3372 Federal Register / Vol. 83, No. 16 / Wednesday, January 24, 2018 / Notices 

4See Securities Exchange Act Release No. 82180 

(November 30, 2017), 82 FR 57632 (December 6, 

2017) (‘‘Notice’’). 

5See Letters to Brent J. Fields, Secretary, 

Commission, from Michael Kitlas, dated November 

30, 2017 (‘‘Kitlas Letter’’) and Jeffrey P. Mahoney, 

General Counsel, Council of Institutional Investors, 

dated December 20, 2017 (‘‘CII Letter’’). 

6 15 U.S.C. 78s(b)(2). 

7 Id. 

8 17 CFR 200.30–3(a)(31). 

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

2 17 CFR 240.19b–4. 

3The proposed rule change makes corresponding 

changes to the following rules to delete references 

to ROS and the rule proposed to be deleted: Rules 

6.6, 6.18, 6.25(b)(1), 6.73(c), 8.60(c)(7) and 

Interpretation and Policy .02, 21.11, 22.11, and 

24.13. 

4The proposed rule change makes corresponding 

changes to the following rules to delete references 

to ROS and the rule proposed to be deleted: Rules 

1.1(fff) and (ggg), 6.2, 6.6, 6.18, 6.25(b)(1), 8.60(c)(7) 

and Interpretation and Policy .02, 22.11, 24.13. 

Because the proposed rule change deletes both 

Rules 6.2 and 6.2A, the proposed rule change also 

renumbers Rule 6.2B to be Rule 6.2, and makes 

corresponding changes throughout the Rules. 

business combination. The proposed 

rule change was published for comment 

in the Federal Register on December 6, 

2017.4 The Commission received two 

comments on the proposal.5

Section 19(b)(2) of the Act 6 provides 

that within 45 days of the notice 

publication of the filing of a proposed 

rule change, or within such longer 

period up to 90 days as the Commission 

may designate if it finds such longer 

period to be appropriate and publishes 

its reasons for so finding, or as to which 

the self-regulatory organization 

consents, the Commission shall either 

approve the proposed rule change, 

disapprove the proposed rule change, or 

institute proceedings to determine 

whether the proposed rule change 

should be disapproved. The 45th day 

after publication of the notice for this 

proposed rule change is January 20, 

2018. The Commission is extending this 

45-day time period. 

The Commission finds it appropriate 

to designate a longer period within 

which to take action on the proposed 

rule change so that it has sufficient time 

to consider the proposal and the 

comment letters. Accordingly, the 

Commission, pursuant to Section 

19(b)(2) of the Act,7 designates March 6, 

2018, as the date by which the 

Commission shall either approve or 

disapprove, or institute proceedings to 

determine whether to disapprove, the 

proposed rule change (File No. SR– 

NYSE–2017–53). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–01208 Filed 1–23–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82529; File No. SR–CBOE– 

2018–003] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Delete Obsolete Rules 

January 18, 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 January 3, 

2018, Cboe Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘Cboe Options’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I and II 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 delete 

Rules that no longer apply to the 

Exchange and make other 

nonsubstantive changes to the Rules. 

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 purpose of this rule change is to 

delete Rules that no longer apply to the 

Exchange and to make other 

nonsubstantive changes to the Rules. 

Deletion of Rules 

The Exchange proposes to delete the 

following rules and chapters from its 

rulebook: 

• Rule 2.40—Market-Maker 

Surcharge for Brokerage. Rule 2.40 

operated as a pilot program until March 

30, 2000, at which time the program 

expired (and the Exchange did not 

request renewal). The Exchange does 

not impose a surcharge on MarketMaker transactions pursuant to this rule. 

Any fees and rebates applicable to any 

Market-Maker transactions are included 

in the Cboe Options Fees Schedule. 

