83 FR 23503 - Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Its Fees Schedule in Connection With the Exchange's Planned Migration of Standard Third-Friday Options on the S&P 500 Index to the Hybrid Trading System From the Hybrid 3.0 System
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 98 (May 21, 2018)
Federal Register Volume 83, Issue 98 (May 21, 2018)
| Page Range | 23503-23506 | |
| FR Document | 2018-10708 |
[Federal Register Volume 83, Number 98 (Monday, May 21, 2018)] [Notices] [Pages 23503-23506] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-10708] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83241; File No. SR-CBOE-2018-039] Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Its Fees Schedule in Connection With the Exchange's Planned Migration of Standard Third-Friday Options on the S&P 500 Index to the Hybrid Trading System From the Hybrid 3.0 System May 15, 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 3, 2018, Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Exchange filed the proposal as a ``non-controversial'' proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b- 4(f)(6) thereunder.\4\ The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ 15 U.S.C. 78s(b)(3)(A)(iii). \4\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend its Fees Schedule in connection with the Exchange's planned migration of standard third-Friday options on the S&P 500 Index (``SPX options'') to the Hybrid Trading System from the Hybrid 3.0 System. 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 [[Page 23504]] statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose By way of background, a.m.-settled standard third-Friday options on the S&P 500 Index (``SPX options'') were previously traded on the Hybrid 3.0 trading platform. On April 30, 2018, the Exchange retired the Hybrid 3.0 platform and transitioned SPX options series then traded on the Hybrid 3.0 trading platform during Regular Trading Hours (``RTH'') onto the standard Hybrid trading platform. The Exchange notes that SPX options were the only product traded on the Hybrid 3.0 platform and consequently, the symbol for these series remains SPX. In light of SPX's transition to Hybrid, the Exchange proposes to amend its Fees Schedule with respect to references to Hybrid 3.0 and also adopt an SPX Select Market-Makers (``SPX SMMs'') financial incentive program.\5\ --------------------------------------------------------------------------- \5\ The Exchange initially filed the proposed fee changes on April 20, 2018 (SR-CBOE-2018-032). On May 3, 2018, the Exchange withdrew that filing and submitted this filing. --------------------------------------------------------------------------- First, the Exchange proposes to eliminate references to Hybrid 3.0 in the Fees Schedule. Particularly, the Exchange proposes to rename the ``Hybrid 3.0 Execution Surcharge (SPX only)'' to the ``SPX Hybrid Execution Surcharge (SPX only)''. As noted above, SPX options were the only product available to trade on Hybrid 3.0 and as such, the term Hybrid 3.0 as used for the Hybrid 3.0 Execution Surcharge was synonymous with SPX options. The Exchange similarly proposes to delete and update references to Hybrid 3.0 in corresponding Footnote 21. The Exchange next proposes to eliminate the reference to Hybrid 3.0 in the ``Quoting Bandwidth'' section under ``Trading Permit Descriptions'' in the Trading Permit and Tier Appointment Fees table. Specifically, the Fees Schedule currently provides: ``To the extent a Market-Maker is able to submit electronic quotes in a Hybrid 3.0 class (such as an LMM that streams quotes in the class or a Market-Maker or LMM that streams quotes in a series of a Hybrid 3.0 class that trades on the Hybrid Trading System), the Market-Maker shall receive the quoting bandwidth allowance to quote in, and only in, that class.'' The Exchange proposes to eliminate the reference to Hybrid 3.0 class (which includes both SPX and SPXW) and replace it with ``SPX and/or SPXW''. The Exchange also proposes to eliminate the parenthetical that follows the new reference, as it does not believe it's necessary given that the proposed reference specifies the exact products affected (i.e., SPX and SPXW). The Exchange notes that no substantive changes are being made by the proposed ``Hybrid 3.0'' deletions and corresponding reference updates. The Exchange lastly proposes to adopt a financial incentive program for SPX Select Market-Makers (``SPX SMMs''), effective May 1, 2018. More specifically, the Exchange proposes to provide incentives to Market-Makers that are appointed as SPX SMMs and meet heightened quoting obligations.\6\ SPX SMMs that meet the heightened quoting standard (which shall be explained herein), will receive one Market- Maker Permit and one SPX Tier Appointment free of charge. --------------------------------------------------------------------------- \6\ SPX SMMs would serve as SPX SMMs during the RTH session only for a.m.