82 FR 61647 - Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 21.5, Minimum Increments, To Extend the Penny Pilot Program

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 248 (December 28, 2017)

Page Range		61647-61649
FR Document		2017-28077
Federal Register, Volume 82 Issue 248 (Thursday, December 28, 2017)
[Federal Register Volume 82, Number 248 (Thursday, December 28, 2017)]
[Notices]
[Pages 61647-61649]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-28077]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82389; File No. SR-CboeBZX-2017-016]


Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 
21.5, Minimum Increments, To Extend the Penny Pilot Program

December 22, 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 December 14, 2017, Cboe BZX Exchange, Inc. (the ``Exchange'' or 
``BZX'') filed with the Securities and Exchange Commission 
(``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 for the BZX Options Market (``BZX 
Options'') to extend through June 30, 2018, the Penny Pilot Program 
(``Penny Pilot'') in options classes in certain issues (``Pilot 
Program'') previously approved by the Commission.\5\
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    \5\ The rules of BZX Options, including rules applicable to BZX 
Options' participation in the Penny Pilot, were approved on January 
26, 2010. See Securities Exchange Act Release No. 61419 (January 26, 
2010), 75 FR 5157 (February 1, 2010) (SR-BATS-2009-031). BZX Options 
commenced operations on February 26, 2010.
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    The text of the proposed rule change is available at the Exchange's 
website at www.markets.cboe.com, at the principal office of the 
Exchange, and at the Commission's Public Reference Room.

[[Page 61648]]

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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of this filing is to extend the Penny Pilot, which was 
previously approved by the Commission, through June 30, 2018, and to 
provide revised dates for adding replacement issues to the Pilot 
Program. The Exchange proposes that any Pilot Program issues that have 
been delisted may be replaced on the second trading day following 
January 1, 2018. The replacement issues will be selected based on 
trading activity for the most recent six month period excluding the 
month immediately preceding the replacement (i.e., beginning June 1, 
2017, and ending November 30, 2017).
    The Exchange represents that the Exchange has the necessary system 
capacity to continue to support operation of the Penny Pilot. The 
Exchange believes the benefits to public customers and other market 
participants who will be able to express their true prices to buy and 
sell options have been demonstrated to outweigh the increase in quote 
traffic.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with the 
requirements of the Act and the rules and regulations thereunder that 
are applicable to a national securities exchange, and, in particular, 
with the requirements of Section 6(b) of the Act.\6\ In particular, the 
proposal is consistent with Section 6(b)(5) of the Act,\7\ because it 
would promote just and equitable principles of trade, remove 
impediments to, and perfect the mechanism of, a free and open market 
and a national market system. The Exchange believes that the Pilot 
Program promotes just and equitable principles of trade by enabling 
public customers and other market participants to express their true 
prices to buy and sell options. Accordingly, the Exchange believes that 
the proposal is consistent with the Act because it will allow the 
Exchange to extend the Pilot Program prior to its expiration on June 
30, 2017. The Exchange notes that this proposal does not propose any 
new policies or provisions that are unique or unproven, but instead 
relates to the continuation of an existing program that operates on a 
pilot basis.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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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. In this regard, the Exchange 
notes that the rule change is being proposed in order to continue the 
Pilot Program, which is a competitive response to analogous programs 
offered by other options exchanges. The Exchange believes this proposed 
rule change is necessary to permit fair competition among the options 
exchanges.

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.

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

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \8\ and Rule 19b-4(f)(6) thereunder.\9\ 
Because the 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 prior to 
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, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b-
4(f)(6)(iii) thereunder.
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    \8\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \9\ 17 CFR 240.19b-4(f)(6).
    \10\ 15 U.S.C. 78s(b)(3)(A).
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    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative prior to 30 days after the date of the filing.\11\ 
However, pursuant to Rule 19b-4(f)(6)(iii),\12\ the Commission may 
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 believes 
that waiving the 30-day operative delay is consistent with the 
protection of investors and the public interest because doing so will 
allow the Pilot Program to continue without interruption in a manner 
that is consistent with the Commission's prior approval of the 
extension and expansion of the Pilot Program and will allow the 
Exchange and the Commission additional time to analyze the impact of 
the Pilot Program.\13\ Accordingly, the Commission designates the 
proposed rule change as operative upon filing with the Commission.\14\
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    \11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires the Exchange to give the Commission written notice of the 
Exchange's 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. The 
Exchange has satisfied this pre-filing requirement.
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ See Securities Exchange Act Release No. 61061 (November 24, 
2009), 74 FR 62857 (December 1, 2009) (SR-NYSEArca-2009-44). See 
also supra note 5.
    \14\ For purposes only of waiving the operative delay for this 
proposal, 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 under 
Section 19(b)(2)(B) \15\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \15\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act.

