83 FR 13329 - Self-Regulatory Organizations; Cboe Exchange Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Frequent Trader Program

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 60 (March 28, 2018)

Page Range		13329-13330
FR Document		2018-06141
Federal Register, Volume 83 Issue 60 (Wednesday, March 28, 2018)
[Federal Register Volume 83, Number 60 (Wednesday, March 28, 2018)]
[Notices]
[Pages 13329-13330]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-06141]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82934; File No. SR-CBOE-2018-023]


Self-Regulatory Organizations; Cboe Exchange Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change Relating 
to the Frequent Trader Program

March 22, 2018.
    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 March 19, 2018, Cboe Exchange, Inc. (the ``Exchange'' or 
``Cboe Options'') filed with the Securities and Exchange Commission 
(the ``Commission'') the proposed rule change as described in Items I, 
II, and III below, which Items have been prepared by the Exchange. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to provide an additional mechanism for 
executing brokers to submit Frequent Trader IDs post-trade.
    The text of the proposed rule change is available on the Exchange's 
website (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), 
at the Exchange's Office of the Secretary, and at the Commission's 
Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend its Fees Schedule. Specifically, the 
Exchange proposes to provide an additional mechanism for executing 
brokers to submit Frequent Trader IDs (``FTIDs'') post-trade. By way of 
background, to participate in the Frequent Trader Program, Customers 
(includes Professional Customers and Voluntary Professionals) may 
register with the Exchange. Once registered, the Customer is provided a 
unique identification number (``FTID'') that can be affixed to each of 
its orders. The FTID allows the Exchange to identify and aggregate all 
electronic and manual trades during both the Regular Trading Hours and 
Extended Trading Hours sessions from that Customer for purposes of 
determining whether the Customer meets any of the various volume 
thresholds. The Customer has to provide its FTID to the Trading Permit 
Holder (``TPH'') submitting that Customer's order to the Exchange 
(``executing agent'' or ``executing TPH'') and that executing TPH would 
have to enter the Customer's FTID on each of that Customer's orders. 
The Exchange notes that there are instances however, in which a 
Customer's FTID was not, or could not be, affixed to an order. As such, 
the Exchange provides executing TPHs the ability to submit to the 
exchange a form (the ``Frequent Trader Program--Volume Corrections 
Form'' or ``Form'') as a mechanism for executing TPHs to identify 
transactions to the Exchange that should have been, but were not, 
associated with particular FTIDs. The Form needs to be submitted to the 
Exchange within 3 business days. Transactions identified on the Form 
only count towards the identified Customer's volume if that Customer 
was already registered for the Frequent Trader Program prior to the 
time the transaction occurred (e.g., if a customer trades 1,000 
contracts the morning of April 1 and registers for the Frequent Trader 
Program the afternoon of April 1, that customer cannot have its 
executing TPH submit a form on its behalf for those 1,000 contracts 
executed prior to registration in the Program).
    Effective March 19, 2018, a new FTID field will be available on 
Cboe Trade Match (``CTM'') terminals. This enhancement will allow 
executing TPHs to add or modify FTID information on post-trade records 
on the trade date. TPHs that require FTID modifications on trade 
records which occurred on past business days, limited to within the 
last 3 business days, must continue to submit these changes using the 
Form described above. The Exchange notes that the FTID field may be 
changed by the TPH via the CTM terminal without notice to the Exchange. 
The Exchange believes the enhanced functionality will provide an 
additional means to input FTID information and provide a more efficient 
and streamlined way to add or modify FTID information post-trade on the 
trade date.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Securities Exchange Act of 1934 (the ``Act'') and the rules and 
regulations thereunder applicable to the Exchange and, in particular, 
the requirements of Section 6(b) of the Act.\3\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \4\ requirements that the rules of an exchange be 
designed to prevent fraudulent and manipulative acts and practices, to 
promote just and equitable principles of trade, to foster cooperation 
and coordination with persons engaged in regulating, clearing, 
settling, processing information with respect to, and facilitating 
transactions in securities, to remove impediments to and perfect the 
mechanism of a free and open market and a national market system, and, 
in general, to protect investors and the public interest.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes adding system functionality to enable 
executing TPHs to input FTIDs post-trade on the trade date through CTM, 
instead of using a manual Form, provides TPHs with a more efficient 
mechanism to ensure a Customer's FTID that was not, or could not be, 
affixed to an order, is attributed to that Customer's order and gets 
timely reported, thereby removing impediments to and perfecting the

[[Page 13330]]

mechanism of a free and open market and a national market system. The 
Exchange notes that referencing this functionality in the Fees Schedule 
also maintains transparency in the Fees Schedule.

