[Federal Register: May 11, 2010 (Volume 75, Number 90)]
[Notices]
[Page 26313-26315]
[DOCID:fr11my10-142]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62039; File No. SR-BX-2010-032]

 Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Add 75
Classes to the Penny Pilot Program

May 5, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'')\1\, and Rule 19b-4 thereunder,\2\ notice is hereby given that
on April 27, 2010, NASDAQ OMX BX, Inc. (the ``Exchange'') filed with
the Securities and Exchange Commission (``Commission'') the proposed
rule change as described in Items I, II, and III 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

    NASDAQ OMX BX, Inc. (the ``Exchange'') proposes to designate 75
options classes to be added to the Penny Pilot Program, as referenced
in Chapter V, Section 33 of the Rules of the Boston Options Exchange
Group, LLC (``BOX'').

The Exchange intends to notify BOX Options Participants of the classes
to be added to the Penny Pilot Program via Regulatory Circular. The
text of the proposed Regulatory Circular is attached as Exhibit 2.\3\
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    \3\ The Commission notes that the text of the proposed
Regulatory Circular is attached at Exhibit 2 to the Form 19b-4, but
is not attached to this Notice.
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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 self-regulatory organization
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 self-regulatory organization
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 October 19, 2009 the Exchange submitted a proposed rule change
\4\ with the Securities and Exchange Commission (``Commission'') to,
among other things, expand the number of classes included in the Penny
Pilot Program over four successive quarters, with 75 classes added in
each of November 2009, February 2010, May 2010, and August 2010.\5\
Options classes with high premiums will be excluded for the quarterly
additions.\6\
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    \4\ See Securities and Exchange Act Release No. 60886 (October
27, 2009), 74 FR 56897 (November 3, 2009) (SR-BX-2009-067). This
proposal was effective immediately upon filing.
    \5\ The quarterly additions will be effective on November 2,
2009, February 1, 2010, May 3, 2010 and August 2, 2010,
respectively. For purposes of identifying the classes to be added
per quarter, the Exchange shall use data from the prior six calendar
months preceding the implementation month, except that the month
immediately preceding their addition to the Pilot would not be
utilized for purposes of the six month analysis. For example, the
quarterly additions to be added on May 3, 2010 shall be determined
using data from the six month period ending March 31, 2010. The
Exchange has filed two (2) previous proposals similar to the present
proposal, for the November 2, 2009 and February 1, 2010 expansions
of 75 classes, respectively. See Securities and Exchange Act Release
Nos. 60950 (November 6, 2009), 74 FR 58666 (November 6, 2009) (SR-
BX-2009-069) and 61456 (February 1, 2010), 75 FR 6235 (February 8,
2010) (SR-BX-2010-011). These proposals were effective immediately
upon filing.
    \6\ The threshold for designation as ``high priced'' at the time
of selection of new classes to be included in the Penny Pilot
Program is $200 per share or a calculated index value of 200. The
determination of whether a security is trading above $200 or above a
calculated index value of 200 shall be based on the price at the
close of trading on the Expiration Friday prior to being added to
the Penny Pilot Program.
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    Based on trading activity for the six months ending March 31, 2010,
the Exchange proposes to add the following 75 classes to the Penny
Pilot Program on May 3, 2010:

