[Federal Register Volume 77, Number 218 (Friday, November 9, 2012)]
[Notices]
[Pages 67356-67359]
[FR Doc No: 2012-27387]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings 1

    Take notice that the Commission received the following electric
corporate filings:
    Docket Numbers: EC13-26-000.
    Applicants: Ohio Power Company, AEP Generation Resources Inc.
    Description: Application for Authorization to Transfer
Jurisdictional Assets under Section 203 of the Federal Power Act of
Ohio Power Company and AEP Generation Resources Inc.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5336.
    Comments Due: 5 p.m. e.t. 11/30/12.

    Docket Numbers: EC13-27-000.
    Applicants: Appalachian Power Company, Wheeling Power Company.
    Description: Application for Authorization to Transfer
Jurisdictional Assets under Section 203 of the Federal Power Act of
Appalachian Power Company and Wheeling Power Company.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5337.
    Comments Due: 5 p.m. e.t. 12/17/12.

    Docket Numbers: EC13-28-000.
    Applicants: Appalachian Power Company, Kentucky Power Company, AEP
Generation Resources Inc.
    Description: Application for Authorization to Transfer
Jurisdictional Assets under Section 203 of the Federal Power Act of
Appalachian Power Company, Kentucky Power Company and AEP Generation
Resources Inc.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5339.
    Comments Due: 5 p.m. e.t. 12/17/12.

    Docket Numbers: EC13-29-000.
    Applicants: Kiowa Power Partners, LLC, Tenaska Energy, Inc.,
Tenaska Energy Holdings, LLC, Tenaska Oklahoma, Inc., Diamond
Pittsburg, LP, Diamond Oklahoma, LP.
    Description: Kiowa Power Partners, LLC, et al. Joint Application
For Approval Under Section 203 of the Federal Power Act and Request for
Shortened Comment Period and Expedited Action.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5387.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Take notice that the Commission received the following electric
rate filings:
    Docket Numbers: ER11-2780-007.
    Applicants: Safe Harbor Water Power Corporation.
    Description: Notice of Change in Status of Safe Harbor Water Power
Corporation.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5353.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER12-60-003; ER10-1632-003; ER10-1616-001; ER10-
1585-001; ER10-1594-001; ER10-1617-001; ER10-1628-001.
    Applicants: New Covert Generating Company, LLC, Tenaska Power
Services Co., Tenaska Power Management, LLC, Alabama Electric
Marketing, LLC, California Electric Marketing, LLC, New Mexico Electric
Marketing, LLC, Texas Electric Marketing, LLC.
    Description: Updated Market Power Analysis for the Central Region
on behalf of Tenaska Power Management, LLC, et al.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5351.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER12-569-001; 1920-002; ER10-1928-002; ER12-895-
001; ER10-2720-002; ER11-4428-002; ER10-1971-006.
    Applicants: Blackwell Wind, LLC, FPL Energy Oklahoma Wind, LLC, FPL
Energy Sooner Wind, LLC, Minco Wind Interconnection Services, LLC,
Minco Wind, LLC, Minco Wind II, LLC, NextEra Energy Power Marketing,
LLC.
    Description: Notification of Non-material Change in Status of the
NextEra Resource Entities.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5393.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER12-2291-000.
    Applicants: New England Power Company.
    Description: Refund Report of New England Power Company in Docket
No. ER12-2291 to be effective N/A.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5268.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER12-2304-002.
    Applicants: Green Mountain Power Corporation, ISO New England Inc.
    Description: Green Mountain Power Notice of Effective Date Schedule
21 and Schedule 20A to be effective 10/1/2012.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5030.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-150-001.
    Applicants: Northern Indiana Public Service Company, Midwest
Independent Transmission System Operator, Inc.
    Description: 10-31-12 NIPSCO Amendment to be effective 1/1/2013.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5259.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-226-000.
    Applicants: Southern California Edison Company.
    Description: 2013 TRBAA Update Filing to be effective 1/1/2013.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5003.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-227-000.
    Applicants: Southern California Edison Company.
    Description: 2013 RSBAA Update Filing to be effective 1/1/2013.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5014.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-228-000.
    Applicants: Pacific Gas and Electric Company.
    Description: CCSF IA--39th Quarterly Filing of Facilities
Agreements to be effective 9/30/2012.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5016.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-229-000.

    Applicants: Green Mountain Power Corporation, ISO New England Inc.
    Description: GMP--Notice of Succession for Service Agreement No. 69
to be effective 10/1/2012.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5029.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-230-000.
    Applicants: Northern Iowa Windpower II LLC.
    Description: Corrected Tariff Revisions to be effective 6/30/2012.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5066.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-231-000.
    Applicants: Northern States Power Company, a Minnesota corporation.
    Description: 2012-10-31-Ada-Kasota-Intercon-Agmnts to be effective
12/31/2012.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5067.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-232-000.
    Applicants: AEP Generation Resources Inc.
    Description: Ohio Power Supply Agreement to be effective 1/1/2014.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5096.
    Comments Due: 5 p.m. e.t. 11/30/12.

    Docket Numbers: ER13-233-000.
    Applicants: Appalachian Power Company.
    Description: Power Coordination Agreement and Bridge Agreement to
be effective 1/1/2014.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5097.
    Comments Due: 5 p.m. e.t. 11/30/12.

    Docket Numbers: ER13-234-000.
    Applicants: Kentucky Power Company.
    Description: Power Coordination Agreement and Bridge Agreement
Concurrence to be effective 1/1/2014.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5098.
    Comments Due: 5 p.m. e.t. 11/30/12.

    Docket Numbers: ER13-235-000.
    Applicants: Indiana Michigan Power Company.
    Description: Power Coordination Agreement and Bridge Agreement
Concurrence to be effective 1/1/2014.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5101.
    Comments Due: 5 p.m. e.t. 11/30/12.

