Federal Register / Vol. 83, No. 126 / Friday, June 29, 2018 / Notices 30787 

8 15 U.S.C. 78s(b)(3)(A)(iii). 

9 17 CFR 240.19b–4(f)(6). 

10 17 CFR 240.19b–4(f)(6). 

11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the Exchange to give the 

Commission written notice of the Exchange’s intent 

to file the proposed rule change along with a brief 

description and the 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 pre-filing requirement. 

12 17 CFR 240.19b–4(f)(6)(iii). 

13See Securities Exchange Act Release No. 61061 

(November 24, 2009), 74 FR 62857 (December 1, 

2009) (SR–NYSEArca–2009–44). 

14For purposes only of waiving the operative 

delay for this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

15 15 U.S.C. 78s(b)(2)(B). 

16 17 CFR 200.30–3(a)(12). 

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). 

will be filing similar extensions of the 

Penny Pilot Program. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 8 and Rule 

19b–4(f)(6) thereunder.9 Because the 

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 

prior to 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, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act and Rule 19b–4(f)(6)(iii) 

thereunder. 

A proposed rule change filed under 

Rule 19b–4(f)(6) 10 normally does not 

become operative prior to 30 days after 

the date of the filing.11 However, 

pursuant to Rule 19b–4(f)(6)(iii),12 the 

Commission may 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 so that the proposal may 

become operative immediately upon 

filing. The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest 

because doing so will allow the Pilot 

Program to continue without 

interruption in a manner that is 

consistent with the Commission’s prior 

approval of the extension and expansion 

of the Pilot Program and will allow the 

Exchange and the Commission 

additional time to analyze the impact of 

the Pilot Program.13 Accordingly, the 

Commission designates the proposed 

rule change as operative upon filing 

with the Commission.14

At any time within 60 days of the 

filing of such 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 shall institute proceedings 

under Section 19(b)(2)(B) 15 of the Act 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 rule-comments@

sec.gov. Please include File Number SR– 

MIAX–2018–12 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–MIAX–2018–12. 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–MIAX–2018–12 and should 

be submitted on or before July 20, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to 

delegated authority.16

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–13981 Filed 6–28–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83505; File No. SR–CBOE– 

2018–046] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Relating to Exchange 

Rule 6.2., Hybrid Opening (and 

Sometimes Closing) System (‘‘HOSS’’) 

June 25, 2018. 

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 June 15, 

2018, 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 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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30788 Federal Register / Vol. 83, No. 126 / Friday, June 29, 2018 / Notices 

5Currently, this time is set to two seconds. The 

Exchange intends to reduce this time period to one 

second in June 2018. 

6Currently, there are two one-second intervals. 

7The Exchange intends to initially set the length 

of this interval to 500 milliseconds. 

8The Exchange intends to initially have 10 

intervals of 100 milliseconds each. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Rule 6.2., Hybrid Opening (and 

Sometimes Closing) System (‘‘HOSS’’). 

(additions are italicized; deletions are 

[bracketed]) 

* * * * * 

Cboe Exchange, Inc. Rules 

* * * * * 

Rule 6.2. Hybrid Opening (and Sometimes 

Closing) System (‘‘HOSS’’) 

(a)–(b) (No change). 

(c) Opening Rotation Period. After the 

System initiates the opening rotation 

procedure and sends the Rotation Notice, the 

System begins the opening rotation period. 

During the opening rotation period for a 

series: 

(i)–(ii) (No change). 

(iii) After a period of time determined by 

the Exchange for all classes (which period of 

time may be no longer than five seconds), the 

System opens series of a class in [a 

random]the following order[, staggered over 

regular intervals of time (the Exchange 

determines the length and number of these 

intervals for all classes).]: 

(A) ATM and OTM Series with Expirations 

of 29 to 31 Days. During the initial interval 

(the Exchange determines the length of this 

interval for all classes, the length of which 

may be no longer than three seconds), the 

System opens: 

(I) at-the-money (‘‘ATM’’) puts and a group 

of out-of-the-money (‘‘OTM’’) puts with strike 

prices closest to the ATM strike price, in a 

random order; 

(II) ATM calls and a group of OTM calls 

with strike prices closest to the ATM strike 

price, in a random order; and 

(III) alternating groups of further OTM puts 

and further OTM calls, each in a random 

order. 

