31802 Federal Register / Vol. 83, No. 131 / Monday, July 9, 2018 / Notices 

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). 

(‘‘Commission’’) is soliciting comments 

on the collection of information 

summarized below. The Commission 

plans to submit this existing collection 

of information to the Office of 

Management and Budget for extension 

and approval. 

Rule 239 (17 CFR 230.239) provides 

exemptions under the Securities Act of 

1933 (15 U.S.C. 77a et seq.), the 

Securities Exchange Act of 1934 (15 

U.S.C. 78a et seq.) and the Trust 

Indenture Act of 1939 (U.S.C. 77aaa et 

seq.) for security-based swaps issued by 

certain clearing agencies satisfying 

certain conditions. The purpose of the 

information required by Rule 239 is to 

make certain information about 

security-based swaps that may be 

cleared by the registered or the exempt 

clearing agencies available to eligible 

contract participants and other market 

participants. We estimate that each 

registered or exempt clearing agency 

issuing security-based swaps in its 

function as a central counterparty will 

spend approximately 2 hours each time 

it provides or update the information in 

its agreements relating to security-based 

swaps or on its website. We estimate 

that each registered or exempt clearing 

agency will provide or update the 

information approximately 20 times per 

year. In addition, we estimate that 75% 

of the 2 hours per response (1.5 hours) 

is prepared internally by the clearing 

agency for a total annual reporting 

burden of 180 hours (1.5 hours per 

response × 20 times × 6 respondents). 

Written comments are invited on: (a) 

Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

agency, including whether the 

information will have practical utility; 

(b) the accuracy of the agency’s estimate 

of the burden imposed by the collection 

of information; (c) ways to enhance the 

quality, utility, and clarity of the 

information collected; and (d) ways to 

minimize the burden of the collection of 

information on respondents, including 

through the use of automated collection 

techniques or other forms of information 

technology. Consideration will be given 

to comments and suggestions submitted 

in writing within 60 days of this 

publication. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless it displays a currently valid 

control number. 

Please direct your written comment to 

Pamela Dyson, Director/Chief 

Information Officer, Securities and 

Exchange Commission, c/o Candace 

Kenner, 100 F Street NE, Washington, 

DC 20549 or send an email to: PRA_

Mailbox@sec.gov. 

Dated: July 3, 2018. 

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–14657 Filed 7–6–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Proposed Collection; Comment 

Request 

Upon Written Request Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE, Washington, DC 

20549–2736 

Extension: 

Form TH, SEC File No. 270–377, OMB 

Control No. 3235–0425 

Notice is hereby given that, pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et seq.), the Securities 

and Exchange Commission 

(‘‘Commission’’) is soliciting comments 

on the collection of information 

summarized below. The Commission 

plans to submit this existing collection 

of information to the Office of 

Management and Budget for extension 

and approval. 

Form TH (17 CFR 239.65, 249.447, 

269.10 and 274.404) under the 

Securities Act of 1933 (15 U.S.C. 77a et 

seq.), the Securities Exchange Act of 

1934 (15 U.S.C. 78a et seq.), the Trust 

Indenture Act of 1939 (15 U.S.C. 77aaa 

et seq.) and the Investment Company 

Act of 1940 (15 U.S.C. 80a–1 et seq.) is 

used by registrants to notify the 

Commission that an electronic filer is 

relying on the temporary hardship 

exemption for the filing of a document 

in paper form that would otherwise be 

required to be filed electronically as 

required by Rule 201(a) of Regulation S– 

T. Form TH must be filed every time an 

electronic filer experiences 

unanticipated technical difficulties 

preventing the timely preparation and 

submission of a required electronic 

filing. Approximately 5 registrants file 

Form TH and it takes an estimated 0.33 

hours per response for a total annual 

burden of 2 hours (0.33 hours per 

response × 5 responses). 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless it displays a currently valid 

control number. 

Written comments are invited on: (a) 

Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

agency, including whether the 

information will have practical utility; 

(b) the accuracy of the agency’s estimate 

of the burden imposed by the collection 

of information; (c) ways to enhance the 

quality, utility, and clarity of the 

information collected; and (d) ways to 

minimize the burden of the collection of 

information on respondents, including 

through the use of automated collection 

techniques or other forms of information 

technology. Consideration will be given 

to comments and suggestions submitted 

in writing within 60 days of this 

publication. 

