Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Notices 45647 

32The Commission notes that certain other 

proposals for the listing and trading of Managed 

Fund Shares include a representation that the 

exchange will ‘‘surveil’’ for compliance with the 

continued listing requirements. See, e.g., Securities 

Exchange Act Release No. 77499 (April 1, 2016), 81 

FR 20428 (April 7, 2016) (Notice of Filing of 

Amendment No. 2, and Order Granting Accelerated 

Approval of a Proposed Rule Change, as Modified 

by Amendment No. 2, to List and Trade Shares of 

the SPDR DoubleLine Short Duration Total Return 

Tactical ETF of the SSgA Active Trust), available 

at: http://www.sec.gov/rules/sro/bats/2016/34- 

77499.pdf. In the context of this representation, it 

is the Commission’s view that ‘‘monitor’’ and 

‘‘surveil’’ both mean ongoing oversight of the 

Fund’s compliance with the continued listing 

requirements. Therefore, the Commission does not 

view ‘‘monitor’’ as a more or less stringent 

obligation than ‘‘surveil’’ with respect to the 

continued listing requirements. 

33 15 U.S.C. 78f(b)(5). 

34 15 U.S.C. 78s(b)(2). 

35 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange Act Release No. 80929 

(June 14, 2017), 82 FR 28157 (June 20, 2017) (SR– 

NYSEArca–2017–40) (‘‘Notice’’). 

5See Partial Amendment 2 to SR–NYSEArca– 

2017–40 (August 15, 2017). The Amendment also 

was submitted to the Commission as a comment 

letter on the Original Filing. See letter from Martha 

Redding, Associate General Counsel, NYSE Group, 

to Brent J. Fields, Secretary, Commission (August 

15, 2017), available at https://www.sec.gov/ 

Continued 

ISG or is a market with which the 

Exchange does not have a CSSA. 

(9) Each Fund will enter into swap 

agreements and other OTC transactions 

only with large, established and well 

capitalized financial institutions that 

meet certain credit quality standards 

and monitoring policies. Each Fund will 

use various techniques to minimize 

credit risk including early termination 

or reset and payment, using different 

counterparties and limiting the net 

amount due from any individual 

counterparty. 

(10) A minimum of 100,000 Shares of 

each Fund will be outstanding at the 

commencement of trading on the 

Exchange. 

The Exchange represents that all 

statements and representations made in 

this filing regarding (a) the description 

of the portfolios of the Funds or 

Benchmark, (b) limitations on portfolio 

holdings or the Benchmark, or (c) the 

applicability of Exchange listing rules 

specified in this rule filing shall 

constitute continued listing 

requirements for listing the Shares on 

the Exchange. The issuer has 

represented to the Exchange that it will 

advise the Exchange of any failure by 

the Funds to comply with the continued 

listing requirements, and, pursuant to 

its obligations under Section 19(g)(1) of 

the Act, the Exchange will monitor for 

compliance with the continued listing 

requirements.32 If a Fund is not in 

compliance with the applicable listing 

requirements, the Exchange will 

commence delisting procedures under 

NYSE Arca Equities Rule 5.5(m). 

This approval order is based on all of 

the Exchange’s representations and 

description of the Funds, including 

those set forth above and in Amendment 

No. 2 to the proposed rule change. The 

Commission notes that the Shares must 

comply with the requirements of NYSE 

Arca Equities Rule 8.200 and 

Commentary .02 thereto to be listed and 

traded on the Exchange on an initial and 

continuing basis. 

For the foregoing reasons, the 

Commission finds that the proposed 

rule change, as modified by Amendment 

Nos. 2 and 3 thereto, is consistent with 

Section 6(b)(5) of the Act 33 and the 

rules and regulations thereunder 

applicable to a national securities 

exchange. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Exchange Act,34

that the proposed rule change (SR– 

NYSEArca–2017–05), as modified by 

Amendment Nos. 2 and 3 thereto, be, 

and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.35

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–20896 Filed 9–28–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81713; File No. SR– 

NYSEArca–2017–109] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending NYSE Arca 

Rule 14.2 To Make Technical and 

Conforming Updates in Connection 

With the Recent Merger of NYSE Arca 

Equities, Inc. With and Into the 

Exchange 

September 25, 2017. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on 

September 12, 2017, NYSE Arca, Inc. 