    Docket Numbers: ER13-236-000.
    Applicants: AEP Generation Resources Inc.
    Description: Bridge Agreement Concurrence to be effective 1/1/2014.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5104.
    Comments Due: 5 p.m. e.t. 11/30/12.

    Docket Numbers: ER13-237-000.
    Applicants: Ohio Power Company.
    Description: Bridge Agreement Concurrence to be effective 1/1/2014.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5105.
    Comments Due: 5 p.m. e.t. 11/30/12.

    Docket Numbers: ER13-238-000.
    Applicants: Appalachian Power Company.
    Description: Sporn and Mitchell Operating Agreements to be
effective 1/1/2014.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5106.
    Comments Due: 5 p.m. e.t. 12/17/12.

    Docket Numbers: ER13-239-000.
    Applicants: Kentucky Power Company.
    Description: Mitchell Operating Agreement Concurrence to be
effective 1/1/2014.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5107.
    Comments Due: 5 p.m. e.t. 12/17/12.

    Docket Numbers: ER13-240-000.
    Applicants: AEP Generation Resources Inc.
    Description: Sporn Operating Agreement Concurrence to be effective
1/1/2014.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5109.
    Comments Due: 5 p.m. e.t. 12/17/12.

    Docket Numbers: ER13-241-000.
    Applicants: PJM Interconnection, L.L.C.
    Description: Original SA No. 3410; Queue No. W4-029 & Y1-075
(Reeves South) to be effective 10/12/2012.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5117.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-242-000.
    Applicants: Midwest Independent Transmission System Operator, Inc.
    Description: SA 2013 G586 Amended GIA to be effective 11/1/2012.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5118.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-243-000.
    Applicants: PJM Interconnection, L.L.C.
    Description: Original SA No. 3411; Queue No. W4-029 & Y1-075
(Reeves North) to be effective 10/12/2012.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5123.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-244-000.
    Applicants: Green Mountain Power Corporation.
    Description: Notice of Succession and Establishment of New eTariff
Database to be effective 10/31/2012.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5125.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-245-000.
    Applicants: Green Mountain Power Corporation, Central Vermont
Public Service Corporation.
    Description: Cancellation of Central Vermont eTariff Database to be
effective 10/31/2012.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5136.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-246-000.
    Applicants: Southern California Edison Company.
    Description: SCE 2013 Update ETC Reliability Services Rate to be
effective 1/1/2013.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5165.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-247-000.
    Applicants: NV Energy, Inc.
    Description: Transmission Rate Case--SPPC to be effective 1/1/2013.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5179.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-249-000.
    Applicants: Southwest Power Pool, Inc.
    Description: 1313R6 Oklahoma Gas & Electric NITSA NOA to be
effective 10/1/2012.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5195.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-250-000.
    Applicants: Luminescent Systems, Inc.
    Description: Cancellation of Tariff to be effective 11/1/2012.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5218.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-251-000.
    Applicants: Arizona Public Service Company.
    Description: APS Service Agreement No. 327-Azusa Simultaneous
Exchange to be effective 1/1/2013.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5222.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-252-000.
    Applicants: Entergy Gulf States Louisiana, L.L.C.
    Description: EGSL-SRMPA Extension of Interim Agreement to be
effective 1/1/2013.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5229.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-253-000.
    Applicants: Entergy Arkansas, Inc.
    Description: EAI Filing of Unexecuted Reimbursement Agreement with
AECC to be effective 1/1/2013.

    Filed Date: 10/31/12.
    Accession Number: 20121031-5235.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-254-000.
    Applicants: Midwest Independent Transmission System Operator, Inc.
    Description: 10-31-12 ATC Attachment FF to be effective 12/30/2012.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5243.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-255-000.
    Applicants: NV Energy, Inc.
    Description: Transmission Rate Case--NPC to be effective 1/1/2013.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5246.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-256-000.
    Applicants: Exelon Energy Company.
    Description: Exelon Energy Company, Notice of Cancellation to be
effective 11/1/2012.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5250.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-257-000.
    Applicants: PJM Interconnection, L.L.C.
    Description: Queue Position V2-028; Original Service Agreement No.
3413 to be effective 9/28/2012.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5251.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-258-000.
    Applicants: California Independent System Operator Corporation.
    Description: 2012-10-31 CAISO Amendment 7 to the PLA with CDWR to
be effective 11/1/2012.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5255.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-259-000.
    Applicants: Oklahoma Gas and Electric Company.
    Description: Revisions to Depreciation Rates to be effective 8/2/
2012.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5256.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-260-000.
    Applicants: Dynegy Oakland, LLC.
    Description: Annual RMR Section 205 Filing and RMR Schedule F
Informational Filing to be effective 1/1/2013.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5260.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-261-000.
    Applicants: California Power Exchange Corporation.
    Description: Rate Filing for Rate Period 22 to be effective 1/1/
2013.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5273.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-262-000.
    Applicants: Central Maine Power Company.
    Description: Warren Interconnection Agreement to be effective 11/1/
2012.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5277.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-263-000.
    Applicants: Midwest Independent Transmission System Operator, Inc.
    Description: 10-31-12 to be effective 1/1/2013.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5279.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-264-000.
    Applicants: Oklahoma Gas and Electric Company.
    Description: Revisions to Formula Rate to be effective 8/2/2012.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5280.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-265-000.
    Applicants: Nevada Power Company.
    Description: Rate Schedule No. 134 Interim Balancing Area Services
Agreement-VEA to be effective 11/1/2012.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5281.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-267-000.
    Applicants: Northern States Power Company, a Minnesota corporation,
Northern States Power Company, a Wisconsin corporation.
    Description: Northern States Power Company, a Minnesota
corporation, et al. submit a Notice of Cancellation of the Restated
Electric Service Agreement with Rice Lake, Wisconsin.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5366.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ER13-268-000.
    Applicants: Northern States Power Company, a Wisconsin corporation.
    Description: Northern States Power Company, a Wisconsin corporation
submits a Notice of Cancellation of the Restated Interconnection and
Power and Energy Supply Agreement with the Village of Bangor,
Wisconsin.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5391.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Take notice that the Commission received the following electric
securities filings:

