82 FR 44014 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Correct an Inadvertent Marking Error in the Fees Schedule

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 181 (September 20, 2017)

Page Range		44014-44016
FR Document		2017-19965
Federal Register, Volume 82 Issue 181 (Wednesday, September 20, 2017)
[Federal Register Volume 82, Number 181 (Wednesday, September 20, 2017)]
[Notices]
[Pages 44014-44016]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-19965]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81613; File No. SR-CBOE-2017-061)


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Correct an Inadvertent Marking Error in the 
Fees Schedule

September 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 September 6, 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 Exchange filed the proposal as a ``non-controversial'' 
proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
\3\ and Rule 19b-4(f)(6) thereunder.\4\ 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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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 to correct an 
inadvertent marking error made to the Exhibit 5 in a previous rule 
filing. Specifically, on January 27, 2017, the Exchange filed a rule 
filing, SR-CBOE-2017-011, which proposed to expand the Marketing Fee 
program to Lead Market-Makers and also make certain clarifications to 
Footnote 6 of the Fees Schedule (which governs the Marketing Fee 
program), effective February 1, 2017.\5\
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    \5\ See Securities Exchange Act Release No. 80003 (February 9, 
2017), 82 FR 10846 (February 15, 2017) (SR-CBOE-2017-011).
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    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 to correct an 
inadvertent marking error made to the Exhibit 5 in a previous rule 
filing. Specifically, on January 27, 2017, the Exchange filed a rule 
filing, SR-CBOE-2017-011, which proposed to expand the Marketing Fee 
program to Lead Market-Makers and also make certain clarifications to 
Footnote 6 of the Fees Schedule (which governs the Marketing Fee 
program), effective February 1, 2017.\6\ The Exchange notes that it 
mistakenly used outdated text contained in Footnote 6 of the Fees 
Schedule in the Exhibit 5 of that filing. Particularly, prior to filing 
SR-CBOE-2017-011, Footnote 6 included the statement that ``. . . the 
marketing fee shall not apply to DJX, MXEA, MXEF, MNX, NDX, XSP or 
Underlying Symbol List A (34) excluding binaries options.'' \7\ The 
Exhibit 5 filed in SR-CBOE-2017-011 however, inadvertently left out the 
reference to ``MXEA, MXEF, MNX, NDX'' in that same sentence. The 
Exchange notes that it was not its intention to start including those 
products in the Marketing Fee program and also notes that no such 
change was otherwise referenced or implied in the 19b-4 of SR-CBOE-
2017-011 or any other filing since then.\8\ Rather it was an 
inadvertent mistake that the Exchange seeks to correct. Accordingly, 
the Exchange proposes to add back the

[[Page 44015]]

reference to ``MXEA, MXEF, MNX, NDX'' to the sentence in Footnote 6 
that lists the excluded option classes from the marketing fee. No 
substantive changes are being made by the proposed rule change.
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    \6\ See Securities Exchange Act Release No. 80003 (February 9, 
2017), 82 FR 10846 (February 15, 2017) (SR-CBOE-2017-011).
    \7\ See Securities Exchange Act Release No. 76923 (January 15, 
2016), 81 FR 3841 (January 22, 2016) (SR-CBOE-2016-002), which rule 
filing was the last rule filing before SR-CBOE-2017-011 to amend 
Footnote 6 of the Fees Schedule.
    \8\ See Securities Exchange Act Release No. 80003 (February 9, 
2017), 82 FR 10846 (February 15, 2017) (SR-CBOE-2017-011).
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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.\9\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \10\ 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.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes correcting an inadvertent marking error from 
a previous rule filing in order to accurately reflect the option 
classes that are excluded from the marketing fee will alleviate 
potential confusion, thereby removing impediments to and perfecting the 
mechanism of a free and open market and a national market system and 
protecting investors and the public interest.

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

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. As discussed above, the 
proposed change is merely intended to correct an inadvertent marking 
error made in a previous rule filing, which will alleviate potential 
confusion.