[[Page 61649]]

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-CboeBZX-2017-016 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-CboeBZX-2017-016. 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 website (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 website 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-CboeBZX-2017-016 and should be submitted 
on or before January 18, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-28077 Filed 12-27-17; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 82, No. 248 / Thursday, December 28, 2017 / Notices 61647

B. Self-Regulatory Organization’s change should be approved or For the Commission, by the Division of
Statement on Burden on Competition disapproved. Trading and Markets, pursuant to delegated
authority.41
The Exchange does not believe that IV. Solicitation of Comments Eduardo A. Aleman,
the proposed rule change will impose
any burden on competition that is not Interested persons are invited to Assistant Secretary.
necessary or appropriate in furtherance submit written data, views, and [FR Doc. 2017–28000 Filed 12–27–17; 8:45 am]
of the purpose of the Act. The Exchange arguments concerning the foregoing, BILLING CODE 8011–01–P

believes the proposed rule change will including whether the proposed rule
enhance competition by permitting change is consistent with the Act.
Exchange trading of additional types of Comments may be submitted by any of SECURITIES AND EXCHANGE
Units, Index-Linked Securities and the following methods: COMMISSION
Managed Trust Securities, which would Electronic Comments [Release No. 34–82389; File No. SR–
enhance competition among market CboeBZX–2017–016]
participants, to the benefit of investors • Use the Commission’s internet
and the marketplace. comment form (http://www.sec.gov/ Self-Regulatory Organizations; Cboe
rules/sro.shtml); or BZX Exchange, Inc.; Notice of Filing
C. Self-Regulatory Organization’s • Send an email to rule-comments@ and Immediate Effectiveness of a
Statement on Comments on the sec.gov. Please include File Number SR– Proposed Rule Change to Rule 21.5,
Proposed Rule Change Received From NYSE–2017–69 on the subject line. Minimum Increments, To Extend the
Members, Participants, or Others Penny Pilot Program
Paper Comments
No written comments were solicited
or received with respect to the proposed • Send paper comments in triplicate December 22, 2017.
rule change. to Secretary, Securities and Exchange Pursuant to Section 19(b)(1) of the
Commission, 100 F Street NE, Securities Exchange Act of 1934 (the
III. Date of Effectiveness of the Washington, DC 20549–1090. ‘‘Act’’),1 and Rule 19b–4 thereunder,2
Proposed Rule Change and Timing for All submissions should refer to File notice is hereby given that on December
Commission Action Number SR–NYSE–2017–69. This file 14, 2017, Cboe BZX Exchange, Inc. (the
The Exchange has filed the proposed number should be included on the ‘‘Exchange’’ or ‘‘BZX’’) filed with the
rule change pursuant to Section subject line if email is used. To help the Securities and Exchange Commission
19(b)(3)(A)(iii) of the Act 37 and Rule Commission process and review your (‘‘Commission’’) the proposed rule
19b–4(f)(6) thereunder.38 Because the comments more efficiently, please use change as described in Items I and II
proposed rule change does not: (i) only one method. The Commission will below, which Items have been prepared
Significantly affect the protection of post all comments on the Commission’s by the Exchange. The Exchange has
investors or the public interest; (ii) internet website (http://www.sec.gov/ designated this proposal as a ‘‘non-
impose any significant burden on rules/sro.shtml). Copies of the controversial’’ proposed rule change
competition; and (iii) become operative submission, all subsequent pursuant to Section 19(b)(3)(A) of the
prior to 30 days from the date on which amendments, all written statements Act 3 and Rule 19b–4(f)(6)(iii)
it was filed, or such shorter time as the with respect to the proposed rule thereunder,4 which renders it effective
Commission may designate, if change that are filed with the upon filing with the Commission. The
consistent with the protection of Commission, and all written Commission is publishing this notice to
investors and the public interest, the communications relating to the solicit comments on the proposed rule
proposed rule change has become proposed rule change between the change from interested persons.
effective pursuant to Section 19(b)(3)(A) Commission and any person, other than I. Self-Regulatory Organization’s
of the Act and Rule 19b–4(f)(6)(iii) those that may be withheld from the Statement of the Terms of Substance of
thereunder.39 public in accordance with the the Proposed Rule Change
At any time within 60 days of the provisions of 5 U.S.C. 552, will be
filing of such proposed rule change, the available for website viewing and The Exchange filed a proposal for the
Commission summarily may printing in the Commission’s Public BZX Options Market (‘‘BZX Options’’)
temporarily suspend such rule change if Reference Room, 100 F Street NE, to extend through June 30, 2018, the
it appears to the Commission that such Washington, DC 20549 on official Penny Pilot Program (‘‘Penny Pilot’’) in
action is necessary or appropriate in the business days between the hours of options classes in certain issues (‘‘Pilot
public interest, for the protection of 10:00 a.m. and 3:00 p.m. Copies of the Program’’) previously approved by the
investors, or otherwise in furtherance of filing also will be available for Commission.5
the purposes of the Act. If the inspection and copying at the principal The text of the proposed rule change
Commission takes such action, the office of the Exchange. All comments is available at the Exchange’s website at
Commission shall institute proceedings received will be posted without change. www.markets.cboe.com, at the principal
under Section 19(b)(2)(B) 40 of the Act to Persons submitting comments are office of the Exchange, and at the
determine whether the proposed rule cautioned that we do not redact or edit Commission’s Public Reference Room.
personal identifying information from
37 15 1 15 U.S.C. 78s(b)(1).
U.S.C. 78s(b)(3)(A)(iii). comment submissions. You should
38 17 2 17 CFR 240.19b–4.
CFR 240.19b–4(f)(6). submit only information that you wish
sradovich on DSK3GMQ082PROD with NOTICES

