82_FR_39781 82 FR 39621 - Self-Regulatory Organizations; CBOE Futures Exchange, LLC; Notice of Filing of a Proposed Rule Change Regarding Recordkeeping Requirements

82 FR 39621 - Self-Regulatory Organizations; CBOE Futures Exchange, LLC; Notice of Filing of a Proposed Rule Change Regarding Recordkeeping Requirements

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 160 (August 21, 2017)

Page Range39621-39622
FR Document2017-17549

Federal Register, Volume 82 Issue 160 (Monday, August 21, 2017) 
[Federal Register Volume 82, Number 160 (Monday, August 21, 2017)]
[Notices]
[Pages 39621-39622]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-17549]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81402; File No. SR-CFE-2017-002]


Self-Regulatory Organizations; CBOE Futures Exchange, LLC; Notice 
of Filing of a Proposed Rule Change Regarding Recordkeeping 
Requirements

August 15, 2017.
    Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on August 7, 2017 CBOE 
Futures Exchange, LLC (``CFE'' or ``Exchange'') filed with the 
Securities and Exchange Commission (``SEC'' or ``Commission'') the 
proposed rule change described in Items I, II, and III below, which 
Items have been prepared by CFE. The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons. CFE also has filed this proposed rule change with the 
Commodity Futures Trading Commission (``CFTC''). CFE filed a written 
certification with the CFTC under Section 5c(c) of the Commodity 
Exchange Act (``CEA'') \2\ on August 7, 2017.
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    \1\ 15 U.S.C. 78s(b)(7).
    \2\ 7 U.S.C. 7a-2(c).
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I. Self-Regulatory Organization's Description of the Proposed Rule 
Change

    The Exchange proposes to amend CFE Rules 502 and 535 related to 
recordkeeping requirements. The scope of this filing is limited solely 
to the application of the proposed rule amendments to security futures 
that may be traded on CFE. Although no security futures are currently 
listed for trading on CFE, CFE may list security futures for trading in 
the future. The text of the proposed rule change is attached as Exhibit 
4 to the filing but is not attached to the publication of this notice.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, CFE 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. CFE 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
    CFE Rule 502 sets forth CFE's requirements relating to record 
retention periods and the inspection and delivery of books and records. 
CFE Rule 535 provides that any CFE Trading Privilege Holder subject to 
CFTC Regulation 1.31 \3\ that violates CFTC Regulation 1.31 shall be 
deemed to have violated Rule 535. Rule 535 also includes the text of 
CFTC Regulation 1.31 within Rule 535.
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    \3\ 17 CFR 1.31.
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    The CFTC recently issued a final rulemaking regarding recordkeeping 
requirements which amends CFTC Regulation 1.31.\4\ The amendments to 
CFTC Regulation 1.31 become effective on August 28, 2017. CFE is 
proposing to amend Rules 502 and 535 to conform them to amended CFTC 
Regulation 1.31. Rule 502 continues to provide for a five year record 
retention period consistent with CFTC Regulation 1.31. In conformity 
with amended CFTC Regulation 1.31, CFE is proposing to amend Rule 502 
to provide that required books and records exclusively created and 
maintained on paper shall be readily accessible during the first two 
years of that five year period and that electronic books and records 
shall be readily accessible for the entire five year period. CFE is 
proposing to amend Rule 535 to replace the previous text of CFTC 
Regulation 1.31 with the new text of CFTC Regulation 1.31. CFE is 
proposing to amend Rule 535 to modernize and make technology neutral 
the form and manner in which regulatory records must be kept, as well 
as rationalize the current rule text for ease of understanding, 
consistent with the changes made to CFTC Regulation 1.31. Specifically, 
the proposed changes to Rule 535 eliminate the requirement for a 
records entity to: (1) Keep electronic regulatory records in their 
native file format; (2) retain any electronic record in a non-
rewritable, non-erasable format; and (3) engage a third-party technical 
consultant.
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    \4\ 82 FR 24479 (May 30, 2017).

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[[Page 39622]]

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\5\ in general, and furthers the 
objectives of Sections 6(b)(5) \6\ and 6(b)(7) \7\ in particular in 
that it is designed:
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
    \7\ 15 U.S.C. 78f(b)(7).
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     To prevent fraudulent and manipulative acts and practices,
     to promote just and equitable principles of trade, and
     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 proposed rule change would align CFE's rules related to 
recordkeeping with the CFTC's amended recordkeeping requirements. The 
Exchange believes that the proposed rule change furthers the ability of 
the Exchange to regulate its market by providing for updated and 
enhanced recordkeeping requirements (which include, among other things, 
a requirement to keep electronic records readily accessible for a [sic] 
five years).

