82 FR 47590 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Fees Schedule

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 196 (October 12, 2017)

Page Range		47590-47591
FR Document		2017-21997

Federal Register, Volume 82 Issue 196 (Thursday, October 12, 2017)

[Federal Register Volume 82, Number 196 (Thursday, October 12, 2017)]
[Notices]
[Pages 47590-47591]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2017-21997]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81827; File No. SR-CBOE-2017-063]

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

October 5, 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 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.
---------------------------------------------------------------------------

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

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

The Exchange seeks to amend the Fees Schedule.
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, effective October
2, 2017. Specifically, the Exchange proposes to amend its marketing fee
program to assess the fee in Russell 2000 Index (``RUT'') options at a
rate of $0.30 per contract. The Exchange currently assess its marketing
fee for penny classes at a rate of $0.25 and non-penny classes at the
rate of $0.70 per contract. CBOE believes assessing the marketing fee
in RUT options will allow CBOE Market-Makers (including DPMs, PMMs, and
LMMs) to compete better for order flow in RUT options. Footnote 6 of
the Fees Schedule currently exempts Underlying Symbol List A symbols
from the marketing fee. Footnote 34 of the Fees Schedule identifies RUT
as an Underlying Symbol List A symbol. Thus, the Exchange is amending
footnote 6 of the Fees Schedule to provide that the marketing fee will
apply to RUT. RUT will remain an Underlying Symbol List A symbol in all
other respects.
The Exchange also proposes to make a non-substantive amendment to
the term `binaries' in footnote 6 of the Fees Schedule.
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 the
Section 6(b)(5) \5\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------

\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(5).
\5\ Id.
---------------------------------------------------------------------------

In particular, the Exchange believes applying the marketing fee to
RUT options is equitable, reasonable, and not unfairly discriminatory
as the marketing fee to be applied to RUT options is similar to the
marketing fee currently

[[Page 47591]]

applicable to penny and non-penny classes.

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

CBOE 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. 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 different fees are assessed to
different market participants in some circumstances, these different
market participants have different obligations and different
circumstances as discussed above. For example, Market-Makers have
quoting obligations that other market participants do not have. The
Exchange does not believe that the proposed rule changes will impose
any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act because RUT is
exclusively listed on CBOE and C2. To the extent that the proposed
changes make 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.

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 \6\ and paragraph (f) of Rule 19b-4 \7\
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.
---------------------------------------------------------------------------

\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

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-2017-063 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-2017-063. 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-2017-063 and should be
submitted on or before November 2, 2017.\8\
---------------------------------------------------------------------------

\8\ 17 CFR 200.30-3(a)(12).

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-21997 Filed 10-11-17; 8:45 am]
BILLING CODE 8011-01-P

