Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Notices 1643 

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

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

7 Id. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82457; File No. SR–C2– 

2017–033] 

Self-Regulatory Organizations; Cboe 

C2 Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change to Rule 6.12, Order and 

Quote Execution and Priority 

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 C2 Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘C2’’) 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 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 C2 Exchange, Inc. 

Rules 

* * * * * 

Rule 6.12. Order and Quote Execution 

and Priority 

System orders and quotes shall be 

executed consistent with the following 

provisions: 

(a)–(h) No change. 

(i) 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. 

* * * * * 

The text of the proposed rule change 

is also available on the Exchange’s 

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

AboutCBOE/CBOELegalRegulatory

Home.aspx), at the Exchange’s Office of 

the Secretary, and at the Commission’s 

Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

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

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The proposed rule change amends 

Rule 6.12 to modify the automatic 

handling of stop and stop-limit orders. 

As defined in Rule 6.10(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 

Exchange. 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 Exchange. 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 

Exchange. A stop-limit order is a 

contingency order to buy or sell when 

the market for a particular option 

contract reaches a specified price on the 

Exchange. A stop order to buy becomes 

a limit order when the option contract 

trades or is bid at or above the stop-limit 

price on the Exchange. A stop-limit 

order to sell becomes a limit order when 

the option contract trades or is offered 

at or below the stop-limit price on the 

Exchange. 

The proposed rule change adds Rule 

6.12(i), 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. 


sradovich on DSK3GMQ082PROD with NOTICES
1644 Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Notices 

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

9 17 CFR 240.19b–4(f)(6). 10 17 CFR 200.30–3(a)(12). 

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 

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– 

C2–2017–033 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–C2–2017–033. 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–C2–2017–033 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. 2018–00408 Filed 1–11–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Investment Company Act Release No. 

32965; File No. 812–14784] 

Harbor Funds and Harbor Capital 

Advisors, Inc. 

January 9, 2018. 

AGENCY: Securities and Exchange 

Commission (‘‘Commission’’). 

ACTION: Notice. 

Notice of an application for an order 

pursuant to: (a) Section 6(c) of the 

Investment Company Act of 1940 

(‘‘Act’’) granting an exemption from 

sections 18(f) and 21(b) of the Act; (b) 

section 12(d)(1)(J) of the Act granting an 

exemption from section 12(d)(1) of the 

Act; (c) sections 6(c) and 17(b) of the 

Act granting an exemption from sections 

17(a)(1), 17(a)(2) and 17(a)(3) of the Act; 

and (d) section 17(d) of the Act and rule 

17d–1 under the Act to permit certain 

joint arrangements and transactions. 

Applicants request an order that would 

permit certain registered open-end 

management investment companies to 

participate in a joint lending and 

borrowing facility. 

APPLICANTS: Harbor Funds, a Delaware 

statutory trust registered under the Act 

as an open-end management series 

investment company, and Harbor 

Capital Advisors, Inc. (the ‘‘Adviser’’), 

registered as an investment adviser 

under the Investment Advisers Act of 

1940. 

FILING DATES: The application was filed 

on June 13, 2017 and amended on 

November 15, 2017. 

HEARING OR NOTIFICATION OF HEARING: An 

order granting the requested relief will 

be issued unless the Commission orders 

a hearing. Interested persons may 

request a hearing by writing to the 

Commission’s Secretary and serving 

applicants with a copy of the request, 

personally or by mail. 

Hearing requests should be received 

by the Commission by 5:30 p.m. on 

February 2, 2018 and should be 

accompanied by proof of service on the 

applicants, in the form of an affidavit, 

or, for lawyers, a certificate of service. 

Pursuant to Rule 0–5 under the Act, 


sradovich on DSK3GMQ082PROD with NOTICES