39 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 3 15 U.S.C. 78s(b)(3)(A).

4(f)(6) requires a self-regulatory organization to give
to make available publicly. All 4 17 CFR 240.19b–4(f)(6)(iii).

the Commission written notice of its intent to file submissions should refer to File 5 The rules of BZX Options, including rules
the proposed rule change at least five business days Number SR–NYSE–2017–69 and should applicable to BZX Options’ participation in the
prior to the date of filing of the proposed rule be submitted on or before January 18, Penny Pilot, were approved on January 26, 2010.
change, or such shorter time as designated by the See Securities Exchange Act Release No. 61419
Commission. The Exchange has satisfied this
2018.
(January 26, 2010), 75 FR 5157 (February 1, 2010)
requirement. (SR–BATS–2009–031). BZX Options commenced
40 15 U.S.C. 78s(b)(2)(B). 41 17 CFR 200.30–3(a)(12). operations on February 26, 2010.

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61648 Federal Register / Vol. 82, No. 248 / Thursday, December 28, 2017 / Notices

II. Self-Regulatory Organization’s Program promotes just and equitable A proposed rule change filed under
Statement of the Purpose of, and principles of trade by enabling public Rule 19b–4(f)(6) normally does not
Statutory Basis for, the Proposed Rule customers and other market participants become operative prior to 30 days after
Change to express their true prices to buy and the date of the filing.11 However,
In its filing with the Commission, the sell options. Accordingly, the Exchange pursuant to Rule 19b–4(f)(6)(iii),12 the
Exchange included statements believes that the proposal is consistent Commission may designate a shorter
concerning the purpose of and basis for with the Act because it will allow the time if such action is consistent with the
the proposed rule change and discussed Exchange to extend the Pilot Program protection of investors and the public
any comments it received on the prior to its expiration on June 30, 2017. interest. The Exchange has asked the
proposed rule change. The text of these The Exchange notes that this proposal Commission to waive the 30-day
statements may be examined at the does not propose any new policies or operative delay so that the proposal may
places specified in Item IV below. The provisions that are unique or unproven, become operative immediately upon
Exchange has prepared summaries, set but instead relates to the continuation of filing. The Commission believes that
forth in Sections A, B, and C below, of an existing program that operates on a waiving the 30-day operative delay is
the most significant parts of such pilot basis. consistent with the protection of
statements. investors and the public interest
B. Self-Regulatory Organization’s
because doing so will allow the Pilot
A. Self-Regulatory Organization’s Statement on Burden on Competition
Program to continue without
Statement of the Purpose of, and the The Exchange does not believe that interruption in a manner that is
Statutory Basis for, the Proposed Rule the proposed rule change will impose consistent with the Commission’s prior
Change any burden on competition that is not approval of the extension and expansion
1. Purpose necessary or appropriate in furtherance of the Pilot Program and will allow the
of the purposes of the Act. In this Exchange and the Commission
The purpose of this filing is to extend additional time to analyze the impact of
regard, the Exchange notes that the rule
the Penny Pilot, which was previously the Pilot Program.13 Accordingly, the
change is being proposed in order to
approved by the Commission, through Commission designates the proposed