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 intramarket or intermarket competition that is not 
necessary or appropriate in furtherance of the purposes of the Act. The 
proposed change to allow FTIDs to be submitted post-trade on the trade 
date via Exchange system functionality will provide a more efficient 
means for TPHs to submit this information and is not intended for 
competitive reasons and only applies to Cboe Options. The Exchange also 
notes that no rights or obligations of Permit Holders are affected by 
the change.

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

    The Exchange neither solicited nor received comments on the 
proposed rule change.

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \5\ and paragraph (f) of Rule 19b-4 \6\ 
thereunder. At any time within 60 days of the filing of the proposed 
rule change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission will institute proceedings to 
determine whether the proposed rule change should be approved or 
disapproved.
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    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 17 CFR 240.19b-4(f).
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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-CBOE-2018-023 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CBOE-2018-023. 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 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. 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-CBOE-2018-023, and should be submitted 
on or before April 18, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-06141 Filed 3-27-18; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 83, No. 60 / Wednesday, March 28, 2018 / Notices 13329

office of the Exchange. All comments II. Self-Regulatory Organization’s Trader Program prior to the time the
received will be posted without change. Statement of the Purpose of, and transaction occurred (e.g., if a customer
Persons submitting comments are Statutory Basis for, the Proposed Rule trades 1,000 contracts the morning of
cautioned that we do not redact or edit Change April 1 and registers for the Frequent
personal identifying information from In its filing with the Commission, the Trader Program the afternoon of April 1,
comment submissions. You should Exchange included statements that customer cannot have its executing
submit only information that you wish concerning the purpose of and basis for TPH submit a form on its behalf for
to make available publicly. All the proposed rule change and discussed those 1,000 contracts executed prior to
submissions should refer to File any comments it received on the registration in the Program).
Number SR–MIAX–2018–10, and proposed rule change. The text of these Effective March 19, 2018, a new FTID
should be submitted on or before April statements may be examined at the field will be available on Cboe Trade
18, 2018.45 places specified in Item IV below. The Match (‘‘CTM’’) terminals. This
Exchange has prepared summaries, set enhancement will allow executing TPHs
For the Commission, by the Division of
Trading and Markets, pursuant to delegated forth in sections A, B, and C below, of to add or modify FTID information on
authority. the most significant aspects of such post-trade records on the trade date.
Eduardo A. Aleman, statements. TPHs that require FTID modifications
on trade records which occurred on past
Assistant Secretary. A. Self-Regulatory Organization’s business days, limited to within the last
[FR Doc. 2018–06139 Filed 3–27–18; 8:45 am] Statement of the Purpose of, and 3 business days, must continue to
BILLING CODE 8011–01–P Statutory Basis for, the Proposed Rule submit these changes using the Form
Change described above. The Exchange notes
1. Purpose that the FTID field may be changed by
SECURITIES AND EXCHANGE the TPH via the CTM terminal without
COMMISSION The Exchange proposes to amend its notice to the Exchange. The Exchange
Fees Schedule. Specifically, the believes the enhanced functionality will
[Release No. 34–82934; File No. SR–CBOE– Exchange proposes to provide an provide an additional means to input
2018–023] additional mechanism for executing FTID information and provide a more
brokers to submit Frequent Trader IDs efficient and streamlined way to add or
Self-Regulatory Organizations; Cboe (‘‘FTIDs’’) post-trade. By way of modify FTID information post-trade on
Exchange Inc.; Notice of Filing and background, to participate in the the trade date.
Immediate Effectiveness of a Proposed Frequent Trader Program, Customers
Rule Change Relating to the Frequent (includes Professional Customers and 2. Statutory Basis
Trader Program Voluntary Professionals) may register The Exchange believes the proposed
with the Exchange. Once registered, the rule change is consistent with the
March 22, 2018.
Customer is provided a unique Securities Exchange Act of 1934 (the
Pursuant to Section 19(b)(1) of the identification number (‘‘FTID’’) that can ‘‘Act’’) and the rules and regulations
Securities Exchange Act of 1934 (the be affixed to each of its orders. The thereunder applicable to the Exchange
‘‘Act’’),1 and Rule 19b–4 thereunder,2 FTID allows the Exchange to identify and, in particular, the requirements of
notice is hereby given that, on March and aggregate all electronic and manual Section 6(b) of the Act.3 Specifically,
19, 2018, Cboe Exchange, Inc. (the trades during both the Regular Trading the Exchange believes the proposed rule
‘‘Exchange’’ or ‘‘Cboe Options’’) filed Hours and Extended Trading Hours change is consistent with the Section
with the Securities and Exchange sessions from that Customer for 6(b)(5) 4 requirements that the rules of
Commission (the ‘‘Commission’’) the purposes of determining whether the an exchange be designed to prevent
proposed rule change as described in Customer meets any of the various fraudulent and manipulative acts and
Items I, II, and III below, which Items volume thresholds. The Customer has to practices, to promote just and equitable
have been prepared by the Exchange. provide its FTID to the Trading Permit principles of trade, to foster cooperation
The Commission is publishing this Holder (‘‘TPH’’) submitting that and coordination with persons engaged
notice to solicit comments on the Customer’s order to the Exchange in regulating, clearing, settling,
proposed rule change from interested (‘‘executing agent’’ or ‘‘executing TPH’’) processing information with respect to,
persons. and that executing TPH would have to and facilitating transactions in
I. Self-Regulatory Organization’s enter the Customer’s FTID on each of securities, to remove impediments to
Statement of the Terms of Substance of that Customer’s orders. The Exchange and perfect the mechanism of a free and
the Proposed Rule Change notes that there are instances however, open market and a national market
in which a Customer’s FTID was not, or system, and, in general, to protect
The Exchange proposes to provide an could not be, affixed to an order. As investors and the public interest.
additional mechanism for executing such, the Exchange provides executing The Exchange believes adding system
brokers to submit Frequent Trader IDs TPHs the ability to submit to the functionality to enable executing TPHs
post-trade. exchange a form (the ‘‘Frequent Trader to input FTIDs post-trade on the trade
The text of the proposed rule change Program—Volume Corrections Form’’ or date through CTM, instead of using a
is available on the Exchange’s website ‘‘Form’’) as a mechanism for executing manual Form, provides TPHs with a
(http://www.cboe.com/AboutCBOE/ TPHs to identify transactions to the more efficient mechanism to ensure a
CBOELegalRegulatoryHome.aspx), at Exchange that should have been, but Customer’s FTID that was not, or could
daltland on DSKBBV9HB2PROD with NOTICES

