83 FR 29844 - Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Rule Governing Crowd Space Disputes
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 123 (June 26, 2018)
Federal Register Volume 83, Issue 123 (June 26, 2018)
| Page Range | 29844-29846 | |
| FR Document | 2018-13620 |
[Federal Register Volume 83, Number 123 (Tuesday, June 26, 2018)] [Notices] [Pages 29844-29846] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-13620] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83486; File No. SR-CBOE-2018-043] Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Rule Governing Crowd Space Disputes June 20, 2018. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934,\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on June 7, 2018, Cboe Exchange, Inc. (``Exchange'' or ``Cboe Options'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. 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. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Rule 24.21 relating to Crowd Space Disputes. 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 Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this rule change is to amend Rule 24.21 (Index Crowd Space Dispute Resolution Procedures). By way of background, Rule 24.21 provides for guidelines and procedures to resolve disputes concerning the right of Trading Permit Holders (``TPHs'') to occupy a certain space in certain index option trading pits. Particularly, the Exchange proposes to amend subparagraphs (b) and (g) of Rule 24.21, which provisions relate to the Space Mediator and the Crowd Space Dispute Resolution (``CSDR'') panel, respectively. Currently, the rule provides that the Space Mediator \3\ will select a CSDR Panel (``Panel'') [[Page 29845]] composed of seven TPHs to hear and resolve a space dispute. The rule provides that the Space Mediator selects six members of the Panel from members of the Exchange (other than the Space Mediator himself) and of those six members, three members shall be TPHs who trade in the trading station where the dispute has arisen and three shall be TPHs who do not trade in the trading station where the dispute has arisen. The seventh Panel member shall be a Floor Official designated by the Exchange. --------------------------------------------------------------------------- \3\ As defined in Cboe Options Rule 24.21(b). --------------------------------------------------------------------------- The Exchange is seeking to reduce the number of TPHs that must be appointed to a Panel. Specifically, the Exchange proposes that Panels be comprised of 5 TPHs, two of whom trade in a trading station where the dispute has arisen and two of whom trade outside of the trading station where the dispute has arisen. The fifth Panel member would be a TPH Floor Official that may trade in or out of the trading station where the dispute has arisen. The Exchange desires this reduction in Panel size because it has become increasingly burdensome for the Exchange to designate a sufficient number of TPHs to sit on any given Panel, as fewer TPHs are willing to perform these functions and often times there are conflicts limiting the pools of available TPHs. The Exchange notes that the proposed change to state that the fifth panel member must be a ``TPH'' Floor Official is not a substantive change, but rather reflects the Exchange's current practice with respect to staffing Panels (i.e., the Space Mediator does not appoint Floor Officials that are Exchange employees). The Exchange also proposes to eliminate the language providing that the Space Mediator selects members of the Panel ``other than the Space Mediator himself''. Particularly, the Exchange notes that Space Mediator currently is, and has been for some time, an Exchange employee. Additionally, the Exchange does not intend in the future to appoint a Space Mediator that is a TPH. Since all Panels are to be comprised of TPHs (and thereby could not include the Space Mediator), the Exchange believes the above-mentioned language is unnecessary and therefore proposes to eliminate it. Similarly, the Exchange proposes to make clear in subparagraph (b) of Rule 24.21 that the Space Mediator shall be an Exchange employee, to provide clarity in the rules and reflect current practice. Lastly, the Exchange proposes to move the sentence ``The selection of all Panel members will be according to the sole discretion of the Space Mediator'' within subparagraph (g) to make the rule easier to read, as this sentence applies to the Panel in its entirety. 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.\4\ Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \5\ 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) \6\ requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78f(b). \5\ 15 U.S.C. 78f(b)(5). \6\ Id. --------------------------------------------------------------------------- In particular, over the years, fewer TPHs have made themselves available to serve on Panels. The Exchange notes that service on a Panel is voluntary and it cannot force any TPH to serve on a Panel. As such, it has become increasingly burdensome to appoint a sufficient number of TPHs to the Panels. The Exchange believes reducing the number of Panel members will remove impediments to, and perfect the mechanism of, a free and open market because it will assist the Exchange in being able to appoint a sufficient number of TPHs to a Panel in a timely manner. The Exchange notes that the composition requirements of ensuring there are Panel members both in and outside of the station where the dispute occurred still ensures a fair balance. The Exchange also believes the proposed changes to make explicit that the Floor Official panel member must be a TPH and that the Space Mediator must be an Exchange employee provides transparency and clarity in the rules, which alleviates confusion, thereby protecting investors and the public interest. The Exchange also notes these changes do not reflect substantive changes from current practice, but rather clarifies and codifies the Exchange's current practice. B. Self-Regulatory Organization's Statement on Burden on Competition Cboe Options does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change merely reduces the number of Panel members that must serve on a Panel and clarifies and codifies current practices relating to the spot dispute process and thus has no impact on current trading on Cboe Options. Therefore, the proposed rule change has no impact on competition. 