82_FR_32874 82 FR 32739 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Updating the CBOE Fees Schedule Concerning LVCX Fees

82 FR 32739 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Updating the CBOE Fees Schedule Concerning LVCX Fees

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 135 (July 17, 2017)

Page Range32739-32741
FR Document2017-14888

Federal Register, Volume 82 Issue 135 (Monday, July 17, 2017) 
[Federal Register Volume 82, Number 135 (Monday, July 17, 2017)]
[Notices]
[Pages 32739-32741]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-14888]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81118; File No. SR-CBOE-2017-052]


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

July 11, 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 29, 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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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend its Fees Schedule relating to 
Livevol Core X (``LVCX'') fees.
    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 Exchange proposes to amend its Fees Schedule relating to 
Livevol Core X (``LVCX'') fees. By way of background, LVCX is a front-
end order entry and management tool for listed stocks and options that 
supports both simple and complex orders. Particularly, LVCX is a web-
based application integrated into the application programming interface 
of the user's proprietary system. The application provides users with 
the capability to send option orders to U.S. options exchanges and 
stock orders to U.S. stock exchanges (and other trading centers). 
Additionally, LVCX allows users to input parameters to control the 
size, timing and other variables of their trades. Use of the 
application is completely optional and LVCX users may sublicense LVCX 
to their customers.
    The Exchange proposes a new tiered fee schedule for LVCX. 
Specifically, the Exchange proposes to eliminate the current flat fees 
of $100/month (per Log-in ID) and implement a new tiered fee schedule 
for the LVCX application fees. The Exchange believes the proposed 
change will encourage greater application of the LVCX platform by 
reducing the prices as users purchase more Log-In IDs. The proposed 
LVXC tiered pricing is below.

------------------------------------------------------------------------
                                                                Fee per
                    Livevol Core X (LVCX)                      login ID
                                                               per month
------------------------------------------------------------------------
Application Fees by Number of Login IDs:
  0-0.......................................................        $100
  11-30.....................................................          75
  31-100....................................................          50
  101-200...................................................          40
  201-500...................................................          30
  501-1,000.................................................          20
  >1,000....................................................          15
------------------------------------------------------------------------

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

[[Page 32740]]

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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    In particular, the Exchange believes the tiered fee schedule is 
reasonable because broker-dealer clients will see an overall reduction 
of prices as they increase their Log-In IDs. Additionally, the proposed 
change continues to provide for the recoupment of the costs of 
developing, maintaining, supporting and enhancing the application.
    The Exchange believes the proposed rule change is equitably [sic] 
and not unfairly discriminatory because it applies to all users of LVCX 
uniformly. Additionally, the use of LVCX is completely voluntary. The 
LVCX application is available as a convenience to market participants, 
who will continue to have the option to use any order entry and 
management system available in the marketplace to send orders to the 
Exchange and other exchanges. The Exchange also believes these fees are 
reasonable and appropriate as they are competitive with similar 
applications available throughout the market.

