Federal Register / Vol. 80, No. 46 / Tuesday, March 10, 2015 / Notices 12671 

24 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

a Discretionary Range instruction, 

including the discretion of an order 

with a Non-Displayed instruction more 

aggressive than the midpoint of the 

NBBO to its limit price, is intended to 

reflect the relatively passive nature of 

orders with a Discretionary Range. The 

Exchange believes it is reasonable that 

an order with a Discretionary Range 

instruction or a Non-Displayed 

instruction might temporarily become 

not executable at certain prices because 

such prices are more aggressive than 

their ranked price (i.e., higher prices for 

orders to buy or lower prices for orders 

to sell). Further, to the extent a User 

would prefer an execution at more 

aggressive price levels, such User could 

simply choose other order type 

instructions that would increase the 

likelihood of execution at these prices. 

Finally, the Exchange believes that its 

proposal to re-locate and re-word the 

Discretionary Range instruction 

reference within Rule 11.8(b), related to 

Limit Orders, is consistent with the Act 

because the change will correct an error 

within the Exchange’s rules and prevent 

potential confusion regarding the ability 

to combine a Discretionary Range 

instruction with a Post Only instruction. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule changes will result in 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed rule changes are not designed 

to address any competitive issue but 

rather to add specificity and clarity to 

Exchange rules, thus providing greater 

transparency regarding the operation of 

the System. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange has neither solicited 

nor received written comments on the 

proposed rule changes. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the Exchange consents, 

the Commission will: (a) By order 

approve or disapprove such proposed 

rule change, or (b) institute proceedings 

to determine whether the proposed rule 

change should be 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, as modified by Amendment No. 

1, 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– 

EDGX–2015–08 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–EDGX–2015–08. 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, 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; 

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–EDGX– 

2015–08 and should be submitted on or 

before March 31, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.24

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–05485 Filed 3–9–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74438; File No. SR–CBOE– 

2015–022] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing of a 

Proposed Rule Change Related to 

Equipment and Communication on the 

Exchange’s Trading Floor 

March 4, 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 February 

20, 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 

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 seeks to amend its rules 

related to equipment and 

communication on the Exchange’s 

trading floor 

(additions are italicized; deletions are 

[bracketed]) 

* * * * * 

Chicago Board Options Exchange, 

Incorporated Rules 

* * * * * 

Rule 6.23. [Trading Permit Holder Wires 

From Floor] Equipment and 

Communications on the Trading Floor 

(a) Subject to the requirements of this 

Rule Trading Permit Holders may use 

any communication device (e.g., any 

hardware or software related to a phone, 

system or other device, including an 

instant messaging system, email system 

or similar device) on the floor of the 

Exchange and in any trading crowd of 

the Exchange. The Exchange reserves 

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12672 Federal Register / Vol. 80, No. 46 / Tuesday, March 10, 2015 / Notices 

the right to designate certain portions of 

this rule as not applicable to certain 

classes on a class by class basis. 

(b) The Exchange may deny, limit or 

revoke the use of any communication 

device whenever it determines that use 

of such communication device: (1) 

interferes with the normal operation of 

the Exchange’s own systems or facilities 

or with the Exchange’s regulatory 

duties, (2) is inconsistent with the public 

interest, the protection of investors or 

just and equitable principles of trade, or 

(3) interferes with the obligations of a 

Trading Permit Holder to fulfill its 

duties under, or is used to facilitate any 

violation of, the Securities Exchange Act 

or rules thereunder, or Exchange rules. 

(c) Any communication device may be 

used on the floor of the Exchange and 

in any trading crowd of the Exchange to 

receive orders, provided that audit trail 

and record retention requirements of the 

Exchange are met; however, no person 

in a trading crowd or on the floor of the 

Exchange may use any communication 

device for the purpose of recording 

activities in the trading crowd or 

maintaining an open line of continuous 

communication whereby a nonassociated person not located in the 

trading crowd may continuously 

monitor the activities in the trading 

crowd. This prohibition covers digital 

recorders, intercoms, walkie-talkies and 

any similar devices. 