(the ‘‘Exchange’’ or ‘‘NYSE Arca’’) 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 selfregulatory organization. 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 

NYSE Arca Rule 14.2 (Liability of 

Exchange) to make technical and 

conforming updates in connection with 

the recent merger of NYSE Arca 

Equities, Inc. (‘‘NYSE Arca Equities’’) 

with and into the Exchange. 

The proposed rule change is available 

on the Exchange’s Web site at 

www.nyse.com, at the principal office of 

the Exchange, 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 

self-regulatory organization 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 those 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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

NYSE Arca Rule 14.2 to make technical 

and conforming updates in connection 

with the recent merger of its whollyowned subsidiary NYSE Arca Equities, 

Inc. (‘‘NYSE Arca Equities’’) with and 

into the Exchange (the ‘‘Merger’’). 

On June 2, 2017, the Exchange filed 

rule changes with the Securities and 

Exchange Commission (‘‘Commission’’) 

in connection with the proposed Merger 

(the ‘‘Original Filing’’).4 On August 15, 

2017, the Exchange filed a partial 

amendment to the Original Filing (the 

‘‘Amendment’’), which, among other 

things, amended the Original Filing to 

reflect changes to the proposed rule text 

that resulted from changes to the NYSE 

Arca and NYSE Arca Equities rules that 

became operative after June 2, 2017.5 On 


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comments/sr-nysearca-2017-40/nysearca201740- 

2221802-160732.pdf. 

6See Securities Exchange Act Release No. 81419 

(August 17, 2017), 82 FR 40044 (August 23, 2017) 

(SR–NYSEArca–2017–40) (Approval Order). 

7See id. at 40044. 

8See id. at 40048. 

9See Securities Exchange Act Release No. 81197 

(July 24, 2017), 82 FR 35244 (July 28, 2017) (SR– 

NYSEArca–2017–46) (Approval Order). 

10The Amendment updated NYSE Arca Equities 

Rule 13.2 in Exhibit 5I to Original Filing to reflect 

the changes made in SR–NYSEArca–2017–46. See 

Item 19 of the Amendment, supra note 5, at 13–15. 

Exhibit 5I set forth the NYSE Arca Equities Rules, 

which were deleted in their entirety at the time of 

the Merger. 

11The Exchange notes that during the period 

between the Merger and the date of the present 

filing, it did not receive a claim that exceeded the 

liability limits and thus the Exchange was not 

prevented from fully compensating an ETP Holder 

for losses suffered in connection with the use of the 

Exchange’s facilities, including losses caused by the 

negligent act or omission of an Exchange employee. 

12See Notice, supra note 4, at 28161 (noting that 

in rule text based on NYSE Arca Equities rules, 

references to the Corporation would be replaced 

with references to the Exchange). 

13 15 U.S.C. 78f(b). 

14 15 U.S.C. 78f(b)(1). 

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

16The Commission notes that NYSE Arca Rule 

14.2 applies to ETP Holders, OTP Holders, and OTP 

Firms. 

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

18 15 U.S.C. 78f(b)(1). 

August 17, 2017, the Commission 

approved the proposed rule changes, as 

amended, and the Merger occurred on 

that same date.6

Prior to the Merger, NYSE Arca had 

two rulebooks: The NYSE Arca rules for 

its options market and the NYSE Arca 

Equities rules for its equities market. At 

the Merger, the NYSE Arca Equities 

rules were integrated into the NYSE 

Arca rules, so that there is now one 

NYSE Arca rulebook.7 In that process, 

NYSE Arca Rule 14 (Liability of 

Directors and Exchange) was amended 

to incorporate NYSE Arca Equities Rule 

13 (Liability of Directors and 

Corporation).8

On July 24, 2017, the Commission 

approved a proposed rule change to 

amend NYSE Arca Equities Rule 13.2 

(Liability of Corporation).9 Because such 

rule change was approved after the 

Original Filing but prior to the Merger, 

it should have been included in the 

Amendment. However, due to an 

oversight, the Amendment did not 

incorporate the changes to NYSE Arca 

Equities Rule 13.2 into NYSE Arca Rule 

14.2.10 Accordingly, the Exchange 

proposes to make technical and 

conforming changes to NYSE Arca Rule 

14.2 in order to conform it to the text 

of previous NYSE Arca Equities Rule 

13.2 approved by the Commission on 

July 24, 2017.11

More specifically, the Exchange 

proposes to: 

