83_FR_21406 83 FR 21316 - Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Renew the Nonstandard Expirations Pilot Program

83 FR 21316 - Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Renew the Nonstandard Expirations Pilot Program

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 90 (May 9, 2018)

Page Range21316-21318
FR Document2018-09829

Federal Register, Volume 83 Issue 90 (Wednesday, May 9, 2018)
[Federal Register Volume 83, Number 90 (Wednesday, May 9, 2018)]
[Notices]
[Pages 21316-21318]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-09829]


=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83165; File No. SR-CBOE-2018-038]


Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Renew 
the Nonstandard Expirations Pilot Program

May 3, 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 May 2, 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 and II 
below, which Items have been prepared by the Exchange. The Exchange 
filed the proposal as a ``non-controversial'' proposed rule change 
pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-
4(f)(6) thereunder.\4\ The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to renew an existing pilot program until 
November 5, 2018.
(additions are italicized; deletions are [bracketed])
* * * * *

Cboe Exchange, Inc. Rules

* * * * *

Rule 24.9. Terms of Index Option Contracts

    (a)-(d) (No change).
    (e) Nonstandard Expirations Pilot Program
    (1)-(2) (No change).
    (3) Duration of Nonstandard Expirations Pilot Program. The 
Nonstandard Expirations Pilot Program shall be through [May 
3]November 5, 2018.
    (4) (No change).
    . . . Interpretations and Policies:
    .01-.14 (No change).
* * * * *

    The text of the proposed rule change is also 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

[[Page 21317]]

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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    On September 14, 2010, the Commission approved a Cboe Options 
proposal to establish a pilot program under which the Exchange is 
permitted to list P.M.-settled options on broad-based indexes to expire 
on (a) any Friday of the month, other than the third Friday-of-the-
month, and (b) the last trading day of the month.\5\ On January 14, 
2016, the Commission approved a Cboe Options proposal to expand the 
pilot program to allow P.M.-settled options on broad-based indexes to 
expire on any Wednesday of month, other than those that coincide with 
an EOM.\6\ On August 10, 2016, the Commission approved a Cboe Options 
proposal to expand the pilot program to allow P.M.-settled options on 
broad-based indexes to expire on any Monday of month, other than those 
that coincide with an EOM.\7\ Under the terms of the Nonstandard 
Expirations Pilot Program (``Program''), Weekly Expirations and EOMs 
are permitted on any broad-based index that is eligible for regular 
options trading. Weekly Expirations and EOMs are cash-settled and have 
European-style exercise. The proposal became effective on a pilot basis 
for a period of fourteen months that commenced on the next full month 
after approval was received to establish the Program \8\ and was 
subsequently extended.\9\ The Program is scheduled to expire on May 3, 
2018. The Exchange believes that the Program has been successful and 
well received by its Trading Permit Holders and the investing public 
during that the time that it has been in operation. The Exchange hereby 
proposes to extend the Program until November 5, 2018. This proposal 
does not request any other changes to the Program.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release 62911 (September 14, 
2010), 75 FR 57539 (September 21, 2010) (order approving SR-CBOE-
2009-075).
    \6\ See Securities Exchange Act Release 76909 (January 14, 
2016), 81 FR 3512 (January 21, 2016) (order approving SR-CBOE-2015-
106).
    \7\ See Securities Exchange Act Release 78531 (August 10, 2016), 
81 FR 54643 (August 16, 2016) (order approving SR-CBOE-2016-046).
    \8\ Id.
    \9\ See Securities Exchange Act Release 65741 (November 14, 
2011), 76 FR 72016 (November 21, 2011) (immediately effective rule 
change extending the Program through February 14, 2013). See also 
Securities Exchange Act Release 68933 (February 14, 2013), 78 FR 
12374 (February 22, 2013) (immediately effective rule change 
extending the Program through April 14, 2014); 71836 (April 1, 
2014), 79 FR 19139 (April 7, 2014) (immediately effective rule 
change extending the Program through November 3, 2014); 73422 
(October 24, 2014), 79 FR 64640 (October 30, 2014) (immediately 
effective rule change extending the Program through May 3, 2016); 
76909 (January 14, 2016), 81 FR 3512 (January 21, 2016) (extending 
the Program through May 3, 2017); and 80387 (April 6, 2017), 82 FR 
17706 (April 12, 2017) (extending the Program through May 3, 2018).
---------------------------------------------------------------------------

