
[Federal Register Volume 79, Number 232 (Wednesday, December 3, 2014)]
[Notices]
[Pages 71811-71814]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-28426]



[[Page 71811]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73697; File No. SR-CBOE-2014-088]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change Relating to SPX End-of-Month Closing Procedures

November 26, 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 November 24, 2014, Chicago Board Options Exchange, Incorporated 
(the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange 
Commission (the ``Commission'') a 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 Exchange proposes to make minor changes to Interpretation and 
Policy .06 to Rule 6.2B (Hybrid Opening System (``HOSS'')) relating to 
month-end pricing procedures for non-expiring S&P 500 Index (``SPX'') 
options.

(additions are italicized; deletions are [bracketed])
* * * * *
Chicago Board Options Exchange, Incorporated Rules
* * * * *
Rule 6.2B. Hybrid Opening System (``HOSS'')
    (a)-(h) No change.
    . . . Interpretations and Policies:
    .01-.05 No change.
    .06 Following the [3:15 p.m. Chicago time] close of trading on the 
last business day of each calendar month, the Exchange will conduct 
special non-trading closing rotations for each series of S&P 500 Index 
(``SPX'') options in order to determine the theoretical ``fair value'' 
of such series as of [3:00 p.m. Chicago time] time of the close of 
trading in the underlying cash market. During such special non-trading 
closing rotations, an LMM in the SPX options designated by the Exchange 
in each series of SPX options, will provide bid and offer quotations, 
the midpoint of which will reflect the theoretical fair value of the 
series of SPX options, as determined by the LMM pursuant to the LMM's 
algorithmic analysis of relevant and available data. Notwithstanding 
that trading in SPX options on the Exchange continues until [3:15 p.m.] 
fifteen minutes after the close of trading in the underlying cash 
market, on the last business day of each month, after [3:15 p.m.] the 
close of trading, the Exchange shall disseminate the [3:00 p.m.] fair 
value quotations as of the close of trading in the underlying cash 
market provided by the designated LMM as the quotations used to 
calculate the theoretical fair value for each series of SPX options, 
provided, however, that the Exchange may determine, in the interest of 
fair and orderly markets, not to disseminate such quotations.
* * * * *
    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
    The Exchange proposes to make minor changes to its SPX end-of-month 
pricing procedures in Interpretation and Policy .06 to Rule 6.2B 
(``Interpretation and Policy .06'') to account for the fact that the 
SPX cash market may close at a time other than 3:00 p.m. Chicago time 
on the last business day of each calendar month. The Exchange believes 
that the proposed rule will help ensure consistency in the S&P 500 
Index-related markets and make it easier for investors to trade SPX 
options.
Background
    In 2001, the Chicago Mercantile Exchange (``CME'') adopted special 
settlement procedures to determine end-of-month settlement prices for 
its domestic futures contracts.\3\ Specifically, CME adopted end-of-
month valuation procedures to calculate the price of S&P 500 futures 
contracts based on the value of the underlying S&P 500 Index at the 
close of trading. CME has termed these procedures ``End-of-Month 
Special Fair Value'' (``EOM FV'') or ``Fair Value'' (``FV'') settlement 
procedures.
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    \3\ The CME originally instituted this practice for the December 
31, 1999 year-end, but has adopted the practice for each month-end 
closing date since January 2001. See generally CME Group, Month-End 
Fair Value Procedures, available at http://www.cmegroup.com/trading/equity-index/fairvaluefaq.html.
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    According to CME, ``[f]air value is the theoretical assumption of 
where a futures contract should be priced given such things as the 
current index level, index dividends, days to expiration and interest 
rates.'' \4\ Pursuant to its EOM FV settlement procedures, CME 
calculates the end-of-month final settlement value of S&P 500 futures 
contracts based on the value of the underlying S&P 500 Index cash 
market, rather than the actual final trading prices of S&P 500 futures 
contracts. CME uses its end-of-month theoretical fair value settlement 
prices for all purposes, including account value reporting and end-of-
day variation margin calls.\5\ These procedures mitigate issues caused 
by the misalignment of valuations in the S&P 500 futures market and the 
underlying S&P 500 Index cash market due to the extended trading hours 
for S&P 500 futures contracts after the close of trading in the cash 
market.
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    \4\ See generally CME Group, Calculating Fair Value, available 
at http://www.cmegroup.com/trading/equity-index/fairvalue.html.
    \5\ See generally CME Group, End of Month Settlement Procedures, 
available at http://www.cmegroup.com/trading/equity-index/fairvaluefaq.html.
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    The Exchange understands that CME adopted its EOM FV procedures at 
the request of institutional investors (active in both the S&P 500 
futures and S&P 500 Index cash markets), who wanted the end-of-month 
value of their futures positions to align with prices in the underlying 
S&P 500 Index cash market. If the month-end settlement price of 
investors' futures positions were based on the actual closing trading 
prices as of the close of futures trading fifteen minutes after the 
close of trading in the underlying S&P 500 Index cash market while the 
month-end closing price of their cash positions were based on the close 
of trading in the underlying S&P