continue the Pilot Program, which is a
June 30, 2018, and to provide revised rule change as operative upon filing
competitive response to analogous
dates for adding replacement issues to with the Commission.14
programs offered by other options
the Pilot Program. The Exchange
exchanges. The Exchange believes this At any time within 60 days of the
proposes that any Pilot Program issues
proposed rule change is necessary to filing of the proposed rule change, the
that have been delisted may be replaced
permit fair competition among the Commission summarily may
on the second trading day following
options exchanges. temporarily suspend such rule change if
January 1, 2018. The replacement issues
will be selected based on trading C. Self-Regulatory Organization’s it appears to the Commission that such
activity for the most recent six month Statement on Comments on the action is necessary or appropriate in the
period excluding the month Proposed Rule Change Received From public interest, for the protection of
immediately preceding the replacement Members, Participants or Others investors, or otherwise in furtherance of
(i.e., beginning June 1, 2017, and ending the purposes of the Act. If the
November 30, 2017). The Exchange has not solicited, and Commission takes such action, the
The Exchange represents that the does not intend to solicit, comments on Commission shall institute proceedings
Exchange has the necessary system this proposed rule change. The under Section 19(b)(2)(B) 15 of the Act to
capacity to continue to support Exchange has not received any written determine whether the proposed rule
operation of the Penny Pilot. The comments from members or other change should be approved or
Exchange believes the benefits to public interested parties. disapproved.
customers and other market participants III. Date of Effectiveness of the IV. Solicitation of Comments
who will be able to express their true Proposed Rule Change and Timing for
prices to buy and sell options have been Commission Action Interested persons are invited to
demonstrated to outweigh the increase submit written data, views, and
in quote traffic. The Exchange has filed the proposed arguments concerning the foregoing,
rule change pursuant to Section including whether the proposed rule
2. Statutory Basis 19(b)(3)(A)(iii) of the Act 8 and Rule change is consistent with the Act.
The Exchange believes that its 19b–4(f)(6) thereunder.9 Because the
proposal is consistent with the proposed rule change does not: (i) 11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–

requirements of the Act and the rules Significantly affect the protection of 4(f)(6)(iii) requires the Exchange to give the
and regulations thereunder that are investors or the public interest; (ii) Commission written notice of the Exchange’s intent
impose any significant burden on to file the proposed rule change along with a brief
applicable to a national securities description and the text of the proposed rule
exchange, and, in particular, with the competition; and (iii) become operative change, at least five business days prior to the date
requirements of Section 6(b) of the Act.6 prior to 30 days from the date on which of filing of the proposed rule change, or such
In particular, the proposal is consistent it was filed, or such shorter time as the shorter time as designated by the Commission. The
Commission may designate if consistent Exchange has satisfied this pre-filing requirement.
with Section 6(b)(5) of the Act,7 because 12 17 CFR 240.19b–4(f)(6)(iii).
it would promote just and equitable with the protection of investors and the 13 See Securities Exchange Act Release No. 61061
sradovich on DSK3GMQ082PROD with NOTICES

