
[Federal Register Volume 81, Number 109 (Tuesday, June 7, 2016)]
[Notices]
[Pages 36641-36646]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-13317]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77962; File No. SR-CBOE-2016-047]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing of a Proposed Rule Change Relating to 
Senior Management Authority

June 1, 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 23, 2016, 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, II, and III below, which Items have been prepared by the 
Exchange. The Commission is publishing this notice to solicit comments 
on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange seeks to amend its Bylaws and Rules with respect to 
delegations of certain authorities to senior management. The text of 
the proposed rule change is provided below.
    (additions are italicized; deletions are [bracketed])
* * * * *

[SIXTH] SEVENTH AMENDED AND RESTATED

BYLAWS OF

CHICAGO BOARD OPTIONS EXCHANGE, INCORPORATED

* * * * *

ARTICLE VI Advisory Board

    Section 6.1. Advisory Board.
    The Board will establish an Advisory Board which shall advise the 
Board and [the Office of the Chairman] management regarding matters of 
interest to Trading Permit Holders. It shall consist of such number of 
members as set by the Board from time to time, including at least two 
members who are Trading Permit Holders or persons associated with 
Trading Permit Holders. The Chief Executive Officer, or his or her 
designee, shall be the Chairman of the Advisory Board. The members of 
the Advisory Board shall be recommended by the Nominating and 
Governance Committee for approval by the Board. There shall be a 
Trading Permit Holders Subcommittee of the Advisory Board consisting of 
all members of the Advisory Board who are Trading Permit Holders or 
persons associated with Trading Permit Holders, which shall act as the 
Representative Director Nominating Body if and to the extent required 
by these Bylaws.
* * * * *

[[Page 36642]]

Chicago Board Options Exchange, Incorporated

Rules

* * * * *

Rule 2.15. Divisions of Exchange

    The divisions of the Exchange shall include any such divisions as 
the [Chairman of the Board] Chief Executive Officer, with the approval 
of the Board, may establish. The [Chairman of the Board] Chief 
Executive Officer shall appoint a head of every division, provided that 
the [Chairman of the Board] Chief Executive Officer shall be the head 
of the Executive Division. Any official action taken by the [Chairman 
of the Board] Chief Executive Officer or the President shall, for 
purposes of the hearing and review provided for in Chapter XIX, be 
deemed to be action of the Executive Division.
* * * * *