B. Self-Regulatory Organization's Statement on Burden on Competition

    CFE does not believe that the proposed rule change will impose any 
burden on competition not necessary or appropriate in furtherance of 
the purposes of the Act, in that the proposed rule change is consistent 
with the CFTC's amended recordkeeping requirements. The Exchange 
believes that the proposed rule change is equitable and not unfairly 
discriminatory in that the rule amendments included in the proposed 
rule change would apply equally to all CFE Trading Privilege Holders.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The proposed rule change will become operative on August 28, 2017. 
At any time within 60 days of the date of effectiveness of the proposed 
rule change, the Commission, after consultation with the CFTC, may 
summarily abrogate the proposed rule change and require that the 
proposed rule change be refiled in accordance with the provisions of 
Section 19(b)(1) of the Act.\8\
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    \8\ 15 U.S.C. 78s(b)(1).
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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-CFE-2017-002 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-CFE-2017-002. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549, on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-CFE-2017-002, and should be 
submitted on or before September 11, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(73).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-17549 Filed 8-18-17; 8:45 am]
 BILLING CODE 8011-01-P

Federal Register / Vol. 82, No. 160 / Monday, August 21, 2017 / Notices 39621 FOR FURTHER INFORMATION CONTACT: This Notice will be published in the purpose of and basis for the proposed David A. Trissell, General Counsel, at Federal Register. rule change and discussed any 202–789–6820. comments it received on the proposed Stacy L. Ruble, SUPPLEMENTARY INFORMATION: rule change. The text of these statements Secretary. may be examined at the places specified Table of Contents [FR Doc. 2017–17592 Filed 8–18–17; 8:45 am] in Item IV below. CFE has prepared I. Introduction BILLING CODE 7710–FW–P summaries, set forth in Sections A, B, II. Docketed Proceeding(s) and C below, of the most significant aspects of such statements. I. Introduction SECURITIES AND EXCHANGE COMMISSION A. Self-Regulatory Organization’s The Commission gives notice that the Statement of the Purpose of, and Postal Service filed request(s) for the [Release No. 34–81402; File No. SR–CFE– Statutory Basis for, the Proposed Rule Commission to consider matters related 2017–002] Change to rates not of general applicability for Inbound Parcel Post (at Universal Postal Self-Regulatory Organizations; CBOE 1. Purpose Union (UPU) Rates). Futures Exchange, LLC; Notice of CFE Rule 502 sets forth CFE’s Section II identifies the docket Filing of a Proposed Rule Change requirements relating to record retention number(s) associated with each Postal Regarding Recordkeeping periods and the inspection and delivery Service request, the title of each Postal Requirements of books and records. CFE Rule 535 Service request, the request’s acceptance provides that any CFE Trading Privilege August 15, 2017. date, and the authority cited by the Holder subject to CFTC Regulation Postal Service for each request. For each Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934 1.31 3 that violates CFTC Regulation request, the Commission appoints an 1.31 shall be deemed to have violated officer of the Commission to represent (‘‘Act’’),1 notice is hereby given that on August 7, 2017 CBOE Futures Exchange, Rule 535. Rule 535 also includes the the interests of the general public in the text of CFTC Regulation 1.31 within proceeding, pursuant to 39 U.S.C. 505 LLC (‘‘CFE’’ or ‘‘Exchange’’) filed with the Securities and Exchange Rule 535. (Public Representative). Section II also The CFTC recently issued a final establishes comment deadline(s) Commission (‘‘SEC’’ or ‘‘Commission’’) the proposed rule change described in rulemaking regarding recordkeeping pertaining to each