[Federal Register Volume 84, Number 186 (Wednesday, September 25, 2019)]
[Notices]
[Pages 50545-50558]
[FR Doc No: 2019-20698]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-87024; File No. SR-CBOE-2019-059]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Certain Rules Relating To Market-Makers Upon Migration to the Trading
System Used by Cboe Affiliated Exchanges

September 19, 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 September 6, 2019, Cboe Exchange, Inc. filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change as described in Items I and II below, which Items have been
prepared by the self-regulatory organization. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes
to amend and move certain current Rules in connection with Market-
Makers from the Exchange's 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.
    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. The Exchange 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. The Exchange believes offering
similar functionality to the extent practicable will reduce potential
confusion for market participants.
    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.
    The Exchange now proposes to update and amend its rules under
Chapter 8 (Market-Makers, Trading Crowds and Modified Trading Systems).
Specifically, the Exchange proposes to amend its rules regarding
Market-Maker registration, class appointments, and obligations
(applicable to Market-Makers generally and the various Market-Maker
types, i.e. Designated Primary Market-Makers (``DPMs''), Primary
Market-Makers (``PMMs''), and Lead Market-Makers (``LMMs'')) to conform
to the corresponding Market-Makers rules of its affiliated options
exchanges, C2, EDGX Options, and BZX Options (the ``Affiliated Options
Exchanges'').\3\ The Exchange proposes these amendments to reflect the
current Market-Maker functionality and general rule language of that of
the Affiliated Options Exchanges to the extent necessary to retain
intended differences unique to Cboe Options market-model, functionality
and/or rule text. In conforming its Rule to that of is Affiliated
Options Exchanges' rules, the Exchange proposes few substantive
changes, which include proposed changes to the FLEX appointment
process, updates to Market-Maker class appointments and obligations to
such appointments to apply across Global Trading Hours (``GTH'') and
Regular Trading Hours (``RTH''), updates to the

appointment cost structure, amendments to certain obligation
provisions, including the bid/ask requirement, the series excluded from
continuous quoting obligations and adding a ``good-standing'' rule, and
updates to some of the rules in connection with DPMs, including
segregation of accounts for DPM-related transactions accounts from a
firms other accounts, the DPM net liquidating requirements, requirement
to have two DPM designees, Exchange review of DPMs, as well as On-Floor
terminations (which is also in connection with LMMs) and designations
of classes in connection with DPMs and LMMs.
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    \3\ The Exchange notes that the Affiliated Options Exchanges
recently updated and harmonized their Market-Maker rules. The recent
updates to BZX Option's Market-Maker rules will be implemented on or
around October 1, 2019, and this filing refers to these updates. See
Securities Exchange Act Release No. 85845 (May 13, 2019), 84 FR
22541 (May 17, 2019) (Notice of Filing and Immediate Effectiveness
of a Proposed Rule Change To Delay the Operative Date of Rule Change
Pursuant to SR-CboeBZX-2019-025) (SR-CboeBZX-2019-043).
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    The Exchange also proposes to make non-substantive changes to
simplify, clarify, and generally update its Market-Maker rules by
consolidating various provisions and rules (including select rules not
covered under current Chapter 8 but pertain to Market-Maker
requirements), simplifying rule language (e.g. revising run-ons and
unnecessary clauses), updating the rule text to read in plain English,
deleting duplicative and obsolete rule provisions, reformatting
provision sequencing, numbering, and lettering, and revising headings.
The Exchange also updates cross-references to rules not yet in the
shell Rulebook but that will be in the shell Rulebook and implemented
upon migration. The tables below list each rule under current Chapter
8, along with the few additional rules related to Market-Makers that
the Exchange proposes to consolidate with the Market-Maker rules, the
proposed rule in the shell Rulebook to which the current rule will be
moved, the corresponding rule of one or more of the Affiliated Options
Exchanges to which the propose change conforms (if applicable), whether
the proposed change is substantive or non-substantive, and finally, a
description of the proposed rule change. The Exchange notes that all
current provisions proposed to move to the corresponding proposed
provisions in the shell Rulebook will also be deleted from the current
rules upon migration.
Market-Maker Registration (Proposed Chapter 3, Section C)
    The proposed rule change moves current Chapter 8 rules related to
registration (including approvals, eligibility, termination, etc.) and
general Market-Maker functions, from the current Rulebook to Chapter 3,
Section C (TPH Trading Functions) of the shell Rulebook as follows:
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    \4\ The proposed rule change deletes Interpretation and Policy
.01(b) because the Exchange already moved/consolidated participation
entitlements and rates into shell Rulebook in Rule 5.32. See
Securities Exchange Act Release No. 86374 (July 15, 2019), 84 FR
34963 (July 19, 2019) Notice of Filing and Immediate Effectiveness
of a Proposed Rule Change Relating to System Connectivity and Order
Entry and Allocation Upon the Migration of the Exchange's Trading
Platform to the Same System Used by the Cboe Affiliated Exchanges)
(SR-CBOE-2019-033). The Exchange notes that SR-CBOE-2019-003
inadvertently failed to remove Rule 8.13.01(b) when it consolidated
into the shell Rulebook. The filing deleted the following
provisions: Rule 8.13(c) (regarding entitlement rates for PMMs);
Rule 8.15(c)-(d) (regarding participation entitlements for LMMs);
Rule 8.87 (in its entirety, regarding participation entitlements for
DPMs).
    \5\ As noted, on October 7, 2019 the Exchange's trading platform
will be migrated to the same system used by the Cboe Affiliated
Exchanges. The Exchange's trading system will still exist as a
hybrid system but will no longer be referred to as the ``Hybrid
Trading System.'' Instead, it will be defined as the ``System,''
pursuant to Rule 1.1 in the shell Rulebook, to mean ``the Exchange's
hybrid trading platform that integrates electronic and open outcry
trading of option contracts on the Exchange.'' The Exchange notes
that the term ``Hybrid class'' is no longer relevant because as of
2018, all classes listed for trading on the Exchange now trade on
the same platform (prior to that, certain classes traded on the
Exchange's Hybrid 3.0 platform, while most classes traded on the
Exchange's Hybrid platform), making the distinction obsolete.

