82_FR_50915 82 FR 50705 - Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Update Rule 21.1 To Adopt a New Time in Force Applicable to the Exchange's Equity Options Platform

82 FR 50705 - Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Update Rule 21.1 To Adopt a New Time in Force Applicable to the Exchange's Equity Options Platform

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 210 (November 1, 2017)

Page Range50705-50707
FR Document2017-23732

Federal Register, Volume 82 Issue 210 (Wednesday, November 1, 2017)
[Federal Register Volume 82, Number 210 (Wednesday, November 1, 2017)]
[Notices]
[Pages 50705-50707]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-23732]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81950; File No. SR-BatsBZX-2017-71]


Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Update 
Rule 21.1 To Adopt a New Time in Force Applicable to the Exchange's 
Equity Options Platform

October 26, 2017.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on October 20, 2017, Cboe BZX Exchange, Inc. (the ``Exchange'') 
(formerly known as Bats BZX Exchange, Inc.) filed with the Securities 
and Exchange Commission

[[Page 50706]]

(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been prepared by the Exchange. The Exchange 
has designated this proposal as a ``non-controversial'' proposed rule 
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with 
the Commission. 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).
    \4\ 17 CFR 240.19b-4(f)(6)(iii).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange filed a proposal to update Rule 21.1 to adopt a new 
Time in Force applicable to the Exchange's equity options platform 
(``BZX Options'').
    The text of the proposed rule change is available at the Exchange's 
Web site at www.markets.cboe.com, at the principal office of the 
Exchange, 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 parts of such 
statements.

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

1. Purpose
    In 2016, the Exchange and its affiliates Bats BYX Exchange, Inc. 
(now known as Cboe BYX Exchange, Inc.) (``BYX''), Bats EDGA Exchange, 
Inc. (now known as Cboe EDGA Exchange, Inc.) (``EDGA''), and Bats EDGX 
Exchange, Inc. (now known as Cboe EDGX Exchange, Inc.) (``EDGX'') 
received approval to affect a merger (the ``Merger'') of the Exchange's 
indirect parent company, Bats Global Markets, Inc. (``BGM''), with CBOE 
Holdings, Inc. (now known as Cboe Global Markets, Inc.) (``CBOE 
Holdings''), the direct parent of Chicago Board Options Exchange, 
Incorporated (now known as Cboe Exchange, Inc.) (``Cboe Options'') and 
C2 Options Exchange, Incorporated (now known as Cboe C2 Exchange, Inc.) 
(``C2 Options'', and together with the Exchange, BYX, EDGA, EDGX, and 
Cboe Options the ``Cboe Affiliated Exchanges'').\5\ The Cboe Affiliated 
Exchanges are working to align certain system functionality, retaining 
only intended differences between the Cboe Affiliated Exchanges, in the 
context of a technology migration. In the context of such migration, 
the Exchange is working to align its systems to offer certain features 
currently offered by Cboe Options and C2 Options as well as striving to 
maintain consistent technology with the options platform operated by 
EDGX (``EDGX Options''). Although the Exchange intentionally offers 
certain features that differ from those offered by its affiliates and 
will continue to do so, the Exchange believes that offering similar 
functionality to the extent practicable will reduce potential confusion 
for Users.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 79585 (December 16, 
2016), 81 FR 93988 (December 22, 2016) (SR-BatsBZX-2016-68; SR-
BatsBYX-2016-29; SR-BatsEDGA-2016-24; SR-BatsEDGX-2016-60).
---------------------------------------------------------------------------