-settled standard third-Friday options on the S&P 500 Index only (i.e., does not apply to SPXW). --------------------------------------------------------------------------- By way of background, the Exchange previously appointed Lead Market-Makers (``LMMs'') in SPX. The Exchange does not intend to appoint LMMs in SPX following its transition to the Hybrid trading platform. Rather, the Exchange proposes to provide a financial incentive to Market-Makers that satisfy heightened quoting standards and are appointed by the Exchange to serve as SPX SMMs.\7\ Similar to LMMs, the Exchange proposes to provide that it may approve one or more Market-Makers to act as an SMM in SPX for terms of at least one year.\8\ Various factors will be considered by the Exchange in selecting SPX SMMs, which include: Adequacy of capital, experience in trading options, presence in the trading crowd, adherence to Exchange rules and ability to meet the heightened quoting standard, described further below. The Exchange notes that the factors it considers in appointing SPX SMMs are the same as the factors it currently uses to appoint LMMs.\9\ The Exchange also proposes to provide that removal of an SPX SMM may be effected by the Exchange on the basis of the failure of the SPX SMM to meet the heightened quoting standards or any other applicable Exchange Rule, which standard is the same as used for the removal of LMMs.\10\ If an SPX SMM is removed or if for any reason an SPX SMM is no longer eligible for, or resigns, its appointment, the Exchange may appoint one or more interim SPX SMMs for the remainder of the term or shorter time period designated by the Exchange. --------------------------------------------------------------------------- \7\ This is similar to Market-Makers that serve as LMMs during the Exchange's Extended Trading Hours Session (``ETH'') (including SPX LMMs during ETH). \8\ On March 23, 2018, the Exchange issued an Exchange Notice which announced that the Exchange had appointed 4 LMMs (now proposed to be known as ``SPX SMMs'') in SPX for A.M.-settled SPX options (P.M.-settled options, which already trade on Hybrid, will continue to utilize a competing Market-Maker structure without any LMMs). The SPX SMM appointments will be effective for a one-year period, beginning on the launch date for SPX trading on Hybrid. The financial incentive will not apply for the month of April 2018. \9\ See Cboe Options Rule 8.15(a)(i). \10\ See Cboe Options Rule 8.15(a)(ii). --------------------------------------------------------------------------- With respect to quoting obligations, the Exchange first notes that to the extent the Exchange approves a Market-Maker to act as an SPX SMM, the SMM must comply with the continuous quoting obligation \11\ and other obligations of Market-Makers described in Cboe Options Rules. The Exchange proposes that an SPX SMM will receive one Market-Maker Trading Permit and one SPX Tier Appointment free of charge if it (1) provides continuous electronic quotes in 95% of all SPX series 90% of the time in a given month, (2) submits opening quotes that are no wider than the Opening Exchange Prescribed Width (``OEPW'') within one minute of the initiation of an opening rotation in any series that is not open due to the lack of a qualifying quote, on all trading days, to ensure electronic quotes on the open that allow the series to open, (3) submit opening quotes that are no wider than the OEPW quote by 8:00 a.m. (CT) on volatility settlement days and (4) provide quotes for the end-of- month fair value closing rotation on a rotating basis. The Exchange may consider other exceptions to this quoting standard based on demonstrated legal or regulatory requirements or other mitigating circumstances. SPX SMMs will not be obligated to satisfy the aforementioned heightened quoting standard. Rather, SPX SMMs will only receive a waiver of fees otherwise assessed for one Market-Maker Trading Permit and one SPX Tier Appointment if they satisfy the abovementioned heightened quoting standard. If an SPX SMM does not meet the heightened quoting standard, then they simply will not receive one free Trading Permit and Tier Appointment for that month. The Exchange believes the proposed incentive however, will encourage SPX SMMs to provide significant liquidity in [[Page 23505]] SPX. Additionally, the Exchange notes that it expects that TPHs may need to undertake expenses to be able to quote at a significantly heightened standard in these classes, such as purchase additional bandwidth. The Exchange notes that the proposed financial incentive program for SPX SMMs is similar to the rebate program adopted for ETH LMMs, as both programs offer financial benefits for meeting increased quoting standards as opposed to providing benefits for those that are required to meet heightened quoting obligations.