83 FR 44684 - Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Delete Obsolete Language Regarding the Timing of Listing Long-Term Options Series

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 170 (August 31, 2018)

Page Range		44684-44685
FR Document		2018-18895
Federal Register, Volume 83 Issue 170 (Friday, August 31, 2018)
[Federal Register Volume 83, Number 170 (Friday, August 31, 2018)]
[Notices]
[Pages 44684-44685]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-18895]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83958; File No. SR-CboeEDGX-2018-039]


Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change To 
Delete Obsolete Language Regarding the Timing of Listing Long-Term 
Options Series

August 27, 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 August 24, 2018, Cboe EDGX Exchange, Inc. (the ``Exchange'' or 
``EDGX'') 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.
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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 is proposing to amend Rules 19.8 and 29.11.
    The text of the proposed rule change is available at the Exchange's 
website at www.markets.cboe.com, at the principal office of the 
Exchange, 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 parts 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 proposed rule change is to amend Rules 19.8 and 
29.11 to delete now obsolete operational language, which dates back to 
when long-term options contracts were first adopted. This language 
provides that when a new equity or index long-term options contract 
series, as applicable, is listed, such series will be opened for 
trading either when there is buying or selling interest, or 40 minutes 
prior to the close, whichever occurs first. No quotations will be 
posted for such option series until they are opened for trading. The 
Exchange proposes to delete this language because when this language 
was adopted, long-term options contracts were not opened for trading 
until late in the trading day unless there was buying or selling 
interest. Today, however, technological improvements \3\ allow the 
Exchange to open all long-term options contract series at the same time 
as all other series in an option class.\4\
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    \3\ Historically, market participants needed to manually adjust 
pricing models when a new long-term options contract series was 
added, which was time-consuming and created pricing risk. Market 
participants' systems are able to incorporate series added intraday 
in an automatic, and thus more timely, manner. Therefore, any 
previous operational concerns related to the historic manual process 
have been alleviated.
    \4\ See Rule 19.6(a)-(c) and 29.11(c).
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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.\5\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \6\ 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

[[Page 44685]]

the Section 6(b)(5) \7\ requirement that the rules of an exchange not 
be designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
    \7\ Id.
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    In particular, the Exchange believes the proposed rule change will 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system, because deleting obsolete rules 
will more clearly identify for market participants currently applicable 
rules.\8\ The Exchange believes the proposed rule change will eliminate 
confusion regarding which rules apply to current trading, which 
ultimately protects investors and the public interest. Additionally, 
two other options exchanges recently deleted the same provision.\9\
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    \8\ See Rule 19.6(a)-(c) and 29.11(c).
    \9\ See Securities Exchange Act Release Nos. 83909 (August 22, 
2018) (SR-CBOE-2018-061); and 83837 (August 14, 2018), 83 FR 42183 
(August 20, 2018) (SR-NYSEArca-2018-59).
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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 proposed rule change 
deletes an obsolete operation rule, which no longer applies, and thus 
will have no impact on trading. Therefore, the proposed rule change has 
no impact on competition. The proposed rule change eliminates confusion 
with respect to rules applicable to current trading on the Exchange. 
Additionally, two other options exchanges recently deleted the same 
provision.

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 \10\ and Rule 19b-
4(f)(6) thereunder.\11\
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4. In addition, Rule 19b-4(f)(6)(iii) 
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 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.
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    A proposed rule change filed under Rule 19b-4(f)(6) \12\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\13\ the Commission 
may 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. The Commission notes that 
the Exchange's proposal would delete obsolete rule text and conform the 
Exchange's rules to the rules of other exchanges.\14\ Accordingly, the 
Commission believes that the proposal raises no new or novel regulatory 
issues and waiver of the 30-day operative delay is consistent with the 
protection of investors and the public interest. The Commission 
therefore waives the 30-day operative delay and designates the proposed 
rule change to be operative upon filing.\15\
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    \12\ 17 CFR 240.19b-4(f)(6).
    \13\ 17 CFR 240.19b-4(f)(6)(iii).
    \14\ See supra note 9.
    \15\ 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).
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    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 proposal 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 No. SR-CboeEDGX-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 No. SR-CboeEDGX-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 a.m. and 3 
p.m. Copies of the filing will also 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 No. SR-CboeEDGX-2018-039 and should be submitted 
on or before September 21, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-18895 Filed 8-30-18; 8:45 am]
BILLING CODE 8011-01-P
Federal Register / Vol. 83, No. 170 / Friday, August 31, 2018 / Notices 44685

