[Federal Register Volume 77, Number 190 (Monday, October 1, 2012)]
[Notices]
[Pages 60010-60012]
[FR Doc No: 2012-24143]

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

DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

[Docket No. FMCSA-2004-17984; FMCSA-2006-24783; FMCSA-2008-0231; FMCSA-
2008-0174; FMCSA-2010-0161; FMCSA-2010-0187]

Qualification of Drivers; Exemption Applications; Vision

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.

ACTION: Notice of renewal of exemptions; request for comments.

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

SUMMARY: FMCSA announces its decision to renew the exemptions from the
vision requirement in the Federal Motor Carrier Safety Regulations for
26 individuals. FMCSA has statutory authority to exempt individuals
from the vision requirement if the exemptions granted will not
compromise safety. The Agency has concluded that granting these
exemption renewals will provide a level of safety that is equivalent to
or greater than the level of safety maintained without the exemptions
for these commercial motor vehicle (CMV) drivers.

DATES: This decision is effective October 15, 2012. Comments must be
received on or before October 31, 2012.

ADDRESSES: You may submit comments bearing the Federal Docket
Management System (FDMS) numbers: Docket No. [Docket No. FMCSA-2004-
17984; FMCSA-2006-24783; FMCSA-2008-0231; FMCSA-2008-0174; FMCSA-2010-
0161; FMCSA-2010-0187], using any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the

on-line instructions for submitting comments.
     Mail: Docket Management Facility; U.S. Department of
Transportation, 1200 New Jersey Avenue SE., West Building Ground Floor,
Room W12-140, Washington, DC 20590-0001.
     Hand Delivery or Courier: West Building Ground Floor, Room
W12-140, 1200 New Jersey Avenue SE., Washington, DC, between 9 a.m. and
5 p.m., Monday through Friday, except Federal Holidays.
     Fax: 1-202-493-2251.
    Instructions: Each submission must include the Agency name and the
docket number for this notice. Note that DOT posts all comments
received without change to http://www.regulations.gov, including any
personal information included in a comment. Please see the Privacy Act
heading below.
    Docket: For access to the docket to read background documents or
comments, go to http://www.regulations.gov at any time or Room W12-140
on the ground level of the West Building, 1200 New Jersey Avenue SE.,
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays. The Federal Docket Management System (FDMS) is
available 24 hours each day, 365 days each year. If you want
acknowledgment that we received your comments, please include a self-
addressed, stamped envelope or postcard or print the acknowledgement
page that appears after submitting comments on-line.
    Privacy Act: Anyone may search the electronic form of all comments
received into any of our dockets by the name of the individual
submitting the comment (or of the person signing the comment, if
submitted on behalf of an association, business, labor union, etc.).
You may review DOT's Privacy Act Statement for the FDMS published in
the Federal Register on January 17, 2008 (73 FR 3316), or you may visit
http://edocket.access.gpo.gov/2008/pdf/E8-785.pdf.

FOR FURTHER INFORMATION CONTACT: Elaine M. Papp, Chief, Medical
Programs Division,<PHONE_NUMBER><EMAIL_ADDRESS>FMCSA,
Department of Transportation, 1200 New Jersey Avenue SE., Room W64-224,
Washington, DC 20590-0001. Office hours are from 8:30 a.m. to 5 p.m.,
Monday through Friday, except Federal holidays.

SUPPLEMENTARY INFORMATION:

Background

    Under 49 U.S.C. 31136(e) and 31315, FMCSA may renew an exemption
from the vision requirements in 49 CFR 391.41(b)(10), which applies to
drivers of CMVs in interstate commerce, for a two-year period if it
finds ``such exemption would likely achieve a level of safety that is
equivalent to or greater than the level that would be achieved absent
such exemption.'' The procedures for requesting an exemption (including
renewals) are set out in 49 CFR part 381.

Exemption Decision

    This notice addresses 26 individuals who have requested renewal of
their exemptions in accordance with FMCSA procedures. FMCSA has
evaluated these 26 applications for renewal on their merits and decided
to extend each exemption for a renewable two-year period. They are:

Robert L. Aurandt (PA)
Harry R. Brewer (TN)
Julian Collins (GA)
Ivory Davis (MD)
James G. Ethridge (TX)
Joseph H. Fowler (CO)
Edward P. Hynes II (VA)
Richard L. Kelly (MN)
Theodore Kirby (MD)
Kelly R. Konesky (AZ)
Joseph A. Leigh, Jr. (NC)
John L. Lethcoe (NC)
Gregory T. Lingard (MT)
Leonardo Lopez, Jr. (NJ)
Hollis J. Martin (AL)
Ronald J. McTague (OH)
Kevin C. Palmer (OR)
Charles O. Rhodes (FL)
Gordon G. Roth (KS)
Benito Saldana (TX)
Julius Simmons, Jr. (SC)
Richard T. Traigle (LA)
Carl V. Wheeler (NC)
Stephen B. Whitt (NC)
Darrell F. Woosley (IL)
Jason M. Zaragoza (CA)

    The exemptions are extended subject to the following conditions:
(1) That each individual has a physical examination every year (a) by
an ophthalmologist or optometrist who attests that the vision in the
better eye continues to meet the requirements in 49 CFR 391.41(b)(10),
and (b) by a medical examiner who attests that the individual is
otherwise physically qualified under 49 CFR 391.41; (2) that each
individual provides a copy of the ophthalmologist's or optometrist's
report to the medical examiner at the time of the annual medical
examination; and (3) that each individual provide a copy of the annual
medical certification to the employer for retention in the driver's
qualification file and retains a copy of the certification on his/her
person while driving for presentation to a duly authorized Federal,
State, or local enforcement official. Each exemption will be valid for
two years unless rescinded earlier by FMCSA. The exemption will be
rescinded if: (1) The person fails to comply with the terms and
conditions of the exemption; (2) the exemption has resulted in a lower
level of safety than was maintained before it was granted; or (3)
continuation of the exemption would not be consistent with the goals
and objectives of 49 U.S.C. 31136(e) and 31315.