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                                                         Corresponding
          Current rule               Proposed rule      other Exchange    Substantive change    Description of
                                                             rule                                   change
----------------------------------------------------------------------------------------------------------------
Rule 8.1 (Market-Maker Defined).  Rule 3.52 (Market-  C2 Rule 8.1, EDGX   N.................  Conforms language
                                   Makers).            Options Rule                            to that of the
                                                       22.2, BZX Options                       Affiliated
                                                       Rule 22.2.                              Options
                                                                                Exchanges' rules.
                                                                                Language defining
                                                                                Market-Makers
                                                                                deleted;
                                                                                duplicative of
                                                                                the definition
                                                                                already in Rule
                                                                                1.1.
Rule 8.2 (Registration of Market- Rule 3.52 (Market-  C2 Rule 8.1, EDGX   Y: see further      Conforms
 Makers).                          Makers).            Options Rule        discussion below..  registration
                                                       22.2, BZX Options                       process
                                                       Rule 22.2.                              provisions to
                                                                                that of the
                                                                                Affiliated
                                                                                Options
                                                                                Exchanges' rules.
Rule 8.13 (Preferred Market-      Rule 3.56 (PMMs)..  N/A...............  N.................  Moves Rule 8.13(a)
 Makers).                                                                                and (b), and
                                                                                Interpretation
                                                                                and Policy .01(a)
                                                                                to proposed rule,
                                                                                deleted
                                                                                Interpretation
                                                                                and Policy .01(b)
                                                                                regarding PMM
                                                                                participation
                                                                                entitlements,\4\
                                                                                and renumbers
                                                                                provisions,
                                                                                changes headings,
                                                                                and updates cross-
                                                                                references.
                                                                                Removes receipt
                                                                                of PMM order
                                                                                through complex
                                                                                order book
                                                                                (``COB'')/or
                                                                                complex order
                                                                                auctions as such
                                                                                complex
                                                                                entitlements are
                                                                                infrequently
                                                                                allocated, if at
                                                                                all, and, in
                                                                                addition to this,
                                                                                complex orders
                                                                                traded on the COB
                                                                                or COA will not
                                                                                have PMM
                                                                                allocation in the
                                                                                migrated system.
Rule 8.15 (Lead Market-Makers)..  Rule 3.55 (LMMs)..  N/A...............  N.................  Moves current Rule
                                                                                8.15(a) and
                                                                                Interpretation
                                                                                and Policy .01 to
                                                                                proposed rule and
                                                                                renumbers
                                                                                provisions,
                                                                                changes headings,
                                                                                and updates cross-
                                                                                references. Moves
                                                                                current Rule
                                                                                6.1A(iii)(A) to
                                                                                proposed rule,
                                                                                which states that
                                                                                the Exchange may
                                                                                approve one or
                                                                                more market-
                                                                                Makers to act as
                                                                                LMMs in each
                                                                                class during GTH
                                                                                for one-month
                                                                                terms.
Rule 6.1A (Global Trading
 Hours), paragraph (e)(iii)(A).
Rule 8.81 (DPM Designees).......  Rule 3.54 (DPM      N/A...............  Y: see further      Deletes current
                                   Designees).                             discussion below.   8.1(d) which
                                                                                provides that
                                                                                each DPM must
                                                                                have two
                                                                                designees that
                                                                                are nominees of
                                                                                the DPM,
                                                                                requirement is an
                                                                                unnecessary
                                                                                expense to DPMs.
                                                                                Renumbers
                                                                                provisions and
                                                                                updates cross-
                                                                                references and
                                                                                updates language
                                                                                to read in plain
                                                                                English.
Rule 8.83 (Approval to Act as     Rule 3.53 (DPMs)..  N/A...............  N.................  Modifies the term
 DPM).                                                                                ``appointment''
                                                                                to
                                                                                ``designation''
                                                                                to clarify the
                                                                                distinction
                                                                                between a Market-
                                                                                Maker approved to
                                                                                act as a DPM and
                                                                                its appointment
                                                                                to options
                                                                                classes (and
                                                                                updates this term
                                                                                throughout the
                                                                                proposed Market-
                                                                                Maker rules).
                                                                                Updates the term
                                                                                ``allocation'' of
                                                                                ``securities'' to
                                                                                ``appointment''
                                                                                of classes, which
                                                                                is consistent
                                                                                with the terms
                                                                                used throughout
                                                                                Market-Maker
                                                                                rules (this
                                                                                update is made
                                                                                throughout the
                                                                                proposed Market-
                                                                                Maker rules).
                                                                                Removes language
                                                                                in connection
                                                                                with the ``Hybrid
                                                                                Trading System''
                                                                                and ``Hybrid
                                                                                classes'' (and
                                                                                makes same update
                                                                                throughout the
                                                                                proposed Market-
                                                                                Maker rules.) \5\
                                                                                Renumbers
                                                                                provisions
                                                                                (including adding
                                                                                Interpretations
                                                                                and Policies to
                                                                                the rule text)
                                                                                and updates cross-
                                                                                references and
                                                                                updates language
                                                                                to read in plain
                                                                                English.
Rule 8.88 (Review of DPM          Rule 3.53 (DPMs)..  N/A...............  N.................  Renumbers
 Operations and Performance).                                                                  provisions and
                                                                                updates cross-
                                                                                references and
                                                                                headings and
                                                                                updates language
                                                                                to read in plain
                                                                                English.
Rule 8.89 (Transfer of DPM        Rule 3.53 (DPMs)..  N/A...............  N.................  Moves to proposed
 Appointments).                                                                                rule to
                                                                                consolidate rules
                                                                                regarding
                                                                                Exchange
                                                                                approval,
                                                                                transfer review,
                                                                                and termination/
                                                                                limitation of
                                                                                status as DPM.
                                                                                Renumbers
                                                                                provisions and
                                                                                updates cross-
                                                                                references and
                                                                                headings and
                                                                                updates language
                                                                                to read in plain
                                                                                English. Updates
                                                                                certain terms to
                                                                                delineate between
                                                                                Exchange
                                                                                designation as a
                                                                                DPM and DPM
                                                                                appointment to a
                                                                                class (makes this
                                                                                change where
                                                                                applicable
                                                                                throughout the
                                                                                rules).

