Federal Register / Vol. 80, No. 14 / Thursday, January 22, 2015 / Notices 3267 

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). 

5 Securities Exchange Act Release No. 34–72839 

(August 13, 2014), 79 FR 49123 (August 19, 2014) 

(Approval Order) (SR–CBOE–2014–040). 

6 Rule 6.53(y) provides that an order is tied to 

stock if, at the time the Trading Permit Holder 

representing the order on the Exchange receives the 

order (if the order is a customer order) or initiates 

the order (if the order is a proprietary order), has 

knowledge that the order is coupled with an 

order(s) for the underlying stock or a security 

convertible into the underlying stock (‘‘convertible 

security’’ and, together with underlying stock, 

‘‘non-option’’). 

7 See letter to Elizabeth M. Murphy, Secretary, 

Commission, from Laura G. Dickman, Senior 

Attorney, CBOE, dated August 6, 2014 (‘‘CBOE 

Letter II’’) at 2. 

8 SR–CBOE–2014–040 was approved on August 

13, 2014, but the implementation date was not 

announced until December 10, 2014. 

9 See CBOE Regulatory Circular RG14–185— 

Session on December 19, 2014 Regarding Tied to 

Stock Order Marking and Reporting Requirements 

(December 17, 2014). 

ESTIMATE OF ANNUAL RESPONDENT BURDEN

Form No. Annual responses Time 

(minutes) Burden (hours) 

G–19L ........................................................................................................................ 300 15 75 

Total .................................................................................................................... 300 .............................. 75 

Additional Information or Comments: 

To request more information or to 

obtain a copy of the information 

collection justification, forms, and/or 

supporting material, contact Dana 

Hickman at (312) 751–4981 or 

Dana.Hickman@RRB.GOV. Comments 

regarding the information collection 

should be addressed to Charles 

Mierzwa, Railroad Retirement Board, 

844 North Rush Street, Chicago, Illinois 

60611–2092 or emailed to 

Charles.Mierzwa@RRB.GOV. Written 

comments should be received within 60 

days of this notice. 

Charles Mierzwa, 

Chief of Information Resources Management. 

[FR Doc. 2015–00980 Filed 1–21–15; 8:45 am] 

BILLING CODE 7905–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74067; File No. SR–CBOE– 

2015–004] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Delay the 

Implementation Date of Rule Change 

SR–CBOE–2014–040 

January 15, 2015. 

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 January 7, 

2015, Chicago Board Options Exchange, 

Incorporated (the ‘‘Exchange’’ or 

‘‘CBOE’’) 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 ‘‘noncontroversial’’ 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of the Substance 

of the Proposed Rule Change 

The Exchange proposes to delay the 

implementation date of rule change SR– 

CBOE–2014–040. There is no proposed 

change to the rule language. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

(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 

On August 13, 2014, CBOE Rules 

6.53(y) and 15.2A were approved by the 

Securities Exchange Commission (SR– 

CBOE–2014–040).5 Rule 6.53(y) added a 

definition of a tied to stock order.6 Rule 

15.2A requires, among other things, that 

each Trading Permit Holder, (‘‘TPH’’), 

on the business day following the order 

execution date, report to the Exchange 

certain information regarding the 

executed stock or convertible security 

legs of Qualified Contingent Cross 

(‘‘QCC’’) orders, stock-option orders and 

other Tied to Stock Orders that the TPH 

executed on the Exchange that trading 

day. CBOE stated that it would consider 

feedback from TPHs regarding the 

timing of the implementation date of 

SR–CBOE–2014–040.7 Based on that 

feedback, the Exchange seeks to extend 

the implementation date of SR–CBOE– 

2014–040. 

Pursuant to SR–CBOE–2014–040, the 

Exchange issued CBOE Regulatory 

Circular RG14–171 on December 10, 

2014, to announce the implementation 

date of Rules 6.53(y) and 15.2A. 

However, SR–CBOE–2014–040 required 

the Exchange to announce the 

implementation date no later than 90 

days following the effective date of the 

filing (i.e., by November 12, 2014).8

Therefore, even though the rule filing 

was approved on August 13, 2014, TPHs 

were unable to fully assess the impact 

of the rule filing until RG14–171 was 

issued on December 10, 2014. In 

addition, the CBOE Regulatory Division 

held a session with TPHs on December 

19, 2014, to discuss the implementation 

of Rules 6.53(y) and 15.2A.9 TPHs 

requested clarity regarding several 

aspects of Rules 6.53(y) and 15.2A; 

however, several issues remain 

outstanding. Furthermore, TPHs 

expressed their inability to plan 

technological modifications without 

further clarity. Although the Exchange 

plans to hold future training sessions, 

the Exchange does not believe TPHs are 

in a position to comply with the 

requirements of Rules 6.53(y) and 15.2A 

by the current implementation date of 

February 9, 2015. Therefore, the 

Exchange seeks to extend the 


tkelley on DSK3SPTVN1PROD with NOTICES
3268 Federal Register / Vol. 80, No. 14 / Thursday, January 22, 2015 / Notices 

10 15 U.S.C. 78f(b). 

11 15 U.S.C. 78f(b)(5). 

12 Id. 

13 15 U.S.C. 78s(b)(3)(A). 

14 17 CFR 240.19b–4(f)(6). 15 17 CFR 200.30–3(a)(12). 

implementation date of SR–CBOE– 

2014–040. 

The Exchange will announce the 

implementation date of the proposed 

rule in a Regulatory Circular to be 

published no later than 90 days 

following the effective date of this filing. 

The implementation date will be no 

later than 180 days following the 

effective date of this filing. 

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. 

In particular, the Exchange believes 

Rules 6.53(y) and 15.2A will aid the 

Exchange’s efforts to prevent fraudulent 

and manipulate acts and practice with 

respect to tied to stock orders, because 

it will improve the Exchange’s ability to 

tie executed non-option legs to the 

applicable option orders that were 

separately submitted for execution. 

Additionally, the Exchange believes the 

data provided pursuant to Rules 6.53(y) 

and 15.2A will help to remove 

impediments to and perfect the 

mechanism of a free and open market, 

but only if TPHs have a better 

understanding of their obligations 

because a better understanding is likely 

to lead to more accurate data, which 

will permit CBOE to more efficiently 

and effectively conduct its regulatory 

surveillance. Therefore, the Exchange 

believes that if Rules 6.53(y) and 15.2A 

is implemented on February 9, 2015, 

TPHs and CBOE will be negatively 

impacted. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CBOE 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. 

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 13 and Rule 19b–4(f)(6) 14

thereunder. At any time within 60 days 

of the filing of the proposed rule change, 

the Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission will institute proceedings 

to determine whether the proposed rule 

change should be approved or 

disapproved. 

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–2015–004 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–2015–004. 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 Web site (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 Web site viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE., 

Washington, DC 20549–1090 on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of such filing 

also will be available for inspection and 

copying at the principal offices of the 

Exchange. All comments received will 

be posted without change; the 

Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–CBOE– 

2015–004, and should be submitted on 

or before February 12, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–00968 Filed 1–21–15; 8:45 am] 

BILLING CODE 8011–01–P 


tkelley on DSK3SPTVN1PROD with NOTICES