR Doc. 2017–08164 Filed 4–21–17; 8:45 am] 1614(d).8 The Exchange shall serve the of the Act, as required by Rule 19d–
BILLING CODE 8011–01–P person against whom a fine is imposed 1(c)(2) under the Act,10 because the
with a written statement setting forth MRVP will permit the Exchange to carry
the rule or rules violated, the act or out its oversight and enforcement
SECURITIES AND EXCHANGE omission constituting each such responsibilities as an SRO more
COMMISSION violation, the fine imposed, and the date efficiently in cases where full
by which such determination becomes disciplinary proceedings are not
[Release No. 34–80477; File No. 4–707] necessary due to the minor nature of the
final or by which such determination
Self-Regulatory Organizations; ISE must be contested. If the person against particular violation.
Mercury, LLC; Order Declaring whom the fine is imposed pays the fine, In declaring the Exchange’s MRVP
Effective a Minor Rule Violation Plan such payment shall be deemed to be a effective, the Commission in no way
waiver of such person’s right to a minimizes the importance of
April 18, 2017. disciplinary proceeding and any review compliance with Exchange rules and all
On March 9, 2017, ISE Mercury, LLC of the matter under the Exchange rules.
other rules subject to the imposition of
(‘‘Exchange’’) filed with the Securities Any person against whom a fine is
sanctions under Exchange Rule 1614.
and Exchange Commission imposed may contest the Exchange’s
The Commission believes that the
(‘‘Commission’’) a proposed minor rule
violation of an SRO’s rules, as well as
violation plan (‘‘MRVP’’ or ‘‘Plan’’) 5 The Commission adopted amendments to

pursuant to Section 19(d)(1) of the paragraph (c) of Rule 19d–1 to allow SROs to Commission rules, is a serious matter.
Securities Exchange Act of 1934
submit for Commission approval plans for the However, Exchange Rule 1614 provides
abbreviated reporting of minor disciplinary
(‘‘Act’’) 1 and Rule 19d–1(c)(2) infractions. See Securities Exchange Act Release
a reasonable means of addressing
thereunder.2 The proposed MRVP was No. 21013 (June 1, 1984), 49 FR 23828 (June 8, violations that do not rise to the level of
published for public comment on March 1984). Any disciplinary action taken by an SRO requiring formal disciplinary
against any person for violation of a rule of the SRO proceedings, while providing greater
21, 2017.3 The Commission received no which has been designated as a minor rule violation
comments on the proposal. This order pursuant to such a plan filed with and declared flexibility in handling certain violations.
declares the Exchange’s proposed MRVP effective by the Commission is not considered The Commission expects that the
effective. ‘‘final’’ for purposes of Section 19(d)(1) of the Act Exchange will continue to conduct
if the sanction imposed consists of a fine not
The Exchange’s MRVP specifies the exceeding $2,500 and the sanctioned person has not
surveillance and make determinations
rule violations which will be included sought an adjudication, including a hearing, or based on its findings, on a case-by-case
in the Plan and will have sanctions not otherwise exhausted his administrative remedies. basis, regarding whether a sanction
6 17 CFR 240.19d–1(c)(2).
exceeding $2,500. Any violations which under the MRVP is appropriate, or
7 The Exchange received its grant of registration
are resolved under the MRVP would not whether a violation requires formal
on January 29, 2016, which included approving the
be subject to the provisions of Rule 19d– rules that govern the Exchange. See Securities disciplinary action.
1(c)(1) of the Act,4 which requires that Exchange Act Release No. 76998 (Jan. 29, 2016), 81
It is therefore ordered, pursuant to
a self-regulatory organization (‘‘SRO’’) FR 6066 (Feb. 4, 2016).
8 Under the proposed MRVP, violations of the Rule 19d–1(c)(2) under the Act,11 that
promptly file notice with the
following rules would be appropriate for the proposed MRVP for ISE Mercury,
Commission of any final disciplinary disposition under the MRVP: Rule 412 (Position
action taken with respect to any person LLC, File No. 4–707, be, and hereby is,
Limits); Rule 1403 (Focus Reports); Rule 1404
jstallworth on DSK7TPTVN1PROD with NOTICES

(Requests for Trade Data); Rule 723 (Price
declared effective.
5 Id. Improvement Mechanism for Crossing
6 17 Transactions); Rule 717 (Order Entry); Rule 803
CFR 200.30–3(a)(31).
1 15
(Quotation Parameters); Rule 805 (Execution of 9 The Exchange attached a sample form of the
U.S.C. 78s(d)(1). Orders in Appointed Options); Rule 419
2 17 CFR 240.19d–1(c)(2). quarterly report with its submission to the
(Mandatory Systems Testing); Rule 1100 (Exercise
3 See Securities Exchange Act Release No. 80259 Commission.
of Options Contracts); Rule 415 (Reports Related to
10 17 CFR 240.19d–1(c)(2).
(March 16, 2017), 82 FR 14556 (‘‘Notice’’). Position Limits); and Rule 804(e) (Continuous
4 17 CFR 240.19d–1(c)(1). Quotes). See Notice, supra note 3. 11 Id.

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Document Created: 2017-04-22 00:11:17
Document Modified: 2017-04-22 00:11:17

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 18941