Notice2023-04032
Self-Regulatory Organizations; Cboe Exchange, Inc.; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To Increase Position Limits for Options on Apple Inc. Stock
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
February 28, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 39 (Tuesday, February 28, 2023)</title>
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[Federal Register Volume 88, Number 39 (Tuesday, February 28, 2023)]
[Notices]
[Pages 12705-12710]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-04032]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-96965; File No. SR-CBOE-2022-057]
Self-Regulatory Organizations; Cboe Exchange, Inc.; Order
Instituting Proceedings To Determine Whether To Approve or Disapprove a
Proposed Rule Change To Increase Position Limits for Options on Apple
Inc. Stock
February 22, 2023.
I. Introduction
On November 7, 2022, Cboe Exchange, Inc. (``Exchange'' or ``Cboe
Options'') 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 amend Cboe Rules 8.30 and 8.42 to increase the
position and exercise limits for options on Apple Inc. (``AAPL'')
stock. The proposed rule change was published for comment in the
Federal Register on
[[Page 12706]]
November 25, 2022.\3\ On December 22, 2022, pursuant to Section
19(b)(2) of the Act,\4\ the Commission designated a longer period
within which to approve the proposed rule change, disapprove the
proposed rule change, or institute proceedings to determine whether to
approve or disapprove the proposed rule change.\5\ This order
institutes proceedings pursuant to Section 19(b)(2)(B) of the Act \6\
to determine whether to approve or disapprove the proposed rule change.
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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. 96353 (November 18,
2022), 87 FR 72568 (November 25, 2022) (``Notice'').
\4\ 15 U.S.C. 78s(b)(2).
\5\ See Securities Exchange Act Release No. 96570 (December 22,
2022), 87 FR 80212 (December 29, 2022). The Commission designated
February 23, 2023, as the date by which the Commission shall approve
or disapprove, or institute proceedings to determine whether to
approve or disapprove, the proposed rule change.
\6\ 15 U.S.C. 78s(b)(2)(B).
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II. Description of the Proposal
Currently, Exchange Rule 8.30 establishes position limits for
equity options of 25,000 contracts, 50,000 contracts, 75,000 contracts,
200,000 contracts, or 250,000 contracts on the same side of the market
or such other number of option contracts as may be fixed from time to
time by the Exchange.\7\ The position limit applicable to a class is
determined based on the trading volume and outstanding shares of the
underlying security.\8\ Based on the criteria in Exchange Rule 8.30,
Interpretation and Policy .02, the position limit for AAPL options
currently is 250,000 contracts and, pursuant to Exchange Rule 8.42, the
exercise limit for AAPL options is also 250,000 contracts.\9\
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\7\ Pursuant to Exchange Rule 8.42, the exercise limit for an
equity option is the same as the position limit established in
Exchange Rule 8.30 for that equity option. See id. at n. 3.
\8\ See Notice, 87 FR at 72568 and Exchange Rule 8.30,
Interpretation and Policy .02.
\9\ See Notice, 87 FR at 72569.
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The Exchange states that when an underlying security undergoes a
stock split, the number of outstanding options is proportionately
increased and the exercise price is proportionately decreased.\10\ For
example, if a security undergoes a 4-1 stock split, an investor that
held one option with an exercise price of $100 on 100 shares of stock
ABC prior to the stock split would hold four ABC options, each on 100
shares and each with an exercise price of $25, following the stock
split.\11\ In response to the increase in option positions that results
from a stock split, the position (and exercise) limit for the option
overlying that security is multiplied by the number of shares issued
per single outstanding share as part of the stock split.\12\ For
example, using the same 4-1 example, if the position limit for an
option before a 4-1 stock split is 250,000 contracts, the position
limit for the option overlying that security will be multiplied by four
to 1,000,000 contracts.\13\ The Exchange states that this increase
prevents investors holding the maximum positions from immediately being
over the position limit at the time of the stock split.\14\ The
Exchange further states that this position limit increase is temporary
and lasts until the last outstanding option position at the time of the
stock split has expired, at which time the position limit reverts to
the pre-stock-split level.\15\
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\10\ See id. (citing Options Clearing Corporation (``OCC'')
Bylaws, Article VI, Section 11A(a); and Characteristics and Risks of
Standardized Options at 19).
\11\ See Notice, 87 FR at 72569.
\12\ See id.
\13\ See id.
\14\ See id.
\15\ See id.