request. requirements which amends CFTC Items I, II, and III below, which Items The public portions of the Postal Regulation 1.31.4 The amendments to have been prepared by CFE. The Service’s request(s) can be accessed via CFTC Regulation 1.31 become effective Commission is publishing this notice to the Commission’s Web site (http:// on August 28, 2017. CFE is proposing to solicit comments on the proposed rule www.prc.gov). Non-public portions of amend Rules 502 and 535 to conform change from interested persons. CFE the Postal Service’s request(s), if any, them to amended CFTC Regulation 1.31. also has filed this proposed rule change can be accessed through compliance Rule 502 continues to provide for a five with the Commodity Futures Trading with the requirements of 39 CFR year record retention period consistent Commission (‘‘CFTC’’). CFE filed a 3007.40. with CFTC Regulation 1.31. In written certification with the CFTC The Commission invites comments on under Section 5c(c) of the Commodity conformity with amended CFTC whether the Postal Service’s request(s) Exchange Act (‘‘CEA’’) 2 on August 7, Regulation 1.31, CFE is proposing to in the captioned docket(s) are consistent 2017. amend Rule 502 to provide that required with the policies of title 39. For books and records exclusively created request(s) that the Postal Service states I. Self-Regulatory Organization’s and maintained on paper shall be concern market dominant product(s), Description of the Proposed Rule readily accessible during the first two applicable statutory and regulatory Change years of that five year period and that requirements include 39 U.S.C. 3622, 39 The Exchange proposes to amend CFE electronic books and records shall be U.S.C. 3642, 39 CFR part 3010, and 39 Rules 502 and 535 related to readily accessible for the entire five year CFR part 3020, subpart B. For request(s) recordkeeping requirements. The scope period. CFE is proposing to amend Rule that the Postal Service states concern of this filing is limited solely to the 535 to replace the previous text of CFTC competitive product(s), applicable application of the proposed rule Regulation 1.31 with the new text of statutory and regulatory requirements amendments to security futures that CFTC Regulation 1.31. CFE is proposing include 39 U.S.C. 3632, 39 U.S.C. 3633, may be traded on CFE. Although no to amend Rule 535 to modernize and 39 U.S.C. 3642, 39 CFR part 3015, and security futures are currently listed for make technology neutral the form and 39 CFR part 3020, subpart B. Comment trading on CFE, CFE may list security manner in which regulatory records deadline(s) for each request appear in futures for trading in the future. The text must be kept, as well as rationalize the section II. of the proposed rule change is attached current rule text for ease of II. Docketed Proceeding(s) as Exhibit 4 to the filing but is not understanding, consistent with the attached to the publication of this changes made to CFTC Regulation 1.31. 1. Docket No(s).: CP2017–267; Filing notice. Specifically, the proposed changes to Title: Notice of the United States Postal Rule 535 eliminate the requirement for II. Self-Regulatory Organization’s asabaliauskas on DSKBBXCHB2PROD with NOTICES Service of Filing Changes in Rates Not a records entity to: (1) Keep electronic of General Applicability for Certain Statement of the Purpose of, and regulatory records in their native file Inbound Parcel Post (at UPU Rates), and Statutory Basis for, the Proposed Rule format; (2) retain any electronic record Application for Non-Public Treatment; Change in a non-rewritable, non-erasable Filing Acceptance Date: August 15, In its filing with the Commission, CFE format; and (3) engage a third-party 2017; Filing Authority: 39 U.S.C. 3633 included statements concerning the technical consultant. and 39 CFR 3015.5; Public Representative: Katalin K. Clendenin; 1 15 U.S.C. 78s(b)(7). 3 17 CFR 1.31. Comments Due: August 23, 2017. 27 U.S.C. 7a–2(c). 4 82 FR 24479 (May 30, 2017). VerDate Sep<11>2014 18:37 Aug 18, 2017 Jkt 241001 PO 00000 Frm 00066 Fmt 4703 Sfmt 4703 E:\FR\FM\21AUN1.SGM 21AUN1

