Document ID: SEC-2017-1466-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Board Options Exchange, Inc.
Posted Date: 2017-08-31T04:00Z

[Federal Register Volume 82, Number 168 (Thursday, August 31, 2017)]
[Notices]
[Pages 41457-41461]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-18446]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81483; File No. SR-CBOE-2017-057]

Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing of a Proposed Rule Change To Amend 
Interpretation and Policy .07 of Exchange Rule 4.11, Position Limits, 
To Increase the Position Limits for Options on Certain ETFs

August 25, 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 August 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 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.
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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 purpose of this filing is to amend Interpretation and Policy 
.07 of Exchange Rule 4.11, Position Limits, to increase the position 
limits for options on the following exchange traded funds (``ETFs'') 
and exchange traded notes (``ETNs''): iShares China Large-Cap ETF 
(``FXI''), iShares MSCI EAFE ETF (``EFA''), iShares MSCI Emerging 
Markets ETF (``EEM''), iShares Russell 2000 ETF (``IWM''), iShares MSCI 
EAFE ETF (``EFA''), iShares MSCI Brazil Capped ETF (``EWZ''), iShares 
20+ Year Treasury Bond Fund ETF (``TLT''), iPath S&P 500 VIX Short-Term 
Futures ETN (``VXX''), PowerShares QQQ Trust (``QQQQ''), and iShares 
MSCI Japan Index [sic] (``EWJ'').
    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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Position limits are designed to address potential manipulative 
schemes and adverse market impact surrounding the use of options, such 
as disrupting the market in the security underlying the options. The 
potential manipulative schemes and adverse market impact are balanced 
against the potential of setting the limits so low as to discourage 
participation in the options market. Position limits for options on 
ETFs and ETNs, such as those subject to this proposal, are determined 
pursuant to Exchange Rule 4.11, and vary according to the number of 
outstanding shares and the trading volume of the underlying stocks, 
ETFs, or ETNs over the past six-months. Pursuant to Exchange Rule 4.11, 
the largest in capitalization and the most frequently traded stocks, 
ETFs, and ETNs have an option position limit of 250,000 contracts (with 
adjustments for splits, re-capitalizations, etc.) on the same side of 
the market; and smaller capitalization stocks, ETFs, and ETNs have 
position limits of 200,000, 75,000, 50,000 or 25,000 contracts (with 
adjustments for splits, re-capitalizations, etc.) on the same side of 
the market. Options on FXI, EFA, EWZ, TLT, VXX, and EWJ are currently 
subject to the standard position limit of 250,000 contracts as set 
forth in Exchange Rule 4.11.\3\ Interpretation and Policy .07 of 
Exchange Rule 4.11 sets forth separate position limits for options on 
specific ETFs and ETNs as follows:
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    \3\ See https://www.theocc.com/webapps/delo-search.
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     Options on EEM are 500,000 contracts;
     Options on IWM are 500,000 contracts; and
     Options on QQQQ are 900,000 contracts.
    The purpose of this proposal is to amend Interpretation and Policy 
.07 to Exchange Rule 4.11 to double the position and exercise limits 
for FXI, EEM, IWM, EFA, EWZ, TLT, VXX, QQQQ, and EWJ.\4\ As such, 
options on FXI, EFA, EWZ, TLT, VXX, and EWJ would no longer be subject 
to the standard position limits set forth under Exchange Rule 4.11. 
Accordingly, Interpretation and Policy .07 to Exchange Rule 4.11 would 
be amended to set forth that the position limits for option on FXI, 
EFA, EWZ, TLT, VXX, and EWJ would be 500,000 contracts. These position 
limits equal the current position limits for option on IWM and EMM and 
are similar to the current position limit for options on QQQQ set forth 
in Interpretation and Policy .07 to Exchange Rule 4.11. Interpretation 
and Policy .07 to Exchange Rule 4.11 would be further amended to 
increase the position limits for the remaining options subject to this 
proposal as follows:
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    \4\ By virtue of Exchange Rule 4.12, Interpretation and Policy 
.02, which is not being amended by this filing, the exercise limit 
for FXI, EEM, IWM, EFA, EWZ, TLT, VXX, QQQQ, and EWJ options would 
be similarly increased.
    The Exchange also proposed to make non-substantive corrections 
to the names of IWM and EEM in Rule 4.11, Interpretation and Policy 
.07.
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     The position limits for options on EEM would be increased 
from 500,000 contracts to 1,000,000 contracts;
     The position limits on options on IWM would be increased 
from 500,000 contracts to 1,000,000 contracts; and
     The position limits on options on QQQQ would be increased 
from 900,000 contracts to 1,800,000 contracts.
    In support of this proposal, the Exchange represents that the above 
listed ETFs and ETNs qualify for either: (i) The initial listing 
criteria set forth in Exchange Rule 5.3.06(C) for ETFs holding non-U.S. 
component securities; or (ii) for ETFs and ETNs listed pursuant to 
generic listing standards for series of portfolio depository receipts 
and index fund shares based on