    Pursuant to the order approving the establishment of the Program, 
two months prior to the conclusion of the pilot period, Cboe Options is 
required to submit an annual report to the Commission, which addresses 
the following areas: Analysis of Volume & Open Interest, Monthly 
Analysis of Weekly Expirations & EOM Trading Patterns and Provisional 
Analysis of Index Price Volatility. The Exchange has submitted, under 
separate cover, the annual report in connection with the present 
proposed rule change. Additionally, the Exchange will provide the 
Commission with any additional data or analyses the Commission requests 
because it deems such data or analyses necessary to determine whether 
the Program is consistent with the Exchange Act. The Exchange will make 
public all data and analyses previously submitted to the Commission 
under the Program, as well as any data and analyses it makes to the 
Commission under the Program in the future.
    If, in the future, the Exchange proposes an additional extension of 
the Program, or should the Exchange propose to make the Program 
permanent (which the Exchange currently intends to do), the Exchange 
will submit an annual report (addressing the same areas referenced 
above and consistent with the order approving the establishment of the 
Program) to the Commission at least two months prior to the expiration 
date of the Program. Any positions established under the Program will 
not be impacted by the expiration of the Program.
    The Exchange believes there is sufficient investor interest and 
demand in the Program to warrant its extension. The Exchange believes 
that the Program has provided investors with additional means of 
managing their risk exposures and carrying out their investment 
objectives. Furthermore, the Exchange has not experienced any adverse 
market effects with respect to the Program.
    The Exchange believes that the proposed extension of the Program 
will not have an adverse impact on capacity.
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.\10\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \11\ 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 facilitation 
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. Additionally, 
the Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \12\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
    \12\ Id.
---------------------------------------------------------------------------

    In particular, the Exchange believes that the Program has been 
successful to date and states that it has not encountered any problems 
with the Program. The proposed rule change allows for an extension of 
the Program for the benefit of market participants. Additionally, the 
Exchange believes that there is demand for the expirations offered 
under the Program and believes that that Weekly Expirations and EOMs 
will continue to provide the investing public and other market 
participants increased opportunities to better manage their risk 
exposure.

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

    Cboe Options 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. Specifically, the Exchange 
believes that, by extending the expiration of the Program, the proposed 
rule change will allow for further analysis of the Program and a 
determination of how the Program shall be structured in the future. In 
doing so, the proposed rule change will also serve to promote 
regulatory clarity and

[[Page 21318]]

consistency, thereby reducing burdens on the marketplace and 
facilitating investor protection.

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

    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 for 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 \13\ and Rule 19b-4(f)(6) 
thereunder.\14\
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 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 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 requirement.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \15\ normally 
does not become operative for 30 days after the date of filing. 
However, pursuant to Rule 19b-4(f)(6)(iii),\16\ 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 Exchange states that 
such waiver will allow the Exchange to extend the pilot program prior 
to its expiration on May 3, 2018, and maintain the status quo, thereby 
reducing market disruption. The Commission believes that waiving the 
30-day operative delay is consistent with the protection of investors 
and the public interest as it will allow the pilot program to continue 
uninterrupted, thereby avoiding investor confusion that could result 
from a temporary interruption in the pilot program. For this reason, 
the Commission designates the proposed rule change to be operative upon 
filing.\17\
---------------------------------------------------------------------------

    \15\ 17 CFR 240.19b-4(f)(6).
    \16\ 17 CFR 240.19b-4(f)(6)(iii).
    \17\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-CBOE-2018-038 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-2018-038. 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-CBOE-2018-038, and should be submitted 
on or before May 30, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\
---------------------------------------------------------------------------

    \18\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-09829 Filed 5-8-18; 8:45 am]
 BILLING CODE 8011-01-P



