[Federal Register Volume 85, Number 205 (Thursday, October 22, 2020)]
[Notices]
[Pages 67383-67387]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-23360]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-90213; File No. SR-CBOE-2020-094]


Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Enhance 
Its Drill-Through Protections and Make Other Clarifying Changes

October 16, 2020.
    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 October 5, 2020, Cboe Exchange, Inc. (``Exchange'' or ``Cboe 
Options'') 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

    Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes 
to enhance its drill-through protections and make other clarifying 
changes. The text of the proposed rule change is provided in Exhibit 5.
    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
    The Exchange proposes to enhance its drill-through protections for 
simple and complex orders and make other clarifying changes. Currently, 
pursuant to Rule 5.34(a)(4) and (b)(6), the System will execute a 
marketable buy (sell) order or complex order,\3\ respectively, up to a 
buffer amount above (below) the limit of the Opening Collar or the 
national best offer (``NBO'') (national best bid (``NBB'')), as 
applicable, or the synthetic national best offer (``SNBO'') or 
synthetic national best bid (``SNBB''), respectively (the ``drill-
through price''). The System enters any order (or unexecuted portion), 
simple \4\ or complex, into the book or the complex order book 
(``COB''), respectively, at the drill-through price for a specified 
period of time (determined by the Exchange).\5\ At the end of the time 
period, the System cancels any portion of the order not executed during 
that time period.
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    \3\ The System may also initiate a complex order auction 
(``COA'') at the drill-through price for a complex order that would 
otherwise initiate a COA.
    \4\ Market orders or limit orders (or unexecuted portions) with 
times-in-force of immediate-or-cancel (``IOC'') or fill-or-kill 
(``FOK'') are cancelled rather than be entered into the book. Limit 
orders with times-in-force of day, good-til-cancelled (``GTC''), or 
good-til-day (``GTD) may enter the book.
    \5\ The current time period is two seconds, and the current 
default amounts are available in the technical specifications 
available at https://cdn.cboe.com/resources/membership/US_Options_BOE_Specification.pdf. Upon implementation of the 
proposed rule change, the Exchange will likely reduce the length of 
the time period and maintain the same buffer amounts.
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    The Exchange proposes to permit orders to rest in the book or COB, 
as applicable, for multiple time periods and at more aggressive 
displayed prices during each time period.\6\ Specifically, for a limit 
order (or unexecuted portion) with a Time-in-Force of Day, GTC, or GTD, 
or a complex order, the System enters the order in the Book or COB with 
a displayed \7\ price equal to the drill-through price (as discussed 
below, if an order's limit price is less aggressive than the drill-
through price, the order will rest in the Book or COB, as applicable, 
at its limit price and subject to the User's instructions, and the 
drill-through mechanism as proposed to be amended would no longer apply 
to the order).\8\ The order (or unexecuted portion) will rest in the 
book or COB, as applicable, until the earliest to occur of the order's 
full execution and the end of the duration of the number of time 
periods.\9\ Following the end of each period prior to the final period, 
the System adds (if a buy order) or subtracts (if a sell order) one 
buffer amount to the drill-through price displayed during the 
immediately preceding period (each new price becomes the ``drill-
through

[[Page 67384]]