47590 Federal Register / Vol. 82, No. 196 / Thursday, October 12, 2017 / Notices

Comments may be submitted by any of SECURITIES AND EXCHANGE 2017. Specifically, the Exchange
the following methods: COMMISSION proposes to amend its marketing fee
program to assess the fee in Russell
Electronic Comments [Release No. 34–81827; File No. SR–CBOE–
2000 Index (‘‘RUT’’) options at a rate of
2017–063]
• Use the Commission’s Internet $0.30 per contract. The Exchange
comment form (http://www.sec.gov/ Self-Regulatory Organizations; currently assess its marketing fee for
rules/sro.shtml); or Chicago Board Options Exchange, penny classes at a rate of $0.25 and non-
Incorporated; Notice of Filing and penny classes at the rate of $0.70 per
• Send an email to rule-comments@ contract. CBOE believes assessing the
sec.gov. Please include File Number SR– Immediate Effectiveness of a Proposed
Rule Change Relating to the Fees marketing fee in RUT options will allow
NYSEAMER–2017–22 on the subject CBOE Market-Makers (including DPMs,
line. Schedule
PMMs, and LMMs) to compete better for
Paper Comments October 5, 2017. order flow in RUT options. Footnote 6
Pursuant to Section 19(b)(1) of the of the Fees Schedule currently exempts
• Send paper comments in triplicate Securities Exchange Act of 1934 (the Underlying Symbol List A symbols from
to Secretary, Securities and Exchange ‘‘Act’’),1 and Rule 19b–4 thereunder,2 the marketing fee. Footnote 34 of the
Commission, 100 F Street NE., notice is hereby given that on Fees Schedule identifies RUT as an
Washington, DC 20549–1090. September 29, 2017, Chicago Board Underlying Symbol List A symbol.
Options Exchange, Incorporated (the Thus, the Exchange is amending
All submissions should refer to File ‘‘Exchange’’ or ‘‘CBOE’’) filed with the footnote 6 of the Fees Schedule to
Number SR–NYSEAMER–2017–22. This Securities and Exchange Commission provide that the marketing fee will
file number should be included on the (the ‘‘Commission’’) the proposed rule apply to RUT. RUT will remain an
subject line if email is used. To help the change as described in Items I, II, and Underlying Symbol List A symbol in all
Commission process and review your III below, which Items have been other respects.
comments more efficiently, please use prepared by the Exchange. The The Exchange also proposes to make
only one method. The Commission will Commission is publishing this notice to a non-substantive amendment to the
post all comments on the Commission’s solicit comments on the proposed rule term ‘binaries’ in footnote 6 of the Fees
Internet Web site (http://www.sec.gov/ change from interested persons. Schedule.
rules/sro.shtml). Copies of the
submission, all subsequent I. Self-Regulatory Organization’s 2. Statutory Basis
amendments, all written statements Statement of the Terms of Substance of
The Exchange believes the proposed
with respect to the proposed rule the Proposed Rule Change
rule change is consistent with the
change that are filed with the The Exchange seeks to amend the Securities Exchange Act of 1934 (the
Commission, and all written Fees Schedule. ‘‘Act’’) and the rules and regulations
communications relating to the The text of the proposed rule change thereunder applicable to the Exchange
proposed rule change between the is available on the Exchange’s Web site and, in particular, the requirements of
Commission and any person, other than (http://www.cboe.com/AboutCBOE/ Section 6(b) of the Act.3 Specifically,
those that may be withheld from the CBOELegalRegulatoryHome.aspx), at the Exchange believes the proposed rule
public in accordance with the the Exchange’s Office of the Secretary, change is consistent with the Section
provisions of 5 U.S.C. 552, will be and at the Commission’s Public 6(b)(5) 4 requirements that the rules of
available for Web site viewing and Reference Room. an exchange be designed to prevent
printing in the Commission’s Public II. Self-Regulatory Organization’s fraudulent and manipulative acts and
Reference Room, 100 F Street NE., Statement of the Purpose of, and practices, to promote just and equitable
Washington, DC 20549, on official Statutory Basis for, the Proposed Rule principles of trade, to foster cooperation
business days between the hours of Change and coordination with persons engaged
10:00 a.m. and 3:00 p.m. Copies of the in regulating, clearing, settling,
filing also will be available for In its filing with the Commission, the
processing information with respect to,
inspection and copying at the principal Exchange included statements
and facilitating transactions in
office of the Exchange. All comments concerning the purpose of and basis for
securities, to remove impediments to
received will be posted without change; the proposed rule change and discussed
and perfect the mechanism of a free and
the Commission does not edit personal any comments it received on the
open market and a national market
identifying information from proposed rule change. The text of these
system, and, in general, to protect
submissions. You should submit only statements may be examined at the
investors and the public interest.
information that you wish to make places specified in Item IV below. The
Additionally, the Exchange believes the
available publicly. All submissions Exchange has prepared summaries, set
proposed rule change is consistent with
should refer to File Number SR– forth in sections A, B, and C below, of
the Section 6(b)(5) 5 requirement that
NYSEAMER–2017–22, and should be the most significant aspects of such
the rules of an exchange not be designed
submitted on or before November 2, statements.
to permit unfair discrimination between
2017. A. Self-Regulatory Organization’s customers, issuers, brokers, or dealers.
For the Commission, by the Division of Statement of the Purpose of, and In particular, the Exchange believes
asabaliauskas on DSKBBXCHB2PROD with NOTICES

Trading and Markets, pursuant to delegated Statutory Basis for, the Proposed Rule applying the marketing fee to RUT
authority.17 Change options is equitable, reasonable, and not
Brent J. Fields, unfairly discriminatory as the marketing
1. Purpose fee to be applied to RUT options is
Secretary.
The Exchange proposes to amend its similar to the marketing fee currently
[FR Doc. 2017–21998 Filed 10–11–17; 8:45 am]
Fees Schedule, effective October 2,
BILLING CODE 8011–01–P 3 15 U.S.C. 78f(b).
1 15 U.S.C. 78s(b)(1). 4 15 U.S.C. 78f(b)(5).
17 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. 5 Id.

VerDate Sep<11>2014 22:35 Oct 11, 2017 Jkt 244001 PO 00000 Frm 00145 Fmt 4703 Sfmt 4703 E:\FR\FM\12OCN1.SGM 12OCN1