                                             21316                             Federal Register / Vol. 83, No. 90 / Wednesday, May 9, 2018 / Notices

                                             not result in a significant change in the types               present an undue risk to the public health                    Generating Plant, to allow the use of a
                                             or amount of effluents that may be released                   and safety, and is consistent with the                        shorting switch to ensure that one redundant
                                             and does not result in any additional                         common defense and security. Also, special                    train of Drywell Spray is free of fire damage
                                             occupational exposure. Therefore, the                         circumstances are present in that application                 to achieve and maintain hot shutdown
                                             requirements of 10 CFR51.22(c)(9)(ii) and (iii)               of the regulation is not necessary to achieve                 conditions in the event of a fire.
                                             are met.                                                      the underlying purpose of the rule.
                                                                                                           Therefore, the Commission hereby grants                       VI. Availability of Documents.
                                             V. Conclusions.                                               Northern States Power Company, doing
                                               Accordingly, the Commission has                             business as Xcel Energy, an exemption from                      The documents identified in the following
                                             determined that, pursuant to 10 CFR 50.12,                    the requirements of 10 CFR 50, Appendix R,                    table are available in ADAMS.
                                             the exemption is authorized by law, will not                  Section III.G.2, for Monticello Nuclear

                                                                                                                                                                                                                   ADAMS
                                                                                                                          Document                                                                                Accession
                                                                                                                                                                                                                     No.

                                             Risk-Informed Request for Exemption from 10 CFR 50, Appendix R, III.G.2 Requirements for Multiple Spurious Operations of                                           ML17096A599
                                               Drywell Spray Motor-Operated Valves.
                                             Request for additional information RE: Monticello Request for Exemption from Appendix R Requirements (CAC NO. MF9586;                                              ML17293A091
                                               EPID L–2017–LLE–00012).
                                             Response to Request for Additional Information regarding Risk-Informed Request for Exemption from 10 CFR 50, Appendix                                              ML17324B361
                                               R, III.G.2 Requirements for Multiple Spurious Operations of Drywell Spray Motor-Operated Valves (CAC No. MF9586).
                                             Monticello Nuclear Generating Plant Triennial Fire Protection Inspection Report 05000263/2014008 ..........................................                        ML14119A216
                                             Letter of Intent to Transition to 10 CFR 50.48(c)—National Fire Protection Association Standard NFPA 805. ‘‘Performance-                                           ML053460342
                                               based Standards for Fire Protection for Light Water Reactor Electric Generating Plants.’’ 2001 Edition.
                                             Notice of Withdrawal of Letter of Intent to Transition to 10 CFR 50.48(c)’’ ....................................................................................   ML102000433
                                             NRC Regulatory Issue Summary 2007–06 Regulatory Guide 1.200 Implementation .....................................................................                   ML070650428
                                             NEI 05–04, Rev. 2 Process for Performing Internal Events PRA Peer Reviews Using the ASME/ANS PRA Standard ...............                                          ML083430462
                                             NEI 07–12 [REV 1] Fire Probabilistic Risk Assessment (FPRA) Peer Review Process Guidelines ...............................................                         ML102230070
                                             NUREG/CR–7150, Vol. 2 Joint Assessment of Cable Damage and Quantification of Effects from Fire (JACQUE–FIRE) ...........                                           ML14141A129
                                             Browns Ferry Nuclear Plant, Units 1, 2, And 3—Issuance of Amendments Regarding Transition to a Risk-Informed, Perform-                                             ML15212A796
                                               ance-Based Fire Protection Program in Accordance with 10 CFR 50.48(c) (CAC NOS. MF1185, MF1186, AND MF1187).
                                             Arkansas Nuclear One, Unit 1—Issuance of Amendment Regarding Transition to a Risk-Informed, Performance-Based Fire                                                 ML16223A481
                                               Protection Program in Accordance with 10 CFR 50.48(c) (CAC NO. MF3419).
                                             Regulatory Guide 1.189 ‘‘Fire Protection for Nuclear Power Plants,’’ Revision 2 ...........................................................................        ML092580550
                                             Regulatory Guide 1.174 ‘‘An Approach for Using Probabilistic Risk Assessment in Risk-Informed Decisions on Plant-Specific                                          ML100910006
                                               Changes to the Licensing Basis,’’ Revision 2.
                                             Regulatory Guide 1.200 ‘‘An Approach for Determining the Technical Adequacy of Probabilistic Risk Assessment Results for                                           ML090410014
                                               Risk-Informed Activities,’’ Revision 2.
                                             Monticello Nuclear Generating Station: Evaluation of Risk Significance of Permanent Integrated Leak Rate Test Extension .....                                      ML16047A273