• Rule 6.2—Trading Rotations. Rule 

6.2 states the Exchange may use the 

procedures described in current Rules 

6.2, 6.2A, or 6.2B to conduct trading 

rotations in all options listed on the 

Exchange. Currently, the Exchange only 

uses the procedures set forth in current 

Rule 6.2B to conduct trading rotations, 

and no longer conducts trading rotations 

pursuant to current Rule 6.2. Therefore, 

this provision no longer applies to 

trading on the Exchange.3

• Rule 6.2A—Rapid Opening System 

(‘‘ROS’’). The Exchange used ROS prior 

to open options prior to implementation 

of the Exchange’s Hybrid Trading 

System, which includes the Hybrid 3.0 

Platform. Currently, all options listed on 

the Exchange trade on its Exchange’s 

Hybrid Trading System. As stated in 

Rule 6.2A, ROS does not apply to series 

trading on the Hybrid Trading System, 

which open on the Cboe Options Hybrid 

Opening System (‘‘HOSS’’) (pursuant to 

Rule 6.2B). Therefore, Rule 6.2A no 

longer applies to any options listed for 

trading on the Exchange.4

• Rules 6.8—RAES Operations and 

6.9—Automatic ORS Order Execution 

Against Booked Orders. The Exchange’s 

Retail Automatic Execution System 

(‘‘RAES’’) was an automated execution 

system feature of the Exchange’s Order 

Routing System (‘‘ORS’’) operated by 

the Exchange and that provided 

automated order execution and 

reporting services for options. RAES and 

ORS are no longer used, as all options 


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5The proposed rule change makes corresponding 

changes to the following rules to delete references 

to RAES and ORS, change references from ORS to 

OHS, and the rules proposed to be deleted: Rules 

1.1(fff) and (ggg), 6.3, Interpretation and Policy .05, 

6.6(b) and (e) and Interpretation and Policy .01, 

6.7(b) (the Hybrid System includes OHS and the 

book), 6.8C (which the proposed rule change 

renumbers as 6.8), 6.13(a) and (c), 6.18, 8.7(b)(iii) 

and Interpretations and Policies .07 (which is being 

deleted in its entirety, as described below) .11(a) 

(the Exchange deleted the paragraph letter for 

current paragraph (b), as it will be the only 

paragraph in that Interpretation and Policy, as well 

as the introduction to that paragraph regarding its 

applicability to classes on the Hybrid System, 

because all classes are on the Hybrid System), 8.13, 

8.16, 8.51(c)(1)(a)(iii), 8.60(c)(7) (the proposed rule 

change renumbers provisions (8) through (10) as (7) 

through (9)) and Interpretation and Policy .02, 

8.85(a)(ix) (the proposed rule change renumbers 

subparagraphs (x) and (xi) as (ix) and (x), and 

deletes from current subparagraph (x) (proposed 

subparagraph (xi) the introduction to that paragraph 

regarding its applicability to classes on the Hybrid 

System, because all classes are on the Hybrid 

System), 23.7, 24.15, 24.17, 24.21(j)(1), and 24B.15. 

6The proposed rule change makes corresponding 

changes to the following rules to delete references 

to the Penny Price Improvement Program and the 

rules proposed to be deleted: Rules 1.1(fff) and 

(ggg), 6.45, Interpretations and Policies .01 and .02, 

Rule 6.47, Interpretation and Policy .02, and Rule 

6.74, Interpretation and Policy .09. 

7The proposed rule change makes a 

corresponding change to current paragraph (b), 

eliminates paragraph lettering for paragraph (b) (as 

that will be the only paragraph in the rule), and 

reletters subparagraphs (i) and (ii) as (a) and (b), 

consistent with paragraph lettering throughout the 

rules. 

8The proposed rule change makes corresponding 

changes to the following rules to change crossreferences to Rule 7.4 to Rule 6.11: Rules 

6.13(b)(i)(A)(2) and (iii), 23.3(b), and 24.11A (the 

proposed rule change also deletes the 

Interpretations and Policies section of this rule, as 

there are currently none). 

