83 FR 22550 - Self-Regulatory Organizations; Cboe Exchange, Inc.; Order Approving a Proposed Rule Change Relating to Flexibly Structured Options
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 94 (May 15, 2018)
Federal Register Volume 83, Issue 94 (May 15, 2018)
| Page Range | 22550-22552 | |
| FR Document | 2018-10272 |
[Federal Register Volume 83, Number 94 (Tuesday, May 15, 2018)] [Notices] [Pages 22550-22552] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-10272] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83205; File No. SR-CBOE-2018-008] Self-Regulatory Organizations; Cboe Exchange, Inc.; Order Approving a Proposed Rule Change Relating to Flexibly Structured Options May 9, 2018. I. Introduction On January 18, 2018, Cboe Exchange, Inc. (``Exchange'' or ``Cboe Options'') 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 amending Cboe Options's rules relating to the fungibility of Flexible Exchange Options (``FLEX Options''). The proposed rule change was published for comment in the Federal Register on February 8, 2018.\3\ On March 23, 2018, the Commission designated a longer period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether the proposed rule change should be disapproved.\4\ The Commission received no comment letters on the proposed rule change. This order approves the proposed rule change. --------------------------------------------------------------------------- \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''). \4\ See Securities Exchange Act Release No. 82936 (Mar. 23, 2018), 83 FR 13552 (Mar. 29, 2018). --------------------------------------------------------------------------- II. Description of the Proposed Rule Change In its filing, the Exchange proposed to amend Interpretation and Policy .02 to Rule 24A.4, which sets forth requirements relating to a FLEX Option that has the same terms as a Non-FLEX Option.\5\ --------------------------------------------------------------------------- \5\ See Cboe Options Rule 24A.1(q). --------------------------------------------------------------------------- First, Cboe Options has proposed to amend the rule to make all FLEX Options fungible with Non-FLEX Options that have identical terms.\6\ Currently, FLEX Options that have quarterly expirations,\7\ short term expirations,\8\ weekly expirations,\9\ and End of Month (``EOM'') expirations \10\ are not fungible with Non-FLEX Options with identical terms.\11\ The OCC [[Page 22551]] currently prohibits fungibility in quarterly and short-term options,\12\ so, as described in more detail below, Cboe Options proposes to delay the effectiveness of this proposed rule change to allow time for OCC to amend its bylaws. --------------------------------------------------------------------------- \6\ See proposed Cboe Options Rule 24A.4.02(a) (`[t]his Interpretation and Policy shall apply to all FLEX Options''). \7\ See Cboe Options Rules 5.5(e), 24.9(a)(2)(B), and 24.9(c). \8\ See Cboe Options Rules 5.5(d) and 24.9(a)(2)(A). \9\ See Cboe Options Rule 24.9(e). These are currently traded pursuant to the Nonstandard Expirations Pilot Program. \10\ Id. These are also traded pursuant to the Nonstandard Expiration Pilot Program. \11\ Cboe Options states in its proposal that FLEX Options with these expirations were not originally intended to be fungible. See Securities Exchange Release Act Nos. 62658 (August 5, 2010), 75 FR 49010, 49011 n.8 (August 12, 2010) (SR-CBOE-2009-075) (notice). The notice states that FLEX Options do not become fungible with subsequently introduced Non-FLEX structured quarterly and short term options, and that they will not be with End of Week (``EOW'') and EOM expirations because of their similarities to the quarterly and short term options. EOW expirations are now called weekly expirations as Cboe Options Rule 24.9(e) was amended to include Monday and Wednesday expirations. See also Securities Exchange Release Act No. 62911 (September 14, 2010), 75 FR 57539 (September 21, 2010) (SR-CBOE-2009-075) (approval order). \12\ See Article I of OCC By-Laws. --------------------------------------------------------------------------- Second, the Exchange has proposed to clarify that if the expiration date is an Exchange holiday, Cboe Options Rule 24A.4.02 shall designate the previous business day as the expiration date.\13\ However, for weekly expirations that expire on a Monday that is an Exchange holiday,\14\ Cboe Options Rule 24A.4.02 shall designate the business day that immediately follows the Exchange holiday as the expiration date.\15\ According to the Exchange, the proposed rule is designed to clarify that when the expiration of a Non-FLEX Option is moved to the business day immediately before (or after) the Exchange holiday, the FLEX Option that also expires on the day before (or after) will be fungible with the Non-FLEX Option.