Rule 4.10. Other Restrictions on Trading Permit Holders

    (a) In General. Whenever the [Chairman] Chief Executive Officer or 
President shall find, on the basis of a report of the Department of 
Compliance or otherwise, that a Trading Permit Holder has failed to 
perform his contracts or is insolvent or is in such financial or 
operational condition or is otherwise conducting his business in such a 
manner that he cannot be permitted to continue in business with safety 
to his customers or creditors or the Exchange, the [Chairman] Chief 
Executive Officer or the President may summarily suspend the Trading 
Permit Holder in accordance with Chapter XVI or may impose such 
conditions and restrictions upon his being a Trading Permit Holder as 
he considers reasonably necessary for the protection of the Exchange 
and the customers of such Trading Permit Holder.
    (b) Firms Clearing Market-Maker Trades.
* * * * *
    (2) A proposed SBT of a Trading Permit Holder as enumerated in 
subsection (b)(1)(i) through (iii) is subject to the prior approval of 
the [Exchange's Office of the Chairman (``OOC'')] Chief Executive 
Officer or President, when the Trading Permit Holder's Market-Maker 
clearance activities exceed, or would exceed as a result of the 
proposed SBT, any of the following parameters:
    (i) 15% of cleared Exchange Market-Maker contract volume for the 
most recent three (3) months;
    (ii) an average of 15% of the number of Exchange registered Market-
Makers as of each month and for the most recent three (3) months, or
    (iii) 25% of Market-Maker gross deductions (haircuts) defined by 
SEC Rule 15c3-1 (a)(6) or (c)(2)(x) carried by the Clearing Trading 
Permit Holder(s) in relation to the aggregate of such haircuts carried 
by all other Market-Maker clearing organizations for any month end 
within the most recent three (3) months.
    The Exchange shall notify in writing each Trading Permit Holder 
that clears Market-Maker trades within ten (10) business days from the 
close of each month of that Trading Permit Holder's proportion of the 
market making clearing business, whether or not such business exceeds 
the parameters described in (i), (ii), and (iii) of this subsection 
(b)(2). Trading Permit Holders subject to this subsection (b)(2) must 
provide thirty (30) calendar days notice of the proposed SBT, as 
enumerated in subsection (b)(1)(i) through (iii), to the President or 
his designee. The [OOC] Chief Executive Officer or President may 
disapprove a Trading Permit Holder's proposed SBT, or approve such SBT 
subject to certain conditions, within the thirty (30) day period. The 
[OOC] Chief Executive Officer or President may disapprove or condition 
a Trading Permit Holder's SBT within the thirty (30) day period if the 
[OOC] Chief Executive Officer or President determines that such SBT has 
the potential to threaten the financial or operational integrity of 
Exchange Market-Maker transactions.
    (3) In addition, at any time, the [OOC] Chief Executive Officer or 
President may impose additional financial and/or operational 
requirements on a Trading Permit Holder that clears Market-Maker trades 
when the [OOC] Chief Executive Officer or President determines that the 
Trading Permit Holder's continuance in business without such 
requirements has the potential to threaten the financial or operational 
integrity of Exchange Market-Maker transactions.
* * * * *
    (6) In considering a proposed SBT, the [OOC] Chief Executive 
Officer or President may consider, among other relevant matters, the 
following criteria:
* * * * *
    (7) In the event the [OOC] Chief Executive Officer or President 
determines, prior to the expiration of the thirty (30) day period set 
forth in subsection (1) hereof, that a proposed SBT may be approved 
without conditions, the [OOC] Chief Executive Officer or President 
shall promptly so advise the Trading Permit Holder. All [OOC] Chief 
Executive Officer or President decisions to disapprove or condition a 
proposed SBT pursuant to subsection (b)(2) hereof or to impose 
extraordinary requirements pursuant to subsection (b)(3) hereof shall 
be in writing, shall include a statement setting forth the grounds for 
the [OOC's] Chief Executive Officer or President's decision, and shall 
be served on the Trading Permit Holder. Notwithstanding any other 
provisions of the Rules of the Exchange, the Trading Permit Holder may 
appeal such decision directly to the Board of Directors of the Exchange 
by filing an application for review with the Secretary of the Exchange 
within fifteen (15) days of the date of service of the decision. The 
application for review shall be in the form prescribed by Rule 19.5(a), 
and the Board's review shall be conducted in the manner prescribed by 
Rule 19.5(b), except that the Trading Permit Holder may waive the 
making of a record. Review by the Board shall be the exclusive method 
of reviewing a decision of the [OOC] Chief Executive Officer or 
President pursuant to this subsection (b). The appeal to the Board of a 
decision of the [OOC] Chief Executive Officer or President shall not 
operate as a stay of that decision during the pendency of the appeal. 
The Exchange shall file notice with the SEC in accordance with the 
provisions of Section 19(d)(1) of the Securities Exchange Act of all 
final decisions to disapprove or condition a proposed SBT pursuant to 
subsection (b)(2) hereof, or to impose extraordinary requirements 
pursuant to subsection (b)(3) hereof.
* * * * *
    (9) The [OOC] Chief Executive Officer or President may exempt a 
Trading Permit Holder from the requirements of subsection (b)(1) 
hereof, either generally or in respect of specific types of 
transactions, based on the limited proportion of Market-Maker trades on 
the Exchange that are cleared by the Trading Permit Holder or on the 
limited importance that the clearing of Market-Maker trades bears to 
the total business of the Trading Permit Holder.
* * * * *

