83 FR 31823 - Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fees Schedule Concerning MSCI EAFE Index Options and MSCI Emerging Markets Index Options

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 131 (July 9, 2018)

Page Range		31823-31824
FR Document		2018-14549
Federal Register, Volume 83 Issue 131 (Monday, July 9, 2018)
[Federal Register Volume 83, Number 131 (Monday, July 9, 2018)]
[Notices]
[Pages 31823-31824]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-14549]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83584; File No. SR-CBOE-2018-049]


Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
Its Fees Schedule Concerning MSCI EAFE Index Options and MSCI Emerging 
Markets Index Options

July 2, 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 July 2, 2018, Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe 
Options'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I, II, 
and III 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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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 its Fees Schedule. The text of the 
proposed rule change is 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 Exchange proposes to amend its Fees Schedule, effective July 2, 
2018. Particularly, the Exchange is proposing to adopt a customer 
transaction fee for MSCI EAFE Index (MXEA) options and MSCI Emerging 
Markets Index (MXEF) options (``MSCI Options''). Currently, the 
Exchange does not assess any customer transaction fees for MSCI 
options. The Exchange is proposing to adopt a $0.25 per contract fee 
for customer transaction fees for transactions in MSCI Options. The 
Exchange notes that the proposed fee amount is in line with customer 
transaction fees assessed on other index products.\3\
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    \3\ See Cboe Options Fees Schedule, Index Options Rate Table and 
Specified Proprietary Index Options Rate Table.
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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.\4\ Specifically, the 
Exchange believes the proposed rule change is consistent with Section 
6(b)(4) of the Act,\5\ which provides that Exchange rules may provide 
for the equitable allocation of reasonable dues, fees, and other 
charges among its Trading Permit Holders and other persons using its 
facilities.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(4).
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    In particular, the proposed change is reasonable because the 
proposed fee amount is within the range of amounts assessed on other 
index products (e.g., OEX Weeklys, XEO Weeklys and Sector Indexes).\6\ 
The proposed change to the customer MSCI options transaction fees is 
equitable and not unfairly discriminatory because it applies uniformly 
to all customer transactions in MSCI options. The Exchange also 
believes it's reasonable, equitable and not unfairly discriminatory 
that the proposed fee amount is still less than the amount assessed for 
MSCI options for other market participants because Customer order flow 
enhances liquidity on the Exchange for the benefit of all market 
participants.
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    \6\ See Cboe Options Fees Schedule, Specified Proprietary Index 
Options Rate Table--Underlying Symbol List A and Sector Indexes.

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[[Page 31824]]

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

    The Exchange 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 Exchange does not 
believe that the proposed change to customer MSCI options transaction 
fees will cause any unnecessary burden on intramarket competition 
because, while customers are assessed different, and often lower, fee 
rates than other market participants, Customer order flow enhances 
liquidity on the Exchange for the benefit of all market participants. 
Moreover, the options industry has a long history of providing 
preferential pricing to Customers, and the Exchange's current Fees 
Schedule currently does so in many places. Additionally, the proposed 
Customer fee amount will be applied equally to all Customers (meaning 
that all Customers will be assessed the same amount for MSCI Options). 
The Exchange does not believe that the proposed changes to the customer 
MSCI Options transaction fees will cause any unnecessary burden on 
intermarket competition because the change only affects trading 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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \7\ and paragraph (f) of Rule 19b-4 \8\ 
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. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule change should be approved or 
disapproved.
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-CBOE-2018-049 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-2018-049. 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-2018-049 and should be submitted on 
or before July 30, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-14549 Filed 7-6-18; 8:45 am]
 BILLING CODE P
Federal Register / Vol. 83, No. 131 / Monday, July 9, 2018 / Notices 31823

