82 FR 9803 - Self-Regulatory Organizations; CBOE Futures Exchange, LLC; Notice of Filing of a Proposed Rule Change Regarding Block Trades

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 25 (February 8, 2017)

Page Range		9803-9804
FR Document		2017-02536
Federal Register, Volume 82 Issue 25 (Wednesday, February 8, 2017)
[Federal Register Volume 82, Number 25 (Wednesday, February 8, 2017)]
[Notices]
[Pages 9803-9804]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-02536]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79931; File No. SR-CFE-2017-001]


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

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

    The Exchange proposes to amend CFE Rule 415 related to Block 
Trades. The scope of this filing is limited solely to the application 
of the proposed rule amendments to security futures that may be traded 
on CFE. Although no security futures are currently listed for trading 
on CFE, CFE may list security futures for trading in the future. The 
text of the proposed rule change is attached as Exhibit 4 to the filing 
but is not attached to the publication of this notice.

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

    In its filing with the Commission, CFE included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. CFE has prepared summaries, set forth in Sections A, B, 
and C below, of the most significant aspects of such statements.

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

1. Purpose
    CFE Rule 415 sets forth requirements relating to Block Trades. The 
proposed rule change adds paragraph (l) to Rule 415 which relates to 
the front running of Block Trades. Proposed Rule 415(l) makes clear 
that no person may engage in the front running of a Block Trade when 
acting on material non-public information regarding an impending 
transaction by another person, acting on non-public information 
obtained through a confidential employee/employer relationship, broker/
customer relationship, or in breach of a pre-existing duty. Proposed 
Rule 415(l) would apply to all products traded on CFE, including both 
non-security futures and security futures.
    The proposed rule change is being made in connection with other 
proposed amendments to Rule 415 which are not included as part of this 
proposed rule change. Those proposed amendments are to be included in 
new paragraph (k) of Rule 415.\3\ The provisions of proposed Rule 
415(k) are intended to clarify certain restrictions relating to 
disclosure and use of non-public information regarding Block Trades and 
the extent to which counterparties to a Block Trade may enter into pre-
hedging or anticipatory hedging transactions in connection with Block 
Trades. Proposed Rule 415(k) would only apply to non-security futures, 
and the Exchange is including a sentence in proposed Rule 415(k) to

[[Page 9804]]

make clear that its provisions do not apply to security futures.
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    \3\ Paragraph (k) will be filed simultaneously with paragraph 
(l) with CFTC which is why the provisions of paragraph (l) are 
marked as existing rule text in Exhibit 4.
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    The Exchange is also re-lettering certain paragraphs in Rule 415 to 
accommodate for the new provisions that are being added.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\4\ in general, and furthers the 
objectives of Sections 6(b)(5) \5\ and 6(b)(7) \6\ in particular in 
that it is designed:
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
    \6\ 15 U.S.C. 78f(b)(7).
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     To prevent fraudulent and manipulative acts and practices,
     to promote just and equitable principles of trade, and
     to remove impediments to and perfect the mechanism of a 
free and open market and a national market system, and in general, to 
protect investors and the public interest.
    The Exchange believes that the proposed rule change would provide 
additional guidance to CFE market participants related to the front 
running of Block Trades. The proposed rule change would also contribute 
to enhanced protection of CFE's market and market participants.

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

    CFE does not believe that the proposed rule change will impose any 
burden on competition not necessary or appropriate in furtherance of 
the purposes of the Act, in that the proposed rule change is consistent 
with similar guidance provided by other designated contracts 
markets.\7\ The Exchange believes that the proposed rule change is 
equitable and not unfairly discriminatory in that the rule amendments 
included in the proposed rule change would apply equally to all market 
participants.
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    \7\ These designated contract markets are Chicago Mercantile 
Exchange, Inc. (``CME''), The Board of Trade of the City of Chicago, 
Inc., New York Mercantile Exchange, Inc., New York Mercantile 
Exchange, Inc., and Commodity Exchange, Inc. See, CME Submission No. 
16-470 (November 15, 2016), which is available on the CFTC's Web 
site.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

