[Federal Register Volume 77, Number 185 (Monday, September 24, 2012)]
[Notices]
[Pages 58897-58899]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-23439]


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SECURITIES AND EXCHANGE COMMISSION


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing of a Proposed Rule Change To Amend Rules 
Regarding Requests for Data Related to Exchange Reviews

September 18, 2012.
    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 September 4, 2012, the Chicago Board Options Exchange, 
Incorporated (the ``Exchange'' or ``CBOE'') filed with the Securities 
and Exchange Commission (the ``Commission'') the proposed rule change 
as described in Items I, II and III below, which Items have been 
prepared by the Exchange. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend its rules regarding the furnishing 
of data requested with respect to any review conducted by the Exchange. 
The text of the proposed rule change is available on the Exchange's Web 
site (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, Proposed Rule Change

1. Purpose
    The Exchange proposes to amend its rules regarding the furnishing 
of data

[[Page 58898]]

requested with respect to any review conducted by the Exchange. The 
Exchange currently requests and receives certain trade data from 
Trading Permit Holders (``TPHs'') and TPH organizations on an ad hoc 
basis, in the course of discharging its regulatory responsibilities as 
a self-regulatory organization.\3\ Currently, TPHs and TPH 
organizations provide such data in a variety of different manners and 
formats, often piecemeal. Because the form of the submitted information 
is highly variable and the manner of submission is not standard, the 
Exchange's Regulatory Division expends considerable resources in re-
organizing and systematizing the information in order to perform proper 
reviews and analyses.
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    \3\ This data, which is provided in a comma-separated values 
format, currently includes, when applicable, separate data fields 
for trade date, order entry time (milliseconds), cancel time 
(milliseconds), execution time (milliseconds), unique ticker symbol, 
side, execution price, event type, unique account identification, 
user ID, order ID, broker location, quantity, locate source for 
short sale, number of shares remaining after a partial execution, 
and the code of the exchange to which an order was routed.
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    As such, the Exchange proposes that, in addition to the existing 
obligation under Exchange rules regarding the production of books and 
records, each TPH or TPH organization shall furnish upon request, in 
the manner and standard electronic format prescribed by the Exchange, 
data concerning orders, transactions, and positions, including related 
hedges and offsets, in relation to a regulatory review conducted by the 
Exchange. This change would allow the Exchange to develop uniform 
procedures and forms for the submission of this order, position and 
trade data (the ``Trade Data''). The existence of a standard format for 
the submission of Trade Data would allow the TPHs to better prepare for 
regulatory responses and would allow the Exchange regulatory staff to 
review and analyze Trade Data in a vastly more efficient and organized 
manner which in turn will expedite such review and analysis. The 
Exchange proposes to publish by circular the layout of Trade Data that 
may be included in any particular request such that the TPHs can 
understand the specific information to be submitted in response to each 
request. For example, a particular request may require submission of 
the entire data layout or may be limited to only certain components of 
the layout.
    The Exchange will not enforce compliance with this proposed rule 
change until the Exchange has announced an implementation plan. The 
Exchange expects to announce such implementation plan via a Regulatory 
Circular during the fourth calendar quarter of 2012. The implementation 
plan will include a subsequent compliance date. The intervening period 
between the announcement of the implementation plan and the compliance 
date will allow TPHs time to prepare to comply.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Act \4\ and the rules and regulations thereunder 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 promote just and equitable principles of 
trade, to prevent fraudulent and manipulative acts, to remove 
impediments to and to perfect the mechanism for a free and open market 
and a national market system, and, in general, to protect investors and 
the public interest. The existence of a uniform and standard format for 
the submission of Trade Data and other such information requested with 
respect to any review will remove impediments to and perfect the 
mechanism for a free and open market and a national market system, and 
in general, protect investors and the public interest by removing 
confusion regarding the submission of such information, and by making 
the review of such information a more efficient and effective process.
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    \4\ 15 U.S.C. 78s(b)(1).
    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    CBOE 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.

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

    Within 45 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (A) By order approve or disapprove such proposed rule change, or
    (B) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-CBOE-2012-087 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-CBOE-2012-087. 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 Web site (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 Web site 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 such filing also will be available for 
inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only

[[Page 58899]]

information that you wish to make available publicly. All submissions 
should refer to File Number SR-CBOE-2012-087 and should be submitted on 
or before October 15, 2012.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-23439 Filed 9-21-12; 8:45 am]
BILLING CODE 8011-01-P