83 FR 63952 - Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating To Adopt a Shell Structure for the Cboe Options Rulebook in Connection With the Migration of the Exchange to Bats Technology
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 238 (December 12, 2018)
Federal Register Volume 83, Issue 238 (December 12, 2018)
| Page Range | 63952-63953 | |
| FR Document | 2018-26835 |
[Federal Register Volume 83, Number 238 (Wednesday, December 12, 2018)] [Notices] [Pages 63952-63953] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-26835] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-84739; File No. SR-CBOE-2018-074] Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating To Adopt a Shell Structure for the Cboe Options Rulebook in Connection With the Migration of the Exchange to Bats Technology December 6, 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 26, 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 Exchange filed the proposal as a ``non-controversial'' proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) thereunder.\4\ 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. \3\ 15 U.S.C. 78s(b)(3)(A)(iii). \4\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- 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 adopt a shell structure for the Cboe Options rulebook (``Rulebook'') in connection with the migration of the Exchange to Bats technology. 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 In 2016, the Exchange's parent company, Cboe Global Markets, Inc. (formerly named CBOE Holdings, Inc.) (``Cboe Global''), which is also the parent company of Cboe C2 Exchange, Inc. (``C2''), acquired Cboe EDGA Exchange, Inc. (``EDGA''), Cboe EDGX Exchange, Inc. (``EDGX'' or ``EDGX Options''), Cboe BZX Exchange, Inc. (``BZX'' or ``BZX Options''), and Cboe BYX Exchange, Inc. (``BYX'' and, together with Cboe Options, C2, EDGX, EDGA, and BZX, the ``Cboe Affiliated Exchanges''). The Cboe Affiliated Exchanges are working to align certain system functionality, retaining only intended differences between the Cboe Affiliated Exchanges, in the context of a technology migration. Cboe Options intends to migrate its technology onto the same trading platform as the other Cboe Affiliated Exchanges, which the Exchange expects to complete on October 7, 2019. Cboe Options believes offering similar functionality to the extent practicable will reduce potential confusion for market participants. In connection with this technology migration, the Exchange proposes to add a shell structure that would reside alongside its current Rulebook. The proposed shell outlines the various chapters, and sections within certain chapters, of the future Rulebook, as well as contains new chapter numbering. In subsequent rule changes, Cboe Options will amend its Rules to reflect proposed changes to its system in connection with the system migration. Cboe Options will also submit subsequent rule changes to move rule text that will not change as part of the technology migration from the current Rulebook to the future Rulebook. 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. The Exchange believes the proposed rule change will remove impediments to [[Page 63953]] a free and open market, as it will start the process of updating and reorganizing the Exchange's Rulebook in connection with the migration of its system to Bats technology. This will ensure Trading Permit Holders can easily identify the Rules that will be in place upon implementation of the technology migration, which benefits investors. The proposed rule change makes no substantive changes to the current Rulebook. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b). \6\ 15 U.S.C. 78f(b)(5). \7\ Id. --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition Cboe Options does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change makes nonsubstantive changes and has no impact on trading on the Exchange, as they are intended to start the process of updating and reorganizing the Exchange's Rulebook in connection with the migration of its system to Bats technology. 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)(iii) of the Act \8\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\9\ 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)(6). In addition, Rule 19b-4(f)(6)(iii) requires the Exchange to give the Commission written notice of the Exchange's 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. --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-CBOE-2018-074 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-2018-074. 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-2018-074 and should be submitted on or before January 2, 2019. --------------------------------------------------------------------------- \10\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\ Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-26835 Filed 12-11-18; 8:45 am] BILLING CODE 8011-01-P
![63952 Federal Register / Vol. 83, No. 238 / Wednesday, December 12, 2018 / Notices
post all comments on the Commission’s with the Securities and Exchange EDGA, and BZX, the ‘‘Cboe Affiliated
internet website (http://www.sec.gov/ Commission (the ‘‘Commission’’) the Exchanges’’). The Cboe Affiliated
rules/sro.shtml). Copies of the proposed rule change as described in Exchanges are working to align certain
submission, all subsequent Items I, II, and III below, which Items system functionality, retaining only
amendments, all written statements have been prepared by the Exchange. intended differences between the Cboe
with respect to the proposed rule The Exchange filed the proposal as a Affiliated Exchanges, in the context of a
change that are filed with the ‘‘non-controversial’’ proposed rule technology migration. Cboe Options
Commission, and all written change pursuant to Section intends to migrate its technology onto
communications relating to the 19(b)(3)(A)(iii) of the Act 3 and Rule the same trading platform as the other
proposed rule change between the 19b–4(f)(6) thereunder.4 The Cboe Affiliated Exchanges, which the
Commission and any person, other than Commission is publishing this notice to Exchange expects to complete on
those that may be withheld from the solicit comments on the proposed rule October 7, 2019. Cboe Options believes
public in accordance with the change from interested persons. offering similar functionality to the
provisions of 5 U.S.C. 552, will be extent practicable will reduce potential
I. Self-Regulatory Organization’s
available for website viewing and confusion for market participants.
