[Federal Register Volume 84, Number 201 (Thursday, October 17, 2019)]
[Notices]
[Pages 55671-55675]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-22591]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87273; File No. SR-CBOE-2019-091]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
the Name of a Reporting Authority for Certain Indexes on Which the
Exchange May List Options
October 10, 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 October 3, 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
and II 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
The Exchange proposes to amend the name of a reporting authority
for certain indexes on which the Exchange may list options. The text of
the proposed rule change is provided below.
[[Page 55672]]
(additions are italicized; deletions are [bracketed])
* * * * *
Rules of Cboe Exchange, Inc.
* * * * *
Rule 24.1. Definitions
No change.
. . . Interpretations and Policies:
.01 The reporting authorities designated by the Exchange in respect of
each index underlying an index option contract traded on the Exchange
are as follows:
Index Reporting Authority
S&P 100................................ Standard & Poor's.
S&P 500................................ Standard & Poor's.
Cboe Bio Tech.......................... Cboe [Exchange, Inc.]Global
Indices, LLC.
FTSE 100 Index (1/10th)................ FTSE International Limited.
FT-SE 200 Eurotrack.................... London Stock Exchange.
Russell 2000........................... Frank Russell Co.
S&P Transportation..................... Standard & Poor's.
S&P Retail............................. Standard & Poor's.
S&P Health Care........................ Standard & Poor's.
S&P Entertainment & Leisure............ Standard & Poor's.
S&P Banking............................ Standard & Poor's.
S&P Insurance.......................... Standard & Poor's.
S&P Chemical........................... Standard & Poor's.
Cboe Options Software.................. Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe Options Environmental............. Cboe [Exchange, Inc.]Global
Indices, LLC.
S&P 500/Barra Growth................... Standard & Poor's.
S&P 500/Barra Value.................... Standard & Poor's.
Nasdaq 100............................. Nasdaq, Inc.
Cboe Options Gaming.................... Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe Options Global Telecommunications. Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe Options Mexico.................... Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe Options Israeli................... Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe REIT Index........................ Cboe [Exchange, Inc.]Global
Indices, LLC.
Nikkei Stock Index 300................. Nihon Keizai Shimbun, Inc.
Cboe Options Emerging Asian Markets.... Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe Options Emerging Markets.......... Cboe [Exchange, Inc.]Global
Indices, LLC.
S&P SmallCap 600 Index................. Standard & Poor's.
Cboe Options Latin 15.................. Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe Technology Index.................. Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe Germany 25 Index.................. Cboe [Exchange, Inc.]Global
Indices, LLC.
Mexico 30 Index........................ Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe Options Automotive................ Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe Internet Index.................... Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe Oil Index......................... Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe Gold Index........................ Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe Computer Networking Index......... Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe PC Index.......................... Cboe [Exchange, Inc.]Global
Indices, LLC.
IPC.................................... Mexican Stock Exchange.
GSTI Composite Index................... Goldman, Sachs & Co.
GSTI Internet Index.................... Goldman, Sachs & Co.
GSTI Software Index.................... Goldman, Sachs & Co.
GSTI Semiconductor Index............... Goldman, Sachs & Co.
GSTI Hardware Index.................... Goldman, Sachs & Co.
GSTI Multimedia Networking Index....... Goldman, Sachs & Co.
GSTI Services Index.................... Goldman, Sachs & Co.
Morgan Stanley Multinational Company Morgan Stanley.
Index.
Reduced Value NYSE Composite Index..... Dow Jones & Company, Inc.
Dow Jones Industrial Average........... Dow Jones & Company, Inc.
Dow Jones Transportation Average....... Dow Jones & Company, Inc.
Dow Jones Utility Average.............. Dow Jones & Company, Inc.
Lipper Analytical/Salomon Bros. Growth Lipper Analytical Services,
Fund Index. Inc.
Lipper Analytical/Salomon Bros. Growth Lipper Analytical Services,
& Income Fund Index. Inc.
Dow Jones High Yield Select 10 Index... Cboe [Exchange, Inc.]Global
Indices, LLC.
Dow Jones Equity REIT Index............ Dow Jones & Company, Inc.
Dow Jones E*Commerce Index............. Dow Jones & Company, Inc.
Cboe Euro 25 Index..................... Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe Asian 25 Index.................... Cboe [Exchange, Inc.]Global
Indices, LLC.
Russell 1000 Index..................... Frank Russell Co.
[[Page 55673]]
Russell 1000 Growth Index.............. Frank Russell Co.
Russell 1000 Value Index............... Frank Russell Co.
Russell 2000 Growth Index.............. Frank Russell Co.