(d) After providing notice to an 

affected Trading Permit Holder and 

complying with applicable laws, the 

Exchange may provide for the recording 

of any telephone line on the floor of the 

Exchange or may require Trading Permit 

Holders at any time to provide for the 

recording of a fixed phone line on the 

floor of the Exchange. Trading Permit 

Holders, and their clerks, using the 

telephones consent to the Exchange 

recording any telephone or line. 

(e) Trading Permit Holders may not 

use communication devices to 

disseminate quotes and/or last sale 

reports originating on the floor of the 

Exchange in any manner that would 

serve to provide a continuous or 

running state of the market for any 

particular series or class of options over 

any period of time; provided, however, 

that an associated person of a Trading 

Permit Holder on the floor of the 

Exchange may use a communication 

device to communicate quotes that have 

been disseminated pursuant to Rule 

6.43 and/or last sale reports to other 

associated persons of the same Trading 

Permit Holder business unit. An 

associated person of a Trading Permit 

Holder may also use a communications 

device to communicate an occasional, 

specific quote that has been 

disseminated pursuant to Rule 6.43 or 

last sale report to a person who is not 

an associated person of the same 

Trading Permit Holder. 

(f) Use of any communications device 

for order routing or handling must 

comply with all applicable laws, rules, 

policies and procedures of the Securities 

and Exchange Commission and the 

Exchange including related to record 

retention and audit trail requirements. 

Orders must be systemized using 

Exchange systems or proprietary 

systems approved by the Exchange in 

accordance with Rule 6.24. 

(g) Trading Permit Holders must 

maintain records of the use of 

communication devices, including, but 

not limited to, logs of calls placed; 

emails; and chats, for a period of not 

less than three years, the first two years 

in an easily accessible place. The 

Exchange reserves the right to inspect 

such records pursuant to Rule 17.2 

(h) The Exchange may designate, via 

circular, specific communication 

devices that will not be permitted on the 

floor of the Exchange or Exchange 

trading crowds. In addition, the 

Exchange may designate other 

operational requirements regarding the 

installation of any communication 

devices via circular. 

[(a) No Trading Permit Holder shall 

establish or maintain any telephone or 

other wire communications between his 

or its office and the Exchange without 

prior approval by the Exchange. The 

Exchange may direct discontinuance of 

any communication facility terminating 

on the floor of the Exchange. 

(b) Equity Option Telephone Policy. 

Persons in the equity option trading 

crowds (including DPM crowds which 

trade equity options) may have access to 

outside telephone lines and may receive 

telephone orders directly at equity 

options posts from locations outside the 

Exchange, subject to certain 

requirements. The Exchange will review 

and may approve any applications to 

install or to use telephones in the equity 

option crowds. 

(1) Requirements and conditions that 

apply to the use of telephone services at 

the equity option posts shall include the 

following: 

(A) Only those quotations that have 

been publicly disseminated pursuant to 

Rule 6.43 may be provided over 

telephones at the post. 

(B) Trading Permit Holders may give 

their clerks their PIN access code. 

Although both Trading Permit Holders 

and clerks may use telephones, Trading 

Permit Holders will have priority. Each 

Trading Permit Holder will be 

responsible for all calls made using that 

Trading Permit Holder’s PIN access 

code. 

(C) Clerks will not be permitted to 

establish a base of operation utilizing 

general use telephones at the equity 

option posts. This means, for example, 

that a clerk may not monopolize the use 

of a telephone receiver on a telephone 

that has multiple lines if all of those 

lines are not dedicated to the Trading 

Permit Holder for whom the clerk 

works. 

(D) The Exchange may provide for the 

taping of any telephone line into the 

equity option posts or may require 

Trading Permit Holders to provide for 

the tape recording of a dedicated line at 

the equity option posts at any time. 

Trading Permit Holders and their clerks 

using the telephones consent to the 

Exchange tape recording any telephone 

or line. 

(E) The telephones may be used for 

voice service only, unless they have 

been specifically approved for other 

uses. 

(F) The Exchange may prohibit the 

use of any telephone technology that 

interferes with the normal operation of 

the Exchange’s own systems or facilities 

or that the Exchange determines 

interferes with its regulatory duties. 