price'').\10\ The order (or unexecuted portion) rests in the book or 
COB, as applicable, at that new drill-through price for the duration of 
the subsequent period. Following the end of the final period, the 
System cancels or routes to PAR for manual handling, subject to a 
User's instructions, the simple or complex order (or unexecuted 
portion) not executed during any time period. The Exchange has received 
feedback from Users that the current application of the drill-through 
mechanism is too limited. The Exchange believes this proposed rule 
change will provide additional execution opportunities for these orders 
(or unexecuted portions) while providing protection against execution 
at prices that may be erroneous.
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    \6\ The Exchange will announce to Trading Permit Holders the 
buffer amount, the number of time periods, and the length of the 
time periods in accordance with Rule 1.5. The Exchange notes that 
each time period will be the same length (as designated by the 
Exchange), and the buffer amount applied for each time period will 
be the same.
    \7\ Currently, the drill-through price is the price of orders 
and complex orders in the book or COB, respectively. The proposed 
rule change clarifies that the drill-through price is displayed, 
which is consistent with current functionality.
    \8\ See proposed Rule 5.34(a)(4)(C) and (b)(6)(B).
    \9\ The Exchange will determine on a class-by-class basis the 
number of time periods, which may not exceed five, and the length of 
the time period, which may not exceed three seconds. See proposed 
Rule 5.34(a)(4)(C)(i) and (b)(6)(B)(i). While the current rule does 
not permit the Exchange to determine different time periods for 
different classes, the proposed rule change adds class flexibility 
so that the Exchange may determine different time periods for 
different classes, which may exhibit different trading 
characteristics and have different market models. This is consistent 
with flexibility the current Rules provide the Exchange with respect 
to other portions of the drill-through protection, such as the 
buffer amount for simple orders (the proposed rule change also adds 
this flexibility for determining the buffer amount for complex 
orders). See Rule 5.34(a)(4)(C) [sic] and (b)(6)(A) [sic].
    \10\ The System will apply a timestamp to the order (or 
unexecuted portion) based on the time it enters or is re-priced in 
the book or COB, as applicable, for priority purposes. See proposed 
Rule 5.34(a)(4)(C)(iii) and (b)(6)(B)(iii). This is consistent with 
the current drill-through functionality, pursuant to which the 
System applies a timestamp to the order (or unexecuted portion) 
based on the time it enters the book or COB, as applicable, modified 
to reflect the multiple price levels at which an order may rest. See 
current Rule 5.34(a)(4)(D) and (b)(6)(A).
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    For example, suppose the Exchange's market for a series in a class 
with a 0.05 minimum increment is 0.90-1.00, represented by a quote for 
10 contracts on each side (the quote offer is Quote A). The following 
sell orders or quote offers for the series also rest in the book:
     Order A: 10 contracts at 1.05;
     Quote B: 10 contracts at 1.10;
     Order B: 10 contracts at 1.15; and
     Order C: 20 contracts at 1.25.
    The market for away exchanges is 0.80-1.45. The Exchange's buffer 
amount for the class is 0.10, the drill-through resting time period is 
one second, and the number of time periods is three.
    The System receives an incoming order to buy 100 at 1.40, which 
executes against resting orders and quotes as follows: 10 against Quote 
A at 1.00 (which is the national best offer), 10 against Order A at 
1.05, and 10 against Quote B at 1.10. The System will not automatically 
execute any of the remaining 70 contracts from the incoming buy order 
against Order B, because 1.15 is more than 0.10 away from the national 
best offer at the time of order entry of 1.00 and thus exceeds the 
drill-through price check. The 70 unexecuted contracts then rest in the 
book for one second at a price of 1.10 (the initial drill-through 
price). No incoming orders are entered during that one-second time 
period to trade against the remaining 70 contracts. The System then re-
prices the buy order in the book at a new drill-through price of 1.20 
(drill-through price plus one buffer of 0.10). Ten contracts 
immediately execute against Order B at a price of 1.15 (the buy order 
is still handled as the ``incoming order'' that executes against the 
resting Order B, and thus receives price improvement to 1.15). An 
incoming order to sell 20 contracts at 1.20 enters the book and 
executes against 20 of the resting contracts at that price. At the end 
of the second one-second time period, there are 40 remaining contracts. 
These contracts then rest in the book at a price of 1.30 for the final 
one second time period. Twenty contracts immediately execute against 