[[Page 41458]]

international or global indexes under which a comprehensive 
surveillance agreement (``CSA'') is not required.\5\ FXI tracks the 
performance of the FTSE China 50 Index, which is composed of the 50 
largest Chinese stocks.\6\ EEM tracks the performance of the MSCI 
Emerging Markets Index, which is composed of approximately 800 
component securities.\7\ ``The MSCI Emerging Markets Index consists of 
the following 21 emerging market country indices: Brazil, Chile, China, 
Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, 
Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South 
Africa, Taiwan, Thailand, and Turkey.'' \8\ IWM tracks the performance 
of the Russell 2000 Index, which is composed of 2,000 small-cap 
domestic stocks.\9\ EFA tracks the performance of MSCI EAFE Index, 
which has over 900 component securities.\10\ ``The MSCI EAFE Index is 
designed to represent the performance of large and mid-cap securities 
across 21 developed markets, including countries in Europe, Australasia 
and the Far East, excluding the U.S. and Canada.'' \11\ EWZ tracks the 
performance of the MSCI Brazil 25/50 Index, which is composed of shares 
of large and mid-size companies in Brazil.\12\ TLT tracks the 
performance of ICE U.S. Treasury 20+ Year Bond Index, which is composed 
of long-term U.S. Treasury bonds.\13\ VXX tracks the performance of S&P 
500 VIX Short-Term Futures Index Total Return. ``The Index is designed 
to provide access to equity market volatility through CBOE Volatility 
Index futures. The Index offers exposure to a daily rolling long 
position in the first and second month VIX futures contracts and 
reflects market participants' views of the future direction of the VIX 
index at the time of expiration of the VIX futures contracts comprising 
the Index.'' \14\ QQQQ tracks the performance of the Nasdaq-100 Index, 
which is composed of 100 of the largest domestic and international 
nonfinancial companies listed on the Nasdaq Stock Market LLC 
(``Nasdaq'').\15\ EWJ tracks the MSCI Japan Index, which tracks the 
performance of large and mid-sized companies in Japan.\16\
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    \5\ The Exchange notes that the initial listing criteria for 
options on ETFs and ETNs that hold non-U.S. component securities are 
more stringent than the maintenance listing criteria for those same 
ETF options. See Exchange Rule 5.3.06(C); Exchange Rule 5.4.08.
    \6\ See https://www.ishares.com/us/products/239536/ishares-china-largecap-etf.
    \7\ See http://us.ishares.com/product_info/fund/overview/EEM.htm.
    \8\ See http://www.msci.com/products/indices/tools/index.html#EM.
    \9\ See https://www.ishares.com/us/products/239710/ishares-russell-2000-etf.
    \10\ See https://www.ishares.com/us/products/239623/.
    \11\ See https://www.msci.com/eafe.
    \12\ See https://www.ishares.com/us/products/239612/ishares-msci-brazil-capped-etf.
    \13\ See https://www.ishares.com/us/products/239454/.
    \14\ See http://www.ipathetn.com/US/16/en/details.app?instrumentId=259118.
    \15\ See https://www.invesco.com/portal/site/us/financial-professional/etfs/product-detail?productId=QQQ&ticker=QQQ&title=powershares-qqq.
    \16\ See https://www.ishares.com/us/products/239665/EWJ.
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    CBOE represents that more than 50% of the weight of the securities 
held by the options subject to this proposal are also subject to a 
CSA.\17\ Additionally, the component securities of the MSCI Emerging 
Markets Index on which EEM is based for which the primary market is in 
any one country that is not subject to a CSA do not represent 20% or 
more of the weight of the MSCI Emerging Markets Index.\18\ Finally, the 
component securities of the MSCI Emerging Markets Index on which EEM is 
based, for which the primary market is in any two countries that are 
not subject to CSAs do not represent 33% of more of the weight of the 
MSCI Emerging Markets Index.\19\
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    \17\ See Exchange Rule 5.3.06(C).
    \18\ See Exchange Rule 5.3.06(C)(ii)(b).
    \19\ See Exchange Rule 5.3.06(C)(ii)(c).
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    Market participants have increased their demand for options on FXI, 
EFA, EWZ, TLT, VXX, and EWJ for hedging and trading purposes and the 
Exchange believes the current position limits are too low and may be a 
deterrent to successful trading of options on these securities. The 
Exchange has the collected following trading statistics on the ETFs and 
ETNs that are subject to this proposal:

----------------------------------------------------------------------------------------------------------------
                                                                     2017 ADV         Shares
                       ETF                        2017 ADV (mil.      (option       outstanding     Fund market
                                                      shares)       contracts)        (mil.)        cap ($mil.)
----------------------------------------------------------------------------------------------------------------
FXI.............................................           15.08          71,944            78.6        $3,343.6
EEM.............................................           52.12         287,357           797.4        34,926.1
IWM.............................................           27.46         490,070           253.1        35,809.1
EFA.............................................           19.42          98,844          1178.4        78,870.3
EWZ.............................................           17.08          95,152           159.4         6,023.4
TLT.............................................            8.53          80,476            60.0         7,442.4
VXX.............................................           55.04         336,331            96.7         1,085.6
QQQQ............................................           26.25         579,404           351.6        50,359.7
EWJ.............................................            6.06           4,715           303.6        16,625.1
SPY.............................................           64.63       2,575,153          976.23       240,540.0
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    In support of its proposal to increase the position limits for QQQQ 
to 1,800,000 contracts, the Exchange compared the trading 
characteristics of QQQQ to that of the SPDR S&P 500 ETF (``SPY''), 
which has no position limits. As shown in the above table, the average 
daily trading volume through August 14, 2017 for QQQQ was 26.25 million 
shares compared to 64.63 million shares for SPY. The total shares 
outstanding for QQQQ are 351.6 million compared to 976.23 million for 
SPY. The fund market cap for QQQQ is $50,359.7 million compared to 
$240,540 million for SPY. SPY is one of the most actively trading ETFs 
and is, therefore, subject to no position limits. QQQQ is also very 
actively traded, and while not to the level of SPY, should be subject 
to the proposed higher position limits based its trading 
characteristics when compared to SPY. The proposed position limit 
coupled with QQQQ's trading behavior would continue to address 
potential manipulative schemes and adverse market impact surrounding 
the use of options and trading in its underlying the options.
    In support of its proposal to increase the position limits for EEM 
and IWM from 500,000 contracts to 1,000,000 contracts, the Exchange 
compared the trading characteristics of EEM and IWM to that of QQQQ, 
which currently has a position limit of 900,000 contracts. As shown in 
the above table, the average daily trading volume through July 31, 2017 
for EEM was 52.12 million shares

