[Federal Register Volume 85, Number 162 (Thursday, August 20, 2020)]
[Notices]
[Pages 51531-51535]
[FR Doc No: 2020-18200]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-89564; File No. SR-CBOE-2020-075]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing of a Proposed Rule Change To Make Qualified Contingent Cross
Orders Available for FLEX Trading

August 14, 2020.
    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 August 3, 2020, 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 Rule 5.70 and Rule 5.72, as well as Rule 5.33, to make
Qualified Contingent Cross (``QCC'') Orders available for FLEX trading.
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 the
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend Rule 5.70 and Rule 5.72, as well as
Rule 5.33, to make QCC Orders, which includes Complex QCC Orders and
QCC with Stock Orders, available for electronic FLEX trading.
Currently, QCC Orders are available only for electronic non-FLEX
trading.
    QCC Orders facilitate the execution of option orders that are part
of Qualified Contingent Trades (``QCTs''),\3\ by permitting Trading
Permit Holders (``TPHs'') to cross options orders without exposure
while effecting the trade in the equities leg in another market at a
price necessary to achieve the net price. Currently, TPHs may choose to
submit the options component of a QCT as a FLEX Option, yet, are
currently unable to execute a FLEX Options component of a QCT on the
Exchange in the same efficient, unexposed manner as they may execute a
non-FLEX Option component of a QCT on the Exchange. The Exchange now
seeks to provide TPHs and their customers with the same QCC trading
capabilities for FLEX trading that are currently available for non-FLEX
trading, thus providing TPHs with the same capability to execute the
options parts of QCTs that are comprised of FLEX Options.
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    \3\ See Rule 5.6(c), definition of ``Qualified Contingent Cross
or QCC'', paragraph (1), which defines a ``qualified contingent
trade'' as 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
Exchange 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.
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    Rule 5.6(c) currently provides for the non-FLEX definition of a QCC
Order. Specifically, a QCC order is comprised of an originating order
to buy or sell at least 1,000 contracts (or 10,000 mini-option
contracts) that is identified as being part of a QCT coupled with a
contra-side order or orders totaling an equal number of contracts. If a
QCC Order has more than one option leg (a ``Complex QCC Order''), each
option leg must have at least 1,000 standard option contracts (or
10,000 mini-option contracts). A QCC order represents one component of
a QCT, which must be paired with a stock order. When a User enters a
QCC Order, the User is responsible for executing the associated stock
component of the QCT at or near the same time of the QCC order
execution, just as a User is ultimately responsible for complying with
execution requirements for any order a User submits. Indeed, the
Exchange requires TPHs to properly mark all QCC Orders as such, and has
a surveillance program in place which assesses TPH compliance with the
requirements applicable to QCC Orders, including the requirement that
the stock leg of the transaction be executed at or near the same time
as the options leg.\4\ To execute the associated stock, a User may
choose to either (1) separately submit an option order to the Exchange
and the stock order to a stock execution venue in time to be executed
at or near the same time of each other, or (2) submit a QCC with Stock
Order. A QCC with Stock Order is a type of QCC Order (including a
Complex QCC Order) entered with a stock component to be electronically
communicated by the Exchange to a designated broker-dealer for
execution on behalf of the submitting User and, as indicated, are
available to Users on a voluntary basis.\5\
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    \4\ See Securities Exchange Act Release No. 15058 (June 17,
2011), 76 FR 35491 (Order Granting Approval of Proposed Rule Change
Establishing Qualified Contingent Cross Orders) (``QCC Approval
Order'').
    \5\ See Rule 5.33(a), definition of ``QCC with Stock Order''.
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    The Exchange proposes to adopt Rule 5.72(e) \6\ to govern FLEX QCC
Orders. The proposed rule is simply making QCC Order available for
FLEX, and as such, the definition of FLEX QCC Orders is substantively
identical as non-FLEX QCC Orders in Rule 5.6(c) and FLEX QCC Orders
will execute in substantially the same manner with few differences
unique to trading in FLEX Trading. Proposed Rule 5.72(e) provides that
a ``FLEX QCC'' order is comprised of an originating order to buy or
sell at least 1,000 standard FLEX Option contracts (or 10,000 mini FLEX
option contracts) that is identified as being part of a QCT (as defined
in Rule 5.6(c)) coupled with a contra-side order or orders totaling an
equal number of contracts. If a FLEX QCC order has more than one option
leg (a ``Complex FLEX QCC'' order), each option leg must have