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

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

    The proposed rule change will become operative on February 2, 2017. 
At any time within 60 days of the date of effectiveness of the proposed 
rule change, the Commission, after consultation with the CFTC, may 
summarily abrogate the proposed rule change and require that the 
proposed rule change be refiled in accordance with the provisions of 
Section 19(b)(1) of the Act.\8\
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    \8\ 15 U.S.C. 78s(b)(1).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-CFE-2017-001 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-CFE-2017-001. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549, on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-CFE-2017-001, and should be 
submitted on or before March 1, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(73).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2017-02536 Filed 2-7-17; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 82, No. 25 / Wednesday, February 8, 2017 / Notices 9803

III. Date of Effectiveness of the inspection and copying at the principal as Exhibit 4 to the filing but is not
Proposed Rule Change and Timing for office of the Exchange. All comments attached to the publication of this
Commission Action received will be posted without change; notice.
Within 45 days of the date of the Commission does not edit personal
identifying information from II. Self-Regulatory Organization’s
publication of this notice in the Federal Statement of the Purpose of, and
Register or within such longer period submissions. You should submit only
information that you wish to make Statutory Basis for, the Proposed Rule
up to 90 days (i) as the Commission may Change
available publicly. All submissions
designate if it finds such longer period
should refer to File Number SR–MIAX– In its filing with the Commission, CFE
to be appropriate and publishes its
2017–03 and should be submitted on or
reasons for so finding or (ii) as to which included statements concerning the
before March 1, 2017.
the self-regulatory organization purpose of and basis for the proposed
consents, the Commission will: For the Commission, by the Division of rule change and discussed any
(A) By order approve or disapprove Trading and Markets, pursuant to delegated comments it received on the proposed
authority.35
the proposed rule change, or rule change. The text of these statements
(B) institute proceedings to determine Robert W. Errett, may be examined at the places specified
whether the proposed rule change Deputy Secretary. in Item IV below. CFE has prepared
should be disapproved. [FR Doc. 2017–02542 Filed 2–7–17; 8:45 am] summaries, set forth in Sections A, B,
IV. Solicitation of Comments
BILLING CODE 8011–01–P and C below, of the most significant
aspects of such statements.
Interested persons are invited to
submit written data, views, and SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
arguments concerning the foregoing, COMMISSION Statement of the Purpose of, and
including whether the proposed rule Statutory Basis for, the Proposed Rule
[Release No. 34–79931; File No. SR–CFE–
change is consistent with the Act. 2017–001] Change
Comments may be submitted by any of 1. Purpose
the following methods: Self-Regulatory Organizations; CBOE
Futures Exchange, LLC; Notice of CFE Rule 415 sets forth requirements
Electronic Comments Filing of a Proposed Rule Change relating to Block Trades. The proposed
• Use the Commission’s Internet Regarding Block Trades rule change adds paragraph (l) to Rule
comment form (http://www.sec.gov/ 415 which relates to the front running
rules/sro.shtml); or February 2, 2017.
Pursuant to Section 19(b)(7) of the of Block Trades. Proposed Rule 415(l)
• Send an email to rule-comments@ makes clear that no person may engage
sec.gov. Please include File Number SR– Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on in the front running of a Block Trade
MIAX–2017–03 on the subject line. when acting on material non-public
January 19, 2017 CBOE Futures
Paper Comments Exchange, LLC (‘‘CFE’’ or ‘‘Exchange’’) information regarding an impending
filed with the Securities and Exchange transaction by another person, acting on
• Send paper comments in triplicate non-public information obtained
to Secretary, Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change described in through a confidential employee/
Commission, 100 F Street NE., employer relationship, broker/customer
Washington, DC 20549–1090. Items I, II, and III below, which Items
have been prepared by CFE. The relationship, or in breach of a pre-
All submissions should refer to File existing duty. Proposed Rule 415(l)
Commission is publishing this notice to
Number SR–MIAX–2017–03. This file would apply to all products traded on
solicit comments on the proposed rule
number should be included on the CFE, including both non-security
change from interested persons. CFE
subject line if email is used. To help the futures and security futures.
also has filed this proposed rule change
Commission process and review your
with the Commodity Futures Trading The proposed rule change is being
comments more efficiently, please use
Commission (‘‘CFTC’’). CFE filed a made in connection with other
only one method. The Commission will
written certification with the CFTC proposed amendments to Rule 415
post all comments on the Commission’s
under Section 5c(c) of the Commodity which are not included as part of this
Internet Web site (http://www.sec.gov/
Exchange Act (‘‘CEA’’) 2 on January 19, proposed rule change. Those proposed
rules/sro.shtml). Copies of the
2017. amendments are to be included in new
submission, all subsequent
I. Self-Regulatory Organization’s paragraph (k) of Rule 415.3 The
amendments, all written statements
Description of the Proposed Rule provisions of proposed Rule 415(k) are
with respect to the proposed rule
Change intended to clarify certain restrictions
change that are filed with the
relating to disclosure and use of non-
Commission, and all written The Exchange proposes to amend CFE public information regarding Block
communications relating to the Rule 415 related to Block Trades. The Trades and the extent to which
proposed rule change between the scope of this filing is limited solely to counterparties to a Block Trade may
Commission and any person, other than the application of the proposed rule enter into pre-hedging or anticipatory
those that may be withheld from the amendments to security futures that hedging transactions in connection with
public in accordance with the
asabaliauskas on DSK3SPTVN1PROD with NOTICES

