83_FR_23417 83 FR 23320 - Self-Regulatory Organizations; Cboe C2 Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 6.11., Regarding the Opening Process for Index Options

83 FR 23320 - Self-Regulatory Organizations; Cboe C2 Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 6.11., Regarding the Opening Process for Index Options

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 97 (May 18, 2018)

Page Range23320-23323
FR Document2018-10601

Federal Register, Volume 83 Issue 97 (Friday, May 18, 2018)
[Federal Register Volume 83, Number 97 (Friday, May 18, 2018)]
[Notices]
[Pages 23320-23323]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-10601]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83225; File No. SR-C2-2018-009]


Self-Regulatory Organizations; Cboe C2 Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
Rule 6.11., Regarding the Opening Process for Index Options

May 14, 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 9, 2018, Cboe C2 Exchange, Inc. (the ``Exchange'' or 
``C2'') 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.
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    \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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the opening process with respect to 
index options. The text of the proposed rule change is provided below.
(additions are italicized; deletions are [bracketed])
* * * * *

Cboe C2 Exchange, Inc.

Rules

* * * * *

Rule 6.11. Opening Process

    (a) Opening Process.
    (1) No change.
    (2) Opening Price.
    (A) Equity Options. The System determines a single price at 
which a particular equity option series will be opened (the 
``Opening Price'') within 30 seconds of the First Listing Market 
Transaction[ or 9:30 a.m., as applicable]. If there are no contracts 
in a series that would execute at any price, the System opens the 
series for trading without determining an Opening Price. The Opening 
Price, if valid pursuant to subparagraph (3), of a series will be:
    ([A]i) If there is both an NBB and an NBO, the midpoint of the 
NBBO (if the midpoint is a half increment, the System rounds down to 
the nearest minimum increment) (the ``NBBO Midpoint'');
    ([B]ii) if the NBBO Midpoint is not a valid price, the last 
disseminated transaction price in the series after 9:30 a.m. (the 
``Last Print''); or
    ([C]iii) if the NBBO Midpoint and the Last Print are not valid 
prices, the last disseminated transaction in the series from the 
previous trading day (the ``Previous Close'').
    If the NBBO Midpoint, Last Print, and Previous Close are not 
valid, the Exchange in its discretion may extend the Order Entry 
Period by up to 30 seconds or open the series for trading.

[[Page 23321]]

    (B) Index Options. The System determines the Opening Price 
within 30 seconds of an away options exchange(s) disseminating a 
quote in a series. Following an away options exchange's 
dissemination of a quote in a series, if there are no contracts in a 
series that would execute at any price, the System opens the series 
for trading without determining an Opening Price. The Opening Price, 
if valid pursuant to subparagraph (3), of a series will be the NBBO 
Midpoint. If the NBBO Midpoint is not valid, the Exchange in its 
discretion may extend the Order Entry Period by up to 30 seconds or 
open the series for trading.
    (3) Validating the Opening Price. For purposes of subparagraph 
(a)(2):
    (A) The NBBO Midpoint and, for equity options, the Last Print[,] 
or the Previous Close, is a valid price if it is not outside the 
NBBO, and the price is no more than the following Minimum Amount 
away from the NBB or NBO for the series:

------------------------------------------------------------------------
                           NBB                            Minimum amount
------------------------------------------------------------------------
Below $2.00.............................................           $0.25
$2.00 to $5.00..........................................            0.40
Above $5.00 to $10.00...................................            0.50
Above $10.00 to $20.00..................................            0.80
Above $20.00 to $50.00..................................            1.00
Above $50.00 to $100.00.................................            1.50
Above $100.00...........................................            2.00
------------------------------------------------------------------------

