Federal Register / Vol. 82, No. 168 / Thursday, August 31, 2017 / Notices 41457 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See https://www.theocc.com/webapps/delosearch. 

4By virtue of Exchange Rule 4.12, Interpretation 

and Policy .02, which is not being amended by this 

filing, the exercise limit for FXI, EEM, IWM, EFA, 

EWZ, TLT, VXX, QQQQ, and EWJ options would 

be similarly increased. 

The Exchange also proposed to make nonsubstantive corrections to the names of IWM and 

EEM in Rule 4.11, Interpretation and Policy .07. 

inspection and copying at the principal 

office of ICE Clear Credit and on ICE 

Clear Credit’s Web site at https://

www.theice.com/clear-credit/regulation. 

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–ICC–2017–012 and should 

be submitted on or before September 21, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–18449 Filed 8–30–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81483; File No. SR–CBOE– 

2017–057] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing of a 

Proposed Rule Change To Amend 

Interpretation and Policy .07 of 

Exchange Rule 4.11, Position Limits, 

To Increase the Position Limits for 

Options on Certain ETFs 

August 25, 2017. 

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 August 

15, 2017, 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 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 purpose of this filing is to amend 

Interpretation and Policy .07 of 

Exchange Rule 4.11, Position Limits, to 

increase the position limits for options 

on the following exchange traded funds 

(‘‘ETFs’’) and exchange traded notes 

(‘‘ETNs’’): iShares China Large-Cap ETF 

(‘‘FXI’’), iShares MSCI EAFE ETF 

(‘‘EFA’’), iShares MSCI Emerging 

Markets ETF (‘‘EEM’’), iShares Russell 

2000 ETF (‘‘IWM’’), iShares MSCI EAFE 

ETF (‘‘EFA’’), iShares MSCI Brazil 

Capped ETF (‘‘EWZ’’), iShares 20+ Year 

Treasury Bond Fund ETF (‘‘TLT’’), iPath 

S&P 500 VIX Short-Term Futures ETN 

(‘‘VXX’’), PowerShares QQQ Trust 

(‘‘QQQQ’’), and iShares MSCI Japan 

Index [sic] (‘‘EWJ’’). 

The text of the proposed rule change 

is also available on the Exchange’s Web 

site (http://www.cboe.com/AboutCBOE/ 

CBOELegalRegulatoryHome.aspx), at 

the Exchange’s Office of the Secretary, 

and at the Commission’s Public 

Reference Room. 

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 

Position limits are designed to 

address potential manipulative schemes 

and adverse market impact surrounding 

the use of options, such as disrupting 

the market in the security underlying 

the options. The potential manipulative 

schemes and adverse market impact are 

balanced against the potential of setting 

the limits so low as to discourage 

participation in the options market. 

Position limits for options on ETFs and 

ETNs, such as those subject to this 

proposal, are determined pursuant to 

Exchange Rule 4.11, and vary according 

to the number of outstanding shares and 

the trading volume of the underlying 

stocks, ETFs, or ETNs over the past sixmonths. Pursuant to Exchange Rule 

4.11, the largest in capitalization and 

the most frequently traded stocks, ETFs, 

and ETNs have an option position limit 

of 250,000 contracts (with adjustments 

for splits, re-capitalizations, etc.) on the 

same side of the market; and smaller 

capitalization stocks, ETFs, and ETNs 

have position limits of 200,000, 75,000, 

50,000 or 25,000 contracts (with 

adjustments for splits, re-capitalizations, 

etc.) on the same side of the market. 

Options on FXI, EFA, EWZ, TLT, VXX, 

and EWJ are currently subject to the 

standard position limit of 250,000 

contracts as set forth in Exchange Rule 

4.11.3 Interpretation and Policy .07 of 

Exchange Rule 4.11 sets forth separate 

position limits for options on specific 

ETFs and ETNs as follows: 

• Options on EEM are 500,000 

contracts; 

• Options on IWM are 500,000 

contracts; and 

• Options on QQQQ are 900,000 

contracts. 

