Document ID: SEC-2017-0354-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Board Options Exchange, Inc.
Posted Date: 2017-03-06T05:00Z

[Federal Register Volume 82, Number 42 (Monday, March 6, 2017)]
[Notices]
[Pages 12667-12671]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-04207]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80123; File No. SR-CBOE-2017-010]

Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing of a Proposed Rule Change Related to 
Unusual Market Conditions

February 28, 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 February 15, 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, 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange seeks to amend Rule 6.6. The text of the proposed rule 
change is provided below (additions are italicized; deletions are 
[bracketed]).
* * * * *

Chicago Board Options Exchange, Incorporated Rules

* * * * *

Rule 6.6. Unusual Market Conditions

    (a) Whenever in the judgment of any two Floor Officials (one of 
which is an Exchange employee), because of an influx of orders or other 
unusual conditions or circumstances, such as, for example, 
extraordinary market volatility, the interest of maintaining a fair and 
orderly market so requires, those Floor Officials may declare the 
market in one or more classes of option contracts to be ``fast.'' It 
may be in the interest of fair and orderly markets to declare a fast 
market when one or more of the following conditions have been met: (i) 
The previous day's closing price of the S&P 500 Index is more than 2% 
away from the previous day's opening price; (ii) the front-month E-mini 
S&P 500 Future (symbol ES/1) is trading more than 20 points above or 
below the previous day's closing values by 8:00 a.m. CT; or (iii) the 
intraday price of the S&P 500 Index moves more than 1% in any one hour 
interval during regular trading hours.
    (b) If a market is declared fast, any two Floor Officials shall 
have the power to do one or more of the following with respect to the 
class or classes involved[.]: (i) [Assign one or more classes or series 
of options traded at the post to Order Book Officials at other posts. 
(ii) Authorize Order Book Official clerks to execute transactions. 
(iii)] Direct that one or more trading rotations be employed pursuant 
to Rules 6.2, 6.2A or 6.2B, as appropriate. [(iv)] (ii) Suspend the 
firm quote requirement as permitted under Rule 8.51. (iii) Suspend the 
requirement in Rule 6.24 to systematize a non-electronic order prior to 
its representation on the trading floor. (iv) [(v) Turn off the Retail 
Automatic Execution System (``RAES''). (vi)] Take such other actions as 
are deemed necessary in the interest of maintaining a fair and orderly 
market.
    (c)-(d) No change.
    [(e) A Post Director or Order Book Official (``OBO'') at a station 
at a trading post may turn off RAES for a class or classes of options 
contracts traded at that station for a period of time not to exceed 
five minutes if, because of an influx of orders or other unusual 
conditions or circumstances in respect of such options or their 
underlying securities, the Post Director or OBO determines that such 
action is appropriate in the interest of maintaining a fair and orderly 
market. Whenever such action is taken, notice thereof shall immediately 
be given to

[[Page 12668]]

two Floor Officials who may continue the deactivation of RAES for more 
than five minutes or take such actions as they deem necessary pursuant 
to their authority under this Rule 6.6.]
    . . . Interpretation and Policies:
    .01 [The Exchange has implemented an automatic system that monitors 
news wires for announcements pertaining to stocks underlying stock 
options at the end of each trading day, commencing shortly before the 
close of trading in the primary markets for underlying stocks and 
continuing for so long as stock options continue to be traded, and 
automatically suspends RAES in a class of stock options whenever the 
system notes that a news announcement pertaining to the underlying 
stock has been made. Two Floor Officials are notified promptly by 
senior help desk personnel each time RAES is automatically suspended. 
Depending on the Floor Officials' judgment as to the significance of 
the news announcement and whether its impact has been reflected in 
current options quotations, and depending on how much time remains 
before the close of options trading on CBOE, the Floor Officials will 
consider whether to resume operation of RAES in the affected classes of 
options. During the time that RAES is suspended, customer orders are 
routed to terminals on the trading floor for execution. The 
implementation of this system does not affect the authority of Floor 
Officials to halt trading under Rule 6.3, or to declare a fast market 
under Rule 6.6(a) and to take the actions described in Rule 6.6(b).]
    In the event that the Exchange suspends the requirement to 
systematize an order prior to its representation pursuant to paragraph 
(b) of this Rule 6.6, Trading Permit Holders or TPH organizations shall 
follow the procedures as described in paragraph (b) of Rule 6.24. Upon 
the Floor Officials' determination to reinstate the systematization 
requirement, Trading Permit Holders shall immediately resume 
systematizing orders prior to representing them on the trading floor. 
Additionally, Trading Permit Holders shall exert best efforts to input 
electronically into the Exchange's systems all relevant order 
information received during the time period when there was a fast 
market as soon as possible, and in any event shall input such data 
electronically into the Exchange's systems not later than close of 
business on the trade date during which the fast market existed.
    .02 The Exchange will announce via Regulatory Circular the form and 
manner by which Trading Permit Holders must report transactions that 
occur during a fast market.
* * * * *

