[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to the Removal of a Number of Outdated Fees and References in the Cboe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to remove a number of outdated fees and references in the Cboe Options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