Federal Register / Vol. 82, No. 210 / Wednesday, November 1, 2017 / Notices 50705 

6 Id. 

7 17 CFR 240.17Ad–22(e)(7)(viii). 

8 15 U.S.C. 78q–1(b)(3)(I). 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

disrupting its ordinary settlement cycle 

(and thusly, to avoid imposing the same 

disruption on Clearing Members), 

thereby avoiding the need to extend the 

settlement window and allowing OCC to 

settle transactions in a more timely 

fashion. In this regard, OCC believes the 

proposed rule change is designed to 

promote the prompt and accurate 

clearance and settlement of securities 

transactions, in accordance with the 

requirements of Section 17A(b)(3)(F) of 

the Act.6

Additionally, Rule 17Ad–22(e)(7)(viii) 

requires that a covered clearing agency 

(‘‘CCA’’) address foreseeable liquidity 

shortfalls that would not be covered by 

the CCA’s liquid resources and seek to 

avoid unwinding, revoking, or delaying 

the same-day settlement of payment 

obligations.7 As stated above, OCC 

believes that it could be foreseeable, 

though extremely unlikely, that a bank 

or securities or commodities clearing 

organization may fail to make timely 

settlement with OCC as the result of an 

event that does not result in a loss to 

OCC from the bankruptcy, insolvency, 

resolution, suspension of operations or 

similar event of such bank or securities 

or commodities clearing organization. 

The proposed rule change would 

improve OCC’s ability to address such 

situations by expanding OCC’s 

borrowing authority to enable OCC to 

borrow against the Clearing Fund in 

order to avoid disrupting its ordinary 

settlement cycle (and thusly, to avoid 

imposing the same disruption on 

Clearing Members). 

The proposed rule change is not 

inconsistent with the existing rules of 

OCC, including any other rules 

proposed to be amended. 

(B) Clearing Agency’s Statement on 

Burden on Competition 

Section 17A(b)(3)(I) of the Act 8

requires that the rules of a clearing 

agency not impose any burden on 

competition not necessary or 

appropriate in furtherance of the 

purposes of the Act. OCC does not 

believe the proposed rule change would 

have any impact or impose any burden 

on competition. The primary purpose of 

the proposed rule change is to enhance 

the existing tools OCC has to address 

liquidity shortfalls by expanding the 

existing borrowing authority in OCC’s 

By-Laws to also authorize borrowing in 

the extraordinary event that OCC faces 

a liquidity need in order to complete 

same day settlement. The proposed rule 

change would apply equally to all 

Clearing Members and would not affect 

Clearing Members’ access to OCC’s 

services or disadvantage or favor any 

particular user in relationship to 

another user. As such, OCC believes that 

the proposed changes would not have 

any impact or impose any burden on 

competition. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants or Others 

Written comments were not and are 

not intended to be solicited with respect 

to the proposed rule change, and none 

have been received. 

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 self-regulatory organization 

consents, the Commission will: 

(A) By order approve or disapprove 

the 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 Commissions Internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

OCC–2017–017 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–OCC–2017–017. 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 such 

filing also will be available for 

inspection and copying at the principal 

office of OCC and on OCC’s Web site at 

http://www.theocc.com/components/ 

docs/legal/rules_and_bylaws/sr_occ_17_

017.pdf. 

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–OCC–2017–017 and should 

be submitted on or before November 22, 

2017. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–23736 Filed 10–31–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81950; File No. SR– 

BatsBZX–2017–71] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Update Rule 

21.1 To Adopt a New Time in Force 

Applicable to the Exchange’s Equity 

Options Platform 

October 26, 2017. 

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 

20, 2017, Cboe BZX Exchange, Inc. (the 

‘‘Exchange’’) (formerly known as Bats 

BZX Exchange, Inc.) filed with the 

Securities and Exchange Commission 


sradovich on DSK3GMQ082PROD with NOTICES
50706 Federal Register / Vol. 82, No. 210 / Wednesday, November 1, 2017 / Notices 

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

4 17 CFR 240.19b–4(f)(6)(iii). 