\16\ --------------------------------------------------------------------------- \13\ See Proposed Cboe Options Rule 24A.4.02(a). \14\ See Cboe Options Rule 24.9(e)(1). \15\ See Proposed Cboe Options Rule 24A.4.02(a). \16\ See Notice, supra note 3, at 5669. --------------------------------------------------------------------------- Third, Cboe Options has proposed to clarify that in the event a Non-FLEX American-style series is added intra-day, a FLEX position is permitted to be closed using FLEX trading procedures for the balance of the trading day on which the Non-FLEX series is added against another closing only FLEX position.\17\ The Exchange notes that when it was adopted, the Exchange intended to limit this provision to American- style exercises. According to the Exchange, American-style options face assignment risk because when a Non-FLEX Option is listed, the OCC cannot net the positions of the Non-FLEX Option and the FLEX Option with identical terms until the next business day.\18\ --------------------------------------------------------------------------- \17\ See proposed Cboe Options Rule 24A.4.02(b). \18\ See Notice, supra note 3, at 5669 n.7. See also Securities Exchange Act Release No. 62870 (September 8, 2010), 75 FR 56147 (September 15, 2010) (SR-CBOE-2010-078) (stating that there is assignment risk for American-style options only). The Commission notes that an American-style option may be exercised at any time during its life, whereas, a European-style option may only be exercised at the end of its life. --------------------------------------------------------------------------- Fourth, the Exchange has proposed several non-substantive changes that are designed to make the text easier to read. The Exchange believes that such changes will clarify that the fungibility provisions apply to FLEX Options series with terms identical to the terms of a Non-FLEX Options series.\19\ --------------------------------------------------------------------------- \19\ See Notice, supra note 3, at 5669. --------------------------------------------------------------------------- Finally, the proposed rule text provides that the Exchange's current rule will remain in effect until the effective date specified by the Exchange in a Regulatory Circular.\20\ The Regulatory Circular announcing the effective date shall be issued at least 30 days prior to the effective date \21\ and such effective date shall be no later than July 31, 2018.\22\ As noted in Cboe Options's proposal,\23\ the delayed effectiveness is intended to allow OCC time to amend its bylaws to eliminate its current restriction on fungibility of certain options. --------------------------------------------------------------------------- \20\ Id. at 5670. \21\ Id. \22\ Id. \23\ Id. --------------------------------------------------------------------------- III. Discussion and Commission Findings After careful review, the Commission finds that the proposed rule change is consistent with the requirements of the Act \24\ and the rules and regulations thereunder applicable to a national securities exchange.\25\ In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act,\26\ which requires 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. --------------------------------------------------------------------------- \24\ 15 U.S.C. 78f. \25\ In approving this proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). \26\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Commission notes that the rules concerning the fungibility of certain FLEX Options and Non-FLEX Options were previously approved by the Commission.\27\ The proposed rule change extends fungibility to quarterly expirations, short term expirations, and, to the nonstandard expiration pilot program weekly and EOM expirations. The Commission believes that amending Rule 24A.4.02 to allow these additional FLEX Options to become fungible with standardized options with identical terms could result in some benefits to FLEX Options participants in that it may potentially increase the liquidity available to traders of FLEX Options. As the Exchange noted in its rule proposal, this is because there are more market participants in the Non-FLEX Options and thus there is potentially more liquidity available to market participants with FLEX Options that will be able to exit their FLEX Options positions in the standardized Non-FLEX Option market.\28\ --------------------------------------------------------------------------- \27\ See Securities Exchange Act Release No. 59417 (Feb. 18, 2009), 74 FR 8591 (Feb. 25, 2009) (SR-CBOE-2009-115). \28\ See Notice, supra note 3, at 5670. --------------------------------------------------------------------------- Because FLEX Options in quarterly, short term, weekly, and EOM expirations are not fungible with their Non-FLEX counterparts, parallel markets in these expirations exist--one FLEX and one Non-FLEX. The Commission previously stated that it is concerned that FLEX Options could act as a surrogate for trading in standardized options.