[Federal Register Volume 81, Number 30 (Tuesday, February 16, 2016)]
[Notices]
[Pages 7867-7871]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-02986]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77093; File No. SR-CBOE-2016-008]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule To Amend the Fees Schedule

February 9, 2016.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on February 4, 2016, Chicago Board Options Exchange, Incorporated (the 
``Exchange'' or ``CBOE'') filed with the Securities and Exchange 
Commission (``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.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the Fees Schedule. 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, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend its Fees Schedule.\3\
---------------------------------------------------------------------------

    \3\ The Exchange initially filed the proposed fee changes on 
January 4, 2016 (SR-CBOE-2016-001). On January 27, 2016, the 
Exchange withdrew that filing and replaced it with SR-CBOE-2016-006. 
On February 4, 2016, the Exchange withdrew that filing and submitted 
this filing.
---------------------------------------------------------------------------

CBOE Proprietary Products Sliding Scale
    The CBOE Proprietary Products Sliding Scale table provides that 
Clearing Trading Permit Holder Proprietary transaction fees and 
transaction fees for Non-Clearing Trading Permit Holder Affiliates in 
Underlying Symbol List A \4\ are reduced provided a Clearing Trading 
Permit Holder (``Clearing TPH'') (including its Non-Trading Permit 
Holder affiliates) reaches certain average daily volume (``ADV'') 
thresholds in all underlying symbols excluding Underlying Symbol List A 
and mini-options on the Exchange in a month. The Exchange proposes to 
implement changes to the CBOE Proprietary Products Sliding Scale 
(``Proprietary Sliding Scale''). First, the Exchange proposes to amend 
the current qualifying ADV thresholds. Specifically, the threshold 
20,000 ADV to 79,999 ADV would be changed to 25,000 ADV to 69,999 ADV, 
and the threshold 80,000 ADV and above would be changed to 70,000 ADV 
and above. The Exchange also proposes to increase the rates set forth 
in Tiers B1 through B3, as well as in Tiers A1 and A2. Specifically, 
the Exchange proposes to increase the rate in Tier B3 to $0.22 from 
$0.20, in Tier B2 to $0.12 from $0.10, in Tier B1 to $0.05 from $0.02, 
in Tier A2 to $0.18 from $0.16 and in Tier A1 to $0.02 from $0.01. The 
proposed changes are further detailed below.
---------------------------------------------------------------------------

    \4\ As of December 31, 2015, Underlying Symbol List A includes 
the following products: OEX, XEO, RUT, RLV, RLG, RUI, SPX (including 
SPXw), SPXpm, SRO, VIX, VXST, VOLATILITY INDEXES and binary options.

----------------------------------------------------------------------------------------------------------------
                         Current                                                 Proposed
----------------------------------------------------------------------------------------------------------------
                      Proprietary                                              Proprietary
      Tier          product volume      Transaction fee         Tier          product volume    Transaction fee
                      thresholds         per contract                           thresholds        per contract
----------------------------------------------------------------------------------------------------------------
 >=20,000 ADV <=79,999 ADV in multi                        >=25,000 ADV <=69,999 ADV in multi
            list products                                             list products
----------------------------------------------------------------------------------------------------------------
B3..............  0.00%-6.50%.......              $0.20   B3..............  0.00%-6.50%......              $0.22
B2..............  6.51%-8.50%.......               0.10   B2..............  6.51%-8.50%......               0.12
B1..............  Above 8.50%.......               0.02   B1..............  Above 8.50%......              $0.05
----------------------------------------------------------------------------------------------------------------

[[Page 7868]]

 
 >=80,000 ADV in multi list roducts                       >=70,000 ADV in multi list products
----------------------------------------------------------------------------------------------------------------
A2..............  0.00%-6.50%.......               0.16   A2..............  0.00%-6.50%......               0.18
A1..............  Above 6.50%.......               0.01   A1..............  Above 6.50%......               0.02
----------------------------------------------------------------------------------------------------------------