(G) Orders transmitted by registered 

Exchange market-makers may be 

entered over the outside telephone lines 

directly to the equity option posts. All 

other orders may be entered over the 

outside telephone lines to the equity 

option posts only during outgoing 

telephone calls that are initiated at the 

equity option posts. 

(H) Only those individuals that are 

properly qualified in accordance with 

Chapter IX of the Rules of the Exchange, 

and all other applicable rules and 

regulations, may accept orders from 

public customers pursuant to this Rule. 

. . . Interpretations and Policies: 

.01 A Trading Permit Holder or TPH 

organization which has been granted 

approval of any means of 

communication under this rule shall be 

responsible for assuring compliance 

with all Exchange rules and 

requirements in connection with any 

business conducted by means of such 

electronic or telephonic 

communication.] 

* * * * * 

The text of the proposed rule change 

is also 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. 

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Federal Register / Vol. 80, No. 46 / Tuesday, March 10, 2015 / Notices 12673 

3As proposed, ‘‘communication device’’ will 

include ‘‘e.g., any hardware or software related to 

a phone, system or other device, including an 

instant messaging system, email system or similar 

device[.]’’ 4Although the Exchange seeks to replace Rule 

6.23 in its entirety, portions of the current rule are 

included in proposed Rule 6.23. The relevant 

holdover language is identified where applicable. 

5Many of the provisions of proposed Rule 6.23 

are modeled after NYSE Amex LLC (‘‘Amex’’) Rule 

902NY(i)—Telephones on the Trading Floor and 

NYSE Arca, Inc. (‘‘Arca’’) Rule 6.(h) [sic]— 

Telephones on the Options Floor. 

6See CBOE Rule 6.23(a). 

7See supra note 1 [sic]. 

8Proposed Rule 6.23(c) [sic] is similar to Amex 

Rule 902NY(i)(6) and Arca Rule 6.2(h)(6). 

9This language remains from the current CBOE 

Rule 6.23. See CBOE Rule 6.23(b)(1)(F). 

10See CBOE Rule 6.23(a). 

11See Amex Rule 902NY(i)(1) and Arca Rule 

6.2(h)(1). 

12See CBOE Regulatory Circular RG14–162 

(November 19, 2014). 

13See CBOE Regulatory Circular RG10–20 

(January 29, 2010). 

14Proposed Rule 6.23(c) is similar to Amex Rule 

902NY(i)(2) and Arca Rule 6.2(h)(2). 

15This language remains from the current CBOE 

Rule 6.23. See CBOE Rule 6.23 (b)(1)(D). 

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 Exchange is proposing to amend 

its rules regarding equipment and 

communication on the Exchange trading 

floor. More specifically, the Exchange is 

proposing to delete the current rule on 

the topic, Exchange Rule 6.23, and 

introduce more relevant rules governing 

the use of communication devices 3 on 

the Exchange trading floor.4 Exchange 

and Trading Permit Holder (‘‘TPH’’) 

systems have become much more 

electronic since the adoption of CBOE 

Rule 6.23; however, the rule has not 

been updated to reflect the electronic 

environment. The Exchange believes it 

is in the interest of TPHs to allow 

electronic communications to and from 

the Exchange trading floor and that 

these amendments will eliminate 

confusion that may arise from outdated 

Exchange rules. As such, the Exchange 

believes that eliminating the current 

rule in its entirety and promulgating 

language that contemplates modern 

rules is appropriate.5

First, Rule 6.23 is currently applicable 

to ‘‘telephone or other wire 

communications.’’ 6 Proposed Rule 

6.23(a) expands the applicability of Rule 

6.23 and provides that TPHs may use 

any communication device 7 on the 

Exchange trading floor and in any 

Exchange trading crowd subject to the 

restrictions in proposed Rule 6.23. The 

Exchange is also proposing to apply 

these restrictions on a class by class 

basis. The Exchange believes this 

discretion is appropriate as different 

classes of options on the trading floor 

behave differently, and, as such, 

different means of communication 

might be more appropriate in one 

options class but not in another. 

