[Federal Register: March 24, 2010 (Volume 75, Number 56)]
[Notices]
[Page 14216-14217]
[DOCID:fr24mr10-127]

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SECURITIES AND EXCHANGE COMMISSION

[Rule 15c3-1f; SEC File No. 270-440; OMB Control No. 3235-0496]

Submission for OMB Review; Comment Request

Upon Written Request, Copies Available From: U.S. Securities and
Exchange Commission, Office of Investor Education and Advocacy,
Washington, DC 20549-0213.

    Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (``Commission'') has submitted to the Office of Management
and Budget a request for approval of extension on the previously
approved collection of information provided for in the following rule:
Appendix F to Rule 15c3-1 (``Appendix F'') (17 CFR 240.15c3-1f) under
the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) (``Exchange
Act'').
    Appendix F requires a broker-dealer choosing to register, upon
Commission approval, as an OTC derivatives dealer to develop and
maintain an internal risk management system based on Value-at-Risk
(``VaR'') models. Appendix F also requires the OTC derivatives dealer
to notify Commission staff of the system and of certain other periodic
information including when the VaR model deviates from the actual
performance of the OTC derivatives dealer's portfolio. It is
anticipated that a total of five (5) broker-dealers will spend 1,000
hours per year complying with Rule 15c3-1f. The total burden is
estimated to be approximately 5,000 hours.
    The records required to be kept pursuant to Appendix F and results
of periodic reviews conducted pursuant to Rule 15c3-4 generally must be
preserved under Rule 17a-4 of the Exchange Act (17 CFR 240.17a-4) for a
period of not less than three years, the first two years in an easily
accessible place. The Commission will not generally publish or make
available to any person notices or reports received pursuant to the
Rule. The statutory basis for the Commission's refusal to disclose such
information to the public is the exemption contained in Section (b)(4)
of the Freedom of Information Act, 5 U.S.C. 552, which essentially
provides that the requirement of public dissemination does not apply to
commercial or financial information which is privileged or
confidential.
    An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a
currently valid control number.
    Comments should be directed to: (i) Desk Officer for the Securities
and Exchange Commission Office of Information and Regulatory Affairs,
Office of Management and Budget, Room 10102, New Executive Office
Building, Washington, DC 20503 or by sending an e-mail to: Shagufta_
<EMAIL_ADDRESS>and (ii) Charles Boucher, Director/Chief Information
Officer, Securities and Exchange Commission, c/o Shirley Martinson,
6432 General Green Way, Alexandria, Virginia 22312 or send an e-mail to
<EMAIL_ADDRESS>Comments must be submitted to OMB within 30 days
of this notice.

    Dated: March 17, 2010.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-6505 Filed 3-23-10; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 81, Number 55 (Tuesday, March 22, 2016)]
[Notices]
[Pages 15300-15302]
[FR Doc No: 2016-06368]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. IC16-4-000]

Commission Information Collection Activities (FERC-500 and FERC-
542); Consolidated Comment Request

AGENCY: Federal Energy Regulatory Commission, Energy.

ACTION: Comment request.

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SUMMARY: In compliance with the requirements of the Paperwork Reduction
Act of 1995, 44 U.S.C. 3506(c)(2)(A), the Federal Energy Regulatory
Commission (Commission or FERC) is submitting two information
collections (FERC-500, Application for License/Relicense and Exemption
for Water Projects with More than 5 Megawatt Capacity, and FERC-542,
Gas Pipeline Rates: Rate Tracking) to the Office of Management and
Budget (OMB) for review of the information collection requirements. Any
interested person may file comments directly with OMB and should
address a copy of those comments to the Commission as explained below.
The Commission previously issued a Notice in the Federal Register (80
FR 79322, 12/21/2015) and Errata Notice (81 FR 6844, 2/9/2016)
requesting public comments. The Commission received no public comments
and is making this notation in its submittals to OMB.

DATES: Comments on the collections of information are due April 21,
2016.

ADDRESSES: Comments filed with OMB, identified by the OMB Control Nos.
1902-0058 (FERC-500) and 1902-0070 (FERC-542), should be sent via email
to the Office of Information and Regulatory Affairs:
<EMAIL_ADDRESS>Attention: Federal Energy Regulatory
Commission Desk Officer. The Desk Officer may also be reached via
telephone at<PHONE_NUMBER>.
    A copy of the comments should also be sent to the Commission, in
Docket No. IC16-4-000, by either of the following methods:
     eFiling at Commission's Web site: http://www.ferc.gov/docs-filing/efiling.asp.
     Mail/Hand Delivery/Courier: Federal Energy Regulatory
Commission, Secretary of the Commission, 888 First Street NE.,
Washington, DC 20426.
    Instructions: All submissions must be formatted and filed in
accordance with submission guidelines at: http://www.ferc.gov/help/submission-guide.asp. For user assistance contact FERC Online Support
by email at<EMAIL_ADDRESS>or by phone at:<PHONE_NUMBER>
(toll-free), or<PHONE_NUMBER> for TTY.
    Docket: Users interested in receiving automatic notification of
activity in this docket or in viewing/downloading comments and
issuances in this docket may do so at http://www.ferc.gov/docs-filing/docs-filing.asp.

FOR FURTHER INFORMATION CONTACT: Ellen Brown may be reached by email at
<EMAIL_ADDRESS>telephone at<PHONE_NUMBER>, and fax at (202)
273-0873.

SUPPLEMENTARY INFORMATION:
    Type of Request: Three-year extension of the information collection
requirements for the collections described below with no changes to the
current reporting or recordkeeping requirements. Please note that each
collection is distinct.
    Comments: Comments are invited on: (1) Whether the collections of
information are necessary for the proper performance of the functions
of the Commission, including whether the information will have
practical utility; (2) the accuracy of the agency's estimates of the
burden \1\ and cost of the collections of information, including the
validity of the methodology and assumptions used; (3) ways to enhance
the quality, utility and clarity of the information collections; and
(4) ways to minimize the burden of the collections of information on
those who are to respond, including the use of automated collection
techniques or other forms of information technology.
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    \1\ The Commission defines ``burden'' as the total time, effort,
or financial resources expended by persons to generate, maintain,
retain, or disclose or provide information to or for a Federal
agency. For further explanation of what is included in the
information collection burden, refer to 5 Code of Federal
Regulations 1320.3.
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FERC-500, Application for License/Relicense and Exemption for Water
Projects With More Than 5 Megawatt \2\ Capacity
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    \2\ Megawatt = MW.
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    OMB Control No.: 1902-0058
    Abstract: Pursuant to the Federal Power Act, the Commission is
authorized to issue licenses and exemptions to citizens of the United
States, or to any corporation organized under the laws of United States
or any State thereof, or to any State or municipality for the purpose
of constructing, operating, and maintaining dams, water conduits,
reservoirs, power houses, transmission lines, or other project works
necessary or convenient for the development and improvement of
navigation and for the development, transmission, and utilization of
power across, along, from, or in any of the streams or other bodies of
water over which Congress has jurisdiction under its authority to
regulate commerce with foreign nations and among the several States, or
upon any part of the public lands and reservations of the United
States.
    FERC-500 includes an application (for water projects with more than
5 megawatt capacity) for a hydropower license/re-license or exemption,
annual conveyance report,\3\ and comprehensive plans. FERC-500 includes
certain reporting requirements in 18 CFR 4,\4\ 5, 8, 16, 141, 154.15,
and 292. Depending on the type of application or filing, it may include
project description, schedule, resource allocation, project operation,
construction schedule, cost, and financing; and an environmental
report.
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    \3\ Annual conveyance reports are filed for both major and minor
licenses. 80% of the reports are related to major licenses.
    \4\ FERC staff has not received any application filings
pertaining to the regulations described under 18 CFR 4.303 in over
20 years. It remains in 18 CFR and is included in FERC-500.
---------------------------------------------------------------------------