    The purpose of amending the tier volume thresholds is to adjust for 
current volume trends and demographics across the Clearing TPH 
proprietary population and to rationalize fees across that population. 
The purpose of increasing the transaction Fee Per Contract rates (and 
thereby reducing the amount of the discount Clearing TPHs may receive 
on proprietary products) is to moderate the discount levels for these 
products in view of their growth and performance. Particularly, the 
Exchange does not believe it's necessary to maintain the existing 
discounted rates for these tiers, but still seeks to maintain an 
incremental incentive for Clearing TPHs to strive for the highest tier 
level.
VIX Sliding Scale
    The Exchange proposes to adopt a new Clearing Trading Permit Holder 
Proprietary VIX Sliding Scale (the ``VIX Sliding Scale''). The VIX 
Sliding Scale allows VIX volatility index options (``VIX options'') 
transaction fees for Clearing TPH (including its Non-Trading Permit 
Holder affiliates) proprietary orders to be reduced provided a Clearing 
TPH (including its Non-Trading Permit Holder affiliates) reaches 
certain proprietary VIX options volume thresholds during a month. The 
proposed applicable transaction fees for the different volume tiers on 
the VIX Sliding Scale are as follows:

------------------------------------------------------------------------
                                                            Transaction
           Tier               Percentage thresholds of        fee per
                                  total VIX  volume          contract
------------------------------------------------------------------------
1.........................  0.00%-1.00%.................           $0.25
2.........................  1.01%-5.50%.................            0.17
3.........................  5.51%-8.00%.................            0.05
4.........................  Above 8.00%.................            0.01
------------------------------------------------------------------------

    The VIX Sliding Scale applies to orders bearing the origin codes 
``F'' and ``L''. The purpose of the VIX Sliding Scale is to encourage 
greater Clearing TPH proprietary trading of VIX options.
    In conjunction with the adoption of the VIX Sliding Scale, the 
Exchange proposes to amend Footnote 11 of its Fees Schedule. Footnote 
11 provides the details regarding the Clearing Trading Permit Holder 
Fee Cap (``Fee Cap'') in all products except Underlying Symbol List A 
(excluding binary options) and the CBOE Proprietary Products Sliding 
Scale for Clearing Trading Permit Holder Proprietary Orders, both of 
which apply to Clearing TPH proprietary orders. Because the VIX Sliding 
Scale also applies to Clearing TPH proprietary orders, and because many 
of the details regarding the Fee Cap and the Proprietary Products 
Sliding Scale will also apply to the VIX Sliding Scale, the Exchange 
proposes to reference the VIX Sliding Scale in Footnote 11 as well.
    First, Footnote 11 defines the CBOE Proprietary Products Sliding 
Scale for Clearing Trading Permit Holder Proprietary Orders as the 
``Sliding Scale''. In order to avoid confusion that could arise due to 
the addition of the VIX Sliding Scale, the Exchange proposes to define 
CBOE Proprietary Products Sliding Scale for Clearing Trading Permit 
Holder Proprietary Orders as the ``Proprietary Products Sliding 
Scale''. As such, any references within Footnote 11 to the ``Sliding 
Scale'' will now be referred to as the ``Proprietary Products Sliding 
Scale''. Any references to the Clearing Trading Permit Holder 
Proprietary VIX Sliding Scale within Footnote 11 will be referred to as 
the ``VIX Sliding Scale.''
    Like the Fee Cap and the Proprietary Sliding Scale, the VIX Sliding 
Scale will apply to (i) Clearing TPH proprietary orders (``F'' origin 
code), and (ii) orders of Non-Trading Permit Holder Affiliates of a 
Clearing TPH.\5\ A ``Non-Trading Permit Holder Affiliate'' would be 
defined for the purposes of the VIX Sliding Scale the same way it is 
defined for the Fee Cap and Proprietary Sliding Scale: A 100% wholly-
owned affiliate or subsidiary of a Clearing TPH that is registered as a 
United States or foreign broker-dealer and that is not a CBOE Trading 
Permit Holder (``TPH''). As with the Fee Cap and the Proprietary 
Sliding Scale, only proprietary orders of the Non-Trading Permit Holder 
Affiliate (``L'' origin code) effected for purposes of hedging the 
proprietary over-the-counter trading of the Clearing TPH or its 
affiliates will be included in calculating the VIX Sliding Scale, and 
such orders must be marked with a code approved by the Exchange 
identifying the orders as eligible for the VIX Sliding Scale. As with 
the Fee Cap and the Proprietary Sliding Scale, each Clearing TPH is 
responsible for notifying the TPH Department of all of its affiliations 
so that fees and contracts of the Clearing TPH and its affiliates may 
be aggregated for purposes of the VIX Sliding Scale and is required to 
certify the affiliate status of any Non-Trading Permit Holder Affiliate 
whose trading activity it seeks to aggregate. In addition, each 
Clearing TPH is required to inform the Exchange immediately of any 
event that causes an entity to cease to be an affiliate.
---------------------------------------------------------------------------