at least 1,000 standard FLEX option contracts (or 10,000 mini FLEX
option contracts). This is substantively identical to the non-FLEX QCC
definition in Rule 5.6(c). The Exchange notes that Users will enter
into the System all FLEX QCC Orders as they would any other FLEX Order
pursuant to 5.72(b) (governing the order entry of FLEX Orders) and the
applicable FLEX auction rules. As such, the Exchange points out that
FLEX QCC Orders may only be submitted for series consistent with the
FLEX rules.\7\ Like QCC Orders submitted for non-FLEX trading,\8\ FLEX
QCC Orders will execute automatically upon entry without exposure
pursuant to proposed Rule 5.72(e)(1). The Exchange notes, as there is
no FLEX Order Book, the corresponding provisions in Rule 5.6(c) \9\ and
5.33(f)(2) regarding QCC Order execution requirements in connection
with yielding to prices at which Priority Customer Orders may be
resting in the Simple Book \10\ and Complex Order Book (``COB''),\11\
and in Rule 5.6(c) \12\ in connection with pricing QCC Orders at or
between the NBBO \13\ would not be applicable to QCC Orders submitted
to FLEX.\14\ Proposed Rule 5.72(e)(1) also provides that a FLEX QCC
Order is cancelled if it cannot execute, and that Rule 5.9 (related to
exposure of orders on the Exchange) does not apply to FLEX QCC orders,
both of which are consistent with the current non-FLEX QCC Rules.\15\
Like QCC Orders submitted in non-FLEX classes,\16\ QCC orders submitted
in FLEX classes must be entered in the standard increment for the
class.\17\ Therefore, the proposed rule change adds in proposed Rule
5.72(e)(2) that FLEX QCC may only be entered in the increments
applicable to FLEX Orders under Rule 5.4(c)(4).
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    \6\ The Exchange also moves current paragraph (e) to paragraph
(f).
    \7\ See Rules 5.72(b), (c), and (d).
    \8\ See Rule 5.6(c), definition of ``Qualified Contingent Cross
or QCC'', paragraph (2).
    \9\ See id.
    \10\ See Rule 5.6(c), definition of ``Qualified Contingent Cross
or QCC'', subparagraph (2)(A)(i).
    \11\ See Rule 5.6(c), definition of ``Qualified Contingent Cross
or QCC'', subparagraph (2)(B)(i) and (iii).
    \12\ See Rule 5.6(c), definition of ``Qualified Contingent Cross
or QCC'', subparagraph (2).
    \13\ See Rule 5.6(c), definition of ``Qualified Contingent Cross
or QCC'', subparagraph (2)(A)(ii) and (B)(ii).
    \14\ This is true for any FLEX Order.
    \15\ See Rule 5.6(c), definition of ``Qualified Contingent Cross
or QCC'', subparagraph (2)(C) and (2)(C), respectively.
    \16\ See 5.6(c), definition of ``Qualified Contingent Cross or
QCC'', paragraph (3).
    \17\ See Rule 5.4(c)(4) (which sets forth minimum increments for
FLEX options).
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    Proposed Rule 5.72(e)(1) also provides that a FLEX QCC with Stock
order executes pursuant to Rule 5.33(l). The proposed rule change
amends Rule 5.33(1) to specify that the provisions governing QCC with
Stock include FLEX QCC with Stock. As such, pursuant to Rule 5.33(l),
for a FLEX QCC with Stock Order, a User must include the same requisite
information as they must include when submitting such orders for non-
FLEX trading pursuant to Rule 5.33(l)(3)(A),\18\ and the System will
process the option and stock components of such orders in the same
manner as it does for non-FLEX QCC orders pursuant to Rule
5.33(l)(3)(B) and (C).\19\
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    \18\ Rule 5.33(l)(3)(A) requires a User to include a net price
for the stock and option components in accordance with the minimum
increments for stock-option orders and (ii) identify the designated
broker-dealer as set forth in Rule 5.33 (l)(2).
    \19\ Rule 5.33(l)(3)(B) provides that the System executes the
option component in accordance with Rule 5.6(c), but does not
