Document ID: SEC-2016-1537-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Board Options Exchange, Inc.
Posted Date: 2016-08-31T04:00Z

[Federal Register Volume 81, Number 169 (Wednesday, August 31, 2016)]
[Notices]
[Pages 60032-60034]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-20965]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78698; File No. SR-CBOE-2016-061]

Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend the Fees Schedule

August 26, 2016.
    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 12, 2016, 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 Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the Fees Schedule. 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 amend the Fees Schedule. Specifically, the 
Exchange proposes to delete the reference to ``Test Center'' fees from 
the Continuing Education Fees sub-section of the Regulatory Fees 
section of the Fees Schedule to reflect the fact that the Exchange no 
longer offers test center delivery of the Regulatory Element of the 
Exchange's continuing education requirement; as of July 5, 2016, 
delivery of the Regulatory Element of the Exchange's continuing 
education requirement is entirely Web-based.
    On August 8, 2015, the Securities and Exchange Commission (``SEC'' 
or ``Commission'') approved SR-FINRA-2015-015 and the proposed changes 
to FINRA Rule 1250 therein, which, among other things, provided for 
Web-based delivery of the Regulatory Element of certain of FINRA's 
continuing education programs.\3\ Pursuant to SR-FINRA-2015-015, 
effective October 1, 2015, Web-based delivery has been available for 
the Regulatory Element for the S106 Continuing Education Program for 
Investment Company and Variable Contracts Representatives, the S201 
Continuing Education Program for Registered Principals and Supervisors, 
and the S901 Continuing Education Program for Operations 
Professionals.\4\ Web-based delivery of the S101 General Program, the 
continuing education program for all other registration categories, 
became available on January 4, 2016, as contemplated by SR-FINRA-2015-
015. In addition, pursuant to SR-FINRA-2015-015, test center delivery 
of the Regulatory Element of the S101, S106, S201, and S901 continuing 
education programs was to end after January 4, 2016, but in no case 
more than six months after January 4, 2016 or July 5, 2016.\5\ Since 
July 5, 2016 has passed, going forward, the Regulatory Element of the 
above-listed continuing education programs is no longer administered at 
test centers and is only offered via Web-based delivery.
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    \3\ See Securities Exchange Act Release No. 75581 (July 31, 
2015), 80 FR 47018 (August 6, 2015) (Order Approving a Proposed Rule 
Change to Provide a Web-based Delivery Method for Completing the 
Regulatory Element of the Continuing Education Requirements) (SR-
FINRA-2015-015).
    \4\ Id.
    \5\ Test-center delivery of the Regulatory Element will be 
phased out by no later than six months after January 4, 2016. See 
Securities Exchange Act Release No. 75581 (July 31, 2015), 80 FR 
47018 (August 6, 2015) (Order Approving a Proposed Rule Change To 
Provide a Web-Based Delivery Method for Completing the Regulatory 
Element of the Continuing Education) (SR-FINRA-2015-015).
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    The Exchange utilizes FINRA's continuing education programs for its 
own continuing education requirements. Consistent with SR-FINRA-2015-
015, the Exchange recently filed SR-CBOE-2015-084 \6\ relating to 
continuing education. In the filing, the Exchange proposed 
substantially similar changes to its rules as those set forth in SR-
FINRA-2015-015 with respect to Web-based delivery of the Regulatory 
Element of the S101 General Program, S106 Continuing Education Program 
for Investment Company and Variable Contracts Representatives, the S201 
Continuing Education Program for Registered Principals and Supervisors, 
and the S901 Continuing Education Program for Operations Professionals. 
Consistent with SR-CBOE-2015-084, the Exchange also filed SR-CBOE-2015-
093 to amend the Fees Schedule to provide that the fee for Web-based 
delivery of the Regulatory Elements of the S101, S106, S201, and S901 
Continuing Education Programs would be $55 as opposed to test center 
delivery, which would continue to be $100 per session until

[[Page 60033]]

test center delivery of the Regulatory Element was phased out and the 
programs were no longer offered at testing centers.\7\ In its filing, 
the Exchange stated that upon cessation of the availability of test-
center delivery of the Regulatory Element, the Exchange would submit 
another fee filing to remove references to test center fees from the 
Fees Schedule.\8\ Accordingly, the Exchange now proposes to amend the 
Fees Schedule to remove the now-obsolete $100 fee for test center 
delivery of the Regulatory Element of the Exchange's continuing 
education requirement.
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    \6\ Available at http://www.cboe.com/publish/RuleFilingsSEC/SR-CBOE-2015-084.pdf.
    \7\ See Securities Exchange Act Release No. 76352 (November 4, 
2015), 80 FR 69760 (November 10, 2015) (Notice of Filing and 
Immediate Effectiveness of a Proposed Rule Change To Amend the Fees 
Schedule) (SR-CBOE-2015-093).
    \8\ See id.
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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.\9\ Specifically, the Exchange believes the proposed rule change is 
consistent with the Section 6(b)(5) \10\ 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) \11\ requirement that the rules of 
an exchange not be designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
    \11\ Id.
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    The Exchange believes that the proposed rule change is consistent 
with the Act. Primarily, the Exchange believes that the elimination of 
obsolete rules helps to eliminate confusion and makes the Exchange's 
rules more clear and transparent, which is in the interests of both 
market participants and the general public. The Exchange is 
continuously updating the Rules to provide additional accuracy, detail, 
clarity, and transparency regarding its operations, trading systems, 
and fees. The Exchange believes that the adoption of detailed, clear, 
and transparent rules reduces burdens on competition and promotes just 
and equitable principles of trade. Furthermore, in general, the 
Exchange believes that promoting the Web-based delivery method for 
continuing education serves the best interests of market participant's 
and the general public by lower the costs of participation in the 
markets. The reduced cost of Web-based delivery of the Regulatory 
Element of the S106, S201, and S901 Continuing Education Programs 
lowers barriers to entry and removes impediments to a free and open 
market and national market system by making it easier and less costly 
for Trading Permit Holders to participate in the market. The Exchange 
believes that reducing the costs of continuing education promotes 
regulatory compliance, which is in the best interests of investors, 
consistent with the Act.

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. Rather, the proposed rule 
change merely seeks to delete references to a fee that is no longer 
applicable to any Trading Permit Holder under the Rules. In fact, the 
Exchange believes that the proposed rule change will relieve any burden 
on, or otherwise promote, competition by lower costs of entry to the 
markets and making it easier for market participants to satisfy the 
Regulatory Element of the Exchange's continuing education requirement.

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 written comments on the 
proposed rule change.

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \12\ and paragraph (f) of Rule 19b-4 \13\ 
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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    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f).
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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 No. SR-CBOE-2016-061 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-2016-061. 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; 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-

[[Page 60034]]

016-061 and should be submitted on or before September 21, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-20965 Filed 8-30-16; 8:45 am]
 BILLING CODE 8011-01-P