principles of trade, remove public interest, the proposed rule (November 24, 2009), 74 FR 62857 (December 1,
impediments to, and perfect the change has become effective pursuant to 2009) (SR–NYSEArca–2009–44). See also supra
mechanism of, a free and open market Section 19(b)(3)(A) of the Act 10 and note 5.
14 For purposes only of waiving the operative
and a national market system. The Rule 19b–4(f)(6)(iii) thereunder.
delay for this proposal, the Commission has
Exchange believes that the Pilot considered the proposed rule’s impact on
8 15 U.S.C. 78s(b)(3)(A)(iii). efficiency, competition, and capital formation. See
6 15 U.S.C. 78f(b). 9 17 CFR 240.19b–4(f)(6). 15 U.S.C. 78c(f).
7 15 U.S.C. 78f(b)(5). 10 15 U.S.C. 78s(b)(3)(A). 15 15 U.S.C. 78s(b)(2)(B).

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Comments may be submitted by any of SECURITIES AND EXCHANGE 1014 (‘‘Imposition of Fines for Minor
the following methods: COMMISSION Rule Violations’’).7 According to the
Exchange’s proposed MRVP, under
Electronic Comments [Release No. 34–82384; File No. 4–714]
Exchange Rule 1014, the Exchange may
• Use the Commission’s internet Self-Regulatory Organizations; Miami impose a fine (not to exceed $2,500) on
comment form (http://www.sec.gov/ International Securities Exchange, any Member, or person associated with
rules/sro.shtml); or LLC; Order Declaring Effective a Minor or employed by a Member, for any rule
• Send an email to rule-comments@ Rule Violation Plan listed in Rule 1014(d).8 The Exchange
sec.gov. Please include File Number SR– shall serve the person against whom a
December 21, 2017. fine is imposed with a written statement
CboeBZX–2017–016 on the subject line. On November 16, 2017, Miami setting forth the rule or rules violated,
Paper Comments International Securities Exchange, LLC the act or omission constituting each
(‘‘Exchange’’) filed with the Securities such violation, the fine imposed, and
• Send paper comments in triplicate and Exchange Commission the date by which such determination
to Secretary, Securities and Exchange (‘‘Commission’’) a proposed minor rule
Commission, 100 F Street NE, becomes final or by which such
violation plan (‘‘MRVP’’ or ‘‘Plan’’) determination must be contested. If the
Washington, DC 20549–1090. pursuant to Section 19(d)(1) of the
person against whom the fine is
All submissions should refer to File Securities Exchange Act of 1934
imposed pays the fine, the payment
Number SR–CboeBZX–2017–016. This (‘‘Act’’) 1 and Rule 19d–1(c)(2)
shall be deemed to be a waiver of the
file number should be included on the thereunder.2 The proposed MRVP was
published for comment on November person’s right to a disciplinary
subject line if email is used. To help the proceeding and any review of the matter
Commission process and review your 28, 2017.3 The Commission received no
comments on the proposal. This order under the Exchange rules. Any person
comments more efficiently, please use against whom a fine is imposed may
only one method. The Commission will declares the Exchange’s proposed MRVP
effective. contest the Exchange’s determination by
post all comments on the Commission’s filing with the Exchange a written
internet website (http://www.sec.gov/ The Exchange’s MRVP specifies the
rule violations which will be included answer, at which point the matter shall
rules/sro.shtml). Copies of the proceed under the rules governing
submission, all subsequent in the Plan and will have sanctions not
exceeding $2,500. Any violations which formal disciplinary proceedings.
amendments, all written statements
with respect to the proposed rule are resolved under the MRVP would not Once the Exchange’s MRVP is
change that are filed with the be subject to the provisions of Rule 19d– effective, the Exchange will provide to
Commission, and all written 1(c)(1) of the Act,4 which requires that the Commission a quarterly report for
communications relating to the a self-regulatory organization (‘‘SRO’’) any actions taken on minor rule
proposed rule change between the promptly file notice with the violations under the MRVP. The
Commission and any person, other than Commission of any final disciplinary quarterly report will include: The
those that may be withheld from the action taken with respect to any person disposition date, the name of the firm/
public in accordance with the or organization.5 In accordance with individual, the Exchange’s internal
provisions of 5 U.S.C. 552, will be Rule 19d–1(c)(2) under the Act,6 the enforcement number, the review period,
available for website viewing and Exchange proposed to designate certain the nature of the violation type, the
printing in the Commission’s Public specified rule violations as eligible for number of the rule that was violated, the
Reference Room, 100 F Street NE, consideration as minor rule violations,
Washington, DC 20549, on official and requested that it be relieved of the 7 The Exchange received its grant of registration

