Federal Register / Vol. 79, No. 200 / Thursday, October 16, 2014 / Notices 62237 

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

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

adequately demonstrated that the 

proprietary data at issue in the case is 

used to attract order flow. The Exchange 

believes, however, that evidence not 

then before the court clearly 

demonstrates that availability of data 

attracts order flow. Due to competition 

among platforms, the Exchange intends 

to improve its platform data offerings on 

a continuing basis, and to respond 

promptly to customers’ data needs. 

The intensity of competition for 

proprietary information is significant 

and the Exchange believes that this 

proposal itself clearly evidences such 

competition. The Exchange is offering 

AIS in order to keep pace with changes 

in the industry and evolving customer 

needs. It is entirely optional and is 

geared towards attracting new Member 

Applicants and customers. MIAX 

competitors continue to create new 

market data products and innovative 

pricing in this space. The Exchange 

expects to see firms challenge its pricing 

on the basis of the Exchange’s explicit 

fees being higher than the zero-priced 

fees from other competitors such as 

BATS. In all cases, the Exchange 

expects firms to make decisions on how 

much and what types of data to 

consume on the basis of the total cost of 

interacting with MIAX or other 

exchanges. Of course, the explicit data 

fees are only one factor in a total 

platform analysis. Some competitors 

have lower transactions fees and higher 

data fees, and others are vice versa. The 

market for this proprietary information 

is highly competitive and continually 

evolves as products develop and 

change. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act.13 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 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– 

MIAX–2014–51 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–MIAX–2014–51. 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–MIAX– 

2014–51 and should be submitted on or 

before November 6, 2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–24540 Filed 10–15–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73327; File No. SR–CBOE– 

2014–072] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend the Fees 

Schedule 

October 9, 2014. 

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 October 

1, 2014, 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 

The Exchange proposes to amend its 

Fees Schedule. The text of the proposed 

rule change is available on the 

Exchange’s Web site (http://

www.cboe.com/AboutCBOE/

CBOELegalRegulatoryHome.aspx), at 

the Exchange’s Office of the Secretary, 

and at the Commission’s Public 

Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

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


asabaliauskas on DSK5VPTVN1PROD with NOTICES
62238 Federal Register / Vol. 79, No. 200 / Thursday, October 16, 2014 / Notices 

3 15 U.S.C. 78f(b). 

4 15 U.S.C. 78f(b)(5). 

5 15 U.S.C. 78f(b)(4). 

6 15 U.S.C. 78s(b)(3)(A). 

7 17 CFR 240.19b–4(f). 

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, to be effective October 1, 

2014. Specifically, the Exchange 

proposes to increase the Customer 

Priority Surcharge fee assessed to 

contracts executed in VIX volatility 

index options (‘‘VIX options’’). 

Currently, the VIX Customer Priority 

Surcharge (‘‘Surcharge’’) is assessed on 

all Customer (C) VIX contracts executed 

electronically that are Maker and not 

Market Turner. Additionally, the 

surcharge is only assessed on such 

contracts that have a premium of $0.11 

or greater. The Exchange proposes to 

increase the Surcharge from $0.05 per 

contract to $0.10 per contract on such 

contracts that have a premium of $0.11 

or greater. 

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.3 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 4 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 facilitation 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. The 

Exchange also believes the proposed 

rule change is consistent with Section 

6(b)(4) of the Act,5 which provides that 

Exchange rules may provide for the 

equitable allocation of reasonable dues, 

fees, and other charges among its 

Trading Permit Holders. 

The Exchange believes that the VIX 

Customer Priority Surcharge increase is 

reasonable because the amount of the 

new fee is within the range of 

surcharges assessed for customer 

transactions in other CBOE proprietary 

products (for example customers are 

currently assessed a $0.20 Hybrid 3.0 

Execution Surcharge (which essentially 

acts as a customer priority surcharge) in 

SPX options). 

The Exchange believes that it is 

equitable and not unfairly 

discriminatory to assess the VIX Priority 

Surcharge to Customers and not other 

market participants because Customers 

are not subject to additional costs for 

effecting transactions in VIX which are 

applicable to other market participants, 

such as license surcharges. 

Additionally, Customers are not subject 

to fees applicable to other market 

participants such as connectivity fees 

and fees relating to Trading Permits, and 

are not subject to the same obligations 

as other market participants, including 

regulatory and compliance requirements 

and quoting obligations. The Exchange 

believes that it is equitable and not 

unfairly discriminatory to only assess 

the Surcharge to Maker Non-Turners 

because the Exchange wants to 

encourage improving the market 

(‘‘turning’’). 

The Exchange believes that it is 

equitable and not unfairly 

discriminatory to only assess this fee 

when the contract premium is at least 

$0.11 because the Exchange wants to 

reduce costs on low priced VIX options 

to encourage Customers to close and roll 

over positions close to expiration at low 

premium levels. Currently, such 

Customers are less likely to do this 

because the transaction fee is closer to 

the premium level. The Exchange 

believes that maintaining lowered fees 

overall for VIX options trading with a 

premium of $0.00–$0.10 will encourage 

the trading of such options. As such, the 

Exchange does not wish to assess 

Customer Priority Surcharge on such 

options in order to keep the costs low. 