Russell 2000 Value Index............... Frank Russell Co.
Russell 3000 Index..................... Frank Russell Co.
Russell 3000 Growth Index.............. Frank Russell Co.
Russell 3000 Value Index............... Frank Russell Co.
Russell Midcap Index................... Frank Russell Co.
Russell Midcap Growth Index............ Frank Russell Co.
Russell Midcap Value Index............. Frank Russell Co.
Russell Top 200 Index.................. Frank Russell Co.
Russell Top 200 Growth Index........... Frank Russell Co.
Russell Top 200 Value Index............ Frank Russell Co.
Cboe China Index....................... Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe Volatility Index[supreg] Cboe [Exchange, Inc.]Global
(VIX[supreg]). Indices, LLC.
Cboe Nasdaq 100[supreg] Volatility Cboe [Exchange, Inc.]Global
Index (VXN[supreg]). Indices, LLC.
Cboe Dow Jones Industrial Cboe [Exchange, Inc.]Global
Average[supreg] Volatility Index Indices, LLC.
(VXD[supreg]).
Cboe Increased-Value Volatility Cboe [Exchange, Inc.]Global
Index[supreg]. Indices, LLC.
Cboe Increased-Value Nasdaq 100[supreg] Cboe [Exchange, Inc.]Global
Volatility Index. Indices, LLC.
Cboe Increased-Value Dow Jones Cboe [Exchange, Inc.]Global
Industrial Average[supreg] Volatility Indices, LLC.
Index.
Cboe PowerPacksSM Bank Index........... Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe PowerPacksSM Biotechnology Index.. Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe PowerPacksSM Gold Index........... Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe PowerPacksSM Internet Index....... Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe PowerPacksSM Iron & Steel Index... Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe PowerPacksSM Oil Index............ Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe PowerPacksSM Oil Services Index... Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe PowerPacksSM Pharmaceuticals Index Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe PowerPacksSM Retail Index......... Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe PowerPacksSM Semiconductor Index.. Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe PowerPacksSM Technology Index..... Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe PowerPacksSM Telecom Index........ Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe Russell 2000 Volatility IndexSM Cboe [Exchange, Inc.]Global
(``RVXSM''). Indices, LLC.
Cboe S&P 500 Three-Month Realized Cboe [Exchange, Inc.]Global
Variance. Indices, LLC.
Cboe S&P 500 Three-Month Realized Cboe [Exchange, Inc.]Global
Volatility. Indices, LLC.
Cboe S&P 500 BuyWrite Index (1/10th Cboe [Exchange, Inc.]Global
value). Indices, LLC.
S&P 500 Dividend Index................. Standard & Poor's .01.
Cboe Gold ETF Volatility Index......... Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe Equity VIX on Apple............... Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe Equity VIX on Amazon.............. Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe Equity VIX on Goldman Sachs....... Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe Equity VIX on Google.............. Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe Equity VIX on IBM................. Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe Crude Oil ETF Volatility Index.... Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe Emerging Markets ETF Volatility Cboe [Exchange, Inc.]Global
Index. Indices, LLC.
Cboe China ETF Volatility Index........ Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe Brazil ETF Volatility Index....... Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe Gold Miners ETF Volatility Index.. Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe Energy Sector ETF Volatility Index Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe Silver ETF Volatility Index....... Cboe [Exchange, Inc.]Global
Indices, LLC.
Cboe S&P 500 AM/PM Basis............... Cboe [Options] Global Indices,
LLC.
Cboe Short-Term Volatility Index....... Cboe [Exchange, Inc.]Global
Indices, LLC.
MSCI EAFE Index (EAFE)................. MSCI Inc.
MSCI Emerging Markets Index (EM)....... MSCI Inc.
FTSE China 50 Index (1/100th).......... FTSE International Limited.
FTSE Emerging Index.................... FTSE International Limited.
FTSE Developed Europe Index............ FTSE International Limited.
S&P Financial Select Sector Index (IXM) S&P Dow Jones Indices.
S&P Energy Select Sector Index (IXE)... S&P Dow Jones Indices.
S&P Technology Select Sector Index S&P Dow Jones Indices.
(IXT).
S&P Health Care Select Sector Index S&P Dow Jones Indices.
(IXV).
S&P Utilities Select Sector Index (IXU) S&P Dow Jones Indices.
S&P Consumer Staples Select Sector S&P Dow Jones Indices.
Index (IXR).
S&P Industrials Select Sector Index S&P Dow Jones Indices.
(IXI).
S&P Consumer Discretionary Select S&P Dow Jones Indices.
Sector Index (IXY).