Rule 4.14. Liquidation of Positions

    Whenever the President or his designee shall find, on the basis of 
a report of the Department of Market Regulation or otherwise, that a 
person or group of persons acting in concert holds or controls, or is 
obligated in respect of, an aggregate position (whether long or short) 
in all option contracts of one or more classes or series dealt in on 
the Exchange in excess of the applicable position limit established 
pursuant to Rule 4.11, he or his designee may order

[[Page 36643]]

all Trading Permit Holders carrying a position in option contracts of 
such classes or series for such person or persons to liquidate such 
position as expeditiously as possible consistent with the maintenance 
of an orderly market. Whenever such an order is given by the President 
or his designee, no Trading Permit Holder shall accept any order to 
purchase, sell or exercise any option contract for the account of the 
person or persons named in the order, unless and until the President or 
his designee expressly approves such person or persons for options 
transactions.
* * * * *

Rule 6.17. Authority To Take Action Under Emergency Conditions

    The [Chairman of the Board] Chief Executive Officer, the President 
or such other person or persons as may be designated by the Board shall 
have the power to halt or suspend trading in some or all securities 
traded on the Exchange, to close some or all Exchange facilities, to 
determine the duration of any such halt, suspension or closing, to take 
one or more of the actions permitted to be taken by any person or body 
of the Exchange under Exchange rules, or to take any other action 
deemed to be necessary or appropriate for the maintenance of a fair and 
orderly market or the protection of investors, or otherwise in the 
public interest, due to emergency conditions or extraordinary 
circumstances, such as (1) actual or threatened physical danger, severe 
climatic conditions, natural disaster, civil unrest, terrorism, acts of 
war, or loss or interruption of facilities utilized by the Exchange, or 
(2) a request by a governmental agency or official, or (3) a period of 
mourning or recognition for a person or event. The person taking the 
action shall notify the Board of actions taken pursuant to this Rule, 
except for a period of mourning or recognition for a person or event, 
as soon thereafter as is feasible.
* * * * *

Rule 6.20. Admission to and Conduct on the Trading Floor; Trading 
Permit Holder Education

    (a) Admission to Trading Floor. Unless otherwise provided in the 
Rules, no one but a Trading Permit Holder, an Order Book Official 
designated by the Exchange pursuant to Rule 7.3, or PAR Official 
designated by the Exchange pursuant to Rule 7.12 shall make any 
transaction on the floor of the Exchange. Admission to the floor shall 
be limited to Trading Permit Holders, employees of the Exchange, clerks 
employed by Trading Permit Holders and registered with the Exchange, 
service personnel and Exchange visitors authorized admission to the 
floor pursuant to Exchange policy, and such other persons permitted 
admission to the floor by the President of the Exchange or his 
designee.
* * * * *

Rule 10.2. Contracts of Suspended Trading Permit Holders

    When a Trading Permit Holder, other than a Clearing Trading Permit 
Holder, is suspended pursuant to Chapter XVI of these Rules, all open 
short positions of the suspended Trading Permit Holder in option 
contracts and all open positions resulting from exercise of option 
contracts, other than positions that are secured in full by a specific 
deposit or escrow deposit in accordance with the Rules of the Clearing 
Corporation, shall be closed without unnecessary delay by all TPH 
organizations carrying such positions for the account of the suspended 
Trading Permit Holder; provided that the [Chairman] Chief Executive 
Officer or President may cause the foregoing requirement to be 
temporarily waived for such period as he may determine if he shall deem 
such temporary waiver to be in the interest of the public or the other 
Trading Permit Holder. No temporary waiver hereunder by the [Chairman] 
Chief Executive Officer or President shall relieve the suspended 
Trading Permit Holder of its obligations or of damages, nor shall it 
waive the close out requirements of any other Rule. When a Clearing 
Trading Permit Holder is suspended pursuant to Chapter XVI of these 
Rules, the positions of such Clearing Trading Permit Holder shall be 
closed out in accordance with the Rules of the Clearing Corporation.
* * * * *