[[Page 41459]]

and IWM was 27.46 million shares compared to 26.25 million shares for 
QQQQ. The total shares outstanding for EEM are 797.4 million and for 
IWM are 253.1 million compared to 351.6 million for QQQQ. The fund 
market cap for EEM is $34,926.1 million and IWM is $35.809 [sic] 
million compared to $50,359.7 million for QQQQ. EEM, IWM and QQQQ have 
similar trading characteristics and subjecting EEM and IWM to the 
proposed higher position limit would continue be designed to address 
potential manipulate schemes that may arise from trading in the options 
and their underlying securities. These above trading characteristics 
for QQQQ when compared to EEM and IWM also justify increasing the 
position limit for QQQQ. QQQQ has a higher options ADV than EEM and 
IWM, a higher numbers of shares outstanding than IWM and a much higher 
market cap than EEM and IWM which justify doubling the positon limit 
for QQQQ. Based on these statistics, and as stated above, the proposed 
position limit coupled with QQQQ's trading behavior would continue to 
address potential manipulative schemes and adverse market impact 
surrounding the use of options and trading in its underlying the 
options.
    In support of its proposal to increase the position limits for FXI, 
EFA, EWZ, TLT, VXX, and EWJ from 250,000 contracts to 500,000 
contracts, the Exchange compared the trading characteristics of FXI, 
EFA, EWZ, TLT, VXX and EWJ to that of EEM and IWM, both of which 
currently have a position limit of 500,000 contracts. As shown in the 
above table, the average daily trading volume through July 31, 2017 for 
FXI is 15.08 million shares, EFA is 19.42 million shares, EWZ is 17.08 
million shares, TLT is 8.53 million shares, VXX is 55.04 million 
shares, and EWJ is 6.06 million shares compared to 52.12 million shares 
for EEM and 27.46 million shares for IWM. The total shares outstanding 
for FXI is 78.6 million, EFA is 1178.4 million, EWZ is 159.4 million, 
TLT is 60 million, VXX is 96.7 million, and EWJ is 303.6 million 
compared to 797.4 million for EEM and 253.1 million for IWM. The fund 
market cap for FXI is $3,343.6 million, EFA is $78,870.3 million, EWZ 
is $6,023.4 million, TLT is $7,442.4 million, VXX is $1,085.6 million, 
and EWJ is $16,625.1 million compared to $34.926.1 [sic] million for 
EEM and $35,809.1 million for IWM.
    Market participants' trading activity has been adversely impacted 
by the current position limits for FXI, EFA, EWZ, TLT, VXX and EWJ and 
such limits have caused options trading in these symbols to move from 
exchanges to the over-the-counter market. The above trading 
characteristics of FXI, EFA, EWZ, TLT, VXX and EWJ is either similar to 
that of EEM and IWM or sufficiently active enough so that the proposed 
limit would continue to address potential manipulative that may arise. 
Specifically, VXX has an average daily trading volume similar to EEM 
and higher than IWM. VXX has an options volume higher than EEM, more 
shares outstanding than IWM and a larger fund market cap than both EEM 
and IWM. EFA has far more shares outstanding and a larger fund market 
cap than EEM, IWM, and QQQQ. EWJ has a more shares outstanding than IWM 
and only slightly less shares outstanding than QQQQ.
    On the other hand, while FXI, EWZ, and TLT do not exceed EEM, IWM 
or QQQQ is any of the specified areas, they are all actively trading so 
that market participant's trading activity has been impacted by them 
being restricted by the current position limits. The Exchange believes 
that the trading activity and these securities being based on a broad 
basket of underlying securities alleviates any potential manipulative 
activity that may arise. In addition, as discussed in more detail 
below, the Exchange's existing surveillance procedures and reporting 
requirements at the Exchange, other options exchanges, and at the 
several clearing firms are capable of properly identifying unusual and/
or illegal trading activity.
    The Exchange believes that increasing the position limits for the 