Rule 8.90 (Termination,           Rule 3.53 (DPMs)..  N/A...............  N.................  Moves to proposed
 Conditioning, or Limiting                                                                     rule to
 Approval to Act as a DPM).                                                                    consolidate rules
                                                                                regarding
                                                                                Exchange
                                                                                approval,
                                                                                transfer review,
                                                                                and termination/
                                                                                limitation of
                                                                                status as DPM.
                                                                                Renumbers
                                                                                provisions and
                                                                                updates cross-
                                                                                references and
                                                                                headings, and
                                                                                updates language
                                                                                to read in plain
                                                                                English.
Rule 24A.9 (FLEX Market-Maker     Rule 3.57 (FLEX     N/A...............  Y: see below for    Moves current Rule
 Appointments and Obligations).    Market-Makers).                         further detail.     24A.9(a) to
                                                                                proposed rule
                                                                                Changes current
                                                                                ``FLEX Qualified
                                                                                Market-Makers''
                                                                                to ``FLEX Market-
                                                                                Makers'' to
                                                                                harmonize
                                                                                language under
                                                                                the Market-Maker
                                                                                type rules to the
                                                                                extent possible.
                                                                                Removes current
                                                                                Rule 24A.9(b)
                                                                                regarding FLEX
                                                                                Appointed Market-
                                                                                Makers because
                                                                                the Exchange
                                                                                currently does
                                                                                not have any FLEX
                                                                                Appointed Market-
                                                                                Makers nor a
                                                                                participation
                                                                                entitlement
                                                                                established. To
                                                                                the extent the
                                                                                Exchange
                                                                                determines in the
                                                                                future to appoint
                                                                                FLEX Market-
                                                                                Makers as FLEX
                                                                                Appointed Market-
                                                                                Makers (or
                                                                                similar role) and
                                                                                establish a
                                                                                participation
                                                                                entitlement, the
                                                                                Exchange will
                                                                                submit a separate
                                                                                rule filing.
----------------------------------------------------------------------------------------------------------------

    The majority of these rules are virtually identical (other than
renumbering or reorganizing paragraphs, updating cross-references and
headings, updating language to read in plain English, and making the
types of non-substantive changes as described above), and are merely
moving from the current Rulebook to the shell Rulebook. The Exchange
intends to move the current rules indicated above to proposed Chapter
3, Section C (TPH Trading Functions) of the shell Rulebook in order to
consolidate into one location the rules that provide for the
application, approval, and removal processes for its various Market-
Maker types. As indicated in the table above, the proposed change does
not substantively alter the Market-Maker registration requirement
provisions (current Rule 8.1(b) and Rule 8.2) but rather proposes to
consolidate its current Market-Maker registration provisions into
proposed Rule 3.52, which conforms its paragraphs and language to
mirror that of the Affiliated Options Exchanges' corresponding rules
(to the extent Affiliated Options Exchanges' have corresponding rules).
    The Exchange notes that the proposed Rule 3.52 permits the Exchange
to impose limits to the number of Trading Permit Holders (``THPs'')
that may become Market-Makers based on a non-exhaustive list of
objective factors, including system constraints and capacity
restrictions. This is consistent with the corresponding rules of the
Affiliated Options Exchanges.\6\
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    \6\ See C2 Rule 8.1; EDGX Options Rule 22.2; and BZX Options
Rule 22.2.
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    The proposed rule change removes the requirement that, at a
minimum, the Exchange conduct a review of a DPM's operations or
performance on an annual basis. This gives the Exchange more
flexibility regarding when a full review or evaluation is warranted
given the firm characteristics and infrastructure of DPM firms do not
tend to change and the Exchange has various surveillances in place
that, if they were to identify a lapse or failure in a DPM's compliance
with its obligations, proposed Rule 3.53 allows the Exchange to
initiate a review of a DPM's operations or performance at any time, as
it currently may.
    Proposed Rules 3.53 and 3.55 amend language under current Rule
8.83(g) and 8.15.01(c), respectively, which provide that a class in
which an Off-Floor DPM and/or Off-Floor LMM has been appointed, the
Exchange in its discretion may also appoint an On- Floor LMM, and, if
the Exchange in its discretion determines to reallocate a class in
which an Off-Floor DPM and/or Off-Floor LMM has been appointed, the On-
Floor LMM appointment will automatically terminate. The proposed rules
update these rules to remove automatic termination and allow for the
Exchange to terminate the On-Floor LMM appointment in its discretion
because the performance of an Off-Floor DPM and/or Off-Floor LMM is not
connected or indicative of the performance of an On-Floor LMM that may
be high performing, therefore, automatic termination would be
unnecessary and disruptive to the On-Floor LMM's appointment and
obligations.
    The proposed rule change updates the FLEX Market-Maker approval and
appointment process under proposed Rule 3.57(b). The proposed change
removes the language in current Rule 24A.9(a) that provides for
Exchange designation of two or more FLEX Market-Makers to each FLEX
Index Option of a given class, and two or more FLEX Market-Makers to
each FLEX Equity Option of a given class. The proposed change removes
these provisions, as they are no longer necessary in the enhancement
and maintenance of the Exchange's Market-Maker program or for FLEX
classes. Instead, proposed Rule3.57(c) updates the language of current
Rule 24A.9(a) in connection with FLEX appointments and Non-FLEX
appointments. The current rule conditions a FLEX Market-Maker's
appointment in a FLEX Index Option class or a FLEX Equity Option class
on maintaining an appointment in one or more Non-FLEX Index Option
classes or one or more Non-FLEX Equity Option classes, as applicable.
