83 FR 13552 - Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change Relating to Flexibly Structured Options

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 61 (March 29, 2018)

Page Range		13552-13553
FR Document		2018-06296

Federal Register, Volume 83 Issue 61 (Thursday, March 29, 2018)

[Federal Register Volume 83, Number 61 (Thursday, March 29, 2018)]
[Notices]
[Pages 13552-13553]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-06296]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82936; File No. SR-CBOE-2018-008]


Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of 
Designation of a Longer Period for Commission Action on a Proposed Rule 
Change Relating to Flexibly Structured Options

March 23, 2018.
    On January 19, 2018, Cboe Exchange, Inc. (``Exchange'') filed with 
the Securities and Exchange Commission (``Commission''), pursuant to 
Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ 
and Rule 19b-4 thereunder,\2\ a proposed rule change to amend the 
Exchange's rules relating to the fungibility of Flexible Exchange 
Options (``FLEX Options'') with Non-FLEX Options that have identical 
terms to, among other things, include FLEX Options on quarterly 
expirations, short term expirations, weekly expirations and end-of-
month expirations. The proposed rule change was published for comment 
in the Federal Register on February 8, 2018.\3\ The Commission has 
received no comments on the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 82622 (Feb. 2, 
2018), 83 FR 5668 (Feb. 8, 2018) (``Notice'').
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    Section 19(b)(2) of the Act \4\ provides that, within 45 days of 
the publication of notice of the filing of a proposed rule change, or 
within such longer period up

[[Page 13553]]

to 90 days as the Commission may designate if it finds such longer 
period to be appropriate and publishes its reasons for so finding or as 
to which the self-regulatory organization consents, the Commission 
shall approve the proposed rule change, disapprove the proposed rule 
change, or institute proceedings to determine whether the proposed rule 
change should be approved or disapproved. The 45th day after 
publication of the notice for this proposed rule change is March 25, 
2018. The Commission is extending this 45-day time period.
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    \4\ 15 U.S.C. 78s(b)(2).
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    The Commission finds that it is appropriate to designate a longer 
period within which to take action on the proposed rule change so that 
the Commission has sufficient time to consider the proposed rule 
change. Accordingly, the Commission, pursuant to Section 19(b)(2) of 
the Act,\5\ designates May 9, 2018, as the date by which the Commission 
should approve or disapprove or institute proceedings to determine 
whether to disapprove the proposed rule change (File Number SR-CBOE-
2018-008).
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    \5\ Id.
    \6\ 17 CFR 200.30-3(a)(31).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\6\
Brent J. Fields,
Secretary.
[FR Doc. 2018-06296 Filed 3-28-18; 8:45 am]
 BILLING CODE 8011-01-P