\12\ --------------------------------------------------------------------------- \11\ See e.g., Cboe Options Rule 8.7. \12\ See Cboe Options Fees Schedule, Footnote 38. --------------------------------------------------------------------------- 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.\13\ Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5)\14\ 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 Section 6(b)(4) of the Act,\15\ which requires that Exchange rules provide for the equitable allocation of reasonable dues, fees, and other charges among its Trading Permit Holders and other persons using its facilities. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78f(b). \14\ 15 U.S.C. 78f(b)(5). \15\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- The Exchange believes eliminating references to ``Hybrid 3.0'' in the Fees Schedule helps avoid confusion by eliminating language that will be rendered obsolete following the transition of moving the only product trading on the Hybrid 3.0 platform (i.e., SPX options series) to the Hybrid trading platform, thereby removing impediments to and perfecting the mechanism of a free and open market and a national market system. The Exchange notes that no substantive changes are being made by eliminating references to Hybrid 3.0. The Exchange believes it is reasonable to offer SPX SMMs that meet a certain heightened quoting standard (described above) one free Market-Maker Trading Permit and one SPX Tier Appointment given the potential added costs that an SPX SMM may undertake in order to satisfy that heightened quoting standard (e.g., having to purchase additional bandwidth). Additionally, if an SPX SMM does not satisfy the heightened quoting standard, then it will not receive the proposed free Trading Permit and Tier Appointment. The Exchange believes it is equitable and not unfairly discriminatory to only offer the financial incentive to SPX SMMs because it benefits all market participants trading in the SPX to encourage SPX SMMs to satisfy the heightened quoting standards, which may increase liquidity and provide more trading opportunities and tighter spreads. Because there are no additional required obligations imposed on SPX SMMs, they receive no additional benefits (e.g., no participation entitlement). The Exchange notes that creating an incentive in which SPX SMMs must satisfy a heightened standard encourages Market-Makers that are appointed as SPX SMMs to provide significant liquidity in SPX. The Exchange notes that without the proposed financial incentive, there would not be sufficient incentive for Trading Permit Holders to undertake an obligation to quote at heightened levels, which could result in lower levels of liquidity. The SPX SMM incentive program is also reasonable, as it is designed to encourage increased quoting to add liquidity in SPX, thereby protecting investors and the public interest. The Exchange also believes the incentive program is not unfairly discriminatory, as all Trading Permit Holders have the opportunity to apply to act as SPX SMMs and participate in the incentive program, and the Exchange will appoint SPX SMMs based on the factors described above, which are proposed to be set forth in the Fees Schedule and otherwise disclosed to Trading Permit Holders.\16\ The Exchange notes that the factors used by the Exchange in appointing SPX SMMs are the same currently used to appoint LMMs.\17\ The Exchange lastly notes that a similar financial incentive program was adopted for appointed LMMs in ETH.\18\ --------------------------------------------------------------------------- \16\ See Exchange Notice ``Solicitation for SPX Lead Market- Makers (``LMMs'') During Regular Trading Hours (``RTH'')'' (dated February 27, 2018). \17\ See Cboe Options Rule 8.15(i). \18\ See Cboe Options Fees Schedule, Footnote 38 and Cboe Options Rule 6.1A. --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule changes will impose any burden on competition that are not necessary or appropriate in furtherance of the purposes of the Act. The Exchange does not believe that the proposed rule change will impose any burden on intramarket competition that is not necessary or appropriate in furtherance of the purposes of the Act because, while the financial incentive is offered only to certain market participants (i.e., appointed SPX SMMs that meet a heightened quoting standard), those market participants must meet heightened quoting standards to receive the financial incentive. Additionally, SPX SMMs may incur additional costs to meet the heightened quoting standard. The Exchange believes the financial incentive of one free Trading Permit and Tier Appointment encourages those market participants to bring liquidity to the Exchange in SPX options (which benefits all market participants). The Exchange does not believe that the proposed rule changes will impose any burden on intermarket competition that is not necessary or appropriate in furtherance of the purposes of the Act because SPX options are proprietary products that will only be traded on Cboe Options. To the extent that the proposed changes make Cboe Options a more attractive marketplace for market participants at other exchanges, such market participants are welcome to become Cboe Options market participants. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange neither solicited nor received comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the proposed rule change does not (i) significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section [[Page 23506]] 19(b)(3)(A) of the Act \19\ and Rule 19b-4(f)(6) thereunder.\20\ --------------------------------------------------------------------------- \19\ 15 U.S.C. 78s(b)(3)(A). \20\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b- 4(f)(6)(iii), the Exchange provided the Commission with 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. --------------------------------------------------------------------------- A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the Act \21\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \22\ 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 may become operative immediately upon filing. According to the Exchange, waiver of the operative delay will allow the immediate implementation of the SPX SMM program and updated references relating to ``Hybrid 3.0''. The Exchange also states that delaying the implementation of the SPX SMM program could result in lower levels of liquidity, as without the program there may not be sufficient incentive for Trading Permit Holders to undertake an obligation to quote at heightened levels. In addition, the Exchange states that the SPX SMM program does not present any new or novel issues. The Commission believes the waiver of the operative delay is consistent with the protection of investors and the public interest. As discussed above by the Exchange, there are no new or novel issues raised by the proposed rule change. Therefore, the Commission hereby waives the operative delay and designates the proposal operative upon filing.\23\ --------------------------------------------------------------------------- \21\ 17 CFR 240.19b-4(f)(6). \22\ 17 CFR 240.19b-4(f)(6)(iii). \23\ For purposes only of waiving the 30-day operative delay, the Commission has also considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule change 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 CommentsUse 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-CBOE-2018-039 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090. All submissions should refer to File Number SR-CBOE-2018-039. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's internet website (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission's Public Reference Room, 100 F Street NE, Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-CBOE-2018-039 and should be submitted on or before June 11, 2018. --------------------------------------------------------------------------- \24\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\24\ Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-10708 Filed 5-18-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 98 / Monday, May 21, 2018 / Notices 23503
portfolio securities from taking into to the Commission will not be kept SECURITIES AND EXCHANGE
account broker-dealers’ promotional or confidential. An agency may not COMMISSION
sales efforts when making those conduct or sponsor, and a person is not
[Release No. 34–83241; File No. SR–CBOE–
decisions; and (ii) a fund, its adviser, or required to respond to a collection of 2018–039]
its principal underwriter, from entering information unless it displays a
into any agreement under which the currently valid OMB control number. Self-Regulatory Organizations; Cboe
fund directs brokerage transactions or Exchange, Inc.; Notice of Filing and
revenue generated by those transactions Written comments are invited on: (a)
Whether the collection of information is Immediate Effectiveness of a Proposed
to a broker-dealer to pay for distribution Rule Change Relating to Its Fees
of the fund’s (or any other fund’s) necessary for the proper performance of
the functions of the Commission, Schedule in Connection With the
shares. Exchange’s Planned Migration of
The board and shareholder approval including whether the information has
Standard Third-Friday Options on the
requirements of rule 12b–1 are designed practical utility; (b) the accuracy of the
S&P 500 Index to the Hybrid Trading
to ensure that fund shareholders and Commission’s estimate of the burden of
System From the Hybrid 3.0 System
directors receive adequate information the collection of information; (c) ways to
to evaluate and approve a rule 12b–1 enhance the quality, utility, and clarity May 15, 2018.