Basis for Renewing Exemptions

    Under 49 U.S.C. 31315(b)(1), an exemption may be granted for no
longer than two years from its approval date and may be renewed upon
application for additional two year periods. In accordance with 49
U.S.C. 31136(e) and 31315, each of the 26 applicants has satisfied the
entry conditions for obtaining an exemption from the vision
requirements (69 FR 33997; 69 FR 61292; 71 FR 32183; 71 FR 41310; 71 FR
55820; 73 FR 38497; 73 FR 48271; 73 FR 46973; 73 FR 54888; 73 FR 65009;
75 FR 39725; 75 FR 44050; 74 FR 47883; 75 FR 52063; 75 FR 57105; 75 FR
61833; 75 FR 63257). Each of these 26 applicants has requested renewal
of the exemption and has submitted evidence showing that the vision in
the better eye continues to meet the requirement specified at 49 CFR
391.41(b)(10) and that the vision impairment is stable. In addition, a
review of each record of safety while driving with the respective
vision deficiencies over the past two years indicates each applicant
continues to meet the vision exemption requirements. These factors
provide an adequate basis for predicting each driver's ability to
continue to drive safely in interstate commerce. Therefore, FMCSA
concludes that extending the exemption for each renewal applicant for a
period of two years is likely to achieve a level of safety equal to
that existing without the exemption.

Request for Comments

    FMCSA will review comments received at any time concerning a
particular driver's safety record and determine if the continuation of
the exemption is consistent with the requirements at 49 U.S.C. 31136(e)
and 31315. However, FMCSA requests that interested parties with
specific data concerning the safety records of these drivers submit
comments by October 31, 2012.
    FMCSA believes that the requirements for a renewal of an exemption
under 49 U.S.C. 31136(e) and 31315 can be satisfied by initially

granting the renewal and then requesting and evaluating, if needed,
subsequent comments submitted by interested parties. As indicated
above, the Agency previously published notices of final disposition
announcing its decision to exempt these 26 individuals from the vision
requirement in 49 CFR 391.41(b)(10). The final decision to grant an
exemption to each of these individuals was made on the merits of each
case and made only after careful consideration of the comments received
to its notices of applications. The notices of applications stated in
detail the qualifications, experience, and medical condition of each
applicant for an exemption from the vision requirements. That
information is available by consulting the above cited Federal Register
publications.
    Interested parties or organizations possessing information that
would otherwise show that any, or all, of these drivers are not
currently achieving the statutory level of safety should immediately
notify FMCSA. The Agency will evaluate any adverse evidence submitted
and, if safety is being compromised or if continuation of the exemption
would not be consistent with the goals and objectives of 49 U.S.C.
31136(e) and 31315, FMCSA will take immediate steps to revoke the
exemption of a driver.

    Issued on: September 21, 2012.
Larry W. Minor,
Associate Administrator for Policy.
[FR Doc. 2012-24143 Filed 9-28-12; 8:45 am]
BILLING CODE 4910-EX-P


[Federal Register Volume 84, Number 141 (Tuesday, July 23, 2019)]
[Notices]
[Pages 35450-35452]
From the Federal Register Online via the Government Publishing Office [http://www.gpo.gov/]
[FR Doc No: 2019-15609]

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

DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

[Docket No. FMCSA-2018-0278]

Agency Information Collection Activities; New Information
Collection: Crime Prevention for Truckers

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.

ACTION: Notice and request for comments.

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

SUMMARY: In accordance with the Paperwork Reduction Act of 1995, the
Federal Motor Carrier Safety Administration (FMCSA) announces its plan
to submit the Information Collection Request (ICR) described below to
the Office of Management and Budget (OMB) for its review and approval
and invites public comment. This request, titled ``Crime Prevention for
Truckers,'' will allow for a study to understand the prevalence,
seriousness, and nature of the problem of harassment and assaults
against minority and female truckers.

DATES: We must receive your comments on or before September 23, 2019.

ADDRESSES: You may submit comments identified by Federal Docket
Management System (FDMS) Docket Number FMCSA-2018-0278 using any of the
following methods:
     Federal eRulemaking Portal: http://www.regulations.gov/.
Follow the online instructions for submitting comments.
     Fax: 1-202-493-2251.
     Mail: Docket Operations; U.S. Department of
Transportation, 1200 New Jersey Avenue SE, West Building, Ground Floor,
Room W12-140, Washington, DC 20590-0001.
     Hand Delivery or Courier: U.S. Department of
Transportation, 1200 New Jersey Avenue SE, West Building, Ground Floor,
Room W12-140, Washington, DC 20590-0001 between 9 a.m. and 5 p.m. e.t.,
Monday through Friday, except Federal holidays.
    Instructions: All submissions must include the Agency name and
docket number. For detailed instructions on submitting comments, see
the Public Participation heading below. Note that all comments received
will be posted without change to http://www.regulations.gov/, including
any personal information provided. Please see the Privacy Act heading
below.
    Docket: For access to the docket to read background documents or
comments received, go to http://www.regulations.gov/, and follow the
online instructions for accessing the dockets, or go to the street
address listed above.
    Privacy Act: In accordance with 5 U.S.C. 553(c), DOT solicits
comments from the public to better inform its rulemaking process. DOT
posts these comments, without edit, including any personal information
the commenter provides, to http://www.regulations.gov/, as described in the
system of records notice (DOT/ALL-14 FDMS), which can be reviewed at
www.dot.gov/privacy.
    Public Participation: The Federal eRulemaking Portal is available
24 hours each day, 365 days each year. You

can obtain electronic submission and retrieval help and guidelines
under the ``help'' section of the Federal eRulemaking Portal website.
If you want us to notify you that we received your comments, please
include a self-addressed, stamped envelope or postcard, or print the
acknowledgement page that appears after submitting comments online.
Comments received after the comment closing date will be included in
the docket and will be considered to the extent practicable.

FOR FURTHER INFORMATION CONTACT: Jeff Loftus, Division Chief,
Technology Division, Department of Transportation, FMCSA, West
Building, 6th Floor, 1200 New Jersey Avenue SE, Washington, DC 20590.
Telephone:<PHONE_NUMBER>; email: [email protected].

