Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Notices 1639 

6 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). 

change has made ISE more attractive or 

favorable. Finally, all options exchanges 

are free to compete by listing and 

trading their own broad-based index 

options with weekly or end of month 

expirations. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

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 shall: (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 solicits 

comment on the following: 

• Will the pilot data contemplated in 

this notice allow the Commission to 

determine whether the weekly and 

monthly PM-settled options proposed in 

this filing have adverse effects on 

market volatility and the operation of 

fair and orderly markets in the 

underlying cash market? 

• Will the pilot data contemplated in 

this notice allow the Commission to 

determine whether the weekly and 

monthly PM-settled options proposed in 

this filing have adverse effects on 

liquidity, volume, open interest, trading 

patterns, and volatility in other option 

contracts with standard expirations? 

• Will the pilot data contemplated in 

this notice allow the Commission to 

determine whether the weekly and 

monthly PM-settled options proposed in 

this filing have adverse effects on index 

price volatility? 

• Will the weekly and monthly PMsettled options proposed in this filing 

affect the market for options contracts 

with nonstandard expirations offered by 

CBOE and Phlx? If so, how? In addition, 

how would this proposal affect the data 

and information related to nonstandard 

expirations that are provided by CBOE 

and Phlx? 

• What concerns do market 

participants have related to the 

proposed Nonstandard Expirations Pilot 

Program? If any, please be specific in 

describing your concerns. If any, will 

the pilot data contemplated in this 

notice allow the Commission to 

examine whether the concerns are 

valid? 

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– 

ISE–2017–111 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–ISE–2017–111. 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–ISE–2017–111, and should 

be submitted on or before February 2, 

2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–00409 Filed 1–11–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82459; File No. SR–CBOE– 

2017–084] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Rule 6.13, 

CBOE Hybrid System Automatic 

Execution Feature 

January 8, 2018. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on December 

27, 2017, 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The ‘‘Exchange proposes to amend its 

rules related to stop orders. 

(Additions are in Italics; Deletions are 

[Bracketed]) 

* * * * * 

Cboe Exchange, Inc. 

Rules 

* * * * * 

Rule 6.13. [CBOE]Cboe Options Hybrid 

System Automatic Execution Feature 

(a) No change. 

(b) Automatic Execution: Orders 

eligible for automatic execution through 

the Cboe Options Hybrid System may be 

automatically executed in accordance 


sradovich on DSK3GMQ082PROD with NOTICES
1640 Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Notices 

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

6 15 U.S.C. 78f(b)(5). 

7 Id. 

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

9 17 CFR 240.19b–4(f)(6). 

with the provisions of this Rule, Rule 

6.13A or 6.14A, as applicable. This 

section governs automatic executions 

and split-price automatic executions. 

The allocation of orders or quotes that 

automatically execute through the Cboe 

Options Hybrid System is governed by 

Rule 6.45. 

(i)–(vi) No change. 

(vii) Stop and Stop-Limit Orders. The 

System cancels a buy (sell) stop or stoplimit order if the Exchange best bid 

(offer) at the time the System receives 

the order is equal to or above (below) 

the stop price. 

(c) No change. 

* * * * * 

The text of the proposed rule change 

is also available on the Exchange’s 

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

AboutCBOE/ 

CBOELegalRegulatoryHome.aspx), at 

the Exchange’s Office of the Secretary, 

and at the Commission’s Public 

Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

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

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The proposed rule change amends 

Rule 6.13 to modify the automatic 

handling of stop and stop-limit orders. 

As defined in Rule 6.53(c), a stop order 

is a contingency order to buy or sell 

when the market for a particular option 

contract reaches a specified price on the 

Cboe Options floor. A stop order to buy 

becomes a market order when the 

option contract trades or is bid at or 

above the stop price on the Cboe 

Options floor. A stop order to sell 

becomes a market order when the 

option contract trades or is offered at or 

below the stop-limit price on the Cboe 

Options floor. A stop-limit order is a 

contingency order to buy or sell when 

the market for a particular option 

contract reaches a specified price. A 

stop order to buy becomes a limit order 

when the option contract trades or is bid 

at or above the stop-limit price. A stoplimit order to sell becomes a limit order 

when the option contract trades or is 

offered at or below the stop-limit price. 

