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

General Comment:75 days is not enough time! Please extend the comment period to 180 days!


[Federal Register Volume 80, Number 133 (Monday, July 13, 2015)]
[Notices]
[Pages 40116-40118]
[FR Doc No: 2015-16980]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75378; File No. SR-CBOE-2015-067]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change to Delay Implementation of Tied to Stock Marking
Requirement for Certain Orders

July 7, 2015.
    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 July 1, 2015, Chicago Board Options Exchange, Incorporated (the
``Exchange'' or ``CBOE'') filed with the Securities and Exchange
Commission (the ``Commission'') the proposed rule change as described
in Items I and II below, which Items have been prepared by the
Exchange. The Exchange filed the proposal as a ``non-controversial''
proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act
\3\ and Rule 19b-4(f)(6) thereunder.\4\ The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to delay the implementation of the marking
requirement set forth in Rule 6.53(y) with respect to certain orders.
There is no proposed change to the rule text.

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
    On August 13, 2014, the Securities and Exchange Commission (the
``Commission'') approved CBOE Rules 6.53(y) and 15.2A.\5\ Rule 6.53(y)
defines a tied to stock order \6\ and requires the representing Trading
Permit Holder to include an indicator on each tied to stock order upon
systemization, subject to certain exceptions. Rule 15.2A requires, in a
manner and form prescribed by the Exchange, each Trading Permit Holder
(``TPH''), on the business day following the order execution date, to
report to the Exchange certain information regarding the executed stock
or convertible security legs of qualified contingent cross (``QCC'')
orders,\7\ stock-option orders and other tied to stock orders that the
TPH executed on the Exchange that trading day. The Exchange stated in
rule filing SR-CBOE-2014-040 that it would issue a circular announcing
the implementation date for these rules within 90 days of the date of
filing, which implementation date would be within 180 days of the date
of filing.
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    \5\ Securities Exchange Act Release No. 72839 (August 13, 2014),
79 FR 49123 (August 19, 2014) (SR-CBOE-2014-040) (order approving
Rules 6.53(y) and 15.2A).
    \6\ Rule 6.53(y) provides that an order is ``tied to stock'' if,
at the time the Trading Permit Holder representing the order on the
Exchange receives the order (if the order is a customer order) or
initiates the order (if the order is a is a proprietary order), has
knowledge that the order is coupled with an order(s) for the
underlying stock or a security convertible into the underlying stock
(``convertible security'' and, together with underlying stock,
``non-option'').
    \7\ A QCC order is an order to buy (sell) at least 1,000
standard option contracts or 10,000 mini-option contracts that is
identified as being part of a qualified contingent trade coupled
with a contra-side order to sell (buy) an equal number of contracts.
These orders may only be entered in the standard increments
applicable to simple orders in the options class under Rule 6.42.
For purposes of this order type, a ``qualified contingent trade'' is
a transaction consisting of two or more component orders, executed
as agent or principal, where: (a) at least one component is an NMS
stock, as defined in Rule 600 of Regulation NMS under the Act; (b)
all components are effected with a product or price contingency that
either has been agreed to by all the respective counterparties or
arranged for by a broker-dealer as principal or agent; (c) the
execution of one component is contingent upon the execution of all
other components at or near the same time; (d) the specific
relationship between the component orders (e.g., the spread between
the prices of the component orders) is determined by the time the
contingent order is placed; (e) the component orders bear a
derivative relationship to one another, represent different classes
of shares of the same issuer, or involve the securities of
participants in mergers or with intentions to merge that have been
announced or cancelled; and (f) the transaction is fully hedged
(without regard to any prior existing position) as a result of other
components of the contingent trade. QCC orders may execute without
exposure provided the execution is not at the same price as a public
customer order resting in the electronic book and is at or between
the national best bid or offer. A QCC order will be cancelled if it
cannot be executed. See Rule 6.53(u). The Exchange notes that it
deactivated the QCC functionality effective August 11, 2014 and will
announce any reactivation of QCC functionality by Regulatory
Circular. See Regulatory Circular RG14-121.
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    On January 7, 2015, CBOE submitted a rule filing to delay the
implementation of these rules based on feedback it received from
TPHs.\8\ The Exchange stated in that rule filing that it would issue a
circular announcing the implementation date for the rules within 90
days of the date of the rule