    Docket Numbers: ES13-5-000.
    Applicants: ITC Arkansas LLC, ITC Louisiana LLC, ITC Mississippi
LLC, ITC Texas LLC.
    Description: Application under Section 204 of the Federal Power Act
for Authorization to Issue Debt Securities of ITC Arkansas LLC, ITC
Louisiana LLC, ITC Mississippi LLC and ITC Texas LLC.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5386.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Docket Numbers: ES13-6-000.
    Applicants: Entergy Services, Inc., Transmission Company Arkansas,
LLC, Transmission Company Louisiana I, LLC, Transmission Company
Louisiana II, LLC, Transmission Company Mississippi, LLC, Transmission
Company New Orleans, LLC, Transmission Company Texas, LLC.
    Description: Application under Section 204 of the Federal Power Act
for Authorization to Issue Debt Securities of Transmission Company
Arkansas, LLC, et al.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5390.
    Comments Due: 5 p.m. e.t. 11/21/12.

    Take notice that the Commission received the following land
acquisition reports:

    Docket Numbers: LA12-3-000.
    Applicants: Ashtabula Wind, LLC, Ashtabula Wind II, LLC, Ashtabula
Wind III, LLC, Backbone Mountain Windpower LLC, Badger Windpower, LLC,
Baldwin Wind, LLC, Bayswater Peaking Facility, LLC, Blackwell Wind,
LLC, Butler Ridge Wind Energy Center, LLC, Crystal Lake Wind, LLC,
Crystal Lake Wind II, LLC, Crystal Lake Wind III, LLC, Day County Wind,
LLC, Diablo Winds, LLC, Elk City Wind, LLC, Elk City II Wind, LLC,
Ensign Wind, LLC, ESI Vansycle Partners, L.P., Florida Power & Light
Co., FPL Energy Burleigh County Wind, LLC, FPL Energy Cabazon Wind,
LLC, FPL Energy Cape, LLC, FPL Energy Cowboy Wind, LLC, FPL Energy
Green Power Wind, LLC, FPL Energy Hancock County Wind, LLC, FPL Energy
Illinois Wind, LLC, FPL Energy Maine Hydro LLC, FPL Energy Marcus Hook,
L.P., FPL Energy MH50 L.P., FPL Energy Montezuma Wind, LLC, FPL Energy
Mower County, LLC, FPL Energy New Mexico Wind, LLC, FPL Energy North
Dakota Wind, LLC, FPL Energy North Dakota Wind II, LLC, FPL Energy
Oklahoma Wind, LLC, FPL Energy Oliver Wind I, LLC, FPL Energy Oliver
Wind II, LLC, FPL Energy Sooner Wind, LLC, FPL Energy South Dakota
Wind, LLC, FPL Energy Stateline II, Inc., FPL Energy Vansycle, LLC, FPL
Energy Wyman, LLC, FPL Energy Wyman IV, LLC, FPL Energy Wyoming, LLC,
Garden Wind, LLC, Gray County Wind Energy, LLC, Hatch Solar Energy
Center I, LLC, Hawkeye Power Partners, LLC,

High Majestic Wind Energy Center, LLC, High Winds, LLC, High Majestic
Wind II, LLC, Jamaica Bay Peaking Facility, LLC, Lake Benton Power
Partners II, LLC, Langdon Wind, LLC, Limon Wind, LLC, Limon Wind II,
LLC, Logan Wind Energy LLC, Meyersdale Windpower LLC, Mill Run
Windpower, LLC, Minco Wind, LLC, Minco Wind II, LLC, Minco Wind III,
LLC, Minco Wind Interconnection Services, LLC, NEPM II, LLC, NextEra
Energy Duane Arnold, LLC, NextEra Energy Montezuma II Wind, LLC,
NextEra Energy Power Marketing, LLC, NextEra Energy Point Beach, LLC,
NextEra Energy Seabrook, LLC, NextEra Energy Services Massachusetts,
LLC, Northeast Energy Associates, A Limited Partnership, North Jersey
Energy Associates, A Limited Partnership, North Sky River Energy, LLC,
Northern Colorado Wind Energy, LLC, Osceola Windpower, LLC, Osceola
Windpower II, LLC, Paradise Solar Urban Renewal, L.L.C., Peetz Table
Wind Energy, LLC, Pennsylvania Windfarms, Inc., Perrin Ranch Wind, LLC,
Red Mesa Wind, LLC, Sky River LLC, Somerset Windpower, LLC, Story Wind,
LLC, Tuscola Bay Wind, LLC, Vasco Winds, LLC, Victory Garden Phase IV,
LLC, Waymart Wind Farm, L.P., Wessington Wind Energy Center, LLC, White
Oak Energy LLC, Wilton Wind II, LLC, Windpower Partners 1993, L.P.
    Description: Quarterly Land Acquisition Report of the NextEra
Energy Companies.
    Filed Date: 10/31/12.
    Accession Number: 20121031-5385.
    Comments Due: 5 p.m. e.t. 11/21/12.

