[Federal Register Volume 79, Number 67 (Tuesday, April 8, 2014)]
[Notices]
[Pages 19405-19407]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-07766]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71848; File No. SR-CBOE-2014-030]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change Relating to Rule 5.5
April 2, 2014.
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 March 28, 2014, 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 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 proposes to replace the reference to ``GOOG'' with
``GOOGL'' in Interpretation and Policy .22 to Rule 5.5. The text of the
proposed rule change is provided below.
(additions are italicized; deletions are [bracketed])
* * * * *] [sic]
Chicago Board Options Exchange, Incorporated Rules
* * * * *
Rule 5.5. Series of Option Contracts Open for Trading.
No change.
...Interpretations and Policies:
.01-.21 No change.
.22 Mini Options Contracts
(a) After an option class on a stock, exchange-traded fund (ETF)
share (referred to as ``Unit'' in Rule 5.3.06), Trust Issued Receipt
(TIR), exchange-traded note (ETN), and other Index-Linked Security with
a 100 share deliverable has been approved for listing and trading on
the Exchange, series of option contracts with a 10 share deliverable on
that stock, ETF share, TIR, ETN and other Index-Linked Security may be
listed for all expirations opened for trading on the Exchange. Mini-
option contracts may currently be listed on SPDR S & P 500 (SPY),
Apple, Inc. (AAPL), SPDR Gold Trust (GLD), Google, Inc. (GOOGL) and
Amazon.com Inc. (AMZN).
(b)-(d) No change.
* * * * *
The text of the proposed rule change is also 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, the Proposed Rule Change
1. Purpose
The Exchange is proposing to make a change to Interpretation and
Policy .22
[[Page 19406]]
of Exchange Rule 5.5 to enable the continued trading of mini options on
Google's class A shares. The Exchange is proposing to make this change
because, on April 2, 2014, Google will issue a new class of shares
(class C) to its shareholders in lieu of a cash dividend payment.
Additionally, this new class C of shares will be given the current
Google ticker, ``GOOG.'' As a result, a new ticker, ``GOOGL,'' will be
issued to the class A shares. The Exchange is proposing to change the
Google ticker referenced in Exchange Rule 5.5.22 from ``GOOG'' to
``GOOGL.''
This change to Interpretation and Policy .22 of Rule 5.5 shall
become effective on April 3, 2014 which is the day after Google
officially changes their ticker. The purpose of this change is to
ensure that Rule 5.5 properly reflects the intention and practice of
the Exchange to trade mini options on only an exhaustive list of
underlying securities outlined in Exchange Rule 5.5.22. This change is
meant to continue the inclusion of class A shares of Google in the
current list of underlying securities that mini options can be traded
on, while making it clear that class C shares of Google are not part of
that list as that class of options has not been approved for mini
option trading. As a result, the proposed change will also help avoid
confusion.
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.\3\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \4\ 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) \5\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(5).
\5\ Id.
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In particular, the proposed rule change to change the Google class
A ticker to its new designation is consistent with the Act because the
proposed change is merely updating the corresponding ticker to allow
for continued mini option trading on Google's class A shares. The
proposed change will allow for continued benefit to investors by
providing them with additional investment alternatives.
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. The proposed change does not
impose any burden on intramarket competition because it applies to all
Trading Permit Holders. There is no burden on intermarket competition
as the proposed change is merely attempting to update the new ticker
for Google class A for mini-options. As a result, there will be no
substantive changes to the Exchange's operations or its rules.
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 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 if consistent with the protection of investors
and the public interest, the proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \6\ and Rule 19b-
4(f)(6)(iii) thereunder.\7\
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\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 17 CFR 240.19b-4(f)(6)(iii). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the 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.
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A proposed rule change filed under Rule 19b-4(f)(6) \8\ normally
does not become operative for 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6)(iii) \9\ 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.
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\8\ 17 CFR 240.19b-4(f)(6).
\9\ 17 CFR 240.19b-4(f)(6)(iii).
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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 believes that waiving the 30-day operative delay
is consistent with the protection of investors and the public interest,
as it will allow the Exchange to continue to list mini options on the
Google Class A shares following the issuance of a new class of Google
shares (class C) on April 2, 2014. For this reason, the Commission
designates the proposed rule change to be operative upon filing.\10\
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\10\ 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 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 rule-comments@ sec.gov. Please include
File Number SR-CBOE-2014-030 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-2014-030. 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
[[Page 19407]]
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 10:00 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; the Commission does not edit
personal identifying information from submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File Number SR-CBOE-2014-030 and should be
submitted on or before April 29, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-07766 Filed 4-7-14; 8:45 am]
BILLING CODE 8011-01-P