SUPPLEMENTARY INFORMATION:
    Background: FMCSA has accumulated evidence, both documentary and
anecdotal, for a serious pattern of harassment- and assault-related
crimes against female and minority male truckers. For example, Security
Journal, in a 2006 article titled ``Workplace Violence against Female
Long-haul Truckers,'' reported that 42 percent of female long-haul
truckers reported experiencing one or more types of workplace violence.
USA Today, in a 2017 article titled ``Rigged,'' gave accounts of
repeated harassment of minority male truckers. Currently, FMCSA does
not provide materials or training to truckers, including minority and
female truckers, on how to protect themselves from being stalked,
harassed, assaulted, or robbed. Before effective solutions for
preventing or reducing these crimes against female and minority
truckers can be developed and implemented, FMCSA must understand the
prevalence, seriousness, and nature of the problem of harassment and
assaults against truckers. Currently, there is insufficient data. The
frequency and number of harassment- and assault-related crimes
occurring, the portion that are unreported, and reasons for
underreporting are unknown.
    The purpose of this research study is to gather information to
answer these questions, to understand how serious the problem is, and
to report it to FMCSA so the Agency can decide on further options for
evaluation and action. FMCSA needs to explore and validate the problem
of harassment- and assault-related crimes, especially against female
and minority male truckers for two reasons. First, there seems to be a
perception among these subpopulations of truckers that they are more
vulnerable than others. Second, there is a critical shortage of
truckers, and helping these subpopulations of truckers protect
themselves from crimes could draw more truckers from these
subpopulations, while stemming turnover, to alleviate the shortage.
    FMCSA has contracted with Battelle to create and execute a survey
of truck drivers to gather this information. This exploratory survey
will be limited in scale and scope. Quantitative and qualitative
analysis of the data will help the Agency to understand the nature and
extent of the problem and begin to formulate an approach to reducing
it. The results will not be used for rulemaking.
    The survey of professional truck drivers will be limited to female
and minority male drivers. The survey will ask whether the drivers have
experienced race- or gender-related harassment or crimes on the job. If
the driver has had such an experience, the survey will ask follow-up
questions on where and when the incidents occurred, any information the
respondent knows about the perpetrator, and whether the respondent
reported the incident. The survey will be anonymous. None of the
questions ask for information that could personally identify the
respondent or any perpetrators involved. Some respondents will take the
survey online, and others will take it in the form of an in-person
interview. Identical questions will be asked of all drivers, but
answers from males and females will be analyzed separately.
    A maximum of 440 males and 440 females will be included in the
information collection. The information will be collected through a
combination of an online survey and in-person interviews. Approximately
160 in-person interviews will be completed, 80 females and 80 minority
males. The balance will take the survey electronically. Some
individuals may be eligible to participate in the survey but will not
have had any recent experience of harassment or assault. These
individuals will be included in the final results for calculation of
prevalence. The total number of respondents targeted for those who
experienced some sort of harassment or assault will be 400 in each
group. If 400 targeted individuals are reached before the overall cap
of 440 respondents, data collection will be stopped for that group.
Individuals who are screened but fail to qualify as females and
minority males, or with other criteria such as not being active
drivers, will not be included in the interview counts, though a
tabulation of the number of such contacts and reason for their
disqualification will be reported to better understand resource needs
and burden in future data collection efforts of this type. A $25
incentive will be given to eligible respondents to the in-person
interview or the online survey. For respondents to be eligible and to
receive the incentive, they must report that they are a female or a
minority male who has driven a truck professionally in the past 2 years
and complete the survey--at least through the initial questions of what
events, if any, they have experienced.
    Battelle statisticians experienced in surveys and in analyzing data
for FMCSA will execute the data analysis plan. Findings will be
presented in a report that will be made available on the Agency's
website so that interested stakeholders and the general public will be
aware of the findings. Battelle is required to deliver a public-use
dataset at the conclusion of the project. By understanding the nature
and prevalence of crimes against truckers, FMCSA will be able to
formulate and promote programs to address the problem. The report may
be useful to law enforcement personnel, motor carriers, truck drivers,
operators of private truck stops, and others interested in addressing
the situation.
    If study findings indicate a significant problem that merits
action, FMCSA may consider developing training or outreach materials to
help truckers protect themselves from crime or harassment. Such
training or outreach materials could help foster motor carriers'
employee retention efforts and help make the truck driving profession
more attractive to a greater range of people.
    Title: Crime Prevention for Truckers.
    OMB Control Number: 2126-00XX.
    Type of Request: New collection.
    Respondents: Female and minority male truck drivers.
    Estimated Number of Respondents: Maximum of 880 truck drivers [80
respondents reporting no incidents of harassment or crime + 800
respondents reporting one or more incidents of harassment or crime].
    Estimated Time per Response: Varies. [8 minutes for respondents not
reporting incidents of harassment or crime; 20 minutes for respondents
reporting an incident of harassment or crime].
    Expiration Date: This is a new ICR.
    Frequency of Response: Once.
    Estimated Total Annual Burden: 277.3 hours [80 respondents
reporting no incidents x (8 minutes / 60 minutes per hour) + 800
respondents reporting one or more incidents x (20 minutes / 60 minutes
per hour)].
    Public Comments Invited: FMCSA invites comments on any aspect of
this

information collection, including: (1) Whether the proposed collection
is necessary for the performance of FMCSA's functions; (2) the accuracy
of the estimated burden; (3) ways for FMCSA to enhance the quality,
usefulness, and clarity of the collected information; and (4) ways that
the burden could be minimized without reducing the quality of the
collected information. The Agency will summarize or include comments in
the request for OMB's clearance of this information collection.