    The filings are accessible in the Commission's eLibrary system by
clicking on the links or querying the docket number.
    Any person desiring to intervene or protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Regulations (18 CFR 385.211 and 385.214) on or before 5:00
p.m. Eastern time on the specified comment date. Protests may be
considered, but intervention is necessary to become a party to the
proceeding.
    eFiling is encouraged. More detailed information relating to filing
requirements, interventions, protests, service, and qualifying
facilities filings can be found at: http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other information, call<PHONE_NUMBER>
(toll free). For TTY, call<PHONE_NUMBER>.

    Dated: November 1, 2012.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2012-27387 Filed 11-8-12; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 83, Number 18 (Friday, January 26, 2018)]
[Notices]
[Pages 3837-3838]
[FR Doc No: 2018-01355]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82540; File No. SR-CBOE-2018-004]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To
Establish Fees for Customized Functionality and/or Connectivity on the
Silexx Trading Platform

January 19, 2018.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on January 8, 2018, 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
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \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 establish fees for customized
functionality and/or connectivity on the Silexx trading platform
(``Silexx'' or the ``platform''). 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 purpose of this filing is to adopt fees for customized
functionality and/or connectivity on Silexx.\3\ Silexx is a front-end,
broker-neutral, multi-asset class order entry and management trading
platform owned by Cboe Silexx, LLC (``Cboe Silexx'' a wholly owned
subsidiary of Cboe Options' parent company, Cboe Global Markets, Inc.).
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    \3\ The Exchange initially filed the proposed fee changes on
January 2, 2018 (SR-CBOE-2018-002). On January 8, 2018, the Exchange
withdrew that filing and submitted this filing.
---------------------------------------------------------------------------

    Silexx is an order entry and management trading platform for listed
stocks and options that support [sic] both simple and complex
orders.\4\ The platform is a software application that is installed
locally on a user's desktop. The platform provides users with the
capability to send option orders to U.S. options exchanges and stock
orders to U.S. stock exchanges (and other trading centers), and allows
users to input parameters to control the size, timing and other
variables of their trades. Silexx includes access to real-time options
and stock market data, as well as access to certain historical data.
The platform provides users with the ability to maintain an electronic
audit trail and provide detailed trade reporting. In addition, Silexx
offers other functionality such as access to crossing orders tickets,
equity order reports and market data feeds (for specific fees).
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    \4\ The platform also permits users to submit orders for
commodity futures, commodity options and other non-security products
to be sent to designated contract markets, futures commission
merchants, introducing brokers or other applicable destinations of
the users' choice.
---------------------------------------------------------------------------

    The Exchange is now proposing an addition to the Silexx fee
schedule related to customized development of new functionality and/or
connectivity. Pursuant to a Silexx user's request, Cboe Silexx will
develop specifications and a statement of work relating to customized
functionality and/or connectivity. The statement of work will show the
time and materials costs associated with building Silexx to support the
user's request. This addition to the Silexx fee schedule will allow
Cboe Silexx to support users with user-specific functionality and
connectivity. The same reasonable hourly and materials rates will apply
to all users based on then-current rates in line with industry
standards, which costs (and any reasonable, standard mark-up) will be
passed through to users. As such, the Exchange believes the addition

represents an equitable allocation of reasonable fees.
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.\5\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \6\ 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
Section 6(b)(4) of the Act,\7\ which requires that Exchange rules
provide for the equitable allocation of reasonable dues, fees, and
other charges among its Trading Permit Holders and other persons using
its facilities.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
    \7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    Specifically, the Exchange believes the proposed change provides
for the equitable allocation of reasonable fees because the same hourly
and materials rates will apply to all users. The hourly and material
rates will be based on then-current rates in line with industry
standards, which costs (and any reasonable, standard mark-up) will be
passed through to users. Any user may elect to customize their Silexx
platform. Customization is completely optional and subject to an
agreement on a statement of work between the user and Cboe Silexx.

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

    Cboe Options 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. Each version of Silexx and
any additional customized functionality and/or connectivity will be
available to all market participants. Users have discretion to
determine whether to customize their version of the platform. Any
market participants will continue to have the flexibility to use any
order entry and management technology they choose. The Exchange will
not distinguish orders coming from a customized Silexx platform versus
any other order management platform.
    The proposed fees related to customized functionality and/or
connectivity will not impose any burden on competition because the same
rates will apply to all Silexx users. Those rates will be based on
then-current rates in line with industry standards, which costs (and
any reasonable, standard mark-up) will be passed through to Silexx
users.

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 foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \8\ and paragraph (f) of Rule 19b-4 \9\
thereunder. 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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

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 [email protected]. Please include
File Number SR-CBOE-2018-004 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-2018-004. 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-2018-004 and should be submitted on
or before February 16, 2018.
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-01355 Filed 1-25-18; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 77, Number 22 (Thursday, February 2, 2012)]
[Notices]
[Pages 5286-5289]
[FR Doc No: 2012-2237]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66265; File No. SR-CBOE-2011-007]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Order Approving a Proposed Rule Change To Adopt Rules
Governing S&P 500 Option Variance Basket Trades

January 27, 2012.

I. Introduction

    On October 26, 2011, Chicago Board Options Exchange, Incorporated
(``Exchange'' or ``CBOE'') filed with the Securities and Exchange
Commission (``Commission''), pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4
thereunder,\2\ a proposed rule change to adopt rules in connection with
a mechanism to quote for, and trade, at a single aggregate price, a
basket of S&P 500 Index Options comprising a pre-specified series of
listed calls and puts that are constructed to assist market
participants who use such baskets of options as part of a trading
strategy to obtain or hedge variance exposure on the S&P 500 Index. The
proposed rule change was published for comment in the Federal Register
on November 16, 2011.\3\ The Commission received one comment letter on
the proposed rule change.\4\ This order approves the proposed rule
change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 65725 (November 10,
2011), 76 FR 71092 (``Notice'').
    \4\ See Letter dated December 14, 2011, from Angelo Evangelou,
Assistant General Counsel, Legal Division, CBOE, to Elizabeth M.
Murphy, Secretary, Commission (``CBOE Letter'').
---------------------------------------------------------------------------