    After an application is filed, the Federal agencies with
responsibilities under the Federal Power Act (FPA) and other
statutes,\5\ the States, Indian tribes,

and other participants have opportunities to request additional studies
and provide comments and recommendations.
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    \5\ Statutes include the Electric Consumers Protection Act
(ECPA), the National Environmental Policy Act (NEPA), the Endangered
Species Act, the Federal Water Pollution Control Amendments of 1972
(the Clean Water Act), and the Coastal Zone Management Act.
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    Submittal of the FERC-500 application is necessary to fulfill the
requirements of the FPA in order for the Commission to make the
required finding that the proposal is economically, technically, and
environmentally sound, and is best adapted to a comprehensive plan for
improving/developing a waterway or waterways.
    In the 60-day Notice, we inadvertently included under FERC-500 only
the responses and burden associated with major license/re-license
applications or modifications for projects over 5 MW. In this Notice,
we are including the annual conveyance reports (filed by industry) and
comprehensive plans (filed by federal and state agencies which have
comprehensive plan status pursuant to 18 CFR 2.19).
    Type of Respondent: Applicants for major hydropower licenses or
exemptions greater than 5 MW, and Federal and State agencies which have
comprehensive plan status.
    Estimate of Annual Burden: Applicants for licenses are required to
include an estimate of their cost to prepare the license application,
which would include nearly all of the reporting requirements in FERC-
500.\6\ Because the requirements for an exemption application are
largely the same as that of a license application, the license
application costs are a good estimate of the exemption application
costs and of the overall burden of preparing license and exemption
applications for projects greater than 5 MW. To estimate the total
annual burden, we averaged the reported license application costs for
proposed projects greater than 5 MW filed in fiscal years (FY) 2012
through 2015. The results are presented in the table below:
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    \6\ FERC-500 also includes requirements in 18 CFR 2.19, 4.201,
4.202, 4.303, 4.35, 8.1, 8.2, 16.19, 141.15, and 292.208, which do
not directly relate to preparation of a license/re-license or
exemption application for a project greater than 5 MW.

   FERC-500 (Application for License/Relicense and Exemption for Water Projects With More Than 5 MW Capacity)
----------------------------------------------------------------------------------------------------------------
                   Fiscal year                         2012            2013            2014            2015
----------------------------------------------------------------------------------------------------------------
Number of Applications (Responses)..............               9               7              15               2
Average Cost per Response.......................      $2,059,828      $1,234,987      $3,776,864        $500,000
                                                 ---------------------------------------------------------------
    Total Burden Cost...........................      18,538,451       8,644,909      56,652,960       1,000,000
----------------------------------------------------------------------------------------------------------------

    The average burden cost per application over the period FY 2012
through FY 2015 was approximately $2,570,797.\7\ We estimate a cost
(salary plus benefits) of $72/hour.\8\ Using this hourly cost estimate,
the average burden for each application filed from FY 2012 to FY 2015
is 35,706 hours.
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    \7\ $84,836,320 (Total burden cost from FY2012-2015) / 33 (total
number of applications received from FY2012-2015) = $2,570,797.
    \8\ FERC staff estimates that industry is similarly situated in
terms of the hourly cost for salary plus benefits. Therefore, we are
using the FERC FY 2015 hourly cost (salary plus benefits) of $72/
hour.
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    The average annual burden and cost (including estimates for annual
conveyance reports and comprehensive plans) follow.\9\
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    \9\ The hourly cost (wages plus benefits) for annual conveyance
reports and comprehensive reports is similarly estimated to be $72/
hour.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                        Annual number                                              Total annual burden
            Type of filing                Number of     of responses    Total number    Average burden hours &    hours & total  annual      Cost per
                                         respondents   per respondent   of  responses    cost ($) per response           cost ($)         respondent ($)
                                                  (1)             (2)     (1) * (2) =  (4).....................  (3) * (4) = (5)........       (5) / (1)
                                                                                (3)
--------------------------------------------------------------------------------------------------------------------------------------------------------
License/Re-license (application or                  9               1               9  35,705.52 hrs.;           321,349.68 hrs.;          $2,570,797.42
 modification).                                                                         $2,570,797.42.            $23,137,176.82.
Annual Conveyance Reports (under 18           \10\ 41               1              41  3 hrs.; $216............  123 hrs.; $8,856.......             216
 CFR 141.15).
Comprehensive Plans (under 18 CFR                  33               1              33  1 hr.; $72..............  33 hrs.; $2,376........              72
 2.19) \11\.
                                      ------------------------------------------------------------------------------------------------------------------
    Total............................              83  ..............              83  ........................  321,505.68 hrs.;         ..............
                                                                                $23,148,408.82.
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FERC-542, Gas Pipeline Rates: Rate Tracking