5See Securities Exchange Act Release No. 79585 

(December 16, 2016), 81 FR 93988 (December 22, 

2016) (SR–BatsBZX–2016–68; SR–BatsBYX–2016– 

29; SR–BatsEDGA–2016–24; SR–BatsEDGX–2016– 

60). 

6See Securities Exchange Act Release No. 81891 

(October 17, 2017) (SR–Bats–EDGX–2017–29). 

7See, e.g., C2 Rule 6.10(c)(7); ISE Rule 715(o). 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(5). 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Exchange has 

designated this proposal as a ‘‘noncontroversial’’ proposed rule change 

pursuant to Section 19(b)(3)(A) of the 

Act 3 and Rule 19b–4(f)(6)(iii) 

thereunder,4 which renders it effective 

upon filing with the Commission. 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 filed a proposal to 

update Rule 21.1 to adopt a new Time 

in Force applicable to the Exchange’s 

equity options platform (‘‘BZX 

Options’’). 

The text of the proposed rule change 

is available at the Exchange’s Web site 

at www.markets.cboe.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 

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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

In 2016, the Exchange and its 

affiliates Bats BYX Exchange, Inc. (now 

known as Cboe BYX Exchange, Inc.) 

(‘‘BYX’’), Bats EDGA Exchange, Inc. 

(now known as Cboe EDGA Exchange, 

Inc.) (‘‘EDGA’’), and Bats EDGX 

Exchange, Inc. (now known as Cboe 

EDGX Exchange, Inc.) (‘‘EDGX’’) 

received approval to affect a merger (the 

‘‘Merger’’) of the Exchange’s indirect 

parent company, Bats Global Markets, 

Inc. (‘‘BGM’’), with CBOE Holdings, Inc. 

(now known as Cboe Global Markets, 

Inc.) (‘‘CBOE Holdings’’), the direct 

parent of Chicago Board Options 

Exchange, Incorporated (now known as 

Cboe Exchange, Inc.) (‘‘Cboe Options’’) 

and C2 Options Exchange, Incorporated 

(now known as Cboe C2 Exchange, Inc.) 

(‘‘C2 Options’’, and together with the 

Exchange, BYX, EDGA, EDGX, and Cboe 

Options the ‘‘Cboe Affiliated 

Exchanges’’).5 The Cboe Affiliated 

Exchanges are working to align certain 

system functionality, retaining only 

intended differences between the Cboe 

Affiliated Exchanges, in the context of a 

technology migration. In the context of 

such migration, the Exchange is working 

to align its systems to offer certain 

features currently offered by Cboe 

Options and C2 Options as well as 

striving to maintain consistent 

technology with the options platform 

operated by EDGX (‘‘EDGX Options’’). 

Although the Exchange intentionally 

offers certain features that differ from 

those offered by its affiliates and will 

continue to do so, the Exchange believes 

that offering similar functionality to the 

extent practicable will reduce potential 

confusion for Users. 

The Exchange proposes to amend 

Exchange Rule 21.1, Definitions, to add 

a new Time in Force, namely the time 

in force of ‘‘At the Open’’ or ‘‘OPG’’. 

As proposed, ‘‘At the Open’’ or 

‘‘OPG’’ shall mean, for an order so 

designated, an order that shall only 

participate in the opening process on 

the Exchange. An OPG order not 

executed in the opening process will be 

cancelled. The Exchange’s affiliate, 

EDGX Options, recently received 

approval of various rule changes, 

including the adoption of a Time in 

Force of OPG that is identical to the 

Exchange’s proposed rule.6 The 

Exchange notes that other options 

exchanges also offer Times in Force 

that, similar to OPG, limit an order to 

participating in an exchange’s opening 

process.7

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 8 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 9

in particular, in that it is designed to 

promote just and equitable principles of 

trade, 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. In 

particular, consistent rules and 

functionality between the Exchange and 

its affiliated exchanges will reduce 

complexity and help avoid potential 

confusion by the Users of the Exchange 

that are also participants on other Cboe 

Affiliated Exchanges. 