II. Description of the Proposed Rule Change

    The Exchange is proposing a new offering, called S&P 500 Variance
Trades (``Variance Trades''), which will allow market participants to
trade a basket of pre-specified series of S&P 500 Index options (``SPX
options'') in a single transaction. Each pre-specified basket of series
of options offered by the Exchange will be constructed using a
methodology designed to produce options baskets that can be used by
market participants as part of a trading strategy to obtain or hedge
variance exposure on the S&P 500 Index.\5\ Currently, a trader would
need to separately purchase or sell each of the options in a pre-
specified Variance Trade basket to acquire this type of options
exposure. In its filing, the Exchange notes that demand for volatility
products has increased in recent years, and believes that the proposed
Variance Trades would provide investors with an additional way to
efficiently trade S&P 500 volatility.\6\
---------------------------------------------------------------------------

    \5\ The Exchange notes that Variance Trades do not replicate
variance swaps. See Notice, supra note 3, 76 FR 71092, n.4. The
Commission understands that Variance Trades could be useful to
market participants who employ trading strategies to hedge or
replicate variance swaps on the S&P 500 Index. A variance swap is a
derivative in which two counterparties agree to exchange future cash
flows based on the realized level of volatility of a tradable
financial instrument over a pre-specified, future period of time.
    \6\ See Notice, supra note 3, 76 FR 71092, text accompanying
n.4. See also CBOE Letter, supra note 4, at 3.
---------------------------------------------------------------------------

    A Variance Trade consists of a basket of SPX options across
different series, where the constituent options of the basket are put
and call options with the same expiration date that are centered around
an at-the-money strike price.\7\ The Exchange will make one or more
Variance Trade baskets available for trading each day. Each basket will
consist of a portfolio of SPX options defined by the Exchange the day
before it is available for trading. Each basket will have a unique
ticker symbol.
---------------------------------------------------------------------------

    \7\ Detailed examples of how Variance Trades would be
constructed and executed on the Exchange are provided in the Notice.
See Notice, supra note 3.
---------------------------------------------------------------------------

    Unlike a typical multi-legged option transaction whose price is
expressed as a net dollar price, the price of a Variance Trade will be
quoted in ``volatility terms'' (i.e., a single number that reflects an
aggregate implied volatility for the entire options basket). Trade
quantities will be expressed in contracts, and each contract will have
a multiplier of $10,000 or more, as determined and announced by the
Exchange in advance.\8\ The Exchange expects typically to specify a
higher multiplier than $10,000, but has proposed to establish a $10,000
minimum to allow greater flexibility for short-dated options and low
volatility levels.\9\
---------------------------------------------------------------------------

    \8\ The multiplier for Variance Trades represents the aggregate
``vega'' exposure of the SPX option series that comprise the
Variance Trade portfolio. Vega describes the change in value of a
contract corresponding to a one-point change in volatility.
    \9\ See Notice, supra note 3, at n.6.
---------------------------------------------------------------------------

    A participant will submit a Variance Trade order with a limit price
expressed in terms of volatility (market orders would not be permitted)
and a contract size.\10\ Market makers also will be allowed to provide
quotes for Variance Trade baskets. Orders and quotes will be ranked
pursuant to one of the matching algorithms set forth in CBOE Rule
6.45A, which may be different from the matching algorithm in place for
other option products, including SPX. Once a Variance Trade match
occurs, the Exchange will use a formula to deconstruct the trade into
individual trades in the constituent SPX options that compose the
basket, and those individual trades each will be sent to OPRA as
separate trades.\11\
---------------------------------------------------------------------------

    \10\ Variance Trades will trade only electronically.
    \11\ See Notice, supra note 3, 76 FR 71093 (setting forth the
formula).
---------------------------------------------------------------------------

    The algorithm that deconstructs a Variance Trade into its
constituent SPX option legs uses a two step process. First, based on
the matched implied volatility (i.e., the price of the trade), the
system will calculate the exact number of contracts for each SPX option
series composing the Variance Trade.\12\ Second, the system will
calculate resulting trade prices for each SPX option series through an
iterative process in which current implied volatilities for each option
series are collectively adjusted upwards or downwards until the
aggregate implied volatility of the overall basket equals the matched
implied volatility as quoted. The individual price of any given option
series in the basket generally would not be the same as (or directly
related to) the prevailing market price for that series because the
entire basket will be priced in the aggregate in order to reflect the
desired volatility level.
---------------------------------------------------------------------------

    \12\ Unlike a typical complex order, the terms of a Variance
Trade order would not pre-specify the number of contracts for each
individual series composing the trade. These quantities instead
depend on the implied volatility of the options basket itself, which
is not known until a matched implied volatility for a trade has been
determined.
---------------------------------------------------------------------------

    The Exchange's proposal will allow the constituent SPX option
trades of a Variance Trade to be executed and reported without regard
to existing bids and offers on the Exchange in the individual SPX
options series at the time of the transaction.\13\ Once prices are
determined for a trade in each constituent series, the system will
execute and report the constituent trades to OPRA.\14\ In addition, the
executions in the individual constituent series will be sent to the
Options

Clearing Corporation (``OCC'') for clearing.
---------------------------------------------------------------------------

    \13\ See Notice, supra note 3, 76 FR 71093.
    \14\ To highlight that executions of Variance Trades are not
associated with the quoted prices in the respective SPX series at
the time of execution, each constituent SPX option execution will be
reported to OPRA with the ``benchmark'' indicator. The benchmark
indicator was created to facilitate the execution of benchmark
orders as contemplated by the Options Order Protection and Locked/
Crossed Market Plan (the ``Linkage Plan''). A benchmark order is an
order for which the price is not based, directly or indirectly, on
the quoted price of the option at the time of the order's execution
and for which the material terms were not reasonably determinable at
the time a commitment to trade the order was made.
---------------------------------------------------------------------------