Such Non-FLEX Option class appointment(s) need not be in a class(es)
that has the same underlying index or security as the appointed FLEX
Option. The proposed change updates the appointment process so that a
Market-Maker approved for FLEX market-making will automatically receive
an appointment in the same FLEX options class(es) as its Non-FLEX class
appointments selected in relation to its general Market-Making
responsibilities pursuant to proposed Rule 5.50. The proposed rule does
not alter the obligations of a FLEX Market-Maker, as they will continue
to be required to maintain an appointment in a Non-FLEX class. The
proposed rule change simplifies the FLEX appointment process, but will
continue to provide that each FLEX class will have appointed Market-
Makers to provide liquidity in that class, in addition to all other
market participants.
    The proposed rule change deletes current Rule 8.83(b) which
provides that each DPM shall have at least two DPM Designees who are
nominees of the DPM. The Exchange has determined that for a DPM to
maintain Trading Permits for two nominees is an unnecessary expense to
a member organization designated to act as a DPM. Current Rule 3.8
requires that each member organization have at least one nominee
(which, upon migration, will be referred to as a ``Responsible Person''
for TPH organizations that hold electronic Trading Permits).\7\ The
Exchange implemented Rule 8.83(b) in 1999 in order to ensure that a DPM
is responsible for ensuring there is always a nominee available, if,
for example, a nominee were to depart from the

organization.\8\ The Exchange notes the infrequency in which a DPM
necessitated or could not provide for a ``back-up'' DPM over the last
two decades and, therefore, that the benefit or protection potentially
provided by this rule is far outweighed by the expense a DPM must incur
to maintain two nominees. A DPM, like all member organizations, will
continue to be required to maintain at least one nominee (or
Responsible Person) and may choose to maintain multiple nominees (or
Responsible Persons).
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    \7\ The Exchange will implement a rule change to current Rule
3.8 in anticipation of migration that will require a designation of
a nominee only for floor-based Trading Permits. TPH organizations
that hold electronic permits will be required to designate a
``Responsible Person'', who must be affiliated with the TPH. The
Exchange notes that it updates this reference where applicable in
the proposed rules herein this filing.
    \8\ See Securities and Exchange Act No. 41325 (April 22, 1999),
64 FR 23691 (May 3, 1999) (Notice of Filing of Proposed Rule Change
by the Chicago Board Options Exchange, Inc. To Update and Reorganize
Its Rules Relating to Designated Primary Market-Makers) (SR-CBOE-98-
54).
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Market-Maker Appointments and Obligations (Proposed Chapter 5, Section
D)
    The proposed rule change also moves current Chapter 8 rules related
to Market-Maker appointments to classes and Market-Maker obligations
from the current Rulebook to Chapter 5, Section D (Market-Maker
Appointments and Obligations) of the shell Rulebook as follows:
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    \9\ See Securities Exchange Act Release No. 51371 (March 15,
2005), 70 FR 13557 (March 21, 2005) (Notice of Filing of Proposed
Rule Change by the Chicago Board Options Exchange, Incorporated To
Amend CBOE Rule 8.4 To Remove the Physical Trading Crowd Appointment
Alternative for Remote Market-Makers and To Create an ``A+'' Tier
Consisting of the Two Most Actively-Traded Products on the Exchange)
(SR-CBOE-2005-23).
    \10\ The Exchange intends to move Interpretation and Policy .01
and .01(c) to proposed Rule 4.14 of the shell Rulebook at a later
date in anticipation of migration.
    \11\ The Exchange intends to move Interpretation and Policy .01
and .01(c) to proposed Rule 4.14 of the shell Rulebook at a later
date in anticipation of migration.

----------------------------------------------------------------------------------------------------------------
                                                      Corresponding
          Current rule             Proposed rule      other exchange      Substantive      Description of change
                                                           rule              change
----------------------------------------------------------------------------------------------------------------
Rule 8.3 (Appointment of Market- Rule 5.50 (Market- C2 Rule 8.2, EDGX  Y: see below for   Conforms to the
 Makers).                         Maker              Options Rule       further detail.    Affiliated Options
                                  Appointments).     22.3, BZX                             Exchanges'
                                                     Options Rule                          corresponding rules
                                                     22.3.                                 regarding
                                                                                appointments to the
                                                                                extent necessary to
                                                                                adhere to existing
                                                                                Exchange rule text,
                                                                                maintain provisions
                                                                                specific to Cboe
                                                                                Options, and to
                                                                                account for details/
                                                                                descriptions included
                                                                                in the Exchange's
                                                                                Rules but not in the
                                                                                applicable Affiliated
                                                                                Options Exchanges'
                                                                                rules. Incorporates
                                                                                GTH appointment
                                                                                costs. Removes
                                                                                provisions in
                                                                                connection with
                                                                                Trading Permits as
                                                                                they relate to
                                                                                appointment costs,
                                                                                which is consistent
                                                                                with the fee schedule
                                                                                and Exchange
                                                                                functionality to be
                                                                                implemented upon
                                                                                migration. Deletes
                                                                                obsolete provisions
                                                                                and language
                                                                                regarding Exchange-
                                                                                appointed classes as
                                                                                the Exchange does not
                                                                                currently appoint and
                                                                                Market-Makers already
                                                                                choose appointments.
                                                                                Removes current
                                                                                language that refers
                                                                                to the creation of
                                                                                Virtual Trading
                                                                                Crowds (``VTCs'') The
                                                                                Exchange previously
                                                                                maintained two
                                                                                different assignment
                                                                                types for appointment
                                                                                costs, VTC and
                                                                                Physical Trading
                                                                                Crowd (``PTC'') \9\
                                                                                and PTC appointments
                                                                                have long been
                                                                                eliminated,
                                                                                therefore, there is
                                                                                no longer a need to
                                                                                discern VTC
                                                                                appointments; all
                                                                                appointments assign
                                                                                appointment costs in
                                                                                the same manner.
                                                                                Deletes language that
                                                                                allows the Exchange
                                                                                to group classes and
                                                                                make appointments to
                                                                                those groupings
                                                                                because the Exchange
                                                                                does not invoke these
                                                                                provisions and Market-
                                                                                Makers already select
                                                                                their own
                                                                                appointments. Deletes
                                                                                redundant language
                                                                                and provisions
                                                                                proposed or currently
                                                                                elsewhere in the
                                                                                rules, updates cross-
                                                                                references, paragraph
                                                                                numbering, headings,
                                                                                and language to read
                                                                                in plain English.
