82 FR 28150 - 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 117 (June 20, 2017)

Page Range		28150-28152
FR Document		2017-12766
Federal Register, Volume 82 Issue 117 (Tuesday, June 20, 2017)
[Federal Register Volume 82, Number 117 (Tuesday, June 20, 2017)]
[Notices]
[Pages 28150-28152]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-12766]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80925; File No. SR-CBOE-2017-047]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend the Fees Schedule

June 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 June 1, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.

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[[Page 28151]]

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend its Fees Schedule. 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
    The Exchange proposes to amend its Fees Schedule. Specifically, the 
Exchange proposes to make an amendment to its rebate program for Floor 
Broker Trading Permits. By way of background, Footnote 25, which 
governs rebates on Floor Broker Trading Permits, currently provides 
that any Floor Broker that executes a certain average of customer open-
outcry contracts per day over the course of a calendar month in all 
underlying symbols excluding Underlying Symbol List A (except RLG, RLV, 
RUI, AWDE, FTEM, FXTM and UKXM), DJX, XSP, XSPAM and subcabinet trades 
(``Qualifying Symbols''), will receive a rebate on that TPH's Floor 
Broker Trading Permit fees. Particularly, any Floor Broker Trading 
Permit Holder (``TPH'') that executes an average of 15,000 customer 
(origin code ``C'') open-outcry contracts per day over the course of a 
calendar month in Qualifying Symbols will receive a rebate of $9,000 on 
that TPH's Floor Broker Trading Permit fees. Additionally, any Floor 
Broker TPH that executes an average of 25,000 customer open-outcry 
contracts per day over the course of a calendar month in Qualifying 
Symbols will receive a rebate of $14,000 on that TPH's Floor Broker 
Trading Permit fees. The Exchange proposes to provide that Professional 
Customers and Voluntary Professionals (``Professional Customers'') 
(origin code ``W'') orders would also count towards the qualifying 
volume thresholds. The Exchange believes the inclusion of Professional 
Customer orders in the qualifying thresholds will encourage Floor 
Brokers to execute more Professional Customer orders.
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.\3\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \4\ 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 
Section 6(b)(4) of the Act,\5\ which requires that Exchange rules 
provide for the equitable allocation of reasonable dues, fees, and 
other charges among its Trading Permit Holders and other persons using 
its facilities.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(5).
    \5\ 15 U.S.C. 78f(b)(4).
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    The Exchange believes that permitting Professional Customer orders 
to count towards the qualifying volume thresholds for the Floor Broker 
Trading Permit rebates is reasonable because it will allow Floor 
Brokers to more easily reach the qualifying volume thresholds (and 
thereafter pay lower Floor Broker Trading Permit fees). The Exchange 
believes the proposed change is equitable and not unfairly 
discriminatory because it applies to qualifying Floor Brokers equally 
and because Floor Brokers serve an important function in facilitating 
the execution of orders via open outcry, which as a price-improvement 
mechanism, the Exchange wishes to encourage and support. The Exchange 
also notes that, while only Customer and Professional Customer orders 
would count towards the qualifying thresholds, an increase in Customer 
and Professional Customer order flow would bring greater volume and 
liquidity, which benefits all market participants by providing more 
trading opportunities and tighter spreads. Moreover, like Customers, 
Professional Customers are non-TPH, non-broker dealers and have 
historically also been treated similar as customers for certain 
programs. Indeed, the Exchange notes that incentive programs based on 
Customer and Professional volume already exist elsewhere within the 
industry.\6\
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    \6\ See e.g., NYSE Arca Options Fees and Charges, Customer and 
Professional Customer Incentive Program and Customer and 
Professional Customer Posting Credit Tiers in Penny and Non Penny 
Pilot Issues.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule changes will 
impose any burden on competition that are not necessary or appropriate 
in furtherance of the purposes of the Act. The Exchange does not 
believe that the proposed rule change will impose any burden on 
intramarket competition that is not necessary or appropriate in 
furtherance of the purposes of the Act because while the proposed 
change benefits Floor Broker TPHs that reach the qualifying volume 
thresholds, Floor Brokers serve an important function in facilitating 
the execution of orders via open outcry, which as a price-improvement 
mechanism, the Exchange wishes to encourage and support. Further, the 
proposed change is designed to encourage the execution of more 
Professional Customer orders, which volume creates greater trading 
opportunities that benefit all market participants. The Exchange does 
not believe that the proposed rule change will impose any burden on 
intermarket competition that is not necessary or appropriate in 
furtherance of the purposes of the Act because the proposed change only 
affects trading on CBOE. To the extent that the proposed change makes 
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.

