[Federal Register Volume 84, Number 184 (Monday, September 23, 2019)]
[Notices]
[Pages 49774-49778]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-20477]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-86994; File No. SR-CBOE-2019-058]


Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
the Exchange's Rules Regarding Cabinet Trading Upon the Migration of 
the Exchange's Trading Platform to the Same System Used by the Cboe 
Affiliated Exchanges

September 17, 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 September 6, 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 
Exchange filed the proposal as a ``non-controversial'' proposed rule 
change pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 
19b-4(f)(6) thereunder.\4\ 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes 
to amend the Exchange's Rules regarding cabinet trading and move those 
Rules from the currently effective Rulebook (``current Rulebook'') to 
the shell structure for the Exchange's Rulebook that will become 
effective upon the migration of the Exchange's trading platform to the 
same system used by the Cboe Affiliated Exchanges (as defined below) 
(``shell Rulebook'').
    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
    In 2016, the Exchange's parent company, Cboe Global Markets, Inc. 
(formerly named CBOE Holdings, Inc.) (``Cboe Global''), which is also 
the parent company of Cboe C2 Exchange, Inc. (``C2''), acquired Cboe 
EDGA Exchange, Inc. (``EDGA''), Cboe EDGX Exchange, Inc. (``EDGX'' or 
``EDGX Options''), Cboe BZX Exchange, Inc. (``BZX'' or ``BZX 
Options''), and Cboe BYX Exchange, Inc. (``BYX'' and, together with 
Cboe Options, C2, EDGX, EDGA, and BZX, the ``Cboe Affiliated 
Exchanges''). Cboe Options intends to migrate its trading platform to 
the same

[[Page 49775]]