--------------------------------------------------------------------------------------------------------------------------------------------------------
        Symbol                              Company name                             Symbol                             Company name
--------------------------------------------------------------------------------------------------------------------------------------------------------
XLV..................  Health Care Select Sector SPDR Fund.                   JCP.................  JC Penney Co Inc.
CIEN.................  Ciena Corp.                                            ACL.................  Alcon Inc.
AMLN.................  Amylin Pharmaceuticals Inc.                            STP.................  Suntech Power Holdings Co Ltd.
CTIC*................  Cell Therapeutics Inc.                                 TLB.................  Talbots Inc.
MDT..................  Medtronic Inc.                                         SYMC................  Symantec Corp.
TIVO.................  TiVo Inc.                                              AMED................  Amedisys Inc.
MNKD*................  MannKind Corp.                                         TM..................  Toyota Motor Corp.
MDVN.................  Medivation Inc.                                        HK..................  Petrohawk Energy Corp.
BRKB.................  Berkshire Hathaway Inc.                                ENER................  Energy Conversion Devices Inc.
APOL.................  Apollo Group Inc.                                      STT.................  State Street Corp.
BSX..................  Boston Scientific Corp.                                BHP.................  BHP Billiton Ltd.
XLY..................  Consumer Discretionary Sel. Sec. SPDR Fund.            NFLX................  NetFlix Inc.
CLF..................  Cliffs Natural Resources Inc.                          LDK.................  LDK Solar Co Ltd.
ZION.................  Zions Bancorporation.                                  SPG.................  Simon Property Group Inc.
IOC..................  InterOil Corp.                                         TIF.................  Tiffany & Co.
ITMN.................  InterMune Inc.                                         BUCY................  Bucyrus International Inc.
GME..................  GameStop Corp.                                         WAG.................  Walgreen Co.
XLK..................  Technology Select Sector SPDR Fund.                    IP..................  International Paper Co.
AKS..................  AK Steel Holding Corp.                                 XME.................  SPDR S&P Metals & Mining ETF.
GRMN.................  Garmin Ltd.                                            KGC.................  Kinross Gold Corp.
MRVL.................  Marvell Technology Group Ltd.                          EP..................  El Paso Corp.
XLP..................  Consumer Staples Select Sector SPDR Fund.              SEED................  Origin Agritech Ltd.
UNP..................  Union Pacific Corp.                                    WIN.................  Windstream Corp.
DTV..................  DIRECTV.                                               DHI.................  DR Horton Inc.
WMB..................  Williams Cos Inc/The.                                  ADBE................  Adobe Systems Inc.
MEE..................  Massey Energy Co.                                      PCX.................  Patriot Coal Corp.
CELG.................  Celgene Corp.                                          SPWRA...............  SunPower Corp.
GMCR.................  Green Mountain Coffee Roasters Inc.                    LCC.................  US Airways Group Inc.
WDC..................  Western Digital Corp.                                  PRU.................  Prudential Financial Inc.
DAL..................  Delta Air Lines Inc.                                   LEN.................  Lennar Corp.
FXE..................  CurrencyShares Euro Trust.                             EWT.................  iShares MSCI Taiwan Index Fund.
COST.................  Costco Wholesale Corp.                                 KBH.................  KB Home.
MJN..................  Mead Johnson Nutrition Co.                             CREE................  Cree Inc.
ALL..................  Allstate Corp/The.                                     SIRI \7\............  Sirius XM Radio Inc.
SII..................  Smith International Inc.                               MMR.................  McMoRan Exploration Co.
RTN..................  Raytheon Co.                                           CENX................  Century Aluminum Co.
DVN..................  Devon Energy Corp.                                     GFI.................  Gold Fields Ltd.
MT...................  ArcelorMittal.
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2. Statutory Basis
    The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act,\8\ in general, and Section
6(b)(5) of the Act,\9\ in particular, in that it is designed 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 for a free and open market and a national market
system and, in general, to protect investors and the public interest,
by identifying the options classes added to the Penny Pilot Program in
a manner consistent with prior rule changes.
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    \7\ Please note that the class is presently not listed for
trading on BOX. If the class is listed for trading on BOX at a later
date it will be subject to the applicable minimum trading increments
as set forth in Chapter V, Section 6(b) of the BOX Rules.
    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
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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 not necessary or appropriate in
furtherance of the purposes of the Act.