During this interval, the System attempts to 

open any ATM or OTM series that could not 

open on its first attempt. 

(B) All Other Series. After the initial 

interval, the System opens all other series, 

and any series that did not open pursuant to 

subparagraph (A), in a random order, 

staggered over regular intervals of time (the 

Exchange determines the length and number 

of these intervals for all classes, the length of 

which intervals may be no longer than two 

seconds). 

(C) Definition of ATM. For purposes of 

subparagraph (A), a put (call) is ATM if its 

strike price equals or is the first strike above 

(below) the last disseminated transaction 

price in the underlying security or index 

value on the same trading day. If the System 

begins an opening rotation for a class prior 

to receiving a disseminated transaction price 

in the underlying security or index value, the 

System will open all series in the class 

pursuant to subparagraph (B). 

Subject to paragraph (d) below, the 

opening rotation period (including these 

intervals) may not exceed [60]30 seconds. 

(d)–(h) (No change). 

. . . Interpretations and Policies: 

.01–.07 (No change). 

* * * * * 

The text of the proposed rule change 

is also available on the Exchange’s 

website (http://www.cboe.com/About

CBOE/CBOELegalRegulatory

Home.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 proposed rule change amends the 

order in which the System opens series 

for trading. Current Rule 6.2(c)(iii) 

states, after a period of time after the 

initiation of the opening rotation (which 

time is determined by the Exchange for 

all classes, and may be no longer than 

five seconds),5 the System opens series 

of a class in a random order, staggered 

over regular intervals of time (the 

Exchange determines the length and 

number of these intervals for all 

classes).6 The opening rotation period 

(including these intervals) may not 

exceed 60 seconds, except as otherwise 

set forth in the Rule. 

Pursuant to the proposed rule change, 

during an initial interval (the Exchange 

determines the length of this interval for 

all classes, which may be no longer than 

three seconds),7 the System will first 

open at-the-money (‘‘ATM’’) and out-ofthe-money (‘‘OTM’’) series with 

expirations of 29 to 31 days, and then 

open all remaining series. Specifically, 

during the first interval, the System will 

open: 

• ATM puts and a group of OTM puts 

with strike prices closest to the ATM 

strike price, in a random order; 

• ATM calls and a group of OTM 

calls with strike prices closest to the 

ATM strike price, in a random order; 

and 

• alternating groups of further OTM 

puts and further OTM calls, each in a 

random order. 

During this interval, the System 

attempts to open any ATM or OTM 

series that could not open on its first 

attempt. 

After the first interval, the System 

opens all other series, and any OTM and 

ATM series with expirations of 29 to 31 

days that did not open during the first 

interval, in a random order, staggered 

over regular intervals of time (the 

Exchange determines the length and 

number of these intervals for all classes, 

the length of which may be no longer 

than two seconds).8

For purposes of this proposed rule 

change, a put (call) is ATM if its strike 

price equals or is the first strike above 

(below) the last disseminated 

transaction price in the underlying 

security or index value on the same 

trading day. If the System begins an 

opening rotation for a class prior to 

receiving a disseminated transaction 

price in the underlying security or index 

value, the System will open all series in 

the class pursuant to proposed 

subparagraph (B) (i.e., all in a random 

order, staggered over regular intervals of 

time). Pursuant to Rule 6.2, the opening 

rotation for most equity and exchangetraded product options will begin after 

the System receives a disseminated 

opening trade or quote in the market for 

the underlying security. Additionally, 

the opening rotation for certain index 

options will begin at the later of 8:30 

a.m. and the time the System receives a 

disseminated index value for classes 

determined by the Exchange. However, 

for certain classes, the opening rotation 

will begin at 8:30 a.m. As a result, it is 

possible the System may not have a 

value to determine which series are 

ATM. To avoid delaying the opening of 

series in these classes, the Exchange 

believes it is appropriate to open all 

series in a random order rather than 

wait for such a value. 