The purpose of this proposal is to 

amend Interpretation and Policy .07 to 

Exchange Rule 4.11 to double the 

position and exercise limits for FXI, 

EEM, IWM, EFA, EWZ, TLT, VXX, 

QQQQ, and EWJ.4 As such, options on 

FXI, EFA, EWZ, TLT, VXX, and EWJ 

would no longer be subject to the 

standard position limits set forth under 

Exchange Rule 4.11. Accordingly, 

Interpretation and Policy .07 to 

Exchange Rule 4.11 would be amended 

to set forth that the position limits for 

option on FXI, EFA, EWZ, TLT, VXX, 

and EWJ would be 500,000 contracts. 

These position limits equal the current 

position limits for option on IWM and 

EMM and are similar to the current 

position limit for options on QQQQ set 

forth in Interpretation and Policy .07 to 

Exchange Rule 4.11. Interpretation and 

Policy .07 to Exchange Rule 4.11 would 

be further amended to increase the 

position limits for the remaining options 

subject to this proposal as follows: 

• The position limits for options on 

EEM would be increased from 500,000 

contracts to 1,000,000 contracts; 

• The position limits on options on 

IWM would be increased from 500,000 

contracts to 1,000,000 contracts; and 

• The position limits on options on 

QQQQ would be increased from 900,000 

contracts to 1,800,000 contracts. 

In support of this proposal, the 

Exchange represents that the above 

listed ETFs and ETNs qualify for either: 

(i) The initial listing criteria set forth in 

Exchange Rule 5.3.06(C) for ETFs 

holding non-U.S. component securities; 

or (ii) for ETFs and ETNs listed 

pursuant to generic listing standards for 

series of portfolio depository receipts 

and index fund shares based on 


sradovich on DSK3GMQ082PROD with NOTICES
41458 Federal Register / Vol. 82, No. 168 / Thursday, August 31, 2017 / Notices 

5The Exchange notes that the initial listing 

criteria for options on ETFs and ETNs that hold 

non-U.S. component securities are more stringent 

than the maintenance listing criteria for those same 

ETF options. See Exchange Rule 5.3.06(C); 

Exchange Rule 5.4.08. 

6See https://www.ishares.com/us/products/

239536/ishares-china-largecap-etf. 

7See http://us.ishares.com/product_info/fund/ 

overview/EEM.htm. 

8See http://www.msci.com/products/indices/

tools/index.html#EM. 

9See https://www.ishares.com/us/products/

239710/ishares-russell-2000-etf. 

10See https://www.ishares.com/us/products/

239623/. 

11See https://www.msci.com/eafe. 

12See https://www.ishares.com/us/products/

239612/ishares-msci-brazil-capped-etf. 

13See https://www.ishares.com/us/products/

239454/. 

14See http://www.ipathetn.com/US/16/en/

details.app?instrumentId=259118. 

15See https://www.invesco.com/portal/site/us/

financial-professional/etfs/productdetail?productId=QQQ&ticker=QQQ&title=

powershares-qqq. 

16See https://www.ishares.com/us/products/ 

239665/EWJ. 

17See Exchange Rule 5.3.06(C). 

18See Exchange Rule 5.3.06(C)(ii)(b). 

19See Exchange Rule 5.3.06(C)(ii)(c). 