[[Page 71812]]

500 Index cash market fifteen minutes prior to the close of trading in 
the S&P 500 futures market, investors might experience tracking errors 
and/or financial reporting incongruities that do not reflect actual 
portfolio performance. Pricing model discrepancies or misaligned 
pricing between the S&P 500 futures and S&P 500 Index cash market could 
also lead to unnecessary and/or unwarranted margin calls and returns as 
well as other hedging and accounting problems. The EOM FV settlement 
procedures adopted by CME mitigate these issues by aligning the end-of-
month settlement prices of S&P 500 futures contracts with closing 
prices in the underlying cash market as of the close of trading in the 
cash market.\6\
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    \6\ CME has explained the reason for maintaining its fair value 
procedure as follows: Stock index products on the . . . [CME] 
normally close and settle fifteen minutes after the daily close of 
trading in cash equities. The cash/futures basis may be affected to 
the extent that futures may fluctuate--sometimes sharply--during 
those final fifteen minutes. As such, this may become a difficulty 
for institutional traders practicing coordinated cash/futures 
strategies. Still, the opportunity to lay off equity market exposure 
during those fifteen minutes subsequent to the cash close has proven 
quite beneficial. The use of 3:00 p.m. ``Fixing Price'' settlement 
procedures at month end is intended to address this so-called 
``tracking error'' while still permitting trade to continue past the 
3:00 p.m. cash close. Conceptually, the 3:00 p.m. settlement is 
determined at the same time as the cash market close at 3:00 p.m., 
since any new information following 3:00 p.m. will not affect the 
closing price of the stocks or the futures 3:00 p.m. Fixing Price. 
However, information or events subsequent to the cash market close 
may still impact futures prices. Market participants should be aware 
of the possibility that futures may trade at prices apart from the 
3:00 p.m. Fixing Price based settlement prices between 3:00 p.m. and 
the close of the futures market at 4:15 p.m. on days on which end of 
month settlement procedures are applied. See id.
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    The S&P 500 futures market and SPX options market are highly 
interconnected. Many investors use SPX options to hedge S&P 500 futures 
positions. Because of the interconnectedness between the S&P 500 
futures and SPX options markets, the Exchange believed that the use of 
end-of-month pricing procedures that diverged significantly from the 
CME's EOM FV pricing procedures would be disruptive to fair and orderly 
markets. Although the Exchange could have aligned the end-of-month 
settlement prices of standard non-expiring SPX options with the end-of-
month prices of the related S&P 500 futures contracts (and the 
underlying S&P Index cash market) by simply ending trading at the close 
of trading in the cash market on the last trading day of each month, 
the Exchange determined that closing trading in SPX options market 
prior to the close of trading at the CME would also be disruptive to 
fair and orderly markets. In particular, the Exchange believed that 
closing trading for standard non-expiring SPX options during S&P 500 
futures trading hours would be disruptive to many market participants 
who hedge S&P 500 futures positions with SPX options. Accordingly, the 
Exchange adopted end-of-month settlement practices designed to align 
its end-of-month pricing with CME's EOM FV settlement procedures. The 
Exchange's end-of-month pricing procedures were adopted through a 
series of Regulatory Circulars and subsequently codified in the 
Exchange's rules in Interpretation and Policy .06.\7\
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    \7\ See CBOE Interpretation and Policy .06 to Rule 6.2B; 
Securities and Exchange Act Release No. 34-67992 (October 5, 2012), 
77 FR 62277 (October 12, 2012) (Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change Relating to Closing Rotation 
Procedures for S&P 500 Index Options) (SR-CBOE-2012-095). See also 
CBOE Regulatory Circular RG99-233 (Dec. 21, 1999), available at 
https://www.cboe.org/publish/regcir/rg99-233.pdf; CBOE Regulatory 
Circular RG00-049 (Mar. 29, 2000), available at https://www.cboe.org/publish/regcir/rg00-049.pdf; CBOE Regulatory Circular 
RG01-014 (Jan. 25, 2001), available at http://www.cboe.com/publish/RegCir/RG01-014.pdf; CBOE Regulatory Circular RG01-040 (Mar. 29, 
2001), available at https://www.cboe.org/publish/regcir/rg01-040.pdf; CBOE Regulatory Circular RG01-058 (Apr. 27, 2001), 
available at https://www.cboe.org/publish/regcir/rg01-058.pdf; CBOE 