Below are examples demonstrating 

the new opening sequence. For 

purposes of these examples, assume the 

ATM strike price is 50. Additionally, 

assume June expiration series are 30 

days away and all other series are more 

than 31 days away. There will be a one 

second opening timer delay, an initial 


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Federal Register / Vol. 83, No. 126 / Friday, June 29, 2018 / Notices 30789 

9See Rule 8.18. 

interval of 500 milliseconds, and then 

10 intervals of 100 milliseconds. Puts 

will be opened in groups of 4, and calls 

will be opened in groups of 3 (the first 

put and call group will also include the 

ATM strike). Class ABC consists of the 

following series: 

Jun ABC 62 put 

Jun ABC 61 put 

Jun ABC 60 put 

Jun ABC 59 put 

Jun ABC 58 put 

Jun ABC 57 put 

Jun ABC 56 put 

Jun ABC 55 put 

Jun ABC 54 put 

Jun ABC 53 put 

Jun ABC 52 put 

Jun ABC 51 put 

Jun ABC 50 put 

Jun ABC 49 put 

Jun ABC 48 put 

Jun ABC 47 put 

Jun ABC 46 put 

Jun ABC 45 put 

Jun ABC 44 put 

Jun ABC 43 put 

Jun ABC 42 put 

Jun ABC 41 put 

Jun ABC 40 put 

Jun ABC 39 put 

Jun ABC 38 put 

Jun ABC 59 call 

Jun ABC 58 call 

Jun ABC 57 call 

Jun ABC 56 call 

Jun ABC 55 call 

Jun ABC 54 call 

Jun ABC 53 call 

Jun ABC 52 call 

Jun ABC 51 call 

Jun ABC 50 call 

Jun ABC 49 call 

Jun ABC 48 call 

Jun ABC 47 call 

Jun ABC 46 call 

Jun ABC 45 call 

Jun ABC 44 call 

Jun ABC 43 call 

Jun ABC 42 call 

Jun ABC 41 call 

July ABC 60 put 

July ABC 60 call 

July ABC 59 put 

July ABC 59 call 

July ABC 58 put 

July ABC 58 call 

July ABC 57 put 

July ABC 57 call 

July ABC 56 put 

July ABC 56 call 

July ABC 55 put 

July ABC 55 call 

Aug ABC 60 put 

Aug ABC 60 call 

Aug ABC 59 put 

Aug ABC 59 call 

Aug ABC 58 put 

Aug ABC 58 call 

Aug ABC 57 put 

Aug ABC 57 call 

Aug ABC 56 put 

Aug ABC 56 call 

Aug ABC 55 put 

Aug ABC 55 call 

Example #1—All Series Satisfy Opening 

Conditions on First Attempt 

After the one-second delay, the 500- 

millisecond interval starts. During that 

interval, the System opens in a random 

order the Jun ABC 50, 49, 48, 47, and 

46 puts. The System then opens in a 

random order the Jun ABC 50, 51, 52, 

and 53 calls. Then, the System opens in 

a random order the Jun ABC 45, 44, 43, 

and 42 puts. Then, the System opens in 

a random order the Jun ABC 54, 55, and 

56 calls. Next, the System opens in a 

random order the Jun ABC 41, 40, 39, 

and 38 puts. The System then opens in 

a random order the Jun ABC 57, 58, and 

59 calls. After 500 milliseconds, the 

System opens in a random order over 10 

100-millisecond intervals the remaining 

Jun puts and calls and all Jul and Aug 

puts and calls. 

Example #2—Assume One Series Does 

Not Open on First Attempt but Does 

Open on Second Attempt During the 

Initial Interval 

After the one-second delay, the 500- 

millisecond interval starts. During that 

interval, the System opens in a random 

order the Jun ABC 50, 49, 48, 47, and 

46 puts. The System then opens in a 

random order the Jun ABC 50, 51, 52, 

and 53 calls. Then, the System opens in 

a random order the Jun ABC 45, 44, and 

43, and attempts to but cannot open the 

Jun ABC 42 put. Then, the System 

opens in a random order the Jun ABC 

54, 55, and 56 calls. Next, the System 

opens in a random order the Jun ABC 

41, 40, 39, and 38 puts. The System then 

opens in a random order the Jun ABC 

57, 58, and 59 calls. The System then 

opens the Jun ABC 42 put, which did 

not open on its first attempt. After 500 

milliseconds, the System opens in a 

random order over 10 100-millisecond 

intervals the remaining Jun puts and 

calls and all Jul and Aug puts and calls. 