    The Exchange proposes to amend Exchange Rule 21.1, Definitions, to 
add a new Time in Force, namely the time in force of ``At the Open'' or 
``OPG''.
    As proposed, ``At the Open'' or ``OPG'' shall mean, for an order so 
designated, an order that shall only participate in the opening process 
on the Exchange. An OPG order not executed in the opening process will 
be cancelled. The Exchange's affiliate, EDGX Options, recently received 
approval of various rule changes, including the adoption of a Time in 
Force of OPG that is identical to the Exchange's proposed rule.\6\ The 
Exchange notes that other options exchanges also offer Times in Force 
that, similar to OPG, limit an order to participating in an exchange's 
opening process.\7\
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    \6\ See Securities Exchange Act Release No. 81891 (October 17, 
2017) (SR-Bats-EDGX-2017-29).
    \7\ See, e.g., C2 Rule 6.10(c)(7); ISE Rule 715(o).
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \8\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \9\ in particular, in that it is designed to promote 
just and equitable principles of trade, 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. 
In particular, consistent rules and functionality between the Exchange 
and its affiliated exchanges will reduce complexity and help avoid 
potential confusion by the Users of the Exchange that are also 
participants on other Cboe Affiliated Exchanges.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes the proposed amendment will reduce complexity 
and increase the understanding of the Exchange's operations for all 
Users of the Exchange. In particular, by offering the same Times in 
Force as EDGX Options, the Exchange will avoid confusion from market 
participants that participate on both the Exchange and EDGX Options. In 
turn, when Cboe Options and C2 Options are migrated to the same 
technology as that of the Exchange, Users of the Exchange and other 
Cboe Affiliated Exchanges will have access to similar functionality on 
all Cboe Affiliated Exchanges. As such, the proposed rule change would 
foster cooperation and coordination with persons engaged in 
facilitating transactions in securities and would remove impediments to 
and perfect the mechanism of a free and open market and a national 
market system.

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. The Exchange notes that the 
proposal will promote consistency between the Exchange and its 
affiliated exchanges, and is part of a larger technology integration 
that will ultimately reduce complexity for Users of the Exchange that 
are also participants on other Cboe Affiliated Exchanges. The Exchange 
does not believe that the proposed changes will have any direct impact 
on competition. Thus, the Exchange does not believe that the proposal 
creates any significant impact on competition.

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

    The Exchange has not solicited, and does not intend to solicit, 
comments on this proposed rule change. The Exchange has not received 
any written comments from members or other interested parties.

[[Page 50707]]

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

    Because the foregoing proposed rule change 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, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6) thereunder.\10\
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    \10\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written 
notice of its intent to file the proposed rule change, along with a 
brief description and the text of 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.
---------------------------------------------------------------------------

    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \11\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \12\ permits the 
Commission to designate a shorter time if such action is consistent 
with the protection of investors and the public interest. The Exchange 
has asked the Commission to waive the 30-day operative delay so that 
the proposal may become operative immediately upon filing. The 
Commission notes that the proposed rule change is based on EDGX Rule 
21.1(f)(6) and is identical to such rule. Thus, the Commission believes 
that waiver of the operative delay is consistent with the protection of 
investors and the public because the proposal does not present any new 
or novel issues that have not been previously considered by the 
Commission. Therefore, the Commission hereby waives the 30-day 
operative delay and designates the proposal operative upon filing.\13\
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    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ For purposes only of waiving 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 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 shall institute proceedings to 
determine whether the proposed rule change 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-BatsBZX-2017-71 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-BatsBZX-2017-71. 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. Persons submitting 
comments are cautioned that we do not redact or edit personal 
identifying information from comment submissions. You should submit 
only information that you wish to make available publicly. All 
submissions should refer to File Number SR-BatsBZX-2017-71 and should 
be submitted on or before November 22, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-23732 Filed 10-31-17; 8:45 am]
 BILLING CODE 8011-01-P



                                                                         Federal Register / Vol. 82, No. 210 / Wednesday, November 1, 2017 / Notices                                                 50705