and

    (B) for equity options, the Last Print or Previous Close is a 
valid price if there is no NBB and no NBO, or there is a NBB (NBO) 
and no NBO (NBB) and the price is equal to or greater (less) than 
the NBB (NBO).
    (4)-(5) No change.
    (b)-(d) 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 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
    The proposed rule change amends the opening process with respect to 
index options. C2 intends to migrate its technology onto the same 
trading platform as one of its affiliated exchanges, Cboe EDGX 
Exchange, Inc. (``EDGX''). C2 recently submitted a proposed rule change 
to, among other things, align certain system functionality with EDGX, 
including the opening process.\5\ Pursuant to the opening process in C2 
Rule 6.11(a)(1), after a time period determined by the Exchange 
following the first transaction in the securities underlying the 
options on the primary market that is disseminated after 9:30 a.m. with 
respect to equity options, or following 9:30 a.m. with respect to index 
options, the related option series open automatically in a random 
order, staggered over regular intervals of time pursuant to 
subparagraphs (a)(2) through (5). Rule 6.11(a)(2) states the System 
determines a price at which a particular option series will be opened 
(the ``Opening Price'') within 30 seconds of the applicable triggering 
event noted above. If there are no contracts in a series that would 
execute at any price, the System opens the series for trading without 
determining an Opening Price. The Opening Price, if valid, of a series 
will be:
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    \5\ See SR-C2-2018-005 (April 27, 2018). That proposed rule 
change as filed for immediate effectiveness and a request for a 
waiver of the 30-day operative delay to permit effectiveness on May 
14, 2018, the date on which the proposed C2 technology migration is 
currently expected to occur. The rule text and numbers in this 
filing reference the rule text and numbers in that filing.
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     If there is both an NBB and an NBO, the midpoint of the 
NBBO (if the midpoint is a half increment, the System rounds down to 
the nearest minimum increment) (the ``NBBO Midpoint'');
     if the NBBO Midpoint is not a valid price, the last 
disseminated transaction price in the series after 9:30 a.m. (the 
``Last Print''); or
     if the NBBO Midpoint and the Last Print are not valid 
prices, the last disseminated transaction in the series from the 
previous trading day (the ``Previous Close'').
    If the NBBO Midpoint, Last Print, and Previous Close are not valid, 
the Exchange in its discretion may extend the order entry period by up 
to 30 seconds or open the series for trading (a ``contingent 
opening'').
    Pursuant to Rule 6.11(a)(3), the NBBO Midpoint, the Last Print, or 
the Previous Close is a valid price if it is no more than a specified 
minimum amount away from the national best bid or offer for the series. 
Additionally, the Last Print or Previous Close is a valid price if 
there is no NBB and no NBO, or if there is a NBB (NBO) and no NBO (NBB) 
and the price is equal to or greater (less) than the NBB (NBO). Under 
this Opening Process, if a series has not opened yet on another 
exchange on a trading (and thus there is no NBBO and no Last Print), if 
there is a Previous Close Price, it will be a valid price and will be 
the Opening Price. Additionally, if there are no crossed contracts in a 
series, the series opens immediately following the time period 
referenced above.
    The Exchange proposes to modify this process with respect to index 
options. Pursuant to the proposed rule change, for index options, the 
System will determine the Opening Price within 30 seconds of an away 
options exchange(s) disseminating a quote in a series. Following an 
away options exchange's dissemination of a quote in a series, if there 
are no contracts in a series that would execute at any price, the 
System opens the series for trading without determining an Opening 
Price. The Opening Price, if valid, of a series will be the NBBO 
Midpoint. If the NBBO Midpoint is not valid, the Exchange in its 
discretion may extend the order entry period by up to 30 seconds or 
open the series for trading. In other words, the proposed rule change 
provides that an index option series will not open (with or without a 
trade) until after the series is open on another exchange. To the 
extent the Exchange receives a quote from another Exchange within the 
time period referenced above, and there are contracts that may trade, 
the Opening Process will essentially be the same, and a series will 
open with the NBBO Midpoint as an Opening Price (if valid). 
Additionally, the Exchange will continue to have the ability to use a 
contingent opening to open a series for trading if there is no valid 
Opening Price. The proposed rule change delays opening of a series on 
C2 in an index option series if there are no crossed contracts, and 
eliminates the possibility to open using the Last Print or Previous 
Close (as those will generally not be necessary if C2 waits for another 
exchange to open).
    Currently, Russell 2000 Index (``RUT'') options is the only index 
option class trading on C2. RUT options also trade on Cboe Exchange, 
Inc. (``Cboe Options''), an affiliated exchange of C2. Under current C2 
Rule 6.11, if a RUT series was open on Cboe Options,

[[Page 23322]]

and if there are crossed orders on C2, the RUT series on C2 would open 