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The Exchange states that the position and exercise limits for AAPL
options were 250,000 contracts at the time of the AAPL 4-1 stock split
on August 31, 2020.\16\ Following the stock split, the position limit
was increased to 1,000,000 contracts.\17\ The position limit for AAPL
options remained at 1,000,000 contracts until September 16, 2022 (when
the last option position that was outstanding at the time of the stock
split expired), when the position limit reverted back to 250,000
contracts.\18\ The Exchange states that, given the significant activity
in AAPL options (and the underlying security), it understands that
numerous customers held more than 250,000 AAPL option contracts at that
time, putting their holdings above the position limit.\19\ The Exchange
further states that it understands from these customers that the
reduced position limit may be impeding trading activity and their
ability to implement investment strategies in AAPL options, including
the use of effective hedging vehicles or income generating strategies
(e.g., buy-write or put-write strategies), and the ability of market-
makers to make liquid markets with tighter spreads in AAPL options,
potentially causing the transfer of volume to the over-the-counter
(``OTC'') market.\20\ The Exchange states that OTC transactions, which
are not publicly disclosed, do not contribute to the price discovery
process on a public exchange or other lit markets.\21\
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\16\ See id.
\17\ See id.
\18\ See id. The Commission understands that this type of
temporary position limit increase following a stock split occurs
pursuant to the direction of the OCC.
\19\ See id.
\20\ See id.
\21\ See id.
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The Exchange believes that it is appropriate to increase the AAPL
option position limit to 1,000,000 contracts so market participants may
continue to trade AAPL options in the same manner and at the same
levels as they have for the prior two years, which could enable
liquidity providers to maintain liquidity levels on the Exchange and
allow other market participants to continue to trade on the Exchange
rather than shift their volume to the OTC market.\22\ The Exchange
believes the larger market capitalization of AAPL stock, as well as the
highly liquid market for AAPL stock and the overlying options since the
stock split, reduces the concerns regarding potential market
manipulation and/or disruption in the underlying market following an
increase in the position limit.\23\ The Exchange states that the
continued demand for trading AAPL options for legitimate economic
purposes despite the reduced position limit warrants a reversion to the
1,000,000-contract position limit that existed for the prior two
years.\24\
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\22\ See id.
\23\ See id.
\24\ See id.
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The Exchange further states that the proposed position limit of
1,000,000 contracts for AAPL options, which was the AAPL option
position limit for two years, is the same as existing position limits
for options on the iShares Russell 2000 ETF (``IWM''), the iShares MSCI
Emerging Markets ETF (``EEM''), iShares China Large-Cap ETF (``FXI''),
and iShares MSCI EAFE ETF (``EFA'').\25\ The Exchange states that, to
support the proposed position limit increase, it considered the
liquidity of the underlying security, the value of the underlying
security and relevant marketplace, the AAPL share and option volume,
and the liquidity of the noted exchange-traded products (``ETPs'').\26\
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\25\ See id. and Exchange Rule 8.30, Interpretation and Policy
.07.
\26\ See Notice, 87 FR at 72569.
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The Exchange provided the information in the table below regarding
the average daily volume (``ADV'') for AAPL shares and options on AAPL
stock traded during specified time periods prior to the 2020 stock
split, between the stock split and the position limit reversion, and
since the position limit reversion: \27\
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\27\ See id.
[[Page 12707]]
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ADV (option
Date range ADV (shares) contracts)
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January 3, 2020 through August 31, 170,468,316 870,304
2020 (date of the stock split)...
September 1, 2020 through December 101,001,141 1,661,627
31, 2021.........................
January 1, 2022 through September 88,458,041 1,354,430
16, 2022 (date of the position
limit reversion).................
September 17, 2022 through October 91,683,969 1,425,372
24, 2022 (time since the position
limit reversion).................
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In addition, the Exchange states that as of October 24, 2022, AAPL
had a market capitalization of $2.4 trillion (16.07 billion shares
outstanding with a share price of $149.45).\28\ For comparison, the
Exchange provided the information below for IWM, EEM, FXI, and EFA from
January 1, 2022, through October 24, 2022: \29\
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\28\ See id.
\29\ See id. at 72570.