• Amend Rule 14.2(a) to provide that 

the limitation of liability set forth in that 

paragraph would apply to ‘‘successors, 

representatives, or customers’’ of 

Equities Trading Permit holders (‘‘ETP 

Holders’’), Options Trading Permit 

holders (‘‘OTP Holders’’) and Options 

Trading Permit firms (‘‘OTP Firms’’) of 

the Exchange, consistent with previous 

NYSE Arca Equities Rule 13.2(a); 

• Amend Rule 14.2(b), which 

describes certain prerequisites for 

qualifying for compensation, to replace 

the words ‘‘acknowledged receipt of’’ 

with the word ‘‘received,’’ consistent 

with previous NYSE Arca Equities Rule 

13.2(b); 

• Amend Rule 14.2(b) and (c) to 

eliminate the daily caps on liability, 

consistent with previous NYSE Arca 

Equities Rule 13.2(b) and (c); and 

• Amend Rule 14.2(c) and add a new 

Rule 14.2(d) to change the procedural 

requirements for submitting notification 

to the Exchange of any claims for 

compensation, consistent with previous 

NYSE Arca Equities Rule 13.2(c) and 

(d). As a technical change, the obsolete 

reference to the ‘‘Corporation’’ in NYSE 

Arca Equities Rule 13.2(d), which 

referred to NYSE Arca Equities, would 

be updated to refer to the ‘‘Exchange’’ in 

new Rule 14.2(d).12

(b) Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Exchange Act,13 in 

general, and with Section 6(b)(1) 14 in 

particular, in that it enables the 

Exchange to be so organized as to have 

the capacity to be able to carry out the 

purposes of the Exchange Act and to 

comply, and to enforce compliance by 

its exchange members and persons 

associated with its exchange members, 

with the provisions of the Exchange Act, 

the rules and regulations thereunder, 

and the rules of the Exchange. 

The Exchange believes that the 

proposed change to Rule 14.2 would 

enable the Exchange to continue to be 

so organized as to have the capacity to 

carry out the purposes of the Exchange 

Act and comply and enforce compliance 

with the provisions of the Exchange Act 

by its members and persons associated 

with its members, because, by 

incorporating the amendments to NYSE 

Arca Equities Rule 13.2 that the 

Commission approved on July 24, 2017, 

the proposed change would ensure that 

the changes made to Rule 14.2 to reflect 

the Merger were accurate and complete. 

For similar reasons, the Exchange also 

believes that the proposed rule change 

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

Act,15 in that 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 Exchange believes that the 

proposed rule change would remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system in general, 

to protect investors and the public 

interest, because, by incorporating the 

amendments to NYSE Arca Equities 

Rule 13.2 that the Commission 

approved on July 24, 2017, the proposed 

change would ensure that the changes 

made to Rule 14.2 to reflect the Merger 

were accurate and complete, thereby 

reducing potential investor or market 

participant confusion. The proposed 

change would clarify the scope of the 

limitation of liability, including the 

elimination of daily liability caps and 

applicable procedural requirements, for 

all ETP Holders, OTP Holders, and ETP 

Firms [sic], and ensure that all Exchange 

permit holders would be subject to the 

same rule.16

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Exchange Act,17 in 

general, and with Section 6(b)(1) 18 in 

particular, in that it enables the 

Exchange to be so organized as to have 

the capacity to be able to carry out the 

purposes of the Exchange Act and to 

comply, and to enforce compliance by 

its exchange members and persons 

associated with its exchange members, 

with the provisions of the Exchange Act, 

the rules and regulations thereunder, 

and the rules of the Exchange. 

The Exchange believes that the 

proposed change to Rule 14.2 would 

enable the Exchange to continue to be 

so organized as to have the capacity to 

carry out the purposes of the Exchange 

Act and comply and enforce compliance 

with the provisions of the Exchange Act 

by its members and persons associated 

with its members, because, by 

incorporating the amendments to NYSE 

Arca Equities Rule 13.2 that the 

Commission approved on July 24, 2017, 

the proposed change would ensure that 

the changes made to Rule 14.2 to reflect 

the Merger were accurate and complete. 