with an Opening Price equal to the NBBO Midpoint (if valid). If a RUT 
series was not yet open on C2 after 9:30 a.m., and there was a Previous 
Close for the series, the series would open on C2 with the Previous 
Close as the Opening Price. If there are no crossing orders on C2, a 
RUT series would open without an opening price, possibly before the RUT 
series was open on Cboe Options.
    RUT options on Cboe Options generally open within 30 seconds after 
9:30 a.m., and thus the Exchange expects RUT options on C2 following 
the technology migration to open for trading within 30 seconds (as set 
forth in the rule) at an Opening Price equal to the NBBO Midpoint if 
there are orders that can be crossed. However, it will be possible for 
a RUT series to open prior to the opening of that series on Cboe 
Options. The series on C2 would open without an Opening Price (if there 
are no crossed orders) or with an Opening Price equal to the Previous 
Close (if there are crossed orders) prior to the settlement value 
determination being completed on Cboe Options. If this were to occur, 
trading on C2 may then be occurring at very different prices than what 
is ultimately the opening trade price on Cboe Options. This is 
significant because, on certain dates, Cboe Options uses prices of RUT 
options trading on Cboe Options to determine settlement values for 
volatility index derivatives.\6\ While trading in these options on 
volatility index derivative settlement days also generally opens within 
a few seconds after 9:30, there have been times when series being used 
to determine the settlement value took longer to open. Trading on 
another Exchange while Cboe Options is not yet open may impact the 
volatility settlement value determination and disrupt trading of 
volatility index derivatives. The proposed rule change eliminates the 
possibility of RUT options on C2 automatically opening for trading 
prior to those options being open on Cboe Options and thus interfering 
with the calculation of volatility index derivative settlement values.
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    \6\ See Cboe Options Rule 6.2, Interpretation and Policy .01.
---------------------------------------------------------------------------

    While options exchanges have varying opening processes, the opening 
process on Nasdaq BX, LLC (``BX'') is similar to the proposed rule 
change. Pursuant to BX Rule Section 8(b), if there is a possible trade 
on BX, a series will open with a valid width NBBO.\7\ This is similar 
to the proposed rule change, in that a valid NBBO Midpoint must be 
present for an index option series to open with a trade (which on C2 
would only occur if another exchange was open for trading, because on 
C2, the NBBO that is used to determine the Opening Price is based on 
disseminated quotes of other exchanges and does not include orders and 
quotes on C2 prior to the opening of trading).\8\ Additionally, if no 
trade is possible on BX, then BX will depend on one of the following to 
open: (1) A valid width NBBO, (2) a certain number of other options 
exchanges (as determined by BX) having disseminated a firm quote on 
OPRA, or (3) a certain period of time (as determined by the Exchange) 
has elapsed. As proposed, if no trade is possible, C2 will open an 
index option series after another exchange as [sic] disseminated a 
quote, which is consistent with number (2) above (for example, under 
BX's rule, it could determine to open if one other options exchange was 
open). While the proposed rule change does not explicitly provide for 
additional alternatives in the event no trade is possible, pursuant to 
Rule 6.11(c), C2 may adjust the timing of the Opening Process in a 
class if it believes it is necessary in the interests of a fair and 
orderly market.\9\ Therefore, like BX, C2 could open a series after a 
certain amount of time has passed if the series does not open on 
another exchange.\10\
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    \7\ On BX, a valid width NBBO is defined as the combination of 
all away option market quotes and orders and quotes received on BX, 
within a specified bid/ask differential. See BX Rule Section 
8(a)(6).
    \8\ See C2 Rule 1.1 (definition of NBBO).
    \9\ Number (1) above would not apply because, as noted above, 
the NBBO on C2 prior to the opening of trading does not include 
orders and quotes on C2.
    \10\ As stated in Rule 6.11(c), C2 makes and maintains records 
to document all determinations to deviate from the standard manner 
of the Opening Process, and periodically reviews these 
determinations for consistency with the interests of a fair and 
orderly market.
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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.\11\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \12\ requirements that the rules of an exchange be 
designed to prevent fraudulent and manipulative acts and practices, to 
promote just and equitable principles of trade, to foster cooperation 
and coordination with persons engaged in regulating, clearing, 
settling, processing information with respect to, and facilitating 
transactions in securities, to remove impediments to and perfect the 
mechanism of a free and open market and a national market system, and, 
in general, to protect investors and the public interest. Additionally, 
the Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \13\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(5).
    \13\ Id.
---------------------------------------------------------------------------