\29\ The Commission recognizes that the FLEX Options market is designed to combine the benefits of an auction market with the features of negotiated transactions, and therefore continuous quotes may not always be available. Permitting more expirations in FLEX Options to be fungible with their Non-FLEX counterparts could help to ensure that market participants cannot avoid the protections provided to investors in the standardized market for these expirations by trading FLEX Options. Specifically, once a Non-FLEX series is open for trading, new FLEX Options are not permitted in that series. In addition, once a Non- FLEX Options series is open, all outstanding FLEX Options in the same series become fungible with Non-FLEX Options in the standardized market, are traded pursuant to standardized market trading rules, and are aggregated for position and exercise limit purposes. Allowing these FLEX Options to be fungible with their Non-FLEX counterparts could potentially address some of these surrogacy concerns. --------------------------------------------------------------------------- \29\ See 74 FR at 8593. --------------------------------------------------------------------------- Nevertheless, the FLEX market was originally intended to allow customization of option terms that were not available in the standardized options. While this has evolved over time with the current fungibility provisions, as the additional classes of options noted above are allowed to become fungible with identical term standardized options, some of which have much shorter terms to expiration, we expect the Exchange to carefully monitor the fungible FLEX Options (and standardized options counterparts) to ensure that they are not being used in a way to trade ahead and/or gain an advantage over other market participants prior to the standardized [[Page 22552]] options becoming available to all market participants. Furthermore, the Commission expects the Cboe Options to report any undue effects that may occur as a result of these fungibility rule changes, including taking prompt action should any unanticipated consequences occur. The Commission also expects, prior to the effective date of the new rule, the Exchange to address whether additional position limit aggregation rules should be adopted prior to the rule's delayed implementation date. We note that currently the FLEX rules require that certain FLEX Options positions be aggregated with the position limits in the standardized market.\30\ --------------------------------------------------------------------------- \30\ See Cboe Options Rule 24A.7, concerning FLEX position limits and reporting requirements. --------------------------------------------------------------------------- The Commission believes that the remaining proposed changes will help protect investors and the public interest by providing clarity and transparency to the rules. The proposed rule text regarding Exchange holidays will clarify the fungibility of FLEX Options with expiration dates on Exchange holidays and are consistent with the expiration of the same standardized options on Exchange holidays. Amending the intra- day add provision to state that it applies solely to American-style expirations will codify in the rule text the Exchange's original intent with respect to this provision. Further, the other non-substantive, clarifying changes will make the rule easier to read and understand. Finally, as noted above the Exchange cannot actually implement this rule change immediately because OCC bylaws currently restrict fungibility of quarterly and short term options. The Commission believes that the delayed implementation date of July 31, 2018 should provide OCC with time to consider fungibility in quarterly and short- term options and determine whether to amend the OCC By-laws to accommodate the changes being adopted by the Exchange. The Exchange has also committed to announce the implementation of the change at least 30 days prior to the effective date pursuant to a Regulatory Circular, which should provide adequate advance notice to market participants. To the extent OCC is not able to implement a bylaw change at or prior to the July 31, 2018, we would expect the Exchange to amend its rules or extend the implementation date. For the reasons above, the Commission finds that the proposed rule change is consistent with the Act. IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,\31\ that the proposed rule change (SR-CBOE-2018-008) be, and hereby is, approved. --------------------------------------------------------------------------- \31\ 15 U.S.C. 78s(b)(2). \32\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\32\ Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-10272 Filed 5-14-18; 8:45 am] BILLING CODE 8011-01-P
![22550 Federal Register / Vol. 83, No. 94 / Tuesday, May 15, 2018 / Notices
standing in the financial markets. The All submissions should refer to File Exchange Act of 1934 (‘‘Act’’) 1 and Rule
Exchange believes that fees for Number SR–C2–2018–006. This file 19b–4 thereunder,2 a proposed rule
connectivity are constrained by the number should be included on the change amending Cboe Options’s rules
robust competition for order flow among subject line if email is used. To help the relating to the fungibility of Flexible
exchanges and non-exchange markets. Commission process and review your Exchange Options (‘‘FLEX Options’’).