Federal Register / Vol. 82, No. 196 / Thursday, October 12, 2017 / Notices 47591

applicable to penny and non-penny IV. Solicitation of Comments For the Commission, by the Division of
classes. Trading and Markets, pursuant to delegated
Interested persons are invited to authority.
B. Self-Regulatory Organization’s submit written data, views, and Eduardo A. Aleman,
Statement on Burden on Competition arguments concerning the foregoing, Assistant Secretary.
CBOE does not believe that the including whether the proposed rule [FR Doc. 2017–21997 Filed 10–11–17; 8:45 am]
proposed rule change will impose any change is consistent with the Act.
BILLING CODE 8011–01–P
burden on competition that is not Comments may be submitted by any of
necessary or appropriate in furtherance the following methods:
of the purposes of the Act. The SECURITIES AND EXCHANGE
Electronic Comments
Exchange does not believe that the COMMISSION
proposed rule change will impose any • Use the Commission’s Internet
burden on intramarket competition that comment form (http://www.sec.gov/ [Release No. 34–81825; File No. SR–
is not necessary or appropriate in rules/sro.shtml); or BatsBYX–2017–25]
furtherance of the purposes of the Act
because, while different fees are • Send an email to rule-comments@
sec.gov. Please include File Number SR– Self-Regulatory Organizations; Bats
assessed to different market participants BYX Exchange, Inc.; Notice of Filing
in some circumstances, these different CBOE–2017–063 on the subject line.
and Immediate Effectiveness of a
market participants have different Paper Comments Proposed Rule Change Related to
obligations and different circumstances Transaction Fees
as discussed above. For example, • Send paper comments in triplicate
Market-Makers have quoting obligations to Secretary, Securities and Exchange October 5, 2017.
that other market participants do not Commission, 100 F Street NE., Pursuant to Section 19(b)(1) of the
have. The Exchange does not believe Washington, DC 20549–1090. Securities Exchange Act of 1934 (the
that the proposed rule changes will ‘‘Act’’),1 and Rule 19b–4 thereunder,2
impose any burden on intermarket All submissions should refer to File
Number SR–CBOE–2017–063. This file notice is hereby given that on
competition that is not necessary or September 29, 2017, Bats BYX
appropriate in furtherance of the number should be included on the
subject line if email is used. To help the Exchange, Inc. (the ‘‘Exchange’’ or
purposes of the Act because RUT is ‘‘BYX’’) filed with the Securities and
exclusively listed on CBOE and C2. To Commission process and review your
comments more efficiently, please use Exchange Commission (‘‘Commission’’)
the extent that the proposed changes the proposed rule change as described
make CBOE a more attractive only one method. The Commission will
in Items I, II and III below, which Items
marketplace for market participants at post all comments on the Commission’s
have been prepared by the Exchange.
other exchanges, such market Internet Web site (http://www.sec.gov/
The Exchange has designated the
participants are welcome to become rules/sro.shtml). Copies of the
proposed rule change as one
CBOE market participants. submission, all subsequent establishing or changing a member due,
C. Self-Regulatory Organization’s amendments, all written statements fee, or other charge imposed by the
Statement on Comments on the with respect to the proposed rule Exchange under Section 19(b)(3)(A)(ii)
Proposed Rule Change Received From change that are filed with the of the Act 3 and Rule 19b–4(f)(2)
Members, Participants, or Others Commission, and all written thereunder,4 which renders the
communications relating to the proposed rule change effective upon
The Exchange neither solicited nor proposed rule change between the filing with the Commission. The
received comments on the proposed Commission and any person, other than Commission is publishing this notice to
rule change. those that may be withheld from the solicit comments on the proposed rule
III. Date of Effectiveness of the public in accordance with the change from interested persons.
Proposed Rule Change and Timing for provisions of 5 U.S.C. 552, will be
I. Self-Regulatory Organization’s
Commission Action available for Web site viewing and
Statement of the Terms of Substance of
printing in the Commission’s Public
The foregoing rule change has become the Proposed Rule Change
Reference Room, 100 F Street NE.,
effective pursuant to Section 19(b)(3)(A)
Washington, DC 20549 on official The Exchange filed a proposal to
of the Act 6 and paragraph (f) of Rule
business days between the hours of amend the fee schedule applicable to
19b–4 7 thereunder. At any time within
10:00 a.m. and 3:00 p.m. Copies of the Members 5 and non-Members of the
60 days of the filing of the proposed rule
change, the Commission summarily may filing also will be available for Exchange pursuant to BYX Rules 15.1(a)
temporarily suspend such rule change if inspection and copying at the principal and (c).
it appears to the Commission that such office of the Exchange. All comments The text of the proposed rule change
action is necessary or appropriate in the received will be posted without change; is available at the Exchange’s Web site
public interest, for the protection of the Commission does not edit personal at www.bats.com, at the principal office
investors, or otherwise in furtherance of identifying information from of the Exchange, and at the
submissions. You should submit only Commission’s Public Reference Room.
asabaliauskas on DSKBBXCHB2PROD with NOTICES

the purposes of the Act. If the
Commission takes such action, the information that you wish to make
Commission will institute proceedings available publicly. All submissions 1 15 U.S.C. 78s(b)(1).
to determine whether the proposed rule should refer to File Number SR–CBOE– 2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
change should be approved or 2017–063 and should be submitted on
4 17 CFR 240.19b–4(f)(2).
disapproved. or before November 2, 2017.8 5 The term ‘‘Member’’ is defined as ‘‘any

registered broker or dealer that has been admitted
6 15 U.S.C. 78s(b)(3)(A). to membership in the Exchange.’’ See Exchange
7 17 CFR 240.19b–4(f). 8 17 CFR 200.30–3(a)(12). Rule 1.5(n).

VerDate Sep<11>2014 22:35 Oct 11, 2017 Jkt 244001 PO 00000 Frm 00146 Fmt 4703 Sfmt 4703 E:\FR\FM\12OCN1.SGM 12OCN1

Document Created: 2018-10-25 10:03:50
Document Modified: 2018-10-25 10:03:50

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 47590