Next, proposed Rule 6.23(b) 

specifically states that the Exchange will 

retain the authority to deny, limit or 

revoke the use of any communication 

device.8 Under the proposed rule, the 

Exchange may take such actions 

whenever it determines that use of such 

communication device: (1) Interferes 

with the normal operation of the 

Exchange’s own systems or facilities or 

with the Exchange’s regulatory duties,9

(2) is inconsistent with the public 

interest, the protection of investors or 

just and equitable principles of trade, or 

(3) interferes with the obligations of a 

TPH to fulfill its duties under, or is used 

to facilitate any violation of, the 

Securities Exchange Act of 1934 (‘‘the 

Act’’) or rules thereunder, or the 

Exchange rules. This authorization will 

allow the Exchange to regulate the 

equipment and communications on the 

Exchange trading floor and in the 

Exchange trading crowds to ensure they 

are not disruptive to the operation of the 

Exchange or in violation of the Act. The 

Exchange believes this will allow the 

Exchange to better protect investors and 

the integrity of the market. The 

Exchange notes, however, that current 

Rule 6.23(a) requires TPHs to receive 

prior approval from the Exchange before 

establishing or maintaining a telephone 

or other wire communications.10 In 

addition, the Exchange recognizes that 

AMEX and ARCA rules require the 

registration of all new telephones 11 and 

approval prior to the use of a 

communication device other than a 

telephone. The Exchange believes the 

combination of the record retention 

requirements of proposed Rule 6.23(g) 

and the power to revoke the use of a 

communication device pursuant to 

proposed Rule 6.23(b) negates the 

necessity for prior approval and 

registration. If an issue with a particular 

device is discovered, the Exchange will 

work with TPHs to ensure the devices 

are no longer utilized. 

Next, proposed Rule 6.23(c) codifies 

the current policy that allows any 

communication device to be utilized to 

receive orders in and out of the trading 

crowd, provided that audit trail and 

record retention requirements of the 

Exchange are met.12 Formerly, CBOE 

Regulatory Circular RG10–20 prohibited 

TPH’s [sic] from receiving orders in the 

trading crowd via instant messaging or 

email; 13 however, TPHs were not 

restricted from receiving orders via 

instant messaging and email while not 

in a trading crowd. The Exchange 

believes the difference caused inequity 

between TPHs because TPHs near the 

edge of the trading crowd can more 

quickly correspond with their clerks 

and trading desks that are outside of the 

trading crowd. The Exchange believes 

that removing the restriction on 

receiving orders via IM and email levels 

the playing field in the trading crowds 

and reflects the electronic nature of the 

current marketplace. In addition, 

proposed Rule 6.23(c) specifically 

prohibits the use of any communication 

device to record activities in the trading 

crowd or to maintain an open line of 

continuous communication that would 

allow a non-associated person off of the 

Exchange floor to continuously monitor 

the activities in the trading crowd. As 

proposed, this prohibition covers digital 

recorders, intercoms, walkie-talkies and 

any similar devices. The addition of this 

text will preserve the integrity of the 

Exchange trading floor while monitoring 

TPHs to ensure they have the required 

authorization to operate on the 

Exchange trading floor should that be 

their intent.14

Further, proposed Rule 6.23(d) 

specifies that, after providing notice to 

an affected Trading Permit Holder and 

complying with the applicable laws, the 

Exchange may provide for the recording 

of any telephone line on the floor of the 

Exchange or require TPHs to provide for 

the recording of a fixed phone line on 

the floor of the Exchange, and that TPHs 

utilizing telephones consent to the 

Exchange recording any telephone or 

line.15 This added provision will not 

require but allow the Exchange to record 

any communications via telephone 

connections to the trading floor if a 

situation where [sic] to arise where this 

may be necessary. In addition, this 

proposed provision would allow the 

Exchange to provide necessary 

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16Proposed Rule 6.23(d) is similar to Amex Rule 

902NY(i)(3)(C) and Arca Rule 6.2(h)(3)(C). 17Proposed Rule 6.23(e) referring to quotes 

disseminated pursuant to Rule 6.43 is similar to 

Amex Rule 902NY(i)(3)(A) and Arca Rule 

6.2(h)(3)(A). See CBOE Rule 6.43—Manner of 

Bidding and Offering. 18Orders must be systematized in accordance 

with Rule 6.24 (Required Order Information). 