Statement of the Terms of Substance of In connection with this technology
printing in the Commission’s Public
the Proposed Rule Change migration, the Exchange proposes to add
Reference Room, 100 F Street NE,
Washington, DC 20549 on official Cboe Exchange, Inc. (the ‘‘Exchange’’ a shell structure that would reside
business days between the hours of or ‘‘Cboe Options’’) proposes to adopt a alongside its current Rulebook. The
10:00 a.m. and 3:00 p.m. Copies of the shell structure for the Cboe Options proposed shell outlines the various
filing also will be available for rulebook (‘‘Rulebook’’) in connection chapters, and sections within certain
inspection and copying at the principal with the migration of the Exchange to chapters, of the future Rulebook, as well
office of DTC and on DTCC’s website Bats technology. as contains new chapter numbering. In
(http://dtcc.com/legal/sec-rule- The text of the proposed rule change subsequent rule changes, Cboe Options
filings.aspx). All comments received is also available on the Exchange’s will amend its Rules to reflect proposed
will be posted without change. Persons website (http://www.cboe.com/ changes to its system in connection with
submitting comments are cautioned that AboutCBOE/CBOELegal the system migration. Cboe Options will
we do not redact or edit personal RegulatoryHome.aspx), at the also submit subsequent rule changes to
identifying information from comment Exchange’s Office of the Secretary, and move rule text that will not change as
submissions. You should submit only at the Commission’s Public Reference part of the technology migration from
information that you wish to make Room. the current Rulebook to the future
available publicly. All submissions II. Self-Regulatory Organization’s Rulebook.
should refer to File Number SR–DTC– Statement of the Purpose of, and 2. Statutory Basis
2018–010 and should be submitted on Statutory Basis for, the Proposed Rule
or before January 2, 2019. The Exchange believes the proposed
Change
rule change is consistent with the
For the Commission, by the Division of In its filing with the Commission, the
Trading and Markets, pursuant to delegated Securities Exchange Act of 1934 (the
Exchange included statements ‘‘Act’’) and the rules and regulations
authority.26
concerning the purpose of and basis for thereunder applicable to the Exchange
Eduardo A. Aleman,
the proposed rule change and discussed and, in particular, the requirements of
Assistant Secretary. any comments it received on the Section 6(b) of the Act.5 Specifically,
[FR Doc. 2018–26913 Filed 12–11–18; 8:45 am] proposed rule change. The text of these the Exchange believes the proposed rule
BILLING CODE 8011–01–P statements may be examined at the change is consistent with the Section
places specified in Item IV below. The 6(b)(5) 6 requirements that the rules of
Exchange has prepared summaries, set an exchange be designed to prevent
SECURITIES AND EXCHANGE forth in Sections A, B, and C below, of
COMMISSION fraudulent and manipulative acts and
the most significant aspects of such practices, to promote just and equitable
[Release No. 34–84739; File No. SR–CBOE– statements. principles of trade, to foster cooperation
2018–074] and coordination with persons engaged
A. Self-Regulatory Organization’s
Statement of the Purpose of, and in regulating, clearing, settling,
Self-Regulatory Organizations; Cboe
Statutory Basis for, the Proposed Rule processing information with respect to,
Exchange, Inc.; Notice of Filing and
Change and facilitating transactions in
Immediate Effectiveness of a Proposed
securities, to remove impediments to
Rule Change Relating To Adopt a Shell 1. Purpose and perfect the mechanism of a free and
Structure for the Cboe Options
In 2016, the Exchange’s parent open market and a national market
Rulebook in Connection With the
company, Cboe Global Markets, Inc. system, and, in general, to protect
Migration of the Exchange to Bats
(formerly named CBOE Holdings, Inc.) investors and the public interest.