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

    The Exchange has 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)(i) of the Exchange Act \10\ and Rule 19b-4(f)(1)
thereunder,\11\ because it constitutes a stated policy, practice, or
interpretation with respect to the meaning, administration, or
enforcement of an existing BOX rule. At any time within 60 days of the
filing of the proposed rule change, the Commission may summarily
abrogate the rule change if it appears to the Commission that the
action is necessary or appropriate in the public interest, for the
protection of investors, or would otherwise further the purposes of the
Act.
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    \10\ 15 U.S.C. 78s(b)(3)(A)(i).
    \11\ 17 CFR 240.19b-4(f)(1).
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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 e-mail to<EMAIL_ADDRESS>Please include
File Number SR-BX-2010-032 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington DC 20549-1090.
All submissions should refer to File Number SR-BX-2010-032. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for 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
a.m. and 3 p.m. Copies of such 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 No. SR-BX-2010-032 and should be
submitted on or before June 1, 2010.
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    \12\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-11133 Filed 5-10-10; 8:45 am]
BILLING CODE 8010-01-P


[Federal Register Volume 77, Number 14 (Monday, January 23, 2012)]
[Notices]
[Pages 3310-3311]
[FR Doc No: 2012-1236]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66167; File No. SR-CBOE-2012-002]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Related to the Extension of a CBSX Clearly Erroneous Policy
Pilot Program

January 17, 2012.
    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 January 4, 2012, Chicago Board Options Exchange, Incorporated
(``Exchange'' or ``CBOE'') 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 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

    The Exchange proposes to extend a clearly erroneous policy pilot
program pertaining to the CBOE Stock Exchange, LLC (``CBSX'', the
CBOE's stock trading facility). This rule change simply seeks to extend
the pilot. No other changes to the pilot are being proposed. The text
of the proposed rule change is available on the Exchange's Web site
(www.cboe.org/Legal), at the Exchange's Office of the Secretary and at
the Commission.

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 those 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 parts of such
statements.

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

1. Purpose
    Certain amendments to Rule 52.4, Clearly Erroneous Policy, were
approved by the Commission on September 10, 2010 on a pilot basis. The
pilot is currently set to expire on January 31, 2012.\3\ The clearly
erroneous policy changes were developed in consultation with other
markets and the Commission staff to provide for uniform treatment: (i)
Of clearly erroneous execution reviews in Multi-Stock Events involving
twenty or more securities; and (ii) in the event transactions occur
that result in the issuance of an individual stock trading pause by the
primary market and subsequent transactions that occur before the
trading pause is in effect on the Exchange. Additional changes were
also made to Rule 52.4 that reduce the ability of the Exchange to
deviate from the objective standards set forth in the Rule. As the
duration of the pilot expires on January 31, 2012, the Exchange is
proposing to extend the effectiveness of the clearly erroneous policy
changes to Rule 52.4 through July 31, 2012.
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    \3\ Securities Exchange Act Release Nos. 62886 (September 10,
2010), 75 FR 56613 (September 16, 2010)(SR-CBOE-2010-056)(approval
order establishing pilot through December 10, 2010); 63485 (December
9, 2010), 75 FR 78278 (December 15, 2010)(SR-CBOE-2010-
113)(extension of pilot through April 11, 2011); 64227 (April 7,
2011), 76 FR 20796 (April 13, 2011)(SR-CBOE-2011-032) (extension of
pilot through the earlier of August 11, 2011 or the date on which a
limit up-limit down mechanism to address extraordinary market
volatility, if adopted, applies to the Circuit Breaker Stocks as
defined in Interpretation and Policy .03 of Rule 6.3C, Individual
Stock Trading Pause Due to Extraordinary Market Volatility); and
65060 (August 9, 2011), 76 FR 50532 (August 15, 2011)(SR-CBOE-2011-
077) (extension of pilot through January 31, 2012).
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2. Statutory Basis
    Extension of the pilot period will allow the Exchange to continue
to operate the pilot on an uninterrupted basis. Accordingly, the
Exchange believes the proposed rule change is consistent with the Act
\4\ and the rules and regulations under the Act applicable to a
national securities 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 promote just
and equitable principles of trade, to prevent fraudulent and
manipulative acts and, in general, to protect investors and the public
interest.
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    \4\ 15 U.S.C. 78a et seq.
    \5\ 15 U.S.C. 78(f)(b).
    \6\ 15 U.S.C. 78(f)(b)(5).
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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.