OMB Control No.: 1902-0070
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    \10\ Order 540 changed the reporting requirement to state that
licensees are only to report if they convey lands/waters under the
standard land use article. Over the last 4 years, the number of
filings averaged 26. Based on filings in 2016, the number of filings
is expected to increase and is estimated at 41 per year. 80% of the
conveyance reports are for major projects.
    \11\ The comprehensive plans apply to all projects, minor and
major. These plans are not capacity-specific, so the complete
estimated number of filings is included here under FERC-500, however
some plans would also apply to FERC-505.
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    Abstract: The Natural Gas Act (NGA) requires FERC to regulate the
transmission and sale of natural gas for resale in interstate commerce
and to ensure the rates jurisdictional natural gas pipelines charge are
just and reasonable. It provides FERC with authority to implement NGA
mandates through its rules and regulations. FERC allows jurisdictional
pipelines to flow through to their customers such costs as fuel or
electric power costs necessary to operate compressor stations as well
as the costs of storage services; research,

development, and demonstration (RD&D) expenditures and FERC annual
charge adjustment assessments. To ensure these charges result in just
and reasonable rates, FERC requires jurisdictional pipelines to file
detailed and summary information on these flowed costs in the FERC-542.
Analyses of FERC-542 data helps the Commission evaluate the charges to
ensure compliance with NGA rate requirements.
    The FERC-542 contains the following information collection
requirements: (1) Research, development, and deployment (RD&D)
expenditures [18 CFR 154.401]; (2) annual charge adjustments (ACA) [18
CFR 154.402]; and (3) periodic rate adjustments [18 CFR 154.403]. The
general requirements for tariff filings that are specified in the
following regulations apply to all FERC-542 filings: 18 CFR 154.4, 18
CFR 154.7, 18 CFR 154.107, and 18 CFR 154.201.
    Type of Respondent: Natural Gas Pipelines
    Estimate of Annual Burden: The Commission estimates the annual
public reporting burden and cost \12\ for the information collection
as:
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    \12\ FERC staff estimates that industry is similarly situated in
terms of the hourly cost for salary plus benefits. Therefore, we are
using the FERC FY 2015 hourly cost (salary plus benefits) of $72/
hour.

                                                      FERC-542 (Gas Pipeline Rates: Rate Tracking)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                            Annual number
          Number of  respondents             of responses     Total number    Average  burden & cost ($)    Total annual  burden hours       Cost per
                                            per respondent    of responses           per response              & total  annual cost       respondent ($)
(1)                                                   (2)   (1) * (2) = (3)  (4).........................  (3) * (4) = (5).............       (5) / (1)
--------------------------------------------------------------------------------------------------------------------------------------------------------
87.......................................            2.13              185   2 hrs.; $144................  370 hrs.; $26,640...........            $306
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Dated: March 16, 2016.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2016-06368 Filed 3-21-16; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register Volume 84, Number 170 (Tuesday, September 3, 2019)]
[Notices]
[Pages 46069-46075]
[FR Doc No: 2019-18870]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-86772; File No. SR-CBOE-2019-042]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Rules Related to How the System Handles Incoming Orders and Open Outcry
Trading in Connection With the Migration of the Exchange's Trading
Platform to the Same System Used by the Cboe Affiliated Exchanges

August 27, 2019.
    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 August 9, 2019, Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe
Options'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. The
Exchange filed the proposal as a ``non-controversial'' proposed rule
change pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule
19b-4(f)(6) thereunder.\4\ The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes
to amend certain Rules related to how the System \5\ handles incoming
orders and open outcry trading, as well as move these Rules from the
currently effective Rulebook (``current Rulebook'') to the shell
structure for the Exchange's Rulebook that will become effective upon
the migration of the Exchange's trading platform to the same system
used by the Cboe Affiliated Exchanges (as defined below) (``shell
Rulebook''). The text of the proposed rule change is provided in
Exhibit 5.
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    \5\ The term ``System'' means the Exchange's hybrid trading
platform that integrates electronic and open outcry trading of
option contracts on the Exchange, and includes any connectivity to
the foregoing trading platform that is administered by or on behalf
of the Exchange, such as a communications hub. See Rule 1.1 in the
current Rulebook and the shell Rulebook.
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    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
    In 2016, the Exchange's parent company, Cboe Global Markets, Inc.
(formerly named CBOE Holdings, Inc.) (``Cboe Global''), which is also
the parent company of Cboe C2 Exchange, Inc. (``C2''), acquired Cboe
EDGA Exchange, Inc. (``EDGA''), Cboe EDGX Exchange, Inc. (``EDGX'' or
``EDGX Options''), Cboe BZX Exchange, Inc. (``BZX'' or ``BZX
Options''), and Cboe BYX Exchange, Inc. (``BYX'' and, together with
Cboe Options, C2, EDGX, EDGA, and BZX, the ``Cboe Affiliated
Exchanges''). The Cboe Affiliated Exchanges are working to align
certain system functionality, retaining only intended differences
between the Cboe Affiliated Exchanges, in the context of a technology
migration. Cboe Options intends to migrate its trading platform to the
same system used by the Cboe Affiliated Exchanges, which the Exchange
expects to complete on October 7, 2019. In connection with this
technology migration, the Exchange has a shell Rulebook that resides
alongside its current Rulebook, which shell Rulebook will contain the
Rules that will be in place upon completion of the Cboe Options
technology migration.
    Currently, the Exchange has an order handling system that
determines how to handle incoming orders. The order handling system
routes orders for automatic execution, book entry, open outcry, or
manual handling (by a Floor Broker or PAR Official).\6\ How the System
handles an order depends on whether an order is eligible for electronic
processing (i.e., eligible for automatic execution or book entry) or
the Trading Permit Holder's instructions on the order (e.g., a Trading
Permit Holder may route an order directly to a PAR workstation \7\ for
manual handling and potential open outcry trading). Additionally,
certain Rules provide that an order will route for manual handling if
it does not execute pursuant to those Rules.\8\ The Exchange's new
trading platform will not have an order handling system, and therefore
deletes the majority of provisions in current Rule 6.12 and other
provisions regarding the order handling system. Instead, the System
will handle orders in accordance with their instructions. Certain
orders will be eligible for electronic processing, while other orders
will be eligible for manual handling and open outcry trading, as set
forth in the proposed Rules and described below.
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    \6\ See current Rule 6.12.
    \7\ A PAR workstation is an order management tool used on the
Exchange's trading floor by Trading Permit Holders or PAR Officials
(whose responsibilities are described in current Rule 6.12B (which
the proposed rule change moves to proposed Rule 5.90)) to facilitate
manual handling of orders and open outcry trading.
    \8\ See, e.g., Rule 6.12(a)(1) (which provides any remaining
balance of an order that does not automatically execute are cannot
enter the Book will route to a PAR workstation or order management
terminal). Upon the migration of the trading platform, the Exchange
will no longer offer order management terminals (as all Floor
Brokers have PAR workstations on the trading floor, and order
management terminals provide similar order management
functionality), so all orders routed for manual handling will route
to a PAR workstation.
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    The proposed rule change adds the following order instructions to
Rule 5.6 in the shell Rulebook:
     A ``Default'' order is an order a User designates for
electronic processing, and which order (or unexecuted portion) routes
to PAR for manual handling if not eligible for electronic processing.
     A ``Direct to PAR'' order is an order a User designates to
be routed directly to a specified PAR workstation for manual handling.
A User must

designate a Direct to PAR order as RTH Only.\9\
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    \9\ Pursuant to Rule 5.1(c), trading during the Exchange's
Global Trading Hours (``GTH'') trading session is electronic only.
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    These Order Instructions, in addition to the Electronic Only \10\
instruction in Rule 5.6(c) in the shell Rulebook, essentially
``replace'' the Exchange's current order handling system.
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    \10\ An ``Electronic Only'' order is an order a User designates
for electronic execution (in whole or in part) on the Exchange only,
and does not route to PAR for execution in open outcry. The System
cancels an Electronic Only order that would otherwise route to PAR
pursuant to the Rules.
---------------------------------------------------------------------------