100 F Street NE, Washington, DC Dated: July 3, 2018. A. Self-Regulatory Organization’s
20549–2736 Eduardo A. Aleman, Statement of the Purpose of, and
Extension: Assistant Secretary. Statutory Basis for, the Proposed Rule
Form 40–F, SEC File No. 270–335, OMB [FR Doc. 2018–14653 Filed 7–6–18; 8:45 am] Change
Control No. 3235–0381 BILLING CODE 8011–01–P
1. Purpose
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995 The Exchange proposes to amend its
SECURITIES AND EXCHANGE Fees Schedule, effective July 2, 2018.
(44 U.S.C. 3501 et seq.), the Securities COMMISSION
and Exchange Commission Particularly, the Exchange is proposing
(‘‘Commission’’) is soliciting comments [Release No. 34–83584; File No. SR–CBOE– to adopt a customer transaction fee for
on the collection of information 2018–049] MSCI EAFE Index (MXEA) options and
summarized below. The Commission MSCI Emerging Markets Index (MXEF)
Self-Regulatory Organizations; Cboe options (‘‘MSCI Options’’). Currently,
plans to submit this existing collection
Exchange, Inc.; Notice of Filing and the Exchange does not assess any
of information to the Office of
Immediate Effectiveness of a Proposed customer transaction fees for MSCI
Management and Budget for extension
Rule Change To Amend Its Fees options. The Exchange is proposing to
and approval.
Schedule Concerning MSCI EAFE adopt a $0.25 per contract fee for
Form 40–F (17 CFR 249.240f) is used Index Options and MSCI Emerging
by certain Canadian issuers to register a customer transaction fees for
Markets Index Options transactions in MSCI Options. The
class of securities under Section 12 of
the Securities Exchange Act of 1934 July 2, 2018. Exchange notes that the proposed fee
(‘‘Exchange Act’’) (15 U.S.C. 78l) or as Pursuant to Section 19(b)(1) of the amount is in line with customer
an annual report pursuant to Section Securities Exchange Act of 1934 (the transaction fees assessed on other index
13(a) or 15 (d) of the Exchange Act (15 ‘‘Act’’),1 and Rule 19b–4 thereunder,2 products.3
U.S.C. 78m(a) or 78o(d)). The notice is hereby given that on July 2, 2. Statutory Basis
information required in the Form 40–F 2018, Cboe Exchange, Inc. (the
is used by investors in making ‘‘Exchange’’ or ‘‘Cboe Options’’) filed The Exchange believes the proposed
investment decisions with respect to the with the Securities and Exchange rule change is consistent with the
securities of such Canadian companies. Commission (the ‘‘Commission’’) the Securities Exchange Act of 1934 (the
We estimate that Form 40–F takes proposed rule change as described in ‘‘Act’’) and the rules and regulations
approximately 429.93 hours per Items I, II, and III below, which Items thereunder applicable to the Exchange
response and is filed by approximately have been prepared by the Exchange. and, in particular, the requirements of
132 respondents. We estimate that 25% The Commission is publishing this Section 6(b) of the Act.4 Specifically,
of the 429.93 hours per response (107.48 notice to solicit comments on the the Exchange believes the proposed rule
hours) is prepared by the issuer for a proposed rule change from interested change is consistent with Section 6(b)(4)
total reporting burden of 14,187 (107.48 persons. of the Act,5 which provides that
hours per response × 132 responses). Exchange rules may provide for the
I. Self-Regulatory Organization’s
Written comments are invited on: (a) Statement of the Terms of Substance of equitable allocation of reasonable dues,
Whether the proposed collection of the Proposed Rule Change fees, and other charges among its
information is necessary for the proper Trading Permit Holders and other
performance of the functions of the The Exchange proposes to amend its persons using its facilities.
agency, including whether the Fees Schedule. The text of the proposed
rule change is available on the In particular, the proposed change is
information will have practical utility; reasonable because the proposed fee
(b) the accuracy of the agency’s estimate Exchange’s website (http://
www.cboe.com/AboutCBOE/CBOELegal amount is within the range of amounts
of the burden imposed by the collection assessed on other index products (e.g.,
of information; (c) ways to enhance the RegulatoryHome.aspx), at the
Exchange’s Office of the Secretary, and OEX Weeklys, XEO Weeklys and Sector
quality, utility, and clarity of the Indexes).6 The proposed change to the
information collected; and (d) ways to at the Commission’s Public Reference
Room. customer MSCI options transaction fees
minimize the burden of the collection of is equitable and not unfairly
information on respondents, including II. Self-Regulatory Organization’s discriminatory because it applies
through the use of automated collection Statement of the Purpose of, and uniformly to all customer transactions
techniques or other forms of information Statutory Basis for, the Proposed Rule in MSCI options. The Exchange also
technology. Consideration will be given Change believes it’s reasonable, equitable and
to comments and suggestions submitted In its filing with the Commission, the not unfairly discriminatory that the
in writing within 60 days of this Exchange included statements proposed fee amount is still less than
publication. concerning the purpose of and basis for the amount assessed for MSCI options
An agency may not conduct or the proposed rule change and discussed for other market participants because
sponsor, and a person is not required to any comments it received on the Customer order flow enhances liquidity
respond to, a collection of information proposed rule change. The text of these on the Exchange for the benefit of all
unless it displays a currently valid statements may be examined at the market participants.
control number.
sradovich on DSK3GMQ082PROD with NOTICES