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Shares Fund market
Product ADV (ETF ADV (option outstanding cap (USD) Share value
shares) contracts) (millions) (billions) (USD)
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IWM............................. 31,358,610 840,721 291.10 50.49 173.44
EEM............................. 47,767,767 183,342 578.25 19.62 33.93
FXI............................. 39,007,654 159,703 176.70 3.80 21.53
EFA............................. 29,953,566 123,262 705.60 41.83 59.28
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The Exchange states that while these are ETPs, rather than stocks,
ETP shares trade in the same manner as stocks and, except for those set
forth in Exchange Rule 8.30, Interpretation and Policy .07, position
limits on ETP options are determined in the same manner as the position
limits for options on stocks.\30\
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\30\ See id. Exchange Rule 8.30, Interpretation and Policy .07
provides that the position limits under Exchange Rule 8.30
applicable to options on shares or other securities that represent
interests in registered investment companies (or series thereof)
organized as open-end management investment companies, unit
investment trusts or similar entities that satisfy the criteria set
forth in Exchange Rule 4.3.06 shall be the same as the position
limits applicable to equity options under Exchange Rule 8.30 and
Interpretations and Policies thereunder, except for the position
limits established in Exchange Rule 8.30, Interpretation and Policy
.07 for specified securities, including IWM, EEM, FXI, and EFA.
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The Exchange believes that the liquidity in the AAPL shares and
their overlying options, AAPL's significantly large market
capitalization, and the overall market landscape for AAPL stock and
options support the proposal to increase its position limit.\31\ The
Exchange states that, given the robust liquidity in and value of AAPL
stock, the Exchange does not anticipate that the proposed increase in
the position limit would create significant price movements because the
relevant market is large enough to adequately absorb potential price
movements that may be caused by larger trades.\32\ To reduce the
chances of potential manipulation if trading in AAPL stock declines,
proposed Exchange Rule 8.30, Interpretation and Policy .02(g) provides
that if the most recent six-month trading volume of AAPL stock totals
less than 200,000,000 shares or the most recent six-month trading
volume of AAPL stock totals less than 150,000,000 shares and AAPL stock
has fewer than 600,000,000 shares currently outstanding, the position
limit for AAPL options will be determined as set forth in paragraphs
(a) through (e) of Interpretation and Policy .02.\33\ The Exchange
states that these proposed levels are twice the current volume and
share levels of an underlying security for the overlying option to be
eligible for the 250,000-contract option position limit.\34\
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\31\ See id.
\32\ See id.
\33\ See id.
\34\ See id.
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The Exchange states that the reporting requirements for AAPL
options will remain unchanged under the proposal.\35\ The Exchange
states that it will continue to require that each Trading Permit Holder
(``TPH'') or TPH organization that maintains positions in AAPL options
on the same side of the market, for its own account or for the account
of a customer, report certain information to the Exchange, including
the options' positions, whether such positions are hedged and, if so, a
description of the hedge(s).\36\ Although Market-Makers, including
Designated Primary Market-Makers,\37\ will continue to be exempt from
the reporting requirement, the Exchange states that it may access
Market-Maker position information.\38\ In addition, the Exchange states
that its requirement that TPHs file reports with the Exchange for any
customer who held aggregate large long or short positions on the same
side of the market of 200 or more option contracts of any single class
for the previous day will remain at this level for AAPL options and
will continue to serve as an important part of the Exchange's
surveillance efforts.\39\
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\35\ See id.
\36\ See id.
\37\ A Market-Maker is a ``Trading Permit Holder registered with
the Exchange pursuant to Rule 3.52 for the purpose of making markets
in option contracts traded on the Exchange and that has the rights
and responsibilities set forth in Chapter 5, Section D of the
Rules.'' A Designated Primary Market-Maker is a ``TPH organization
that is approved by the Exchange to function in allocated securities
as a Market-Maker (as defined in Rule 8.1) and is subject to the
obligations under Rule 5.54 or as otherwise provided under the rules
of the Exchange.'' See Exchange Rule 1.1.
\38\ The Exchange states that the OCC, through the Large Option
Position Reporting system, acts as a centralized service provider
for TPH compliance with position reporting requirements by
collecting data from each TPH or TPH organization, consolidating the
information, and ultimately providing detailed listings of each
TPH's report to the Exchange and to the Financial Industry
Regulatory Authority, Inc., acting as its agent pursuant to a
regulatory services agreement. See Notice, 87 FR at 72570, n. 11.
\39\ See Notice, 87 FR at 72570. See also Exchange Rule 8.43.