The Exchange believes the proposed 

amendment will reduce complexity and 

increase the understanding of the 

Exchange’s operations for all Users of 

the Exchange. In particular, by offering 

the same Times in Force as EDGX 

Options, the Exchange will avoid 

confusion from market participants that 

participate on both the Exchange and 

EDGX Options. In turn, when Cboe 

Options and C2 Options are migrated to 

the same technology as that of the 

Exchange, Users of the Exchange and 

other Cboe Affiliated Exchanges will 

have access to similar functionality on 

all Cboe Affiliated Exchanges. As such, 

the proposed rule change would foster 

cooperation and coordination with 

persons engaged in facilitating 

transactions in securities and would 

remove impediments to and perfect the 

mechanism of a free and open market 

and a national market system. 

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 

Exchange notes that the proposal will 

promote consistency between the 

Exchange and its affiliated exchanges, 

and is part of a larger technology 

integration that will ultimately reduce 

complexity for Users of the Exchange 

that are also participants on other Cboe 

Affiliated Exchanges. The Exchange 

does not believe that the proposed 

changes will have any direct impact on 

competition. Thus, the Exchange does 

not believe that the proposal creates any 

significant impact on competition. 

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. 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 82, No. 210 / Wednesday, November 1, 2017 / Notices 50707 

10 17 CFR 240.19b–4(f)(6). As required under Rule 

19b–4(f)(6)(iii), the Exchange provided the 

Commission with written notice of its intent to file 

the proposed rule change, along with a brief 

description and the text of 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. 

11 17 CFR 240.19b–4(f)(6). 

12 17 CFR 240.19b–4(f)(6)(iii). 

13For 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). 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.17Ad–22(e)(4)(ix) and (e)(13). 

4The Commission notes that Exhibit 5 is 

included in the filing, not in this Notice. 

5OCC’s By-Laws and Rules can be found on 

OCC’s public Web site: http://optionsclearing.com/ 

about/publications/bylaws.jsp. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act and Rule 19b– 

4(f)(6) thereunder.10

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act 11 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6)(iii) 12

permits the Commission to 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 Commission notes that the 

proposed rule change is based on EDGX 

Rule 21.1(f)(6) and is identical to such 

rule. Thus, the Commission believes 

that waiver of the operative delay is 

consistent with the protection of 

investors and the public because the 

proposal does not present any new or 

novel issues that have not been 

previously considered by the 

Commission. Therefore, the 

Commission hereby waives the 30-day 

operative delay and designates the 

proposal operative upon filing.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 

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– 

BatsBZX–2017–71 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–BatsBZX–2017–71. 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. 

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–BatsBZX–2017–71 and 

should be submitted on or before 

November 22, 2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–23732 Filed 10–31–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81955; File No. SR–OCC– 

2017–010] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Notice 

of Filing of Proposed Rule Change 

Related to The Options Clearing 

Corporation’s Default Management 

Policy 

October 26, 2017. 

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 

12, 2017, The Options Clearing 

Corporation (‘‘OCC’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared primarily by OCC. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

This proposed rule change by The 

Options Clearing Corporation (‘‘OCC’’) 

would formalize and update OCC’s 

Default Management Policy, which 

would promote compliance with 

multiple requirements applicable to 

OCC under Rule 17Ad–22, including 

Rules 17Ad–22(e)(4)(ix) (Replenishment 

of Resources) and (e)(13) (Default 

Management).3 The Default 

Management Policy is included as 

confidential Exhibit 5.4

The proposed rule change does not 

require any changes to the text of OCC’s 

By-Laws or Rules. All terms with initial 

capitalization that are not otherwise 

defined herein have the same meaning 

as set forth in the OCC By-Laws and 

Rules.5


sradovich on DSK3GMQ082PROD with NOTICES