Technology
(‘‘Cboe Global’’), which is also the Additionally, the Exchange believes the
December 6, 2018. parent company of Cboe C2 Exchange, proposed rule change is consistent with
Pursuant to Section 19(b)(1) of the Inc. (‘‘C2’’), acquired Cboe EDGA the Section 6(b)(5) 7 requirement that
Securities Exchange Act of 1934 (the Exchange, Inc. (‘‘EDGA’’), Cboe EDGX the rules of an exchange not be designed
‘‘Act’’),1 and Rule 19b–4 thereunder,2 Exchange, Inc. (‘‘EDGX’’ or ‘‘EDGX to permit unfair discrimination between
amozie on DSK3GDR082PROD with NOTICES1
notice is hereby given that on November Options’’), Cboe BZX Exchange, Inc. customers, issuers, brokers, or dealers.
26, 2018, Cboe Exchange, Inc. (the (‘‘BZX’’ or ‘‘BZX Options’’), and Cboe The Exchange believes the proposed
‘‘Exchange’’ or ‘‘Cboe Options’’) filed BYX Exchange, Inc. (‘‘BYX’’ and, rule change will remove impediments to
together with Cboe Options, C2, EDGX,
26 17 CFR 200.30–3(a)(12). 5 15 U.S.C. 78f(b).
1 15 U.S.C. 78s(b)(1). 3 15 U.S.C. 78s(b)(3)(A)(iii). 6 15 U.S.C. 78f(b)(5).
2 17 CFR 240.19b–4. 4 17 CFR 240.19b–4(f)(6). 7 Id.
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![Federal Register / Vol. 83, No. 238 / Wednesday, December 12, 2018 / Notices 63953
a free and open market, as it will start Commission takes such action, the should be submitted on or before
the process of updating and Commission will institute proceedings January 2,2019.
reorganizing the Exchange’s Rulebook in to determine whether the proposed rule For the Commission, by the Division of
connection with the migration of its change should be approved or Trading and Markets, pursuant to delegated
system to Bats technology. This will disapproved. authority.10
ensure Trading Permit Holders can
easily identify the Rules that will be in IV. Solicitation of Comments Eduardo A. Aleman,
place upon implementation of the Interested persons are invited to Assistant Secretary.
technology migration, which benefits submit written data, views, and [FR Doc. 2018–26835 Filed 12–11–18; 8:45 am]
investors. The proposed rule change arguments concerning the foregoing, BILLING CODE 8011–01–P
makes no substantive changes to the including whether the proposed rule
current Rulebook. change is consistent with the Act.
B. Self-Regulatory Organization’s Comments may be submitted by any of SECURITIES AND EXCHANGE
Statement on Burden on Competition the following methods: COMMISSION
Cboe Options does not believe that Electronic Comments
[Release No. 34–84734; File No. SR–MIAX–
the proposed rule change will impose
any burden on competition that is not • Use the Commission’s internet 2018–37]
necessary or appropriate in furtherance comment form (http://www.sec.gov/
rules/sro.shtml); or Self-Regulatory Organizations; Miami
of the purposes of the Act. The
• Send an email to rule-comments@ International Securities Exchange,
proposed rule change makes
sec.gov. Please include File Number SR– LLC; Notice of Filing and Immediate
nonsubstantive changes and has no
impact on trading on the Exchange, as CBOE–2018–074 on the subject line. Effectiveness of a Proposed Rule
they are intended to start the process of Change To Amend Exchange Rule 510,
Paper Comments Minimum Price Variations and
updating and reorganizing the
Exchange’s Rulebook in connection • Send paper comments in triplicate Minimum Trading Increments, To
with the migration of its system to Bats to Secretary, Securities and Exchange Adopt Interpretations and Policies .03
technology. Commission, 100 F Street NE,
December 6, 2018.