filing, which implementation date would be within 180 days of the date
of filing. In accordance with that filing, the Exchange recently issued
a regulatory circular on April 7, 2015, which announced a July 1, 2015
implementation date for the tied to stock marking and reporting
requirements.\9\ On May 20, 2015, CBOE submitted a rule filing to
further delay the implementation of the reporting requirement set forth
in Rule 15.2A in order to evaluate the format of the reports in light
of its entry into a Regulatory Services Agreement with the Financial
Industry Regulatory Authority, Inc. (``FINRA'').\10\ In that filing,
CBOE announced its intention to proceed with the implementation of the
marking requirement set forth in Rule 6.53(y) on July 1, 2015.
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    \8\ Securities Exchange Act Release No. 34-74067 (January 15,
2015), 80 FR 3267 (January 22, 2015) (SR-CBOE-2015-004) (notice of
immediate effectiveness of rule filing).
    \9\ CBOE Regulatory Circular RG15-056 (April 7, 2015).
    \10\ Securities Exchange Act Release No. 34-75029 (May 21,
2015), 80 FR 30506 (May 28, 2015) (SR-CBOE-2015-051) (notice of
immediate effectiveness of rule filing).
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    The Exchange believes it is appropriate to implement on a limited
basis the marking requirement on July 1, 2015 with respect to orders
sent to the Exchange for nonelectronic processing (i.e., orders
received and systematized by floor brokers handling orders on the CBOE
trading floor), but proposes to delay the implementation of the marking
requirement with respect to all other orders (i.e., orders submitted to
the Exchange for electronic processing). While the Exchange continues
to believe that there has been sufficient notice, training and
circulars provided to Trading Permit Holders on the marking requirement
with respect to electronic orders, based on recent feedback from
Trading Permit Holders regarding their development efforts related to
the marking requirement, CBOE believes it is appropriate to provide
Trading Permit Holders with additional time to complete their necessary
systems development work to comply with this new marking requirement.
However, since CBOE has completed development work to allow floor
brokers to mark orders as tied to stock on devices approved by the
Exchange that may be used on the trading floor for the systemization of
orders represented in open outcry,\11\ CBOE believes it is appropriate
to move forward with implementing the tied to stock marking requirement
with respect to those orders.
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    \11\ Currently, the only Exchange-approved devices are the PULSe
workstation, the Floor Broker Workstation (``FBW'') and FBW 2, which
CBOE makes available to floor brokers. Pursuant to Rule 6.53(y),
Trading Permit Holders representing tied to stock orders on the
Exchange must apply the marking at the time of systemization of the
order.
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    CBOE delayed the implementation of Rule 15.2A for 12 to 18 months
from the date of the filing that proposed that delay.\12\ CBOE proposes
to similarly delay implementation of the tied to stock marking
requirement in Rule 6.53(y) with respect to orders submitted for
electronic processing for 6 to 18 months from the date of this
filing.\13\ This will provide Trading Permit Holders with sufficient
time to complete their systems development work to comply with the tied
to stock marking requirement. During the delay, as part of CBOE's
evaluation it is conducting in connection with the delay of the
implementation of the reporting requirement, CBOE will evaluate the
number of orders represented in open outcry that are marked as tied to
stock, which will permit CBOE to evaluate the number of reports it can
expect to receive with respect to those orders and the potential impact
of the reports on CBOE's surveillances. The Exchange will issue a
regulatory circular announcing the new implementation date for the
reporting requirement as least 180 days prior to that date.
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    \12\ See supra note 10. In that filing, CBOE indicated that it
planned to evaluate the format of the reports with FINRA to ensure
that the information to be provided in the reports can be
incorporated into surveillances in an efficient and effective
manner. During the delay, CBOE intends to review the number of tied
to stock orders for which information regarding the stock or
convertible security leg is not available from CBOE's internal data
(which will permit CBOE to evaluate the number of reports it can
expect to receive and the potential impact of the reports on CBOE's
surveillances) and determine whether this additional information is
necessary in order to enhance its ability to effectively monitor and
conduct surveillance of the CBOE markets with respect to tied to
stock orders whose execution information is not electronically
captured by the audit trail.
    \13\ The Exchange may still implement the reporting requirement
and the marking requirement for electronic orders at separate times.
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2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act.\14\ Specifically, the Exchange believes the proposed rule change
is consistent with the Section 6(b)(5) \15\ requirements that the rules
of an exchange be designed to prevent fraudulent and manipulative acts
and practices, to promote just and equitable principles of trade, to
foster cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general, to protect investors and the public interest.
Additionally, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \16\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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    \14\ 15 U.S. C. 78f(b).
    \15\ 15 U.S. C. 78f(b)(5).
    \16\ Id.
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    In particular, the Exchange believes the delayed implementation of
Rule 6.53(y) with respect to orders submitted to the Exchange for
electronic processing will provide Trading Permit Holders with
sufficient time to perform systems development work that will allow
them to comply with the marking requirement for those orders, which
will prevent fraudulent and manipulative acts and practices and promote
just and equitable principles of trade. Additionally, the proposed
delay will provide the Exchange with sufficient time to evaluate the
information obtained through the marking requirement with respect to
orders submitted for nonelectronic processing, as part of its ongoing
evaluation of the related reporting requirement format. The Exchange
believes the ability to tie executed non-option legs to the applicable
option legs that were separately submitted for execution will assist in
the Exchange's efforts to prevent fraudulent and manipulative acts and
practices with respect to tied to stock orders, but only if Trading
Permit Holders are able to apply the marking in accordance with the
rule.