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The Exchange believes that its and other SROs' existing
surveillance procedures and reporting requirements are capable of
properly identifying disruptive and/or manipulative trading
activity.\40\ The Exchange represents that it has adequate
surveillances in place to detect potential manipulation, as well as
reviews in place to identify continued compliance with the Exchange's
listing standards.\41\ According to the Exchange, these procedures
utilize daily
[[Page 12708]]
monitoring of market activity via automated surveillance techniques to
identify unusual activity in both options and the underlying
securities, as applicable.\42\ In addition, the Exchange states that
the disclosures in Schedules 13D or 13G,\43\ which are used to report
ownership of stock that exceeds 5% of a company's total stock issue,
could assist in providing information in monitoring for potential
manipulative schemes.\44\
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\40\ See Notice, 87 FR at 72570.
\41\ See id.
\42\ See id. The Exchange believes these procedures have been
effective for the surveillance of AAPL option trading and the
Exchange will continue to employ them. See id. at n. 13.
\43\ 17 CFR 240.13d-1.
\44\ See Notice, 87 FR at 72570.
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The Exchange believes that the current financial requirements
imposed by the Exchange and by the Commission adequately address
concerns regarding potentially large, unhedged positions in AAPL
options.\45\ The Exchange states that current margin and risk-based
haircut methodologies serve to limit the size of positions maintained
by any one account by increasing the margin and/or capital that a TPH
must maintain for a large position held by itself or by its
customer.\46\ In addition, the Exchange states that Rule 15c3-1 under
the Act \47\ imposes a capital charge on TPHs to the extent of any
margin deficiency resulting from the higher margin requirement.\48\
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\45\ See id.
\46\ See id. at 72570, n. 15 (citing Exchange Rule 10.3
regarding margin requirements).
\47\ 17 CFR 240.15c3-1.
\48\ See Notice, 87 FR at 72570.
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III. Proceedings To Determine Whether To Approve or Disapprove SR-CBOE-
2022-057 and Grounds for Disapproval Under Consideration
The Commission is instituting proceedings pursuant to Section
19(b)(2)(B) of the Act \49\ to determine whether the proposed rule
change should be approved or disapproved. Institution of proceedings is
appropriate at this time in view of the legal and policy issues raised
by the proposal, as discussed below. Institution of proceedings does
not indicate that the Commission has reached any conclusions with
respect to any of the issues involved. Rather, as described below, the
Commission seeks and encourages interested persons to provide comment
on the proposed rule change.
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\49\ 15 U.S.C. 78s(b)(2)(B).
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Pursuant to Section 19(b)(2)(B) of the Act,\50\ the Commission is
providing notice of the grounds for disapproval under consideration.
The Commission is instituting proceedings to allow for additional
analysis of, and input from commenters with respect to, the consistency
of the proposed rule change with the Act and, in particular, Section
6(b)(5) of the Act,\51\ which requires that the rules of a national
securities 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, and not be designed to permit unfair
discrimination between customers, issuers, brokers, or dealers.
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\50\ Id.
\51\ 15 U.S.C. 78f(b)(5).
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Under the Commission's Rules of Practice, the ``burden to
demonstrate that a proposed rule change is consistent with the [Act]
and the rules and regulations issued thereunder . . . is on the self-
regulatory organization that proposed the rule change.'' \52\ The
description of a proposed rule change, its purpose and operation, its
effect, and a legal analysis of its consistency with applicable
requirements must all be sufficiently detailed and specific to support
an affirmative Commission finding,\53\ and any failure of a self-
regulatory organization to provide this information may result in the
Commission not having a sufficient basis to make an affirmative finding
that a proposed rule change is consistent with the Act and the
applicable rules and regulations.\54\
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\52\ Rule 700(b)(3), Commission Rules of Practice, 17 CFR
201.700(b)(3).
\53\ See id.
\54\ See id.
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As discussed above, the Exchange has proposed to increase the
position and exercise limits for AAPL options from 250,000 contracts to
1,000,000 contracts. Following the AAPL 4-1 stock split on August 31,
2020, the AAPL option position limit temporarily increased from 250,000
contracts to 1,000,000 contracts until September 16, 2022, when the
position limit reverted to 250,000 contracts.\55\ The Exchange states
that it understands from customers that the reduced position limit may
be impeding trading activity and their ability to implement investment
strategies in AAPL options, including the use of effective hedging
vehicles or income generating strategies, and the ability of market-
makers to make liquid markets with tighter spreads in AAPL options.\56\
The Exchange believes that it is appropriate to increase the AAPL
position limit to 1,000,000 option contracts so market participants may
continue to trade AAPL options in the same manner and at the same
levels as they did when the position limit temporarily was 1,000,000
contracts.\57\
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\55\ See Notice, 87 FR at 72569.