immediately send the User a trade execution report, and
automatically communicates the stock component to the designated
broker-dealer for execution at a stock trading venue. If the option
component(s) of a QCC with Stock Order cannot execute, the System
cancels the QCC with Stock Order, including both the stock and
option components. Rule 5.33(l)(3)(C) provides that, if the System
receives an execution report for the stock component of a QCC with
Stock Order from the designated broker-dealer, the Exchange sends
the User the trade execution report for the QCC with Stock order,
including execution information for both the stock and option
components. If the System receives a report from the designated
broker-dealer that the stock component of a QCC with Stock Order
cannot execute, the Exchange nullifies the option component trade
and notifies the User of the reason for the nullification.
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    The Exchange seeks to make QCC Orders available for FLEX trading
due to the growing customer demand it has received for QCC
functionality for FLEX trading. The Exchange notes that a number of
TPHs have expressed to the Exchange that use of QCC for FLEX options
would increase the efficiency of their executions of the options
component of a QCT if the options component consists of a FLEX Option.
An investor may seek to use a FLEX Option as an appropriate hedge for a
stock order but is currently unable to execute a FLEX Option that is
part of a QCT on the Exchange in the same unexposed manner as it may
execute a non-FLEX Option on the Exchange. Currently, if a TPH wants to
execute a FLEX Option that is intended to be part of a QCT, it would
have to enter the FLEX Option as a FLEX Order separate from the stock
portion or as a stock-option order, which must be exposed for at least
three seconds prior to execution.\20\ As noted above, to qualify as a
QCT, the execution of one component is contingent upon the execution of
all other components at or near the same time. The Exchange conducts
surveillance of TPHs to ensure that TPHs execute the options component
of a QCT at or near the same time as the stock component, in accordance
with the QCT exemption.\21\ Therefore, there is compliance risk for
TPHs if they do not execute the options component at or near the same
time of execution of the stock component. Providing TPHs with QCC Order
functionality for FLEX Options will reduce the compliance burden on
TPHs by providing a more efficient means of executing the options
component of a QCT if the options component consists of a FLEX Option,
as QCC Orders did for non-FLEX options.
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    \20\ See Rule 5.72(c)(1)(F); Rule 5.73(c)(3); and Rule
5.74(c)(3).
    \21\ See supra note 3; see also infra note 29.
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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.\22\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \23\ 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) \24\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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    \22\ 15 U.S.C. 78f(b).
    \23\ 15 U.S.C. 78f(b)(5).
    \24\ Id.
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    In particular, the proposal to make the QCC Order type available
for electronic FLEX trading will facilitate TPHs' execution of the
options component of QCTs that are comprised of FLEX Options in the
same manner that TPHs may currently execute the options component of
QCTs that are comprised of non-FLEX Options, thereby removing
impediments to and perfecting the mechanism of a free and open market
and national market system and, in general, protecting investors. QCC
Orders for FLEX Options will execute in the same manner as QCC Orders
for