                                                disrupting its ordinary settlement cycle                Clearing Members and would not affect                 amendments, all written statements
                                                (and thusly, to avoid imposing the same                 Clearing Members’ access to OCC’s                     with respect to the proposed rule
                                                disruption on Clearing Members),                        services or disadvantage or favor any                 change that are filed with the
                                                thereby avoiding the need to extend the                 particular user in relationship to                    Commission, and all written
                                                settlement window and allowing OCC to                   another user. As such, OCC believes that              communications relating to the
                                                settle transactions in a more timely                    the proposed changes would not have                   proposed rule change between the
                                                fashion. In this regard, OCC believes the               any impact or impose any burden on                    Commission and any person, other than
                                                proposed rule change is designed to                     competition.                                          those that may be withheld from the
                                                promote the prompt and accurate                                                                               public in accordance with the
                                                clearance and settlement of securities                  (C) Clearing Agency’s Statement on                    provisions of 5 U.S.C. 552, will be
                                                transactions, in accordance with the                    Comments on the Proposed Rule                         available for Web site viewing and
                                                requirements of Section 17A(b)(3)(F) of                 Change Received From Members,                         printing in the Commission’s Public
                                                the Act.6                                               Participants or Others                                Reference Room, 100 F Street NE.,
                                                   Additionally, Rule 17Ad–22(e)(7)(viii)                 Written comments were not and are                   Washington, DC 20549, on official
                                                requires that a covered clearing agency                 not intended to be solicited with respect             business days between the hours of
                                                (‘‘CCA’’) address foreseeable liquidity                 to the proposed rule change, and none                 10:00 a.m. and 3:00 p.m. Copies of such
                                                shortfalls that would not be covered by                 have been received.                                   filing also will be available for
                                                the CCA’s liquid resources and seek to                                                                        inspection and copying at the principal
                                                avoid unwinding, revoking, or delaying                  III. Date of Effectiveness of the
                                                                                                                                                              office of OCC and on OCC’s Web site at
                                                the same-day settlement of payment                      Proposed Rule Change and Timing for
                                                                                                                                                              http://www.theocc.com/components/
                                                obligations.7 As stated above, OCC                      Commission Action
                                                                                                                                                              docs/legal/rules_and_bylaws/sr_occ_17_
                                                believes that it could be foreseeable,                     Within 45 days of the date of                      017.pdf.
                                                though extremely unlikely, that a bank                  publication of this notice in the Federal                All comments received will be posted
                                                or securities or commodities clearing                   Register or within such longer period                 without change. Persons submitting
                                                organization may fail to make timely                    up to 90 days (i) as the Commission may               comments are cautioned that we do not
                                                settlement with OCC as the result of an                 designate if it finds such longer period              redact or edit personal identifying
                                                event that does not result in a loss to                 to be appropriate and publishes its                   information from comment submissions.
                                                OCC from the bankruptcy, insolvency,                    reasons for so finding or (ii) as to which            You should submit only information
                                                resolution, suspension of operations or                 the self-regulatory organization                      that you wish to make available
                                                similar event of such bank or securities                consents, the Commission will:                        publicly.
                                                or commodities clearing organization.                      (A) By order approve or disapprove                    All submissions should refer to File
                                                The proposed rule change would                          the proposed rule change, or                          Number SR–OCC–2017–017 and should
                                                improve OCC’s ability to address such                      (B) institute proceedings to determine             be submitted on or before November 22,
                                                situations by expanding OCC’s                           whether the proposed rule change                      2017.
                                                borrowing authority to enable OCC to                    should be disapproved.                                  For the Commission by the Division of
                                                borrow against the Clearing Fund in                     IV. Solicitation of Comments                          Trading and Markets, pursuant to delegated
                                                order to avoid disrupting its ordinary                                                                        authority.9
                                                settlement cycle (and thusly, to avoid                    Interested persons are invited to                   Eduardo A. Aleman,
                                                imposing the same disruption on                         submit written data, views, and                       Assistant Secretary.
                                                Clearing Members).                                      arguments concerning the foregoing,
                                                                                                                                                              [FR Doc. 2017–23736 Filed 10–31–17; 8:45 am]
                                                   The proposed rule change is not                      including whether the proposed rule
                                                                                                                                                              BILLING CODE 8011–01–P
                                                inconsistent with the existing rules of                 change is consistent with the Act.
                                                OCC, including any other rules                          Comments may be submitted by any of
                                                proposed to be amended.                                 the following methods:                                SECURITIES AND EXCHANGE
                                                (B) Clearing Agency’s Statement on                      Electronic Comments                                   COMMISSION
                                                Burden on Competition                                     • Use the Commissions Internet                      [Release No. 34–81950; File No. SR–
                                                   Section 17A(b)(3)(I) of the Act 8                    comment form (http://www.sec.gov/                     BatsBZX–2017–71]
                                                requires that the rules of a clearing                   rules/sro.shtml); or
                                                                                                          • Send an email to rule-comments@                   Self-Regulatory Organizations; Cboe
                                                agency not impose any burden on                                                                               BZX Exchange, Inc.; Notice of Filing
                                                competition not necessary or                            sec.gov. Please include File Number SR–
                                                                                                        OCC–2017–017 on the subject line.                     and Immediate Effectiveness of a
                                                appropriate in furtherance of the                                                                             Proposed Rule Change To Update Rule
                                                purposes of the Act. OCC does not                       Paper Comments                                        21.1 To Adopt a New Time in Force
                                                believe the proposed rule change would
                                                have any impact or impose any burden                      • Send paper comments in triplicate                 Applicable to the Exchange’s Equity
                                                                                                        to Secretary, Securities and Exchange                 Options Platform
                                                on competition. The primary purpose of
                                                the proposed rule change is to enhance                  Commission, 100 F Street NE.,                         October 26, 2017.
                                                the existing tools OCC has to address                   Washington, DC 20549–1090.                               Pursuant to Section 19(b)(1) of the
                                                liquidity shortfalls by expanding the                   All submissions should refer to File                  Securities Exchange Act of 1934
                                                existing borrowing authority in OCC’s                   Number SR–OCC–2017–017. This file                     (‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                By-Laws to also authorize borrowing in                  number should be included on the                      notice is hereby given that on October
                                                                                                        subject line if email is used. To help the
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                                                the extraordinary event that OCC faces                                                                        20, 2017, Cboe BZX Exchange, Inc. (the
                                                a liquidity need in order to complete                   Commission process and review your                    ‘‘Exchange’’) (formerly known as Bats
                                                same day settlement. The proposed rule                  comments more efficiently, please use                 BZX Exchange, Inc.) filed with the
                                                change would apply equally to all                       only one method. The Commission will                  Securities and Exchange Commission
                                                                                                        post all comments on the Commission’s
                                                  6 Id.                                                 Internet Web site (http://www.sec.gov/                  9 17 CFR 200.30–3(a)(12).
                                                  7 17 CFR 240.17Ad–22(e)(7)(viii).                     rules/sro.shtml). Copies of the                         1 15 U.S.C. 78s(b)(1).
                                                  8 15 U.S.C. 78q–1(b)(3)(I).                           submission, all subsequent                              2 17 CFR 240.19b–4.