Regulatory Circular RG02-019 (Apr. 4, 2002), available at http://www.cboe.com/publish/RegCir/RG02-019.pdf; CBOE Regulatory Circular 
RG02-039 (June 12, 2002), available at http://www.cboe.com/publish/RegCir/RG02-039.pdf; CBOE Regulatory Circular RG02-073 (Sept. 17, 
2002), available at http://www.cboe.com/publish/RegCir/RG02-073.pdf; 
CBOE Regulatory Circular RG02-118 (Dec. 19, 2002), available at 
http://www.cboe.org/publish/regcir/rg02-118.pdf; CBOE Regulatory 
Circular RG03-016 (Mar. 19, 2003), available at http://www.cboe.com/publish/RegCir/RG03-016.pdf; CBOE Regulatory Circular RG03-039 (June 
11, 2003), available at http://www.cboe.com/publish/RegCir/RG03-039.pdf; CBOE Regulatory Circular RG03-075 (Sept. 10, 2003), 
available at http://www.cboe.com/publish/RegCir/RG03-075.pdf; CBOE 
Regulatory Circular RG03-082 (Sept. 22, 2003), available at http://www.cboe.com/publish/RegCir/RG03-082.pdf; CBOE Regulatory Circular 
RG03-110 (Dec. 17, 2003), available at http://www.cboe.com/publish/RegCir/RG03-110.pdf; CBOE Regulatory Circular RG04-132 (Dec. 30, 
2004), available at http://www.cboe.com/publish/RegCir/RG04-132.pdf; 
CBOE Regulatory Circular RG05-130 (Dec. 29, 2005), available at 
http://www.cboe.com/publish/RegCir/RG05-130.pdf; CBOE Regulatory 
Circular RG06-130 (Dec. 19, 2006), available at http://www.cboe.org/publish/regcir/rg06-130.pdf; CBOE Regulatory Circular RG08-004 (Jan. 
8, 2008), available at http://www.cboe.com/publish/RegCir/RG08-004.pdf; CBOE Regulatory Circular RG09-151 (Dec. 30, 2009), 
available at http://www.cboe.org/publish/regcir/rg09-151.pdf; and 
CBOE Regulatory Circular RG12-023 (Jan. 30, 2012), available at 
http://www.cboe.org/publish/regcir/rg12-023.pdf.
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    Currently, on the last business day of each month, the Exchange 
conducts special end-of-month non-trading rotations for series of 
standard non-expiring SPX options pursuant to Interpretation and Policy 
.06. These special non-trading closing rotations are conducted on the 
same month-end business days on which CME calculates the EOM FV 
settlement prices of the S&P 500 futures contracts based on the 
theoretical fair value of the underlying S&P 500 Index cash market at 
the close of trading.\8\ On such days, a designated Lead Market-Maker 
(``LMM'') calculates non-trading closing bid and offer quotations to 
reflect the theoretical fair value of each SPX option series using 
pricing algorithms with a number of relevant inputs, in particular, the 
EOM FV settlement prices of the related S&P 500 futures contracts at 
CME.\9\ The theoretical fair value prices are then disseminated to the 
Options Clearing Corporation (``OCC'') via the Options Price Reporting 
Authority (``OPRA'') after the close of trading on the last business 
day of each month (on the same day that CME performs its end-of-month 
fair market valuations for the S&P 500 futures). Consistent with CME's 
practices, the Exchange considers the end-of-month theoretical fair 
value closing prices of SPX options to be the final month-end 
settlement prices for all purposes, including OCC margin calculations, 
even though no actual trades occur at these prices.\10\
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    \8\ See CBOE Interpretation and Policy .06 to Rule 6.2B.
    \9\ See Securities and Exchange Act Release No. 34-67992 
(October 5, 2012), 77 FR 62277 (October 12, 2012) (Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Relating to 
Closing Rotation Procedures for S&P 500 Index Options) (SR-CBOE-
2012-095).
    \10\ Notably, when the Exchange codified Interpretation and 
Policy .06, the Exchange stated that it anticipated disseminating 
end-of-month non-trading closing rotation quotations for each series 
of SPX options so long as doing so remains consistent with CME's 
end-of-month pricing practices in the S&P 500 futures. See id.
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Proposed Rule Change
    The Exchange proposes to make minor changes to its SPX end-of-month 
pricing procedures in Interpretation and Policy .06 to account for the 
fact that the SPX cash market may close at a time other than 3:00 p.m. 
Chicago time on the last business day of each calendar month. Despite 
the fact that the close of trading on the last business day of each 
month may occur prior to 3:00 p.m. Chicago time in the S&P 500 Index 
cash market (and thus, before 3:15 p.m. Chicago time in the options 
market) on certain holidays or other abbreviated trading days, the 
Exchange's current rules do not account for this discrepancy. Rather, 
current Interpretation and Policy .06 specifically provides that 
``[f]ollowing the 3:15 p.m. Chicago time close of trading on the last 
business day of each calendar month, the Exchange will