[[Page 28152]]

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.
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f).
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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-2017-047 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-2017-047. 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-2017-047 and should be 
submitted on or before July 11, 2017.
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    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-12766 Filed 6-19-17; 8:45 am]
BILLING CODE 8011-01-P
28150 Federal Register / Vol. 82, No. 117 / Tuesday, June 20, 2017 / Notices

and volume discovery processes. In enhances competition as it is intended with respect to the proposed rule
particular, the proposed changes to to increase the competitiveness of the change that are filed with the
footnote 8 are intended to further Exchange. Commission, and all written
incentivize Members to send increased communications relating to the
C. Self-Regulatory Organization’s
order flow to the Exchange in an effort proposed rule change between the
Statement on Comments on the
to qualify for the enhanced rebates made Commission and any person, other than
available by the tiers, which in turn, Proposed Rule Change Received From
those that may be withheld from the
contributes to the growth of the Members, Participants, or Others
public in accordance with the
Exchange. The Exchange also believes The Exchange has not solicited, and provisions of 5 U.S.C. 552, will be
the rebate associate with each tier is does not intend to solicit, comments on available for Web site viewing and
reasonable as they continue to reflect this proposed rule change. The printing in the Commission’s Public
the difficultly in achieving the Exchange has not received any written Reference Room, 100 F Street NE.,
corresponding tier. These incentives comments from members or other Washington, DC 20549, on official
remain reasonably related to the value interested parties. business days between the hours of
to the Exchange’s market quality 10:00 a.m. and 3:00 p.m. Copies of the
III. Date of Effectiveness of the
associated with higher levels of market filing also will be available for
Proposed Rule Change and Timing for
activity, including liquidity provision inspection and copying at the principal
Commission Action
and the introduction of higher volumes office of the Exchange. All comments
of orders into the price and volume The foregoing rule change has become received will be posted without change;
discovery processes. The proposed effective pursuant to Section 19(b)(3)(A) the Commission does not edit personal
changes to the tiered pricing structure of the Act 26 and paragraph (f) of Rule identifying information from
are not unfairly discriminatory because 19b–4 thereunder.27 At any time within submissions. You should submit only
they will apply equally to all Members. 60 days of the filing of the proposed rule information that you wish to make
Lastly, the Exchange believes that change, the Commission summarily may available publicly. All submissions
eliminating Tier 2 under footnote 2, temporarily suspend such rule change if should refer to File Number SR–
Tiers 1 and 3 under footnote 10, and the it appears to the Commission that such BatsBZX–2017–41 and should be
Cross Asset Tier under footnote 14 is action is necessary or appropriate in the submitted on or before July 11, 2017.
reasonable, fair, and equitable because public interest, for the protection of
these tiers were not providing the investors, or otherwise in furtherance of For the Commission, by the Division of
Trading and Markets, pursuant to delegated
desired results of incentivizing the purposes of the Act. authority.28
Members to increase their participation
on the Exchange. As such, the Exchange IV. Solicitation of Comments Eduardo A. Aleman,
also believes that the proposed Interested persons are invited to Assistant Secretary.
elimination of these tiers would be non- submit written data, views, and [FR Doc. 2017–12760 Filed 6–19–17; 8:45 am]
discriminatory in that they currently arguments concerning the foregoing, BILLING CODE 8011–01–P
apply equally to all Members and, upon including whether the proposed rule
elimination, would no longer be change is consistent with the Act.
available to any Members. Further, their Comments may be submitted by any of SECURITIES AND EXCHANGE
elimination could allow the Exchange to the following methods: COMMISSION
explore other pricing mechanisms such [Release No. 34–80925; File No. SR–CBOE–
Electronic Comments
as those described herein, in which it 2017–047]
may enhance market quality for all • Use the Commission’s Internet
Members. comment form (http://www.sec.gov/ Self-Regulatory Organizations;
rules/sro.shtml); or Chicago Board Options Exchange,
B. Self-Regulatory Organization’s • Send an email to rule-
Statement on Burden on Competition Incorporated; Notice of Filing and
comments@sec.gov. Please include File Immediate Effectiveness of a Proposed
The Exchange believes the proposed Number SR–BatsBZX–2017–41 on the Rule Change To Amend the Fees
amendment to its fee schedule would subject line. Schedule
not impose any burden on competition
that is not necessary or appropriate in Paper Comments June 14, 2017.
furtherance of the purposes of the Act. • Send paper comments in triplicate Pursuant to Section 19(b)(1) of the
The Exchange does not believe that the to Brent J. Fields, Secretary, Securities Securities Exchange Act of 1934 (the
proposed changes represent a significant and Exchange Commission, 100 F Street ‘‘Act’’),1 and Rule 19b–4 thereunder,2
departure from previous pricing offered NE., Washington, DC 20549–1090. notice is hereby given that on June 1,
by the Exchange or pricing offered by All submissions should refer to File 2017, Chicago Board Options Exchange,
the Exchange’s competitors. Number SR–BatsBZX–2017–41. This file Incorporated (the ‘‘Exchange’’ or
Additionally, Members may opt to number should be included on the ‘‘CBOE’’) filed with the Securities and
disfavor the Exchange’s pricing if they subject line if email is used. To help the Exchange Commission (the
believe that alternatives offer them Commission process and review your ‘‘Commission’’) the proposed rule
better value. Accordingly, the Exchange comments more efficiently, please use change as described in Items I, II, and
does not believe that the proposed only one method. The Commission will III below, which Items have been
changes will impair the ability of
sradovich on DSK3GMQ082PROD with NOTICES