places specified in Item IV below. The
Please direct your written comment to Exchange has prepared summaries, set 3 See Cboe Options Fees Schedule, Index Options

Pamela Dyson, Director/Chief forth in Sections A, B, and C below, of Rate Table and Specified Proprietary Index Options
Information Officer, Securities and Rate Table.
the most significant aspects of such 4 15 U.S.C. 78f(b).
Exchange Commission, c/o Candace statements. 5 15 U.S.C. 78f(b)(4).
Kenner, 100 F Street NE, Washington, 6 See Cboe Options Fees Schedule, Specified
DC 20549 or send an email to: PRA_ 1 15 U.S.C. 78s(b)(1). Proprietary Index Options Rate Table—Underlying
Mailbox@sec.gov. 2 17 CFR 240.19b–4. Symbol List A and Sector Indexes.

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31824 Federal Register / Vol. 83, No. 131 / Monday, July 9, 2018 / Notices

B. Self-Regulatory Organization’s change should be approved or For the Commission, by the Division of
Statement on Burden on Competition disapproved. Trading and Markets, pursuant to delegated
authority.9
The Exchange does not believe that IV. Solicitation of Comments Eduardo A. Aleman,
the proposed rule change will impose
Assistant Secretary.
any burden on competition that is not Interested persons are invited to
[FR Doc. 2018–14549 Filed 7–6–18; 8:45 am]
necessary or appropriate in furtherance submit written data, views, and
of the purposes of the Act. The BILLING CODE P
arguments concerning the foregoing,
Exchange does not believe that the including whether the proposed rule
proposed change to customer MSCI change is consistent with the Act.
options transaction fees will cause any SECURITIES AND EXCHANGE
Comments may be submitted by any of COMMISSION
unnecessary burden on intramarket the following methods:
competition because, while customers Proposed Collection; Comment
are assessed different, and often lower, Electronic Comments
Request
fee rates than other market participants,
• Use the Commission’s internet Upon Written Request Copies Available
Customer order flow enhances liquidity
comment form (http://www.sec.gov/ From: Securities and Exchange
on the Exchange for the benefit of all
rules/sro.shtml); or Commission, Office of FOIA Services,
market participants. Moreover, the
options industry has a long history of • Send an email to rule-comments@ 100 F Street NE, Washington, DC
providing preferential pricing to sec.gov. Please include File Number SR– 20549–2736
Customers, and the Exchange’s current CBOE–2018–049 on the subject line. Extension:
Fees Schedule currently does so in Form 10–Q, SEC File No. 270–49, OMB
Paper Comments
many places. Additionally, the Control No. 3235–0070
proposed Customer fee amount will be • Send paper comments in triplicate Notice is hereby given that, pursuant
applied equally to all Customers to Secretary, Securities and Exchange to the Paperwork Reduction Act of 1995
(meaning that all Customers will be Commission, 100 F Street NE, (44 U.S.C. 3501 et seq.), the Securities
assessed the same amount for MSCI Washington, DC 20549–1090. and Exchange Commission
Options). The Exchange does not (‘‘Commission’’) is soliciting comments
believe that the proposed changes to the All submissions should refer to File
on the collection of information
customer MSCI Options transaction fees Number SR–CBOE–2018–049. This file
summarized below. The Commission
will cause any unnecessary burden on number should be included on the
plans to submit this existing collection
intermarket competition because the subject line if email is used. To help the
of information to the office of
change only affects trading on Cboe Commission process and review your
Management and Budget for approval of
Options. To the extent that the proposed comments more efficiently, please use
extensions on the following:
changes make Cboe Options a more only one method. The Commission will Form 10–Q (17 CFR 249.308a) is filed
attractive marketplace for market post all comments on the Commission’s by issuers of securities to satisfy their
participants at other exchanges, such internet website (http://www.sec.gov/ quarterly reporting obligations pursuant
market participants are welcome to rules/sro.shtml). Copies of the to Section 13 or 15(d) of the Exchange
become Cboe Options market submission, all subsequent Act (‘‘Exchange Act’’) (15 U.S.C. 78m or
participants. amendments, all written statements 78o(d)). The information provided by
C. Self-Regulatory Organization’s with respect to the proposed rule Form 10–Q is intended to ensure the
Statement on Comments on the change that are filed with the adequacy of information available to
Proposed Rule Change Received From Commission, and all written investors about an issuer. Form 10–Q
Members, Participants, or Others communications relating to the takes approximately 187.43 hours per
proposed rule change between the response to prepare and is filed by
The Exchange neither solicited nor Commission and any person, other than
received comments on the proposed approximately 22,907 respondents. We
those that may be withheld from the estimated that 75% of the
rule change. public in accordance with the approximately 187.43 hours per
III. Date of Effectiveness of the provisions of 5 U.S.C. 552, will be response (140.57 hours) is prepared by
Proposed Rule Change and Timing for available for website viewing and the company for an annual reporting
Commission Action printing in the Commission’s Public burden of 3,220,037 hours (140.57 hours
Reference Room, 100 F Street NE, per response x 22,907 responses).
The foregoing rule change has become
Washington, DC 20549 on official Written comments are invited on: (a)
effective pursuant to Section 19(b)(3)(A)
business days between the hours of Whether the proposed collection of
of the Act 7 and paragraph (f) of Rule
10:00 a.m. and 3:00 p.m. Copies of the information is necessary for the proper
19b–4 8 thereunder. At any time within
60 days of the filing of the proposed rule filing also will be available for performance of the functions of the
change, the Commission summarily may inspection and copying at the principal agency, including whether the
temporarily suspend such rule change if office of the Exchange. All comments information will have practical utility;
it appears to the Commission that such received will be posted without change. (b) the accuracy of the agency’s estimate
action is necessary or appropriate in the Persons submitting comments are of burden of the collection of
public interest, for the protection of cautioned that we do not redact or edit information; (c) ways to enhance the
personal identifying information from
sradovich on DSK3GMQ082PROD with NOTICES

investors, or otherwise in furtherance of quality, utility, and clarity of the
the purposes of the Act. If the comment submissions. You should information collected; and (d) ways to
Commission takes such action, the submit only information that you wish minimize the burden of the collection of
Commission shall institute proceedings to make available publicly. All information on respondents, including
to determine whether the proposed rule submissions should refer to File through the use of automated collection
Number SR–CBOE–2018–049 and techniques or other forms of information
7 15 U.S.C. 78s(b)(3)(A). should be submitted on or before July
8 17 CFR 240.19b–4(f). 30, 2018. 9 17 CFR 200.30–3(a)(12).

VerDate Sep<11>2014 18:00 Jul 06, 2018 Jkt 244001 PO 00000 Frm 00110 Fmt 4703 Sfmt 4703 E:\FR\FM\09JYN1.SGM 09JYN1
Document Created: 2018-07-07 00:42:01
Document Modified: 2018-07-07 00:42:01
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 31823