39622 Federal Register / Vol. 82, No. 160 / Monday, August 21, 2017 / Notices 2. Statutory Basis rule change be refiled in accordance For the Commission, by the Division of with the provisions of Section 19(b)(1) Trading and Markets, pursuant to delegated The Exchange believes that the authority.9 proposed rule change is consistent with of the Act.8 Eduardo A. Aleman, Section 6(b) of the Act,5 in general, and IV. Solicitation of Comments Assistant Secretary. furthers the objectives of Sections Interested persons are invited to [FR Doc. 2017–17549 Filed 8–18–17; 8:45 am] 6(b)(5) 6 and 6(b)(7) 7 in particular in that it is designed: submit written data, views, and BILLING CODE 8011–01–P • To prevent fraudulent and arguments concerning the foregoing, manipulative acts and practices, including whether the proposed rule • to promote just and equitable change is consistent with the Act. SECURITIES AND EXCHANGE principles of trade, and Comments may be submitted by any of COMMISSION • to remove impediments to and the following methods: [Release No. 34–81399; File No. SR–LCH perfect the mechanism of a free and SA–2017–007] open market and a national market Electronic Comments system, and in general, to protect • Use the Commission’s Internet Self-Regulatory Organizations; LCH investors and the public interest. comment form (http://www.sec.gov/ SA; Notice of Filing of Proposed Rule The proposed rule change would rules/sro.shtml); or Change Relating to Margin Framework align CFE’s rules related to and Default Fund Methodology for • Send an email to rule-comments@ Options on Index Credit Default Swaps recordkeeping with the CFTC’s sec.gov. Please include File Number SR– amended recordkeeping requirements. August 15, 2017. CFE–2017–002 on the subject line. The Exchange believes that the Pursuant to Section 19(b)(1) of the proposed rule change furthers the Paper Comments Securities Exchange Act of 1934 ability of the Exchange to regulate its market by providing for updated and • Send paper comments in triplicate (‘‘Act’’),1 and Rule 19b–4 thereunder,2 to Secretary, Securities and Exchange notice is hereby given that on August 1, enhanced recordkeeping requirements 2017, Banque Centrale de (which include, among other things, a Commission, 100 F Street NE., Washington, DC 20549–1090. Compensation, which conducts requirement to keep electronic records business under the name LCH SA (‘‘LCH readily accessible for a [sic] five years). All submissions should refer to File SA’’), filed with the Securities and B. Self-Regulatory Organization’s Number SR–CFE–2017–002. This file Exchange Commission (‘‘Commission’’) Statement on Burden on Competition number should be included on the the proposed rule change described in subject line if email is used. To help the Items I, II, and III below, which Items CFE does not believe that the Commission process and review your have been prepared primarily by LCH proposed rule change will impose any comments more efficiently, please use SA. The Commission is publishing this burden on competition not necessary or only one method. The Commission will notice to solicit comments on the appropriate in furtherance of the post all comments on the Commission’s proposed rule change from interested purposes of the Act, in that the Internet Web site (http://www.sec.gov/ persons. proposed rule change is consistent with rules/sro.shtml). Copies of the the CFTC’s amended recordkeeping submission, all subsequent I. Clearing Agency’s Statement of the requirements. The Exchange believes amendments, all written statements Terms of Substance of the Proposed that the proposed rule change is with respect to the proposed rule Rule Change equitable and not unfairly change that are filed with the LCH SA is proposing to amend its (i) discriminatory in that the rule Commission, and all written Reference Guide: CDS Margin amendments included in the proposed communications relating to the Framework (‘‘CDSClear Margin rule change would apply equally to all proposed rule change between the Framework’’ or ‘‘Framework’’) and (ii) CFE Trading Privilege Holders. Commission and any person, other than CDSClear Default Fund Methodology C. Self-Regulatory Organization’s those that may be withheld from the (‘‘Default Fund Methodology’’) to Statement on Comments on the public in accordance with the incorporate terms and to make Proposed Rule Change Received From provisions of 5 U.S.C. 552, will be conforming and clarifying changes to Members, Participants, or Others available for Web site viewing and allow options on index credit default printing in the Commission’s Public swaps (‘‘CDS Options’’) to be cleared by No written comments were solicited LCH SA.3 A separate proposed rule Reference Room, 100 F Street NE., or received with respect to the proposed change has been submitted concurrently Washington, DC 20549, on official rule change. (SR–LCH SA–2017–006) with respect to business days between the hours of III. Date of Effectiveness of the 10:00 a.m. and 3:00 p.m. Copies of such amendments to LCH SA’s rule book and Proposed Rule Change and Timing for filing also will be available for other relevant procedures to incorporate Commission Action inspection and copying at the principal terms and to make conforming and office of the Exchange. All comments clarifying changes to allow options on The proposed rule change will received will be posted without change; index credit default swaps (‘‘CDS’’) to become operative on August 28, 2017. the Commission does not edit personal be cleared by LCH SA. The launch of At any time within 60 days of the date identifying information from clearing CDS Options will be contingent asabaliauskas on DSKBBXCHB2PROD with NOTICES of effectiveness of the proposed rule submissions. You should submit only on LCH SA’s receipt of all necessary change, the Commission, after information that you wish to make regulatory approvals, including the consultation with the CFTC, may summarily abrogate the proposed rule available publicly. All submissions 9 17 CFR 200.30–3(a)(73). change and require that the proposed should refer to File Number SR–CFE– 1 15 U.S.C. 78s(b)(1). 2017–002, and should be submitted on 2 17 CFR 240.19b–4. 5 15 U.S.C. 78f(b). or before September 11, 2017. 3 All capitalized terms not defined herein have 6 15 U.S.C. 78f(b)(5). the same definition as the Framework or Default 7 15 U.S.C. 78f(b)(7). 8 15 U.S.C. 78s(b)(1). Fund Methodology, as applicable. VerDate Sep<11>2014 18:37 Aug 18, 2017 Jkt 241001 PO 00000 Frm 00067 Fmt 4703 Sfmt 4703 E:\FR\FM\21AUN1.SGM 21AUN1


Document Created: 2017-08-19 00:44:27
Document Modified: 2017-08-19 00:44:27
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 39621 
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