For similar reasons, the Exchange also 

believes that the proposed rule change 

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


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19 15 U.S.C. 78f(b)(5). 

20See supra note 16. 

21 15 U.S.C. 78s(b)(3)(A)(iii). 

22 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) 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. 

23 17 CFR 240.19b–4(f)(6). 

24 17 CFR 240.19b–4(f)(6)(iii). 

25For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

26 15 U.S.C. 78s(b)(2)(B). 

Act,19 in that 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 Exchange believes that the 

proposed rule change would remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system in general, 

to protect investors and the public 

interest, because, by incorporating the 

amendments to NYSE Arca Equities 

Rule 13.2 that the Commission 

approved on July 24, 2017, the proposed 

change would ensure that the changes 

made to Rule 14.2 to reflect the Merger 

were accurate and complete, thereby 

reducing potential investor or market 

participant confusion. The proposed 

change would clarify the scope of the 

limitation of liability, including the 

elimination of daily liability caps and 

applicable procedural requirements, for 

all ETP Holders, OTP Holders, and ETP 

Firms [sic], and ensure that all Exchange 

permit holders would be subject to the 

same rule.20

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed rule change is not intended to 

address competitive issues but rather is 

concerned solely with updating Rule 

14.2 to reflect the previously approved 

amendments to NYSE Arca Equities 

Rule 13.2, ensuring that all Exchange 

permit holders would be subject to the 

same rules. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 21 and Rule 

19b–4(f)(6) thereunder.22 Because the 

proposed rule change does not: (i) 

Significantly affect the protection of 

investors or the public interest; (ii) 

impose any significant burden on 

competition; and (iii) become operative 

prior to 30 days from the date on which 

it was filed, or such shorter time as the 

Commission may designate, if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

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

of the Act and Rule 19b–4(f)(6) 

thereunder. 

A proposed rule change filed under 

Rule 19b–4(f)(6) 23 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),24 the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Exchange notes that such 

waiver would allow the Exchange to 

implement without further delay the 

previously-approved amendments to 

NYSE Arca Equities Rule 13.2 and 

would ensure continuity in the 

Exchange’s treatment of ETP Holders, as 

ETP Holders subject to NYSE Arca Rule 

14.2 would be subject to the same 

limitations of liability as they were 

under NYSE Arca Equities Rule 13.2 

prior to the Merger, including the 

elimination of daily liability caps. In 

addition, the Exchange notes that the 

proposed rule change would clarify the 

scope of its limitation of liability rule, 

including the elimination of daily 

liability caps and applicable procedural 

requirements, for all ETP Holders, OTP 

Holders, and OTP Firms, and ensure 

that all Exchange permit holders would 

be subject to the same rule. 

The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest. Waiver 

of the operative delay will help ensure 

consistent treatment of ETP Holders, 

OTP Holders, and OTP Firms under 

NYSE Arca Rule 14.2 and help avoid the 

potential for confusion as to the 

applicable limitations of liability with 

respect to that rule. Therefore, the 

Commission hereby waives the 30-day 

operative delay and designates the 

proposal operative upon filing with the 

Commission.25

At any time within 60 days of the 

filing of such 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 

under Section 19(b)(2)(B) of the Act 26 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– 

NYSEArca–2017–109 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–NYSEArca–2017–109. 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 


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27 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

5Additional opening procedures for classes that 

are not traded on the Hybrid Trading System are 

also contained in Rule 6.2A (Rapid Opening 

System). The ‘‘Hybrid Trading System’’ refers to the 

Exchange’s trading platform that allows MarketMakers to submit electronic quotes in their 

appointed classes and any connectivity to the 

foregoing trading platform that is administered by 

or on behalf of the Exchange, such as a 

communications hub. ‘‘Hybrid 3.0 Platform’’ is an 

electronic trading platform on the Hybrid Trading 

System that allows one or more quoters to submit 

electronic quotes which represent the aggregate 

Market-Maker quoting interest in a series for the 

trading crowd. References to ‘‘Hybrid,’’ ‘‘Hybrid 

System,’’ or ‘‘Hybrid Trading System’’ in the 

Exchange’s Rules include all platforms unless 

otherwise provided by rule, including both the 

Hybrid and Hybrid 3.0 platforms. See Rule 1.1(aaa) 

(Definitions—Hybrid Trading System). Currently, 

all classes traded on the Exchange are traded on the 

Hybrid System as defined under Rule 1.1(aaa), with 

standard SPX options contracts being the only 

group of series of any class that is traded on the 

Hybrid 3.0 Platform. 