Example #3—Assume One Series Does 

Not Satisfy Opening Conditions During 

the First Interval 

After the one-second delay, the 500- 

millisecond interval starts. During that 

interval, the System opens in a random 

order the Jun ABC 50, 49, 48, 47, and 

46 puts. The System then opens in a 

random order the Jun ABC 50, 51, 52, 

and 53 calls. Then, the System opens in 

a random order the Jun ABC 45, 44, and 

43, and attempts to but cannot open the 

Jun ABC 42 put. Then, the System 

opens in a random order the Jun ABC 

54, 55, and 56 calls. Next, the System 

opens in a random order the Jun ABC 

41, 40, 39, and 38 puts. The System then 

opens in a random order the Jun ABC 

57 and 58 calls, and attempts to but 

cannot open the Jun ABC 59 call. During 

the initial 500 milliseconds, the System 

continues to attempt to but cannot open 

the Jun ABC 59 call. After 500 

milliseconds, the System opens in a 

random order over 10 100-millisecond 

intervals the Jun ABC 59 call, the 

remaining Jun puts and calls, and all Jul 

and Aug puts and calls. 

While the System will continue to 

open series in a random order, during 

an initial longer interval, the System 

will open specific groups of series 

within a random order. The order in 

which the System opens series for 

trading is generally immaterial; 

however, on expiration days for 

volatility index derivatives, ATM and 

OTM series with expirations of 

approximately one month are used to 

calculate the exercise settlement value 

of expiring volatility index derivatives 

as part of the modified opening 

procedure. The Exchange believes 

opening these series first will enhance 

liquidity in those series on expiration 

days for volatility index derivatives. 

Specifically, Market-Makers are the 

primary liquidity providers in the 

Exchange’s market. The Exchange 

provides Market-Makers with a tool, the 

Quote Risk Monitor (‘‘QRM’’) they use 

to control risk of multiple, automatic 

executions. A QRM event in a class will 

cause a Market-Maker’s quotes in all 

series in the class to be cancelled 

(certain events may cause a MarketMaker’s quotes in all classes to be 

cancelled).9 As a result, a MarketMaker’s opening transactions in series 

not used to calculate an exercise 

settlement value may cause a QRM 

event, cancelling the Market-Maker’s 

quotes in all other series in the class, 

including series used to calculate an 

exercise settlement value. This reduces 

liquidity in these series. Similarly, the 

Exchange has observed larger MarketMaker quote sizes in further OTM puts 

and calls compared to sizes in less OTM 

puts and calls and ATM puts and calls, 

which have higher weightings in the 

formula used to determine the exercise 

settlement value of expiring volatility 

index derivatives in accordance with 

the applicable volatility index 


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10See, e.g., the VIX methodology at http://

www.cboe.com/micro/vix/vix-index-rules-andmethodology.pdf. 11 15 U.S.C. 78f(b). 12 15 U.S.C. 78f(b)(5). 13 Id. 

14 15 U.S.C. 78s(b)(3)(A)(iii). 

15 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. 

methodology.10 If the further OTM puts 

and calls open prior to the less OTM 

puts and calls and ATM puts and calls, 

similar reduced liquidity in those ATM 

and less OTM puts and calls from QRM 

events may occur. The Exchange 

believes the proposed rule change will 

increase liquidity in all series used to 

calculate exercise settlement values, 

which is desirable to ensure these series 

open at competitive prices on expiration 

days for volatility index derivatives. 

While liquidity is important to open all 

series on the Exchange, given the 

potential impact on the exercise 

settlement value determined for 

expiring volatility index derivatives, the 

Exchange believes it is appropriate to 

ensure a fair and orderly opening of the 

series used to calculate the exercise 

settlement value. 