non-FLEX Options; the proposed rule change merely expands the classes
in which the Exchange may make QCC Orders available and provides a
specific definition of FLEX QCC Orders for clarity. Moreover, the
Exchange notes that stock-option orders (which, by definition, must
also be a QCT) \25\ are already permitted under the Rules for FLEX
Options, and thus, the FLEX Options components of QCTs submitted as
stock-option orders may currently execute at any price in FLEX (i.e.,
are not subject to an NBBO or yielding to Customer orders). The
proposed rule change merely provides an alternative, more efficient
manner of execution for the option component of larger-sized QCTs.
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    \25\ See Interpretation and Policy .03 to Rule 5.33.
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    The Exchange believes the availability of QCC Orders for FLEX
Options will allow for a more efficient execution of the options
component of a QCT on the Exchange. As noted above, to qualify as a
QCT, the execution of one component is contingent upon the execution of
all other components at or near the same time. The Exchange conducts
surveillance to ensure a TPH executes the stock and option components
of a QCT at or near the same time.\26\ As a result, if the option
component does not execute when initially submitted to the Exchange, a
TPH may be subject to compliance risk if it does not execute the option
component at or near the same time of the execution of the stock
component. Indeed, the Exchange notes that the compliance risk of not
being able to execute a FLEX Options portion of a QCT at or near the
same time of the execution of the stock component is greater in a FLEX
auction, where it must be exposed for at least three seconds prior to
execution, than for non-FLEX option orders that must be exposed for at
least one second \27\ unless submitted into an auction with a shorter
exposure period. The Exchange believes the proposed rule change will
reduce this compliance risk for TPHs executing FLEX Options that are
components of QCTs, which will protect investors and the public
interest. Since the purpose of a QCT order is for all components to
trade at or near the same time, the Exchange believes it is appropriate
to provide TPHs with a mechanism to facilitate immediate execution of
FLEX Options that comprise the options component of a QCT to reduce the
compliance burden on TPHs when effecting QCTs with a FLEX Option
component.
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    \26\ See supra QCC Approval Order.
    \27\ See Rule 5.9.
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    The Exchange believes that proposed Rule 5.72(e), while
substantially the same in almost all aspects to Rule 5.6(c) governing
non-FLEX QCC, will provide clarity to TPHs regarding the submission of
their QCC FLEX Options. The only difference between the FLEX and non-
FLEX QCC orders is that FLEX QCC orders are not subject to the NBBO or
prices of customers in the book. The Exchange notes this difference
exists for any order type in non-FLEX trading versus FLEX trading.\28\
The Exchange notes that the proposed rule changes do not alter any of
the current increments applicable to FLEX Options but merely provide
additional detail within the specific provision covering QCC Orders
regarding the standard increments already permissible for FLEX Options
that will also apply to QCC FLEX Orders.
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    \28\ The Exchange also notes that the requirement that a QCC
order execute at a price at or better than the NBBO is not a unique
execution requirement--every option order type approved by the
Commission must execute at a price at or better than the NBBO in
accordance with the linkage plan. See Rule 5.66.
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    As the Commission has previously found,\29\ the execution of QCTs
is beneficial to the market as a whole as it contributes to the
efficient functioning of the securities markets and the price discovery
process. Pursuant to the QCT Release, the options portion of a QCT may
consist of non-FLEX or FLEX Options [sic]. However, as noted above,
without the availability of QCC Orders for FLEX Options, TPHs are
subject to higher compliance risk with respect to QCTs with a FLEX
Option component than TPHs who execute QCTs with a non-FLEX Option
component. The Exchange submits this proposed rule change in response
to demand from TPHs and their customers to be able to execute the
options components of QCTs comprised of a FLEX Option in the same
manner that they are currently able to execute the options components
of QCTs comprised of non-FLEX options. Therefore, the proposed rule
change will provide TPHs whose hedging strategies involve FLEX Options
with the same functionality currently available to TPHs whose hedging
strategies involve non-FLEX Options. The Exchange believes this will
provide investors with additional flexibility regarding execution of
their hedging strategies related to stock positions, which flexibility
ultimately benefits investors.
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    \29\ See Securities Exchange Act Release No. 57620 (April 4,
2008), 73 FR 19271 (April 9, 2008) (``QCT Release''); and see QCC
Approval Order.
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    Moreover, the Commission has stated that, while it believes that
order exposure is generally beneficial to options markets, it
recognizes that contingent trades can be useful trading tools for
investors and other market participants, particularly those who trade
the securities of issuers involved in mergers, different classes of
shares of the same issuers, convertible securities, and equity
derivatives such as options and that those who engage in contingent
trades can benefit the market as a whole by studying the relationships
between prices of such securities and executing contingent trades when
they believe such relationships are out of line with what they believe
to be fair value.\30\
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    \30\ See QCC Approval Order.
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    The requirement that a non-FLEX QCC must execute at a price at or
between the NBBO merely incorporates an execution requirement
applicable to all option order types, as all options must execute at
price at or better than the NBBO in accordance with linkage rules.\31\
Therefore, this execution requirement is not a heightened execution
requirement for an unexposed option order. The additional requirement
that a QCC order not execute at the same price as a Priority Customer
incorporates the general principle of customer protection in the
options markets.\32\ If the market model for a class does not include
customer priority, this is a heightened execution requirement for
execution of an unexposed order.\33\ Even without this additional
protection, the Exchange believes the proposed FLEX QCC order will
protection investors, as it will provide users of FLEX options with the
same functionality as user of non-FLEX options. Additionally, primarily
broker-dealers and institutional investors engage in FLEX trading.
Therefore, there are minimal retail customer orders