    As there are no position limits for SPX options, the Exchange did
not propose any position limits for executions associated with Variance
Trades. Reporting limits applicable to SPX options will apply pursuant
to CBOE Rule 24.4, Interpretation and Policy .03.
    The Exchange expects Variance Trades to appeal to institutional
users and not to retail customers.\15\ Because of the complex nature of
Variance Trades, the Exchange will only allow orders in Variance Trades
to be submitted by members who have affirmatively communicated to the
Exchange a desire to submit orders in Variance Trades. Thus, retail
brokerage firms (or any other firms) that have not specifically opted
to submit orders in Variance Trades will not be allowed to send such
orders to CBOE (any such orders from such firms will be rejected).
---------------------------------------------------------------------------

    \15\ See id. at 71101.
---------------------------------------------------------------------------

    The Exchange represents that appropriate surveillance will be in
place in connection with Variance Trades.\16\ Further, the Exchange
states that it has analyzed its capacity and represents that it and the
Options Price Reporting Authority have the necessary systems capacity
to handle the additional traffic that it expects will be associated
with Variance Trades.\17\
---------------------------------------------------------------------------

    \16\ See id.
    \17\ See id.
---------------------------------------------------------------------------

III. Discussion and Commission's Findings

    After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of Section 6 of the Act \18\
and the rules and regulations thereunder applicable to a national
securities exchange.\19\ In particular, the Commission finds that the
proposed rule change is consistent with Section 6(b)(5) of the Act,\20\
which requires, among other things, that the Exchange's rules 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 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.
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78f.
    \19\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \20\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The introduction of Variance Trades is designed to allow
professional market participants to more efficiently trade an entire
option portfolio to obtain or hedge variance exposure on the S&P 500
Index. Such traders otherwise would need to purchase or sell each
option individually to acquire exposure to such a basket of options in
a complex web of simultaneously-executed transactions that is very
difficult to reproduce as a series of individual trades. To the extent
that traders currently seek out similar products offered on the over-
the-counter securities markets, the proposed rule change will permit
them to trade Variance Trades on a registered national securities
exchange. The Commission believes that the proposal will benefit
participants by providing an alternative to the over-the-counter market
through the functionality to trade these baskets of exchange-listed
options in a national securities exchange environment that offers the
potential of enhanced liquidity, transparency, and oversight, and where
counterparty risk can be mitigated through the role of OCC. Moreover,
the requirement that permit holders affirmatively indicate to the
Exchange a desire to transact in Variance Trades before the Exchange
accepts and processes orders from such firms will serve as an
additional safeguard to protect against the inadvertent submission of
Variance Trade orders.
    In the Notice, the Commission sought comment on two particular
issues relating to the proposed Variance Trades: (1) Allowing the
constituent SPX option trades of a Variance Trade to be executed and
reported without regard to existing bids and offers on the Exchange in
SPX at the time of the transaction; and (2) use of the benchmark
indicator when reporting the constituent legs of a Variance Trade.\21\
CBOE submitted a letter in response to the Commission's request for
comments, urging the Commission to approve its proposal.\22\ The
Commission did not receive any other comments.
---------------------------------------------------------------------------

    \21\ See Notice, supra note 3, 76 FR 71102.
    \22\ See CBOE Letter, supra note 4.
---------------------------------------------------------------------------

    On the first point, the Commission requested commenters' opinions
on whether allowing the constituent SPX option legs of a Variance Trade
to be executed and reported without regard for existing bids and offers
on the Exchange in SPX at the time of the transaction would be
consistent with the Exchange Act and what, if any, potential impact
this proposal might have on market participants.\23\ As noted above,
the Commission received no comments except from CBOE.
---------------------------------------------------------------------------

    \23\ See Notice, supra note 3, 76 FR 71102.
---------------------------------------------------------------------------

    While multi-leg complex orders can trade on CBOE at the same price
as existing booked interest on CBOE for one or more legs only if they
improve the price on another leg,\24\ Variance Trades will have no
similar restrictions, and the constituent legs could thus trade without
regard to quotes and orders with priority on CBOE's book.\25\
Exceptions from intra-market priority can raise concerns relating to
the protection of resting quotes and orders on an exchange's book and
the potential impact on the price discovery process.\26\
---------------------------------------------------------------------------

    \24\ See CBOE Rule 6.45(B)(b)(ii).
    \25\ Because SPX options are singly-listed on CBOE, and because
the only components of a Variance Trade will be SPX options, CBOE's
proposal does not implicate inter-market order protection concerns.
    \26\ See e.g.,Securities Exchange Act Release No. 63955
(February 24, 2011), 76 FR 11533, at 11540 (March 2, 2011) (SR-ISE-
2010-73).
---------------------------------------------------------------------------

    In its letter, the Exchange argues that orders and quotes in
individual SPX options series would not be disadvantaged when the
various legs of a deconstructed Variance Trade execute, because traders
in the individual SPX option series are not bidding for or offering the
entire Variance Trade, which is the relevant order being executed.\27\
While true, that argument is inconsistent with the treatment of other
complex orders, noted above, which are required to interact with
resting orders with priority except under limited circumstances.
---------------------------------------------------------------------------

    \27\ See CBOE Letter, supra note 4, at 2.
---------------------------------------------------------------------------

