Document ID: SEC-2015-1540-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Board Options Exchange, Inc.
Posted Date: 2015-09-18T04:00Z

[Federal Register Volume 80, Number 181 (Friday, September 18, 2015)]
[Notices]
[Pages 56525-56530]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-23394]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75913; File No. SR-CBOE-2015-076]

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

September 14, 2015.
    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 September 1, 2015, Chicago Board Options Exchange, Incorporated 
(the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange 
Commission (the ``Commission'') the proposed rule

[[Page 56526]]

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 amend its 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 make certain amendments to its Fees 
Schedule, effective September 1, 2015.
Extended Trading Hour Fees
    First, the Exchange proposes to amend the Fees Schedule with 
respect to Extended Trading Hours fees. The Exchange notes that it 
recently amended its rules to offer trading in two exclusively listed 
options (SPX, including SPXW, and VIX) during extended trading hours 
from 2:00 a.m. to 8:15 a.m. Chicago time Monday through Friday 
(``Extended Trading Hours'' or ``ETH''). In conjunction with the 
adoption of ETH, the Exchange established fees for the trading of SPX, 
SPXW and VIX options during ETH, including fees for ETH Trading Permits 
and Bandwidth Packets, as well as for CMI and FIX login IDs. In order 
to promote and encourage trading during the ETH session, the Exchange 
had waived ETH Trading Permit and Bandwidth Packet fees for one (1) of 
each initial Trading Permits and one (1) of each initial Bandwidth 
Packet, per affiliated TPH, through the first six (6) calendar months 
immediately following the implementation of ETH, including the month 
ETH was launched (i.e., through August 31, 2015). The Exchange also 
waived fees through August 31, 2015 for a CMI and FIX login ID if the 
CMI and/or FIX login ID is related to a waived ETH Trading Permit and/
or waived Bandwidth packet. In order to continue promoting trading 
during ETH, the Exchange wishes to extend these waivers through 
December 31, 2015.
Qualified Contingent Cross Transactions
    The Exchange next proposes to amend its Fees Schedule with respect 
to Qualified Contingent Cross (``QCC'') \3\ orders. Currently, the Fees 
Schedule provides for a transaction fee for all non-customer QCC orders 
of $0.15 per contract side (customer orders are not assessed a charge) 
and a $0.10 per contract credit for the initiating order side, 
regardless of origin code. The Exchange proposes to further provide 
that the $0.10 per contract credit will not be available for customer-
to-customer transactions. Particularly, the Exchange notes that it does 
not collect QCC transaction fees on customer-to-customer transactions 
(since customers are not assessed QCC transaction fees) and it would 
not be economically feasible or viable to provide a credit on an order 
that is trading with an order that is not generating a fee. The 
Exchange notes that another Exchange also excludes customer-to-customer 
QCC orders from receiving a rebate.\4\
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    \3\ A QCC order is comprised of an order to buy or sell at least 
1,000 contracts (or 10,000 mini-option contracts) that is identified 
as being part of a qualified contingent trade, coupled with a contra 
side order to buy or sell an equal number of contracts.
    \4\ See NASDAQ OMX PHLX LLC (``PHLX'') Pricing Schedule, Section 
II, Multiply Listed Options Fees.
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Linkage
    The Exchange proposes to (i) adopt a $0.05 per contract Linkage fee 
(in addition to the applicable away fees) for customer orders and (ii) 
increase the Linkage fee for non-customer orders from $0.65 per 
contract to $0.70 per contract. The Fees Schedule currently provides 
that, in addition to the customary CBOE execution charges, for each 
customer order that is routed, in whole or in part, to one or more 
exchanges in connection with the Options Order Protection and Locked/
Crossed Market Plan referenced in Rule 6.80, CBOE shall pass through 
the actual transaction fee assessed by the exchange(s) to which the 
order was routed. The Exchange proposes to assess an additional $0.05 
per contract for customer orders routed away in addition to the 
applicable pass through fees. The purpose of these proposed changes is 
to help recoup costs incurred by the Exchange associated with routing 
customer and non-customer orders through linkage. The Exchange notes 
that other exchanges also assess an additional fee on top of passing 
through transaction fees for customer orders and that the proposed 
amount of the fee is in line with the amount assessed at another 
exchange.\5\ The Exchange also notes that the amount of the proposed 
non-customer linkage fee is still lower than corresponding non-customer 
Linkage fees assessed by other exchanges.\6\
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    \5\ See e.g., PHLX Pricing Schedule, Section V, Customer Routing 
Fees.
    \6\ See e.g., PHLX Pricing Schedule, Section V, Non-Customer 
Routing Fee of $0.99 per contract.
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Volume Incentive Program
    Next, the Exchange proposes to amend its Volume Incentive Program 
(``VIP''). Under VIP, the Exchange credits each Trading Permit Holder 
(``TPH'') the per contract amount set forth in the VIP table resulting 
from each public customer (``C'' origin code) order transmitted by that 
TPH (with certain exceptions) which is executed electronically on the 
Exchange in all underlying symbols excluding Underlying Symbol List 
A,\7\ DJX, MXEA, MXEF, XSP, XSPAM, and mini-options, provided the TPH 
meets certain volume thresholds in a month.\8\ The Exchange first 
proposes to change the different fee tier thresholds in the VIP. 
Currently, qualification for the different fee rates at different tiers 
in the VIP is based on a TPH's percentage of national customer volume 
in all products, excluding Underlying Symbol List A, DJX, MXEA, MXEF, 
XSP, XSPAM and mini-options. The current qualification tiers are set 
to, in ascending order, 0% through 0.75%, above 0.75% through 2.0%, 
above 2.0% through 2.75%, and above 2.75%. The Exchange proposes to 
adjust the threshold percentages for Tiers 2 through 4. Specifically, 
the Exchange is proposing to amend the