[[Page 71813]]

conduct special non-trading closing rotations for each series of S&P 
500 Index (``SPX'') options in order to determine the theoretical 
``fair value'' of such series as of 3:00 p.m. Chicago time.'' Notably, 
CME will conduct its EOM FV procedures prior to 3:15 p.m. Chicago time 
on certain holidays and abbreviated trading days that fall on the final 
business day of a calendar month.\11\
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    \11\ In such cases, the Exchange has followed its EOM FV 
procedures in the interest of fair and orderly markets. See, e.g., 
CBOE Regulatory Circular RG13-150 available at http://www.cboe.com/publish/RegCir/RG13-150.pdf.
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    In order to resolve this discrepancy, the Exchange proposes to 
amend Interpretation and Policy .06 to eliminate all references to a 
3:15 p.m. close of trading and instead provide that following the close 
of trading on the last business day of each calendar month, the 
Exchange will conduct special non-trading closing rotations for each 
series of SPX options in order to determine the theoretical ``fair 
value'' of such series as of as of [sic] the time of the close of 
trading in the underlying cash market. Similarly, the Exchange proposes 
to amend Interpretation and Policy .06 to provide that notwithstanding 
that trading in SPX options on the Exchange continues until fifteen 
minutes after the close of trading in the underlying cash market, on 
the last business day of each month, after the close of trading, the 
Exchange shall disseminate the fair value quotations as of the close of 
trading in the underlying cash market provided by the designated LMM as 
the quotations used to calculate the theoretical fair value for each 
series of SPX options, provided, however, that the Exchange may 
determine, in the interest of fair and orderly markets, not to 
disseminate such quotations. The Exchange believes that the proposed 
changes would ensure consistency in the S&P 500 Index-related markets 
and further the intended goals served by the alignment of the S&P 500 
futures and SPX options markets as described above.
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.\12\ Specifically, the Exchange believes the proposed rule change 
is consistent with the Section 6(b)(5) \13\ 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) \14\ requirement that the rules of 
an exchange not be designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers.
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    \12\ 15 U.S.C. 78f(b).
    \13\ 15 U.S.C. 78f(b)(5).
    \14\ Id.
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    The Exchange is proposing to make minor changes to its SPX end-of-
month pricing procedures in Interpretation and Policy .06 to account 
for the fact that the SPX cash market may close at a time other than 
3:00 p.m. Chicago time on the last business day of each calendar month. 
The Exchange believes that its end-of-month FV pricing procedures 
remove impediments to perfecting the mechanism of a free and open 
national market system by allowing traders and investors to realize 
consistency across the different S&P 500 Index-related markets at the 
end of each month. Because Interpretation and Policy .06 contains 
specific references to 3:15 p.m. Chicago time, it does not allow the 
Exchange to conduct end-of-month FV pricing procedures in a manner 
consistent with CME based on the value of the cash market if there is 
an abbreviated trading day on the final business day of the month.
    The Exchange's SPX end-of-month FV pricing procedures were adopted 
to smooth pricing inconsistencies in the S&P 500 Index-related markets 
due [sic] market events during the 15 additional minutes of extended 
trading hours in the SPX options and S&P 500 futures markets after the 
close of trading in the cash market. The Exchange's end-of-month FV 
procedures are designed to foster consistency in the S&P 500 Index-
related markets by aligning the price of SPX options and S&P 500 
futures prices at the end of trading at 3:15 p.m. Chicago time with the 
closing price of the cash market as of 3:00 p.m. Chicago time. When it 
adopted Interpretation and Policy .06, however, the Exchange did not 
contemplate the possibility of the final business day the month falling 
on an abbreviated trading day or on a day with a close at a time other 
than 3:15 p.m. Chicago time. Thus, on days such as the day after 
Thanksgiving, Friday, November 28, 2014, Interpretation and Policy .06 
does not afford the Exchange the flexibility needed to conduct its SPX 
end-of-month FV pricing procedures at or near the close of trading at 
12:15 p.m. Chicago time. The Exchange believes that the proposed 
amendment will add consistency to the markets and help promote fair and 
orderly markets.

