
[Federal Register Volume 81, Number 96 (Wednesday, May 18, 2016)]
[Notices]
[Pages 31279-31283]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-11652]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77823; File No. SR-CBOE-2016-034]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change Relating to Split-Price Priority

May 12, 2016.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on May 6, 2016, Chicago Board Options Exchange, Incorporated (the 
``Exchange'' or ``CBOE'') filed with the Securities and Exchange 
Commission (``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 Exchange proposes to amend its rules related to split-price 
priority. The text of the proposed rule change is provided below.

(additions are italicized; deletions are [bracketed])
* * * * *
Chicago Board Options Exchange, Incorporated Rules
* * * * *
Rule 1.1. Definitions
    When used in these Rules, unless the context otherwise requires:
    (a)-(eee) No change.
Voluntary Professional
    (fff) The term ``Voluntary Professional'' means any person or 
entity that is not a broker or dealer in securities that elects, in 
writing, to be treated in the same manner as a broker or dealer in 
securities for purposes of Rules 6.2A, 6.2B, 6.8C, 6.9, 6.13A, 6.13B, 
6.25, 6.45, 6.45A (except for Interpretation and Policy .02), 6.45B 
(except for Interpretation and Policy .02), 6.47, 6.53C(c)(ii), 
6.53C(d)(v), subparagraphs (b) and (c) under Interpretation and Policy 
.06 to Rule 6.53C, 6.74 (except Voluntary Professional orders may be 
considered public customer orders subject to facilitation under 
paragraphs (b) and (d)), 6.74A, 6.74B, 8.13, 8.15(d), 8.87, 24.19, 
43.1, 44.4, 44.14, and for cancellation fee treatment. The Voluntary 
Professional designation is not available in Hybrid 3.0 classes.
Professional
    (ggg) The term ``Professional'' means any person or entity that (i) 
is not a broker or dealer in securities, and (ii) places more than 390 
orders in listed options per day on average during a calendar month for 
its own beneficial account(s). A Professional will be treated in the 
same manner as a broker or dealer in securities for purposes of Rules 
6.2A, 6.2B, 6.8C, 6.9, 6.13A, 6.13B, 6.25, 6.45, 6.45A (except for 
Interpretation and Policy .02), 6.45B (except for Interpretation and 
Policy .02), 6.47, 6.53C(c)(ii), 6.53C(d)(v), subparagraphs (b) and (c) 
under Interpretation and Policy .06 to Rule 6.53C, 6.74 (except 
Professional orders may be considered public customer orders subject to 
facilitation under paragraphs (b) and (d)), 6.74A, 6.74B, 8.13, 
8.15(d), 8.87, 24.19, 43.1, 44.4, 44.14. The Professional designation 
is not available in Hybrid 3.0 classes. All Professional orders shall 
be marked with the appropriate origin code as determined by the 
Exchange.

. . . Interpretations and Policies:

.01 No change.

(hhh)--(sss) No change.

. . . Interpretations and Policies:

.01--.05 No change.
* * * * *
Rule 6.47. Priority on Split-Price Transactions Occurring in Open 
Outcry
    (a) [Purchase or sale]Split-Price [p]Priority. If an order or offer 
(bid) for any number of contracts of a series is represented to the 
crowd, a Trading Permit Holder that buys [purchases] (sells) one or 
more [option ]contracts of that order or offer (bid)[a particular 
series] at one[a particular] price[ or prices, he shall, at the next 
lower (higher) price at which a Trading Permit Holder other than the 
Order Book Official is bidding (offering),] will have priority [in] 
over all other orders and quotes, except public customer orders resting 
in the book, to buy [purchasing ](sell[ing]) up to the [equivalent]same 
number of [option] contracts of those remaining from the same order or 
offer (bid)[series that he purchased (sold)] at the next lower (higher[ 
(lower]) price[ or prices, but only if his bid (offer) is made promptly 
and the purchase (sale) so effected represents the opposite side of a 
transaction with the same order or offer (bid) as the earlier purchase 
or purchases (sale or sales). This paragraph only applies to 
transactions effected in open outcry].
    (b) [Purchase or sale]Split-Price [p]Priority for O[o]rders or 
Offers (Bids) of 100 or More [c]Contracts[ or more]. If an order or 
offer (bid) of 100 or more contracts of a series is represented to the 
crowd, a Trading Permit Holder that buys[purchases] (sells) 50[fifty] 
or more of the [option ]contracts of that order or offer (bid)[a 
particular series] at one[a particular] price [or prices, he shall, at 
the next lower (higher) price]will have priority [in]over all other 
orders and quotes to buy [purchasing ](sell[ing]) up to the [equivalent 
]same number of [option ]contracts of those remaining from the same 
[series that he purchased (sold)]order or offer (bid) at the next lower 
(higher[ (lower]) price[ or prices, but only if his bid (offer) is made 
promptly and the purchase (sale) so effected represents the opposite 
side of a transaction with the same order or offer (bid) as the earlier 
purchase or purchases (sale or sales)]. The Exchange may increase the 
[``]minimum qualifying [order ]size['' above] of 100 contracts on a 
class-by-class basis[.], [Announcements regarding]which changes [to the 
minimum qualifying order size shall be made]the Exchange will announce 
via Regulatory Circular.[ This paragraph only applies to transactions 
effected in open outcry.]
    (c) Two or [m]More Trading Permit Holders [e]Entitled to 
[p]Priority. If the bids or offers of two or more Trading Permit 
Holders are both entitled to split-price priority[ in accordance with 
paragraph (a) or paragraph (b)], it [shall]will be afforded [them 
insofar as]to the extent practicable[,] on a pro-rata basis.
    (d) Conditions. Split-price priority is subject to the following:
    (i) The priority is available for open outcry transactions only and 
does not apply to complex orders.

[[Page 31280]]

    (ii) The Trading Permit Holder must make its bid (offer) at the 
next lower (higher) price for the second (or later) transaction at the 
same time as the first bid (offer) or promptly following execution of 
the first (or earlier) transaction.
    (iii) The second (or later) purchase (sale) must represent the 
opposite side of a transaction with the same order or offer (bid) as 
the first (or earlier) purchase (sale).
    (e) Minimum Increment Width with Public Customer Orders Resting in 
the Book. If the width of the quote for a series is the minimum 
increment for that series, and both the bid and offer represent public 
customer orders resting in the book, split-price priority pursuant to 
this rule is not available to Trading Permit Holders until the public 
customer order(s) resting in the book on either side of the market 
trades.