    \5\ See CBOE Fees Schedule, Footnote 11.
---------------------------------------------------------------------------

    As with the Fee Cap and the Proprietary Sliding Scale, the Exchange 
will aggregate the fees and trading activity of separate Clearing TPHs 
for the purposes of the VIX Sliding Scale if there is at least 75% 
common ownership between the Clearing TPHs as reflected on each 
Clearing TPH's Form BD, Schedule A. As with the Fee Cap and the 
Proprietary Sliding Scale, a Clearing TPH's fees and contracts executed 
pursuant to a CMTA agreement (i.e., executed by another clearing firm 
and then transferred to the Clearing TPH's account at the OCC) are 
aggregated with the Clearing TPH's non-CMTA fees and contracts for 
purposes of the VIX Sliding Scale.
    For calculating a Clearing TPH's total proprietary product 
transaction fees, CBOE will use the following methodology: If using the 
VIX Sliding Scale plus the Proprietary Sliding Scale (minus VIX options 
volume) results in lower total Clearing TPH proprietary transaction 
fees than just using the Proprietary Sliding Scale, CBOE will apply the 
new VIX Sliding Scale plus the Proprietary Sliding Scale (deducting the 
VIX options volume from the Proprietary Sliding Scale). If using the 
VIX Sliding Scale plus the Proprietary Sliding Scale (minus VIX options 
volume) results in higher total Clearing TPH proprietary transaction 
fees than just using the Proprietary Sliding Scale, CBOE will apply 
only the Proprietary Sliding Scale. The purpose of this methodology is 
to provide a Clearing TPH with the most beneficial fee

[[Page 7869]]

arrangement (the lowest fees) without double-counting VIX options 
volume.
    For example, consider a situation in which, in a month, a Clearing 
TPH has a combined total for both the Regular Trading Hours (``RTH'') 
session and Extended Trading Hours (``ETH'') session (i) qualifying ADV 
of 66,000 in all underlying symbols excluding Underlying Symbol List A 
and mini-options, (ii) qualifying proprietary VIX options volume of 
500,000 contracts, and (iii) qualifying volume of other proprietary 
products of 350,000 contracts (totaling 850,000 contracts of 
proprietary products).\6\ Total firm proprietary options contracts 
executed in the month was 15,298,000, including total VIX volume of 
6,433,000. The Clearing TPH's total 850,000 proprietary contracts 
represent 5.56% of the total monthly firm proprietary option contracts 
volume (i.e., 850,000/15,298,000). As such, the Clearing TPH's 
transaction fees for its proprietary volume under the Proprietary 
Sliding Scale (including the proposed rate change) would be $0.22 per 
contract, or a total of $187,000 (i.e., 850,000 x $0.22).
---------------------------------------------------------------------------