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.11 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 12 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) 13 requirement that 

the rules of an exchange not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

In particular, the proposed rule 

change merely modifies the order in 

which the System opens series for 

trading on the Exchange. The System 

will continue to open series in a random 

order; however, initially, it will open 

series within specific groups in a 

random order. The Exchange believes 

the System can open series pursuant to 

the proposed maximum interval times, 

as current interval times are under these 

maximums, and because they are 

consistent with the proposed maximum 

of 30 seconds for the entire opening 

process. These interval times ensure a 

fast opening of all series, which will 

benefit investors. 

While the order in which the System 

opens series is generally immaterial 

(and thus why the Exchange has opened 

them in a random order), the Exchange 

believes opening ATM and OTM series 

with expirations of approximately one 

month will permit series used to 

calculate exercise settlement values for 

expiring volatility index derivatives to 

open as soon as possible. As discussed 

above, the Exchange believes this may 

enhance liquidity in these series on 

expiration days for volatility index 

derivatives, which benefits market 

participants. Additionally, reducing the 

potential time during which all series in 

all classes will open benefits all market 

participants, because market 

participants will be able to begin trading 

in all series sooner. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

Cboe Options 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 only modifies the 

order in which the System will open 

series for trading. The System will open 

groups of ATM and OTM series with 

expirations of approximately one month 

first, but will continue to open series 

within those groups in a random order, 

and then open all in-the-money series in 

a random order (as is case today with 

respect to those series). Additionally, 

pursuant to the proposed rule change, 

the opening process must be within a 

shorter time period. The proposed 

maximum interval times are consistent 

with current and proposed interval 

times, and are consistent with the 

proposed maximum of 30 seconds for 

the entire opening process (which is 

shorter than the current maximum). The 

proposed rule change applies to all 

classes in the same manner, and only 

applies to the order in which the System 

will open series for trading on the 

Exchange. As discussed above, the 

Exchange believes this may enhance 

liquidity in these series on expiration 

days for volatility index derivatives, 

which benefits market participants. 

Additionally, reducing the potential 

time during which all series in all 

classes will open benefits all market 

participants, because market 

participants will be able to begin trading 

in all series sooner. 

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)(iii) of the Act 14 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.15

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: (i) Necessary or appropriate in 

the public interest; (ii) for the protection 

of investors; or (iii) otherwise in 

furtherance of the purposes of the Act. 

If the Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

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 rule-comments@

sec.gov. Please include File Number SR– 

CBOE–2018–046 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. 


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16 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. On December 18, 2018, the 

Clearing Agencies each filed these proposals as 

advance notices (SR–DTC–2017–804, SR–FICC– 

2017–806, SR–NSCC–2017–806) with the 

Commission pursuant to Section 806(e)(1) of the 

Payment, Clearing, and Settlement Supervision Act 

of 2010 (‘‘Clearing Supervision Act’’) and Rule 19b– 

4(n)(1)(i) of the Act (‘‘Advance Notices’’). On 

January 30, 2018, the Commission published in the 

Federal Register notices of filing of the Advance 

Notices. These notices also extended the review 

periods for the Advance Notices pursuant to 

Section 806(e)(1)(H) of the Clearing Supervision 

Act. (12 U.S.C. 5465(e)(1)(H).) See Securities 

Exchange Act Release Nos. 82582 (January 24, 

2018), 83 FR 4297 (January 30, 2018) (SR–DTC– 

2017–804); 82583 (January 24, 2018), 83 FR 4358 

(January 30, 2018) (SR–FICC–2017–806); 82584 

(January 24, 2018), 83 FR 4377 (January 30, 2018) 

(SR–NSCC–2017–806). On April 10, 2018, the 

Commission required further information for 

consideration of the Advance Notices, pursuant to 

Section 806(e)(1)(D) of the Clearing Supervision 

Act, which provided the Commission with a 

renewed 60-day review period beginning on the 

date that the information requested is received by 

the Commission. (12 U.S.C. 5465(e)(1)(D).) As of the 

date of this release, the Commission has not yet 

received the requested information. 

3Securities Exchange Act Release Nos. 82426 

(January 2, 2018), 83 FR 913 (January 8, 2018) (SR– 

DTC–2017–022); 82427 (January 2, 2018), 83 FR 854 

(January 8, 2018) (SR–FICC–2017–022); 82428 

(January 2, 2018), 83 FR 897 (January 8, 2018) (SR– 

NSCC–2017–018). 