international or global indexes under 

which a comprehensive surveillance 

agreement (‘‘CSA’’) is not required.5 FXI 

tracks the performance of the FTSE 

China 50 Index, which is composed of 

the 50 largest Chinese stocks.6 EEM 

tracks the performance of the MSCI 

Emerging Markets Index, which is 

composed of approximately 800 

component securities.7 ‘‘The MSCI 

Emerging Markets Index consists of the 

following 21 emerging market country 

indices: Brazil, Chile, China, Colombia, 

Czech Republic, Egypt, Hungary, India, 

Indonesia, Korea, Malaysia, Mexico, 

Morocco, Peru, Philippines, Poland, 

Russia, South Africa, Taiwan, Thailand, 

and Turkey.’’ 8 IWM tracks the 

performance of the Russell 2000 Index, 

which is composed of 2,000 small-cap 

domestic stocks.9 EFA tracks the 

performance of MSCI EAFE Index, 

which has over 900 component 

securities.10 ‘‘The MSCI EAFE Index is 

designed to represent the performance 

of large and mid-cap securities across 21 

developed markets, including countries 

in Europe, Australasia and the Far East, 

excluding the U.S. and Canada.’’ 11 EWZ 

tracks the performance of the MSCI 

Brazil 25/50 Index, which is composed 

of shares of large and mid-size 

companies in Brazil.12 TLT tracks the 

performance of ICE U.S. Treasury 20+ 

Year Bond Index, which is composed of 

long-term U.S. Treasury bonds.13 VXX 

tracks the performance of S&P 500 VIX 

Short-Term Futures Index Total Return. 

‘‘The Index is designed to provide 

access to equity market volatility 

through CBOE Volatility Index futures. 

The Index offers exposure to a daily 

rolling long position in the first and 

second month VIX futures contracts and 

reflects market participants’ views of the 

future direction of the VIX index at the 

time of expiration of the VIX futures 

contracts comprising the Index.’’ 14

QQQQ tracks the performance of the 

Nasdaq-100 Index, which is composed 

of 100 of the largest domestic and 

international nonfinancial companies 

listed on the Nasdaq Stock Market LLC 

(‘‘Nasdaq’’).15 EWJ tracks the MSCI 

Japan Index, which tracks the 

performance of large and mid-sized 

companies in Japan.16

CBOE represents that more than 50% 

of the weight of the securities held by 

the options subject to this proposal are 

also subject to a CSA.17 Additionally, 

the component securities of the MSCI 

Emerging Markets Index on which EEM 

is based for which the primary market 

is in any one country that is not subject 

to a CSA do not represent 20% or more 

of the weight of the MSCI Emerging 

Markets Index.18 Finally, the 

component securities of the MSCI 

Emerging Markets Index on which EEM 

is based, for which the primary market 

is in any two countries that are not 

subject to CSAs do not represent 33% of 

more of the weight of the MSCI 

Emerging Markets Index.19

Market participants have increased 

their demand for options on FXI, EFA, 

EWZ, TLT, VXX, and EWJ for hedging 

and trading purposes and the Exchange 

believes the current position limits are 

too low and may be a deterrent to 

successful trading of options on these 

securities. The Exchange has the 

collected following trading statistics on 

the ETFs and ETNs that are subject to 

this proposal: 

ETF 2017 ADV 

(mil. shares) 

2017 ADV 

(option 

contracts) 

Shares 

outstanding 

(mil.) 

Fund market 

cap 

($mil.) 

FXI ................................................................................................................... 15.08 71,944 78.6 $3,343.6 

EEM ................................................................................................................. 52.12 287,357 797.4 34,926.1 

IWM .................................................................................................................. 27.46 490,070 253.1 35,809.1 

EFA .................................................................................................................. 19.42 98,844 1178.4 78,870.3 

EWZ ................................................................................................................. 17.08 95,152 159.4 6,023.4 

TLT ................................................................................................................... 8.53 80,476 60.0 7,442.4 

VXX .................................................................................................................. 55.04 336,331 96.7 1,085.6 

QQQQ .............................................................................................................. 26.25 579,404 351.6 50,359.7 

EWJ ................................................................................................................. 6.06 4,715 303.6 16,625.1 

SPY .................................................................................................................. 64.63 2,575,153 976.23 240,540.0 

In support of its proposal to increase 

the position limits for QQQQ to 

1,800,000 contracts, the Exchange 

compared the trading characteristics of 

QQQQ to that of the SPDR S&P 500 ETF 

(‘‘SPY’’), which has no position limits. 

