83 FR 44686 - Self-Regulatory Organizations; Cboe BZX 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)
Federal Register Volume 83, Issue 170 (August 31, 2018)
| Page Range | 44686-44687 | |
| FR Document | 2018-18896 |
[Federal Register Volume 83, Number 170 (Friday, August 31, 2018)] [Notices] [Pages 44686-44687] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-18896] [[Page 44686]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83959; File No. SR-CboeBZX-2018-069] Self-Regulatory Organizations; Cboe BZX 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 27, 2018, Cboe BZX Exchange, Inc. (the ``Exchange'' or ``BZX'') 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 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\ --------------------------------------------------------------------------- \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). --------------------------------------------------------------------------- 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 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. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b). \6\ 15 U.S.C. 78f(b)(5). \7\ Id. --------------------------------------------------------------------------- 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\ --------------------------------------------------------------------------- \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). --------------------------------------------------------------------------- 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.\10\ --------------------------------------------------------------------------- \10\ See id. --------------------------------------------------------------------------- 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 \11\ and Rule 19b- 4(f)(6) thereunder.\12\ --------------------------------------------------------------------------- \11\ 15 U.S.C. 78s(b)(3)(A). \12\ 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. --------------------------------------------------------------------------- [[Page 44687]] A proposed rule change filed under Rule 19b-4(f)(6) \13\ normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b4(f)(6)(iii),\14\ 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.\15\ 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.\16\ --------------------------------------------------------------------------- \13\ 17 CFR 240.19b-4(f)(6). \14\ 17 CFR 240.19b-4(f)(6)(iii). \15\ See supra note 9. \16\ 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. 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 CommentsUse the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File No. SR-CboeBZX-2018-069 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-CboeBZX-2018-069. 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-CboeBZX-2018-069 and should be submitted on or before September 21, 2018. --------------------------------------------------------------------------- \17\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\17\ Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-18896 Filed 8-30-18; 8:45 am] BILLING CODE 8011-01-P
![44686 Federal Register / Vol. 83, No. 170 / Friday, August 31, 2018 / Notices
SECURITIES AND EXCHANGE long-term options contracts were first deleting obsolete rules will more clearly
COMMISSION adopted. This language provides that identify for market participants
when a new equity or index long-term currently applicable rules.8 The
[Release No. 34–83959; File No. SR-
CboeBZX–2018–069]
options contract series, as applicable, is Exchange believes the proposed rule
listed, such series will be opened for change will eliminate confusion
Self-Regulatory Organizations; Cboe trading either when there is buying or regarding which rules apply to current
BZX Exchange, Inc.; Notice of Filing selling interest, or 40 minutes prior to trading, which ultimately protects
and Immediate Effectiveness of a the close, whichever occurs first. No investors and the public interest.
Proposed Rule Change To Delete quotations will be posted for such Additionally, two other options
Obsolete Language Regarding the option series until they are opened for exchanges recently deleted the same
Timing of Listing Long-Term Options trading. The Exchange proposes to provision.9
Series delete this language because when this
language was adopted, long-term B. Self-Regulatory Organization’s
August 27, 2018. options contracts were not opened for Statement on Burden on Competition
Pursuant to Section 19(b)(1) of the trading until late in the trading day The Exchange does not believe that
Securities Exchange Act of 1934 (the unless there was buying or selling the proposed rule change will impose
‘‘Act’’),1 and Rule 19b–4 thereunder,2 interest. Today, however, technological any burden on competition that is not
notice is hereby given that on August improvements 3 allow the Exchange to necessary or appropriate in furtherance
27, 2018, Cboe BZX Exchange, Inc. (the open all long-term options contract
‘‘Exchange’’ or ‘‘BZX’’) filed with the of the purposes of the Act. The
series at the same time as all other series proposed rule change deletes an
Securities and Exchange Commission in an option class.4
(‘‘Commission’’) the proposed rule obsolete operation rule, which no longer
change as described in Items I and II 2. Statutory Basis applies, and thus will have no impact
below, which Items have been prepared The Exchange believes the proposed on trading. Therefore, the proposed rule
by the Exchange. The Commission is rule change is consistent with the change has no impact on competition.
publishing this notice to solicit Securities Exchange Act of 1934 (the The proposed rule change eliminates
comments on the proposed rule change ‘‘Act’’) and the rules and regulations confusion with respect to rules
from interested persons. thereunder applicable to the Exchange applicable to current trading on the
and, in particular, the requirements of Exchange. Additionally, two other
I. Self-Regulatory Organization’s options exchanges recently deleted the
Section 6(b) of the Act.5 Specifically,
Statement of the Terms of Substance of same provision.10
the Exchange believes the proposed rule
the Proposed Rule Change
change is consistent with the Section C. Self-Regulatory Organization’s
The Exchange is proposing to amend 6(b)(5) 6 requirements that the rules of Statement on Comments on the
Rules 19.8 and 29.11. an exchange be designed to prevent Proposed Rule Change Received From
The text of the proposed rule change fraudulent and manipulative acts and Members, Participants or Others
is available at the Exchange’s website at practices, to promote just and equitable
www.markets.cboe.com, at the principal principles of trade, to foster cooperation The Exchange neither solicited nor
office of the Exchange, and at the and coordination with persons engaged received comments on the proposed
Commission’s Public Reference Room. in regulating, clearing, settling, rule change.