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

    Because the foregoing rule does not (i) significantly affect the 
protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative for 30 
days from the date on which it was filed, or such shorter time as the 
Commission may designate if consistent with the protection of investors 
and the public interest, provided that the self-regulatory organization 
has given the Commission written notice of its intent to file the 
proposed rule change at least five business days prior to the date of 
filing of the proposed rule change or such shorter time as designated 
by the Commission,\11\ the proposed rule change has become effective 
pursuant to Section 19(b)(3)(A) of the Act \12\ and Rule 19b-4(f)(6) 
thereunder.\13\
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    \11\ The Exchange has satisfied this requirement.
    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) \14\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\15\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has 
requested that the Commission waive the five day refiling requirement 
and the 30-day operative delay so that the Exchange may immediately 
correct the Fees Schedule. The Commission notes that the proposed rule 
change does not present any new, unique or substantive issues, but 
rather is merely correcting an error and that waiver of the five-day 
prefiling requirement and the 30-day operative delay will help prevent 
potential confusion to market participants as to CBOE's intended 
applicability of the marketing fee. Therefore, the Commission believes 
that waiving the 30-day operative delay is consistent with the 
protection of investors and the public interest and designates the 
proposed rule change as operative upon filing.\16\
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    \14\ Id.
    \15\ 17 CFR 240.19b-4(f)(6)(iii).
    \16\ For purposes only of waiving the five-day prefiling 
requirement and the 30-day operative delay, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
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    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: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) otherwise in furtherance of the 
purposes of the Act. If the Commission takes such action, the 
Commission shall institute proceedings to determine whether the 
proposed rule should be approved or disapproved.

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-2017-061 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-2017-061. 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-2017-061 and should be 
submitted on or before October 11, 2017.


[[Page 44016]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-19965 Filed 9-19-17; 8:45 am]
BILLING CODE 8011-01-P
Federal Register / Vol. 82, No. 181 / Wednesday, September 20, 2017 / Notices 44015