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
proposal.

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

    The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \7\ and Rule 19b-4(f)(6) thereunder.\8\
Because the 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 prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-
4(f)(6)(iii) thereunder.\10\
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    \7\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \8\ 17 CFR 240.19b-4(f)(6).
    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change along with a
brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) \11\ normally
does not become operative for 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6)(iii) \12\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that

the proposal may become operative immediately upon filing.
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    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ 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, as
it will allow the pilot program to continue uninterrupted, thereby
avoiding the investor confusion that could result from a temporary
interruption in the pilot program. For this reason, the Commission
designates the proposed rule change to be operative upon filing.\13\
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    \13\ For purposes only of waiving the 30-day operative delay,
the Commission has also 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 No. SR-CBOE-2012-002 on the subject line.

Paper Comments

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

All submissions should refer to File No. SR-CBOE-2012-002. 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
a.m. and 3 p.m. Copies of such 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 No. SR-CBOE-2012-002 and should be
submitted on or before February 13, 2012.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-1236 Filed 1-20-12; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 84, Number 205 (Wednesday, October 23, 2019)]
[Notices]
[Pages 56877-56878]
[FR Doc No: 2019-23059]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-87340; File No. SR-CBOE-2019-048]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Order
Approving on an Accelerated Basis a Proposed Rule Change, as Modified
by Amendment Nos. 2 and 3, To Adopt Rule 6.9 (In-Kind Exchange of
Options Positions and ETF Shares)

October 17, 2019.

I. Introduction

    On September 6, 2019, Cboe Exchange, Inc. (``Cboe'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to adopt Rule 6.9. The proposed rule change was
published for comment in the Federal Register on September 25, 2019.\3\
On September 27, 2019, the Exchange filed Amendment No. 1 to the
proposed rule change. On October 2, 2019, the Exchange withdrew
Amendment No. 1 and filed Amendment No. 2 to the proposed rule
change.\4\ On October 7, 2019, the Exchange filed Amendment No. 3 to
the proposed rule change.\5\ The Commission received one comment on the
proposed rule change.\6\ The Commission is approving the proposed rule
change, as modified by Amendment Nos. 2 and 3, on an accelerated basis.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 87013 (September 19,
2019), 84 FR 50490 (``Notice'').
    \4\ In Amendment No. 2, the Exchange clarifies: (1) In its
description of the proposal that the transfer price(s) of the
options would be the price(s) used to calculate the net asset value
(``NAV'') of the exchange-traded fund (``ETF'') shares, in
conformance with the proposed rule text; and (2) its expectation
regarding the magnitude of the transfers pursuant to the proposed
rule, asserting that it would constitute a minimal percentage of the
total average daily volume of the combined standardized and FLexible
EXchange Options (``FLEX Options'') with the same underlying
security or index (rather than simply stating that it would
constitute a minimal percentage of average daily volume of options).
Amendment No. 2 does not materially alter the substance of the
proposed rule change or raise unique or novel regulatory issues, and
therefore it is not subject to notice and comment. Amendment No. 2
to the proposed rule change is available at: https://www.sec.gov/comments/sr-cboe-2019-048/srcboe2019048-6283760-193330.pdf.
    \5\ In Amendment No. 3, the Exchange revises the proposed rule
text to renumber proposed Rule 6.49C to Rule 6.9 and correct an
internal cross-reference to newly renumbered Rule 5.12 in order to
conform the proposal to rule text organizational changes that became
effective pursuant to a separate proposed rule change while the
instant proposal was pending before the Commission. Because
Amendment No. 3 is a technical amendment that does not materially
alter the substance of the proposed rule change or raise unique or
novel regulatory issues, it is not subject to notice and comment.
Amendment No. 3 to the proposed rule change is available at: https://www.sec.gov/comments/sr-cboe-2019-048/srcboe2019048-6258834-192936.pdf.
    \6\ See letter dated October 11, 2019 from Ken Mungan, Chairman,
Milliman Financial Risk Management LLC, to Vanessa Countryman,
Secretary, Commission (``Comment Letter''), which is available at:
https://www.sec.gov/comments/sr-cboe-2019-048/srcboe2019048-6285127-193334.pdf.
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II. Summary of the Proposed Rule Change