    \6\ For this example, all volumes listed exclude volume in SROs, 
Mini-Options and contracts for which a strategy cap has been 
applied.
---------------------------------------------------------------------------

    Continuing with the example, the Clearing TPH's fees using the VIX 
Sliding Scale plus the Proprietary Sliding Scale (minus VIX options 
volume) would be calculated. Under the VIX Sliding Scale, the Clearing 
TPH total 500,000 VIX contracts represent 7.77% of the total monthly 
firm VIX option contracts volume (i.e., 500,000/6,433,000). As such, 
the Clearing TPH would be assessed a $0.25-per-contract fee for 
contracts 1-64,330 (totaling $16,082.50), a $0.17-per-contract fee for 
contracts 64,331-353,815 (totaling $49,212.45), and a $0.05-per-
contract fee for contracts 353,816-500,000 (totaling $7,309.25). 
Therefore, under the VIX Sliding Scale, the Clearing TPH's proprietary 
transaction fees are $72,604.20 ($16,082.50 + $49,212.45 + $7,309.25). 
To this the Clearing TPH's proprietary fees under the Proprietary 
Sliding Scale (subtracting out the VIX options volume) would be added. 
Under the Proprietary Sliding Scale, the Clearing TPH's total non-VIX 
proprietary contracts represent 3.85% of the total monthly firm non-VIX 
proprietary option contracts volume (i.e., 350,000 non-VIX proprietary 
volume/8,865,000 total non-VIX proprietary volume (15,298,000 total 
proprietary volume - 6,433,000 VIX volume)). The Clearing TPH's 
transaction fees for its non-VIX proprietary volume under the 
Proprietary Sliding Scale (including the proposed rate change) would be 
$0.22 per contract, or a total of $77,000 (i.e., 350,000 x $0.22). The 
Clearing TPH's fees under the VIX Sliding Scale ($72,604.20) added to 
the fees using the Proprietary Sliding Scale (minus VIX volume) 
($77,000), totals $149,604.20. Because this amount is less than the 
Clearing TPH's fees using just the Proprietary Sliding Scale (including 
the VIX options volume) of $187,000, the Exchange would apply the VIX 
Sliding Scale plus the Proprietary Sliding Scale to determine the 
Clearing TPH's proprietary fees, and assess the lower fee of 
$149,604.20.
    In conjunction with the proposed changes, the Exchange proposes to 
make a number of related non-substantive clarifying and 
reorganizational changes to its Fees Schedule. First, the Exchange 
proposes to rename the CBOE Proprietary Products Sliding Scale rate 
table to the ``Clearing Trading Permit Holder Proprietary Products 
Sliding Scales.'' The Exchange also proposes to specify that Table A 
represents the Proprietary Products Sliding Scale and Table B 
represents the VIX Sliding Scale. Additionally, in light of renaming 
the table and adding the VIX Sliding Scale, the Exchange proposes to 
update the corresponding reference to the ``CBOE Proprietary Products 
Sliding Scale'' in the Specified Proprietary Index Options Rate Table 
to ``CBOE Clearing Trading Permit Holder Proprietary Products Sliding 
Scales''. The Exchange also proposes to eliminate Footnote 23 (which 
footnote relates to the CBOE Proprietary Sliding Scale) and consolidate 
the notes currently located within Footnote 23 with the notes currently 
located within the Notes section of the CBOE Proprietary Products 
Sliding Scale table, as well as update the Notes section with a 
description of how the sliding scales will work. The Exchange believes 
maintaining both a Notes section and a footnote is unnecessary and that 
the proposed change will alleviate potential confusion and make the 
Fees Schedule easier to read. Lastly, in light of the additional 
language that is being added regarding the VIX Sliding Scale, the 
Exchange proposes a few non-substantive and clarifying changes to the 
language contained within the Notes section of the CBOE Proprietary 
Products Sliding Scales table, which the Exchange believes will enhance 
the section's readability. For example, the Exchange has eliminated the 
sentence ``Mini-options and SROs are excluded from the CBOE Proprietary 
Products Sliding Scale'' and instead clarified where and when those 
products are excluded (i.e., SROs are not eligible for the reduce [sic] 
transaction fee discounts and Mini-Options are not counted towards the 
ADV volume thresholds). Additionally, the Exchange is amending the last 
sentence of the Notes section relating to ETH and RTH volume, which the 
Exchange believes will make the sentence easier to read and avoid 
potential confusion. For example, the Exchange proposes to eliminate 
the reference to ``VIX and SPX/SPXW'' volume and ``Underlying Symbol 
List A''. The Exchange notes that these changes are not substantive and 
do not change the applicability of the sliding scales to ETH or make 
any other changes as to how the sliding scales apply.
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.\7\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \8\ 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,\9\ 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.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
    \9\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange believes the proposal to change the qualifying volume 
thresholds for the reduced fees in the Proprietary Sliding Scale is 
reasonable because it adjusts for current volume trends and 
demographics across the Clearing TPH proprietary population and 
rationalizes fees across that population. The Exchange notes that the 
rebalance of tiers also still allows the Exchange to maintain an 
incremental