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. Particularly, any market 
participant will be able to access LVCX and its tiered platform fees, 
which will apply uniformly to all users. Additionally, the proposed 
tiered fee schedule will offer heightened incentives for all broker-
dealer clients to promote use of LVCX. The Exchange notes that the LVCX 
application is available to all market participants on the same terms 
and conditions, and use of the application is completely voluntary. 
LVCX is merely an alternative application to other similar products 
already available in the market and market participants can develop 
their own proprietary products with the same functionality.
    The Exchange notes that when Congress charged the Commission with 
supervising the development of a ``national market system'' for 
securities, a premise of its action was that prices, products and 
services ordinarily would be determined by market forces.\6\ Consistent 
with this purpose, Congress and the Commission have repeatedly stated 
their preference for competition, rather than regulatory intervention, 
to determine prices, products and services in the securities 
markets.\7\ Many exchanges and other market participants make 
technology products, including products similar to the LVCX, available 
to the industry. Other market participants that offer these products 
can adjust pricing or add functionality to attract users to their 
products to compete with the Exchange-offered products based on all 
competitive forces in the marketplace, as the Exchange expects these 
other market participants currently do. The Exchange believes that 
other market participants that offer these products will continue to 
remain competitive in the market for order-entry, management and 
routing products, as they currently are in this market in which at 
least two exchanges (including CBOE) offer similar technology products. 
For example, CBOE currently offers PULSe, and ISE currently offers 
PrecISE. The Exchange believes that many investors will continue to 
elect to use competing products available from non-exchange technology 
providers.
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    \6\ See, e.g., H.R. Rep. No. 94-229, at 92 (1975) (Conf. Rep.) 
(stating Congress's intent that the ``national market system evolve 
through the interplay of competitive forces as unnecessary 
regulatory restrictions are removed'').
    \7\ See S. Rep. No. 94-75, 94th Cong., 1st Sess. 8 (1975) (``The 
objective [in enacting the 1975 amendments to the Exchange Act] 
would be to enhance competition and to allow economic forces, 
interacting within a fair regulatory field, to arrive at appropriate 
variations in practices and services.''); Order Approving Proposed 
Rule Change Relating to NYSE Arca Data, Securities Exchange Act 
Release No. 59039 (December 2, 2008), 73 FR 74770 (Dec. 9, 2008) at 
74781 (``The Exchange Act and its legislative history strongly 
support the Commission's reliance on competition, whenever possible, 
in meeting its regulatory responsibilities for overseeing the SROs 
and the national market system. Indeed, competition among multiple 
markets and market participants trading the same products is the 
hallmark of the national market system.'') (SR-NYSEArca-2006-21); 
Regulation NMS, 70 FR at 37499 (observing that NMS regulation ``has 
been remarkably successful in promoting market competition in [the] 
forms that are most important to investors and listed companies'').
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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 \8\ and paragraph (f) of Rule 19b-4 \9\ 
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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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 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 rule-comments@sec.gov. Please include 
File Number SR-CBOE-2017-052 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-2017-052. 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

[[Page 32741]]