13552 Federal Register / Vol. 83, No. 61 / Thursday, March 29, 2018 / Notices

The Exchange does not believe that III. Date of Effectiveness of the Washington, DC 20549 on official
only offering this lower fee to Proposed Rule Change and Timing for business days between the hours of
Participants that remove Customer and Commission Action 10:00 a.m. and 3:00 p.m. Copies of the
Professional liquidity in SPY is The foregoing rule change has become filing also will be available for
inequitable and unfairly discriminatory. effective pursuant to Section inspection and copying at the principal
Customer liquidity benefits all market 19(b)(3)(A)(ii) of the Act.21 office of the Exchange. All comments
participants by providing more trading received will be posted without change.
At any time within 60 days of the
opportunities, which attracts market Persons submitting comments are
filing of the proposed rule change, the
makers. An increase in the activity of cautioned that we do not redact or edit
Commission summarily may
these market participants in turn personal identifying information from
temporarily suspend such rule change if
facilitates tighter spreads, which may comment submissions. You should
it appears to the Commission that such
cause an additional corresponding submit only information that you wish
action is: (i) Necessary or appropriate in
increase in order flow from other market to make available publicly. All
the public interest; (ii) for the protection
participants. The Exchange believes that submissions should refer to File
of investors; or (iii) otherwise in
offering a lower fee to Professionals is Number SR–NASDAQ–2018–019, and
furtherance of the purposes of the Act.
similarly beneficial, as the lower fees should be submitted on or before April
If the Commission takes such action, the
may cause market participants to select 19, 2018.
Commission shall institute proceedings
NOM as a venue to send Professional For the Commission, by the Division of
to determine whether the proposed rule
order flow, increasing competition Trading and Markets, pursuant to delegated
should be approved or disapproved.
among the exchanges. As with Customer authority.22
liquidity, the Exchange believes that IV. Solicitation of Comments Brent J. Fields,
increased Professional order flow Interested persons are invited to Secretary.
should benefit other market submit written data, views, and [FR Doc. 2018–06298 Filed 3–28–18; 8:45 am]
participants. arguments concerning the foregoing, BILLING CODE 8011–01–P
B. Self-Regulatory Organization’s including whether the proposed rule
Statement on Burden on Competition change is consistent with the Act.
The Exchange does not believe that Comments may be submitted by any of SECURITIES AND EXCHANGE
the proposed rule change will impose the following methods: COMMISSION
any burden on competition not Electronic Comments [Release No. 34–82936; File No. SR–CBOE–
necessary or appropriate in furtherance 2018–008]
of the purposes of the Act. All of the • Use the Commission’s internet
proposed changes to the NOM Market comment form (http://www.sec.gov/ Self-Regulatory Organizations; Cboe
Maker, Customer and Professional rules/sro.shtml); or Exchange, Inc.; Notice of Designation
Rebates to Add Liquidity in Penny and • Send an email to rule-comments@ of a Longer Period for Commission
Non-Penny Pilot Options, as well as the sec.gov. Please include File Number SR– Action on a Proposed Rule Change
Customer and Professional Fee for NASDAQ–2018–019 on the subject line. Relating to Flexibly Structured Options
Removing Liquidity in SPY Options, are Paper Comments March 23, 2018.
designed to attract additional order flow
• Send paper comments in triplicate On January 19, 2018, Cboe Exchange,
to NOM, and the Exchange believes that Inc. (‘‘Exchange’’) filed with the
to Secretary, Securities and Exchange
its pricing remains attractive to market Securities and Exchange Commission
Commission, 100 F Street NE,
participants. The Exchange operates in (‘‘Commission’’), pursuant to Section
Washington, DC 20549–1090.
a highly competitive market in which 19(b)(1) of the Securities Exchange Act
market participants can readily favor All submissions should refer to File
Number SR–NASDAQ–2018–019. This of 1934 (‘‘Act’’) 1 and Rule 19b–4
competing venues if they deem fee thereunder,2 a proposed rule change to
levels at a particular venue to be file number should be included on the
subject line if email is used. To help the amend the Exchange’s rules relating to
excessive, or rebate opportunities the fungibility of Flexible Exchange
available at other venues to be more Commission process and review your
comments more efficiently, please use Options (‘‘FLEX Options’’) with Non-
favorable. In such an environment, the FLEX Options that have identical terms
Exchange must continually adjust its only one method. The Commission will
post all comments on the Commission’s to, among other things, include FLEX
fees to remain competitive. Because Options on quarterly expirations, short
competitors are free to modify their own internet website (http://www.sec.gov/
rules/sro.shtml). Copies of the term expirations, weekly expirations
fees in response, and because market and end-of-month expirations. The
participants may readily adjust their submission, all subsequent
amendments, all written statements proposed rule change was published for
order routing practices, the Exchange comment in the Federal Register on
believes that the degree to which fee with respect to the proposed rule
change that are filed with the February 8, 2018.3 The Commission has
changes in this market may impose any received no comments on the proposed
burden on competition is extremely Commission, and all written
communications relating to the rule change.
limited. Section 19(b)(2) of the Act 4 provides
proposed rule change between the
C. Self-Regulatory Organization’s Commission and any person, other than that, within 45 days of the publication
Statement on Comments on the of notice of the filing of a proposed rule
sradovich on DSK3GMQ082PROD with NOTICES

those that may be withheld from the
Proposed Rule Change Received From public in accordance with the change, or within such longer period up
Members, Participants, or Others provisions of 5 U.S.C. 552, will be 22 17 CFR 200.30–3(a)(12).
No written comments were either available for website viewing and 1 15 U.S.C. 78s(b)(1).
solicited or received. printing in the Commission’s Public 2 17 CFR 240.19b–4.
Reference Room, 100 F Street NE, 3 See Securities Exchange Act Release No. 82622

fee, both in all penny classes except RUT. See C2 (Feb. 2, 2018), 83 FR 5668 (Feb. 8, 2018) (‘‘Notice’’).
Fees Schedule, Section 1. 21 15 U.S.C. 78s(b)(3)(A)(ii). 4 15 U.S.C. 78s(b)(2).