9The proposed rule change makes corresponding 

changes to the following rules to delete references 

to Order Book Officials and the rules proposed to 

be deleted: Rules 6.2 and Interpretation and Policy 

.01 (the proposed rule change also indicates the 

exchange may direct how trading rotations occur in 

Interpretation and Policy .01, which is consistent 

with the remainder of Rule 6.2), 6.3, Interpretations 

and Policies .01 and .02 (these interpretations also 

delete references to post directors, which are no 

longer used at the Exchange), 6.6(b) and (e) (which 

also deletes references to post directors, which are 

no longer used at the Exchange), 6.12A, 6.20(a) and 

Interpretations and Policies .02 and .04(ii), 6.43(A), 

6.45, Interpretations and Policies .01 and .02 (the 

proposed rule change replaces references to Order 

Book Officials to PAR Officials, consistent with 

Interpretation and policy .02, which indicates PAR 

Officials may perform the functions of Order Book 

Officials for purposes of that rule), 6.73 

Interpretation and Policy .01, 8.7(c) (the Exchange 

notes Market-Makers not permitted to enter a 

trading station in a floor brokerage capacity, as set 

forth in Rule 8.8) and Interpretation and Policy .09 

(changes cross-reference to Rule 7.5 to Rule 

8.7(d)(iv), which describes current Market-Maker 

obligations, including the obligation of MarketMaker to provide a quote upon Exchange request), 

and 24.13 and Interpretation and Policy .03 (which 

the proposed rule change renumbers to .02). 

10The proposed rule change makes 

corresponding changes to the following rules to 

change cross-references to Rule 7.12 to Rule 6.12B: 

Rules 6.12A, 6.18(d)(i), and 6.20(a). 

trading on the Exchange currently 

occurs on the Hybrid Trading System, 

which includes Exchange’s Order 

Handling System (‘‘OHS’’). Therefore, 

RAES and ORS no longer apply to any 

options listed for trading on the 

Exchange.5

• Rule 6.10—LOU System Operations. 

The Large Order Utility (‘‘LOU’’) System 

was a facility of the Exchange that 

provided order routing, handling, and 

execution for eligible options orders 

routed electronically to the Exchange. 

The LOU System is no longer used, as 

all options trading on the Exchange 

trade on the Hybrid Trading System. 

Therefore, the LOU System no longer 

applies to any options listed for trading 

on the Exchange. 

• Rule 6.13B—Penny Price 

Improvement. Pursuant to Rule 6.13B, 

the Exchange may designate one or 

more options trading on the Hybrid 

Trading System in a Penny Price 

Improvement Program, which allows 

Trading Permit Holders to provide price 

improvement beyond the Exchange’s 

disseminated quote for classes not 

already quote in penny increments and 

for which the simple auction liaison 

system is not in effect. The Exchange 

currently has not designated, and has no 

intention to designate, any options for 

participation in this program. Therefore, 

this program no longer applies to any 

options listed for trading on the 

Exchange.6

• Rule 6.54(a)—Accommodation 

Liquidation (Cabinet Trades) for Classes 

Not Trading on the Cboe Options Hybrid 

System. Rule 6.54 describes cabinet 

trading permitted on the Exchange. 

Paragraph (a) describes cabinet trading 

for classes not trading on the Hybrid 

System, while paragraph (b) describes 

cabinet trading for classes trading on the 

Hybrid System. All options trading on 

the Exchange currently trade on the 

Hybrid Trading System, and thus Rule 

6.54 (a) no longer applies to any options 

listed for trading on the Exchange.7

• Chapter VII—Order Book Officials. 

Order Book Officials were Exchange 

employees responsible for maintaining 

the book with respect to classes 

assigned to them, effecting proper 

executions of orders placed with them, 

displaying bids and offers, and 

monitoring the market for classes 

assigned to them. The Exchange 

currently has no employees designated 

as, and does not intend to designate any 

employees as, Order Book Officials, as 

Order Book Official functions are 

generally obsolete now that most trading 

occurs electronically. 