[[Page 7870]]

incentive for Clearing TPHs to strive for the highest tier level. The 
Exchange believes it is equitable and not unfairly discriminatory 
because the proposed changes to the qualifying volume thresholds apply 
to all Clearing TPHs.
    The Exchange believes increasing the rates in each of the tiers of 
the Proprietary Sliding Scale (and thereby reducing the overall 
discount) is reasonable because it still provides Clearing TPHs an 
opportunity to receive notable discounted rates on classes in 
Underlying Symbol list A for reaching certain qualifying volume 
thresholds that they would not otherwise receive (now just a smaller 
discount). Additionally, the Exchange notes that lower fees for 
executing more contracts is equitable and not unfairly discriminatory 
because it provides market participants with an incentive to execute 
more contracts on the Exchange. This brings greater liquidity and 
trading opportunity, which benefits all market participants. The 
Exchange believes that the proposed change is not unfairly 
discriminatory because it will apply to all Clearing TPHs that meet the 
qualifying volume thresholds. The Exchange also believes offering lower 
fees under the Proprietary Sliding Scale to Clearing TPHs and not other 
CBOE market participants is equitable and not unfairly discriminatory 
because Clearing TPHs must take on certain obligations and 
responsibilities, such as clearing and membership with the Options 
Clearing Corporation, as well as significant regulatory burdens and 
financial obligations, that other market participants are not required 
to undertake.
    The adoption of the VIX Sliding Scale is reasonable because it will 
allow Clearing TPHs who engage in VIX options trading the opportunity 
to pay lower fees for such transactions. Similarly, aggregating the 
fees and trading activity of separate Clearing TPHs for the purposes of 
the VIX Sliding Scale if there is at least 75% common ownership between 
the Clearing TPHs and aggregating a Clearing TPH's fees and contracts 
executed pursuant to a CMTA agreement with the Clearing TPH's non-CMTA 
fees and contracts for the purpose of the VIX Sliding Scale is 
reasonable because this will allow more Clearing TPHs to qualify for 
the lowered fees at the higher volume tiers in the VIX Sliding Scale.
    The proposed methodology to be used in calculating a Clearing TPH's 
total proprietary product transaction fees is reasonable because it 
provides Clearing TPHs who engage in VIX options trading with a second 
way to maximize their ability to reduce their proprietary products 
transaction fees. Subtracting VIX options volume from the Proprietary 
Sliding Scale when taking into account the VIX Sliding Scale to 
calculate proprietary product transaction fees is reasonable because it 
would be illogical (and not financially viable) to count VIX options 
volume twice (once in the VIX Sliding Scale and once in the Proprietary 
Sliding Scale) to allow a Clearing TPH to qualify for a lowered fee 
rate when the VIX options transactions (and volume such transactions 
created) only occurred once and fees were therefore only assessed on 
such transactions once.
    Applying the VIX Sliding Scale to Clearing TPH (and their 
affiliates, in the manner described above) proprietary orders only is 
equitable and not unfairly discriminatory because, as noted above, 
Clearing TPHs take on a number of obligations and responsibilities 
(such as membership with the Options Clearing Corporation), significant 
regulatory burdens, and financial obligations that other market 
participants are not required to undertake. Further, the VIX Sliding 
Scale is designed to encourage increased Clearing TPH proprietary VIX 
options volume, which provides increased VIX options volume and greater 
trading opportunities for all market participants. Similarly, applying 
lower fee rates for Clearing TPHs who hit the higher VIX options 
contract volume tiers on the VIX Sliding Scale is equitable and not 
unfairly discriminatory because this is designed to encourage increased 
TPH proprietary VIX options volume, which provides increased VIX 