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

    CBOE does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The proposed change does not
impose any burden on competition, as it is simply seeking to delay the
implementation of the tied to stock marking requirement with respect to
certain orders. The implementation on July 1, 2015 of the marking
requirement with respect to orders sent to the Exchange for
nonelectronic processing is consistent with previous rule filings and
was announced to Trading Permit Holders in regulatory circulars.

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

    The Exchange neither solicited nor received comments on the
proposed rule change.

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

    Because the foregoing proposed rule change does not: (i)
significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(ii) of the Act \17\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\18\
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    \17\ 15 U.S. C. 78s(b)(3)(A)(ii).
    \18\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change along with a
brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has met this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) \19\ normally
does not become operative for 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6)(iii) \20\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange requested
that the Commission waive the 30-day operative delay. The Exchange
noted this proposed rule change merely further delays implementation of
a marking requirement with respect to certain orders. The Exchange also
previously indicated it would implement the marking requirement by July
6, 2015, which date is less than 30 days from the date of the filing.
According to the Exchange, Trading Permit Holders have provided
feedback that they will not be in a position to comply the marking
requirement for electronic orders by that date. The Exchange believes
the Commission should waive the operative delay to ensure that the
Exchange will not be required to implement the marking requirement with
respect to those orders prior to Trading Permit Holders having
compliant systems ready to apply the marking.
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    \19\ 17 CFR 240.19b-4(f)(6).
    \20\ 17 CFR 240.19b-4(f)(6)(iii).
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    The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest.
Delaying the July 1, 2015 implementation date will allow more time for
the Exchange and Trading Permit Holders to work together to ensure that
Trading Permit Holder have compliant systems. For this reason, the
Commission designates the proposed rule change to be operative on July
1, 2015.\21\
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    \21\ For purposes only of waiving the operative delay, the
Commission has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S. C. 78c(f).
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-CBOE-2015-067 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CBOE-2015-067. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-CBOE-2015-067 and should be
submitted on or before August 3, 2015.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
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    \22\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-16980 Filed 7-10-15; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 88, Number 31 (Wednesday, February 15, 2023)]
[Notices]
[Pages 9938-9940]
[FR Doc No: 2023-03161]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-96856; File No. SR-CBOE-2023-011]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
the Select Customer Options Reduction Program