. . . Interpretations and Policies:
.01-.02 No change.
* * * * *
    The text of the proposed rule change is also available on the 
Exchange's Web site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the 
Secretary, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Rule 6.47 establishes priority principles for split-price 
transactions occurring in open outcry. Generally, a Trading Permit 
Holder that purchases (sells) one or more contracts of a series at a 
particular price will have priority over other Trading Permit Holders, 
other than those representing orders in the limit order book, in 
purchasing (selling) up to an equivalent number of contracts of the 
same order at the next lower (higher) price. For orders of 100 or more 
contracts, Trading Permit Holders that trade 50 or more contracts of 
such orders at a particular price will have this priority over all 
other Trading Permit Holders at the next best price, including those 
representing orders in the limit order book. This priority is awarded 
for split-price transactions that occur in open outcry only.
Minimum Increment Width Series
    The Exchange proposes to add Rule 6.47(e) to codify an exception to 
the availability of split-price priority when the width of a series' 
quote is at the minimum increment width. If the width of the quote for 
a series is the minimum increment for that series (e.g., $1.00-$1.05 
for a series with a minimum increment of $0.05, $1.00-$1.01 for a 
series with a minimum increment of $0.01), and both the bid and offer 
represent public customer orders resting in the book, split-price 
priority pursuant to this rule is not available to Trading Permit 
Holders until the public customer order(s) resting in the book on 
either side of the market trades.\3\ This exception is consistent with 
the Exchange's allocation and priority rules, which provide for public 
customer orders to have first priority at the best price in open outcry 
(subject to applicable exceptions).\4\
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    \3\ This exception is currently set forth in Regulatory Circular 
RG07-076.
    \4\ See Rules 6.45A(b)(i)(A) and 6.45B(b)(i)(A).
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    For example, assume the market for a series with a minimum 
increment of $0.05 is $1.00-$1.05 (with the $1.00 bid and $1.05 offer 
each representing a customer order for 25 contracts), and a Floor 
Broker receives an order from a customer that would like to buy 100 
contracts at a price or prices no higher than $1.05. The Floor Broker 
attempts to execute the order in open outcry at a price better than the 
displayed offer of $1.05. Assume a Market-Maker is willing to sell 50 
contracts at $1.00 and 50 contracts at $1.05. The ``first transaction'' 
of this split-price transaction would be 50 contracts at $1.00. 
However, there is customer interest resting at $1.00, which would have 
time priority to trade at $1.00.\5\ Therefore, in this situation, if 
the Market-Maker wants to receive split-price priority at $1.05, the 
Market-Maker would not be able to execute the first part of a split-
price transaction with the order being represented by the Floor Broker 
until after the resting customer order at $1.00 trades.
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    \5\ See id.
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    The proposed rule change provides that ``either side of the 
market'' must trade for split-price priority to become available. The 
rule provides that a Trading Permit Holder is eligible to receive 
split-price priority, which could include the Trading Permit Holder 
representing the order or offer (quote). Thus, the proposed rule change 
allows for the Trading Permit Holder on either side of a transaction to 
be eligible for split-price priority. Assume the market for a series 
with a minimum increment of $0.05 is $1.00-$1.05 (with the $1.00 bid 
and $1.05 offer each representing a customer order for 25 contracts), 
and a Floor Broker receives an order from a customer that would like to 
buy 100 contracts at a price or prices no higher than $1.05. After 
receiving no interest from the crowd to sell 100 contracts at $1.00, 
the Floor Broker represents to the crowd that it would like to buy 50 
contracts at $1.00 and 50 contracts at $1.05. Assume a Market-Maker is 
willing to sell 50 contracts at $1.00 and 50 contracts at $1.05. In a 
separate transaction, the public customer order at $1.05 trades against 
an order of another market participant. The ``first transaction'' of 
this split-price transaction would be 50 contracts at $1.05 (at which 
price there is no more resting public customer offer) and the ``second 
transaction'' of this split-price transaction would be 50 contracts at 
$1.00, the next best price for the Floor Broker. In this situation, the 
Floor Broker is eligible to receive split-price priority at $1.00 over 
the resting customer interest at $1.00 and achieve a better net price 
execution of $1.025 for its customer order.
    Other than the limited exception to customer priority afforded in 
Rule 6.47(b) (and as elsewhere set forth in the rules),\6\ public 
customer orders continue to have first priority and other allocation 
and priority rules remain unchanged. The Exchange believes that 
specifying the unavailability of split-price priority in this specific 
situation will further clarify the applicability of the priority in the 
rules.
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    \6\ For example, the rules provide for a complex order priority 
exception (see Rules 6.45(e), 6.45A(b)(ii) and 6.45B(b)(ii).
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Multiple Prices
    Rule 6.47(a) and (b) currently provides that split-price priority 
may apply to executions of an order at multiple prices. The proposed 
rule change removes the references to multiple prices from those 
paragraphs. The Exchange believes the priority should only apply at the 
next price level rather than multiple price levels.

[[Page 31281]]