The proposed rule change deletes 

Rules 7.1 through 7.3, 7.4 except for 

subparagraph (a)(1) (which is being 

moved to Rule 6.11, with some 

modifications described below), 7.5, 7.7 

through 7.10, and Chapter VII, Section 

B, as they relate solely to 

responsibilities of Order Book Officials. 

Rule 7.4(a)(1) states public customer 

orders in Hybrid and Hybrid 3.0 classes 

are eligible for entry into the electronic 

book, and the Exchange may determine 

on a class-by-class basis other orders 

that are eligible for entry into the 

electronic book. Currently, after a class 

is open for trading (see Rule 6.2B for a 

description of orders the System accepts 

prior to opening), the System accepts for 

entry into the Book (1) quotes of all 

Market-Makers and order of any origin 

code in Hybrid classes and (2) quotes of 

Lead Market-Makers (‘‘LMMs’’) and 

orders of priority customers in Hybrid 

3.0 classes, while the Exchange 

continues to have flexibility to permit 

orders of other origin codes be eligible 

for book entry. The Exchange proposes 

to codify this current book eligibility 

(which is consistent with the 

Exchange’s authority in current Rule 

7.4(a)(1)) in Rule 6.11. The proposed 

rule change also deletes the provision in 

current Rule 7.4(a)(1) that states Trading 

Permit Holders submitting orders or 

quotes for entry in to the book must do 

so electronically and in the format 

announced by the Exchange. It is 

redundant to state orders and quotes for 

entry in the electronic book must be 

submitted electronically, and Rule 

6.53A describes the types of order 

formats Trading Permit Holders must 

use.8

Rule 7.5, Interpretation and Policy .03 

states every Floor Broker who represents 

a Market-Maker with an order in any 

options class must, by public outcry at 

the post, indicate the identify of such 

Market-Maker at the request of any 

Trading Permit Holder or Order Book 

Official. The proposed rule change 

moves this provision (with the reference 

to Order Book Official deleted) to Rule 

6.73, which relates to responsibilities of 

Floor Brokers. 

Rule 7.6 regarding the requirement for 

PAR Official to report unusual activity 

is proposed to move to Rule 

6.12B(b)(vi).9 The proposed rule change 

moves currently applicable provisions 

in Rule 7.12 (regarding PAR Officials) to 

Rule 6.12B (with some nonsubstantive 

changes).10 PAR Officials are Exchange 

employees or independent contractors 

whom the Exchange may designate as 

being responsible for operating a PAR 

workstation and effecting proper 

executions of orders placed with them. 

PAR Officials no longer maintain the 

book with respect to assigned classes, as 

the electronic book manages electronic 


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11Chapter VI, Section E describes Exchange 

responsibilities pursuant to the current linkage 

plan, the Options Order Protection and Locked/ 

Crossed Market Plan. 

12The proposed rule change also deletes 

references to Autoquote in Rules 6.43(b), 8.15(c), 

8.51(c)(1)(a)(iii), 8.60 Interpretation and Policy .02. 

Rules 8.7, Interpretation and Policy .07, 8.15(c), and 

8.85(a)(x) provide components of a formulate used 

for automated quoting by Market-Makers using 

proprietary automated quoting systems will be 

disclosed unless the Exchange exempts them from 

disclosing this information. For competitive 

reasons, the Exchange exempts all Market-Makers 

from disclosing this information, so the proposed 

rule change deletes those provisions. 

13The proposed rule change also renumbers 

current Interpretation and Policy .03 to .02. 

14The proposed rule change also deletes 

references to Chapter XXIVA in the following rules: 

Rules 3.2(b), 5.9, 6.1A(c), 6.20A, Interpretation and 

Policy .05, 6.49A(c)(6), Introduction to Chapter XX, 

20.12, Introduction to Chapter XXII, 22.16, 

Introduction to Chapter XXIVB, 24B.3, 28.17, 29.18, 

and Introduction to Chapter XXIX. 

15The proposed rule change also deletes 

references to market baskets and the rules proposed 

to be deleted in: Rules 8.8, Interpretation and Policy 

.02 and 24B.10 (which is proposed to be 

renumbered as 24A.10). 