    In particular, the proposed rule change eliminates the possibility 
of RUT options on C2 automatically opening for trading prior to those 
options being open on Cboe Options and thus interfering with the 
calculation of volatility index derivative settlement values, which 
promotes just and equitable principles of trade and perfects the 
mechanism of a free and open market and national market system. As 
discussed above, under certain circumstances, the proposed rule change 
is expected to have a de minimis impact on the opening of index option 
series on C2 because, to the extent the Exchange receives a quote from 
another Exchange within the time period following 9:30 a.m., and there 
are contracts that may trade, the Opening Process will essentially be 
the same, and a series will open with the NBBO Midpoint as an Opening 
Price (if valid). Additionally, the Exchange will continue to have the 
ability to use a contingent opening to open a series for trading if 
there is no valid Opening Price. Therefore, if an index option series 
is not yet open on another exchange, C2 will still have the ability to 
open the series for trading. As discussed above, the proposed rule 
change is similar to the opening process of another options exchange, 
which also provides that opening for trading may be dependent on 
whether another options exchange is open.\14\
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    \14\ See BX Rule Section 8(b).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    C2 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. The proposed rule change will 
apply in the same manner to all market participants that participate in 
the C2 Opening Process for index options. The Exchange believes it is 
appropriate to limit the proposed change to index options,

[[Page 23323]]

because some, such as RUT, are used to determine the settlement value 
for volatility index derivatives. A similar process does not occur for 
equity options, and thus, the risk of opening trading in an equity 
option interfering with a settlement process on another exchange is not 
present. As discussed above, the proposed rule change is similar to the 
opening process of another options exchange, which also provides that 
opening for trading may be dependent on whether another options 
exchange is open.\15\
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    \15\ See BX Rule Section 8(b).
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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 foregoing 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, it has become 
effective pursuant to Section 19(b)(3)(A) \16\ of the Act and Rule 19b-
4(f)(6) thereunder.\17\
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    \16\ 15 U.S.C. 78s(b)(3)(A).
    \17\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change, along 
with a brief description and the 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 pursuant to Rule 19b-4(f)(6) under the 
Act \18\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \19\ permits the 
Commission to 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 is operative on May 14, 2018, which is also the date the 
C2 technology migration is to occur.\20\ The Exchange states that on 
May 16, 2018 Cboe Options will determine settlement values for certain 
volatility index derivatives by using the prices of RUT options trading 
on Cboe Options. According to the Exchange, waiver of the 30-day 
operative delay would avoid trading on C2 potentially interfering with 
the calculation of volatility index derivative settlement values by 
ensuring that on May 16, trading in RUT options on C2 will not begin 
before those options are open on Cboe Options. Accordingly, the 
Commission believes the waiver of the operative delay is consistent 
with the protection of investors and the public interest because it 
will avoid investor confusion that could result from C2 opening a 
dually and exclusively listed index option concurrently with, or prior 
to, Cboe Options, which could lead the two exchanges potentially to 
open at different prices given the material differences in their 
opening processes. The possibility for such divergence could be 
particularly confusing to investors on a volatility index settlement 
day, which will next occur on May 16. Therefore, the Commission hereby 
waives the operative delay and designates the proposal operative on May 
14, 2018.\21\
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    \18\ 17 CFR 240.19b-4(f)(6).
    \19\ 17 CFR 240.19b-4(f)(6)(iii).
    \20\ See supra note 5.
    \21\ 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: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) 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 rule-comments@sec.gov. Please include 
File Number SR-C2-2018-009 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-C2-2018-009. 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-C2-2018-009, and should be submitted on 
or before June 8, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\22\
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    \22\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-10601 Filed 5-17-18; 8:45 am]
 BILLING CODE 8011-01-P