S&P Materials Select Sector Index (IXB) S&P Dow Jones Indices.
S&P Real Estate Select Sector Index S&P Dow Jones Indices.
(IXRE).
S&P Communication Services Select S&P Dow Jones Indices.
Sector Index (IXC).
[[Page 55674]]
* * * * *
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
Cboe Options currently operates a business, separate from its
operation of an options exchange, in which it creates, administers, and
distributes proprietary financial and benchmarks, calculates index
values and benchmarks for third-party customers, and calculates and
licenses indexes for third-party derivative indexes and products, among
other things. Cboe Options calculates and disseminates the values of
these indexes to market participants. Pursuant to the Cboe Options
Rules, the Exchange is also authorized to list options on certain of
these indexes, for which Cboe Options acts as the reporting
authority.\5\ The reporting authority in respect of a particular index
means the institution or reporting service designated by the Exchange
as the official source for calculating the level of the index from the
reporting prices of the underlying securities that are the basis of the
index and reporting such level.\6\ Recently, Cboe Options determined to
conduct an internal reorganization, pursuant to which it created a new
entity, called Cboe Global Indices, LLC (which is a direct, wholly
owned subsidiary of the Exchange's parent company, Cboe Global Markets,
Inc.), into which it transferred its assets related to this index
business. This transfer is expected to be effective as of September 30,
2019.\7\ As a result, the Exchange designates Cboe Global Indices, LLC
as the reporting authority for the indexes on which the Exchange may
list options, and amends Rule 24.1, Interpretation and Policy .01.\8\
The Exchange represents this will have no impact on the dissemination
of index values for any of these indexes. Values for these indexes will
continue to be disseminated and available to market participants in the
same manner and in the same intervals.\9\
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\5\ See Rule 24.1, Interpretation and Policy .01 in the current
Rulebook.
\6\ See Rule 24.1(h).
\7\ The Exchange initially filed the proposed change to the
reporting authority name on September 30, 2019 (SR-CBOE-2019-074).
On October 3, 2019, the Exchange withdrew that filing and submitted
this filing.
\8\ The Exchange notes it currently only lists options on the
Cboe Volatility Index (VIX).
\9\ Pursuant to Rule 24.2(b)(10), (d)(8), (e)(7), and (f)(11),
the current value of an index must be disseminated at least once
every 15 seconds by one or more major market data vendors. That will
continue to be the case.
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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.\10\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \11\ 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) \12\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers. The proposed rule change removes impediments to
and perfects the mechanism of a free and open market a national market
system, and protects investors and the public interest, by updating its
rules to reflect the current name of a reporting authority for various
indexes on which the Exchange is authorized to list options. The
Exchange believes this promotes transparency in its Rules and may
eliminate any potential confusion among market participants. The
proposed rule change has no impact on trading on the Exchange, or on
the dissemination of index values, but merely reflects a change to the
name of a reporting authority for various indexes on which the Exchange
is authorized to list options due to a recent internal reorganization
and transfer of assets.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
\12\ Id.
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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 is
not intended to be a competitive rule filing. Rather, the proposed rule
change merely reflects a change to the name of a reporting authority
for various indexes on which the Exchange is authorized to list options
due to a recent internal reorganization and transfer of assets. The
proposed rule change has no impact on trading on the Exchange, or on
the dissemination of index values.
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 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, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \13\ and Rule 19b-
4(f)(6) thereunder.\14\
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and 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.
The Exchange has satisfied this requirement.
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[[Page 55675]]
A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \15\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \16\ permits the
Commission to 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 as the
proposed rule change only updates its rules to reflect the current name
of a reporting authority for various indexes on which the Exchange is
authorized to list options. The Exchange believes that waiver of the
operative delay is appropriate because, as the Exchange discussed
above, its proposal does not make any substantive changes to the
Exchange's rules. The Commission believes that waiver of the 30-day
operative delay is consistent with the protection of investors and the
public interest because the proposal does not raise any new or novel
issues and makes only non-substantive changes to the rules. Therefore,
the Commission hereby waives the operative delay and designates the
proposal as operative upon filing.\17\
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\15\ 17 CFR 240.19b-4(f)(6).
\16\ 17 CFR 240.19b-4(f)(6)(iii).
\17\ For purposes only of waiving the 30-day operative delay,
the Commission also has 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. 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-2019-091 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-2019-091. 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-2019-091 and should be submitted on
or before November 7, 2019.
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\18\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-22591 Filed 10-16-19; 8:45 am]
BILLING CODE 8011-01-P