16Options may be listed for trading on the 

Exchange pursuant to Chapter V and XXIV. The 

proposed rule change leaves a placeholder in 

Chapters XXX and XXXI for rules related to listing 

and trading of equity securities. The Exchange 

would file a proposed rule change to adopt new 

rules if it determines to list and trade equity 

securities in the future. 

17 15 U.S.C. 78f(b)(10). 

18 15 U.S.C. 78l. 

orders and quotes. The proposed rule 

change deletes the provision in current 

Rule 7.12(b)(i) regarding the definition 

of customer limit orders, as customer 

orders are now defined in Rule 

1.1(www) and (yyy) (which are 

proposed to be relettered as (yyy) and 

(zzz), as described below). The proposed 

rule change deletes current Rule 

7.12(b)(i)(C) and (e), which apply to the 

Intermarket Options Linkage Plan that 

no longer exists,11 and Rule 

7.12(b)(1)(E), which relates to orders 

received during a trading rotation 

pursuant to Rule 6.2 or HOSS pursuant 

to Rule 6.2B, as those rules describe 

how orders received prior or before a 

rotation are handled. The proposed rule 

change deletes Rule 7.12(b)(iii), as PAR 

Officials no longer maintain the book (as 

described above) and do not have the 

ability to remove orders from the book. 

The proposed rule change replaces the 

term ‘‘senior Trading Operations 

official’’ with ‘‘senior Help Desk 

personnel’’ in current Rule 7.12(b)(iv) 

(proposed Rule 6.12B(b)(iii), which term 

is used throughout the rules. The 

proposed rule change deletes Rule 7.12, 

Interpretation and Policy .01, as it 

relates to the Exchange’s responsibility 

to appoint PAR Officials to trading 

stations prior to March 24, 2006. The 

Exchange currently has PAR Officials 

appointed to all trading stations on the 

trading floor. 

• Autoquote. Autoquote was an 

Exchange electronic quotation system 

that automatically monitored and 

updated market quotes using a 

mathematical formula measuring certain 

characteristics of the option and 

underlying interest. Rules related to 

LMMs and DPMs require them to 

provide continuous electronic quotes in 

appointed classes using Autoquote or a 

proprietary automated quotation 

updating system. Currently, all MarketMakers that submit electronic quotes 

use a proprietary system, and Autoquote 

is no longer used. The proposed rule 

change deletes Rule 8.7, Interpretation 

and Policy .07, which describes 

Autoquote, as well as the requirement of 

LMMs and DPMs to provide electronic 

quotes, which requirement is included 

in Rules 8.15 and 8.85, respectively.12

• S&P 100 Modified Opening 

Rotation. Rule 24.13, Interpretation and 

Policy .02 provides a modified opening 

rotation that the Exchange may use for 

S&P 100 options, but the rule also 

provides the Exchange with the 

authority to open this class using HOSS 

pursuant to Rule 6.2B. The Exchange 

currently uses HOSS to open S&P 100 

options, and does not intend to use the 

modified opening in the future. 

Therefore, this provision no longer 

applies to the opening of S&P 100 

options.13

• Rule 8.7(c)—Market-Maker Entry 

into Trading Station in Unappointed 

Class other than As Floor Broker. Rule 

8.7(c) states whenever a Market-Maker 

enters the trading station for a class of 

options contracts in a class in which it 

is not appointed, in other than a floor 

brokerage capacity, the Market-Maker 

must fulfill obligations established in 

Rule 8.7(b) and, for the rest of the 

trading day, as well as undertake certain 

additional obligations. This rule text 

essentially requires a Market-Maker to 

act like a Market-Maker when it enters 

a trading station in the capacity of a 

Market-Maker in an unappointed class. 