Further, excessive fees for connectivity, comments more efficiently, please use The proposed rule change was
would serve to impair an exchange’s only one method. The Commission will published for comment in the Federal
ability to compete for order flow rather post all comments on the Commission’s Register on February 8, 2018.3 On
than burdening competition. The internet website (http://www.sec.gov/ March 23, 2018, the Commission
Exchange also does not believe the rules/sro.shtml). Copies of the designated a longer period within which
proposed rule change would impact submission, all subsequent to approve the proposed rule change,
intramarket competition as it would amendments, all written statements disapprove the proposed rule change, or
apply to all TPHs and non-TPHs with respect to the proposed rule institute proceedings to determine
equally. change that are filed with the whether the proposed rule change
Commission, and all written should be disapproved.4 The
C. Self-Regulatory Organization’s communications relating to the Commission received no comment
Statement on Comments on the proposed rule change between the letters on the proposed rule change.
Proposed Rule Change Received From Commission and any person, other than This order approves the proposed rule
Members, Participants, or Others those that may be withheld from the change.
The Exchange neither solicited nor public in accordance with the
II. Description of the Proposed Rule
received comments on the proposed provisions of 5 U.S.C. 552, will be
Change
rule change. available for website viewing and
printing in the Commission’s Public In its filing, the Exchange proposed to
III. Date of Effectiveness of the Reference Room, 100 F Street NE, amend Interpretation and Policy .02 to
Proposed Rule Change and Timing for Washington, DC 20549, on official Rule 24A.4, which sets forth
Commission Action business days between the hours of requirements relating to a FLEX Option
The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the that has the same terms as a Non-FLEX
effective pursuant to Section 19(b)(3)(A) filing also will be available for Option.5
of the Act 19 and paragraph (f) of Rule inspection and copying at the principal First, Cboe Options has proposed to
19b–4 20 thereunder. At any time within office of the Exchange. All comments amend the rule to make all FLEX
60 days of the filing of the proposed rule received will be posted without change. Options fungible with Non-FLEX
change, the Commission summarily may Persons submitting comments are Options that have identical terms.6
temporarily suspend such rule change if cautioned that we do not redact or edit Currently, FLEX Options that have
it appears to the Commission that such personal identifying information from quarterly expirations,7 short term
action is necessary or appropriate in the comment submissions. You should expirations,8 weekly expirations,9 and
public interest, for the protection of submit only information that you wish End of Month (‘‘EOM’’) expirations 10
investors, or otherwise in furtherance of to make available publicly. All are not fungible with Non-FLEX Options
the purposes of the Act. If the submissions should refer to File with identical terms.11 The OCC
Commission takes such action, the Number SR–C2–2018–006 and should
1 15 U.S.C. 78s(b)(1).
Commission will institute proceedings be submitted on or before June 5, 2018. 2 17 CFR 240.19b–4.
to determine whether the proposed rule For the Commission, by the Division of 3 See Securities Exchange Act Release No. 82622
change should be approved or Trading and Markets, pursuant to delegated (Feb. 2, 2018), 83 FR 5668 (Feb. 8, 2018) (‘‘Notice’’).
disapproved. authority.21 4 See Securities Exchange Act Release No. 82936
Eduardo A. Aleman, (Mar. 23, 2018), 83 FR 13552 (Mar. 29, 2018).
IV. Solicitation of Comments 5 See Cboe Options Rule 24A.1(q).
Assistant Secretary. 6 See proposed Cboe Options Rule 24A.4.02(a)
Interested persons are invited to [FR Doc. 2018–10261 Filed 5–14–18; 8:45 am] (‘[t]his Interpretation and Policy shall apply to all
submit written data, views, and BILLING CODE 8011–01–P FLEX Options’’).
arguments concerning the foregoing, 7 See Cboe Options Rules 5.5(e), 24.9(a)(2)(B), and
including whether the proposed rule 24.9(c).
change is consistent with the Act. SECURITIES AND EXCHANGE
8 See Cboe Options Rules 5.5(d) and 24.9(a)(2)(A).
9 See Cboe Options Rule 24.9(e). These are
Comments may be submitted by any of COMMISSION currently traded pursuant to the Nonstandard
the following methods: Expirations Pilot Program.