submitted into the FLEX market that would require additional
protection. As discussed above, the Exchange believes the benefits of
exposure on an order on the Exchange are outweighed by the benefits
offered by immediate execution of these contingent order types. The
Exchange does not believe market participants that engage in hedging
strategies involving FLEX Options should not have access to the same
functionality as market participants with hedging strategies involving
non-FLEX options.
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    \31\ See Rule 5.66. In other words, if the definition of a QCC
order did not include the provision that it must execute at a price
at or better than the NBBO, QCC orders would still be required to
execute at a price at or better than the NBBO. The Exchange believes
inclusion of this explicit requirement for QCC orders was intended
to highlight the difference between execution of the options
component and the stock component, which may execute at any price,
but was not a unique price requirement necessary for execution of an
unexposed order. Every order type on the Exchange approved for non-
FLEX trading and FLEX trading has this same distinction.
    \32\ If there was not a customer order resting at the top of the
book, then the second pricing requirement for QCC orders is simply
ignored. As there is no book in the FLEX market, the proposed FLEX
QCC order is equivalent to a non-FLEX QCC order submitted when there
is no customer order resting at the top of the book.
    \33\ The Exchange has enabled customer priority for all equity
option classes that trade on the Exchange (and thus for all classes
in which TPHs may submit QCC orders). Therefore, all QCC orders
submitted on the Exchange are subject to the same execution pricing
requirements as non-QCC orders.
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    The Exchange does not believe the propose rule change raises price
protection concerns that market participants may submit FLEX QCC orders
for a FLEX series with slightly different terms than a non-FLEX series
in order to get better pricing. Such risk, if any, exists today with
respect to all FLEX trading. The Exchange again points out that the
linkage rules and customer priority are currently not applicable to any
orders submitted to FLEX, wherein there is no order book. The Exchange
has observed no trends of TPHs submitting FLEX orders in order to avoid
trading in the non-FLEX market. The Exchange believes the risk (if any)
of a market participant trading a FLEX Option rather than a non-FLEX
Option with slightly different terms to use the FLEX market as a
substitute for the non-FLEX market and achieve such a result is
minimal. This possibility exists today with respect to all options the
Exchange lists for FLEX and non-FLEX trading. The Exchange has not
observed market participants attempting to trade in the FLEX market
rather than the non-FLEX market for this purpose in classes in which
this is possible today.
    The Exchange believes attempting to execute an order in the FLEX
market as a substitute for the non-FLEX market would minimize execution
opportunities for that order. Such trading would be inefficient for
market participants and could introduce price and execution risk to
market participants' trading strategies given the reduced liquidity,
participation, and price discovery in the FLEX market compared to the
non-FLEX market.\34\ Additionally, series with different terms have
different prices and serve different investment purposes, so trading a
``similar'' FLEX series may not achieve the same investment objective
as the non-FLEX series a TPH initially sought to trade. The Exchange
notes if a FLEX QCC orders execute at a price through the book of the
``similar'' non-FLEX series, while that would be a better price for one
transaction participant, it would be a worse price for the participant
on the opposite side, and thus it may be more difficult for the TPH to
find sufficient contra party interest. For example, suppose the market
for Aug ABC 800 call with a multiplier of 100 is 10.20--11.00. If a
market participant sought interest from counterparties to execute a
FLEX QCC Order to buy an Aug ABC 795 call with at 10.00, it is unlikely
another market participant would sell at that price if they were
looking to sell the Aug ABC 800 call, given that participant could sell
the ``similar'' non-FLEX Option series at 10.20, which would be a
better price for that seller. Given the likely difficulties (such as
reduced liquidity and potentially longer timeframe to receive
execution) of trading in the FLEX market as a substitute for trading an
economically equivalent option in the non-FLEX market (such as to
obtain a better execution price), the Exchange believes the risk of
this occurring is de minimis. The Exchange believes that any such risk
is even lower for FLEX QCC orders given the additional requirements
that apply to FLEX QCC orders, even without the heightened execution
price requirement that a QCC order cannot execute at the same price as
a Priority Customer. The benefits of QCC orders apply to FLEX options
in the same manner as they do for non-FLEX options, which benefits the
Exchange believes significantly outweigh any price protection risk that
may exist in the FLEX market.
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    \34\ See Sections VII and X of the ODD regarding risks
associated with FLEX Options.
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    Ultimately, as noted above, QCC Orders in FLEX Options will execute
in a substantially similar manner as QCC Orders in non-FLEX Options. In
addition to this, the Exchange notes that QCC functionality is a widely
adopted industry order type wherein multiple other options exchanges
currently have QCC functionality in place.\35\
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    \35\ See e.g. Nasdaq Phlx Rules Options 3, Section 12
(electronic QCC orders), and Options 8, Section 32(e) (open outcry
QCC orders); Nasdaq ISE Options 3, Section 12; BOX Options Rule
7110(c)(6); MIAX Options Rule 516(j); and NYSE Arca Options Rule
6.90-O.
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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 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 QCC functionality is
already available for non-FLEX Options. The Exchange is simply
proposing to make QCC Orders available for additional classes (FLEX
Option classes). The Exchange notes that the proposed order type will
be available to all Users on a voluntary basis, and Users are not
required to use QCC Orders when executing QCTs. Users may continue to
execute the options component of QCTs that are comprised of FLEX
Options in the same manner as they do today. The proposed rule change
will provide FLEX Traders with the same functionality that is currently
available to non-FLEX Traders with respect to execution of option
components of QCTs. The Exchange believes all TPHs should have access
to this functionality so they can all execute option components of QCTs
in the same manner, regardless of whether they choose to hedge the
stock portions of QCTs with FLEX or non-FLEX options.
    The Exchange does not believe the proposed rule change will impose
any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act because the
proposed rule change is merely making functionality currently available
on the Exchange to additional option classes. As noted above, QCC Order
functionality is currently available at other options exchanges, which
may determine make QCC functionality available to additional option
classes as well, including flexible options. To the extent the proposed
rule change makes the Exchange a more attractive trading venue for
market participants on other exchanges, those market participants may
elect to become Exchange market participants.
    Overall, the Exchange believes the proposed rule change is
appropriate for the protection of investors and the maintenance of fair
and orderly markets to assure, among other things, the economically
efficient execution of securities transactions.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its