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-2017-052 and should be submitted on or before 
August 7, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2017-14888 Filed 7-14-17; 8:45 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 82, No. 135 / Monday, July 17, 2017 / Notices 32739 Comments may be submitted by any of SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s the following methods: COMMISSION Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Electronic Comments Change [Release No. 34–81118; File No. SR–CBOE– • Use the Commission’s Internet 2017–052] 1. Purpose comment form (http://www.sec.gov/ The Exchange proposes to amend its rules/sro.shtml); or Self-Regulatory Organizations; Fees Schedule relating to Livevol Core Chicago Board Options Exchange, • Send an email to rule-comments@ X (‘‘LVCX’’) fees. By way of background, Incorporated; Notice of Filing and sec.gov. Please include File Number SR– LVCX is a front-end order entry and Immediate Effectiveness of a Proposed management tool for listed stocks and PEARL–2017–31 on the subject line. Rule Change Updating the CBOE Fees options that supports both simple and Paper Comments Schedule Concerning LVCX Fees complex orders. Particularly, LVCX is a • Send paper comments in triplicate July 11, 2017. web-based application integrated into to Secretary, Securities and Exchange the application programming interface Commission, 100 F Street NE., Pursuant to Section 19(b)(1) of the of the user’s proprietary system. The Washington, DC 20549–1090. Securities Exchange Act of 1934 (the application provides users with the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 capability to send option orders to U.S. All submissions should refer to File notice is hereby given that on June 29, options exchanges and stock orders to Number SR–PEARL–2017–31. This file 2017, Chicago Board Options Exchange, U.S. stock exchanges (and other trading number should be included on the Incorporated (the ‘‘Exchange’’ or centers). Additionally, LVCX allows subject line if email is used. To help the ‘‘CBOE’’) filed with the Securities and users to input parameters to control the Commission process and review your Exchange Commission (the size, timing and other variables of their comments more efficiently, please use trades. Use of the application is ‘‘Commission’’) the proposed rule only one method. The Commission will completely optional and LVCX users change as described in Items I, II, and post all comments on the Commission’s may sublicense LVCX to their III below, which Items have been Internet Web site (http://www.sec.gov/ customers. prepared by the Exchange. The The Exchange proposes a new tiered rules/sro.shtml). Copies of the Commission is publishing this notice to submission, all subsequent fee schedule for LVCX. Specifically, the solicit comments on the proposed rule Exchange proposes to eliminate the amendments, all written statements change from interested persons. current flat fees of $100/month (per Log- with respect to the proposed rule I. Self-Regulatory Organization’s in ID) and implement a new tiered fee change that are filed with the schedule for the LVCX application fees. Commission, and all written Statement of the Terms of Substance of the Proposed Rule Change The Exchange believes the proposed communications relating to the change will encourage greater proposed rule change between the application of the LVCX platform by The Exchange proposes to amend its Commission and any person, other than reducing the prices as users purchase Fees Schedule relating to Livevol Core those that may be withheld from the more Log-In IDs. The proposed LVXC X (‘‘LVCX’’) fees. public in accordance with the tiered pricing is below. provisions of 5 U.S.C. 552, will be The text of the proposed rule change available for Web site viewing and is available on the Exchange’s Web site Fee per printing in the Commission’s Public (http://www.cboe.com/AboutCBOE/ Livevol Core X (LVCX) login ID CBOELegalRegulatoryHome.aspx), at per month Reference Room, 100 F Street NE., Washington, DC 20549, on official the Exchange’s Office of the Secretary, Application Fees by Number of business days between the hours of and at the Commission’s Public Login IDs: 10:00 a.m. and 3:00 p.m. Copies of the Reference Room. 0–0 .......................................... $100 filing also will be available for 11–30 ...................................... 75 II. Self-Regulatory Organization’s 31–100 .................................... 50 inspection and copying at the principal Statement of the Purpose of, and 101–200 .................................. 40 office of the Exchange. All comments Statutory Basis for, the Proposed Rule 201–500 .................................. 30 received will be posted without change; Change 501–1,000 ............................... 20 the Commission does not edit personal >1,000 ..................................... 15 identifying information from In its filing with the Commission, the submissions. You should submit only Exchange included statements 2. Statutory Basis information that you wish to make concerning the purpose of and basis for The Exchange believes the proposed available publicly. All submissions the proposed rule change and discussed rule change is consistent with the should refer to File Number SR– any comments it received on the Securities Exchange Act of 1934 (the PEARL–2017–31, and should be proposed rule change. The text of these ‘‘Act’’) and the rules and regulations submitted on or before August 7, 2017. statements may be examined at the thereunder applicable to the Exchange For the Commission, by the Division of places specified in Item IV below. The and, in particular, the requirements of asabaliauskas on DSKBBXCHB2PROD with NOTICES Trading and Markets, pursuant to delegated Exchange has prepared summaries, set Section 6(b) of the Act.3 Specifically, authority.12 forth in sections A, B, and C below, of the Exchange believes the proposed rule Jill M. Peterson, the most significant aspects of such change is consistent with the Section statements. 6(b)(5) 4 requirements that the rules of Assistant Secretary. an exchange be designed to prevent [FR Doc. 2017–14889 Filed 7–14–17; 8:45 am] fraudulent and manipulative acts and BILLING CODE 8011–01–P 1 15 U.S.C. 78s(b)(1). 3 15 U.S.C. 78f(b). 12 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. 4 15 U.S.C. 78f(b)(5). VerDate Sep<11>2014 17:45 Jul 14, 2017 Jkt 241001 PO 00000 Frm 00064 Fmt 4703 Sfmt 4703 E:\FR\FM\17JYN1.SGM 17JYN1