options subject to this proposal would lead to a more liquid and 
competitive market environment for these options, which will benefit 
customers interested in this product. Under the proposal, the reporting 
requirement for the above options would be unchanged. Thus, the 
Exchange would still require that each Trading Permit Holder (``TPH'') 
or TPH organization that maintains a position in the options on the 
same side of the market, for its own account or for the account of a 
customer, report certain information to the Exchange. This information 
would include, but would not be limited to, the options' position, 
whether such position is hedged and, if so, a description of the hedge, 
and the collateral used to carry the position, if applicable. Exchange 
Market-Makers \20\ (including Designated Primary Market-Makers) \21\ 
would continue to be exempt from this reporting requirement, as Market-
Maker information can be accessed through the Exchange's market 
surveillance systems. In addition, the general reporting requirement 
for customer accounts that maintain an aggregate position of 200 or 
more options contracts would remain at this level for the options 
subject to this proposal.\22\
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    \20\ A Market-Maker ``is an individual Trading Permit Holder or 
a TPH organization that is registered with the Exchange for the 
purpose of making transactions as dealer-specialist on the Exchange 
in accordance with the provisions of this Chapter.'' See Exchange 
Rule 8.1.
    \21\ A Designated Primary Market-Maker ``is TPH organization 
that is approved by the Exchange to function in allocated securities 
as a Market-Maker (as defined in Rule 8.1) and is subject to the 
obligations under Rule 8.85 or as otherwise provided under the rules 
of the Exchange.'' See Exchange Rule 8.80(a).
    \22\ See Exchange Rule 4.13 for reporting requirements.
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    The Exchange believes that the existing surveillance procedures and 
reporting requirements at the Exchange, other options exchanges, and at 
the several clearing firms are capable of properly identifying unusual 
and/or illegal trading activity. In addition, routine oversight 
inspections of the Exchange's regulatory programs by the Commission 
have not uncovered any material inconsistencies or shortcomings in the 
manner in which the Exchange's market surveillance is conducted. These 
procedures utilize daily monitoring of market movements via automated 
surveillance techniques to identify unusual activity in both options 
and underlying stocks.\23\
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    \23\ These procedures have been effective for the surveillance 
of trading the options subject to this proposal and will continue to 
be employed.
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    Furthermore, large stock holdings must be disclosed to the 
Commission by way of Schedules 13D or 13G.\24\ The positions for 
options subject to this proposal are part of any reportable positions 
and, thus, cannot be legally hidden. Moreover, the Exchange's 
requirement that TPHs file reports with the Exchange for any customer 
who held aggregate large long or short positions of any single class 
for the previous day will continue to serve as an important part of the 
Exchange's surveillance efforts.
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    \24\ 17 CFR 240.13d-1.
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    The Exchange believes that the current financial requirements 
imposed by the Exchange and by the Commission adequately address 
concerns that a TPH or its customer may try to maintain an inordinately 
large un-hedged position in the options subject to this proposal. 
Current margin and risk-based haircut methodologies serve to limit the 
size of positions maintained by any one account by increasing the 
margin and/or capital that a TPH must maintain for a large position 
held by itself or by its