reasons for so finding or (ii) as to which the Exchange consents, the
Commission will:
    A. By order approve or disapprove such proposed rule change, or
    B. institute proceedings to determine whether the proposed rule
change should be disapproved.

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-2020-075 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-2020-075. 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-2020-075 and should be submitted on
or before September 10, 2020.
---------------------------------------------------------------------------

    \36\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\36\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-18200 Filed 8-19-20; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 88, Number 243 (Wednesday, December 20, 2023)]
[Notices]
[Page 88062]
[FR Doc No: 2023-27988]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings

    Take notice that the Commission has received the following Natural
Gas Pipeline Rate and Refund Report filings:

Filings Instituting Proceedings

    Docket Numbers: RP24-243-000.
    Applicants: Southern Star Central Gas Pipeline, Inc.
    Description: Sec.  4(d) Rate Filing: Correction to Tariff Sheet No.
241 to be effective 4/1/2023.
    Filed Date: 12/13/23.
    Accession Number: 20231213-5146.
    Comment Date: 5 p.m. ET 12/26/23.

    Docket Numbers: RP24-244-000.
    Applicants: Bear Creek Storage Company, L.L.C.
    Description: Compliance filing: Annual Fuel Summary 2023 to be
effective N/A.
    Filed Date: 12/14/23.
    Accession Number: 20231214-5063.
    Comment Date: 5 p.m. ET 12/26/23.

    Docket Numbers: RP24-245-000.
    Applicants: Rockies Express Pipeline LLC.
    Description: Sec.  4(d) Rate Filing: REX 2023-12-14 Negotiated Rate
Agreement Amendments to be effective 12/15/2023.
    Filed Date: 12/14/23.
    Accession Number: 20231214-5125.
    Comment Date: 5 p.m. ET 12/26/23.

    Any person desiring to intervene, to protest, or to answer a
complaint in any of the above proceedings must file in accordance with
Rules 211, 214, or 206 of the Commission's Regulations (18 CFR 385.211,
385.214, or 385.206) on or before 5:00 p.m. Eastern time on the
specified comment date. Protests may be considered, but intervention is
necessary to become a party to the proceeding.

Filings in Existing Proceedings

    Docket Numbers: PR24-4-001.
    Applicants: The Peoples Gas Light and Coke Company.
    Description: Amendment Filing: Limited Supplement to Petition for
Rate Approval to be effective 11/1/2023.
    Filed Date: 12/13/23.
    Accession Number: 20231213-5134.
    Comment Date: 5 p.m. ET 1/3/24.
    Sec.  284.123(g) Protest: 5 p.m. ET 1/17/24.

    Docket Numbers: RP24-203-001.
    Applicants: Gulf South Pipeline Company, LLC.
    Description: Tariff Amendment: Amendment Filing in Docket No. RP24-
203-000 to be effective 11/30/2023.
    Filed Date: 12/13/23.
    Accession Number: 20231213-5144.
    Comment Date: 5 p.m. ET 12/20/23.

    Any person desiring to protest in any the above proceedings must
file in accordance with Rule 211 of the Commission's Regulations (18
CFR 385.211) on or before 5:00 p.m. Eastern time on the specified
comment date.
    The filings are accessible in the Commission's eLibrary system
(https://elibrary.ferc.gov/idmws/search/fercgensearch.asp) by querying
the docket number.
    eFiling is encouraged. More detailed information relating to filing
requirements, interventions, protests, service, and qualifying
facilities filings can be found at: http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other information, call<PHONE_NUMBER>
(toll free). For TTY, call<PHONE_NUMBER>.
    The Commission's Office of Public Participation (OPP) supports
meaningful public engagement and participation in Commission
proceedings. OPP can help members of the public, including landowners,
environmental justice communities, Tribal members and others, access
publicly available information and navigate Commission processes. For
public inquiries and assistance with making filings such as
interventions, comments, or requests for rehearing, the public is
encouraged to contact OPP at<PHONE_NUMBER> or [email protected].

    Dated: December 14, 2023.
Debbie-Anne A. Reese,
Deputy Secretary.
[FR Doc. 2023-27988 Filed 12-19-23; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 79, Number 238 (Thursday, December 11, 2014)]
[Notices]
[Pages 73652-73653]
[FR Doc No: 2014-29011]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73756; File No. SR-ISEGemini-2014-29]

Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Extend the Penny
Pilot Program

December 5, 2014.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Exchange Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is
hereby given that on December 1, 2014, ISE Gemini, LLC (the
``Exchange'' or ``ISE Gemini'') filed with the Securities and Exchange
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.
---------------------------------------------------------------------------

    \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

    ISE Gemini proposes to amend its rules relating to a pilot program
to quote and to trade certain options in pennies (``Penny Pilot
Program''). The text of the proposed rule change is available on the
Exchange's Web site www.ise.com, at the principal office of the
Exchange, 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 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
    Under the Penny Pilot Program, the minimum price variation for all
participating options classes, except for the Nasdaq-100 Index Tracking
Stock (``QQQQ''), the SPDR S&P 500 Exchange Traded Fund (``SPY'') and
the iShares Russell 2000 Index Fund (``IWM''), is $0.01 for all
quotations in options series that are quoted at less than $3 per
contract and $0.05 for all quotations in options series that are quoted
at $3 per contract or greater. QQQQ, SPY and IWM are quoted in $0.01
increments for all options series. The Penny Pilot Program is currently
scheduled to expire on December 31, 2014.\3\ The Exchange proposes to
extend the time period of the Penny Pilot Program through June 30,
2015, and to provide revised dates for adding replacement issues to the
Penny Pilot Program. The Exchange proposes that any Penny Pilot Program
issues that have been delisted may be replaced on the second trading
day following January 1, 2015. The replacement issues will be selected
based on trading activity for the six month period beginning June 1,
2014, and ending November 30, 2014. This filing does not propose any
substantive changes to the Penny Pilot Program: All classes currently
participating will remain the same and all minimum increments will
remain unchanged. The Exchange believes the benefits to public
customers and other market participants who will be able to express
their true prices to buy and sell options have been demonstrated to
outweigh the increase in quote traffic.
---------------------------------------------------------------------------