post all comments on the Commission’s prepared by the Exchange. The
Members or competing venues to Internet Web site (http://www.sec.gov/ Commission is publishing this notice to
maintain their competitive standing in rules/sro.shtml). Copies of the solicit comments on the proposed rule
the financial markets. The Exchange submission, all subsequent change from interested persons.
does not believe that the proposed amendments, all written statements
changes to the Exchange’s standard fees, 28 17 CFR 200.30–3(a)(12).
rebates and tiered pricing structure 26 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1).
burdens competition, but instead, 27 17 CFR 240.19b–4(f). 2 17 CFR 240.19b–4.

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28152 Federal Register / Vol. 82, No. 117 / Tuesday, June 20, 2017 / Notices

III. Date of Effectiveness of the Reference Room, 100 F Street NE., comment letters on the proposed rule
Proposed Rule Change and Timing for Washington, DC 20549 on official change.4
Commission Action business days between the hours of Section 19(b)(2) of the Act 5 provides
The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the that, within 45 days of the publication
effective pursuant to Section 19(b)(3)(A) filing also will be available for of notice of the filing of a proposed rule
of the Act 7 and paragraph (f) of Rule inspection and copying at the principal change, or within such longer period up
19b–4 8 thereunder. At any time within office of the Exchange. All comments to 90 days as the Commission may
60 days of the filing of the proposed rule received will be posted without change; designate if it finds such longer period
change, the Commission summarily may the Commission does not edit personal to be appropriate and publishes its
temporarily suspend such rule change if identifying information from
reasons for so finding or as to which the
it appears to the Commission that such submissions. You should submit only
self-regulatory organization consents,
action is necessary or appropriate in the information that you wish to make
the Commission shall either approve the
public interest, for the protection of available publicly. All submissions
investors, or otherwise in furtherance of proposed rule change, disapprove the
should refer to File Number SR–CBOE–
the purposes of the Act. If the 2017–047 and should be submitted on proposed rule change, or institute
Commission takes such action, the or before July 11, 2017. proceedings to determine whether the
Commission will institute proceedings proposed rule change should be
For the Commission, by the Division of disapproved. The 45th day after
to determine whether the proposed rule Trading and Markets, pursuant to delegated
change should be approved or publication of the notice for this
authority.9
disapproved. proposed rule change is June 18, 2017.
Eduardo A. Aleman, The Commission is extending this 45-
IV. Solicitation of Comments Assistant Secretary. day time period.
Interested persons are invited to [FR Doc. 2017–12766 Filed 6–19–17; 8:45 am]
The Commission finds that it is
submit written data, views, and BILLING CODE 8011–01–P appropriate to designate a longer period
arguments concerning the foregoing,
including whether the proposed rule within which to take action on the
change is consistent with the Act. proposed rule change so that it has
SECURITIES AND EXCHANGE sufficient time to consider the proposed
Comments may be submitted by any of COMMISSION
the following methods: rule change and the comment letters.
Accordingly, the Commission, pursuant