Rule 6.24. Required Order Information

    (a) No change.
    (b) With respect to orders received during a malfunction or 
disruption of the Exchange's systems under paragraph (a)(4) above or 
during a time period when a fast market has been declared under Rule 
6.6(a) and the Exchange has suspended the requirement to systematize an 
order prior to its representation to the trading floor under Rule 
6.6(b)(iii):
    (1)-(2) No change.
    (c) No change.
* * * * *
    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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange seeks to amend Rule 6.6 to update the circumstances in 
which the Exchange may declare a ``fast'' market; add actions the 
Exchange may take when a fast market has been declared; and remove 
outdated provisions.
    First, Rule 6.6 currently states that whenever in the judgment of 
any two Floor Officials, because of an influx of orders or other 
unusual conditions or circumstances, the interest of maintaining a fair 
and orderly market so requires, those Floor Officials may declare the 
market in one or more classes of option contracts to be fast. The 
Exchange is seeking to further specify that ``other unusual conditions 
or circumstances'' can include periods of time during which there is 
extraordinary market volatility (e.g., large movements in the S&P 500 
Index).
    As under the current rule, a fast market will only be declared when 
two Floor Officials believe declaring a market fast is necessary in the 
interest of maintaining a fair and orderly market. In other words, if 
two Floor Officials do not believe they need to declare a fast market 
because of extraordinary market volatility to maintain a fair and 
orderly market, the Exchange will not declare a fast market. Currently, 
Floor Officials use their experience and expertise to determine if a 
market should be declared fast because of an influx of orders or other 
unusual conditions or circumstances. This proposal is only adding to 
the rule examples of unusual conditions or circumstances that can be 
considered when making this determination such as when: The previous 
day's closing price of the S&P 500 Index is more than 2% away from the 
previous day's opening price; (ii) the front-month E-mini S&P 500 
Future (symbol ES/1) is trading more than 20 points above or below the 
previous day's closing values by 8:00 a.m. CT \3\; or (iii) the 
intraday price of the S&P 500 Index moves more than 1% in any one hour 
interval during regular trading hours.
---------------------------------------------------------------------------

    \3\ The Exchange notes that the E-mini S&P 500 Futures are also 
referenced for purposes of price reasonability checks. See CBOE 
Regulatory Circular RG13-145.
---------------------------------------------------------------------------

    The Exchange reviewed approximately eight months of data and 
observed the previous day's closing price of the S&P 500 Index being 
more than 2% away from the previous day's opening price on fewer than 
five days; however, the Exchange believes that when such moves in the 
S&P 500 Index do occur openings and intraday options trading can be 
volatile. Additionally, the inclusion of this provision in the rule 
text will help to serve as notice to market participants as to when the 
Exchange might call a fast market.
    With regards to when the front-month E-mini S&P 500 Future (symbol 
ES/1) is trading more than 20 points above or below the previous day's 
closing values by 8:00 a.m. CT, the Exchange notes that E-mini S&P 500 
Futures are often used as a way to measure the state of the overall 
market in similar manner to which the S&P 500 Index is generally used 
to measure the state of the overall market. The Exchange believes a 20 
point move represents a fairly significant move in the E-mini S&P 500 
Futures and could indicate that the opening and intraday options 
trading will be volatile. Additionally, as

[[Page 12669]]