    Issued under the authority of 49 CFR 1.87 on: July 17, 2019.
Kelly Regal,
Associate Administrator for Office of Research and Information
Technology.
[FR Doc. 2019-15609 Filed 7-22-19; 8:45 am]
BILLING CODE 4910-EX-P


[Federal Register: March 29, 2006 (Volume 71, Number 60)]
[Notices]
[Page 15775-15778]
[DOCID:fr29mr06-139]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53540; File No. SR-Amex-2006-14]

Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
and Amendment Nos. 1 and 2 Thereto Relating to Specialists'
Transactions With Public Customers

March 22, 2006.
    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 February 7, 2006, the American Stock Exchange LLC (``Amex'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by Amex. On March 16, 2006,
the Exchange filed Amendment No. 1 to the proposed rule change.\3\ On
March 17, 2006, the Exchange filed Amendment No. 2 to the proposed rule
change.\4\ The Exchange filed the proposal as a ``non-controversial''
proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act
\5\ and Rule 19b-4(f)(6) thereunder.\6\ The Commission is publishing
this notice to solicit comments on the proposed rule change, as
amended, from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ In Amendment No. 1, the Exchange revised proposed Amex Rule
190, Commentary .07 (iv), to require that a specialist represent to
the Amex that neither the specialist nor his affiliates are making a
market in any of the underlying component securities, currencies, or
commodities of any ETF issued by the sponsor with which the
specialist has entered into a business transaction.
    \4\ In Amendment No. 2, the Exchange made further changes to
proposed Amex Rule 190, Commentary .07 (iv), to apply the
requirement therein to transactions entered into by either
specialist or his member organization or any member, officer,
employee or approved person therein.
    \5\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \6\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend Amex Rule 190 and Section 910 of the
Amex Company Guide to permit business transactions between a specialist
or his member organization, or any member, officer, employee or
approved person therein and the sponsor of any exchange traded fund
(``ETF'') in which the specialist is registered. The text of the
proposed rule

change, as amended, is attached hereto as Exhibit A and is also
available on the Amex Web site http://www.amex.com, at the principal

office of Amex, 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, as
amended, and discussed any comments it received on the proposal. 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 the
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Amex Rule 190 (Specialist's Transactions with Public Customers) and
Section 910 (Relationship with Specialists) of the Amex Company Guide
generally restrict business transactions between a specialist or his
member organization, or any member, officer, employee or approved
person therein (collectively, ``affiliates'') and any company or any
officer, director, or 10% stockholder of a company in whose stock the
specialist is registered. The restriction is intended to ensure that a
specialist or his affiliates do not enter into a material business
relationship with a company in whose security the specialist is
registered, such that the specialist's or his affiliates' status
creates conflicts of interest with respect to the specialist's
affirmative and negative obligations to maintain a fair and orderly
market in the security.
    Currently, Amex Rule 193 provides exemptions from Amex Rule 190(a)
and (b) to an approved person or member organization that is affiliated
with a specialist member organization with respect to business
transactions with issuers. This is due to the fact that the functional
separation required by Amex Rule 193 eliminates conflict of interest
concerns. The Exchange proposes to add an exemption to Amex Rule 190
and Section 910 of the Amex Company Guide that would apply to business
transactions between a specialist or his affiliates and the sponsor of
any ETF in which the specialist is registered. The Commission
previously approved a similar rule filing by the New York Stock
Exchange, Inc. (``NYSE'').\7\
---------------------------------------------------------------------------

    \7\ See Securities Exchange Act Release No. 52838 (November 28,
2005); 70 FR 72320 (December 2, 2005) (SR-NYSE-2005-66).
---------------------------------------------------------------------------

    For the purposes of the proposed rule change, ETFs are Portfolio
Depositary Receipts (as defined in Rule 1000), Index Fund Shares (as
defined in Rule 1000A), Trust Issued Receipts (as defined in Rule 1200)
and derivative instruments based on one or more securities, currencies
or commodities. The Exchange believes that potential conflicts of
interest will be reduced due to the nature of how ETFs are traded.
Since the trading price of an ETF is generally based on the price(s) of
one or more security, commodity, currency or related futures contract
(collectively, ``underlying assets''), the Exchange believes that the
potential for conflicts of interest that might have an undue influence
or impact on the trading price of an ETF will be minimal. The Exchange
also believes that conflict of interest or undue influence concerns
will be further minimized by the fact that the underlying assets of an
ETF are typically traded on a different exchange or market than Amex or
in a different location within Amex.
    The Exchange also believes that the potential for conflicts of
interest that might arise between a specialist or his affiliates and a
sponsor of an ETF will be negligible because the responsibilities of a
sponsor of an ETF are limited to establishing the trust that issues ETF
shares, registering the ETF shares with the SEC, and filing required
periodic reports. Thus, while the ETF sponsor generally oversees the
performance of the trustee of the ETF and the trust's principal service
providers, the trustee is responsible for the day-to-day administration
of the trust.
    The proposed rule change would provide that in order to take
advantage of the exemption the following conditions must be met: (i)
The business transaction may only be entered into with the sponsor of
the ETF and the sponsor may not be involved in the day-to-day
administration of the ETF; (ii) any fee or other compensation paid in
connection with the business transaction to a specialist or his
affiliates must not have any relationship to the trading price or daily
trading volume of the ETF; (iii) the specialist or his affiliate must
notify and provide a full description to the Exchange of any business
transaction or relationship it may have with any sponsor of an ETF in
which the specialist or any of its affiliates is registered; and (iv)
the specialist or his affiliate must make a representation to the
Exchange indicating that the neither the specialist nor his affiliates
are making a market in any of the underlying component securities,
currencies or commodities of any ETF issued by the sponsor with which
such specialist or affiliate has entered into a business transaction.
    The Exchange believes that the above-listed conditions will serve
as an additional layer of protection against conflicts of interest by
diminishing any potential ability for a specialist or his affiliates to
unduly influence trading for their own benefit and any incentive for
such specialist to compromise his specialist obligations in maintaining
fair and orderly markets. The Exchange also believes that such
conditions will help to ensure that the ETF sponsor does not unduly
influence its specialist or his affiliates.
2. Statutory Basis
    The Exchange believes that the proposed rule change, as amended, is
consistent with Section 6(b) of the Act,\8\ in general, and furthers
the objectives of Section 6(b)(5) of the Act,\9\ in particular, in that
it is designed 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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed rule change, as
amended, will impose any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others

    The Exchange did not solicit or receive any written comments with
respect to the proposed rule change, as amended.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    The foregoing rule change, as amended, has become effective
pursuant to Section 19(b)(3)(A) of the Act \10\ and

