83 FR 58307 - Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating To Amend the Volume Incentive Program
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 223 (November 19, 2018)
Federal Register Volume 83, Issue 223 (November 19, 2018)
| Page Range | 58307-58309 | |
| FR Document | 2018-25099 |
[Federal Register Volume 83, Number 223 (Monday, November 19, 2018)] [Notices] [Pages 58307-58309] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-25099] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-84577; File No. SR-CBOE-2018-068] Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating To Amend the Volume Incentive Program November 13, 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 November 1, 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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- [[Page 58308]] I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes to amend the Volume Incentive Program. 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 Exchange proposes to amend the Volume Incentive Program (``VIP'').\3\ By way of background, under the Volume Incentive Program (``VIP''), the Exchange credits each Trading Permit Holder (``TPH'') the per contract amount set forth in the VIP table for Public Customer orders (``C'' origin code) transmitted by that TPH (with certain exceptions) which is executed electronically on the Exchange, provided the TPH meets certain volume thresholds in a month.\4\ VIP offers both rates for Complex and Simple orders. VIP provides however, that a TPH will only receive the Complex credit rates for both its Complex AIM and Non-AIM volume if at least 40% of that TPH's qualifying VIP volume (in both AIM and Non-AIM) in the previous month was comprised of Simple volume. If the TPH's previous month's volume does not meet the 40% Simple volume threshold, then the TPH's Customer (C) Complex volume will receive credits at the Simple rate only (i.e., all volume, both Simple and Complex, will receive credits at the applicable Simple rate). The Exchange proposes to reduce the 40% threshold to 38%. The purpose of the proposed change is to make it slightly easier for TPHs to obtain the Complex credits. The Exchange believes the proposed change will still encourage TPHs to continue to send both Simple and Complex volume to the Exchange. --------------------------------------------------------------------------- \3\ The proposed VIP amendment will be effective November 1, 2018 (i.e., November discounts will be based on October 2018 volume using the proposed threshold change). \4\ See Cboe Options Fees Schedule, Volume Incentive Program. --------------------------------------------------------------------------- 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 Section 6(b)(4) of the Act,\7\ which requires that Exchange rules provide for the equitable allocation of reasonable dues, fees, and other charges among its Trading Permit Holders and other persons using its facilities. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b). \6\ 15 U.S.C. 78f(b)(5). \7\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- The Exchange believes the proposed amendment to VIP is reasonable because it makes it slightly easier for TPHs to meet the qualifying criteria to receive the Complex credits and notes that no credit amounts are changing. The Exchange notes that VIP will continue to provide an incremental incentive for TPHs to strive for the highest tier level, which provides increasingly higher credits, for both Complex and Simple volume. The Exchange believes the proposed change is equitable and not unfairly discriminatory because the proposed applies to all TPHs uniformly. 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. In particular, the Exchange believes the proposed change does not impose a burden on intramarket competition because it applies uniformly to all TPHs and continues to incentivize the sending of more simple and complex orders to the Exchange, which provides greater liquidity and trading opportunities. The Exchange believes that the proposed rule change will not cause an unnecessary burden on intermarket competition because the proposed rule change only affects trading on the Exchange. To the extent that the proposed changes make the Exchange 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 \8\ and paragraph (f) of Rule 19b-4 \9\ 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 will institute proceedings to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A). \9\ 17 CFR 240.19b-4(f). --------------------------------------------------------------------------- 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 [[Page 58309]] Send an email to [email protected]. Please include File Number SR-CBOE-2018-068 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-2018-068. 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-2018-068 and should be submitted on or before December 10, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\ --------------------------------------------------------------------------- \10\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-25099 Filed 11-16-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 223 / Monday, November 19, 2018 / Notices 58307
public regarding the Exchange’s Rules. the Commission to waive the 30-day change that are filed with the
It is in the public interest for rules to be operative delay so that the Exchange Commission, and all written
accurate and concise so as to eliminate may relocate these rules immediately so communications relating to the
the potential for confusion. as to improve the organization of its proposed rule change between the
rulebook and to avoid confusion for Commission and any person, other than
B. Self-Regulatory Organization’s market participants reading the rules of those that may be withheld from the
Statement on Burden on Competition the Exchange’s affiliate, MIAX PEARL. public in accordance with the
MIAX Options does not believe that The Commission believes the waiver of provisions of 5 U.S.C. 552, will be
the proposed rule change will impose the operative delay is consistent with available for website viewing and
any burden on competition that is not the protection of investors and the printing in the Commission’s Public
necessary or appropriate in furtherance public interest. Accordingly, the Reference Room, 100 F Street NE,
of the purposes of the Act. The Commission hereby waives the Washington, DC 20549, on official
proposed rule change will have no operative delay and designates the business days between the hours of
impact on competition as it is not proposed rule change operative upon 10:00 a.m. and 3:00 p.m. Copies of the
designed to address any competitive filing.12 filing also will be available for
issues but rather is designed to add At any time within 60 days of the inspection and copying at the principal
additional clarity to existing rules and filing of the proposed rule change, the office of the Exchange. All comments
to make a non-substantive change by Commission summarily may received will be posted without change.