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

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The Exchange does not 
believe that better aligning its end-of-month fair value settlement 
procedures with the S&P 500 futures market will adversely affect 
investors. These procedures will be equally applied and will equally 
affect all market participants in the SPX options market. Furthermore, 
the Exchange believes that the proposed rule will bolster competition 
and contribute to more robust markets by making it easier for investors 
to trade SPX options and use SPX options to hedge S&P 500 futures 
positions.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    The Exchange neither solicited nor received written comments on the 
proposed rule change.

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

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \15\ and Rule 19b-4(f)(6) thereunder.\16\ 
Because the proposed rule change does not: (i) Significantly affect the 
protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative prior to 
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, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act \17\ and Rule 19b-
4(f)(6)(iii) thereunder.\18\
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    \15\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \16\ 17 CFR 240.19b-4(f)(6).
    \17\ 15 U.S.C. 78s(b)(3)(A).
    \18\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires the Exchange to give the Commission written notice of the 
Exchange's intent to file the proposed rule change, along with a 
brief description and text of 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. The 
Exchange has satisfied this requirement.

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[[Page 71814]]

    A proposed rule change filed under Rule 19b-4(f)(6) \19\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\20\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay so that the proposal 
rule change may become operative immediately upon filing. In its 
request for a waiver of the 30-day operative delay, the Exchange 
represents that on Friday, November 28, 2014, in observance of the 
Thanksgiving holiday, trading in the underlying S&P 500 Index cash 
market will close at 12:00 p.m. Chicago time and trading in the S&P 500 
futures cash market will close at 12:15 p.m. Chicago time. The Exchange 
also represents that CME will conduct its EOM FV settlement procedures 
prior to 3:15 p.m. Chicago time on certain holidays and abbreviated 
trading days that fall on the final business day of the calendar 
month.\21\ The Exchange believes that consistency with CME's EOM FV 
settlement procedure is necessary to ensure fair and orderly markets, 
and therefore, requests that the Commission waive the 30-day operative 
delay to allow the Exchange to conduct special non-trading closing 
rotations for each series of SPX options in order to determine the 
theoretical ``fair value'' of such series as of the time of the close 
of trading in the underlying cash markets on Friday, November 28, 2014. 
The Commission notes that the Exchange failed to file this proposed 
rule change more than 30 days prior to the early close of the 
underlying S&P 500 Index cash and S&P 500 futures cash markets on 
Friday, November 28, 2014, and therefore, the Exchange needs the 
operative delay to be waived in order for its rules to allow it to 
conduct the non-trading closing rotation earlier than usual on November 
28, 2014. The Commission believes that waiver of the operative delay, 
in this instance, is consistent with investor protection and the public 
interest. In particular, waiver of the operative delay will enable the 
Exchange to meet investor expectations by customizing its rule to 
account for early closure during holiday periods like November 28, 
2014, when literal compliance with the current rule text would be 
illogical and contrary to the intent of the original rules as adopted. 
Accordingly, the Commission hereby waives the 30-day operative delay 
and designates the proposal operative upon filing.\22\
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    \19\ 17 CFR 240.19b-4(f)(6).
    \20\ 17 CFR 240.19b-4(f)(6)(iii).
    \21\ See supra, note 11 and accompanying text.
    \22\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    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 shall institute proceedings to 
determine whether the proposed rule should be approved or 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-2014-088 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-2014-088. 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 offices 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-2014-088, 
and should be submitted on or before December 24, 2014.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\23\
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    \23\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-28426 Filed 12-2-14; 8:45 am]
BILLING CODE 8011-01-P