the Section 6(b)(5) 7 requirement that 19(b)(3)(A) of the Act 10 and Rule 19b– CboeEDGX–2018–039 on the subject
the rules of an exchange not be designed 4(f)(6) thereunder.11 line.
to permit unfair discrimination between A proposed rule change filed under
customers, issuers, brokers, or dealers. Rule 19b–4(f)(6) 12 normally does not Paper Comments
become operative prior to 30 days after • Send paper comments in triplicate
In particular, the Exchange believes
the date of the filing. However, pursuant
the proposed rule change will remove to Secretary, Securities and Exchange
to Rule 19b–4(f)(6)(iii),13 the
impediments to and perfect the Commission may designate a shorter Commission, 100 F Street NE,
mechanism of a free and open market time if such action is consistent with the Washington, DC 20549–1090.
and a national market system, because protection of investors and the public All submissions should refer to File No.
deleting obsolete rules will more clearly interest. The Exchange has asked the SR–CboeEDGX–2018–039. This file
identify for market participants Commission to waive the 30-day number should be included on the
currently applicable rules.8 The operative delay so that the proposal may
Exchange believes the proposed rule subject line if email is used. To help the
become operative immediately upon Commission process and review your
change will eliminate confusion filing. The Commission notes that the
regarding which rules apply to current comments more efficiently, please use
Exchange’s proposal would delete only one method. The Commission will
trading, which ultimately protects obsolete rule text and conform the
investors and the public interest. post all comments on the Commission’s
Exchange’s rules to the rules of other
Additionally, two other options internet website (http://www.sec.gov/
exchanges.14 Accordingly, the
exchanges recently deleted the same Commission believes that the proposal rules/sro.shtml). Copies of the
provision.9 raises no new or novel regulatory issues submission, all subsequent
and waiver of the 30-day operative amendments, all written statements
B. Self-Regulatory Organization’s delay is consistent with the protection with respect to the proposed rule
Statement on Burden on Competition of investors and the public interest. The change that are filed with the
Commission therefore waives the 30-day Commission, and all written
The Exchange does not believe that
the proposed rule change will impose operative delay and designates the communications relating to the
any burden on competition that is not proposed rule change to be operative proposed rule change between the
necessary or appropriate in furtherance upon filing.15 Commission and any person, other than
of the purposes of the Act. The At any time within 60 days of the those that may be withheld from the
proposed rule change deletes an filing of the proposed rule change, the public in accordance with the
obsolete operation rule, which no longer Commission summarily may provisions of 5 U.S.C. 552, will be
applies, and thus will have no impact temporarily suspend such rule change if available for website viewing and
on trading. Therefore, the proposed rule it appears to the Commission that such printing in the Commission’s Public
action is necessary or appropriate in the Reference Room, 100 F Street NE,
change has no impact on competition.
public interest, for the protection of Washington, DC 20549, on official
The proposed rule change eliminates
investors, or otherwise in furtherance of business days between the hours of 10
confusion with respect to rules
the purposes of the Act. a.m. and 3 p.m. Copies of the filing will
applicable to current trading on the
Exchange. Additionally, two other IV. Solicitation of Comments also be available for inspection and
options exchanges recently deleted the Interested persons are invited to copying at the principal office of the
same provision. submit written data, views and Exchange. All comments received will
arguments concerning the foregoing, be posted without change. Persons
C. Self-Regulatory Organization’s
including whether the proposal is submitting comments are cautioned that
Statement on Comments on the
consistent with the Act. Comments may we do not redact or edit personal
Proposed Rule Change Received From
be submitted by any of the following identifying information from comment
Members, Participants or Others
methods: submissions. You should submit only
The Exchange neither solicited nor information that you wish to make
Electronic Comments
received comments on the proposed available publicly. All submissions
rule change. • Use the Commission’s internet should refer to File No. SR–CboeEDGX–
comment form (http://www.sec.gov/ 2018–039 and should be submitted on
III. Date of Effectiveness of the rules/sro.shtml); or or before September 21, 2018.
Proposed Rule Change and Timing for • Send an email to rule-comments@
Commission Action sec.gov. Please include File No. SR– For the Commission, by the Division of
Trading and Markets, pursuant to delegated
Because the foregoing proposed rule 10 15 U.S.C. 78s(b)(3)(A). authority.16
change does not: (i) Significantly affect 11 17 CFR 240.19b–4. In addition, Rule 19b– Eduardo A. Aleman,
the protection of investors or the public 4(f)(6)(iii) requires a self-regulatory organization to
Assistant Secretary.
interest; (ii) impose any significant give the Commission written notice of its intent to
file the proposed rule change, along with a brief [FR Doc. 2018–18895 Filed 8–30–18; 8:45 am]
burden on competition; and (iii) become description and text of the proposed rule change, BILLING CODE 8011–01–P
operative for 30 days from the date on at least five business days prior to the date of filing
which it was filed, or such shorter time of the proposed rule change, or such shorter time
as the Commission may designate, it has as designated by the Commission. The Exchange
has satisfied this requirement.
daltland on DSKBBV9HB2PROD with NOTICES

become effective pursuant to Section 12 17 CFR 240.19b–4(f)(6).
13 17 CFR 240.19b–4(f)(6)(iii).
7 Id. 14 See supra note 9.
8 SeeRule 19.6(a)–(c) and 29.11(c). 15 For purposes only of waiving the 30-day
9 SeeSecurities Exchange Act Release Nos. 83909 operative delay, the Commission has also
(August 22, 2018) (SR–CBOE–2018–061); and 83837 considered the proposed rule’s impact on
(August 14, 2018), 83 FR 42183 (August 20, 2018) efficiency, competition, and capital formation. See
(SR–NYSEArca–2018–59). 15 U.S.C. 78c(f). 16 17 CFR 200.30–3(a)(12).

VerDate Sep<11>2014 18:42 Aug 30, 2018 Jkt 244001 PO 00000 Frm 00124 Fmt 4703 Sfmt 9990 E:\FR\FM\31AUN1.SGM 31AUN1
Document Created: 2018-08-31 00:52:55
Document Modified: 2018-08-31 00:52:55
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 44684