[[Page 56527]]

tiers to be, in ascending order, 0% through 0.75%, above 0.75% through 
1.50%, above 1.50% through 3.0%, and above 3.0%. The Exchange also 
proposes to increase the VIP credit for simple orders in Tier 3 from 
$0.11 per contract to $0.12 per contract and in Tier 4 from $0.14 per 
contract to $0.15 per contract. The Exchange proposes to increase the 
VIP credit for complex orders in Tier 3 from $0.22 per contract to 
$0.24 per contract and in Tier 4 from $0.23 per contract to $0.25 per 
contract. The purpose of these changes is to incentivize the sending of 
both simple and complex orders to the Exchange and to adjust the 
incentive tiers accordingly as competition requires while maintaining 
an incremental incentive for TPH's to strive for the highest tier 
level.
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    \7\ The following products are included in ``Underlying Symbol 
List A'': OEX, XEO, RUT, SPX (including SPXw), SPXpm, SRO, VIX, 
VXST, VOLATILITY INDEXES and binary options.
    \8\ Excluded from the VIP credit are options in Underlying 
Symbol List A, DJX, MXEA, MXEF, XSP, XSPAM, mini-options, QCC 
trades, public customer to public customer electronic complex order 
executions, and executions related to contracts that are routed to 
one or more exchanges in connection with the Options Order 
Protection and Locked/Crossed Market Plan referenced in Rule 6.80 
(see CBOE Fees Schedule, Volume Incentive Program).
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Strategy Orders and Fee Cap
    The Exchange also proposes to amend the Fees Schedule with respect 
to rebates offered on strategy executions and make certain 
clarifications with regards to the Clearing Trading Permit Holder Fee 
Cap (``Fee Cap''). By way of background, the Fee Cap provides for a cap 
up to $75,000 on certain order executions in all products except those 
in Underlying Symbol List A excluding binary options, on Clearing 
Trading Permit Holder Proprietary (origin code ``F'' or ``L'') orders. 
For example, transaction fees for Qualified Contingent Cross (``QCC'') 
\9\ orders count towards the $75,000 fee cap. The Exchange notes that 
transaction fees resulting from certain strategy orders also apply 
towards reaching the Fee Cap.\10\ For all non-customer orders, the 
Exchange notes that fees are capped at $1,000 for all merger strategies 
and short stock interest strategies and $700 for reversals, conversions 
and jelly roll strategies executed on the same trading day in the same 
option class, excluding any option class on which the Exchange charges 
the Index License surcharge fee under Footnote 14 of the Fees Schedule. 
The Fees Schedule also currently provides that these transaction fees 
are further capped at $25,000 per month per initiating Trading Permit 
Holder (excluding Clearing Trading Permit Holders, who instead are 
subject to the $75,000 Fee Cap). Additionally, the Fees Schedule states 
that floor brokerage fees assessed on these strategies are eligible for 
a full rebate. In order to qualify for the fee caps and floor brokerage 
fees rebate, a rebate request with supporting documentation must be 
submitted to the Exchange within three (3) business days of the 
transactions.
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    \9\ A QCC order is comprised of an order to buy or sell at least 
1,000 contracts (or 10,000 mini-option contracts) that is identified 
as being part of a qualified contingent trade, coupled with a contra 
side order to buy or sell an equal number of contracts.
    \10\ For details about strategy executions, see Footnote 13 of 
the Fees Schedule.
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    The Exchange proposes to make a number of amendments and 
clarifications with respect to the Fee Cap table and Footnote 13 of the 
Fees Schedule. First, the Exchange proposes to provide that the 
strategy rebates described in Footnote 13 of the Fees Schedule apply 
only to equities, Exchange-Traded Funds (``ETFs'') and Exchange-Traded 