\56\ See id.
\57\ See id.
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Position and exercise limits serve as a regulatory tool designed to
address manipulative schemes and adverse market impact surrounding the
use of options.\58\ The proposal is novel in that currently, outside of
exceptions to accommodate temporary OCC-initiated adjustments, the
maximum stock option position and exercise limits permitted under
exchange rules are 250,000 contracts. In addition to being novel, the
proposed fourfold increase in the position and exercise limits for AAPL
options would be a substantial increase from current levels, and raises
the potential for adverse impacts in the underlying market for AAPL
stock. According to the Exchange, the larger market capitalization of
AAPL stock, as well as the highly liquid market for AAPL stock and the
overlying options since the stock split, mitigates these concerns.\59\
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\58\ See, e.g., Securities Exchange Act Release No. 68086
(October 23, 2012), 77 FR 65600 (October 29, 2012) (SR-CBOE-2012-
066).
\59\ See Notice, 87 FR at 72569.
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The trading volume of the stock underlying a stock option is one of
the two metrics that determines a stock option's position limit.\60\ As
set forth in the proposal, AAPL stock ADV declined significantly during
the post-split period when the AAPL option position limit temporarily
was 1,000,000 contracts, and as of October 24, 2022, AAPL stock's ADV
had decreased almost by half from its ADV prior to the stock split.\61\
While the Exchange states that
[[Page 12709]]
the market for AAPL stock and the overlying options is highly
liquid,\62\ the proposal does not adequately explain why a fourfold
position (and exercise) limit increase is warranted given the
significant decrease in AAPL stock ADV described in the proposal.
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\60\ See id. at 72568 and Exchange Rule 8.30, Interpretation and
Policy .02.
\61\ See Notice, 87 FR at 72569. The Commission cannot discern
whether the post-stock-split ADV figures for AAPL stock set forth in
the proposal are adjusted for the split; here, the Commission
assumes that they are not. In addition, a Cboe study on the impact
of stock splits on trading activities finds that split-adjusted
volume in mega-capitalization stocks increased slightly one-week
post-split but, in the two-week to six-month period post-split, the
median executed share volume decreased about 48%, compared to volume
a week pre-split. See Cboe study on the impact of stock split on
trading activities at: <a href="https://www.cboe.com/insights/posts/stock-splits-lead-to-split-results-in-trading/">https://www.cboe.com/insights/posts/stock-splits-lead-to-split-results-in-trading/</a>. This study also finds that
the median number of options contracts traded in mega-capitalization
stocks decreased approximately 49% one week post-split and remained
down through the six-month period post-split. In the case of option
contracts in AAPL, the study finds that the split-adjusted number of
AAPL option contracts traded decreased about 52%, averaging 0.9
million contracts traded daily post-split compared to 1.9 million
contracts traded daily pre-split. Also, while the Exchange's
proposal focuses on AAPL, the Commission understands that some
evidence suggests that, as a general matter, share trading volume
may be unchanged or decrease after a stock split. See, e.g., Patrick
Dennis, Stock Splits and Liquidity: The Case of the Nasdaq -100
Index Tracking Stock, the Financial Review, 38, 2003, 415-433;
Thomas E. Copeland, Liquidity Changes Following Stock Splits, the
Journal of Finance, 34, 1, 1979, 115-141.
\62\ See Notice, 87 FR at 72569; see also id. at 72571 (stating
that, while the ADV of AAPL stock is lower than it was prior to the
2020 stock split, it is still more than 50% of the pre-stock-split
ADV, and that the ADV of AAPL options since the 2020 stock split is
almost double the ADV prior to the stock split).
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In addition, the proposal does not explain why, in light of the
AAPL stock trading volume decrease described in the proposal, a
1,000,000-contract position limit for AAPL options is necessary for
market participants to trade in the same manner and at the same levels
as they did when the position limit temporarily was 1,000,000
contracts. Although the Exchange states that the 250,000-contract
position limit for AAPL options may be impeding customers' trading
activity and their ability to implement investment and hedging
strategies, the proposal provides no detail to support these
assertions, such as the number of customers affected or the hedging or
investment strategies that these customers are unable to execute
because of the lower position limit.\63\ Similarly, the Exchange states
that the 250,000-contract positon limit may be impeding the ability of
market makers to make liquid markets with tighter spreads in AAPL
options, but the proposal provides no information indicating that
market makers' quoted spreads have widened or that they have reduced
the size associated with their quotes. Further, market makers'
positions in AAPL options would not count towards the current position
limit to the extent covered by existing equity hedge or other
exemptions.\64\
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\63\ Some hedging transactions and positions are exempt from
position limits. See Exchange Rule 8.30, Interpretation and Policy
.04(a).