Generally, subject to certain exceptions, each order, 

cancellation of, or change to an order transmitted 

to the Exchange must be ‘‘systematized,’’ in a 

format approved by the Exchange, either before it 

is sent to the Exchange or upon receipt on the floor 

of the Exchange. An order is systematized if: (i) The 

order is sent electronically to the Exchange; or (ii) 

the order that is sent to the Exchange nonelectronically (e.g., telephone orders) is input 

electronically into the Exchange’s systems 

contemporaneously upon receipt on the Exchange, 

and prior to representation of the order. 

19Proposed Rule 6.23(g) is similar to Amex Rule 

902NY(i)(5) and Arca NYSE Arca Rule 6.2(h)(5). 

20CBOE Rule 17.2 (b)—Requirements to Furnish 

Information. Rule 17.2(b) requires TPHs and 

persons associated with TPHs to, among other 

things, ‘‘furnish documentary materials and other 

information requested by the Exchange in 

connection with (i) an investigation initiated 

pursuant to paragraph (a) of this Rule[.]’’ 

21 17 CFR 240.17a-4. 

22 15 U.S.C. 78f(b). 

23 15 U.S.C. 78f(b)(5). 

24 Id. 

equipment for the recording of 

communications on the Exchange 

trading floor.16

Next, proposed Rule 6.23(e) prohibits 

the use of communication devices to 

disseminate quotes and/or last sale 

reports originating on the Exchange 

trading floor in any manner that would 

serve to provide a continuous or 

running state of the market; however, 

the proposed rule specifically states 

that, ‘‘an associated person of a TPH 

may use a communications device to 

communicate quotes that have been 

disseminated pursuant to Rule 6.43 and/ 

or last sale reports to other associated 

persons of the same TPH business unit.’’ 

Further, as proposed, an associated 

person of a TPH may use a 

communications device to communicate 

an ‘‘occasional, specific, quote that has 

been disseminated pursuant to Rule 

6.43 17 or last sale report or quote to a 

person who is not an associated person 

of the same TPH.’’ The Exchange 

believes this proposed addition is 

necessary to allow the use of instant 

messaging or email as the industry has 

grown to become more and more reliant 

upon technology. The Exchange, 

however, also thinks it is important that 

any communications made within TPH 

organizations should be within the same 

business unit so that TPHs are not 

abusing the privilege and allowing for 

communication of the activity on the 

Exchange trading floor to be 

disseminated to unrelated areas of the 

TPH. 

Next, proposed Rule 6.23(f) requires 

that any use of any communications 

device on the trading floor shall comply 

with applicable laws, rules, policies, 

and procedures of the Commission and 

Exchange including all record retention 

and audit trail requirements. Proposed 

Rule 6.23(f) would also require that 

orders are systemized using Exchange 

systems or proprietary systems 

approved by the Exchange in 

accordance with Exchange Rule 6.24.18

This proposed addition would ensure 

that any communications device on the 

Exchange’s trading floor or in the 

Exchange trading crowds will follow 

any and all other applicable statues [sic] 

including the Act along with ensure 

[sic] that orders are properly 

systematized. In addition, proposed 

Rule 6.23(f) will allow misconduct to be 

investigated if regulatory issues arise 

after the adoption of a new 

communication device. 

Next, proposed Rule 6.23(g) requires 

TPHs to maintain records related to the 

‘‘use of communication devices, 

including, but not limited to, logs of 

calls placed; emails; and chats, for a 

period of not less than three years, the 

first two years in an easily accessible 

place.’’ Although similar to Amex and 

Arca Rules on the subject,19 the 

Exchange added language referring to 

emails and chats to reflect the current 

electronic environment. In addition, 

proposed rule 6.23(g) states that ‘‘[t]he 

Exchange reserves the right to inspect 

such records pursuant to Rule 17.2.’’ 20

As previously noted, the proposed Rule 

will allow misconduct to be investigated 

if regulatory issues arise after the 

adoption of a new communication 

device. This requirement is consistent 

with the retention period of Securities 

and Exchange Commission Rule 17a– 

4.21

Finally, proposed Rule 6.23(h) 

authorizes the Exchange to designate 

more specific communication devices 

that will not be permitted on the 

Exchange trading floor or other 

operational requirements via circular. 