    Current Rule 6.12A(c) states unless otherwise specified in the
Rules or the context indicates otherwise, all order types in current
Rule 6.53 are eligible to route to PAR, except attributable orders,
intermarket sweep orders (``ISOs''), AIM sweep orders, sweep and AIM
orders, reserve orders,\11\ qualified contingent cross (``QCC'')
orders, and Market-Maker Trade Prevention Orders may not be routed to
PAR. The proposed rule change provides in Rule 5.6(c) and (d) that
Users may not designate orders with the following Order Instructions or
Times-in-Force as Direct to PAR (and thus they may not route to PAR for
manual handling \12\ or trade in open outcry), because manual handling
of these orders would generally be inconsistent with their defined
purposes: \13\
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    \11\ The Exchange does not intend to offer reserve complex
orders following the technology migration.
    \12\ As further discussed below, a Floor Broker that receives an
order via PAR for manual handling has discretion with how to handle
the order.
    \13\ See Rule 5.6(c) and (d) in the shell Rulebook. While stop
and stop-limit orders are eligible for routing for manual handling
today, the Exchange has authority pursuant to current Rules 6.12A
and 6.53 to determine to make them not eligible for routing for
manual handling. The Exchange believes there is minimal demand for
these order types to route to PAR given the purpose of these order
types (which is to rest and become eligible for automatic execution
as soon as the series reaches a specified price), and Users have the
ability to send these orders for electronic processing or send other
orders to PAR for manual handling if they so desire.
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     All Sessions; \14\
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    \14\ As noted above, there is no open outcry trading during the
Exchange's GTH trading session.
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     Book Only;
     Cancel Back;
     ISO; \15\
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    \15\ This is consistent with current Rule 6.12A(c).
---------------------------------------------------------------------------

     Post Only;
     Price Adjust;
     QCC; \16\
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    \16\ This is consistent with current Rule 6.12A(c). The proposed
rule change makes nonsubstantive changes to the definition of QCC
orders, including to add subheadings, update paragraph lettering and
numbering, and make other clarifying changes, as well as conform
language to the definition of a QCC order in EDGX Options Rule
21.1(d).
---------------------------------------------------------------------------

     Reserve; \17\
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    \17\ This is consistent with current Rule 6.12A(c).
---------------------------------------------------------------------------

     Stop;
     Stop-limit;
     Fill-or-kill;
     Good-til-date;
     Immediate-or-cancel;
     Limit-on-close;
     Market-on-close; and
     At the open.
    Proposed Rule 5.6(c) also identifies certain Order Instructions
that are only available for PAR routing and open outcry trading:
     Multi-Class Spread Order (which may only execute on the
Exchange's trading floor pursuant to current Rule 24.19);
     Not Held order (which by definition is subject to
discretion regarding execution); \18\ and
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    \18\ The proposed rule change deletes the language in the
definition of a ``not held'' order regarding the need to be marked,
as it is redundant of the not held order message that signifies it
is a not held order.
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     SPX Combo (which may only execute on the Exchange's
trading floor pursuant to current Rule 24.20).
    All other orders may be routed for electronic processing or manual
handling.
    The proposed rule change amends the definition of complex order in
Rule 1.1 of the shell Rulebook. Currently, the term complex order means
any order involving the concurrent execution of two or more different
series in the same class, for the same account, occurring at or near
the same time and for the purpose of executing a particular investment
strategy with no more than the applicable number of legs (which number
the Exchange determines on a class-by-class basis). The current
definition also states for purposes of Rules 5.4 (regarding permissible
minimum increments for bids and offers), 5.85 (regarding complex order
priority in open outcry trading), 5.86 (regarding open outcry
facilitations and solicitations), and 5.87 (regarding open outcry
crossing) in the shell Rulebook, the term complex order means a spread
order, combination order, straddle order, or ratio order (each as
defined in Rule 5.6 in the shell Rulebook.\19\
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    \19\ The current definition also provides that a definition for
complex order for the purposes of electronic processing will be
added to Rule 5.33 of the shell Rulebook (which the Exchange intends
to add in a separate rule filing).
---------------------------------------------------------------------------

    The Exchange believes the current definition of complex order is
unnecessarily restrictive on market participants. Market participants
may determine that investment and hedging strategies within the
specified ratio are appropriate for their investment purposes, and the
Exchange believes it will benefit market participants if they can
define the investment and hedging strategies that may help them achieve
their desired investment results. The Exchange does not believe it is
necessary to restrict complex orders submitted for execution to those
that fit within the definitions of straddle, combination, or spread.
Therefore, the proposed rule change deletes those defined terms, as
well as the term ratio order, and provides that any multi-leg order (up
to the maximum number of legs specified by the Exchange) with a ratio
equal to or greater than one-to-three (.333) and less than or equal to
three-to-one (3.00) (which ratio is consistent with the current
definition of ratio order) \20\ may be executed on the Exchange
electronically or in open outcry on the Exchange's trading floor.\21\
Therefore, all multi-legged orders with a ratio equal to or greater
than one-to-three (.333) and less than or equal to three-to-one (3.00)
(and not just spread, straddle, and combination orders) may trade in
penny increments pursuant to Rule 5.4 in the shell Rulebook (including
electronically pursuant to Rule 5.33 and in open outcry pursuant to
Rule 5.85 in the shell Rulebook), and may be eligible for the complex
order priority in Rule 5.85(b)(1) in open outcry trading.\22\ The
proposed rule change makes conforming changes to Rules 5.4 \23\ and
5.30 in the shell Rulebook.\24\ In other words, the proposed rule
change has no impact on the minimum trading increment or priority of
complex orders as currently defined in the shell Rulebook--it merely
expands the types of complex order strategies within the permissible
range of ratios that may receive complex order increment
(electronically and in open

outcry) and open outcry priority treatment.\25\
---------------------------------------------------------------------------