business days between the hours of prompt reporting requirements on December 3, 2012, which included approving
10:00 a.m. and 3:00 p.m. Copies of the regarding such violations, provided it the rules that govern the Exchange. See Securities
gives notice of the violations to the Exchange Act Release No. 68341 (December 3,
filing also will be available for 2012), 77 FR 73065 (December 7, 2012). See also
inspection and copying at the principal Commission on a quarterly basis. Securities Exchange Act Release No. 70357
office of the Exchange. All comments The Exchange proposed to include in (September 10, 2013), 78 FR 56960 (September 16,
received will be posted without change. its MRVP the procedures and violations 2013) (Notice of Filing and Immediate Effectiveness
currently included in Exchange Rule of a Proposed Rule Change to Amend Exchange
Persons submitting comments are Rule 1014).
cautioned that we do not redact or edit 1 15
8 While Rule 1014 allows the Exchange to
U.S.C. 78s(d)(1)
personal identifying information from 2 17 CFR 240.19d–1(c)(2).
administer fines up to $5,000, the Exchange is only
comment submissions. You should seeking relief from the reporting requirements of
3 See Securities Exchange Act Release No. 82145
paragraph (c)(1) of Rule 19d–1 for fines
submit only information that you wish (November 22, 2017), 82 FR 56291 (‘‘Notice’’). administered under Rule 1014(d) that do not exceed
to make available publicly. All 4 17 CFR 240.19d–1(c)(1).
$2,500.
submissions should refer to File 5 The Commission adopted amendments to
Under the proposed MRVP, violations of the
Number SR–CboeBZX–2017–016 and paragraph (c) of Rule 19d–1 to allow SROs to following rules would be appropriate for
submit for Commission approval plans for the disposition under the MRVP: Rule 307 (Position
should be submitted on or before abbreviated reporting of minor disciplinary Limits); Rule 803 (Focus Reports); Rule 804
January 18, 2018. infractions. See Securities Exchange Act Release (Requests for Trade Data); Rule 520 (Order Entry);
No. 21013 (June 1, 1984), 49 FR 23828 (June 8, Rule 603 (Quotation Parameters); Rule 605
For the Commission, by the Division of 1984). Any disciplinary action taken by an SRO (Execution of Orders in Appointed Options); Rule
Trading and Markets, pursuant to delegated against any person for violation of a rule of the SRO 314 (Mandatory Systems Testing); Rule 700
sradovich on DSK3GMQ082PROD with NOTICES

authority.16 which has been designated as a minor rule violation (Exercise of Option Contracts); Rule 309 (Exercise
Eduardo A. Aleman, pursuant to a plan filed with and declared effective Limits); Rule 310 (Reports Related to Position
by the Commission is not considered ‘‘final’’ for Limits); Rule 403 (Trading in Restricted Classes);
Assistant Secretary. purposes of Section 19(d)(1) of the Act if the Rule 604 (Market Maker Quotations); and Rules
[FR Doc. 2017–28077 Filed 12–27–17; 8:45 am] sanction imposed consists of a fine not exceeding 1301, 1302, and 1303 (Failure to Timely File
$2,500 and the sanctioned person has not sought an Amendments to Form U4, Form U5, and Form BD).
BILLING CODE 8011–01–P
adjudication, including a hearing, or otherwise According to the Exchange, Conduct and Decorum
exhausted his administrative remedies. Policies under Rule 1014(d)(4) are excluded from
16 17 CFR 200.30–3(a)(12). 6 17 CFR 240.19d–1(c)(2). the proposed MRVP. See Notice, supra note 3.

VerDate Sep<11>2014 18:14 Dec 27, 2017 Jkt 244001 PO 00000 Frm 00117 Fmt 4703 Sfmt 4703 E:\FR\FM\28DEN1.SGM 28DEN1
Document Created: 2017-12-28 00:43:33
Document Modified: 2017-12-28 00:43:33
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 61647