                                               Dated at Rockville, Maryland, this 1st day                  notice is hereby given that on May 2,                         Cboe Exchange, Inc. Rules
                                             of May 2018.                                                  2018, Cboe Exchange, Inc. (the                                *        *       *       *       *
                                               For the Nuclear Regulatory Commission.                      ‘‘Exchange’’ or ‘‘Cboe Options’’) filed                       Rule 24.9. Terms of Index Option Contracts
                                               Gregory F. Suber,                                           with the Securities and Exchange
                                                                                                                                                                           (a)–(d) (No change).
                                             Acting Director, Division of Operating                        Commission (the ‘‘Commission’’) the                             (e) Nonstandard Expirations Pilot Program
                                             Reactor Licensing, Office of Nuclear Reactor                  proposed rule change as described in                            (1)–(2) (No change).
                                             Regulation.                                                   Items I and II below, which Items have                          (3) Duration of Nonstandard Expirations
                                             [FR Doc. 2018–09801 Filed 5–8–18; 8:45 am]                    been prepared by the Exchange. The                            Pilot Program. The Nonstandard Expirations
                                             BILLING CODE 7590–01–P                                        Exchange filed the proposal as a ‘‘non-                       Pilot Program shall be through [May
                                                                                                           controversial’’ proposed rule change                          3]November 5, 2018.
                                                                                                           pursuant to Section 19(b)(3)(A)(iii) of                         (4) (No change).
                                                                                                           the Act 3 and Rule 19b–4(f)(6)                                  . . . Interpretations and Policies:
                                             SECURITIES AND EXCHANGE                                                                                                       .01–.14 (No change).
                                                                                                           thereunder.4 The Commission is
                                             COMMISSION                                                                                                                  *        *       *       *       *
                                                                                                           publishing this notice to solicit
                                             [Release No. 34–83165; File No. SR–CBOE–                      comments on the proposed rule change                             The text of the proposed rule change
                                             2018–038]                                                     from interested persons.                                      is also available on the Exchange’s
                                                                                                           I. Self-Regulatory Organization’s                             website (http://www.cboe.com/
                                             Self-Regulatory Organizations; Cboe
                                                                                                           Statement of the Terms of Substance of                        AboutCBOE/
                                             Exchange, Inc.; Notice of Filing and
                                                                                                           the Proposed Rule Change                                      CBOELegalRegulatoryHome.aspx), at
                                             Immediate Effectiveness of a Proposed
                                                                                                                                                                         the Exchange’s Office of the Secretary,
                                             Rule Change To Renew the
                                                                                                              The Exchange proposes to renew an                          and at the Commission’s Public
                                             Nonstandard Expirations Pilot
                                                                                                           existing pilot program until November                         Reference Room.
                                             Program
                                                                                                           5, 2018.
                                                                                                                                                                         II. Self-Regulatory Organization’s
amozie on DSK3GDR082PROD with NOTICES




                                             May 3, 2018.
                                                                                                           (additions are italicized; deletions are                      Statement of the Purpose of, and
                                                Pursuant to Section 19(b)(1) of the                        [bracketed])                                                  Statutory Basis for, the Proposed Rule
                                             Securities Exchange Act of 1934 (the                                                                                        Change
                                             ‘‘Act’’),1 and Rule 19b–4 thereunder,2                        *          *      *       *      *
                                                                                                                                                                           In its filing with the Commission, the
                                               1 15 U.S.C. 78s(b)(1).                                          3 15 U.S.C. 78s(b)(3)(A)(iii).                            Exchange included statements
                                               2 17 CFR 240.19b–4.                                             4 17 CFR 240.19b–4(f)(6).                                 concerning the purpose of and basis for