Electronic Comments [Release No. 34–80935; File No. SR– to Section 19(b)(2) of the Act,6
• Use the Commission’s Internet NYSEArca–2017–36] designates August 2, 2017, as the date
comment form (http://www.sec.gov/ by which the Commission shall either
rules/sro.shtml); or Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Designation of a approve or disapprove, or institute
• Send an email to rule-comments@ proceedings to determine whether to
sec.gov. Please include File Number SR– Longer Period for Commission Action
on a Proposed Rule Change To Adopt disapprove, the proposed rule change
CBOE–2017–047 on the subject line. (File Number SR–NYSEArca–2017–36).
a New NYSE Arca Equities Rule 8.900
Paper Comments and To List and Trade Shares of the For the Commission, by the Division of
• Send paper comments in triplicate Royce Pennsylvania ETF, Royce Trading and Markets, pursuant to delegated
to Secretary, Securities and Exchange Premier ETF, and Royce Total Return authority.7
Commission, 100 F Street NE., ETF Under Proposed NYSE Arca Eduardo A. Aleman,
Washington, DC 20549–1090. Equities Rule 8.900 Assistant Secretary.
All submissions should refer to File [FR Doc. 2017–12885 Filed 6–19–17; 8:45 am]
June 15, 2017.
Number SR–CBOE–2017–047. This file
BILLING CODE 8011–01–P
number should be included on the On April 14, 2017, NYSE Arca, Inc.
subject line if email is used. To help the (‘‘Exchange’’ or ‘‘NYSE Arca’’) filed
Commission process and review your with the Securities and Exchange
comments more efficiently, please use Commission (‘‘Commission’’), pursuant
only one method. The Commission will to Section 19(b)(1) of the Securities
post all comments on the Commission’s Exchange Act of 1934 (‘‘Act’’) 1 and Rule
Internet Web site (http://www.sec.gov/ 19b–4 thereunder,2 a proposed rule
rules/sro.shtml). Copies of the change to adopt new NYSE Arca
submission, all subsequent Equities Rule 8.900 to permit it to list
amendments, all written statements and trade Managed Portfolio Shares.
with respect to the proposed rule The Exchange also proposed to list and
change that are filed with the trade shares of Royce Pennsylvania ETF,
Commission, and all written Royce Premier ETF, and Royce Total
communications relating to the Return ETF under proposed NYSE Arca
4 See letters from: (1) Gary Gastineau, President,

proposed rule change between the ETF Consultants.com, Inc., dated May 24, 2017; (2)
Equities Rule 8.900. The proposed rule Todd J. Broms, Chief Executive Officer, Broms &
Commission and any person, other than change was published for comment in Company LLC, dated May 25, 2017; and (3) James
sradovich on DSK3GMQ082PROD with NOTICES

those that may be withheld from the the Federal Register on May 4, 2017.3 Angel, Associate Professor of Finance, Georgetown
public in accordance with the The Commission has received three University, McDonough School of Business, dated
provisions of 5 U.S.C. 552, will be May 25, 2017. The comment letters are available at
available for Web site viewing and 9 17 CFR 200.30–3(a)(12). https://www.sec.gov/comments/sr-nysearca-2017-
printing in the Commission’s Public 1 15 U.S.C. 78s(b)(1). 36/nysearca201736.htm.
5 15 U.S.C. 78s(b)(2).
2 17 CFR 240.19b–4.
7 15 6 Id.
U.S.C. 78s(b)(3)(A). 3 See Securities Exchange Act Release No. 80553
8 17 CFR 240.19b–4(f). (April 28, 2017), 82 FR 20932. 7 17 CFR 200.30–3(a)(31).

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Document Created: 2017-06-20 02:21:31
Document Modified: 2017-06-20 02:21:31
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 28150