II. Self-Regulatory Organization’s processing information with respect to,
III. Date of Effectiveness of the
Statement of the Purpose of, and and facilitating transactions in
securities, to remove impediments to Proposed Rule Change and Timing for
Statutory Basis for, the Proposed Rule Commission Action
Change and perfect the mechanism of a free and
open market and a national market Because the foregoing proposed rule
In its filing with the Commission, the system, and, in general, to protect
Exchange included statements change does not: (i) significantly affect
investors and the public interest. the protection of investors or the public
concerning the purpose of and basis for Additionally, the Exchange believes the
the proposed rule change and discussed interest; (ii) impose any significant
proposed rule change is consistent with burden on competition; and (iii) become
any comments it received on the the Section 6(b)(5) 7 requirement that
proposed rule change. The text of these operative for 30 days from the date on
the rules of an exchange not be designed which it was filed, or such shorter time
statements may be examined at the to permit unfair discrimination between
places specified in Item IV below. The as the Commission may designate, it has
customers, issuers, brokers, or dealers. become effective pursuant to Section
Exchange has prepared summaries, set In particular, the Exchange believes
forth in Sections A, B, and C below, of 19(b)(3)(A) of the Act 11 and Rule 19b–
the proposed rule change will remove
the most significant parts of such 4(f)(6) thereunder.12
impediments to and perfect the
statements. mechanism of a free and open market 8 See Rule 19.6(a)–(c) and 29.11(c).
A. Self-Regulatory Organization’s and a national market system, because 9 See Securities Exchange Act Release Nos. 83909
Statement of the Purpose of, and (August 22, 2018) (SR–CBOE–2018–061); and 83837
3 Historically, market participants needed to (August 14, 2018), 83 FR 42183 (August 20, 2018)
Statutory Basis for, the Proposed Rule manually adjust pricing models when a new long- (SR–NYSEArca–2018–59).
Change term options contract series was added, which was 10 See id.
time-consuming and created pricing risk. Market 11 15 U.S.C. 78s(b)(3)(A).
1. Purpose participants’ systems are able to incorporate series
daltland on DSKBBV9HB2PROD with NOTICES
12 17 CFR 240.19b-4. In addition, Rule 19b–
The purpose of this proposed rule added intraday in an automatic, and thus more 4(f)(6)(iii) requires a self-regulatory organization to
timely, manner. Therefore, any previous operational
change is to amend Rules 19.8 and 29.11 concerns related to the historic manual process
give the Commission written notice of its intent to
to delete now obsolete operational file the proposed rule change, along with a brief
have been alleviated.
description and text of the proposed rule change,
language, which dates back to when 4 See Rule 19.6(a)–(c) and 29.11(c).
at least five business days prior to the date of filing
5 15 U.S.C. 78f(b).
of the proposed rule change, or such shorter time
1 15 U.S.C. 78s(b)(1). 6 15 U.S.C. 78f(b)(5).
as designated by the Commission. The Exchange
2 17 CFR 240.19b–4. 7 Id. has satisfied this requirement.
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![Federal Register / Vol. 83, No. 170 / Friday, August 31, 2018 / Notices 44687
A proposed rule change filed under Commission process and review your disclosure will provide SSA with
Rule 19b–4(f)(6) 13 normally does not comments more efficiently, please use information necessary to verify an
become operative prior to 30 days after only one method. The Commission will individual’s self-certification of his or
the date of the filing. However, pursuant post all comments on the Commission’s her financial status to determine
to Rule 19b4(f)(6)(iii),14 the Commission internet website (http://www.sec.gov/ eligibility for low-income subsidy
may designate a shorter time if such rules/sro.shtml). Copies of the assistance (Extra Help) in the Medicare
action is consistent with the protection submission, all subsequent Part D prescription drug benefit program
of investors and the public interest. The amendments, all written statements established under the Medicare
Exchange has asked the Commission to with respect to the proposed rule Prescription Drug, Improvement, and
waive the 30-day operative delay so that change that are filed with the Modernization Act of 2003.