Nonsubstantive Changes
    The Exchange proposes to make the following nonsubstantive changes 
to Rule 6.47(a), (b) and (c):
     The proposed rule change amends the headings of and adds 
introductory language to paragraphs (a) and (b).
     The proposed rule change revises the language in 
paragraphs (a) and (b) to simplify the description of when the split-
price priority applies to improve readability. The priority will still 
apply in the same manner--a Trading Permit Holder may buy (sell) one or 
more contracts for one series of an order or offer (bid) (the ``first 
transaction'') \7\ and receive priority over all other orders and 
quotes (except public customer orders resting in the book with respect 
to orders or offers (bids) of fewer than 100 contracts or orders or 
offers (bids) with which Trading Permit Holders do not purchase (sell) 
at least 50 contracts at the better price) to buy (sell) up to the same 
number of contracts of those remaining from the same order or offer 
(bid) at the next best price (the ``second transaction''). This second 
transaction must still occur with the same order or offer (quote) as 
the first transaction. For example, assume the market is $1.00-$1.20 
with size of 300 contracts, and a Floor Broker receives an order from a 
customer that would like to buy 500 contracts at a price or prices no 
higher than $1.20. The Floor Broker attempts to execute the order in 
open outcry at a price better than the displayed offer of $1.20. Now 
assume a Market-Maker in the crowd is willing to sell 250 contracts at 
$1.15 and 250 contracts at $1.20. The Market-Maker could offer $1.15 
for 250 contracts and then, by virtue of the split-price priority rule, 
have priority for the 250 contract balance over other crowd members at 
$1.20. The resulting net execution price for the customer would be 
$1.175, which is better than the displayed market of $1.20 and thus a 
better fill for the customer.\8\
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    \7\ The Exchange notes that the current rule contemplates that 
an order or quote can represent the series with which a Trading 
Permit Holder may transact to receive split-price priority. The 
current rule uses the phrase ``contracts of a particular series,'' 
which includes both orders and quotes, and indicates that the 
purchase (sale) effected represents the opposite side of a 
transaction with the ``same order or offer (bid)'' as the earlier 
purchase (sale), which again contemplates multiple transactions with 
a single originating order or quote. The proposed rule change makes 
clear throughout that an order or quote can comprise the originating 
contracts with which the crowd can trade to obtain split-price 
priority.
    \8\ While the net price result will be $1.175, two separate 
trades at $1.15 and $1.20 would be reported.
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     Paragraph (a) currently provides that the Trading Permit 
Holder must yield to the Order Book Official. The proposed rule change 
amends the term Order Book Official to public customer. Other priority 
rules refer to ``public customer'' priority,\9\ and Rule 6.47(a) 
provides priority in the circumstances described except over public 
customer orders.\10\ Order Book Officials only present to the crowd 
public customer orders that rest in the book, so the priority afforded 
pursuant to paragraph (a) must still yield to the same public customer 
orders in the same manner. This change is merely an update to 
terminology, as public customer orders may be presented to the floor 
other than by Order Book Officials.\11\ The Exchange believes it is 
appropriate to use the same terminology that is used in other priority 
rules to ensure consistency throughout the Exchange's rules and ensure 
that all public customer orders receive priority when applicable.
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    \9\ See, e.g., Rules 6.45A(b)(i)(A) and 6.45B(b)(i)(A).
    \10\ The proposed rule change amends Rule 1.1(fff) and (ggg) to 
add Rule 6.47 to the list of rules for which Voluntary Professionals 
and Professionals, respectively, will be treated in the same manner 
as a broker or dealer. Professionals and Voluntary Professionals do 
not receive priority as public customers do pursuant to CBOE's 
allocation rules, including Rules 6.45A(b) and 6.45B(b) regarding 
open outcry trading. Under those rules, Professionals and Voluntary 
Professionals would not receive priority, including if public 
customer orders must be cleared prior to a Trading Permit Holder 
availing itself of split-price priority. The proposed rule change 
explicitly states this in the Professional and Voluntary 
Professional definitions.
    \11\ Additionally, the Exchange no longer has Order Book 
Officials.
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     Paragraphs (a) and (b) currently state that a Trading 
Permit Holder's bid (offer) at the next best price must be made 
promptly following the purchase (sale) at the initial price. The 
proposed rule change deletes that language from those paragraphs and 
adds it to new paragraph (d) to include with other conditions to which 
split-price priority is subject. In addition, the proposed rule change 
adds that the second bid (offer) may also be made at the same time as 
the first bid (offer). If a Trading Permit Holder makes the first bid 
(offer) with the intent of taking advantage of the split-price 
priority, then it may be more efficient for the Trading Permit Holder 
to announce both bids (offers) at the same time than to wait for the 
first execution.\12\ The Trading Permit Holder is still not guaranteed 
execution at the second price; another Trading Permit Holder may still 
bid (offer) to trade with part of the order or offer (quote) at the 
better first price.
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    \12\ For example, a Floor Broker may represent an order to sell 
at ``$1.15 and $1.20 splits,'' indicating a desire to buy half of 
the order at $1.15 and the other half at $1.20 with priority at 
$1.20.
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     Paragraphs (a) and (b) currently state that they apply 
only to open outcry transactions. The proposed rule change deletes that 
language from those paragraphs and adds it to new paragraph (d) to 
include with other conditions to which split-price priority is subject. 
Paragraphs (a) and (b) also state that split-price priority applies to 
transactions in a particular series (i.e. simple orders, but not 
complex orders). The proposed rule change explicitly states the 
priority does not apply to complex orders in new paragraph (d).
     Paragraphs (a) and (b) currently state that the Trading 
Permit Holder eligible for split-price priority must make its bid 
(offer) promptly and the purchase (sale) represents the opposite side 
of a transaction with the same order or offer (bid). The proposed rule 
change uses this phrase throughout the rule for consistency. The 
proposed rule change also deletes the provision that requires the 
subsequent transaction must be with the same order or offer (bid) from 
paragraphs (a) and (b) and adds it to new paragraph (d).
     The proposed rule change makes other administrative and 
clerical changes to paragraphs (a), (b) and (c) (e.g., capitalizing 
words in headings, changing the word purchase to buy, deletion of word 
option before contract since only option contracts execute on the 
Exchange). The Exchange believes these changes have no impact on the 
split-price priority afforded by the rule.
     The proposed rule change refers to the priority afforded 
by Rule 6.47(a) and (b) as ``split-price priority'' to further simplify 
the rule text.
    The Exchange believes these nonsubstantive changes more clearly 
describe the applicability of the split-price priority and better 
reflect the use of split-price priority on the trading floor.
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 
facilitating transactions in securities, to remove impediments to