                                        VerDate Sep<11>2014     17:39 May 08, 2018     Jkt 244001   PO 00000      Frm 00060      Fmt 4703   Sfmt 4703   E:\FR\FM\09MYN1.SGM           09MYN1


                                                                           Federal Register / Vol. 83, No. 90 / Wednesday, May 9, 2018 / Notices                                             21317

                                             the proposed rule change and discussed                  Program is scheduled to expire on May                   The Exchange believes that the
                                             any comments it received on the                         3, 2018. The Exchange believes that the               proposed extension of the Program will
                                             proposed rule change. The text of these                 Program has been successful and well                  not have an adverse impact on capacity.
                                             statements may be examined at the                       received by its Trading Permit Holders
                                                                                                                                                           2. Statutory Basis
                                             places specified in Item IV below. The                  and the investing public during that the
                                             Exchange has prepared summaries, set                    time that it has been in operation. The                  The Exchange believes the proposed
                                             forth in sections A, B, and C below, of                 Exchange hereby proposes to extend the                rule change is consistent with the
                                             the most significant aspects of such                    Program until November 5, 2018. This                  Securities Exchange Act of 1934 (the
                                             statements.                                             proposal does not request any other                   ‘‘Act’’) and the rules and regulations
                                                                                                     changes to the Program.                               thereunder applicable to the Exchange
                                             A. Self-Regulatory Organization’s                                                                             and, in particular, the requirements of
                                             Statement of the Purpose of, and the                       Pursuant to the order approving the
                                                                                                     establishment of the Program, two                     Section 6(b) of the Act.10 Specifically,
                                             Statutory Basis for, the Proposed Rule                                                                        the Exchange believes the proposed rule
                                             Change                                                  months prior to the conclusion of the
                                                                                                     pilot period, Cboe Options is required to             change is consistent with the Section
                                             1. Purpose                                              submit an annual report to the                        6(b)(5) 11 requirements that the rules of
                                                On September 14, 2010, the                           Commission, which addresses the                       an exchange be designed to prevent
                                             Commission approved a Cboe Options                      following areas: Analysis of Volume &                 fraudulent and manipulative acts and
                                             proposal to establish a pilot program                   Open Interest, Monthly Analysis of                    practices, to promote just and equitable
                                             under which the Exchange is permitted                   Weekly Expirations & EOM Trading                      principles of trade, to foster cooperation
                                             to list P.M.-settled options on broad-                  Patterns and Provisional Analysis of                  and coordination with persons engaged
                                             based indexes to expire on (a) any                      Index Price Volatility. The Exchange has              in regulating, clearing, settling,
                                             Friday of the month, other than the                     submitted, under separate cover, the                  processing information with respect to,
                                             third Friday-of-the-month, and (b) the                  annual report in connection with the                  and facilitation transactions in
                                             last trading day of the month.5 On                      present proposed rule change.                         securities, to remove impediments to
                                             January 14, 2016, the Commission                        Additionally, the Exchange will provide               and perfect the mechanism of a free and
                                             approved a Cboe Options proposal to                     the Commission with any additional                    open market and a national market
                                             expand the pilot program to allow P.M.-                 data or analyses the Commission                       system, and, in general, to protect
                                             settled options on broad-based indexes                  requests because it deems such data or                investors and the public interest.
                                             to expire on any Wednesday of month,                    analyses necessary to determine                       Additionally, the Exchange believes the
                                             other than those that coincide with an                  whether the Program is consistent with                proposed rule change is consistent with
                                             EOM.6 On August 10, 2016, the                           the Exchange Act. The Exchange will                   the Section 6(b)(5) 12 requirement that
                                             Commission approved a Cboe Options                      make public all data and analyses                     the rules of an exchange not be designed
                                             proposal to expand the pilot program to                 previously submitted to the Commission                to permit unfair discrimination between
                                             allow P.M.-settled options on broad-                    under the Program, as well as any data                customers, issuers, brokers, or dealers.
                                                                                                     and analyses it makes to the                             In particular, the Exchange believes
                                             based indexes to expire on any Monday
                                                                                                     Commission under the Program in the                   that the Program has been successful to
                                             of month, other than those that coincide
                                                                                                     future.                                               date and states that it has not