    In addition, CBOE believes that requiring the deconstructed
components of a Variance Trade to interact with orders resting on the
CBOE's SPX book would impede and frustrate traders' desire to enter
into Variance Trades and achieve their investment objectives.\28\
Rather, CBOE argues that introducing an exchange-traded functionality
that allows investors to place a single order expressed in volatility
terms and that permits those investors to establish a specific
volatility profile is consistent with Section 6(b)(5) of the Act in
that it removes impediments to, and perfects the mechanism for, a free
and open market.\29\ The Exchange asserts that if some constituent
trades were required to be executed separately from the Variance Trade
it would materially alter the pricing of the Variance Trade as well as
its variance exposure, and would require the investor to execute
separate trades in one or more constituent SPX options in an attempt to
achieve the

objective variance exposure.\30\ The Exchange also states that
requiring that positions in the individual constituent series be
assigned different prices than those assigned by the algorithm would
mean that either the Variance Trade execution price must be modified or
a different and less efficient algorithm would be required to assign
prices to certain constituent SPX options to reach the trade's stated
execution price.\31\ The Exchange believes both alternatives would
destroy the appeal of the Variance Trade process.\32\ According to the
Exchange, its proposal is narrowly crafted to prevent abuse and would
facilitate beneficial volatility trading and hedging activity that
would serve the needs of the marketplace.\33\
---------------------------------------------------------------------------

    \28\ See id. at 3.
    \29\ See id.
    \30\ See id. at 4.
    \31\ See id.
    \32\ See id.
    \33\ See id.
---------------------------------------------------------------------------

    Further, CBOE argues that the prices of the constituent option
series are unrelated to quotes and orders on CBOE's book and that
requiring the constituent legs of a Variance Trade to interact with the
book could introduce inefficiencies in the pricing of Variance
Trades.\34\ The Commission notes that the fact that a given trade in a
constituent option series may trade through the price of resting
interest is a consequence of the Variance Trade methodology and the
fact that a Variance Trade is priced not in net dollar terms but in
volatility terms. Unlike complex orders (as defined in CBOE's
rules),\35\ the terms of a Variance Trade order would not pre-specify a
quantity for each individual series. Rather, since the exact size
(number of contracts) in each constituent series is a function of the
matched implied volatility, it can only be computed once a match has
occurred. In addition, the trade prices of the individual legs are
derived simultaneously using a complex iterative process that is
conducted after a match has occurred.
---------------------------------------------------------------------------

    \34\ See id. The Commission notes that despite CBOE's assertion
that the prices of the constituent option series of a Variance Trade
would be unrelated to quotes and orders on CBOE's book, the proposed
methodology CBOE would use for determining option prices in
connection with Variance Trades starts with the actual quoted option
prices themselves and then adjusts them upwards or downwards as
needed. Thus, the price of each option leg of a Variance Trade
actually would take into account the market price of each series.
    \35\ See CBOE Rule 6.53C.
---------------------------------------------------------------------------

    Requiring the component legs of a Variance Trade basket to interact
with resting orders in CBOE's SPX book would materially alter the
computed prices for each component leg and therein would frustrate the
ability of participants to consummate such transactions and undermine
the objective of the trade. Specifically, the Variance Trade algorithm
calculates a series of contract sizes and prices that span a
considerable number of series and the interaction of these trades with
resting orders would impact that process to an extent that could make
it difficult, if not impossible, to consummate a Variance Trade
transaction. Accordingly, in light of the unique structure and
calculation methodology of the Variance Trade, as discussed more fully
above, the Commission believes that allowing Variance Trades to execute
without interacting with pre-existing interest on CBOE is appropriate
and consistent with the Act.
    The second point on which the Commission requested comment in the
Notice relates to the use of the benchmark trade reporting indicator
when reporting the constituent legs of a Variance Trade. The Exchange's
proposal seeks to use the ``benchmark'' indicator for informational
purposes when reporting executions of the constituent legs of a
Variance Trade transaction, even though such trades would not be
``benchmark'' trades pursuant to Section 5(b)(xi) of the Linkage Plan,
which by its terms applies only to inter-market (not intra-market)
order protection.\36\ The Commission received no comments except from
CBOE.
---------------------------------------------------------------------------

    \36\ A benchmark order is an order for which the price is not
based, directly or indirectly, on the quoted price of the option at
the time of the order's execution and for which the material terms
were not reasonably determinable at the time a commitment to trade
the order was made. See CBOE Rule 6.81(b)(10) and Section 5(b)(xi)
of the Linkage Plan.
---------------------------------------------------------------------------

    The Exchange believes that the benchmark indicator, while it was
created for the reporting of multiply-listed option executions,
nevertheless would be useful to append to the execution of constituent
series of a Variance Trade so SPX traders know that the executions were
not related to the quoted price at the time of the print.\37\ In its
letter, the Exchange argues that the rationale behind the benchmark
indicator also applies to Variance Trades.\38\ Specifically, the
Exchange believes that the constituent SPX options executions clearly
fall within the definition of a benchmark trade in that they are not
related to the quoted SPX prices at the time of execution, which is how
the benchmark indicator would be used in the context of multiply-listed
options.\39\ Further, CBOE believes that the fact that SPX options only
trade on CBOE should not alter the conclusion that benchmark trades be
exempt from certain priority considerations because they utilize
transparent pricing methods that do not take into account the quoted
market in the applicable security.\40\ The Exchange believes that the
proposed use of the benchmark trade indicator would appropriately alert
SPX market participants that the prices of the executed SPX constituent
trades were not related to the quoted SPX prices at the time of the
execution, in a way that would avoid any market confusion. The Exchange
also believes that it would facilitate its surveillance of the
constituent trades.\41\
---------------------------------------------------------------------------

    \37\ Currently, CBOE does not offer functionality or order types
that utilize the benchmark exception to the Linkage Plan. See
Notice, supra note 3, 76 FR 71093, n.7.
    \38\ CBOE Letter, supra note 4, at 3.
    \39\ CBOE Letter, supra note 4, at 5.
    \40\ See id. at 3. See also supra note 34.
    \41\ See CBOE Letter, supra note 4, at 5.
---------------------------------------------------------------------------