system used by the Cboe Affiliated Exchanges, which the Exchange 
expects to complete on October 7, 2019. In connection with this 
technology migration, the Exchange has a shell Rulebook that resides 
alongside its current Rulebook, which shell Rulebook will contain the 
Rules that will be in place upon completion of the Cboe Options 
technology migration.
    In anticipation of migration, the Exchange proposes to update and 
amend current Rule 6.54 which governs transactions in connection with 
``cabinet'' trades, which are trades in listed options on the Exchange 
that are worthless or not actively traded. In anticipation of 
migration, the Exchange proposes to move current Rule 6.54 (and 
subsequently delete the current rule after the shell Rulebook takes 
effect on October 7, 2019) to proposed Rule 5.12, which will govern 
cabinet trading in substantially the same manner as the current rule, 
with only slight differences. The proposed rule change does not propose 
to implement new or unique functionality that has not been previously 
filed with the Commission, found to be consistent with the Act, or is 
not available on other exchanges. The proposed rule change largely 
makes changes to remove obsolete provisions, update rule provisions to 
align with the manner in which the Exchange's System, functionality and 
other rules will function upon migration. The Exchange also proposes to 
make non-substantive changes to simplify, clarify, and generally update 
its cabinet trading provisions by consolidating them into a single 
rule, simplifying the rule language, updating the rule text to read in 
plain English, reformatting the paragraph lettering and/or numbering, 
and updating cross-references to rules that will be in the shell 
Rulebook and implemented upon migration. The Exchange believes that the 
proposed changes, overall, will make the rules easier to follow and 
understand, thus, simplifying the regulatory requirements and 
increasing the transparency and understanding of the Exchange's rules 
and operations for Trading Permit Holders (``TPHs'').
    Current Rule 6.54 provides that cabinet trades may only occur via 
open outcry, even if the class trades on the Exchange's System. As all 
classes currently trade on the Exchange's System, proposed Rule 5.12 
merely updates the current language to state that all cabinet orders 
will execute in open outcry pursuant to Rule 5.85(a) (in the shell 
Rulebook). Proposed Rule 5.12 also consolidates provisions in 
connection with cabinet trades by moving the FLEX cabinet trading 
limitation under current Rule 24A.15 \5\ to the proposed rule. The 
proposed changes do not substantively alter the manner in which cabinet 
orders may trade currently, but merely updates the rule language to 
reflect that cabinet orders will execute in open outcry like all other 
orders execute in open outcry, in accordance with the order allocation, 
priority, and execution rules that will be implemented upon migration, 
which is substantially similar to how cabinet trades currently 
function. The Exchange notes that upon migration, Users must 
systematize and route any orders they wish to execute in open outcry to 
the Exchange's Public Automated Routing System (``PAR'') prior to 
representation on the Exchange's trading floor for execution in open 
outcry.\6\
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    \5\ The Exchange notes that it is deleting the entirety of 
current Rule 24A.15 and will discuss the split price component of 
the rule in a FLEX-related rule filing for migration.
    \6\ A PAR workstation is an Exchange-provided order management 
tool for use on the Exchange's trading floor by Trading Permit 
Holders and PAR Officials to manually handle orders pursuant to the 
Rules and facilitate open outcry trading.
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    Current Rule 6.54.01 states that a PAR Official may accept bids or 
offers for opening transactions at a price of $1 per contract only to 
the extent that the cabinet book (which no longer exists) \7\ already 
contains closing orders for the contra side. The Exchange notes that a 
previous rule filing, SR-CBOE-2018-010,\8\ inadvertently removed what 
was then paragraph (a) under Rule 6.54, which included a provision 
allowing Floor Brokers and Market-Makers to represent that bids and 
offers for cabinet trades after first yielding priority to all orders 
in the cabinet book. Specifically, when this provision was initially 
added to the Exchange Rules, its purpose was to make clear that Floor 
Brokers or Market-Makers may enter into both opening and closing 
cabinet transactions, so long as they first yield priority to all 
orders in the Order Book Official's cabinet book.\9\ Previous paragraph 
(a) had generally described cabinet trading for classes not trading on 
the Hybrid System, and, because SR-CBOE-2018-010 had been implemented 
to delete Exchange Rules that no longer applied to the Exchange, it 
deleted previous paragraph (a) as all options traded on the Hybrid 
System, and currently do. This deletion inadvertently occurred because 
certain language in previous paragraph (a) is still relevant to 
transacting on the Exchange. Orders in all classes on the Hybrid System 
can currently be automatically executed both electronically and in open 
outcry after routing to PAR (as cabinet orders must). Even as the Order 
Book Officials and cabinet book ceased to exist on the Exchange,\10\ 
functionality continued to allow market participants to enter into both 
opening and closing cabinet transactions so long as they first yielded 
to closing orders on the floor. Therefore, proposed Rule 5.12 makes 
explicit that market participants may continue to place closing cabinet 
orders, and may continue to place opening cabinet orders, which must 
continue to yield to all closing cabinet orders represented by the 
trading crowd. In addition to making this explicit in the Exchange 
Rules, the Exchange believes that it is in line with the primary 
purpose of cabinet trades by facilitating the close of positions in a 
worthless or inactive series.
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    \7\ See Securities Exchange Act Release No. 82646 (February 7, 
2018), 83 FR 6294 (February 13, 2018) (SR-CBOE-2018-010), which 
removed the cabinet book and Order Book Officials because these 
functions were generally obsolete because most trading occurred 
electronically, as it does today. However, Cabinet Book Officials 
were replaced by PAR Officials, who currently do hold cabinet orders 
for priority execution on the Exchange.
    \8\ See id.
    \9\ See Securities Exchange Act Release No. 55081 (January 10, 
2007), 72 FR 2317 (January 18, 2007) (SR-CBOE-2007-02).
    \10\ See supra note 7.
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    In addition to this, proposed Rule 5.12(a) provides that cabinet 
orders are priced at $0.01. The current rule provides that cabinet 
trades are those priced at $1.00, which accounts for the notional value 
of series actually priced at $0.01 but adjusted with a multiplier of 
100. Instead, under the proposed rule, $0.01 is designed to encompass 
those series price at $0.01 with a 100 multiplier, as well as series 
that are priced at $0.01 or less with a different multiplier. 
Additionally, the proposed rule provides that cabinet orders are not 
available in classes with a minimum increment of $0.01. This is 
substantially similar to the function of the current rule, which does 
not allow penny pilot classes as cabinet orders, but accounts for the 
fact that the rules may permit other penny classes in addition to penny 
pilot classes. The proposed rule change appropriately renames such 
orders as ``penny cabinets''.
    Proposed Rule 5.12(b) provides for sub-penny cabinet orders.\11\ 
Proposed Rule 5.12(b) is based on the rules of other options exchanges, 
previously approved by the Commission.\12\ The Exchange believes that 
allowing a price of at least $0 but less than $0.01 better accommodates 
the closing of options positions in series that are worthless or