32740 Federal Register / Vol. 82, No. 135 / Monday, July 17, 2017 / Notices practices, to promote just and equitable and market participants can develop C. Self-Regulatory Organization’s principles of trade, to foster cooperation their own proprietary products with the Statement on Comments on the and coordination with persons engaged same functionality. Proposed Rule Change Received From in regulating, clearing, settling, The Exchange notes that when Members, Participants, or Others processing information with respect to, The Exchange neither solicited nor Congress charged the Commission with and facilitating transactions in received comments on the proposed supervising the development of a securities, to remove impediments to rule change. and perfect the mechanism of a free and ‘‘national market system’’ for securities, open market and a national market a premise of its action was that prices, III. Date of Effectiveness of the system, and, in general, to protect products and services ordinarily would Proposed Rule Change and Timing for investors and the public interest. be determined by market forces.6 Commission Action Additionally, the Exchange believes the Consistent with this purpose, Congress The foregoing rule change has become proposed rule change is consistent with and the Commission have repeatedly effective pursuant to Section 19(b)(3)(A) Section 6(b)(4) of the Act,5 which stated their preference for competition, of the Act 8 and paragraph (f) of Rule requires that Exchange rules provide for rather than regulatory intervention, to 19b–4 9 thereunder. At any time within the equitable allocation of reasonable determine prices, products and services 60 days of the filing of the proposed rule dues, fees, and other charges among its in the securities markets.7 Many change, the Commission summarily may Trading Permit Holders and other exchanges and other market participants temporarily suspend such rule change if persons using its facilities. make technology products, including it appears to the Commission that such In particular, the Exchange believes products similar to the LVCX, available action is necessary or appropriate in the the tiered fee schedule is reasonable to the industry. Other market public interest, for the protection of because broker-dealer clients will see an participants that offer these products investors, or otherwise in furtherance of overall reduction of prices as they can adjust pricing or add functionality the purposes of the Act. If the increase their Log-In IDs. Additionally, Commission takes such action, the to attract users to their products to the proposed change continues to Commission will institute proceedings compete with the Exchange-offered provide for the recoupment of the costs to determine whether the proposed rule of developing, maintaining, supporting products based on all competitive forces in the marketplace, as the Exchange change should be approved or and enhancing the application. disapproved. The Exchange believes the proposed expects these other market participants rule change is equitably [sic] and not currently do. The Exchange believes IV. Solicitation of Comments unfairly discriminatory because it that other market participants that offer Interested persons are invited to applies to all users of LVCX uniformly. these products will continue to remain submit written data, views, and Additionally, the use of LVCX is competitive in the market for order- arguments concerning the foregoing, completely voluntary. The LVCX entry, management and routing including whether the proposed rule application is available as a products, as they currently are in this change is consistent with the Act. convenience to market participants, market in which at least two exchanges Comments may be submitted by any of who will continue to have the option to (including CBOE) offer similar the following methods: use any order entry and management technology products. For example, system available in the marketplace to Electronic Comments CBOE currently offers PULSe, and ISE send orders to the Exchange and other currently offers PrecISE. The Exchange • Use the Commission’s Internet exchanges. The Exchange also believes believes that many investors will comment form (http://www.sec.gov/ these fees are reasonable and continue to elect to use competing rules/sro.shtml); or appropriate as they are competitive with • Send an email to rule-comments@ products available from non-exchange similar applications available sec.gov. Please include File Number SR– technology providers. throughout the market. CBOE–2017–052 on the subject line. B. Self-Regulatory Organization’s 6 See, e.g., H.R. Rep. No. 94–229, at 92 (1975) Paper Comments Statement on Burden on Competition (Conf. Rep.) (stating Congress’s intent that the • Send paper comments in triplicate ‘‘national market system evolve through the The Exchange does not believe that interplay of competitive forces as unnecessary to Secretary, Securities and Exchange the proposed rule changes will impose regulatory restrictions are removed’’). Commission, 100 F Street NE., any burden on competition that are not 7 See S. Rep. No. 94–75, 94th Cong., 1st Sess. 8 Washington, DC 20549–1090. necessary or appropriate in furtherance (1975) (‘‘The objective [in enacting the 1975 All submissions should refer to File amendments to the Exchange Act] would be to of the purposes of the Act. Particularly, enhance competition and to allow economic forces, Number SR–CBOE–2017–052. This file any market participant will be able to interacting within a fair regulatory field, to arrive number should be included on the access LVCX and its tiered platform at appropriate variations in practices and subject line if email is used. To help the fees, which will apply uniformly to all services.’’); Order Approving Proposed Rule Change Commission process and review your users. Additionally, the proposed tiered Relating to NYSE Arca Data, Securities Exchange Act Release No. 59039 (December 2, 2008), 73 FR comments more efficiently, please use fee schedule will offer heightened 74770 (Dec. 9, 2008) at 74781 (‘‘The Exchange Act only one method. The Commission will incentives for all broker-dealer clients to and its legislative history strongly support the post all comments on the Commission’s promote use of LVCX. The Exchange Commission’s reliance on competition, whenever Internet Web site (http://www.sec.gov/ asabaliauskas on DSKBBXCHB2PROD with NOTICES notes that the LVCX application is possible, in meeting its regulatory responsibilities rules/sro.shtml). Copies of the for overseeing the SROs and the national market available to all market participants on system. Indeed, competition among multiple submission, all subsequent the same terms and conditions, and use markets and market participants trading the same amendments, all written statements of the application is completely products is the hallmark of the national market with respect to the proposed rule voluntary. LVCX is merely an system.’’) (SR–NYSEArca–2006–21); Regulation change that are filed with the alternative application to other similar NMS, 70 FR at 37499 (observing that NMS regulation ‘‘has been remarkably successful in Commission, and all written products already available in the market promoting market competition in [the] forms that 8 15 U.S.C. 78s(b)(3)(A). are most important to investors and listed 5 15 U.S.C. 78f(b)(4). companies’’). 9 17 CFR 240.19b–4(f). VerDate Sep<11>2014 17:45 Jul 14, 2017 Jkt 241001 PO 00000 Frm 00065 Fmt 4703 Sfmt 4703 E:\FR\FM\17JYN1.SGM 17JYN1