    \3\ See Exchange Act Release No. 72278 (May 29, 2014), 79 FR
32353 (June 4, 2014) (SR-ISE Gemini-2014-14).
---------------------------------------------------------------------------

2. Statutory Basis
    The basis under the Securities Exchange Act of 1934 (the ``Exchange
Act'') for this proposed rule change is found in Section 6(b)(5), in
that the proposed rule change is designed to promote just and equitable
principles of trade, 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. In particular, the proposed
rule change, which extends the Penny Pilot Program for an additional
six months, will enable public customers and other market participants
to express their true prices to buy and sell options for the benefit of
all market participants.

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

    This proposed rule change does not impose any burden on
competition. Specifically, the Exchange believes that, by extending the
expiration of the Penny Pilot Program, the proposed rule change will
allow for further analysis of the Penny Pilot Program and a
determination of how the Penny Pilot Program should be structured in
the future. In doing so, the proposed rule change will also serve to
promote regulatory clarity and consistency, thereby reducing burdens on
the marketplace and facilitating investor protection.

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

    The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any written comments from members or other interested parties.

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

    Because the foregoing proposed rule change does not significantly
affect the protection of investors or the public interest, does not
impose any significant burden on competition, and, by its terms, does
not become operative for 30 days from the date on which it was filed,
or such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \4\ and Rule 19b-
4(f)(6) thereunder.\5\ The Exchange provided the Commission with
written notice of its 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 the proposed rule change
as required by Rule 19b-4(f)(6).
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such 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 Exchange Act. If the
Commission takes such action, the Commission shall institute
proceedings to determine whether the proposed rule should be approved
or disapproved.

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 Exchange 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-ISE Gemini-2014-29 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-ISE Gemini-2014-29. 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 Commissions Internet Web site (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for Web site viewing and printing in
the Commission's Public Reference Room, 100 F Street NE., Washington,
DC 20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of such filing also will be available for inspection
and copying at the principal office of Topaz. 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-ISE Gemini-2014-29 and should be
submitted by January 2, 2015.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\6\
---------------------------------------------------------------------------

    \6\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2014-29011 Filed 12-10-14; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: August 26, 2010 (Volume 75, Number 165)]
[Proposed Rules]
[Page 52484-52485]
[DOCID:fr26au10-21]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2010-0815; Airspace Docket No. 10-ANE-107]

Proposed Removal and Amendment of Class E Airspace, Oxford, CT

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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

SUMMARY: This action proposes to remove Class E surface airspace as an
extension to Class D airspace, and amend Class E airspace extending
upward from 700 feet at Oxford, CT. Decommissioning of the Waterbury
Non-Directional Beacon (NDB) at the Waterbury-Oxford airport has made
this action necessary for the safety and management of Instrument
Flight Rules (IFR) operations at the airport.

DATES: Comments must be received on or before October 12, 2010.

ADDRESSES: Send comments on this rule to: U.S. Department of
Transportation, Docket Operations, West Building Ground Floor, Room
W12-140, 1200 New Jersey, SE., Washington, DC 20590-0001; Telephone: 1-
800-647-5527; Fax:<PHONE_NUMBER>. You must identify the Docket Number
FAA-2010-0815; Airspace Docket No. 10-ANE-107, at the beginning of your
comments. You may also submit and review received comments through the
Internet at http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Melinda Giddens, Operations Support
Group, Eastern Service Center, Federal Aviation Administration, P.O.
Box 20636, Atlanta, Georgia 30320; telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Comments Invited

    Interested persons are invited to comment on this rule by
submitting such written data, views, or arguments, as they may desire.
Comments that provide the factual basis supporting the views and
suggestions presented are particularly helpful in developing reasoned
regulatory decisions on the proposal. Comments are specifically invited
on the overall regulatory, aeronautical, economic, environmental, and
energy-related aspects of the proposal.
    Communications should identify both docket numbers (FAA Docket No.
FAA-2010-0815; Airspace Docket No. 10-ANE-107) and be submitted in
triplicate to the Docket Management System (see ADDRESSES section for
address and phone number). You may also submit comments through the
Internet at  http://www.regulations.gov.
    Comments wishing the FAA to acknowledge receipt of their comments
on this action must submit with those comments a self-addressed stamped
postcard on which the following statement is made: ``Comments to Docket
No. FAA-2010-0815; Airspace Docket No. 10-ANE-107.'' The postcard will
be date/time stamped and returned to the commenter.
    All communications received before the specified closing date for
comments will be considered before taking action on the proposed rule.
The proposal contained in this notice may be changed in light of the
comments received. A report summarizing each substantive public contact
with FAA personnel concerned with this rulemaking will be filed in the
docket.