may be traded on CFE. Although no Block Trades. Proposed Rule 415(k)
provisions of 5 U.S.C. 552, will be security futures are currently listed for would only apply to non-security
available for Web site viewing and trading on CFE, CFE may list security futures, and the Exchange is including
printing in the Commission’s Public futures for trading in the future. The text a sentence in proposed Rule 415(k) to
Reference Room, 100 F Street NE., of the proposed rule change is attached
Washington, DC 20549, on official 3 Paragraph (k) will be filed simultaneously with
business days between the hours of 35 17 CFR 200.30–3(a)(12). paragraph (l) with CFTC which is why the
10:00 a.m. and 3:00 p.m. Copies of such 1 15 U.S.C. 78s(b)(7).
provisions of paragraph (l) are marked as existing
filing will also be available for 2 7 U.S.C. 7a–2(c). rule text in Exhibit 4.

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9804 Federal Register / Vol. 82, No. 25 / Wednesday, February 8, 2017 / Notices

make clear that its provisions do not III. Date of Effectiveness of the office of the Exchange. All comments
apply to security futures. Proposed Rule Change and Timing for received will be posted without change;
The Exchange is also re-lettering Commission Action the Commission does not edit personal
certain paragraphs in Rule 415 to The proposed rule change will identifying information from
accommodate for the new provisions become operative on February 2, 2017. submissions. You should submit only
that are being added. At any time within 60 days of the date information that you wish to make
of effectiveness of the proposed rule available publicly. All submissions
2. Statutory Basis should refer to File Number SR–CFE–
change, the Commission, after
consultation with the CFTC, may 2017–001, and should be submitted on
The Exchange believes that the or before March 1, 2017.
proposed rule change is consistent with summarily abrogate the proposed rule
Section 6(b) of the Act,4 in general, and change and require that the proposed For the Commission, by the Division of
rule change be refiled in accordance Trading and Markets, pursuant to delegated
furthers the objectives of Sections authority.9
6(b)(5) 5 and 6(b)(7) 6 in particular in with the provisions of Section 19(b)(1)
of the Act.8 Robert W. Errett,
that it is designed:
Deputy Secretary.
• To prevent fraudulent and IV. Solicitation of Comments
[FR Doc. 2017–02536 Filed 2–7–17; 8:45 am]
manipulative acts and practices, Interested persons are invited to BILLING CODE 8011–01–P
• to promote just and equitable submit written data, views, and
principles of trade, and arguments concerning the foregoing,
• to remove impediments to and including whether the proposed rule SECURITIES AND EXCHANGE
perfect the mechanism of a free and change is consistent with the Act. COMMISSION
open market and a national market Comments may be submitted by any of
the following methods: [Release No. 34–79942; File No. SR–
system, and in general, to protect BatsEDGX–2017–11]
investors and the public interest. Electronic Comments
The Exchange believes that the • Use the Commission’s Internet Self-Regulatory Organizations; Bats
proposed rule change would provide comment form (http://www.sec.gov/ EDGX Exchange, Inc.; Notice of Filing
additional guidance to CFE market rules/sro.shtml); or and Immediate Effectiveness of a
participants related to the front running • Send an email to rule-comments@ Proposed Rule Change Related to
of Block Trades. The proposed rule sec.gov. Please include File Number SR– Functionality Offered by the
change would also contribute to CFE–2017–001 on the subject line. Exchange’s Options Platform To Adopt
enhanced protection of CFE’s market Qualified Contingent Cross Orders
and market participants. Paper Comments