    \20\ See current Rule 6.53 (Rule 5.6(c) in the shell Rulebook).
    \21\ See proposed Rules 1.1, 5.6, and 5.30 in the shell
Rulebook. In a separate rule filing, the Exchange intends to adopt
rules regarding the trading of complex orders following the
technology migration.
    \22\ See proposed Rules 1.1 (definition of complex order),
5.4(b), 5.6(c), and 5.85(b).
    \23\ The proposed rule change also updates the expiration date
of the penny pilot program in Rule 5.4, Interpretation and Policy
.03 of the shell Rulebook. The Exchange previously ``moved'' its
rule regarding minimum increments from Rule 6.42 in the current
Rulebook to Rule 5.4 of the shell Rulebook (see Securities Exchange
Act Release No. 86173 (June 20, 2019), 84 FR 30267 (June 26, 2019)
(SR-CBOE-2019-027). After that filing, the Exchange submitted a rule
filing to extend the penny pilot program through December 31, 2019.
See Securities Exchange Act Release No. 86148 (June 19, 2019), 84 FR
29906 (June 25, 2019) (SR-CBOE-2019-028). The proposed rule change
amends Rule 5.4 to reflect the current expiration of the penny pilot
program in the shell Rulebook, but makes no change to the penny
pilot program.
    \24\ Proposed Rule 5.85(b) also clarifies that only complex
orders with ratios greater than one-to-three (.333) or less than
three-to-one (3.00) are eligible for complex order priority in open
outcry trading.
    \25\ Pursuant to the proposed rule change, complex orders with
any ratio may trade on the Exchange's trading floor pursuant to the
rules regarding solicitation and crossing (current Rules 6.9 and
6.74, which the proposed rule change moves to Rules 5.86 and 5.87,
respectively). However, any complex order trades pursuant to those
Rules will be subject to the minimum increment and priority Rules
described in this rule filing. Other options exchanges have similar
definitions of complex orders. See, e.g., BOX Exchange LLC (``BOX'')
Rule 7600(a)(4); and Nasdaq Phlx, LLC (``Phlx'') Rule 1098(a)(i) and
(c)(iii).
---------------------------------------------------------------------------

    The proposed rule change also clarifies that market participants
may submit a complex order with any strategy and any ratio for manual
handling and open outcry trading.\26\ The proposed rule change makes
explicit that a complex order (and its legs) with a ratio of less than
one-to-three (.333) or greater than three-to-one (3.00) may trade in
open outcry on the Exchange's trading floor in the standard trading
increment for the class, and that each leg price be better than the
price of a Priority Customer order in the Book on each leg of the
order. This is equivalent to a market participant submitting multiple
simple orders in the same class for open outcry trading (they would
trade in the permissible minimum increments in Rule 5.4(a) in the shell
Rulebook, and each would need to be price better than a Priority
Customer order in the book in the applicable series, as set forth in
proposed Rule 5.85(a)).\27\ The proposed rule change merely clarifies
that market participants may submit these as a single complex order for
manual handling and execution on the Exchange's trading floor, which
will permit more efficient execution of complex trading strategies
outside of the specified ratio.
---------------------------------------------------------------------------

    \26\ By clarifying in the definition of complex order that, for
purposes of Rule 5.33 in the shell Rulebook (which will be moved
from Rule 6.53C in the current Rulebook and describe the electronic
processing of complex orders), a complex order may only have a ratio
equal to or greater than one-to-three and less than or equal to
three-to-one to be eligible for electronic processing.
    \27\ See proposed Rules 1.1, 5.4, 5.6, and 5.85(b) in the shell
Rulebook.
---------------------------------------------------------------------------

    The proposed rule change also adopts Rule 5.83 in the shell
Rulebook to explicitly state which orders may be eligible for PAR
routing (and open outcry trading), which include market and limit
orders, all-or-none orders, minimum quantity orders, multi-class spread
orders, not held orders, RTH Only orders, SPX combo orders, Day orders,
and GTC orders. Additionally, the Exchange may make complex orders,
including security future-option orders, and stock-option orders
available for PAR routing and manual handling, as it consistent with
current functionality.\28\
---------------------------------------------------------------------------

    \28\ See Rules 6.12A(c) and 6.53 (in the current Rulebook)
(which provide that certain order types in Rule 6.53 are eligible
for routing to PAR, and that the Exchange may determine which order
types in Rule 6.53 are available on a class and system (including
PAR) basis). In a separate rule filing, the Exchange intends to
adopt rules regarding the trading of complex orders following the
technology migration.
---------------------------------------------------------------------------

    The proposed rule change adopts Rule 5.84 in the shell Rulebook to
provide that open outcry trading on the Exchange's trading floor may
begin in a series after it opens for electronic trading pursuant to
Rule 5.31 of the shell Rulebook. This is consistent with when open
outcry trading may begin today, and the proposed rule change merely
codifies this in the Rules.
    The proposed rule change moves the following Rules (and deletes
portions of those Rules that will no longer be applicable following the
System migration) from the current Rulebook that apply solely to the
Exchange's trading floor and open outcry trading into Chapter 5,
Section G of the shell Rulebook. The Exchange believes it will benefit
investors if all Rules that only relate to this type of trading are
contained in the same portion of the Rulebook. Other than certain
changes described below, the proposed rule change makes only
nonsubstantive changes to these Rules, including to update paragraph
lettering and numbering, make grammatical changes and make the language
more plain English, change times from Central Time to Eastern Time (to
be consistent with the Rule provisions in the shell Rulebook),\29\
delete provisions regarding the announcement of Exchange determinations
by Regulatory Circular (as those will occur pursuant to Rule 1.5 in the
shell Rulebook), add paragraph headings, simplify certain provisions,
update cross-references, and incorporate defined terms.
---------------------------------------------------------------------------

    \29\ See Rule 1.6 in the shell Rulebook.
---------------------------------------------------------------------------

     Current Rule 6.9 regarding facilitated and solicited
transactions moves to proposed Rule 5.86.\30\ The proposed rule change
deletes a reference to an old regulatory circular regarding front-
running prohibitions, which are considered a violation of current Rule
4.1 (which the Exchange proposes to move to Rule 8.1 in the shell
Rulebook). The Exchange intends to re-issue the circular and add
certain portions to the Rules as appropriate, in a separate rule
filing. Additionally, current Rule 6.9(f) requires orders that result
from a solicitation to be marked in a manner and form prescribed by the
Exchange. The Exchange no longer intends to impose that requirement.
Whether an order is solicited is only relevant with respect to how it
is represented on the trading floor; however, the Exchange does not
incorporate any such markings into its surveillances and thus does not
believe it is necessary to require a systematic marking.
---------------------------------------------------------------------------

    \30\ Proposed Rule 5.86 is renamed ``Facilitated and Solicited
Transactions.'' While current Rule 6.9 is called ``Solicited
Transactions,'' pursuant to current Rule 6.9, Interpretation and
Policy .01, the rule applies to solicited orders, including
facilitation orders. The Exchange believes updating the name of the
Rule will clarify its application to investors.
---------------------------------------------------------------------------