A. Background

    Specified quantities of ETF shares are created and redeemed for
consideration by authorized participants. ``In-kind'' creations and
redemptions occur when the authorized participants present (in the case
of creations) or receive (in the case of redemptions) securities in
exchange for ETF shares. The Commission has observed that, when
creation and redemption transactions occur wholly or partly in-kind,
certain benefits can accrue to an ETF and its investors; specifically,
in-kind exchanges generally result in: (1) Lower trading expenses
(because securities received or delivered in-kind do not need to be
purchased or sold in the market by the ETF, thus avoiding brokerage
fees); and (2) lower taxable gains to shareholders (because appreciated
securities are not sold but are delivered in kind to redeeming
authorized participants).\7\
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    \7\ See Securities Exchange Act Release No. 75165 (June 12,
2015), 80 FR 34729, 34732-33 (June 17, 2015) (requesting comment on
topics related to the listing and trading of exchange-traded
products on national securities exchanges and sales of these
products by broker-dealers).
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    The Exchange's current rules do not allow its Trading Permit
Holders to effect options transfers in connection with ETF creations or
redemptions because such transfers do not occur on Cboe or on another
national securities exchange. Specifically, Cboe Rule 5.12(a) \8\
generally requires that transactions by Trading Permit Holders in
option contracts listed on the Exchange for a premium in excess of
$1.00 must be effected on the Exchange or on another national
securities exchange.\9\
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    \8\ See Amendment No. 3, supra note 5 (describing the relocation
of this rule to its current location in the Cboe rulebook).
    \9\ Cboe Rule 6.7(a) lists the circumstances under which Trading
Permit Holders may transfer their positions off of the Exchange. The
circumstances listed include: (1) The dissolution of a joint account
in which the remaining Trading Permit Holder assumes the positions
of the joint account; (2) the dissolution of a corporation or
partnership in which a former nominee of the corporation or
partnership assumes the positions; (3) positions transferred as part
of a Trading Permit Holder's capital contribution to a new joint
account, partnership, or corporation; (4) the donation of positions
to a not-for-profit corporation; (5) the transfer of positions to a
minor under the Uniform Gifts to Minors Act; and (6) a merger or
acquisition where continuity of ownership or management results.
Additionally, Cboe Rule 5.12(b) allows a Trading Permit Holder
acting as agent to execute a customer's order off the Exchange floor
with any other person (except when such Trading Permit Holder also
is acting as agent for such other person in such transaction) for
the purchase or sale of an option contract listed on the Exchange.
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B. Proposed Rule 6.9

    The Exchange proposes to adopt Rule 6.9, which would add a new
circumstance under which off-floor transfers of options positions by
Trading Permit Holders would be allowed. Under proposed Rule 6.9,
positions in options listed on the Exchange would be permitted to be
transferred off the Exchange by a Trading Permit Holder in connection
with transactions to purchase or redeem ``creation units'' of ETF
shares between an ``authorized participant'' \10\ and the issuer \11\
of such ETF shares, which transfer would occur at the price used to
calculate the NAV of such ETF shares.
---------------------------------------------------------------------------

    \10\ For purposes of proposed Rule 6.9, an ``authorized
participant'' is an entity that has a written agreement with the
issuer of ETF shares or one of its service providers, which allows
the authorized participant to place orders for the purchase and
redemption of creation units (i.e., specified quantities of ETF
shares).
    \11\ For purposes of proposed Rule 6.9, an issuer of ETF shares
would be registered with the Commission as an open-end management
investment company under the Investment Company Act of 1940.
---------------------------------------------------------------------------