previously noted, the Exchange references a 20 point move in the E-mini 
S&P 500 Futures in other contexts, such as reasonability checks. 
Furthermore, the inclusion of this provision in the rule text will help 
to serve as notice to market participants as to when the Exchange might 
call a fast market.
    The Exchange reviewed approximately eight months of data and 
observed the intraday price of the S&P 500 Index moving more than 1% in 
any one hour interval during regular trading hours on at least 30 days. 
Although not an infrequent occurrence, the Exchange believes it is 
critically important to have an intraday variable that will be used by 
Floor Officials to guide them as they determine whether there is a fast 
market. The Exchange notes that this is simply an example of an unusual 
condition or circumstance that can be considered when making this 
determination as to whether a fast market should be called. The 
Exchange notes that a 1% move an hour in the S&P 500 Index is not 
necessarily cause to call a fast market--just as a 2% move from the 
previous days open to the previous days close in the S&P 500 Index is 
not necessarily a cause to call a fast market. However, the Exchange 
notes that intraday moves of 1% an hour in the S&P 500 Index can cause 
intraday options trading can be volatile. Floor Officials will use 
their considerable experience and expertise to make the fast market 
determination. Additionally, the inclusion of this provision in the 
rule text will help to serve as notice to market participants as to 
when the Exchange might call a fast market.
    Second, paragraph (b) of Rule 6.6 currently identifies several 
actions Floor Officials may take when a market is declared fast.\4\ The 
Exchange is seeking to add that during fast markets Floor Officials 
will have the power to suspend the requirement in Rule 6.24 to 
systematize a non-electronic order prior to its representation on the 
trading floor. There is always risk that market prices will move from 
the time an order is submitted to a broker to the time the order is 
executed, potentially causing large losses for customers and market 
participants. This risk is exacerbated during fast markets as there can 
be an unusually large number of orders submitted to brokers and market 
prices can change erratically, extremely quickly, and in enormous 
swings.
---------------------------------------------------------------------------

    \4\ Rule 6.6(b) currently states that if a market is declared 
fast, any two Floor Officials shall have the power to do one or more 
of the following with respect to the class or classes involved: (i) 
Assign one or more classes or series of options traded at the post 
to Order Book Officials at other posts. (ii) Authorize Order Book 
Official clerks to execute transactions. (iii) Direct that one or 
more trading rotations be employed pursuant to Rules 6.2, 6.2A or 
6.2B, as appropriate. (iv) Suspend the firm quote requirement as 
permitted under Rule 8.51. (v) Turn off the Retail Automatic 
Execution System (``RAES''). (vi) Take such other actions as are 
deemed necessary in the interest of maintaining a fair and orderly 
market.
---------------------------------------------------------------------------

    To illustrate, consider SPX options, which have a multiplier of 
$100 and a minimum tick size for simple orders of $.10 when the bid of 
the option is more than $3.00. As each option contract contains 100 
options, each tick move is $1000 ($100 x $.10 x 100 options). 
Considering that most SPX market participants execute orders 
significantly larger than one contract and that options prices can move 
significantly in seconds, it is not difficult to imagine a customer 
losing thousands or even hundreds of thousands of dollars because the 
customer's broker was required to systematize the customer's order 
prior to representing the order during a fast market.
    The Exchange believes that during these fast markets, which have 
the potential to cause significant losses for customers and market 
participants, the entire marketplace would be better served by 
receiving executions on orders as quickly as possible. Thus, the 
Exchange proposes, in limited and extraordinary circumstances, to delay 
(not waive) the requirement to systematize an order.
    Rule 6.24 was adopted in its current form by SR-CBOE-2004-077 
[sic]. SR-CBOE-2004-77 was submitted to fulfill certain of the 
undertakings contained in an order issued by the Commission relating to 
the settlement of an enforcement action against CBOE and other options 
exchanges (collectively ``Options Exchanges'').\5\ As part of the 
Order, the Options Exchanges agreed to, and were ordered to, design and 
implement the consolidated options audit trail system (``COATS''). The 
Options Exchanges were required to complete the undertaking in five 
phases. The final phase of the undertaking to implement COATS required 
each exchange to ``incorporate into its audit trail all non-electronic 
orders[,]'' and SR-CBOE-2004-77 addressed the final phase.\6\ The 
Exchange recognizes the importance of non-electronic order and trade 
information to the Exchange's audit trail with respect to its 
regulatory obligations. While the proposed rule change would delay the 
Exchange's receipt of this information, the Exchange will still require 
TPHs to submit this information to the Exchange to complete the audit 
trail. The proposed rule provides that order information for non-
electronic orders received while the requirement to systematize prior 
to representation is suspended under Rule 6.6 will still be 
incorporated into its audit trail.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release 50996 (January 7, 2005), 
70 FR 2436 (January 13, 2005)(``Approval Order'')(SR-CBOE-2004-77) 
and Securities Exchange Act Release No. 43268 (September 11, 2000), 
Administrative Proceeding File 3--10282 (the ``Order'').
    \6\ See Approval Order at 2437.

    Specifically, proposed paragraph (b) of Rule 6.24 states:
    With respect to orders received during a malfunction or 
disruption of the Exchange's systems under paragraph (a)(4) above or 
during a time period when a fast market has been declared under Rule 
6.6(a) and the Exchange has suspended the requirement to systematize 
an order prior to its representation to the trading floor under Rule 
6.6(b)(iii):
    (1) Transmitted to the Floor. Each order transmitted to the 
Exchange must be recorded legibly in a written form that has been 
approved by the Exchange, and the Trading Permit Holder receiving 
such order must record the time of its receipt on the floor and 
legibly record the terms of the order, in written form.
    (2) Cancellations and Changes. Each cancellation of, or change 
to, an order that has been transmitted to the floor must be recorded 
legibly in a written form that has been approved by the Exchange, 
and the Trading Permit Holder receiving such cancellation or change 
must record the time of its receipt on the floor.