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                                                50706                       Federal Register / Vol. 82, No. 210 / Wednesday, November 1, 2017 / Notices

                                                (‘‘Commission’’) the proposed rule                         Exchange, Incorporated (now known as                  system, and, in general to protect
                                                change as described in Items I and II                      Cboe Exchange, Inc.) (‘‘Cboe Options’’)               investors and the public interest. In
                                                below, which Items have been prepared                      and C2 Options Exchange, Incorporated                 particular, consistent rules and
                                                by the Exchange. The Exchange has                          (now known as Cboe C2 Exchange, Inc.)                 functionality between the Exchange and
                                                designated this proposal as a ‘‘non-                       (‘‘C2 Options’’, and together with the                its affiliated exchanges will reduce
                                                controversial’’ proposed rule change                       Exchange, BYX, EDGA, EDGX, and Cboe                   complexity and help avoid potential
                                                pursuant to Section 19(b)(3)(A) of the                     Options the ‘‘Cboe Affiliated                         confusion by the Users of the Exchange
                                                Act 3 and Rule 19b–4(f)(6)(iii)                            Exchanges’’).5 The Cboe Affiliated                    that are also participants on other Cboe
                                                thereunder,4 which renders it effective                    Exchanges are working to align certain                Affiliated Exchanges.
                                                upon filing with the Commission. The                       system functionality, retaining only
                                                Commission is publishing this notice to                    intended differences between the Cboe                    The Exchange believes the proposed
                                                solicit comments on the proposed rule                      Affiliated Exchanges, in the context of a             amendment will reduce complexity and
                                                change from interested persons.                            technology migration. In the context of               increase the understanding of the
                                                                                                           such migration, the Exchange is working               Exchange’s operations for all Users of
                                                I. Self-Regulatory Organization’s                                                                                the Exchange. In particular, by offering
                                                Statement of the Terms of Substance of                     to align its systems to offer certain
                                                                                                           features currently offered by Cboe                    the same Times in Force as EDGX
                                                the Proposed Rule Change
                                                                                                           Options and C2 Options as well as                     Options, the Exchange will avoid
                                                   The Exchange filed a proposal to                        striving to maintain consistent                       confusion from market participants that
                                                update Rule 21.1 to adopt a new Time                       technology with the options platform                  participate on both the Exchange and
                                                in Force applicable to the Exchange’s                      operated by EDGX (‘‘EDGX Options’’).                  EDGX Options. In turn, when Cboe
                                                equity options platform (‘‘BZX                             Although the Exchange intentionally                   Options and C2 Options are migrated to
                                                Options’’).                                                offers certain features that differ from              the same technology as that of the
                                                   The text of the proposed rule change
                                                                                                           those offered by its affiliates and will              Exchange, Users of the Exchange and
                                                is available at the Exchange’s Web site
                                                                                                           continue to do so, the Exchange believes              other Cboe Affiliated Exchanges will
                                                at www.markets.cboe.com, at the
                                                                                                           that offering similar functionality to the            have access to similar functionality on
                                                principal office of the Exchange, and at
                                                                                                           extent practicable will reduce potential              all Cboe Affiliated Exchanges. As such,
                                                the Commission’s Public Reference
                                                                                                           confusion for Users.                                  the proposed rule change would foster
                                                Room.                                                         The Exchange proposes to amend                     cooperation and coordination with
                                                II. Self-Regulatory Organization’s                         Exchange Rule 21.1, Definitions, to add               persons engaged in facilitating
                                                Statement of the Purpose of, and                           a new Time in Force, namely the time
                                                                                                                                                                 transactions in securities and would
                                                Statutory Basis for, the Proposed Rule                     in force of ‘‘At the Open’’ or ‘‘OPG’’.
                                                                                                              As proposed, ‘‘At the Open’’ or                    remove impediments to and perfect the
                                                Change
                                                                                                           ‘‘OPG’’ shall mean, for an order so                   mechanism of a free and open market
                                                   In its filing with the Commission, the                                                                        and a national market system.