Rule 19b-4(f)(6) thereunder \11\ in that the proposed rule change (i)
does not significantly affect the protection of investors or the public
interest; (ii) does not impose any significant burden on competition;
and (iii) by its terms, does not become operative for 30 days after the
date of the filing, or such shorter time as the Commission may
designate if consistent with the protection of investors and the public
interest.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    The Exchange has requested that the Commission waive the five-day
pre-filing notice requirement and the 30-day operative delay period for
``non-controversial'' proposals and make the proposed rule change, as
amended, effective and operative upon filing. The Commission has
determined to waive the five-day pre-filing notice requirement and the
30-day operative delay period.\12\ The Commission notes that the
proposed rule change imposes conditions for specialist transactions
with sponsors of ETFs that are substantially identical to those
contained in NYSE Rule 460, Commentary .25 and NYSE Rule 103B.VIII.
---------------------------------------------------------------------------

    \12\ For purposes only of accelerating the operative date of
this proposal, the Commission has considered the proposed rule's
impact on efficiency, competition, and capital formation. 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

    Therefore, the foregoing rule change, as amended, has become
immediately effective and operative upon filing pursuant to Section
19(b)(3)(A)(iii) of the Act \13\ and Rule 19b-4(f)(6) thereunder.\14\
At any time within 60 days of the filing of the proposed rule change,
the Commission may summarily abrogate 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.\15\
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \14\ 17 CFR 240.19b-4(f)(6).
    \15\ The effective date of the original proposed rule change is
February 7, 2006, the date of the original filing, and the effective
dates of Amendment Nos. 1 and 2 are, respectively, March 16, 2006
and March 17, 2006, the filing dates of the amendments. For purposes
of calculating the 60-day abrogation period within which the
Commission may summarily abrogate the proposed rule change, as
amended, under Section 19(b)(3)(C) of the Act, the Commission
considers the period to commence on March 17, 2006, the date on
which the Exchange submitted Amendment No. 2. See 15 U.S.C.
78s(b)(3)(C).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change, as amended, 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 e-mail to<EMAIL_ADDRESS>Please include

File Number SR-Amex-2006-14 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-Amex-2006-14. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml
). Copies of the submission, all subsequent amendments, all

written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Section, 100 F Street,
NE., Washington, DC 20549. Copies of such filing also will be available
for inspection and copying at the principal office of Amex. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-Amex-2006-14 and should be
submitted on or before April 19, 2006.

    For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\16\
---------------------------------------------------------------------------

    \16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Nancy M. Morris,
Secretary.

Exhibit A--American Stock Exchange LLC

Proposed Rule Change

    Italicized text indicates material to be added. [Bracketed] text
indicates material to be deleted.

Specialist's Transactions With Public Customers

    Rule 190. (a) through (e) No change.
    * * * Commentary
    .01 through .06 No change.
    .07 The restrictions in paragraph (a) above relating to business
transactions between a specialist or his member organization or any
member, officer, employee or approved person therein and a company in
which stock the specialist is registered shall not apply to Portfolio
Depositary Receipts (as defined in Rule 1000), Index Fund Shares (as
defined in Rule 1000A), Trust Issued Receipts (as defined in Rule 1200)
and derivative instruments based on one or more securities, currencies
or commodities (all of the foregoing collectively referred to in this
Commentary .07 as ``ETFs''), if the following conditions are met:
    (i) the specialist or his member organization or any member,
officer, employee or approved person therein only enters into the
business transaction with the sponsor of the ETF and the sponsor is not
involved in the day-to-day administration of the ETF; and
    (ii) any fee or other compensation in connection with the business
transaction paid to the specialist or his member organization or any
member, officer, employee or approved person therein must not be
dependent on the trading price or daily trading volume of the ETF;
    (iii) the specialist or his member organization or any member,
officer, employee or approved person therein must notify and provide a
full description to the Exchange of any business transaction or
relationship it may have with any sponsor of an ETF that he or it is
registered as specialist in; and
    (iv) the specialist or his member organization or any member,
officer, employee or approved person therein represents to the Exchange
that the specialist, member organization or any member, officer,
employee or approved person therein are not making a market in any of
the underlying component

securities, currencies or commodities of any ETF issued by the sponsor
with which such specialist, member organization or any member, officer,
employee or approved person therein has entered into a business
transaction.

AMEX Company Guide Relationship With Specialist Procedures, Rules and
Regulations

    Sec. 910. Introduction and (a) through (c) No change.
    (d) Exchange Rules Governing Specialist's Activities--In addition
to certain provisions of the Securities Exchange Act of 1934, a number
of Exchange regulations place clearly defined limits on a specialist's
activities. An awareness of both the intent and spirit of Exchange
rules, and the responsibilities the Exchange places on the specialist,
will help ensure that contacts between company officials and the
specialist are conducted within the framework provided for above.
    With respect to any security in which a specialist is registered,
Exchange rules prohibit specialists (and, with respect to paragraphs
iii through ix, the member firm or member corporation of which the
specialist is a member) from:
    (i) through (v) No change.
    (vi) effecting, directly or indirectly, any business transaction
with the issuer of any such security or any officer, director or 10%
stockholder of any such issuer, except as provided in Commentary .07 to
Rule 190 with respect to business transactions, under certain
conditions, between a specialist or his member organization or any
member, officer, employee or approved person therein and the sponsor of
an ETF (as defined therein) that he or it is registered as specialist
in;
    (vii) through (ix) No change.
    With respect to any security in which a specialist is registered,
Exchange rules require the specialist to report to the Exchange:
    (i) through (iii) No change.
    (iv) any unusual transaction in which the specialist participates
as a broker or dealer; [and]
    (v) each purchase and sale for the specialists' own account[.]; and
    (vi) a full description of any business transaction or relationship
that a specialist or his member organization or any member, officer,
employee or approved person therein may have, under certain conditions
as provided in Commentary .07 to Rule 190, with any sponsor of an ETF
(as defined therein) that he or it is registered as specialist in.
    (e) No change.