Please direct your written comments 

to Pamela Dyson, Director/Chief 

Information Officer, Securities and 

Exchange Commission, c/o Candace 

Kenner, 100 F Street NE, Washington, 

DC 20549 or send an email to: PRA_

Mailbox@sec.gov. 

Dated: July 3, 2018. 

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–14655 Filed 7–6–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83583; File No. SR–CBOE– 

2018–048] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Exchange 

Rule 24.6, Days and Hours of Business 

Concerning Expiring MSCI EAFE Index 

Options and MSCI Emerging Markets 

Index Options 

July 2, 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 25, 

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, 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. 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 131 / Monday, July 9, 2018 / Notices 31803 

5Trading in the other components ends at various 

times throughout the trading day in Chicago. 

6 15 U.S.C. 78f(b). 

7 15 U.S.C. 78f(b)(5). 

8 Id. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Rule 24.6. 

(additions are italicized; deletions are 

[bracketed]) 

* * * * * 

Cboe Exchange, Inc. Rules 

* * * * * 

Rule 24.6. Days and Hours of Business 

(a)–(b) (No change). 

. . . Interpretations and Policies: 

.01–.04 (No change). 

.05 On their last trading day, 

[transactions in expiring MSCI EAFE Index 

options may be effected on the Exchange 

between the hours of 8:30 a.m. (Chicago time) 

and 3:00 p.m. (Chicago time), and] 

transactions in expiring FTSE Developed 

Europe Index options may be effected on the 

Exchange between the hours of 8:30 a.m. 

(Chicago time) and the close of the London 

Stock Exchange (usually 10:30 a.m. Chicago 

time). The last day of trading for expiring 

MSCI EAFE Index options series and MSCI 

Emerging Markets Index options series will 

be the business day prior to the expiration 

date of the specific series. 

.06 (No change). 

* * * * * 

The text of the proposed rule change 

is available on the Exchange’s website 

(http://www.cboe.com/AboutCBOE/ 

CBOELegalRegulatoryHome.aspx), at 

the Exchange’s Office of the Secretary, 

and at the Commission’s Public 

Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in Sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The proposed rule change modifies 

the last trading day for options that 

overlie the MSCI EAFE Index and the 

MSCI Emerging Markets Index (‘‘EAFE 

options’’ and ‘‘EM options,’’ 

respectively). Pursuant to Rule 24.6(a), 

the trading hours for EM options are 

from 8:30 a.m. to 3:15 p.m. Chicago 

time, including on their expiration date. 

Pursuant to Rule 24.6(a) and 

Interpretation and Policy .05, the 

trading hours for EAFE options are from 

8:30 a.m. to 3:15 p.m. Chicago time, 

except trading in expiring EAFE options 

will end at 3:00 p.m. on their expiration 

date. The proposed rule change states 

the last trading day for expiring EAFE 

options series and EM options series 

will be the business day prior to the 

expiration date of the specific series. 

EAFE and EM options are p.m.- 

settled, which means the exercise 

settlement value of an expiring option is 

derived from the closing prices of the 

underlying components on the series 

expiration date. The MSCI EAFE Index 

consists of components from 21 

countries, and the MSCI Emerging 

Markets Index consists of components 

from 24 countries. Because the 

components of each of these indexes 

encompass multiple markets around the 

world, the components are subject to 

varying trading hours. For the MSCI 

EAFE Index, the first components open 

trading at approximately 5:00 p.m. 

Chicago time on the prior trading day, 

and the last components end trading at 

approximately 11:30 a.m. Chicago time. 

Similarly, for the MSCI Emerging 

Markets Index, the first components 

open trading at approximately 6:00 p.m. 

Chicago time (on the prior trading day), 

and the last components end trading at 

approximately 3:30 p.m. Chicago time. 

Expiring EAFE options and EM 

options currently trade on their 

expiration dates through 3:00 p.m. and 

3:15 p.m. Chicago time, respectively. 

However, trading in various 

components ends prior to the beginning 

of EAFE options and EM options regular 

trading hours (i.e., 8:30 a.m. Chicago 

time).5 As a result, the closing prices of 

those components, which are used to 

determine the exercise settlement value, 

were determined prior to the time when 

the expiring options may begin trading 

on the expiration date. This increases 

the risk of providing liquidity in these 

products on that date. Generally, the 

prices of futures on the MSCI EAFE and 

EM indexes can be a proxy for the 

current level of the applicable index 

when options on those indexes are 

trading on the Exchange while the index 

level is not being disseminated. 