relocating the rules to a different temporarily suspend such rule change if Persons submitting comments are
chapter in the Exchange’s rulebook. it appears to the Commission that such cautioned that we do not redact or edit
The Exchange does not believe that action is necessary or appropriate in the personal identifying information from
the proposed rule change will impose public interest, for the protection of comment submissions. You should
any burden on intermarket competition investors, or otherwise in furtherance of submit only information that you wish
as the Rules apply equally to all the purposes of the Act. If the to make available publicly. All
Exchange Members. Commission takes such action, the submissions should refer to File
Commission shall institute proceedings Number SR–MIAX–2018–32 and should
C. Self-Regulatory Organization’s to determine whether the proposed rule
Statement on Comments on the be submitted on or before December 10,
should be approved or disapproved. 2018.
Proposed Rule Change Received From
Members, Participants, or Others IV. Solicitation of Comments For the Commission, by the Division of
Interested persons are invited to Trading and Markets, pursuant to delegated
Written comments were neither
submit written data, views, and authority.13
solicited nor received.
arguments concerning the foregoing, Eduardo A. Aleman,
III. Date of Effectiveness of the including whether the proposed rule Assistant Secretary.
Proposed Rule Change and Timing for change is consistent with the Act. [FR Doc. 2018–25096 Filed 11–16–18; 8:45 am]
Commission Action Comments may be submitted by any of BILLING CODE 8011–01–P
Because the proposed rule change the following methods:
does not (i) significantly affect the Electronic Comments
protection of investors or the public SECURITIES AND EXCHANGE
interest; (ii) impose any significant • Use the Commission’s internet COMMISSION
burden on competition; and (iii) become comment form (http://www.sec.gov/
rules/sro.shtml); or [Release No. 34–84577; File No. SR–CBOE–
operative for 30 days from the date on
which it was filed, or such shorter time • Send an email to rule-comments@ 2018–068]
as the Commission may designate, it has sec.gov. Please include File Number SR–
Self-Regulatory Organizations; Cboe
become effective pursuant to Section MIAX–2018–32 on the subject line.
Exchange, Inc.; Notice of Filing and
19(b)(3)(A) of the Act 8 and Rule 19b– Paper Comments Immediate Effectiveness of a Proposed
4(f)(6) thereunder.9 • Send paper comments in triplicate Rule Change Relating To Amend the
A proposed rule change filed Volume Incentive Program
to Secretary, Securities and Exchange
pursuant to Rule 19b–4(f)(6) under the
Commission, 100 F Street NE, November 13, 2018.
Act 10 normally does not become
Washington, DC 20549–1090. Pursuant to Section 19(b)(1) of the
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 11 All submissions should refer to File Securities Exchange Act of 1934 (the
permits the Commission to designate a Number SR–MIAX–2018–32. This file ‘‘Act’’),1 and Rule 19b–4 thereunder,2
shorter time if such action is consistent number should be included on the notice is hereby given that on November
with the protection of investors and the subject line if email is used. To help the 1, 2018, Cboe Exchange, Inc. (the
public interest. The Exchange has asked Commission process and review your ‘‘Exchange’’ or ‘‘Cboe Options’’) filed
comments more efficiently, please use with the Securities and Exchange
associated with a Trading Permit. Members are only one method. The Commission will Commission (the ‘‘Commission’’) the
deemed ‘‘members’’ under the Exchange Act. See post all comments on the Commission’s proposed rule change as described in
Exchange Rule 100. internet website (http://www.sec.gov/ Items I, II, and III below, which Items
8 15 U.S.C. 78s(b)(3)(A).
rules/sro.shtml). Copies of the have been prepared by the Exchange.