    The Exchange asserts that proposed Rule 6.9: (1) Would allow
options-based

ETFs to be more tax-efficient investment vehicles, to the benefit of
their shareholders; and (2) may result in transaction cost savings for
such ETFs, which may be passed along to investors.\12\ The Exchange
states that, while information regarding options transactions effected
on the Exchange is disseminated to OPRA, information regarding
transferred options positions such as those that would occur pursuant
to the proposed rule is not disseminated to OPRA and is not otherwise
publicly available.\13\ Nevertheless, the Exchange asserts that price
discovery and transparency for Exchange-listed options would not be
compromised under proposed Rule 6.9. The Exchange notes that, in
conjunction with the creation and redemption process, positions would
be transferred at price(s) used to calculate the NAV of the ETF
shares.\14\ The Exchange further states that any transfers effected
pursuant to the proposed rule would constitute a minimal percentage of
the total average daily volume of the combined standardized and FLEX
Options with the same underlying security or index.\15\ Further, the
Exchange generally expects creations or redemptions to include
corresponding transactions by the authorized participant that will
occur on an exchange and be reported to OPRA.\16\
---------------------------------------------------------------------------

    \12\ See Notice, supra note 3, 84 FR at 50491.
    \13\ See id. at 50493.
    \14\ See Amendment No. 2, supra note 4.
    \15\ See id.
    \16\ The Exchange states that: (1) For in-kind creations, an
authorized participant will acquire the necessary options positions
in an on-exchange transaction that will be reported to OPRA; and (2)
for in-kind redemptions, it expects that an authorized participant
will acquire both the shares necessary to effect the redemption and
an options position to offset the position that it will receive as
proceeds for the redemption, and that such options position likely
would be acquired in an on-exchange transaction that would be
reported to OPRA. See Notice, supra note 3, 84 FR at 50493, n.16.
---------------------------------------------------------------------------

C. Comment Letter

    The Commission received one comment letter, and the commenter
supports Cboe's proposal. The commenter states that Cboe's current
rules do not permit off-floor transfers for an equal value of shares of
an ETF. As a result, only equity- and bond-based ETFs may utilize the
in-kind redemption process, which provides tax efficiency.\17\ The
commenter asserts that, by helping to improve the tax efficiency of
ETFs that hold options, the proposal would establish a level for
options-based ETFs and thereby increase the choices available to
investors, including allowing more investors to access investment
strategies previously available only to institutions and high net worth
individuals.\18\
---------------------------------------------------------------------------

    \17\ See Comment Letter, supra note 6, at 2.
    \18\ See id.
---------------------------------------------------------------------------

III. Discussion and Commission Findings

    After careful review, the Commission finds that the proposed rule
change, as modified by Amendment Nos. 2 and 3, is consistent with the
Act and the rules and regulations thereunder applicable to a national
securities exchange.\19\ Specifically, the Exchange finds that the
proposed rule change is consistent with Section 6(b)(5) \20\ of the
Act, which requires (among other things) 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 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.
---------------------------------------------------------------------------

    \19\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \20\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission believes that proposed Rule 6.9 is designed to
protect investors and the public interest because it should facilitate
in-kind creations and redemptions by options-based ETFs, which should
lower taxable gains of shareholders of such ETFs. The Commission
further believes that, by facilitating in-kind creations and
redemptions by options-based ETFs, the proposed rule may also lower
such funds' transaction costs.
    In support of this proposal, the Exchange has made the following
representations:
    1. OCC has informed the Exchange that it has the operational
capabilities to effect the proposed position transfers.\21\
---------------------------------------------------------------------------

    \21\ See Notice, supra note 3, 84 FR at 50493, n.14.
---------------------------------------------------------------------------

    2. All transfers pursuant to proposed Rule 6.9 would be required to
comply with OCC rules.\22\
---------------------------------------------------------------------------

    \22\ See id.
---------------------------------------------------------------------------