As shown in the above table, the average 

daily trading volume through August 

14, 2017 for QQQQ was 26.25 million 

shares compared to 64.63 million shares 

for SPY. The total shares outstanding for 

QQQQ are 351.6 million compared to 

976.23 million for SPY. The fund 

market cap for QQQQ is $50,359.7 

million compared to $240,540 million 

for SPY. SPY is one of the most actively 

trading ETFs and is, therefore, subject to 

no position limits. QQQQ is also very 

actively traded, and while not to the 

level of SPY, should be subject to the 

proposed higher position limits based 

its trading characteristics when 

compared to SPY. The proposed 

position limit coupled with QQQQ’s 

trading behavior would continue to 

address potential manipulative schemes 

and adverse market impact surrounding 

the use of options and trading in its 

underlying the options. 

In support of its proposal to increase 

the position limits for EEM and IWM 

from 500,000 contracts to 1,000,000 

contracts, the Exchange compared the 

trading characteristics of EEM and IWM 

to that of QQQQ, which currently has a 

position limit of 900,000 contracts. As 

shown in the above table, the average 

daily trading volume through July 31, 

2017 for EEM was 52.12 million shares 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 82, No. 168 / Thursday, August 31, 2017 / Notices 41459 

20A Market-Maker ‘‘is an individual Trading 

Permit Holder or a TPH organization that is 

registered with the Exchange for the purpose of 

making transactions as dealer-specialist on the 

Exchange in accordance with the provisions of this 

Chapter.’’ See Exchange Rule 8.1. 

21A Designated Primary Market-Maker ‘‘is TPH 

organization that is approved by the Exchange to 

function in allocated securities as a Market-Maker 

(as defined in Rule 8.1) and is subject to the 

obligations under Rule 8.85 or as otherwise 

provided under the rules of the Exchange.’’ See 

Exchange Rule 8.80(a). 

22See Exchange Rule 4.13 for reporting 

requirements. 

23These procedures have been effective for the 

surveillance of trading the options subject to this 

proposal and will continue to be employed. 

24 17 CFR 240.13d–1. 

and IWM was 27.46 million shares 

compared to 26.25 million shares for 

QQQQ. The total shares outstanding for 

EEM are 797.4 million and for IWM are 

253.1 million compared to 351.6 million 

for QQQQ. The fund market cap for 

EEM is $34,926.1 million and IWM is 

$35.809 [sic] million compared to 

$50,359.7 million for QQQQ. EEM, IWM 

and QQQQ have similar trading 

characteristics and subjecting EEM and 

IWM to the proposed higher position 

limit would continue be designed to 

address potential manipulate schemes 

that may arise from trading in the 

options and their underlying securities. 

These above trading characteristics for 

QQQQ when compared to EEM and 

IWM also justify increasing the position 

limit for QQQQ. QQQQ has a higher 

options ADV than EEM and IWM, a 

higher numbers of shares outstanding 

than IWM and a much higher market 

cap than EEM and IWM which justify 

doubling the positon limit for QQQQ. 

Based on these statistics, and as stated 

above, the proposed position limit 

coupled with QQQQ’s trading behavior 

would continue to address potential 

manipulative schemes and adverse 

market impact surrounding the use of 

options and trading in its underlying the 

options. 