[[Page 49776]]

not actively traded, particularly due to market conditions which may 
result in a significant number of series being out-of-the-money. For 
example, a market participant might have a long position in a call 
series (with a 100 multiplier) with a strike price of $100 and the 
underlying stock might now be trading at $30. In such an instance, 
there might not otherwise be a market for that person to close-out the 
position even at the $0.01 cabinet price (e.g., the series might be 
quoted no bid). Proposed Rule 5.12(b) also provides that bids and 
offers for opening transactions in sub-penny cabinets are only 
permitted to accommodate closing transactions, which is consistent with 
the cabinet trading rules of other exchanges, as well as the purpose of 
cabinet trades in facilitating closing transactions for open positions 
in worthless or inactive series. The Exchange also notes that proposed 
Rule 5.12 does not maintain current language regarding the reporting of 
cabinet transactions (as stated in current Rule 6.54.01) or adopt such 
language in connection with sub-penny cabinets, which is contained in 
other exchanges' sub-cabinet rules, because all cabinet orders will 
execute in open outcry just like other orders (instead of only through 
a PAR Official or on the cabinet book), therefore cabinet order 
transaction prices will be also be reported like all other 
transactions, which, pursuant to current Rule 6.51 (Rule 6.1 in the 
shell Rulebook), must be reported within 90 seconds of the execution, 
which the Exchange then immediately submits to the Options Clearing 
Corporation (``OCC''). The Exchange represents that there would be no 
operational issues in processing and clearing sub-penny cabinet 
trades.\13\ The Exchange does not believe that the OCC will have any 
operational issues with processing sub-penny cabinet trades, as they 
will be reported to and submitted by the Exchange like all other 
transactions currently executed in open outcry. Additionally, the 
Exchange notes that because sub-penny cabinets will be reported and 
processed like all other open outcry trades market participants will 
not be impacted nor have to take on any additional reporting or 
processing burden.\14\
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    \11\ Current Rule 6.54.02 contains rule language in connection 
with sub-cabinets which expired on March 5, 2018.
    \12\ See, e.g., NYSE Arca Options Commentary .01 to Rule 6.80-O; 
and NASDAQ Phlx Options 8, Sec. 33(d).
    \13\ See also note 7. The Exchange also notes that there were no 
issues in processing and clearing such transactions prior to the 
expiration of the sub-cabinet rule.
    \14\ See also note 7. The Exchange notes that market 
participants did not raise any concerns with the processing of sub-
cabinet trades prior to the expiration of the sub-cabinet rule.
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    The Exchange also notes that the proposed rule change deletes 
current Rules 21.15, and 28.12 which governed cabinet trading in 
connection with government securities options and corporate debt 
security options, respectively, but are redundant of the current manner 
in which cabinet trades are executed and of the proposed rule, which 
allow opening transactions to execute so long as they first yield to 
closing transactions. The proposed rule change also removes Rule 23.10 
because it refers to provisions that no longer exist within the 
Exchange Rules and it moves Rule 23.10.01 to proposed Rule 5.12(b), and 
makes non-substantive changes to the language to reflect the rest of 
the proposed sub-penny cabinet rule language.
    The proposed rule change also renames the rule ``Cabinet Trades'', 
and updates references according. The Exchange believes that the term 
``cabinet trade'' is a wider-used and recognized term throughout the 
industry. Also, the Exchange notes that ``accommodation liquidations'' 
refers specifically to cabinet trades to close out positions in 
worthless or nearly worthless out-of-the-money option contracts, 
whereas cabinet trades more accurately refer to the wider range of 
transactions governed by the proposed rule, which are trades in options 
listed on the Exchange that are worthless or not actively traded.
    In light of the proposed change, the Exchange also proposes to add 
``penny cabinet'' orders and ``sub-penny cabinet'' orders to the list 
of types of order instructions under Rule 5.6(c) currently in the shell 
Rulebook. Likewise, the Exchange proposes to add penny cabinet and sub-
penny cabinet orders to the list of order available for PAR routing to 
open outcry under Rule 5.83(a)(2) currently in the shell Rulebook. The 
proposed changes are not substantive changes but instead are intended 
to provide additional clarity under the rules regarding cabinet order 
instructions and that cabinet orders may route through PAR to execute 
in open outcry, which will be available to Users upon the technology 
migration.
    The Exchange also proposes to delete Rule 5.7.03 in the shell 
Rulebook (and renumber the subsequent provisions), which excludes 
accommodation liquidations from the entry of orders and quotes into the 
System and the systemization of orders. As stated above, upon migration 
Users must systematize and route any orders, including cabinet orders, 
they wish to execute in open outcry to PAR prior to representation on 
the Exchange's trading floor for execution in open outcry. 
Additionally, the Exchange now proposes to delete Rule 6.24 from the 
current Rulebook as it inadvertently failed to delete this rule under 
SR-CBOE-2019-033,\15\ which moved the provisions under current Rule 
6.24 to Rule 5.7 in the shell Rulebook in anticipation of migration.
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    \15\ See Securities Exchange Act Release No. 86374 (July 15, 
2019), 84 FR 34963 (July 19, 2019) (Notice of Filing and Immediate 
Effectiveness of a Proposed Rule Change Relating to System 
Connectivity and Order Entry and Allocation Upon the Migration of 
the Exchange's Trading Platform to the Same System Used by the Cboe 
Affiliated Exchanges) (SR-CBOE-2019-033).
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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.\16\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \17\ 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) \18\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers.
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    \16\ 15 U.S.C. 78f(b).
    \17\ 15 U.S.C. 78f(b)(5).
    \18\ Id.
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    The proposed rule is generally intended to provide consolidated and 
updated rules for market participants in connection with the October 7, 
2019 technology migration. The proposed rule change does not propose to 
implement new or unique functionality that has not been previously 
filed with the Commission, found to be consistent with the Act, or is 
not available on other exchanges. The Exchange notes that the proposed 
rule is substantially the same as the current rule and largely makes 
changes to remove obsolete provisions, update rule provisions to align 
with the manner in which the Exchange's System, functionality and other 
rules that will become live upon migration, as well as non-substantive 
changes to simplify rule language, make the rule provisions plain 
English, and update cross-references and paragraph formatting. The 
Exchange believes that the proposed changes, overall, will