                                                Exchange included statements                               designated, an order that shall only
                                                concerning the purpose of and basis for                    participate in the opening process on                 B. Self-Regulatory Organization’s
                                                the proposed rule change and discussed                     the Exchange. An OPG order not                        Statement on Burden on Competition
                                                any comments it received on the                            executed in the opening process will be
                                                proposed rule change. The text of these                    cancelled. The Exchange’s affiliate,                    The Exchange does not believe that
                                                statements may be examined at the                          EDGX Options, recently received                       the proposed rule change will impose
                                                places specified in Item IV below. The                     approval of various rule changes,                     any burden on competition that is not
                                                Exchange has prepared summaries, set                       including the adoption of a Time in                   necessary or appropriate in furtherance
                                                forth in Sections A, B, and C below, of                    Force of OPG that is identical to the                 of the purposes of the Act. The
                                                the most significant parts of such                         Exchange’s proposed rule.6 The                        Exchange notes that the proposal will
                                                statements.                                                Exchange notes that other options                     promote consistency between the
                                                                                                           exchanges also offer Times in Force                   Exchange and its affiliated exchanges,
                                                A. Self-Regulatory Organization’s                          that, similar to OPG, limit an order to
                                                Statement of the Purpose of, and                                                                                 and is part of a larger technology
                                                                                                           participating in an exchange’s opening                integration that will ultimately reduce
                                                Statutory Basis for, the Proposed Rule                     process.7
                                                Change                                                                                                           complexity for Users of the Exchange
                                                                                                           2. Statutory Basis                                    that are also participants on other Cboe
                                                1. Purpose                                                                                                       Affiliated Exchanges. The Exchange
                                                                                                              The Exchange believes that its
                                                   In 2016, the Exchange and its                           proposal is consistent with Section 6(b)              does not believe that the proposed
                                                affiliates Bats BYX Exchange, Inc. (now                    of the Act 8 in general, and furthers the             changes will have any direct impact on
                                                known as Cboe BYX Exchange, Inc.)                          objectives of Section 6(b)(5) of the Act 9            competition. Thus, the Exchange does
                                                (‘‘BYX’’), Bats EDGA Exchange, Inc.                        in particular, in that it is designed to              not believe that the proposal creates any
                                                (now known as Cboe EDGA Exchange,                          promote just and equitable principles of              significant impact on competition.
                                                Inc.) (‘‘EDGA’’), and Bats EDGX                            trade, to remove impediments to and
                                                Exchange, Inc. (now known as Cboe                                                                                C. Self-Regulatory Organization’s
                                                                                                           perfect the mechanism of a free and
                                                EDGX Exchange, Inc.) (‘‘EDGX’’)                                                                                  Statement on Comments on the
                                                                                                           open market and a national market
                                                received approval to affect a merger (the                                                                        Proposed Rule Change Received From
                                                ‘‘Merger’’) of the Exchange’s indirect                       5 See Securities Exchange Act Release No. 79585     Members, Participants, or Others
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                                                parent company, Bats Global Markets,                       (December 16, 2016), 81 FR 93988 (December 22,
                                                Inc. (‘‘BGM’’), with CBOE Holdings, Inc.                   2016) (SR–BatsBZX–2016–68; SR–BatsBYX–2016–             The Exchange has not solicited, and
                                                (now known as Cboe Global Markets,                         29; SR–BatsEDGA–2016–24; SR–BatsEDGX–2016–            does not intend to solicit, comments on
                                                                                                           60).                                                  this proposed rule change. The
                                                Inc.) (‘‘CBOE Holdings’’), the direct                        6 See Securities Exchange Act Release No. 81891
                                                parent of Chicago Board Options                            (October 17, 2017) (SR–Bats–EDGX–2017–29).
                                                                                                                                                                 Exchange has not received any written
                                                                                                             7 See, e.g., C2 Rule 6.10(c)(7); ISE Rule 715(o).   comments from members or other
                                                  3 15   U.S.C. 78s(b)(3)(A).                                8 15 U.S.C. 78f(b).                                 interested parties.
                                                  4 17   CFR 240.19b–4(f)(6)(iii).                           9 15 U.S.C. 78f(b)(5).