Rule 16.1. Imposition of Suspension

    A Trading Permit Holder or person associated with a Trading Permit 
Holder who has been and is expelled or suspended from any self-
regulatory organization or barred or suspended from being associated 
with a Trading Permit Holder of any self-regulatory organization, or a 
Trading Permit Holder which is in such financial or operating 
difficulty that the [Chairman of the Board] Chief Executive Officer or 
the President determines that the Trading Permit Holder cannot be 
permitted to continue to do business as a Trading Permit Holder with 
safety to investors, creditors, other Trading Permit Holders, or the 
Exchange, may be summarily suspended by the [Chairman of the Board] 
Chief Executive Officer or the President. In addition, the [Chairman of 
the Board] Chief Executive Officer or the President may limit or 
prohibit any person with respect to access to services offered by the 
Exchange if any of the criteria or the foregoing sentence is applicable 
to such person or, in the case of a person who is not a Trading Permit 
Holder, if the [Chairman of the Board] Chief Executive Officer or the 
President determines that such person does not meet the qualification 
requirements or other prerequisites for such access with safety to 
investors, creditors, Trading Permit Holders, or the Exchange. In the 
event a determination is made to take summary action, as described 
above, notice thereof will be sent to the Securities and Exchange 
Commission. Any person aggrieved by any summary action taken under this 
Rule shall be promptly afforded an opportunity for a hearing by the 
Exchange in accordance with the provisions of Chapter XIX. In addition, 
the Securities and Exchange Commission may on its own motion order or 
such a person may apply to the Securities and Exchange Commission for a 
stay of such summary action pending the results of a hearing pursuant 
to Chapter XIX.
* * * * *

Rule 18.31. Awards

* * * * *
    (g) All monetary awards shall be paid within thirty (30) days of 
receipt unless a motion to vacate has been filed with a court of 
competent jurisdiction. If such a motion has been filed, either party 
may request the [Office of the Chairman] Chief Executive Officer or 
President to direct that the award be paid to an escrow account 
maintained by the Exchange. Such request shall be filed with the 
Secretary of the Exchange within thirty-five days of receipt of such 
award.
* * * * *
    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

[[Page 36644]]