     Current Rules 6.12(a)(1) and 6.13(b) regarding how the
System handles incoming orders (whether they automatically execute at
one price or multiple prices, rest on the Book, or route to PAR for
manual handling) to proposed Rule 5.8.\31\ The proposed rule change
deletes language regarding the Exchange designating an eligible order
size, type, origin code, or classes for which automatic execution is
available from Rule 6.13(a) and(b)(i) and (ii).\32\ Orders in all
classes of all sizes and for all origin codes may execute automatically
upon entry, subject to a User's instructions (as discussed above,
orders with certain Order Instructions and Times-in-Force are only
eligible to route to PAR may not automatically execute upon entry or
rest in the Book). The proposed rule change also deletes current Rule
6.13(c) regarding users that may access the System for automatic
execution of orders. Rule 5.5 describes how Users (including order
entry firms) \33\ will be able to establish access and connectivity to
the System following the technology migration to enter orders both for
electronic processing and manual handling. The remainder of Rule
6.13(c) describes requirements that apply to all Users (such as
complying with all Rules), and thus the proposed rule change deletes
those redundant provisions. For example, all TPHs must comply with the
Exchange's trading rules and procedures, and all features of automatic
execution on the Exchange's System are available to the public in the

Exchange's Rules and other documents available on the Exchange's
website.\34\ Other Rules (for example, Rule 4.24 regarding supervision
and Rule 9.8 regarding supervision of accounts) require TPHs to develop
and maintain adequate procedures and controls over their business
activities, which would include order entry.\35\
---------------------------------------------------------------------------

    \31\ The proposed rule change also renumbers Rule 5.8 in the
shell Rulebook (regarding order exposure) to Rule 5.9 in the shell
Rulebook.
    \32\ The proposed rule change also deletes current Rule
6.13(b)(vii), as it is redundant of language in Rule 5.32 of the
shell Rulebook.
    \33\ Order entry firms is currently defined in Rule 1.1 in the
shell Rulebook, so the proposed rule change deletes provisions in
Rule 6.13 regarding the functions of an order entry firm. The
proposed rule change also updates the definition of order entry firm
in Rule 1.1 of the shell Rulebook to eliminate the cross-reference
to Rule 3.51, as the Exchange does not anticipate having a separate
rule regarding order entry firms. This is consistent with the
definition of order entry firms in the rules of Cboe Affiliated
Exchanges. See, e.g., C2 Rule 1.1 and EDGX Rule 16.1.
    \34\ Current Chapter IX (which the Exchange intends to move to
Chapter 9 of the shell Rulebook) describes requirements for firms
that do business with the public.
    \35\ Additionally, Rule 15c3-5 under the Exchange Act requires a
broker-dealer with market access, or that provides any person with
access to an exchange, to establish, document, and maintain a system
of risk management controls and supervisory procedures reasonably
designed to manage the financial, regulatory, and other risks, such
as legal and operational risks, related to market access, which
would include order entry.
---------------------------------------------------------------------------

     Current Rule 6.12A regarding PAR moves to Rule 5.82. The
proposed rule change deletes the portion of the current introductory
paragraph in current Rule 6.12A regarding the order handling system
(which, as discussed above, is being replaced by Order Instructions).
The proposed rule change adds to current Rule 6.12A(b)(ii) (proposed
Rule 5.82(c)(2)) that Trading Permit Holders may use PAR to trade
against Priority Customer orders and other orders resting at the best
available price in the Book, which is consistent with current
functionality and open outcry priority and allocation rules (current
Rule 6.45(b), which the proposed Rule change moves to Rule 5.85(a), as
discussed below). The proposed rule change is merely adding this detail
to the Rules. Additionally, the proposed rule change adds proposed Rule
5.82(c)(4) to provide that Trading Permit Holders may route orders to
another PAR workstation. This is similar to current Rule 6.12(a)(2),
which provides orders may be routed back and forth between order
management terminals and PAR workstations. As noted above, the Exchange
will no longer offer order management terminals, and so the Exchange
will provide the same service for order routing between PAR
workstations (which are merely a different type of order management
terminals). As discussed above, the Exchange will no longer have an
order handling system, and Order Instructions will determine whether an
order may route to PAR. As discussed above, only orders not eligible
for electronic processing (as specified in the proposed Rules) may be
routed to PAR. Proposed Rule 5.83 sets forth whether a specific order
type is eligible to route to PAR, as described above. The proposed rule
change deletes current Rule 6.12A(d), as the proposed rule change
describes PAR functionality as of the System migration. The Exchange
will continue to issue additional notices or technical specifications
regarding the operation of PAR workstations.\36\
---------------------------------------------------------------------------

    \36\ See, e.g., technical specifications on the Exchange's
website at http://markets.cboe.com/us/options/support/technical/.
---------------------------------------------------------------------------

     Current Rule 6.12B regarding PAR Officials moves to
proposed Rule 5.90. The Exchange notes proposed Rule 5.90(b)(1)(C)
deletes references to market-if-touched, market-on-close (which
includes limit-on-close pursuant to current Rule 6.53), stop, stop-
limit, fill-or-kill, and immediate-or-cancel orders). Currently, those
orders are excluded from a PAR Official's display obligation. However,
as discussed above, these orders will no longer be eligible to route to
PAR, and thus it is no longer necessary to reference them.
     Current Rule 6.20(a) through (d) regarding admission to
and conduct on the Exchange's trading floor moves to proposed Rule
5.80. The proposed rule change deletes the last sentence of current
Rule 6.20(d) regarding quote terminals on the trading floor, as quote
terminals are obsolete and no longer used. Current Rule 6.20(e)
regarding TPH education moves to proposed Rule 3.12, as it relates to a
TPH's registration requirements rather than open outcry trading. The
Exchange notes it deletes the provision from current Rule 6.20(e)
(proposed Rule 3.12) that states any action taken by Floor Officials
under that provision does not preclude further disciplinary action
under current Chapter XVII (proposed Chapter 13) under the Rules. There
is no action that Floor Officials may take with respect to TPH
educational classes, and the Exchange may take action pursuant to
current Chapter XVII (proposed Chapter 13), therefore this provision is
unnecessary.
     Current Rule 6.23 regarding equipment and communications
on the Exchange's trading floor moves to proposed Rule 5.81.
     Current Rules 6.41, Interpretation and Policy .01 and
24.8, Interpretation and Policy .01 regarding complex orders submitted
with a cash price move to proposed Rule 5.85(f). The proposed rule
change adds some detail regarding the submission and execution of these
orders, but does not amend how these orders may be represented or
execute on the Exchange's trading floor.\37\ These details regarding
the representation of orders with cash prices was set forth in a
previous rule filing submitted to the Commission.\38\
---------------------------------------------------------------------------