February 9, 2023.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on February 1, 2023, Cboe Exchange, Inc. (the ``Exchange'' or
``Cboe Options'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I,
II, and III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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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 the Select Customer Options Reduction program. The text of the
proposed rule change is provided in Exhibit 5.
    The text of the proposed rule change is also available on the
Exchange's website (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the
Secretary, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend the Select Customer Options
Reduction program (``SCORe''), effective February 1, 2023.
    By way of background, SCORe is a discount program for Retail, Non-
FLEX Customer (``C'' origin code) volume in the following options
classes: SPX (including SPXW), VIX, RUT, MXEA, MXEF & XSP (``Qualifying
Classes''). The SCORe program is available to any Trading Permit Holder
(``TPH'') Originating Clearing Firm or non-TPH Originating Clearing
Firm that sign up for the program.\3\
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    \3\ For this program, an ``Originating Clearing Firm'' is
defined as either (a) the executing clearing Options Clearing
Corporation (``OCC'') number on any transaction which does not also
include a Clearing Member Trading Agreement (``CMTA'') OCC clearing
number or (b) the CMTA in the case of any transaction which does
include a CMTA OCC clearing number.
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    Currently, SCORe currently utilizes two measures for participation
and discounts: (1) the Qualifying Tiers, which determine whether a firm
qualifies for the discounts in either Tier A or Tier B and (2) the
Discount Tiers, which determine the Originating Firm's applicable
discount tiers and corresponding discounts. Under the current program,
to determine an Originating Firm's Qualifying Tier, the Originating
Firm's total Retail volume in the Qualifying Classes will be divided by
the Originating Firm's total Customer volume, Retail and non-Retail, in
the Qualifying Classes. Based on the percentage result, an Originating
Firm qualifies for Tier A or Tier B discounts. To determine the
Discount Tier, an Originating Firm's Retail volume in the Qualifying
Classes will be divided by total Retail volume in the Qualifying
Classes executed on the Exchange. The program then provides a discount
per retail contract, based on the determined Qualifying Tier and
Discount Tier thereunder. Currently, the program sets forth three
discount tiers for Qualifying Tier A, with applicable discounts ranging
from $0 to $0.08 per retail contract, and five discount tiers for
Qualifying Tier B, with applicable discounts ranging from $0 to $0.25
per retail contract.
    The Exchange proposes to streamline the program by eliminating the
Qualifying Tiers construct. As amended, SCORe would utilize only one
measure for participation and discount (i.e., the Discount Tiers). All
Originating Firms would be subject to the same discount tier structure,
which determines the corresponding applicable discounts.
    The Exchange next proposes to amend the discount tier structure for
the Discount Tiers. Specifically, the Exchange proposes to consolidate
the program into four discount tiers based on qualifying volume, i.e.,
Discount Tiers 1-4, with corresponding discounts, as set forth below.

------------------------------------------------------------------------
                                                                Discount
                                Retail volume percentage in       per
            Tier                    qualifying classes           retail
                                                                contract
------------------------------------------------------------------------
1..........................  0.00%-5.00%.....................      $0.00
2..........................  Above 5.00%-21.00%..............       0.04
3..........................  Above 21.00%-31.00%.............       0.05
4..........................  Above 31.00%-100.00%............       0.14
------------------------------------------------------------------------

    The discount tier structure for the Discount Tiers will continue to
be based on the same calculation, i.e., to determine the Discount Tier,
an

