[Federal Register Volume 80, Number 189 (Wednesday, September 30, 2015)]
[Notices]
[Pages 58808-58809]
[FR Doc No: 2015-24901]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

Membership in the National Parks Overflights Advisory Group
Aviation Rulemaking Committee

AGENCY: Federal Aviation Administration, Transportation.

ACTION: Notice.

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

SUMMARY: The Federal Aviation Administration (FAA) and the National
Park Service (NPS) are inviting interested persons to apply to fill one
upcoming opening on the National Parks Overflights Advisory Group
(NPOAG) Aviation Rulemaking Committee (ARC). The upcoming opening will
represent Native American interests. The selected member will serve a
3-year term.

DATES: Persons interested in applying for the NPOAG opening
representing Native American interests need to apply by October 30,
2015.

FOR FURTHER INFORMATION CONTACT: Keith Lusk, Special Programs Staff,
Federal Aviation Administration, Western-Pacific Region Headquarters,
P.O. Box 92007, Los Angeles, CA 90009-2007, telephone:<PHONE_NUMBER>,
email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Background

    The National Parks Air Tour Management Act of 2000 (the Act) was
enacted on April 5, 2000, as Public Law 106-181. The Act required the
establishment of the advisory group within 1 year after its enactment.
The NPOAG was established in March 2001. The advisory group is
comprised of a balanced group of representatives of general aviation,
commercial air tour operations, environmental concerns, and Native
American tribes. The Administrator of the FAA and the Director of NPS
(or their designees) serve as ex officio members of the group.
Representatives of the Administrator and Director serve alternating 1-
year terms as chairman of the advisory group.
    In accordance with the Act, the advisory group provides ``advice,
information, and recommendations to the Administrator and the
Director--
    (1) On the implementation of this title [the Act] and the
amendments made by this title;
    (2) On commonly accepted quiet aircraft technology for use in
commercial air tour operations over a national park or tribal lands,
which will receive preferential treatment in a given air tour
management plan;
    (3) On other measures that might be taken to accommodate the
interests of visitors to national parks; and
    (4) At the request of the Administrator and the Director, safety,
environmental, and other issues related to commercial air tour
operations over a national park or tribal lands.''

 Membership

    The NPOAG ARC is made up of one member representing general
aviation, three members representing the commercial air tour industry,
four

members representing environmental concerns, and two members
representing Native American interests. Current members of the NPOAG
ARC are as follows:
    The current NPOAG consists of Heidi Williams representing general
aviation; Alan Stephen, Mark Francis, and Matthew Zuccaro representing
commercial air tour operators; Michael Sutton, Nicholas Miller, Mark
Belles, and Dick Hingson representing environmental interests; and
Leigh Kuwanwisiwma and Martin Begaye representing Native American
interests. Mr. Begaye's 3-year membership expires on October 9, 2015.

Selection

    In order to retain balance within the NPOAG ARC, the FAA and NPS
are seeking candidates interested in filling Mr. Begaye's soon to be
expiring seat. The open seat to be filled will represent Native
American interests. The FAA and NPS invite persons interested in
representing Native American interests on the ARC to contact Mr. Keith
Lusk (contact information is written above in FOR FURTHER INFORMATION
CONTACT). Requests to serve on the ARC must be made to Mr. Lusk in
writing and postmarked or emailed on or before October 30, 2015. The
request should indicate whether or not you are a member of a Native
American tribe. The request should also state what expertise you would
bring to the NPOAG ARC as related to issues and concerns with aircraft
flights over national parks. The term of service for NPOAG ARC members
is 3 years. Current members may re-apply for another term.
    On June 18, 2010, President Obama signed a Presidential Memorandum
directing agencies in the Executive Branch not to appoint or re-appoint
federally registered lobbyists to advisory committees and other boards
and commissions. Therefore, before appointing an applicant to serve on
the NPOAG, the FAA and NPS will require the prospective candidate to
certify that they are not a federally registered lobbyist.