However, pursuant to Rule 8.3, on the 

trading floor, Market-Makers have an 

appointment to trade in all hybrid 

classes, so if it goes to any trading 

station on the floor as a Market-Maker, 

it has an appointment for the classes at 

that station and is subject to Marketmaker obligations. That provision, in 

conjunction with the restriction on 

acting as a Market-Maker and Floor 

Broker on the same day, make the 

provision in Rule 8.7(c) unnecessary 

and duplicative. Therefore, the 

proposed rule change deletes this 

provision. 

• Chapter XXIVA—Flexible Exchange 

Options (‘‘FLEX Options’’). When the 

Exchange began offering FLEX Options 

for trading, FLEX Options traded 

pursuant to Rule XXIVA on the trading 

floor. The Exchange then developed the 

FLEX Hybrid Trading System on which 

FLEX Options could trade both on the 

trading floor and electronically. Chapter 

XXIVB describes FLEX Options trading 

on this system, and provides the 

Exchange with ability to permit FLEX 

trading pursuant to Chapter XXIVA or 

XXIVB. The open outcry rules in 

Chapter XXIVA are substantially similar 

to those in Chapter XXIVB. The 

Exchange has determined all FLEX 

trading must occur on the FLEX Hybrid 

Trading System pursuant to Chapter 

XXIVB. Therefore, Chapter XXIVB no 

longer applies to the trading of any 

FLEX Options.14

• Chapter XXVI—Market Baskets. 

Chapter XXVI describes rules applicable 

to market basket contracts, which are 

contracts obligating the seller to sell and 

the purchaser to purchase a designated 

number of shares of each of the stocks 

comprising the index on which the 

market basket is based. The Exchange 

currently does not list, and does not 

intend to list in the future, market 

basket contracts for trading. Therefore, 

Chapter XXVI no longer applies to any 

options trading on the Exchange.15

• Chapter XXVII—Buy-Write Option 

Unitary Derivatives (‘‘BOUNDS’’). 

Chapter XXVIII describes rules 

applicable to BOUNDS, which are 

securities issued, or subject to issuance, 

by the Options Clearing Corporation 

pursuant to its rules, which gives 

holders and writers thereof such rights 

and obligations as may be provided in 

its rules. The Exchange currently does 

not list, and does not intend to list in 

the future, BOUNDS for trading. 

Therefore, Chapter XXVII no longer 

applies to any options trading on the 

Exchange. 

• Chapter XXXI—Approval of 

Securities for Original Listing. Chapter 

XXXI describes rules pursuant to which 

the Exchange may list equity securities 

for listing on the Exchange. The 

Exchange currently does not list any 

equity securities on the Exchange. 

Therefore, Chapter XXXI currently 

applies to no securities listed on the 

Exchange.16

Section 957 of the Dodd-Frank 

adopted Section 6(b)(10) of the Act,17

which requires the rules of each 

national securities exchange to prohibit 

any member that is not the beneficial 

owner of a security registered under 

Section 12 of the Act 18 from granting a 

proxy to vote the security in connection 


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19 15 U.S.C. 78f(b)(10)(B). 

20The proposed rule change makes 

corresponding changes to the following rules to 

delete references to screen-based trading and the 

rules proposed to be deleted: Rules 1.1(fff) and 

(ggg), 3.2(b), and 3.3. 

21The proposed rule change makes 

corresponding changes to the following rules to 

delete references to CBSX and the rules proposed 

to be deleted: Rules 3.1A, 3.2(b), 3.3, and 6.20A, 

Interpretation and Policy .01. 

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

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

24 Id. 

25 15 U.S.C. 78s(b)(3)(A). 

26 17 CFR 240.19b–4(f)(6). 

27 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

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. 

with certain shareholder votes, unless 

the beneficial owner of the security has 

instructed the member to vote the proxy 

in accordance with the voting 

instructions of the beneficial owner. The 

shareholder votes covered by Section 

957 include any vote with respect to (1) 

the election of a member of the board of 

directors of an issuer (except for a vote 

with respect to the uncontested election 

of a member of the board of directors of 

any investment company registered 

under the Investment Company Act of 

1940 (the ‘‘Investment Company Act’’), 

(2) executive compensation, or (3) any 

other significant matter, as determined 

by the Commission, by rule.19

Rules 31.82 through 31.88 currently 

include provisions that cover these 

proxy voting requirements with respect 

to Trading Permit Holders. However, 

because this proposed rule change 

deletes Chapter XXXI, the proposed rule 

change adds Rule 4.25 to retain these 

provisions in accordance with Section 

957. 