Notes (``ETNs'') options. As such, the Exchange proposes adding this 
language directly into Footnote 13, as well as appending Footnote 13 to 
the ETF and ETN Options Rate Table to clarify its applicability.\11\ 
The Exchange also proposes to eliminate the following language from 
Footnote 13 in conjunction with this change: ``. . . excluding any 
option class on which the Exchange charges the Index License surcharge 
fee under footnote 14 of this Fees Schedule.'' The Exchange notes that 
while the strategy rebates always applied to ETF and ETN options, 
strategy rebates for reversals, conversations and jelly roll strategies 
also applied to any index option for which an Index License surcharge 
fee (under Footnote 14) was not assessed (e.g., XSP). The Exchange 
notes that it no longer seeks to incentivize strategy orders on index 
options (that weren't otherwise already excluded) and as such, proposes 
to exclude all indexes from the rebate. Additionally, the Exchange 
seeks to eliminate the following language from Footnote 13: ``Floor 
brokerage fees assessed on any of these strategies are eligible for a 
full rebate (see below)'', as floor brokerage fees are only assessed 
for products for which strategy order rebates do not apply and 
therefore it is unnecessary to maintain this language in the Fees 
Schedule.
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    \11\ Footnote 13 is already appended to the Equities Rate Table. 
See CBOE Fees Schedule, Equity Options Rate Table.
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    Next, the Exchange proposes to add clarifying language to the Notes 
section of the Clearing Trading Permit Holder Fee Cap table. 
Specifically, the Exchange proposes to clarify that transaction fees 
assessed as part of the strategies cap described in Footnote 13 are 
including in the Clearing Trading Permit Holder Cap. The Exchange also 
seeks to make clear that a Clearing Trading Permit Holder that has 
reached the Fee Cap in a given month would no longer be eligible for 
the strategy rebates, as no transaction fees would have been assessed 
on those additional transactions. The Exchange believes the proposed 
clarifications maintain clarity in the Fees Schedule and reduces 
potential confusion.
    The Exchange next notes that strategy orders can be executed as 
part of a QCC transaction. The Exchange also notes that, as previously 
mentioned, all non-customer QCC transactions are subject to a $0.15 per 
contract transaction fee and a $0.10 per contract credit for the 
initiating side of the QCC transaction. As QCC transactions already 
receive a credit, the Exchange seeks to amend the Fees Schedule to 
provide that any strategies described in Footnote 13 of the Fees 
Schedule that is tied to a QCC transaction will not be eligible for the 
rebates provided for in Footnote 13 of the Fees Schedule. The Exchange 
notes that another exchange currently excludes these transactions from 
similar caps.\12\
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    \12\ See PHLX Pricing Schedule, Section II, Multiply Listed 
Option Fees, which provides that all dividend, merger, short stock 
interest, reversal and conversion strategy executions are excluded 
from the Monthly Firm Fee Cap.
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    The Exchange lastly proposes to clarify in Footnote 11 of the Fees 
Schedule and the Notes section of the CBOE Proprietary Products Sliding 
Scale (``Sliding Scale'') that contract volume resulting from any 
strategies defined in Footnote 13 for which the strategy cap is applied 
will not apply towards reaching the qualifying ADV thresholds for the 
Sliding Scale. The Exchange notes that these contracts are not counted 
towards these thresholds because such contracts have already received 
the benefit of the strategy fee cap.
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.\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 
facilitation transactions in securities, to remove impediments to and 
perfect the mechanism of a free and open market and a national market