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
    The Exchange proposes to amend its Bylaws and Rules as it relates 
to references to senior management. The Exchange notes that 
historically, the CBOE Chairman of the Board also held the title of 
Chief Executive Officer (``CEO''). Currently, however, the roles of 
Chairman of the Board, CEO, and President are now occupied by three 
different individuals. As such, the Exchange has conducted a review of 
its rules relating to the authorities delegated to senior management 
and seeks to make conforming changes to its rules to more accurately 
reflect its senior management structure.
    First, the Exchange proposes to amend Rule 2.15 (Divisions of 
Exchange), Rule 4.10 (Other Restrictions on Trading Permit Holders), 
Rule 6.17 (Authority to Take Action Under Emergency Conditions), Rule 
10.2 (Contracts of Suspended Trading Permit Holders) and Rule 16.1 
(Imposition of Suspension) to eliminate references to ``Chairman of the 
Board'' and replace those references with ``Chief Executive Officer.'' 
By way of background, Rule 2.15 currently provides that the Chairman of 
the Board, with the approval of the Board, may establish divisions of 
the Exchange and shall appoint a head of every division, provided that 
the Chairman of the Board is to be the head of the Executive Division. 
Additionally, Rule 2.15 provides that any official action taken by the 
Chairman of the Board or the President shall, for purposes of the 
hearing and review provided for in Chapter XIX, be deemed to be action 
of the Executive Division. Rule 4.10 currently provides that the 
Chairman of the Board or President may summarily suspend a Trading 
Permit Holder (``TPH'') or impose conditions and restrictions upon a 
TPH being a TPH if the Chairman of the Board or President considers it 
reasonably necessary for the protection of the Exchange and the 
customers of the TPH based upon certain findings made by the Department 
of Compliance. Rule 6.17 currently provides that the Chairman of the 
Board, the President or such other person or persons as may be 
designated by the Board shall have the power to halt or suspend trading 
in some or all securities traded on the Exchange, to close some or all 
Exchange facilities, to determine the duration of any such halt, 
suspension or closing, to take one or more of the actions permitted to 
be taken by any person or body of the Exchange under Exchange rules, or 
to take any other action deemed to be necessary or appropriate for the 
maintenance of a fair and orderly market or the protection of 
investors, or otherwise in the public interest, due to emergency 
conditions or extraordinary circumstances. Rule 10.2 provides the 
Chairman of the Board or President may waive the requirement that a TPH 
Organization that carries short positions for the account of a TPH that 
is subject to a summary suspension close those positions. Finally Rule 
16.1 provides that the Chairman of the Board or President may summarily 
suspend a TPH and limit or prohibit any person with respect to access 
to services offered by the Exchange.
    The Exchange notes that the CEO's responsibility is that of general 
charge and supervision of the business of the Corporation,\3\ whereas 
the Chairman of the Board's responsibility is that of the presiding 
officer at all meetings of the Board and stockholders, as well as of 
other powers and duties as are delegated to him or her by the Board.\4\ 
The Exchange believes the responsibilities currently delegated to the 
Chairman of the Board under Rules 2.15, 4.10, 6.17, 10.2 and 16.1 
pertain to the general charge and supervision of the Exchange's 
business and therefor fall within the scope of the CEO's stated 
responsibilities, instead of the Chairman's. Accordingly, the Exchange 
proposes to eliminate the references to ``Chairman of the Board'' in 
the abovementioned [sic] rules and replace those references with 
``Chief Executive Officer.''
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    \3\ See Section 5.2 of the Bylaws.
    \4\ See Section 3.6 of the Bylaws.
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    Next, the Exchange proposes to eliminate the terms ``Office of the 
Chairman'' (``OOC'') [sic] in Rule 4.10 (Other Restrictions on Trading 
Permit Holders) and Rule 18.31 (Awards) and replace these references 
with ``Chief Executive Officer or President.'' Under Rule 4.10, the OOC 
(i.e., Office of the Chairman) is delegated certain authority relating 
to proposed Significant Business Transactions (``SBTs'') including, 
among other things, approving or disapproving a SBT. Under Rule 18.31, 
a party to an Arbitration may request the OOC to direct that an award 
be paid into an escrow account maintained by the Exchange in the event 
a motion to vacate has been filed. The Exchange notes that 
historically, the OOC was considered to be the management committee of 
the Exchange and consisted of the Chairman (who at the time was also 
the CEO), the Vice-Chairman (which role no longer exists) and the 
President. Given the Exchange's current management structure, the 
Exchange believes the term is antiquated and seeks to eliminate the 
reference to it in its rules. In its place, the Exchange seeks to 
provide that the powers and responsibilities delegated to the OOC as a 
whole, now be delegated to either the CEO or President. Although the 
Chairman will no longer possess the authorities delineated in Rules 
4.10 and 18.31, the Exchange believes those authorities fall more 
squarely within the scope of the CEO's or President's roles and 
responsibilities.\5\ The Exchange believes the proposed rule change 
will also provide clarity as to who going forward has certain authority 
under the rules.
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    \5\ See Sections 5.2 and 5.3 of the Bylaws, respectively.
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    Similarly, the Exchange proposes to eliminate the reference to the 
Office of the Chairman in Section 6.1 (Advisory Board) of the 
Exchange's Bylaws. Section 6.1 currently provides that the Board will 
establish an Advisory Board which shall advise the Board and the Office 
of the Chairman regarding matters of interest to TPHs. The Exchange 
notes that the Advisory Board's Charter however, provides that the 
Advisory board shall advise the Board and ``management'' regarding 
matters of interest to TPHs. As the term Office of the Chairman is 
outdated, as described above, and in order to conform the language in 
Section 6.1 to the Advisory Board Charter, the Exchange proposes to 
replace the reference to ``Office of the Chairman'' with 
``management.'' The Exchange also notes that the proposed change would 
alleviate confusion and maintain consistency between the Exchange's 
governance documents. Additionally, the title of the Bylaws would be 
changed to Seventh Amended and Restated Bylaws of CBOE.
    The Exchange lastly proposes to amend Rules 4.14 (Liquidation of 
Positions) and 6.20 (Admission to and Conduct on the Trading Floor; 
Trading Permit Holder Education) to provide that in addition to the 
President, a designee of the President may act in accordance with the 
authority delegated by the Rule. Rule 4.14 provides authority to the 
President to order the liquidation of positions and Rule 6.20