\64\ See, e.g., Exchange Rule 8.30, Interpretation and Policy
.04.
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Further, the proposal justifies the proposed position limit, in
part, through a comparison to options on certain broad-based index
exchange-traded funds (``ETF(s)'') that currently have a 1,000,000-
contract position limit,\65\ but does not provide sufficient
information to explain why the underlying markets for the broad-based
index ETFs are sufficiently comparable to the market for AAPL stock, or
sufficient information to independently support a finding that the
proposed position limit increase would not have an adverse market
impact. Unlike an ETF, a stock, such as AAPL, is not subject to the
creation and redemption processes that apply to ETFs, nor to the issuer
arbitrage mechanisms that help to keep an ETF's price in line with the
value of its underlying portfolio when overpriced or trading at a
discount to the securities on which it is based. The Commission
previously has considered how these processes and mechanisms may serve
to mitigate the potential price impact that might otherwise result from
increased position limits for an ETF option.\66\
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\65\ See Notice, 87 FR at 72571 (stating that AAPL stock ADV is
currently approximately two to three time higher than the ADV of
IWM, EEM, FXI, and EFA, and that AAPL option ADV is currently
anywhere from almost twice to more than ten times the ADV of options
on IWM, EEM, FXI, and EFA).
\66\ See Securities Exchange Act Release No. 93525 (November 4,
2021), 86 FR 62584, 62587 (November 10, 2021) (order approving File
No. SR-Cboe-2021-029).
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Accordingly, the proposal does not provide an adequate basis for
the Commission to conclude that the proposal would be consistent with
Section 6(b)(5) of the Act.
IV. Procedure: Request for Written Comments
The Commission requests that interested persons provide written
submissions of their data, views, and arguments with respect to the
issues identified above, as well as any other concerns they may have
with the proposal. In particular, the Commission invites the written
views of interested persons concerning whether the proposed rule change
is consistent with Section 6(b)(5), or any other provision of the Act,
or the rules and regulations thereunder. Although there do not appear
to be any issues relevant to approval or disapproval which would be
facilitated by an oral presentation of data, views, and arguments, the
Commission will consider, pursuant to Rule 19b-4 under the Act,\67\ any
request for an opportunity to make an oral presentation.\68\
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\67\ 17 CFR 240.19b-4.
\68\ Section 19(b)(2) of the Act, as amended by the Securities
Acts Amendments of 1975, Public Law 94-29 (June 4, 1975), grants to
the Commission flexibility to determine what type of proceeding--
either oral or notice and opportunity for written comments--is
appropriate for consideration of a particular proposal by a self-
regulatory organization. See Securities Acts Amendments of 1975,
Senate Comm. on Banking, Housing & Urban Affairs, S. Rep. No. 75,
94th Cong., 1st Sess. 30 (1975).
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The Commission asks that commenters address the sufficiency and
merit of the Exchange's statements in support of the proposal in
addition to any other comments they may wish to submit about the
proposed rule change. In particular, the Commission seeks comment on
its concerns expressed above regarding the proposal's consistency with
the Act, and seeks commenters' views as to whether the proposed
position and exercise limits for AAPL options could have an adverse
market impact.
Interested persons are invited to submit written data, views, and
arguments regarding whether the proposed rule change should be approved
or disapproved by March 21, 2023. Any person who wishes to file a
rebuttal to any other person's submission must file that rebuttal by
April 4, 2023. Comments may be submitted by any of the following
methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#83f1f6efe6aee0eceeeee6edf7f0c3f0e6e0ade4ecf5"><span class="__cf_email__" data-cfemail="5220273e377f313d3f3f373c2621122137317c353d24">[email protected]</span></a>. Please include
File No. SR-CBOE-2022-057 on the subject line.
Paper Comments
<bullet> 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 No. SR-CBOE-2022-057. The 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 (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>).
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
[[Page 12710]]
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 No. SR-CBOE-2022-057 and should be submitted by
March 21, 2023. Rebuttal comments should be submitted by April 4, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\69\
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\69\ 17 CFR 200.30-3(a)(57).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-04032 Filed 2-27-23; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on February 28, 2023.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.