Rule 6.1A (Global Trading
 Hours), paragraph (e)
 (Appointments).
Rule 8.7 (Obligations of Market- Rule 5.51 (Market- C2 Rule 8.5, EDGX  N................  Moves current Rule
 Makers).                         Maker              Options Rule                          8.7(a) and (b) and
                                  Obligations).      22.5, BZX                             Interpretation and
                                                     Options Rule                          Policy .09 to
                                                     22.5.                                 proposed rule and
                                                                                conforms to the
                                                                                Affiliated Options
                                                                                Exchanges' rules to
                                                                                the extent necessary
                                                                                to adhere to existing
                                                                                Exchange rule text,
                                                                                maintain provisions
                                                                                specific to Cboe
                                                                                Options rules, and to
                                                                                account for details/
                                                                                descriptions included
                                                                                in the Exchange's
                                                                                Rules but not in the
                                                                                applicable rules of
                                                                                the Affiliated
                                                                                Options Exchanges.
                                                                                Removes provisions
                                                                                redundant of and/or
                                                                                already encompassed
                                                                                by a Market-Maker's
                                                                                obligation to engage
                                                                                in dealing to
                                                                                maintain fair and
                                                                                orderly markets.
                                                                                Proposed Rule
                                                                                5.51(e), which
                                                                                provides that if the
                                                                                Exchange finds any
                                                                                substantial or
                                                                                continued failure by
                                                                                a Market-Maker to
                                                                                engage in a course of
                                                                                dealings, the Market-
                                                                                Maker will be subject
                                                                                to disciplinary
                                                                                action or suspension
                                                                                or revocation of its
                                                                                registration or its
                                                                                appointment(s), is
                                                                                based on and
                                                                                consistent with the
                                                                                Affiliated Exchanges'
                                                                                rules, as well as the
                                                                                Exchange's current
                                                                                authority to take
                                                                                disciplinary action
                                                                                for Market-Maker
                                                                                failure to meet its
                                                                                Market-Maker
                                                                                obligations (e.g.
                                                                                continuous quoting
                                                                                requirements).
Rule 8.7 (Obligations of Market- Rule 5.52 (Market- C2 Rule 8.6, EDGX  Y: see below for   Moves current Rule
 Makers).                         Maker Quotes).     Options Rule       further details.   8.7(c) and (d), as
                                                     22.6, BZX                             well as
                                                     Options Rule                          Interpretations and
                                                     22.6.                                 Policies .03, .05,
                                                                                .06, .09, .10, and
                                                                                .11 to proposed rule.
                                                                                Conforms proposed
                                                                                quoting obligation
                                                                                provisions to
                                                                                Affiliated Options
                                                                                Exchanges' quoting
                                                                                obligation rules
                                                                                (including for GTH)
                                                                                to the extent
                                                                                necessary to adhere
                                                                                to existing Exchange
                                                                                rule text, maintains
                                                                                provisions specific
                                                                                to the Exchange and
                                                                                to account for
                                                                                details/descriptions
                                                                                included in the
                                                                                Exchange's Rules but
                                                                                not in the applicable
                                                                                Affiliated Options
                                                                                Exchanges' rules.
                                                                                Moves the definition
                                                                                of ``continuous
                                                                                quoting obligations''
                                                                                from current Rule 1.1
                                                                                for consistency and
                                                                                consolidation; this
                                                                                includes the current
                                                                                two-sided quote
                                                                                requirement language
                                                                                which is incorporated
                                                                                into proposed Rule
                                                                                5.52(c). Deletes Rule
                                                                                6.1A(e)(iv), as this
                                                                                was related separate
                                                                                trading session
                                                                                appointments and
                                                                                Hybrid classes,
                                                                                neither will be
                                                                                applicable upon
                                                                                migration. Proposed
                                                                                rule does not
                                                                                substantively alter
                                                                                current obligations
                                                                                but rather removes
                                                                                redundancies and
                                                                                makes the quoting
                                                                                obligation rules
                                                                                easier to follow by
                                                                                consolidating current
                                                                                provisions and
                                                                                streamlining language
                                                                                (which includes
                                                                                removing the lengthy
                                                                                and potentially
                                                                                confusing examples
                                                                                under current
                                                                                8.7(d)(iii); the
                                                                                Exchange instead
                                                                                currently
                                                                                disseminates notices
                                                                                with such examples,
                                                                                explanations, answers
                                                                                to FAQ, and Exchange
                                                                                contact information).
                                                                                Deletes obsolete and
                                                                                redundant language/
                                                                                provisions, updates
                                                                                cross-references,
                                                                                paragraph lettering,
                                                                                headings, and
                                                                                language to read in
                                                                                plain English.
Rule 1.1 (definition of
 ``continuous quoting
 obligations'').
Rule 6.1A (Global Trading
 Hours), paragraph (e)(iv).
N/A............................  Rule 5.53 (Good-   C2 Rule 8.4, EDGX  Y: see below for   Proposed rule conforms
                                  Standing for       Options Rule       further details.   to Market-Maker good
                                  Market-Makers).    22.4, BZX                             standing rules of the
                                                     Options Rule                          Affiliated Options
                                                     22.4.                                 Exchanges.

Rule 8.13 (Preferred Market-     Rule 5.56 (PMMs).  C2 Rule 8.6, EDGX  Y: update of the   Moves current 8.13(b)-
 Makers).                                            Options 22.6,      time-to-           (d) and
                                                     BZX Options 22.6.  expiration         Interpretations and
                                                                        language for       Policies .01(a)
                                                                        certain series     through .04 to
                                                                        excluded is the    proposed rule.
                                                                        only substantive   Codifies that PMM
                                                                        change made;       obligations are
                                                                        described below.   applicable only
                                                                                during Regular
                                                                                Trading Hours, which
                                                                                is currently the
                                                                                manner in which they
                                                                                apply. Updates the
                                                                                language in current
                                                                                Rule 8.13 to clarify
                                                                                that receipt of PMM
                                                                                orders is the point
                                                                                in time when a PMM
                                                                                receives an
                                                                                entitlement (i.e.