• Chapters XL through XLIX—ScreenBased Trading. Chapters XL through 

XLIX describe trading on the Exchange’s 

screen-based trading system. The 

screen-based trading system is no longer 

used, as all options trading on the 

Exchange trade on the Hybrid Trading 

System. Therefore, the screen-based 

trading rules no longer apply to any 

options listed for trading on the 

Exchange.20

• Chapters L through LIV—CBOE 

Stock Exchange (‘‘CBSX’’). Chapters L 

through LIV describe trading on CBSX, 

which is the Exchange’s facility for 

trading stocks, warrants, IPRs, IPSs, and 

Trust Issued Receipts (non-options 

securities). CBSX ceased market 

operations on April 30, 2014. Therefore, 

the CBSX rules no longer apply to any 

trading on the Exchange.21 The 

Exchange would file a proposed rule 

change to adopt new rules if it 

determines to list and trade non-options 

securities in the future. 

Additional Nonsubstantive Changes 

In addition to nonsubstantive changes 

described above, the proposed rule 

change makes the following 

nonsubstantive changes: 

• The proposed rule change moves 

Interpretation and Policy .01 to the 

definition of Professional in Rule 

1.1(ggg) to Interpretation and Policy .06 

to Rule 1.1, so that all Interpretations 

and Policies to Rule 1.1 are in the same 

place. 

• Currently, there are two paragraphs 

erroneously lettered as (mmm) and 

(ppp). The proposed rule change 

corrects this lettering and updates the 

paragraph lettering to reflect these 

corrections. 

• The proposed rule change makes 

updates throughout the rules to conform 

paragraph lettering and numbering to 

other rules, as well as to reflect deleted 

rule provisions. 

• Rule 6.2, Interpretation and Policy 

.01(b) and (c) erroneously refer to LMMs 

as LLMs. The proposed rule change 

corrects those erroneous references. 

• The proposed rule change amends 

Rule 6.43(b) to indicate it only applies 

to Hybrid 3.0 classes, which is 

consistent with the current rule text and 

current trading practices. 

• Renumber Chapter XXIVB and the 

rules in that chapter to Chapter XXIVA, 

and update cross-references throughout 

the rules. 

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.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, by deleting rules that no 

longer apply to Cboe Options trading 

(which rules have generally not been 

applicable in years), and making other 

nonsubstantive changes to better 

organize and more consistently number 

and letter rules, the rules will more 

clearly identify currently applicable 

rules, which the Exchange believes 

removes impediments to and perfects 

the mechanism of a free and open 

market. The Exchange believes the 

proposed rule change will eliminate 

confusion regarding which rules apply 

to current trading, which ultimately 

protects investors and the public 

interest. The proposed rule change has 

no impact on current trading on Cboe 

Options. 

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 deletes rules that 

no longer apply to Cboe Options trading 

and makes other nonsubstantive 

changes, and thus has no impact on 

current trading on Cboe Options. 

Therefore, the proposed rule change has 

no impact on competition. The 

proposed rule change eliminates 

confusion with respect to rules 

applicable to current trading on Cboe 

Options. 