Order C at a price of 1.25. No incoming orders are entered during that 
time period to trade against the remaining 20 contracts. At the end of 
the final one-second time period, the System cancels the remaining 20 
contracts (if the order is electronic only) or routes the remaining 
portion of the order to PAR for manual handling (if the order is 
default).\11\
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    \11\ The proposed drill-through protection for complex orders 
works in an identical manner.
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    Currently, Users may establish a higher or lower buffer amount than 
the default amount set by the Exchange with respect to complex orders 
subject to the drill-through protection.\12\ Pursuant to the proposed 
rule change, if a User establishes its own buffer amount, the drill-
through protection will work as it does today. In other words, if a 
User establishes its own buffer amount, a complex order will rest in 
the COB for one time period at the drill-through price and any 
unexecuted portion will be cancelled (or route to PAR as proposed) at 
the end of the time period. The proposed rule change clarifies that the 
length of the time period will continue to be determined by the 
Exchange, and will be the same as the length of the time period that 
applies to complex orders for which the User does not establish its own 
buffer amount. The Exchange believes this is consistent with a User's 
desire to set its own buffer to accommodate its own risk tolerance. All 
Users have the ability either to establish their own buffer amounts for 
complex orders, and thus have unexecuted orders rest for one time 
period, or let their complex orders be subject to the Exchange default 
buffer amount for complex orders, and thus have unexecuted orders rest 
at multiple price points for multiple time periods, as proposed.
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    \12\ See Rule 5.34(b)(6) (proposed subparagraph (b)(6)(A)).
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    Currently, any simple or complex order (or unexecuted portion) that 
does not execute after resting on the book or COB, respectively, at the 
drill-through price is cancelled.\13\ The proposed rule change provides 
that a simple or complex order (or unexecuted portion) that does not 
execute after the time period(s) will be cancelled or routed to PAR for 
manual handling, subject to a User's instructions.\14\ The Exchange 
believes this will be consistent with order instructions Users may 
apply and thus User's desired handling of their orders.\15\
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    \13\ See current Rule 5.34(a)(4)(D) and (b)(6)(B). Note the 
current Rules use the language ``cancel or reject'' while the 
proposed rule change deletes ``reject,'' as both terms have the same 
result and merely relate to internal System code, making the use of 
both terms unnecessary.
    \14\ See proposed Rule 5.34(a)(4)(C)(ii) and (b)(6)(2).
    \15\ See Rule 5.6(c) (definitions of ``default,'' which provides 
that an order will be subject to electronic processing and routed to 
PAR for manual handling if not eligible for electronic processing, 
and ``electronic only,'' which provides that an order will be 
subject to electronic processing but will not route to PAR for 
manual handling if not eligible for electronic processing).
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    The proposed rule change also makes certain clarifying and 
nonsubstantive changes, including movement of certain terms and 
provisions within Rule 5.34(a)(4) and (b)(6) due to the proposed rule 
changes described above. First, the proposed rule change combines the 
provisions in current subparagraphs (A) and (B) of Rule 5.34(a)(4) into 
proposed subparagraph (A). The drill-through protection in the 
following subparagraphs of Rule 5.34(a)(4) (currently and as proposed) 
apply to orders that enter the Book at the conclusion of the opening 
auction and intraday in the same manner. Current Rule 5.34(a)(4)(C) and 
(D) (proposed subparagraphs (B) and (C)) provide that the System 
handles orders not executed pursuant to current subparagraph (A) in 
accordance with those subparagraphs, inadvertently omitting that 
current subparagraphs (C) and (D) (and proposed subparagraphs (B) and 
(C)) also apply to orders described in current subparagraph (B). The 
proposed rule change clarifies that the drill-through protection 
applies to all orders that would enter the Book at prices worse than 
the drill-through price, including orders not executed during the 
opening auction and orders entered intraday. This is consistent with 
and a clarification of current functionality.
    Second, the proposed rule change adds clarifying language regarding 
how the System handles orders for which the limit price is equal to or 
less than (if a buy order) or greater than (if a sell order) the drill-
through price. Current Rule 5.34(b)(6) contemplates that complex orders 
with limit prices equal