    Thus, information regarding all non-electronic orders will remain a 
part of the Exchange's audit trail in the same manner as non-electronic 
orders that cannot be systematized because of a malfunction or 
disruption of the Exchange' system.\7\ Furthermore, to ensure market 
participants are aware of the procedures in Rule 6.24(b) that they must 
follow when the Exchange has suspended the systematization requirement 
pursuant to Rule 6.6, the Exchange is proposing to reference Rule 
6.24(b) in new Interpretation and Policy .02 to Rule 6.6.
---------------------------------------------------------------------------

    \7\ Rule 6.24(a)(4) contemplates a malfunction or disruption of 
the Exchange's system that prevents a TPH from systematizing an 
order.
---------------------------------------------------------------------------

    Additionally, the Exchange proposes to amend Rule 6.6.01 \8\ to 
provide that as soon as a fast market ceases, TPHs must immediately 
resume systematizing orders prior to representing orders and shall use 
best efforts to, as soon as possible, input electronically into the 
Exchange's systems all relevant order information received during the 
time period when there was a fast market but no later than close of 
business \9\ on the

[[Page 12670]]

trade date during which the fast market occurred. Specifically, the 
Exchange is proposing that Rule 6.6.01 state:
---------------------------------------------------------------------------

    \8\ Rule 6.6.01 currently relates to the RAES system, which is 
no longer utilized; thus, Rule 6.6.01 is to be replaced in its 
entirety.
    \9\ ``Close of business'' refers to the daily trade input 
deadline specified by the Exchange, which is currently 4:20 p.m. 
(CT). See CBOE Regulatory Circular RG14-111.

    In the event that the Exchange suspends the requirement to 
systematize an order prior to its representation pursuant to 
paragraph (b) of this Rule 6.6, Trading Permit Holders or TPH 
organizations shall follow the procedures as described in paragraph 
(b) of Rule 6.24. Upon the Floor Officials' determination to 
reinstate the systematization requirement, Trading Permit Holders 
shall immediately resume systematizing orders prior to representing 
them on the trading floor. Additionally, Trading Permit Holders 
shall exert best efforts to input electronically into the Exchange's 
systems all relevant order information received during the time 
period when there was a fast market as soon as possible, and in any 
event shall input such data electronically into the Exchange's 
systems not later than close of business on the trade date during 
---------------------------------------------------------------------------
which the fast market existed.

The Exchange notes that proposed Rule 6.6.01 is patterned off of 
paragraph (a)(4) of Rule 6.24 regarding the inability of Trading Permit 
Holders to systematize order information in the event of an Exchange 
system malfunction.\10\
---------------------------------------------------------------------------

    \10\ The Commission found Rule 6.24(4) to be a reasonable plan 
for recording order details in the event of a systems outage or 
malfunction. See Approval Order at 2438. The Exchange believes 
proposed Rule 6.6.01 is also a reasonable plan that allows the 
Exchange to maintain a complete and accurate audit trail during a 
fast market.
---------------------------------------------------------------------------

    The Exchange notes that the collection and reporting of quotation 
information to OPRA will not be effected by this rule filing because 
the Exchange will continue to ``collect and promptly transmit to the 
OPRA System by means of its own facilities bids and offers at stated 
prices or limits with respect to individual Eligible Securities in 
which it provides a market,'' which, by definition, means the 
marketplace will continue to have access to the ``current state of the 
market'' in all securities traded on the Exchange.\11\
---------------------------------------------------------------------------

    \11\ See section 5.2(b) of the OPRA Plan (requiring the 
collection and reporting of quotations to OPRA ``sufficient in 
number and timeliness to reflect the current state of the market in 
such security''), available at: https://www.opradata.com/pdf/opra_plan.pdf.
---------------------------------------------------------------------------

    Additionally, even though in these very limited situations market 
participants will be able to represent a particular order in the 
trading crowd prior to systematizing the order, market participants 
must continue to report the execution of the order within 90 
seconds.\12\
---------------------------------------------------------------------------

    \12\ See Rule 6.51(a).
---------------------------------------------------------------------------