[Release No. 34–83205; File No. SR–CBOE–
10 Id. These are also traded pursuant to the
Electronic Comments 2018–008]
Nonstandard Expiration Pilot Program.
• Use the Commission’s internet Self-Regulatory Organizations; Cboe
11 Cboe Options states in its proposal that FLEX
comment form (http://www.sec.gov/ Exchange, Inc.; Order Approving a
Options with these expirations were not originally
rules/sro.shtml); or intended to be fungible. See Securities Exchange
Proposed Rule Change Relating to Release Act Nos. 62658 (August 5, 2010), 75 FR
• Send an email to rule-comments@ Flexibly Structured Options 49010, 49011 n.8 (August 12, 2010) (SR–CBOE–
sec.gov. Please include File Number SR– 2009–075) (notice). The notice states that FLEX
C2–2018–006 on the subject line. May 9, 2018. Options do not become fungible with subsequently
introduced Non-FLEX structured quarterly and
Paper Comments I. Introduction short term options, and that they will not be with
daltland on DSKBBV9HB2PROD with NOTICES
End of Week (‘‘EOW’’) and EOM expirations
• Send paper comments in triplicate On January 18, 2018, Cboe Exchange, because of their similarities to the quarterly and
to Secretary, Securities and Exchange Inc. (‘‘Exchange’’ or ‘‘Cboe Options’’) short term options. EOW expirations are now called
Commission, 100 F Street NE, filed with the Securities and Exchange weekly expirations as Cboe Options Rule 24.9(e)
Commission (‘‘Commission’’), pursuant was amended to include Monday and Wednesday
Washington, DC 20549–1090. expirations. See also Securities Exchange Release
to Section 19(b)(1) of the Securities Act No. 62911 (September 14, 2010), 75 FR 57539
19 15 U.S.C. 78s(b)(3)(A). (September 21, 2010) (SR–CBOE–2009–075)
20 17 CFR 240.19b–4(f). 21 17 CFR 200.30–3(a)(12). (approval order).
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![22552 Federal Register / Vol. 83, No. 94 / Tuesday, May 15, 2018 / Notices
options becoming available to all market IV. Conclusion the proposed rule change and discussed
participants. It is therefore ordered, pursuant to any comments it received on the
Furthermore, the Commission expects Section 19(b)(2) of the Act,31 that the proposed rule change. The text of these
the Cboe Options to report any undue proposed rule change (SR–CBOE–2018– statements may be examined at the
effects that may occur as a result of 008) be, and hereby is, approved. places specified in Item IV below. The
these fungibility rule changes, including Exchange has prepared summaries, set
For the Commission, by the Division of
taking prompt action should any forth in sections A, B, and C below, of
Trading and Markets, pursuant to delegated
unanticipated consequences occur. The authority.32 the most significant aspects of such
Commission also expects, prior to the Eduardo A. Aleman,
statements.
effective date of the new rule, the Assistant Secretary. A. Self-Regulatory Organization’s
Exchange to address whether additional [FR Doc. 2018–10272 Filed 5–14–18; 8:45 am] Statement of the Purpose of, and the
position limit aggregation rules should BILLING CODE 8011–01–P Statutory Basis for, the Proposed Rule
be adopted prior to the rule’s delayed Change
implementation date. We note that
currently the FLEX rules require that 1. Purpose
SECURITIES AND EXCHANGE
certain FLEX Options positions be COMMISSION The Exchange proposes to
aggregated with the position limits in memorialize its order and execution
[Release No. 34–83199; File No. SR–BX–
the standardized market.30 information into Chapter VI, Section 19,
2018–016]
The Commission believes that the entitled ‘‘Data Feeds.’’ The Exchange
remaining proposed changes will help Self-Regulatory Organizations; Nasdaq proposes to rename this rule ‘‘Data
protect investors and the public interest BX, Inc.; Notice of Filing and Feeds and Trade Information.’’ The
by providing clarity and transparency to Immediate Effectiveness of a Proposed Exchange proposes other grammatical
the rules. The proposed rule text Rule Change To Memorialize Its Order corrections in Section 19(a) as well.