[FR Doc. E6-4537 Filed 3-28-06; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register Volume 79, Number 211 (Friday, October 31, 2014)]
[Notices]
[Pages 64858-64862]
[FR Doc No: 2014-25877]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73435; File No. SR-CBOE-2014-071]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change Relating to the Complex Order Book

October 27, 2014.
    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 October 15, 2014, Chicago Board Options Exchange, Incorporated
(the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange
Commission (the ``Commission'') the proposed rule change as described
in Items I, II, and III below, which Items have been prepared by the
Exchange. The Commission is publishing this notice to solicit comments
on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend its rules related to the complex
order book (``COB''). The text of the proposed rule change is provided
below.

(additions are italicized; deletions are [bracketed])
* * * * *

Chicago Board Options Exchange, Incorporated Rules

* * * * *

Rule 6.53C. Complex Orders on the Hybrid System

    (a)-(d) No change.
    . . . Interpretations and Policies:
    .01-.10 No change.
    .11 Execution of Complex Orders on the COB Open:
    (a) Complex orders, including stock-option orders, do not
participate in opening rotations for individual component option series
legs conducted pursuant to Rule 6.2B. When the last of the individual
component option series legs that make up a complex order strategy has
opened (and, in the case of a stock-option order, the underlying stock
has opened), the COB for that strategy will open. The COB will open
with no trade, except as follows:
    ([a]i) The COB will open with a trade against the individual
component option series legs if there are complex orders on only one
side of the COB that are marketable against the opposite side of the
derived net market. The resulting execution will occur at the derived
net market price to the extent marketable pursuant to the rules of
trading priority otherwise applicable to incoming electronic orders in
the individual component legs. To the extent there is any remaining
balance, the complex orders will trade pursuant to subparagraph (ii)
below or, if unable to trade, be processed as they would on an intra-
day basis under Rule 6.53C. [(]This subparagraph ([a]i) is not
applicable to

stock-option orders because stock-option orders do not trade against
the individual component option series legs when the COB opens.[)]
    ([b]ii) The COB will open (or continue to open with another trade
if a trade occurred pursuant to subparagraph (i) above) with a trade
against complex orders if there are complex orders in the COB
(including any remaining balance of an order that enters the COB after
a partial trade with the legs pursuant to subparagraph (i)) that are
marketable against each other and priced within the derived net market.
The resulting execution will occur at a market clearing price that is
inside the derived net market and that matches complex orders to the
extent marketable pursuant to the electronic allocation algorithm from
Rule 6.45A or 6.45B, as applicable, as determined by the Exchange on a
class-by-class basis[. In determining the priority,] with the addition
that the COB gives priority to complex orders whose net price is better
than the market clearing price first, and then to complex orders at the
market clearing price. To the extent there is any remaining balance,
the complex orders will be processed as they would on an intra-day
basis under Rule 6.53C. [(]This subparagraph ([b]ii) is applicable to
stock-option orders.[)]
    ([c]b) The ``derived net market'' for a stock-option order strategy
will be calculated using the Exchange's best bid or offer in the
individual option series leg(s) and the NBBO in the stock leg. The
``derived net market'' for any other complex order strategy will be
calculated using the Exchange's best bid or offer in the individual
option series legs.
    (c) The Exchange may also use the process described in paragraph
(a) of this Interpretation and Policy .11 when the COB reopens a
strategy after a time period during which trading of that strategy was
unavailable.
    .12 No change.
* * * * *
    The text of the proposed rule change is also available on the
Exchange's Web site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the
Secretary, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend its rules related to its COB. Rule
6.53C, Interpretation and Policy .11 describes how complex orders
execute when the COB opens. Complex orders do not participate in the
opening rotation for the individual leg series (which occurs pursuant
to Rule 6.2B). Rather, the COB for a complex order strategy will open
when the last of the individual legs series that make up the strategy
has opened (and, in the case of a stock-option order, when the
underlying stock has opened). Under the current rules, the COB will
open with no trade, except as follows:
     The COB will open with a trade against the individual
component option series legs if there are complex orders on only one
side of the COB that are marketable against the opposite side of the
derived net market.\3\ The resulting execution will occur at the
derived net market price to the extent marketable. To the extent there
is any remaining balance, the complex orders will be processed as they
would on an intra-day basis under Rule 6.53C.\4\ This does not apply to
stock-option orders, which cannot trade against the individual leg
series when the COB opens.
---------------------------------------------------------------------------

    \3\ The ``derived net market'' is calculated based on the
Exchange's best bid or offer (``BBO'') in the individual series
legs. For stock-option orders, the derived net market is calculated
based on the BBO in the individual option series leg(s) and the
national best bid or offer (``NBBO'') in the stock leg. See Rule
6.53C, Interpretation and Policy .11(c) (which this rule filing
proposes to change to paragraph (b)).
    \4\ Pursuant to Rule 6.53C, complex orders may either enter the
COB or process through a complex order auction (COA).
---------------------------------------------------------------------------

     The COB will open with a trade against complex orders if
there are complex orders in the COB that are marketable against each
other and priced within the derived net market. The resulting execution
will occur at a market clearing price that is inside the derived net
market and that matches complex orders to the extent marketable. In
determining the priority, the COB gives priority to complex orders
whose net price is better than the market clearing price first, and
then to complex orders at the market clearing price. To the extent
there is any remaining balance, the complex orders will be processed as
they would on an intra-day basis under Rule 6.53C.\5\ This applies to
stock-option orders.
---------------------------------------------------------------------------

    \5\ Id.
---------------------------------------------------------------------------