    Lastly, the proposed rule removes outdated provisions in Rule 6.6 
that reference Order Book Officials and the Retail Automatic Execution 
System (``RAES''), as the Exchange no longer utilizes Order Book 
Officials or RAES.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Securities Exchange Act of 1934 (the ``Act'') and the rules and 
regulations thereunder applicable to the Exchange and, in particular, 
the requirements of Section 6(b) of the Act.\13\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \14\ 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) \15\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78f(b).
    \14\ 15 U.S.C. 78f(b)(5).
    \15\ Id.
---------------------------------------------------------------------------

    In particular, the Exchange believes the proposed amendment 
promotes just and equitable principles of trade by giving Floor 
Officials the ability to declare a fast market when there is 
extraordinary market volatility that hinders the maintenance of fair 
and orderly markets. In addition, the proposed amendment protects 
investors and the public interest by further specifying the actions 
Floor Officials may take once they declare a fast market. Specifically, 
the Exchange believes having the ability to suspend the requirement to 
systematize an order prior to representing the order to the trading 
floor serves investors and the public interest because it provides 
floor brokers with the ability to better accommodate customers during 
times of extreme volatility and high order volume, which can prevent or 
limit significant customer losses during those times. Furthermore, the 
Exchange believes the proposed amendment is designed to prevent 
fraudulent and manipulative acts and practices because the rule is 
narrowly applied to situations in which two Floor Officials (one of 
which must be an Exchange employee) believe the maintenance of fair and 
orderly markets necessitates a fast market declaration. Additionally, 
the Exchange believes delaying the systemization of an order under 
these limited and extraordinary circumstances will not significantly 
impact the integrity of the audit trail. In fact, the Exchange believes 
that if there is any impact on the audit trail it is outweighed by the 
benefits to customers and other market participants. Additionally, 
impacts to individual market surveillances, if any, can be remedied 
through manual reviews of the required paper order tickets.\16\
---------------------------------------------------------------------------

    \16\ See Rule 6.24(b).
---------------------------------------------------------------------------

    Additionally, as proposed in Rule 6.6.01, if the requirement to 
systematize an order prior to representing the order is suspended, 
Trading Permit Holders are required to record order information in 
written form, which provides an adequate audit trail for regulatory 
purposes. Additionally, as proposed by Rule 6.6.01 and 6.6.02 [sic], 
Trading Permit Holders are required to input electronically into the 
Exchange's systems all relevant order information received during the 
time period when there was a fast market as soon as possible, and in 
any event shall input such data electronically into the Exchange's 
systems not later than close of business on the trade date during which 
the fast market existed, which will provide an adequate audit trail for 
regulatory purposes.
    The Exchange notes that the collection and reporting of quotation 
information to OPRA will not be effected by this rule filing because 
the Exchange will continue to ``collect and promptly transmit to the 
OPRA System by means of its own facilities bids and offers at stated 
prices or limits with respect to individual Eligible Securities in 
which it provides a market,'' which, by definition, means the 
marketplace will continue to have access to the ``current state of the 
market'' in all securities traded on the Exchange.\17\
---------------------------------------------------------------------------

    \17\ See section 5.2(b) of the OPRA Plan (requiring the 
collection and reporting of quotations to OPRA ``sufficient in 
number and timeliness to reflect the current state of the market in 
such security''), available at: https://www.opradata.com/pdf/opra_plan.pdf.
---------------------------------------------------------------------------

    Finally, the Exchange does not believe the proposal permits unfair 
discrimination because the benefit of receiving executions in a more 
timely fashion will likely outweigh any perceived negatives. For 
example, a broker that does not need to spend crucial time 
systematizing an order prior to representing an order better serves the 
client by accessing liquidity as soon as possible.

[[Page 12671]]

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

    CBOE 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. More specifically, the Exchange 
does not believe the proposed amendment will impose any burden on 
intramarket competition because it provides the same relief to all 
floor brokers in the same manner under the same limited and 
extraordinary circumstances. In addition, the Exchange does not believe 
the proposed changes will impose any burden on intermarket competition. 
The proposed rule change relates solely to information that floor 
brokers must submit to the Exchange with respect to orders they 
represent and execute on the Exchange's trading floor. The proposed 
rule change has little to no effect on market participants because OPRA 
will be receiving timely quotations during fast markets, which will 
give all market participants an up-to-date view of the market during a 
fast market. Any perceived burden on market participants is outweighed 
by the fact that market participants will be able to receive executions 
in a timelier manner during times of high market volatility.

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

    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 Exchange consents, the Commission will:
    A. by order approve or disapprove such 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 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-2017-010 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-2017-010. 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-2017-010, and should be 
submitted on or before March 27, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\
---------------------------------------------------------------------------

    \18\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-04207 Filed 3-3-17; 8:45 am]
 BILLING CODE 8011-01-P