                                             with an EOM.7 Under the terms of the
                                                                                                        If, in the future, the Exchange                    encountered any problems with the
                                             Nonstandard Expirations Pilot Program
                                                                                                     proposes an additional extension of the               Program. The proposed rule change
                                             (‘‘Program’’), Weekly Expirations and
                                                                                                     Program, or should the Exchange                       allows for an extension of the Program
                                             EOMs are permitted on any broad-based
                                                                                                     propose to make the Program permanent                 for the benefit of market participants.
                                             index that is eligible for regular options
                                                                                                     (which the Exchange currently intends                 Additionally, the Exchange believes that
                                             trading. Weekly Expirations and EOMs
                                                                                                     to do), the Exchange will submit an                   there is demand for the expirations
                                             are cash-settled and have European-
                                                                                                     annual report (addressing the same                    offered under the Program and believes
                                             style exercise. The proposal became
                                                                                                     areas referenced above and consistent                 that that Weekly Expirations and EOMs
                                             effective on a pilot basis for a period of
                                                                                                     with the order approving the                          will continue to provide the investing
                                             fourteen months that commenced on the
                                                                                                     establishment of the Program) to the                  public and other market participants
                                             next full month after approval was
                                                                                                     Commission at least two months prior to               increased opportunities to better
                                             received to establish the Program 8 and
                                                                                                     the expiration date of the Program. Any               manage their risk exposure.
                                             was subsequently extended.9 The
                                                                                                     positions established under the Program               B. Self-Regulatory Organization’s
                                               5 See  Securities Exchange Act Release 62911          will not be impacted by the expiration                Statement on Burden on Competition
                                             (September 14, 2010), 75 FR 57539 (September 21,        of the Program.
                                             2010) (order approving SR–CBOE–2009–075).                                                                       Cboe Options does not believe that
                                                6 See Securities Exchange Act Release 76909             The Exchange believes there is                     the proposed rule change will impose
                                             (January 14, 2016), 81 FR 3512 (January 21, 2016)       sufficient investor interest and demand               any burden on competition that is not
                                             (order approving SR–CBOE–2015–106).                     in the Program to warrant its extension.              necessary or appropriate in furtherance
                                                7 See Securities Exchange Act Release 78531
                                                                                                     The Exchange believes that the Program                of the purposes of the Act. Specifically,
                                             (August 10, 2016), 81 FR 54643 (August 16, 2016)        has provided investors with additional
                                             (order approving SR–CBOE–2016–046).                                                                           the Exchange believes that, by extending
                                                8 Id.                                                means of managing their risk exposures                the expiration of the Program, the
                                                9 See Securities Exchange Act Release 65741          and carrying out their investment                     proposed rule change will allow for
                                             (November 14, 2011), 76 FR 72016 (November 21,          objectives. Furthermore, the Exchange                 further analysis of the Program and a
                                             2011) (immediately effective rule change extending      has not experienced any adverse market                determination of how the Program shall
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                                             the Program through February 14, 2013). See also        effects with respect to the Program.
                                             Securities Exchange Act Release 68933 (February                                                               be structured in the future. In doing so,
                                             14, 2013), 78 FR 12374 (February 22, 2013)                                                                    the proposed rule change will also serve
                                             (immediately effective rule change extending the        effective rule change extending the Program           to promote regulatory clarity and
                                             Program through April 14, 2014); 71836 (April 1,        through May 3, 2016); 76909 (January 14, 2016), 81
                                             2014), 79 FR 19139 (April 7, 2014) (immediately         FR 3512 (January 21, 2016) (extending the Program
                                                                                                                                                             10 15    U.S.C. 78f(b).
                                             effective rule change extending the Program             through May 3, 2017); and 80387 (April 6, 2017),
                                                                                                                                                             11 15    U.S.C. 78f(b)(5).
                                             through November 3, 2014); 73422 (October 24,           82 FR 17706 (April 12, 2017) (extending the
                                             2014), 79 FR 64640 (October 30, 2014) (immediately      Program through May 3, 2018).                           12 Id.