    The proposed rule change adds to current paragraph (b) of
Interpretation and Policy .11 \6\ that the Exchange may determine, on a
class-by-class basis, which electronic allocation algorithm \7\ will
apply to complex order trades on the COB open pursuant to current
paragraph (b) (proposed paragraph (a)(ii)).\8\ The Exchange may
determine on a class-by-class basis which electronic allocation
algorithm from Rule 6.45A or 6.45B, as applicable, will apply to
executions to opening rotations.\9\ This opening allocation algorithm
may be different than the intraday allocation algorithm. The proposed
rule change provides the Exchange with the same flexibility with
respect to executions of complex orders on the COB open. While Rule
6.53C, Interpretation and Policy .09 provides the Exchange with the
flexibility to determine on a class-by-class basis which electronic
allocation algorithm from Rule 6.45A or 6.45B, as applicable, will
apply to COB executions (in lieu of the algorithm specified in Rule
6.53C(c)(ii)(2) and (3) \10\), Interpretation

and Policy .11 does not state that the applicable allocation algorithm
for complex order executions on the COB open may be different than the
intraday allocation algorithm for the COB. The proposed rule change
adds this detail to the rules and allows the Exchange to determine on a
class-by-class basis which electronic allocation algorithm will apply
to complex order trades on the COB open, which may be different than
the allocation algorithm applicable to intraday complex order trades on
the COB.\11\ The Exchange will announce any allocation algorithm
determinations via Regulatory Circular.\12\
---------------------------------------------------------------------------

    \6\ The proposed rule change reorganizes Interpretation and
Policy .11. This proposed language appears in proposed paragraph
(a)(ii) (current paragraph (b)), which is the paragraph related to
trades of complex orders on the COB at the open.
    \7\ The electronic allocation algorithms include price-time,
pro-rata, and the ultimate matching algorithm base priorities and a
combination of various optional priority overlays pertaining to
public customer priority, Market-Maker participation entitlements,
small order preference and market turn. See Rules 6.45A (related to
equity options) and 6.45B (related to index and exchange-traded fund
(ETF) options).
    \8\ The proposed rule change also adds to current paragraph (a)
(proposed paragraph (a)(i)) that executions of complex orders
against the individual legs will be pursuant to the rules of trading
priority otherwise applicable to incoming electronic orders in the
individual component legs. The current rule is silent on what
electronic allocation algorithm applies to executions of complex
orders on the COB against the individual legs. The Exchange believes
the proposed rule text merely eliminates any potential confusion
regarding how complex orders will be allocated in accordance with
proposed paragraph (a)(i).
    \9\ See Rule 6.2B, Interpretation and Policy .04.
    \10\ Rule 6.53C(c)(ii) states that complex orders submitted to
the COB may trade as follows: (a) A complex order in the COB will
automatically execute against individual quotes and orders on the
book; (b) complex orders in the COB that are marketable against each
other will automatically execute, and the allocation of such
executions will be pursuant to the rules of trading priority
otherwise applicable to incoming electronic orders in the individual
component legs; and (c) market participants may submit orders or
quotes to trade against orders in the COB, and the allocation of
such executions will be pursuant to Rule 6.45A(c) or 6.45B(c), as
applicable (which describes the interaction of a market
participant's quotes and orders with orders in the electronic book).
    \11\ Currently, complex orders that execute against complex
orders in the COB on the open (proposed subparagraph (a)(ii))
allocate pursuant to price-time priority.
    \12\ See Rule 6.53C, Interpretation and Policy .01 (which states
that the Exchange will announce to Trading Permit Holders via
Regulatory Circular all pronouncements regarding determinations by
the Exchange pursuant to Rule 6.53C and the Interpretations and
Policies thereunder).
---------------------------------------------------------------------------

    The Exchange is not proposing to adopt any new allocation
algorithms or priority rules nor is it proposing to modify the COB
opening process.\13\ Rather, it is adding detail to the Exchange rule
regarding the COB opening process and providing the Exchange with
flexibility to choose an algorithm from among the existing algorithms
that will apply to complex order trades on the COB open, rather than
simply defaulting to the algorithm in effect for intraday trading on
the COB in that class. The Exchange believes this flexibility is
consistent with its other rules regarding the determination of
allocation algorithms and will further promote fair and orderly
openings of strategies on the COB.\14\
---------------------------------------------------------------------------

    \13\ The Exchange represents that complex orders continue to
have opportunities to trade against the leg markets, both at the
open pursuant to proposed paragraph (a)(i) and intraday pursuant to
Rule 6.53C(c) (execution of orders in the COB) and (d) (execution of
orders through COA). Additionally, this filing does not change the
complex order priority principles (including public customer
priority) set forth in Rules 6.45A, 6.45B and 6.53C.
    \14\ Additionally, because Rules 6.2B, Interpretation and Policy
.04, 6.45A, 6.45B and 6.53C, Interpretation and Policy .09 provide
the Exchange with flexibility to determine allocation algorithms on
a class-by-class basis, the Exchange believes it is appropriate to
provide the same class-by-class flexibility to trading at the COB
open.
---------------------------------------------------------------------------

    The proposed rule change also adds detail to proposed paragraph
(a)(ii) regarding which trades on the COB are deemed to be part of the
opening of the COB (and thus subject to the allocation algorithm in
place for the COB open). To the extent a complex order partially trades
with the leg series on the COB open, and the remaining balance enters
the COB (pursuant to Rule 6.53C) as set forth in proposed subparagraph
(a)(i), if that remaining balance is marketable against another complex
order on the COB at the open, those orders will execute as set forth in
proposed subparagraph (a)(ii). Thus, any execution of that remaining
balance on the COB is considered an execution at the COB open, as the
open is intended to cause any marketable complex orders to trade, and
thus subject to proposed subparagraph (a)(ii) (current paragraph (b)).
The proposed rule change makes a corresponding change to proposed
paragraph (a)(i) to provide that any remaining balance may trade
pursuant to proposed paragraph (a)(ii) (if unable to trade, it will be
processed as it would on an intra-day basis). The proposed rule change
also makes a corresponding change to proposed paragraph (a)(ii) to
provide that the COB will open, or continue to open, with a trade of
complex orders on the COB, as the COB opening may already have been
initiated by a trade pursuant to paragraph (a)(i).
    For example, suppose Complex Order X is an order to buy 20 Series A
and 20 Series B for a net price of $2.40 and on the COB at the open. If
the market for Series A is $1.00-$1.20 and the market for Series B is
$1.00-$1.20 (for a net price of $2.00-$2.40), with the offer to sell at
$2.40 for 10 contracts, then when the COB opens, 10 contracts of
Complex Order X will trade against the 10 contracts in the leg markets.
The remaining balance of 10 of Complex Order X then enters the COB
pursuant to Rule 6.53C(c). If Complex Order Y to sell 10 Series A and
10 Series B at $2.40 is on the COB at the open, then the remaining
balance of Complex Order X will trade against Complex Order Y. This
trade of Complex Order X against Complex Order Y is part of the COB
open. If there were multiple complex orders at the same price, they
would allocate in accordance with the algorithm in place for the COB
open.
    The Exchange believes that the rule text is currently unclear as to
whether any remaining balance from proposed subparagraph (a)(i) enters
the COB and is marketable against the COB would trade in accordance
with COB open or COB intraday rules. Currently, if the remaining
balance is marketable against other complex orders in the COB, the
System will execute the remaining balance against orders in the COB as
part of the COB open (and thus in accordance with the opening matching
algorithm). Generally, the ``opening'' includes all trades that would
``clear'' the market.\15\ The proposed rule change is consistent with
this idea and adds this detail to proposed subparagraph (a)(ii) to
codify the intent of the current rule.
---------------------------------------------------------------------------