[[Page 67385]]

to or less aggressive than the drill-through price will not be subject 
to the mechanism pursuant to which orders will rest in the COB for a 
time period and then be cancelled. Specifically, Rule 5.34(b)(6)(A) 
states if a buy (sell) complex order would execute or enter the COB at 
a price higher (lower) than the drill-through price, the System enters 
the complex order into the COB with a price equal to the drill-through 
price and rests for the time period in accordance with the drill-
through mechanism. Additionally, Rule 5.34(b)(6)(B) states that any 
complex order with a displayed price equal to the drill-through price 
(unless the drill-through price equals the order's limit price) will 
rest in the COB for the drill-through time period. Therefore, 
currently, if the limit price of a complex order is less aggressive 
than or equal to the drill-through price (i.e., if a buy (sell) complex 
order (or unexecuted portion) would execute or enter the COB at a price 
lower (higher) than or equal to the drill-through price), the complex 
order will rest in the COB, as applicable, and the drill-through 
mechanism stops (i.e., the time period will not occur and the System 
will not cancel the order). This is also true for simple orders but is 
not specified in the current Rules.
    The proposed rule change clarifies that notwithstanding the 
provisions described above regarding an order or complex order resting 
in the book or COB, respectively, for brief time periods at drill-
through prices, if a buy (sell) order's limit price equals or is less 
(greater) than the drill-through price at any time during application 
of the drill-through mechanism, the order rests in the book or COB, as 
applicable, subject to a User's instructions,\16\ at its limit price 
and any remaining time period(s) described above do not occur.\17\ If 
the drill-through price is equal to or more aggressive than the order's 
limit price, the additional protection of having the order rest in the 
COB for a short time period is not necessary given that the order will 
rest at the limit price entered by the User (and thus an acceptable 
execution price for that User). Additionally, displaying an order at a 
drill-through price (a price at which execution is possible) worse than 
the limit price of the order would be inconsistent with the terms of 
the order. This is consistent with current functionality (updated to 
reflect the proposed rule change to allow multiple time periods) and 
the definition of limit orders and merely clarifies this in the Rules.
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    \16\ For example, the order will remain in force subject to any 
time-in-force instruction applied to the order by the User upon 
entry.
    \17\ See proposed Rule 5.34(a)(4)(C)(iv) and (b)(6)(B)(iv).
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    Third, the proposed rule change corrects the market order reference 
in current Rule 5.34(a)(4)(D) (proposed Rule 5.34(a)(4)(C)) to limit 
order. That subparagraph relates to orders with times-in-force of day, 
GTC, or GTD that will rest in the book for a time period at the drill-
through price. However, market orders by definition \18\ do not rest in 
the book and would not have those times-in-force, which are contrary to 
the character of market orders. The System applies the functionality 
described in that subparagraph to limit orders with those times-in-
force. The proposed rule change conforms the rule to current System 
functionality and to the definition of market and limit orders, as 
limit orders not fully executed upon entry will rest in the book while 
market orders not fully executed upon entry will be cancelled and not 
rest in the book.\19\
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    \18\ See Rule 5.6(b).
    \19\ The proposed rule change also reorders the terms limit and 
market orders in current Rule 5.34(a)(4)(C) (proposed subparagraph 
(a)(4)(B)). This is a nonsubstantive change, as the times-in-force 
of immediate-or-cancel or fill-or-kill described in that 
subparagraph are applicable to limit orders rather than market 
orders, which by definition are immediate-or-cancel.
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    Fourth, the proposed rule change clarifies in proposed Rule 
5.34(b)(6)(B)(ii) that if the synthetic best bid or offer (``SBBO'') 
changes prior to the end of any time period but the complex order 
cannot leg into the simple book, and the new SBB or SBO, as applicable, 
crosses the drill-through price, the System changes the displayed price 
of the complex order to the new SBB or SBO, as applicable, plus or 
minus the applicable minimum increment for the class. The current Rule 
states that $0.01 is added to or subtracted from the new SBBO. However, 
a class may have a minimum increment other than $0.01 pursuant to Rule 
5.4(b). Currently, the System adds or subtracts the applicable minimum 
increment. The proposed rule change corrects an inadvertent error in 
the Rules to conform to current System functionality and Rules 
regarding minimum increments for complex orders. The proposed rule 
change will ensure that a complex order will rest in the COB only with 
a displayed price in the applicable minimum increment applicable for 
the class of that complex order. The proposed rule change also 
clarifies that the complex order will rest in the COB (the current rule 
text says the complex order is not cancelled), and adds detail that the 
complex order rests at that displayed price, subject to a User's 
instructions, and if it was not the final period, any remaining time 
period(s) do not occur.
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.\20\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \21\ 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) \22\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers.
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    \20\ 15 U.S.C. 78f(b).
    \21\ 15 U.S.C. 78f(b)(5).
    \22\ Id.
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    In particular, the Exchange believes the proposed enhancement to 
the drill-through mechanism removes impediments to and perfects the 
mechanism of a free and open market and a national market system, and, 
in general, protects investors and the public interest. The proposed 
rule change will permit orders (or unexecuted portions) to rest in the 
book or COB, as applicable, at different displayed prices for a brief 
but overall longer period of time, which will provide market 
participants' orders with additional execution opportunities while 
continuing to protect them against execution at potentially erroneous 
prices. The proposed enhancement to the drill-through protection is 
similar to current drill-through functionality. The Exchange may 
determine the buffer amount for orders and the time period in which 
orders may rest in the book or COB. The proposed rule change permits an 
order to rest at multiples of the buffer amount, which would have the 
same effect as the Exchange setting a larger buffer amount. For 
example, if the Exchange set a buffer amount of $0.75, that would allow 
orders to execute at

[[Page 67386]]