    Issued in Hawthorne, CA, on September 23, 2015.
Keith Lusk,
Program Manager, Special Programs Staff, Western-Pacific Region.
[FR Doc. 2015-24901 Filed 9-29-15; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register Volume 82, Number 242 (Tuesday, December 19, 2017)]
[Notices]
[Pages 60259-60262]
[FR Doc No: 2017-27227]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82308; File No. SR-CBOE-2017-077]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Relating
to the Fees Schedule

December 13, 2017.
    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 December 8, 2017, Cboe Exchange, Inc. (the ``Exchange'' or
``Cboe Options'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I,
II, and III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------

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

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

    The Exchanges seeks to amend the Fees Schedule. The text of the
proposed rule change is 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 the
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Pursuant to Footnote 38 of the Fees Schedule, if a Lead Market-
Maker (``LMM'') in SPX options during extended trading hours (``ETH'')
(1) provides continuous electronic quotes in at least the lesser of 99%
of the non-adjusted series or 100% of the non-adjusted series minus one
call-put pair in an ETH allocated class (excluding intra-day add-on
series on the day during which such series are added for trading) and
(2) enters opening quotes within five minutes of the initiation of an
opening rotation in any series that is not open due to the lack of a
quote (see Rule 6.2B(d)(i)(A) or (ii)(A)), provided that the LMM will
not be required to enter opening quotes in more than the same
percentage of series set forth in clause (1) for at least 90% of the
trading days during ETH in a month, the LMM will receive a rebate for
that month and will receive a pro-rata share of a compensation pool
equal to $15,000 times the number of LMMs in that class (or pro-rated
amount if an appointment begins after the first trading day of the
month or ends prior to the last trading day of the month).
    The Exchange proposes \3\ to amend Footnote 38 to modify the
standard an SPX LMM will need to satisfy in order to receive a rebate
for its ETH activity, and increase the compensation pool for SPX LMMs
to $30,000 per LMM.\4\ In addition to providing continuous electronic
quotes and entering opening quotes, as described above, in order for an
LMM in SPX to receive the monthly rebate, it must satisfy the following
time-weighted average quote widths and bid/ask sizes for each moneyness
category during the month: (A) Out of the money options (``OTM'')
category, average quote width of $0.75 or less and average bid/ask size
of 15 contracts or greater; (B) at the money options (``ATM'')
category, average quote width of $3.00 or less and bid/ask size of 10
contracts or more; and (C) in the money options (``ITM'') category,
average quote width of $10.00 or less and bid/ask size of 5 contracts
or more. In other words, the LMM will need to satisfy the following
nine criteria during a month to receive the payment described above for
that month.
---------------------------------------------------------------------------

    \3\ The Exchange initially filed the proposed rule change on
December 1, 2017 (SR-CBOE-2017-075). On December 8, 2017 the
Exchange withdrew SR-CBOE-2017-075 and then subsequently submitted
this filing (SR-CBOE-2017-077).
    \4\ The proposed rule change does not change the standard a VIX
LMM will need to meet to receive a rebate.

----------------------------------------------------------------------------------------------------------------
               OTM                          ATM                                    ITM
----------------------------------------------------------------------------------------------------------------
1. Avg. Quote Width <=$0.75......  4. Avg. Quote Width   7. Avg. Quote Width <=$10.00.
                                    <=$3.00.
2. Avg. Bid Size >=15............  5. Avg. Bid Size      8. Avg. Bid Size >=5.
                                    >=10.
3. Avg. Ask Size >=15............  6. Avg. Ask Size      9. Avg. Ask Size >=5.
                                    >=10.
----------------------------------------------------------------------------------------------------------------

    The Exchange believes time-weighted averages are a good way to
assess the overall quality of the market. The Exchange also believes
having separate requirements per moneyness category will encourage
tighter quote widths and larger sizes in each moneyness category.
    The Exchange will determine an SPX LMM's monthly time-weighted
average widths and sizes by capturing each of the LMM's quote
submission's width, bid size, ask size, and receipt time during the
month. Also, the percentage of series quoted will be weighted for the
time the series is available for quoting during a month. For example,
if a series is only listed for three days during a month, the
performance in that series is only weighted for those three days.
Additionally, the Exchange will exclude 5% of the total quote time for
all SPX series during the month in which the LMM was disseminating its
widest quotes and smallest bid/ask sizes. This will allow the LMM to
widen its quotes and decrease its bid/ask sizes consistent with its
risk model in response to market events during ETH while retaining the
opportunity to meet the quoting standard for the month.
    The below example demonstrates the manner in which the Exchange
determines the time-weighted average quote widths.
     Assume Series A and B are the only OTM series in SPX
during a month.
     If an LMM submits the below 6 quotes in Series A and B
during the entire month, the resultant time-weighted average quote
width in Series A for the month is as follows:

----------------------------------------------------------------------------------------------------------------
                                                                    Quote time
                                                                      weight                       Time-weighted
                                    Quote width    Time  (amount   (excludes 5%    Time-weighted  average  quote
                                    (difference      of time a      of the time     quote width    width  (time-
                                   between  the      quote is      during which   (quote width *     weighted
                                     bid-ask)       resting--in     the widest       quote time    quote width/
                                                   microseconds)    quotes were       weight)       quote time
                                                                   disseminated)                      weight)
----------------------------------------------------------------------------------------------------------------
Quote 1 (in A)..................            0.10          13,200          13,200           1,320  ..............
Quote 2 (in A)..................            0.10           3,600           3,600             360  ..............
Quote 3 (in B)..................            0.50           9,000           9,000           4,500  ..............
Quote 4 (in B)..................            0.90          14,400          14,400          12,960  ..............
Quote 5 (in B)..................            6.00           3,600           1,467           8,802  ..............
Quote 6 (in B)..................            8.75              60               0               0  ..............
                                 -------------------------------------------------------------------------------
    Total.......................  ..............          43,860          41,667          27,942
----------------------------------------------------------------------------------------------------------------
                                                                                0.67
----------------------------------------------------------------------------------------------------------------

    The time-weighted average quote width in OTM series for the month
is 0.67; thus, the LMM in this example has met the OTM time-weighted
average quote width to be eligible for the monthly payment, because its
time-weighted average quote width is less than 0.75 for the month.
    The Exchange determines the time-weighted average bid size and ask
size in a similar manner. For example:
     Assume Series A and B are the only OTM series in SPX
during a month.
     If an LMM submits the below 6 quotes in Series A and B
during the entire month, the resultant time-weighted average quote
width in Series A for the month is as follows:

----------------------------------------------------------------------------------------------------------------
                                                                    Quote time
                                                                      weight                       Time-weighted
                                                   Time  (amount   (excludes 5%    Time-weighted    average bid
                                                     of time a      of the time   bid size  (bid   size  (time-
                                     Bid size        quote is      during which    size*  quote    weighted bid
                                                    resting--in    the smallest    time  weight)    size/quote
                                                   microseconds)    quotes were                    time weight)
                                                                   disseminated)
----------------------------------------------------------------------------------------------------------------
Quote 1 (in A)..................              25          13,200          13,200         330,000  ..............
Quote 2 (in A)..................              20           3,600           3,600          72,000  ..............
Quote 3 (in B)..................              10           9,000           9,000          90,000  ..............
Quote 4 (in B)..................              10          14,400          14,400         144,000  ..............
Quote 5 (in B)..................               5           3,600           1,467           7,335  ..............
Quote 6 (in B)..................               2              60               0               0  ..............
                                 -------------------------------------------------------------------------------
    Total.......................  ..............          43,860          41,667         643,335
----------------------------------------------------------------------------------------------------------------
                                                                                15.4
----------------------------------------------------------------------------------------------------------------

    The time-weighted average quote bid size in OTM series for the
month is 15.4; thus, the LMM in this example has met the OTM time-
weighted average quote bid size to be eligible for the monthly payment
because its time-weighted average quote bid size is greater than 15
contracts for the month. The LMM would also need to satisfy the OTM
average quote ask size, as well as the time-weighted average width, bid
size, and ask size criteria in the ATM and ITM categories, determined
in the same manner as described in the above example, to receive the
monthly payment.
    Whether a series is OTM, ATM, or ITM will depend on how far away
the series' strike price is from the S&P 500 Index's previous day's
closing value, measured as a percentage. The OTM, ATM and ITM moneyness
percentages will vary by time to expiration based on the table below.
Expirations 1-6 are the nearest term expirations and expirations 37-
last are the farthest term expirations.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               OTM                                      ATM                                  ITM
                                                --------------------------------------------------------------------------------------------------------
                  Expirations                                                                                Puts
                                                    Calls  %         Puts  %                  Calls  %                  Puts  %        Calls  %       %
--------------------------------------------------------------------------------------------------------------------------------------------------------
Expiration 1-6.................................            >102             <98  <=102 and >=98...................  <=102 and >=98             <98  >102
Expiration 7-12................................            >103             <97  <=103 and >=97...................  <=103 and >=97             <97  >103
Expiration 13-18...............................            >104             <96  <=104 and >=96...................  <=104 and >=96             <96  >104
Expiration 19-24...............................            >105             <95  <=105 and >=95...................  <=105 and >=95             <95  >105
Expiration 25-30...............................            >106             <94  <=106 and >=94...................  <=106 and >=94             <94  >106
Expiration 31-36...............................            >107             <93  <=107 and >=93...................  <=107 and >=93             <93  >107
Expiration 37-last.............................            >108             <92  <=108 and >=92...................  <=108 and >=92             <92  >108
--------------------------------------------------------------------------------------------------------------------------------------------------------