The proposed rule change adds Rule 

6.13(b)(vii), which states the System 

cancels a buy (sell) stop or stop-limit 

order if the Exchange best bid (offer) 

(‘‘BBO’’) at the time the System receives 

the order is equal to or above (below) 

the stop price. The purpose of a stop or 

stop-limit order is for it to become a 

market or limit order, respectively, after 

the price in a series reaches the stop 

price. Therefore, there is an implication 

the submitting Trading Permit Holder 

intends for the order to not become a 

market or limit order, respectively, until 

after an amount of time passes and the 

series price changes. If the BBO is above 

or below, as applicable, the stop price 

when the System receives a stop or stoplimit order, the order converts 

immediately to a market or limit order, 

respectively. This is inconsistent with 

the purpose of the order and the 

intentions of the submitting Trading 

Permit Holder. The Exchange believes if 

a Trading Permit Holder submitted an 

order at such a price, there is a strong 

possibility the order was submitted at 

that price as an error by the Trading 

Permit Holder. Pursuant to the proposed 

rule change, the System will reject a 

stop or stop-limit order that would 

otherwise immediately convert to a 

market or limit order, respectively, 

based on the BBO, which is consistent 

with the definitions and purposes of 

these orders. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the Act 

and the rules and regulations 

thereunder applicable to the Exchange 

and, in particular, the requirements of 

Section 6(b) of the Act.5 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 6 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) 7 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 will protect investors and the 

public interest and maintain fair and 

orderly markets by mitigating potential 

risks associated with market 

participants entering stop and stop-limit 

orders at unintended prices, and risks 

associated with orders trading at prices 

that are potentially erroneous, which 

may likely have resulted from human or 

operational error. The proposed rule 

change is consistent with the definitions 

and purposes of stop and stop-limit 

orders. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed rule change will apply in the 

same manner to all stop and stop-limit 

orders Trading Permit Holders submit to 

the Exchange and will help prevent 

potentially erroneous executions, which 

benefits all market participants. Because 

pursuant to the proposed rule change 

the System will reject stop and stoplimit orders it receives under certain 

conditions, the proposed rule change 

will only impact stop and stop-limit 

orders Trading Permit Holders submit to 

the Exchange, based on quotes on the 

Exchange, and thus will have no impact 

on intermarket competition. 

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 

The Exchange has designated this rule 

filing as non-controversial under 

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

19b–4(f)(6) 9 thereunder. 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 

for 30 days from the date on which it 

was filed, or such shorter time as the 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Notices 1641 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3This filing was originally submitted on 

December 26, 2017 as SR–CBOE–2017–081. SR– 

CBOE–2017–081 was withdrawn on December 26, 

2017 and replaced by SR–CBOE–2017–082. SR– 

CBOE–2017–082 was withdrawn on December 26, 

2017 and replaced by this filing. 

Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act and Rule 19b– 

4(f)(6) 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–2017–084 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–2017–084. 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–2017–084 and 

should be submitted on or before 

February 2, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–00410 Filed 1–11–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82461; File No. SR–CBOE– 

2017–083] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend the Fees 

Schedule 

January 8, 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 December 

26, 2017, 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 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 

The Exchange proposes to amend its 

Fees Schedule. Footnotes 24 and 25 

describe the Market-Maker Trading 

Permit Sliding Scale and Floor Broker 

Trading Permit Sliding Scale programs, 

respectively. 

The text of the proposed rule change 

is also available on the Exchange’s 

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

AboutCBOE/ 

CBOELegalRegulatoryHome.aspx), at 

the Exchange’s Office of the Secretary, 

and at the Commission’s Public 

Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

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

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend its 

Fees Schedule. Footnotes 24 and 25 

describe the Market-Maker Trading 

Permit Sliding Scale and Floor Broker 

Trading Permit Sliding Scale programs, 

respectively.3 Each program requires a 

Trading Permit Holder to commit in 

advance to a specific tier that includes 

a minimum number of eligible MarketMaker Trading Permits or Floor Broker 

Trading Permits, as applicable, for each 

calendar. To do so, a Trading Permit 

Holder must notify the Registration 

Services Department by December 25th 

(or the preceding business day if the 

25th is not a business day) of the year 

prior to each year in which the Trading 

Permit Holder would like to commit to 

the sliding scale of the tier of eligible 

Trading Permits committed to by that 

Trading Permit Holder for that year. 

Generally, the Exchange issues a 

Regulatory Circular to remind Trading 

Permit Holders of this notification 

deadline, including a description of 

how Trading Permit Holders should 

notify the Registration Services 

Department. However, for the 2018 

sliding scale program, the Exchange was 

unable to issue a reminder until 

December 22, 2017, which is the 

business day prior to December 25, 

2017, and thus the notification deadline. 

To ensure Trading Permit Holders have 

sufficient time to provide notification to 

the Exchange regarding their tier 

commitments for 2018, the Exchange 


sradovich on DSK3GMQ082PROD with NOTICES