Originating Firm's Retail volume in the Qualifying Classes will be
divided by total Retail volume in the Qualifying Classes executed on
the Exchange.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\4\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \5\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. Additionally,
the Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \6\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers. The Exchange also believes the proposed rule
change is consistent with Section 6(b)(4) of the Act,\7\ which requires
that Exchange rules provide for the equitable allocation of reasonable
dues, fees, and other charges among its Trading Permit Holders and
other persons using its facilities.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
    \6\ Id.
    \7\ 15 U.S.C. 78f(b)(4).
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    First, the Exchange believes the proposal to eliminate the
utilization of Qualifying Tiers as a measure for its SCORe program is
reasonable because it no longer wishes to consider this metric as part
of the program's participation and discounts, and it is not required to
do so. The Exchange also notes that the Qualifying Tier measure was
only one part of SCORe and believes the intention of the program will
continue to be achieved through utilization of the Discount Tiers
measure. The Exchange believes the proposed changes to eliminate the
utilization of Qualifying Tiers as a measure for its SCORe program and
to consolidate the discount tier structure into four Discount Tiers are
reasonable because it eliminates potential program complexity and
provides for a simpler calculation in determining qualifying thresholds
and applicable discounts. Further, the Exchange believes the amended
discount tier structure, including qualifying thresholds for the
proposed four Discount Tiers and corresponding applicable discounts,
remain equitable and reasonable by adequately considering the
elimination of the Qualifying Tier and not materially changing the
program.
    The Exchange believes SCORe, currently and as amended, continues to
provide an incremental incentive for Originating Firms to strive for
the highest tier level, which provides increasingly higher discounts.
As such, the changes are designed to encourage increased Retail volume
in the Qualifying Classes, which provides increased volume and greater
trading opportunities for all market participants. The Exchange
believes the proposed change is equitable and not unfairly
discriminatory because the qualifying volume thresholds apply to all
registered Originating Firms uniformly. Additionally, while the
Exchange has no way of predicting with certainty how many and which
Originating Firms will qualify for which Discount Tier, the Exchange
anticipates at least two Originating Firms will qualify for Tier 2, one
Originating Firm will qualify for Tier 3, and one Originating Firm will
qualify for Tier 4, to receive the applicable discounts for each Tier.
The Exchange does not believe the proposed discount will adversely
impact any Originating Firm's pricing. Rather, should an Originating
Firm not meet the proposed criteria, the Originating Firm will merely
not receive the proposed discount.

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange does not
believe that the proposed changes to the SCORe program will impose any
burden on intramarket competition because the proposed changes apply to
all registered Originating Firms uniformly, in that all Originating
Firms will be subject to the same qualifying thresholds for the
proposed four Discount Tiers and corresponding applicable discounts.
The Exchange does not believe that the proposed rule changes will
impose any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act because the
Qualifying Classes are products that only trade on the Exchange. To the
extent that the proposed changes make the Exchange a more attractive
marketplace for market participants at other exchanges, such market
participants are welcome to become Cboe Options market participants.

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

    The Exchange neither solicited nor received comments on the
proposed rule change.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \8\ and paragraph (f) of Rule 19b-4 \9\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please
include File Number SR-CBOE-2023-011 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CBOE-2023-011. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will

post all comments on the Commission's internet website (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent
amendments, all written statements with respect to the proposed rule
change that are filed with the Commission, and all written
communications relating to the proposed rule change between the
Commission and any person, other than those that may be withheld from
the public in accordance with the provisions of 5 U.S.C. 552, will be
available for website viewing and printing in the Commission's Public
Reference Room, 100 F Street NE, Washington, DC 20549, on official
business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of
the filing also will be available for inspection and copying at the
principal office of the Exchange. All comments received will be posted
without change.
    Persons submitting comments are cautioned that we do not redact or
edit personal identifying information from comment submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-CBOE-2023-011
and should be submitted on or before March 8, 2023.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-03161 Filed 2-14-23; 8:45 am]
BILLING CODE 8011-01-P