options volume and greater trading opportunities for all Clearing TPHs, 
including those who are not able to reach the higher-volume tiers. 
Moreover, the Exchange already offers other fee-lowering programs (such 
as the Fee Cap and Proprietary Sliding Scale) which entail lower fees 
for Clearing TPHs (and their affiliates, in the manner described above) 
and are limited to Clearing TPHs (and their affiliates, in the manner 
described above).
    Applying the VIX Sliding Scale to VIX options and not to other 
products is equitable and not unfairly discriminatory because the 
Exchange has expended considerable time and resources in developing VIX 
options.
    The Exchange believes (i) redefining the Proprietary Sliding Scale 
and adding references to the VIX Sliding Scale in Footnote 11 of the 
Fees Schedule and (ii) updating the reference to the ``CBOE Proprietary 
Products Sliding Scale'' to ``CBOE Clearing Trading Permit Holder 
Proprietary Products Sliding Scales'' in the Specified Proprietary 
Index Options Rate Table alleviates potential confusion by investors 
reading the Fees Schedule in light of the proposed change. 
Additionally, the Exchange believes its proposal to make non-
substantive clarifying language changes to the Notes section, as well 
as its proposal to eliminate Footnote 23 and consolidate the 
description set forth in Footnote 23 within the Notes section of the 
current CBOE Proprietary Products Sliding Scale table will alleviate 
potential confusion and make the Fees Schedule easier to read and more 
streamlined. This avoidance of confusion removes impediments to and 
perfects the mechanism of a free and open market and a national market 
system, and, in general, protects investors and the public interest.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule changes will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The Exchange does not 
believe that the proposed rule change will impose any burden on 
intramarket competition that is not necessary or appropriate in 
furtherance of the purposes of the Act because, while it applies only 
to Clearing TPH proprietary orders, Clearing TPHs take on a number of 
obligations and responsibilities (such as membership with the Options 
Clearing Corporation), significant regulatory burdens, and financial 
obligations that other market participants are not required to 
undertake. Further, the VIX Sliding Scale is designed to encourage 
increased Clearing TPH proprietary VIX options volume, which provides 
increased VIX options volume and greater trading opportunities for all 
market participants. Therefore, the Exchange believes that any 
potential effects on intramarket competition that the proposed changes 
to the Proprietary Sliding Scale and adoption of the VIX Sliding Scale 
may cause are therefore justifiable. The Exchange does not believe that 
the proposed rule changes will impose any burden on intermarket 
competition that is not necessary or appropriate in furtherance of the 
purposes of the Act because the proposed rule change applies only to 
CBOE. To the extent that the proposed changes make CBOE a more 
attractive marketplace for market participants at other exchanges, such 
market participants are welcome to become CBOE market participants.

[[Page 7871]]

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 \10\ and paragraph (f) of Rule 19b-4 \11\ 
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.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 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 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-2016-008 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-2016-008. 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 
10:00 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-2016-008 and should be 
submitted on or before March 8, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
---------------------------------------------------------------------------

    \12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2016-02986 Filed 2-12-16; 8:45 am]
BILLING CODE 8011-01-P