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                                                                          Federal Register / Vol. 82, No. 210 / Wednesday, November 1, 2017 / Notices                                                  50707

                                                III. Date of Effectiveness of the                       IV. Solicitation of Comments                            For the Commission, by the Division of
                                                Proposed Rule Change and Timing for                                                                           Trading and Markets, pursuant to delegated
                                                Commission Action                                         Interested persons are invited to                   authority.14
                                                                                                        submit written data, views, and                       Eduardo A. Aleman,
                                                   Because the foregoing proposed rule                  arguments concerning the foregoing,                   Assistant Secretary.
                                                change does not: (i) Significantly affect               including whether the proposed rule                   [FR Doc. 2017–23732 Filed 10–31–17; 8:45 am]
                                                the protection of investors or the public               change is consistent with the Act.                    BILLING CODE 8011–01–P
                                                interest; (ii) impose any significant                   Comments may be submitted by any of
                                                burden on competition; and (iii) become                 the following methods:
                                                operative for 30 days from the date on                                                                        SECURITIES AND EXCHANGE
                                                which it was filed, or such shorter time                Electronic Comments                                   COMMISSION
                                                as the Commission may designate, it has
                                                                                                          • Use the Commission’s Internet
                                                become effective pursuant to Section                                                                          [Release No. 34–81955; File No. SR–OCC–
                                                                                                        comment form (http://www.sec.gov/
                                                19(b)(3)(A) of the Act and Rule 19b–                                                                          2017–010]
                                                4(f)(6) thereunder.10                                   rules/sro.shtml); or
                                                   A proposed rule change filed                           • Send an email to rule-comments@                   Self-Regulatory Organizations; The
                                                                                                        sec.gov. Please include File Number SR–               Options Clearing Corporation; Notice
                                                pursuant to Rule 19b–4(f)(6) under the
                                                                                                        BatsBZX–2017–71 on the subject line.                  of Filing of Proposed Rule Change
                                                Act 11 normally does not become
                                                                                                                                                              Related to The Options Clearing
                                                operative for 30 days after the date of its             Paper Comments                                        Corporation’s Default Management
                                                filing. However, Rule 19b–4(f)(6)(iii) 12
                                                                                                          • Send paper comments in triplicate                 Policy
                                                permits the Commission to designate a
                                                shorter time if such action is consistent               to Secretary, Securities and Exchange                 October 26, 2017.
                                                with the protection of investors and the                Commission, 100 F Street NE.,                            Pursuant to Section 19(b)(1) of the
                                                public interest. The Exchange has asked                 Washington, DC 20549–1090.                            Securities Exchange Act of 1934
                                                the Commission to waive the 30-day                                                                            (‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                operative delay so that the proposal may                All submissions should refer to File
                                                                                                        Number SR–BatsBZX–2017–71. This file                  notice is hereby given that on October
                                                become operative immediately upon                                                                             12, 2017, The Options Clearing
                                                filing. The Commission notes that the                   number should be included on the
                                                                                                                                                              Corporation (‘‘OCC’’) filed with the
                                                proposed rule change is based on EDGX                   subject line if email is used. To help the
                                                                                                                                                              Securities and Exchange Commission
                                                Rule 21.1(f)(6) and is identical to such                Commission process and review your
                                                                                                                                                              (‘‘Commission’’) the proposed rule
                                                rule. Thus, the Commission believes                     comments more efficiently, please use                 change as described in Items I, II, and
                                                that waiver of the operative delay is                   only one method. The Commission will                  III below, which Items have been
                                                consistent with the protection of                       post all comments on the Commission’s                 prepared primarily by OCC. The
                                                investors and the public because the                    Internet Web site (http://www.sec.gov/                Commission is publishing this notice to
                                                proposal does not present any new or                    rules/sro.shtml). Copies of the                       solicit comments on the proposed rule
                                                novel issues that have not been                         submission, all subsequent                            change from interested persons.
                                                previously considered by the                            amendments, all written statements
                                                Commission. Therefore, the                              with respect to the proposed rule                     I. Clearing Agency’s Statement of the
                                                Commission hereby waives the 30-day                     change that are filed with the                        Terms of Substance of the Proposed
                                                operative delay and designates the                                                                            Rule Change
                                                                                                        Commission, and all written
                                                proposal operative upon filing.13                       communications relating to the                          This proposed rule change by The
                                                   At any time within 60 days of the                    proposed rule change between the                      Options Clearing Corporation (‘‘OCC’’)
                                                filing of the proposed rule change, the                 Commission and any person, other than                 would formalize and update OCC’s
                                                Commission summarily may                                those that may be withheld from the                   Default Management Policy, which
                                                temporarily suspend such rule change if                 public in accordance with the                         would promote compliance with
                                                it appears to the Commission that such                  provisions of 5 U.S.C. 552, will be                   multiple requirements applicable to
                                                action is necessary or appropriate in the               available for Web site viewing and                    OCC under Rule 17Ad–22, including
                                                public interest, for the protection of                  printing in the Commission’s Public                   Rules 17Ad–22(e)(4)(ix) (Replenishment
                                                investors, or otherwise in furtherance of               Reference Room, 100 F Street NE.,                     of Resources) and (e)(13) (Default
                                                the purposes of the Act. If the                                                                               Management).3 The Default
                                                                                                        Washington, DC 20549 on official
                                                Commission takes such action, the                                                                             Management Policy is included as
                                                                                                        business days between the hours of
                                                Commission shall institute proceedings                                                                        confidential Exhibit 5.4
                                                                                                        10:00 a.m. and 3:00 p.m. Copies of the
                                                to determine whether the proposed rule                                                                          The proposed rule change does not
                                                                                                        filing also will be available for                     require any changes to the text of OCC’s
                                                change should be approved or                            inspection and copying at the principal
                                                disapproved.                                                                                                  By-Laws or Rules. All terms with initial
                                                                                                        office of the Exchange. All comments                  capitalization that are not otherwise
                                                  10 17 CFR 240.19b–4(f)(6). As required under Rule
                                                                                                        received will be posted without change.               defined herein have the same meaning
                                                19b–4(f)(6)(iii), the Exchange provided the
                                                                                                        Persons submitting comments are                       as set forth in the OCC By-Laws and
                                                Commission with written notice of its intent to file    cautioned that we do not redact or edit               Rules.5
                                                the proposed rule change, along with a brief            personal identifying information from
                                                description and the text of the proposed rule
                                                                                                        comment submissions. You should
sradovich on DSK3GMQ082PROD with NOTICES




