Document ID: SEC-2020-0076-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Cboe Exchange, Inc.
Posted Date: 2020-01-21T05:00Z

[Federal Register Volume 85, Number 13 (Tuesday, January 21, 2020)]
[Notices]
[Pages 3448-3449]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-00803]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-87959; File No. SR-CBOE-2019-035]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of 
Designation of Longer Period for Commission Action on Proceedings To 
Determine Whether To Approve or Disapprove a Proposed Rule Change, as 
Modified by Amendment Nos. 1 and 2, Regarding Off-Floor Position 
Transfers

January 14, 2020.
    On July 3, 2019, Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe 
Options'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to amend its rule relating to off-floor position 
transfers. The proposed rule change was published for comment in the 
Federal Register on July 23, 2019.\3\ On August 6, 2019, the Exchange 
filed Amendment No. 1 to the proposed rule change.\4\ On September 4, 
2019, the Commission extended the time period within which to either 
approve the proposed rule change, disapprove the proposed rule change, 
or institute proceedings to determine whether to approve or disapprove 
the propose rule change, to October 21, 2019.\5\ On October 7, 2019, 
the Exchange filed Amendment No. 2 to the proposed rule change.\6\ The 
Commission received two

[[Page 3449]]

comment letters on the proposal.\7\ On October 21, 2019, the Commission 
instituted proceedings to determine whether to approve or disapprove 
the proposed rule changes (``OIP'').\8\ The Commission received two 
additional comments in response to the Notice and OIP, including a 
response from the Exchange.\9\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 86400 (July 17, 
2019), 84 FR 35438 (``Notice'').
    \4\ In Amendment No. 1, the Exchange deleted from the proposed 
rule change the proposal to permit off-floor risk-weighted asset 
(``RWA'') transfers. The exchange subsequently refiled the RWA 
transfer proposal as a separate proposed rule change filing in SR-
CBOE-2019-044. See Securities Exchange Release No. 87107 (September 
25, 2019), 84 FR 52149 (October 1, 2019) (order approving proposed 
rule change to adopt Cboe Rule 6.49B regarding off-floor RWA 
transfers). When the Exchange filed Amendment No. 1 to CBOE-2019-
035, it also submitted the text of the amendment as a comment letter 
to the filing, which the Commission made publicly available at 
https://www.sec.gov/comments/sr-cboe-2019-035/srcboe2019035-5917170-189047.pdf.
    \5\ See Securities Exchange Act Release No. 86861 (September 4, 
2019), 84 FR 47627 (September 10, 2019).
    \6\ In Amendment No. 2, the Exchange updated cross-references to 
Cboe rules throughout the proposed rule change to reflect separate 
amendments it made to its rulebook in connection with the Exchange's 
technology migration, which it subsequently completed on October 7, 
2019. When the Exchange filed Amendment No. 2 to CBOE-2019-035, it 
also submitted the text of the amendment as a comment letter to the 
filing, which the Commission made publicly available at https://www.sec.gov/comments/sr-cboe-2019-035/srcboe2019035-6258833-192955.pdf. The Commission notes that in addition to the cross-
references updated in Amendment No. 2, the Exchange relocated Rule 
6.49A to Rule 6.7 in its post-migration rulebook and made conforming 
changes to its proposed rule change to reflect that new rule number.
    \7\ See Letter to Vanessa Countryman, Secretary, Commission, 
dated September 24, 2019, from John Kinahan, Chief Executive 
Officer, Group One Trading, L.P., available at https://www.sec.gov/comments/sr-cboe-2019-035/srcboe2019035-6193332-192497.pdf (``Group 
One Letter'') and Letter to Brent J. Fields, Secretary, Commission, 
dated August 19, 2019, from Gerald D. O'Connell, Compliance 
Coordinator, Susquehanna International Group, LLP, available at 
https://www.sec.gov/comments/sr-cboe-2019-035/srcboe2019035-5985436-190350.pdf (``SIG August 2019 Letter'').
    \8\ See Securities Exchange Act Release No. 87374, 84 FR 57542 
(October 25, 2019) (``OIP'').
    \9\ See Letter to Vanessa Countryman, Secretary, Commission, 
dated November 15, 2019, from Laura G. Dickman, Vice President, 
Associate General Counsel, Cboe Exchange, Inc., available at https://www.sec.gov/comments/sr-cboe-2019-035/srcboe2019035-6434377-198588.pdf (``Cboe Response Letter'') and Letter to Vanessa 
Countryman, Secretary, Commission, dated December 12, 2019, from 
Gerald D. O'Connell, Compliance Coordinator, Susquehanna 
International Group, LLP, available at https://www.sec.gov/comments/sr-cboe-2019-035/srcboe2019035-6535880-200548.pdf (``SIG December 
2019 Letter'').
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    Section 19(b)(2) of the Act \10\ provides that, after initiating 
proceedings, the Commission shall issue an order approving or 
disapproving the proposed rule change not later than 180 days after the 
date of publication of notice of filing of the proposed rule change. 
The Commission may extend the period for issuing an order approving or 
disapproving the proposed rule change, however, by not more than 60 
days if the Commission determines that a longer period is appropriate 
and publishes the reasons for such determination. The proposed rule 
change was published for notice and comment in the Federal Register on 
July 23, 2019.\11\ January 19, 2020 is 180 days from that date, and 
March 19, 2020 is 240 days from that date.
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    \10\ 15 U.S.C. 78s(b)(2).
    \11\ See Notice, supra note 3.
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    The Commission finds it appropriate to designate a longer period 
within which to issue an order approving or disapproving the proposed 
rule change so that it has sufficient time to consider the proposed 
rule change, the issues raised in the comment letters that have been 
submitted in connection therewith, and the Exchange's response to 
comments. Accordingly, the Commission, pursuant to Section 19(b)(2) of 
the Act,\12\ designates March 19, 2020 as the date by which the 
Commission should either approve or disapprove the proposed rule change 
(File No. SR-CBOE-2019-035).
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    \12\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(57).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-00803 Filed 1-17-20; 8:45 am]
 BILLING CODE 8011-01-P