    For example, if the S&P 500 Index closes at 2200, all call options
with a near-term expiration (i.e., Expiration 1-6) that have a strike
price greater than 2244 are considered OTM calls because 102% of 2200
is 2244. Similarly, all put options with a near-term expiration that
have a strike price of less than 2156 are considered OTM puts because
98% of 2200 is 2156. Which series are considered OTM, ATM, or ITM will
be readjusted on a daily basis. For example, series A may be OTM on
trading day 1-5 of the month, and the S&P 500 Index may appreciate to
make series A an ATM series on day 6 and so on.
    LMMs are not obligated to satisfy the heightened quoting standards
described in the Fees Schedule or in Rule 8.15 during ETH. LMMs are
eligible to receive a rebate if they satisfy the heightened standards
described in the Fees Schedule, which the Exchange believes will
encourage LMMs to provide liquidity during ETH. Additionally, the
Exchange notes that LMMs may have to undertake other expenses to be
able to quote at the heightened standard during ETH, such as purchase
additional bandwidth.
    The Exchange also seeks to amend Footnote 38 of the Fees Schedule
to clarify that the rebate described in Footnote 38 is the pro-rata
share of the compensation pool. Footnote 38 provides, in relevant part
that ``. . . the LMM will receive a rebate for that month and will
receive a pro-rata share of a compensation pool equal . . .'' which
could suggest there is a rebate and a payment from the compensation
pool. However, the rebate is the payment from the compensation pool.
The Exchange believes replacing ``and will receive'' with ``in the
amount of'' will provide more clarity.
    Lastly, the LMM rebate program is currently described in Rule
6.1A(e)(iii)(C) and the Fees Schedule. The Exchange believes
consolidating information related to the LMM rebate program in the Fees
Schedule, and deleting the language in that rule that is redundant of
language in the Fees Schedule, will prevent potential confusion that
arises from having the rebate program described in multiple places.
Specifically, the Exchange proposes to remove subparagraph (e)(iii)(C)
and move the following language from subparagraph (e)(iii)(C) to
Footnote 38 of the Fees Schedule:
    Notwithstanding Rule 1.1(ccc), for purposes of Footnote 38, an LMM
is deemed to have provided ``continuous electronic quotes'' if the LMM
provides electronic two-sided quotes for 90% of the time during ETH in
a given month. If a technical failure or limitation of a system of the
Exchange prevents the LMM from maintaining, or prevents the LMM from
communicating to the Exchange, timely and accurate electronic quotes in
a class, the duration of such failure shall not be considered in
determining whether the LMM has satisfied the 90% quoting standard with
respect to that option class. The Exchange may consider other
exceptions to this quoting standard based on demonstrated legal or
regulatory requirements or other mitigating circumstances.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\5\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \6\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. Additionally,
the Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \7\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------

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

    In particular, the Exchange believes it is reasonable, equitable
and not unfairly discriminatory to offer LMMs in SPX during ETH a
rebate if they meet a certain heightened quoting standard (described
above) to encourage LMMs in SPX to provide increased liquidity. More
specifically, the Exchange believes the amount of the amended rebate
($30,000) is reasonable because it takes into consideration certain
additional costs an LMM may incur and the Exchange believes the
proposed amount is such that it will incentivize LMMs to meet the ETH
quoting standards for SPX that are further heightened by this proposal.
Additionally, if a LMM does not satisfy the heightened quoting

standard, then it will not receive the rebate. The Exchange believes it
is equitable and not unfairly discriminatory to only offer the rebate
to LMMs because it benefits all market participants in ETH to encourage
LMMs to satisfy the heightened quoting standards, which may increase
liquidity during those hours and provide more trading opportunities and
tighter spreads. Also, the Exchange believes consolidating information
related to the LMM rebate program in the Fees Schedule will prevent
potential confusion that arises from having the rebate program
described in multiple places, which, in general, helps protect
customers and the public interest. Finally, the Exchange believes
clarifying language in the Fees Schedule will also prevent potential
confusion, which, in general, helps protect customers and the public
interest.

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 rule change will impose any burden on
intramarket competition that is not necessary or appropriate in
furtherance of the purposes of the Act, because the amended rebate for
ETH is intended to encourage market participants to bring liquidity in
SPX during ETH (which benefits all market participants), while still
covering Exchange costs (including those associated with the upgrading
and maintenance of Exchange systems). Furthermore, 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 SPX is a proprietary
product that will only be traded on Cboe Options. To the extent that
the proposed changes make Cboe Options 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
---------------------------------------------------------------------------

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

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
File Number SR-CBOE-2017-077 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-2017-077. 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-2017-077, and should be submitted
on or before January 9, 2018.
---------------------------------------------------------------------------

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

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-27227 Filed 12-18-17; 8:45 am]
 BILLING CODE 8011-01-P