[[Page 56528]]

system, and, in general, to protect investors and the public interest. 
Additionally, the Exchange believes the proposed rule change is 
consistent with Section 6(b)(4) of the Act,\15\ which requires that 
Exchange rules provide for the equitable allocation of reasonable dues, 
fees, and other charges among its Trading Permit Holders and other 
persons using its facilities.
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    \13\ 15 U.S.C. 78f(b).
    \14\ 15 U.S.C. 78f(b)(5).
    \15\ 15 U.S.C. 78f(b)(4).
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    The Exchange believes extending the waiver of ETH Trading Permit 
and Bandwidth Packet fees for one of each type of Trading Permit and 
Bandwidth Packet, per affiliated TPH through December 31, 2015 is 
reasonable, equitable and not unfairly discriminatory, because it 
promotes and encourages trading during the ETH session and applies to 
all ETH TPHs. The Exchange believes it's also reasonable, equitable and 
not unfairly discriminatory to waive fees for Login IDs related to 
waived Trading Permits and/or Bandwidth Packets in order to promote and 
encourage ongoing participation in ETH and also applies to all ETH 
TPHs.
    The Exchange believes it's reasonable, equitable and not unfairly 
discriminatory to exclude customer-to-customer transactions from the 
QCC credit because these transactions, unlike customer-to-non customer 
or non-customer to non-customer transactions, are not assessed a QCC 
transaction fee. The Exchange notes that other exchanges also exclude 
customer-to-customer transactions from available rebates.\16\
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    \16\ See PHLX Pricing Schedule, Section II, Multiply Listed 
Option Fees.
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    The Exchange's proposal to increase the Linkage fee from $0.65 per 
contract to $0.70 per contract for non-customer orders and to adopt a 
$0.05 per contract fee (in addition to applicable transaction fees) for 
customer orders is reasonable because the increase non-customer fee and 
adoption of the customer fee will help offset the costs associated with 
routing orders through Linkage. Additionally, the proposed amounts are 
reasonable as they are in line with amounts charged by other Exchanges 
for similar transactions.\17\ The Exchange believes it's equitable and 
not unfairly discriminatory to assess higher linkage rates to non-
customers as opposed to customers because if a non-customer market 
participant wishes to avoid the Linkage fee, it may choose to specify 
that the Exchange not route orders away on its behalf or designate the 
order as Immediate or Cancel, which would prevent the order from 
linking away to another Exchange. Moreover, a non-customer market 
participant may route directly to exchanges posting the best market if 
desired to avoid Linkage routing fees.
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    \17\ See PHLX Pricing Schedule, Section V, Non-Customer and 
Customer Routing Fees.
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    The Exchange believes the proposed change to amend the fee tier 
thresholds in VIP are reasonable. Specifically, the Exchange believes 
it's reasonable to decrease the upper threshold in the second tier (and 
thus the corresponding lower threshold in the third tier) and increase 
the upper threshold in the third tier (and therefore the corresponding 
threshold in the fourth tier) because the slight change is designed to 
provide TPHs a greater ability to reach higher tiers and therefore 
receive higher credits as well as adjust the incentive tiers 
accordingly as competition requires while maintaining an incremental 
incentive for TPH's to strive for the highest tier level. This change 
is also equitable and not unfairly discriminatory because it will be 
applied to all TPHs uniformly. The Exchange believes that increasing 
the VIP simple and complex order credits in the third and fourth tiers 
is reasonable because it will allow all TPHs transmitting public 
customer simple and complex orders that reach certain volume thresholds 
