[Federal Register Volume 84, Number 176 (Wednesday, September 11, 2019)]
[Notices]
[Pages 47976-47977]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-19612]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-86884; File No. SR-CBOE-2019-052]


Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change Relating 
to the Removal of a Number of Outdated Fees and References in the Cboe 
Options Fees Schedule

September 5, 2019.
    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 August 28, 2019, 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.
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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 the 
Substance of the Proposed Rule Change

    Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes 
to remove a number of outdated fees and references in the Cboe Options 
Fees Schedule. The text of the proposed rule change is provided in 
Exhibit 5.
    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 make a number of non-substantive, cleanup 
changes to its fees schedule.
    First, the Exchange proposes to remove the ``New Trading Permit 
Holder Orientation and Exam'' fee in the Cboe Options Fees Schedule. 
Particularly, the Exchange notes that it recently submitted a rule 
filing which eliminated the Trading Permit Holder Orientation and Exam, 
as of July 6, 2019, rendering the corresponding fee obsolete.\3\ As 
such, the Exchange proposes to remove the fee, which no longer can be 
assessed, from the Fees Schedule.
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    \3\ See Securities Exchange Act Release No. 86065 (June 7, 
2019), 84 FR 27667 (June 13, 2019) (SR-CBOE-2019-029).
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    Similarly, the Exchange proposes to eliminate references to another 
examination that no longer exists. Particularly, as of January 2016, 
the Series 56 examination was eliminated.\4\ The Exchange notes 
however, that it inadvertently omitted to update the Fees Schedule and 
eliminate references to the Series 56 examination and related fees. 
Accordingly, the Exchange first proposes to eliminate the reference to 
``(e.g., Series 56 examination)'' in the notes section of the 
Qualification Examination Waiver Request Fee. The Exchange further 
proposes to eliminate the ``Initial Proprietary Registration'' and 
``Annual Proprietary Registration'' fees. These registration fees were 
assessed in connection with the registration of the Series 56 exam, and 
as such, are no longer necessary to maintain in the Fees Schedule.
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    \4\ See Securities Exchange Act Release No. 76247 (October 23, 
2015), 80 FR 66605 (October 29, 2015) (SR-CBOE-2015-094).
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    The Exchange next proposes to eliminate LiveVol Fees (Livevol Core 
``LVCX'' fees), as the Exchange no longer offers this functionality, 
and also proposes to eliminate the ``In-Crowd Telephones (plus usage 
fee)'' fee, as this service is similarly no longer offered.
    The Exchange further proposes to eliminate references to the 
``Position Transfer Fee'' (on-floor 6.49A fee), as on-floor position 
transfers were recently eliminated.\5\
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    \5\ See Securities Exchange Act Release No. 85732 (April 26, 
2019), 84 FR 18901 (May 2, 2019) (SR-CBOE-2019-024). See also Cboe 
Options Exchange Regulatory Circular RG 19-019.
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    The Exchange lastly proposes to eliminate all references to the 
following symbols as they are no longer listed: AWDE, FTEM, FXTM, GVZ, 
VXEEM, VXEWZ, OVX, XSPAM, Volatility Indexes \6\ and Binary options.
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    \6\ They Exchange notes that it is not eliminating any 
references to VIX options.
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    The Exchange notes that it has not assessed any of the above fees 
since the elimination of the respective service/exam/rule.
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,

[[Page 47977]]

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) \9\ requirement that the rules of an exchange not be designed 
to permit unfair discrimination between customers, issuers, brokers, or 
dealers.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
    \9\ Id.
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    The Exchange believes the proposed rule change to update the Fees 
Schedule to remove obsolete fees and references, maintains clarity in 
the Fees Schedule and will alleviate potential confusion, thereby 
removing impediments to and perfecting the mechanism of a free and open 
market and a national market system and protecting investors and the 
public interest. As noted above, the proposed filing does not 
substantively change any transaction fees or rebates, but merely 
removes unnecessary and obsolete language that the Exchange 
inadvertently failed to update upon the elimination of the 
corresponding fees, services and exams. Particularly, Exchange has not 
assessed any of the above-referenced fees since the elimination of the 
respective service/exam/rule.

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. The proposed rule change 
does not address competitive issues, but rather, as discussed above, is 
merely intended to correct inadvertent omissions to update the Fees 
Schedule to remove obsolete fees and references, which will alleviate 
potential confusion.

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.
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f).
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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-2019-052 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-2019-052. 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 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. 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-2019-052, and should be submitted 
on or before October 2, 2019.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Jill M. Petereson,
Assistant Secretary.
[FR Doc. 2019-19612 Filed 9-10-19; 8:45 am]
BILLING CODE 8011-01-P