plan and, thus, are necessary for of the information collected; and (d) Pursuant to Section 19(b)(1) of the
investor protection. The requirement of ways to minimize the burden of the Securities Exchange Act of 1934 (the
quarterly reporting to the board is collection of information on ‘‘Act’’),1 and Rule 19b–4 thereunder,2
designed to ensure that the rule 12b–1 respondents, including through the use notice is hereby given that on May 3,
plan continues to benefit the fund and of automated collection techniques or 2018, Cboe Exchange, Inc. (the
its shareholders. The recordkeeping other forms of information technology. ‘‘Exchange’’ or ‘‘Cboe Options’’) filed
requirements of the rule are necessary to Consideration will be given to with the Securities and Exchange
enable Commission staff to oversee Commission (the ‘‘Commission’’) the
comments and suggestions submitted in
compliance with the rule. The proposed rule change as described in
writing within 60 days of this
requirement that funds or their advisers Items I and II below, which Items have
implement, and fund boards approve, publication.
been prepared by the Exchange. The
policies and procedures in order to Please direct your written comments Exchange filed the proposal as a ‘‘non-
prevent persons charged with allocating to Pamela Dyson, Chief Information controversial’’ proposed rule change
fund brokerage from taking distribution Officer, Securities and Exchange pursuant to Section 19(b)(3)(A)(iii) of
efforts into account is designed to Commission, c/o Remi Pavlik-Simon, the Act 3 and Rule 19b–4(f)(6)
ensure that funds’ selection of brokers to 100 F Street NE, Washington, DC 20549; thereunder.4 The Commission is
effect portfolio securities transactions is or send an email to: PRA_Mailbox@ publishing this notice to solicit
not influenced by considerations about sec.gov. comments on the proposed rule change
the sale of fund shares. from interested persons.
Commission staff estimates that there All submissions should refer to File
are approximately 7,858 fund portfolios Number 270–188. This file number I. Self-Regulatory Organization’s
that have at least one share class subject should be included on the subject line Statement of the Terms of Substance of
to a rule 12b–1 plan and approximately if email is used. The Commission will the Proposed Rule Change
323 fund families with common boards post all comments on the Commission’s
The Exchange proposes to amend its
of directors that have at least one fund internet website (http://www.sec.gov). Fees Schedule in connection with the
with a 12b–1 plan. The Commission All comments received will be posted Exchange’s planned migration of
further estimates that the annual hour without change; we do not edit personal standard third-Friday options on the
burden for complying with the rule is identifying information from S&P 500 Index (‘‘SPX options’’) to the
425 hours for each fund family with a submissions. You should submit only Hybrid Trading System from the Hybrid
portfolio that has a rule 12b–1 plan. We information that you wish to make 3.0 System.
therefore estimate that the total hourly available publicly. The text of the proposed rule change
burden per year for all funds to comply is also available on the Exchange’s
Dated: May 16, 2018.
with current information collection website (http://www.cboe.com/About
requirements under rule 12b–1 is Eduardo A. Aleman,
CBOE/CBOELegalRegulatory
137,275 hours. Commission staff Assistant Secretary. Home.aspx), at the Exchange’s Office of
estimates that approximately three [FR Doc. 2018–10776 Filed 5–18–18; 8:45 am] the Secretary, and at the Commission’s
funds per year prepare a proxy in BILLING CODE 8011–01–P Public Reference Room.