    This approval order is based on all of the Exchange's statements
and representations, including those set forth above, in the Notice,
and in Amendment No. 2.
    For the foregoing reasons, the Commission finds that the proposed
rule change, as modified by Amendment Nos. 2 and 3, is consistent with
the Act \23\ and the rules and regulations thereunder applicable to a
national securities exchange.
---------------------------------------------------------------------------

    \23\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

IV. Accelerated Approval of the Proposed Rule Change, as Modified by
Amendment Nos. 2 and 3

    The Commission finds good cause to approve the proposed rule
change, as modified by Amendment Nos. 2 and 3, prior to the thirtieth
day after the date of publication of the Notice in the Federal
Register. The Exchange represents that October 31, 2019 is the fiscal
year end for certain options-based ETFs whose shares are listed on Cboe
BZX Exchange, Inc. and that, if such ETFs transition to in-kind
transactions by the end of their fiscal year, their shareholders would
no longer be subject to taxable distributions. The Exchange further
represents that the funds and their authorized participants require
time to implement the transition to in-kind creations and redemptions.
The potential for tax savings for options-based ETF shareholders
constitutes good cause to approve the proposal on an accelerated basis.
The Commission also notes that, during the 21-day comment period after
the Notice was published in the Federal Register, the only comment
received supports the proposal.\24\
---------------------------------------------------------------------------

    \24\ See supra section II.C.
---------------------------------------------------------------------------

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\25\ that the proposed rule change (SR-CBOE-2019-048), as modified
by Amendment Nos. 2 and 3, be, and it hereby is, approved on an
accelerated basis.
---------------------------------------------------------------------------

    \25\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\26\
---------------------------------------------------------------------------

    \26\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-23059 Filed 10-22-19; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 79, Number 24 (Wednesday, February 5, 2014)]
[Notices]
[Page 6987]
[FR Doc No: 2014-02361]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Summary Notice No. PE-2014-10]

Petition for Exemption; Summary of Petition Received

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of petition for exemption received.

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

SUMMARY: This notice contains a summary of a petition seeking relief
from specified requirements of 14 CFR. The purpose of this notice is to
improve the public's awareness of, and participation in, this aspect of
FAA's regulatory activities. Neither publication of this notice nor the
inclusion or omission of information in the summary is intended to
affect the legal status of the petition or its final disposition.

DATES: Comments on this petition must identify the petition docket
number involved and must be received on or before February 25, 2014.

ADDRESSES: You may send comments identified by Docket Number FAA-2013-
0968 using any of the following methods:
     Government-wide rulemaking Web site: Go to http://www.regulations.gov and follow the instructions for sending your
comments electronically.
     Mail: Send comments to the Docket Management Facility;
U.S. Department of Transportation, 1200 New Jersey Avenue SE., West
Building Ground Floor, Room W12-140, Washington, DC 20590.
     Fax: Fax comments to the Docket Management Facility at
202-493-2251.
     Hand Delivery: Bring comments to the Docket Management
Facility in Room W12-140 of the West Building Ground Floor at 1200 New
Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
    Privacy: We will post all comments we receive, without change, to
http://www.regulations.gov, including any personal information you
provide. Using the search function of our docket Web site, anyone can
find and read the comments received into any of our dockets, including
the name of the individual sending the comment (or signing the comment
for an association, business, labor union, etc.). You may review DOT's
complete Privacy Act Statement in the Federal Register published on
April 11, 2000 (65 FR 19477-78).
    Docket: To read background documents or comments received, go to
http://www.regulations.gov at any time or to the Docket Management
Facility in Room W12-140 of the West Building Ground Floor at 1200 New
Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Mark Forseth, ANM-113, Federal
Aviation Administration, 1601 Lind Avenue SW., Renton, WA 98057-3356,
email<EMAIL_ADDRESS>phone<PHONE_NUMBER>; or Sandra Long, ARM-
201, Office of Rulemaking, Federal Aviation Administration, 800
Independence Avenue SW., Washington, DC 20591, email
<EMAIL_ADDRESS>phone<PHONE_NUMBER>.
    This notice is published pursuant to 14 CFR 11.85.