    \37\ The proposed rule change also adds an applicable cross-
reference to Rule 5.3(e) of the shell Rulebook regarding bids and
offers and updates subparagraph numbering as applicable.
    \38\ See Securities Exchange Act Release No. 74551 (March 20,
2015), 80 FR 16046 (March 26, 2015) (SR-CBOE-2015-010).
---------------------------------------------------------------------------

     Current Rule 6.45(b) regarding the priority and allocation
of bids and offers in open outcry moves to proposed Rule 5.85(a) and
(b). The proposed rule change also incorporates the on-floor DPM or LMM
participation entitlement into the open outcry priority provisions,
which is consistent with current Rules \39\--the proposed rule change
merely clarifies where this priority overlay applies within the
allocation and priority Rules for open outcry trades. The proposed rule
change makes no change to how the on-floor participation entitlement is
applied.\40\ Current Rule 6.45, Interpretation and Policy .06 regarding
the routing of the stock component of a stock-option order represented
in open outcry moves to proposed Rule 5.85(b). The proposed rule change
current Rule 6.45(b)(iii), which states the open outcry allocation and
priority provisions are subject to current Rules 8.7, Interpretation
and Policy .02 and Rule 8.51. Those Rules relate to Market-Maker
obligations, to which Market-Makers are always subject, and thus the
Exchange does not believe it is necessary to include a reference to
those rules here.
---------------------------------------------------------------------------

    \39\ See current Rules 8.15(d) and 8.87. As is the case for
electronic trading (see Rule 5.32 in the shell Rulebook), the LMM/
DPM participation entitlement may only be applied after Priority
Customer orders at the same price trade.
    \40\ LMMs and DPMs will continue to only be able to receive a
participation entitlement if they have an appointment in the
relevant class, and if they have a quote at the best price.
Additionally, LMMs and DPMs may not be allocated a total quantity of
contracts greater than the quantity that they quote at the best
price.
---------------------------------------------------------------------------

     Current Rule 6.47 regarding split-price priority (which
only applies to open outcry trading) moves to proposed Rule 5.85(c).
     Current Rule 6.56 regarding compression forums moves to
proposed Rule 5.88.
     Current Rule 6.57 regarding risk-weighted asset (RWA)
transactions moves to proposed Rule 5.89.
     Current Rule 6.73 regarding Floor Broker responsibilities
moves to proposed Rule 5.91(a) and (b). Current Rule 6.73(c) is
duplicative of language in current Rule 6.75 (which the proposed rule
change moves to proposed Rule 5.91(c)), and thus the proposed rule
change deletes the redundant language. The proposed rule change deletes
current Rule 6.73(b), because the Exchange will no longer have market-
if-touched orders following the System migration, and, as discussed

above, market-on-close (which includes limit-on-close pursuant to
current Rule 6.53), stop, and stop limit orders will no longer be
eligible to route to PAR, and thus will not be available for Floor
Broker handling.\41\ The proposed rule change amends current Rule 6.73,
Interpretation and Policy .01 (which moves to proposed Rule 5.91(a)(1))
to state a Floor Broker must due diligence in handling and executing an
order by announcing to the trading crowd a request for quotes, rather
than making all persons in the trading crowd aware of a request for
quotes. While a Floor Broker must use best efforts to make as many
people in the crowd aware of a request for quotes, given the size and
activity (and thus, noise volume) in certain trading crowds, a Floor
Broker cannot guarantee that all persons in a trading crowd will hear
and thus be aware of a request for quotes. Additionally, the proposed
rule change deletes references in current Rule 6.73, Interpretations
and Policies .03 and .04 to the dissemination the trading crowd market
quote and a related obligation, as trading crowd quotes are no longer
disseminated. Rule 8.51 regarding firm quote obligations (which the
Exchange intends to move to Rule 5.52 in the shell Rulebook) applies to
all orders and quotes on the Exchange.
---------------------------------------------------------------------------

    \41\ Similarly, the Exchange deletes current Rules 21.17 and
23.12 (regarding the handling by Floor Brokers of contingency orders
for government securities options and interest rate options (which
the Exchange does not currently list for trading)), as those rules
replace current Rule 6.73(b), which the proposed rule change
deletes. Floor Brokers will no longer be able to handle any of these
contingency orders.
---------------------------------------------------------------------------

     Current Rule 6.74 regarding crossing orders in open outcry
moves to proposed Rule 5.87.
     Current Rule 6.75 regarding discretionary transactions
moves to proposed Rule 5.91(c). The proposed rule change moves all
rules regarding Floor Broker responsibilities into a single proposed
Rule 5.91.\42\
---------------------------------------------------------------------------

    \42\ The proposed rule change also deletes Rules 6.76 and 6.76A
from the current Rulebook, as they were previously deleted.
---------------------------------------------------------------------------

     Current Rule 6.79 regarding Floor Broker practices moves
to proposed Rule 5.91(d) through (j).\43\ The proposed rule change
deletes the portion of current Rule 6.79 that restates Exchange Act
requirements regarding record retention requirements for Floor Brokers,
as the Rule states a Floor Broker must comply with the Exchange Act and
Exchange Rules regarding documentation and record-keeping, making
restatement of the Exchange Act provisions redundant and unnecessary.
---------------------------------------------------------------------------

    \43\ These include practices related to the liquidation or
reduction of error account positions, erroneously executed orders,
lost or misplaced market orders, legging multi-part orders, print-
throughs, stopping orders, and documentation of errors and
recordkeeping requirements.
---------------------------------------------------------------------------

     Current Rule 24.19(a) and (b) regarding the definition of
a multi-class spread order moves to proposed Rule 5.6(c), so that all
Order Instructions that will be available on the Exchange are included
in the same place within the Rules. The proposed rule change adds to
the Rules the current combinations of broad-based index options the
Exchange has determined may trade as multi-class spread orders.\44\
Current Rule 24.19(c) regarding how a multi-class spread order may
execute moves to proposed Rule 5.85(d), so that all provisions
regarding how orders may trade in open outcry are included in the same
place within the Rules. The proposed rule change makes no changes
regarding how multi-class spreads may execute on the Exchange.
---------------------------------------------------------------------------

    \44\ See Cboe Options Regulatory Circular RG16-136 (August 11,
2016).
---------------------------------------------------------------------------