connection with the adoption or
material amendment of a rule 12b–1 II. Self-Regulatory Organization’s
plan. The staff further estimates that the Statement of the Purpose of, and
cost of each fund’s proxy is $34,849. Statutory Basis for, the Proposed Rule
Thus, the total annual cost burden of Change
rule 12b–1 to the fund industry is In its filing with the Commission, the
$104,547. Exchange included statements
Estimates of average burden hours concerning the purpose of and basis for
and costs are made solely for purposes
sradovich on DSK3GMQ082PROD with NOTICES
the proposed rule change and discussed
of the Paperwork Reduction Act and are any comments it received on the
not derived from a comprehensive or proposed rule change. The text of these
even representative survey or study of
the costs of Commission rules and 1 15 U.S.C. 78s(b)(1).
forms. The collections of information 2 17 CFR 240.19b–4.
required by Rule 12b–1 are necessary to 3 15 U.S.C. 78s(b)(3)(A)(iii).
obtain the benefits of the rule. Notices 4 17 CFR 240.19b–4(f)(6).
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![23506 Federal Register / Vol. 83, No. 98 / Monday, May 21, 2018 / Notices
19(b)(3)(A) of the Act 19 and Rule 19b– IV. Solicitation of Comments For the Commission, by the Division of
4(f)(6) thereunder.20 Trading and Markets, pursuant to delegated
Interested persons are invited to authority.24
A proposed rule change filed submit written data, views, and Eduardo A. Aleman,
pursuant to Rule 19b–4(f)(6) under the arguments concerning the foregoing, Assistant Secretary.
Act 21 normally does not become including whether the proposed rule [FR Doc. 2018–10708 Filed 5–18–18; 8:45 am]
operative for 30 days after the date of its change is consistent with the Act. BILLING CODE 8011–01–P
filing. However, Rule 19b–4(f)(6)(iii) 22 Comments may be submitted by any of
permits the Commission to designate a the following methods:
shorter time if such action is consistent SECURITIES AND EXCHANGE
with the protection of investors and the Electronic Comments COMMISSION
public interest. The Exchange has asked
• Use the Commission’s internet [Release No. 34–83243; File No. SR–ICEEU–
the Commission to waive the 30-day
comment form (http://www.sec.gov/ 2018–001]
operative delay so that the proposal may
rules/sro.shtml); or
become operative immediately upon Self-Regulatory Organizations; ICE
filing. According to the Exchange, • Send an email to rule-comments@ Clear Europe Limited; Order Approving
waiver of the operative delay will allow sec.gov. Please include File Number SR– Proposed Rule Change Relating to
the immediate implementation of the CBOE–2018–039 on the subject line. Amendments to the ICE Clear Europe
SPX SMM program and updated Paper Comments CDS Clearing Stress Testing Policy
references relating to ‘‘Hybrid 3.0’’. The
Exchange also states that delaying the • Send paper comments in triplicate May 15, 2018.
implementation of the SPX SMM to Secretary, Securities and Exchange I. Introduction
program could result in lower levels of Commission, 100 F Street NE, On February 6, 2018, ICE Clear
liquidity, as without the program there Washington, DC 20549–1090. Europe Limited (‘‘ICE Clear Europe’’)
may not be sufficient incentive for filed with the Securities and Exchange
Trading Permit Holders to undertake an All submissions should refer to File
Number SR–CBOE-2018–039. This file Commission (‘‘Commission’’), pursuant
obligation to quote at heightened levels. to Section 19(b)(1) of the Securities
In addition, the Exchange states that the number should be included on the
subject line if email is used. To help the Exchange Act of 1934 (‘‘Act’’),1 and rule
SPX SMM program does not present any 19b–4 thereunder,2 a proposed rule
new or novel issues. The Commission Commission process and review your
comments more efficiently, please use change (SR–ICEEU–2018–001) to revise
believes the waiver of the operative its CDS Clearing Stress-Testing Policy
delay is consistent with the protection only one method. The Commission will
post all comments on the Commission’s (‘‘Stress Testing Policy’’) to, among
of investors and the public interest. As other things: (i) Re-categorize its CDS
discussed above by the Exchange, there internet website (http://www.sec.gov/
stress testing scenarios; (ii) add
are no new or novel issues raised by the rules/sro.shtml). Copies of the
provisions addressing specific wrong
proposed rule change. Therefore, the submission, all subsequent
way risk; (iii) implement new forward-
Commission hereby waives the amendments, all written statements
looking credit event scenarios; and (iv)
operative delay and designates the with respect to the proposed rule make certain clarifications and
proposal operative upon filing.23 change that are filed with the enhancements. The proposed rule
Commission, and all written change was published for comment in
At any time within 60 days of the communications relating to the
filing of the proposed rule change, the the Federal Register on February 16,
proposed rule change between the 2018.3 The Commission did not receive
Commission summarily may Commission and any person, other than comments on the proposed rule change.