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) of the Act and Rule 19b- 4(f)(6) thereunder. 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. 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 [email protected]. Please include File Number SR-CBOE-2018-043 on the subject line. [[Page 29846]] 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-2018-043. 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-2018-043 and should be submitted on or before July 17, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\7\ --------------------------------------------------------------------------- \7\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-13620 Filed 6-25-18; 8:45 am] BILLING CODE 8011-01-P
![29844 Federal Register / Vol. 83, No. 123 / Tuesday, June 26, 2018 / Notices
proposed rule change not later than 180 Commission process and review your Rule 19b-4 thereunder,2 notice is hereby
days after the date of publication of comments more efficiently, please use given that on June 7, 2018, Cboe
notice of filing of the proposed rule only one method. The Commission will Exchange, Inc. (‘‘Exchange’’ or ‘‘Cboe
change.8 The Commission may, post all comments on the Commission’s Options’’) filed with the Securities and
however, extend the period for issuing internet website (http://www.sec.gov/ Exchange Commission (‘‘Commission’’)
an order approving or disapproving the rules/sro.shtml). Copies of the the proposed rule change as described
proposed rule change by not more than submission, all subsequent in Items I and II below, which Items
60 days if the Commission determines amendments, all written statements have been prepared by the Exchange.
that a longer period is appropriate and with respect to the Proposed Rule The Commission is publishing this
publishes the reasons for such Change that are filed with the notice to solicit comments on the
determination.9 Commission, and all written proposed rule change from interested
The 180th day after publication of the communications relating to the persons.
notice for the Proposed Rule Change in Proposed Rule Change between the
I. Self-Regulatory Organization’s
the Federal Register is June 24, 2018. Commission and any person, other than
Statement of the Terms of Substance of
The Commission finds it appropriate to those that may be withheld from the
the Proposed Rule Change
designate a longer period within which public in accordance with the
to issue an order approving or provisions of 5 U.S.C. 552, will be The Exchange proposes to amend
disapproving the Proposed Rule Change available for website viewing and Rule 24.21 relating to Crowd Space
so that it has sufficient time to consider printing in the Commission’s Public Disputes. The text of the proposed rule
the Proposed Rule Change and the Reference Room, 100 F Street NE, change is also available on the
comment received. Accordingly, the Washington, DC 20549, on official Exchange’s website (http://
Commission, pursuant to Section business days between the hours of www.cboe.com/AboutCBOE/CBOELegal
19(b)(2)(B)(ii) of the Act,10 designates 10:00 a.m. and 3:00 p.m. Copies of such RegulatoryHome.aspx), at the
August 23, 2018 as the date by which filing also will be available for Exchange’s Office of the Secretary, and
the Commission shall either approve or inspection and copying at the principal at the Commission’s Public Reference
disapprove the Proposed Rule Change. office of OCC and on OCC’s website at Room.
The Commission also seeks additional https://www.theocc.com/about/ II. Self-Regulatory Organization’s
comment to help further inform its publications/bylaws.jsp. Statement of the Purpose of, and
analysis of the Proposed Rule Change. All comments received will be posted Statutory Basis for, the Proposed Rule
Specifically, the Commission invites without change. Persons submitting Change
interested persons to provide views, comments are cautioned that we do not
redact or edit personal identifying In its filing with the Commission, the
data, and arguments concerning the
information from comment submissions. Exchange included statements
Proposed Rule Change, including
You should submit only information concerning the purpose of and basis for
whether the Proposed Rule Change is
that you wish to make available the proposed rule change and discussed
consistent with the Act and the
publicly. any comments it received on the
applicable rules or regulations
All submissions should refer to File proposed rule change. The text of these
thereunder. Please note that comments
Number SR–OCC–2017–021 and should statements may be examined at the
previously received on the substance of places specified in Item IV below. The
the Proposed Rule Change will be be submitted on or before July 11, 2018.
Any person who wishes to file a rebuttal Exchange has prepared summaries, set
considered together with comments forth in sections A, B, and C below, of
submitted in response to this notice. to any other person’s submission must
file that rebuttal on or before July 17, the most significant aspects of such
Therefore, while commenters are free to statements.
submit additional comments at this 2018.
time, they need not re-submit earlier For the Commission, by the Division of A.Self-Regulatory Organization’s
comments. Trading and Markets, pursuant to delegated Statement of the Purpose of, and
Comments may be submitted by any authority.11 Statutory Basis for, the Proposed Rule
of the following methods: Eduardo A. Aleman, Change
Assistant Secretary.