    Issued in Washington, DC, on January 30, 2014.

Lirio Liu,
Director, Office of Rulemaking.

Petition for Exemption

    Docket No.: FAA-2013-0968.
    Petitioner: The Boeing Company.
    Section of 14 CFR Affected: 14 CFR 25.785(h)(2).
    Description of Relief Sought: Petitioner requests an exemption from
the requirement of flight-attendant direct view of passenger seating in
zones where mini-suites are installed on Boeing Model 747-8 airplanes
operating under part 121.

[FR Doc. 2014-02361 Filed 2-4-14; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register: November 22, 2005 (Volume 70, Number 224)]
[Notices]
[Page 70611-70612]
[DOCID:fr22no05-73]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. RM98-1-000]

Records Governing Off-the-Record Communications Public Notice

November 14, 2005.
    This constitutes notice, in accordance with 18 CFR 385.2201(b), of
the receipt of prohibited and exempt off-the-record communications.
    Order No. 607 (64 FR 51222, September 22, 1999) requires Commission
decisional employees, who make or receive a prohibited or exempt off-
the-record communication relevant to the merits of a contested
proceeding, to deliver to the Secretary, a copy of the communication,
if written, or a summary of the substance of any oral communication.
    Prohibited communications are included in a public, non-decisional
file associated with, but not a part of, the decisional record of the
proceeding. Unless the Commission determines that the prohibited
communication and any responses thereto should become a part of the
decisional record, the prohibited off-the-record communication will not
be considered by the Commission in reaching its decision. Parties to a
proceeding may seek the opportunity to respond to any facts or
contentions made in a prohibited off-the-record communication, and may
request that the Commission place the prohibited communication and
responses thereto in the decisional record. The Commission will grant
such a request only when it determines that fairness so requires. Any
person identified below as having made a prohibited off-the-record
communication shall serve the document on all parties listed on the
official service list for the applicable proceeding in accordance with
Rule 2010, 18 CFR 385.2010.
    Exempt off-the-record communications are included in the decisional
record of the proceeding, unless the communication was with a
cooperating agency as described by 40 CFR 1501.6, made under 18 CFR
385.2201(e)(1)(v).
    The following is a list of off-the-record communications recently
received in the Office of the Secretary. The communications listed are
grouped by docket numbers in ascending order. These filings are
available for review at the Commission in the Public Reference Room or
may be viewed on the Commission's website at http://www.ferc.gov using

the eLibrary (FERRIS) link. Enter the docket number,

excluding the last three digits, in the docket number field to access
the document. For assistance, please contact FERC, Online Support at
<EMAIL_ADDRESS>or toll free at<PHONE_NUMBER>, or for TTY,

contact<PHONE_NUMBER>.

------------------------------------------------------------------------
           Docket No.             Date received   Presenter or requester
------------------------------------------------------------------------
Prohibited:
    1. Project No. 382-000.....         11-7-05  Amy L. Fesnock.
    2. Project Nos. 2539-000           10-31-05  Jude Pinelski \1.\
     and 12522-000.
Exempt:
    1. CP05-92-000.............         11-3-05  Hon. Ron LeLeux.
    2. Project No. 2216-000....         11-2-05  Hon. Brian Higgins.
    3. Project Nos. 2602-000           10-28-05  Hon. Charles H. Taylor.
     and 2692-000.
    4. Project No. 10395-000...         11-2-05  Hon. Geoff Davis.
------------------------------------------------------------------------
\1\ One of nineteen postcard ``form'' submittals in Docket Nos. P-2539-
  000 and P-12522-000 filed between 10/31/05 and 11/7/05.

Magalie R. Salas,
Secretary.
 [FR Doc. E5-6418 Filed 11-21-05; 8:45 am]

BILLING CODE 6717-01-P