                                                                                after being preferred
                                                                                on an order), this is
                                                                                currently that manner
                                                                                in which receipt
                                                                                functions. Conforms
                                                                                time-to-expiration-
                                                                                language for series
                                                                                excluded to the
                                                                                Affiliated Options
                                                                                time-to-expiration
                                                                                (i.e. from 9 months
                                                                                to 270 days).
                                                                                Renumbers provisions,
                                                                                changes headings, and
                                                                                updates cross-
                                                                                references and
                                                                                language to read in
                                                                                plain English.
Rule 8.14 (Hybrid Trading        Rule 5.50 (Market- Consistent with    Y: see below for   Moves current Rule
 System Platforms & Market-       Maker              EDGX Options       further details.   8.14 to proposed
 Maker Participants).             Appointments)      Rule 22.2(c) *.                       paragraph (l).\10\
                                  paragraph (l).                                           Removes current Rule
                                                                                8.14(a) as it is no
                                                                                longer necessary
                                                                                because all classes
                                                                                now trade on the
                                                                                System (Hybrid
                                                                                Trading System).
                                                                                Removes conditions in
                                                                                current paragraph (b)
                                                                                for Exchange
                                                                                designation of
                                                                                classes without a DPM/
                                                                                LMM and updates rule
                                                                                language to reflect
                                                                                this change.
Rule 8.15 (Lead Market-Makers).  Rule 5.55 (LMMs).  N/A..............  N................  Moves current 8.15(b)-
                                                                                (d) and
                                                                                Interpretations and
                                                                                Policies .02--.04 to
                                                                                proposed rule,
                                                                                deletes certain
                                                                                provisions redundant
                                                                                of Market-Maker
                                                                                obligations under
                                                                                proposed Rule 5.52
                                                                                (current Rule 8.7, to
                                                                                which a LMM must
                                                                                already comply).
                                                                                Codifies that LMM
                                                                                obligations are
                                                                                applicable only
                                                                                during Regular
                                                                                Trading Hours, which
                                                                                is the current manner
                                                                                in which LMM
                                                                                obligations already
                                                                                apply. Renumbers
                                                                                provisions and
                                                                                updates cross-
                                                                                references and
                                                                                headings, and
                                                                                language to read in
                                                                                plain English. Moves
                                                                                current Rule
                                                                                6.1A(iii)(B) to Rule
                                                                                6.1A to proposed
                                                                                5.55(b).
Rule 6.1A (Global Trading
 Hours), paragraph (iii)(B).
Rule 8.84 (Conditions on the     Rule 5.50 (Market- N/A..............  N................  Moves current rule to
 Allocations of Securities to     Maker                                                    proposed 5.50(k),
 DPMs).                           Appointments).                                           Interpretation and
                                                                                Policy .02 to
                                                                                5.50(i)(5), and
                                                                                deletes current
                                                                                Interpretation and
                                                                                Policy .01(b) because
                                                                                it is redundant of an
                                                                                existing provision in
                                                                                current Rule 8.95
                                                                                with which current
                                                                                Rule 8.84 is being
                                                                                consolidated with in
                                                                                proposed Rule 5.50.
                                                                                Renumbers provisions
                                                                                and updates cross-
                                                                                references and
                                                                                headings, and
                                                                                language to read in
                                                                                plain English.
Rule 8.85 DPM Obligations......  Rule 5.54 (DPMs).  N/A..............  Y: see below for   Moves current rule,
                                                                        further details.   including
                                                                                Interpretations and
                                                                                Policies, to proposed
                                                                                rule. Codifies that
                                                                                DPM obligations are
                                                                                applicable only
                                                                                during Regular
                                                                                Trading Hours, which
                                                                                is the current manner
                                                                                in which DPM
                                                                                obligations already
                                                                                apply. Removes
                                                                                segregation of
                                                                                account requirements
                                                                                for DPM-related
                                                                                transactions. Deletes
                                                                                current 8.85(a)(ii)
                                                                                which states
                                                                                obligations redundant
                                                                                of those in
                                                                                8.85(a)(i). Deletes
                                                                                Rule 8.85(a)(iii)
                                                                                which is redundant of
                                                                                Market-Maker
                                                                                obligations under
                                                                                proposed rule 5.52
                                                                                (current Rule 8.7, to
                                                                                which a DPM must
                                                                                already comply).
                                                                                Changes ``Exchange
                                                                                committee to
                                                                                ``Exchange'' as the
                                                                                Exchange, rather than
                                                                                a specific committee,
                                                                                requires DPM
                                                                                Designees. Renumbers
                                                                                provisions and
                                                                                updates cross-
                                                                                references and
                                                                                headings and language
                                                                                to read in plain
                                                                                English
Rule 8.95 (Allocation of         Rule 5.50 (Market- N/A..............  N................  Deletes Interpretation
 Securities and Location of       Maker                                                    and Policy .04 which
 Trading Crowds and DPMs).        Appointments).                                           would be redundant of
                                                                                Rule 8.84, also being
                                                                                consolidated into
                                                                                proposed Rule 5.50.
                                                                                Deletes current
                                                                                8.95(j) and
                                                                                Interpretation and
                                                                                Policy .03, which is
                                                                                obsolete as it refers
                                                                                to classes open for
                                                                                trading prior to
                                                                                1987. Renumbers
                                                                                provisions and
                                                                                updates headings and
                                                                                cross-references and
                                                                                language to read in
                                                                                plain English.
Rule 21.19 (Obligations of       N/A..............  C2 Rule 8.6, EDGX  N................  Deletes current rule
 Market-Makers (Treasury Bonds                       Options Rule                          (which covers bid/ask
 and Notes)).                                        22.6, BZX                             requirements for
                                                     Options Rule                          government
                                                     22.6.                                 securities) to align
                                                                                with proposed no bid/
                                                                                ask requirement,
                                                                                which is consistent
                                                                                with the Affiliated
                                                                                Options Exchanges. In
                                                                                addition, the
                                                                                Exchange delisted
                                                                                government securities
                                                                                in 2011, therefore,
                                                                                Market-Maker
                                                                                obligations in such
                                                                                classes are no longer
                                                                                relevant.