Federal Register / Vol. 82, No. 135 / Monday, July 17, 2017 / Notices 32741 communications relating to the I. Self-Regulatory Organization’s and (4) automatic executions will proposed rule change between the Statement of the Terms of Substance of decrement the disseminated size by the Commission and any person, other than the Proposed Rule Change amount of the automatic execution. those that may be withheld from the The Exchange proposes to amend The Exchange notes that it is public in accordance with the Phlx Rule 1082, regarding quote removing Phlx Rule 1082(a)(ii)(C)(4) provisions of 5 U.S.C. 552, will be because this functionality is not mitigation. available for Web site viewing and The text of the proposed rule change necessary today. By way of background, printing in the Commission’s Public is available on the Exchange’s Web site the Exchange initially adopted the quote at http://nasdaqphlx.cchwallstreet mitigation rule text in Phlx Rule Reference Room, 100 F Street NE., .com/, at the principal office of the 1082(a)(ii)(C)(4) to enhance the ability of Washington, DC 20549 on official Exchange, and at the Commission’s Exchange Streaming Quote Traders business days between the hours of (‘‘SQTs’’),5 Remote Streaming Quote 10:00 a.m. and 3:00 p.m. Copies of the Public Reference Room. Traders (‘‘RSQTs’’),6 non-SQT ROTs,7 filing also will be available for II. Self-Regulatory Organization’s and specialists 8 (collectively, ‘‘Phlx XL inspection and copying at the principal Statement of the Purpose of, and participants’’) to better manage risk by office of the Exchange. All comments Statutory Basis for, the Proposed Rule modifying the legacy Phlx XL system 9 received will be posted without change; Change such that when a trade occured [sic], the the Commission does not edit personal In its filing with the Commission, the Exchange caused the Phlx XL system to identifying information from Exchange included statements decrement the quote size by the number submissions. You should submit only concerning the purpose of and basis for of contracts traded in the affected option information that you wish to make the proposed rule change and discussed series on the side of the market that has available publicly. All submissions any comments it received on the traded (i.e., bid size for sell transactions should refer to File Number SR–CBOE– proposed rule change. The text of these and offer size for buy transactions). At 2017–052 and should be submitted on statements may be examined at the that time, the Exchange did not or before August 7, 2017. places specified in Item IV below. The decrement quotation size in real time,10 Exchange has prepared summaries, set rather it updated quotes and executions For the Commission, by the Division of separately in two applications. The Trading and Markets, pursuant to delegated forth in sections A, B, and C below, of the most significant aspects of such Exchange would update the quote sent authority.10 to OPRA with each decrement. However Jill M. Peterson, statements. with a size increase the Exchange would Assistant Secretary. A. Self-Regulatory Organization’s only update the quote sent to OPRA if [FR Doc. 2017–14888 Filed 7–14–17; 8:45 am] Statement of the Purpose of, and it was beyond the 10% threshold. At BILLING CODE 8011–01–P Statutory Basis for, the Proposed Rule this time, a Phlx XL participant, who Change controlled his or her quotation size, could refresh the size (and price) for 1. Purpose SECURITIES AND EXCHANGE which he or she was firm at the COMMISSION The Exchange proposes to amend disseminated price. Phlx adopted the Phlx Rule 1082, entitled ‘‘Firm rule because participants experienced Quotations,’’ to specifically remove Phlx situations where they executed more [Release No. 34–81116; File No. SR–Phlx– Rule 1082(a)(ii)(C)(4), which process is