    The Commission believes that the use of an indicator for the trades
in the constituent series of a Variance Trade is appropriate to alert
market participants that the executions are not regular market
transactions in order to guard against investor confusion in seeing
individual options trade at prices that may be above or below
prevailing market prices.
    CBOE has informed the Commission that, at the present time, the
benchmark indicator is not used in the options markets.\42\ In reliance
on this representation, the Commission believes the potential for
investor confusion by marking the constituent trades as benchmark
trades would be minimal, and that the use of the benchmark indicator
for these purposes is reasonable at this time. The Commission notes,
however, that use of another indicator may be preferable given that the
benchmark indicator was intended for use in the context of inter-market
order protection and therefore was not necessarily contemplated for use
in the context of singly-listed SPX options that only trade on CBOE.
Further, as noted above, a benchmark trade is defined as an order for
which the price is not based, directly or indirectly, on the quoted
price of the option at the time of the order's execution and for which
the material terms were not reasonably determinable at the time a
commitment to trade the order was made. As also noted above, however,
the price of each leg of a Variance Trade actually would take into
account the market price of each series as part of the proposed

methodology in which the quoted price for a series is adjusted upwards
or downwards as necessary.\43\ CBOE should monitor for the future use
of the benchmark indicator in the options markets, and if CBOE or any
other options market begins to use the benchmark indicator pursuant to
the Linkage Plan, then CBOE should consider the impact of the potential
for investor confusion, and whether to seek approval for use of a
different indicator for Variance Trades to avoid investor confusion.
---------------------------------------------------------------------------

    \42\ See email from Angelo Evangelo, CBOE, to Richard Holley,
Assistant Director, Commission, dated January 26, 2012.
    \43\ See supra note 34.
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\44\ that the proposed rule change (SR-CBOE-2011-007) be, and
hereby is, approved.

    \44\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\45\
---------------------------------------------------------------------------

    \45\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-2237 Filed 2-1-12; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 87, Number 135 (Friday, July 15, 2022)]
[Notices]
[Page 42530]
[FR Doc No: 2022-15180]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-95257; File No. SR-CboeBZX-2022-031]

Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Designation of a Longer Period for Commission Action on a Proposed Rule
Change To List and Trade Shares of the ARK 21Shares Bitcoin ETF Under
BZX Rule 14.11(e)(4), Commodity-Based Trust Shares

July 12, 2022.
    On May 13, 2022, Cboe BZX Exchange, Inc. (``BZX'') filed with the
Securities and Exchange Commission (``Commission''), pursuant to
Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\
and Rule 19b-4 thereunder,\2\ a proposed rule change to list and trade
shares of the ARK 21Shares Bitcoin ETF under BZX Rule 14.11(e)(4),
Commodity-Based Trust Shares. The proposed rule change was published
for comment in the Federal Register on June 1, 2022.\3\ The Commission
has received no comments on the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 94982 (May 25,
2022), 87 FR 33250.
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    Section 19(b)(2) of the Act \4\ provides that within 45 days of the
publication of notice of the filing of a proposed rule change, 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 self-
regulatory organization consents, the Commission shall either approve
the proposed rule change, disapprove the proposed rule change, or
institute proceedings to determine whether the proposed rule change
should be disapproved. The 45th day after publication of the notice for
this proposed rule change is July 16, 2022. The Commission is extending
this 45-day time period.
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    \4\ 15 U.S.C. 78s(b)(2).
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    The Commission finds that it is appropriate to designate a longer
period within which to take action on the proposed rule change so that
it has sufficient time to consider the proposed rule change and the
issues raised therein. Accordingly, pursuant to Section 19(b)(2) of the
Act,\5\ the Commission designates August 30, 2022, as the date by which
the Commission shall either approve or disapprove, or institute
proceedings to determine whether to disapprove, the proposed rule
change (File No. SR-CboeBZX-2022-031).
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    \5\ Id.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(31).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-15180 Filed 7-14-22; 8:45 am]
BILLING CODE 8011-01-P


Comment Info: =================

General Comment:To whom it may concern,

I am writing to request an extension of the comment period for the Food and Drug Administration's Proposed Rule Deeming Tobacco Products to be Subject to the Federal Food, Drug, and Cosmetic Act, as amended by the Family Smoking and Prevention and Tobacco Control Act (the "Proposed Rule") published at 79 Fed. Reg. 23,142 and Federal Register No. 2014-09491. I am requesting that the comment period for the Proposed Rule be extended by the FDA for an additional 105 days, from its current 75-day period, to 180 days.

The Proposed Rule raises a number of significant issues and questions that are important and relevant to me, as a consumer of products proposed for regulation under the Rule. I want to provide my thoughts and comments on many of the issues, but this take time. I have already spent much time researching the issue, so I personally feel safe using these products as an alternative to cigarettes. It is not unreasonable to allow the public an additional six months to comment. This is our only opportunity, as consumers, to provide our feedback.

I feel very strongly about e-cigarettes as an alternative to combustible cigarettes. I was a smoker for 40 years. Three years ago I told my doctor I had decided to quit. We tried nicotine patches, prescription Wellbutrin, Chantix, nicotine inhales and other methods. Nothing worked. The second day after I purchased and tried an e-cigarette, I quit smoking regular cigarettes and have not smoked since. That was three years ago. There are literally thousands of others with the same story.

I realize that the FDA has the authority under 21 CFR 10.40 to extend this time frame and that the FDA has exercised this authority on numerous occasions in the past. I would therefore ask that you do so here, so that all stakeholders have the opportunity to provide their comments on this proposed regulation.

Thank you for your time and consideration.