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Federal Register / Vol. 83, No. 61 / Thursday, March 29, 2018 / Notices 13553

to 90 days as the Commission may Exchange Act of 1934 (‘‘Act’’) 1 and Rule publishing notice of the filing of
designate if it finds such longer period 19b–4 thereunder,2 a proposed rule Amendment No. 1 to interested persons,
to be appropriate and publishes its change to adopt new equity trading and is approving the proposed rule
reasons for so finding or as to which the rules to allow the Exchange to trade change, as modified by Amendment No.
self-regulatory organization consents, securities pursuant to unlisted trading 1, on an accelerated basis.
the Commission shall approve the privileges (‘‘UTP Securities’’) 3 on Pillar,
II. Exchange’s Description of the
proposed rule change, disapprove the the Exchange’s new trading technology
Proposed Rule Change, as Modified by
proposed rule change, or institute platform. The proposed rule change was
Amendment No. 1
proceedings to determine whether the published for comment in the Federal
proposed rule change should be Register on August 9, 2017.4 On In its filing with the Commission, the
approved or disapproved. The 45th day September 18, 2017, the Commission self-regulatory organization included
after publication of the notice for this designated a longer period within which statements concerning the purpose of,
proposed rule change is March 25, 2018. to approve the proposed rule change, and basis for, the proposed rule change
The Commission is extending this 45- disapprove the proposed rule change, or and discussed any comments it received
day time period. institute proceedings to determine on the proposed rule change. The text
The Commission finds that it is whether the proposed rule change of those statements may be examined at
appropriate to designate a longer period should be disapproved.5 On November the places specified in Item V below.
within which to take action on the 7, 2017, the Commission instituted The Exchange has prepared summaries,
proposed rule change so that the proceedings under Section 19(b)(2)(B) of set forth in sections A, B, and C below,
Commission has sufficient time to the Act 6 to determine whether to of the most significant parts of such
consider the proposed rule change. approve or disapprove the proposed statements.
Accordingly, the Commission, pursuant rule change.7 On February 1, 2018, the A. Self-Regulatory Organization’s
to Section 19(b)(2) of the Act,5 Commission designated a longer period Statement of the Purpose of, and the
designates May 9, 2018, as the date by for Commission action on the Statutory Basis for, the Proposed Rule
which the Commission should approve proceedings to determine whether to Change
or disapprove or institute proceedings to approve or disapprove the proposed
determine whether to disapprove the rule change.8 The Commission received 1. Purpose
proposed rule change (File Number SR– one comment letter on the proposal.9 On January 29, 2015, the Exchange
CBOE–2018–008). On February 23, 2018, the Exchange announced the implementation of Pillar,
filed Amendment No. 1 to the proposed which is an integrated trading
For the Commission, by the Division of
rule change, which replaces and technology platform designed to use a
Trading and Markets, pursuant to delegated
authority.6
supersedes the proposed rule change in single specification for connecting to the
its entirety.10 The Commission is equities and options markets operated
Brent J. Fields,
Secretary.
by the Exchange and its affiliates, NYSE
1 15 U.S.C. 78s(b)(1). Arca, Inc. (‘‘NYSE Arca’’) and NYSE
[FR Doc. 2018–06296 Filed 3–28–18; 8:45 am] 2 17 CFR 240.19b–4.
3 NYSE Rules define ‘‘UTP Security’’ as a security
American LLC (‘‘NYSE American’’).11
BILLING CODE 8011–01–P
that is listed on a national securities exchange other NYSE Arca’s cash equities market was
than the Exchange and that trades on the Exchange the first trading system to migrate to
SECURITIES AND EXCHANGE
pursuant to unlisted trading privileges. See NYSE Pillar.12 NYSE American’s cash equities
Rule 1.1(ii).
COMMISSION 4 See Securities Exchange Act Release No. 81310
Modifier to reflect those of NYSE Arca and NYSE
(Aug. 3, 2017), 82 FR 37257 (Aug. 9, 2017). American and proposes additional rules setting
[Release No. 34–82945; File No. SR–NYSE– 5 See Securities Exchange Act Release No. 81641
forth how orders with an MTS Modifier would
2017–36] (Sept. 18, 2017), 82 FR 44483 (Sept. 22, 2017). trade in a parity allocation model; (iv) change the
6 15 U.S.C. 78s(b)(2)(B).
list of rules that are not applicable to Pillar; (v)
Self-Regulatory Organizations; New 7 See Securities Exchange Act Release No. 82028
amend proposed NYSE Rules 7.37 and 7.46 to refer
York Stock Exchange LLC; Notice of (Nov. 7, 2017), 82 FR 52757 (Nov. 14, 2017) (‘‘Order to an order with an MTS as an order with an ‘‘MTS
Instituting Proceedings’’). Modifier;’’ (vi) change cross-references to NYSE
Filing of Amendment No. 1 and Order 8 See Securities Exchange Act Release No. 82613 Arca’s rules to reflect the merger of NYSE Arca and
Granting Accelerated Approval of a (Feb. 1, 2018), 83 FR 5499 (Feb. 7, 2018). NYSE Arca Equities, and (vii) reflect the renaming
Proposed Rule Change, as Modified by 9 See Letter from Joanne Moffic-Silver, Executive of NYSE MKT to NYSE American. Amendment No.
Amendment No. 1, To Adopt New Vice President, General Counsel, and Corporate 1 is available at https://www.sec.gov/comments/sr-
Equity Trading Rules To Trade Secretary, Cboe Global Markets, Inc., to Brent J. nyse-2017-36/nyse201736-3137940-161948.pdf).
Fields, Secretary, Commission (Feb. 1, 2018) (‘‘Cboe 11 See Trader Update dated January 29, 2015,
Securities Pursuant to Unlisted Letter’’). available here: www.nyse.com/pillar.
Trading Privileges, Including Orders 10 In Amendment No. 1, among other changes, the 12 In connection with the NYSE Arca
and Modifiers, Order Ranking and Exchange proposes to: (i) Respond to the implementation of Pillar, NYSE Arca filed four rule
Display, and Order Execution and Commission’s concerns in the Order Instituting proposals relating to Pillar. See Securities Exchange
Routing on Pillar, the Exchange’s New Proceedings relating to offering a separate parity Act Release Nos. 74951 (May 13, 2015), 80 FR
allocation for floor brokers by (a) setting forth 28721 (May 19, 2015) (Notice) and 75494 (July 20,
Trading Technology Platform additional requirements for floor broker orders to be 2015), 80 FR 44170 (July 24, 2015) (SR–NYSEArca–
eligible for a separate parity allocation, (b) 2015–38) (Approval Order of NYSE Arca Pillar I
March 26, 2018. proposing to permit floor brokers to engage in floor- Filing, adopting rules for Trading Sessions, Order
based point-of-sale trading and crossing Ranking and Display, and Order Execution);
I. Introduction transactions in UTP Securities, and (c) providing Securities Exchange Act Release Nos. 75497 (July
On July 28, 2017, New York Stock additional justification for providing floor brokers 21, 2015), 80 FR 45022 (July 28, 2015) (Notice) and
sradovich on DSK3GMQ082PROD with NOTICES