The Exchange believes that increasing 

the customer priority surcharge for VIX 

options and not VXST is equitable and 

not unfairly discriminatory because 

VXST is a relatively new product that 

the Exchange has expended significant 

resources in developing and believes 

that not assessing a higher surcharge 

will encourage trading in VXST. 

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 because, 

while different electronic transaction 

fees are assessed to different market 

participants, different market 

participants have different obligations 

and circumstances as noted above. The 

Exchange believes that the proposal to 

increase the surcharge amount assessed 

to Customers for executions in VIX 

contracts will not cause an unnecessary 

burden on intermarket competition 

because the proposed change was not 

motivated by intermarket competition. 

Additionally, VIX is only traded on 

CBOE. To the extent that the proposed 

changes make CBOE a more attractive 

marketplace for market participants at 

other exchanges, such market 

participants are welcome to become 

CBOE market participants. 

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 foregoing rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 6 and paragraph (f) of Rule 

19b–4 7 thereunder. At any time within 

60 days of the filing of the proposed rule 

change, the Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission will institute proceedings 

to determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

CBOE–2014–072 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. 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 200 / Thursday, October 16, 2014 / Notices 62239 

8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

All submissions should refer to File 

Number SR–CBOE-2014–072. 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–CBOE– 

2014–072 and should be submitted on 

or before November 6, 2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–24541 Filed 10–15–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73330; File No. SR–Phlx– 

2014–64] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change to Options 

Floor Procedure Advice F–27, Options 

Exchange Official Rulings 

October 9, 2014. 

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 October 

2, 2014, NASDAQ OMX PHLX LLC 

(‘‘Phlx’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘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 correct 

Options Floor Procedure Advice 

(‘‘Advice’’) F–27, Options Exchange 

Official Rulings, by updating an 

obsolete reference. 

The text of the proposed rule change 

is below; proposed new language is in 

italics; proposed deletions are in 

brackets. 

* * * * * 

F–27 Options Exchange Official 

Rulings 

Options Exchange Officials are 

empowered to render rulings on the 

trading floor to resolve trading disputes 

occurring on and respecting activities 

on the trading floor. All rulings 

rendered by Options Exchange Officials 

are effective immediately and must be 

complied with promptly. Failure to 

promptly comply with a ruling 

concerning a trading dispute may result 

in referral to the Business Conduct 

Committee. Failure to promptly comply 

with other rulings issued pursuant to 

Order and Decorum Regulations or 

Floor Procedure Advices and not 

concerning a trading dispute may result 

in an additional violation. Options 

Exchange Officials need not render 

decisions in any instance where the 

request for a ruling was not made within 

a reasonable period of time. An Options 

Exchange Official should not render a 

decision or authorize a citation where 

such Options Exchange Official was 

involved in or affected by the dispute, 

as well as in any situation where the 

Options Exchange Official is not able to 

objectively and fairly render a decision. 

Options Exchange Officials shall 

endeavor to be prompt in rendering 

decisions. However, in any instance 

where an Options Exchange Official has 

determined that the benefits of further 

discovery as to the facts and 

circumstances of any matter under 

review outweigh the monetary risks of 

a delayed ruling, the Options Exchange 

Official may determine to delay 

rendering the ruling until such time as 

that further discovery is completed. In 

issuing decisions for the resolution of 

trading disputes, Options Exchange 

Officials shall institute the course of 

action deemed by the ruling Options 

Exchange Official to be more fair to all 

parties under the circumstances at the 

time. An Options Exchange Official may 

direct the execution of an order on the 

floor, or adjust the transaction terms or 

participants to an executed order on the 

floor. However, an Options Exchange 

Official may nullify a transaction if they 

determine the transaction to have been 

in violation of Rule Rules 1014 

(Obligations and Restrictions Applicable 

to Specialists and Registered Options 

Traders), Rule 1017 (Openings In 

Options), Rule 1033 (Bids And OffersPremium) or Rule 1080 (Phlx XL and 

Phlx XL II). 

Exchange staff may determine that an 

Options Exchange Official is ineligible 

to participate in a particular ruling 

where it appears that such Options 

Exchange Official has a conflict of 

interest. For purposes of this Rule, and 

without limitation, a conflict of interest 

exists where an Options Exchange 

Official: (a) Is directly or indirectly 

affiliated with a party seeking an 

Options Exchange Official ruling; (b) is 

a participant or is directly or indirectly 

affiliated with a participant in a 

transaction that is the subject of an 

Options Exchange Official ruling; (c) is 

a debtor or creditor of a party seeking 

an Options Exchange Official ruling; or 

(d) is an immediate family member of a 

party seeking an Options Exchange 

Official ruling. Exchange staff may 

consider other circumstances, on a caseby-case basis, in determining the 

eligibility or ineligibility of a particular 

Options Exchange Official to participate 

in a particular ruling due to a conflict 

of interest. 

All Options Exchange Official rulings 

concerning the adjustment and 

nullification of transactions are 

reviewable by the [Referee (as defined in 

Rule 124)] Market Operations Review 

Committee. 

(i)–(v) No change. 

FINE SCHEDULE 

$250.00 

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 


asabaliauskas on DSK5VPTVN1PROD with NOTICES