[[Page 49777]]

make the rules easier to follow and understand, thus, simplifying the 
regulatory requirements and increasing the transparency and 
understanding of the Exchange's operations for TPHs. As such, the 
proposed rule change would foster cooperation and coordination with 
persons engaged in facilitating transactions in securities, would 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system, and, in general, contribute to the 
protection of investors and the public interest.
    Specifically, the proposed change amending rule language to provide 
that all cabinet orders will execute in open outcry pursuant to Rule 
5.82(c)(2) does not substantively alter the manner in which cabinet 
orders may trade currently, but merely updates the rule language to 
reflect the order allocation and priority rules that will be applicable 
to the execution of all orders in open outcry upon migration. The 
Exchange believes that by amending its rule to accurately reflect 
Exchange functionality and processes upon migration, the proposed rule 
change removes impediments to and perfects the mechanism of a free and 
open national market system.
    Additionally, the Exchange believes that the proposed rule change 
makes it explicit that market participants may enter cabinet orders as 
either opening or closing transactions, but such orders must yield 
priority to all cabinet orders represented by the trading crowd. The 
Exchange notes that this is the manner in which the cabinet order 
process currently functions, yet such rule text pertaining to this 
process was inadvertently removed. Therefore, by making this process 
explicit in the Exchange Rules, the proposed rule change will remove 
impediments to and perfect the mechanism of a free and open market and 
national market system. The proposed rule change does not alter the 
manner in which functionality currently exists for cabinet trading but 
merely intends to make the rules clear that market participants may 
continue to place cabinet orders as both opening and closing 
transactions that will execute in accordance with the allocation and 
priority rules like that of all other orders executed in open outcry, 
after first yielding to the cabinet orders on the floor. Similarly, the 
proposed rule does not maintain the cabinet reporting provisions 
because all cabinet orders will execute in open outcry just as any 
other order and, therefore, cabinet order transaction prices will also 
be reported just like any other transaction. The Exchange believes that 
the proposed changes will remove impediments to and perfect the 
mechanism of a free and open market and national market system, and 
otherwise protect investors and the public interest, because they will 
accurately reflect Exchange functionality upon migration.
    The proposed rule change to update cabinet orders as orders priced 
$0.01, does not alter the current application of the rule. Rather, the 
proposed change is intended to add additional detail to the rule, 
thereby removing impediments to and perfecting the mechanism of a free 
and open national market system, by stating the actual options price 
which would include both those series priced at $0.01 with a 100 
multiplier adjustment, as well as series that are priced at $0.01 or 
less with a different multiplier. Likewise, the proposed rule is 
intended to account for the fact that the rules permit other penny 
classes than just penny pilot classes, thus, does not allow cabinet 
orders for any class with a minimum increment of $0.01. Therefore, the 
proposed change facilitates transactions in securities by ensuring that 
the rule covers cabinet trade in all series, not only those with a 100 
multiplier, and ensures that the cabinet order rule accounts for other 
Exchange Rules that provide for penny classes.
    The Exchange believes that the proposed sub-penny cabinet orders 
will remove impediments to and perfect the mechanism of a free and open 
market and national market system and, in general, protect investors 
because such orders will allow market participants to close options 
positions in series that are worthless or not actively traded, 
particularly due to market conditions which may result in a significant 
number of series being out-of-the-money. The proposed change does not 
offer new or unique functionality for market participants as it is 
consistent with sub-cabinet rules on other options exchanges that have 
been found to be consistent with the Act and previously approved by the 
Commission,\19\ as well as the purpose of cabinet orders in 
facilitating closing transactions for open positions in worthless or 
inactive series. The Exchange also believes that the proposed change 
will protect investors because there would be no operational issues in 
processing and clearing sub-penny cabinet trades because cabinet trades 
will be reported to the Exchange and submitted by the Exchange to OCC 
just like all open outcry transactions are currently reported and 
submitted.\20\ Also, because sub-penny cabinets will be reported and 
processed like all other open outcry trades, market participants will 
not be impacted nor have to take on any additional reporting or 
processing burden.
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    \19\ See supra note 12. See also note 11. The Exchange also 
notes that sub-cabinet functionality was available to market 
participants until the expiration of Rule 6.54.02 on March 5, 2018.
    \20\ See also note 7. The Exchange also notes that there were no 
issues in processing and clearing such transactions prior to the 
expiration of the sub-cabinet rule.
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    The Exchange also notes that the proposed rule change that deletes 
current which governed cabinet trading in connection with government 
security, interest rate, and corporate debt security options will 
remove impediments to and perfect the mechanism of a free and open 
market and national market system by removing redundant and/or obsolete 
rules and, as a result, providing transparent, updated rules for market 
participants. Likewise, renaming the rule ``Cabinet Trades'', also adds 
clarity and updates the rules by reflecting an industry-wide term and 
the wider range of transactions govern by the proposed rule.
    The Exchange believes that the non-substantive changes to list 
cabinet trades under types of order instructions and to add penny 
cabinet and sub-penny cabinet orders to the list of order available for 
PAR routing to open outcry under Exchange Rules currently in the shell 
Rulebook, as well as updating the exclusion of cabinet trades from 
provisions in relation to systemization (as cabinet orders will route 
through PAR to execute in open outcry) are designed to provide 
additional clarity and transparency under the rules in connection with 
cabinet orders and functionality related to cabinet orders available to 
Users upon the technology migration. The Exchange notes that the 
deletion of Rule 6.24 from the current Rulebook is a non-substantive 
change as this rule was inadvertently maintained in the Rulebook under 
SR-CBOE-2019-033 which moved the provisions under current Rule 6.24 to 
Rule 5.7 in the shell Rulebook in anticipation of migration, yet 
inadvertently failed to delete the current rule in anticipation of 
migration, as well.
    The proposed rule change makes other various non-substantive 
changes throughout the rules that will protect investors and benefit 
market participants as these changes simplify the rules and use plain 
English throughout the rules.