                                                                                                                                                                14 17 CFR 200.30–3(a)(12).
                                                change, at least five business days prior to the date
                                                of filing of the proposed rule change, or such          submit only information that you wish                   1 15 U.S.C. 78s(b)(1).
                                                shorter time as designated by the Commission.           to make available publicly. All                         2 17 CFR 240.19b–4.
                                                  11 17 CFR 240.19b–4(f)(6).                                                                                    3 17 CFR 240.17Ad–22(e)(4)(ix) and (e)(13).
                                                                                                        submissions should refer to File
                                                  12 17 CFR 240.19b–4(f)(6)(iii).                                                                               4 The Commission notes that Exhibit 5 is
                                                                                                        Number SR–BatsBZX–2017–71 and
                                                  13 For purposes only of waiving the 30-day                                                                  included in the filing, not in this Notice.
                                                operative delay, the Commission has considered the      should be submitted on or before                        5 OCC’s By-Laws and Rules can be found on

                                                proposed rule’s impact on efficiency, competition,      November 22, 2017.                                    OCC’s public Web site: http://optionsclearing.com/
                                                and capital formation. See 15 U.S.C. 78c(f).                                                                  about/publications/bylaws.jsp.



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Document Created: 2017-11-01 02:02:50
Document Modified: 2017-11-01 02:02:50
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 50705 

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