with parity; (ii) amend the definition of Aggressing 76267 (October 26, 2015), 80 FR 66951 (October 30,
Exchange LLC (‘‘NYSE’’ or ‘‘Exchange’’) Order to include that a resting order may become 2015) (SR–NYSEArca–2015–56) (Approval Order of
filed with the Securities and Exchange an Aggressing Order if its working price change, the NYSE Arca Pillar II Filing, adopting rules for Orders
Commission (‘‘Commission’’), pursuant best protected bid or offer (‘‘PBBO’’) or the national and Modifiers and the Retail Liquidity Program);
to Section 19(b)(1) of the Securities best bid or offer (‘‘NBBO’’) is updated, there are Securities Exchange Act Release Nos. 75467 (July
changes to other orders on the Exchange Book, or 16, 2015), 80 FR 43515 (July 22, 2015) (Notice) and
when processing inbound messages; (iii) amend the 76198 (October 20, 2015), 80 FR 65274 (October 26,
5 Id.
rules relating to the Mid-Point Liquidity (‘‘MPL’’) 2015) (SR–NYSEArca–2015–58) (Approval Order of
6 17 CFR 200.30–3(a)(31). Order and the Minimum Trade Size (‘‘MTS’’) Continued

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Document Created: 2018-03-29 00:25:25
Document Modified: 2018-03-29 00:25:25

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 13552