In support of its proposal to increase 

the position limits for FXI, EFA, EWZ, 

TLT, VXX, and EWJ from 250,000 

contracts to 500,000 contracts, the 

Exchange compared the trading 

characteristics of FXI, EFA, EWZ, TLT, 

VXX and EWJ to that of EEM and IWM, 

both of which currently have a position 

limit of 500,000 contracts. As shown in 

the above table, the average daily 

trading volume through July 31, 2017 

for FXI is 15.08 million shares, EFA is 

19.42 million shares, EWZ is 17.08 

million shares, TLT is 8.53 million 

shares, VXX is 55.04 million shares, and 

EWJ is 6.06 million shares compared to 

52.12 million shares for EEM and 27.46 

million shares for IWM. The total shares 

outstanding for FXI is 78.6 million, EFA 

is 1178.4 million, EWZ is 159.4 million, 

TLT is 60 million, VXX is 96.7 million, 

and EWJ is 303.6 million compared to 

797.4 million for EEM and 253.1 million 

for IWM. The fund market cap for FXI 

is $3,343.6 million, EFA is $78,870.3 

million, EWZ is $6,023.4 million, TLT 

is $7,442.4 million, VXX is $1,085.6 

million, and EWJ is $16,625.1 million 

compared to $34.926.1 [sic] million for 

EEM and $35,809.1 million for IWM. 

Market participants’ trading activity 

has been adversely impacted by the 

current position limits for FXI, EFA, 

EWZ, TLT, VXX and EWJ and such 

limits have caused options trading in 

these symbols to move from exchanges 

to the over-the-counter market. The 

above trading characteristics of FXI, 

EFA, EWZ, TLT, VXX and EWJ is either 

similar to that of EEM and IWM or 

sufficiently active enough so that the 

proposed limit would continue to 

address potential manipulative that may 

arise. Specifically, VXX has an average 

daily trading volume similar to EEM 

and higher than IWM. VXX has an 

options volume higher than EEM, more 

shares outstanding than IWM and a 

larger fund market cap than both EEM 

and IWM. EFA has far more shares 

outstanding and a larger fund market 

cap than EEM, IWM, and QQQQ. EWJ 

has a more shares outstanding than 

IWM and only slightly less shares 

outstanding than QQQQ. 

On the other hand, while FXI, EWZ, 

and TLT do not exceed EEM, IWM or 

QQQQ is any of the specified areas, they 

are all actively trading so that market 

participant’s trading activity has been 

impacted by them being restricted by 

the current position limits. The 

Exchange believes that the trading 

activity and these securities being based 

on a broad basket of underlying 

securities alleviates any potential 

manipulative activity that may arise. In 

addition, as discussed in more detail 

below, the Exchange’s existing 

surveillance procedures and reporting 

requirements at the Exchange, other 

options exchanges, and at the several 

clearing firms are capable of properly 

identifying unusual and/or illegal 

trading activity. 

The Exchange believes that increasing 

the position limits for the options 

subject to this proposal would lead to a 

more liquid and competitive market 

environment for these options, which 

will benefit customers interested in this 

product. Under the proposal, the 

reporting requirement for the above 

options would be unchanged. Thus, the 

Exchange would still require that each 

Trading Permit Holder (‘‘TPH’’) or TPH 

organization that maintains a position in 

the options on the same side of the 

market, for its own account or for the 

account of a customer, report certain 

information to the Exchange. This 

information would include, but would 

not be limited to, the options’ position, 

whether such position is hedged and, if 

so, a description of the hedge, and the 

collateral used to carry the position, if 

applicable. Exchange Market-Makers 20

(including Designated Primary MarketMakers) 21 would continue to be exempt 

from this reporting requirement, as 

Market-Maker information can be 

accessed through the Exchange’s market 

surveillance systems. In addition, the 

general reporting requirement for 

customer accounts that maintain an 

aggregate position of 200 or more 

options contracts would remain at this 

level for the options subject to this 

proposal.22

The Exchange believes that the 

existing surveillance procedures and 

reporting requirements at the Exchange, 

other options exchanges, and at the 

several clearing firms are capable of 

properly identifying unusual and/or 

illegal trading activity. In addition, 

routine oversight inspections of the 

Exchange’s regulatory programs by the 

Commission have not uncovered any 

material inconsistencies or 

shortcomings in the manner in which 

the Exchange’s market surveillance is 

conducted. These procedures utilize 

daily monitoring of market movements 

via automated surveillance techniques 

to identify unusual activity in both 

options and underlying stocks.23

Furthermore, large stock holdings 

must be disclosed to the Commission by 

way of Schedules 13D or 13G.24 The 

positions for options subject to this 

proposal are part of any reportable 

positions and, thus, cannot be legally 

hidden. Moreover, the Exchange’s 

requirement that TPHs file reports with 

the Exchange for any customer who 

held aggregate large long or short 

positions of any single class for the 

previous day will continue to serve as 

an important part of the Exchange’s 

surveillance efforts. 