[[Page 36645]]

allows the President to permit admission to the floor of persons other 
than those expressly allowed by rule. Providing that such authorities 
may also be delegated to a designee provides the President and the 
Exchange additional flexibility (e.g., if the President were 
unavailable, the authorities provided by rule could still be carried 
out, need be, by an alternative Exchange official). The proposed change 
is consistent with other Exchange rules and policies that permit the 
President to delegate certain authority upon a designee.\6\
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    \6\ See e.g., CBOE Rules 4.11, 4.12, 4.16.
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2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Securities Exchange Act of 1934 (the ``Act'') and the rules and 
regulations thereunder applicable to the Exchange and, in particular, 
the requirements of Section 6(b) of the Act.\7\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \8\ 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.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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    In particular, the proposed rule changes will more accurately 
reflect the current management structure and ensure that rules relating 
to senior management authority are clear and transparent, which reduces 
confusion, thereby removing impediments to, and perfecting the 
mechanism for a free and open market and a national market system, and, 
in general, protecting investors and the public interest of market 
participants.
    More specifically, the Exchange believes the authorities being 
transferred from the Chairman of the Board to the CEO are appropriate 
as they relate to the general charge and supervision of the Exchange 
business, which responsibility is currently delegated to the CEO.
    The Exchange believes the proposal to transfer the powers and 
responsibilities currently delegated to the Office of the Chairman as a 
whole to the CEO or President is appropriate as it is more aligned with 
the scope of the CEO's and President's roles than the Chairman's. The 
Exchange believes it also reduces confusion as the term ``Office of the 
Chairman'' (and ``OOC'') incorporate a no-longer valid role (``Vice-
Chairman'') and is not widely used anymore. The proposed change also 
clarifies which officers are being referenced, which is not currently 
clear or explicit. Additionally, the Exchange notes that while 
delegation of authority is being modified, the substantive practices of 
the Exchange will remain the same. Similarly, the Exchange believes the 
proposed change to Section 6.1 of CBOE's Bylaws also eliminates an 
outdated and potentially confusing term (i.e., Office of the Chairman) 
and also conforms the language to the CBOE Advisory Board Charter.
    Lastly, the Exchange believes allowing the President to delegate 
the authorities under Rules 4.14 and 6.20 upon a designee protects 
investors and [sic] public interest by providing additional flexibility 
to the President and Exchange (e.g., if the President were unavailable, 
the authorities provided by rule could still be carried out, need be, 
by an alternative Exchange official). Additionally, the proposed change 
is consistent with other Exchange rules and policies that permit the 
President to delegate certain authority upon a designee.\9\
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    \9\ See e.g., CBOE Rules 4.11, 4.12, 4.16.
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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 Exchange does not believe 
that the proposed rule change imposes any burden on intramarket 
competition because it applies to all TPHs and is not designed to 
address any competitive issue. Additionally, as noted above, while 
certain delegation of authority is being modified, the substantive 
practices of the Exchange will remain the same. CBOE does not believe 
that the proposed rule change will impose any burden on intermarket 
competition that is not necessary or appropriate in furtherance of the 
purposes of the Act because the proposed rule change merely relates to 
the delegation of authorities to senior management and only affects 
CBOE.

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

    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-2016-047 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-2016-047. 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

[[Page 36646]]

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-2016-047, and should be submitted on or before June 
28, 2016.
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    \10\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
Brent J. Fields,
Secretary.
[FR Doc. 2016-13317 Filed 6-6-16; 8:45 am]
 BILLING CODE 8011-01-P