    \15\ See Rule 6.2B regarding the opening of series at a market-
clearing price and Rule 6.53C, Interpretation and Policy .11(b)
regarding the opening of the COB at a market-clearing price.
---------------------------------------------------------------------------

    In addition, the proposed rule change adds paragraph (c) to
Interpretation and Policy .11, which states that the Exchange may use
the process described in paragraph (a) when the COB reopens a strategy
after a time period during which trading of that strategy was
unavailable pursuant to the rules. The Exchange may use the opening
rotation process to reopen a class after a trading halt.\16\ The
proposed rule change provides the Exchange with the same flexibility
with respect to reopening the COB. Trading of strategies may be
unavailable on the COB, for example, if there is a trading halt in the
underlying security or if trading on the COB is ``on hold'' because the
derived net market is outside of price check parameters set by the
Exchange to prevent extreme executions.\17\ The Exchange uses the
opening rotation process to reopen after a trading halt to provide for
an orderly reopening, and the Exchange would similarly like to provide
for a fair and orderly reopening of the COB after any period during
which COB trading was unavailable.
---------------------------------------------------------------------------

    \16\ See Rule 6.2B(g).
    \17\ See Rule 6.53C, Interpretation and Policy .08. For example,
pursuant to paragraph (a)(3), if the BBO or derived net market is
not within an acceptable price range, the System holds marketable
limit orders and does not allow trading of complex orders for that
strategy until the market is no longer outside the applicable price
range.
---------------------------------------------------------------------------

    The proposed rule change also makes nonsubstantive, technical
changes to Interpretation and Policy .11, including adding and
modifying subparagraph lettering and numbering, indenting
subparagraphs, and deleting unnecessary parentheticals.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act.\18\ Specifically, the Exchange believes the proposed rule change
is consistent with the Section 6(b)(5) \19\ 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) \20\ requirement that the rules
of an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78f(b).
    \19\ 15 U.S.C. 78f(b)(5).
    \20\ Id.
---------------------------------------------------------------------------

    In particular, the proposed rule change adds detail to its rules
regarding the opening of trading on its COB, which benefits investors.
The Exchange believes the flexibility provided by the proposed rule
change is consistent with its other rules. The Exchange already has
flexibility to apply a different allocation algorithm at the open of
trading of simple orders and to use its opening procedure after a
trading halt for simple orders.\21\ It also already has the flexibility
to apply a different allocation algorithm to complex order executions
on the COB.\22\ The Exchange is merely extending this flexibility to
the opening and reopening of trading of complex orders on the COB. The
Exchange notes that the level of trading activity is often different at
the open than during the trading day. To ensure a fair and orderly
opening in light of this trading activity, rules often allow the
Exchange to apply them in a different manner to the opening of trading
(such as different bid-ask differential requirements, different price
reasonability checks and different allocation algorithms). The Exchange
believes extending similar flexibility to the opening of complex order
trading on the Exchange will allow it to similarly ensure a fair and
orderly COB open, which protects investors and promotes just and
equitable principles of trade.
---------------------------------------------------------------------------

    \21\ See Rule 6.2B(g) (use of opening procedures after a trading
halt) and Interpretation and Policy .04 (determination of allocation
algorithm on a class-by-class basis during opening rotations, which
may be different than allocation algorithm for intraday trading).
    \22\ See Rule 6.53C, Interpretation and Policy .09.
---------------------------------------------------------------------------

    The proposed rule change that specifies that the remaining balance
of a complex order that partially trades with the individual leg series
may be executed as part of the COB open provision, and that the COB
open may include both trades of complex orders with the legs and with
other complex orders, further benefits investors and promotes an open
market by adding detail to the rules regarding how the System treats
this remaining balance. Openings generally include a series of trades
in order to execute all orders that are marketable upon the open, and
the Exchange believes the proposed rule change is consistent with that
idea.

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

    CBOE does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The proposed rule change
applies to all complex order trading on the COB when it opens or
reopens. In addition, the proposed rule change applies only to the COB
opening process on the Exchange. Its purpose is to include the COB
opening procedure that is currently in place on the Exchange, which
procedure is designed to open complex order strategies on the Exchange
in a fair and orderly manner. The proposed rule change does not help
CBOE market participants to the detriment of market participants on
other exchanges.

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:
    A. Significantly affect the protection of investors or the public
interest;
    B. impose any significant burden on competition; and
    C. become operative for 30 days from the date on which it was
filed, or such shorter time as the Commission may designate, it has
become effective pursuant to Section 19(b)(3)(A) of the Act \23\ and
Rule 19b-4(f)(6) \24\ 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.
---------------------------------------------------------------------------

    \23\ 15 U.S.C. 78s(b)(3)(A).
    \24\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

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-2014-071 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-2014-071. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal offices of the Exchange.
All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-CBOE-2014-071,
and should be submitted on or before November 21, 2014.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\25\
---------------------------------------------------------------------------

    \25\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-25877 Filed 10-30-14; 8:45 am]
BILLING CODE 8011-01-P