[Federal Register Volume 84, Number 177 (Thursday, September 12, 2019)]
[Notices]
[Pages 48201-48202]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-19706]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-86892; File No. SR-CBOE-2019-054]


Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change Relating 
to the Dissemination of End-of-Day Indicative Values Via the Options 
Price Reporting Authority

 September 6, 2019.
    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 August 29, 2019, Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe 
Options'') 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 
Exchange filed the proposal as a ``non-controversial'' proposed rule 
change pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 
19b-4(f)(6) thereunder.\4\ 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes 
that the dissemination of end-of-day indicative values via the Options 
Price Reporting Authority (``OPRA'') will not be discontinued pursuant 
to SR-CBOE-2019-046.
    The text of the proposed rule change is also available on the 
Exchange's website (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
    On August 12, 2019, the Exchange filed a rule filing, SR-CBOE-2019-
046, which, amended Exchange Rules in connection with end-of-month 
(``EOM'') and end-of-day (``EOD'') indicative values.\5\ Pursuant to 
SR-CBOE-2019-046, which will be effective on October 7, 2019, the 
Exchange stated that it would discontinue the dissemination of 
indicative values via OPRA. In addition to this, the proposed change 
under SR-CBOE-2019-046 provides that the Exchange will make indicative 
values publicly available, e.g., on its website. The Exchange, however, 
has determined that it will continue the dissemination of indicative 
values via OPRA while also making such values publicly available. The 
Exchange notes that this will not impact the manner in which the EOD 
indicative values rule will function pursuant to SR-CBOE-2019-046, nor 
alter the free access market participants will have to the indicative 
values made publicly available pursuant to the proposed rule. This 
update is merely intended to continue to allow the dissemination of 
indicative values via OPRA in the same manner they are currently 
disseminated and made available to current OPRA subscribers. The 
indicative values disseminated via OPRA will continue to be clearly 
marked with an ``I'' indicator to distinguish them as indicative 
values, and not a quote or last sale. In order to coincide with the 
effective date of SR-CBOE-2019 and the migration of the Exchange's 
trading platform to the same system used by the Cboe Affiliated 
Exchanges,\6\ the Exchange also intends to implement this proposed rule 
change on October 7, 2019.
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    \5\ See SR-CBOE-2019-046 (August 12, 2019).
    \6\ In 2016, the Exchange's parent company, Cboe Global Markets, 
Inc. (formerly named CBOE Holdings, Inc.) (``Cboe Global''), which 
is also the parent company of Cboe C2 Exchange, Inc. (``C2''), 
acquired Cboe EDGA Exchange, Inc. (``EDGA''), Cboe EDGX Exchange, 
Inc. (``EDGX'' or ``EDGX Options''), Cboe BZX Exchange, Inc. 
(``BZX'' or ``BZX Options''), and Cboe BYX Exchange, Inc. (``BYX'' 
and, together with Cboe Options, C2, EDGX, EDGA, and BZX, the ``Cboe 
Affiliated Exchanges'').
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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. Additionally, 
the Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \9\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
    \9\ Id.
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    The proposed rule change is merely continuing the dissemination of 
indicative values via OPRA, without altering the proposed rule under 
SR-CBOE-2019-046 that the indicative values data will also be made 
publicly available, e.g., on the Exchange's website. This will proposed 
amendment will not impact the manner in which the proposed rule 
pursuant to SR-CBOE-2019-046 will function nor the public access that 
market participants will have to indicative values, but will merely 
allow indicative values to continue to be disseminated via OPRA, a 
process which market participants are already familiar with and for 
which many already subscribe. Thus, continuing the dissemination of 
indicative values via OPRA with not impact market participants as it 
will continue to allow OPRA to disseminate

[[Page 48202]]

indicative values to market participants that already subscribe to 
their data or wish to subscribe. Moreover, the indicative values 
disseminated via OPRA will continue to be clearly marked with an ``I'' 
indicator to distinguish them as indicative values, and not a quote or 
last sale, thereby protecting investors. As a result of the above, the 
proposed amendment serves to protect investors by fostering 
coordination with persons engaged in the processing of information with 
respect to securities and removing impediments to and perfecting the 
mechanism of a free and open market and a national market system.

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

    The Exchange does not believe that the proposed change will impose 
any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act. The proposed amendment to 
continue the dissemination of indicative values via OPRA, rather than 
discontinue them under SR-CBOE-2019-046 (effective October 7, 2019), is 
merely allowing a dissemination process currently in place to continue, 
thus allowing for market participants who currently subscribe to OPRA 
data to continue to receive such values through OPRA after October 7, 
2019. As this is a process currently in place, the Exchange believes 
this proposed filing to allow for its continuation will have no impact 
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 designated this rule filing as non-controversial 
under Section 19(b)(3)(A) \10\ of the Act and Rule 19b-4(f)(6) \11\ 
thereunder. 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 for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6) thereunder.
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
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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 under 
Section 19(b)(2)(B) \12\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \12\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. 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-2019-054 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CBOE-2019-054. 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 website (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 website 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. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-CBOE-2019-054 and should be submitted on 
or before October 3, 2019.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-19706 Filed 9-11-19; 8:45 am]
 BILLING CODE 8011-01-P


