Document ID: SEC-2014-0758-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Board Options Exchange, Inc.
Posted Date: 2014-05-08T04:00Z

[Federal Register Volume 79, Number 89 (Thursday, May 8, 2014)]
[Notices]
[Pages 26481-26482]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-10536]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72082; File No. SR-CBOE-2014-038]

Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change Relating to the Availability of Certain Delayed 
Market Data on CBOE Web Sites

May 2, 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 22, 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 and II 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

    Chicago Board Options Exchange, Incorporated (the ``Exchange'' or 
``CBOE'') proposes to make certain market data available on a delayed 
basis on its Web site and other Web sites. 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 purpose of the proposed rule change is to allow the Exchange to 
make certain market data available on a delayed basis on its Web site 
(www.cboe.com) and other Web sites including its social media Web sites 
and Web sites of CBOE's affiliates (collectively, ``CBOE Web sites'').
    Specifically, the Exchange proposes to publish on CBOE Web sites 
last sale information\3\ regarding ``large'' options trades that occur 
in open outcry on the CBOE trading floor. A ``large'' trade for 
purposes of this proposed rule change is a trade with a quantity of 
5,000 contracts or more. Last sale information would be published for 
executions of both simple orders and multi-part (``complex'') orders. 
This last sale information is referred to herein as the ``Data''.
---------------------------------------------------------------------------

    \3\ Last sale information includes price, volume or related 
information reflecting completed transactions. It does not include 
information regarding the parties to a trade.
---------------------------------------------------------------------------

    The Data would be published continuously on CBOE Web sites 
throughout the trading day on a ``delayed'' basis, i.e., data would not 
be made available on CBOE Web sites sooner than fifteen (15) minutes 
after the same information has been made publicly available by the 
Options Price Reporting Authority (``OPRA'').
    The Data would be made publicly available to all users of CBOE Web 
sites at no charge.
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.\4\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5)\5\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers because the Data would be made publicly available 
to all users of CBOE Web sites on an equivalent basis.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(b).
    \5\ Id.
---------------------------------------------------------------------------

    In adopting Regulation NMS, the Commission granted self-regulatory 
organizations and broker-dealers increased authority and flexibility to 
offer new and unique market data to the public. It was believed that 
this authority would expand the amount of data available to consumers, 
and also spur innovation and competition for the provision of market 
data. The Exchange believes that this proposal is in keeping with those 
principles by promoting increased transparency through the 
dissemination of useful data and also by clarifying its availability to 
market participants.

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. The

[[Page 26482]]

Exchange believes the proposed rule change is pro-competitive in that 
it would allow the Exchange to provide investors with an additional 
option for accessing certain CBOE last sale information that may help 
to inform their trading decisions. Last sale information for simple 
orders that would be published pursuant to this proposed rule change is 
also available in the OPRA data feed and from market data vendors. Last 
sale information for complex orders that would be published pursuant to 
this proposal is also available in the CBOE COB Data Feed \6\ and from 
market data vendors. Additionally, all of the Data is included in the 
CBOE BBO Data Feed made available by MDX. Furthermore, the CBOE Web 
site includes a feature that provides delayed data for options (as do 
many other financial Web sites). The Exchange believes the proposed 
rule change would help attract more visitors to CBOE Web sites, which 
in turn may help attract new users and new order flow to the Exchange, 
thereby improving the Exchange's ability to compete in the market for 
options order flow and executions.
---------------------------------------------------------------------------

    \6\ The CBOE COB Data Feed is made available by CBOE's affiliate 
Market Data Express, LLC (``MDX'').
---------------------------------------------------------------------------

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 rule 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 if consistent with the protection of investors 
and the public interest, provided that the self-regulatory organization 
has given the Commission written notice of its intent to file 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,\7\ the proposed rule change has become effective 
pursuant to Section 19(b)(3)(A) of the Act\8\ and Rule 19b-4(f)(6) 
thereunder.\9\ At any time within 60 days of the filing of such 
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.
---------------------------------------------------------------------------

    \7\ The Exchange has fulfilled this requirement.
    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

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-2014-038 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-2014-038. 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-2014-038 and should be 
submitted on or before May 29, 2014.
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-10536 Filed 5-7-14; 8:45 am]
BILLING CODE 8011-01-P