4Securities Exchange Act Release No. 82670 

(February 8, 2018), 83 FR 6626 (February 14, 2018) 

(SR–DTC–2017–022; SR–FICC–2017–022; SR– 

NSCC–2017–018). 

5 15 U.S.C. 78s(b)(2)(B). 

6Securities Exchange Act Release Nos. 82914 

(March 20, 2018), 83 FR 12978 (March 26, 2018) 

(SR–DTC–2017–022); 82909 (March 20, 2018), 83 

FR 12990 (March 26, 2018) (SR–FICC–2017–022); 

82910 (March 20, 2018), 83 FR 12968 (March 26, 

2018) (SR–NSCC–2017–018). 

7 15 U.S.C. 78s(b)(2). 

8 15 U.S.C. 78s(b)(2)(B)(ii)(II). 

9See supra note 2. 

10 15 U.S.C. 78s(b)(2)(B)(ii)(II). 

All submissions should refer to File 

Number SR–CBOE–2018–046. 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–2018–046 and 

should be submitted on or before July 

20, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–13978 Filed 6–28–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83510; File Nos. SR–DTC– 

2017–022; SR–FICC–2017–022; SR–NSCC– 

2017–018] 

Self-Regulatory Organizations; The 

Depository Trust Company; Fixed 

Income Clearing Corporation; National 

Securities Clearing Corporation; 

Notice of Designation of Longer Period 

for Commission Action on 

Proceedings To Determine Whether To 

Approve or Disapprove Proposed Rule 

Changes To Amend the Loss 

Allocation Rules and Make Other 

Changes 

June 25, 2018. 

On December 18, 2017, The 

Depository Trust Company (‘‘DTC’’), 

Fixed Income Clearing Corporation 

(‘‘FICC’’), and National Securities 

Clearing Corporation (‘‘NSCC’’) 

(collectively, ‘‘Clearing Agencies’’), each 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) a 

proposed rule change to amend the loss 

allocation rules and make other changes 

(SR–DTC–2017–022, SR–FICC–2017– 

022, and SR–NSCC–2017–018), 

respectively (‘‘Proposed Rule Changes’’), 

pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder.2

The Proposed Rule Changes were 

published for comment in the Federal 

Register on January 8, 2018.3 On 

February 8, 2018, the Commission 

designated a longer period within which 

to approve, disapprove, or institute 

proceedings to determine whether to 

approve or disapprove the Proposed 

Rule Changes.4 On March 20, 2018, the 

Commission instituted proceedings 

pursuant to Section 19(b)(2)(B) of the 

Act 5 to determine whether to approve 

or disapprove the Proposed Rule 

Changes.6 The Commission did not 

receive any comments on the Proposed 

Rule Changes. 

Section 19(b)(2) of the Act 7 provides 

that proceedings to determine whether 

to approve or disapprove a proposed 

rule change must be concluded within 

180 days of the date of publication of 

notice of filing of the proposed rule 

change. The time for conclusion of the 

proceedings may be extended for up to 

60 days if the Commission determines 

that a longer period is appropriate and 

publishes the reasons for such 

determination.8 The 180th day for the 

Proposed Rule Changes is July 7, 2018. 

The Commission is extending the 

period for Commission action on the 

Proposed Rule Changes. The 

Commission finds that it is appropriate 

to designate a longer period within 

which to take action on the Proposed 

Rule Changes so that the Commission 

has sufficient time to consider the issues 

raised by the Proposed Rule Changes 

and to take action on the Proposed Rule 

Changes. The proposal shall not take 

effect until all regulatory actions 

required with respect to the proposal are 

completed.9

Accordingly, pursuant to Section 

19(b)(2)(B)(ii)(II) of the Act 10 and for the 

reasons stated above, the Commission 

designates September 5, 2018, as the 

date by which the Commission should 

either approve or disapprove proposed 

rule changes SR–DTC–2017–022, SR– 

FICC–2017–022, and SR–NSCC–2017– 

018. 


sradovich on DSK3GMQ082PROD with NOTICES