9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
submission, all subsequent
khammond on DSK30JT082PROD with NOTICES
4(f)(6) requires a self-regulatory organization to give The Commission is publishing this
the Commission written notice of its intent to file amendments, all written statements notice to solicit comments on the
the proposed rule change at least five business days with respect to the proposed rule proposed rule change from interested
prior to the date of filing of the proposed rule persons.
change, or such shorter time as designated by the 12 For purposes only of waiving the 30-day
Commission. The Exchange has satisfied this operative delay, the Commission has also
requirement. considered the proposed rule’s impact on
13 17 CFR 200.30–3(a)(12).
10 17 CFR 240.19b–4(f)(6). 1 15 U.S.C. 78s(b)(1).
efficiency, competition, and capital formation. See
11 17 CFR 240.19b–4(f)(6)(iii). 15 U.S.C. 78c(f). 2 17 CFR 240.19b–4.
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![Federal Register / Vol. 83, No. 223 / Monday, November 19, 2018 / Notices 58309
• Send an email to rule-comments@ SECURITIES AND EXCHANGE received no comment letters on the
sec.gov. Please include File Number SR– COMMISSION proposed rule change. The Commission
CBOE–2018–068 on the subject line. is publishing notice of the filing of
[Release No. 34–84575; File No. SR–
NASDAQ–2018–070]
Amendment Nos. 1, 2, and 3 to solicit
Paper Comments comment from interested persons and is
• Send paper comments in triplicate Self-Regulatory Organizations; The approving the proposed rule change, as
to Secretary, Securities and Exchange Nasdaq Stock Market LLC; Notice of modified by Amendment Nos. 1, 2, and
Filing of Amendment Nos. 1, 2, and 3 3 on an accelerated basis.
Commission, 100 F Street NE,
Washington, DC 20549–1090. and Order Granting Accelerated II. Description of the Proposal, as
Approval of a Proposed Rule Change, Modified by Amendment Nos. 1, 2,
All submissions should refer to File as Modified by Amendment Nos. 1, 2, and 3
Number SR–CBOE–2018–068. This file and 3, to List and Trade Corporate
number should be included on the Non-Convertible Bonds on Nasdaq The Exchange proposes to amend its
subject line if email is used. To help the rules to permit the initial and continued
November 13, 2018. listing of non-convertible corporate debt
Commission process and review your
comments more efficiently, please use I. Introduction securities (‘‘bonds’’ or ‘‘non-convertible
bonds’’) on Nasdaq and to establish fees
only one method. The Commission will On August 27, 2018, The Nasdaq for listing those bonds.9 The Exchange
post all comments on the Commission’s Stock Market LLC (‘‘Nasdaq’’ or also proposes to adopt rules to trade
internet website (http://www.sec.gov/ ‘‘Exchange’’) filed with the Securities such listed non-convertible bonds.