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                                             21318                           Federal Register / Vol. 83, No. 90 / Wednesday, May 9, 2018 / Notices

                                             consistency, thereby reducing burdens                     the proposed rule change to be operative              10:00 a.m. and 3:00 p.m. Copies of the
                                             on the marketplace and facilitating                       upon filing.17                                        filing also will be available for
                                             investor protection.                                         At any time within 60 days of the                  inspection and copying at the principal
                                                                                                       filing of the proposed rule change, the               office of the Exchange. All comments
                                             C. Self-Regulatory Organization’s                         Commission summarily may                              received will be posted without change.
                                             Statement on Comments on the                              temporarily suspend such rule change if               Persons submitting comments are
                                             Proposed Rule Change Received From                        it appears to the Commission that such                cautioned that we do not redact or edit
                                             Members, Participants, or Others                          action is necessary or appropriate in the             personal identifying information from
                                                                                                       public interest, for the protection of                comment submissions. You should
                                               The Exchange neither solicited nor                      investors, or otherwise in furtherance of             submit only information that you wish
                                             received comments on the proposed                         the purposes of the Act. If the                       to make available publicly. All
                                             rule change.                                              Commission takes such action, the                     submissions should refer to File
                                             III. Date of Effectiveness of the                         Commission shall institute proceedings                Number SR–CBOE–2018–038, and
                                             Proposed Rule Change and Timing for                       to determine whether the proposed rule                should be submitted on or before May
                                             Commission Action                                         should be approved or disapproved.                    30, 2018.
                                                                                                       IV. Solicitation of Comments                            For the Commission, by the Division of
                                                Because the proposed rule change                                                                             Trading and Markets, pursuant to delegated
                                             does not (i) significantly affect the                       Interested persons are invited to                   authority.18
                                             protection of investors or the public                     submit written data, views, and                       Eduardo A. Aleman,
                                             interest; (ii) impose any significant                     arguments concerning the foregoing,
                                                                                                                                                             Assistant Secretary.
                                             burden on competition; and (iii) become                   including whether the proposed rule
                                                                                                                                                             [FR Doc. 2018–09829 Filed 5–8–18; 8:45 am]
                                                                                                       change is consistent with the Act.
                                             operative for 30 days from the date on                                                                          BILLING CODE 8011–01–P
                                                                                                       Comments may be submitted by any of
                                             which it was filed, or such shorter time
                                                                                                       the following methods:
                                             as the Commission may designate if
                                             consistent with the protection of                         Electronic Comments                                   SECURITIES AND EXCHANGE
                                             investors and the public interest, the                      • Use the Commission’s internet                     COMMISSION
                                             proposed rule change has become                           comment form (http://www.sec.gov/
                                             effective pursuant to Section 19(b)(3)(A)                                                                       Proposed Collection; Comment
                                                                                                       rules/sro.shtml); or
                                             of the Act 13 and Rule 19b–4(f)(6)                          • Send an email to rule-comments@                   Request
                                             thereunder.14                                             sec.gov. Please include File Number SR–               Upon Written Request, Copies Available
                                                A proposed rule change filed under                     CBOE–2018–038 on the subject line.                     From: Securities and Exchange
                                             Rule 19b–4(f)(6) 15 normally does not                     Paper Comments                                         Commission, Office of FOIA Services,
                                             become operative for 30 days after the                                                                           100 F Street NE, Washington, DC
                                                                                                         • Send paper comments in triplicate                  20549–2736
                                             date of filing. However, pursuant to                      to Secretary, Securities and Exchange
                                             Rule 19b–4(f)(6)(iii),16 the Commission                   Commission, 100 F Street NE,                          Extension:
                                             may designate a shorter time if such                                                                              Rule 17g–7, SEC File No. 270–563, OMB
                                                                                                       Washington, DC 20549–1090.                                Control No. 3235–0656.
                                             action is consistent with the protection