However, that is not the case on options’ 

expiration dates, as the prices that will 

be used to determine the exercise 

settlement value are fixed once trading 

in the components ends, and thus 

futures trading prices after trading in 

those components end have no bearing 

on the exercise settlement value. 

Therefore, the Exchange believes it is 

appropriate to stop trading in expiring 

EAFE and EM options on the business 

day prior to the expiration date. 

Pursuant to Rule 24.6(a), on their last 

day of trading (the trading day prior to 

the expiration date, as proposed), EAFE 

and EM options will trade from 8:30 

a.m. through 3:15 p.m. Chicago time. 

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.6 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 7 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) 8 requirement that 

the rules of an exchange not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

The Exchange has observed reduced 

liquidity on expiration dates of expiring 

EAFE and EM series due to the pricing 

risk associated with providing liquidity 

after the components whose closing 

prices will be used to determine the 

exercise settlement value of expiring 

options have stopped trading. MarketMakers and other liquidity providers 

generally price EAFE and EM options 

using the disseminated index values 

and data from the markets on which the 

components trade. As noted above, 

when these markets are not trading 

during U.S. trading hours, these 

liquidity providers price the options 

using prices of futures trading on the 

MSCI EAFE and EM indexes. While 

those futures prices can serve as a proxy 

for the index value, they cannot serve as 

a proxy for the settlement value on the 

expiration date for the options. This is 

because the futures pricing is intended 


sradovich on DSK3GMQ082PROD with NOTICES
31804 Federal Register / Vol. 83, No. 131 / Monday, July 9, 2018 / Notices 

9Cboe Options Rule 24.9(a)(4). 

10 15 U.S.C. 78s(b)(3)(A). 

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 requirement. 

12 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(7). 

2 17 CFR 240.19b–7. 

to represent the then-current index 

value, but does not incorporate the 

closing prices of the components that 

will be used to determine the settlement 

value. This creates risk for MarketMakers and other liquidity providers, as 

they have no data they can use to price 

the expiring options based on the 

ultimate settlement value. This may 

result in trades at prices inconsistent 

with the settlement value of those 

options. The proposed rule change 

removes impediments to and perfects 

the mechanism of a free and open 

market by eliminating this pricing risk 

for liquidity providers on the last 

trading day of expiring series in these 

products. The Exchange believes this 

may encourage additional liquidity 

providers to participate on the last 

trading of expiring series, which may 

provide more competitive pricing and 

additional trading opportunities for 

expiring series, and ultimately benefits 

investors. 

Other options stop trading on the 

business day preceding expiration. For 

example, the last day of trading for nonvolatility a.m.-settled index options is 

the business day preceding the 

expiration date.9

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 will apply to all 

market participants that trade EAFE and 

EM options. As discussed above, the 

proposed rule change may eliminate a 

pricing risk for Market-Makers and other 

liquidity providers, which may provide 

more competitive pricing and additional 

trading opportunities for expiring series 

and ultimately benefit investors. The 

proposed rule change applies to EAFE 

and EM options, which only trade on 

Cboe Options. Other options stop 

trading on the business day preceding 

expiration. 

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: 

A. Significantly affect the protection 

of investors or the public interest; 

B. impose any significant burden on 

competition; and 

C. 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 10 and Rule 19b–4(f)(6) 11

thereunder. 

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall 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 rule-comments@

sec.gov. Please include File Number SR– 

CBOE–2018–048 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–2018–048. 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–2018–048 and 

should be submitted on or before July 

30, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–14548 Filed 7–6–18; 8:45 am] 

BILLING CODE P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83589; File No. SR–NFA– 

2018–03] 

Self-Regulatory Organizations; 

National Futures Association; Notice 

of Filing and Immediate Effectiveness 

of Proposed Change to the Interpretive 

Notice to NFA Compliance Rule 2– 

30(b): Risk Disclosure Statement for 

Security Futures Contracts 

July 3, 2018. 

Pursuant to Section 19(b)(7) of the 

Securities Exchange Act of 1934 

(‘‘Exchange Act’’),1 and Rule 19b–7 

under the Exchange Act 2 notice is 

hereby given that on June 19, 2018, 

National Futures Association (‘‘NFA’’) 

filed with the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘Commission’’) 

the proposed rule change described in 

Items I, II, and III below, which Items 

have been prepared by NFA. The 

Commission is publishing this notice to 


sradovich on DSK3GMQ082PROD with NOTICES