February 2, 2017.
• Send paper comments in triplicate
B. Self-Regulatory Organization’s Pursuant to Section 19(b)(1) of the
to Secretary, Securities and Exchange
Statement on Burden on Competition Securities Exchange Act of 1934 (the
Commission, 100 F Street NE.,
‘‘Act’’),1 and Rule 19b–4 thereunder,2
CFE does not believe that the Washington, DC 20549–1090.
notice is hereby given that on February
proposed rule change will impose any All submissions should refer to File 1, 2017, Bats EDGX Exchange, Inc. (the
burden on competition not necessary or Number SR–CFE–2017–001. This file ‘‘Exchange’’ or ‘‘EDGX’’) filed with the
appropriate in furtherance of the number should be included on the Securities and Exchange Commission
purposes of the Act, in that the subject line if email is used. To help the (the ‘‘Commission’’) the proposed rule
proposed rule change is consistent with Commission process and review your change as described in Items I, II, and
similar guidance provided by other comments more efficiently, please use III below, which Items have been
designated contracts markets.7 The only one method. The Commission will prepared by the Exchange. The
Exchange believes that the proposed post all comments on the Commission’s Exchange has designated this proposal
rule change is equitable and not unfairly Internet Web site (http://www.sec.gov/ as a ‘‘non-controversial’’ proposed rule
discriminatory in that the rule rules/sro.shtml). Copies of the change pursuant to Section 19(b)(3)(A)
amendments included in the proposed submission, all subsequent of the Act 3 and Rule 19b–4(f)(6)(iii)
rule change would apply equally to all amendments, all written statements thereunder,4 which renders it effective
market participants. with respect to the proposed rule upon filing with the Commission. The
change that are filed with the Commission is publishing this notice to
C. Self-Regulatory Organization’s Commission, and all written
Statement on Comments on the solicit comments on the proposed rule
communications relating to the change from interested persons.
Proposed Rule Change Received From proposed rule change between the
Members, Participants, or Others Commission and any person, other than I. Self-Regulatory Organization’s
those that may be withheld from the Statement of the Terms of the Substance
No written comments were solicited
public in accordance with the of the Proposed Rule Change
or received with respect to the proposed
rule change. provisions of 5 U.S.C. 552, will be The Exchange filed a proposal related
available for Web site viewing and to functionality offered by the
asabaliauskas on DSK3SPTVN1PROD with NOTICES

4 15 U.S.C. 78f(b).
printing in the Commission’s Public Exchange’s options platform (‘‘EDGX
5 15 U.S.C. 78f(b)(5). Reference Room, 100 F Street NE., Options’’) to adopt Qualified Contingent
6 15 U.S.C. 78f(b)(7). Washington, DC 20549, on official Cross Orders, as described below.
7 These designated contract markets are Chicago business days between the hours of
Mercantile Exchange, Inc. (‘‘CME’’), The Board of 10:00 a.m. and 3:00 p.m. Copies of such 9 17 CFR 200.30–3(a)(73).
Trade of the City of Chicago, Inc., New York filing also will be available for 1 15
Mercantile Exchange, Inc., New York Mercantile U.S.C. 78s(b)(1).
Exchange, Inc., and Commodity Exchange, Inc. See, inspection and copying at the principal 2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
CME Submission No. 16–470 (November 15, 2016),
which is available on the CFTC’s Web site. 8 15 U.S.C. 78s(b)(1). 4 17 CFR 240.19b–4(f)(6)(iii).

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Document Created: 2017-02-08 02:59:12
Document Modified: 2017-02-08 02:59:12
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 9803