Electronic Comments 1. Purpose
[FR Doc. 2018–13638 Filed 6–25–18; 8:45 am]
• Use the Commission’s internet BILLING CODE 8011–01–P
The purpose of this rule change is to
comment form (http://www.sec.gov/ amend Rule 24.21 (Index Crowd Space
rules/sro.shtml); or Dispute Resolution Procedures). By way
• Send an email to rule-comments@ SECURITIES AND EXCHANGE of background, Rule 24.21 provides for
sec.gov. Please include File Number SR– COMMISSION guidelines and procedures to resolve
OCC–2017–021 on the subject line. disputes concerning the right of Trading
[Release No. 34–83486; File No. SR–CBOE– Permit Holders (‘‘TPHs’’) to occupy a
Paper Comments 2018–043]
certain space in certain index option
• Send paper comments in triplicate Self-Regulatory Organizations; Cboe trading pits.
to Secretary, Securities and Exchange Exchange, Inc.; Notice of Filing and Particularly, the Exchange proposes to
Commission, 100 F Street NE, Immediate Effectiveness of a Proposed amend subparagraphs (b) and (g) of Rule
Washington, DC 20549–1090. Rule Change To Amend Its Rule 24.21, which provisions relate to the
sradovich on DSK3GMQ082PROD with NOTICES
All submissions should refer to File Governing Crowd Space Disputes Space Mediator and the Crowd Space
Number SR–OCC–2017–021. This file Dispute Resolution (‘‘CSDR’’) panel,
number should be included on the June 20, 2018. respectively. Currently, the rule
subject line if email is used. To help the Pursuant to Section 19(b)(1) of the provides that the Space Mediator 3 will
Securities Exchange Act of 1934,1 and select a CSDR Panel (‘‘Panel’’)
8 15 U.S.C. 78s(b)(2)(B)(ii).
9 Id. 11 17 CFR 200.30–3(a)(57). 2 17 CFR 240.19b-4.
10 Id. 1 15 U.S.C. 78s(b)(1). 3 As defined in Cboe Options Rule 24.21(b).
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![29846 Federal Register / Vol. 83, No. 123 / Tuesday, June 26, 2018 / Notices
Paper Comments SECURITIES AND EXCHANGE of the Act 6 to determine whether to
COMMISSION approve or disapprove the Proposed
• Send paper comments in triplicate Rule Change.7
to Secretary, Securities and Exchange [Release No. 34–83484; File No. SR–OCC– Section 19(b)(2)(B)(ii) of the Act
Commission, 100 F Street NE, 2017–020]
provides that, after initiating
Washington, DC 20549–1090. Self-Regulatory Organizations; proceedings, the Commission shall issue
Options Clearing Corporation; Notice an order approving or disapproving the
All submissions should refer to File
of Designation of Longer Period for proposed rule change not later than 180
Number SR–CBOE–2018–043. This file days after the date of publication of
number should be included on the Commission Action on Proceedings To
Determine Whether To Approve or notice of filing of the proposed rule
subject line if email is used. To help the change.8 The Commission may,
Commission process and review your Disapprove a Proposed Rule Change
Concerning Enhanced and New Tools however, extend the period for issuing
comments more efficiently, please use an order approving or disapproving the
only one method. The Commission will for Recovery Scenarios
proposed rule change by not more than
post all comments on the Commission’s June 20, 2018. 60 days if the Commission determines
internet website (http://www.sec.gov/ On December 18, 2017, The Options that a longer period is appropriate and
rules/sro.shtml). Copies of the Clearing Corporation (‘‘OCC’’) filed with publishes the reasons for such
submission, all subsequent the Securities and Exchange determination.9
amendments, all written statements Commission (‘‘Commission’’) proposed The 180th day after publication of the
with respect to the proposed rule rule change SR–OCC–2017–020 notice for the Proposed Rule Change in
change that are filed with the (‘‘Proposed Rule Change’’) pursuant to the Federal Register is June 24, 2018.