regarding Exchange holidays will clarify and Execution Information Into Section 19(b)
the fungibility of FLEX Options with Chapter VI, Section 19, Entitled Data
expiration dates on Exchange holidays Feeds First, the Exchange proposes to adopt
and are consistent with the expiration of a new Section 19(b) and memorialize
May 9, 2018. the following order and execution
the same standardized options on
Pursuant to Section 19(b)(1) of the information which were previously filed
Exchange holidays. Amending the intra- Securities Exchange Act of 1934 (the
day add provision to state that it applies by the Exchange: (1) CTI; 3 (2)
‘‘Act’’),1 and Rule 19b–4 thereunder,2 TradeInfo 4; and (3) FIX DROP.5
solely to American-style expirations notice is hereby given that on April 27,
will codify in the rule text the The Exchange originally noted in the
2018, Nasdaq BX, Inc. (‘‘BX’’ or CTI and FIX DROP Filing that CTI offers
Exchange’s original intent with respect ‘‘Exchange’’) filed with the Securities
to this provision. Further, the other non- real-time clearing trade updates.6 The
and Exchange Commission message containing the trade details is
substantive, clarifying changes will (‘‘Commission’’) the proposed rule
make the rule easier to read and also simultaneously sent to The Options
change as described in Items I and II Clearing Corporation. The trade
understand. below, which Items have been prepared messages are routed to a member’s
Finally, as noted above the Exchange by the Exchange. The Commission is connection containing certain
cannot actually implement this rule publishing this notice to solicit information. The administrative and
change immediately because OCC comments on the proposed rule change market event messages include, but are
bylaws currently restrict fungibility of from interested persons. not limited to: System event messages to
quarterly and short term options. The communicate operational-related
I. Self-Regulatory Organization’s
Commission believes that the delayed events; options directory messages to
Statement of the Terms of Substance of
implementation date of July 31, 2018 relay basic option symbol and contract
the Proposed Rule Change
should provide OCC with time to information for options traded on the
consider fungibility in quarterly and The Exchange proposes to a proposal
to memorialize its order and execution Exchange; complex strategy messages to
short-term options and determine relay information for those strategies
whether to amend the OCC By-laws to information into Chapter VI, Section 19,
entitled ‘‘Data Feeds.’’ traded on the Exchange; trading action
accommodate the changes being messages to inform market participants
adopted by the Exchange. The Exchange The text of the proposed rule change
is available on the Exchange’s website at when a specific option or strategy is
has also committed to announce the halted or released for trading on the
implementation of the change at least 30 http://nasdaqbx.cchwallstreet.com/, at
the principal office of the Exchange, and Exchange; and an indicator which
days prior to the effective date pursuant distinguishes electronic and non-
to a Regulatory Circular, which should at the Commission’s Public Reference
Room. electronically delivered orders.
provide adequate advance notice to
market participants. To the extent OCC II. Self-Regulatory Organization’s 3 See Securities Exchange Act Release No. 73894
is not able to implement a bylaw change Statement of the Purpose of, and the (December 19, 2014), 79 FR 78119 (December 29,
at or prior to the July 31, 2018, we Statutory Basis for, the Proposed Rule 1014) (SR–BX–2014–060) (‘‘CTI and FIX DROP
would expect the Exchange to amend its Change Filing’’).
4 See Securities Exchange Act Release No. 60826
rules or extend the implementation
In its filing with the Commission, the
daltland on DSKBBV9HB2PROD with NOTICES
(October 14, 2009), 74 FR 54605 (October 22, 2009)
date. (SR–BX–2009–062) (‘‘TradeInfo Filing’’).
Exchange included statements
For the reasons above, the concerning the purpose of and basis for 5 See note 3 above.
Commission finds that the proposed 6 A real-time clearing trade update is a message
rule change is consistent with the Act. 31 15
that is sent to a member after an execution has
U.S.C. 78s(b)(2). occurred and contains trade details. See Securities
32 17 CFR 200.30–3(a)(12). Exchange Act Release No. 73894 (December 19,
30 See Cboe Options Rule 24A.7, concerning 1 15 U.S.C. 78s(b)(1).
2014), 79 FR 78119 (December 29, 1014) (SR–BX–
FLEX position limits and reporting requirements. 2 17 CFR 240.19b–4. 2014–060).
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Document Created: 2018-05-15 00:33:56
Document Modified: 2018-05-15 00:33:56
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