the Exchange’s Office of the Secretary, were not, associated with particular not be, affixed to an order, is attributed
and at the Commission’s Public FTIDs. The Form needs to be submitted to that Customer’s order and gets timely
Reference Room. to the Exchange within 3 business days. reported, thereby removing
Transactions identified on the Form impediments to and perfecting the
45 17 CFR 200.30–3(a)(12). only count towards the identified
1 15 U.S.C. 78s(b)(1). Customer’s volume if that Customer was 3 15 U.S.C. 78f(b).
2 17 CFR 240.19b–4. already registered for the Frequent 4 15 U.S.C. 78f(b)(5).

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13330 Federal Register / Vol. 83, No. 60 / Wednesday, March 28, 2018 / Notices

mechanism of a free and open market Electronic Comments SECURITIES AND EXCHANGE
and a national market system. The COMMISSION
Exchange notes that referencing this • Use the Commission’s internet
comment form (http://www.sec.gov/ [Release No. 34–82930; File No. SR–BOX–
functionality in the Fees Schedule also 2018–10]
maintains transparency in the Fees rules/sro.shtml); or
Schedule. • Send an email to rule-comments@ Self-Regulatory Organizations; BOX
sec.gov. Please include File Number SR– Options Exchange LLC; Notice of
B. Self-Regulatory Organization’s
CBOE–2018–023 on the subject line. Filing and Immediate Effectiveness of
Statement on Burden on Competition
Proposed Rule Change To Amend IM–
Paper Comments 3120–2 of BOX Rule 3120 (Position
The Exchange does not believe that
the proposed rule change will impose • Send paper comments in triplicate Limits) To Increase the Position Limits
any burden on intramarket or to Secretary, Securities and Exchange for Options on the Following Exchange
intermarket competition that is not Commission, 100 F Street NE, Traded Funds: iShares China Large-
necessary or appropriate in furtherance Cap ETF, iShares MSCI EAFE ETF,
Washington, DC 20549–1090.
of the purposes of the Act. The iShares MSCI Emerging Markets ETF,
proposed change to allow FTIDs to be All submissions should refer to File iShares Russell 2000 ETF, iShares
submitted post-trade on the trade date Number SR–CBOE–2018–023. This file MSCI Brazil Capped ETF, iShares 20+
via Exchange system functionality will number should be included on the Year Treasury Bond Fund ETF,
provide a more efficient means for TPHs subject line if email is used. To help the PowerShares QQQ Trust, and iShares
Commission process and review your MSCI Japan ETF
to submit this information and is not
intended for competitive reasons and comments more efficiently, please use March 22, 2018.
only applies to Cboe Options. The only one method. The Commission will Pursuant to Section 19(b)(1) of the
Exchange also notes that no rights or post all comments on the Commission’s Securities Exchange Act of 1934
obligations of Permit Holders are internet website (http://www.sec.gov/ (‘‘Act’’),1 and Rule 19b–4 thereunder,2
affected by the change. rules/sro.shtml). Copies of the notice is hereby given that on March 15,
submission, all subsequent 2018, BOX Options Exchange LLC (the
C. Self-Regulatory Organization’s amendments, all written statements ‘‘Exchange’’) filed with the Securities
Statement on Comments on the with respect to the proposed rule and Exchange Commission
Proposed Rule Change Received From change that are filed with the (‘‘Commission’’) the proposed rule
Members, Participants, or Others Commission, and all written change as described in Items I and II
The Exchange neither solicited nor communications relating to the below, which Items have been prepared