temporarily suspend such rule change if those that may be withheld from the On April 2, 2018, the Commission
it appears to the Commission that such public in accordance with the designated a longer period for
action is necessary or appropriate in the provisions of 5 U.S.C. 552, will be Commission action on the proposed rule
public interest, for the protection of available for website viewing and change.4 For the reasons discussed
investors, or otherwise in furtherance of printing in the Commission’s Public below, the Commission is approving the
the purposes of the Act. If the Reference Room, 100 F Street NE, proposed rule change.
Commission takes such action, the Washington, DC 20549 on official
Commission shall institute proceedings business days between the hours of II. Description of the Proposed Rule
to determine whether the proposed rule Change
10:00 a.m. and 3:00 p.m. Copies of the
change should be approved or filing also will be available for As currently constructed, ICE Clear
disapproved. inspection and copying at the principal Europe’s Stress Testing Policy contains
office of the Exchange. All comments a number of stress testing scenarios.
19 15 U.S.C. 78s(b)(3)(A). received will be posted without change. These stress testing scenarios are
20 17 CFR 240.19b–4(f)(6). As required under Rule Persons submitting comments are applied to portfolios of positions as part
19b–4(f)(6)(iii), the Exchange provided the of ICE Clear Europe’s risk management
Commission with written notice of its intent to file cautioned that we do not redact or edit
the proposed rule change, along with a brief personal identifying information from processes for its credit default swap
description and the text of the proposed rule comment submissions. You should (‘‘CDS’’) product class.5 Under the
change, at least five business days prior to the date submit only information that you wish
sradovich on DSK3GMQ082PROD with NOTICES
of filing of the proposed rule change, or such 1 15 U.S.C. 78s(b)(1).
shorter time as designated by the Commission. to make available publicly. All 2 17 CFR 240.19b–4.
21 17 CFR 240.19b–4(f)(6). submissions should refer to File 3 Securities Exchange Act Release No. 34–82692
22 17 CFR 240.19b–4(f)(6)(iii). Number SR–CBOE–2018–039 and (February 12, 2018), 83 FR 7096 (February 16, 2018)
23 For purposes only of waiving the 30-day
should be submitted on or before June (SR–ICEEU–2018–001) (‘‘Notice’’).
operative delay, the Commission has also 4 Securities Exchange Act Release No. 34–82978
11, 2018. (April 2, 2018), 83 FR 14901 (April 6, 2018) (SR–
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See ICEEU–2018–001).
15 U.S.C. 78c(f). 24 17 CFR 200.30–3(a)(12). 5 Notice, 83 FR at 7096.
VerDate Sep<11>2014 18:20 May 18, 2018 Jkt 244001 PO 00000 Frm 00093 Fmt 4703 Sfmt 4703 E:\FR\FM\21MYN1.SGM 21MYN1](https://thefederalregister.org/doc/83_FR_23601/page/4.svg)
Document Created: 2018-11-02 11:07:16
Document Modified: 2018-11-02 11:07:16
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 83 FR 23503 |
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