                                               23320                            Federal Register / Vol. 83, No. 97 / Friday, May 18, 2018 / Notices

                                               Exchange has requested that the                         All submissions should refer to File                   ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                               Commission waive the 30-day operative                   Number SR–NASDAQ–2018–037. This                        notice is hereby given that on May 9,
                                               delay so that the proposal may become                   file number should be included on the                  2018, Cboe C2 Exchange, Inc. (the
                                               operative upon filing. The Exchange                     subject line if email is used. To help the             ‘‘Exchange’’ or ‘‘C2’’) filed with the
                                               states that it believes it is important for             Commission process and review your                     Securities and Exchange Commission
                                               it to be able to manage the                             comments more efficiently, please use                  (the ‘‘Commission’’) the proposed rule
                                               administration of its rules on an                       only one method. The Commission will                   change as described in Items I and II
                                               immediately effective basis. Further,                   post all comments on the Commission’s                  below, which Items have been prepared
                                               with respect to the amendment to the                    internet website (http://www.sec.gov/                  by the Exchange. The Exchange filed the
                                               Market Order Spread Protection and                      rules/sro.shtml). Copies of the                        proposal as a ‘‘non-controversial’’
                                               Acceptable Trade Range, the Exchange                    submission, all subsequent                             proposed rule change pursuant to
                                               believes that the amendment protects                    amendments, all written statements                     Section 19(b)(3)(A)(iii) of the Act 3 and
                                               investors and the public interest by                    with respect to the proposed rule                      Rule 19b–4(f)(6) thereunder.4 The
                                               providing more transparency as to the                   change that are filed with the                         Commission is publishing this notice to
                                               operation of this protection during the                 Commission, and all written                            solicit comments on the proposed rule
                                               Opening Process and during halts for                    communications relating to the                         change from interested persons.
                                               the Market Order Spread Protection and                  proposed rule change between the
                                               also clarifies the Acceptable Trade                                                                            I. Self-Regulatory Organization’s
                                                                                                       Commission and any person, other than
                                               Range rule. For these reasons, the                                                                             Statement of the Terms of Substance of
                                                                                                       those that may be withheld from the
                                               Commission believes that waiver of the                                                                         the Proposed Rule Change
                                                                                                       public in accordance with the
                                               30-day operative delay is consistent                    provisions of 5 U.S.C. 552, will be                      The Exchange proposes to amend the
                                               with the protection of investors and the                available for website viewing and                      opening process with respect to index
                                               public interest and, therefore, the                     printing in the Commission’s Public                    options. The text of the proposed rule
                                               Commission hereby waives the 30-day                     Reference Room, 100 F Street NE,                       change is provided below.
                                               operative delay and designates the                      Washington, DC 20549, on official
                                               proposed rule change operative upon                     business days between the hours of                     (additions are italicized; deletions are
                                               filing.14                                               10:00 a.m. and 3:00 p.m. Copies of the                 [bracketed])
                                                  At any time within 60 days of the                    filing also will be available for                      *          *      *      *      *
                                               filing of the proposed rule change, the                 inspection and copying at the principal
                                               Commission summarily may                                                                                       Cboe C2 Exchange, Inc.
                                                                                                       office of the Exchange. All comments
                                               temporarily suspend such rule change if                 received will be posted without change.                Rules
                                               it appears to the Commission that such                  Persons submitting comments are                        *          *      *      *      *
                                               action is: (i) Necessary or appropriate in              cautioned that we do not redact or edit
                                               the public interest; (ii) for the protection                                                                   Rule 6.11. Opening Process
                                                                                                       personal identifying information from
                                               of investors; or (iii) otherwise in                     comment submissions. You should                           (a) Opening Process.
                                               furtherance of the purposes of the Act.                                                                           (1) No change.
                                                                                                       submit only information that you wish                     (2) Opening Price.
                                               If the Commission takes such action, the                to make available publicly. All                           (A) Equity Options. The System determines
                                               Commission shall institute proceedings                  submissions should refer to File                       a single price at which a particular equity
                                               to determine whether the proposed rule                  Number SR–NASDAQ–2018–037 and                          option series will be opened (the ‘‘Opening
                                               change should be approved or                            should be submitted on or before June                  Price’’) within 30 seconds of the First Listing
                                               disapproved.                                            8, 2018.                                               Market Transaction[ or 9:30 a.m., as
                                                                                                                                                              applicable]. If there are no contracts in a
                                               IV. Solicitation of Comments                              For the Commission, by the Division of               series that would execute at any price, the
                                                 Interested persons are invited to                     Trading and Markets, pursuant to delegated             System opens the series for trading without
                                                                                                       authority.15
                                               submit written data, views and                                                                                 determining an Opening Price. The Opening
                                               arguments concerning the foregoing,                     Eduardo A. Aleman,                                     Price, if valid pursuant to subparagraph (3),
                                               including whether the proposed rule                     Assistant Secretary.                                   of a series will be:
                                               change is consistent with the Act.                      [FR Doc. 2018–10604 Filed 5–17–18; 8:45 am]               ([A]i) If there is both an NBB and an NBO,
                                                                                                                                                              the midpoint of the NBBO (if the midpoint
                                               Comments may be submitted by any of                     BILLING CODE 8011–01–P
                                                                                                                                                              is a half increment, the System rounds down
                                               the following methods:                                                                                         to the nearest minimum increment) (the
                                               Electronic Comments                                                                                            ‘‘NBBO Midpoint’’);
                                                                                                       SECURITIES AND EXCHANGE                                   ([B]ii) if the NBBO Midpoint is not a valid
                                                 • Use the Commission’s internet                       COMMISSION                                             price, the last disseminated transaction price
                                               comment form (http://www.sec.gov/                                                                              in the series after 9:30 a.m. (the ‘‘Last Print’’);
                                               rules/sro.shtml); or                                    [Release No. 34–83225; File No. SR–C2–                 or
                                                 • Send an email to rule-comments@                     2018–009]                                                 ([C]iii) if the NBBO Midpoint and the Last
                                               sec.gov. Please include File Number SR–                                                                        Print are not valid prices, the last
                                               NASDAQ–2018–037 on the subject line.                    Self-Regulatory Organizations; Cboe                    disseminated transaction in the series from
                                                                                                       C2 Exchange, Inc.; Notice of Filing and                the previous trading day (the ‘‘Previous
                                               Paper Comments                                                                                                 Close’’).
                                                                                                       Immediate Effectiveness of a Proposed
                                                 • Send paper comments in triplicate                   Rule Change To Amend Rule 6.11.,
                                                                                                                                                                 If the NBBO Midpoint, Last Print, and
                                               to Secretary, Securities and Exchange                                                                          Previous Close are not valid, the Exchange in
                                                                                                       Regarding the Opening Process for
daltland on DSKBBV9HB2PROD with NOTICES




                                                                                                                                                              its discretion may extend the Order Entry
                                               Commission, 100 F Street NE,                            Index Options                                          Period by up to 30 seconds or open the series
                                               Washington, DC 20549–1090.                                                                                     for trading.
                                                                                                       May 14, 2018.
                                                 14 For purposes only of waiving the 30-day              Pursuant to Section 19(b)(1) of the                      1 15 U.S.C. 78s(b)(1).
                                               operative delay, the Commission has also                Securities Exchange Act of 1934 (the                       2 17 CFR 240.19b–4.
                                               considered the proposed rule’s impact on
                                                                                                                                                                  3 15 U.S.C. 78s(b)(3)(A)(iii).
                                               efficiency, competition, and capital formation. See
                                               15 U.S.C. 78c(f).                                         15 17   CFR 200.30–3(a)(12).                             4 17 CFR 240.19b–4(f)(6).