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

    The Exchange does not believe that the proposed rule change will 
impose

[[Page 49778]]

any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act. The Exchange reiterates that 
the proposed rule change is being proposed in the context of a 
technology migration of the Cboe Affiliated Exchanges. As stated, the 
proposed changes to the rules that reflect functionality that will be 
in place come October 7, 2019 provide clear rules that accurately 
reflect post-migration functionality upon the completion of migration.
    The Exchange does not believe the proposed rule change will impose 
any burden on intramarket competition because the proposed cabinet 
orders will be available to all market participants to execute in open 
outcry in the same manner as they are able to execute their other 
orders. The Exchange notes that while cabinet orders must yield to 
closing cabinet orders on the floor first, this will not impact 
intramarket competition because it is the manner in which cabinet 
orders already trade and is in line with the primary purpose of cabinet 
trading to facilitate closing transactions in worthless or inactive 
series. The Exchange also does not believe that the proposed rule 
change will impose any burden on intermarket competition. As discussed 
above, the basis for the proposed rule change regarding sub-penny 
cabinets are the rules of other options exchanges, which have already 
been found consistent with the Act and approved by the Commission.\21\ 
In addition to this, these exchanges have substantially similar rules 
regarding cabinet trading.\22\
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    \21\ See supra note 12.
    \22\ See id.
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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 foregoing rule 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, provided that the self-regulatory organization 
has given the Commission written notice of its intent to file 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,\23\ the proposed rule change has become effective 
pursuant to Section 19(b)(3)(A) of the Act \24\ and Rule 19b-4(f)(6) 
thereunder.\25\
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    \23\ The Exchange has fulfilled this requirement.
    \24\ 15 U.S.C. 78s(b)(3)(A).
    \25\ 17 CFR 240.19b-4(f)(6).
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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. If the Commission 
takes such action, the Commission will institute proceedings to 
determine whether the proposed rule change should be approved or 
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-2019-058 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-2019-058. 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 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. 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-2019-058 and should be submitted on 
or before October 15, 2019.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\26\
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    \26\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-20477 Filed 9-20-19; 8:45 am]
 BILLING CODE 8011-01-P