contracts at a particular price than they 2017–48] not currently in effect on Phlx. intended due to the fact that Phlx XL Today, Phlx Rule 1082(a)(ii)(C) sets Self-Regulatory Organizations; forth the conditions under which Phlx 5 An SQT is an ROT who has received permission NASDAQ PHLX LLC; Notice of Filing disseminates updated quotations based from the Exchange to generate and submit option and Immediate Effectiveness of on changes in the Exchange’s quotations electronically in options to which such Proposed Rule Change Regarding SQT is assigned. An SQT may only submit such disseminated price and/or size. Phlx quotations while such SQT is physically present on Quote Mitigation disseminates an updated bid and offer the floor of the Exchange. An SQT may only trade price, together with the size associated in a market making capacity in classes of options July 11, 2017. in which the SQT is assigned. See Rule with such bid and offer, when: (1) 1014(b)(ii)(A). Pursuant to Section 19(b)(1) of the Phlx’s disseminated bid or offer price 6 An RSQT is an ROT that is a member affiliated Securities Exchange Act of 1934 increases or decreases; (2) the size with and RSQTO with no physical trading floor (‘‘Act’’),1 and Rule 19b–4 thereunder,2 associated with Phlx’s disseminated bid presence who has received permission from the notice is hereby given that on June 30, Exchange to generate and submit option quotations or offer decreases; or (3) the size electronically in options to which such RSQT has 2017, NASDAQ PHLX LLC (‘‘Phlx’’ or associated with Phlx’s bid (offer) been assigned. A qualified RSQT may function as ‘‘Exchange’’) filed with the Securities increases by an amount greater than or a Remote Specialist upon Exchange approval. See and Exchange Commission (‘‘SEC’’ or equal to a percentage (never to exceed Rule 1014(b)(ii)(B). 7 A non-SQT ROT is an ROT who is neither an ‘‘Commission’’) the proposed rule 20%) 3 of the size associated with the SQT nor an RSQT. See Rule 1014(b)(ii)(C). change as described in Items I, II, and previously disseminated bid (offer); 4 8 A Specialist is an Exchange member who is III, below, which Items have been registered as an options specialist pursuant to Rule 3 Phlx has set its percentage to 10%. See http:// 501(a). An options Specialist includes a Remote prepared by the Exchange. The asabaliauskas on DSKBBXCHB2PROD with NOTICES www.nasdaqtrader.com/content/phlxmemos/2007/ Specialist which is defined as an options specialist Commission is publishing this notice to jan/0197-07.pdf. in one or more classes that does not have a physical solicit comments on the proposed rule 4 Such percentage, which would never exceed presence on an Exchange floor and is approved by change from interested persons. 20%, would be determined on an issue-by-issue the Exchange pursuant to Rule 501. basis by the Exchange and announced to 9 See Securities Exchange Act Release No. 58582 membership via Exchange circular. The percentage (September 18, 2008), 73 FR 55190 (September 24, size increase necessary to give rise to a refreshed 2008) (SR–Phlx–2008–66) (Notice of Filing and 10 17 quote may vary from issue to issue, depending, Immediate Effectiveness of Proposed Rule Change CFR 200.30–3(a)(12). Relating to Quotation Size Decrementation). without limitation, on the liquidity, average 1 15 U.S.C. 78s(b)(1). volume, and average number of quotations 10 The Exchange was disseminating a size which 2 17 CFR 240.19b–4. submitted in the issue. was not necessarily on the Exchange’s book. VerDate Sep<11>2014 17:45 Jul 14, 2017 Jkt 241001 PO 00000 Frm 00066 Fmt 4703 Sfmt 4703 E:\FR\FM\17JYN1.SGM 17JYN1


Document Created: 2017-07-15 03:45:42
Document Modified: 2017-07-15 03:45:42
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation82 FR 32739 
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