                                                                                                       All submissions should refer to File
                                             of investors and the public interest. The                 Number SR–CBOE–2018–038. This file                       ** This corrected notice replaces the
                                             Exchange has asked the Commission to                      number should be included on the                      notice published on May 2, 2018 in the
                                             waive the 30-day operative delay so that                  subject line if email is used. To help the            Federal Register Vol. 83, No. 85, page
                                             the proposal may become operative                         Commission process and review your                    19370.
                                             immediately upon filing. The Exchange                                                                              Notice is hereby given that pursuant
                                                                                                       comments more efficiently, please use
                                             states that such waiver will allow the                                                                          to the Paperwork Reduction Act of 1995
                                                                                                       only one method. The Commission will
                                             Exchange to extend the pilot program                                                                            (44 U.S.C. 3501 et seq.), the Securities
                                                                                                       post all comments on the Commission’s
                                             prior to its expiration on May 3, 2018,                                                                         and Exchange Commission
                                                                                                       internet website (http://www.sec.gov/
                                             and maintain the status quo, thereby                                                                            (‘‘Commission’’) has submitted to the
                                                                                                       rules/sro.shtml). Copies of the                       Office of Management and Budget
                                             reducing market disruption. The                           submission, all subsequent
                                             Commission believes that waiving the                                                                            (‘‘OMB’’) a request for approval of
                                                                                                       amendments, all written statements                    extension of the previously approved
                                             30-day operative delay is consistent                      with respect to the proposed rule
                                             with the protection of investors and the                                                                        collection of information provided for in
                                                                                                       change that are filed with the                        Rule 17g–7 under the Securities
                                             public interest as it will allow the pilot                Commission, and all written                           Exchange Act of 1934 (15 U.S.C. 78a et
                                             program to continue uninterrupted,                        communications relating to the                        seq.).1
                                             thereby avoiding investor confusion that                  proposed rule change between the                         Rule 17g–7 contains disclosure
                                             could result from a temporary                             Commission and any person, other than                 requirements for Nationally Recognized
                                             interruption in the pilot program. For                    those that may be withheld from the                   Statistical Rating Organizations
                                             this reason, the Commission designates                    public in accordance with the                         (‘‘NRSROs’’) including certain
                                                                                                       provisions of 5 U.S.C. 552, will be                   information to be published when
                                               13 15  U.S.C. 78s(b)(3)(A).                             available for website viewing and                     taking a rating action with respect to a
                                               14 17  CFR 240.19b–4(f)(6). In addition, Rule 19b–      printing in the Commission’s Public                   credit rating. Currently, there are 10
                                             4(f)(6)(iii) requires the Exchange to give the            Reference Room, 100 F Street NE,
                                             Commission written notice of the Exchange’s intent                                                              credit rating agencies registered as
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                                             to file the proposed rule change, along with a brief      Washington, DC 20549, on official                     NRSROs with the Commission. The
                                             description and text of the proposed rule change,         business days between the hours of                    Commission estimates that the total
                                             at least five business days prior to the date of filing
                                             of the proposed rule change, or such shorter time
                                                                                                                                                             burden for respondents to comply with
                                                                                                          17 For purposes only of waiving the 30-day
                                             as designated by the Commission. The Exchange             operative delay, the Commission has also
                                                                                                                                                             Rule 17g–7 is 695,797 hours.
                                             has satisfied this requirement.                           considered the proposed rule’s impact on
                                                15 17 CFR 240.19b–4(f)(6).                                                                                     18 17   CFR 200.30–3(a)(12).
                                                                                                       efficiency, competition, and capital formation. See
                                                16 17 CFR 240.19b–4(f)(6)(iii).                        15 U.S.C. 78c(f).                                       1 See   17 CFR 240.17g–1 and 17 CFR 249b.300.



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Document Created: 2018-05-09 03:17:47
Document Modified: 2018-05-09 03:17:47
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation83 FR 21316 

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