The Exchange believes that the 

current financial requirements imposed 

by the Exchange and by the Commission 

adequately address concerns that a TPH 

or its customer may try to maintain an 

inordinately large un-hedged position in 

the options subject to this proposal. 

Current margin and risk-based haircut 

methodologies serve to limit the size of 

positions maintained by any one 

account by increasing the margin and/ 

or capital that a TPH must maintain for 

a large position held by itself or by its 


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25See Exchange Rule 12.3 for a description of 

margin requirements. 

26 17 CFR 240.15c3–1. 

27 15 U.S.C. 78f(b). 

28 15 U.S.C. 78f(b)(5). 

29See Securities Exchange Act Release Nos. 

67672 (August 15, 2012), 77 FR 50750 (August 22, 

2012) (SR–NYSEAmex–2012–29); 67937 

(September 27, 2012), 77 FR 60489 (October 3, 

2012) (SR–CBOE–2012–091). 

30See Securities Exchange Act Release Nos. 

68086 (October 23, 2012), 77 FR 65600 (October 29, 

2012) (SR–CBOE–2012–066); 64928 (July 20, 2011), 

76 FR 44633 (July 26, 2011) (SR–CBOE–2011–065); 

64695 (June 17, 2011), 76 FR 36942 (June 23, 2011) 

(SR–PHLX–2011–58); and 55155 (January 23, 2007), 

72 FR 4741 (February 1, 2017) (SR–CBOE–2007– 

008.). 

31See Securities Exchange Act Release Nos. 

44994 (October 26, 2001), 66 FR 55722 (November 

2, 2001) (SR–CBOE–2001–22); 52650 (October 21, 

2005), 70 FR 62147 (October 28, 2005) (SR–CBOE– 

2005–41) (‘‘NDX Approval’’). 

32See NDX Approval at 62149. 

33 Id. 

34For example, Nasdaq position limits are 

determined by the position limits established by the 

Exchange. See Nasdaq Rule Sec. 7 (Position Limits). 

customer.25 In addition, Rule 15c3–1 26

imposes a capital charge on TPHs to the 

extent of any margin deficiency 

resulting from the higher margin 

requirement. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with the 

requirements of the Act and the rules 

and regulations thereunder that are 

applicable to a national securities 

exchange, and, in particular, with the 

requirements of Section 6(b) of the 

Act.27 In particular, the proposal is 

consistent with Section 6(b)(5) of the 

Act 28 because it is 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 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. The current position 

limits for the options subject to this 

proposal have inhibited the ability of 

Market Makers to make markets on the 

Exchange. Specifically, the proposal is 

designed to encourage Market Makers to 

shift liquidity from over the counter 

markets onto the Exchange, which will 

enhance the process of price discovery 

conducted on the Exchange through 

increased order flow. The proposal will 

also benefit institutional investors as 

well as retail traders, and public 

customers, by providing them with a 

more effective trading and hedging 

vehicle. In addition, the Exchange 

believes that the structure of the ETFs 

and ETNs subject to this proposal and 

the considerable liquidity of the market 

for options on those ETFs and ETNs 

diminishes the opportunity to 

manipulate this product and disrupt the 

underlying market that a lower position 

limit may protect against. 