rules/sro.shtml). Copies of the and Exchange Commission
submission, all subsequent (‘‘Commission’’), pursuant to Section A. Listing Rules
amendments, all written statements 19(b)(1) of the Securities Exchange Act For the initial listing of a non-
with respect to the proposed rule of 1934 (‘‘Act’’),1 and Rule 19b–4 convertible bond, the Exchange
change that are filed with the thereunder,2 a proposed rule change to proposes to require that the following
Commission, and all written list and trade corporate non-convertible conditions be satisfied: (1) The principal
communications relating to the bonds on the Exchange. The proposed amount outstanding or market value
proposed rule change between the rule change was published for comment must be at least $5 million; 10 and (2) the
Commission and any person, other than in the Federal Register on September 6, issuer of the non-convertible bond must
those that may be withheld from the 2018.3 On October 12, 2018, the have one class of equity security that is
public in accordance with the Exchange filed Amendment No. 1 to the listed on the Exchange, the New York
proposed rule change.4 On October 16, Stock Exchange LLC (‘‘NYSE’’), or NYSE
provisions of 5 U.S.C. 552, will be
2018, pursuant to Section 19(b)(2) of the American LLC (‘‘NYSE American’’).11
available for website viewing and
Act,5 the Commission designated a The Exchange proposes the following
printing in the Commission’s Public longer period within which to approve
Reference Room, 100 F Street NE, requirements for the continued listing of
the proposed rule change, disapprove a non-convertible bond: (1) The market
Washington, DC 20549 on official the proposed rule change, or institute value or principal amount of non-
business days between the hours of proceedings to determine whether to convertible bonds outstanding is at least
10:00 a.m. and 3:00 p.m. Copies of the disapprove the proposed rule change.6 $400,000; 12 and (2) the issuer must be
filing also will be available for On November 7, 2018, the Exchange able to meet its obligations on the listed
inspection and copying at the principal filed Amendment No. 2 to the proposed non-convertible bonds.13
office of the Exchange. All comments rule change.7 On November 8, 2018, the The Exchange proposes to amend its
received will be posted without change. Exchange filed Amendment No. 3 to the current Rule 5810(c)(3) to provide that
Persons submitting comments are proposed rule change.8 The Commission the failure of an issuer of a non-
cautioned that we do not redact or edit convertible bond to meet the $400,000
1 15 U.S.C. 78s(b)(1).
personal identifying information from public float requirement stipulated
2 17 CFR 240.19b–4.
comment submissions. You should 3 See Securities Exchange Act Release No. 84001
above for a period of 30 consecutive
submit only information that you wish (August 30, 2018), 83 FR 45289 (‘‘Notice’’). business days will constitute a
to make available publicly. All 4 In Amendment No. 1, the Exchange made deficiency. In such an event, the
submissions should refer to File clarifying and technical revisions to the proposal, Exchange’s Listings Qualifications
Number SR–CBOE–2018–068 and including to the proposed rule text. The Department will promptly notify the
amendment is available at: https://www.sec.gov/
should be submitted on or before comments/sr-nasdaq-2018-070/srnasdaq2018070-
deficient issuer, and the issuer will have
December 10, 2018. 4514560-176013.pdf. a period of 180 calendar days from such
5 15 U.S.C. 78s(b)(2). notification to regain compliance.
For the Commission, by the Division of 6 See Securities Exchange Act Release No. 84439,
Compliance will be deemed to be
Trading and Markets, pursuant to delegated 83 FR 53339 (October 22, 2018). The Commission regained by meeting the $400,000 public
authority.10 designated December 5, 2018, as the date by which
Eduardo A. Aleman, the Commission shall approve or disapprove, or
9 Nasdaq rules currently provide for the initial
institute proceedings to determine whether to
Assistant Secretary. disapprove, the proposed rule change. and continued listing of convertible bonds. See
7 In Amendment No. 2, the Exchange made Nasdaq Rule 5515 and 5560.
[FR Doc. 2018–25099 Filed 11–16–18; 8:45 am] 10 See proposed Rule 5702(a)(1).
additional clarifying and technical revisions to the
BILLING CODE 8011–01–P proposal, including to the proposed rule text. The 11 See proposed Rule 5702(a)(2). The Exchange
khammond on DSK30JT082PROD with NOTICES
amendment is available at: https://www.sec.gov/ anticipates that it will not be ready, prior to the
comments/sr-nasdaq-2018-070/srnasdaq2018070- second quarter of 2019, to list non-convertible
4629939-176409.pdf. bonds of issuers whose equity securities are listed
8 In Amendment No. 3, the Exchange made two on NYSE or NYSE American. The Exchange states
clarifying and technical revisions to the proposal, that it will post a notification via a trader alert at
including to the proposed rule text. The least seven days prior to accepting applications
amendment is available at: https://www.sec.gov/ from issuers to list such non-convertible bonds.
12 See proposed Rule 5702(b)(1).
comments/sr-nasdaq-2018-070/srnasdaq2018070-
10 17 CFR 200.30–3(a)(12). 4630086-176412.pdf. 13 See proposed Rule 5702(b)(2).
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Document Created: 2018-11-17 02:46:51
Document Modified: 2018-11-17 02:46:51
| 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 58307 |
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