Washington, DC 20549–1090.
C. Self-Regulatory Organization’s Pursuant to the provisions of Section
Statement on Comments on the All submissions should refer to File
19(b)(1) of the Securities Exchange Act
Proposed Rule Change Received From Number SR–CBOE–2018–074. This file
of 1934 (‘‘Act’’),1 and Rule 19b–4
Members, Participants, or Others number should be included on the
subject line if email is used. To help the thereunder,2 notice is hereby given that
The Exchange neither solicited nor on November 28, 2018, Miami
received comments on the proposed Commission process and review your
comments more efficiently, please use International Securities Exchange, LLC
rule change. (‘‘MIAX Options’’ or ‘‘Exchange’’) filed
only one method. The Commission will
III. Date of Effectiveness of the post all comments on the Commission’s with the Securities and Exchange
Proposed Rule Change and Timing for internet website (http://www.sec.gov/ Commission (‘‘Commission’’) a
Commission Action rules/sro.shtml). Copies of the proposed rule change as described in
Because the foregoing proposed rule submission, all subsequent Items I and II below, which Items have
change does not: (i) Significantly affect amendments, all written statements been prepared by the Exchange. The
the protection of investors or the public with respect to the proposed rule Commission is publishing this notice to
interest; (ii) impose any significant change that are filed with the solicit comments on the proposed rule
burden on competition; and (iii) become Commission, and all written change from interested persons.
operative for 30 days from the date on communications relating to the
which it was filed, or such shorter time proposed rule change between the I. Self-Regulatory Organization’s
as the Commission may designate, it has Commission and any person, other than Statement of the Terms of Substance of
become effective pursuant to Section those that may be withheld from the the Proposed Rule Change
19(b)(3)(A)(iii) of the Act 8 and public in accordance with the The Exchange is filing a proposal to
subparagraph (f)(6) of Rule 19b–4 provisions of 5 U.S.C. 552, will be relocate Rule 404, Interpretations and
thereunder.9 At any time within 60 days available for website viewing and
Policies .11 (‘‘SPIKES Index Options’’)
of the filing of the proposed rule change, printing in the Commission’s Public
the Commission summarily may to Rule 510, Minimum Price Variations
Reference Room, 100 F Street, NE,
temporarily suspend such rule change if Washington, DC 20549 on official and Minimum Trading Increments, new
it appears to the Commission that such business days between the hours of Interpretations and Policies .03, and to
action is necessary or appropriate in the 10:00 a.m. and 3:00 p.m. Copies of the make a non-substantive conforming
public interest, for the protection of filing also will be available for change to a cross-reference in the rule.
investors, or otherwise in furtherance of inspection and copying at the principal The text of the proposed rule change
the purposes of the Act. If the office of the Exchange. All comments is available on the Exchange’s website at
received will be posted without change. http://www.miaxoptions.com/rule-
8 15 U.S.C. 78s(b)(3)(A). Persons submitting comments are filings/ at MIAX Options’ principal
amozie on DSK3GDR082PROD with NOTICES1
9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– cautioned that we do not redact or edit office, and at the Commission’s Public
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
personal identifying information from Reference Room.
to file the proposed rule change, along with a brief comment submissions. You should
description and text of the proposed rule change, submit only information that you wish
at least five business days prior to the date of filing to make available publicly. All 10 17 CFR 200.30–3(a)(12).
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
submissions should refer to File 1 15 U.S.C. 78s(b)(1).
has satisfied this requirement. Number SR–CBOE–2018–074 and 2 17 CFR 240.19b–4.
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Document Created: 2018-12-12 01:40:23
Document Modified: 2018-12-12 01:40:23
| 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 63952 |
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