Document ID: SEC-2014-0587-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Board Options Exchange, Inc.
Posted Date: 2014-04-09T04:00Z

[Federal Register Volume 79, Number 68 (Wednesday, April 9, 2014)]
[Notices]
[Pages 19702-19703]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-07890]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71860; File No. SR-CBOE-2014-035]

Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Fix Technical Errors

April 3, 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 April 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The Exchange proposes to fix technical errors in its rules. 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 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 make an administrative change to correct 
an inadvertent typographical error in Interpretation and Policy .03 in 
Rule 4.21. Additionally, the Exchange proposes to make an 
administrative change to correct the erroneous failure to delete 
Interpretation and Policy .01 from Exchange Rule 8.93. The Exchange 
proposes to make the proposed changes so the text properly reflects the 
intention of the Exchange to remove Rule 8.93 in its entirety and to 
fix the typographical error in Rule 4.21. Both the inadvertent 
typographical error and the erroneous failure to delete part of Rule 
8.93 are explained below.
    In Interpretation and Policy .03 of Rule 4.21, there is an 
inadvertent typographical error where the word ``United'' (as in ``the 
United States of America'') was instead spelled as ``Unites.'' The 
Exchange is proposing to correct this erroneous typographical error to 
avoid any confusion and to better reflect the intention of the Exchange 
for this interpretation and policy to say ``United States,'' rather 
than ``Unites States.''
    The Exchange recently filed a rule change, SR-CBOE-2013-110, to 
eliminate the e-DPM program from the Exchange rules.\3\ As part of that 
filing, there was an erroneous failure to delete Rule 8.93 in its 
entirety, unintentionally failing to remove Interpretation and Policy 
.01 from the corresponding rule. This error can be found in the 
remaining text of Rule 8.93 under the Interpretations and Policies 
section, where the phrase ``[w]hen the underlying security for a class 
is in a limit up-limit down state, as defined in Rule 6.3A, e-DPMs 
shall have no quoting obligations in the class'' was inadvertently not 
deleted along with the rest of Rule 8.93. The Exchange is now proposing 
to amend this error to more accurately reflect the intention and 
practice of the Exchange and to avoid any confusion.
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    \3\ See Securities Exchange Act Release No. 34-71227 (Jan. 2, 
2014), 79 FR 1398 (Jan. 8, 2014) (order approving SR-CBOE-2013-110).
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2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Act and the rules and regulations thereunder applicable to the 
Exchange and, in particular, the requirements of Section 6(b) of the 
Act.\4\ Specifically, the Exchange believes the proposed rule change is 
consistent with the Section 6(b)(5) \5\ requirements that the rules of 
an exchange be designed to prevent fraudulent and manipulative acts and 
practices, to promote just and equitable principles of trade, to foster 
cooperation and coordination with persons engaged in regulating, 
clearing, settling, processing information with respect to, and 
facilitating transactions in securities, to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, and, in general, to protect investors and the public interest. 
Additionally, the Exchange believes the proposed rule change is 
consistent with the Section 6(b)(5) \6\ requirement that the rules of 
an exchange not be designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
    \6\ Id.
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    In particular, the proposed rule change is consistent with these 
provisions as it will more accurately reflect the intentions of the 
Exchange to eliminate Rule 8.93 and the corresponding e-DPM program and 
also correct the inadvertent typographical error in Interpretation and 
Policy .03 of Rule 4.21. There are no substantive changes being made in 
the proposed rule changes, and thus, the current practices of the 
Exchange will remain the same. The Exchange believes the proposed rule 
changes will help to avoid confusion, thereby removing impediments to 
and perfecting the mechanism of a free and open market and a national 
market system.

B. Self-Regulatory Organization's Statement on Burden on Competition

    CBOE does not believe that the proposed rule changes will impose 
any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act. The

[[Page 19703]]

Exchange does not believe the proposed rule changes impose any burden 
on intramarket competition because they applies [sic] to all Trading 
Permit Holders. Additionally, the Exchange does not believe the 
proposed rule change will impose any burden on intermarket competition 
as it is merely attempting to correct the erroneous failure to delete 
Rule 8.93 in its entirety and to correct a typographical error in Rule 
4.21. The Exchange does not propose any substantive changes to the 
Exchange's operations or its rules that the Exchange believes could 
have any impact on competition (intermarket or intramarket).

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    The Exchange neither solicited nor received comments on the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change does not:
    A. Significantly affect the protection of investors or the public 
interest;
    B. impose any significant burden on competition; and
    C. become operative for 30 days from the date on which it was 
filed, or such shorter time as the Commission may designate, it has 
become effective pursuant to Section 19(b)(3)(A) of the Act \7\ and 
Rule 19b-4(f)(6) \8\ 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.
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(6).
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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-2014-035 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-2014-035. 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 20549-1090 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 offices 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-2014-035, and should be submitted on or before April 30, 2014.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-07890 Filed 4-8-14; 8:45 am]
BILLING CODE 8011-01-P