Rule 22.14 (Maximum Bid-Ask      N/A..............  N/A..............  N................  Deletes current rule
 Differentials; Market-Maker                                                               (which covers bid/ask
 Appointments & Obligations).                                                              requirements for
                                                                                binary options) to
                                                                                align with proposed
                                                                                no bid/ask
                                                                                requirement, which is
                                                                                consistent with the
                                                                                Affiliated Options
                                                                                Exchanges. In
                                                                                addition, the
                                                                                Exchange delisted
                                                                                binary options in
                                                                                2015, therefore,
                                                                                Market-Maker
                                                                                obligations in such
                                                                                classes are no longer
                                                                                relevant.
29.17 (Market-Maker              N/A..............  N/A..............  N................  Deletes current rule,
 Appointments & Obligations).                                                              which provides for
                                                                                certain Market-Making
                                                                                obligations in
                                                                                relation to Credit
                                                                                Option classes as the
                                                                                Exchange delisted
                                                                                Credit Options in
                                                                                2014, therefore, this
                                                                                provision is no
                                                                                longer relevant to
                                                                                the current or
                                                                                proposed Market-Maker
                                                                                program.
Rule 24A.9 (FLEX Market-Maker    Rule 5.57 (FLEX    N/A..............  N................  Moves current Rule
 Appointments and Obligations).   Market-Makers).                                          21A.9(d) and (e) to
                                                                                proposed rule.
                                                                                Removes current Rule
                                                                                21A.9(c) regarding
                                                                                FLEX Appointed Market-
                                                                                Maker obligations
                                                                                because the Exchange
                                                                                currently does not
                                                                                have any FLEX
                                                                                Appointed Market-
                                                                                Makers. To the extent
                                                                                the Exchange
                                                                                determines in the
                                                                                future to have FLEX
                                                                                Appointed Market-
                                                                                Makers in place, the
                                                                                Exchange will submit
                                                                                a separate rule
                                                                                filing. Updates cross-
                                                                                references, heading,
                                                                                and language to read
                                                                                in plain English.
Rule 8.7 (Obligations of Market- Rule 5.51 (Market- C2 Rule 8.5, EDGX  N................  Moves current Rule
 Makers).                         Maker              Options Rule                          8.7(a) and (b) and
                                  Obligations).      22.5, BZX                             Interpretation and
                                                     Options Rule                          Policy .09 to
                                                     22.5.                                 proposed rule and
                                                                                conforms to the
                                                                                Affiliated Options
                                                                                Exchanges' rules to
                                                                                the extent necessary
                                                                                to adhere to existing
                                                                                Exchange rule text,
                                                                                maintain provisions
                                                                                specific to Cboe
                                                                                Options rules, and to
                                                                                account for details/
                                                                                descriptions included
                                                                                in the Exchange's
                                                                                Rules but not in the
                                                                                applicable rules of
                                                                                the Affiliated
                                                                                Options Exchanges.
                                                                                Removes provisions
                                                                                redundant of and/or
                                                                                already encompassed
                                                                                by a Market-Maker's
                                                                                obligation to engage
                                                                                in dealing to
                                                                                maintain fair and
                                                                                orderly markets.
                                                                                Proposed Rule
                                                                                5.51(e), which
                                                                                provides that if the
                                                                                Exchange finds any
                                                                                substantial or
                                                                                continued failure by
                                                                                a Market-Maker to
                                                                                engage in a course of
                                                                                dealings, the Market-
                                                                                Maker will be subject
                                                                                to disciplinary
                                                                                action or suspension
                                                                                or revocation of its
                                                                                registration or its
                                                                                appointment(s), is
                                                                                based on and
                                                                                consistent with the
                                                                                Affiliated Exchanges'
                                                                                rules, as well as the
                                                                                Exchange's current
                                                                                authority to take
                                                                                disciplinary action
                                                                                for Market-Maker
                                                                                failure to meet its
                                                                                Market-Maker
                                                                                obligations (e.g.
                                                                                continuous quoting
                                                                                requirements).

Rule 8.7 (Obligations of Market- Rule 5.52 (Market- C2 Rule 8.6, EDGX  Y: see below for   Moves current Rule
 Makers).                         Maker Quotes).     Options Rule       further details.   8.7(c) and (d), as
                                                     22.6, BZX                             well as
                                                     Options Rule                          Interpretations and
                                                     22.6.                                 Policies .03, .05,
                                                                                .06, .09, .10, and
                                                                                .11 to proposed rule.
                                                                                Conforms proposed
                                                                                quoting obligation
                                                                                provisions to
                                                                                Affiliated Options
                                                                                Exchanges' quoting
                                                                                obligation rules
                                                                                (including for GTH)
                                                                                to the extent
                                                                                necessary to adhere
                                                                                to existing Exchange
                                                                                rule text, maintains
                                                                                provisions specific
                                                                                to the Exchange and
                                                                                to account for
                                                                                details/descriptions
                                                                                included in the
                                                                                Exchange's Rules but
                                                                                not in the applicable
                                                                                the Affiliated
                                                                                Options Exchanges'
                                                                                rules. Moves the
                                                                                definition of
                                                                                ``continuous quoting
                                                                                obligations'' from
                                                                                current Rule 1.1 for
                                                                                consistency and
                                                                                consolidation; this
                                                                                includes the current
                                                                                two-sided quote
                                                                                requirement language
                                                                                which is incorporated
                                                                                into proposed Rule
                                                                                5.52(c). Deletes Rule
                                                                                6.1A(e)(iv), as this
                                                                                was related separate
                                                                                trading session
                                                                                appointments and
                                                                                Hybrid classes,
                                                                                neither will be
                                                                                applicable upon
                                                                                migration. Proposed
                                                                                rule does not
                                                                                substantively alter
                                                                                current obligations
                                                                                but rather removes
                                                                                redundancies and
                                                                                makes the quoting
                                                                                obligation rules
                                                                                easier to follow by
                                                                                consolidating current
                                                                                provisions and
                                                                                streamlining language
                                                                                (which includes
                                                                                removing the lengthy
                                                                                and potentially
                                                                                confusing examples
                                                                                under current
                                                                                8.7(d)(iii); the
                                                                                Exchange instead
                                                                                currently
                                                                                disseminates notices
                                                                                with such examples,
                                                                                explanations, answers
                                                                                to FAQ, and Exchange
                                                                                contact information).