[[Page 31282]]

and perfect the mechanism of a free and open market and a national 
market system, and, in general, to protect investors and the public 
interest. Additionally, the Exchange believes the proposed rule change 
is consistent with the Section 6(b)(5) \15\ requirement that the rules 
of an exchange not be designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers.
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    \13\ 15 U.S.C. 78f(b).
    \14\ 15 U.S.C. 78f(b)(5).
    \15\ Id.
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    In particular, the Exchange believes the proposed rule change is 
consistent with the purpose of the existing split-price priority, which 
is to induce Trading Permit Holders to bid (offer) at better prices for 
an order or offer (bid) that may require execution at multiple prices 
(such as larger orders), which will result in a better average price 
for the originating Trading Permit Holder (or its customer).
    The proposed rule change to codify the split-price priority 
exception when the width of a series' quote is the minimum increment 
for that series and each side of the quote represents public customer 
interest will benefit investors by including all information regarding 
when split-price priority is available in a single rule. This proposed 
rule change is consistent with the Exchange's priority and allocation 
rules. The Exchange believes the proposed rule change to codify this 
exception, as well as the proposed rule change to eliminate split-price 
priority at multiple price levels, balances the availability of split-
price priority, which benefits investors by providing opportunities for 
price improvement, with customer priority, which promotes just and 
equitable principles of trade by providing public customers access to 
CBOE's market.
    The proposed rule change to amend the definitions of Voluntary 
Professional and Professional clarify that, for purposes of Rule 6.47, 
as is the case for all other allocation rules, those participants will 
be treated as broker-dealers rather than public customers for 
allocation purposes. The same result occurs under current allocation 
rules, as those rules provide with respect to open outcry priority that 
public customers in the book receive priority (and the definitions of 
Voluntary Professional and Professional provide that those participants 
are treated as broker-dealers for purposes of those rules); this merely 
clarifies it in the Rules.
    The Exchange believes the nonsubstantive changes to Rule 6.47 will 
benefit investors by describing the applicability of split-price 
priority more simply and clearly. The revised language is also more 
consistent with other Exchange rules regarding priority.

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

    CBOE does not believe that the proposed rule change will impose any 
burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act. The priority afforded by Rules 
6.47(a) and (b) continues to be available to all Trading Permit Holders 
who trade open outcry, of which all Trading Permit Holders that engage 
in open outcry trading may avail themselves. Rules often apply to open 
outcry trading only because of the different nature of the open outcry 
market versus the electronic market (such as allocation rules). The 
proposed rule change may result in better pricing for customer orders 
submitted to the trading floor, particularly those that may require 
execution at multiple prices, and market participants may submit orders 
to CBOE to take advantage of these better prices. CBOE believes that 
the proposed rule change will continue to encourage Trading Permit 
Holders on CBOE's trading floor to bid or offer better prices, thus 
creating more opportunities for price improvement, which ultimately 
enhances competition. The nonsubstantive changes and codification of 
the applicability of split-price priority in a minimum width market do 
not impact the manner in which split-price priority applies and thus 
have no effect on competition.

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 Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \16\ and Rule 19b-4(f)(6) thereunder.\17\ 
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 and Rule 19b-
4(f)(6)(iii) thereunder.
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    \16\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \17\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires a self-regulatory organization to give the Commission 
written notice of its 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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    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.

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-2016-034 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-CBOE-2016-034. 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.,

[[Page 31283]]

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-2016-034, and should be 
submitted on or before June 8, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-11652 Filed 5-17-16; 8:45 am]
 BILLING CODE 8011-01-P