to receive an increased credit for doing so. The amounts of the credits 
being proposed are also closer to the amounts of credits paid to market 
participants by another exchange for similar transactions.\18\ 
Additionally, the Exchange notes that increasing the credit (and 
providing higher credits for complex orders than for simple orders) is 
reasonable, equitable and not unfairly discriminatory because it is 
intended to incentivize the sending of more complex orders to the 
Exchange. This should provide greater liquidity and trading 
opportunities, including for market participants who send simple orders 
to the Exchange (as simple orders can trade with the legs of complex 
orders). The greater liquidity and trading opportunities should benefit 
not just public customers (whose orders are the only ones that qualify 
for the VIP) but all market participants.
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    \18\ See e.g., International Securities Exchange, LLC (``ISE'') 
Schedule of Fees, Section II (which lists complex order fees and 
rebates). For each public customer order transmitted by a market 
participant (with certain exceptions) a rebate of between $0.30 per 
contract and $0.46 per contract in Select Symbols and between $0.63 
per contract and $0.83 per contract is given to that market 
participant, depending on the qualifying thresholds that market 
participant meets. For each public customer complex order. [sic] See 
also, PHLX Pricing Schedule, Section II.B [sic], Multiply Listed 
Options Fees [sic], Customer Rebate Program, which provides for a 
rebate of between $0.10 per contract and $0.21 per contract for 
electronically delivered customer simple orders in Penny and Non-
Penny Pilot multiply-listed equity and ETF options (excluding SPY) 
classes.
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    The Exchange believes it's reasonable, equitable and not unfairly 
discriminatory to apply the strategy rebates described in Footnote 13 
of the Fees Schedule to equities, ETFs and ETNs because the Exchange no 
longer seeks to incentivize sending of strategy orders in index options 
classes and the proposed change applies to all TPHs. The Exchange 
believes that removing language relating to index options in Footnote 
13 serves 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 by preventing any potential 
confusion regarding which option classes the strategy rebates apply. 
Similarly, the Exchange believes that eliminating reference to floor 
brokerage rebates, which apply only to products for which strategy 
rebates do not apply, alleviates potential confusion, thereby 
protecting investors and public interest.
    The Exchange believes that adding clarifying language to the Fees 
Schedule to specify that once a Clearing Trading Permit Holder reaches 
the Fee Cap they are no longer eligible for additional strategy rebates 
also prevents potential confusion, which removes impediments to and 
perfects the mechanism of a free and open market and national market 
system.
    The Exchange believes it is reasonable to exclude strategies tied 
to a QCC transaction from the strategy rebates described in Footnote 13 
because those transactions already receive the benefit of a credit 
under the QCC incentive program and the Exchange does not believe an 
additional incentive is required. Additionally, another Exchange 
already excludes these transactions from similar caps.\19\ The Exchange 
believes it's equitable and not unfairly discriminatory to exclude QCC 
strategy orders from the strategy rebates because the proposed change 
applies to all TPHs uniformly for these types of transactions.
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    \19\ See PHLX Pricing Schedule, Section II, Multiply Listed 
Option Fees.
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    Finally, the Exchange believes that explicitly clarifying in the 
Fees Schedule that that contract volume for which a strategy cap (as 
defined in Footnote 13 of the Fees Schedule) has been applied is not 
included for purposes of reaching the qualifying ADV thresholds for the 
CBOE Proprietary Products Sliding Scale maintains clarity in the Fees 
Schedule