the proposal may become operative Commission, and all written DATES: The deadline to submit
immediately upon filing. The communications relating to the comments on the proposed matching
Commission notes that the Exchange’s proposed rule change between the program is 30 days from the date of
proposal would delete obsolete rule text Commission and any person, other than publication of this notice in the Federal
and conform the Exchange’s rules to the those that may be withheld from the Register. The matching program will be
rules of other exchanges.15 Accordingly, public in accordance with the effective on October 1, 2018, or once a
the Commission believes that the provisions of 5 U.S.C. 552, will be minimum of 30 days after publication of
proposal raises no new or novel available for website viewing and this notice has elapsed, whichever is
regulatory issues and waiver of the 30- printing in the Commission’s Public later. The matching program will be in
day operative delay is consistent with Reference Room, 100 F Street NE, effect for a period of 18 months.
the protection of investors and the Washington, DC 20549, on official ADDRESSES: Interested parties may
public interest. The Commission business days between the hours of 10 comment on this notice by either
therefore waives the 30-day operative a.m. and 3 p.m. Copies of the filing will telefaxing to (410) 966–0869, writing to
delay and designates the proposed rule also be available for inspection and Mary Ann Zimmerman, Acting
change to be operative upon filing.16 copying at the principal office of the Executive Director, Office of Privacy
At any time within 60 days of the Exchange. All comments received will and Disclosure, Office of the General
filing of the proposed rule change, the be posted without change. Persons Counsel, Social Security
Commission summarily may submitting comments are cautioned that Administration, G–401 WHR, 6401
temporarily suspend such rule change if we do not redact or edit personal Security Boulevard, Baltimore, MD
it appears to the Commission that such identifying information from comment 21235–6401, or emailing
action is necessary or appropriate in the submissions. You should submit only Mary.Ann.Zimmerman@ssa.gov. All
public interest, for the protection of information that you wish to make comments received will be available for
investors, or otherwise in furtherance of available publicly. All submissions public inspection by contacting Ms.
the purposes of the Act. should refer to File No. SR–CboeBZX– Zimmerman at this street address.
IV. Solicitation of Comments 2018–069 and should be submitted on FOR FURTHER INFORMATION CONTACT:
or before September 21, 2018. Interested parties may submit general
Interested persons are invited to
submit written data, views and For the Commission, by the Division of questions about the matching program
arguments concerning the foregoing,
Trading and Markets, pursuant to delegated to Mary Ann Zimmerman, Acting
authority.17 Executive Director, Office of Privacy
including whether the proposal is
consistent with the Act. Comments may
Eduardo A. Aleman, and Disclosure, Office of the General
be submitted by any of the following Assistant Secretary. Counsel, by any of the means shown
methods: [FR Doc. 2018–18896 Filed 8–30–18; 8:45 am] above.
BILLING CODE 8011–01–P SUPPLEMENTARY INFORMATION: None.
Electronic Comments
Mary Ann Zimmerman,
• Use the Commission’s internet
comment form (http://www.sec.gov/ Acting Executive Director, Office of Privacy
SOCIAL SECURITY ADMINISTRATION
and Disclosure, Office of the General Counsel.
rules/sro.shtml); or
• Send an email to rule-comments@ [Docket No. SSA 2018–0003] Participating Agencies: SSA and
sec.gov. Please include File No. SR- Fiscal Service.
Privacy Act of 1974; Matching Program Authority for Conducting the
CboeBZX–2018–069 on the subject line.
AGENCY: Social Security Administration Matching Program: 1860D–14 of the
Paper Comments Social Security Act (Act) (42 U.S.C.
(SSA).
• Send paper comments in triplicate ACTION:Notice of a new matching 1395w–114) requires SSA to verify the
to Secretary, Securities and Exchange program. eligibility of an individual who seeks to
Commission, 100 F Street NE, be considered as an Extra Help eligible
Washington, DC 20549–1090. SUMMARY: In accordance with the individual under the Medicare Part D
All submissions should refer to File No. provisions of the Privacy Act, as prescription drug benefit program and
SR–CboeBZX–2018–069. This file amended, this notice announces a new who self-certifies his or her income,
number should be included on the matching program with the Bureau of resources, and family size.
subject line if email is used. To help the the Fiscal Service, Department of the Purpose(s): This agreement between
Treasury (Fiscal Service). SSA and Fiscal Service sets forth the
daltland on DSKBBV9HB2PROD with NOTICES
13 17 CFR 240.19b–4(f)(6). This agreement between SSA and terms, conditions, and safeguards under
14 17 CFR 240.19b–4(f)(6)(iii). Fiscal Service sets forth the terms, which Fiscal Service will disclose
15 See supra note 9.
conditions, and safeguards under which ownership of Savings Securities data to
16 For purposes only of waiving the 30-day
Fiscal Service will disclose ownership SSA. This disclosure will provide SSA
operative delay, the Commission has also
considered the proposed rule’s impact on of Savings Securities data to SSA. This with information necessary to verify an
efficiency, competition, and capital formation. See individual’s self-certification of his or
15 U.S.C. 78c(f). 17 17 CFR 200.30–3(a)(12). her financial status to determine
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Document Created: 2018-08-31 00:52:54
Document Modified: 2018-08-31 00:52:54
| 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 44686 |
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