received comments on the proposed proposed rule change between the by the self-regulatory organization. The
rule change. Commission and any person, other than Commission is publishing this notice to
those that may be withheld from the solicit comments on the proposed rule
III. Date of Effectiveness of the public in accordance with the change from interested persons.
Proposed Rule Change and Timing for provisions of 5 U.S.C. 552, will be I. Self-Regulatory Organization’s
Commission Action available for website viewing and Statement of the Terms of the Substance
The foregoing rule change has become printing in the Commission’s Public of the Proposed Rule Change
effective pursuant to Section 19(b)(3)(A) Reference Room, 100 F Street NE,
The Exchange proposes to amend
of the Act 5 and paragraph (f) of Rule Washington, DC 20549 on official BOX Rule 3120 (Position Limits) to
19b–4 6 thereunder. At any time within business days between the hours of increase the position limits for options
60 days of the filing of the proposed rule 10:00 a.m. and 3:00 p.m. Copies of such on the following exchange traded funds
change, the Commission summarily may filing also will be available for (‘‘ETFs’’): iShares China Large-Cap ETF
temporarily suspend such rule change if inspection and copying at the principal (‘‘FXI’’), iShares MSCI EAFE ETF
it appears to the Commission that such office of the Exchange. All comments (‘‘EFA’’), iShares MSCI Emerging
action is necessary or appropriate in the received will be posted without change. Markets ETF (‘‘EEM’’), iShares Russell
public interest, for the protection of Persons submitting comments are 2000 ETF (‘‘IWM’’), iShares MSCI Brazil
investors, or otherwise in furtherance of cautioned that we do not redact or edit Capped ETF (‘‘EWZ’’), iShares 20+ Year
the purposes of the Act. If the personal identifying information from Treasury Bond Fund ETF (‘‘TLT’’),
Commission takes such action, the comment submissions. You should PowerShares QQQ Trust (‘‘QQQQ’’),
Commission will institute proceedings submit only information that you wish and iShares MSCI Japan ETF (‘‘EWJ’’).
to determine whether the proposed rule to make available publicly. All The text of the proposed rule change is
change should be approved or submissions should refer to File available from the principal office of the
disapproved. Number SR–CBOE–2018–023, and Exchange, at the Commission’s Public
should be submitted on or before April Reference Room and also on the
IV. Solicitation of Comments 18, 2018. Exchange’s internet website at http://
boxoptions.com.
Interested persons are invited to For the Commission, by the Division of
submit written data, views, and Trading and Markets, pursuant to delegated II. Self-Regulatory Organization’s
arguments concerning the foregoing, authority.7 Statement of the Purpose of, and
daltland on DSKBBV9HB2PROD with NOTICES

including whether the proposed rule Eduardo A. Aleman, Statutory Basis for, the Proposed Rule
change is consistent with the Act. Assistant Secretary.
Change
Comments may be submitted by any of [FR Doc. 2018–06141 Filed 3–27–18; 8:45 am] In its filing with the Commission, the
the following methods: self-regulatory organization included
BILLING CODE 8011–01–P

5 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1).
6 17 CFR 240.19b–4(f). 7 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4.

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Document Created: 2018-11-01 08:56:20
Document Modified: 2018-11-01 08:56:20
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		83 FR 13329