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                                                                                Federal Register / Vol. 83, No. 97 / Friday, May 18, 2018 / Notices                                              23321

                                                  (B) Index Options. The System determines             A. Self-Regulatory Organization’s                        Pursuant to Rule 6.11(a)(3), the NBBO
                                               the Opening Price within 30 seconds of an               Statement of the Purpose of, and the                  Midpoint, the Last Print, or the Previous
                                               away options exchange(s) disseminating a                Statutory Basis for, the Proposed Rule                Close is a valid price if it is no more
                                               quote in a series. Following an away options            Change                                                than a specified minimum amount away
                                               exchange’s dissemination of a quote in a                                                                      from the national best bid or offer for
                                               series, if there are no contracts in a series     1. Purpose                                                  the series. Additionally, the Last Print
                                               that would execute at any price, the System           The proposed rule change amends the                     or Previous Close is a valid price if there
                                               opens the series for trading without              opening process with respect to index                       is no NBB and no NBO, or if there is a
                                               determining an Opening Price. The Opening         options. C2 intends to migrate its                          NBB (NBO) and no NBO (NBB) and the
                                               Price, if valid pursuant to subparagraph (3),     technology onto the same trading                            price is equal to or greater (less) than the
                                               of a series will be the NBBO Midpoint. If the     platform as one of its affiliated                           NBB (NBO). Under this Opening
                                               NBBO Midpoint is not valid, the Exchange in       exchanges, Cboe EDGX Exchange, Inc.                         Process, if a series has not opened yet
                                               its discretion may extend the Order Entry         (‘‘EDGX’’). C2 recently submitted a                         on another exchange on a trading (and
                                               Period by up to 30 seconds or open the series     proposed rule change to, among other                        thus there is no NBBO and no Last
                                               for trading.                                      things, align certain system                                Print), if there is a Previous Close Price,
                                                  (3) Validating the Opening Price. For
                                                                                                 functionality with EDGX, including the                      it will be a valid price and will be the
                                               purposes of subparagraph (a)(2):
                                                                                                 opening process.5 Pursuant to the                           Opening Price. Additionally, if there are
                                                  (A) The NBBO Midpoint and, for equity
                                                                                                 opening process in C2 Rule 6.11(a)(1),                      no crossed contracts in a series, the
                                               options, the Last Print[,] or the Previous
                                                                                                 after a time period determined by the                       series opens immediately following the
                                               Close, is a valid price if it is not outside the
                                               NBBO, and the price is no more than the           Exchange following the first transaction                    time period referenced above.
                                                                                                 in the securities underlying the options                       The Exchange proposes to modify this
                                               following Minimum Amount away from the
                                               NBB or NBO for the series:                        on the primary market that is                               process with respect to index options.
                                                                                                 disseminated after 9:30 a.m. with                           Pursuant to the proposed rule change,
                                                                                      Minimum    respect to equity options, or following                     for index options, the System will
                                                             NBB                                 9:30 a.m. with respect to index options,                    determine the Opening Price within 30
                                                                                      amount
                                                                                                 the related option series open                              seconds of an away options exchange(s)
                                               Below $2.00 ..........................      $0.25 automatically in a random order,                            disseminating a quote in a series.
                                               $2.00 to $5.00 ......................        0.40 staggered over regular intervals of time                    Following an away options exchange’s
                                               Above $5.00 to $10.00 .........              0.50 pursuant to subparagraphs (a)(2)                            dissemination of a quote in a series, if
                                               Above $10.00 to $20.00 .......               0.80 through (5). Rule 6.11(a)(2) states the                     there are no contracts in a series that
                                               Above $20.00 to $50.00 .......               1.00 System determines a price at which a                        would execute at any price, the System
                                               Above $50.00 to $100.00 .....                1.50 particular option series will be opened                     opens the series for trading without
                                               Above $100.00 .....................          2.00 (the ‘‘Opening Price’’) within 30                           determining an Opening Price. The
                                                                                                 seconds of the applicable triggering                        Opening Price, if valid, of a series will
                                               and                                                                                                           be the NBBO Midpoint. If the NBBO
                                                                                                 event noted above. If there are no
                                                 (B) for equity options, the Last Print or       contracts in a series that would execute                    Midpoint is not valid, the Exchange in
                                               Previous Close is a valid price if there is no    at any price, the System opens the series                   its discretion may extend the order
                                               NBB and no NBO, or there is a NBB (NBO)           for trading without determining an                          entry period by up to 30 seconds or
                                               and no NBO (NBB) and the price is equal to                                                                    open the series for trading. In other
                                                                                                 Opening Price. The Opening Price, if
                                               or greater (less) than the NBB (NBO).                                                                         words, the proposed rule change
                                                                                                 valid, of a series will be:
                                                 (4)–(5) No change.                                                                                          provides that an index option series will
                                                                                                     • If there is both an NBB and an NBO,
                                                 (b)–(d) No change.                                                                                          not open (with or without a trade) until
                                                                                                 the midpoint of the NBBO (if the
                                               *      *      *      *         *                  midpoint is a half increment, the                           after the series is open on another
                                                  The text of the proposed rule change           System rounds down to the nearest                           exchange. To the extent the Exchange
                                               is also available on the Exchange’s               minimum increment) (the ‘‘NBBO                              receives a quote from another Exchange
                                               website (http://www.cboe.com/                     Midpoint’’);                                                within the time period referenced
                                               AboutCBOE/CBOELegal                                   • if the NBBO Midpoint is not a valid                   above, and there are contracts that may
                                               RegulatoryHome.aspx), at the                      price, the last disseminated transaction                    trade, the Opening Process will
                                               Exchange’s Office of the Secretary, and           price in the series after 9:30 a.m. (the                    essentially be the same, and a series will
                                               at the Commission’s Public Reference              ‘‘Last Print’’); or                                         open with the NBBO Midpoint as an
                                                                                                     • if the NBBO Midpoint and the Last                     Opening Price (if valid). Additionally,
                                               Room.
                                                                                                 Print are not valid prices, the last                        the Exchange will continue to have the
                                               II. Self-Regulatory Organization’s                disseminated transaction in the series                      ability to use a contingent opening to
                                               Statement of the Purpose of, and                  from the previous trading day (the                          open a series for trading if there is no
                                               Statutory Basis for, the Proposed Rule            ‘‘Previous Close’’).                                        valid Opening Price. The proposed rule
                                               Change                                                If the NBBO Midpoint, Last Print, and                   change delays opening of a series on C2
                                                                                                 Previous Close are not valid, the                           in an index option series if there are no
                                                  In its filing with the Commission, the                                                                     crossed contracts, and eliminates the
                                                                                                 Exchange in its discretion may extend
                                               Exchange included statements                                                                                  possibility to open using the Last Print
                                                                                                 the order entry period by up to 30
                                               concerning the purpose of and basis for                                                                       or Previous Close (as those will
                                                                                                 seconds or open the series for trading (a
                                               the proposed rule change and discussed                                                                        generally not be necessary if C2 waits
                                                                                                 ‘‘contingent opening’’).
                                               any comments it received on the                                                                               for another exchange to open).
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                                               proposed rule change. The text of these              5 See SR–C2–2018–005 (April 27, 2018). That                 Currently, Russell 2000 Index
                                               statements may be examined at the                 proposed rule change as filed for immediate                 (‘‘RUT’’) options is the only index
                                               places specified in Item IV below. The            effectiveness and a request for a waiver of the 30-         option class trading on C2. RUT options
                                               Exchange has prepared summaries, set              day operative delay to permit effectiveness on May          also trade on Cboe Exchange, Inc.
                                                                                                 14, 2018, the date on which the proposed C2
                                               forth in sections A, B, and C below, of           technology migration is currently expected to occur.
                                                                                                                                                             (‘‘Cboe Options’’), an affiliated exchange
                                               the most significant aspects of such              The rule text and numbers in this filing reference          of C2. Under current C2 Rule 6.11, if a
                                               statements.                                       the rule text and numbers in that filing.                   RUT series was open on Cboe Options,