Increased position limits for select 

actively traded options, such as that 

proposed herein, is not novel and has 

been previously approved by the 

Commission. For example, the 

Commission has previously approved, 

on a pilot basis, eliminating position 

limits for options on.29 Additionally, the 

Commission has approved similar 

proposed rule changes to increase 

position limits for options on highly 

liquid, actively-traded ETFs,30

including a proposal to permanently 

eliminate the position and exercise 

limits for options overlaying the S&P 

500 Index, S&P 100 Index, Dow Jones 

Industrial Average, and Nasdaq 100 

Index.31 In approving the permanent 

elimination of position and exercise 

limits, the Commission relied heavily 

upon the Exchange’s surveillance 

capabilities, the Commission expressed 

trust in the enhanced surveillance and 

reporting safeguards that the Exchange 

took in order to detect and deter 

possible manipulative behavior which 

might arise from eliminating position 

and exercise limits.32 Furthermore, as 

described more fully above, options on 

other ETFs a have the position limits 

proposed herein with similar trading 

characteristics and trading volumes than 

similar to the ETFs and ETNs subject to 

the proposed rule change. 

Lastly, the Commission expressed the 

belief that removing position and 

exercise limits may bring additional 

depth and liquidity without increasing 

concerns regarding intermarket 

manipulation or disruption of the 

options or the underlying securities.33

The Exchange’s enhanced surveillance 

and reporting safeguards continue to be 

designed to deter and detect possible 

manipulative behavior which might 

arise from eliminating position and 

exercise limits. 

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 not 

necessary or appropriate in furtherance 

of the purposes of the Act. On the 

contrary, the Exchange believes the 

proposal promotes competition because 

it will enable other exchanges who refer 

to the Exchange’s rules concerning 

position limits to attract additional 

order flow from the over-the-counter 

market to exchanges, who would in turn 

compete amongst each other for those 

orders.34 The Exchange believes that the 

proposed rule change will result in 

additional opportunities to achieve the 

investment and trading objectives of 

market participants seeking efficient 

trading and hedging vehicles, to the 

benefit of investors, market participants, 

and the marketplace in general. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any written 

comments from members or other 

interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the Exchange consents, the Commission 

will: 

A. By order approve or disapprove 

such proposed rule change, or 

B. institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

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–2017–057 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–2017–057. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 82, No. 168 / Thursday, August 31, 2017 / Notices 41461 

35 17 CFR 200.30–3(a)(12). 

1Each OFA must be accompanied by the filing 

fee, which currently is set at $1,700. See 49 CFR 

1002.2(f)(25). Effective on September 1, 2017, the 

fee will increase to $1,800. See Regulations 

Governing Fees for Servs. Performed in Connection 

with Licensing & Related Servs.—2017 Update, EP 

542 (Sub-No. 25) (STB served July 28, 2017). 

2Because this is a discontinuance proceeding and 

not an abandonment, trail use/rail banking and 

public use conditions are not appropriate. Because 

there will be an environmental review during 

abandonment, this discontinuance does not require 

environmental review. 

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– 

2017–057 and should be submitted on 

or before September 21, 2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.35

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–18446 Filed 8–30–17; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF STATE 

[Public Notice 10105] 

Industry Advisory Group: Notice of 

Charter Renewal 

The Department of State has approved 

the renewal of the charter for the Bureau 

of Overseas Buildings Operations’ 

(OBO) Industry Advisory Group for an 

additional two-year period. The group’s 

annual meeting is held in the Harry S 

Truman Building at the U.S. Department 

of State, located at 2201 C Street NW., 

Washington, DC. Each meeting is 

devoted to an exchange of ideas 

between OBO’s senior management and 

the group members on issues relating to 

property management; site acquisition; 

project planning; design and 

engineering; construction; facility 

maintenance; and building operations. 

The meetings are open to the public and 

are subject to advance registration and 

provision of required security 

information. Procedures for registration 

are included with each meeting 

announcement, no later than fifteen 

business days before each meeting. 

OBO’s mission is to provide safe, 

secure and functional facilities that 

represent the U.S. government to the 

host nation and support our staff in the 

achievement of U.S. foreign policy 

objectives. These facilities represent 

American values and the best in 

American architecture, engineering, 

technology, sustainability, art, culture, 

and construction execution. 