     Current Rule 24.20(a) and Interpretation and Policy .01
regarding the definition of an SPX Combo Order move to proposed Rule
5.6(c), so that all Order Instructions that will be available on the
Exchange are included in the same place within the Rules. Current Rule
24.20(b) regarding how an SPX Combo Order may execute moves to proposed
Rule 5.85(e), so that all provisions regarding how orders may trade in
open outcry are included in the same place within the Rules. The
proposed rule change makes no changes regarding how SPX Combo Orders
may execute on the Exchange. The proposed rule change deletes the
requirement that TPHs apply an indicator one SPX Combo, as the new
``SPX Combo'' order instruction replaces the need for a separate
indictor, as it will be the only order type that may execute pursuant
to the procedures set forth in current Rule 24.20 (proposed Rule
5.85(e)).
     Current Rule 24.21 regarding crowd space dispute
resolution procedures moves to proposed Rule 5.93. The current rule
states the Exchange may apply these procedures to OEX, SPX, DJX, DIA
and any index option not located at a station shared with equity
options. Currently, these procedures apply only to the SPX and VIX
index option crowds, so proposed Rule 5.93 explicitly states these
procedures will only apply to spaces within those trading crowds.
     Current Rule 24.22 regarding the allocation of trading
spaces moves to proposed Rule 5.92.
     Current Rule 24A.6 regarding a Floor Broker's discretion
with respect to the number of FLEX contracts it may transact moves to
proposed Rule 5.91(c)(2)(B), so that all provisions regarding Floor
Broker discretion are contained within the same part of the Rules.
    The proposed rule change also amends Rule 5.32 of the shell
Rulebook to delete three inadvertent references to the ``EDGX Options
Book'' and instead refers to the term ``Book,'' which is defined in
Rule 1.1 of the shell Rulebook as the electronic book of simple orders
and quotes maintained by the System, which single book is used during
both the RTH and GTH trading sessions. In addition, the proposed rule
change corrects an error in the paragraph number in Rule 5.32(b), which
currently has two subparagraphs labeled as (2). These proposed changes
make no changes to any functionality--they merely correct errors in the
shell Rulebook.
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.\45\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \46\ 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) \47\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------

    \45\ 15 U.S.C. 78f(b).
    \46\ 15 U.S.C. 78f(b)(5).
    \47\ Id.
---------------------------------------------------------------------------

    In particular, the proposed elimination of the Exchange's order
handling system, which the Exchange proposes to replace with Order
Instructions that will dictate whether an order will route for
electronic processing or manual handling, as well as specific Rules
regarding eligibility of Order Instructions and Times-in-Force for
electronic processing or manual handling (or both) will benefit
investors

by providing them with more control regarding how their orders will be
processed upon submission to the Exchange. The Exchange believes the
proposed rule change simplifies the process pursuant to which the
System handles order, and will provide Users with more certainty
regarding how the Exchange will process their orders. The Exchange
notes the proposed elimination of order management terminals will have
minimal impact on Users on the trading floor, as all Floor Brokers use
PAR workstations (which provide similar order management tools as order
management terminals). The Exchange believes this will further simplify
manual handling of orders on the Exchange's trading floor.
    The proposed rule change also benefits investors by adding
transparency regarding which orders are eligible for electronic
processing, and which orders are eligible for manual handling. The
Exchange currently has authority pursuant to Rules 6.12A and 6.53 in
the current Rulebook to determine which orders are eligible for
electronic processing and PAR routing, and the proposed rule change is
consistent with that authority.
    The proposed rule change regarding the definition of a complex
order will remove impediments to and perfect the mechanism of a free
and open market and a national market system, and, in general, to
protect investors. Market participants may determine that investment
and hedging strategies within the specified ratio are appropriate for
their investment purposes and refer to submit those orders for
execution. The Exchange believes it will benefit market participants if
they can define the investment and hedging strategies that may help
them achieve their desired investment results. As discussed above, the
proposed rule change has no impact on which complex orders may trade in
permissible complex order increments or receive complex order priority
in open outcry trading--the proposed rule change merely expands the
potential strategies with ratios of greater than or equal to one-to-
three and less than or equal to three-to-one that may be executed on
the Exchange (electronically or in open outcry), trade in complex order
increments permissible in Rule 5.4 in the shell Rulebook, and receive
complex order priority in open outcry trading in Rule 5.85(b) in the
shell Rulebook (as proposed). The proposed rule change also benefits
investors by clarifying that a complex order (and its legs) with a
ratio less than one-to-three or greater than three-to-one is only
eligible for manual handling and open outcry trading in the standard
increment for the class, and may not receive complex order priority in
open outcry trading. Additionally, other options exchanges have similar
definitions of complex orders.\48\
---------------------------------------------------------------------------

    \48\ See, e.g., BOX Exchange LLC (``BOX'') Rule 7600(a)(4); and
Nasdaq Phlx, LLC (``Phlx'') Rule 1098(a)(i) and (c)(iii).
---------------------------------------------------------------------------

    The Exchange believes the proposed reorganization of Rules to move
all Rules that relate solely to open outcry trading on the Exchange's
trading floor will also benefit investors and remove impediments to and
perfect the mechanism of a free and open market and a national market
system. The majority of the changes in the proposed rule change move
rules from the current Rulebook to the shell Rulebook with no
substantive changes. The proposed nonsubstantive changes to the Rules
provide additional detail in the rule regarding current functionality,
make the Rules more plain English, update cross-references and
paragraph lettering and numbering, delete duplicative language, and
simplify rule language, which all benefit investors. The Exchange
believes these changes and transparency will protect investors, as they
provide more clarity and reduce complexity within the Rules.

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 the proposed rule change will impose any burden on intramarket
competition, as they will apply to all Users in the same manner. All
Users may submit orders for electronic processing or manual handling
(including complex orders as proposed) as eligible pursuant to the
proposed rule change, and the System will handle orders from Users in
the same manner. Submission of orders for electronic processing or
manual handling will be within Users' discretion. The Exchange does not
believe 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 only impacts how the System will route
orders for electronic processing or manual trading on the Exchange, but
will have no impact on how orders will be executed on the Exchange.
Regarding the expanded definition of complex orders that may be
submitted to the Exchange for electronic processing, the Exchange notes
other options exchanges have similar definitions of complex orders.\49\
The proposed nonsubstantive changes are not intended to have any impact
on competition, as they do not impact trading on Cboe Options.
---------------------------------------------------------------------------

    \49\ See, e.g., BOX Rule 7600(a)(4); and Phlx Rule 1098(a)(i)
and (c)(iii).
---------------------------------------------------------------------------

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 \50\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\51\ 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.
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    \50\ 15 U.S.C. 78s(b)(3)(A).
    \51\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's 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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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_ADDRESS>Please include
File Number SR-CBOE-2019-042 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-2019-042. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-CBOE-2019-042 and should be submitted on
or before September 24, 2019.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\52\
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    \52\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-18870 Filed 8-30-19; 8:45 am]
 BILLING CODE 8011-01-P