Commission, and all written Section 19(b)(1) of the Securities The Commission finds it appropriate to
communications relating to the Exchange Act of 1934 (‘‘Act’’),1 and designate a longer period within which
proposed rule change between the Rule 19b–4 thereunder,2 concerning to issue an order approving or
Commission and any person, other than enhanced and new tools for recovery disapproving the Proposed Rule Change
scenarios.3 The Proposed Rule Change so that it has sufficient time to consider
those that may be withheld from the
was published for comment in the the Proposed Rule Change and the
public in accordance with the
Federal Register on December 26, comment received. Accordingly, the
provisions of 5 U.S.C. 552, will be Commission, pursuant to Section
available for website viewing and 2017.4 To date, the Commission has
received one comment letter to the 19(b)(2)(B)(ii) of the Act,10 designates
printing in the Commission’s Public August 23, 2018 as the date by which
Reference Room, 100 F Street NE, Proposed Rule Change.5 On March 22,
2018, the Commission instituted the Commission shall either approve or
Washington, DC 20549 on official disapprove the Proposed Rule Change.
business days between the hours of proceedings under Section 19(b)(2)(B)(i)
The Commission also seeks additional
10:00 a.m. and 3:00 p.m. Copies of the 1 15
comment to help further inform its
U.S.C. 78s(b)(1).
filing also will be available for 2 17 CFR 240.19b–4.
analysis of the Proposed Rule Change.
inspection and copying at the principal 3 On December 8, 2017, OCC also filed this Specifically, the Commission invites
office of the Exchange. All comments proposal as an advance notice SR–OCC–2017–809 interested persons to provide views,
received will be posted without change. (‘‘Advance Notice’’) with the Commission pursuant data, and arguments concerning the
to Section 806(e)(1) of Title VIII of the Dodd-Frank Proposed Rule Change, including
Persons submitting comments are Wall Street Reform and Consumer Protection Act,
cautioned that we do not redact or edit entitled the Payment, Clearing, and Settlement whether the Proposed Rule Change is
personal identifying information from Supervision Act of 2010 (12 U.S.C. 5465(e)(1)) and consistent with the Act and the
comment submissions. You should Rule 19b–4(n)(1)(i) of the Act (17 CFR 240.19b– applicable rules or regulations
4(n)(1)(i)). Notice of filing of the Advance Notice thereunder. Please note that comments
submit only information that you wish was published for comment in the Federal Register
to make available publicly. All on January 23, 2018. Securities Exchange Act previously received on the substance of
submissions should refer to File Release No. 82513 (Jan. 17, 2018), 83 FR 3244 (Jan. the Proposed Rule Change will be
23, 2018) (SR–OCC–2017–809). considered together with comments
Number SR–CBOE–2018–043 and On January 22, 2018, the Commission sent OCC submitted in response to this notice.
should be submitted on or before July a request for additional information, which tolls the
Commission’s 60-day review period for the
Therefore, while commenters are free to
17, 2018. submit additional comments at this
Advance Notice. See Memorandum from Office of
For the Commission, by the Division of Clearance and Settlement, Division of Trading and time, they need not re-submit earlier
Trading and Markets, pursuant to delegated Markets, dated January 23, 2018, available at comments.
authority.7 https://www.sec.gov/comments/sr-occ-2017-809/ Comments may be submitted by any
occ2017809.htm. The new review period will be 60
Eduardo A. Aleman, days from the date the Commission receives the of the following methods:
Assistant Secretary. information requested. See Section 806(e)(1). The
proposal in the Proposed Rule Change and the
Electronic Comments
[FR Doc. 2018–13620 Filed 6–25–18; 8:45 am] Advance Notice shall not take effect until all • Use the Commission’s internet
BILLING CODE 8011–01–P regulatory actions required with respect to the comment form (http://www.sec.gov/
proposal are completed.
4 Securities Exchange Act Release No. 82531 (Dec. rules/sro.shtml); or
19, 2017), 82 FR 61107 (Dec. 26, 2017) (SR–OCC– • Send an email to rule-comments@
2017–020). sec.gov. Please include File Number SR–
5 See Letter from Jacqueline H. Mesa, Senior Vice
OCC–2017–020 on the subject line.
sradovich on DSK3GMQ082PROD with NOTICES
President of Global Policy, FIA, dated Jan. 16, 2018,
available at https://www.sec.gov/comments/sr-occ- 6 15 U.S.C. 78s(b)(2)(B)(i).
2017-020/occ2017020.htm. Since the proposal 7 See
contained in the Proposed Rule Change was also Securities Exchange Act Release No. 82926
filed as an Advance Notice, the Commission is (March 22, 2018), 83 FR 13171 (March 27, 2018)
considering all public comments received on the (SR–OCC–2018–020).
8 15 U.S.C. 78s(b)(2)(B)(ii).
proposal regardless of whether the comments are
9 Id.
submitted to the Proposed Rule Change or the
7 17 CFR 200.30–3(a)(12). Advance Notice. 10 Id.
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Document Created: 2018-06-26 00:51:35
Document Modified: 2018-06-26 00:51:35
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 83 FR 29844 |
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