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                                               23322                            Federal Register / Vol. 83, No. 97 / Friday, May 18, 2018 / Notices

                                               and if there are crossed orders on C2,                  similar to the proposed rule change, in                and coordination with persons engaged
                                               the RUT series on C2 would open with                    that a valid NBBO Midpoint must be                     in regulating, clearing, settling,
                                               an Opening Price equal to the NBBO                      present for an index option series to                  processing information with respect to,
                                               Midpoint (if valid). If a RUT series was                open with a trade (which on C2 would                   and facilitating transactions in
                                               not yet open on C2 after 9:30 a.m., and                 only occur if another exchange was                     securities, to remove impediments to
                                               there was a Previous Close for the series,              open for trading, because on C2, the                   and perfect the mechanism of a free and
                                               the series would open on C2 with the                    NBBO that is used to determine the                     open market and a national market
                                               Previous Close as the Opening Price. If                 Opening Price is based on disseminated                 system, and, in general, to protect
                                               there are no crossing orders on C2, a                   quotes of other exchanges and does not                 investors and the public interest.
                                               RUT series would open without an                        include orders and quotes on C2 prior                  Additionally, the Exchange believes the
                                               opening price, possibly before the RUT                  to the opening of trading).8                           proposed rule change is consistent with
                                               series was open on Cboe Options.                        Additionally, if no trade is possible on               the Section 6(b)(5) 13 requirement that
                                                  RUT options on Cboe Options                          BX, then BX will depend on one of the                  the rules of an exchange not be designed
                                               generally open within 30 seconds after                  following to open: (1) A valid width                   to permit unfair discrimination between
                                               9:30 a.m., and thus the Exchange                        NBBO, (2) a certain number of other                    customers, issuers, brokers, or dealers.
                                               expects RUT options on C2 following                     options exchanges (as determined by                       In particular, the proposed rule
                                               the technology migration to open for                    BX) having disseminated a firm quote                   change eliminates the possibility of RUT
                                               trading within 30 seconds (as set forth                 on OPRA, or (3) a certain period of time               options on C2 automatically opening for
                                               in the rule) at an Opening Price equal                  (as determined by the Exchange) has                    trading prior to those options being
                                               to the NBBO Midpoint if there are                       elapsed. As proposed, if no trade is                   open on Cboe Options and thus
                                               orders that can be crossed. However, it                 possible, C2 will open an index option                 interfering with the calculation of
                                               will be possible for a RUT series to open               series after another exchange as [sic]                 volatility index derivative settlement
                                               prior to the opening of that series on                  disseminated a quote, which is                         values, which promotes just and
                                               Cboe Options. The series on C2 would                    consistent with number (2) above (for                  equitable principles of trade and
                                               open without an Opening Price (if there                 example, under BX’s rule, it could                     perfects the mechanism of a free and
                                               are no crossed orders) or with an                       determine to open if one other options                 open market and national market
                                               Opening Price equal to the Previous                     exchange was open). While the                          system. As discussed above, under
                                               Close (if there are crossed orders) prior               proposed rule change does not                          certain circumstances, the proposed rule
                                               to the settlement value determination                   explicitly provide for additional                      change is expected to have a de minimis
                                               being completed on Cboe Options. If                     alternatives in the event no trade is                  impact on the opening of index option
                                               this were to occur, trading on C2 may                   possible, pursuant to Rule 6.11(c), C2                 series on C2 because, to the extent the
                                               then be occurring at very different                     may adjust the timing of the Opening                   Exchange receives a quote from another
                                               prices than what is ultimately the                      Process in a class if it believes it is                Exchange within the time period
                                               opening trade price on Cboe Options.                    necessary in the interests of a fair and               following 9:30 a.m., and there are
                                               This is significant because, on certain                 orderly market.9 Therefore, like BX, C2                contracts that may trade, the Opening
                                               dates, Cboe Options uses prices of RUT                  could open a series after a certain                    Process will essentially be the same, and
                                               options trading on Cboe Options to                      amount of time has passed if the series                a series will open with the NBBO
                                               determine settlement values for                         does not open on another exchange.10                   Midpoint as an Opening Price (if valid).
                                               volatility index derivatives.6 While                                                                           Additionally, the Exchange will
                                                                                                       2. Statutory Basis                                     continue to have the ability to use a
                                               trading in these options on volatility
                                               index derivative settlement days also                      The Exchange believes the proposed                  contingent opening to open a series for
                                               generally opens within a few seconds                    rule change is consistent with the                     trading if there is no valid Opening
                                               after 9:30, there have been times when                  Securities Exchange Act of 1934 (the                   Price. Therefore, if an index option
                                               series being used to determine the                      ‘‘Act’’) and the rules and regulations                 series is not yet open on another
                                               settlement value took longer to open.                   thereunder applicable to the Exchange                  exchange, C2 will still have the ability
                                               Trading on another Exchange while                       and, in particular, the requirements of                to open the series for trading. As
                                               Cboe Options is not yet open may                        Section 6(b) of the Act.11 Specifically,               discussed above, the proposed rule
                                               impact the volatility settlement value                  the Exchange believes the proposed rule                change is similar to the opening process
                                               determination and disrupt trading of                    change is consistent with the Section                  of another options exchange, which also
                                               volatility index derivatives. The                       6(b)(5) 12 requirements that the rules of              provides that opening for trading may
                                               proposed rule change eliminates the                     an exchange be designed to prevent                     be dependent on whether another
                                               possibility of RUT options on C2                        fraudulent and manipulative acts and                   options exchange is open.14
                                               automatically opening for trading prior                 practices, to promote just and equitable               B. Self-Regulatory Organization’s
                                               to those options being open on Cboe                     principles of trade, to foster cooperation             Statement on Burden on Competition
                                               Options and thus interfering with the
                                                                                                       orders and quotes received on BX, within a               C2 does not believe that the proposed
                                               calculation of volatility index derivative
                                                                                                       specified bid/ask differential. See BX Rule Section    rule change will impose any burden on
                                               settlement values.
                                                  While options exchanges have varying
                                                                                                       8(a)(6).                                               competition that is not necessary or
                                                                                                          8 See C2 Rule 1.1 (definition of NBBO).
                                               opening processes, the opening process                                                                         appropriate in furtherance of the
                                                                                                          9 Number (1) above would not apply because, as
                                               on Nasdaq BX, LLC (‘‘BX’’) is similar to                                                                       purposes of the Act. The proposed rule
                                                                                                       noted above, the NBBO on C2 prior to the opening
                                               the proposed rule change. Pursuant to                   of trading does not include orders and quotes on       change will apply in the same manner
                                                                                                       C2.                                                    to all market participants that
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                                               BX Rule Section 8(b), if there is a
                                               possible trade on BX, a series will open
                                                                                                          10 As stated in Rule 6.11(c), C2 makes and          participate in the C2 Opening Process
                                                                                                       maintains records to document all determinations       for index options. The Exchange
                                               with a valid width NBBO.7 This is                       to deviate from the standard manner of the Opening
                                                                                                       Process, and periodically reviews these
                                                                                                                                                              believes it is appropriate to limit the
                                                 6 See Cboe Options Rule 6.2, Interpretation and       determinations for consistency with the interests of   proposed change to index options,
                                               Policy .01.                                             a fair and orderly market.
                                                 7 On BX, a valid width NBBO is defined as the            11 15 U.S.C. 78f(b).                                 13 Id.

                                               combination of all away option market quotes and           12 15 U.S.C. 78f(b)(5).                              14 See   BX Rule Section 8(b).



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                                                                                  Federal Register / Vol. 83, No. 97 / Friday, May 18, 2018 / Notices                                                  23323