Availability of NPRMs

    An electronic copy of this document may be downloaded from and
comments submitted through http://www.regulations.gov. Recently
published rulemaking documents can also be accessed through the FAA's
web page at http://www.faa.gov/airports_airtraffic/air_traffic/
publications/airspace_amendments/.
    You may review the public docket containing the proposal, any
comments received, and any final disposition in person in the Dockets
Office (see the ADDRESSES section for address and phone number) between
9 a.m. and 5 p.m., Monday through Friday, except Federal Holidays. An
informal docket may also be examined during normal business hours at
the office of the Eastern Service Center, Federal Aviation
Administration, Room 210, 1701 Columbia Avenue, College Park, Georgia
30337.
    Persons interested in being placed on a mailing list for future
NPRM's should contact the FAA's Office of Rulemaking,

(202) 267-9677, to request a copy of Advisory circular No. 11-2A,
Notice of Proposed Rulemaking distribution System, which describes the
application procedure.

The Proposal

    The FAA is considering an amendment to Title 14, Code of Federal
Regulations (14 CFR) part 71 to remove Class E surface airspace as an
extension to Class D airspace and amend the description of the Class E
airspace extending upward 700 feet above the surface at Oxford-
Waterbury Airport, Oxford, CT. The Waterbury NDB has been
decommissioned and reference to the navigation aid would be removed
from the airspace description for the safety and management of IFR
operations at Waterbury-Oxford Airport.
    The Class E surface airspace designations as an extension to Class
D and the Class E 700 foot airspace designations are published in
Paragraph 6004 and 6005, respectively, of FAA order 7400.9T, signed
August 27, 2009, and effective September 15, 2009, which is
incorporated by reference in 14 CFR 71.1. The Class E airspace
designations listed in this document will be published subsequently in
the Order.
    The FAA has determined that this proposed regulation only involves
an established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
It, therefore, (1) Is not a ``significant regulatory action'' under
Executive Order 12866; (2) is not a ``significant rule'' under DOT
Regulatory Policies and Procedures (44 FR 11034; February 26, 1979);
and (3) does not warrant preparation of a Regulatory Evaluation as the
anticipated impact is so minimal. Since this is a routine matter that
will only affect air traffic procedures and air navigation, it is
certified that this proposed rule, when promulgated, would not have a
significant economic impact on a substantial number of small entities
under the criteria of the Regulatory Flexibility Act.
    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. Subtitle I, section 106
describes the authority of the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more detail the scope of the agency's
authority. This proposed rulemaking is promulgated under the authority
described in subtitle VII, part, A, subpart I, section 40103. Under
that section, the FAA is charged with prescribing regulations to assign
the use of airspace necessary to ensure the safety of aircraft and the
efficient use of airspace. This proposed regulation is within the scope
of that authority as it would amend controlled airspace at Waterbury-
Oxford Airport, Oxford, CT.

Lists of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (Air).

The Proposed Amendment

    In consideration of the foregoing, the Federal Aviation
Administration proposes to amend 14 CFR part 71 as follows:

PART 71--DESIGNATION OF CLASS A, B, C, D, AND CLASS E AIRSPACE
AREAS; AIR TRAFFIC SERVICE ROUTES; AND REPORTING POINTS

    1. The authority citation for part 71 continues to read as follows:

    Authority: 49 U.S.C. 106(g); 40103, 40113, 40120; E.O. 10854, 24
FR 9565, 3 CFR, 1959-1963 Comp., p. 389.

Sec.  71.1  [Amended]

    2. The incorporation by reference in 14 CFR 71.1 of Federal
Aviation Administration Order 7400.9T, Airspace Designations and
Reporting Points, signed August 27, 2009, effective September 15, 2009,
is amended as follows:

Paragraph 6004 Class E Airspace Areas Designated as an Extension to
a Class D Surface Area

* * * * *

ANE CT E4 Oxford, CT [REMOVED]

* * * * *

Paragraph 6005 Class E Airspace Areas Extending Upward From 700
Feet or More Above the Surface of the Earth

* * * * *

ANE CT E5 Oxford, CT [AMENDED]

Waterbury-Oxford Airport, CT
    (Lat. 41[deg]28'43'' N., long. 73[deg]08'07'' W.)

    That airspace extending upward from 700 feet above the surface
within an 8-mile radius of the Waterbury-Oxford Airport.

    Issued in College Park, Georgia, on August 12, 2010.
Myron A. Jenkins,
Acting Manager, Operations Support Group, Eastern Service Center, Air
Traffic Organization.
[FR Doc. 2010-21219 Filed 8-25-10; 8:45 am]
BILLING CODE 4910-13-P