reference to ‘‘MXEA, MXEF, MNX, III. Date of Effectiveness of the of investors; or (iii) otherwise in
NDX’’ to the sentence in Footnote 6 that Proposed Rule Change and Timing for furtherance of the purposes of the Act.
lists the excluded option classes from Commission Action If the Commission takes such action, the
the marketing fee. No substantive Because the foregoing rule does not (i) Commission shall institute proceedings
changes are being made by the proposed significantly affect the protection of to determine whether the proposed rule
rule change. investors or the public interest; (ii) should be approved or disapproved.
2. Statutory Basis impose any significant burden on IV. Solicitation of Comments
competition; and (iii) become operative
for 30 days from the date on which it Interested persons are invited to
The Exchange believes the proposed
was filed, or such shorter time as the submit written data, views, and
rule change is consistent with the
Commission may designate if consistent arguments concerning the foregoing,
Securities Exchange Act of 1934 (the
with the protection of investors and the including whether the proposed rule
‘‘Act’’) and the rules and regulations
public interest, provided that the self- change is consistent with the Act.
thereunder applicable to the Exchange Comments may be submitted by any of
and, in particular, the requirements of regulatory organization has given the
Commission written notice of its intent the following methods:
Section 6(b) of the Act.9 Specifically,
the Exchange believes the proposed rule to file the proposed rule change at least Electronic Comments
change is consistent with the Section five business days prior to the date of
filing of the proposed rule change or • Use the Commission’s Internet
6(b)(5) 10 requirements that the rules of comment form (http://www.sec.gov/
such shorter time as designated by the
an exchange be designed to prevent rules/sro.shtml); or
Commission,11 the proposed rule
fraudulent and manipulative acts and • Send an email to rule-comments@
change has become effective pursuant to
practices, to promote just and equitable sec.gov. Please include File Number SR–
Section 19(b)(3)(A) of the Act 12 and
principles of trade, to foster cooperation CBOE–2017–061 on the subject line.
Rule 19b–4(f)(6) thereunder.13
and coordination with persons engaged A proposed rule change filed under
in regulating, clearing, settling, Paper Comments
Rule 19b–4(f)(6) 14 normally does not
processing information with respect to, become operative prior to 30 days after • Send paper comments in triplicate
and facilitating transactions in the date of the filing. However, pursuant to Secretary, Securities and Exchange
securities, to remove impediments to to Rule 19b–4(f)(6)(iii),15 the Commission, 100 F Street NE.,
and perfect the mechanism of a free and Commission may designate a shorter Washington, DC 20549–1090.
open market and a national market time if such action is consistent with the All submissions should refer to File
system, and, in general, to protect protection of investors and the public Number SR–CBOE–2017–061. This file
investors and the public interest. interest. The Exchange has requested number should be included on the
The Exchange believes correcting an that the Commission waive the five day subject line if email is used. To help the
inadvertent marking error from a refiling requirement and the 30-day Commission process and review your
previous rule filing in order to operative delay so that the Exchange comments more efficiently, please use
accurately reflect the option classes that may immediately correct the Fees only one method. The Commission will
are excluded from the marketing fee will Schedule. The Commission notes that post all comments on the Commission’s
alleviate potential confusion, thereby the proposed rule change does not Internet Web site (http://www.sec.gov/
removing impediments to and present any new, unique or substantive rules/sro.shtml). Copies of the
perfecting the mechanism of a free and issues, but rather is merely correcting an submission, all subsequent
error and that waiver of the five-day amendments, all written statements
open market and a national market
prefiling requirement and the 30-day with respect to the proposed rule
system and protecting investors and the
operative delay will help prevent change that are filed with the
public interest.
potential confusion to market Commission, and all written
B. Self-Regulatory Organization’s participants as to CBOE’s intended communications relating to the
Statement on Burden on Competition applicability of the marketing fee. proposed rule change between the
Therefore, the Commission believes that Commission and any person, other than
The Exchange does not believe that waiving the 30-day operative delay is those that may be withheld from the
the proposed rule change will impose consistent with the protection of public in accordance with the
any burden on competition that is not investors and the public interest and provisions of 5 U.S.C. 552, will be
necessary or appropriate in furtherance designates the proposed rule change as available for Web site viewing and
of the purposes of the Act. As discussed operative upon filing.16 printing in the Commission’s Public
above, the proposed change is merely At any time within 60 days of the Reference Room, 100 F Street NE.,
intended to correct an inadvertent filing of the proposed rule change, the Washington, DC 20549 on official
marking error made in a previous rule Commission summarily may business days between the hours of
filing, which will alleviate potential temporarily suspend such rule change if 10:00 a.m. and 3:00 p.m. Copies of the
confusion. it appears to the Commission that such filing also will be available for
action is: (i) Necessary or appropriate in inspection and copying at the principal
C. Self-Regulatory Organization’s the public interest; (ii) for the protection
Statement on Comments on the office of the Exchange. All comments
Proposed Rule Change Received From 11 The
received will be posted without change;
Exchange has satisfied this requirement.
the Commission does not edit personal
sradovich on DSKBBY8HB2PROD with NOTICES

Members, Participants, or Others 12 15 U.S.C. 78s(b)(3)(A).
13 17 CFR 240.19b–4(f)(6). identifying information from
The Exchange neither solicited nor 14 Id. submissions. You should submit only
received comments on the proposed 15 17 CFR 240.19b–4(f)(6)(iii). information that you wish to make
rule change. 16 For purposes only of waiving the five-day available publicly. All submissions
prefiling requirement and the 30-day operative should refer to File Number SR–CBOE–
delay, the Commission has considered the proposed
9 15 U.S.C. 78f(b). rule’s impact on efficiency, competition, and capital
2017–061 and should be submitted on
10 15 U.S.C. 78f(b)(5). formation. See 15 U.S.C. 78c(f). or before October 11, 2017.

VerDate Sep<11>2014 18:28 Sep 19, 2017 Jkt 241001 PO 00000 Frm 00084 Fmt 4703 Sfmt 4703 E:\FR\FM\20SEN1.SGM 20SEN1
Document Created: 2018-10-24 14:21:59
Document Modified: 2018-10-24 14:21:59
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 44014