                                                                                Deletes obsolete and
                                                                                redundant language/
                                                                                provisions, updates
                                                                                cross-references,
                                                                                paragraph lettering,
                                                                                headings, and
                                                                                language to read in
                                                                                plain English.
Rule 1.1 (definition of
 ``continuous quoting
 obligations'').
Rule 6.1A (Global Trading
 Hours), paragraph (e)(iv).
N/A............................  Rule 5.53 (Good-   C2 Rule 8.4, EDGX  Y: see below for   Proposed rule conforms
                                  Standing for       Options Rule       further details.   to Market-Maker good
                                  Market-Makers).    22.4, BZX                             standing rules of the
                                                     Options Rule                          Affiliated Options
                                                     22.4.                                 Exchanges.
Rule 8.13 (Preferred Market-     Rule 5.56 (PMMs).  C2 Rule 8.6, EDGX  Y: update of the   Moves current 8.13(b)-
 Makers).                                            Options 22.6,      time-to-           (d) and
                                                     BZX Options 22.6.  expiration         Interpretations and
                                                                        language for       Policies .01(a)
                                                                        certain series     through .04 to
                                                                        excluded is the    proposed rule.
                                                                        only substantive   Codifies that PMM
                                                                        change made;       obligations are
                                                                        described below..  applicable only
                                                                                during Regular
                                                                                Trading Hours, which
                                                                                is currently the
                                                                                manner in which they
                                                                                apply. Updates the
                                                                                language in current
                                                                                Rule 8.13 to clarify
                                                                                that receipt of PMM
                                                                                orders is the point
                                                                                in time when a PMM
                                                                                receives an
                                                                                entitlement (i.e.
                                                                                after being preferred
                                                                                on an order), this is
                                                                                currently that manner
                                                                                in which receipt
                                                                                functions. Conforms
                                                                                time-to-expiration-
                                                                                language for series
                                                                                excluded to the
                                                                                Affiliated Options
                                                                                time-to-expiration
                                                                                (i.e. from 9 months
                                                                                to 270 days).
                                                                                Renumbers provisions,
                                                                                changes headings, and
                                                                                updates cross-
                                                                                references and
                                                                                language to read in
                                                                                plain English.
Rule 8.14 (Hybrid Trading        Rule 5.50 (Market- Consistent with    Y: see below for   Moves current Rule
 System Platforms & Market-       Maker              EDGX Options       further details.   8.14 to proposed
 Maker Participants).             Appointments)      Rule 22.2(c) *.                       paragraph (l).\11\
                                  paragraph (l).                                           Removes current Rule
                                                                                8.14(a) as it is no
                                                                                longer necessary
                                                                                because all classes
                                                                                now trade on the
                                                                                System (Hybrid
                                                                                Trading System).
                                                                                Removes conditions in
                                                                                current paragraph (b)
                                                                                for Exchange
                                                                                designation of
                                                                                classes without a DPM/
                                                                                LMM and updates rule
                                                                                language to reflect
                                                                                this change.
Rule 8.15 (Lead Market-Makers).  Rule 5.55 (LMMs).  N/A..............  N................  Moves current 8.15(b)-
                                                                                (d) and
                                                                                Interpretations and
                                                                                Policies .02--.04 to
                                                                                proposed rule,
                                                                                deletes certain
                                                                                provisions redundant
                                                                                of Market-Maker
                                                                                obligations under
                                                                                proposed Rule 5.52
                                                                                (current Rule 8.7, to
                                                                                which a LMM must
                                                                                already
                                                                                comply).Codifies that
                                                                                LMM obligations are
                                                                                applicable only
                                                                                during Regular
                                                                                Trading Hours, which
                                                                                is the current manner
                                                                                in which LMM
                                                                                obligations already
                                                                                apply. Renumbers
                                                                                provisions and
                                                                                updates cross-
                                                                                references and
                                                                                headings, and
                                                                                language to read in
                                                                                plain English. Moves
                                                                                current Rule
                                                                                6.1A(iii)(B) to Rule
                                                                                6.1A to proposed
                                                                                5.55(b).
Rule 6.1A (Global Trading
 Hours), paragraph (iii)(B).
Rule 8.84 (Conditions on the     Rule 5.50 (Market- N/A..............  N................  Moves current rule to
 Allocations of Securities to     Maker                                                    proposed 5.50(k),
 DPMs).                           Appointments).                                           Interpretation and
                                                                                Policy .02 to
                                                                                5.50(i)(5), and
                                                                                deletes current
                                                                                Interpretation and
                                                                                Policy .01(b) because
                                                                                it is redundant of an
                                                                                existing provision in
                                                                                current Rule 8.95
                                                                                with which current
                                                                                Rule 8.84 is being
                                                                                consolidated with in
                                                                                proposed Rule 5.50.
                                                                                Renumbers provisions
                                                                                and updates cross-
                                                                                references and
                                                                                headings, and
                                                                                language to read in
                                                                                plain English.
Rule 8.85 DPM Obligations......  Rule 5.54 (DPMs).  N/A..............  Y: see below for   Moves current rule,
                                                                        further details.   including
                                                                                Interpretations and
                                                                                Policies, to proposed
                                                                                rule. Codifies that
                                                                                DPM obligations are
                                                                                applicable only
                                                                                during Regular
                                                                                Trading Hours, which
                                                                                is the current manner
                                                                                in which DPM
                                                                                obligations already
                                                                                apply. Removes
                                                                                segregation of
                                                                                account requirements
                                                                                for DPM-related
                                                                                transactions. Deletes
                                                                                current 8.85(a)(ii)
                                                                                which states
                                                                                obligations redundant
                                                                                of those in
                                                                                8.85(a)(i). Deletes