                                               because some, such as RUT, are used to                    According to the Exchange, waiver of                  All submissions should refer to File
                                               determine the settlement value for                        the 30-day operative delay would avoid                Number SR–C2–2018–009. This file
                                               volatility index derivatives. A similar                   trading on C2 potentially interfering                 number should be included on the
                                               process does not occur for equity                         with the calculation of volatility index              subject line if email is used. To help the
                                               options, and thus, the risk of opening                    derivative settlement values by ensuring              Commission process and review your
                                               trading in an equity option interfering                   that on May 16, trading in RUT options                comments more efficiently, please use
                                               with a settlement process on another                      on C2 will not begin before those                     only one method. The Commission will
                                               exchange is not present. As discussed                     options are open on Cboe Options.                     post all comments on the Commission’s
                                               above, the proposed rule change is                        Accordingly, the Commission believes                  internet website (http://www.sec.gov/
                                               similar to the opening process of                         the waiver of the operative delay is                  rules/sro.shtml). Copies of the
                                               another options exchange, which also                      consistent with the protection of                     submission, all subsequent
                                               provides that opening for trading may                     investors and the public interest                     amendments, all written statements
                                               be dependent on whether another                           because it will avoid investor confusion              with respect to the proposed rule
                                               options exchange is open.15                               that could result from C2 opening a                   change that are filed with the
                                                                                                         dually and exclusively listed index                   Commission, and all written
                                               C. Self-Regulatory Organization’s
                                                                                                         option concurrently with, or prior to,                communications relating to the
                                               Statement on Comments on the
                                                                                                         Cboe Options, which could lead the two                proposed rule change between the
                                               Proposed Rule Change Received From
                                                                                                         exchanges potentially to open at                      Commission and any person, other than
                                               Members, Participants, or Others
                                                                                                         different prices given the material                   those that may be withheld from the
                                                 The Exchange neither solicited nor                      differences in their opening processes.               public in accordance with the
                                               received comments on the proposed                         The possibility for such divergence                   provisions of 5 U.S.C. 552, will be
                                               rule change.                                              could be particularly confusing to                    available for website viewing and
                                               III. Date of Effectiveness of the                         investors on a volatility index                       printing in the Commission’s Public
                                               Proposed Rule Change and Timing for                       settlement day, which will next occur                 Reference Room, 100 F Street NE,
                                               Commission Action                                         on May 16. Therefore, the Commission                  Washington, DC 20549, on official
                                                                                                         hereby waives the operative delay and                 business days between the hours of
                                                  Because the foregoing proposed rule                    designates the proposal operative on
                                               change does not: (i) Significantly affect                                                                       10:00 a.m. and 3:00 p.m. Copies of the
                                                                                                         May 14, 2018.21                                       filing also will be available for
                                               the protection of investors or the public                    At any time within 60 days of the
                                               interest; (ii) impose any significant                                                                           inspection and copying at the principal
                                                                                                         filing of the proposed rule change, the               office of the Exchange. All comments
                                               burden on competition; and (iii) become                   Commission summarily may
                                               operative for 30 days from the date on                                                                          received will be posted without change.
                                                                                                         temporarily suspend such rule change if               Persons submitting comments are
                                               which it was filed, or such shorter time                  it appears to the Commission that such
                                               as the Commission may designate, it has                                                                         cautioned that we do not redact or edit
                                                                                                         action is: (i) Necessary or appropriate in            personal identifying information from
                                               become effective pursuant to Section                      the public interest; (ii) for the protection
                                               19(b)(3)(A) 16 of the Act and Rule 19b–                                                                         comment submissions. You should
                                                                                                         of investors; or (iii) otherwise in                   submit only information that you wish
                                               4(f)(6) thereunder.17                                     furtherance of the purposes of the Act.
                                                  A proposed rule change filed                                                                                 to make available publicly. All
                                                                                                         If the Commission takes such action, the              submissions should refer to File
                                               pursuant to Rule 19b–4(f)(6) under the                    Commission shall institute proceedings
                                               Act 18 normally does not become                                                                                 Number SR–C2–2018–009, and should
                                                                                                         to determine whether the proposed rule                be submitted on or before June 8, 2018.
                                               operative for 30 days after the date of its               should be approved or disapproved.
                                               filing. However, Rule 19b–4(f)(6)(iii) 19                                                                         For the Commission, by the Division of
                                               permits the Commission to designate a                     IV. Solicitation of Comments                          Trading and Markets, pursuant to delegated
                                               shorter time if such action is consistent                                                                       authority.22
                                                                                                           Interested persons are invited to
                                               with the protection of investors and the                  submit written data, views, and                       Eduardo A. Aleman,
                                               public interest. The Exchange has asked                   arguments concerning the foregoing,                   Assistant Secretary.
                                               the Commission to waive the 30-day                        including whether the proposed rule                   [FR Doc. 2018–10601 Filed 5–17–18; 8:45 am]
                                               operative delay so that the proposal is                   change is consistent with the Act.                    BILLING CODE 8011–01–P
                                               operative on May 14, 2018, which is                       Comments may be submitted by any of
                                               also the date the C2 technology                           the following methods:
                                               migration is to occur.20 The Exchange                                                                           SMALL BUSINESS ADMINISTRATION
                                               states that on May 16, 2018 Cboe                          Electronic Comments
                                               Options will determine settlement                           • Use the Commission’s internet                     [Disaster Declaration #15522 and #15523;
                                                                                                         comment form (http://www.sec.gov/                     Hawaii Disaster Number HI–00047]
                                               values for certain volatility index
                                               derivatives by using the prices of RUT                    rules/sro.shtml); or                                  Presidential Declaration of a Major
                                               options trading on Cboe Options.                            • Send an email to rule-comments@
                                                                                                                                                               Disaster for Public Assistance Only for
                                                                                                         sec.gov. Please include File Number SR–
                                                                                                                                                               the State of Hawaii
                                                 15 See  BX Rule Section 8(b).                           C2–2018–009 on the subject line.
                                                 16 15  U.S.C. 78s(b)(3)(A).
                                                                                                         Paper Comments                                        AGENCY: U.S. Small Business
                                                 17 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
                                                                                                                                                               Administration.
                                               4(f)(6) requires a self-regulatory organization to give     • Send paper comments in triplicate
                                               the Commission written notice of its intent to file                                                             ACTION: Notice.
                                               the proposed rule change, along with a brief
                                                                                                         to Secretary, Securities and Exchange
daltland on DSKBBV9HB2PROD with NOTICES




                                               description and the text of the proposed rule             Commission, 100 F Street NE,                          SUMMARY:   This is a Notice of the
                                               change, at least five business days prior to the date     Washington, DC 20549–1090.                            Presidential declaration of a major
                                               of filing of the proposed rule change, or such
                                               shorter time as designated by the Commission. The
                                                                                                                                                               disaster for Public Assistance Only for
                                                                                                            21 For purposes only of waiving the 30-day
                                               Exchange has satisfied this requirement.                                                                        the State of Hawaii (FEMA–4366–DR),
                                                                                                         operative delay, the Commission has also
                                                 18 17 CFR 240.19b–4(f)(6).
                                                                                                         considered the proposed rule’s impact on              dated 05/11/2018.
                                                 19 17 CFR 240.19b–4(f)(6)(iii).
                                                                                                         efficiency, competition, and capital formation. See
                                                 20 See supra note 5.                                    15 U.S.C. 78c(f).                                       22 17   CFR 200.30–3(a)(12).



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Document Created: 2018-05-18 02:15:31
Document Modified: 2018-05-18 02:15:31
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 23320 

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