[[Page 41460]]

customer.\25\ In addition, Rule 15c3-1 \26\ imposes a capital charge on 
TPHs to the extent of any margin deficiency resulting from the higher 
margin requirement.
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    \25\ See Exchange Rule 12.3 for a description of margin 
requirements.
    \26\ 17 CFR 240.15c3-1.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with the 
requirements of the Act and the rules and regulations thereunder that 
are applicable to a national securities exchange, and, in particular, 
with the requirements of Section 6(b) of the Act.\27\ In particular, 
the proposal is consistent with Section 6(b)(5) of the Act \28\ because 
it is 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 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. The current 
position limits for the options subject to this proposal have inhibited 
the ability of Market Makers to make markets on the Exchange. 
Specifically, the proposal is designed to encourage Market Makers to 
shift liquidity from over the counter markets onto the Exchange, which 
will enhance the process of price discovery conducted on the Exchange 
through increased order flow. The proposal will also benefit 
institutional investors as well as retail traders, and public 
customers, by providing them with a more effective trading and hedging 
vehicle. In addition, the Exchange believes that the structure of the 
ETFs and ETNs subject to this proposal and the considerable liquidity 
of the market for options on those ETFs and ETNs diminishes the 
opportunity to manipulate this product and disrupt the underlying 
market that a lower position limit may protect against.
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    \27\ 15 U.S.C. 78f(b).
    \28\ 15 U.S.C. 78f(b)(5).
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    Increased position limits for select actively traded options, such 
as that proposed herein, is not novel and has been previously approved 
by the Commission. For example, the Commission has previously approved, 
on a pilot basis, eliminating position limits for options on.\29\ 
Additionally, the Commission has approved similar proposed rule changes 
to increase position limits for options on highly liquid, actively-
traded ETFs,\30\ including a proposal to permanently eliminate the 
position and exercise limits for options overlaying the S&P 500 Index, 
S&P 100 Index, Dow Jones Industrial Average, and Nasdaq 100 Index.\31\ 
In approving the permanent elimination of position and exercise limits, 
the Commission relied heavily upon the Exchange's surveillance 
capabilities, the Commission expressed trust in the enhanced 
surveillance and reporting safeguards that the Exchange took in order 
to detect and deter possible manipulative behavior which might arise 
from eliminating position and exercise limits.\32\ Furthermore, as 
described more fully above, options on other ETFs a have the position 
limits proposed herein with similar trading characteristics and trading 
volumes than similar to the ETFs and ETNs subject to the proposed rule 
change.
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    \29\ See Securities Exchange Act Release Nos. 67672 (August 15, 
2012), 77 FR 50750 (August 22, 2012) (SR-NYSEAmex-2012-29); 67937 
(September 27, 2012), 77 FR 60489 (October 3, 2012) (SR-CBOE-2012-
091).
    \30\ See Securities Exchange Act Release Nos. 68086 (October 23, 
2012), 77 FR 65600 (October 29, 2012) (SR-CBOE-2012-066); 64928 
(July 20, 2011), 76 FR 44633 (July 26, 2011) (SR-CBOE-2011-065); 
64695 (June 17, 2011), 76 FR 36942 (June 23, 2011) (SR-PHLX-2011-
58); and 55155 (January 23, 2007), 72 FR 4741 (February 1, 2017) 
(SR-CBOE-2007-008.).
    \31\ See Securities Exchange Act Release Nos. 44994 (October 26, 
2001), 66 FR 55722 (November 2, 2001) (SR-CBOE-2001-22); 52650 
(October 21, 2005), 70 FR 62147 (October 28, 2005) (SR-CBOE-2005-41) 
(``NDX Approval'').
    \32\ See NDX Approval at 62149.
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    Lastly, the Commission expressed the belief that removing position 
and exercise limits may bring additional depth and liquidity without 
increasing concerns regarding intermarket manipulation or disruption of 
the options or the underlying securities.\33\ The Exchange's enhanced 
surveillance and reporting safeguards continue to be designed to deter 
and detect possible manipulative behavior which might arise from 
eliminating position and exercise limits.
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    \33\ Id.
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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 not necessary or appropriate in 
furtherance of the purposes of the Act. On the contrary, the Exchange 
believes the proposal promotes competition because it will enable other 
exchanges who refer to the Exchange's rules concerning position limits 
to attract additional order flow from the over-the-counter market to 
exchanges, who would in turn compete amongst each other for those 
orders.\34\ The Exchange believes that the proposed rule change will 
result in additional opportunities to achieve the investment and 
trading objectives of market participants seeking efficient trading and 
hedging vehicles, to the benefit of investors, market participants, and 
the marketplace in general.
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    \34\ For example, Nasdaq position limits are determined by the 
position limits established by the Exchange. See Nasdaq Rule Sec. 7 
(Position Limits).
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C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    The Exchange has not solicited, and does not intend to solicit, 
comments on this proposed rule change. The Exchange has not received 
any written comments from members or other interested parties.

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-2017-057 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-2017-057. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your

[[Page 41461]]

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-2017-057 and should be submitted on or before 
September 21, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\35\
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    \35\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-18446 Filed 8-30-17; 8:45 am]
 BILLING CODE 8011-01-P