Given the propensity for technology to 

continue to evolve, the Exchange 

believes this proposed text will allow 

the Exchange to change the exact 

requirements from time to time as 

needed while continuing to provide 

TPHs specifications on the allowed 

technology and communication 

mechanism. 

The Exchange will announce the 

implementation date of the proposed 

rule change in a Regulatory Circular to 

be published no later than 30 days 

following the approval date. The 

implementation date will be no later 

than 60 days following the approval of 

the proposed changes. 

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.22 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 23 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) 24 requirement that 

the rules of an exchange not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

In particular, the Exchange does not 

believe the proposed changes are 

unfairly discriminatory as they are 

applied to all TPHs trading on the 

Exchange trading floor, a similarly 

situated group, equally. In addition, the 

Exchange believes the proposed changes 

[sic] designed to prevent fraudulent and 

manipulative acts and practices because 

they are more appropriately designed to 

monitor the equipment and 

communications on a modern trading 

floor. Without the proposed changes, 

the current Exchange rules do not 

adequately address the relevant 

communication tools. Finally, the 

Exchange believes that the proposed 

rules intend to foster cooperation and 

coordination by introducing new means 

of communication to the Exchange 

trading floor. Finally, the Exchange 

believes that the proposed changes 

protect investors and the public interest 

by ensuring that all equipment and 

communication on the Exchange trading 

floor will adhere to all other applicable 

statutes and the Act. 

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. More 

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Federal Register / Vol. 80, No. 46 / Tuesday, March 10, 2015 / Notices 12675 

25 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

specifically, the Exchange does not 

believe that the proposed rule changes 

will impose any [sic] intramarket 

competition because it [sic] will be 

applicable to all TPHs trading on the 

Exchange trading floor. In addition, the 

Exchange does not believe the proposed 

changes will impose any intermarket 

burden because the Exchange trading 

floor will operate in a similar manner 

only with more relevant equipment and 

communication requirements. 

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 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the Exchange consents, the Commission 

will: 

A. By order approve or disapprove 

such proposed rule change, or 

B. institute proceedings to determine 

whether the proposed rule change 

should be 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. In 

particular, the Commission invites 

comment on CBOE’s proposal to no 

longer require a member to obtain prior 

approval from CBOE before using a new 

communication device on the CBOE 

floor and instead adopt the open-ended 

approach in proposed paragraph (c) of 

Rule 6.23 under which a member would 

be permitted to use any communication 

device unless specifically otherwise 

prohibited and would not be required to 

seek Exchange approval or otherwise 

register the communication devices 

with the Exchange in advance of using 

them on the CBOE floor. 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–2015–022 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–CBOE–2015–022. 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 on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of such 

filing also will be available for 

inspection and copying at the principal 

office 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– 

2015–022, and should be submitted on 

or before March 31, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.25

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–05484 Filed 3–9–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74430; File No. SR–CBOE– 

2015–023] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing of 

Proposed Rule Change To List and 

Trade Options on the MSCI EAFE Index 

and on the MSCI Emerging Markets 

Index 

March 4, 2015. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’ or ‘‘Exchange Act’’),1 and Rule 

19b–4 thereunder,2 notice is hereby 

given that on February 26, 2015, the 

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 

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 Substance of 

the Proposed Rule Change 

CBOE proposes to list and trade 

options that overlie the MSCI EAFE 

Index and the MSCI Emerging Markets 

Index (‘‘EAFE options’’ and ‘‘EM 

options’’). EAFE and EM options would 

be P.M., cash-settled contracts with 

European-style exercise. 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. 

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 

self-regulatory organization 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 those 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 parts of such 

statements. 

mstockstill on DSK4VPTVN1PROD with NOTICES