[[Page 56529]]

and serves 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 by preventing any potential 
confusion regarding whether or not the volume is included towards the 
Sliding Scale.

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

    The Exchange does not believe that the proposed rule changes will 
impose any burden on competition that are not necessary or appropriate 
in furtherance of the purposes of the Act. In particular, the Exchange 
does not believe that the proposed rule change to extend certain ETH 
fee waivers will impose any burden on intramarket competition because 
the proposed waiver would apply equally to all CBOE ETH TPHs. 
Additionally, the Exchange believes the proposed rule change will 
continue to encourage trading during ETH, which will provide additional 
liquidity and enhance competition during ETH. The Exchange does not 
believe that the proposed rule changes will impose any burden on 
intermarket competition that is not necessary or appropriate in 
furtherance of the purposes of the Act because the proposed rule change 
applies only to CBOE.
    The Exchange does not believe that the proposed rule change to 
exclude customer-to-customer transactions from receiving the $0.10 QCC 
credit imposes a burden on intramarket competition because although 
customer-to-customer transactions will not be receive a rebate, these 
transactions are not assessed QCC transaction fees (unlike customer-to-
non customer or non-customer to non-customer QCC transactions). The 
Exchange does not believe that the proposed rule changes will impose 
any burden on intermarket competition that is not necessary or 
appropriate in furtherance of the purposes of the Act because the 
proposed rule change applies only to CBOE and because other Exchanges 
have similar exclusions.\20\
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    \20\ See PHLX Pricing Schedule, Section II, Multiply Listed 
Option Fees.
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    The Exchange does not believe that the proposed change to the non-
customer Linkage fees will impose a burden on intramarket competition 
because the increase to the non-customer Linkage fee will apply equally 
to all non-customer orders routed via linkage and will help offset 
costs associated with routing non-customer orders via linkage. The 
Exchange does not believe that the proposed change to the customer 
Linkage fee will impose a burden on intramarket competition because it 
will apply equally to all customer orders routed via linkage and will 
help offset costs associated with routing customer orders via linkage. 
Additionally, the Exchange notes that while the Linkage fee assessed to 
non-customers is higher than that assessed to customers, non-customer 
market participants wishing to avoid the Linkage fee may choose to 
specify that the Exchange not route orders away on its behalf or 
designate the order as Immediate or Cancel, which would prevent the 
order from linking away to another Exchange. The Exchange believes the 
proposed changes will not impose any burden on intermarket competition 
that is not necessary or appropriate in furtherance of the purposes of 
the Act because it only applies to trading on the Exchange and orders 
sent from the Exchange to other exchanges via Linkage. Additionally, 
the Exchange notes that the proposed changes remain generally in line 
with routing fees assessed at other options exchanges.\21\
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    \21\ See PHLX Pricing Schedule, Section V, Customer and Non-
Customer [sic] Routing Fees.
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    The Exchange believes the proposed changes to amend the tier 
thresholds in VIP, as well as increase the VIP credits for simple and 
complex orders in Tiers 3 and 4 do not impose a burden on intramarket 
competition because it applies uniformly to all TPHs and incentivizes 
the sending of more simple and complex orders to the Exchange, which 
provides greater liquidity and trading opportunities.
    The Exchange does not believe that the proposed change to exclude 
index option classes from the strategy rebates described in Footnote 13 
of the Fees Schedule will impose any burden on intramarket competition 
because it applies to all TPHs executing strategy orders. To the extent 
that the proposed changes make CBOE a more attractive marketplace for 
market participants at other exchanges, such market participants are 
welcome to become CBOE market participants.
    The Exchange does not believe that the proposal to exclude strategy 
orders tied to a QCC transaction from the strategy rebates described in 
Footnote 13 of the Fees Schedule will impose a burden on intramarket 
competition because the proposed change applies to all TPHs uniformly 
and because these transactions already receive the benefit of a credit 
under the QCC incentive program. To the extent that the proposed 
changes make CBOE a more attractive marketplace for market participants 
at other exchanges, such market participants are welcome to become CBOE 
market participants.
    The Exchange does not believe that the proposed rule changes will 
impose any burden on intermarket competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. The Exchange 
notes that it operates in a highly competitive market in which market 
participants can readily favor competing venues. In such an 
environment, the Exchange must continually review, and consider 
adjusting, its fees and credits to remain competitive with other 
exchanges. For the reasons described above, the Exchange believes that 
the various proposed rule changes promote a competitive environment. To 
the extent that the proposed changes make CBOE a more attractive 
marketplace for market participants at other exchanges, such market 
participants are welcome to become CBOE market participants. Finally, 
the Exchange notes that the remaining proposed changes are clarifying 
in nature and are intended to alleviate confusion and are not intended 
for competitive purposes.

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \22\ and paragraph (f) of Rule 19b-4 \23\ 
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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    \22\ 15 U.S.C. 78s(b)(3)(A).
    \23\ 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.

[[Page 56530]]

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-2015-076 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-2015-076. 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 such 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-2015-076, and should be 
submitted on or before October 9, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\24\
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    \24\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-23394 Filed 9-17-15; 8:45 am]
BILLING CODE 8011-01-P