any price no further than $0.75 away from the NBBO or SNBBO at the time 
of order entry (including at prices $0.25 and $0.50 away from the NBBO 
or SNBBO at the time of order entry). This allows for the same 
potential execution prices that would be possible if the Exchange set a 
buffer of $0.25 and three time periods under the proposed rule change. 
While the overall time period for which an order may rest in the book 
or COB may be longer than the currently permissible time period, the 
longer time period will still be relatively brief (maximum of 15 
seconds). The Exchange notes it may maintain the same buffer amounts 
that are in place today. However, rather than increase the buffer 
amount at one time, the proposed rule change adds the overall larger 
buffer amount incrementally over a potentially overall longer time 
period. While this may permit executions at prices farther away from 
the NBBO or SNBBO at the time of order entry, it will still never 
permit executions at prices through orders' limit prices. This will 
provide execution opportunities for orders at incremental amounts away 
from the NBBO or SNBBO, as applicable, over a slightly longer time 
period and thus against a potentially larger number of orders. Users 
also have the ability to cancel orders prior to the completion of the 
time periods if they do not want the orders resting for a longer period 
of time (and Users can set their own buffer for complex orders, which 
would cause those complex orders to rest for a single time period 
rather than multiple as proposed).
    Additionally, the proposed rule change to permit orders to route 
orders to PAR for manual handling rather than cancel if consistent with 
the order instructions will remove impediments to and perfect the 
mechanism of a free and open market and national market system, as well 
as protect investors, because it will allow the System to handle orders 
in a manner that is consistent with the intent of a User's order 
instruction to route orders to PAR for manual handling that are not 
eligible for electronic processing. Manual handling rather than 
cancellation of orders in these circumstances may provide these orders 
with additional execution opportunities. Manual handling permits 
opportunities for brokers to evaluate the prices of orders based on 
then-existing market conditions, which creates minimal risk of 
executions at erroneous prices. Users that prefer to have their orders 
continue to be cancelled following the drill-through mechanism may 
include the appropriate instructions on their orders. The Exchange 
notes another risk control provides for the routing of orders to PAR 
for manual handling after the application of that control.\23\
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    \23\ See Rule 5.34(a)(1).
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    The Exchange believes the proposed clarifying and nonsubstantive 
changes to the drill-through protection rules protect investors by 
adding transparency to the rules regarding the drill-through 
functionality. These changes are consistent with current functionality 
and thus do not impact the applicability of the drill-through mechanism 
to orders.

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 the proposed rule change will impose any burden on 
intramarket competition that is not necessary or appropriate in 
furtherance of the purposes of the Act because the enhanced drill-
through protection will apply to all marketable orders in the same 
manner. Users may cancel orders resting on the Book during the drill-
through time periods or set their own buffer with respect to complex 
orders if they do not want their orders resting for a longer period of 
time as proposed. With respect to the proposed rule change pursuant to 
which orders may route to PAR for manual handling following being 
subject to the drill-through mechanism, Users can decide whether their 
orders may be eligible to route to PAR subject to the proposed rule 
change. If Users prefer their orders be cancelled following the drill-
through mechanism (as occurs today), they can include an instruction on 
their orders that the order be handled electronically only.
    The Exchange 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 it 
relates solely to how and when marketable orders will rest on the 
Exchange's book or COB. The proposed enhancement to the drill-through 
protection is consistent with the current protection and provides 
orders subject to the protection with additional execution 
opportunities while providing continued protection against execution 
against potentially erroneous prices.
    The Exchange believes the proposed rule change would ultimately 
provide all market participants with additional execution opportunities 
when appropriate while providing protection from erroneous execution. 
The Exchange believes the proposal will enhance risk protections, the 
individual firm benefits of which flow downstream to counterparties 
both at the Exchange and at other options exchanges, which increases 
systemic protections as well. The Exchange believes enhancing risk 
protections will allow Users to enter orders and quotes with further 
reduced fear of inadvertent exposure to excessive risk, which will 
benefit investors through increased liquidity for the execution of 
their orders. Without adequate risk management tools, such as the one 
proposed to be enhanced in this filing, Trading Permit Holders could 
reduce the amount of order flow and liquidity they provide. Such 
actions may undermine the quality of the markets available to customers 
and other market participants. Accordingly, the proposed rule change is 
designed to encourage Trading Permit Holders to submit additional order 
flow and liquidity to the Exchange. The proposed flexibility may 
similarly provide additional execution opportunities, which further 
benefits liquidity in potentially volatile markets. In addition, 
providing Trading Permit Holders with more tools for managing risk will 
facilitate transactions in securities because, as noted above, Trading 
Permit Holders will have more confidence protections are in place that 
reduce the risks from potential system errors and market events.
    The proposed clarifying and nonsubstantive changes are consistent 
with current functionality and are intended to add clarity to the 
Rules, and thus the Exchange expects those changes to have no 
competitive impact.

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

    Because the foregoing 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)(iii) of the Act \24\ and

[[Page 67387]]

subparagraph (f)(6) of Rule 19b-4 thereunder.\25\
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    \24\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \25\ 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: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) 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-2020-094 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-2020-094. 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-2020-094 and should be submitted on 
or before November 12, 2020.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\26\
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    \26\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-23360 Filed 10-21-20; 8:45 am]
BILLING CODE 8011-01-P