For further information, please 

contact Christine Foushee at 312–353– 

1242 or FousheeCT@state.gov. 

William Moser, 

Director, Acting, Overseas Buildings 

Operations, Department of State. 

[FR Doc. 2017–18507 Filed 8–30–17; 8:45 am] 

BILLING CODE 4710–51–P 

SURFACE TRANSPORTATION BOARD 

[Docket No. AB 303 (Sub-No. 48X)] 

Wisconsin Central Ltd.— 

Discontinuance of Service 

Exemption—in Waupaca County, Wis 

Wisconsin Central Ltd. (WCL) has 

filed a verified notice of exemption 

under 49 CFR pt. 1152 subpart F— 

Exempt Abandonments and 

Discontinuances of Service to 

discontinue service over approximately 

10.3 miles of rail line extending from 

milepost 40.0 in New London, Wis. to 

milepost 50.3 in Manawa, Wis., 

Waupaca County, Wis. (the Line). The 

Line traverses United States Postal 

Service Zip Code 54949 and 54961. 

WCL has certified that: (1) No local 

traffic has moved over the Line for at 

least two years; (2) no overhead traffic 

on the Line needs to be rerouted; (3) no 

formal complaint filed by a user of a rail 

service on the Line (or by a state or local 

government entity acting on behalf of 

such user) regarding cessation of service 

over the Line is pending either with the 

Surface Transportation Board (Board) or 

with any U.S. District Court or has been 

decided in favor of a complainant 

within the two-year period; and (4) the 

requirements at 49 CFR 1105.12 

(newspaper publication) and 49 CFR 

1152.50(d)(1) (notice to governmental 

agencies) have been met. 

As a condition to this exemption, any 

employee adversely affected by the 

discontinuance of service shall be 

protected under Oregon Short Line 

Railroad—Abandonment Portion 

Goshen Branch Between Firth & 

Ammon, in Bingham & Bonneville 

Counties, Idaho, 360 I.C.C. 91 (1979). To 

address whether this condition 

adequately protects affected employees, 

a petition for partial revocation under 

49 U.S.C. 10502(d) must be filed. 

Provided no formal expression of 

intent to file an offer of financial 

assistance (OFA) to subsidize continued 

rail service has been received, this 

exemption will be effective September 

30, 2017, unless stayed pending 

reconsideration. Petitions to stay that do 

not involve environmental issues and 

formal expressions of intent to file an 

OFA to subsidize continued rail service 

under 49 CFR 1152.27(c)(2),1 must be 

filed by September 8, 2017.2 Petitions 

for reconsideration must be filed by 

September 30, 2017, with the Surface 

Transportation Board, 395 E Street SW., 

Washington, DC 20423–0001. 

A copy of any petition filed with 

Board should be sent to WCL’s 

representative, Audrey L. Brodrick, 

Fletcher & Sippell LLC, 29 North 

Wacker Drive, Suite 920, Chicago, IL 

60606. 

If the verified notice contains false or 

misleading information, the exemption 

is void ab initio. 

Board decisions and notices are 

available on our Web site at 

‘‘WWW.STB.GOV.’’ 

Decided: August 28, 2017. 

By the Board, Rachel D. Campbell, 

Director, Office of Proceedings. 

Marline Simeon, 

Clearance Clerk. 

[FR Doc. 2017–18483 Filed 8–30–17; 8:45 am] 

BILLING CODE 4915–01–P 

SURFACE TRANSPORTATION BOARD 

[Docket No. AB 1244X] 

Columbia & Cowlitz Railway, LLC— 

Abandonment Exemption—in Cowlitz 

County, Wash 

Columbia & Cowlitz Railway, LLC 

(CLC), has filed a verified notice of 

exemption under 49 CFR pt. 1152 

subpart F—Exempt Abandonments to 

abandon an approximately 7-mile rail 

line between milepost 1.5 at Longview 

and milepost 8.5 at Ostrander Junction, 


sradovich on DSK3GMQ082PROD with NOTICES