6Although Rule 6.2 pertains to trading rotations, 

Interpretation and Policy .02 to Rule 6.2 provides 

that the Designated Primary Market-Maker (‘‘DPM’’) 

or LMM appointed in the class may deviate from 

any rotation policy or procedure issued by the 

Exchange with the approval of two Floor Officials. 

Rule 6.2B(h) is silent as to the type of closing 

procedure that may be employed in the interests of 

a fair and orderly market. Rule 24.13 references 

Rules 6.2 and 6.2B, indicating that the procedures 

set forth in those rules may be employed with 

respect to index options. 

7See Rules 6.2.02, 6.2.03, 6.2.05, 6.2B(h), 6.2B(f), 

and 24.13.01. 

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– 

NYSEArca–2017–109 and should be 

submitted on or before October 20, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.27

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–20888 Filed 9–28–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81714; File No. SR–CBOE– 

2017–062] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Permit the Exchange 

To Publish End-of-Day Indicative 

Values in SPX After the Close of 

Regular Trading Hours in SPX 

September 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 

September 18, 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 Exchange filed the 

proposal as a ‘‘non-controversial’’ 

proposed rule change pursuant to 

Section 19(b)(3)(A)(iii) of the Act 3 and 

Rule 19b–4(f)(6) thereunder.4 The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to adopt a 

process for disseminating two-sided 

indicative values in non-expiring series 

of S&P 500 Index (‘‘SPX’’) options, 

when necessary, in the interests of fair 

and orderly markets (‘‘End-of-Day 

Indicative Values’’). 

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 

The Exchange proposes to amend 

Interpretation and Policy .06 to Rule 

6.2B (Hybrid Opening (and Sometimes 

Closing) System (‘‘HOSS’’)) to establish 

its aftermarket procedure for generating 

two-sided indicative values in certain 

series of SPX options (including series 

of SPX and SPXW). Specifically, 

proposed paragraph (a) would contain 

the current text of Interpretation and 

Policy .06 to Rule 6.2B, which the 

Exchange is not proposing to change, 

regarding the Exchange’s end-of-month 

process for disseminating after the close 

of trading bid and offer quotations that 

reflect a designated Lead MarketMaker’s (‘‘LMM’s’’) calculated 

theoretical fair value of non-expiring 

series of SPX options as of time of the 

close of trading in the underlying cash 

market on the last business day of each 

calendar month. Proposed paragraph (b) 

of Interpretation and Policy .06 to Rule 

6.2B would establish the Exchange’s 

process for generating two-sided 

indicative values for non-expiring series 

of SPX options when the Exchange 

determines that it is necessary to 

publish such values in the interests of 

fair and orderly markets on trading days 

other than the final business day of a 

calendar month. The specific provisions 

of proposed paragraph (b) to 

Interpretation and Policy .06 to Rule 

6.2B are discussed in detail below. 

Background 

The Exchange’s opening and closing 

procedures are codified in Rules 6.2 

(Trading Rotations), 6.2B (Hybrid 

Opening System (‘‘HOSS’’)), and 24.13 

(Trading Rotations).5 In addition to 

describing the Exchange’s normal 

opening and closing procedures, the 

Rules also provide for deviations from 

the Exchange’s regular opening and 

closing procedures, which, from timeto-time, the Exchange employs in the 

interests of fair and orderly markets 

under certain circumstances.6 Pursuant 

to Rules 6.2, 6.2A, 6.2B and 24.13, the 

Exchange may, in the interests of a fair 

and orderly market, decide to employ 

special closing procedures after the 

normal close of a trading session.7 For 

example, Interpretation and Policy .02 

to Rule 6.2 provides that a closing 

trading rotation may be conducted in 

non-expiring options whenever two 

Floor Officials conclude, in their 

judgment, that such action is 


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