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 25 and Rule 19b–4(f)(6) 26

thereunder.27 At any time within 60 

days of the filing of the proposed rule 

change, the Commission summarily may 

temporarily suspend such rule change if 


daltland on DSKBBV9HB2PROD with NOTICES
3376 Federal Register / Vol. 83, No. 16 / Wednesday, January 24, 2018 / Notices 

28 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3On November 13, 2017, OCC also filed this 

proposal as advance notice SR–OCC–2017–811 

(‘‘Advance Notice’’) with the Commission pursuant 

to Section 806(e)(1) of Title VIII of the Dodd-Frank 

Wall Street Reform and Consumer Protection Act, 

entitled the Payment, Clearing, and Settlement 

Supervision Act of 2010 (12 U.S.C. 5465(e)(1)) and 

Rule 19b–4(n)(1)(i) of the Act (17 CFR 240.19b– 

4(n)(1)(i)). Notice of filing of the Advance Notice 

was published for comment in the Federal Register 

on December 26, 2017. Securities Exchange Act 

Release No. 82355 (Dec. 19, 2017), 82 FR 61060 

(Dec. 26, 2017) (SR–OCC–2017–811). 

On January 11, 2018, the Commission sent OCC 

a request for additional information, which tolls the 

Commission’s 60-day review period for the 

Advance Notice. See Memorandum from Office of 

Clearance and Settlement, Division of Trading and 

Markets, dated January 12, 2018, available at 

https://www.sec.gov/comments/sr-occ-2017-022/ 

occ2017022.htm. The new review period will be 60 

days from the date the Commission receives the 

information requested. See Section 806(e)(1). The 

proposal in the Proposed Rule Change and the 

Advance Notice shall not take effect until all 

regulatory actions required with respect to the 

proposal are completed. 

4Securities Exchange Act Release No. 82161 

(Nov. 28, 2017), 82 FR 57306 (Dec. 4, 2017) (SR– 

OCC–2017–022). 

5See letter from Michael Kitlas, dated November 

28, 2017, to Eduardo A. Aleman, Assistant 

Secretary, Commission, available at https://

www.sec.gov/comments/sr-occ-2017-022/ 

occ2017022.htm. Since the proposal contained in 

the Proposed Rule Change was also filed as an 

Advance Notice, the Commission is considering all 

public comments received on the proposal 

regardless of whether the comments are submitted 

to the Proposed Rule Change or the Advance 

Notice. 

6 15 U.S.C. 78s(b)(2). 

7 Id. 

8 17 CFR 200.30–3(a)(31). 

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–2018–003 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–2018–003. 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–2018–003 and 

should be submitted on or before 

February 14, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.28

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–01206 Filed 1–23–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82534; File No. SR–OCC– 

2017–022] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Notice 

of Designation of Longer Period for 

Commission Action on Proposed Rule 

Change Related to The Options 

Clearing Corporation’s Margin 

Methodology 

January 18, 2018. 

On November 13, 2017, The Options 

Clearing Corporation (‘‘OCC’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) proposed 

rule change SR–OCC–2017–022 

(‘‘Proposed Rule Change’’) pursuant to 

Section 19(b)(1) of the Securities 

Exchange Act of 1934 (‘‘Act’’),1 and 

Rule 19b–4 thereunder,2 related to 

OCC’s margin methodology.3 The 

Proposed Rule Change was published 

for comment in the Federal Register on 

December 4, 2017.4 To date, the 

Commission has received one comment 

letter to the Proposed Rule Change.5

Section 19(b)(2) of the Act 6 provides 

that, within 45 days of the publication 

of notice of the filing of a proposed rule 

change, or within such longer period up 

to 90 days as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding, or as to which the 

self-regulatory organization consents, 

the Commission shall either approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether the 

proposed rule change should be 

disapproved. The 45th day after 

publication of the notice for this 

Proposed Rule Change is January 18, 

2018. The Commission is extending this 

45-day time period. 

In order to provide the Commission 

with sufficient time to consider the 

Proposed Rule Change, the Commission 

finds that it is appropriate to designate 

a longer period within which to take 

action on the Proposed Rule Change. 

Accordingly, the Commission, 

pursuant to Section 19(b)(2) of the Act,7

designates March 4, 2018 as the date by 

which the Commission shall either 

approve, disapprove, or institute 

proceedings to determine whether to 

disapprove proposed rule change SR– 

OCC–2017–022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–01210 Filed 1–23–18; 8:45 am] 

BILLING CODE 8011–01–P 


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